Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 31, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | PREMIER FINANCIAL BANCORP INC | |
Entity Central Index Key | 887,919 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 8,167,806 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and due from banks | $ 33,440 | $ 35,147 |
Interest bearing bank balances | 35,437 | 35,251 |
Federal funds sold | 3,265 | 4,986 |
Cash and cash equivalents | 72,142 | 75,384 |
Securities available for sale | 226,077 | 229,750 |
Loans held for sale | 0 | 226 |
Loans | 883,873 | 879,711 |
Allowance for loan losses | (10,694) | (10,347) |
Net loans | 873,179 | 869,364 |
Federal Home Loan Bank stock, at cost | 3,072 | 2,996 |
Premises and equipment, net | 20,127 | 21,384 |
Real estate and other property acquired through foreclosure | 11,349 | 12,208 |
Interest receivable | 3,271 | 3,219 |
Goodwill | 33,796 | 33,796 |
Other intangible assets | 2,599 | 3,033 |
Other assets | 1,394 | 1,464 |
Total assets | 1,247,006 | 1,252,824 |
Deposits | ||
Non-interest bearing | 253,094 | 252,828 |
Time deposits, $250,000 and over | 67,532 | 66,216 |
Other interest bearing | 749,905 | 756,199 |
Total deposits | 1,070,531 | 1,075,243 |
Securities sold under agreements to repurchase | 15,307 | 15,580 |
Other borrowed funds | 12,507 | 11,722 |
Interest payable | 387 | 434 |
Other liabilities | 3,836 | 4,063 |
Total liabilities | 1,102,568 | 1,107,042 |
Stockholders' equity | ||
Common stock, no par value; 20,000,000 shares authorized; 8,167,806 shares issued and outstanding at June 30, 2015, and 8,142,056 shares issued and outstanding at December 31, 2014 | 69,257 | 74,568 |
Retained earnings | 73,868 | 69,719 |
Accumulated other comprehensive income (loss) | 1,313 | 1,495 |
Total stockholders' equity | 144,438 | 145,782 |
Total liabilities and stockholders' equity | $ 1,247,006 | $ 1,252,824 |
CONSOLIDATED BALANCE SHEETS (U3
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 |
Stockholders' equity | ||
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 8,167,806 | 8,142,056 |
Common stock, shares outstanding (in shares) | 8,167,806 | 8,142,056 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Interest income | ||||
Loans, including fees | $ 11,641 | $ 11,262 | $ 23,306 | $ 22,925 |
Securities available for sale | ||||
Taxable | 1,206 | 1,400 | 2,463 | 2,715 |
Tax-exempt | 56 | 63 | 111 | 98 |
Federal funds sold and other | 52 | 64 | 88 | 96 |
Total interest income | 12,955 | 12,789 | 25,968 | 25,834 |
Interest expense | ||||
Deposits | 887 | 960 | 1,803 | 1,847 |
Repurchase agreements and other | 9 | 9 | 19 | 16 |
Other borrowings | 136 | 144 | 259 | 288 |
Total interest expense | 1,032 | 1,113 | 2,081 | 2,151 |
Net interest income | 11,923 | 11,676 | 23,887 | 23,683 |
Provision (credit) for loan losses | (146) | (79) | (77) | (389) |
Net interest income after provision for loan losses | 12,069 | 11,755 | 23,964 | 24,072 |
Non-interest income | ||||
Service charges on deposit accounts | 914 | 899 | 1,792 | 1,638 |
Electronic banking income | 702 | 655 | 1,346 | 1,150 |
Secondary market mortgage income | 22 | 50 | 60 | 69 |
Other | 124 | 179 | 269 | 307 |
Total non-interest income | 1,762 | 1,783 | 3,467 | 3,164 |
Non-interest expenses | ||||
Salaries and employee benefits | 4,475 | 4,873 | 8,816 | 8,857 |
Occupancy and equipment expenses | 1,263 | 1,307 | 2,590 | 2,460 |
Outside data processing | 1,075 | 1,029 | 2,171 | 1,898 |
Professional fees | 179 | 209 | 308 | 745 |
Taxes, other than payroll, property and income | 145 | 152 | 341 | 304 |
Write-downs, expenses, sales of other real estate owned, net | 340 | (488) | 682 | (394) |
Amortization of intangibles | 209 | 224 | 434 | 368 |
FDIC insurance | 206 | 260 | 421 | 461 |
Other expenses | 1,037 | 1,148 | 1,958 | 2,044 |
Total non-interest expenses | 8,929 | 8,714 | 17,721 | 16,743 |
Income before income taxes | 4,902 | 4,824 | 9,710 | 10,493 |
Provision for income taxes | 1,775 | 1,724 | 3,441 | 3,723 |
Net income | 3,127 | 3,100 | 6,269 | 6,770 |
Preferred stock dividends and accretion | 0 | (165) | 0 | (330) |
Net income available to common stockholders | $ 3,127 | $ 2,935 | $ 6,269 | $ 6,440 |
Net income per share: | ||||
Basic (in dollars per share) | $ 0.38 | $ 0.36 | $ 0.77 | $ 0.80 |
Diluted (in dollars per share) | $ 0.37 | $ 0.34 | $ 0.74 | $ 0.75 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) [Abstract] | ||||
Net income | $ 3,127 | $ 3,100 | $ 6,269 | $ 6,770 |
Other comprehensive income (loss): | ||||
Unrealized gains (losses) arising during the period | (1,582) | 741 | (276) | 3,459 |
Reclassification of realized amount | 0 | 0 | 0 | 0 |
Net change in unrealized gain on securities | (1,582) | 741 | (276) | 3,459 |
Less tax impact | 538 | (252) | 94 | (1,176) |
Other comprehensive income (loss) | (1,044) | 489 | (182) | 2,283 |
Comprehensive income | $ 2,083 | $ 3,589 | $ 6,087 | $ 9,053 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities | ||
Net income | $ 6,269 | $ 6,770 |
Adjustments to reconcile net income to net cash from operating activities | ||
Depreciation | 874 | 735 |
Provision (credit) for loan losses | (77) | (389) |
Amortization (accretion), net | 307 | 484 |
OREO writedowns (gains on sales), net | 254 | (800) |
Stock compensation expense | 163 | 170 |
Loans originated for sale | (1,679) | (3,192) |
Secondary market loans sold | 1,941 | 2,851 |
Secondary market income | (38) | (69) |
Changes in: | ||
Interest receivable | (52) | 417 |
Other assets | 166 | 1,066 |
Interest payable | (47) | (56) |
Other liabilities | (227) | 174 |
Net cash from operating activities | 7,854 | 8,161 |
Cash flows from investing activities | ||
Purchases of securities available for sale | (30,705) | (34,453) |
Proceeds from maturities and calls of securities available for sale | 33,557 | 24,298 |
Purchase of FHLB stock | (76) | 0 |
Redemption of FHLB stock | 0 | 408 |
Net change in loans | (4,415) | 1,605 |
Acquisition of subsidiary, net of cash received | 0 | 40,973 |
Purchases of premises and equipment, net | (377) | (290) |
Improvements to OREO property | (29) | (242) |
Proceeds from sales of other real estate acquired through foreclosure | 2,649 | 2,803 |
Net cash from investing activities | 604 | 35,102 |
Cash flows from financing activities | ||
Net change in deposits | (4,618) | (18,903) |
Net change in agreements to repurchase securities | (273) | (316) |
Repayment of other borrowed funds | (3,215) | (1,207) |
Proceeds from other borrowings | 4,000 | 0 |
Proceeds from stock option exercises | 201 | 449 |
Purchase of warrant | (5,675) | 0 |
Common stock dividends paid | (2,120) | (2,822) |
Preferred stock dividends paid | 0 | (300) |
Net cash from financing activities | (11,700) | (23,099) |
Net change in cash and cash equivalents | (3,242) | 20,164 |
Cash and cash equivalents at beginning of period | 75,384 | 76,761 |
Cash and cash equivalents at end of period | 72,142 | 96,925 |
Supplemental disclosures of cash flow information: | ||
Cash paid during period for interest | 2,128 | 2,207 |
Cash paid during period for income taxes | 2,866 | 2,299 |
Loans transferred to real estate acquired through foreclosure | 1,255 | 1,079 |
Premises transferred to other real estate owned | $ 760 | $ 0 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2015 | |
BASIS OF PRESENTATION [Abstract] | |
BASIS OF PRESENTATION | NOTE 1 - BASIS OF PRESENTATION The consolidated financial statements include the accounts of Premier Financial Bancorp, Inc. (the Company) and its wholly owned subsidiaries (the "Banks"): June 30, 2015 Year Total Net Income Subsidiary Location Acquired Assets Qtr YTD Citizens Deposit Bank & Trust Vanceburg, Kentucky 1991 $ 387,663 $ 931 $ 1,945 Premier Bank, Inc. Huntington, West Virginia 1998 853,078 2,702 5,275 Parent and Intercompany Eliminations 6,265 (506 ) (951 ) Consolidated Total $ 1,247,006 $ 3,127 $ 6,269 All significant intercompany transactions and balances have been eliminated. Recently Issued Accounting Pronouncements In January 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 2014-04, Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force) In May 2014, FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606) In June 2014, FASB issued Accounting Standards Update 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures |
SECURITIES
SECURITIES | 6 Months Ended |
Jun. 30, 2015 | |
SECURITIES [Abstract] | |
SECURITIES | NOTE 2 –SECURITIES Amortized cost and fair value of investment securities, by category, at June 30, 2015 are summarized as follows: Amortized Cost Unrealized Gains Unrealized Losses Fair Value Available for sale Mortgage-backed securities U. S. sponsored agency MBS - residential $ 76,141 $ 674 $ (399 ) $ 76,416 U. S. sponsored agency CMO's - residential 123,441 2,140 (704 ) 124,877 Total mortgage-backed securities of government sponsored agencies 199,582 2,814 (1,103 ) 201,293 U. S. government sponsored agency securities 14,463 98 - 14,561 Obligations of states and political subdivisions 10,044 197 (18 ) 10,223 Total available for sale $ 224,089 $ 3,109 $ (1,121 ) $ 226,077 Amortized cost and fair value of investment securities, by category, at December 31, 2014 are summarized as follows: Amortized Cost Unrealized Gains Unrealized Losses Fair Value Available for sale Mortgage-backed securities U. S. sponsored agency MBS - residential $ 52,006 $ 774 $ - $ 52,780 U. S. sponsored agency CMO's - residential 142,932 2,167 (911 ) 144,188 Total mortgage-backed securities of government sponsored agencies 194,938 2,941 (911 ) 196,968 U. S. government sponsored agency securities 22,553 30 (57 ) 22,506 Obligations of states and political subdivisions 10,015 261 - 10,276 Total available for sale $ 227,486 $ 3,232 $ (968 ) $ 229,750 The amortized cost and fair value of securities at June 30, 2015 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Cost Fair Value Available for sale Due in one year or less $ 3,472 $ 3,489 Due after one year through five years 17,732 17,952 Due after five years through ten years 3,054 3,093 Due after ten years 249 250 Mortgage-backed securities of government sponsored agencies 199,582 201,293 Total available for sale $ 224,089 $ 226,077 There were no sales of securities during the first six months of 2015 nor the first six months of 2014. Securities with unrealized losses at June 30, 2015 aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position are as follows: Less than 12 Months 12 Months or More Total Description of Securities Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S government sponsored agency MBS – residential $ 30,728 $ (399 ) $ - $ - $ 30,728 $ (399 ) U.S government sponsored agency CMO – residential 7,204 (91 ) 19,292 (613 ) 26,496 (704 ) Obligations of states and political subdivisions 911 (18 ) - - 911 (18 ) Total temporarily impaired $ 38,843 $ (508 ) $ 19,292 $ (613 ) $ 58,135 $ (1,121 ) Securities with unrealized losses at December 31, 2014 aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position are as follows: Less than 12 Months 12 Months or More Total Description of Securities Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S government sponsored agency securities $ 9,971 $ (57 ) $ - $ - $ 9,971 $ (57 ) U.S government sponsored agency CMO's – residential 5,194 (52 ) 26,471 (859 ) 31,665 (911 ) Total temporarily impaired $ 15,165 $ (109 ) $ 26,471 $ (859 ) $ 41,636 $ (968 ) The investment portfolio is predominately high credit quality interest-bearing bonds with defined maturity dates backed by the U.S. Government or Government sponsored entities. The unrealized losses at June 30, 2015 and December 31, 2014 are price changes resulting from changes in the interest rate environment and are considered to be temporary declines in the value of the securities. Management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery. Their fair value is expected to recover as the bonds approach their maturity date and/or market conditions improve. |
LOANS
LOANS | 6 Months Ended |
Jun. 30, 2015 | |
LOANS [Abstract] | |
LOANS | NOTE 3 - LOANS Major classifications of loans at June 30, 2015 and December 31, 2014 are summarized as follows: 2015 2014 Residential real estate $ 282,923 $ 278,212 Multifamily real estate 37,112 30,310 Commercial real estate: Owner occupied 122,879 120,861 Non owner occupied 217,881 230,750 Commercial and industrial 76,193 85,943 Consumer 31,561 32,745 All other 115,324 100,890 $ 883,873 $ 879,711 Activity in the allowance for loan losses by portfolio segment for the six months ended June 30, 2015 was as follows: Loan Class Balance Dec 31, 2014 Provision (credit) for loan losses Loans charged-off Recoveries Balance June 30, 2015 Residential real estate $ 2,093 $ 372 $ 78 $ 79 $ 2,466 Multifamily real estate 304 208 - - 512 Commercial real estate: Owner occupied 1,501 (24 ) 2 1 1,476 Non owner occupied 2,316 (643 ) - 659 2,332 Commercial and industrial 1,444 (140 ) 169 4 1,139 Consumer 243 105 132 58 274 All other 2,446 45 112 116 2,495 Total $ 10,347 $ (77 ) $ 493 $ 917 $ 10,694 Activity in the allowance for loan losses by portfolio segment for the six months ending June 30, 2014 was as follows: Loan Class Balance Dec 31, 2013 Provision (credit) for loan losses Loans charged-off Recoveries Balance June 30, 2014 Residential real estate $ 2,694 $ (391 ) $ 171 $ 8 $ 2,140 Multifamily real estate 417 (106 ) - - 311 Commercial real estate: Owner occupied 1,407 39 82 - 1,364 Non owner occupied 2,037 556 323 - 2,270 Commercial and industrial 2,184 (616 ) 84 5 1,489 Consumer 297 (33 ) 59 27 232 All other 1,991 162 204 122 2,071 Total $ 11,027 $ (389 ) $ 923 $ 162 $ 9,877 Activity in the allowance for loan losses by portfolio segment for the three months ended June 30, 2015 was as follows: Loan Class Balance March 31, 2015 Provision (credit) for loan losses Loans charged-off Recoveries Balance June 30, 2015 Residential real estate $ 2,196 $ 218 $ 4 $ 56 $ 2,466 Multifamily real estate 287 225 - - 512 Commercial real estate: Owner occupied 1,489 (13 ) - - 1,476 Non owner occupied 2,324 (651 ) - 659 2,332 Commercial and industrial 1,450 (305 ) 8 2 1,139 Consumer 241 87 78 24 274 All other 2,183 293 53 72 2,495 Total $ 10,170 $ (146 ) $ 143 $ 813 $ 10,694 Activity in the allowance for loan losses by portfolio segment for the three months ending June 30, 2014 was as follows: Loan Class Balance March 31, 2014 Provision (credit) for loan losses Loans charged-off Recoveries Balance June 30, 2014 Residential real estate $ 2,250 $ 36 $ 152 $ 6 $ 2,140 Multifamily real estate 297 14 - - 311 Commercial real estate: Owner occupied 1,477 (32 ) 81 - 1,364 Non owner occupied 2,385 (92 ) 23 - 2,270 Commercial and industrial 1,527 (20 ) 21 3 1,489 Consumer 220 37 33 8 232 All other 2,188 (22 ) 167 72 2,071 Total $ 10,344 $ (79 ) $ 477 $ 89 $ 9,877 Purchased Impaired Loans The Company holds purchased loans for which there was, at their acquisition date, evidence of deterioration of credit quality since their origination and it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount of those loans is as follows at June 30, 2015 and December 31, 2014. 2015 2014 Multifamily real estate $ 460 $ 497 Commercial real estate Owner occupied 131 131 Non owner occupied 5,623 5,695 Commercial and industrial 126 136 All other 5,149 5,128 Total carrying amount $ 11,489 $ 11,587 Contractual principal balance $ 21,159 $ 21,250 Carrying amount, net of allowance $ 10,463 $ 10,639 For those purchased loans disclosed above, the Company did not increase the allowance for loan losses for the six months ended June 30, 2015, nor did it increase the allowance for loan losses for purchased impaired loans during the six months ended June 30, 2014. For the majority of these loans, the Company cannot reasonably estimate the cash flows expected to be collected on the loans and therefore has continued to account for those loans using the cost recovery method of income recognition. As such, no portion of a purchase discount adjustment has been determined to meet the definition of an accretable yield adjustment on those loans accounted for using the cost recovery method. If, in the future, cash flows from the borrower(s) can be reasonably estimated, a portion of the purchase discount would be allocated to an accretable yield adjustment based upon the present value of the future estimated cash flows versus the current carrying value of the loan and the accretable yield portion would be recognized as interest income over the remaining life of the loan. Until such accretable yield can be calculated, under the cost recovery method of income recognition, all payments will be used to reduce the carrying value of the loan and no income will be recognized on the loan until the carrying value is reduced to zero. Any loan accounted for under the cost recovery method is also still included as a non-accrual loan in the amounts presented in the tables below. The accretable yield, or income expected to be collected, on the purchased loans above is as follows at June 30, 2015 and June 30, 2014. 