Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 09, 2018 | |
Document And Entity Information Abstract | ||
Entity Registrant Name | HAWTHORN BANCSHARES, INC. | |
Entity Central Index Key | 893,847 | |
Trading Symbol | hwbk | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 6,020,915 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and due from banks | $ 15,921 | $ 23,325 |
Federal funds sold and other interest-bearing deposits | 34,863 | 39,553 |
Cash and cash equivalents | 50,784 | 62,878 |
Certificates of deposit in other banks | 10,746 | 3,460 |
Investment in available-for-sale securities, at fair value | 227,601 | 226,542 |
Other investments and securities, at cost | 9,323 | 11,037 |
Total investment securities | 236,924 | 237,579 |
Loans | 1,094,195 | 1,068,432 |
Allowances for loan losses | (11,212) | (10,852) |
Net loans | 1,082,983 | 1,057,580 |
Premises and equipment - net | 34,586 | 34,811 |
Mortgage servicing rights | 2,813 | 2,713 |
Other real estate owned and repossessed assets - net | 13,236 | 13,182 |
Accrued interest receivable | 5,294 | 5,627 |
Cash surrender value - life insurance | 2,516 | 2,484 |
Other assets | 8,768 | 8,902 |
Total assets | 1,448,650 | 1,429,216 |
Deposits | ||
Non-interest bearing demand | 250,232 | 245,380 |
Savings, interest checking and money market | 614,976 | 584,468 |
Time deposits $250,000 and over | 98,638 | 63,176 |
Other time deposits | 219,540 | 232,788 |
Total deposits | 1,183,386 | 1,125,812 |
Federal funds purchased and securities sold under agreements to repurchase | 36,103 | 27,560 |
Federal Home Loan Bank advances and other borrowings | 74,270 | 121,382 |
Subordinated notes | 49,486 | 49,486 |
Accrued interest payable | 790 | 554 |
Other liabilities | 11,482 | 13,051 |
Total liabilities | 1,355,517 | 1,337,845 |
Stockholders' equity: | ||
Common stock, $1 par value, authorized 15,000,000 shares; issued 6,046,907 shares, respectively | 6,047 | 6,047 |
Surplus | 50,456 | 45,442 |
Retained earnings | 49,594 | 50,595 |
Accumulated other comprehensive loss, net of tax | (7,734) | (5,662) |
Treasury stock; 257,566 and 248,898 shares, at cost, respectively | (5,230) | (5,051) |
Total stockholders' equity | 93,133 | 91,371 |
Total liabilities and stockholders' equity | $ 1,448,650 | $ 1,429,216 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized | 15,000,000 | 15,000,000 |
Common stock, shares issued | 6,046,907 | 6,046,907 |
Treasury stock, shares | 257,566 | 248,898 |
Consolidated Statements of Inco
Consolidated Statements of Income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
INTEREST INCOME | ||||
Interest and fees on loans | $ 12,853 | $ 11,671 | $ 25,077 | $ 22,721 |
Interest on investment securities: | ||||
Taxable | 984 | 737 | 1,930 | 1,491 |
Nontaxable | 147 | 168 | 305 | 325 |
Federal funds sold, other interest-bearing deposits, and certificates of deposit in other banks | 189 | 11 | 295 | 60 |
Dividends on other securities | 115 | 94 | 225 | 184 |
Total interest income | 14,288 | 12,681 | 27,832 | 24,781 |
Interest on deposits: | ||||
Savings, interest checking and money market | 1,347 | 475 | 2,431 | 864 |
Time deposit accounts $250,000 and over | 296 | 99 | 434 | 191 |
Other time deposits | 536 | 410 | 1,046 | 789 |
Interest on federal funds purchased and securities sold under agreements to repurchase | 189 | 27 | 360 | 49 |
Interest on Federal Home Loan Bank advances | 332 | 419 | 728 | 741 |
Interest on subordinated notes | 561 | 431 | 1,051 | 840 |
Total interest expense | 3,261 | 1,861 | 6,050 | 3,474 |
Net interest income | 11,027 | 10,820 | 21,782 | 21,307 |
Provision for loan losses | 450 | 330 | 750 | 680 |
Net interest income after provision for loan losses | 10,577 | 10,490 | 21,032 | 20,627 |
NON-INTEREST INCOME | ||||
Gain on sale of mortgage loans, net | 242 | 218 | 387 | 374 |
Other | 122 | 67 | 245 | 141 |
Total non-interest income | 2,486 | 2,099 | 4,787 | 4,506 |
NON-INTEREST EXPENSE | ||||
Salaries and employee benefits | 5,813 | 5,336 | 11,870 | 10,774 |
Occupancy expense, net | 725 | 689 | 1,413 | 1,307 |
Furniture and equipment expense | 685 | 634 | 1,320 | 1,232 |
Processing, network, and bank card expense | 889 | 927 | 1,747 | 1,972 |
Legal, examination, and professional fees | 201 | 317 | 624 | 597 |
FDIC insurance assessment | 146 | 115 | 301 | 216 |
Advertising and promotion | 291 | 265 | 544 | 503 |
Postage, printing, and supplies | 224 | 252 | 492 | 475 |
Other | 957 | 1,152 | 1,875 | 1,961 |
Total non-interest expense | 9,931 | 9,687 | 20,186 | 19,037 |
Income before income taxes | 3,132 | 2,902 | 5,633 | 6,096 |
Income tax expense | 225 | 983 | 636 | 2,076 |
Net income | $ 2,907 | $ 1,919 | $ 4,997 | $ 4,020 |
Basic earnings per share (in dollars per share) | $ 0.48 | $ 0.32 | $ 0.83 | $ 0.66 |
Diluted earnings per share (in dollars per share) | $ 0.48 | $ 0.32 | $ 0.83 | $ 0.66 |
Service charges and other fees | ||||
NON-INTEREST INCOME | ||||
Income from fees | $ 941 | $ 851 | $ 1,817 | $ 1,687 |
Bank card income and fees | ||||
NON-INTEREST INCOME | ||||
Income from fees | 709 | 663 | 1,365 | 1,277 |
Trust department income | ||||
NON-INTEREST INCOME | ||||
Income from fees | 311 | 266 | 592 | 540 |
Real estate servicing fees, net | ||||
NON-INTEREST INCOME | ||||
Income from fees | $ 161 | $ 34 | $ 381 | $ 487 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Consolidated Statements of Comprehensive Income | ||||
Net income | $ 2,907 | $ 1,919 | $ 4,997 | $ 4,020 |
Investment securities available-for-sale: | ||||
Unrealized (loss) gain on investment securities available-for-sale, net of tax | (442) | 595 | (2,157) | 900 |
Adjustment for gain on sale of investment securities, net of tax | 0 | 0 | 0 | 0 |
Defined benefit pension plans: | ||||
Amortization of prior service cost included in net periodic pension cost, net of tax | 43 | 13 | 85 | 27 |
Total other comprehensive (loss) income | (399) | 608 | (2,072) | 927 |
Total comprehensive income | $ 2,508 | $ 2,527 | $ 2,925 | $ 4,947 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (unaudited) - USD ($) $ in Thousands | Common Stock | Surplus | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total |
Balance at Dec. 31, 2016 | $ 5,822 | $ 41,498 | $ 51,671 | $ (3,801) | $ (4,173) | $ 91,017 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 0 | 0 | 4,020 | 0 | 0 | 4,020 |
Other comprehensive loss (income) | 0 | 0 | 0 | 927 | 0 | 927 |
Stock based compensation expense | 0 | 2 | 0 | 0 | 0 | 2 |
Purchase of treasury stock | 0 | 0 | 0 | 0 | (89) | (89) |
Stock dividend | 0 | 4,165 | (4,165) | 0 | 0 | 0 |
Cash dividends declared, common stock | 0 | 0 | (730) | 0 | 0 | (730) |
Balance at Jun. 30, 2017 | 5,822 | 45,665 | 50,796 | (2,874) | (4,262) | 95,147 |
Balance at Dec. 31, 2017 | 6,047 | 45,442 | 50,595 | (5,662) | (5,051) | 91,371 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 0 | 0 | 4,997 | 0 | 0 | 4,997 |
Other comprehensive loss (income) | 0 | 0 | 0 | (2,072) | 0 | (2,072) |
Purchase of treasury stock | 0 | 0 | 0 | 0 | (179) | (179) |
Stock dividend | 0 | 5,014 | (5,014) | 0 | 0 | 0 |
Cash dividends declared, common stock | 0 | 0 | (984) | 0 | 0 | (984) |
Balance at Jun. 30, 2018 | $ 6,047 | $ 50,456 | $ 49,594 | $ (7,734) | $ (5,230) | $ 93,133 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 4,997 | $ 4,020 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 750 | 680 |
Depreciation expense | 877 | 874 |
Net amortization of investment securities, premiums, and discounts | 752 | 828 |
Stock based compensation expense | 0 | 2 |
Change in fair value of mortgage servicing rights | 31 | (67) |
Gain on sale of investment securities | (206) | 0 |
(Gain) loss on sales and dispositions of premises and equipment | (13) | 1 |
Gain on sales and dispositions of other real estate and repossessed assets | (2) | (38) |
Provision for other real estate owned | 26 | 215 |
Decrease in accrued interest receivable | 333 | 429 |
Increase in cash surrender value - life insurance | (32) | (39) |
Decrease (increase) in other assets | 873 | (545) |
Increase (decrease) in accrued interest payable | 236 | (69) |
(Decrease) increase in other liabilities | (1,742) | 290 |
Origination of mortgage loans for sale | (19,597) | (17,101) |
Proceeds from the sale of mortgage loans | 19,722 | 16,154 |
Gain on sale of mortgage loans, net | (387) | (374) |
Other, net | (131) | (115) |
Net cash provided by operating activities | 6,487 | 5,145 |
Cash flows from investing activities: | ||
Net (increase) decrease in certificates of deposit in other banks | (7,286) | 1,000 |
Net increase in loans | (26,272) | (59,846) |
Purchase of available-for-sale debt securities | (74,275) | (21,874) |
Proceeds from maturities of available-for-sale debt securities | 16,445 | 16,132 |
Proceeds from calls of available-for-sale debt securities | 1,685 | 4,525 |
Proceeds from sales of available-for-sale debt securities | 51,810 | 0 |
Purchases of FHLB stock | (1,370) | (1,203) |
Proceeds from sales of FHLB stock | 3,084 | 201 |
Purchases of premises and equipment | (734) | (863) |
Proceeds from sales of premises and equipment | 13 | 0 |
Proceeds from sales of other real estate and foreclosed assets | 304 | 784 |
Net cash used in investing activities | (36,596) | (61,144) |
Cash flows from financing activities: | ||
Net increase in demand deposits | 4,851 | 43,659 |
Net increase in interest-bearing transaction accounts | 30,509 | 48,947 |
Net increase (decrease) in time deposits | 22,214 | (20,585) |
Net increase (decrease) in federal funds purchased and securities sold under agreements to repurchase | 8,543 | (2,389) |
Repayment of FHLB advances and other borrowings | (141,112) | (130,277) |
FHLB advances | 94,000 | 152,740 |
Purchase of treasury stock | (179) | (89) |
Cash dividends paid - common stock | (811) | (674) |
Net cash provided by financing activities | 18,015 | 91,332 |
Net (decrease) increase in cash and cash equivalents | (12,094) | 35,333 |
Cash and cash equivalents, beginning of period | 62,878 | 25,995 |
Cash and cash equivalents, end of period | 50,784 | 61,328 |
Cash paid during the year for: | ||
Interest | 5,814 | 3,542 |
Income taxes | 50 | 2,185 |
Noncash investing activities: | ||
