Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 04, 2016 | |
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 | Sep. 30, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 7,831,272 |
Interim Condensed Consolidated
Interim Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Cash and cash equivalents | ||
Cash and demand deposits due from banks | $ 19,274 | $ 18,810 |
Interest bearing balances due from banks | 2,061 | 2,759 |
Total cash and cash equivalents | 21,335 | 21,569 |
AFS securities (amortized cost of $549,893 in 2016 and $654,348 in 2015) | 564,229 | 660,136 |
Mortgage loans AFS | 685 | 1,187 |
Loans | ||
Commercial | 554,847 | 448,381 |
Agricultural | 133,637 | 115,911 |
Residential real estate | 260,122 | 251,501 |
Consumer | 40,760 | 34,699 |
Gross loans | 989,366 | 850,492 |
Less allowance for loan losses | 7,800 | 7,400 |
Net loans | 981,566 | 843,092 |
Premises and equipment | 28,986 | 28,331 |
Corporate owned life insurance | 25,985 | 26,423 |
Accrued interest receivable | 6,868 | 6,269 |
Equity securities without readily determinable fair values | 22,573 | 22,286 |
Goodwill and other intangible assets | 48,700 | 48,828 |
Other assets | 5,571 | 9,991 |
TOTAL ASSETS | 1,706,498 | 1,668,112 |
Deposits | ||
Noninterest bearing | 201,804 | 191,376 |
NOW accounts | 205,817 | 212,666 |
Certificates of deposit under $100 and other savings | 504,599 | 521,793 |
Certificates of deposit over $100 | 263,613 | 238,728 |
Total deposits | 1,175,833 | 1,164,563 |
Borrowed funds | 325,409 | 309,732 |
Accrued interest payable and other liabilities | 10,072 | 9,846 |
Total liabilities | 1,511,314 | 1,484,141 |
Shareholders' equity | ||
Common stock — no par value 15,000,000 shares authorized; issued and outstanding 7,833,481 shares (including 22,296 shares held in the Rabbi Trust) in 2016 and 7,799,867 shares (including 19,401 shares held in the Rabbi Trust) in 2015 | 139,980 | 139,198 |
Shares to be issued for deferred compensation obligations | 4,908 | 4,592 |
Retained earnings | 44,280 | 39,960 |
Accumulated other comprehensive income | 6,016 | 221 |
Total shareholders' equity | 195,184 | 183,971 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 1,706,498 | $ 1,668,112 |
Interim Condensed Consolidated3
Interim Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Available-for-sale securities, amortized cost | $ 549,893 | $ 654,348 |
Common stock, shares authorized | 15,000,000 | 15,000,000 |
Common stock, shares issued | 7,833,481 | 7,799,867 |
Common stock, shares outstanding | 7,833,481 | 7,799,867 |
Common stock, shares held in Rabbi Trust | 22,296 | 19,401 |
Interim Condensed Consolidated4
Interim Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Interest income | ||||
Loans, including fees | $ 9,965 | $ 8,984 | $ 28,320 | $ 26,884 |
AFS securities | ||||
Taxable | 2,037 | 2,310 | 6,740 | 6,655 |
Nontaxable | 1,411 | 1,507 | 4,337 | 4,496 |
Federal funds sold and other | 194 | 166 | 509 | 444 |
Total interest income | 13,607 | 12,967 | 39,906 | 38,479 |
Interest expense | ||||
Deposits | 1,496 | 1,480 | 4,313 | 4,405 |
Borrowings | 1,251 | 1,100 | 3,726 | 3,181 |
Total interest expense | 2,747 | 2,580 | 8,039 | 7,586 |
Net interest income | 10,860 | 10,387 | 31,867 | 30,893 |
Provision for loan losses | 17 | (738) | 185 | (1,999) |
Net interest income after provision for loan losses | 10,843 | 11,125 | 31,682 | 32,892 |
Noninterest income | ||||
Service charges and fees | 1,276 | 1,468 | 3,652 | 4,024 |
Net gain on sale of mortgage loans | 263 | 157 | 472 | 472 |
Earnings on corporate owned life insurance policies | 183 | 188 | 566 | 570 |
Net gains (losses) on sale of AFS securities | 0 | 0 | 245 | 0 |
Other | 1,224 | 1,288 | 2,986 | 2,792 |
Total noninterest income | 2,946 | 3,101 | 7,921 | 7,858 |
Noninterest expenses | ||||
Compensation and benefits | 4,940 | 4,750 | 14,412 | 13,856 |
Furniture and equipment | 1,543 | 1,511 | 4,564 | 4,251 |
Occupancy | 790 | 728 | 2,280 | 2,121 |
Other | 2,160 | 2,172 | 6,475 | 5,938 |
Total noninterest expenses | 9,433 | 9,161 | 27,731 | 26,166 |
Income before federal income tax expense | 4,356 | 5,065 | 11,872 | 14,584 |
Federal Income Tax Expense (Benefit), Continuing Operations | 763 | 1,002 | 1,855 | 2,750 |
NET INCOME | $ 3,593 | $ 4,063 | $ 10,017 | $ 11,834 |
Earnings per share | ||||
Basic (in dollars per share) | $ 0.46 | $ 0.52 | $ 1.28 | $ 1.52 |
Diluted (in dollars per share) | 0.45 | 0.51 | 1.25 | 1.49 |
Cash dividends per basic share (in dollars per share) | $ 0.25 | $ 0.24 | $ 0.73 | $ 0.70 |
Interim Condensed Consolidated5
Interim Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 3,593 | $ 4,063 | $ 10,017 | $ 11,834 |
Unrealized gains (losses) on AFS securities | ||||
Unrealized gains (losses) on AFS securities arising during the period | 2,548 | (5,301) | (3,137) | |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | 91 | 0 | (61) | 0 |
Reclassification adjustment for net realized (gains) losses included in net income | 0 | 0 | (245) | 0 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Tax, Portion Attributable to Parent | (2,457) | 5,301 | 8,487 | 3,137 |
Tax effect (1) | 906 | (1,818) | (2,692) | |
Other comprehensive income, net of tax | (1,551) | 3,483 | 5,795 | 2,118 |
Comprehensive income | $ 2,042 | $ 7,546 | $ 15,812 | $ 13,952 |
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, 2014 | $ 174,594 | $ 138,755 | $ 4,242 | $ 32,103 | $ (506) |
Beginning balances, shares at Dec. 31, 2014 | 7,776,274 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Comprehensive income (loss) | 13,952 | 11,834 | 2,118 | ||
Issuance of common stock | 3,310 | $ 3,310 | |||
Issuance of common stock, shares | 142,388 | ||||
Common stock transferred from the Rabbi Trust to satisfy deferred compensation obligations | 0 | $ 123 | (123) | ||
Share based payment awards under equity compensation plan | 425 | 425 | |||
Common stock purchased for deferred compensation obligations | (279) | (279) | |||
Common stock repurchased pursuant to publicly announced repurchase plan | (3,588) | $ (3,588) | |||
Common stock repurchased pursuant to publicly announced repurchase plan, shares | (153,329) | ||||
Cash dividends | (5,416) | (5,416) | |||
Ending balances at Sep. 30, 2015 | 182,998 | $ 138,321 | 4,544 | 38,521 | 1,612 |
Ending balances, shares at Sep. 30, 2015 | 7,765,333 | ||||
Beginning balances at Dec. 31, 2015 | $ 183,971 | $ 139,198 | 4,592 | 39,960 | 221 |
Beginning balances, shares at Dec. 31, 2015 | 7,799,867 | 7,799,867 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Comprehensive income (loss) | $ 15,812 | 10,017 | 5,795 | ||
Issuance of common stock | 3,683 | $ 3,683 | |||
Issuance of common stock, shares | 131,697 | ||||
Common stock transferred from the Rabbi Trust to satisfy deferred compensation obligations | 0 | $ 127 | (127) | ||
Share based payment awards under equity compensation plan | 443 | 443 | |||
Common stock purchased for deferred compensation obligations | (279) | (279) | |||
Common stock repurchased pursuant to publicly announced repurchase plan | (2,749) | $ (2,749) | |||
Common stock repurchased pursuant to publicly announced repurchase plan, shares | (98,083) | ||||
Cash dividends | (5,697) | (5,697) | |||
Ending balances at Sep. 30, 2016 | $ 195,184 | $ 139,980 | $ 4,908 | $ 44,280 | $ 6,016 |
Ending balances, shares at Sep. 30, 2016 | 7,833,481 | 7,833,481 |
Interim Condensed Consolidated7
Interim Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends per share (in dollars per share) | $ 0.25 | $ 0.24 | $ 0.73 | $ 0.70 |
Interim Condensed Consolidated8
Interim Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
OPERATING ACTIVITIES | ||
Net income | $ 10,017 | $ 11,834 |
Reconciliation of net income to net cash provided by operating activities: | ||
Provision for loan losses | 185 | (1,999) |
Impairment of foreclosed assets | 0 | 22 |
Depreciation | 2,116 | 1,925 |
Amortization of OMSR | 299 | 273 |
Amortization of acquisition intangibles | 128 | 122 |
Net amortization of AFS securities | 2,115 | 1,514 |
Available-for-sale Securities, Gross Realized Gain (Loss) | (245) | 0 |
Net gain on sale of mortgage loans | (472) | (472) |
Increase in cash value of corporate owned life insurance policies | (566) | (570) |
Share-based payment awards under equity compensation plan | 443 | 425 |
Proceeds from loan sales | (22,994) | (36,140) |
Proceeds from loan sales | 23,968 | 36,682 |
Net changes in operating assets and liabilities which provided (used) cash: | ||
Accrued interest receivable | (599) | (1,141) |
Other assets | 1,005 | (5,277) |
Accrued interest payable and other liabilities | 165 | (117) |
Net cash provided by (used in) operating activities | 15,565 | 7,081 |
Activity in AFS securities | ||
Sales | 35,664 | 0 |
Maturities and calls | 111,543 | 72,345 |
Purchases | (44,622) | (131,800) |
Net loan principal (originations) collections | (138,870) | (1,065) |
Proceeds from sales of foreclosed assets | 348 | 1,305 |
Purchases of premises and equipment | (2,771) | (4,397) |
Purchases of corporate owned life insurance policies | 0 | (500) |
Proceeds from Life Insurance Policies | 1,004 | 0 |
Net cash provided by (used in) investing activities | (37,704) | (64,112) |
FINANCING ACTIVITIES | ||
Net increase (decrease) in deposits | 11,270 | 53,519 |
Increase in other borrowed funds | 15,677 | 7,901 |
Cash dividends paid on common stock | (5,697) | (5,416) |
Proceeds from issuance of common stock | 3,683 | 3,310 |
Common stock repurchased | (2,749) | (3,588) |
Common stock purchased for deferred compensation obligations | (279) | (279) |
Net cash provided by (used in) financing activities | 21,905 | 55,447 |
Increase (decrease) in cash and cash equivalents | (234) | (1,584) |
Cash and cash equivalents at beginning of period | 21,569 | 19,906 |
Cash and cash equivalents at end of period | 21,335 | 18,322 |
SUPPLEMENTAL CASH FLOWS INFORMATION: | ||
Interest paid | 8,042 | 7,587 |
Federal income taxes paid | 1,350 | 3,193 |
SUPPLEMENTAL NONCASH INFORMATION: | ||
Transfers of loans to foreclosed assets | $ 211 | $ 1,043 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
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,” the “Corporation”, “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 or the “Bank” refer 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 nine month periods ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 . For further information, refer to our Annual Report on Form 10-K for the year ended December 31, 2015 . 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, 2015 . Reclassifications: Certain amounts reported in the 2015 consolidated financial statements have been reclassified to conform with the 2016 presentation. Restatements: In this Quarterly Report on Form 10-Q , certain prior period financial information has been restated due to an accounting correction. Impacted sections of the Consolidated Financial Statements include: 1. Consolidated Statements of Income for the three and nine month periods ended September 30, 2015 and Consolidated Statements of Cash Flows for the nine month period ended September 30, 2015 ; and 2. Notes to Consolidated Financial Statements for the three and nine month periods ended September 30, 2015 . On the Consolidated Statements of Income, the effects of the restatement reduced loan interest and fee income by $871 and $2,564 , respectively, and compensation and benefits were reduced by $871 and $2,564 , respectively, for the three and nine month periods ended September 30, 2015 . The restatement did not impact net income for the three and nine month periods ended September 30, 2015 . All amounts in this Quarterly Report on Form 10-Q affected by the restatement adjustments are reflected as the restated amounts. For information related to the restatement, refer to our Annual Report on Form 10-K for the year ended December 31, 2015 . |
Computation of Earnings Per Com
Computation of Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2016 | |
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 . Three Months Ended Nine Months Ended 2016 2015 2016 2015 Average number of common shares outstanding for basic calculation 7,824,751 7,768,230 7,813,084 7,773,655 Average potential effect of common shares in the Directors Plan (1) 186,667 178,882 184,996 177,531 Average number of common shares outstanding used to calculate diluted earnings per common share 8,011,418 7,947,112 7,998,080 7,951,186 Net income $ 3,593 $ 4,063 $ 10,017 $ 11,834 Earnings per common share Basic $ 0.46 $ 0.52 $ 1.28 $ 1.52 Diluted $ 0.45 $ 0.51 $ 1.25 $ 1.49 (1) Exclusive of shares held in the Rabbi Trust |
Pending Accounting Standards Up
Pending Accounting Standards Updates | 9 Months Ended |
Sep. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Pending Accounting Standards Updates | Accounting Standards Updates Pending Accounting Standards Updates ASU No. 2016-01: “ Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities” In January 2016, ASU No. 2016-01 set forth the following: 1) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income; 2) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment and when an impairment exists, an entity is required to measure the investment at fair value; 3) for public entities, eliminates the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; 4) for public entities, requires the use of exit price notion when measuring the fair value of financial instruments for disclosure purposes; 5) requires an entity to present separately in other comprehensive income, the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; 6) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements; and 7) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity's other deferred tax assets. The new authoritative guidance is effective for interim and annual periods beginning after December 15, 2017 and is not expected to have a significant impact on our operations or financial statement disclosures due to existing equity investments. ASU No. 2016-02: “Leases (Topic 842)” In February 2016, ASU No. 2016-02 was issued to create Topic 842 - Leases which will require recognition of lease assets and lease liabilities on the balance sheet for leases previously classified as operating leases. Accounting guidance is set forth for both lessee and lessor accounting. Under lessee accounting, a lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For finance leases, a lessee is required to do the following: 1) recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in the statement of financial position; 2) recognize interest on the lease liability separately from amortization of the right-of-use asset in the statement of comprehensive income; and 3) classify repayments of the principal portion of the lease liability within financing activities and payments of interest on the lease liability and variable lease payments within operating activities in the statement of cash flows. For operating leases, a lessee is required to do the following: 1) recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in the statement of financial position; 2) recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term on a generally straight-line basis; and 3) classify all cash payments within operating activities in the statement of cash flows. The accounting applied by a lessor is largely unchanged from that applied under previous GAAP. The new authoritative guidance is effective for interim and annual periods beginning after December 15, 2018 and is not expected to have a significant impact on our operations or financial statement disclosures. ASU No. 2016-05: “Derivatives and Hedging (Topic 815): Effect Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships” In March 2016, ASU No. 2016-05 was issued to clarify designation of a hedging instrument when there is a change in counterparty. A change in the counterparty to a derivative instrument that has been designated as the hedging instrument under Topic 815 does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. The new authoritative guidance is effective for interim and annual periods beginning after December 15, 2016 and is not expected to have a significant impact on our operations or financial statement disclosures. ASU No. 2016-07: “Investments - Equity Method and Joint Ventures (Topic 323): Simplifying the Transition of the Equity Method of Accounting” In March 2016, ASU No. 2016-07 was issued and eliminates the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. Additionally, the update requires that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. Therefore, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. The new authoritative guidance is effective for interim and annual periods beginning after December 15, 2016 and is not expected to have a significant impact on our operations or financial statement disclosures. ASU No. 2016-09: “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” In March 2016, ASU No. 2016-09 updated several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The new authoritative guidance is effective for interim and annual periods beginning after December 15, 2016 and is not expected to have a significant impact on our operations or financial statement disclosures. ASU No. 2016-13: “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” In June 2016, ASU No. 2016-13 updated the measurement for credit losses for AFS debt securities and assets measured at amortized cost which include loans, trade receivables, and any other financial assets with the contractual right to receive cash. Current GAAP requires an “incurred loss” methodology for recognizing credit losses that delays recognition until it is probable a loss has been incurred. Under the incurred loss approach, entities are limited to a probable initial recognition threshold when credit losses are measured under GAAP; an entity generally only considers past events and current conditions in measuring the incurred loss. In the new guidance, the incurred loss impairment methodology in current GAAP is replaced with a methodology that reflects expected credit losses. This methodology requires consideration of a broader range of reasonable and supportable information to calculate credit loss estimates. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances which applies to assets measured either collectively or individually. The update allows an entity to revert to historical loss information that is reflective of the contractual term (considering the effect of prepayments) for periods that are beyond the time frame for which the entity is able to develop reasonable and supportable forecasts. In addition, the disclosures of credit quality indicators in relation to the amortized cost of financing receivables, a current disclosure requirement, are further disaggregated by year of origination (or vintage). The vintage information will be useful for financial statement users to better assess changes in underwriting standards and credit quality trends in asset portfolios over time and the effect of those changes on credit losses. Overall, the update will allow entities the ability to measure expected credit losses without the restriction of incurred or probable losses that exist under current GAAP. For users of the financial statements, the update provides decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The new authoritative guidance is effective for interim and annual periods beginning after December 15, 2019 and is expected to have a significant impact on our operations and financial statement disclosures as well as that of the banking industry as a whole. ASU No. 2016-15: “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” In August 2016, ASU No. 2016-15 was issued to provide guidance on eight specific cash flow issues: 1) debt prepayment or debt extinguishment costs; 2) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; 3) contingent consideration payments made after a business combination; 4) proceeds from the settlement of insurance claims; 5) proceeds from the settlement of corporate-owned life insurance policies; 6) including bank-owned life insurance policies; 7) distributions received from equity method investees, beneficial interests in securitization transactions; and 8) separately identifiable cash flows and application of the predominance principle. The new authoritative guidance is effective for interim and annual periods beginning after December 15, 2017 and is not expected to have a significant impact on our operations or financial statement disclosures. |
AFS Securities
AFS Securities | 9 Months Ended |
Sep. 30, 2016 | |