2015 2014 Balance at January 1 $ 204 $ 217 New loans purchased - - Accretion of income (10 ) (6 ) Reclassifications from non-accretable difference - - Disposals - - Balance at June 30 $ 194 $ 211 Past Due and Non-performing Loans The following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of June 30, 2015 and December 31, 2014. The recorded investment in non-accrual loans is less than the principal owed on non-accrual loans due to discounts applied to the carrying value of the loan at time of their acquisition and interest payments made by the borrower which have been used to reduce the recorded investment in the loan rather than recognized as interest income. June 30, 2015 Principal Owed on Non-accrual Loans Recorded Investment in Non-accrual Loans Loans Past Due Over 90 Days, still accruing Residential real estate $ 2,507 $ 2,283 $ 378 Multifamily real estate 1,532 539 - Commercial real estate Owner occupied 807 737 8 Non owner occupied 1,960 1,689 1,820 Commercial and industrial 1,576 471 83 Consumer 98 80 - All other 12,635 5,183 - Total $ 21,115 $ 10,982 $ 2,289 December 31, 2014 Principal Owed on Non-accrual Loans Recorded Investment in Non-accrual Loans Loans Past Due Over 90 Days, still accruing Residential real estate $ 1,996 $ 1,768 $ 668 Multifamily real estate 1,803 1,033 564 Commercial real estate Owner occupied 2,115 1,928 - Non owner occupied 2,020 1,819 26 Commercial and industrial 2,012 806 8 Consumer 213 185 - All other 12,608 5,173 - Total $ 22,767 $ 12,712 $ 1,266 Nonaccrual loans and impaired loans are defined differently. Some loans may be included in both categories, and some may only be included in one category. Nonaccrual loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. The following table presents the aging of the recorded investment in past due loans as of June 30, 2015 by class of loans: Loan Class Total Loans 30-89 Days Past Due Greater than 90 days past due Total Past Due Loans Not Past Due Residential real estate $ 282,923 $ 5,862 $ 1,658 $ 7,520 $ 275,403 Multifamily real estate 37,112 460 79 539 36,573 Commercial real estate: Owner occupied 122,879 1,769 549 2,318 120,561 Non owner occupied 217,881 125 3,509 3,634 214,247 Commercial and industrial 76,193 1,737 348 2,085 74,108 Consumer 31,561 526 15 541 31,020 All other 115,324 13,591 5,149 18,740 96,584 Total $ 883,873 $ 24,070 $ 11,307 $ 35,377 $ 848,496 The following table presents the aging of the recorded investment in past due loans as of December 31, 2014 by class of loans: Loan Class Total Loans 30-89 Days Past Due Greater than 90 days past due Total Past Due Loans Not Past Due Residential real estate $ 278,212 $ 5,810 $ 1,706 $ 7,516 $ 270,696 Multifamily real estate 30,310 177 1,100 1,277 29,033 Commercial real estate: Owner occupied 120,861 250 1,530 1,780 119,081 Non owner occupied 230,750 2,173 1,670 3,843 226,907 Commercial and industrial 85,943 1,720 608 2,328 83,615 Consumer 32,745 497 71 568 32,177 All other 100,890 234 5,127 5,361 95,529 Total $ 879,711 $ 10,861 $ 11,812 $ 22,673 $ 857,038 The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of June 30, 2015: Allowance for Loan Losses Loan Balances Loan Class Individually Evaluated for Impairment Collectively Evaluated for Impairment Acquired with Deteriorated Credit Quality Total Individually Evaluated for Impairment Collectively Evaluated for Impairment Acquired with Deteriorated Credit Quality Total Residential real estate $ 183 $ 2,283 $ - $ 2,466 $ 571 $ 282,352 $ - $ 282,923 Multifamily real estate - 512 - 512 79 36,573 460 37,112 Commercial real estate: Owner occupied 48 1,428 - 1,476 943 121,805 131 122,879 Non-owner occupied 29 2,303 - 2,332 4,396 207,862 5,623 217,881 Commercial and industrial 230 783 126 1,139 666 75,401 126 76,193 Consumer - 274 - 274 - 31,561 - 31,561 All other - 1,595 900 2,495 912 109,263 5,149 115,324 Total $ 490 $ 9,178 $ 1,026 $ 10,694 $ 7,567 $ 864,817 $ 11,489 $ 883,873 The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2014: Allowance for Loan Losses Loan Balances Loan Class Individually Evaluated for Impairment Collectively Evaluated for Impairment Acquired with Deteriorated Credit Quality Total Individually Evaluated for Impairment Collectively Evaluated for Impairment Acquired with Deteriorated Credit Quality Total Residential real estate $ - $ 2,093 $ - $ 2,093 $ 137 $ 278,075 $ - $ 278,212 Multifamily real estate - 304 - 304 536 29,277 497 30,310 Commercial real estate: Owner occupied 107 1,394 - 1,501 2,011 118,719 131 120,861 Non-owner occupied 54 2,262 - 2,316 4,874 220,181 5,695 230,750 Commercial and industrial 291 1,105 48 1,444 902 84,905 136 85,943 Consumer - 243 - 243 - 32,745 - 32,745 All other - 1,546 900 2,446 1,109 94,653 5,128 100,890 Total $ 452 $ 8,947 $ 948 $ 10,347 $ 9,569 $ 858,555 $ 11,587 $ 879,711 In the tables below, total individually evaluated impaired loans include certain purchased loans that were acquired with deteriorated credit quality that are still individually evaluated for impairment. The following table presents loans individually evaluated for impairment by class of loans as of June 30, 2015. The table includes $5,658,000 of loans acquired with deteriorated credit quality that the Company cannot reasonably estimate cash flows such that they are accounted for on the cost recovery method and are still individually evaluated for impairment. Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated With no related allowance recorded: Residential real estate $ 363 $ 325 $ - Multifamily real estate 1,532 539 - Commercial real estate Owner occupied 612 549 - Non owner occupied 4,049 3,778 - Commercial and industrial 1,193 417 - All other 967 912 - 8,716 6,520 - With an allowance recorded: Residential real estate $ 252 $ 246 $ 183 Commercial real estate Owner occupied 394 394 48 Non owner occupied 618 618 29 Commercial and industrial 651 375 356 All other 12,546 5,149 900 14,461 6,782 1,516 Total $ 23,177 $ 13,302 $ 1,516 The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2014. The table includes $5,673,000 of loans acquired with deteriorated credit quality that the Company cannot reasonably estimate cash flows such that they are accounted for on the cost recovery method and are still individually evaluated for impairment. Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated With no related allowance recorded: Residential real estate $ 179 $ 137 $ - Multifamily real estate 1,803 1,033 - Commercial real estate Owner occupied 1,404 1,304 - Non owner occupied 4,398 4,190 - Commercial and industrial 1,030 270 - All other 1,144 1,108 - 9,958 8,042 - With an allowance recorded: Commercial real estate Owner occupied $ 707 $ 707 $ 107 Non owner occupied 684 684 54 Commercial and industrial 929 680 339 All other 12,525 5,129 900 14,845 7,200 1,400 Total $ 24,803 $ 15,242 $ 1,400 The following table presents the average balance of loans individually evaluated for impairment and interest income recognized on these loans for the six months ended June 30, 2015 and June 30, 2014. The table includes loans acquired with deteriorated credit quality that are still individually evaluated for impairment. Six months ended June 30, 2015 Six months ended June 30, 2014 Loan Class Average Recorded Investment Interest Income Recognized Cash Basis Interest Recognized Average Recorded Investment Interest Income Recognized Cash Basis Interest Recognized Residential real estate $ 281 $ 2 $ 2 $ 2,536 $ 61 $ 61 Multifamily real estate 1,377 14 14 2,586 727 727 Commercial real estate: Owner occupied 1,286 18 13 2,155 29 21 Non-owner occupied 4,665 94 82 800 627 627 Commercial and industrial 922 14 14 2,395 542 542 All other 6,150 30 28 7,603 81 81 Total $ 14,681 $ 172 $ 153 $ 18,075 $ 2,067 $ 2,059 The following table presents the average balance of loans individually evaluated for impairment and interest income recognized on these loans for the three months ended June 30, 2015 and June 30, 2014. The table includes loans acquired with deteriorated credit quality that are still individually evaluated for impairment. Three months ended June 30, 2015 Three months ended June 30, 2014 Loan Class Average Recorded Investment Interest Income Recognized Cash Basis Interest Recognized Average Recorded Investment Interest Income Recognized Cash Basis Interest Recognized Residential real estate $ 352 $ 1 $ 1 $ 2,318 $ 27 $ 27 Multifamily real estate 1,550 14 14 2,353 19 19 Commercial real estate: Owner occupied 922 9 5 1,983 14 10 Non-owner occupied 4,561 46 34 214 - - Commercial and industrial 908 10 10 1,265 9 9 All other 6,108 14 14 7,453 38 38 Total $ 14,401 $ 94 $ 78 $ 15,586 $ 107 $ 103 Troubled Debt Restructurings A loan is classified as a troubled debt restructuring ("TDR") when loan terms are modified due to a borrower's financial difficulties and a concession is granted to a borrower that would not have otherwise been considered. Most of the Company's loan modifications involve a restructuring of loan terms prior to maturity to temporarily reduce the payment amount and/or to require only interest for a temporary period, usually up to six months. These modifications generally do not meet the definition of a TDR because the modifications are considered to be an insignificant delay in payment. The determination of an insignificant delay in payment is evaluated based on the facts and circumstances of the individual borrower(s). The following table presents TDR's as of June 30, 2015 and December 31, 2014: June 30, 2015 TDR's on Non-accrual Other TDR's Total TDR's Residential real estate $ 9 $ 181 $ 190 Commercial real estate Non owner occupied - 464 464 Commercial and industrial - 417 417 All other - 886 886 Total $ 9 $ 1,948 $ 1,957 December 31, 2014 TDR's on Non-accrual Other TDR's Total TDR's Residential real estate $ 13 $ 191 $ 204 Commercial real estate Non owner occupied - 474 474 Commercial and industrial - 761 761 All other - 1,063 1,063 Total $ 13 $ 2,489 $ 2,502 At June 30, 2015 and December 31, 2014 there were no specific reserves allocated to loans that had restructured terms and there were no commitments to lend additional amounts on these loans. The following table presents TDR's that occurred during the six months ended June 30, 2015. There were no TDR's that occurred during the six months ended June 30, 2014. Six months ended June 30, 2015 Loan Class Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Multifamily Real Estate 1 $ 1,543 $ 1,543 Total 1 $ 1,543 $ 1,543 The modification of the multifamily residential real estate loan did not include a permanent reduction of the recorded investment in the loan and did not increase the allowance for loan losses during the period ended June 30, 2015. The modification included a lengthening of the amortization period and reduction in the stated interest rate, however the maturity date was reduced to the end of a fifteen month forbearance period with a balloon payment due at maturity. The modified loan paid in full during the three months ended June 30, 2015. During the three and six months ended June 30, 2015 and the three and six months ended June 30, 2014, there were no TDR's for which there as a payment default within twelve months following the modification. A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. Credit Quality Indicators: The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes non-homogeneous loans, such as commercial, commercial real estate, multifamily residential and commercial purpose loans secured residential real estate, on a monthly basis. For consumer loans, including consumer loans secured by residential real estate, the analysis involves monitoring the performing status of the loan. At the time such loans become past due by 30 days or more, the Company evaluates the loan to determine if a change in risk category is warranted. The Company uses the following definitions for risk ratings: Special Mention. Loans classified as special mention have a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution's credit position at some future date. Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. As of June 30, 2015 and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: Loan Class Pass Special Mention Substandard Doubtful Total Loans Residential real estate $ 270,610 $ 5,125 $ 7,179 $ 9 $ 282,923 Multifamily real estate 32,287 4,286 539 - 37,112 Commercial real estate: Owner occupied 115,111 5,326 2,442 - 122,879 Non-owner occupied 209,695 888 7,298 - 217,881 Commercial and industrial 74,396 714 1,034 49 76,193 Consumer 31,175 245 141 - 31,561 All other 94,355 14,310 6,659 - 115,324 Total $ 827,629 $ 30,894 $ 25,292 $ 58 $ 883,873 As of December 31, 2014, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: Loan Class Pass Special Mention Substandard Doubtful Total Loans Residential real estate $ 265,285 $ 8,292 $ 4,622 $ 13 $ 278,212 Multifamily real estate 27,260 2,017 1,033 - 30,310 Commercial real estate: Owner occupied 111,024 6,505 3,332 - 120,861 Non-owner occupied 218,971 6,652 5,127 - 230,750 Commercial and industrial 83,634 1,007 1,275 27 85,943 Consumer 32,364 267 114 - 32,745 All other 89,173 4,873 6,844 - 100,890 Total $ 827,711 $ 29,613 $ 22,347 $ 40 $ 879,711 |
STOCKHOLDERS' EQUITY AND REGULA
STOCKHOLDERS' EQUITY AND REGULATORY MATTERS | 6 Months Ended |
Jun. 30, 2015 | |
STOCKHOLDERS' EQUITY AND REGULATORY MATTERS [Abstract] | |
STOCKHOLDERS' EQUITY AND REGULATORY MATTERS | NOTE 4- STOCKHOLDERS' EQUITY AND REGULATORY MATTERS The Company's principal source of funds for dividend payments to shareholders is dividends received from the subsidiary Banks. Banking regulations limit the amount of dividends that may be paid without prior approval of regulatory agencies. Under these regulations, the amount of dividends that may be paid in any calendar year is limited to the current year's net profits, as defined, combined with the retained net profits of the preceding two years, subject to the capital requirements and additional restrictions as discussed below. During 2015 the Banks could, without prior approval, declare dividends to Premier of approximately $5.5 million plus any 2015 net profits retained to the date of the dividend declaration. The Company and the subsidiary Banks are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Banks must meet specific guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. These quantitative measures established by regulation to ensure capital adequacy require the Company and Banks to maintain minimum amounts and ratios (set forth in the following table) of Common Equity Tier 1 Capital, Tier 1 Capital and Total Capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 Capital (as defined) to average assets (as defined). The Common Equity Tier 1 Capital measurement became effective with the March 31, 2015 reporting period. Management believes, as of June 30, 2015 the Company and the Banks meet all quantitative capital adequacy requirements to which they are subject. Shown below is a summary of regulatory capital ratios for the Company: June 30, 2015 December 31, 2014 Regulatory Minimum Requirements (1) To Be Considered Well Capitalized (1) Common Equity Tier 1 Capital (to Risk-Weighted Assets) 12.5 % n/ a 4.5 % 6.5 % Tier 1 Capital (to Risk-Weighted Assets) (1) 12.5 % 13.3 % 6.0 % 8.0 % Total Capital (to Risk-Weighted Assets) 13.7 % 14.6 % 8.0 % 10.0 % Tier 1 Capital (to Average Assets) 9.1 % 9.1 % 4.0 % 5.0 % (1) The regulatory requirements presented in the table are effective as of January 1, 2015. At December 31, 2014, the minimum Tier 1 capital to risk-weighted assets ratio was 4.0% and to be considered well capitalized the ratio was required to be at least 6.0% As of June 30, 2015, the most recent notification from each of the Banks' primary Federal regulators categorized the subsidiary Banks as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Banks must maintain minimum Common Equity Tier 1 risk-based, Tier 1 risk-based, Total risk-based and Tier 1 leverage ratios as set forth in the preceding table. There are no conditions or events since that notification that management believes have changed the Banks' categories. |
PREFERRED STOCK AND COMMON STOC
PREFERRED STOCK AND COMMON STOCK WARRANT | 6 Months Ended |
Jun. 30, 2015 | |
PREFERRED STOCK AND COMMON STOCK WARRANT [Abstract] | |
PREFERRED STOCK AND COMMON STOCK WARRANT | NOTE 5 – PREFERRED STOCK AND COMMON STOCK WARRANT On October 2, 2009, as part of the Troubled Asset Relief Program ("TARP") Capital Purchase Program, the Company entered into a Letter Agreement and Securities Purchase Agreement (collectively, the "Purchase Agreement") with the United States Department of the Treasury ("U.S. Treasury"). Pursuant to the Purchase Agreement, the Company issued and sold to the U.S. Treasury 22,252 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series A, no par value, with a liquidation preference of one thousand dollars per share (the "Series A Preferred Stock") and a ten-year warrant (the "Warrant") to purchase 628,588 shares of the Company's common stock, no par value, at an exercise price of $5.31 per share, for an aggregate purchase price of $22,252,000 in cash. Under standardized TARP Capital Purchase Program terms, cumulative dividends on the Series A Preferred Stock accrued on the liquidation preference at a rate of 5% per annum until November 14, 2014. As of November 14, 2014, all of the 22,252 shares of the Series A Preferred Stock have been repurchased or redeemed. The Series A Preferred Stock had no maturity date and ranked senior to the Company's common stock with respect to the payment of dividends and distributions and amounts payable upon liquidation, dissolution and winding up of Premier. Under terms of the Warrant, the exercise price and the number of shares that can be purchased were adjusted based upon certain events including common stock dividends paid to shareholders that exceed the $0.11 per share regular quarterly dividend paid by Premier at the time the Warrant was issued. Due to dividends paid in 2015 and 2014 that were either special cash dividends or dividends that exceeded the $0.11 regular quarterly cash dividend per share defined in the terms of the Warrant, the Warrant was adjusted to permit the purchase of 636,378 shares of the Company's common stock at an exercise price of $5.25 per share. On May 6, 2015, Premier purchased the Warrant from the U.S. Treasury for $5,675,000. Premier borrowed $4,000,000 on its line of credit with the Bankers Bank of Kentucky and used $1,675,000 of its cash and cash equivalents to complete the purchase. The purchase reduced shareholders' equity and regulatory capital by the $5,675,000 purchase price but also reduced the dilutive effect of potential additional common shares. See Note 7 below for additional information on the calculation of diluted earnings per share. |
STOCK COMPENSATION EXPENSE
STOCK COMPENSATION EXPENSE | 6 Months Ended |
Jun. 30, 2015 | |
STOCK COMPENSATION EXPENSE [Abstract] | |