Other real estate and repossessed assets acquired in settlement of loans | $ 382 | $ 155 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (1) Summary of Significant Accounting Policies Hawthorn Bancshares, Inc. (the Company) through its subsidiary, Hawthorn Bank (the Bank), provides a broad range of banking services to individual and corporate customers located within the Missouri communities in and surrounding Jefferson City, Columbia, Clinton, Warsaw, Springfield, Branson, and the greater Kansas City metropolitan area. The Company is subject to competition from other financial and nonfinancial institutions providing financial products. Additionally, the Company and its subsidiaries are subject to the regulations of certain regulatory agencies and undergo periodic examinations by those regulatory agencies. The accompanying unaudited consolidated financial statements of the Company have been prepared in conformity with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q, and Rule 10-01 of Regulation S-X. Accordingly, the unaudited consolidated financial statements do not include all of the information and disclosures required by U.S. GAAP for complete financial statements and should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. The preparation of the consolidated financial statements includes all adjustments that, in the opinion of management, are necessary in order to make those statements not misleading. Management is required to make estimates and assumptions, including the determination of the allowance for loan losses, real estate acquired in connection with foreclosure or in satisfaction of loans, and fair values of investment securities available-for-sale that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company’s management has evaluated and did not identify any subsequent events or transactions requiring recognition or disclosure in the consolidated financial statements. Stock Dividend The following represents significant new accounting principles adopted in 2018: Revenue from Contracts with Customers Revenue from Contracts with Customers (Topic 606) Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain noninterest income streams such as fees associated with mortgage servicing rights, financial guarantees, derivatives, and certain credit card fees are also not in scope of the new guidance. Topic 606 is applicable to noninterest revenue streams such as trust department revenue, service charges and fees, debit card income, ATM surcharge income, and other real estate owned sales. However, the recognition of these revenue streams did not change significantly upon adoption of Topic 606. Noninterest revenue streams within the scope of Topic 606 are discussed in Footnote 16. Financial Instruments Recognition and Measurement of Financial Assets and Financial Liabilities The FASB issued ASU 2018-04, Investments - Debt Securities (Topic 320) and Regulated Operations (Topic 980) Liabilities Recognition of Breakage for Certain Prepaid Store-Value Products Pension Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2018 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans and Allowance for Loan Losses | (2) Loans and Allowance for Loan Losses Loans A summary of loans, by major class within the Company’s loan portfolio, at June 30, 2018 and December 31, 2017 is as follows: June 30, December 31, (in thousands) 2018 2017 Commercial, financial, and agricultural $ 200,628 $ 192,238 Real estate construction - residential 28,285 26,492 Real estate construction - commercial 106,406 98,340 Real estate mortgage - residential 246,415 246,754 Real estate mortgage - commercial 479,571 472,455 Installment and other consumer 32,890 32,153 Total loans $ 1,094,195 $ 1,068,432 The Bank grants real estate, commercial, installment, and other consumer loans to customers located within the Missouri communities surrounding Jefferson City, Columbia, Clinton, Warsaw, Springfield, Branson and the greater Kansas City metropolitan area. As such, the Bank is susceptible to changes in the economic environment in these communities. The Bank does not have a concentration of credit in any one economic sector. Installment and other consumer loans consist primarily of the financing of automotive vehicles. At June 30, 2018, loans of $489.6 million were pledged to the Federal Home Loan Bank as collateral for borrowings and letters of credit. Allowance for Loan Losses The following is a summary of the allowance for loan losses during the periods indicated. Three Months Ended June 30, 2018 Commercial, Real Estate Real Estate Real Estate Real Estate Installment Financial, & Construction - Construction - Mortgage - Mortgage - and Other Un- (in thousands) Agricultural Residential Commercial Residential Commercial Consumer allocated Total Balance at beginning of period $ 3,261 $ 240 $ 895 $ 2,057 $ 4,008 $ 352 $ 134 $ 10,947 Additions: Provision for loan losses 865 (52 ) 10 48 (388 ) 90 (123 ) 450 Deductions: Loans charged off 193 0 0 12 15 49 0 269 Less recoveries on loans (10 ) (13 ) 0 (16 ) (25 ) (20 ) 0 (84 ) Net loan charge-offs (recoveries) 183 (13 ) 0 (4 ) (10 ) 29 0 185 Balance at end of period $ 3,943 $ 201 $ 905 $ 2,109 $ 3,630 $ 413 $ 11 $ 11,212 Six Months Ended June 30, 2018 Commercial, Real Estate Real Estate Real Estate Real Estate Installment Financial, & Construction - Construction - Mortgage - Mortgage - and Other Un- (in thousands) Agricultural Residential Commercial Residential Commercial Consumer allocated Total Balance at beginning of period $ 3,325 $ 170 $ 807 $ 1,689 $ 4,437 345 $ 79 $ 10,852 Additions: Provision for loan losses 898 54 128 416 (809 ) 131 (68 ) 750 Deductions: Loans charged off 303 48 30 32 29 106 0 548 Less recoveries on loans (23 ) (25 ) 0 (36 ) (31 ) (43 ) 0 (158 ) Net loan charge-offs (recoveries) 280 23 30 (4 ) (2 ) 63 0 390 Balance at end of period $ 3,943 $ 201 $ 905 $ 2,109 $ 3,630 $ 413 $ 11 $ 11,212 Three Months Ended June 30, 2017 Commercial, Real Estate Real Estate Real Estate Real Estate Installment Financial, & Construction - Construction - Mortgage - Mortgage - and Other Un- (in thousands) Agricultural Residential Commercial Residential Commercial Consumer allocated Total Balance at beginning of period $ 2,360 $ 99 $ 579 $ 2,125 $ 4,731 $ 322 $ 46 $ 10,262 Additions: Provision for loan losses 226 (54 ) 36 (230 ) 139 89 124 330 Deductions: Loans charged off 32 0 0 62 2 60 0 156 Less recoveries on loans (24 ) (25 ) 0 (21 ) (14 ) (25 ) 0 (109 ) Net loan charge-offs (recoveries) 8 (25 ) 0 41 (12 ) 35 0 47 Balance at end of period $ 2,578 $ 70 $ 615 $ 1,854 $ 4,882 $ 376 $ 170 $ 10,545 Six Months Ended June 30, 2017 Commercial, Real Estate Real Estate Real Estate Real Estate Installment Financial, & Construction - Construction - Mortgage - Mortgage - and Other Un- (in thousands) Agricultural Residential Commercial Residential Commercial Consumer allocated Total Balance at beginning of period $ 2,753 $ 108 $ 413 $ 2,385 $ 3,793 274 $ 160 $ 9,886 Additions: Provision for loan losses (157 ) (113 ) 202 (507 ) 1,084 161 10 680 Deductions: Loans charged off 60 0 0 81 16 111 0 268 Less recoveries on loans (42 ) (75 ) 0 (57 ) (21 ) (52 ) 0 (247 ) Net loan charge-offs (recoveries) 18 (75 ) 0 24 (5 ) 59 0 21 Balance at end of period $ 2,578 $ 70 $ 615 $ 1,854 $ 4,882 $ 376 $ 170 $ 10,545 Loans, or portions of loans, are charged off to the extent deemed uncollectible or a loss is confirmed. Loan charge-offs reduce the allowance for loan losses, and recoveries of loans previously charged off are added back to the allowance. If management determines that it is probable that all amounts due on a loan will not be collected under the original terms of the loan agreement, the loan is considered to be impaired. These loans are evaluated individually for impairment, and in conjunction with current economic conditions and loss experience, specific reserves are estimated as further discussed below. Loans not individually evaluated are aggregated by risk characteristics and reserves are recorded using a consistent methodology that considers historical loan loss experience by loan type, delinquencies, current economic conditions, loan risk ratings and industry concentration. Beginning in the first quarter of 2016, the Company began to lengthen its look-back period with the intent to increase such period from three to five years. The Company believes that the five-year look-back period, which is consistent with the Company’s practices prior to the start of the economic recession in 2008, provides a representative historical loss period in the current economic environment. As of December 31, 2017, the Company utilized a five-year look-back period. The following table provides the balance in the allowance for loan losses at June 30, 2018 and December 31, 2017, and the related loan balance by impairment methodology. Commercial, Real Estate Real Estate Real Estate Real Estate Installment Financial, and Construction - Construction - Mortgage - Mortgage - and Other Un- (in thousands) Agricultural Residential Commercial Residential Commercial Consumer allocated Total June 30, 2018 Allowance for loan losses: Individually evaluated for impairment $ 410 $ 0 $ 0 $ 668 $ 185 $ 19 $ 0 $ 1,282 Collectively evaluated for impairment 3,533 201 905 1,441 3,445 394 11 9,930 Total $ 3,943 $ 201 $ 905 $ 2,109 $ 3,630 $ 413 $ 11 $ 11,212 Loans outstanding: Individually evaluated for impairment $ 2,887 $ 0 $ 169 $ 5,186 $ 1,705 $ 304 $ 0 $ 10,251 Collectively evaluated for impairment 197,741 28,285 106,237 241,229 477,866 32,586 0 1,083,944 Total $ 200,628 $ 28,285 $ 106,406 $ 246,415 $ 479,571 $ 32,890 $ 0 $ 1,094,195 December 31, 2017 Allowance for loan losses: Individually evaluated for impairment $ 500 $ 0 $ 48 $ 521 $ 243 $ 21 $ 0 $ 1,333 Collectively evaluated for impairment 2,825 170 759 1,168 4,194 324 79 9,519 Total $ 3,325 $ 170 $ 807 $ 1,689 $ 4,437 $ 345 $ 79 $ 10,852 Loans outstanding: Individually evaluated for impairment $ 3,007 $ 0 $ 97 $ 5,072 $ 2,004 $ 176 $ 0 $ 10,356 Collectively evaluated for impairment 189,231 26,492 98,243 241,682 470,451 31,977 0 1,058,076 Total $ 192,238 $ 26,492 $ 98,340 $ 246,754 $ 472,455 $ 32,153 $ 0 $ 1,068,432 Impaired Loans Loans evaluated under ASC 310-10-35 include loans which are individually evaluated for impairment. All other loans are collectively evaluated for impairment under ASC 450-20. Impaired loans individually evaluated for impairment totaled $10.3 million and $10.4 million at June 30, 2018 and December 31, 2017, respectively, and are comprised of loans on non-accrual status and loans which have been classified as troubled debt restructurings (TDRs). The net carrying value of impaired loans is based on the fair values of collateral obtained through independent appraisals or internal evaluations, or by discounting the total expected future cash flows. At June 30, 2018 and December 31, 2017, $4.2 million and $4.0 million, respectively, of impaired loans were evaluated based on the fair value less estimated selling costs of the loan’s collateral. Once the impairment amount is calculated, a specific reserve allocation is recorded. At June 30, 2018, $1.3 million of the Company’s allowance for loan losses was allocated to impaired loans totaling $10.3 million compared to $1.3 million of the Company's allowance for loan losses allocated to impaired loans totaling approximately $10.4 million at December 31, 2017. Management determined that $3.3 million, or 33%, of total impaired loans required no reserve allocation at June 30, 2018 compared to $2.4 million, or 23%, at December 31, 2017 primarily due to adequate collateral values , The categories of impaired loans at June 30, 2018 and December 31, 2017 are as follows: June 30, December 31, (in thousands) 2018 2017 Non-accrual loans $ 6,311 $ 5,672 Performing TDRs 3,940 4,684 Total impaired loans $ 10,251 $ 10,356 The following tables provide additional information about impaired loans at June 30, 2018 and December 31, 2017, respectively, segregated between loans for which an allowance has been provided and loans for which no allowance has been provided. Unpaid Recorded Principal Specific (in thousands) Investment Balance Reserves June 30, 2018 With no related allowance recorded: Commercial, financial and agricultural $ 1,282 $ 1,351 $ 0 Real estate - construction residential 0 0 0 Real estate - construction commercial 169 188 0 Real estate - residential 993 1,048 0 Real estate - commercial 753 753 0 Consumer 137 137 0 Total $ 3,334 $ 3,477 $ 0 With an allowance recorded: Commercial, financial and agricultural $ 1,605 $ 1,927 $ 410 Real estate - construction residential 0 0 0 Real estate - residential 4,193 4,287 668 Real estate - commercial 952 1,078 185 Installment and other consumer 167 189 19 Total $ 6,917 $ 7,481 $ 1,282 Total impaired loans $ 10,251 $ 10,958 $ 1,282 Unpaid Recorded Principal Specific (in thousands) Investment Balance Reserves December 31, 2017 With no related allowance recorded: Commercial, financial and agricultural $ 1,393 $ 1,445 $ 0 Real estate - residential 674 688 0 Real estate - commercial 366 395 0 Total $ 2,433 $ 2,528 $ 0 With an allowance recorded: Commercial, financial and agricultural $ 1,614 $ 1,834 $ 500 Real estate - construction commercial 97 97 48 Real estate - residential 4,398 4,500 521 Real estate - commercial 1,638 1,743 243 Consumer 176 196 21 Total $ 7,923 $ 8,370 $ 1,333 Total impaired loans $ 10,356 $ 10,898 $ 1,333 The following table presents by class, information related to the average recorded investment and interest income recognized on impaired loans during the periods indicated. Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Interest Interest Interest Interest Average Recognized Average Recognized Average Recognized Average Recognized Recorded For the Recorded For the Recorded For the Recorded For the (in thousands) Investment Period Ended Investment Period Ended Investment Period Ended Investment Period Ended With no related allowance recorded: Commercial, financial and agricultural $ 1,153 $ 0 $ 464 $ -1 $ 1,302 $ 1 $ 519 $ 0 Real estate - construction commercial 113 0 0 0 42 0 0 0 Real estate - residential 933 3 852 3 900 6 912 7 Real estate - commercial 116 10 395 -2 237 19 500 0 Installment and other consumer 137 0 2 0 34 0 31 0 Total $ 2,452 $ 13 $ 1,713 $ 0 $ 2,515 $ 26 $ 1,962 $ 7 With an allowance recorded: Commercial, financial and agricultural $ 1,621 $ 8 $ 1,214 $ 8 $ 1,737 $ 15 $ 1,199 $ 19 Real estate - construction residential 20 0 0 0 15 0 0 0 Real estate - construction commercial 0 0 48 0 24 0 49 0 Real estate - residential 4,118 14 4,790 42 4,247 47 4,595 87 Real estate - commercial 1,732 5 1,604 14 1,691 10 1,505 29 Installment and other consumer 172 1 51 0 167 1 48 0 Total $ 7,663 $ 28 $ 7,707 $ 64 $ 7,881 $ 73 $ 7,396 $ 135 Total impaired loans $ 10,115 $ 41 $ 9,420 $ 64 $ 10,396 $ 99 $ 9,358 $ 142 The recorded investment varies from the unpaid principal balance primarily due to partial charge-offs taken resulting from current appraisals received. The amount recognized as interest income on impaired loans continuing to accrue interest, primarily related to troubled debt restructurings, was $41,000 and $99,000, for the three months and six months ended June 30, 2018, respectively compared to $64,000 and $142,000 for the three and six months ended June 30, 2017, respectively. The average recorded investment in impaired loans is calculated on a monthly basis during the periods reported. Delinquent and Non-Accrual Loans The delinquency status of loans is determined based on the contractual terms of the notes. Borrowers are generally classified as delinquent once payments become 30 days or more past due. The Company’s policy is to discontinue the accrual of interest income on any loan when, in the opinion of management, the ultimate collectability of interest or principal is no longer probable. In general, loans are placed on non-accrual when they become 90 days or more past due. However, management considers many factors before placing a loan on non-accrual, including the delinquency status of the loan, the overall financial condition of the borrower, the progress of management’s collection efforts and the value of the underlying collateral. Non-accrual loans are returned to accrual status when, in the opinion of management, the financial condition of the borrower indicates that the timely collectability of interest and principal is probable and the borrower demonstrates the ability to pay under the terms of the note through a sustained period of repayment performance, which is generally six months. The following table provides aging information for the Company’s past due and non-accrual loans at June 30, 2018 and December 31, 2017. Current or 90 Days Less Than Past Due 30 Days 30 - 89 Days And Still (in thousands) Past Due Past Due Accruing Non-Accrual Total June 30, 2018 Commercial, Financial, and Agricultural $ 197,928 $ 271 $ 0 $ 2,429 $ 200,628 Real Estate Construction - Residential 28,285 0 0 0 28,285 Real Estate Construction - Commercial 106,237 0 0 169 106,406 Real Estate Mortgage - Residential 242,937 695 8 2,775 246,415 Real Estate Mortgage - Commercial 478,383 535 0 653 479,571 Installment and Other Consumer 32,363 208 34 285 32,890 Total $ 1,086,133 $ 1,709 $ 42 $ 6,311 $ 1,094,195 December 31, 2017 Commercial, Financial, and Agricultural $ 189,537 $ 192 $ 2 $ 2,507 $ 192,238 Real Estate Construction - Residential 25,930 287 275 0 26,492 Real Estate Construction - Commercial 98,243 0 0 97 98,340 Real Estate Mortgage - Residential 242,597 2,173 28 1,956 246,754 Real Estate Mortgage - Commercial 471,476 43 0 936 472,455 Installment and Other Consumer 31,715 239 23 176 32,153 Total $ 1,059,498 $ 2,934 $ 328 $ 5,672 $ 1,068,432 Credit Quality The Company categorizes loans into risk categories based upon an internal rating system reflecting management’s risk assessment. Loans are placed on watch substandard troubled debt restructuring TDR) non-accrual The following table presents the risk categories by class at June 30, 2018 and December 31, 2017. (in thousands) Commercial, Real Estate Real Estate Real Real Estate Installment Total At June 30, 2018 Watch $ 7,378 $ 598 $ 3,581 $ 8,584 $ 33,482 $ 9 $ 53,632 Substandard 94 0 0 1,371 718 6 2,189 Performing TDRs 458 0 0 2,410 1,053 19 3,940 Non-accrual 2,429 0 169 2,775 653 285 6,311 Total $ 10,359 $ 598 $ 3,750 $ 15,140 $ 35,906 $ 319 $ 66,072 At December 31, 2017 Watch $ 9,868 $ 1,459 $ 1,284 $ 9,978 $ 49,197 $ 0 $ 71,786 Substandard 658 462 0 2,262 723 16 4,121 Performing TDRs 500 0 0 3,116 1,068 0 4,684 Non-accrual 2,507 0 97 1,956 936 176 5,672 Total $ 13,533 $ 1,921 $ 1,381 $ 17,312 $ 51,924 $ 192 $ 86,263 Troubled Debt Restructurings At June 30, 2018, loans classified as TDRs totaled $5.9 million, of which $2.0 million were classified as nonperforming TDRs and included in non-accrual loans and $3.9 million were classified as performing TDRs. At December 31, 2017, loans classified as TDRs totaled $6.4 million, of which $1.7 million were classified as nonperforming TDRs and included in non-accrual loans and $4.7 million were classified as performing TDRs. Both performing and nonperforming TDRs are considered impaired loans. When an individual loan is determined to be a TDR, the amount of impairment is based upon the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the underlying collateral less applicable selling costs. Accordingly, specific reserves of $510,000 and $577,000 related to TDRs were allocated to the allowance for loan losses at June 30, 2018 and December 31, 2017, respectively. The following table summarizes loans that were modified as TDRs during the periods indicated. Six Months Ended June 30, 2018 2017 Recorded Investment (1) Recorded Investment (1) (in thousands) Number of Pre- Post- Number of Pre- Post- Troubled Debt Restructurings Commercial, financial and agricultural 0 $ 0 $ 0 1 $ 131 $ 130 Real estate mortgage - residential 1 75 75 0 0 0 Real estate mortgage - commercial 1 68 64 1 56 52 Consumer 4 48 47 0 0 0 Total 6 $ 191 $ 186 2 $ 187 $ 182 (1) The amounts reported post-modification are inclusive of all partial pay-downs and charge-offs, and no portion of the debt was forgiven. Loans modified as a TDR that were fully paid down, charged-off or foreclosed upon during the period ended are not reported. The Company’s portfolio of loans classified as TDRs include concessions for the borrower given financial condition such as interest rates below the current market rate, deferring principal payments, and extending maturity dates. There were no loans and six loans meeting the TDR criteria that were modified during the three and six months ended June 30, 2018, respectively, compared to no loans and two loans during the three and six months ended June 30, 2017, respectively. The Company considers a TDR to be in default when it is 90 days or more past due under the modified terms, a charge-off occurs, or it is the process of foreclosure. There were no loans modified as a TDR that defaulted during any of the three and six months ended June 30, 2018 and 2017, respectively, and within twelve months of their modification date. During 2018, one real estate mortgage loan went to foreclosure totaling $48,000 and one commercial real estate loan totaling $366,000 was sold at foreclosure. See Lending and Credit Management |
Other Real Estate and Repossess
Other Real Estate and Repossessed Assets | 6 Months Ended |
Jun. 30, 2018 | |
Other Real Estate [Abstract] | |
Other Real Estate and Repossessed Assets | (3) Other Real Estate and Repossessed Assets June 30, December 31, (in thousands) 2018 2017 Commercial $ 727 $ 727 Real estate construction - residential 179 0 Real estate construction - commercial 12,101 12,380 Real estate mortgage - residential 317 382 Real estate mortgage - commercial 2,934 2,909 Repossessed assets 0 5 Total $ 16,258 $ 16,403 Less valuation allowance for other real estate owned (3,022 ) (3,221 ) Total other real estate and repossessed assets $ 13,236 $ 13,182 Changes in the net carrying amount of other real estate and repossessed assets were as follows for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Balance at beginning of period $ 16,264 $ 16,669 $ 16,403 $ 17,291 Additions 104 52 382 155 Proceeds from sales (80 ) (126 ) (304 ) (784 ) Charge-offs against the valuation allowance for other real estate owned, net (30 ) (53 ) (225 ) (170 ) Net gain on sales 0 (12 ) 2 38 Total other real estate and repossessed assets $ 16,258 $ 16,530 $ 16,258 $ 16,530 Less valuation allowance for other real estate owned (3,022 ) (3,174 ) (3,022 ) (3,174 ) Balance at end of period $ 13,236 $ 13,356 $ 13,236 $ 13,356 At June 30, 2018, $246,000 of consumer mortgage loans secured by residential real estate properties were in the process of foreclosure compared to no loans at December 31, 2017. Activity in the valuation allowance for other real estate owned was as follows for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2018 2017 2018 2017 Balance, beginning of period $ 3,025 $ 3,044 $ 3,221 $ 3,129 Provision for other real estate owned 27 183 26 215 Charge-offs (30 ) (53 ) (225 ) (170 ) Balance, end of period $ 3,022 $ 3,174 $ 3,022 $ 3,174 |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Investment Securities | (4) Investment Securities The amortized cost and fair value of debt securities classified as available-for-sale at June 30, 2018 and December 31, 2017 were as follows: Total Amortized Gross Unrealized Fair ( in thousands) Cost Gains Losses Value June 30, 2018 U.S. Treasury $ 1,983 $ 0 $ (53 ) $ 1,930 U.S. government and federal agency obligations 11,443 0 (351 ) 11,092 Government sponsored enterprises 46,773 4 (718 ) 46,059 Obligations of states and political subdivisions 42,054 38 (633 ) 41,459 Mortgage-backed securities: Residential - government agencies 131,243 35 (4,217 ) 127,061 Total available-for-sale securities $ 233,496 $ 77 $ (5,972 ) $ 227,601 December 31, 2017 U.S. Treasury $ 1,980 $ 0 $ (13 ) $ 1,967 U.S. government and federal agency obligations 12,341 0 (268 ) 12,073 Government sponsored enterprises 37,321 0 (424 ) 36,897 Obligations of states and political subdivisions 47,019 114 (477 ) 46,656 Mortgage-backed securities: Residential - government agencies 131,045 44 (2,140 ) 128,949 Total available-for-sale securities $ 229,706 $ 158 $ (3,322 ) $ 226,542 All of the Company’s investment securities are classified as available for sale. Agency bonds and notes, small business administration guaranteed loan certificates (SBA), residential and commercial agency mortgage-backed securities, and agency collateralized mortgage obligations (CMO) include securities issued by the Government National Mortgage Association (GNMA), a U.S. government agency, and