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: September 30, 2016 Amortized Gross Gross Fair Government sponsored enterprises $ 340 $ 4 $ — $ 344 States and political subdivisions 211,073 8,627 11 219,689 Auction rate money market preferred 3,200 — 55 3,145 Preferred stocks 3,800 — 212 3,588 Mortgage-backed securities 222,342 4,341 34 226,649 Collateralized mortgage obligations 109,138 1,796 120 110,814 Total $ 549,893 $ 14,768 $ 432 $ 564,229 December 31, 2015 Amortized Gross Gross Fair Government sponsored enterprises $ 24,407 $ 13 $ 75 $ 24,345 States and political subdivisions 224,752 7,511 46 232,217 Auction rate money market preferred 3,200 — 334 2,866 Preferred stocks 3,800 — 501 3,299 Mortgage-backed securities 264,109 1,156 1,881 263,384 Collateralized mortgage obligations 134,080 1,136 1,191 134,025 Total $ 654,348 $ 9,816 $ 4,028 $ 660,136 The amortized cost and fair value of AFS securities by contractual maturity at September 30, 2016 are as follows: Maturing Securities with Variable Monthly Payments or Noncontractual Maturities Due in After One After Five After Total Government sponsored enterprises $ 32 $ — $ 308 $ — $ — $ 340 States and political subdivisions 26,139 71,388 83,884 29,662 — 211,073 Auction rate money market preferred — — — — 3,200 3,200 Preferred stocks — — — — 3,800 3,800 Mortgage-backed securities — — — — 222,342 222,342 Collateralized mortgage obligations — — — — 109,138 109,138 Total amortized cost $ 26,171 $ 71,388 $ 84,192 $ 29,662 $ 338,480 $ 549,893 Fair value $ 26,277 $ 73,959 $ 88,507 $ 31,290 $ 344,196 $ 564,229 Expected maturities for government sponsored enterprises and states and political subdivisions may differ from contractual maturities because issuers may have the right to call or prepay obligations. As the auction rate money market preferred and preferred stocks have continual call dates, they are not reported by a specific maturity group. Because of their variable monthly payments, mortgage-backed securities and collateralized mortgage obligations are not reported by a specific maturity group. A summary of the sales activity of AFS securities was as follows for the: Three Months Ended September 30 Nine Months Ended September 30 2016 2016 Proceeds from sales of AFS securities $ — $ 35,664 Gross realized gains (losses) $ — $ 245 Applicable income tax expense (benefit) $ — $ 83 We had no sales of AFS securities in the three and nine month periods ended September 30, 2015 . The cost basis used to determine the realized gains or losses of AFS securities sold was the amortized cost of the individual investment security as of the trade date. The following information pertains to AFS securities with gross unrealized losses at September 30, 2016 and December 31, 2015 , aggregated by investment category and length of time that individual securities have been in a continuous loss position. September 30, 2016 Less Than Twelve Months Twelve Months or More Gross Fair Gross Fair Total Government sponsored enterprises $ — $ — $ — $ — $ — States and political subdivisions — — 11 394 11 Auction rate money market preferred — — 55 3,145 55 Preferred stocks — — 212 3,588 212 Mortgage-backed securities 34 15,672 — — 34 Collateralized mortgage obligations 14 6,474 106 12,152 120 Total $ 48 $ 22,146 $ 384 $ 19,279 $ 432 Number of securities in an unrealized loss position: 4 9 13 December 31, 2015 Less Than Twelve Months Twelve Months or More Gross Fair Gross Fair Total Government sponsored enterprises $ — $ — $ 75 $ 4,925 $ 75 States and political subdivisions 14 3,355 32 2,623 46 Auction rate money market preferred — — 334 2,866 334 Preferred stocks — — 501 3,299 501 Mortgage-backed securities 882 131,885 999 37,179 1,881 Collateralized mortgage obligations 415 53,441 776 26,717 1,191 Total $ 1,311 $ 188,681 $ 2,717 $ 77,609 $ 4,028 Number of securities in an unrealized loss position: 36 26 62 As of September 30, 2016 and December 31, 2015 , 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 September 30, 2016 or December 31, 2015 . |
Loans and ALLL
Loans and ALLL | 9 Months Ended |
Sep. 30, 2016 | |
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, 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 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. Commercial and agricultural loans include loans for commercial real estate, commercial operating loans, advances to mortgage brokers, farmland and agricultural production, and states and political subdivisions. Repayment of these loans is 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. We entered into a mortgage purchase program with a financial institution where we participate in advances to mortgage brokers ("advances"). The mortgage brokers originate residential mortgage loans with the intent to sell on the secondary market. We participate in the advance to the mortgage broker, which is secured by the underlying mortgage loan, until it is ultimately sold on the secondary market. As such, the average life of each participated advance is approximately 20-30 days. Funds from the sale of the loan are used to payoff our participation in the advance to the mortgage broker. We classify these advances as commercial loans and include the outstanding balance in commercial loans on our balance sheet. Under the participation agreement, we committed to a maximum outstanding aggregate amount of $30,000 . The difference between our outstanding balances and the maximum outstanding aggregate amount are classified as “ Unfunded commitments under lines of credit ” in the “ Contractual Obligations and Loan Commitments ” section of the Management's Discussion and Analysis of Financial Condition and Results of Operations of this report. We offer adjustable rate mortgages, construction loans, and fixed rate residential real estate loans which have amortization periods up to a maximum of 30 years. We consider the anticipated direction of interest rates, balance sheet duration, the sensitivity of our balance sheet to changes in interest rates, and overall loan demand to determine whether or not to sell fixed rate loans to Freddie Mac . Our lending policies generally limit the maximum loan-to-value ratio on residential real estate loans to 97% 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% . Underwriting criteria for originated 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 for appropriateness. All originated mortgage loan requests are reviewed by our mortgage loan committee or through a secondary market 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 appropriateness of the ALLL is evaluated on a quarterly 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 are calculated at the loan class and segment levels based on a migration analysis of the loan portfolio, with the exception of advances to mortgage brokers, over the preceding five years. With no historical losses on advances to mortgage brokers, there is no allocation in the commercial segment displayed below based on historical loss factors. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. A summary of changes in the ALLL and the recorded investment in loans by segments follows: Allowance for Loan Losses Three Months Ended September 30, 2016 Commercial Agricultural Residential Real Estate Consumer Unallocated Total July 1, 2016 $ 2,119 $ 534 $ 3,130 $ 541 $ 1,276 $ 7,600 Charge-offs — — (57 ) (74 ) — (131 ) Recoveries 118 — 153 43 — 314 Provision for loan losses (367 ) 612 (452 ) 94 130 17 September 30, 2016 $ 1,870 $ 1,146 $ 2,774 $ 604 $ 1,406 $ 7,800 Allowance for Loan Losses Nine Months Ended September 30, 2016 Commercial Agricultural Residential Real Estate Consumer Unallocated Total January 1, 2016 $ 2,171 $ 329 $ 3,330 $ 522 $ 1,048 $ 7,400 Charge-offs (48 ) — (426 ) (206 ) — (680 ) Recoveries 396 92 248 159 — 895 Provision for loan losses (649 ) 725 (378 ) 129 358 185 September 30, 2016 $ 1,870 $ 1,146 $ 2,774 $ 604 $ 1,406 $ 7,800 Allowance for Loan Losses and Recorded Investment in Loans September 30, 2016 Commercial Agricultural Residential Real Estate Consumer Unallocated Total ALLL Individually evaluated for impairment $ 804 $ 16 $ 1,703 $ — $ — $ 2,523 Collectively evaluated for impairment 1,066 1,130 1,071 604 1,406 5,277 Total $ 1,870 $ 1,146 $ 2,774 $ 604 $ 1,406 $ 7,800 Loans Individually evaluated for impairment $ 7,719 $ 4,520 $ 8,792 $ 29 $ 21,060 Collectively evaluated for impairment 547,128 129,117 251,330 40,731 968,306 Total $ 554,847 $ 133,637 $ 260,122 $ 40,760 $ 989,366 Allowance for Loan Losses Three Months Ended September 30, 2015 Commercial Agricultural Residential Real Estate Consumer Unallocated Total July 1, 2015 $ 3,482 $ 363 $ 3,512 $ 591 $ 1,052 $ 9,000 Charge-offs (61 ) — (70 ) (79 ) — (210 ) Recoveries 68 — 33 47 — 148 Provision for loan losses (500 ) 15 (163 ) (50 ) (40 ) (738 ) September 30, 2015 $ 2,989 $ 378 $ 3,312 $ 509 $ 1,012 $ 8,200 Allowance for Loan Losses Nine Months Ended September 30, 2015 Commercial Agricultural Residential Real Estate Consumer Unallocated Total January 1, 2015 $ 3,821 $ 216 $ 4,235 $ 645 $ 1,183 $ 10,100 Charge-offs (89 ) — (325 ) (252 ) — (666 ) Recoveries 387 72 152 154 — 765 Provision for loan losses (1,130 ) 90 (750 ) (38 ) (171 ) (1,999 ) September 30, 2015 $ 2,989 $ 378 $ 3,312 $ 509 $ 1,012 $ 8,200 Allowance for Loan Losses and Recorded Investment in Loans December 31, 2015 Commercial Agricultural Residential Real Estate Consumer Unallocated Total ALLL Individually evaluated for impairment $ 829 $ 2 $ 1,989 $ — $ — $ 2,820 Collectively evaluated for impairment 1,342 327 1,341 522 1,048 4,580 Total $ 2,171 $ 329 $ 3,330 $ 522 $ 1,048 $ 7,400 Loans Individually evaluated for impairment $ 7,969 $ 4,068 $ 10,266 $ 35 $ 22,338 Collectively evaluated for impairment 440,412 111,843 241,235 34,664 828,154 Total $ 448,381 $ 115,911 $ 251,501 $ 34,699 $ 850,492 The following table displays the credit quality indicators for commercial and agricultural credit exposures based on internally assigned credit risk ratings as of: September 30, 2016 Commercial Agricultural Real Estate Other Advances to Mortgage Brokers Total Real Estate Other Total Total Rating 1 - Excellent $ — $ 529 $ — $ 529 $ — $ — $ — $ 529 2 - High quality 8,819 10,193 27,832 46,844 3,828 1,562 5,390 52,234 3 - High satisfactory 107,613 37,839 — 145,452 23,612 11,557 35,169 180,621 4 - Low satisfactory 275,806 73,465 — 349,271 50,083 25,066 75,149 424,420 5 - Special mention 4,448 733 — 5,181 6,483 6,810 13,293 18,474 6 - Substandard 6,037 1,527 — 7,564 3,126 1,510 4,636 12,200 7 - Vulnerable 6 — — 6 — — — 6 8 - Doubtful — — — — — — — — Total $ 402,729 $ 124,286 $ 27,832 $ 554,847 $ 87,132 $ 46,505 $ 133,637 $ 688,484 December 31, 2015 Commercial Agricultural Real Estate Other Advances to Mortgage Brokers Total Real Estate Other Total Total Rating 1 - Excellent $ — $ 499 $ — $ 499 $ — $ — $ — $ 499 2 - High quality 7,397 11,263 — 18,660 4,647 2,150 6,797 25,457 3 - High satisfactory 99,136 29,286 — 128,422 28,886 13,039 41,925 170,347 4 - Low satisfactory 222,431 62,987 — 285,418 37,279 22,166 59,445 344,863 5 - Special mention 4,501 473 — 4,974 3,961 1,875 5,836 10,810 6 - Substandard 9,941 256 — 10,197 1,623 139 1,762 11,959 7 - Vulnerable 211 — — 211 146 — 146 357 8 - Doubtful — — — — — — — — Total $ 343,617 $ 104,764 $ — $ 448,381 $ 76,542 $ 39,369 $ 115,911 $ 564,292 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 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: September 30, 2016 Accruing Interest Total Past Due and Nonaccrual 30-59 60-89 90 Days Nonaccrual Current Total Commercial Commercial real estate $ 979 $ 48 $ 160 $ 68 $ 1,255 $ 401,474 $ 402,729 Commercial other 284 202 24 — 510 123,776 124,286 Advances to mortgage brokers — — — — — 27,832 27,832 Total commercial 1,263 250 184 68 1,765 553,082 554,847 Agricultural Agricultural real estate 517 181 465 — 1,163 85,969 87,132 Agricultural other 214 — 6 — 220 46,285 46,505 Total agricultural 731 181 471 — 1,383 132,254 133,637 Residential real estate Senior liens 1,077 240 192 595 2,104 210,826 212,930 Junior liens 15 15 — 27 57 8,342 8,399 Home equity lines of credit 275 — — — 275 38,518 38,793 Total residential real estate 1,367 255 192 622 2,436 257,686 260,122 Consumer Secured 19 19 — — 38 36,893 36,931 Unsecured 10 3 — — 13 3,816 3,829 Total consumer 29 22 — — 51 40,709 40,760 Total $ 3,390 $ 708 $ 847 $ 690 $ 5,635 $ 983,731 $ 989,366 December 31, 2015 Accruing Interest Total Past Due and Nonaccrual 30-59 60-89 90 Days Nonaccrual Current Total Commercial Commercial real estate $ 505 $ 281 $ — $ 211 $ 997 $ 342,620 $ 343,617 Commercial other 18 — — — 18 104,746 104,764 Advances to mortgage brokers — — — — — — — Total commercial 523 281 — 211 1,015 447,366 448,381 Agricultural Agricultural real estate 196 890 — 146 1,232 75,310 76,542 Agricultural other — — — — — 39,369 39,369 Total agricultural 196 890 — 146 1,232 114,679 115,911 Residential real estate Senior liens 1,551 261 — 429 2,241 199,622 201,863 Junior liens 40 8 — 6 54 9,325 9,379 Home equity lines of credit 225 — — — 225 40,034 40,259 Total residential real estate 1,816 269 — 435 2,520 248,981 251,501 Consumer Secured 27 — — — 27 30,839 30,866 Unsecured 4 — — — 4 3,829 3,833 Total consumer 31 — — — 31 34,668 34,699 Total $ 2,566 $ 1,440 $ — $ 792 $ 4,798 $ 845,694 $ 850,492 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 classified as nonaccrual , interest income is recognized daily, as earned, according to the terms of the loan agreement and the principal amount outstanding. The following is a summary of information pertaining to impaired loans as of: September 30, 2016 December 31, 2015 Outstanding Balance Unpaid Principal Balance Valuation Allowance Outstanding Balance Unpaid Principal Balance Valuation Allowance Impaired loans with a valuation allowance Commercial real estate $ 5,669 $ 5,788 $ 719 $ 5,659 $ 5,777 $ 818 Commercial other 1,399 1,399 85 8 8 11 Agricultural real estate 181 181 15 — — — Agricultural other 134 134 1 335 335 2 Residential real estate senior liens 8,608 9,193 1,688 9,996 10,765 1,959 Residential real estate junior liens 76 86 15 143 163 30 Home equity lines of credit — — — — — — Consumer secured — — — — — — Total impaired loans with a valuation allowance 16,067 16,781 2,523 16,141 17,048 2,820 Impaired loans without a valuation allowance Commercial real estate 590 603 2,122 2,256 Commercial other 61 72 180 191 Agricultural real estate 3,357 3,357 3,549 3,549 Agricultural other 848 848 184 184 Home equity lines of credit 108 408 127 434 Consumer secured 29 29 35 35 Total impaired loans without a valuation allowance 4,993 5,317 6,197 6,649 Impaired loans Commercial 7,719 7,862 804 7,969 8,232 829 Agricultural 4,520 4,520 16 4,068 4,068 2 Residential real estate 8,792 9,687 1,703 10,266 11,362 1,989 Consumer 29 29 — 35 35 — Total impaired loans $ 21,060 $ 22,098 $ 2,523 $ 22,338 $ 23,697 $ 2,820 The following is a summary of information pertaining to impaired loans for the: Three Months Ended September 30 2016 2015 Average Outstanding Balance Interest Income Recognized Average Outstanding Balance Interest Income Recognized Impaired loans with a valuation allowance Commercial real estate $ 5,699 $ 90 $ 7,532 $ 112 Commercial other 746 2 280 — Agricultural real estate 181 4 — — Agricultural other 67 1 168 4 Residential real estate senior liens 8,896 85 10,021 106 Residential real estate junior liens 105 — 138 1 Home equity lines of credit — — — — Consumer secured — — 40 1 Total impaired loans with a valuation allowance 15,694 182 18,179 224 Impaired loans without a valuation allowance Commercial real estate 705 10 1,432 28 Commercial other 67 2 83 2 Agricultural real estate 3,360 42 1,819 23 Agricultural other 767 11 494 5 Home equity lines of credit 112 4 136 4 Consumer secured 31 1 — — Total impaired loans without a valuation allowance 5,042 70 3,964 62 Impaired loans Commercial 7,217 104 9,327 142 Agricultural 4,375 58 2,481 32 Residential real estate 9,113 89 10,295 111 Consumer 31 1 40 1 Total impaired loans $ 20,736 $ 252 $ 22,143 $ 286 Nine Months Ended September 30 2016 2015 Average Outstanding Balance Interest Income Recognized Average Outstanding Balance Interest Income Recognized Impaired loans with a valuation allowance Commercial real estate $ 5,748 $ 259 $ 7,287 $ 295 Commercial other 298 5 481 19 Agricultural real estate 91 6 29 1 Agricultural other 78 1 56 4 Residential real estate senior liens 9,439 278 10,812 323 Residential real estate junior liens 126 2 197 15 Home equity lines of credit — — 42 — Consumer secured — — 46 3 Total impaired loans with a valuation allowance 15,780 551 18,950 660 Impaired loans without a valuation allowance Commercial real estate 995 57 2,356 163 Commercial other 92 6 94 7 Agricultural real estate 3,454 130 1,615 64 Agricultural other 574 27 300 13 Home equity lines of credit 118 12 149 14 Consumer secured 33 3 2 — Total impaired loans without a valuation allowance 5,266 235 4,516 261 Impaired loans Commercial 7,133 327 10,218 484 Agricultural 4,197 164 2,000 82 Residential real estate 9,683 292 11,200 352 Consumer 33 3 48 3 Total impaired loans $ 21,046 $ 786 $ 23,466 $ 921 As of September 30, 2016 and December 31, 2015 , we had no commitments to advance additional funds 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 September 30 2016 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 $ 1,315 $ 1,315 3 $ 1,926 $ 1,926 Agricultural other 2 319 319 3 636 636 Residential real estate Senior liens — — — 1 151 151 Junior liens — — — — — — Home equity lines of credit — — — — — — Total residential real estate — — — 1 151 151 Consumer unsecured — — — — — — Total 3 $ 1,634 $ 1,634 7 $ 2,713 $ 2,713 Nine Months Ended September 30 2016 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 $ 1,315 $ 1,315 8 $ 2,511 $ 2,511 Agricultural other 5 520 520 10 1,406 1,406 Residential real estate Senior liens 2 26 26 5 599 599 Junior liens — — — 1 30 30 Home equity lines of credit — — — 1 94 94 Total residential real estate 2 26 26 7 723 723 Consumer unsecured 1 2 2 — — — Total 9 $ 1,863 $ 1,863 25 $ 4,640 $ 4,640 The following tables summarize concessions we granted to borrowers in financial difficulty for the: Three Months Ended September 30 2016 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 $ 1,315 3 $ 1,926 — $ — Agricultural other 1 14 1 305 3 636 — — Residential real estate Senior liens — — — — 1 151 — — Junior liens — — — — — — — — Home equity lines of credit — — — — — — — — Total residential real estate — — — — 1 151 — — Consumer unsecured — — — — — — — — Total 1 $ 14 2 $ 1,620 7 $ 2,713 — $ — Nine Months Ended September 30 2016 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 $ 1,315 6 $ 2,180 2 $ 331 Agricultural other 1 14 4 506 9 1,360 1 46 Residential real estate Senior liens 2 26 — — 2 201 3 398 Junior liens — — — — — — 1 30 Home equity lines of credit — — — — — — 1 94 Total residential real estate 2 26 — — 2 201 5 522 Consumer unsecured — — 1 2 — — — — Total 3 $ 40 6 $ 1,823 17 $ 3,741 8 $ 899 We did not restructure any loans by forgiving principal or accrued interest in the three and nine month periods ended September 30, 2016 or 2015 . Based on our historical loss experience, losses associated with TDRs are not significantly different than other impaired loans within the same loan segment. As such, TDRs , including TDRs that have been modified in the past 12 months that subsequently defaulted, are analyzed in the same manner as other impaired loans within their respective loan segment. We had no loans that defaulted in the three and nine month periods ended September 30, 2016 which were modified within 12 months prior to the default date. Following is a summary of loans that defaulted in the three and nine month periods ended September 30, 2015 , which were modified within 12 months prior to the default date. Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 Number of Loans Pre- Charge-Off Post- Number of Loans Pre- Charge-Off Post- Commercial other 1 $ 216 $ 25 $ 191 1 $ 216 $ 25 $ 191 The following is a summary of TDR loan balances as of: September 30, 2016 December 31, 2015 TDRs $ 20,522 $ 21,325 |
Equity Securities Without Readi
Equity Securities Without Readily Determinable Fair Values | 9 Months Ended |
Sep. 30, 2016 | |
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: September 30 December 31 FHLB Stock $ 11,700 $ 11,700 Corporate Settlement Solutions, LLC 7,539 7,249 FRB Stock 1,999 1,999 Valley Financial Corporation 1,000 1,000 Other 335 338 Total $ 22,573 $ 22,286 |
Foreclosed Assets (Notes)
Foreclosed Assets (Notes) | 9 Months Ended |
Sep. 30, 2016 | |
Banking and Thrift [Abstract] | |
Foreclosed Assets | Foreclosed Assets Foreclosed assets are included in other assets in the consolidated balance sheets and consist of other real estate owned and repossessed assets. The following is a summary of foreclosed assets: September 30 December 31 Consumer mortgage loans collateralized by residential real estate foreclosed as a result of obtaining physical possession $ 28 $ — All other foreclosed assets 256 421 Total $ 284 $ 421 Below is a summary of changes in foreclosed assets during the: Three Months Ended September 30 2016 2015 Balance, July 1 $ 249 $ 873 Properties transferred 95 234 Impairments — — Proceeds from sale (60 ) (506 ) Balance, Septembe r 30 $ 284 $ 601 Nine Months Ended September 30 2016 2015 Balance, January 1 $ 421 $ 885 Properties transferred 211 1,043 Impairments — (22 ) Proceeds from sale (348 ) (1,305 ) Balance, Septembe r 30 $ 284 $ 601 There were no consumer mortgage loans collateralized by residential real estate in the process of foreclosure as of September 30, 2016 . |
Borrowed Funds