STOCK COMPENSATION EXPENSE | NOTE 6 – STOCK COMPENSATION EXPENSE From time to time the Company grants stock options to its employees. The Company estimates the fair value of the options at the time they are granted to employees and expenses that fair value over the vesting period of the option grant. On March 18, 2015, 47,650 incentive stock options were granted out of the 2012 Long Term Incentive Plan at an exercise price of $14.72, the closing market price of Premier's common stock on the grant date. These options vest in three equal annual installments ending on March 18, 2018. On March 19, 2014, 46,300 incentive stock options were granted out of the 2012 Long Term Incentive Plan at an exercise price of $14.43, the closing market price of Premier's common stock on the grant date. These options vest in three equal annual installments ending on March 19, 2017. The fair value of the Company's employee stock options granted is estimated at the date of grant using the Black-Scholes option-pricing model. This model requires the input of highly subjective assumptions, changes to which can materially affect the fair value estimate. Additionally, there may be other factors that would otherwise have a significant effect on the value of employee stock options granted but are not considered by the model. The assumptions used in the Black-Scholes option-pricing model are as follows: 2015 2014 Risk-free interest rate 1.41 % 2.78 % Expected option life (yrs) 10.00 10.00 Expected stock price volatility 17.20 % 31.19 % Dividend yield 3.53 % 3.33 % Weighted average fair value of options granted $ 1.37 $ 3.74 The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield in effect at the time of the grant. The expected option life for the 2015 grant was based upon the weighted-average life of options exercised from January 1, 2012 through December 31, 2014. The expected option life for the 2014 grant was estimated since there had been little option exercise history at the time of the grant. The expected stock price volatility is based on historical volatilities of the Company's common stock. The dividend yield was estimated by annualizing the current quarterly dividend on the Company's common stock at the time of the option grant. On March 18, 2015, 7,000 shares of Premier's common stock were granted to President and CEO, Robert W. Walker as stock-based bonus compensation under the 2012 Long-term Incentive Plan. The fair value of the stock at the time of the grant was $14.72 per share based upon the closing price of Premier's stock on the date of grant and $103,000 of stock-based compensation was recorded as a result. On April 16, 2014, 6,000 shares of Premier's common stock were granted to Robert W. Walker as stock-based bonus compensation under the 2012 Long-term Incentive Plan. The fair value of the stock at the time of the grant was $14.20 per share based upon the closing price of Premier's stock of the date of grant and $85,000 of stock-based compensation was recorded as a result. Stock-based compensation expense of $163,000 was recorded for the first six months of 2015 compared to $170,000 for the first six months of 2014. For the three months ended June 30, $121,000 was recorded for 2015 while $128,000 was recorded for 2014. Stock-based compensation expense is recognized ratably over the requisite vesting period for all awards. Unrecognized stock-based compensation expense related to stock options totaled $98,000 at June 30, 2015. This unrecognized expense is expected to be recognized over the next 32 months based on the vesting periods of the options. A summary of the Company's stock option activity and related information is presented below for the six months ended June 30: - - - - - - 2015 - - - - - - - - - - - - 2014 - - - - - - Options Weighted Average Exercise Price Options Weighted Average Exercise Price Outstanding at beginning of year 273,942 $ 11.06 354,281 $ 9.84 Grants 47,650 14.72 46,300 14.43 Exercises (18,450 ) 10.87 (63,297 ) 8.45 Forfeitures or expired (16,733 ) 17.10 (8,133 ) 9.27 Outstanding at June 30, 286,409 $ 11.51 329,151 $ 10.77 Exercisable at June 30, 204,675 223,898 Weighted average remaining life of options outstanding 6.2 6.2 Weighted average fair value of options granted during the year $ 1.37 $ 3.74 Options outstanding at period-end are expected to fully vest. Additional information regarding stock options outstanding and exercisable at June 30, 2015, is provided in the following table: - - - - - - - - Outstanding - - - - - - - - - - - - - - - - Currently Exercisable - - - - - - - - Range of Exercise Prices Number Weighted Average Exercise Price Aggregate Intrinsic Value Number Weighted Average Remaining Contractual Life Weighted Average Exercise Price Aggregate Intrinsic Value $6.50 to $10.00 106,949 $ 7.56 $ 844 106,949 5.9 $ 7.56 $ 844 $10.01 to $12.50 36,000 11.39 146 23,374 7.7 11.39 95 $12.51 to $15.00 122,960 14.23 150 53,852 3.8 13.75 92 $15.01 to $17.50 20,500 16.00 - 20,500 0.6 16.00 - Outstanding - June 30, 2015 286,409 11.51 $ 1,140 204,675 5.0 10.47 $ 1,031 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2015 | |
EARNINGS PER SHARE [Abstract] | |
EARNINGS PER SHARE | NOTE 7 – EARNINGS PER SHARE A reconciliation of the numerators and denominators of the earnings per common share and earnings per common share assuming dilution computations for the three and six months ended June 30, 2015 and 2014 is presented below: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Basic earnings per share Income available to common stockholders $ 3,127 $ 2,935 $ 6,269 $ 6,440 Weighted average common shares outstanding 8,157,785 8,079,629 8,150,596 8,061,522 Earnings per share $ 0.38 $ 0.36 $ 0.77 $ 0.80 Diluted earnings per share Income available to common stockholders $ 3,127 $ 2,935 $ 6,269 $ 6,440 Weighted average common shares outstanding 8,157,785 8,079,629 8,150,596 8,061,522 Add dilutive effects of potential additional common stock 230,145 502,839 358,336 504,519 Weighted average common and dilutive potential common shares outstanding 8,387,930 8,582,468 8,508,932 8,566,041 Earnings per share assuming dilution $ 0.37 $ 0.34 $ 0.74 $ 0.75 Stock options for 23,500 and 23,500 shares of common stock were not considered in computing diluted earnings per share for the six months ended June 30, 2015 and 2014 because they were antidilutive. Stock options for 23,500 and 23,500 shares of common stock were not considered in computing diluted earnings per share for the three months ended June 30, 2015 and 2014 because they were antidilutive. |
FAIR VALUE
FAIR VALUE | 6 Months Ended |
Jun. 30, 2015 | |
FAIR VALUE [Abstract] | |
FAIR VALUE | NOTE 8 – FAIR VALUE Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair value: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a company's own assumptions about the assumptions that market participants would use in pricing an asset or liability. When possible, the Company looks to active and observable markets to price identical assets or liabilities. When identical assets and liabilities are not traded in active markets, the Company looks to observable market data for similar assets and liabilities. However, certain assets and liabilities are not traded in observable markets and the Company must use other valuation methods to develop a fair value. Carrying amount is the estimated fair value for cash and due from banks, Federal funds sold, accrued interest receivable and payable, demand deposits, short-term debt, and variable rate loans or deposits that reprice frequently and fully. It was not practicable to determine the fair value of Federal Home Loan Bank stock due to the restrictions placed on its transferability. For fixed rate loans or deposits and for variable rate loans or deposits with infrequent repricing or repricing limits, fair value is based on discounted cash flows using current market rates applied to the estimated life and credit risk. Fair values for impaired loans are estimated using discounted cash flow analysis or underlying collateral values. Fair value of debt is based on current rates for similar financing. The fair value of commitments to extend credit and standby letters of credit is not material. The Company used the following methods and significant assumptions to estimate the fair value of each type of financial instrument measured on a recurring basis: Investment Securities: The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). The carrying amounts and estimated fair values of financial instruments at June 30, 2015 were as follows: Fair Value Measurements at June 30, 2015 Using Carrying Amount Level 1 Level 2 Level 3 Total Financial assets Cash and due from banks $ 68,877 $ 68,877 $ - $ - $ 68,877 Federal funds sold 3,265 3,265 - - 3,265 Securities available for sale 226,077 - 226,077 - 226,077 Loans, net 873,179 - - 874,822 874,822 Federal Home Loan Bank stock 3,072 n/ a n/ a n/ a n/ a Interest receivable 3,271 - 584 2,687 3,271 Financial liabilities Deposits $ (1,070,531 ) $ (718,462 ) $ (350,961 ) $ - $ (1,069,423 ) Securities sold under agreements to repurchase (15,307 ) - (15,307 ) - (15,307 ) Other borrowed funds (12,507 ) - (12,539 ) - (12,539 ) Interest payable (387 ) (6 ) (381 ) - (387 ) The carrying amounts and estimated fair values of financial instruments at December 31, 2014 were as follows: Fair Value Measurements at December 31, 2014 Using Carrying Amount Level 1 Level 2 Level 3 Total Financial assets Cash and due from banks $ 70,398 $ 70,398 $ - $ - $ 70,398 Federal funds sold 4,986 4,986 - - 4,986 Securities available for sale 229,750 - 229,610 140 229,750 Loans held for sale 226 - - 226 226 Loans, net 869,364 - - 870,273 870,273 Federal Home Loan Bank stock 2,996 n/ a n/ a n/ a n/ a Interest receivable 3,219 - 625 2,594 3,219 Financial liabilities Deposits $ (1,075,243 ) $ (711,118 ) $ (363,481 ) $ - $ (1,074,599 ) Securities sold under agreements to repurchase (15,580 ) - (15,580 ) - (15,580 ) Other borrowed funds (11,722 ) - (11,760 ) - (11,760 ) Interest payable (434 ) (6 ) (428 ) - (434 ) Assets and Liabilities Measured on a Recurring Basis Assets and liabilities measured at fair value on a recurring basis are summarized below: Fair Value Measurements at June 30, 2015 Using: Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Available for sale Mortgage-backed securities U. S. agency MBS - residential $ 76,416 $ - $ 76,416 $ - U. S. agency CMO's - residential 124,877 - 124,877 - Total mortgage-backed securities of government sponsored agencies 201,293 - 201,293 - U. S. government sponsored agency securities 14,561 - 14,561 - Obligations of states and political subdivisions 10,223 - 10,223 - Total available for sale $ 226,077 $ - $ 226,077 $ - Fair Value Measurements at December 31, 2014 Using: Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Available for sale Mortgage-backed securities U. S. agency MBS - residential $ 52,780 $ - $ 52,780 $ - U. S. agency CMO's 144,188 - 144,188 - Total mortgage-backed securities of government sponsored agencies 196,968 - 196,968 - U. S. government sponsored agency securities 22,506 - 22,506 - Obligations of states and political subdivisions 10,276 - 10,136 140 Total securities available for sale $ 229,750 $ - $ 229,610 $ 140 Mortgage-backed securities There were no transfers between Level 1 and Level 2 during 2015 or 2014. The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the quarter ended June 30, 2015: Securities Available-for-sale Quarter Ended June 30, 2015 Balance of recurring Level 3 assets at beginning of period $ 140 Total gains or losses (realized/unrealized): Included in earnings – realized - Included in earnings – unrealized - Included in other comprehensive income - Purchases, sales, issuances and settlements, net (140 ) Transfers in and/or out of Level 3 - Balance of recurring Level 3 assets at period-end $ - Assets and Liabilities Measured on a Non-Recurring Basis The Company used the following methods and significant assumptions to estimate the fair value of each type of financial instrument measured on a non-recurring basis: Impaired Loans: The fair value of impaired loans with specific allocations of the allowance for loan losses is generally based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and unique to each property and result in a Level 3 classification of the inputs for determining fair value. Management periodically evaluates the appraised values and will discount a property's appraised value to account for a number of factors including but not limited to the cost of liquidating the collateral, the age of the appraisal, observable deterioration since the appraisal, or other factors unique to the property. To the extent an adjusted appraised value is lower than the carrying value of an impaired loan, a specific allocation of the allowance for loan losses is assigned to the loan. Other real estate owned (OREO): The fair value of OREO is based on appraisals less cost to sell at the date of foreclosure. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and result in a Level 3 classification of the inputs for determining fair value. Management periodically evaluates the appraised values and will discount a property's appraised value to account for a number of factors including but not limited to the cost of liquidating the collateral, the age of the appraisal, observable deterioration since the appraisal, or other factors unique to the property. To the extent an adjusted appraised value is lower than the carrying value of an OREO property, a direct charge to earnings is recorded as an OREO writedown. Assets and liabilities measured at fair value on a non-recurring basis at June 30, 2015 are summarized below: Fair Value Measurements at June 30, 2015 Using Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Impaired loans: Residential real estate $ 63 $ - $ - $ 63 Commercial real estate: Owner occupied 346 - - 346 Non-owner occupied 589 - - 589 Commercial and industrial 19 - - 19 All other 4,249 - - 4,249 Total impaired loans $ 5,266 $ - $ - $ 5,266 Other real estate owned: Residential real estate $ 657 $ - $ - $ 657 Commercial real estate: Owner occupied 39 - - 39 Non-owner occupied 2,003 - - 2,003 All other 6,984 - - 6,984 Total OREO $ 9,683 $ - $ - $ 9,683 Impaired loans, which are measured for impairment using the fair value of the collateral for collateral dependent loans, had a carrying amount of $6,782,000 at June 30, 2015 with a valuation allowance of $1,516,000 and a carrying amount of $7,200,000 at December 31, 2014 with a valuation allowance of $1,400,000. The change resulted in a provision for loan losses of $117,000 for the six months ended June 30, 2015, compared to an $886,000 negative provision for loan losses for the six months ended June 30, 2104 and a $108,000 provision for loan losses for the three months ended June 30, 2015, compared to a $143,000 negative provision for loan losses for the three months ended June 30, 2014. The detail of impaired loans by loan class is contained in Note 3 above. Other real estate owned measured at fair value less costs to sell, had a net carrying amount of $9,683,000 which is made up of the outstanding balance of $11,785,000 net of a valuation allowance of $2,102,000 at June 30, 2015. There were $246,000 of additional write downs during the six months ended June 30, 2015, compared to $280,000 of additional write downs during the six months ended June 30, 2014. For the three months ended June 30, 2015 there were $70,000 of additional write downs compared to $280,000 of additional write downs during the three months ended June 30, 2014. At December 31, 2014, other real estate owned had a net carrying amount of $10,206,000, made up of the outstanding balance of $12,343,000, net of a valuation allowance of $2,137,000. The significant unobservable inputs related to assets and liabilities measured at fair value on a non-recurring basis at June 30, 2015 are summarized below: June 30, 2015 Valuation Techniques Unobservable Inputs Range (Weighted Avg) Impaired loans: Residential real estate $ 63 sales comparison adjustment for differences between the comparable sales 26.5%-26.5% (26.5%) Commercial real estate: Owner occupied 346 sales comparison adjustment for limited salability of specialized property 65.5%-72.4% (66.9%) Non-owner occupied 589 sales comparison adjustment for differences between the comparable sales 41.8%-41.8% (41.8%) Commercial and industrial 19 sales comparison adjustment for estimated realizable value 8.0%-8.0% (8.0%) All other 4,249 sales comparison adjustment for percentage of completion of construction 57.2%-57.2% (57.2%) Total impaired loans $ 5,266 Other real estate owned: Residential real estate $ 657 sales comparison adjustment for differences between the comparable sales 0.7%-35.5% (25.0%) Commercial real estate: Owner occupied 39 sales comparison adjustment for estimated realizable value 25.4%-25.4% (25.4%) Non-owner occupied 2,003 sales comparison adjustment for differences between the comparable sales 17.2%-17.2% (17.2%) All other 6,984 sales comparison adjustment for estimated realizable value 24.6%-67.4% (35.4%) Total OREO $ 9,683 Assets and liabilities measured at fair value on a non-recurring basis at December 31, 2014 are summarized below: Fair Value Measurements at December 31, 2014 Using Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Impaired loans: Commercial real estate: Owner occupied $ 600 $ - $ - $ 600 Non-owner occupied 630 - - 630 Commercial and industrial 341 - - 341 All other 4,229 - - 4,229 Total impaired loans $ 5,800 $ - $ - $ 5,800 Other real estate owned: Commercial real estate: Non-owner occupied $ 2,003 $ - $ - $ 2,003 All other 8,203 - - 8,203 Total OREO $ 10,206 $ - $ - $ 10,206 The significant unobservable inputs related to assets and liabilities measured at fair value on a non-recurring basis at December 31, 2014 are summarized below: December 31, 2014 Valuation Techniques Unobservable Inputs Range (Weighted Avg) Impaired loans: Commercial Real Estate Owner Occupied $ 600 sales comparison adjustment for limited salability of specialized property 44.8%-72.4% (58.9%) Non-owner Occupied 630 sales comparison adjustment for differences between the comparable sales 16.9%-54.6% (16.9%) Commercial and Industrial 341 sales comparison adjustment for limited salability of specialized property 26.2%-41.2% (27.0%) All Other 4,229 sales comparison adjustment for percentage of completion of construction 57.3%-57.3% (57.3%) Total impaired loans $ 5,800 Other real estate owned: Commercial Real Estate Non-owner Occupied $ 2,003 sales comparison adjustment for differences between the comparable sales 17.8%-17.8% (17.8%) All Other 8,203 sales comparison adjustment for estimated realizable value 24.6%-50.3% (45.0%) Total OREO $ 10,206 |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 6 Months Ended |
Jun. 30, 2015 | |
SUBSEQUENT EVENT [Abstract] | |