the Federal National Mortgage Association (FNMA), the Federal Home Loan Mortgage Corporation (FHLMC) and the Federal Home Loan Bank (FHLB), which are U.S. government-sponsored enterprises. Other Investments and securities primarily consist of Federal Home Loan Bank stock, subordinated debt equity securities, and the Company’s interest in statutory trusts. These securities are reported at cost in the amount of $9.3 million and $11.0 million as of June 30, 2018 and December 31, 2017, respectively. Debt securities with carrying values aggregating approximately $187.3 million and $181.7 million at June 30, 2018 and December 31, 2017, respectively, were pledged to secure public funds, securities sold under agreements to repurchase, and for other purposes as required or permitted by law. The amortized cost and fair value of debt securities classified as available-for-sale at June 30, 2018, by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers have the right to call or prepay obligations with or without prepayment penalties. Amortized Fair ( in thousands) Cost Value Due in one year or less $ 12,173 $ 12,120 Due after one year through five years 68,835 68,187 Due after five years through ten years 18,243 17,287 Due after ten years 3,002 2,946 Total 102,253 100,540 Mortgage-backed securities 131,243 127,061 Total available-for-sale securities $ 233,496 $ 227,601 Gross unrealized losses on debt securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at June 30, 2018 and December 31, 2017 were as follows: Less than 12 months 12 months or more Total Total Fair Unrealized Fair Unrealized Fair Unrealized (in thousands) Value Losses Value Losses Value Losses At June 30, 2018 U.S. Treasury $ 1,930 $ (53 ) $ 0 $ 0 $ 1,930 $ (53 ) U.S. government and federal agency obligations 0 0 11,092 (351 ) 11,092 (351 ) Government sponsored enterprises 17,776 (260 ) 25,333 (458 ) 43,109 (718 ) Obligations of states and political subdivisions 22,974 (228 ) 12,371 (405 ) 35,345 (633 ) Mortgage-backed securities: Residential - government agencies 55,223 (1,367 ) 65,303 (2,850 ) 120,526 (4,217 ) Total $ 97,903 $ (1,908 ) $ 114,099 $ (4,064 ) $ 212,002 $ (5,972 ) (in thousands) At December 31, 2017 U.S. Treasury $ 1,967 $ (13 ) $ 0 $ 0 $ 1,967 $ (13 ) U.S. government and federal agency obligations 0 0 12,073 (268 ) 12,073 (268 ) Government sponsored enterprises 16,471 (119 ) 20,426 (305 ) 36,897 (424 ) Obligations of states and political subdivisions 22,013 (165 ) 12,570 (312 ) 34,583 (477 ) Mortgage-backed securities: Residential - government agencies 52,829 (488 ) 69,580 (1,652 ) 122,409 (2,140 ) Total $ 93,280 $ (785 ) $ 114,649 $ (2,537 ) $ 207,929 $ (3,322 ) The total available for sale portfolio consisted of approximately 369 securities at June 30, 2018. The portfolio included 322 securities having an aggregate fair value of $212.0 million that were in a loss position at June 30, 2018. Securities identified as temporarily impaired which had been in a loss position for 12 months or longer totaled $114.1 million at fair value. The $6.0 million aggregate unrealized loss included in accumulated other comprehensive income at June 30, 2018 was caused by interest rate fluctuations The total available for sale portfolio consisted of approximately 355 securities at December 31, 2017. The portfolio included 280 securities having an aggregate fair value of $207.9 million that were in a loss position at December 31, 2017. Securities identified as temporarily impaired which had been in a loss position for 12 months or longer had a fair value of $114.6 million at December 31, 2017. The $3.3 million aggregate unrealized loss included in accumulated other comprehensive loss at December 31, 2017 was caused by interest rate fluctuations. Because the decline in fair value is attributable to changes in interest rates and not credit quality, these investments were not considered other-than-temporarily impaired at June 30, 2018 and December 31, 2017, respectively. In the absence of changes in credit quality of these investments, the fair value is expected to recover on all debt securities as they approach their maturity date or re-pricing date, or if market yields for such investments decline. In addition, the Company does not have the intent to sell these investments over the period of recovery, and it is not more likely than not that the Company will be required to sell such investment securities. The table presents the components of investment securities gains and losses, which have been recognized in earnings: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2018 2017 2018 2017 Gains realized on sales $ 108 $ 0 $ 206 $ 0 Losses realized on sales 0 0 0 0 Other-than-temporary impairment recognized 0 0 0 0 Investment securities gains $ 108 $ 0 $ 206 $ 0 |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2018 | |
Intangible Assets | |
Intangible Assets | (5) Intangible Assets Mortgage Servicing Rights At June 30, 2018, the Company was servicing approximately $284.9 million of loans sold to the secondary market compared to $285.8 million at December 31, 2017, and $289.8 million at June 30, 2017. Mortgage loan servicing fees, reported as non-interest income, earned on loans sold were $210,000 and $413,000 for the three and six months ended June 30, 2018, respectively, compared to $211,000 and $420,000 for the three and six months ended June 30, 2017, respectively. The table below presents changes in mortgage servicing rights (MSRs) for the periods indicated. Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2018 2017 2018 2017 Balance at beginning of period $ 2,781 $ 2,877 $ 2,713 $ 2,584 Originated mortgage servicing rights 81 66 131 115 Changes in fair value: Due to change in model inputs and assumptions (1) 30 (56 ) 133 319 Other changes in fair value (2) (79 ) (121 ) (164 ) (252 ) Balance at end of period $ 2,813 $ 2,766 $ 2,813 $ 2,766 (1) The change in fair value resulting from changes in valuation inputs or assumptions used in the valuation model reflects the change in discount rates and prepayment speed assumptions primarily due to changes in interest rates. (2) Other changes in fair value reflect changes due to customer payments and passage of time. The following key data and assumptions were used in estimating the fair value of the Company’s MSRs as of June 30, 2018 and 2017, respectively: Six Months Ended June 30, 2018 2017 Weighted average constant prepayment rate 9.55 % 9.28 % Weighted average note rate 3.90 % 3.86 % Weighted average discount rate 10.34 % 9.75 % Weighted average expected life (in years) 6.10 6.10 |
Federal funds purchased and sec
Federal funds purchased and securities sold under agreements to repurchase | 6 Months Ended |
Jun. 30, 2018 | |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase [Abstract] | |
Federal funds purchased and securities sold under agreements to repurchase | (6) Federal funds purchased and securities sold under agreements to repurchase June 30, December 31, 2018 2017 Federal funds purchased $ 0 $ 0 Repurchase agreements 36,103 27,560 Total $ 36,103 $ 27,560 The Company offers a sweep account program whereby amounts in excess of an established limit are “swept” from the customer’s demand deposit account on a daily basis into retail repurchase agreements pursuant to individual repurchase agreements between the Company and its customers . . Repurchase Agreements Remaining Contractual Maturity of the Agreements Overnight Less Greater and than than (in thousands) continuous 90 days 90 days Total At June 30, 2018 U.S. Treasury $ 1,445 $ 0 $ 0 $ 1,445 Government sponsored enterprises 14,205 0 0 14,205 Asset-backed securities 20,453 0 0 20,453 Total $ 36,103 $ 0 $ 0 $ 36,103 At December 31, 2017 U.S. Treasury $ 1,964 $ 0 $ 0 $ 1,964 U.S. government and federal agency obligations 2,977 0 0 2,977 Government sponsored enterprises 8,382 0 0 8,382 Asset-backed securities 14,237 0 0 14,237 Total $ 27,560 $ 0 $ 0 $ 27,560 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income taxes | (7) Income Taxes Income taxes as a percentage of earnings before income taxes as reported in the consolidated financial statements were 7.2% and 11.3% for the three and six months ended June 30, 2018, respectively, compared to 33.9% and 34.1% for the three and six months ended June 30, 2017, respectively. As further described below, the decrease in tax rate for the comparative periods is primarily due to a decrease in the federal corporate tax rate, the release of the valuation allowance related to capital losses as a result of the Company’s tax planning initiatives, a pension contribution made during the second quarter of 2018 that was attributable to the 2017 plan year, and the Company’s additional tax planning initiatives. The federal corporate income tax rate declined from 34% to 21% effective January 1, 2018 as a result of the Tax Cuts and Jobs Act. The Company’s tax rate is lower than the federal statutory rate primarily as a result of tax-exempt income, the release of the valuation allowance related to capital loss carryforwards, and a pension contribution made during the second quarter of 2018 that was attributable to the 2017 plan year. The provisional adjustments recorded in the fourth quarter of 2017 related to the enactment of the Tax Cuts and Jobs Act have not been finalized as of June 30, 2018. The Company expects to finalize those adjustments within the one-year measurement period provided under Staff Accounting Bulletin No. 118 in regards to the application of FASB’s ASC Topic 740, Income Taxes The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income of the appropriate character during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning initiatives in making this assessment. In management’s opinion, the Company will more likely than not realize the benefits of its deferred tax assets and, therefore, has not established a valuation allowance against its deferred tax assets as of June 30, 2018. Management arrived at this conclusion based upon the level of historical taxable income and projections for future taxable income of the appropriate character over the periods in which the deferred tax assets are deductible. As indicated above, the Company released a $46,000 valuation allowance against certain capital loss carryforwards during the second quarter of 2018 as a result of the execution of certain tax planning initiatives that generated sufficient capital gain income prior to the expiration of the carryforwards. The Company follows ASC Topic 740, Income Taxes, . |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | (8) Stockholders’ Equity Accumulated Other Comprehensive Loss The following details the change in the components of the Company’s accumulated other comprehensive loss for the six months ended June 30, 2018 and 2017: Six months ended June 30, 2018 Unrecognized Net Accumulated Unrealized Pension and Other Gain (Loss) Postretirement Comprehensive (in thousands) on Securities (1) Costs (2) (Loss) Income Balance at beginning of period $ (2,500 ) $ (3,162 ) $ (5,662 ) Other comprehensive (loss) income, before reclassifications (2,730 ) 108 (2,622 ) Amounts reclassified from accumulated other comprehensive (loss) income 0 0 0 Current period other comprehensive (loss) income, before tax (2,730 ) 108 (2,622 ) Income tax expense (benefit) 573 (23 ) 550 Current period other comprehensive (loss) income, net of tax (2,157 ) 85 (2,072 ) Balance at end of period $ (4,657 ) $ (3,077 ) $ (7,734 ) Six months ended June 30, 2017 Unrecognized Net Accumulated Unrealized Pension and Other Gain (Loss) Postretirement Comprehensive (in thousands) on Securities (1) Costs (2) Loss Balance at beginning of period $ (1,936 ) $ (1,865 ) $ (3,801 ) Other comprehensive income, before reclassifications 1,452 45 1,497 Amounts reclassified from accumulated other comprehensive income (loss) 0 0 0 Current period other comprehensive income, before tax 1,452 45 1,497 Income tax expense (552 ) (18 ) (570 ) Current period other comprehensive income, net of tax 900 27 927 Balance at end of period $ (1,036 ) $ (1,838 ) $ (2,874 ) (1) The pre-tax amounts reclassified from accumulated other comprehensive loss are included in gain on sale of investment securities (2) The pre-tax amounts reclassified from accumulated other comprehensive loss are included in the computation of net periodic pension cost. |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2018 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | (9) Employee Benefit Plans Employee Benefits Employee benefits charged to operating expenses are summarized in the table below for the periods indicated. Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2018 2017 2018 2017 Payroll taxes $ 301 $ 288 $ 652 $ 644 Medical plans 612 468 1,160 894 401k match and profit sharing 237 226 423 476 Periodic pension cost 405 335 810 671 Other 10 9 25 25 Total employee benefits $ 1,565 $ 1,326 $ 3,070 $ 2,710 The Company’s profit-sharing plan includes a matching 401k portion, in which the Company matches the first 3% of eligible employee contributions. The Company made annual contributions in an amount up to 6% of income before income taxes and before contributions to the profit-sharing and pension plans for all participants, limited to the maximum amount deductible for federal income tax purposes, for each of the periods shown. In addition, employees were able to make additional tax-deferred contributions. Pension The Company provides a noncontributory defined benefit pension plan for all full-time employees. Beginning January 1, 2018 and for all retrospective periods presented, the Company adopted the guidance under ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost Components of Net Pension Cost and Other Amounts Recognized in Accumulated Other Comprehensive Income The following items are components of net pension cost for the periods indicated: Pension Benefits (in thousands) 2018 2017 Service cost - benefits earned during the year $ 1,620 $ 1,343 Interest costs on projected benefit obligations (a) 1,033 1,009 Expected return on plan assets (a) (1,267 ) (1,124 ) Expected administrative expenses (a) 93 88 Amortization of prior service cost (a) 79 79 Amortization of unrecognized net loss (a) 138 11 Net periodic pension cost $ 1,696 $ 1,406 Net periodic pension cost for the three months ended June 30, (actual) $ 405 $ 335 Net periodic pension cost for the six months ended June 30, (actual) $ 810 $ 671 (a) The components of net periodic pension cost other than the service cost component are included in other non-interest expense. |
Stock Compensation
Stock Compensation | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Compensation | (10) Stock Compensation The Company has one equity compensation plan for its employees pursuant to which options were granted. The following table summarizes the Company’s stock option activity: Weighted Weighted Average Aggregate Number average Contractual Intrinsic of Exercise Term Value Shares Price (in years) ($000) Outstanding, beginning of period 20,909 $ 14.20 Granted 0 0.00 Exercised 0 0.00 Forfeited or expired 0 0.00 Outstanding, June 30, 2018 20,909 $ 14.20 0.23 $ 160,975 Exercisable, June 30, 2018 20,909 $ 14.20 0.23 $ 160,975 Options have been adjusted to reflect a 4% stock dividend paid on July 1, 2018. Total stock-based compensation expense was $0 for the three and six months ended June 30, 2018 compared to $1,000 and $2,000 for the three and six months ended June 30, 2017, respectively. As of December 31, 2017, there was no remaining unrecognized compensation expense related to non-vested stock awards. The Plan expired on February 28, 2010, except as to outstanding options under the Plan, and no further options may be granted pursuant to the Plan. |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per Share | (11) Earnings per Share Stock Dividend Basic earnings per share is computed by dividing income available to shareholders by the weighted average number of shares outstanding during the year. Diluted earnings per share gives effect to all dilutive potential shares that were outstanding during the year. Presented below is a summary of the components used to calculate basic and diluted earnings per common share, which have been restated for all stock dividends: Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands, except per share data) 2018 2017 2018 2017 Basic earnings per share: Net income available to shareholders $ 2,907 $ 1,919 $ 4,997 $ 4,020 Average shares outstanding 6,021,038 6,070,080 6,024,851 6,070,749 Basic earnings per share $ 0.48 $ 0.32 $ 0.83 $ 0.66 Diluted earnings per share: Net income available to shareholders $ 2,907 $ 1,919 $ 4,997 $ 4,020 Average shares outstanding 6,021,038 6,070,080 6,024,851 6,070,749 Effect of dilutive stock options 6,883 5,141 6,442 5,157 Average shares outstanding including dilutive stock options 6,027,921 6,075,221 6,031,293 6,075,906 Diluted earnings per share $ 0.48 0.32 $ 0.83 0.66 Under the treasury stock method, outstanding stock options are dilutive when the average market price of the Company’s common stock, when combined with the effect of any unamortized compensation expense, exceeds the option price during the period, except when the Company has a loss from continuing operations available to shareholders. In addition, proceeds from the assumed exercise of dilutive options along with the related tax benefit are assumed to be used to repurchase common shares at the average market price of such stock during the period. There were no outstanding stock options for any of the three and six months ended June 30, 2018 and 2017, respectively, that were omitted from the computation of diluted earnings per share as a result of being considered anti-dilutive. Repurchase Program |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (12) Fair Value Measurements Fair value represents the amount expected to be received to sell an asset or paid to transfer a liability in its principal or most advantageous market in an orderly transaction between market participants at the measurement date. Depending on the nature of the asset or liability, the Company uses various valuation methodologies and assumptions to estimate fair value. The measurement of fair value under US GAAP uses a hierarchy intended to maximize the use of observable inputs and minimize the use of unobservable inputs. This hierarchy uses three levels of inputs to measure the fair value of assets and liabilities as follows. As of June 30, 2018 and December 31, 2017, respectively, there were no transfers into or out of Levels 1-3. The fair value hierarchy is as follows: Level 1 – Inputs are unadjusted quoted prices for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and is used to measure fair value whenever available. A contractually binding sales price also provides reliable evidence of fair value. Level 2 – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets and liabilities in active markets, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 – Inputs are unobservable inputs for the asset or liability and significant to the fair value. These may be internally developed using the Company’s best information and assumptions that a market participant would consider. In accordance with fair value accounting guidance, the Company measures, records, and reports various types of assets and liabilities at fair value on either a recurring or non-recurring basis in the Consolidated Financial Statements. Nonfinancial assets measured at fair value on a nonrecurring basis would include foreclosed real estate, long-lived assets, and core deposit intangible assets, which are reviewed when circumstances or other events indicate that impairment may have occurred. Valuation Methods for Assets and Labilities Measured at Fair Value on a Recurring Basis Following is a description of the Company’s valuation methodologies used for assets and liabilities recorded at fair value on a recurring basis: Available-for-Sale Securities The fair value measurements of the Company’s investment securities are determined by a third party pricing service which considers observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. The fair value measurements are subject to independent verification to another pricing source by management each quarter for reasonableness. Mortgage Servicing Rights The fair value of mortgage servicing rights is based on the discounted value of estimated future cash flows utilizing contractual cash flows, servicing rate, constant prepayment rate, servicing cost, and discount rate factors. Accordingly, the fair value is estimated based on a valuation model that calculates the present value of estimated future net servicing income. The model incorporates assumptions that market participants use in estimating future net servicing income, including estimates of prepayment speeds, market discount rates, cost to service, float earnings rates, and other ancillary income, including late fees. The valuation models estimate the present value of estimated future net servicing income. The Company classifies its servicing rights as Level 3. Fair Value Measurements Quoted Prices in Active Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs (in thousands) Fair Value (Level 1) (Level 2) (Level 3) June 30, 2018 Assets: U.S. Treasury $ 1,930 $ 1,930 0 $ 0 U.S. government and federal agency obligations 11,092 0 11,092 0 Government sponsored enterprises 46,059 0 46,059 0 Obligations of states and political subdivisions 41,459 0 41,459 0 Mortgage-backed securities 127,061 0 127,061 0 Mortgage servicing rights 2,813 0 0 2,813 Total $ 230,414 $ 1,930 $ 225,671 $ 2,813 December 31, 2017 Assets: U.S. Treasury $ 1,967 $ 1,967 0 $ 0 U.S. government and federal agency obligations 12,073 0 12,073 0 Government sponsored enterprises 36,897 0 36,897 0 Obligations of states and political subdivisions 46,656 0 46,656 0 Mortgage-backed securities 128,949 0 128,949 0 Mortgage servicing rights 2,713 0 0 2,713 Total $ 229,255 $ 1,967 $ 224,575 $ 2,713 The changes in Level 3 assets and liabilities measured at fair value on a recurring basis are summarized as follows: Fair Value Measurements Using Fair Value Measurements Using Significant Unobservable Inputs Significant Unobservable Inputs (Level 3) (Level 3) Mortgage Servicing Rights Mortgage Servicing Rights (in thousands) Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Balance at beginning of period $ 2,781 $ 2,877 $ 2,713 $ 2,584 Total gains or losses (realized/unrealized): Included in earnings (49 ) (177 ) (31 ) 67 Included in other comprehensive income 0 0 0 0 Purchases 0 0 0 0 Sales 0 0 0 0 Issues 81 66 131 115 Settlements 0 0 0 0 Balance at end of period $ 2,813 $ 2,766 $ 2,813 $ 2,766 The change in valuation of mortgage servicing rights arising from inputs and assumptions increased $30,000 and $133,000 for the three and six months ended June 30, 2018, respectively, compared to a decrease of $56,000 and an increase of $319,000 for the three and six months ended June 30, 2017, respectively. Valuation methods for Assets and Liabilities measured at fair value on a nonrecurring basis Following is a description of the Company’s valuation methodologies used for assets and liabilities recorded at fair value on a nonrecurring basis: Collateral dependent