Borrowed Funds | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Borrowed Funds | Borrowed Funds Borrowed funds consist of the following obligations as of: September 30, 2016 December 31, 2015 Amount Rate Amount Rate FHLB advances $ 250,000 2.19 % $ 235,000 1.93 % Securities sold under agreements to repurchase without stated maturity dates 54,809 0.13 % 70,532 0.12 % Federal funds purchased 20,600 0.67 % 4,200 0.75 % Total $ 325,409 1.74 % $ 309,732 1.50 % 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 maturities and weighted average interest rates of FHLB advances as of: September 30, 2016 December 31, 2015 Amount Rate Amount Rate Fixed rate due 2016 $ 20,000 1.40 % $ 30,000 1.25 % Variable rate due 2016 — — % 15,000 0.62 % Fixed rate due 2017 50,000 1.77 % 50,000 1.56 % Fixed rate due 2018 50,000 1.87 % 50,000 2.16 % Fixed rate due 2019 60,000 2.55 % 40,000 2.35 % Fixed rate due 2020 10,000 1.12 % 10,000 1.98 % Fixed rate due 2021 40,000 3.10 % 30,000 2.26 % Variable rate due 2021 1 10,000 1.23 % — — % Fixed rate due 2023 10,000 3.53 % 10,000 3.90 % Total $ 250,000 2.19 % $ 235,000 1.93 % (1) Hedged advance (see " Derivative Instruments " section below) 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 $55,148 and $70,555 at September 30, 2016 and December 31, 2015 , respectively. Such securities remain under our control. We may be required to provide additional collateral based on the fair value of underlying securities. 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 and federal funds purchased. We had no FRB Discount Window advances during the three and nine month periods ended September 30, 2016 or 2015 . Three Months Ended September 30 2016 2015 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 $ 56,057 $ 54,446 0.13 % $ 71,170 $ 68,693 0.13 % Federal funds purchased 20,600 8,848 0.69 % 13,100 7,265 0.51 % Nine Months Ended September 30 2016 2015 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 $ 61,783 $ 57,159 0.13 % $ 84,859 $ 70,399 0.13 % Federal funds purchased 20,600 8,614 0.69 % 13,100 6,253 0.50 % We had pledged AFS securities and 1-4 family residential real estate loans in the following amounts at: September 30 December 31 Pledged to secure borrowed funds $ 358,795 $ 339,078 Pledged to secure repurchase agreements 55,148 70,555 Pledged for public deposits and for other purposes necessary or required by law 26,594 39,038 Total $ 440,537 $ 448,671 AFS securities pledged to repurchase agreements without stated maturity dates consisted of the following at: September 30 December 31 States and political subdivisions $ 6,906 $ 3,639 Mortgage-backed securities 10,883 23,075 Collateralized mortgage obligations 37,359 43,841 Total $ 55,148 $ 70,555 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 AFS securities to pledge to satisfy required collateral. As of September 30, 2016 , we had the ability to borrow up to an additional $15,173 , based on assets pledged as collateral. We had no investment securities that are restricted to be pledged for specific purposes. Derivative Instruments During the second quarter of 2016, we began to enter into interest rate swaps to manage exposure to interest rate risk and variability in cash flows. The interest rate swaps, associated with our variable rate borrowings, are designated upon inception as cash flow hedges of forecasted interest payments. We enter into LIBOR-based interest rate swaps that involve the receipt of variable amounts in exchange for fixed rate payments, in effect converting variable rate debt to fixed rate debt. Cash flow hedges are assessed for effectiveness using regression analysis. The effective portion of changes in fair value are recorded in OCI and subsequently reclassified into interest expense in the same period in which the related interest on the variable rate borrowings affects earnings. In the event that a portion of the changes in fair value were determined to be ineffective, the ineffective amount would be recorded in earnings. The following table provides information on derivatives related to variable rate borrowings as of September 30, 2016 . Pay Rate Receive Rate Remaining Life (Years) Notional Amount Balance Sheet Location Fair Value Derivatives designated as hedging instruments Cash Flow Hedges: Interest rate swaps 1.56 % 3-Month LIBOR 4.6 $ 10,000 Other liabilities $ (61 ) Derivatives contain an element of credit risk which arises from the possibility that we will incur a loss as a result of a counterparty failing to meet its contractual obligations. Credit risk is minimized through counterparty collateral, transaction limits and monitoring procedures. We also manage dealer credit risk by entering into interest rate derivatives only with primary and highly rated counterparties, the use of ISDA master agreements and counterparties limits. We do not anticipate any losses from failure of interest rate derivative counterparties to honor their obligations. |
Other Noninterest Expenses
Other Noninterest Expenses | 9 Months Ended |
Sep. 30, 2016 | |
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 Nine Months Ended 2016 2015 2016 2015 Audit and related fees $ 319 $ 223 $ 664 $ 582 FDIC insurance premiums 224 204 646 619 Director fees 207 204 630 608 Consulting fees 198 124 567 341 Loan underwriting fees 142 98 377 248 Donations and community relations 134 155 374 412 Marketing costs 101 124 359 350 Education and travel 90 91 351 319 Postage and freight 95 94 292 284 Printing and supplies 103 111 286 309 Legal fees 68 121 226 273 All other 479 623 1,703 1,593 Total other $ 2,160 $ 2,172 $ 6,475 $ 5,938 |
Federal Income Taxes
Federal Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
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 Nine Months Ended 2016 2015 2016 2015 Income taxes at 34% statutory rate $ 1,481 $ 1,723 $ 4,036 $ 4,959 Effect of nontaxable income Interest income on tax exempt municipal securities (477 ) (509 ) (1,465 ) (1,519 ) Earnings on corporate owned life insurance policies (62 ) (64 ) (192 ) (194 ) Effect of tax credits (188 ) (175 ) (575 ) (542 ) Other (19 ) (18 ) (55 ) (70 ) Total effect of nontaxable income (746 ) (766 ) (2,287 ) (2,325 ) Effect of nondeductible expenses 28 45 106 116 Federal income tax expense $ 763 $ 1,002 $ 1,855 $ 2,750 |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2016 | |
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. 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 the price secondary markets are currently offering for portfolios with similar characteristics. As such, we classify Mortgage loans AFS subject to nonrecurring fair value adjustments as Level 2. Loans : For variable rate loans with no significant change in credit risk, fair values are based on carrying values. Fair values for fixed rate loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. The resulting amounts are adjusted to estimate the effect of changes in the credit quality of borrowers since the loans were originated. As such, we classify loans as Level 3 assets. We do not record loans at fair value on a recurring basis. However, from time-to-time , loans are classified as impaired and a specific allowance for loan losses may be established. Loans for which it is probable that payment of interest and principal will be significantly different than the contractual terms of the original loan agreement are considered impaired. Once a loan is identified as impaired, we measure the estimated impairment. The fair value of impaired loans is estimated using one of several methods, including the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral, less cost to sell, if the loan is collateral dependent. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. We review the net realizable values of the underlying collateral for collateral dependent impaired loans on at least a quarterly basis for all loan types. To determine the collateral value, we utilize independent appraisals, broker price opinions, or internal evaluations. We review these valuations to determine whether an additional discount should be applied given the age of market information that may have been considered as well as other factors such as costs to 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: September 30, 2016 Valuation Technique Fair Value Unobservable Input Range Discount applied to collateral appraisal: Real Estate 20% - 30% Equipment 20% - 50% Discounted appraisal value $8,844 Furniture, fixtures & equipment 45% Cash crop inventory 40% Other inventory 50% Accounts receivable 50% Liquor license 75% December 31, 2015 Valuation Technique Fair Value Unobservable Input Range Discount applied to collateral appraisal: Real Estate 20% - 30% Equipment 20% - 35% Discounted appraisal value $9,301 Furniture, fixtures & equipment 35% - 45% Cash crop inventory 40% Other inventory 50% 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 2016 and 2015 , 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: September 30, 2016 Valuation Technique Fair Value Unobservable Input Range Discount applied to collateral appraisal: Discounted appraisal value $ 284 Real Estate 20% - 30% December 31, 2015 Valuation Technique Fair Value Unobservable Input Range Discount applied to collateral appraisal: Discounted appraisal value $ 421 Real Estate 20% - 30% Discount factors with ranges are based on the age of the independent appraisal, broker price opinion, or internal evaluations. Goodwill and other intangible assets : Acquisition intangibles and goodwill are evaluated for potential impairment on at least an annual basis. Acquisition intangibles and goodwill are typically qualitatively evaluated to determine if it is more likely than not that the carrying balance is impaired. If it is determined that the carrying balance of acquisition intangibles or goodwill is more likely than not to be impaired, we perform a cash flow valuation to determine the extent of the potential impairment. If the testing resulted in impairment, we would classify goodwill and other acquisition intangibles subjected to nonrecurring fair value adjustments as Level 3. During 2016 and 2015 , 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. Derivative instruments: Derivative instruments, consisting solely of interest rate swaps, are recorded at fair value on a recurring basis. Derivatives qualifying as cash flow hedges, when highly effective, are reported at fair value in other assets or other liabilities on our Consolidated Balance Sheets with changes in value recorded in OCI. Should the hedge no longer be considered effective, the ineffective portion of the change in fair value is recorded directly in earnings in the period in which the change occurs. The fair value of a derivative is determined by quoted market prices and model based valuation techniques. As such, we classify derivative instruments as Level 2. 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: September 30, 2016 Carrying Estimated (Level 1) (Level 2) (Level 3) ASSETS Cash and cash equivalents $ 21,335 $ 21,335 $ 21,335 $ — $ — Mortgage loans AFS 685 691 — 691 — Gross loans 989,366 979,645 — — 979,645 Less allowance for loan and lease losses 7,800 7,800 — — 7,800 Net loans 981,566 971,845 — — 971,845 Accrued interest receivable 6,868 6,868 6,868 — — Equity securities without readily determinable fair values (1) 22,573 N/A — — — OMSR 2,068 2,068 — 2,068 — LIABILITIES Deposits without stated maturities 739,035 739,035 739,035 — — Deposits with stated maturities 436,798 435,892 — 435,892 — Borrowed funds 325,409 330,077 — 330,077 — Accrued interest payable 542 542 542 — — December 31, 2015 Carrying Estimated (Level 1) (Level 2) (Level 3) ASSETS Cash and cash equivalents $ 21,569 $ 21,569 $ 21,569 $ — $ — Mortgage loans AFS 1,187 1,210 — 1,210 — Gross loans 850,492 839,398 — — 839,398 Less allowance for loan and lease losses 7,400 7,400 — — 7,400 Net loans 843,092 831,998 — — 831,998 Accrued interest receivable 6,269 6,269 6,269 — — Equity securities without readily determinable fair values (1) 22,286 N/A — — — OMSR 2,505 2,518 — 2,518 — LIABILITIES Deposits without stated maturities 741,683 741,683 741,683 — — Deposits with stated maturities 422,880 421,429 — 421,429 — Borrowed funds 309,732 312,495 — 312,495 — Accrued interest payable 545 545 545 — — (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: September 30, 2016 December 31, 2015 Total (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Recurring items AFS securities Government-sponsored enterprises $ 344 $ — $ 344 $ — $ 24,345 $ — $ 24,345 $ — States and political subdivisions 219,689 — 219,689 — 232,217 — 232,217 — Auction rate money market preferred 3,145 — 3,145 — 2,866 — 2,866 — Preferred stocks 3,588 3,588 — — 3,299 3,299 — — Mortgage-backed securities 226,649 — 226,649 — 263,384 — 263,384 — Collateralized mortgage obligations 110,814 — 110,814 — 134,025 — 134,025 — Total AFS securities 564,229 3,588 560,641 — 660,136 3,299 656,837 — Derivative instruments (61 ) — (61 ) — — — — — Nonrecurring items Impaired loans (net of the ALLL) 8,844 — — 8,844 9,301 — — 9,301 Foreclosed assets 284 — — 284 421 — — 421 Total $ 573,296 $ 3,588 $ 560,580 $ 9,128 $ 669,858 $ 3,299 $ 656,837 $ 9,722 Percent of assets and liabilities measured at fair value 0.63 % 97.78 % 1.59 % 0.49 % 98.06 % 1.45 % We had no assets or liabilities recorded at fair value with changes in fair value recognized through earnings, on a recurring basis, as of September 30, 2016 . Additionally, we had no assets or liabilities recorded at fair value with changes in fair value recognized through earnings, on a nonrecurring basis, as of September 30, 2016 . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income The following table summarizes the changes in AOCI by component for the: Three Months Ended September 30 2016 2015 Unrealized Unrealized Defined Total Unrealized Unrealized Defined Total Balance, July 1 $ 10,982 $ (100 ) $ (3,315 ) $ 7,567 $ 1,937 $ — $ (3,808 ) $ (1,871 ) OCI before reclassifications (2,548 ) 91 — (2,457 ) 5,301 — — 5,301 Amounts reclassified from AOCI — — — — — — — — Subtotal (2,548 ) 91 — (2,457 ) 5,301 — — 5,301 Tax effect 937 (31 ) — 906 (1,818 ) — — (1,818 ) OCI, net of tax (1,611 ) 60 — (1,551 ) 3,483 — — 3,483 Balance, September 30 $ 9,371 $ (40 ) $ (3,315 ) $ 6,016 $ 5,420 $ — $ (3,808 ) $ 1,612 Nine Months Ended September 30 2016 2015 Unrealized Unrealized Defined Total Unrealized Unrealized Defined Total Balance, January 1 $ 3,536 $ — $ (3,315 ) $ 221 $ 3,302 $ — $ (3,808 ) $ (506 ) OCI before reclassifications 8,793 (61 ) — 8,732 3,137 — — 3,137 Amounts reclassified from AOCI (245 ) — — (245 ) — — — — Subtotal 8,548 (61 ) — 8,487 3,137 — — 3,137 Tax effect (2,713 ) 21 — (2,692 ) (1,019 ) — — (1,019 ) OCI, net of tax 5,835 (40 ) — 5,795 2,118 — — 2,118 Balance, September 30 $ 9,371 $ (40 ) $ (3,315 ) $ 6,016 $ 5,420 $ — $ (3,808 ) $ 1,612 Included in OCI for the three and nine month periods ended September 30, 2016 and 2015 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 September 30 2016 2015 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 $ 208 $ (2,756 ) $ (2,548 ) $ 140 $ 5,161 $ 5,301 Reclassification adjustment for net realized (gains) losses included in net income — — — — — — Net unrealized gains (losses) 208 (2,756 ) (2,548 ) 140 5,161 5,301 Tax effect — 937 937 — (1,818 ) (1,818 ) Unrealized gains (losses), net of tax $ 208 $ (1,819 ) $ (1,611 ) $ 140 $ 3,343 $ 3,483 Nine Months Ended September 30 2016 2015 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 $ 568 $ 8,225 $ 8,793 $ 140 $ 2,997 $ 3,137 Reclassification adjustment for net realized (gains) losses included in net income — (245 ) (245 ) — — — Net unrealized gains (losses) 568 7,980 8,548 140 2,997 3,137 Tax effect — (2,713 ) (2,713 ) — (1,019 ) (1,019 ) Unrealized gains (losses), net of tax $ 568 $ 5,267 $ 5,835 $ 140 $ 1,978 $ 2,118 |
Parent Company Only Financial I
Parent Company Only Financial Information | 9 Months Ended |
Sep. 30, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Parent Company Only Financial Information | Parent Company Only Financial Information Interim Condensed Balance Sheets September 30 December 31 ASSETS Cash on deposit at the Bank $ 1,250 $ 4,125 AFS securities 251 257 Investments in subsidiaries 145,320 133,883 Premises and equipment 1,983 2,014 Other assets 53,509 53,396 TOTAL ASSETS $ 202,313 $ 193,675 LIABILITIES AND SHAREHOLDERS’ EQUITY Other liabilities $ 7,129 $ 9,704 Shareholders' equity 195,184 183,971 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 202,313 $ 193,675 Interim Condensed Statements of Income Three Months Ended Nine Months Ended 2016 2015 2016 2015 Income Dividends from subsidiaries $ 2,000 $ 1,700 $ 5,600 $ 5,000 Interest income 3 4 11 75 Management fee and other 1,680 1,859 4,962 4,913 Total income 3,683 3,563 10,573 9,988 Expenses Compensation and benefits 1,196 1,228 3,580 3,658 Occupancy and equipment 438 415 1,281 1,226 Audit and related fees 193 101 389 316 Other 427 501 1,561 1,533 Total expenses 2,254 2,245 6,811 6,733 Income before income tax benefit and equity in undistributed earnings of subsidiaries 1,429 1,318 3,762 3,255 Federal income tax benefit 199 123 616 588 Income before equity in undistributed earnings of subsidiaries 1,628 1,441 4,378 3,843 Undistributed earnings of subsidiaries 1,965 2,622 5,639 7,991 Net income $ 3,593 $ 4,063 $ 10,017 $ 11,834 Interim Condensed Statements of Cash Flows Nine Months Ended 2016 2015 Operating activities Net income $ 10,017 $ 11,834 Adjustments to reconcile net income to cash provided by operations Undistributed earnings of subsidiaries (5,639 ) (7,991 ) Undistributed earnings of equity securities without readily determinable fair values (287 ) (364 ) Share-based payment awards under equity compensation plan 443 425 Depreciation 117 113 Changes in operating assets and liabilities which provided (used) cash Other assets 177 406 Accrued interest and other liabilities (2,575 ) 94 Net cash provided by (used in) operating activities 2,253 4,517 Investing activities Maturities, calls, principal payments, and sales of AFS securities — 3,000 Purchases of premises and equipment (86 ) (146 ) Net (advances to) repayments from subsidiaries — 300 Net cash provided by (used in) investing activities (86 ) 3,154 Financing activities Net increase (decrease) in borrowed funds — (211 ) Cash dividends paid on common stock (5,697 ) (5,416 ) Proceeds from the issuance of common stock 3,683 3,310 Common stock repurchased (2,749 ) (3,588 ) Common stock purchased for deferred compensation obligations (279 ) (279 ) Net cash provided by (used in) financing activities (5,042 ) (6,184 ) Increase (decrease) in cash and cash equivalents (2,875 ) 1,487 Cash and cash equivalents at beginning of period 4,125 1,035 Cash and cash equivalents at end of period $ 1,250 $ 2,522 |
Operating Segments
Operating Segments | 9 Months Ended |
Sep. 30, 2016 | |
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 September 30, 2016 and 2015 and each of the three and nine 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) | 9 Months Ended |
Sep. 30, 2016 | |
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,” the “Corporation”, “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 or the “Bank” refer 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 nine month periods ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 . For further information, refer to our Annual Report on Form 10-K for the year ended December 31, 2015 . |
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 September 30, 2016 and December 31, 2015 , 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 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. |
Loans Receivable | Commercial and agricultural loans include loans for commercial real estate, commercial operating loans, advances to mortgage brokers, farmland and agricultural production, and states and political subdivisions. Repayment of these loans is 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. We entered into a mortgage purchase program with a financial institution where we participate in advances to mortgage brokers ("advances"). The mortgage brokers originate residential mortgage loans with the intent to sell on the secondary market. We participate in the advance to the mortgage broker, which is secured by the underlying mortgage loan, until it is ultimately sold on the secondary market. As such, the average life of each participated advance is approximately 20-30 days. Funds from the sale of the loan are used to payoff our participation in the advance to the mortgage broker. We classify these advances as commercial loans and include the outstanding balance in commercial loans on our balance sheet. Under the participation agreement, we committed to a maximum outstanding aggregate amount of $30,000 . The difference between our outstanding balances and the maximum outstanding aggregate amount are classified as “ Unfunded commitments under lines of credit ” in the “ Contractual Obligations and Loan Commitments ” section of the Management's Discussion and Analysis of Financial Condition and Results of Operations of this report. We offer adjustable rate mortgages, construction loans, and fixed rate residential real estate loans which have amortization periods up to a maximum of 30 years. We consider the anticipated direction of interest rates, balance sheet duration, the sensitivity of our balance sheet to changes in interest rates, and overall loan demand to determine whether or not to sell fixed rate loans to Freddie Mac . Our lending policies generally limit the maximum loan-to-value ratio on residential real estate loans to 97% 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% . Underwriting criteria for originated 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 for appropriateness. All originated mortgage loan requests are reviewed by our mortgage loan committee or through a secondary market 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. 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. |
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 appropriateness of the ALLL is evaluated on a quarterly 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 are calculated at the loan class and segment levels based on a migration analysis of the loan portfolio, with the exception of advances to mortgage brokers, over the preceding five years. With no historical losses on advances to mortgage brokers, there is no allocation in the commercial segment displayed below based on historical loss factors. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. |
Internal Credit Risk Ratings | Internally assigned 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 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 classified as nonaccrual , interest income is recognized daily, as earned, according to the terms of the loan agreement and the principal amount outstanding. |
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). |
Derivative Instruments | The interest rate swaps, associated with our variable rate borrowings, are designated upon inception as cash flow hedges of forecasted interest payments. We enter into LIBOR-based interest rate swaps that involve the receipt of variable amounts in exchange for fixed rate payments, in effect converting variable rate debt to fixed rate debt. Cash flow hedges are assessed for effectiveness using regression analysis. The effective portion of changes in fair value are recorded in OCI and subsequently reclassified into interest expense in the same period in which the related interest on the variable rate borrowings affects earnings. In the event that a portion of the changes in fair value were determined to be ineffective, the ineffective amount would be recorded in earnings. |