SUBSEQUENT EVENT | NOTE 9 – SUBSEQUENT EVENT On July 6, 2015, Premier Financial Bancorp, Inc. ("Premier") entered into a material definitive merger agreement (the "Merger Agreement") with First National Bankshares Corporation ("First National"), a $261 million single bank holding company headquartered in Ronceverte, West Virginia whereby Premier will acquire First National in exchange for a combination of cash and Premier common stock currently valued at approximately $26.5 million. Under terms of the Merger Agreement, First National shareholders will be entitled to a combination of Premier common stock and cash currently valued at approximately $31.82 per First National share, or an aggregate value of $26.5 million, with Premier issuing approximately 1.4 million shares in the acquisition. The transaction, which is subject to satisfaction of various contractual conditions and requires approval by bank regulatory agencies and the shareholders of First National, is anticipated to close in the fourth quarter of 2015 with a systems conversion anticipated to be completed in the first quarter of 2016. |
BASIS OF PRESENTATION (Tables)
BASIS OF PRESENTATION (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
BASIS OF PRESENTATION [Abstract] | |
Accounts of the Company and its Wholly Owned Subsidiaries | The consolidated financial statements include the accounts of Premier Financial Bancorp, Inc. (the Company) and its wholly owned subsidiaries (the "Banks"): June 30, 2015 Year Total Net Income Subsidiary Location Acquired Assets Qtr YTD Citizens Deposit Bank & Trust Vanceburg, Kentucky 1991 $ 387,663 $ 931 $ 1,945 Premier Bank, Inc. Huntington, West Virginia 1998 853,078 2,702 5,275 Parent and Intercompany Eliminations 6,265 (506 ) (951 ) Consolidated Total $ 1,247,006 $ 3,127 $ 6,269 |
SECURITIES (Tables)
SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
SECURITIES [Abstract] | |
Amortized Cost and Fair Value of Investment Securities, by Category | Amortized cost and fair value of investment securities, by category, at June 30, 2015 are summarized as follows: Amortized Cost Unrealized Gains Unrealized Losses Fair Value Available for sale Mortgage-backed securities U. S. sponsored agency MBS - residential $ 76,141 $ 674 $ (399 ) $ 76,416 U. S. sponsored agency CMO's - residential 123,441 2,140 (704 ) 124,877 Total mortgage-backed securities of government sponsored agencies 199,582 2,814 (1,103 ) 201,293 U. S. government sponsored agency securities 14,463 98 - 14,561 Obligations of states and political subdivisions 10,044 197 (18 ) 10,223 Total available for sale $ 224,089 $ 3,109 $ (1,121 ) $ 226,077 Amortized cost and fair value of investment securities, by category, at December 31, 2014 are summarized as follows: Amortized Cost Unrealized Gains Unrealized Losses Fair Value Available for sale Mortgage-backed securities U. S. sponsored agency MBS - residential $ 52,006 $ 774 $ - $ 52,780 U. S. sponsored agency CMO's - residential 142,932 2,167 (911 ) 144,188 Total mortgage-backed securities of government sponsored agencies 194,938 2,941 (911 ) 196,968 U. S. government sponsored agency securities 22,553 30 (57 ) 22,506 Obligations of states and political subdivisions 10,015 261 - 10,276 Total available for sale $ 227,486 $ 3,232 $ (968 ) $ 229,750 |
Amortized Cost and Fair Value of Securities by Contractual Maturity | The amortized cost and fair value of securities at June 30, 2015 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Cost Fair Value Available for sale Due in one year or less $ 3,472 $ 3,489 Due after one year through five years 17,732 17,952 Due after five years through ten years 3,054 3,093 Due after ten years 249 250 Mortgage-backed securities of government sponsored agencies 199,582 201,293 Total available for sale $ 224,089 $ 226,077 |
Securities in Continuous Unrealized Loss Position | Securities with unrealized losses at June 30, 2015 aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position are as follows: Less than 12 Months 12 Months or More Total Description of Securities Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S government sponsored agency MBS – residential $ 30,728 $ (399 ) $ - $ - $ 30,728 $ (399 ) U.S government sponsored agency CMO – residential 7,204 (91 ) 19,292 (613 ) 26,496 (704 ) Obligations of states and political subdivisions 911 (18 ) - - 911 (18 ) Total temporarily impaired $ 38,843 $ (508 ) $ 19,292 $ (613 ) $ 58,135 $ (1,121 ) Securities with unrealized losses at December 31, 2014 aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position are as follows: Less than 12 Months 12 Months or More Total Description of Securities Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S government sponsored agency securities $ 9,971 $ (57 ) $ - $ - $ 9,971 $ (57 ) U.S government sponsored agency CMO's – residential 5,194 (52 ) 26,471 (859 ) 31,665 (911 ) Total temporarily impaired $ 15,165 $ (109 ) $ 26,471 $ (859 ) $ 41,636 $ (968 ) |
LOANS (Tables)
LOANS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
LOANS [Abstract] | |
Major Classifications of Loans | Major classifications of loans at June 30, 2015 and December 31, 2014 are summarized as follows: 2015 2014 Residential real estate $ 282,923 $ 278,212 Multifamily real estate 37,112 30,310 Commercial real estate: Owner occupied 122,879 120,861 Non owner occupied 217,881 230,750 Commercial and industrial 76,193 85,943 Consumer 31,561 32,745 All other 115,324 100,890 $ 883,873 $ 879,711 |
Activity in the Allowance for Loan Losses by Portfolio Segment | Activity in the allowance for loan losses by portfolio segment for the six months ended June 30, 2015 was as follows: Loan Class Balance Dec 31, 2014 Provision (credit) for loan losses Loans charged-off Recoveries Balance June 30, 2015 Residential real estate $ 2,093 $ 372 $ 78 $ 79 $ 2,466 Multifamily real estate 304 208 - - 512 Commercial real estate: Owner occupied 1,501 (24 ) 2 1 1,476 Non owner occupied 2,316 (643 ) - 659 2,332 Commercial and industrial 1,444 (140 ) 169 4 1,139 Consumer 243 105 132 58 274 All other 2,446 45 112 116 2,495 Total $ 10,347 $ (77 ) $ 493 $ 917 $ 10,694 Activity in the allowance for loan losses by portfolio segment for the six months ending June 30, 2014 was as follows: Loan Class Balance Dec 31, 2013 Provision (credit) for loan losses Loans charged-off Recoveries Balance June 30, 2014 Residential real estate $ 2,694 $ (391 ) $ 171 $ 8 $ 2,140 Multifamily real estate 417 (106 ) - - 311 Commercial real estate: Owner occupied 1,407 39 82 - 1,364 Non owner occupied 2,037 556 323 - 2,270 Commercial and industrial 2,184 (616 ) 84 5 1,489 Consumer 297 (33 ) 59 27 232 All other 1,991 162 204 122 2,071 Total $ 11,027 $ (389 ) $ 923 $ 162 $ 9,877 Activity in the allowance for loan losses by portfolio segment for the three months ended June 30, 2015 was as follows: Loan Class Balance March 31, 2015 Provision (credit) for loan losses Loans charged-off Recoveries Balance June 30, 2015 Residential real estate $ 2,196 $ 218 $ 4 $ 56 $ 2,466 Multifamily real estate 287 225 - - 512 Commercial real estate: Owner occupied 1,489 (13 ) - - 1,476 Non owner occupied 2,324 (651 ) - 659 2,332 Commercial and industrial 1,450 (305 ) 8 2 1,139 Consumer 241 87 78 24 274 All other 2,183 293 53 72 2,495 Total $ 10,170 $ (146 ) $ 143 $ 813 $ 10,694 Activity in the allowance for loan losses by portfolio segment for the three months ending June 30, 2014 was as follows: Loan Class Balance March 31, 2014 Provision (credit) for loan losses Loans charged-off Recoveries Balance June 30, 2014 Residential real estate $ 2,250 $ 36 $ 152 $ 6 $ 2,140 Multifamily real estate 297 14 - - 311 Commercial real estate: Owner occupied 1,477 (32 ) 81 - 1,364 Non owner occupied 2,385 (92 ) 23 - 2,270 Commercial and industrial 1,527 (20 ) 21 3 1,489 Consumer 220 37 33 8 232 All other 2,188 (22 ) 167 72 2,071 Total $ 10,344 $ (79 ) $ 477 $ 89 $ 9,877 |
Purchased Loans | The carrying amount of those loans is as follows at June 30, 2015 and December 31, 2014. 2015 2014 Multifamily real estate $ 460 $ 497 Commercial real estate Owner occupied 131 131 Non owner occupied 5,623 5,695 Commercial and industrial 126 136 All other 5,149 5,128 Total carrying amount $ 11,489 $ 11,587 Contractual principal balance $ 21,159 $ 21,250 Carrying amount, net of allowance $ 10,463 $ 10,639 |
Purchase Loans Accretable Yield, or Income Expected to be Collected | The accretable yield, or income expected to be collected, on the purchased loans above is as follows at June 30, 2015 and June 30, 2014. 2015 2014 Balance at January 1 $ 204 $ 217 New loans purchased - - Accretion of income (10 ) (6 ) Reclassifications from non-accretable difference - - Disposals - - Balance at June 30 $ 194 $ 211 |
Past Due and Non-performing Loans | The following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of June 30, 2015 and December 31, 2014. The recorded investment in non-accrual loans is less than the principal owed on non-accrual loans due to discounts applied to the carrying value of the loan at time of their acquisition and interest payments made by the borrower which have been used to reduce the recorded investment in the loan rather than recognized as interest income. June 30, 2015 Principal Owed on Non-accrual Loans Recorded Investment in Non-accrual Loans Loans Past Due Over 90 Days, still accruing Residential real estate $ 2,507 $ 2,283 $ 378 Multifamily real estate 1,532 539 - Commercial real estate Owner occupied 807 737 8 Non owner occupied 1,960 1,689 1,820 Commercial and industrial 1,576 471 83 Consumer 98 80 - All other 12,635 5,183 - Total $ 21,115 $ 10,982 $ 2,289 December 31, 2014 Principal Owed on Non-accrual Loans Recorded Investment in Non-accrual Loans Loans Past Due Over 90 Days, still accruing Residential real estate $ 1,996 $ 1,768 $ 668 Multifamily real estate 1,803 1,033 564 Commercial real estate Owner occupied 2,115 1,928 - Non owner occupied 2,020 1,819 26 Commercial and industrial 2,012 806 8 Consumer 213 185 - All other 12,608 5,173 - Total $ 22,767 $ 12,712 $ 1,266 |
Aging of Recorded Investment in Past Due Loans by Loan Class | The following table presents the aging of the recorded investment in past due loans as of June 30, 2015 by class of loans: Loan Class Total Loans 30-89 Days Past Due Greater than 90 days past due Total Past Due Loans Not Past Due Residential real estate $ 282,923 $ 5,862 $ 1,658 $ 7,520 $ 275,403 Multifamily real estate 37,112 460 79 539 36,573 Commercial real estate: Owner occupied 122,879 1,769 549 2,318 120,561 Non owner occupied 217,881 125 3,509 3,634 214,247 Commercial and industrial 76,193 1,737 348 2,085 74,108 Consumer 31,561 526 15 541 31,020 All other 115,324 13,591 5,149 18,740 96,584 Total $ 883,873 $ 24,070 $ 11,307 $ 35,377 $ 848,496 The following table presents the aging of the recorded investment in past due loans as of December 31, 2014 by class of loans: Loan Class Total Loans 30-89 Days Past Due Greater than 90 days past due Total Past Due Loans Not Past Due Residential real estate $ 278,212 $ 5,810 $ 1,706 $ 7,516 $ 270,696 Multifamily real estate 30,310 177 1,100 1,277 29,033 Commercial real estate: Owner occupied 120,861 250 1,530 1,780 119,081 Non owner occupied 230,750 2,173 1,670 3,843 226,907 Commercial and industrial 85,943 1,720 608 2,328 83,615 Consumer 32,745 497 71 568 32,177 All other 100,890 234 5,127 5,361 95,529 Total $ 879,711 $ 10,861 $ 11,812 $ 22,673 $ 857,038 |
Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment Based on Impairment Method | The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of June 30, 2015: Allowance for Loan Losses Loan Balances Loan Class Individually Evaluated for Impairment Collectively Evaluated for Impairment Acquired with Deteriorated Credit Quality Total Individually Evaluated for Impairment Collectively Evaluated for Impairment Acquired with Deteriorated Credit Quality Total Residential real estate $ 183 $ 2,283 $ - $ 2,466 $ 571 $ 282,352 $ - $ 282,923 Multifamily real estate - 512 - 512 79 36,573 460 37,112 Commercial real estate: Owner occupied 48 1,428 - 1,476 943 121,805 131 122,879 Non-owner occupied 29 2,303 - 2,332 4,396 207,862 5,623 217,881 Commercial and industrial 230 783 126 1,139 666 75,401 126 76,193 Consumer - 274 - 274 - 31,561 - 31,561 All other - 1,595 900 2,495 912 109,263 5,149 115,324 Total $ 490 $ 9,178 $ 1,026 $ 10,694 $ 7,567 $ 864,817 $ 11,489 $ 883,873 The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2014: Allowance for Loan Losses Loan Balances Loan Class Individually Evaluated for Impairment Collectively Evaluated for Impairment Acquired with Deteriorated Credit Quality Total Individually Evaluated for Impairment Collectively Evaluated for Impairment Acquired with Deteriorated Credit Quality Total Residential real estate $ - $ 2,093 $ - $ 2,093 $ 137 $ 278,075 $ - $ 278,212 Multifamily real estate - 304 - 304 536 29,277 497 30,310 Commercial real estate: Owner occupied 107 1,394 - 1,501 2,011 118,719 131 120,861 Non-owner occupied 54 2,262 - 2,316 4,874 220,181 5,695 230,750 Commercial and industrial 291 1,105 48 1,444 902 84,905 136 85,943 Consumer - 243 - 243 - 32,745 - 32,745 All other - 1,546 900 2,446 1,109 94,653 5,128 100,890 Total $ 452 $ 8,947 $ 948 $ 10,347 $ 9,569 $ 858,555 $ 11,587 $ 879,711 |
Loans Individually Evaluated for Impairment by Class of Loans | The following table presents loans individually evaluated for impairment by class of loans as of June 30, 2015. The table includes $5,658,000 of loans acquired with deteriorated credit quality that the Company cannot reasonably estimate cash flows such that they are accounted for on the cost recovery method and are still individually evaluated for impairment. Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated With no related allowance recorded: Residential real estate $ 363 $ 325 $ - Multifamily real estate 1,532 539 - Commercial real estate Owner occupied 612 549 - Non owner occupied 4,049 3,778 - Commercial and industrial 1,193 417 - All other 967 912 - 8,716 6,520 - With an allowance recorded: Residential real estate $ 252 $ 246 $ 183 Commercial real estate Owner occupied 394 394 48 Non owner occupied 618 618 29 Commercial and industrial 651 375 356 All other 12,546 5,149 900 14,461 6,782 1,516 Total $ 23,177 $ 13,302 $ 1,516 The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2014. The table includes $5,673,000 of loans acquired with deteriorated credit quality that the Company cannot reasonably estimate cash flows such that they are accounted for on the cost recovery method and are still individually evaluated for impairment. Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated With no related allowance recorded: Residential real estate $ 179 $ 137 $ - Multifamily real estate 1,803 1,033 - Commercial real estate Owner occupied 1,404 1,304 - Non owner occupied 4,398 4,190 - Commercial and industrial 1,030 270 - All other 1,144 1,108 - 9,958 8,042 - With an allowance recorded: Commercial real estate Owner occupied $ 707 $ 707 $ 107 Non owner occupied 684 684 54 Commercial and industrial 929 680 339 All other 12,525 5,129 900 14,845 7,200 1,400 Total $ 24,803 $ 15,242 $ 1,400 |
The Average Balance of Loans Individually Evaluated for Impairment and Interest Income Recognized | The following table presents the average balance of loans individually evaluated for impairment and interest income recognized on these loans for the six months ended June 30, 2015 and June 30, 2014. The table includes loans acquired with deteriorated credit quality that are still individually evaluated for impairment. Six months ended June 30, 2015 Six months ended June 30, 2014 Loan Class Average Recorded Investment Interest Income Recognized Cash Basis Interest Recognized Average Recorded Investment Interest Income Recognized Cash Basis Interest Recognized Residential real estate $ 281 $ 2 $ 2 $ 2,536 $ 61 $ 61 Multifamily real estate 1,377 14 14 2,586 727 727 Commercial real estate: Owner occupied 1,286 18 13 2,155 29 21 Non-owner occupied 4,665 94 82 800 627 627 Commercial and industrial 922 14 14 2,395 542 542 All other 6,150 30 28 7,603 81 81 Total $ 14,681 $ 172 $ 153 $ 18,075 $ 2,067 $ 2,059 The following table presents the average balance of loans individually evaluated for impairment and interest income recognized on these loans for the three months ended June 30, 2015 and June 30, 2014. The table includes loans acquired with deteriorated credit quality that are still individually evaluated for impairment. Three months ended June 30, 2015 Three months ended June 30, 2014 Loan Class Average Recorded Investment Interest Income Recognized Cash Basis Interest Recognized Average Recorded Investment Interest Income Recognized Cash Basis Interest Recognized Residential real estate $ 352 $ 1 $ 1 $ 2,318 $ 27 $ 27 Multifamily real estate 1,550 14 14 2,353 19 19 Commercial real estate: Owner occupied 922 9 5 1,983 14 10 Non-owner occupied 4,561 46 34 214 - - Commercial and industrial 908 10 10 1,265 9 9 All other 6,108 14 14 7,453 38 38 Total $ 14,401 $ 94 $ 78 $ 15,586 $ 107 $ 103 |
Troubled Debt Restructurings | The following table presents TDR's as of June 30, 2015 and December 31, 2014: June 30, 2015 TDR's on Non-accrual Other TDR's Total TDR's Residential real estate $ 9 $ 181 $ 190 Commercial real estate Non owner occupied - 464 464 Commercial and industrial - 417 417 All other - 886 886 Total $ 9 $ 1,948 $ 1,957 December 31, 2014 TDR's on Non-accrual Other TDR's Total TDR's Residential real estate $ 13 $ 191 $ 204 Commercial real estate Non owner occupied - 474 474 Commercial and industrial - 761 761 All other - 1,063 1,063 Total $ 13 $ 2,489 $ 2,502 |
Troubled Debt Restructuring During the Period | The following table presents TDR's that occurred during the six months ended June 30, 2015. There were no TDR's that occurred during the six months ended June 30, 2014. Six months ended June 30, 2015 Loan Class Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Multifamily Real Estate 1 $ 1,543 $ 1,543 Total 1 $ 1,543 $ 1,543 |
Risk Category of Loans by Class of Loans | As of June 30, 2015 and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: Loan Class Pass Special Mention Substandard Doubtful Total Loans Residential real estate $ 270,610 $ 5,125 $ 7,179 $ 9 $ 282,923 Multifamily real estate 32,287 4,286 539 - 37,112 Commercial real estate: Owner occupied 115,111 5,326 2,442 - 122,879 Non-owner occupied 209,695 888 7,298 - 217,881 Commercial and industrial 74,396 714 1,034 49 76,193 Consumer 31,175 245 141 - 31,561 All other 94,355 14,310 6,659 - 115,324 Total $ 827,629 $ 30,894 $ 25,292 $ 58 $ 883,873 As of December 31, 2014, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: Loan Class Pass Special Mention Substandard Doubtful Total Loans Residential real estate $ 265,285 $ 8,292 $ 4,622 $ 13 $ 278,212 Multifamily real estate 27,260 2,017 1,033 - 30,310 Commercial real estate: Owner occupied 111,024 6,505 3,332 - 120,861 Non-owner occupied 218,971 6,652 5,127 - 230,750 Commercial and industrial 83,634 1,007 1,275 27 85,943 Consumer 32,364 267 114 - 32,745 All other 89,173 4,873 6,844 - 100,890 Total $ 827,711 $ 29,613 $ 22,347 $ 40 $ 879,711 |