impaired loans While the overall loan portfolio is not carried at fair value, the Company periodically records nonrecurring adjustments to the carrying value of loans based on fair value measurements for partial charge-offs of the uncollectible portions of those loans. Nonrecurring adjustments also include certain impairment amounts for collateral dependent loans when establishing the allowance for loan losses. Such amounts are generally based on the fair value of the underlying collateral supporting the loan. In determining the value of real estate collateral, the Company relies on external and internal appraisals of property values depending on the size and complexity of the real estate collateral. The Company maintains staff that is trained to perform in-house evaluations and also review third party appraisal reports for reasonableness. In the case of non-real estate collateral, reliance is placed on a variety of sources, including external estimates of value and judgments based on the experience and expertise of internal specialists. Values of all loan collateral are regularly reviewed by senior loan committee. Because many of these inputs are not observable, the measurements are classified as Level 3. As of June 30, 2018, the Company identified $4.2 million in collateral dependent impaired loans that had specific allowances for losses aggregating $911,000. Related to these loans, there was $192,000 and $250,000 in charge-offs recorded during the three and six months ended June 30, 2018, respectively. As of June 30, 2017, the Company identified $3.0 million in collateral dependent impaired loans that had specific allowances for losses aggregating $755,000. Related to these loans, there was $63,000 and $83,000 in charge-offs recorded during the three and six months ended June 30, 2017, respectively. Other Real Estate and Foreclosed Assets Other real estate owned (OREO) and foreclosed assets consisted of loan collateral that has been repossessed through foreclosure. This collateral is comprised of commercial and residential real estate and other non-real estate property, including autos, manufactured homes, and construction equipment. Subsequent to foreclosure, these assets initially are carried at fair value of the collateral less estimated selling costs. Fair value, when recorded, is generally based upon appraisals by approved, independent state certified appraisers. Like impaired loans, appraisals on OREO may be discounted based on the Company’s historical knowledge, changes in market conditions from the time of appraisal or other information available. During the holding period, valuations are updated periodically, and the assets may be written down to reflect a new cost basis. Because many of these inputs are not observable, the measurements are classified as Level 3. Fair Value Measurements Using Quoted Prices Three Six in Active Months Months Markets for Other Significant Ended Ended Identical Observable Unobservable June 30, June 30, Total Assets Inputs Inputs Total Gains Total Gains (in thousands) Fair Value (Level 1) (Level 2) (Level 3) (Losses)* (Losses)* June 30, 2018 Assets: Collateral dependent impaired loans: Commercial, financial, & agricultural $ 1,648 $ 0 $ 0 $ 1,648 $ (166 ) $ (166 ) Real estate construction - commercial 169 0 0 169 0 (27 ) Real estate mortgage - residential 998 0 0 998 (12 ) (12 ) Real estate mortgage - commercial 337 0 0 337 0 (20 ) Consumer 137 0 0 137 (14 ) (25 ) Total $ 3,289 $ 0 $ 0 $ 3,289 $ (192 ) $ (250 ) Other real estate and foreclosed assets $ 13,236 $ 0 $ 0 $ 13,236 $ (27 ) $ (26 ) June 30, 2017 Assets: Collateral dependent impaired loans: Commercial, financial, & agricultural $ 523 $ 0 $ 0 $ 523 $ 0 $ (1 ) Real estate mortgage - residential 1,488 0 0 1,488 (62 ) (65 ) Real estate mortgage - commercial 220 0 0 220 0 (4 ) Consumer 0 0 0 0 (1 ) (13 ) Total $ 2,231 $ 0 $ 0 $ 2,231 $ (63 ) $ (83 ) Other real estate and foreclosed assets $ 13,356 $ 0 $ 0 $ 13,356 $ (195 ) $ (180 ) * Total gains (losses) reported for other real estate and foreclosed assets includes charge-offs, valuation write downs, and net losses taken during the periods reported. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2018 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
Fair Value of Financial Instruments | (13) Fair Value of Financial Instruments The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate such value: Loans Fair values are estimated for portfolios with similar financial characteristics. Loans are segregated by type, such as commercial, real estate, and consumer. Each loan category is further segmented into fixed and variable interest rate categories. The fair value of loans is estimated by using the future value of discounted cash flows using comparable market rates for similar types of loan products and adjusted for market factors. The discount rates used are estimated using comparable market rates for similar types of loan products adjusted to be commensurate with the credit risk, overhead costs, and optionality of such instruments. Investment Securities A detailed description of the fair value measurement of the debt instruments in the available-for-sale sections of the investment security portfolio is provided in the Fair Value Measurement Investment Securities Federal Home Loan Bank (FHLB) Stock Ownership of equity securities of FHLB is restricted and there is no established market for their resale. The carrying amount is a reasonable estimate of fair value. Federal Funds Sold, Cash, and Due from Banks The carrying amounts of short-term federal funds sold, interest earning deposits with banks, and cash and due from banks approximate fair value. Federal funds sold classified as short-term generally mature in 90 days or less. Certificates of Deposit in other banks Certificates of deposit are other investments made by the Company with other financial institutions that are carried at cost. Mortgage Servicing Rights The fair value of mortgage servicing rights is based on the discounted value of estimated future cash flows utilizing contractual cash flows, servicing rate, constant prepayment rate, servicing cost, and discount rate factors. Accordingly, the fair value is estimated based on a valuation model that calculates the present value of estimated future net servicing income. The model incorporates assumptions that market participants use in estimating future net servicing income, including estimates of prepayment speeds, market discount rates, cost to service, float earnings rates, and other ancillary income, including late fees. Cash Surrender Value - Life Insurance The fair value of Bank owned life insurance (BOLI) approximates the carrying amount. Upon liquidation of these investments, the Company would receive the cash surrender value which equals the carrying amount. Accrued Interest Receivable and Payable For accrued interest receivable and payable, the carrying amount is a reasonable estimate of fair value because of the short maturity for these financial instruments. Deposits The fair value of deposits with no stated maturity, such as noninterest-bearing demand, NOW accounts, savings, and money market, is equal to the amount payable on demand. The fair value of time deposits is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. Securities Sold under Agreements to Repurchase For securities sold under agreements to repurchase, the carrying amount is a reasonable estimate of fair value, as such instruments reprice in a short time period. Subordinated Notes and Other Borrowings The fair value of subordinated notes and other borrowings is based on the discounted value of contractual cash-flows. The discount rate is estimated using the rates currently offered for other borrowed money of similar remaining maturities. A summary of the carrying amounts and fair values of the Company’s financial instruments at June 30, 2018 and December 31, 2017 is as follows: June 30, 2018 Fair Value Measurements Quoted Prices in Active Net Markets for Other Significant June 30, 2018 Identical Observable Unobservable Carrying Fair Assets Inputs Inputs (in thousands) amount value (Level 1) (Level 2) (Level 3) Assets: Cash and due from banks $ 15,921 $ 15,921 $ 15,921 $ 0 $ 0 Federal funds sold and overnight interest-bearing deposits 34,863 34,863 34,863 0 0 Certificates of deposit in other banks 10,746 10,746 10,746 0 0 Investment in available-for-sale securities 227,601 227,601 1,930 225,671 0 Loans, net 1,082,983 1,061,707 0 0 1,061,707 Investment in FHLB stock 4,676 4,676 0 4,676 0 Mortgage servicing rights 2,813 2,813 0 0 2,813 Cash surrender value - life insurance 2,516 2,516 0 2,516 0 Accrued interest receivable 5,294 5,294 5,294 0 0 $ 1,387,413 $ 1,366,137 $ 68,754 $ 232,863 $ 1,064,520 Liabilities: Deposits: Non-interest bearing demand $ 250,232 $ 250,232 $ 250,232 $ 0 $ 0 Savings, interest checking and money market 614,976 614,976 614,976 0 0 Time deposits 318,178 315,242 0 0 315,242 Federal funds purchased and securities sold under agreements to repurchase 36,103 36,103 36,103 0 0 Federal Home Loan Bank advances and other borrowings 74,270 73,846 0 73,846 0 Subordinated notes 49,486 44,146 0 44,146 0 Accrued interest payable 790 790 790 0 0 $ 1,344,035 $ 1,335,335 $ 902,101 $ 117,992 $ 315,242 December 31, 2017 Fair Value Measurements Quoted Prices in Active Net Markets for Other Significant December 31, 2017 Identical Observable Unobservable Carrying Fair Assets Inputs Inputs (in thousands) amount value (Level 1) (Level 2) (Level 3) Assets: Cash and due from banks $ 23,325 $ 23,325 $ 23,325 $ 0 $ 0 Federal funds sold and overnight interest-bearing deposits 39,553 39,553 39,553 0 0 Certificates of deposit in other banks 3,460 3,460 3,460 0 0 Investment in available-for-sale securities 226,542 226,542 1,967 224,575 0 Loans, net 1,057,580 1,058,153 0 0 1,058,153 Investment in FHLB stock 6,390 6,390 0 6,390 0 Mortgage servicing rights 2,713 2,713 0 0 2,713 Cash surrender value - life insurance 2,484 2,484 0 2,484 0 Accrued interest receivable 5,627 5,627 5,627 0 0 $ 1,367,674 $ 1,368,247 $ 73,932 $ 233,449 $ 1,060,866 Liabilities: Deposits: Non-interest bearing demand $ 245,380 $ 245,380 $ 245,380 $ 0 $ 0 Savings, interest checking and money market 584,468 584,468 584,468 0 0 Time deposits 295,964 294,778 0 0 294,778 Federal funds purchased and securities sold under agreements to repurchase 27,560 27,560 27,560 0 0 Federal Home Loan Bank advances and other borrowings 121,382 121,291 0 121,291 0 Subordinated notes 49,486 39,692 0 39,692 0 Accrued interest payable 554 554 554 0 0 $ 1,324,794 $ 1,313,723 $ 857,962 $ 160,983 $ 294,778 Off-Balance Sheet Financial Instruments The fair value of commitments to extend credit and standby letters of credit is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements, the likelihood of the counterparties drawing on such financial instruments, and the present creditworthiness of such counterparties. The Company believes such commitments have been made on terms that are competitive in the markets in which it operates. Limitations The fair value estimates provided are made at a point in time based on market information and information about the financial instruments. Because no market exists for a portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the fair value estimates. |
Repurchase Reserve Liability
Repurchase Reserve Liability | 6 Months Ended |
Jun. 30, 2018 | |
Repurchase Reserve Liability [Abstract] | |