Computation of Earnings Per C24
Computation of Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Computation of earnings per common share | Three Months Ended Nine Months Ended 2016 2015 2016 2015 Average number of common shares outstanding for basic calculation 7,824,751 7,768,230 7,813,084 7,773,655 Average potential effect of common shares in the Directors Plan (1) 186,667 178,882 184,996 177,531 Average number of common shares outstanding used to calculate diluted earnings per common share 8,011,418 7,947,112 7,998,080 7,951,186 Net income $ 3,593 $ 4,063 $ 10,017 $ 11,834 Earnings per common share Basic $ 0.46 $ 0.52 $ 1.28 $ 1.52 Diluted $ 0.45 $ 0.51 $ 1.25 $ 1.49 (1) Exclusive of shares held in the Rabbi Trust |
AFS Securities (Tables)
AFS Securities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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: September 30, 2016 Amortized Gross Gross Fair Government sponsored enterprises $ 340 $ 4 $ — $ 344 States and political subdivisions 211,073 8,627 11 219,689 Auction rate money market preferred 3,200 — 55 3,145 Preferred stocks 3,800 — 212 3,588 Mortgage-backed securities 222,342 4,341 34 226,649 Collateralized mortgage obligations 109,138 1,796 120 110,814 Total $ 549,893 $ 14,768 $ 432 $ 564,229 December 31, 2015 Amortized Gross Gross Fair Government sponsored enterprises $ 24,407 $ 13 $ 75 $ 24,345 States and political subdivisions 224,752 7,511 46 232,217 Auction rate money market preferred 3,200 — 334 2,866 Preferred stocks 3,800 — 501 3,299 Mortgage-backed securities 264,109 1,156 1,881 263,384 Collateralized mortgage obligations 134,080 1,136 1,191 134,025 Total $ 654,348 $ 9,816 $ 4,028 $ 660,136 |
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 September 30, 2016 are as follows: Maturing Securities with Variable Monthly Payments or Noncontractual Maturities Due in After One After Five After Total Government sponsored enterprises $ 32 $ — $ 308 $ — $ — $ 340 States and political subdivisions 26,139 71,388 83,884 29,662 — 211,073 Auction rate money market preferred — — — — 3,200 3,200 Preferred stocks — — — — 3,800 3,800 Mortgage-backed securities — — — — 222,342 222,342 Collateralized mortgage obligations — — — — 109,138 109,138 Total amortized cost $ 26,171 $ 71,388 $ 84,192 $ 29,662 $ 338,480 $ 549,893 Fair value $ 26,277 $ 73,959 $ 88,507 $ 31,290 $ 344,196 $ 564,229 |
Summary of the activity related to sales of available-for-sale securities | A summary of the sales activity of AFS securities was as follows for the: Three Months Ended September 30 Nine Months Ended September 30 2016 2016 Proceeds from sales of AFS securities $ — $ 35,664 Gross realized gains (losses) $ — $ 245 Applicable income tax expense (benefit) $ — $ 83 |
Available-for-sale securities with gross unrealized losses | The following information pertains to AFS securities with gross unrealized losses at September 30, 2016 and December 31, 2015 , aggregated by investment category and length of time that individual securities have been in a continuous loss position. September 30, 2016 Less Than Twelve Months Twelve Months or More Gross Fair Gross Fair Total Government sponsored enterprises $ — $ — $ — $ — $ — States and political subdivisions — — 11 394 11 Auction rate money market preferred — — 55 3,145 55 Preferred stocks — — 212 3,588 212 Mortgage-backed securities 34 15,672 — — 34 Collateralized mortgage obligations 14 6,474 106 12,152 120 Total $ 48 $ 22,146 $ 384 $ 19,279 $ 432 Number of securities in an unrealized loss position: 4 9 13 December 31, 2015 Less Than Twelve Months Twelve Months or More Gross Fair Gross Fair Total Government sponsored enterprises $ — $ — $ 75 $ 4,925 $ 75 States and political subdivisions 14 3,355 32 2,623 46 Auction rate money market preferred — — 334 2,866 334 Preferred stocks — — 501 3,299 501 Mortgage-backed securities 882 131,885 999 37,179 1,881 Collateralized mortgage obligations 415 53,441 776 26,717 1,191 Total $ 1,311 $ 188,681 $ 2,717 $ 77,609 $ 4,028 Number of securities in an unrealized loss position: 36 26 62 |
Loans and ALLL (Tables)
Loans and ALLL (Tables) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Receivables [Abstract] | ||
Summary of changes in the ALLL and the recorded investment in loans by segments | Allowance for Loan Losses Three Months Ended September 30, 2015 Commercial Agricultural Residential Real Estate Consumer Unallocated Total July 1, 2015 $ 3,482 $ 363 $ 3,512 $ 591 $ 1,052 $ 9,000 Charge-offs (61 ) — (70 ) (79 ) — (210 ) Recoveries 68 — 33 47 — 148 Provision for loan losses (500 ) 15 (163 ) (50 ) (40 ) (738 ) September 30, 2015 $ 2,989 $ 378 $ 3,312 $ 509 $ 1,012 $ 8,200 Allowance for Loan Losses Nine Months Ended September 30, 2015 Commercial Agricultural Residential Real Estate Consumer Unallocated Total January 1, 2015 $ 3,821 $ 216 $ 4,235 $ 645 $ 1,183 $ 10,100 Charge-offs (89 ) — (325 ) (252 ) — (666 ) Recoveries 387 72 152 154 — 765 Provision for loan losses (1,130 ) 90 (750 ) (38 ) (171 ) (1,999 ) September 30, 2015 $ 2,989 $ 378 $ 3,312 $ 509 $ 1,012 $ 8,200 A summary of changes in the ALLL and the recorded investment in loans by segments follows: Allowance for Loan Losses Three Months Ended September 30, 2016 Commercial Agricultural Residential Real Estate Consumer Unallocated Total July 1, 2016 $ 2,119 $ 534 $ 3,130 $ 541 $ 1,276 $ 7,600 Charge-offs — — (57 ) (74 ) — (131 ) Recoveries 118 — 153 43 — 314 Provision for loan losses (367 ) 612 (452 ) 94 130 17 September 30, 2016 $ 1,870 $ 1,146 $ 2,774 $ 604 $ 1,406 $ 7,800 Allowance for Loan Losses Nine Months Ended September 30, 2016 Commercial Agricultural Residential Real Estate Consumer Unallocated Total January 1, 2016 $ 2,171 $ 329 $ 3,330 $ 522 $ 1,048 $ 7,400 Charge-offs (48 ) — (426 ) (206 ) — (680 ) Recoveries 396 92 248 159 — 895 Provision for loan losses (649 ) 725 (378 ) 129 358 185 September 30, 2016 $ 1,870 $ 1,146 $ 2,774 $ 604 $ 1,406 $ 7,800 | |
Allowance for Loan Losses and Recorded Investment in Loans | Allowance for Loan Losses and Recorded Investment in Loans December 31, 2015 Commercial Agricultural Residential Real Estate Consumer Unallocated Total ALLL Individually evaluated for impairment $ 829 $ 2 $ 1,989 $ — $ — $ 2,820 Collectively evaluated for impairment 1,342 327 1,341 522 1,048 4,580 Total $ 2,171 $ 329 $ 3,330 $ 522 $ 1,048 $ 7,400 Loans Individually evaluated for impairment $ 7,969 $ 4,068 $ 10,266 $ 35 $ 22,338 Collectively evaluated for impairment 440,412 111,843 241,235 34,664 828,154 Total $ 448,381 $ 115,911 $ 251,501 $ 34,699 $ 850,492 Allowance for Loan Losses and Recorded Investment in Loans September 30, 2016 Commercial Agricultural Residential Real Estate Consumer Unallocated Total ALLL Individually evaluated for impairment $ 804 $ 16 $ 1,703 $ — $ — $ 2,523 Collectively evaluated for impairment 1,066 1,130 1,071 604 1,406 5,277 Total $ 1,870 $ 1,146 $ 2,774 $ 604 $ 1,406 $ 7,800 Loans Individually evaluated for impairment $ 7,719 $ 4,520 $ 8,792 $ 29 $ 21,060 Collectively evaluated for impairment 547,128 129,117 251,330 40,731 968,306 Total $ 554,847 $ 133,637 $ 260,122 $ 40,760 $ 989,366 | |
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: September 30, 2016 Commercial Agricultural Real Estate Other Advances to Mortgage Brokers Total Real Estate Other Total Total Rating 1 - Excellent $ — $ 529 $ — $ 529 $ — $ — $ — $ 529 2 - High quality 8,819 10,193 27,832 46,844 3,828 1,562 5,390 52,234 3 - High satisfactory 107,613 37,839 — 145,452 23,612 11,557 35,169 180,621 4 - Low satisfactory 275,806 73,465 — 349,271 50,083 25,066 75,149 424,420 5 - Special mention 4,448 733 — 5,181 6,483 6,810 13,293 18,474 6 - Substandard 6,037 1,527 — 7,564 3,126 1,510 4,636 12,200 7 - Vulnerable 6 — — 6 — — — 6 8 - Doubtful — — — — — — — — Total $ 402,729 $ 124,286 $ 27,832 $ 554,847 $ 87,132 $ 46,505 $ 133,637 $ 688,484 December 31, 2015 Commercial Agricultural Real Estate Other Advances to Mortgage Brokers Total Real Estate Other Total Total Rating 1 - Excellent $ — $ 499 $ — $ 499 $ — $ — $ — $ 499 2 - High quality 7,397 11,263 — 18,660 4,647 2,150 6,797 25,457 3 - High satisfactory 99,136 29,286 — 128,422 28,886 13,039 41,925 170,347 4 - Low satisfactory 222,431 62,987 — 285,418 37,279 22,166 59,445 344,863 5 - Special mention 4,501 473 — 4,974 3,961 1,875 5,836 10,810 6 - Substandard 9,941 256 — 10,197 1,623 139 1,762 11,959 7 - Vulnerable 211 — — 211 146 — 146 357 8 - Doubtful — — — — — — — — Total $ 343,617 $ 104,764 $ — $ 448,381 $ 76,542 $ 39,369 $ 115,911 $ 564,292 | |
Summary of past due and current loans | The following tables summarize the past due and current loans as of: September 30, 2016 Accruing Interest Total Past Due and Nonaccrual 30-59 60-89 90 Days Nonaccrual Current Total Commercial Commercial real estate $ 979 $ 48 $ 160 $ 68 $ 1,255 $ 401,474 $ 402,729 Commercial other 284 202 24 — 510 123,776 124,286 Advances to mortgage brokers — — — — — 27,832 27,832 Total commercial 1,263 250 184 68 1,765 553,082 554,847 Agricultural Agricultural real estate 517 181 465 — 1,163 85,969 87,132 Agricultural other 214 — 6 — 220 46,285 46,505 Total agricultural 731 181 471 — 1,383 132,254 133,637 Residential real estate Senior liens 1,077 240 192 595 2,104 210,826 212,930 Junior liens 15 15 — 27 57 8,342 8,399 Home equity lines of credit 275 — — — 275 38,518 38,793 Total residential real estate 1,367 255 192 622 2,436 257,686 260,122 Consumer Secured 19 19 — — 38 36,893 36,931 Unsecured 10 3 — — 13 3,816 3,829 Total consumer 29 22 — — 51 40,709 40,760 Total $ 3,390 $ 708 $ 847 $ 690 $ 5,635 $ 983,731 $ 989,366 December 31, 2015 Accruing Interest Total Past Due and Nonaccrual 30-59 60-89 90 Days Nonaccrual Current Total Commercial Commercial real estate $ 505 $ 281 $ — $ 211 $ 997 $ 342,620 $ 343,617 Commercial other 18 — — — 18 104,746 104,764 Advances to mortgage brokers — — — — — — — Total commercial 523 281 — 211 1,015 447,366 448,381 Agricultural Agricultural real estate 196 890 — 146 1,232 75,310 76,542 Agricultural other — — — — — 39,369 39,369 Total agricultural 196 890 — 146 1,232 114,679 115,911 Residential real estate Senior liens 1,551 261 — 429 2,241 199,622 201,863 Junior liens 40 8 — 6 54 9,325 9,379 Home equity lines of credit 225 — — — 225 40,034 40,259 Total residential real estate 1,816 269 — 435 2,520 248,981 251,501 Consumer Secured 27 — — — 27 30,839 30,866 Unsecured 4 — — — 4 3,829 3,833 Total consumer 31 — — — 31 34,668 34,699 Total $ 2,566 $ 1,440 $ — $ 792 $ 4,798 $ 845,694 $ 850,492 | |
Information pertaining to impaired loans | The following is a summary of information pertaining to impaired loans as of: September 30, 2016 December 31, 2015 Outstanding Balance Unpaid Principal Balance Valuation Allowance Outstanding Balance Unpaid Principal Balance Valuation Allowance Impaired loans with a valuation allowance Commercial real estate $ 5,669 $ 5,788 $ 719 $ 5,659 $ 5,777 $ 818 Commercial other 1,399 1,399 85 8 8 11 Agricultural real estate 181 181 15 — — — Agricultural other 134 134 1 335 335 2 Residential real estate senior liens 8,608 9,193 1,688 9,996 10,765 1,959 Residential real estate junior liens 76 86 15 143 163 30 Home equity lines of credit — — — — — — Consumer secured — — — — — — Total impaired loans with a valuation allowance 16,067 16,781 2,523 16,141 17,048 2,820 Impaired loans without a valuation allowance Commercial real estate 590 603 2,122 2,256 Commercial other 61 72 180 191 Agricultural real estate 3,357 3,357 3,549 3,549 Agricultural other 848 848 184 184 Home equity lines of credit 108 408 127 434 Consumer secured 29 29 35 35 Total impaired loans without a valuation allowance 4,993 5,317 6,197 6,649 Impaired loans Commercial 7,719 7,862 804 7,969 8,232 829 Agricultural 4,520 4,520 16 4,068 4,068 2 Residential real estate 8,792 9,687 1,703 10,266 11,362 1,989 Consumer 29 29 — 35 35 — Total impaired loans $ 21,060 $ 22,098 $ 2,523 $ 22,338 $ 23,697 $ 2,820 The following is a summary of information pertaining to impaired loans for the: Three Months Ended September 30 2016 2015 Average Outstanding Balance Interest Income Recognized Average Outstanding Balance Interest Income Recognized Impaired loans with a valuation allowance Commercial real estate $ 5,699 $ 90 $ 7,532 $ 112 Commercial other 746 2 280 — Agricultural real estate 181 4 — — Agricultural other 67 1 168 4 Residential real estate senior liens 8,896 85 10,021 106 Residential real estate junior liens 105 — 138 1 Home equity lines of credit — — — — Consumer secured — — 40 1 Total impaired loans with a valuation allowance 15,694 182 18,179 224 Impaired loans without a valuation allowance Commercial real estate 705 10 1,432 28 Commercial other 67 2 83 2 Agricultural real estate 3,360 42 1,819 23 Agricultural other 767 11 494 5 Home equity lines of credit 112 4 136 4 Consumer secured 31 1 — — Total impaired loans without a valuation allowance 5,042 70 3,964 62 Impaired loans Commercial 7,217 104 9,327 142 Agricultural 4,375 58 2,481 32 Residential real estate 9,113 89 10,295 111 Consumer 31 1 40 1 Total impaired loans $ 20,736 $ 252 $ 22,143 $ 286 Nine Months Ended September 30 2016 2015 Average Outstanding Balance Interest Income Recognized Average Outstanding Balance Interest Income Recognized Impaired loans with a valuation allowance Commercial real estate $ 5,748 $ 259 $ 7,287 $ 295 Commercial other 298 5 481 19 Agricultural real estate 91 6 29 1 Agricultural other 78 1 56 4 Residential real estate senior liens 9,439 278 10,812 323 Residential real estate junior liens 126 2 197 15 Home equity lines of credit — — 42 — Consumer secured — — 46 3 Total impaired loans with a valuation allowance 15,780 551 18,950 660 Impaired loans without a valuation allowance Commercial real estate 995 57 2,356 163 Commercial other 92 6 94 7 Agricultural real estate 3,454 130 1,615 64 Agricultural other 574 27 300 13 Home equity lines of credit 118 12 149 14 Consumer secured 33 3 2 — Total impaired loans without a valuation allowance 5,266 235 4,516 261 Impaired loans Commercial 7,133 327 10,218 484 Agricultural 4,197 164 2,000 82 Residential real estate 9,683 292 11,200 352 Consumer 33 3 48 3 Total impaired loans $ 21,046 $ 786 $ 23,466 $ 921 | |
Information pertaining to TDR's | The following is a summary of information pertaining to TDRs granted for the: Three Months Ended September 30 2016 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 $ 1,315 $ 1,315 3 $ 1,926 $ 1,926 Agricultural other 2 319 319 3 636 636 Residential real estate Senior liens — — — 1 151 151 Junior liens — — — — — — Home equity lines of credit — — — — — — Total residential real estate — — — 1 151 151 Consumer unsecured — — — — — — Total 3 $ 1,634 $ 1,634 7 $ 2,713 $ 2,713 Nine Months Ended September 30 2016 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 $ 1,315 $ 1,315 8 $ 2,511 $ 2,511 Agricultural other 5 520 520 10 1,406 1,406 Residential real estate Senior liens 2 26 26 5 599 599 Junior liens — — — 1 30 30 Home equity lines of credit — — — 1 94 94 Total residential real estate 2 26 26 7 723 723 Consumer unsecured 1 2 2 — — — Total 9 $ 1,863 $ 1,863 25 $ 4,640 $ 4,640 The following tables summarize concessions we granted to borrowers in financial difficulty for the: Three Months Ended September 30 2016 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 $ 1,315 3 $ 1,926 — $ — Agricultural other 1 14 1 305 3 636 — — Residential real estate Senior liens — — — — 1 151 — — Junior liens — — — — — — — — Home equity lines of credit — — — — — — — — Total residential real estate — — — — 1 151 — — Consumer unsecured — — — — — — — — Total 1 $ 14 2 $ 1,620 7 $ 2,713 — $ — Nine Months Ended September 30 2016 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 $ 1,315 6 $ 2,180 2 $ 331 Agricultural other 1 14 4 506 9 1,360 1 46 Residential real estate Senior liens 2 26 — — 2 201 3 398 Junior liens — — — — — — 1 30 Home equity lines of credit — — — — — — 1 94 Total residential real estate 2 26 — — 2 201 5 522 Consumer unsecured — — 1 2 — — — — Total 3 $ 40 6 $ 1,823 17 $ 3,741 8 $ 899 The following is a summary of TDR loan balances as of: September 30, 2016 December 31, 2015 TDRs $ 20,522 $ 21,325 | Following is a summary of loans that defaulted in the three and nine month periods ended September 30, 2015 , which were modified within 12 months prior to the default date. Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 Number of Loans Pre- Charge-Off Post- Number of Loans Pre- Charge-Off Post- Commercial other 1 $ 216 $ 25 $ 191 1 $ 216 $ 25 $ 191 |
Equity Securities Without Rea27
Equity Securities Without Readily Determinable Fair Values (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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: September 30 December 31 FHLB Stock $ 11,700 $ 11,700 Corporate Settlement Solutions, LLC 7,539 7,249 FRB Stock 1,999 1,999 Valley Financial Corporation 1,000 1,000 Other 335 338 Total $ 22,573 $ 22,286 |
Foreclosed Assets (Tables)
Foreclosed Assets (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Banking and Thrift [Abstract] | |
Schedule of Foreclosed Assets [Table Text Block] | Foreclosed assets are included in other assets in the consolidated balance sheets and consist of other real estate owned and repossessed assets. The following is a summary of foreclosed assets: September 30 December 31 Consumer mortgage loans collateralized by residential real estate foreclosed as a result of obtaining physical possession $ 28 $ — All other foreclosed assets 256 421 Total $ 284 $ 421 Below is a summary of changes in foreclosed assets during the: Three Months Ended September 30 2016 2015 Balance, July 1 $ 249 $ 873 Properties transferred 95 234 Impairments — — Proceeds from sale (60 ) (506 ) Balance, Septembe r 30 $ 284 $ 601 Nine Months Ended September 30 2016 2015 Balance, January 1 $ 421 $ 885 Properties transferred 211 1,043 Impairments — (22 ) Proceeds from sale (348 ) (1,305 ) Balance, Septembe r 30 $ 284 $ 601 |
Borrowed Funds (Tables)
Borrowed Funds (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Summary of borrowed funds | Borrowed funds consist of the following obligations as of: September 30, 2016 December 31, 2015 Amount Rate Amount Rate FHLB advances $ 250,000 2.19 % $ 235,000 1.93 % Securities sold under agreements to repurchase without stated maturity dates 54,809 0.13 % 70,532 0.12 % Federal funds purchased 20,600 0.67 % 4,200 0.75 % Total $ 325,409 1.74 % $ 309,732 1.50 % |
Federal Home Loan Bank, Advances | The following table lists the maturities and weighted average interest rates of FHLB advances as of: September 30, 2016 December 31, 2015 Amount Rate Amount Rate Fixed rate due 2016 $ 20,000 1.40 % $ 30,000 1.25 % Variable rate due 2016 — — % 15,000 0.62 % Fixed rate due 2017 50,000 1.77 % 50,000 1.56 % Fixed rate due 2018 50,000 1.87 % 50,000 2.16 % Fixed rate due 2019 60,000 2.55 % 40,000 2.35 % Fixed rate due 2020 10,000 1.12 % 10,000 1.98 % Fixed rate due 2021 40,000 3.10 % 30,000 2.26 % Variable rate due 2021 1 10,000 1.23 % — — % Fixed rate due 2023 10,000 3.53 % 10,000 3.90 % Total $ 250,000 2.19 % $ 235,000 1.93 % (1) Hedged advance (see " Derivative Instruments " section below) |
Summary of short term borrowings | The following table provides a summary of securities sold under repurchase agreements without stated maturity dates and federal funds purchased. We had no FRB Discount Window advances during the three and nine month periods ended September 30, 2016 or 2015 . Three Months Ended September 30 2016 2015 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 $ 56,057 $ 54,446 0.13 % $ 71,170 $ 68,693 0.13 % Federal funds purchased 20,600 8,848 0.69 % 13,100 7,265 0.51 % Nine Months Ended September 30 2016 2015 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 $ 61,783 $ 57,159 0.13 % $ 84,859 $ 70,399 0.13 % Federal funds purchased 20,600 8,614 0.69 % 13,100 6,253 0.50 % |
Summary of pledged financial instruments | We had pledged AFS securities and 1-4 family residential real estate loans in the following amounts at: September 30 December 31 Pledged to secure borrowed funds $ 358,795 $ 339,078 Pledged to secure repurchase agreements 55,148 70,555 Pledged for public deposits and for other purposes necessary or required by law 26,594 39,038 Total $ 440,537 $ 448,671 AFS securities pledged to repurchase agreements without stated maturity dates consisted of the following at: September 30 December 31 States and political subdivisions $ 6,906 $ 3,639 Mortgage-backed securities 10,883 23,075 Collateralized mortgage obligations 37,359 43,841 Total $ 55,148 $ 70,555 |
Schedule of derivative instruments | The following table provides information on derivatives related to variable rate borrowings as of September 30, 2016 . Pay Rate Receive Rate Remaining Life (Years) Notional Amount Balance Sheet Location Fair Value Derivatives designated as hedging instruments Cash Flow Hedges: Interest rate swaps 1.56 % 3-Month LIBOR 4.6 $ 10,000 Other liabilities $ (61 ) |
Other Noninterest Expenses (Tab
Other Noninterest Expenses (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 Nine Months Ended 2016 2015 2016 2015 Audit and related fees $ 319 $ 223 $ 664 $ 582 FDIC insurance premiums 224 204 646 619 Director fees 207 204 630 608 Consulting fees 198 124 567 341 Loan underwriting fees 142 98 377 248 Donations and community relations 134 155 374 412 Marketing costs 101 124 359 350 Education and travel 90 91 351 319 Postage and freight 95 94 292 284 Printing and supplies 103 111 286 309 Legal fees 68 121 226 273 All other 479 623 1,703 1,593 Total other $ 2,160 $ 2,172 $ 6,475 $ 5,938 |
Federal Income Taxes (Tables)