STOCKHOLDERS' EQUITY AND REGU19
STOCKHOLDERS' EQUITY AND REGULATORY MATTERS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
STOCKHOLDERS' EQUITY AND REGULATORY MATTERS [Abstract] | |
Summary of Regulatory Capital Ratios | Shown below is a summary of regulatory capital ratios for the Company: June 30, 2015 December 31, 2014 Regulatory Minimum Requirements (1) To Be Considered Well Capitalized (1) Common Equity Tier 1 Capital (to Risk-Weighted Assets) 12.5 % n/ a 4.5 % 6.5 % Tier 1 Capital (to Risk-Weighted Assets) (1) 12.5 % 13.3 % 6.0 % 8.0 % Total Capital (to Risk-Weighted Assets) 13.7 % 14.6 % 8.0 % 10.0 % Tier 1 Capital (to Average Assets) 9.1 % 9.1 % 4.0 % 5.0 % (1) The regulatory requirements presented in the table are effective as of January 1, 2015. At December 31, 2014, the minimum Tier 1 capital to risk-weighted assets ratio was 4.0% and to be considered well capitalized the ratio was required to be at least 6.0% |
STOCK COMPENSATION EXPENSE (Tab
STOCK COMPENSATION EXPENSE (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
STOCK COMPENSATION EXPENSE [Abstract] | |
Assumption Used in the Black-Scholes Option-pricing Model | The assumptions used in the Black-Scholes option-pricing model are as follows: 2015 2014 Risk-free interest rate 1.41 % 2.78 % Expected option life (yrs) 10.00 10.00 Expected stock price volatility 17.20 % 31.19 % Dividend yield 3.53 % 3.33 % Weighted average fair value of options granted $ 1.37 $ 3.74 |
Summary of Stock Option Activity | A summary of the Company's stock option activity and related information is presented below for the six months ended June 30: - - - - - - 2015 - - - - - - - - - - - - 2014 - - - - - - Options Weighted Average Exercise Price Options Weighted Average Exercise Price Outstanding at beginning of year 273,942 $ 11.06 354,281 $ 9.84 Grants 47,650 14.72 46,300 14.43 Exercises (18,450 ) 10.87 (63,297 ) 8.45 Forfeitures or expired (16,733 ) 17.10 (8,133 ) 9.27 Outstanding at June 30, 286,409 $ 11.51 329,151 $ 10.77 Exercisable at June 30, 204,675 223,898 Weighted average remaining life of options outstanding 6.2 6.2 Weighted average fair value of options granted during the year $ 1.37 $ 3.74 |
Stock Option Activity by Range of Exercise Prices | Additional information regarding stock options outstanding and exercisable at June 30, 2015, is provided in the following table: - - - - - - - - Outstanding - - - - - - - - - - - - - - - - Currently Exercisable - - - - - - - - Range of Exercise Prices Number Weighted Average Exercise Price Aggregate Intrinsic Value Number Weighted Average Remaining Contractual Life Weighted Average Exercise Price Aggregate Intrinsic Value $6.50 to $10.00 106,949 $ 7.56 $ 844 106,949 5.9 $ 7.56 $ 844 $10.01 to $12.50 36,000 11.39 146 23,374 7.7 11.39 95 $12.51 to $15.00 122,960 14.23 150 53,852 3.8 13.75 92 $15.01 to $17.50 20,500 16.00 - 20,500 0.6 16.00 - Outstanding - June 30, 2015 286,409 11.51 $ 1,140 204,675 5.0 10.47 $ 1,031 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
EARNINGS PER SHARE [Abstract] | |
Reconciliation of Numerators and Denominators of the Earnings Per Share | A reconciliation of the numerators and denominators of the earnings per common share and earnings per common share assuming dilution computations for the three and six months ended June 30, 2015 and 2014 is presented below: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Basic earnings per share Income available to common stockholders $ 3,127 $ 2,935 $ 6,269 $ 6,440 Weighted average common shares outstanding 8,157,785 8,079,629 8,150,596 8,061,522 Earnings per share $ 0.38 $ 0.36 $ 0.77 $ 0.80 Diluted earnings per share Income available to common stockholders $ 3,127 $ 2,935 $ 6,269 $ 6,440 Weighted average common shares outstanding 8,157,785 8,079,629 8,150,596 8,061,522 Add dilutive effects of potential additional common stock 230,145 502,839 358,336 504,519 Weighted average common and dilutive potential common shares outstanding 8,387,930 8,582,468 8,508,932 8,566,041 Earnings per share assuming dilution $ 0.37 $ 0.34 $ 0.74 $ 0.75 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
FAIR VALUE [Abstract] | |
Carrying Amounts and Estimated Fair Values of Financial Instruments | The carrying amounts and estimated fair values of financial instruments at June 30, 2015 were as follows: Fair Value Measurements at June 30, 2015 Using Carrying Amount Level 1 Level 2 Level 3 Total Financial assets Cash and due from banks $ 68,877 $ 68,877 $ - $ - $ 68,877 Federal funds sold 3,265 3,265 - - 3,265 Securities available for sale 226,077 - 226,077 - 226,077 Loans, net 873,179 - - 874,822 874,822 Federal Home Loan Bank stock 3,072 n/ a n/ a n/ a n/ a Interest receivable 3,271 - 584 2,687 3,271 Financial liabilities Deposits $ (1,070,531 ) $ (718,462 ) $ (350,961 ) $ - $ (1,069,423 ) Securities sold under agreements to repurchase (15,307 ) - (15,307 ) - (15,307 ) Other borrowed funds (12,507 ) - (12,539 ) - (12,539 ) Interest payable (387 ) (6 ) (381 ) - (387 ) The carrying amounts and estimated fair values of financial instruments at December 31, 2014 were as follows: Fair Value Measurements at December 31, 2014 Using Carrying Amount Level 1 Level 2 Level 3 Total Financial assets Cash and due from banks $ 70,398 $ 70,398 $ - $ - $ 70,398 Federal funds sold 4,986 4,986 - - 4,986 Securities available for sale 229,750 - 229,610 140 229,750 Loans held for sale 226 - - 226 226 Loans, net 869,364 - - 870,273 870,273 Federal Home Loan Bank stock 2,996 n/ a n/ a n/ a n/ a Interest receivable 3,219 - 625 2,594 3,219 Financial liabilities Deposits $ (1,075,243 ) $ (711,118 ) $ (363,481 ) $ - $ (1,074,599 ) Securities sold under agreements to repurchase (15,580 ) - (15,580 ) - (15,580 ) Other borrowed funds (11,722 ) - (11,760 ) - (11,760 ) Interest payable (434 ) (6 ) (428 ) - (434 ) |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below: Fair Value Measurements at June 30, 2015 Using: Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Available for sale Mortgage-backed securities U. S. agency MBS - residential $ 76,416 $ - $ 76,416 $ - U. S. agency CMO's - residential 124,877 - 124,877 - Total mortgage-backed securities of government sponsored agencies 201,293 - 201,293 - U. S. government sponsored agency securities 14,561 - 14,561 - Obligations of states and political subdivisions 10,223 - 10,223 - Total available for sale $ 226,077 $ - $ 226,077 $ - Fair Value Measurements at December 31, 2014 Using: Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Available for sale Mortgage-backed securities U. S. agency MBS - residential $ 52,780 $ - $ 52,780 $ - U. S. agency CMO's 144,188 - 144,188 - Total mortgage-backed securities of government sponsored agencies 196,968 - 196,968 - U. S. government sponsored agency securities 22,506 - 22,506 - Obligations of states and political subdivisions 10,276 - 10,136 140 Total securities available for sale $ 229,750 $ - $ 229,610 $ 140 Mortgage-backed securities |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the quarter ended June 30, 2015: Securities Available-for-sale Quarter Ended June 30, 2015 Balance of recurring Level 3 assets at beginning of period $ 140 Total gains or losses (realized/unrealized): Included in earnings – realized - Included in earnings – unrealized - Included in other comprehensive income - Purchases, sales, issuances and settlements, net (140 ) Transfers in and/or out of Level 3 - Balance of recurring Level 3 assets at period-end $ - |
Assets and Liabilities Measured at Fair Value on a Non-recurring Basis | Assets and liabilities measured at fair value on a non-recurring basis at June 30, 2015 are summarized below: Fair Value Measurements at June 30, 2015 Using Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Impaired loans: Residential real estate $ 63 $ - $ - $ 63 Commercial real estate: Owner occupied 346 - - 346 Non-owner occupied 589 - - 589 Commercial and industrial 19 - - 19 All other 4,249 - - 4,249 Total impaired loans $ 5,266 $ - $ - $ 5,266 Other real estate owned: Residential real estate $ 657 $ - $ - $ 657 Commercial real estate: Owner occupied 39 - - 39 Non-owner occupied 2,003 - - 2,003 All other 6,984 - - 6,984 Total OREO $ 9,683 $ - $ - $ 9,683 Assets and liabilities measured at fair value on a non-recurring basis at December 31, 2014 are summarized below: Fair Value Measurements at December 31, 2014 Using Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Impaired loans: Commercial real estate: Owner occupied $ 600 $ - $ - $ 600 Non-owner occupied 630 - - 630 Commercial and industrial 341 - - 341 All other 4,229 - - 4,229 Total impaired loans $ 5,800 $ - $ - $ 5,800 Other real estate owned: Commercial real estate: Non-owner occupied $ 2,003 $ - $ - $ 2,003 All other 8,203 - - 8,203 Total OREO $ 10,206 $ - $ - $ 10,206 |
Fair Value Inputs, Assets, Quantitative Information | The significant unobservable inputs related to assets and liabilities measured at fair value on a non-recurring basis at June 30, 2015 are summarized below: June 30, 2015 Valuation Techniques Unobservable Inputs Range (Weighted Avg) Impaired loans: Residential real estate $ 63 sales comparison adjustment for differences between the comparable sales 26.5%-26.5% (26.5%) Commercial real estate: Owner occupied 346 sales comparison adjustment for limited salability of specialized property 65.5%-72.4% (66.9%) Non-owner occupied 589 sales comparison adjustment for differences between the comparable sales 41.8%-41.8% (41.8%) Commercial and industrial 19 sales comparison adjustment for estimated realizable value 8.0%-8.0% (8.0%) All other 4,249 sales comparison adjustment for percentage of completion of construction 57.2%-57.2% (57.2%) Total impaired loans $ 5,266 Other real estate owned: Residential real estate $ 657 sales comparison adjustment for differences between the comparable sales 0.7%-35.5% (25.0%) Commercial real estate: Owner occupied 39 sales comparison adjustment for estimated realizable value 25.4%-25.4% (25.4%) Non-owner occupied 2,003 sales comparison adjustment for differences between the comparable sales 17.2%-17.2% (17.2%) All other 6,984 sales comparison adjustment for estimated realizable value 24.6%-67.4% (35.4%) Total OREO $ 9,683 The significant unobservable inputs related to assets and liabilities measured at fair value on a non-recurring basis at December 31, 2014 are summarized below: December 31, 2014 Valuation Techniques Unobservable Inputs Range (Weighted Avg) Impaired loans: Commercial Real Estate Owner Occupied $ 600 sales comparison adjustment for limited salability of specialized property 44.8%-72.4% (58.9%) Non-owner Occupied 630 sales comparison adjustment for differences between the comparable sales 16.9%-54.6% (16.9%) Commercial and Industrial 341 sales comparison adjustment for limited salability of specialized property 26.2%-41.2% (27.0%) All Other 4,229 sales comparison adjustment for percentage of completion of construction 57.3%-57.3% (57.3%) Total impaired loans $ 5,800 Other real estate owned: Commercial Real Estate Non-owner Occupied $ 2,003 sales comparison adjustment for differences between the comparable sales 17.8%-17.8% (17.8%) All Other 8,203 sales comparison adjustment for estimated realizable value 24.6%-50.3% (45.0%) Total OREO $ 10,206 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Consolidation, Wholly Owned Subsidiaries [Line Items] | |||||
Total Assets | $ 1,247,006 | $ 1,247,006 | $ 1,252,824 | ||
Net Income | 3,127 | $ 3,100 | $ 6,269 | $ 6,770 | |
Citizens Deposit Bank & Trust [Member] | Vanceburg, Kentucky [Member] | |||||
Consolidation, Wholly Owned Subsidiaries [Line Items] | |||||
Year Acquired | 1,991 | ||||
Total Assets | 387,663 | $ 387,663 | |||
Net Income | 931 | $ 1,945 | |||
Premier Bank, Inc. [Member] | Huntington, West Virginia [Member] | |||||
Consolidation, Wholly Owned Subsidiaries [Line Items] | |||||
Year Acquired | 1,998 | ||||
Total Assets | 853,078 | $ 853,078 | |||
Net Income | 2,702 | 5,275 | |||
Parent and Intercompany Eliminations [Member] | |||||
Consolidation, Wholly Owned Subsidiaries [Line Items] | |||||
Total Assets | 6,265 | 6,265 | |||
Net Income | $ (506) | $ (951) |
SECURITIES (Details)
SECURITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Available-for-sale Investment securities [Abstract] | ||
Amortized Cost | $ 224,089 | $ 227,486 |
Unrealized Gains | 3,109 | 3,232 |
Unrealized Losses | (1,121) | (968) |
Available for sale, Fair Value | 226,077 | 229,750 |
U. S. Sponsored Agency MBS - Residential [Member] | ||
Available-for-sale Investment securities [Abstract] | ||
Amortized Cost | 76,141 | 52,006 |
Unrealized Gains | 674 | 774 |
Unrealized Losses | (399) | 0 |
Available for sale, Fair Value | 76,416 | 52,780 |
U. S. Sponsored Agency CMO's - Residential [Member] | ||
Available-for-sale Investment securities [Abstract] | ||
Amortized Cost | 123,441 | 142,932 |
Unrealized Gains | 2,140 | 2,167 |
Unrealized Losses | (704) | (911) |
Available for sale, Fair Value | 124,877 | 144,188 |
Total Mortgage-Backed Securities of Government Sponsored Agencies [Member] | ||
Available-for-sale Investment securities [Abstract] | ||
Amortized Cost | 199,582 | 194,938 |
Unrealized Gains | 2,814 | 2,941 |
Unrealized Losses | (1,103) | (911) |
Available for sale, Fair Value | 201,293 | 196,968 |
U. S. Government Sponsored Agency Securities [Member] | ||
Available-for-sale Investment securities [Abstract] | ||
Amortized Cost | 14,463 | 22,553 |
Unrealized Gains | 98 | 30 |
Unrealized Losses | 0 | (57) |
Available for sale, Fair Value | 14,561 | 22,506 |
Obligations of States and Political Subdivisions [Member] | ||
Available-for-sale Investment securities [Abstract] | ||
Amortized Cost | 10,044 | 10,015 |
Unrealized Gains | 197 | 261 |
Unrealized Losses | (18) | 0 |
Available for sale, Fair Value | $ 10,223 | $ 10,276 |
SECURITIES, By Contractual Matu
SECURITIES, By Contractual Maturity (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Amortized cost of available-for-sale securities by contractual maturity [Abstract] | |||
Due in one year or less | $ 3,472 | ||
Due after one year through five years | 17,732 | ||
Due after five years through ten years | 3,054 | ||
Due after ten years | 249 | ||
Mortgage-backed securities of government sponsored agencies | 199,582 | ||
Available for sale, Amortized Cost | 224,089 | ||
Fair value of available-for-sale securities by contractual maturity [Abstract] | |||
Due in one year or less | 3,489 | ||
Due after one year through five years | 17,952 | ||
Due after five years through ten years | 3,093 | ||
Due after ten years | 250 | ||
Mortgage backed securities of government sponsored agencies | 201,293 | ||
Available for sale, Fair Value | 226,077 | $ 229,750 | |
Proceeds from the sale of securities | $ 0 | $ 0 |
SECURITIES, With Unrealized Los
SECURITIES, With Unrealized Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 Months, Fair Value | $ 38,843 | $ 15,165 |
12 Months or More, Fair Value | 19,292 | 26,471 |
Total Fair Value | 58,135 | 41,636 |
Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 Months, Unrealized Loss | (508) | (109) |
12 Months or More, Unrealized Loss | (613) | (859) |
Total Unrealized Loss | (1,121) | (968) |
U. S. Government Sponsored Agency Securities [Member] | ||
Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 Months, Fair Value | 9,971 | |
12 Months or More, Fair Value | 0 | |
Total Fair Value | 9,971 | |
Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 Months, Unrealized Loss | (57) | |
12 Months or More, Unrealized Loss | 0 | |
Total Unrealized Loss | (57) | |
U. S. Sponsored Agency MBS - Residential [Member] | ||
Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 Months, Fair Value | 30,728 | |
12 Months or More, Fair Value | 0 | |
Total Fair Value | 30,728 | |
Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 Months, Unrealized Loss | (399) | |
12 Months or More, Unrealized Loss | 0 | |
Total Unrealized Loss | (399) | |
U. S. Government Sponsored Agency CMO's - Residential [Member] | ||
Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 Months, Fair Value | 7,204 | 5,194 |
12 Months or More, Fair Value | 19,292 | 26,471 |
Total Fair Value | 26,496 | 31,665 |
Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 Months, Unrealized Loss | (91) | (52) |
12 Months or More, Unrealized Loss | (613) | (859) |
Total Unrealized Loss | (704) | $ (911) |
Obligations of States and Political Subdivisions [Member] | ||
Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 Months, Fair Value | 911 | |
12 Months or More, Fair Value | 0 | |
Total Fair Value | 911 | |
Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 Months, Unrealized Loss | (18) | |
12 Months or More, Unrealized Loss | 0 | |
Total Unrealized Loss | $ (18) |
LOANS, Major Classifications of
LOANS, Major Classifications of Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 883,873 | $ 879,711 |
Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 282,923 | 278,212 |
Multifamily Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 37,112 | 30,310 |
Owner Occupied Commercial Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 122,879 | 120,861 |
Non Owner Occupied Commercial Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 217,881 | 230,750 |
Commercial and Industrial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 76,193 | 85,943 |
Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 31,561 | 32,745 |
All Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 115,324 | $ 100,890 |
LOANS, Activity in The Allowanc
LOANS, Activity in The Allowance For Loan Losses by Portfolio Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Activity in the allowance for loan losses by portfolio segment [Roll Forward] | ||||
Balance, beginning of period | $ 10,170 | $ 10,344 | $ 10,347 | $ 11,027 |
Provision (credit) for loan losses | (146) | (79) | (77) | (389) |
Loans charged-off | 143 | 477 | 493 | 923 |
Recoveries | 813 | 89 | 917 | 162 |
Balance, end of period | 10,694 | 9,877 | 10,694 | 9,877 |
Residential Real Estate [Member] | ||||
Activity in the allowance for loan losses by portfolio segment [Roll Forward] | ||||