Repurchase Reserve Liability | (14) Repurchase Reserve Liability The Company’s repurchase reserve liability for estimated losses incurred on sold loans was $160,000 at both June 30, 2018 and December 31, 2017. This liability represents management’s estimate of the potential repurchase or make-whole liability for residential mortgage loans originated for sale that may arise from representation and warranty claims that could relate to a variety of issues, including but not limited to, misrepresentation of facts, appraisal issues, or program requirements that may not meet investor guidelines. At June 30, 2018, the Company was servicing 2,726 loans sold to the secondary market with a balance of approximately $284.9 million compared to 2,773 loans sold with a balance of approximately $285.8 million at December 31, 2017, and 2,826 loans sold with a balance of approximately $289.8 million at June 30, 2017. Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2018 2017 2018 2017 Balance at beginning of year $ 160 $ 160 $ 160 $ 160 Provision for repurchase liability 0 0 0 0 Reimbursement of expenses 0 0 0 0 Balance at end of year $ 160 $ 160 $ 160 $ 160 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (15) Commitments and Contingencies The Company issues financial instruments with off-balance-sheet risk in the normal course of business of meeting the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments may involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the consolidated balance sheets. The Company’s extent of involvement and maximum potential exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of these instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for financial instruments included on its consolidated balance sheets. At June 30, 2018, no amounts have been accrued for any estimated losses for these financial instruments. The contractual amount of off-balance-sheet financial instruments were as follows as of the dates indicated: June 30, December 31, (in thousands) 2018 2017 Commitments to extend credit $ 235,159 $ 238,527 Commitments to originate residential first and second mortgage loans 2,554 1,471 Standby letters of credit 77,276 74,004 Total 314,989 314,002 Commitments Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since certain of the commitments and letters of credit are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the customer. Collateral held varies, but may include accounts receivable, inventory, furniture and equipment, and real estate. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. These standby letters of credit are primarily issued to support contractual obligations of the Company’s customers. The approximate remaining term of standby letters of credit range from one month to five years at June 30, 2018. Pending Litigation The Company and its subsidiaries are defendants in various legal actions incidental to the Company’s past and current business activities. Based on the Company’s analysis, and considering the inherent uncertainties associated with litigation, management does not believe that it is reasonably possible that these legal actions will materially adversely affect the Company’s consolidated financial condition or results of operations in the near term. The Company records a loss accrual for all legal matters for which it deems a loss is probable and can be reasonably estimated. Some legal matters, which are at early stages in the legal process, have not yet progressed to the point where a loss is deemed probable or an amount can be estimated. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2018 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | (16) Revenue Recognition On January 1, 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) Summary of Significant Accounting Policies Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain noninterest income streams such as fees associated with mortgage servicing rights, financial guarantees, derivatives, and certain credit card fees are also not in the scope of the new guidance. Topic 606 is applicable to noninterest revenue streams such as trust department revenue, service charges and fees, debit card income, ATM surcharge income, and sales of other real estate owned. However, the recognition of these revenue streams did not change significantly upon adoption of Topic 606. Noninterest revenue streams within the scope of Topic 606 are discussed below. Trust Department Revenue Trust and asset management income is primarily comprised of fees earned from the management and administration of trusts and other customer assets. The Company’s performance obligation is generally satisfied over time and the resulting fees are recognized monthly, based upon the month-end market value of the assets under management and the applicable fee rate. Payment is generally received a few days after month end through a direct charge to customers’ accounts. The Company does not earn performance-based incentives. Optional services such as real estate sales and tax return preparation services are also available to existing trust and asset management customers. The Company’s performance obligation for these transactional-based services is generally satisfied, and related revenue recognized, at a point in time (i.e., as incurred). Payment is received shortly after services are rendered. Service Charges on Deposit Accounts Service charges on deposit accounts consist of account analysis fees (i.e., net fees earned on analyzed business and public checking accounts), monthly service fees, check orders, and other deposit account related fees. The Company’s performance obligation for account analysis fees and monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Check orders and other deposit account related fees are largely transactional based, and therefore, the Company’s performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers’ accounts. Fees, Exchange, and Other Service Charges Fees, exchange, and other service charges are primarily comprised of debit and credit card income, ATM fees, merchant services income, and other service charges. Debit and credit card income is primarily comprised of interchange fees earned whenever the Company’s debit and credit cards are processed through card payment networks such as Visa. ATM fees are primarily generated when a Company cardholder uses a non-Company ATM or a non-Company cardholder uses a Company ATM. Merchant services income mainly represents fees charged to merchants to process their debit and credit card transactions, in addition to account management fees. Other service charges include revenue from processing wire transfers, bill pay service, cashier’s checks, and other services. The Company’s performance obligation for fees, exchange, and other service charges are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month. Gains/Losses on Sales of Other Real Estate Owned (OREO) The Company records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of OREO to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Company adjusts the transaction price and related gain (loss) on sale if a significant financing component is present. Two OREO sales for the six months ended June 30, 2018 and two sales for the six months ended June 30, 2017 were financed by the Bank, which financings were consistent with market terms. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Stock Dividend | Stock Dividend |
New accounting principles adopted in 2018 | The following represents significant new accounting principles adopted in 2018: Revenue from Contracts with Customers Revenue from Contracts with Customers (Topic 606) Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain noninterest income streams such as fees associated with mortgage servicing rights, financial guarantees, derivatives, and certain credit card fees are also not in scope of the new guidance. Topic 606 is applicable to noninterest revenue streams such as trust department revenue, service charges and fees, debit card income, ATM surcharge income, and other real estate owned sales. However, the recognition of these revenue streams did not change significantly upon adoption of Topic 606. Noninterest revenue streams within the scope of Topic 606 are discussed in Footnote 16. Financial Instruments Recognition and Measurement of Financial Assets and Financial Liabilities The FASB issued ASU 2018-04, Investments - Debt Securities (Topic 320) and Regulated Operations (Topic 980) Liabilities Recognition of Breakage for Certain Prepaid Store-Value Products Pension Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost |
Loans and Allowance for Loan 25
Loans and Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Schedule of summary of loans, by major class within the Company's loan portfolio | June 30, December 31, (in thousands) 2018 2017 Commercial, financial, and agricultural $ 200,628 $ 192,238 Real estate construction - residential 28,285 26,492 Real estate construction - commercial 106,406 98,340 Real estate mortgage - residential 246,415 246,754 Real estate mortgage - commercial 479,571 472,455 Installment and other consumer 32,890 32,153 Total loans $ 1,094,195 $ 1,068,432 |
Schedule of summary of the allowance for loan losses | Three Months Ended June 30, 2018 Commercial, Real Estate Real Estate Real Estate Real Estate Installment Financial, & Construction - Construction - Mortgage - Mortgage - and Other Un- (in thousands) Agricultural Residential Commercial Residential Commercial Consumer allocated Total Balance at beginning of period $ 3,261 $ 240 $ 895 $ 2,057 $ 4,008 $ 352 $ 134 $ 10,947 Additions: Provision for loan losses 865 (52 ) 10 48 (388 ) 90 (123 ) 450 Deductions: Loans charged off 193 0 0 12 15 49 0 269 Less recoveries on loans (10 ) (13 ) 0 (16 ) (25 ) (20 ) 0 (84 ) Net loan charge-offs (recoveries) 183 (13 ) 0 (4 ) (10 ) 29 0 185 Balance at end of period $ 3,943 $ 201 $ 905 $ 2,109 $ 3,630 $ 413 $ 11 $ 11,212 Six Months Ended June 30, 2018 Commercial, Real Estate Real Estate Real Estate Real Estate Installment Financial, & Construction - Construction - Mortgage - Mortgage - and Other Un- (in thousands) Agricultural Residential Commercial Residential Commercial Consumer allocated Total Balance at beginning of period $ 3,325 $ 170 $ 807 $ 1,689 $ 4,437 345 $ 79 $ 10,852 Additions: Provision for loan losses 898 54 128 416 (809 ) 131 (68 ) 750 Deductions: Loans charged off 303 48 30 32 29 106 0 548 Less recoveries on loans (23 ) (25 ) 0 (36 ) (31 ) (43 ) 0 (158 ) Net loan charge-offs (recoveries) 280 23 30 (4 ) (2 ) 63 0 390 Balance at end of period $ 3,943 $ 201 $ 905 $ 2,109 $ 3,630 $ 413 $ 11 $ 11,212 Three Months Ended June 30, 2017 Commercial, Real Estate Real Estate Real Estate Real Estate Installment Financial, & Construction - Construction - Mortgage - Mortgage - and Other Un- (in thousands) Agricultural Residential Commercial Residential Commercial Consumer allocated Total Balance at beginning of period $ 2,360 $ 99 $ 579 $ 2,125 $ 4,731 $ 322 $ 46 $ 10,262 Additions: Provision for loan losses 226 (54 ) 36 (230 ) 139 89 124 330 Deductions: Loans charged off 32 0 0 62 2 60 0 156 Less recoveries on loans (24 ) (25 ) 0 (21 ) (14 ) (25 ) 0 (109 ) Net loan charge-offs (recoveries) 8 (25 ) 0 41 (12 ) 35 0 47 Balance at end of period $ 2,578 $ 70 $ 615 $ 1,854 $ 4,882 $ 376 $ 170 $ 10,545 Six Months Ended June 30, 2017 Commercial, Real Estate Real Estate Real Estate Real Estate Installment Financial, & Construction - Construction - Mortgage - Mortgage - and Other Un- (in thousands) Agricultural Residential Commercial Residential Commercial Consumer allocated Total Balance at beginning of period $ 2,753 $ 108 $ 413 $ 2,385 $ 3,793 274 $ 160 $ 9,886 Additions: Provision for loan losses (157 ) (113 ) 202 (507 ) 1,084 161 10 680 Deductions: Loans charged off 60 0 0 81 16 111 0 268 Less recoveries on loans (42 ) (75 ) 0 (57 ) (21 ) (52 ) 0 (247 ) Net loan charge-offs (recoveries) 18 (75 ) 0 24 (5 ) 59 0 21 Balance at end of period $ 2,578 $ 70 $ 615 $ 1,854 $ 4,882 $ 376 $ 170 $ 10,545 |