Federal Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 Nine Months Ended 2016 2015 2016 2015 Income taxes at 34% statutory rate $ 1,481 $ 1,723 $ 4,036 $ 4,959 Effect of nontaxable income Interest income on tax exempt municipal securities (477 ) (509 ) (1,465 ) (1,519 ) Earnings on corporate owned life insurance policies (62 ) (64 ) (192 ) (194 ) Effect of tax credits (188 ) (175 ) (575 ) (542 ) Other (19 ) (18 ) (55 ) (70 ) Total effect of nontaxable income (746 ) (766 ) (2,287 ) (2,325 ) Effect of nondeductible expenses 28 45 106 116 Federal income tax expense $ 763 $ 1,002 $ 1,855 $ 2,750 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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: September 30, 2016 Valuation Technique Fair Value Unobservable Input Range Discount applied to collateral appraisal: Real Estate 20% - 30% Equipment 20% - 50% Discounted appraisal value $8,844 Furniture, fixtures & equipment 45% Cash crop inventory 40% Other inventory 50% Accounts receivable 50% Liquor license 75% December 31, 2015 Valuation Technique Fair Value Unobservable Input Range Discount applied to collateral appraisal: Real Estate 20% - 30% Equipment 20% - 35% Discounted appraisal value $9,301 Furniture, fixtures & equipment 35% - 45% Cash crop inventory 40% Other inventory 50% Accounts receivable 50% Liquor license 75% The table below lists the quantitative fair value information related to foreclosed assets as of: September 30, 2016 Valuation Technique Fair Value Unobservable Input Range Discount applied to collateral appraisal: Discounted appraisal value $ 284 Real Estate 20% - 30% December 31, 2015 Valuation Technique Fair Value Unobservable Input Range Discount applied to collateral appraisal: Discounted appraisal value $ 421 Real Estate 20% - 30% |
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: September 30, 2016 Carrying Estimated (Level 1) (Level 2) (Level 3) ASSETS Cash and cash equivalents $ 21,335 $ 21,335 $ 21,335 $ — $ — Mortgage loans AFS 685 691 — 691 — Gross loans 989,366 979,645 — — 979,645 Less allowance for loan and lease losses 7,800 7,800 — — 7,800 Net loans 981,566 971,845 — — 971,845 Accrued interest receivable 6,868 6,868 6,868 — — Equity securities without readily determinable fair values (1) 22,573 N/A — — — OMSR 2,068 2,068 — 2,068 — LIABILITIES Deposits without stated maturities 739,035 739,035 739,035 — — Deposits with stated maturities 436,798 435,892 — 435,892 — Borrowed funds 325,409 330,077 — 330,077 — Accrued interest payable 542 542 542 — — December 31, 2015 Carrying Estimated (Level 1) (Level 2) (Level 3) ASSETS Cash and cash equivalents $ 21,569 $ 21,569 $ 21,569 $ — $ — Mortgage loans AFS 1,187 1,210 — 1,210 — Gross loans 850,492 839,398 — — 839,398 Less allowance for loan and lease losses 7,400 7,400 — — 7,400 Net loans 843,092 831,998 — — 831,998 Accrued interest receivable 6,269 6,269 6,269 — — Equity securities without readily determinable fair values (1) 22,286 N/A — — — OMSR 2,505 2,518 — 2,518 — LIABILITIES Deposits without stated maturities 741,683 741,683 741,683 — — Deposits with stated maturities 422,880 421,429 — 421,429 — Borrowed funds 309,732 312,495 — 312,495 — Accrued interest payable 545 545 545 — — (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: September 30, 2016 December 31, 2015 Total (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Recurring items AFS securities Government-sponsored enterprises $ 344 $ — $ 344 $ — $ 24,345 $ — $ 24,345 $ — States and political subdivisions 219,689 — 219,689 — 232,217 — 232,217 — Auction rate money market preferred 3,145 — 3,145 — 2,866 — 2,866 — Preferred stocks 3,588 3,588 — — 3,299 3,299 — — Mortgage-backed securities 226,649 — 226,649 — 263,384 — 263,384 — Collateralized mortgage obligations 110,814 — 110,814 — 134,025 — 134,025 — Total AFS securities 564,229 3,588 560,641 — 660,136 3,299 656,837 — Derivative instruments (61 ) — (61 ) — — — — — Nonrecurring items Impaired loans (net of the ALLL) 8,844 — — 8,844 9,301 — — 9,301 Foreclosed assets 284 — — 284 421 — — 421 Total $ 573,296 $ 3,588 $ 560,580 $ 9,128 $ 669,858 $ 3,299 $ 656,837 $ 9,722 Percent of assets and liabilities measured at fair value 0.63 % 97.78 % 1.59 % 0.49 % 98.06 % 1.45 % |
Accumulated Other Comprehensi33
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 September 30 2016 2015 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 $ 208 $ (2,756 ) $ (2,548 ) $ 140 $ 5,161 $ 5,301 Reclassification adjustment for net realized (gains) losses included in net income — — — — — — Net unrealized gains (losses) 208 (2,756 ) (2,548 ) 140 5,161 5,301 Tax effect — 937 937 — (1,818 ) (1,818 ) Unrealized gains (losses), net of tax $ 208 $ (1,819 ) $ (1,611 ) $ 140 $ 3,343 $ 3,483 Nine Months Ended September 30 2016 2015 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 $ 568 $ 8,225 $ 8,793 $ 140 $ 2,997 $ 3,137 Reclassification adjustment for net realized (gains) losses included in net income — (245 ) (245 ) — — — Net unrealized gains (losses) 568 7,980 8,548 140 2,997 3,137 Tax effect — (2,713 ) (2,713 ) — (1,019 ) (1,019 ) Unrealized gains (losses), net of tax $ 568 $ 5,267 $ 5,835 $ 140 $ 1,978 $ 2,118 The following table summarizes the changes in AOCI by component for the: Three Months Ended September 30 2016 2015 Unrealized Unrealized Defined Total Unrealized Unrealized Defined Total Balance, July 1 $ 10,982 $ (100 ) $ (3,315 ) $ 7,567 $ 1,937 $ — $ (3,808 ) $ (1,871 ) OCI before reclassifications (2,548 ) 91 — (2,457 ) 5,301 — — 5,301 Amounts reclassified from AOCI — — — — — — — — Subtotal (2,548 ) 91 — (2,457 ) 5,301 — — 5,301 Tax effect 937 (31 ) — 906 (1,818 ) — — (1,818 ) OCI, net of tax (1,611 ) 60 — (1,551 ) 3,483 — — 3,483 Balance, September 30 $ 9,371 $ (40 ) $ (3,315 ) $ 6,016 $ 5,420 $ — $ (3,808 ) $ 1,612 Nine Months Ended September 30 2016 2015 Unrealized Unrealized Defined Total Unrealized Unrealized Defined Total Balance, January 1 $ 3,536 $ — $ (3,315 ) $ 221 $ 3,302 $ — $ (3,808 ) $ (506 ) OCI before reclassifications 8,793 (61 ) — 8,732 3,137 — — 3,137 Amounts reclassified from AOCI (245 ) — — (245 ) — — — — Subtotal 8,548 (61 ) — 8,487 3,137 — — 3,137 Tax effect (2,713 ) 21 — (2,692 ) (1,019 ) — — (1,019 ) OCI, net of tax 5,835 (40 ) — 5,795 2,118 — — 2,118 Balance, September 30 $ 9,371 $ (40 ) $ (3,315 ) $ 6,016 $ 5,420 $ — $ (3,808 ) $ 1,612 |
Parent Company Only Financial34
Parent Company Only Financial Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Interim Condensed Balance Sheets | Interim Condensed Balance Sheets September 30 December 31 ASSETS Cash on deposit at the Bank $ 1,250 $ 4,125 AFS securities 251 257 Investments in subsidiaries 145,320 133,883 Premises and equipment 1,983 2,014 Other assets 53,509 53,396 TOTAL ASSETS $ 202,313 $ 193,675 LIABILITIES AND SHAREHOLDERS’ EQUITY Other liabilities $ 7,129 $ 9,704 Shareholders' equity 195,184 183,971 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 202,313 $ 193,675 |
Interim Condensed Statements of Income | Interim Condensed Statements of Income Three Months Ended Nine Months Ended 2016 2015 2016 2015 Income Dividends from subsidiaries $ 2,000 $ 1,700 $ 5,600 $ 5,000 Interest income 3 4 11 75 Management fee and other 1,680 1,859 4,962 4,913 Total income 3,683 3,563 10,573 9,988 Expenses Compensation and benefits 1,196 1,228 3,580 3,658 Occupancy and equipment 438 415 1,281 1,226 Audit and related fees 193 101 389 316 Other 427 501 1,561 1,533 Total expenses 2,254 2,245 6,811 6,733 Income before income tax benefit and equity in undistributed earnings of subsidiaries 1,429 1,318 3,762 3,255 Federal income tax benefit 199 123 616 588 Income before equity in undistributed earnings of subsidiaries 1,628 1,441 4,378 3,843 Undistributed earnings of subsidiaries 1,965 2,622 5,639 7,991 Net income $ 3,593 $ 4,063 $ 10,017 $ 11,834 |
Interim Condensed Statements of Cash Flows | Interim Condensed Statements of Cash Flows Nine Months Ended 2016 2015 Operating activities Net income $ 10,017 $ 11,834 Adjustments to reconcile net income to cash provided by operations Undistributed earnings of subsidiaries (5,639 ) (7,991 ) Undistributed earnings of equity securities without readily determinable fair values (287 ) (364 ) Share-based payment awards under equity compensation plan 443 425 Depreciation 117 113 Changes in operating assets and liabilities which provided (used) cash Other assets 177 406 Accrued interest and other liabilities (2,575 ) 94 Net cash provided by (used in) operating activities 2,253 4,517 Investing activities Maturities, calls, principal payments, and sales of AFS securities — 3,000 Purchases of premises and equipment (86 ) (146 ) Net (advances to) repayments from subsidiaries — 300 Net cash provided by (used in) investing activities (86 ) 3,154 Financing activities Net increase (decrease) in borrowed funds — (211 ) Cash dividends paid on common stock (5,697 ) (5,416 ) Proceeds from the issuance of common stock 3,683 3,310 Common stock repurchased (2,749 ) (3,588 ) Common stock purchased for deferred compensation obligations (279 ) (279 ) Net cash provided by (used in) financing activities (5,042 ) (6,184 ) Increase (decrease) in cash and cash equivalents (2,875 ) 1,487 Cash and cash equivalents at beginning of period 4,125 1,035 Cash and cash equivalents at end of period $ 1,250 $ 2,522 |
Computation of Earnings Per C35
Computation of Earnings Per Common Share (Schedule of Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Earnings Per Share [Abstract] | |||||
Average number of common shares outstanding for basic calculation | 7,824,751 | 7,768,230 | 7,813,084 | 7,773,655 | |
Average potential effect of common shares in the Directors Plan | [1] | 186,667 | 178,882 | 184,996 | 177,531 |
Average number of common shares outstanding used to calculate diluted earnings per common share | 8,011,418 | 7,947,112 | 7,998,080 | 7,951,186 | |
Net income | $ 3,593 | $ 4,063 | $ 10,017 | $ 11,834 | |
Basic (in dollars per share) | $ 0.46 | $ 0.52 | $ 1.28 | $ 1.52 | |
Diluted (in dollars per share) | $ 0.45 | $ 0.51 | $ 1.25 | $ 1.49 | |
[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 | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 549,893 | $ 654,348 |
Gross Unrealized Gains | 14,768 | 9,816 |
Gross Unrealized Losses | 432 | 4,028 |
AFS securities | 564,229 | 660,136 |
Government sponsored enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 340 | 24,407 |
Gross Unrealized Gains | 4 | 13 |
Gross Unrealized Losses | 0 | 75 |
AFS securities | 344 | 24,345 |
States and political subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 211,073 | 224,752 |
Gross Unrealized Gains | 8,627 | 7,511 |
Gross Unrealized Losses | 11 | 46 |
AFS securities | 219,689 | 232,217 |
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 | 55 | 334 |
AFS securities | 3,145 | 2,866 |
Preferred stocks [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 3,800 | 3,800 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 212 | 501 |
AFS securities | 3,588 | 3,299 |
Mortgage-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 222,342 | 264,109 |
Gross Unrealized Gains | 4,341 | 1,156 |
Gross Unrealized Losses | 34 | 1,881 |
AFS securities | 226,649 | 263,384 |
Collateralized mortgage obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 109,138 | 134,080 |
Gross Unrealized Gains | 1,796 | 1,136 |
Gross Unrealized Losses | 120 | 1,191 |
AFS securities | $ 110,814 | $ 134,025 |
AFS Securities (Amortized cos37
AFS Securities (Amortized cost and fair value of AFS securities by contractual maturity) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Rolling Maturity [Abstract] | ||
Maturing, Due in One Year or Less | $ 26,171 | |
Maturing, After One Year But Within Five Years | 71,388 | |
Maturing, After Five Years But Within Ten Years | 84,192 | |
Maturing, After Ten Years | 29,662 | |
Securities With Variable Monthly Payments or Noncontractual Maturities | 338,480 | |
Amortized Cost | 549,893 | $ 654,348 |
Available-for-sale Securities, Debt Maturities, Fair Value, Rolling Maturity [Abstract] | ||
Maturing, Due in One Year or Less, Fair value | 26,277 | |
Maturing, After One Year But Within Five Years, Fair value | 73,959 | |
Maturing, After Five Years But Within Ten Years, Fair value | 88,507 | |
Maturing, After Ten Years, Fair value | 31,290 | |
Securities With Variable Monthly Payments or Noncontractual Maturities, Fair value | 344,196 | |
Total, Fair value | 564,229 | 660,136 |
Government sponsored enterprises [Member] | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Rolling Maturity [Abstract] | ||
Maturing, Due in One Year or Less | 32 | |
Maturing, After One Year But Within Five Years | 0 | |
Maturing, After Five Years But Within Ten Years | 308 | |
Maturing, After Ten Years | 0 | |
Securities With Variable Monthly Payments or Noncontractual Maturities | 0 | |
Amortized Cost | 340 | 24,407 |
Available-for-sale Securities, Debt Maturities, Fair Value, Rolling Maturity [Abstract] | ||
Total, Fair value | 344 | 24,345 |
States and political subdivisions [Member] | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Rolling Maturity [Abstract] | ||
Maturing, Due in One Year or Less | 26,139 | |
Maturing, After One Year But Within Five Years | 71,388 | |
Maturing, After Five Years But Within Ten Years | 83,884 | |
Maturing, After Ten Years | 29,662 | |
Securities With Variable Monthly Payments or Noncontractual Maturities | 0 | |
Amortized Cost | 211,073 | 224,752 |
Available-for-sale Securities, Debt Maturities, Fair Value, Rolling Maturity [Abstract] | ||
Total, Fair value | 219,689 | 232,217 |
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 | 3,145 | 2,866 |
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 | 3,800 |
Available-for-sale Securities, Debt Maturities, Fair Value, Rolling Maturity [Abstract] | ||
Total, Fair value | 3,588 | 3,299 |
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 | 222,342 | |
Amortized Cost | 222,342 | 264,109 |
Available-for-sale Securities, Debt Maturities, Fair Value, Rolling Maturity [Abstract] | ||
Total, Fair value | 226,649 | 263,384 |
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 | 109,138 | |
Amortized Cost | 109,138 | 134,080 |
Available-for-sale Securities, Debt Maturities, Fair Value, Rolling Maturity [Abstract] | ||
Total, Fair value | $ 110,814 | $ 134,025 |
AFS Securities (Activity relate
AFS Securities (Activity related to sales of AFS securities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from sales of AFS of securities | $ 0 | $ 35,664 | $ 0 | |
Gross realized gains (losses) | 0 | $ 0 | 245 | $ 0 |
Applicable income tax expense | $ 0 | $ 83 |
AFS Securities (AFS securities
AFS Securities (AFS securities with gross unrealized losses) (Details) $ in Thousands | Sep. 30, 2016USD ($)Securities | Dec. 31, 2015USD ($)Securities |
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | $ 48 | $ 1,311 |
Fair Value, Less Than Twelve Months | 22,146 | 188,681 |
Gross Unrealized Losses, Twelve Months or More | 384 | 2,717 |
Fair Value, Twelve Months or More | 19,279 | 77,609 |
Total Unrealized Losses | $ 432 | $ 4,028 |
Number of Securities in an unrealized loss position, Less Than Twelve Months, Fair Value | Securities | 4 | 36 |
Number of Securities in an unrealized loss position, Twelve Months or More, Fair Value | Securities | 9 | 26 |
Number of Securities in an unrealized loss position, Total Unrealized Losses | Securities | 13 | 62 |
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 | 0 | 75 |
Fair Value, Twelve Months or More | 0 | 4,925 |
Total Unrealized Losses | 0 | 75 |
States and political subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | 0 | 14 |
Fair Value, Less Than Twelve Months | 0 | 3,355 |
Gross Unrealized Losses, Twelve Months or More | 11 | 32 |
Fair Value, Twelve Months or More | 394 | 2,623 |
Total Unrealized Losses | 11 | 46 |
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 | 55 | 334 |
Fair Value, Twelve Months or More | 3,145 | 2,866 |
Total Unrealized Losses | 55 | 334 |
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 | 212 | 501 |
Fair Value, Twelve Months or More | 3,588 | 3,299 |
Total Unrealized Losses | 212 | 501 |
Mortgage-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | 34 | 882 |
Fair Value, Less Than Twelve Months | 15,672 | 131,885 |
Gross Unrealized Losses, Twelve Months or More | 0 | 999 |
Fair Value, Twelve Months or More | 0 | 37,179 |
Total Unrealized Losses | 34 | 1,881 |
Collateralized mortgage obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | 14 | 415 |
Fair Value, Less Than Twelve Months | 6,474 | 53,441 |
Gross Unrealized Losses, Twelve Months or More | 106 | 776 |
Fair Value, Twelve Months or More | 12,152 | 26,717 |
Total Unrealized Losses | $ 120 | $ 1,191 |
Loans and ALLL (Summary of chan
Loans and ALLL (Summary of changes in ALLL by segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Summary of changes in the ALLL and the recorded investment in loans by segments | ||||
Allowance for loan losses, Beginning Balance | $ 7,600 | $ 9,000 | $ 7,400 | $ 10,100 |
Allowance for loan losses, Charge-offs | (131) | (210) | (680) | (666) |
Allowance for loan losses, Recoveries | 314 | 148 | 895 | 765 |
Allowance for loan losses, Provision for loan losses | 17 | (738) | 185 | (1,999) |
Allowance for loan losses, Ending Balance | 7,800 | 8,200 | 7,800 | 8,200 |
Commercial [Member] | ||||
Summary of changes in the ALLL and the recorded investment in loans by segments | ||||
Allowance for loan losses, Beginning Balance | 2,119 | 3,482 | 2,171 | 3,821 |
Allowance for loan losses, Charge-offs | 0 | (61) | (48) | (89) |
Allowance for loan losses, Recoveries | 118 | 68 | 396 | 387 |
Allowance for loan losses, Provision for loan losses | (367) | (500) | (649) | (1,130) |
Allowance for loan losses, Ending Balance | 1,870 | 2,989 | 1,870 | 2,989 |
Agricultural [Member] | ||||
Summary of changes in the ALLL and the recorded investment in loans by segments | ||||
Allowance for loan losses, Beginning Balance | 534 | 363 | 329 | 216 |
Allowance for loan losses, Charge-offs | 0 | 0 | 0 | 0 |
Allowance for loan losses, Recoveries | 0 | 0 | 92 | 72 |
Allowance for loan losses, Provision for loan losses | 612 | 15 | 725 | 90 |
Allowance for loan losses, Ending Balance | 1,146 | 378 | 1,146 | 378 |
Residential Real Estate [Member] | ||||
Summary of changes in the ALLL and the recorded investment in loans by segments | ||||
Allowance for loan losses, Beginning Balance | 3,130 | 3,512 | 3,330 | 4,235 |
Allowance for loan losses, Charge-offs | (57) | (70) | (426) | (325) |
Allowance for loan losses, Recoveries | 153 | 33 | 248 | 152 |
Allowance for loan losses, Provision for loan losses | (452) | (163) | (378) | (750) |
Allowance for loan losses, Ending Balance | 2,774 | 3,312 | 2,774 | 3,312 |
Consumer Portfolio Segment [Member] | ||||
Summary of changes in the ALLL and the recorded investment in loans by segments | ||||
Allowance for loan losses, Beginning Balance | 541 | 591 | 522 | 645 |
Allowance for loan losses, Charge-offs | (74) | (79) | (206) | (252) |
Allowance for loan losses, Recoveries | 43 | 47 | 159 | 154 |
Allowance for loan losses, Provision for loan losses | 94 | (50) | 129 | (38) |
Allowance for loan losses, Ending Balance | 604 | 509 | 604 | 509 |
Unallocated [Member] | ||||
Summary of changes in the ALLL and the recorded investment in loans by segments | ||||
Allowance for loan losses, Beginning Balance | 1,276 | 1,052 | 1,048 | 1,183 |
Allowance for loan losses, Charge-offs | 0 | 0 | 0 | 0 |
Allowance for loan losses, Recoveries | 0 | 0 | 0 | 0 |
Allowance for loan losses, Provision for loan losses | 130 | (40) | 358 | (171) |
Allowance for loan losses, Ending Balance | $ 1,406 | $ 1,012 | $ 1,406 | $ 1,012 |
Loans and ALLL (Summary of reco
Loans and ALLL (Summary of recorded investment in loans by segments) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment, ALLL | $ 2,523 | $ 2,820 | ||||
Collectively evaluated for impairment, ALLL | 5,277 | 4,580 | ||||
Total, ALLL | 7,800 | $ 7,600 | 7,400 | $ 8,200 | $ 9,000 | $ 10,100 |
Individually evaluated for impairment, Loans | 21,060 | 22,338 | ||||
Collectively evaluated for impairment, Loans | 968,306 | 828,154 | ||||
Total | 989,366 | 850,492 | ||||
Commercial [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment, ALLL | 804 | 829 | ||||
Collectively evaluated for impairment, ALLL | 1,066 | 1,342 | ||||
Total, ALLL | 1,870 | 2,119 | 2,171 | 2,989 | 3,482 | 3,821 |
Individually evaluated for impairment, Loans | 7,719 | 7,969 | ||||
Collectively evaluated for impairment, Loans | 547,128 | 440,412 | ||||
Total | 554,847 | 448,381 | ||||
Agricultural [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment, ALLL | 16 | 2 | ||||
Collectively evaluated for impairment, ALLL | 1,130 | 327 | ||||
Total, ALLL | 1,146 | 534 | 329 | 378 | 363 | 216 |
Individually evaluated for impairment, Loans | 4,520 | 4,068 | ||||
Collectively evaluated for impairment, Loans | 129,117 | 111,843 | ||||
Total | 133,637 | 115,911 | ||||
Residential Real Estate [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment, ALLL | 1,703 | 1,989 | ||||
Collectively evaluated for impairment, ALLL | 1,071 | 1,341 | ||||
Total, ALLL | 2,774 | 3,130 | 3,330 | 3,312 | 3,512 | 4,235 |
Individually evaluated for impairment, Loans | 8,792 | 10,266 | ||||
Collectively evaluated for impairment, Loans | 251,330 | 241,235 | ||||
Total | 260,122 | 251,501 | ||||
Total Consumer [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment, ALLL | 0 | 0 | ||||
Collectively evaluated for impairment, ALLL | 604 | 522 | ||||
Total, ALLL | 604 | 541 | 522 | 509 | 591 | 645 |
Individually evaluated for impairment, Loans | 29 | 35 | ||||
Collectively evaluated for impairment, Loans | 40,731 | 34,664 | ||||
Total | 40,760 | 34,699 | ||||
Unallocated [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment, ALLL | 0 | 0 | ||||
Collectively evaluated for impairment, ALLL | 1,406 | 1,048 | ||||
Total, ALLL | $ 1,406 | $ 1,276 | $ 1,048 | $ 1,012 | $ 1,052 | $ 1,183 |
Loans and ALLL (Credit quality
Loans and ALLL (Credit quality indicators for commercial and agricultural credit exposures) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 989,366 | $ 850,492 |
Total commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 554,847 | 448,381 |
Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 402,729 | 343,617 |
Commercial other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 124,286 | 104,764 |
Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 27,832 | 0 |
Total agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 133,637 | 115,911 |
Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 87,132 | 76,542 |
Agricultural other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 46,505 | 39,369 |
Commercial And Agricultural Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 688,484 | 564,292 |
1 - Excellent [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 529 | 499 |
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 | 529 | 499 |
1 - Excellent [Member] | Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
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 |
1 - Excellent [Member] | Commercial And Agricultural Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 529 | 499 |
2 - High quality [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 46,844 | 18,660 |
2 - High quality [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 8,819 | 7,397 |
2 - High quality [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 10,193 | 11,263 |
2 - High quality [Member] | Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 27,832 | 0 |
2 - High quality [Member] | Total agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 5,390 | 6,797 |
2 - High quality [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 3,828 | 4,647 |
2 - High quality [Member] | Agricultural other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,562 | 2,150 |
2 - High quality [Member] | Commercial And Agricultural Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 52,234 | 25,457 |
3 - High satisfactory [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 145,452 | 128,422 |
3 - High satisfactory [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 107,613 | 99,136 |
3 - High satisfactory [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 37,839 | 29,286 |
3 - High satisfactory [Member] | Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
3 - High satisfactory [Member] | Total agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 35,169 | 41,925 |
3 - High satisfactory [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 23,612 | 28,886 |
3 - High satisfactory [Member] | Agricultural other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 11,557 | 13,039 |
3 - High satisfactory [Member] | Commercial And Agricultural Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 180,621 | 170,347 |
4 - Low satisfactory [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 349,271 | 285,418 |
4 - Low satisfactory [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 275,806 | 222,431 |
4 - Low satisfactory [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 73,465 | 62,987 |
4 - Low satisfactory [Member] | Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
4 - Low satisfactory [Member] | Total agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 75,149 | 59,445 |
4 - Low satisfactory [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 50,083 | 37,279 |
4 - Low satisfactory [Member] | Agricultural other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 25,066 | 22,166 |
4 - Low satisfactory [Member] | Commercial And Agricultural Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 424,420 | 344,863 |
5 - Special mention [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 5,181 | 4,974 |
5 - Special mention [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 4,448 | 4,501 |
5 - Special mention [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 733 | 473 |
5 - Special mention [Member] | Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
5 - Special mention [Member] | Total agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 13,293 | 5,836 |
5 - Special mention [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 6,483 | 3,961 |
5 - Special mention [Member] | Agricultural other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 6,810 | 1,875 |
5 - Special mention [Member] | Commercial And Agricultural Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 18,474 | 10,810 |
6 - Substandard [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 7,564 | 10,197 |
6 - Substandard [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 6,037 | 9,941 |
6 - Substandard [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,527 | 256 |
6 - Substandard [Member] | Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
6 - Substandard [Member] | Total agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 4,636 | 1,762 |
6 - Substandard [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 3,126 | 1,623 |
6 - Substandard [Member] | Agricultural other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,510 | 139 |
6 - Substandard [Member] | Commercial And Agricultural Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 12,200 | 11,959 |
7 - Vulnerable [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 6 | 211 |
7 - Vulnerable [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 6 | 211 |
7 - Vulnerable [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
7 - Vulnerable [Member] | Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
7 - Vulnerable [Member] | Total agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 146 |
7 - Vulnerable [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 146 |
7 - Vulnerable [Member] | Agricultural other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
7 - Vulnerable [Member] | Commercial And Agricultural Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 6 | 357 |
8 - Doubtful [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
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 | 0 |
8 - Doubtful [Member] | Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
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 |
8 - Doubtful [Member] | Commercial And Agricultural Portfolio Segment [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 | Sep. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | $ 847 | $ 0 |
Nonaccrual | 690 | 792 |
Total Past Due and Nonaccrual | 5,635 | 4,798 |
Current | 983,731 | 845,694 |
Total | 989,366 | 850,492 |
Total commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 184 | 0 |
Nonaccrual | 68 | 211 |
Total Past Due and Nonaccrual | 1,765 | 1,015 |
Current | 553,082 | 447,366 |
Total | 554,847 | 448,381 |
Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 160 | 0 |
Nonaccrual | 68 | 211 |
Total Past Due and Nonaccrual | 1,255 | 997 |
Current | 401,474 | 342,620 |
Total | 402,729 | 343,617 |
Commercial other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 24 | 0 |
Nonaccrual | 0 | 0 |
Total Past Due and Nonaccrual | 510 | 18 |
Current | 123,776 | 104,746 |
Total | 124,286 | 104,764 |
Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 0 |
Nonaccrual | 0 | 0 |
Total Past Due and Nonaccrual | 0 | 0 |
Current | 27,832 | 0 |
Total | 27,832 | 0 |
Total agricultural [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 471 | 0 |
Nonaccrual | 0 | 146 |
Total Past Due and Nonaccrual | 1,383 | 1,232 |
Current | 132,254 | 114,679 |
Total | 133,637 | 115,911 |
Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 465 | 0 |
Nonaccrual | 0 | 146 |
Total Past Due and Nonaccrual | 1,163 | 1,232 |
Current | 85,969 | 75,310 |
Total | 87,132 | 76,542 |
Agricultural other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 6 | 0 |
Nonaccrual | 0 | 0 |
Total Past Due and Nonaccrual | 220 | 0 |
Current | 46,285 | 39,369 |
Total | 46,505 | 39,369 |
Total residential real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 192 | 0 |
Nonaccrual | 622 | 435 |
Total Past Due and Nonaccrual | 2,436 | 2,520 |
Current | 257,686 | 248,981 |
Total | 260,122 | 251,501 |
Residential real estate senior liens [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 192 | 0 |
Nonaccrual | 595 | 429 |
Total Past Due and Nonaccrual | 2,104 | 2,241 |
Current | 210,826 | 199,622 |
Total | 212,930 | 201,863 |
Residential real estate junior liens [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 0 |
Nonaccrual | 27 | 6 |
Total Past Due and Nonaccrual | 57 | 54 |
Current | 8,342 | 9,325 |
Total | 8,399 | 9,379 |
Residential real estate home equity lines of credit [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 0 |
Nonaccrual | 0 | 0 |
Total Past Due and Nonaccrual | 275 | 225 |
Current | 38,518 | 40,034 |
Total | 38,793 | 40,259 |
Total Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 0 |
Nonaccrual | 0 | 0 |
Total Past Due and Nonaccrual | 51 | 31 |
Current | 40,709 | 34,668 |
Total | 40,760 | 34,699 |
Consumer secured [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 0 |
Nonaccrual | 0 | 0 |
Total Past Due and Nonaccrual | 38 | 27 |
Current | 36,893 | 30,839 |
Total | 36,931 | 30,866 |
Consumer Unsecured Financing Receivable [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 0 |
Nonaccrual | 0 | 0 |
Total Past Due and Nonaccrual | 13 | 4 |
Current | 3,816 | 3,829 |
Total | 3,829 | 3,833 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 3,390 | 2,566 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 1,263 | 523 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 979 | 505 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 284 | 18 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Total agricultural [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 731 | 196 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 517 | 196 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Agricultural other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 214 | 0 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Total residential real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 1,367 | 1,816 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Residential real estate senior liens [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 1,077 | 1,551 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Residential real estate junior liens [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 15 | 40 |
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] | ||
Financing Receivable, Recorded Investment, Past Due | 275 | 225 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Total Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 29 | 31 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Consumer secured [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 19 | 27 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Consumer Unsecured Financing Receivable [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 10 | 4 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 708 | 1,440 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 250 | 281 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 48 | 281 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 202 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Total agricultural [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 181 | 890 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 181 | 890 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Agricultural other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 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] | ||
Financing Receivable, Recorded Investment, Past Due | 255 | 269 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Residential real estate senior liens [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 240 | 261 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Residential real estate junior liens [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 15 | 8 |
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] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Total Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 22 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Consumer secured [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 19 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Consumer Unsecured Financing Receivable [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | $ 3 | $ 0 |
Loans and ALLL (Summary of info
Loans and ALLL (Summary of information pertaining to impaired loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Impaired loans with a valuation allowance, Outstanding Balance | $ 16,067 | $ 16,067 | $ 16,141 | ||
Impaired loans without a valuation allowance, Outstanding Balance | 4,993 | 4,993 | 6,197 | ||
Impaired loans, Outstanding Balance | 21,060 | 21,060 | 22,338 | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Impaired loans with a valuation allowance, Unpaid Principal Balance | 16,781 | 16,781 | 17,048 | ||
Impaired loans without a valuation allowance, Unpaid Principal Balance | 5,317 | 5,317 | 6,649 | ||
Impaired loans, Unpaid Principal Balance | 22,098 | 22,098 | 23,697 | ||
Impaired loans, Valuation Allowance | 2,523 | 2,523 | 2,820 | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Impaired loans with a valuation allowance, Average Outstanding Balance | 15,694 | $ 18,179 | 15,780 | $ 18,950 | |
Impaired loans without a valuation allowance, Average Outstanding Balance | 5,042 | 3,964 | 5,266 | 4,516 | |
Impaired loans, Average Outstanding Balance | 20,736 | 22,143 | 21,046 | 23,466 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||||
Impaired loans with a valuation allowance, Interest Income Recognized | 182 | 224 | 551 | 660 | |
Impaired loans without a valuation allowance, Interest Income Recognized | 70 | 62 | 235 | 261 | |
Impaired loans, Interest Income Recognized | 252 | 286 | 786 | 921 | |
Total commercial [Member] | |||||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Impaired loans, Outstanding Balance | 7,719 | 7,719 | 7,969 | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Impaired loans, Unpaid Principal Balance | 7,862 | 7,862 | 8,232 | ||
Impaired loans, Valuation Allowance | 804 | 804 | 829 | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Impaired loans, Average Outstanding Balance | 7,217 | 9,327 | 7,133 | 10,218 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||||
Impaired loans, Interest Income Recognized | 104 | 142 | 327 | 484 | |
Commercial real estate [Member] | |||||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Impaired loans with a valuation allowance, Outstanding Balance | 5,669 | 5,669 | 5,659 | ||
Impaired loans without a valuation allowance, Outstanding Balance | 590 | 590 | 2,122 | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Impaired loans with a valuation allowance, Unpaid Principal Balance | 5,788 | 5,788 | 5,777 | ||
Impaired loans without a valuation allowance, Unpaid Principal Balance | 603 | 603 | 2,256 | ||
Impaired loans, Valuation Allowance | 719 | 719 | 818 | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Impaired loans with a valuation allowance, Average Outstanding Balance | 5,699 | 7,532 | 5,748 | 7,287 | |
Impaired loans without a valuation allowance, Average Outstanding Balance | 705 | 1,432 | 995 | 2,356 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||||
Impaired loans with a valuation allowance, Interest Income Recognized | 90 | 112 | 259 | 295 | |
Impaired loans without a valuation allowance, Interest Income Recognized | 10 | 28 | 57 | 163 | |
Commercial other [Member] | |||||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Impaired loans with a valuation allowance, Outstanding Balance | 1,399 | 1,399 | 8 | ||
Impaired loans without a valuation allowance, Outstanding Balance | 61 | 61 | 180 | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Impaired loans with a valuation allowance, Unpaid Principal Balance | 1,399 | 1,399 | 8 | ||
Impaired loans without a valuation allowance, Unpaid Principal Balance | 72 | 72 | 191 | ||
Impaired loans, Valuation Allowance | 85 | 85 | 11 | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Impaired loans with a valuation allowance, Average Outstanding Balance | 746 | 280 | 298 | 481 | |
Impaired loans without a valuation allowance, Average Outstanding Balance | 67 | 83 | 92 | 94 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||||
Impaired loans with a valuation allowance, Interest Income Recognized | 2 | 0 | 5 | 19 | |
Impaired loans without a valuation allowance, Interest Income Recognized | 2 | 2 | 6 | 7 | |
Total agricultural [Member] | |||||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Impaired loans, Outstanding Balance | 4,520 | 4,520 | 4,068 | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Impaired loans, Unpaid Principal Balance | 4,520 | 4,520 | 4,068 | ||
Impaired loans, Valuation Allowance | 16 | 16 | 2 | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Impaired loans, Average Outstanding Balance | 4,375 | 2,481 | 4,197 | 2,000 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||||
Impaired loans, Interest Income Recognized | 58 | 32 | 164 | 82 | |
Agricultural real estate [Member] | |||||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Impaired loans with a valuation allowance, Outstanding Balance | 181 | 181 | 0 | ||
Impaired loans without a valuation allowance, Outstanding Balance | 3,357 | 3,357 | 3,549 | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Impaired loans with a valuation allowance, Unpaid Principal Balance | 181 | 181 | 0 | ||
Impaired loans without a valuation allowance, Unpaid Principal Balance | 3,357 | 3,357 | 3,549 | ||
Impaired loans, Valuation Allowance | 15 | 15 | 0 | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Impaired loans with a valuation allowance, Average Outstanding Balance | 181 | 0 | 91 | 29 | |
Impaired loans without a valuation allowance, Average Outstanding Balance | 3,360 | 1,819 | 3,454 | 1,615 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||||
Impaired loans with a valuation allowance, Interest Income Recognized | 4 | 0 | 6 | 1 | |
Impaired loans without a valuation allowance, Interest Income Recognized | 42 | 23 | 130 | 64 | |
Agricultural other [Member] | |||||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Impaired loans with a valuation allowance, Outstanding Balance | 134 | 134 | 335 | ||
Impaired loans without a valuation allowance, Outstanding Balance | 848 | 848 | 184 | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Impaired loans with a valuation allowance, Unpaid Principal Balance | 134 | 134 | 335 | ||
Impaired loans without a valuation allowance, Unpaid Principal Balance | 848 | 848 | 184 | ||
Impaired loans, Valuation Allowance | 1 | 1 | 2 | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Impaired loans with a valuation allowance, Average Outstanding Balance | 67 | 168 | 78 | 56 | |
Impaired loans without a valuation allowance, Average Outstanding Balance | 767 | 494 | 574 | 300 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||||
Impaired loans with a valuation allowance, Interest Income Recognized | 1 | 4 | 1 | 4 | |
Impaired loans without a valuation allowance, Interest Income Recognized | 11 | 5 | 27 | 13 | |
Total residential real estate [Member] | |||||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Impaired loans, Outstanding Balance | 8,792 | 8,792 | 10,266 | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Impaired loans, Unpaid Principal Balance | 9,687 | 9,687 | 11,362 | ||
Impaired loans, Valuation Allowance | 1,703 | 1,703 | 1,989 | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Impaired loans, Average Outstanding Balance | 9,113 | 10,295 | 9,683 | 11,200 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||||
Impaired loans, Interest Income Recognized | 89 | 111 | 292 | 352 | |
Residential real estate senior liens [Member] | |||||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Impaired loans with a valuation allowance, Outstanding Balance | 8,608 | 8,608 | 9,996 | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Impaired loans with a valuation allowance, Unpaid Principal Balance | 9,193 | 9,193 | 10,765 | ||
Impaired loans, Valuation Allowance | 1,688 | 1,688 | 1,959 | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Impaired loans with a valuation allowance, Average Outstanding Balance | 8,896 | 10,021 | 9,439 | 10,812 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||||
Impaired loans with a valuation allowance, Interest Income Recognized | 85 | 106 | 278 | 323 | |
Residential real estate junior liens [Member] | |||||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Impaired loans with a valuation allowance, Outstanding Balance | 76 | 76 | 143 | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Impaired loans with a valuation allowance, Unpaid Principal Balance | 86 | 86 | 163 | ||
Impaired loans, Valuation Allowance | 15 | 15 | 30 | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Impaired loans with a valuation allowance, Average Outstanding Balance | 105 | 138 | 126 | 197 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||||
Impaired loans with a valuation allowance, Interest Income Recognized | 0 | 1 | 2 | 15 | |
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 | 0 | ||
Impaired loans without a valuation allowance, Outstanding Balance | 108 | 108 | 127 | ||
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 | 408 | 408 | 434 | ||
Impaired loans, Valuation Allowance | 0 | 0 | 0 | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Impaired loans with a valuation allowance, Average Outstanding Balance | 0 | 0 | 0 | 42 | |
Impaired loans without a valuation allowance, Average Outstanding Balance | 112 | 136 | 118 | 149 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||||
Impaired loans with a valuation allowance, Interest Income Recognized | 0 | 0 | 0 | 0 | |
Impaired loans without a valuation allowance, Interest Income Recognized | 4 | 4 | 12 | 14 | |
Total Consumer [Member] | |||||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Impaired loans, Outstanding Balance | 29 | 29 | 35 | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Impaired loans, Unpaid Principal Balance | 29 | 29 | 35 | ||
Impaired loans, Valuation Allowance | 0 | 0 | 0 | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Impaired loans, Average Outstanding Balance | 31 | 40 | 33 | 48 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||||