Balance, beginning of period | 2,196 | 2,250 | 2,093 | 2,694 |
Provision (credit) for loan losses | 218 | 36 | 372 | (391) |
Loans charged-off | 4 | 152 | 78 | 171 |
Recoveries | 56 | 6 | 79 | 8 |
Balance, end of period | 2,466 | 2,140 | 2,466 | 2,140 |
Multifamily Real Estate [Member] | ||||
Activity in the allowance for loan losses by portfolio segment [Roll Forward] | ||||
Balance, beginning of period | 287 | 297 | 304 | 417 |
Provision (credit) for loan losses | 225 | 14 | 208 | (106) |
Loans charged-off | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Balance, end of period | 512 | 311 | 512 | 311 |
Owner Occupied Commercial Real Estate [Member] | ||||
Activity in the allowance for loan losses by portfolio segment [Roll Forward] | ||||
Balance, beginning of period | 1,489 | 1,477 | 1,501 | 1,407 |
Provision (credit) for loan losses | (13) | (32) | (24) | 39 |
Loans charged-off | 0 | 81 | 2 | 82 |
Recoveries | 0 | 0 | 1 | 0 |
Balance, end of period | 1,476 | 1,364 | 1,476 | 1,364 |
Non Owner Occupied Commercial Real Estate [Member] | ||||
Activity in the allowance for loan losses by portfolio segment [Roll Forward] | ||||
Balance, beginning of period | 2,324 | 2,385 | 2,316 | 2,037 |
Provision (credit) for loan losses | (651) | (92) | (643) | 556 |
Loans charged-off | 0 | 23 | 0 | 323 |
Recoveries | 659 | 0 | 659 | 0 |
Balance, end of period | 2,332 | 2,270 | 2,332 | 2,270 |
Commercial and Industrial [Member] | ||||
Activity in the allowance for loan losses by portfolio segment [Roll Forward] | ||||
Balance, beginning of period | 1,450 | 1,527 | 1,444 | 2,184 |
Provision (credit) for loan losses | (305) | (20) | (140) | (616) |
Loans charged-off | 8 | 21 | 169 | 84 |
Recoveries | 2 | 3 | 4 | 5 |
Balance, end of period | 1,139 | 1,489 | 1,139 | 1,489 |
Consumer [Member] | ||||
Activity in the allowance for loan losses by portfolio segment [Roll Forward] | ||||
Balance, beginning of period | 241 | 220 | 243 | 297 |
Provision (credit) for loan losses | 87 | 37 | 105 | (33) |
Loans charged-off | 78 | 33 | 132 | 59 |
Recoveries | 24 | 8 | 58 | 27 |
Balance, end of period | 274 | 232 | 274 | 232 |
All Other [Member] | ||||
Activity in the allowance for loan losses by portfolio segment [Roll Forward] | ||||
Balance, beginning of period | 2,183 | 2,188 | 2,446 | 1,991 |
Provision (credit) for loan losses | 293 | (22) | 45 | 162 |
Loans charged-off | 53 | 167 | 112 | 204 |
Recoveries | 72 | 72 | 116 | 122 |
Balance, end of period | $ 2,495 | $ 2,071 | $ 2,495 | $ 2,071 |
LOANS, Purchased Loans (Details
LOANS, Purchased Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Purchased loans [Abstract] | ||||
Loans and leases receivable purchased with deteriorated credit quality | $ 11,489 | $ 11,489 | $ 11,587 | |
Contractual principal balance | 21,159 | 21,159 | 21,250 | |
Carrying amount, net of allowance | 10,463 | 10,463 | 10,639 | |
Increase in allowance for loan losses related to purchased loans | 0 | $ 0 | ||
Accretable Yield [Roll Forward] | ||||
Beginning Balance | 204 | 217 | ||
New loans purchased | 0 | 0 | ||
Accretion of income | (10) | (6) | ||
Reclassifications from non-accretable difference | 0 | 0 | ||
Disposals | 0 | 0 | ||
Ending Balance | 194 | 194 | $ 211 | |
Multifamily Real Estate [Member] | ||||
Purchased loans [Abstract] | ||||
Loans and leases receivable purchased with deteriorated credit quality | 460 | 460 | 497 | |
Owner Occupied Commercial Real Estate [Member] | ||||
Purchased loans [Abstract] | ||||
Loans and leases receivable purchased with deteriorated credit quality | 131 | 131 | 131 | |
Non Owner Occupied Commercial Real Estate [Member] | ||||
Purchased loans [Abstract] | ||||
Loans and leases receivable purchased with deteriorated credit quality | 5,623 | 5,623 | 5,695 | |
Commercial and Industrial [Member] | ||||
Purchased loans [Abstract] | ||||
Loans and leases receivable purchased with deteriorated credit quality | 126 | 126 | 136 | |
All Other [Member] | ||||
Purchased loans [Abstract] | ||||
Loans and leases receivable purchased with deteriorated credit quality | $ 5,149 | $ 5,149 | $ 5,128 |
LOANS, Past Due And Non-perform
LOANS, Past Due And Non-performing Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Past due and non-performing loans [Abstract] | ||
Principal Owed on Non-accrual Loans | $ 21,115 | $ 22,767 |
Recorded Investment in Non-accrual Loans | 10,982 | 12,712 |
Loans Past Due Over 90 Days, still accruing | 2,289 | 1,266 |
Residential Real Estate [Member] | ||
Past due and non-performing loans [Abstract] | ||
Principal Owed on Non-accrual Loans | 2,507 | 1,996 |
Recorded Investment in Non-accrual Loans | 2,283 | 1,768 |
Loans Past Due Over 90 Days, still accruing | 378 | 668 |
Multifamily Real Estate [Member] | ||
Past due and non-performing loans [Abstract] | ||
Principal Owed on Non-accrual Loans | 1,532 | 1,803 |
Recorded Investment in Non-accrual Loans | 539 | 1,033 |
Loans Past Due Over 90 Days, still accruing | 0 | 564 |
Owner Occupied Commercial Real Estate [Member] | ||
Past due and non-performing loans [Abstract] | ||
Principal Owed on Non-accrual Loans | 807 | 2,115 |
Recorded Investment in Non-accrual Loans | 737 | 1,928 |
Loans Past Due Over 90 Days, still accruing | 8 | 0 |
Non Owner Occupied Commercial Real Estate [Member] | ||
Past due and non-performing loans [Abstract] | ||
Principal Owed on Non-accrual Loans | 1,960 | 2,020 |
Recorded Investment in Non-accrual Loans | 1,689 | 1,819 |
Loans Past Due Over 90 Days, still accruing | 1,820 | 26 |
Commercial and Industrial [Member] | ||
Past due and non-performing loans [Abstract] | ||
Principal Owed on Non-accrual Loans | 1,576 | 2,012 |
Recorded Investment in Non-accrual Loans | 471 | 806 |
Loans Past Due Over 90 Days, still accruing | 83 | 8 |
Consumer [Member] | ||
Past due and non-performing loans [Abstract] | ||
Principal Owed on Non-accrual Loans | 98 | 213 |
Recorded Investment in Non-accrual Loans | 80 | 185 |
Loans Past Due Over 90 Days, still accruing | 0 | 0 |
All Other [Member] | ||
Past due and non-performing loans [Abstract] | ||
Principal Owed on Non-accrual Loans | 12,635 | 12,608 |
Recorded Investment in Non-accrual Loans | 5,183 | 5,173 |
Loans Past Due Over 90 Days, still accruing | $ 0 | $ 0 |
LOANS, Past Due Aging Analysis
LOANS, Past Due Aging Analysis (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Aging of recorded investment in past due loans [Abstract] | ||
Total Loans | $ 883,873 | $ 879,711 |
30-89 Days Past Due | 24,070 | 10,861 |
Greater than 90 days past due | 11,307 | 11,812 |
Total Past Due | 35,377 | 22,673 |
Loans Not Past Due | 848,496 | 857,038 |
Residential Real Estate [Member] | ||
Aging of recorded investment in past due loans [Abstract] | ||
Total Loans | 282,923 | 278,212 |
30-89 Days Past Due | 5,862 | 5,810 |
Greater than 90 days past due | 1,658 | 1,706 |
Total Past Due | 7,520 | 7,516 |
Loans Not Past Due | 275,403 | 270,696 |
Multifamily Real Estate [Member] | ||
Aging of recorded investment in past due loans [Abstract] | ||
Total Loans | 37,112 | 30,310 |
30-89 Days Past Due | 460 | 177 |
Greater than 90 days past due | 79 | 1,100 |
Total Past Due | 539 | 1,277 |
Loans Not Past Due | 36,573 | 29,033 |
Owner Occupied Commercial Real Estate [Member] | ||
Aging of recorded investment in past due loans [Abstract] | ||
Total Loans | 122,879 | 120,861 |
30-89 Days Past Due | 1,769 | 250 |
Greater than 90 days past due | 549 | 1,530 |
Total Past Due | 2,318 | 1,780 |
Loans Not Past Due | 120,561 | 119,081 |
Non Owner Occupied Commercial Real Estate [Member] | ||
Aging of recorded investment in past due loans [Abstract] | ||
Total Loans | 217,881 | 230,750 |
30-89 Days Past Due | 125 | 2,173 |
Greater than 90 days past due | 3,509 | 1,670 |
Total Past Due | 3,634 | 3,843 |
Loans Not Past Due | 214,247 | 226,907 |
Commercial and Industrial [Member] | ||
Aging of recorded investment in past due loans [Abstract] | ||
Total Loans | 76,193 | 85,943 |
30-89 Days Past Due | 1,737 | 1,720 |
Greater than 90 days past due | 348 | 608 |
Total Past Due | 2,085 | 2,328 |
Loans Not Past Due | 74,108 | 83,615 |
Consumer [Member] | ||
Aging of recorded investment in past due loans [Abstract] | ||
Total Loans | 31,561 | 32,745 |
30-89 Days Past Due | 526 | 497 |
Greater than 90 days past due | 15 | 71 |
Total Past Due | 541 | 568 |
Loans Not Past Due | 31,020 | 32,177 |
All Other [Member] | ||
Aging of recorded investment in past due loans [Abstract] | ||
Total Loans | 115,324 | 100,890 |
30-89 Days Past Due | 13,591 | 234 |
Greater than 90 days past due | 5,149 | 5,127 |
Total Past Due | 18,740 | 5,361 |
Loans Not Past Due | $ 96,584 | $ 95,529 |
LOANS, Allowance for Loan Losse
LOANS, Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment Based on Impairment Method (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
Allowance for Loan Losses [Abstract] | ||||||
Individually evaluated for impairment, allowance for loan losses | $ 490 | $ 452 | ||||
Collectively evaluated for impairment, allowance for loan losses | 9,178 | 8,947 | ||||
Acquired with deteriorated credit quality, allowance for loan losses | 1,026 | 948 | ||||
Total allowance for loan losses | 10,694 | $ 10,170 | 10,347 | $ 9,877 | $ 10,344 | $ 11,027 |
Loans Balances [Abstract] | ||||||
Individually evaluated for impairment, loan balances | 7,567 | 9,569 | ||||
Collectively evaluated for impairment, loan balances | 864,817 | 858,555 | ||||
Acquired with deteriorated credit quality, loan balances | 11,489 | 11,587 | ||||
Total Loans | 883,873 | 879,711 | ||||
Residential Real Estate [Member] | ||||||
Allowance for Loan Losses [Abstract] | ||||||
Individually evaluated for impairment, allowance for loan losses | 183 | 0 | ||||
Collectively evaluated for impairment, allowance for loan losses | 2,283 | 2,093 | ||||
Acquired with deteriorated credit quality, allowance for loan losses | 0 | 0 | ||||
Total allowance for loan losses | 2,466 | 2,196 | 2,093 | 2,140 | 2,250 | 2,694 |
Loans Balances [Abstract] | ||||||
Individually evaluated for impairment, loan balances | 571 | 137 | ||||
Collectively evaluated for impairment, loan balances | 282,352 | 278,075 | ||||
Acquired with deteriorated credit quality, loan balances | 0 | 0 | ||||
Total Loans | 282,923 | 278,212 | ||||
Multifamily Real Estate [Member] | ||||||
Allowance for Loan Losses [Abstract] | ||||||
Individually evaluated for impairment, allowance for loan losses | 0 | 0 | ||||
Collectively evaluated for impairment, allowance for loan losses | 512 | 304 | ||||
Acquired with deteriorated credit quality, allowance for loan losses | 0 | 0 | ||||
Total allowance for loan losses | 512 | 287 | 304 | 311 | 297 | 417 |
Loans Balances [Abstract] | ||||||
Individually evaluated for impairment, loan balances | 79 | 536 | ||||
Collectively evaluated for impairment, loan balances | 36,573 | 29,277 | ||||
Acquired with deteriorated credit quality, loan balances | 460 | 497 | ||||
Total Loans | 37,112 | 30,310 | ||||
Owner Occupied Commercial Real Estate [Member] | ||||||
Allowance for Loan Losses [Abstract] | ||||||
Individually evaluated for impairment, allowance for loan losses | 48 | 107 | ||||
Collectively evaluated for impairment, allowance for loan losses | 1,428 | 1,394 | ||||
Acquired with deteriorated credit quality, allowance for loan losses | 0 | 0 | ||||
Total allowance for loan losses | 1,476 | 1,489 | 1,501 | 1,364 | 1,477 | 1,407 |
Loans Balances [Abstract] | ||||||
Individually evaluated for impairment, loan balances | 943 | 2,011 | ||||
Collectively evaluated for impairment, loan balances | 121,805 | 118,719 | ||||
Acquired with deteriorated credit quality, loan balances | 131 | 131 | ||||
Total Loans | 122,879 | 120,861 | ||||
Non Owner Occupied Commercial Real Estate [Member] | ||||||
Allowance for Loan Losses [Abstract] | ||||||
Individually evaluated for impairment, allowance for loan losses | 29 | 54 | ||||
Collectively evaluated for impairment, allowance for loan losses | 2,303 | 2,262 | ||||
Acquired with deteriorated credit quality, allowance for loan losses | 0 | 0 | ||||
Total allowance for loan losses | 2,332 | 2,324 | 2,316 | 2,270 | 2,385 | 2,037 |
Loans Balances [Abstract] | ||||||
Individually evaluated for impairment, loan balances | 4,396 | 4,874 | ||||
Collectively evaluated for impairment, loan balances | 207,862 | 220,181 | ||||
Acquired with deteriorated credit quality, loan balances | 5,623 | 5,695 | ||||
Total Loans | 217,881 | 230,750 | ||||
Commercial and Industrial [Member] | ||||||
Allowance for Loan Losses [Abstract] | ||||||
Individually evaluated for impairment, allowance for loan losses | 230 | 291 | ||||
Collectively evaluated for impairment, allowance for loan losses | 783 | 1,105 | ||||
Acquired with deteriorated credit quality, allowance for loan losses | 126 | 48 | ||||
Total allowance for loan losses | 1,139 | 1,450 | 1,444 | 1,489 | 1,527 | 2,184 |
Loans Balances [Abstract] | ||||||
Individually evaluated for impairment, loan balances | 666 | 902 | ||||
Collectively evaluated for impairment, loan balances | 75,401 | 84,905 | ||||
Acquired with deteriorated credit quality, loan balances | 126 | 136 | ||||
Total Loans | 76,193 | 85,943 | ||||
Consumer [Member] | ||||||
Allowance for Loan Losses [Abstract] | ||||||
Individually evaluated for impairment, allowance for loan losses | 0 | 0 | ||||
Collectively evaluated for impairment, allowance for loan losses | 274 | 243 | ||||
Acquired with deteriorated credit quality, allowance for loan losses | 0 | 0 | ||||
Total allowance for loan losses | 274 | 241 | 243 | 232 | 220 | 297 |
Loans Balances [Abstract] | ||||||
Individually evaluated for impairment, loan balances | 0 | 0 | ||||
Collectively evaluated for impairment, loan balances | 31,561 | 32,745 | ||||
Acquired with deteriorated credit quality, loan balances | 0 | 0 | ||||
Total Loans | 31,561 | 32,745 | ||||
All Other [Member] | ||||||
Allowance for Loan Losses [Abstract] | ||||||
Individually evaluated for impairment, allowance for loan losses | 0 | 0 | ||||
Collectively evaluated for impairment, allowance for loan losses | 1,595 | 1,546 | ||||
Acquired with deteriorated credit quality, allowance for loan losses | 900 | 900 | ||||
Total allowance for loan losses | 2,495 | $ 2,183 | 2,446 | $ 2,071 | $ 2,188 | $ 1,991 |
Loans Balances [Abstract] | ||||||
Individually evaluated for impairment, loan balances | 912 | 1,109 | ||||
Collectively evaluated for impairment, loan balances | 109,263 | 94,653 | ||||
Acquired with deteriorated credit quality, loan balances | 5,149 | 5,128 | ||||
Total Loans | $ 115,324 | $ 100,890 |
LOANS, Individually Evaluated F
LOANS, Individually Evaluated For Impairment (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
LOANS [Abstract] | ||
Purchased financing receivable individually evaluated for impairment | $ 5,658 | $ 5,673 |
Loans individually evaluated for impairment [Abstract] | ||
Unpaid Principal Balance | 23,177 | 24,803 |
Recorded Investment | 13,302 | 15,242 |
Allowance for Loan Losses Allocated | 1,516 | 1,400 |
With no related allowance recorded: [Member] | ||
Loans individually evaluated for impairment [Abstract] | ||
Unpaid Principal Balance | 8,716 | 9,958 |
Recorded Investment | 6,520 | 8,042 |
Allowance for Loan Losses Allocated | 0 | 0 |
With an allowance recorded: [Member] | ||
Loans individually evaluated for impairment [Abstract] | ||
Unpaid Principal Balance | 14,461 | 14,845 |
Recorded Investment | 6,782 | 7,200 |
Allowance for Loan Losses Allocated | 1,516 | 1,400 |
Residential Real Estate [Member] | With no related allowance recorded: [Member] | ||
Loans individually evaluated for impairment [Abstract] | ||
Unpaid Principal Balance | 363 | 179 |
Recorded Investment | 325 | 137 |
Allowance for Loan Losses Allocated | 0 | 0 |
Residential Real Estate [Member] | With an allowance recorded: [Member] | ||
Loans individually evaluated for impairment [Abstract] | ||
Unpaid Principal Balance | 252 | |
Recorded Investment | 246 | |
Allowance for Loan Losses Allocated | 183 | |
Multifamily real estate [Member] | With no related allowance recorded: [Member] | ||
Loans individually evaluated for impairment [Abstract] | ||
Unpaid Principal Balance | 1,532 | 1,803 |
Recorded Investment | 539 | 1,033 |
Allowance for Loan Losses Allocated | 0 | 0 |
Owner Occupied Commercial Real Estate [Member] | With no related allowance recorded: [Member] | ||
Loans individually evaluated for impairment [Abstract] | ||
Unpaid Principal Balance | 612 | 1,404 |
Recorded Investment | 549 | 1,304 |
Allowance for Loan Losses Allocated | 0 | 0 |
Owner Occupied Commercial Real Estate [Member] | With an allowance recorded: [Member] | ||
Loans individually evaluated for impairment [Abstract] | ||
Unpaid Principal Balance | 394 | 707 |
Recorded Investment | 394 | 707 |
Allowance for Loan Losses Allocated | 48 | 107 |
Non Owner Occupied Commercial Real Estate [Member] | With no related allowance recorded: [Member] | ||
Loans individually evaluated for impairment [Abstract] | ||
Unpaid Principal Balance | 4,049 | 4,398 |
Recorded Investment | 3,778 | 4,190 |
Allowance for Loan Losses Allocated | 0 | 0 |
Non Owner Occupied Commercial Real Estate [Member] | With an allowance recorded: [Member] | ||
Loans individually evaluated for impairment [Abstract] | ||
Unpaid Principal Balance | 618 | 684 |
Recorded Investment | 618 | 684 |
Allowance for Loan Losses Allocated | 29 | 54 |
Commercial and Industrial [Member] | With no related allowance recorded: [Member] | ||
Loans individually evaluated for impairment [Abstract] | ||
Unpaid Principal Balance | 1,193 | 1,030 |
Recorded Investment | 417 | 270 |
Allowance for Loan Losses Allocated | 0 | 0 |
Commercial and Industrial [Member] | With an allowance recorded: [Member] | ||
Loans individually evaluated for impairment [Abstract] | ||
Unpaid Principal Balance | 651 | 929 |
Recorded Investment | 375 | 680 |
Allowance for Loan Losses Allocated | 356 | 339 |
All Other [Member] | With no related allowance recorded: [Member] | ||
Loans individually evaluated for impairment [Abstract] | ||
Unpaid Principal Balance | 967 | 1,144 |
Recorded Investment | 912 | 1,108 |
Allowance for Loan Losses Allocated | 0 | 0 |
All Other [Member] | With an allowance recorded: [Member] | ||
Loans individually evaluated for impairment [Abstract] | ||
Unpaid Principal Balance | 12,546 | 12,525 |
Recorded Investment | 5,149 | 5,129 |
Allowance for Loan Losses Allocated | $ 900 | $ 900 |
LOANS, Average Balance of Loans
LOANS, Average Balance of Loans Individually Evaluated For Impairment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Financing receivable average balance individually evaluated for impairment [Line Items] | ||||
Average Recorded Investment | $ 14,401 | $ 15,586 | $ 14,681 | $ 18,075 |
Interest Income Recognized | 94 | 107 | 172 | 2,067 |
Cash Basis Interest Recognized | 78 | 103 | 153 | 2,059 |
Residential Real Estate [Member] | ||||
Financing receivable average balance individually evaluated for impairment [Line Items] | ||||
Average Recorded Investment | 352 | 2,318 | 281 | 2,536 |
Interest Income Recognized | 1 | 27 | 2 | 61 |
Cash Basis Interest Recognized | 1 | 27 | 2 | 61 |
Multifamily Real Estate [Member] | ||||
Financing receivable average balance individually evaluated for impairment [Line Items] | ||||
Average Recorded Investment | 1,550 | 2,353 | 1,377 | 2,586 |
Interest Income Recognized | 14 | 19 | 14 | 727 |
Cash Basis Interest Recognized | 14 | 19 | 14 | 727 |
Owner Occupied Commercial Real Estate [Member] | ||||
Financing receivable average balance individually evaluated for impairment [Line Items] | ||||
Average Recorded Investment | 922 | 1,983 | 1,286 | 2,155 |
Interest Income Recognized | 9 | 14 | 18 | 29 |
Cash Basis Interest Recognized | 5 | 10 | 13 | 21 |
Non Owner Occupied Commercial Real Estate [Member] | ||||
Financing receivable average balance individually evaluated for impairment [Line Items] | ||||
Average Recorded Investment | 4,561 | 214 | 4,665 | 800 |
Interest Income Recognized | 46 | 0 | 94 | 627 |
Cash Basis Interest Recognized | 34 | 0 | 82 | 627 |
Commercial and Industrial [Member] | ||||
Financing receivable average balance individually evaluated for impairment [Line Items] | ||||
Average Recorded Investment | 908 | 1,265 | 922 | 2,395 |
Interest Income Recognized | 10 | 9 | 14 | 542 |
Cash Basis Interest Recognized | 10 | 9 | 14 | 542 |
All Other [Member] | ||||
Financing receivable average balance individually evaluated for impairment [Line Items] | ||||
Average Recorded Investment | 6,108 | 7,453 | 6,150 | 7,603 |
Interest Income Recognized | 14 | 38 | 30 | 81 |
Cash Basis Interest Recognized | $ 14 | $ 38 | $ 28 | $ 81 |
LOANS, Troubled Debt Restructur
LOANS, Troubled Debt Restructurings (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Financing Receivable, Modifications [Line Items] | ||
TDR's on Non-accrual | $ 9 | $ 13 |
Other TDR's | 1,948 | 2,489 |
Total TDR's | 1,957 | 2,502 |
Residential Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR's on Non-accrual | 9 | 13 |
Other TDR's | 181 | 191 |
Total TDR's | 190 | 204 |
Non Owner Occupied Commercial Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR's on Non-accrual | 0 | 0 |
Other TDR's | 464 | 474 |
Total TDR's | 464 | 474 |
Commercial and Industrial [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR's on Non-accrual | 0 | 0 |
Other TDR's | 417 | 761 |
Total TDR's | 417 | 761 |
All Other [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR's on Non-accrual | 0 | 0 |
Other TDR's | 886 | 1,063 |
Total TDR's | $ 886 | $ 1,063 |
LOANS, TDR Modified During Peri
LOANS, TDR Modified During Period (Details) - 6 months ended Jun. 30, 2015 $ in Thousands | USD ($)Loan |
Troubled Debt Restructuring Activity [Line Items] | |
Number of Loans | Loan | 1 |
Pre-Modification Outstanding Recorded Investment | $ 1,543 |
Post-Modification Outstanding Recorded Investment | $ 1,543 |
Multifamily real estate [Member] | |
Troubled Debt Restructuring Activity [Line Items] | |
Number of Loans | Loan | 1 |
Pre-Modification Outstanding Recorded Investment | $ 1,543 |
Post-Modification Outstanding Recorded Investment | $ 1,543 |
LOANS, Risk Category of Loans b
LOANS, Risk Category of Loans by Class of Loans, Credit Quality Indicators (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Accounts, notes, loans and financing receivable [Line Items] | ||
Loans | $ 883,873 | $ 879,711 |
Residential Real Estate [Member] | ||
Accounts, notes, loans and financing receivable [Line Items] | ||
Loans | 282,923 | 278,212 |
Multifamily Real Estate [Member] | ||
Accounts, notes, loans and financing receivable [Line Items] | ||
Loans | 37,112 | 30,310 |
Owner Occupied Commercial Real Estate [Member] | ||
Accounts, notes, loans and financing receivable [Line Items] | ||
Loans | 122,879 | 120,861 |
Non Owner Occupied Commercial Real Estate [Member] | ||
Accounts, notes, loans and financing receivable [Line Items] | ||
Loans | 217,881 | 230,750 |
Commercial and Industrial [Member] | ||
Accounts, notes, loans and financing receivable [Line Items] | ||
Loans | 76,193 | 85,943 |
Consumer [Member] | ||
Accounts, notes, loans and financing receivable [Line Items] | ||
Loans | 31,561 | 32,745 |
All Other [Member] | ||
Accounts, notes, loans and financing receivable [Line Items] | ||
Loans | 115,324 | 100,890 |
Pass [Member] | ||
Accounts, notes, loans and financing receivable [Line Items] | ||
Loans | 827,629 | 827,711 |
Pass [Member] | Residential Real Estate [Member] | ||
Accounts, notes, loans and financing receivable [Line Items] | ||
Loans | 270,610 | 265,285 |
Pass [Member] | Multifamily Real Estate [Member] | ||
Accounts, notes, loans and financing receivable [Line Items] | ||
Loans | 32,287 | 27,260 |
Pass [Member] | Owner Occupied Commercial Real Estate [Member] | ||
Accounts, notes, loans and financing receivable [Line Items] | ||
Loans | 115,111 | 111,024 |
Pass [Member] | Non Owner Occupied Commercial Real Estate [Member] | ||
Accounts, notes, loans and financing receivable [Line Items] | ||
Loans | 209,695 | 218,971 |
Pass [Member] | Commercial and Industrial [Member] | ||
Accounts, notes, loans and financing receivable [Line Items] | ||
Loans | 74,396 | 83,634 |
Pass [Member] | Consumer [Member] | ||
Accounts, notes, loans and financing receivable [Line Items] | ||
Loans | 31,175 | 32,364 |
Pass [Member] | All Other [Member] | ||
Accounts, notes, loans and financing receivable [Line Items] | ||
Loans | 94,355 | 89,173 |
Special Mention [Member] | ||
Accounts, notes, loans and financing receivable [Line Items] | ||
Loans | 30,894 | 29,613 |
Special Mention [Member] | Residential Real Estate [Member] | ||
Accounts, notes, loans and financing receivable [Line Items] | ||
Loans | 5,125 | 8,292 |
Special Mention [Member] | Multifamily Real Estate [Member] | ||
Accounts, notes, loans and financing receivable [Line Items] | ||
Loans | 4,286 | 2,017 |
Special Mention [Member] | Owner Occupied Commercial Real Estate [Member] | ||
Accounts, notes, loans and financing receivable [Line Items] | ||
Loans | 5,326 | 6,505 |
Special Mention [Member] | Non Owner Occupied Commercial Real Estate [Member] | ||
Accounts, notes, loans and financing receivable [Line Items] | ||
Loans | 888 | 6,652 |
Special Mention [Member] | Commercial and Industrial [Member] | ||
Accounts, notes, loans and financing receivable [Line Items] | ||
Loans | 714 | 1,007 |
Special Mention [Member] | Consumer [Member] | ||
Accounts, notes, loans and financing receivable [Line Items] | ||
Loans | 245 | 267 |
Special Mention [Member] | All Other [Member] | ||
Accounts, notes, loans and financing receivable [Line Items] | ||
Loans | 14,310 | 4,873 |
Substandard [Member] | ||
Accounts, notes, loans and financing receivable [Line Items] | ||
Loans | 25,292 | 22,347 |
Substandard [Member] | Residential Real Estate [Member] | ||
Accounts, notes, loans and financing receivable [Line Items] | ||
Loans | 7,179 | 4,622 |
Substandard [Member] | Multifamily Real Estate [Member] | ||
Accounts, notes, loans and financing receivable [Line Items] | ||
Loans | 539 | 1,033 |
Substandard [Member] | Owner Occupied Commercial Real Estate [Member] | ||
Accounts, notes, loans and financing receivable [Line Items] | ||
Loans | 2,442 | 3,332 |
Substandard [Member] | Non Owner Occupied Commercial Real Estate [Member] | ||
Accounts, notes, loans and financing receivable [Line Items] | ||
Loans | 7,298 | 5,127 |
Substandard [Member] | Commercial and Industrial [Member] | ||
Accounts, notes, loans and financing receivable [Line Items] | ||
Loans | 1,034 | 1,275 |
Substandard [Member] | Consumer [Member] | ||
Accounts, notes, loans and financing receivable [Line Items] | ||
Loans | 141 | 114 |
Substandard [Member] | All Other [Member] | ||
Accounts, notes, loans and financing receivable [Line Items] | ||
Loans | 6,659 | 6,844 |
Doubtful [Member] | ||
Accounts, notes, loans and financing receivable [Line Items] | ||
Loans | 58 | 40 |
Doubtful [Member] | Residential Real Estate [Member] | ||
Accounts, notes, loans and financing receivable [Line Items] | ||
Loans | 9 | 13 |
Doubtful [Member] | Multifamily Real Estate [Member] | ||
Accounts, notes, loans and financing receivable [Line Items] | ||
Loans | 0 | 0 |
Doubtful [Member] | Owner Occupied Commercial Real Estate [Member] | ||
Accounts, notes, loans and financing receivable [Line Items] | ||
Loans | 0 | 0 |
Doubtful [Member] | Non Owner Occupied Commercial Real Estate [Member] | ||
Accounts, notes, loans and financing receivable [Line Items] | ||
Loans | 0 | 0 |
Doubtful [Member] | Commercial and Industrial [Member] | ||
Accounts, notes, loans and financing receivable [Line Items] | ||
Loans | 49 | 27 |
Doubtful [Member] | Consumer [Member] | ||
Accounts, notes, loans and financing receivable [Line Items] | ||
Loans | 0 | 0 |
Doubtful [Member] | All Other [Member] | ||
Accounts, notes, loans and financing receivable [Line Items] | ||
Loans | $ 0 | $ 0 |
STOCKHOLDERS' EQUITY AND REGU38
STOCKHOLDERS' EQUITY AND REGULATORY MATTERS (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2015 | Dec. 31, 2014 | ||
STOCKHOLDERS' EQUITY AND REGULATORY MATTERS [Abstract] | |||
Number of previous years retained profit taken for dividend calculation | 2 years | ||
Funds available for dividends without prior approval | $ 5.5 | ||
Common Equity Tier I Capital (to Risk-Weighted Assets) (in hundredths) | 12.50% | ||
Common Equity Tier I Capital (to Risk-Weighted Assets), Regulatory Minimum Requirements (in hundredths) | 4.50% | ||
Common Equity Tier I Capital (to Risk-Weighted Assets), To Be Considered Well Capitalized (in hundredths) | 6.50% | ||
Tier I Capital (to Risk-Weighted Assets) (in hundredths) | 12.50% | 13.30% | |
Tier I Capital (to Risk-Weighted Assets), Regulatory Minimum Requirements (in hundredths) | [1] | 6.00% | |
Tier I Capital (to Risk-Weighted Assets), To Be Considered Well Capitalized (in hundredths) | [1] | 8.00% | |
Total Capital (to Risk-Weighted Assets) (in hundredths) | 13.70% | 14.60% | |
Total Capital (to Risk-Weighted Assets), Regulatory Minimum Requirements (in hundredths) | 8.00% | ||
Total Capital (to Risk-Weighted Assets), To Be Considered Well Capitalized (in hundredths) | 10.00% | ||
Tier I Capital (to Average Assets) (in hundredths) | 9.10% | 9.10% | |
Tier I Capital (to Average Assets), Regulatory Minimum Requirements (in hundredths) | 4.00% | ||
Tier I Capital (to Average Assets), To Be Considered Well Capitalized (in hundredths) | 5.00% | ||
[1] | The regulatory requirements presented in the table are effective as of January 1, 2015. At December 31, 2014, the minimum Tier 1 capital to risk-weighted assets ratio was 4.0% and to be considered well capitalized the ratio was required to be at least 6.0% |
PREFERRED STOCK AND COMMON ST39
PREFERRED STOCK AND COMMON STOCK WARRANT (Details) - USD ($) | May. 06, 2015 | Nov. 14, 2014 | Oct. 02, 2009 | Jun. 30, 2015 | Dec. 31, 2014 |
Class of Stock [Line Items] | |||||
Par value of common stock called by warrants (in dollars per share) | $ 0 | $ 0 | |||
Reduction in shareholders' equity and regulatory capital | $ 5,675,000 | ||||
U.S. Treasury [Member] | |||||
Class of Stock [Line Items] | |||||
Payments for purchase of warrants | 5,675,000 | ||||
U.S. Treasury [Member] | Bank of Kentucky [Member] | |||||
Class of Stock [Line Items] | |||||
Purchase of warrant, line of credit | 4,000,000 | ||||
U.S. Treasury [Member] | Cash and Cash Equivalents [Member] | |||||
Class of Stock [Line Items] | |||||
Payments for purchase of warrants | $ 1,675,000 | ||||
Series A Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Preferred stock issued (in shares) | 22,252 | ||||
Preferred stock, par value (in dollars per share) | $ 0 | ||||
Liquidation preference (in dollars per share) | $ 1,000 | ||||
Value of preferred stock issued | $ 22,252,000 | ||||
Preferred stock repurchased (in shares) | 22,252 | ||||
Series A Preferred Stock [Member] | Before November 14, 2014 [Member] | |||||
Class of Stock [Line Items] | |||||
Accrued dividend rate (in hundredths) | 5.00% | ||||
Warrants [Member] | |||||
Class of Stock [Line Items] | |||||
Term of warrant | 10 years | ||||
Numbers of common stock to be purchased with warrants (in shares) | 636,378 | 628,588 | |||
Par value of common stock called by warrants (in dollars per share) | $ 0 | ||||
Exercise price of warrants (in dollars per share) | $ 5.25 | 5.31 | |||
Threshold of quarterly common stock cash dividends paid (in dollars per share) | $ 0.11 |
STOCK COMPENSATION EXPENSE (Det
STOCK COMPENSATION EXPENSE (Details) - USD ($) | Mar. 18, 2015 | Apr. 16, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period, description | three equal annual installments | three equal annual installments | ||||
Stock option vesting periods | 3 years | 3 years | ||||
Grants (in shares) | 47,650 | 46,300 | ||||
Grants (in dollars per share) | $ 14.72 | $ 14.43 | ||||
Compensation expense | $ 121,000 | $ 128,000 | $ 163,000 | $ 170,000 | ||
Unrecognized stock-based compensation expense | $ 98,000 | $ 98,000 | ||||
Unrecognized stock-based compensation, period of recognition | 32 months | |||||
2012 Long Term Incentive Plan [Member] | Robert W. Walker [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Grants (in shares) | 7,000 | 6,000 | ||||
Fair value of stock options granted (in dollars per share) | $ 14.72 | $ 14.20 | ||||
Compensation expense | $ 103,000 | $ 85,000 |
STOCK COMPENSATION EXPENSE, Ass
STOCK COMPENSATION EXPENSE, Assumptions (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Assumptions used in the black-scholes option-pricing model [Abstract] | ||
Risk-free interest rate (in hundredths) | 1.41% | 2.78% |
Expected option life (yrs) | 10 years | 10 years |
Expected stock price volatility (in hundredths) | 17.20% | 31.19% |
Dividend yield (in hundredths) | 3.53% | 3.33% |
Weighted average fair value of options granted (in dollars per share) | $ 1.37 | $ 3.74 |
STOCK COMPENSATION EXPENSE, Sto
STOCK COMPENSATION EXPENSE, Stock Options Activity (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Stock options activity [Roll Forward] | ||
Outstanding at beginning of year (in shares) | 273,942 | 354,281 |
Grants (in shares) | 47,650 | 46,300 |
Exercises (in shares) | (18,450) | (63,297) |
Forfeitures or expired (in shares) | (16,733) | (8,133) |
Outstanding at end of period (in shares) | 286,409 | 329,151 |
Exercisable at end of period (in shares) | 204,675 | 223,898 |
Weighted Average Exercise Price [Abstract] | ||
Outstanding at beginning of year (in dollars per share) | $ 11.06 | $ 9.84 |
Grants (in dollars per share) | 14.72 | 14.43 |
Exercises (in dollars per share) | 10.87 | 8.45 |
Forfeitures or expired (in dollars per share) | 17.10 | 9.27 |
Outstanding at end of period (in dollars per share) | $ 11.51 | $ 10.77 |
Weighted average remaining life of options outstanding | 6 years 2 months 12 days | 6 years 2 months 12 days |
Weighted average fair value of options granted during the year (in dollars per share) | $ 1.37 | $ 3.74 |
STOCK COMPENSATION EXPENSE, Aut
STOCK COMPENSATION EXPENSE, Authorized Stock Options By Exercise Price Range (Details) - Jun. 30, 2015 - USD ($) $ / shares in Units, $ in Thousands | Total |
Share-based Compensation, Shares Granted under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding, Number(in shares) | 286,409 |
Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 11.51 |
Outstanding, Aggregate Intrinsic Value | $ 1,140 |
Currently Exercisable, Number (in shares) | 204,675 |
Currently Exercisable, Weighted Average Remaining Contractual Life | 5 years |
Currently Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 10.47 |
Currently Exercisable, Aggregate Intrinsic Value | $ 1,031 |
$6.50 to $10.00 [Member] | |
Share-based Compensation, Shares Granted under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower range limit (in dollars per share) | $ 6.50 |
Range of Exercise Prices, upper range limit (in dollars per share) | $ 10 |
Outstanding, Number(in shares) | 106,949 |
Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 7.56 |
Outstanding, Aggregate Intrinsic Value | $ 844 |
Currently Exercisable, Number (in shares) | 106,949 |
Currently Exercisable, Weighted Average Remaining Contractual Life | 5 years 10 months 24 days |
Currently Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 7.56 |
Currently Exercisable, Aggregate Intrinsic Value | $ 844 |
$10.01 to $12.50 [Member] | |
Share-based Compensation, Shares Granted under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower range limit (in dollars per share) | $ 10.01 |
Range of Exercise Prices, upper range limit (in dollars per share) | $ 12.50 |
Outstanding, Number(in shares) | 36,000 |
Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 11.39 |
Outstanding, Aggregate Intrinsic Value | $ 146 |
Currently Exercisable, Number (in shares) | 23,374 |
Currently Exercisable, Weighted Average Remaining Contractual Life | 7 years 8 months 12 days |
Currently Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 11.39 |
Currently Exercisable, Aggregate Intrinsic Value | $ 95 |
$12.51 to $15.00 [Member] | |
Share-based Compensation, Shares Granted under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower range limit (in dollars per share) | $ 12.51 |
Range of Exercise Prices, upper range limit (in dollars per share) | $ 15 |
Outstanding, Number(in shares) | 122,960 |
Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 14.23 |
Outstanding, Aggregate Intrinsic Value | $ 150 |
Currently Exercisable, Number (in shares) | 53,852 |
Currently Exercisable, Weighted Average Remaining Contractual Life | 3 years 9 months 18 days |
Currently Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 13.75 |
Currently Exercisable, Aggregate Intrinsic Value | $ 92 |
$15.01 to $17.50 [Member] | |
Share-based Compensation, Shares Granted under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower range limit (in dollars per share) | $ 15.01 |