Impaired loans, Interest Income Recognized | 1 | 1 | 3 | 3 | |
Consumer secured [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 | 29 | 29 | 35 | ||
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 | 29 | 29 | 35 | ||
Impaired loans, Valuation Allowance | 0 | 0 | $ 0 | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Impaired loans with a valuation allowance, Average Outstanding Balance | 0 | 40 | 0 | 46 | |
Impaired loans without a valuation allowance, Average Outstanding Balance | 31 | 0 | 33 | 2 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||||
Impaired loans with a valuation allowance, Interest Income Recognized | 0 | 1 | 0 | 3 | |
Impaired loans without a valuation allowance, Interest Income Recognized | $ 1 | $ 0 | $ 3 | $ 0 |
Loans and ALLL (Summary of in45
Loans and ALLL (Summary of information pertaining to TDRs) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016USD ($)loan | Sep. 30, 2015USD ($)loan | Sep. 30, 2016USD ($)loan | Sep. 30, 2015USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 3 | 7 | 9 | 25 |
Pre-Modification Recorded Investment | $ 1,634 | $ 2,713 | $ 1,863 | $ 4,640 |
Post-Modification Recorded Investment | $ 1,634 | $ 2,713 | $ 1,863 | $ 4,640 |
Commercial other [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 1 | 3 | 1 | 8 |
Pre-Modification Recorded Investment | $ 1,315 | $ 1,926 | $ 1,315 | $ 2,511 |
Post-Modification Recorded Investment | $ 1,315 | $ 1,926 | $ 1,315 | $ 2,511 |
Agricultural other [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 2 | 3 | 5 | 10 |
Pre-Modification Recorded Investment | $ 319 | $ 636 | $ 520 | $ 1,406 |
Post-Modification Recorded Investment | $ 319 | $ 636 | $ 520 | $ 1,406 |
Total residential real estate [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 0 | 1 | 2 | 7 |
Pre-Modification Recorded Investment | $ 0 | $ 151 | $ 26 | $ 723 |
Post-Modification Recorded Investment | $ 0 | $ 151 | $ 26 | $ 723 |
Residential real estate senior liens [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 0 | 1 | 2 | 5 |
Pre-Modification Recorded Investment | $ 0 | $ 151 | $ 26 | $ 599 |
Post-Modification Recorded Investment | $ 0 | $ 151 | $ 26 | $ 599 |
Residential real estate junior liens [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 0 | 0 | 0 | 1 |
Pre-Modification Recorded Investment | $ 0 | $ 0 | $ 0 | $ 30 |
Post-Modification Recorded Investment | $ 0 | $ 0 | $ 0 | $ 30 |
Residential real estate home equity lines of credit [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 0 | 0 | 0 | 1 |
Pre-Modification Recorded Investment | $ 0 | $ 0 | $ 0 | $ 94 |
Post-Modification Recorded Investment | $ 0 | $ 0 | $ 0 | $ 94 |
Consumer Unsecured Financing Receivable [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 0 | 0 | 1 | 0 |
Pre-Modification Recorded Investment | $ 0 | $ 0 | $ 2 | $ 0 |
Post-Modification Recorded Investment | $ 0 | $ 0 | $ 2 | $ 0 |
Below Market Interest Rate and Extension of Amortization Period [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 2 | 0 | 6 | 8 |
Pre-Modification Recorded Investment | $ 1,620 | $ 0 | $ 1,823 | $ 899 |
Below Market Interest Rate and Extension of Amortization Period [Member] | Commercial other [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 1 | 0 | 1 | 2 |
Pre-Modification Recorded Investment | $ 1,315 | $ 0 | $ 1,315 | $ 331 |
Below Market Interest Rate and Extension of Amortization Period [Member] | Agricultural other [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 1 | 0 | 4 | 1 |
Pre-Modification Recorded Investment | $ 305 | $ 0 | $ 506 | $ 46 |
Below Market Interest Rate and Extension of Amortization Period [Member] | Total residential real estate [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 0 | 0 | 0 | 5 |
Pre-Modification Recorded Investment | $ 0 | $ 0 | $ 0 | $ 522 |
Below Market Interest Rate and Extension of Amortization Period [Member] | Residential real estate senior liens [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 0 | 0 | 0 | 3 |
Pre-Modification Recorded Investment | $ 0 | $ 0 | $ 0 | $ 398 |
Below Market Interest Rate and Extension of Amortization Period [Member] | Residential real estate junior liens [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 0 | 0 | 0 | 1 |
Pre-Modification Recorded Investment | $ 0 | $ 0 | $ 0 | $ 30 |
Below Market Interest Rate and Extension of Amortization Period [Member] | Residential real estate home equity lines of credit [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 0 | 0 | 0 | 1 |
Pre-Modification Recorded Investment | $ 0 | $ 0 | $ 0 | $ 94 |
Below Market Interest Rate and Extension of Amortization Period [Member] | Consumer Unsecured Financing Receivable [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 0 | 0 | 1 | 0 |
Pre-Modification Recorded Investment | $ 0 | $ 0 | $ 2 | $ 0 |
Interest Rate Below Market Reduction [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 1 | 7 | 3 | 17 |
Pre-Modification Recorded Investment | $ 14 | $ 2,713 | $ 40 | $ 3,741 |
Interest Rate Below Market Reduction [Member] | Commercial other [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 0 | 3 | 0 | 6 |
Pre-Modification Recorded Investment | $ 0 | $ 1,926 | $ 0 | $ 2,180 |
Interest Rate Below Market Reduction [Member] | Agricultural other [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 1 | 3 | 1 | 9 |
Pre-Modification Recorded Investment | $ 14 | $ 636 | $ 14 | $ 1,360 |
Interest Rate Below Market Reduction [Member] | Total residential real estate [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 0 | 1 | 2 | 2 |
Pre-Modification Recorded Investment | $ 0 | $ 151 | $ 26 | $ 201 |
Interest Rate Below Market Reduction [Member] | Residential real estate senior liens [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 0 | 1 | 2 | 2 |
Pre-Modification Recorded Investment | $ 0 | $ 151 | $ 26 | $ 201 |
Interest Rate Below Market Reduction [Member] | Residential real estate junior liens [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 0 | 0 | 0 | 0 |
Pre-Modification Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Interest Rate Below Market Reduction [Member] | Residential real estate home equity lines of credit [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 0 | 0 | 0 | 0 |
Pre-Modification Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Interest Rate Below Market Reduction [Member] | Consumer Unsecured Financing Receivable [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 0 | 0 | 0 | 0 |
Pre-Modification Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Loans and ALLL (Summary of Defa
Loans and ALLL (Summary of Defaulted TDRs) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016USD ($)NumberofLoan | Sep. 30, 2015USD ($)loan | Sep. 30, 2016USD ($)loan | Sep. 30, 2015USD ($)loan | Dec. 31, 2015USD ($) | |
Financing Receivable, Modifications [Line Items] | |||||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | $ 847 | $ 847 | $ 0 | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 690 | 690 | 792 | ||
Financing Receivable, Recorded Investment, Past Due And Nonaccrual Status | 5,635 | 5,635 | 4,798 | ||
Financing Receivable, Recorded Investment, Current | 983,731 | 983,731 | 845,694 | ||
Financing Receivable, Gross | $ 989,366 | $ 989,366 | 850,492 | ||
Number of Loans | 0 | 0 | |||
Commercial Other Portfolio Segment [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | $ 24 | $ 24 | 0 | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 0 | 0 | 0 | ||
Financing Receivable, Recorded Investment, Past Due And Nonaccrual Status | 510 | 510 | 18 | ||
Financing Receivable, Recorded Investment, Current | 123,776 | 123,776 | 104,746 | ||
Financing Receivable, Gross | 124,286 | 124,286 | 104,764 | ||
Commercial Other Financing Receivable [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Loans | loan | 1 | 1 | |||
Pre- Default Recorded Investment | $ 216 | $ 216 | |||
Charge-Off Recorded Upon Default | 25 | 25 | |||
Post- Default Recorded Investment | $ 191 | $ 191 | |||
Residential, Junior Liens, Financing Receivable [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 0 | 0 | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 27 | 27 | 6 | ||
Financing Receivable, Recorded Investment, Past Due And Nonaccrual Status | 57 | 57 | 54 | ||
Financing Receivable, Recorded Investment, Current | 8,342 | 8,342 | 9,325 | ||
Financing Receivable, Gross | 8,399 | 8,399 | 9,379 | ||
Residential, Senior Liens, Financing Receivable [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 192 | 192 | 0 | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 595 | 595 | 429 | ||
Financing Receivable, Recorded Investment, Past Due And Nonaccrual Status | 2,104 | 2,104 | 2,241 | ||
Financing Receivable, Recorded Investment, Current | 210,826 | 210,826 | 199,622 | ||
Financing Receivable, Gross | 212,930 | 212,930 | 201,863 | ||
Consumer Unsecured Financing Receivable [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 0 | 0 | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 0 | 0 | 0 | ||
Financing Receivable, Recorded Investment, Past Due And Nonaccrual Status | 13 | 13 | 4 | ||
Financing Receivable, Recorded Investment, Current | 3,816 | 3,816 | 3,829 | ||
Financing Receivable, Gross | 3,829 | 3,829 | 3,833 | ||
Commercial Advances to Mortgage Brokers Segment [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 0 | 0 | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 0 | 0 | 0 | ||
Financing Receivable, Recorded Investment, Past Due And Nonaccrual Status | 0 | 0 | 0 | ||
Financing Receivable, Recorded Investment, Current | 27,832 | 27,832 | 0 | ||
Financing Receivable, Gross | 27,832 | 27,832 | 0 | ||
Financing Receivables, 30 to 59 Days Past Due [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Financing Receivable, Recorded Investment, Past Due | 3,390 | 3,390 | 2,566 | ||
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Other Portfolio Segment [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Financing Receivable, Recorded Investment, Past Due | 284 | 284 | 18 | ||
Financing Receivables, 30 to 59 Days Past Due [Member] | Residential, Junior Liens, Financing Receivable [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Financing Receivable, Recorded Investment, Past Due | 15 | 15 | 40 | ||
Financing Receivables, 30 to 59 Days Past Due [Member] | Residential, Senior Liens, Financing Receivable [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Financing Receivable, Recorded Investment, Past Due | 1,077 | 1,077 | 1,551 | ||
Financing Receivables, 30 to 59 Days Past Due [Member] | Consumer Unsecured Financing Receivable [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Financing Receivable, Recorded Investment, Past Due | 10 | 10 | 4 | ||
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Advances to Mortgage Brokers Segment [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 | 0 | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Financing Receivable, Recorded Investment, Past Due | 708 | 708 | 1,440 | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Other Portfolio Segment [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Financing Receivable, Recorded Investment, Past Due | 202 | 202 | 0 | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | Residential, Junior Liens, Financing Receivable [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Financing Receivable, Recorded Investment, Past Due | 15 | 15 | 8 | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | Residential, Senior Liens, Financing Receivable [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Financing Receivable, Recorded Investment, Past Due | 240 | 240 | 261 | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | Consumer Unsecured Financing Receivable [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Financing Receivable, Recorded Investment, Past Due | 3 | 3 | 0 | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Advances to Mortgage Brokers Segment [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Financing Receivable, Recorded Investment, Past Due | $ 0 | $ 0 | $ 0 |
Loans and ALLL (Summary of TDR
Loans and ALLL (Summary of TDR loan balances) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
Troubled debt restructurings | $ 20,522 | $ 21,325 |
Loans and ALLL (Narrative) (Det
Loans and ALLL (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016USD ($)NumberofLoan | Sep. 30, 2015USD ($)loanNumberofLoan | Sep. 30, 2016USD ($)loanNumberofLoan | Sep. 30, 2015USD ($)loanNumberofLoan | Dec. 31, 2015USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Restructure of Loans through Forbearance of Principal or Accrued Interest | NumberofLoan | 0 | 0 | 0 | 0 | |
Migration analysis of loan portfolio period | 5 years | ||||
Threshold period of continuous performance to return loans to accrual status | 6 months | ||||
Advance in connection with impaired loans | $ 0 | $ 0 | $ 0 | ||
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | 0 | 0 | |||
Minimum [Member] | 4 - Low satisfactory [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Delinquency period | 10 days | ||||
Minimum [Member] | 5 - Special mention [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Delinquency period | 30 days | ||||
Maximum [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing receivable, amortization term | 30 years | ||||
Maximum [Member] | 4 - Low satisfactory [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Delinquency period | 30 days | ||||
Maximum [Member] | 5 - Special mention [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Delinquency period | 60 days | ||||
Commercial Other Financing Receivable [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Modifications, Pre-Default, Recorded Investment | $ 216 | $ 216 | |||
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down | $ 25 | $ 25 | |||
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | loan | 1 | 1 | |||
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | $ 191 | $ 191 | |||
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 | ||||
Total Consumer [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Maximum days of consumer loan charged off | 180 days | ||||
Total Consumer [Member] | Maximum [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing receivable, amortization term | 12 years | ||||
Commercial And Agricultural Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Maximum percentage of loan | 0.80 | ||||
Commercial And Agricultural Portfolio Segment [Member] | Customer Concentration Risk [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Maximum amount of loans | $ 15,000 | ||||
Commercial Advances to Mortgage Brokers Segment [Member] | Customer Concentration Risk [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Maximum amount of loans | $ 30,000 | ||||
Residential Real Estate [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Maximum percentage of loan | 0.97 | ||||
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 Rea49
Equity Securities Without Readily Determinable Fair Values (Equity securities without readily determinable fair values) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Equity Method And Other Investments [Abstract] | ||
FHLB Stock | $ 11,700 | $ 11,700 |
FRB Stock | 1,999 | 1,999 |
Other | 335 | 338 |
Total | 22,573 | 22,286 |
Investment in Corporate Settlement Solutions [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | 7,539 | 7,249 |
Investment in Valley Financial Corporation [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | $ 1,000 | $ 1,000 |
Foreclosed Assets (Summary of F
Foreclosed Assets (Summary of Foreclosed Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Banking and Thrift [Abstract] | ||||||
Consumer mortgage loans collateralized by residential real estate foreclosed as a result of obtaining physical possession | $ 28 | $ 0 | ||||
All other foreclosed assets | 256 | 421 | ||||
Other Real Estate, Foreclosed Assets, and Repossessed Assets | $ 284 | $ 249 | $ 421 | $ 601 | $ 873 | $ 885 |
Foreclosed Assets (Foreclosed A
Foreclosed Assets (Foreclosed Assets Rollforward) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Banking and Thrift [Abstract] | ||||
Beginning Balance | $ 249 | $ 873 | $ 421 | $ 885 |
Properties Transferred | 95 | 234 | 211 | 1,043 |
Other Real Estate, Foreclosed Assets, and Repossessed Assets, Valuation Adjustments | 0 | 0 | 0 | 22 |
Proceeds from sale | (60) | (506) | (348) | (1,305) |
Ending Balance | $ 284 | $ 601 | $ 284 | $ 601 |
Foreclosed Assets (Narrative) (
Foreclosed Assets (Narrative) (Details) $ in Thousands | Sep. 30, 2016USD ($) |
Consumer Portfolio Segment [Member] | |
Schedule of Foreclosed Assets [Line Items] | |
Mortgage Loans in Process of Foreclosure, Amount | $ 0 |
Borrowed Funds (Borrowed funds
Borrowed Funds (Borrowed funds obligations) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Debt [Line Items] | ||
Borrowed funds | $ 325,409 | $ 309,732 |
Borrowed funds, Rate | 1.74% | 1.50% |
Securities Sold under Agreements to Repurchase [Member] | ||
Schedule of Debt [Line Items] | ||
Borrowed funds | $ 54,809 | $ 70,532 |
Borrowed funds, Rate | 0.13% | 0.12% |
Federal Funds Purchased [Member] | ||
Schedule of Debt [Line Items] | ||
Borrowed funds | $ 20,600 | $ 4,200 |
Borrowed funds, Rate | 0.67% | 0.75% |
Federal Home Loan Bank Advances [Member] | ||
Schedule of Debt [Line Items] | ||
Borrowed funds | $ 250,000 | $ 235,000 |
Borrowed funds, Rate | 2.19% | 1.93% |
Borrowed Funds (Maturity and we
Borrowed Funds (Maturity and weighted average interest rates of FHLB advances) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, rate | 2.19% | 1.93% |
FHLB advances | $ 250,000 | $ 235,000 |
Fixed Rate Advances Due 2016 [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, rate | 1.40% | 1.25% |
FHLB fixed rate advances | $ 20,000 | $ 30,000 |
Variable Rate Due 2016 [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Federal Home Loan Bank, Advances, Floating Rate | $ 0 | $ 15,000 |
FHLB advances, rate | 0.00% | 0.62% |
Fixed Rate Advances Due 2017 [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, rate | 1.77% | 1.56% |
FHLB fixed rate advances | $ 50,000 | $ 50,000 |
Fixed Rate Advances Due 2018 [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, rate | 1.87% | 2.16% |
FHLB fixed rate advances | $ 50,000 | $ 50,000 |
Fixed Rate Advances Due 2019 [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, rate | 2.55% | 2.35% |
FHLB fixed rate advances | $ 60,000 | $ 40,000 |
Fixed Rate Advances Due 2020 [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, rate | 1.12% | 1.98% |
FHLB fixed rate advances | $ 10,000 | $ 10,000 |
Fixed Rate Advances Due 2021 [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, rate | 3.10% | 2.26% |
FHLB fixed rate advances | $ 40,000 | $ 30,000 |
Federal Home Loan Bank, Advances, Variable Rate Due 2021 [Member] [Member] [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Federal Home Loan Bank, Advances, Floating Rate | $ 10,000 | $ 0 |
FHLB advances, rate | 1.23% | 0.00% |
Fixed Rate Advances Due 2023 [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, rate | 3.53% | 3.90% |
FHLB fixed rate advances | $ 10,000 | $ 10,000 |
Borrowed Funds (Short-term borr
Borrowed Funds (Short-term borrowings) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Securities Sold under Agreements to Repurchase [Member] | ||||
Short-term Debt [Line Items] | ||||
Maximum Month End Balance | $ 56,057 | $ 71,170 | $ 61,783 | $ 84,859 |
Average Balance | $ 54,446 | $ 68,693 | $ 57,159 | $ 70,399 |
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 | $ 20,600 | $ 13,100 | $ 20,600 | $ 13,100 |
Average Balance | $ 8,848 | $ 7,265 | $ 8,614 | $ 6,253 |
Weighted Average Interest Rate During the Period | 0.69% | 0.51% | 0.69% | 0.50% |
Borrowed Funds (Pledged financi
Borrowed Funds (Pledged financial instruments) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Debt Disclosure [Abstract] | ||
Pledged to secure borrowed funds | $ 358,795 | $ 339,078 |
Pledged to secure repurchase agreements | 55,148 | 70,555 |
Pledged for public deposits and for other purposes necessary or required by law | 26,594 | 39,038 |
Total | 440,537 | 448,671 |
Short-term Debt [Line Items] | ||
AFS securities pledged without single maturity dates | 55,148 | 70,555 |
State and Local Funds Purchased [Member] | ||
Short-term Debt [Line Items] | ||
AFS securities pledged without single maturity dates | 6,906 | 3,639 |
Mortgage Backed Securities, Other [Member] | ||
Short-term Debt [Line Items] | ||
AFS securities pledged without single maturity dates | 10,883 | 23,075 |
Collateralized Mortgage Obligations [Member] | ||
Short-term Debt [Line Items] | ||
AFS securities pledged without single maturity dates | $ 37,359 | $ 43,841 |
Borrowed Funds (Derivatives) (D
Borrowed Funds (Derivatives) (Details) - Cash Flow Hedges [Member] - Interest Rate Swaps [Member] - Designated as Hedging Instruments [Member] - London Interbank Offered Rate (LIBOR) [Member] | Sep. 30, 2016USD ($) |
Derivatives, Fair Value [Line Items] | |
Pay Rate | 1.56% |
Remaining Life (Years) | 4 years 7 months 16 days |
Notional Amount | $ 10,000 |
Other Liabilities [Member] | |
Derivatives, Fair Value [Line Items] | |
Fair Value | $ (61,000) |
Borrowed Funds (Narrative) (Det
Borrowed Funds (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Short-term Debt [Line Items] | ||
Pledged Assets Separately Reported, Securities Pledged for Repurchase Agreements, at Fair Value | $ 55,148 | $ 70,555 |
Carrying value of securities sold under agreements to repurchase | 55,148 | $ 70,555 |
Additional borrowing capacity | $ 15,173 | |
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 | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Summary of expenses included in other noninterest expenses | ||||
Professional Fees, Audit And Related | $ 319 | $ 223 | $ 664 | $ 582 |
FDIC insurance premiums | 224 | 204 | 646 | 619 |
Directors fees | 207 | 204 | 630 | 608 |
Professional Fees, Consulting | 198 | 124 | 567 | 341 |
Expense Related to Distribution or Servicing and Underwriting Fees | 142 | 98 | 377 | 248 |