Range of Exercise Prices, upper range limit (in dollars per share) | $ 17.50 |
Outstanding, Number(in shares) | 20,500 |
Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 16 |
Outstanding, Aggregate Intrinsic Value | $ 0 |
Currently Exercisable, Number (in shares) | 20,500 |
Currently Exercisable, Weighted Average Remaining Contractual Life | 7 months 6 days |
Currently Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 16 |
Currently Exercisable, Aggregate Intrinsic Value | $ 0 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Basic earnings per share [Abstract] | ||||
Income available to common stockholders | $ 3,127 | $ 2,935 | $ 6,269 | $ 6,440 |
Weighted average common shares outstanding (in shares) | 8,157,785 | 8,079,629 | 8,150,596 | 8,061,522 |
Earnings per share (in dollars per share) | $ 0.38 | $ 0.36 | $ 0.77 | $ 0.80 |
Diluted earnings per share [Abstract] | ||||
Income available to common stockholders | $ 3,127 | $ 2,935 | $ 6,269 | $ 6,440 |
Weighted average common shares outstanding (in shares) | 8,157,785 | 8,079,629 | 8,150,596 | 8,061,522 |
Add dilutive effects of potential additional common stock (in shares) | 230,145 | 502,839 | 358,336 | 504,519 |
Weighted average common and dilutive potential common shares outstanding (in shares) | 8,387,930 | 8,582,468 | 8,508,932 | 8,566,041 |
Earnings per share assuming dilution (in dollars per share) | $ 0.37 | $ 0.34 | $ 0.74 | $ 0.75 |
Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Securities not considered in computing diluted earnings per share (in shares) | 23,500 | 23,500 | 23,500 | 23,500 |
FAIR VALUE, Carrying Amount and
FAIR VALUE, Carrying Amount and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Financial assets [Abstract] | ||
Securities available for sale | $ 226,077 | $ 229,750 |
Level 1 [Member] | ||
Financial assets [Abstract] | ||
Cash and due from banks | 68,877 | 70,398 |
Federal funds sold | 3,265 | 4,986 |
Securities available for sale | 0 | 0 |
Loans held for sale | 0 | |
Loans, net | 0 | 0 |
Interest receivable | 0 | 0 |
Financial liabilities [Abstract] | ||
Deposits | (718,462) | (711,118) |
Securities sold under agreements to repurchase | 0 | 0 |
Other borrowed funds | 0 | 0 |
Interest payable | (6) | (6) |
Level 2 [Member] | ||
Financial assets [Abstract] | ||
Cash and due from banks | 0 | 0 |
Federal funds sold | 0 | 0 |
Securities available for sale | 226,077 | 229,610 |
Loans held for sale | 0 | |
Loans, net | 0 | 0 |
Interest receivable | 584 | 625 |
Financial liabilities [Abstract] | ||
Deposits | (350,961) | (363,481) |
Securities sold under agreements to repurchase | (15,307) | (15,580) |
Other borrowed funds | (12,539) | (11,760) |
Interest payable | (381) | (428) |
Level 3 [Member] | ||
Financial assets [Abstract] | ||
Cash and due from banks | 0 | 0 |
Federal funds sold | 0 | 0 |
Securities available for sale | 0 | 140 |
Loans held for sale | 226 | |
Loans, net | 874,822 | 870,273 |
Interest receivable | 2,687 | 2,594 |
Financial liabilities [Abstract] | ||
Deposits | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
Other borrowed funds | 0 | 0 |
Interest payable | 0 | 0 |
Carrying Amount [Member] | ||
Financial assets [Abstract] | ||
Cash and due from banks | 68,877 | 70,398 |
Federal funds sold | 3,265 | 4,986 |
Securities available for sale | 226,077 | 229,750 |
Loans held for sale | 226 | |
Loans, net | 873,179 | 869,364 |
Federal Home Loan Bank stock | 3,072 | 2,996 |
Interest receivable | 3,271 | 3,219 |
Financial liabilities [Abstract] | ||
Deposits | (1,070,531) | (1,075,243) |
Securities sold under agreements to repurchase | (15,307) | (15,580) |
Other borrowed funds | (12,507) | (11,722) |
Interest payable | (387) | (434) |
Fair Value [Member] | ||
Financial assets [Abstract] | ||
Cash and due from banks | 68,877 | 70,398 |
Federal funds sold | 3,265 | 4,986 |
Securities available for sale | 226,077 | 229,750 |
Loans held for sale | 226 | |
Loans, net | 874,822 | 870,273 |
Interest receivable | 3,271 | 3,219 |
Financial liabilities [Abstract] | ||
Deposits | (1,069,423) | (1,074,599) |
Securities sold under agreements to repurchase | (15,307) | (15,580) |
Other borrowed funds | (12,539) | (11,760) |
Interest payable | $ (387) | $ (434) |
FAIR VALUE, Assets and Liabilit
FAIR VALUE, Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Securities available for sale | ||
Available for sale, Fair Value | $ 226,077 | $ 229,750 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Securities available for sale | ||
Available for sale, Fair Value | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Securities available for sale | ||
Available for sale, Fair Value | 226,077 | 229,610 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Securities available for sale | ||
Available for sale, Fair Value | 0 | 140 |
Carrying Value [Member] | ||
Securities available for sale | ||
Available for sale, Fair Value | 226,077 | 229,750 |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Securities available for sale | ||
U. S. agency MBS - residential | 0 | 0 |
U. S. agency CMO's - residential | 0 | 0 |
Total mortgage-backed securities of government sponsored agencies | 0 | 0 |
U. S. government sponsored agency securities | 0 | 0 |
Obligations of states and political subdivisions | 0 | 0 |
Available for sale, Fair Value | 0 | 0 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Securities available for sale | ||
U. S. agency MBS - residential | 76,416 | 52,780 |
U. S. agency CMO's - residential | 124,877 | 144,188 |
Total mortgage-backed securities of government sponsored agencies | 201,293 | 196,968 |
U. S. government sponsored agency securities | 14,561 | 22,506 |
Obligations of states and political subdivisions | 10,223 | 10,136 |
Available for sale, Fair Value | 226,077 | 229,610 |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Securities available for sale | ||
U. S. agency MBS - residential | 0 | 0 |
U. S. agency CMO's - residential | 0 | 0 |
Total mortgage-backed securities of government sponsored agencies | 0 | 0 |
U. S. government sponsored agency securities | 0 | 0 |
Obligations of states and political subdivisions | 0 | 140 |
Available for sale, Fair Value | 0 | 140 |
Recurring [Member] | Carrying Value [Member] | ||
Securities available for sale | ||
U. S. agency MBS - residential | 76,416 | 52,780 |
U. S. agency CMO's - residential | 124,877 | 144,188 |
Total mortgage-backed securities of government sponsored agencies | 201,293 | 196,968 |
U. S. government sponsored agency securities | 14,561 | 22,506 |
Obligations of states and political subdivisions | 10,223 | 10,276 |
Available for sale, Fair Value | $ 226,077 | $ 229,750 |
FAIR VALUE, Unobservable Input
FAIR VALUE, Unobservable Input Reconciliation (Details) - Securities Available-for-sale [Member] $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs [Roll Forward] | |
Balance of recurring Level 3 assets at beginning of period | $ 140 |
Total Gains or Losses (Realized/Unrealized) [Abstract] | |
Included in earnings - realized | 0 |
Included in earnings, unrealized | 0 |
Included in other comprehensive income | 0 |
Purchases, sales, issues and settlements, net | (140) |
Transfers in and / or out of Level 3 | 0 |
Balance of recurring Level 3 assets at period-end | $ 0 |
FAIR VALUE, Assets and Liabil48
FAIR VALUE, Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Impaired Loans Additional Disclosure [Abstract] | |||||
Recorded investment in impaired loans carried at fair value | $ 6,782 | $ 6,782 | $ 7,200 | ||
Valuation allowance for impaired loans | 1,516 | 1,516 | 1,400 | ||
Impaired collateral dependent loans, provision for loan losses | 108 | $ (143) | 117 | $ (886) | |
Other Real Estate Owned Additional Disclosure [Abstract] | |||||
Recorded investment in other real estate owned carried at fair value - gross | 11,785 | 11,785 | 12,343 | ||
Valuation allowance for other real estate owned | 2,102 | 2,102 | 2,137 | ||
Write downs | 70 | $ 280 | 246 | $ 280 | |
Nonrecurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||||
Impaired loans: [Abstract] | |||||
Residential real estate | 0 | 0 | |||
Owner occupied commercial real estate | 0 | 0 | 0 | ||
Non-owner occupied commercial real estate | 0 | 0 | 0 | ||
Commercial and industrial | 0 | 0 | 0 | ||
All other | 0 | 0 | 0 | ||
Total impaired loans | 0 | 0 | 0 | ||
Other real estate owned: [Abstract] | |||||
Residential Real Estate | 0 | 0 | |||
Owner occupied commercial real estate | 0 | 0 | |||
Non-owner occupied commercial real estate | 0 | 0 | 0 | ||
All other | 0 | 0 | 0 | ||
Total OREO | 0 | 0 | 0 | ||
Nonrecurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||||
Impaired loans: [Abstract] | |||||
Residential real estate | 0 | 0 | |||
Owner occupied commercial real estate | 0 | 0 | 0 | ||
Non-owner occupied commercial real estate | 0 | 0 | 0 | ||
Commercial and industrial | 0 | 0 | 0 | ||
All other | 0 | 0 | 0 | ||
Total impaired loans | 0 | 0 | 0 | ||
Other real estate owned: [Abstract] | |||||
Residential Real Estate | 0 | 0 | |||
Owner occupied commercial real estate | 0 | 0 | |||
Non-owner occupied commercial real estate | 0 | 0 | 0 | ||
All other | 0 | 0 | 0 | ||
Total OREO | 0 | 0 | 0 | ||
Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Impaired loans: [Abstract] | |||||
Residential real estate | 63 | 63 | |||
Owner occupied commercial real estate | 346 | 346 | 600 | ||
Non-owner occupied commercial real estate | 589 | 589 | 630 | ||
Commercial and industrial | 19 | 19 | 341 | ||
All other | 4,249 | 4,249 | 4,229 | ||
Total impaired loans | 5,266 | 5,266 | 5,800 | ||
Other real estate owned: [Abstract] | |||||
Residential Real Estate | 657 | 657 | |||
Owner occupied commercial real estate | 39 | 39 | |||
Non-owner occupied commercial real estate | 2,003 | 2,003 | 2,003 | ||
All other | 6,984 | 6,984 | 8,203 | ||
Total OREO | 9,683 | 9,683 | 10,206 | ||
Nonrecurring [Member] | Carrying Amount [Member] | |||||
Impaired loans: [Abstract] | |||||
Residential real estate | 63 | 63 | |||
Owner occupied commercial real estate | 346 | 346 | 600 | ||
Non-owner occupied commercial real estate | 589 | 589 | 630 | ||
Commercial and industrial | 19 | 19 | 341 | ||
All other | 4,249 | 4,249 | 4,229 | ||
Total impaired loans | 5,266 | 5,266 | 5,800 | ||
Other real estate owned: [Abstract] | |||||
Residential Real Estate | 657 | 657 | |||
Owner occupied commercial real estate | 39 | 39 | |||
Non-owner occupied commercial real estate | 2,003 | 2,003 | 2,003 | ||
All other | 6,984 | 6,984 | 8,203 | ||
Total OREO | $ 9,683 | $ 9,683 | $ 10,206 |
FAIR VALUE, Asset Quantitative
FAIR VALUE, Asset Quantitative Information (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Impaired Loans [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Asset fair value | $ 5,266 | $ 5,800 |
Impaired Loans [Member] | Residential Real Estate [Member] | Sales Comparison [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Asset fair value | $ 63 | |
Impaired Loans [Member] | Residential Real Estate [Member] | Sales Comparison [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Comparability of sales (in hundredths) | 26.50% | |
Impaired Loans [Member] | Residential Real Estate [Member] | Sales Comparison [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Comparability of sales (in hundredths) | 26.50% | |
Impaired Loans [Member] | Residential Real Estate [Member] | Sales Comparison [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Comparability of sales (in hundredths) | 26.50% | |
Impaired Loans [Member] | Owner Occupied Commercial Real Estate [Member] | Sales Comparison [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Asset fair value | $ 346 | $ 600 |
Impaired Loans [Member] | Owner Occupied Commercial Real Estate [Member] | Sales Comparison [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Comparability of sales (in hundredths) | 65.50% | 44.80% |
Impaired Loans [Member] | Owner Occupied Commercial Real Estate [Member] | Sales Comparison [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Comparability of sales (in hundredths) | 72.40% | 72.40% |
Impaired Loans [Member] | Owner Occupied Commercial Real Estate [Member] | Sales Comparison [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Comparability of sales (in hundredths) | 66.90% | 58.90% |
Impaired Loans [Member] | Non Owner Occupied Commercial Real Estate [Member] | Sales Comparison [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Asset fair value | $ 589 | $ 630 |
Impaired Loans [Member] | Non Owner Occupied Commercial Real Estate [Member] | Sales Comparison [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Comparability of sales (in hundredths) | 41.80% | 16.90% |
Impaired Loans [Member] | Non Owner Occupied Commercial Real Estate [Member] | Sales Comparison [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Comparability of sales (in hundredths) | 41.80% | 54.60% |
Impaired Loans [Member] | Non Owner Occupied Commercial Real Estate [Member] | Sales Comparison [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Comparability of sales (in hundredths) | 41.80% | 16.90% |
Impaired Loans [Member] | Commercial and Industrial [Member] | Sales Comparison [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Asset fair value | $ 19 | $ 341 |
Impaired Loans [Member] | Commercial and Industrial [Member] | Sales Comparison [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Comparability of sales (in hundredths) | 8.00% | 26.20% |
Impaired Loans [Member] | Commercial and Industrial [Member] | Sales Comparison [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Comparability of sales (in hundredths) | 8.00% | 41.20% |
Impaired Loans [Member] | Commercial and Industrial [Member] | Sales Comparison [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Comparability of sales (in hundredths) | 8.00% | 27.00% |
Impaired Loans [Member] | All Other [Member] | Sales Comparison [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Asset fair value | $ 4,249 | $ 4,229 |
Impaired Loans [Member] | All Other [Member] | Sales Comparison [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Comparability of sales (in hundredths) | 57.20% | 57.30% |
Impaired Loans [Member] | All Other [Member] | Sales Comparison [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Comparability of sales (in hundredths) | 57.20% | 57.30% |
Impaired Loans [Member] | All Other [Member] | Sales Comparison [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Comparability of sales (in hundredths) | 57.20% | 57.30% |
Other Real Estate Owned [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Asset fair value | $ 9,683 | $ 10,206 |
Other Real Estate Owned [Member] | Residential Real Estate [Member] | Sales Comparison [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Asset fair value | $ 657 | |
Other Real Estate Owned [Member] | Residential Real Estate [Member] | Sales Comparison [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Comparability of sales (in hundredths) | 0.70% | |
Other Real Estate Owned [Member] | Residential Real Estate [Member] | Sales Comparison [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Comparability of sales (in hundredths) | 35.50% | |
Other Real Estate Owned [Member] | Residential Real Estate [Member] | Sales Comparison [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Comparability of sales (in hundredths) | 25.00% | |
Other Real Estate Owned [Member] | Owner Occupied Commercial Real Estate [Member] | Sales Comparison [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Asset fair value | $ 39 | |
Other Real Estate Owned [Member] | Owner Occupied Commercial Real Estate [Member] | Sales Comparison [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Comparability of sales (in hundredths) | 25.40% | |
Other Real Estate Owned [Member] | Owner Occupied Commercial Real Estate [Member] | Sales Comparison [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Comparability of sales (in hundredths) | 25.40% | |
Other Real Estate Owned [Member] | Owner Occupied Commercial Real Estate [Member] | Sales Comparison [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Comparability of sales (in hundredths) | 25.40% | |
Other Real Estate Owned [Member] | Non Owner Occupied Commercial Real Estate [Member] | Sales Comparison [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Asset fair value | $ 2,003 | $ 2,003 |
Other Real Estate Owned [Member] | Non Owner Occupied Commercial Real Estate [Member] | Sales Comparison [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Comparability of sales (in hundredths) | 17.20% | 17.80% |
Other Real Estate Owned [Member] | Non Owner Occupied Commercial Real Estate [Member] | Sales Comparison [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Comparability of sales (in hundredths) | 17.20% | 17.80% |
Other Real Estate Owned [Member] | Non Owner Occupied Commercial Real Estate [Member] | Sales Comparison [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Comparability of sales (in hundredths) | 17.20% | 17.80% |
Other Real Estate Owned [Member] | All Other [Member] | Sales Comparison [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Asset fair value | $ 6,984 | $ 8,203 |
Other Real Estate Owned [Member] | All Other [Member] | Sales Comparison [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Comparability of sales (in hundredths) | 24.60% | 24.60% |
Other Real Estate Owned [Member] | All Other [Member] | Sales Comparison [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Comparability of sales (in hundredths) | 67.40% | 50.30% |
Other Real Estate Owned [Member] | All Other [Member] | Sales Comparison [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Comparability of sales (in hundredths) | 35.40% | 45.00% |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) - Jul. 06, 2015 - Subsequent Event [Member] - Merger Agreement [Member] - First National Bankshares Corporation [Member] - USD ($) $ / shares in Units, $ in Millions | Total |
Subsequent Event [Line Items] | |
Value of single bank holding | $ 261 |
Purchase price of entity acquired | $ 26.5 |
Purchase price of common stock (in dollars per share) | $ 31.82 |
Number of shares issued in acquisition (in shares) | 1,400,000 |
Uncategorized Items - pfbi-2015
Label | Element | Value |
Provision (credit) for loan losses | us-gaap_ProvisionForLoanAndLeaseLosses | $ (146) |
Provision (credit) for loan losses | us-gaap_ProvisionForLoanAndLeaseLosses | $ (79) |