Donations and community relations | 134 | 155 | 374 | 412 |
Marketing Expense | 101 | 124 | 359 | 350 |
Education and travel | 90 | 91 | 351 | 319 |
Postage and freight | 95 | 94 | 292 | 284 |
Printing and supplies | 103 | 111 | 286 | 309 |
Legal Fees | 68 | 121 | 226 | 273 |
All other | 479 | 623 | 1,703 | 1,593 |
Total other | $ 2,160 | $ 2,172 | $ 6,475 | $ 5,938 |
Federal Income Taxes (Details)
Federal Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Federal statutory tax rate | 34.00% | 34.00% | 34.00% | 34.00% |
Income taxes at 34% statutory rate | $ 1,481 | $ 1,723 | $ 4,036 | $ 4,959 |
Interest income on tax exempt municipal securities | (477) | (509) | (1,465) | (1,519) |
Earnings on corporate owned life insurance policies | (62) | (64) | (192) | (194) |
Effect of tax credits | (188) | (175) | (575) | (542) |
Other | (19) | (18) | (55) | (70) |
Total effect of nontaxable income | (746) | (766) | (2,287) | (2,325) |
Effect of nondeductible expenses | 28 | 45 | 106 | 116 |
Federal income tax expense | $ 763 | $ 1,002 | $ 1,855 | $ 2,750 |
Fair Value (Quantitative inform
Fair Value (Quantitative information about impaired loans) (Details) - Discounted appraisal value [Member] - Level 3 [Member] - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discounted appraisal value at fair value | $ 8,844 | $ 9,301 |
Real Estate [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Discount Rate | 20.00% | 20.00% |
Real Estate [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Discount Rate | 30.00% | 30.00% |
Equipment [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Discount Rate | 20.00% | 20.00% |
Equipment [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Discount Rate | 50.00% | 35.00% |
Furniture and Fixtures [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Discount Rate | 45.00% | |
Furniture and Fixtures [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Discount Rate | 35.00% | |
Furniture and Fixtures [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Discount Rate | 45.00% | |
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 | 50.00% | 50.00% |
Loans Receivable, Collateralized By Other Inventory [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Discount Rate | ||
Loans Receivable, Collateralized By Other Inventory [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Discount Rate | ||
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 info62
Fair Value (Quantitative information related to foreclosed assets) (Details) - Discounted appraisal value [Member] - Level 3 [Member] - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discounted appraisal value at fair value | $ 284 | $ 421 |
Real Estate [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Discount Rate | 20.00% | 20.00% |
Real Estate [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Discount Rate | 30.00% | 30.00% |
Fair Value (Carrying amount and
Fair Value (Carrying amount and estimated fair value of financial instruments) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Level 1 [Member] | |||
ASSETS | |||
Cash and cash equivalents | $ 21,335 | $ 21,569 | |
Mortgage loans AFS | 0 | 0 | |
Total loans | 0 | 0 | |
Less allowance for loan losses | 0 | 0 | |
Net loans | 0 | 0 | |
Accrued interest receivable | 6,868 | 6,269 | |
Equity securities without readily determinable fair values | [1] | 0 | 0 |
Originated mortgage servicing rights | 0 | 0 | |
LIABILITIES | |||
Deposits without stated maturities | 739,035 | 741,683 | |
Deposits with stated maturities | 0 | 0 | |
Borrowed funds | 0 | 0 | |
Accrued interest payable | 542 | 545 | |
Level 2 [Member] | |||
ASSETS | |||
Cash and cash equivalents | 0 | 0 | |
Mortgage loans AFS | 691 | 1,210 | |
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 | 2,068 | 2,518 | |
LIABILITIES | |||
Deposits without stated maturities | 0 | 0 | |
Deposits with stated maturities | 435,892 | 421,429 | |
Borrowed funds | 330,077 | 312,495 | |
Accrued interest payable | 0 | 0 | |
Level 3 [Member] | |||
ASSETS | |||
Cash and cash equivalents | 0 | 0 | |
Mortgage loans AFS | 0 | 0 | |
Total loans | 979,645 | 839,398 | |
Less allowance for loan losses | 7,800 | 7,400 | |
Net loans | 971,845 | 831,998 | |
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 | 21,335 | 21,569 | |
Mortgage loans AFS | 685 | 1,187 | |
Total loans | 989,366 | 850,492 | |
Less allowance for loan losses | 7,800 | 7,400 | |
Net loans | 981,566 | 843,092 | |
Accrued interest receivable | 6,868 | 6,269 | |
Equity securities without readily determinable fair values | [1] | 22,573 | 22,286 |
Originated mortgage servicing rights | 2,068 | 2,505 | |
LIABILITIES | |||
Deposits without stated maturities | 739,035 | 741,683 | |
Deposits with stated maturities | 436,798 | 422,880 | |
Borrowed funds | 325,409 | 309,732 | |
Accrued interest payable | 542 | 545 | |
Estimated Fair Value [Member] | |||
ASSETS | |||
Cash and cash equivalents | 21,335 | 21,569 | |
Mortgage loans AFS | 691 | 1,210 | |
Total loans | 979,645 | 839,398 | |
Less allowance for loan losses | 7,800 | 7,400 | |
Net loans | 971,845 | 831,998 | |
Accrued interest receivable | 6,868 | 6,269 | |
Originated mortgage servicing rights | 2,068 | 2,518 | |
LIABILITIES | |||
Deposits without stated maturities | 739,035 | 741,683 | |
Deposits with stated maturities | 435,892 | 421,429 | |
Borrowed funds | 330,077 | 312,495 | |
Accrued interest payable | $ 542 | $ 545 | |
[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 | Sep. 30, 2016 | Dec. 31, 2015 |
AFS Securities | ||
AFS securities | $ 564,229 | $ 660,136 |
Fair value, total | 573,296 | 669,858 |
Level 1 [Member] | ||
AFS Securities | ||
Fair value, total | $ 3,588 | $ 3,299 |
Percent of assets and liabilities measured at fair value | 0.63% | 0.49% |
Level 2 [Member] | ||
AFS Securities | ||
Fair value, total | $ 560,580 | $ 656,837 |
Percent of assets and liabilities measured at fair value | 97.78% | 98.06% |
Level 3 [Member] | ||
AFS Securities | ||
Fair value, total | $ 9,128 | $ 9,722 |
Percent of assets and liabilities measured at fair value | 1.59% | 1.45% |
Recurring items [Member] | ||
AFS Securities | ||
AFS securities | $ 564,229 | $ 660,136 |
Derivative Liability | (61) | 0 |
Recurring items [Member] | Government sponsored enterprises [Member] | ||
AFS Securities | ||
AFS securities | 344 | 24,345 |
Recurring items [Member] | States and political subdivisions [Member] | ||
AFS Securities | ||
AFS securities | 219,689 | 232,217 |
Recurring items [Member] | Auction rate money market preferred [Member] | ||
AFS Securities | ||
AFS securities | 3,145 | 2,866 |
Recurring items [Member] | Preferred stock [Member] | ||
AFS Securities | ||
AFS securities | 3,588 | 3,299 |
Recurring items [Member] | Mortgage-backed securities [Member] | ||
AFS Securities | ||
AFS securities | 226,649 | 263,384 |
Recurring items [Member] | Collateralized mortgage obligations [Member] | ||
AFS Securities | ||
AFS securities | 110,814 | 134,025 |
Recurring items [Member] | Level 1 [Member] | ||
AFS Securities | ||
AFS securities | 3,588 | 3,299 |
Derivative Liability | 0 | 0 |
Recurring items [Member] | Level 1 [Member] | Government sponsored enterprises [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Recurring items [Member] | Level 1 [Member] | States and political subdivisions [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Recurring items [Member] | Level 1 [Member] | Auction rate money market preferred [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Recurring items [Member] | Level 1 [Member] | Preferred stock [Member] | ||
AFS Securities | ||
AFS securities | 3,588 | 3,299 |
Recurring items [Member] | Level 1 [Member] | Mortgage-backed securities [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Recurring items [Member] | Level 1 [Member] | Collateralized mortgage obligations [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Recurring items [Member] | Level 2 [Member] | ||
AFS Securities | ||
AFS securities | 560,641 | 656,837 |
Derivative Liability | (61) | 0 |
Recurring items [Member] | Level 2 [Member] | Government sponsored enterprises [Member] | ||
AFS Securities | ||
AFS securities | 344 | 24,345 |
Recurring items [Member] | Level 2 [Member] | States and political subdivisions [Member] | ||
AFS Securities | ||
AFS securities | 219,689 | 232,217 |
Recurring items [Member] | Level 2 [Member] | Auction rate money market preferred [Member] | ||
AFS Securities | ||
AFS securities | 3,145 | 2,866 |
Recurring items [Member] | Level 2 [Member] | Preferred stock [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Recurring items [Member] | Level 2 [Member] | Mortgage-backed securities [Member] | ||
AFS Securities | ||
AFS securities | 226,649 | 263,384 |
Recurring items [Member] | Level 2 [Member] | Collateralized mortgage obligations [Member] | ||
AFS Securities | ||
AFS securities | 110,814 | 134,025 |
Recurring items [Member] | Level 3 [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Derivative Liability | 0 | 0 |
Recurring items [Member] | Level 3 [Member] | Government sponsored enterprises [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Recurring items [Member] | Level 3 [Member] | States and political subdivisions [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Recurring items [Member] | Level 3 [Member] | Auction rate money market preferred [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Recurring items [Member] | Level 3 [Member] | Preferred stock [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Recurring items [Member] | Level 3 [Member] | Mortgage-backed securities [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Recurring items [Member] | Level 3 [Member] | Collateralized mortgage obligations [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Nonrecurring items [Member] | ||
AFS Securities | ||
Impaired loans (net of the allowance for loan losses) | 8,844 | 9,301 |
Foreclosed assets | 284 | 421 |
Nonrecurring items [Member] | Level 1 [Member] | ||
AFS Securities | ||
Impaired loans (net of the allowance for loan losses) | 0 | 0 |
Foreclosed assets | 0 | 0 |
Nonrecurring items [Member] | Level 2 [Member] | ||
AFS Securities | ||
Impaired loans (net of the allowance for loan losses) | 0 | 0 |
Foreclosed assets | 0 | 0 |
Nonrecurring items [Member] | Level 3 [Member] | ||
AFS Securities | ||
Impaired loans (net of the allowance for loan losses) | 8,844 | 9,301 |
Foreclosed assets | $ 284 | $ 421 |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details Textual) - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
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 Comprehensi66
Accumulated Other Comprehensive Income (Loss) (Changes in AOCI by component) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax | $ 0 | $ 0 | $ 245 | $ 0 |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | 7,567 | (1,871) | 221 | (506) |
OCI before reclassifications | (2,457) | 5,301 | 8,732 | 3,137 |
Amounts reclassified from AOCI | 0 | 0 | (245) | 0 |
Net unrealized gains (losses) | (2,457) | 5,301 | 8,487 | 3,137 |
Tax effect | 906 | (1,818) | (2,692) | (1,019) |
Unrealized gains (losses), net of tax | (1,551) | 3,483 | 5,795 | 2,118 |
Ending Balance | 6,016 | 1,612 | 6,016 | 1,612 |
Unrealized Holding Gains (Losses) on AFS Securities [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax | 0 | 0 | 245 | 0 |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | 10,982 | 1,937 | 3,536 | 3,302 |
OCI before reclassifications | (2,548) | 5,301 | 8,793 | 3,137 |
Amounts reclassified from AOCI | 0 | 0 | (245) | 0 |
Net unrealized gains (losses) | (2,548) | 5,301 | 8,548 | 3,137 |
Tax effect | 937 | (1,818) | (2,713) | (1,019) |
Unrealized gains (losses), net of tax | (1,611) | 3,483 | 5,835 | 2,118 |
Ending Balance | 9,371 | 5,420 | 9,371 | 5,420 |
Defined Benefit Pension Plan [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (3,315) | (3,808) | (3,315) | (3,808) |
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 | (3,315) | (3,808) | (3,315) | (3,808) |
Gain (Loss) on Derivative Instruments [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (100) | 0 | 0 | 0 |
OCI before reclassifications | 91 | 0 | (61) | 0 |
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 |
Net unrealized gains (losses) | 91 | 0 | (61) | 0 |
Tax effect | (31) | 0 | 21 | 0 |
Unrealized gains (losses), net of tax | 60 | 0 | (40) | 0 |
Ending Balance | (40) | 0 | (40) | 0 |
Auction Rate Money Market Preferred Stocks [Member] | Unrealized Holding Gains (Losses) on AFS Securities [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax | 0 | 0 | 0 | 0 |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Unrealized gains (losses), net of tax | $ 208 | $ 140 | $ 568 | $ 140 |
Accumulated Other Comprehensi67
Accumulated Other Comprehensive Income (Loss) (Components of unrealized holding gains on AFS securities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Unrealized gains (losses) on AFS securities arising during the period | $ (2,548) | $ 5,301 | $ 3,137 | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax | 0 | 0 | $ (245) | 0 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Tax, Portion Attributable to Parent | (2,457) | 5,301 | 8,487 | 3,137 |
Tax effect (1) | 906 | (1,818) | (2,692) | |
Unrealized gains (losses), net of tax | (1,551) | 3,483 | 5,795 | 2,118 |
Unrealized Holding Gains (Losses) on AFS Securities [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Unrealized gains (losses) on AFS securities arising during the period | (2,548) | 5,301 | 8,793 | 3,137 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax | 0 | 0 | (245) | 0 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Tax, Portion Attributable to Parent | (2,548) | 5,301 | 8,548 | 3,137 |
Tax effect (1) | (937) | 1,818 | 2,713 | 1,019 |
Unrealized gains (losses), net of tax | (1,611) | 3,483 | 5,835 | 2,118 |
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 | 208 | 140 | 568 | 140 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Tax, Portion Attributable to Parent | 208 | 140 | 568 | 140 |
Tax effect (1) | 0 | 0 | 0 | 0 |
Unrealized gains (losses), net of tax | 208 | 140 | 568 | 140 |
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 | (2,756) | 5,161 | 8,225 | 2,997 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax | 0 | 0 | (245) | 0 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Tax, Portion Attributable to Parent | (2,756) | 5,161 | 7,980 | 2,997 |
Tax effect (1) | (937) | 1,818 | 2,713 | 1,019 |
Unrealized gains (losses), net of tax | (1,819) | 3,343 | 5,267 | 1,978 |
Accumulated Defined Benefit Plans Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Unrealized gains (losses), net of tax | $ 0 | $ 0 | $ 0 | $ 0 |
Accumulated Other Comprehensi68
Accumulated Other Comprehensive Income (Loss) (Reclassification adjustments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, before Tax | $ (2,548) | $ 5,301 | $ 3,137 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 | $ (245) | 0 |
Other Comprehensive Income (Loss), before Tax | (2,457) | 5,301 | 8,487 | 3,137 |
Income before federal income tax expense | 4,356 | 5,065 | 11,872 | 14,584 |
Federal income tax expense | 763 | 1,002 | 1,855 | 2,750 |
NET INCOME | 3,593 | 4,063 | 10,017 | 11,834 |
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax | 906 | (1,818) | (2,692) | |
Other Comprehensive Income (Loss), Net of Tax | (1,551) | 3,483 | 5,795 | 2,118 |
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 | (2,548) | 5,301 | 8,793 | 3,137 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 | (245) | 0 |
Other Comprehensive Income (Loss), before Tax | (2,548) | 5,301 | 8,548 | 3,137 |
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax | (937) | 1,818 | 2,713 | 1,019 |
Other Comprehensive Income (Loss), Net of Tax | (1,611) | 3,483 | 5,835 | 2,118 |
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 | (2,756) | 5,161 | 8,225 | 2,997 |
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax | (937) | 1,818 | 2,713 | 1,019 |
Other Comprehensive Income (Loss), Net of Tax | (1,819) | 3,343 | 5,267 | 1,978 |
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 | 208 | 140 | 568 | 140 |
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax | $ 208 | $ 140 | $ 568 | $ 140 |
Parent Company Only Financial69
Parent Company Only Financial Information (Interim Condensed Balance Sheets) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||||
AFS securities | $ 564,229 | $ 660,136 | ||
Premises and equipment | 28,986 | 28,331 | ||
Other assets | 5,571 | 9,991 | ||
TOTAL ASSETS | 1,706,498 | 1,668,112 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Shareholders' equity | 195,184 | 183,971 | $ 182,998 | $ 174,594 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 1,706,498 | 1,668,112 | ||
Parent Company [Member] | ||||
ASSETS | ||||
Cash on deposit at subsidiary Bank | 1,250 | 4,125 | ||
AFS securities | 251 | 257 | ||
Investments in subsidiaries | 145,320 | 133,883 | ||
Premises and equipment | 1,983 | 2,014 | ||
Other assets | 53,509 | 53,396 | ||
TOTAL ASSETS | 202,313 | 193,675 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Other liabilities | 7,129 | 9,704 | ||
Shareholders' equity | 195,184 | 183,971 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 202,313 | $ 193,675 |
Parent Company Only Financial70
Parent Company Only Financial Information (Interim Condensed Statements of Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Expenses | ||||
Compensation and benefits | $ 4,940 | $ 4,750 | $ 14,412 | $ 13,856 |
Occupancy and equipment | 790 | 728 | 2,280 | 2,121 |
ProfesDonations and community relations | 319 | 223 | 664 | 582 |
Other | 2,160 | 2,172 | 6,475 | 5,938 |
Federal income tax benefit | (763) | (1,002) | (1,855) | (2,750) |
NET INCOME | 3,593 | 4,063 | 10,017 | 11,834 |
Parent Company [Member] | ||||
Income | ||||
Dividends from subsidiaries | 2,000 | 1,700 | 5,600 | 5,000 |
Interest income | 3 | 4 | 11 | 75 |
Management fee and other | 1,680 | 1,859 | 4,962 | 4,913 |
Total income | 3,683 | 3,563 | 10,573 | 9,988 |
Expenses | ||||
Compensation and benefits | 1,196 | 1,228 | 3,580 | 3,658 |
Occupancy and equipment | 438 | 415 | 1,281 | 1,226 |
ProfesDonations and community relations | 193 | 101 | 389 | 316 |
Other | 427 | 501 | 1,561 | 1,533 |
Total expenses | 2,254 | 2,245 | 6,811 | 6,733 |
Income before income tax benefit and equity in undistributed earnings of subsidiaries | 1,429 | 1,318 | 3,762 | 3,255 |
Federal income tax benefit | 199 | 123 | 616 | 588 |
Income before equity in undistributed earnings of subsidiaries | 1,628 | 1,441 | 4,378 | 3,843 |
Undistributed earnings of subsidiaries | 1,965 | 2,622 | 5,639 | 7,991 |
NET INCOME | $ 3,593 | $ 4,063 | $ 10,017 | $ 11,834 |
Parent Company Only Financial71
Parent Company Only Financial Information (Interim Condensed Statements of Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Operating activities | ||||
Net income | $ 3,593 | $ 4,063 | $ 10,017 | $ 11,834 |
Adjustments to reconcile net income to cash provided by operations | ||||
Share-based payment awards | 443 | 425 | ||
Depreciation | 2,116 | 1,925 | ||
Changes in operating assets and liabilities which used cash | ||||
Other assets | 1,005 | (5,277) | ||
Accrued interest and other liabilities | 165 | (117) | ||
Net cash provided by (used in) operating activities | 15,565 | 7,081 | ||
Investing activities | ||||
Purchases of equipment and premises | (2,771) | (4,397) | ||
Net (advances to) repayments from subsidiaries | 0 | 300 | ||
Net cash provided by (used in) investing activities | (37,704) | (64,112) | ||
Financing activities | ||||
Net increase (decrease) in other borrowed funds | 15,677 | 7,901 | ||
Cash dividends paid on common stock | (5,697) | (5,416) | ||
Proceeds from the issuance of common stock | 3,683 | 3,310 | ||
Common stock repurchased | (2,749) | (3,588) | ||
Common stock purchased for deferred compensation obligations | (279) | (279) | ||
Net cash provided by (used in) financing activities | 21,905 | 55,447 | ||
Increase (decrease) in cash and cash equivalents | (234) | (1,584) | ||
Cash and cash equivalents at beginning of period | 21,569 | 19,906 | ||
Cash and cash equivalents at end of period | 21,335 | 18,322 | 21,335 | 18,322 |
Parent Company [Member] | ||||
Operating activities | ||||
Net income | 3,593 | 4,063 | 10,017 | 11,834 |
Adjustments to reconcile net income to cash provided by operations | ||||
Undistributed earnings of subsidiaries | (5,639) | (7,991) | ||
Undistributed earnings of equity securities without readily determinable fair values | (287) | (364) | ||
Share-based payment awards | 443 | 425 | ||
Depreciation | 117 | 113 | ||
Changes in operating assets and liabilities which used cash | ||||
Other assets | 177 | 406 | ||
Accrued interest and other liabilities | (2,575) | 94 | ||
Net cash provided by (used in) operating activities | 2,253 | 4,517 | ||
Investing activities | ||||
Proceeds from Sale and Maturity of Available-for-sale Securities | 0 | 3,000 | ||
Purchases of equipment and premises | (86) | (146) | ||
Net cash provided by (used in) investing activities | (86) | 3,154 | ||
Financing activities | ||||
Net increase (decrease) in other borrowed funds | 0 | (211) | ||
Cash dividends paid on common stock | (5,697) | (5,416) | ||
Proceeds from the issuance of common stock | 3,683 | 3,310 | ||
Common stock repurchased | (2,749) | (3,588) | ||
Common stock purchased for deferred compensation obligations | (279) | (279) | ||
Net cash provided by (used in) financing activities | (5,042) | (6,184) | ||
Increase (decrease) in cash and cash equivalents | (2,875) | 1,487 | ||
Cash and cash equivalents at beginning of period | 4,125 | 1,035 | ||
Cash and cash equivalents at end of period | $ 1,250 | $ 2,522 | $ 1,250 | $ 2,522 |
Operating Segments (Narrative)
Operating Segments (Narrative) (Details) | Sep. 30, 2016 | Sep. 30, 2015 |
Segment Reporting [Abstract] | ||
Percentage of reportable segments total assets and operating results, or more | 90.00% | 90.00% |