Schedule of allowance for loan losses by impairment | Commercial, Real Estate Real Estate Real Estate Real Estate Installment Financial, and Construction - Construction - Mortgage - Mortgage - and Other Un- (in thousands) Agricultural Residential Commercial Residential Commercial Consumer allocated Total June 30, 2018 Allowance for loan losses: Individually evaluated for impairment $ 410 $ 0 $ 0 $ 668 $ 185 $ 19 $ 0 $ 1,282 Collectively evaluated for impairment 3,533 201 905 1,441 3,445 394 11 9,930 Total $ 3,943 $ 201 $ 905 $ 2,109 $ 3,630 $ 413 $ 11 $ 11,212 Loans outstanding: Individually evaluated for impairment $ 2,887 $ 0 $ 169 $ 5,186 $ 1,705 $ 304 $ 0 $ 10,251 Collectively evaluated for impairment 197,741 28,285 106,237 241,229 477,866 32,586 0 1,083,944 Total $ 200,628 $ 28,285 $ 106,406 $ 246,415 $ 479,571 $ 32,890 $ 0 $ 1,094,195 December 31, 2017 Allowance for loan losses: Individually evaluated for impairment $ 500 $ 0 $ 48 $ 521 $ 243 $ 21 $ 0 $ 1,333 Collectively evaluated for impairment 2,825 170 759 1,168 4,194 324 79 9,519 Total $ 3,325 $ 170 $ 807 $ 1,689 $ 4,437 $ 345 $ 79 $ 10,852 Loans outstanding: Individually evaluated for impairment $ 3,007 $ 0 $ 97 $ 5,072 $ 2,004 $ 176 $ 0 $ 10,356 Collectively evaluated for impairment 189,231 26,492 98,243 241,682 470,451 31,977 0 1,058,076 Total $ 192,238 $ 26,492 $ 98,340 $ 246,754 $ 472,455 $ 32,153 $ 0 $ 1,068,432 |
Schedule of impaired loans | June 30, December 31, (in thousands) 2018 2017 Non-accrual loans $ 6,311 $ 5,672 Performing TDRs 3,940 4,684 Total impaired loans $ 10,251 $ 10,356 Unpaid Recorded Principal Specific (in thousands) Investment Balance Reserves June 30, 2018 With no related allowance recorded: Commercial, financial and agricultural $ 1,282 $ 1,351 $ 0 Real estate - construction residential 0 0 0 Real estate - construction commercial 169 188 0 Real estate - residential 993 1,048 0 Real estate - commercial 753 753 0 Consumer 137 137 0 Total $ 3,334 $ 3,477 $ 0 With an allowance recorded: Commercial, financial and agricultural $ 1,605 $ 1,927 $ 410 Real estate - construction residential 0 0 0 Real estate - residential 4,193 4,287 668 Real estate - commercial 952 1,078 185 Installment and other consumer 167 189 19 Total $ 6,917 $ 7,481 $ 1,282 Total impaired loans $ 10,251 $ 10,958 $ 1,282 Unpaid Recorded Principal Specific (in thousands) Investment Balance Reserves December 31, 2017 With no related allowance recorded: Commercial, financial and agricultural $ 1,393 $ 1,445 $ 0 Real estate - residential 674 688 0 Real estate - commercial 366 395 0 Total $ 2,433 $ 2,528 $ 0 With an allowance recorded: Commercial, financial and agricultural $ 1,614 $ 1,834 $ 500 Real estate - construction commercial 97 97 48 Real estate - residential 4,398 4,500 521 Real estate - commercial 1,638 1,743 243 Consumer 176 196 21 Total $ 7,923 $ 8,370 $ 1,333 Total impaired loans $ 10,356 $ 10,898 $ 1,333 Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Interest Interest Interest Interest Average Recognized Average Recognized Average Recognized Average Recognized Recorded For the Recorded For the Recorded For the Recorded For the (in thousands) Investment Period Ended Investment Period Ended Investment Period Ended Investment Period Ended With no related allowance recorded: Commercial, financial and agricultural $ 1,153 $ 0 $ 464 $ -1 $ 1,302 $ 1 $ 519 $ 0 Real estate - construction commercial 113 0 0 0 42 0 0 0 Real estate - residential 933 3 852 3 900 6 912 7 Real estate - commercial 116 10 395 -2 237 19 500 0 Installment and other consumer 137 0 2 0 34 0 31 0 Total $ 2,452 $ 13 $ 1,713 $ 0 $ 2,515 $ 26 $ 1,962 $ 7 With an allowance recorded: Commercial, financial and agricultural $ 1,621 $ 8 $ 1,214 $ 8 $ 1,737 $ 15 $ 1,199 $ 19 Real estate - construction residential 20 0 0 0 15 0 0 0 Real estate - construction commercial 0 0 48 0 24 0 49 0 Real estate - residential 4,118 14 4,790 42 4,247 47 4,595 87 Real estate - commercial 1,732 5 1,604 14 1,691 10 1,505 29 Installment and other consumer 172 1 51 0 167 1 48 0 Total $ 7,663 $ 28 $ 7,707 $ 64 $ 7,881 $ 73 $ 7,396 $ 135 Total impaired loans $ 10,115 $ 41 $ 9,420 $ 64 $ 10,396 $ 99 $ 9,358 $ 142 |
Schedule of aging information for the Company's past due and non-accrual loans | Current or 90 Days Less Than Past Due 30 Days 30 - 89 Days And Still (in thousands) Past Due Past Due Accruing Non-Accrual Total June 30, 2018 Commercial, Financial, and Agricultural $ 197,928 $ 271 $ 0 $ 2,429 $ 200,628 Real Estate Construction - Residential 28,285 0 0 0 28,285 Real Estate Construction - Commercial 106,237 0 0 169 106,406 Real Estate Mortgage - Residential 242,937 695 8 2,775 246,415 Real Estate Mortgage - Commercial 478,383 535 0 653 479,571 Installment and Other Consumer 32,363 208 34 285 32,890 Total $ 1,086,133 $ 1,709 $ 42 $ 6,311 $ 1,094,195 December 31, 2017 Commercial, Financial, and Agricultural $ 189,537 $ 192 $ 2 $ 2,507 $ 192,238 Real Estate Construction - Residential 25,930 287 275 0 26,492 Real Estate Construction - Commercial 98,243 0 0 97 98,340 Real Estate Mortgage - Residential 242,597 2,173 28 1,956 246,754 Real Estate Mortgage - Commercial 471,476 43 0 936 472,455 Installment and Other Consumer 31,715 239 23 176 32,153 Total $ 1,059,498 $ 2,934 $ 328 $ 5,672 $ 1,068,432 |
Schedule of risk categories by class | (in thousands) Commercial, Real Estate Real Estate Real Real Estate Installment Total At June 30, 2018 Watch $ 7,378 $ 598 $ 3,581 $ 8,584 $ 33,482 $ 9 $ 53,632 Substandard 94 0 0 1,371 718 6 2,189 Performing TDRs 458 0 0 2,410 1,053 19 3,940 Non-accrual 2,429 0 169 2,775 653 285 6,311 Total $ 10,359 $ 598 $ 3,750 $ 15,140 $ 35,906 $ 319 $ 66,072 At December 31, 2017 Watch $ 9,868 $ 1,459 $ 1,284 $ 9,978 $ 49,197 $ 0 $ 71,786 Substandard 658 462 0 2,262 723 16 4,121 Performing TDRs 500 0 0 3,116 1,068 0 4,684 Non-accrual 2,507 0 97 1,956 936 176 5,672 Total $ 13,533 $ 1,921 $ 1,381 $ 17,312 $ 51,924 $ 192 $ 86,263 |
Schedule of summary of loans that were modified as TDRs | Six Months Ended June 30, 2018 2017 Recorded Investment (1) Recorded Investment (1) (in thousands) Number of Pre- Post- Number of Pre- Post- Troubled Debt Restructurings Commercial, financial and agricultural 0 $ 0 $ 0 1 $ 131 $ 130 Real estate mortgage - residential 1 75 75 0 0 0 Real estate mortgage - commercial 1 68 64 1 56 52 Consumer 4 48 47 0 0 0 Total 6 $ 191 $ 186 2 $ 187 $ 182 (1) The amounts reported post-modification are inclusive of all partial pay-downs and charge-offs, and no portion of the debt was forgiven. Loans modified as a TDR that were fully paid down, charged-off or foreclosed upon during the period ended are not reported. |
Other Real Estate and Reposse26
Other Real Estate and Repossessed Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Other Real Estate [Abstract] | |
Schedule of summary of real estate and other assets acquired in settlement of loans | June 30, December 31, (in thousands) 2018 2017 Commercial $ 727 $ 727 Real estate construction - residential 179 0 Real estate construction - commercial 12,101 12,380 Real estate mortgage - residential 317 382 Real estate mortgage - commercial 2,934 2,909 Repossessed assets 0 5 Total $ 16,258 $ 16,403 Less valuation allowance for other real estate owned (3,022 ) (3,221 ) Total other real estate and repossessed assets $ 13,236 $ 13,182 |
Schedule of changes in the net carrying amount of other real estate owned and repossessed assets | Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Balance at beginning of period $ 16,264 $ 16,669 $ 16,403 $ 17,291 Additions 104 52 382 155 Proceeds from sales (80 ) (126 ) (304 ) (784 ) Charge-offs against the valuation allowance for other real estate owned, net (30 ) (53 ) (225 ) (170 ) Net gain on sales 0 (12 ) 2 38 Total other real estate and repossessed assets $ 16,258 $ 16,530 $ 16,258 $ 16,530 Less valuation allowance for other real estate owned (3,022 ) (3,174 ) (3,022 ) (3,174 ) Balance at end of period $ 13,236 $ 13,356 $ 13,236 $ 13,356 |
Schedule of summary of activity in valuation allowance for other real estate owned | Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2018 2017 2018 2017 Balance, beginning of period $ 3,025 $ 3,044 $ 3,221 $ 3,129 Provision for other real estate owned 27 183 26 215 Charge-offs (30 ) (53 ) (225 ) (170 ) Balance, end of period $ 3,022 $ 3,174 $ 3,022 $ 3,174 |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of amortized cost and fair value of debt securities available-for-sale | Total Amortized Gross Unrealized Fair ( in thousands) Cost Gains Losses Value June 30, 2018 U.S. Treasury $ 1,983 $ 0 $ (53 ) $ 1,930 U.S. government and federal agency obligations 11,443 0 (351 ) 11,092 Government sponsored enterprises 46,773 4 (718 ) 46,059 Obligations of states and political subdivisions 42,054 38 (633 ) 41,459 Mortgage-backed securities: Residential - government agencies 131,243 35 (4,217 ) 127,061 Total available-for-sale securities $ 233,496 $ 77 $ (5,972 ) $ 227,601 December 31, 2017 U.S. Treasury $ 1,980 $ 0 $ (13 ) $ 1,967 U.S. government and federal agency obligations 12,341 0 (268 ) 12,073 Government sponsored enterprises 37,321 0 (424 ) 36,897 Obligations of states and political subdivisions 47,019 114 (477 ) 46,656 Mortgage-backed securities: Residential - government agencies 131,045 44 (2,140 ) 128,949 Total available-for-sale securities $ 229,706 $ 158 $ (3,322 ) $ 226,542 |
Schedule of amortized cost and fair value of debt securities classified as available-for-sale by contractual maturity | Amortized Fair ( in thousands) Cost Value Due in one year or less $ 12,173 $ 12,120 Due after one year through five years 68,835 68,187 Due after five years through ten years 18,243 17,287 Due after ten years 3,002 2,946 Total 102,253 100,540 Mortgage-backed securities 131,243 127,061 Total available-for-sale securities $ 233,496 $ 227,601 |
Schedule of gross unrealized losses on debt securities and fair value of related securities aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position | Less than 12 months 12 months or more Total Total Fair Unrealized Fair Unrealized Fair Unrealized (in thousands) Value Losses Value Losses Value Losses At June 30, 2018 U.S. Treasury $ 1,930 $ (53 ) $ 0 $ 0 $ 1,930 $ (53 ) U.S. government and federal agency obligations 0 0 11,092 (351 ) 11,092 (351 ) Government sponsored enterprises 17,776 (260 ) 25,333 (458 ) 43,109 (718 ) Obligations of states and political subdivisions 22,974 (228 ) 12,371 (405 ) 35,345 (633 ) Mortgage-backed securities: Residential - government agencies 55,223 (1,367 ) 65,303 (2,850 ) 120,526 (4,217 ) Total $ 97,903 $ (1,908 ) $ 114,099 $ (4,064 ) $ 212,002 $ (5,972 ) (in thousands) At December 31, 2017 U.S. Treasury $ 1,967 $ (13 ) $ 0 $ 0 $ 1,967 $ (13 ) U.S. government and federal agency obligations 0 0 12,073 (268 ) 12,073 (268 ) Government sponsored enterprises 16,471 (119 ) 20,426 (305 ) 36,897 (424 ) Obligations of states and political subdivisions 22,013 (165 ) 12,570 (312 ) 34,583 (477 ) Mortgage-backed securities: Residential - government agencies 52,829 (488 ) 69,580 (1,652 ) 122,409 (2,140 ) Total $ 93,280 $ (785 ) $ 114,649 $ (2,537 ) $ 207,929 $ (3,322 ) |
Schedule of components of investment securities gains and losses | Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2018 2017 2018 2017 Gains realized on sales $ 108 $ 0 $ 206 $ 0 Losses realized on sales 0 0 0 0 Other-than-temporary impairment recognized 0 0 0 0 Investment securities gains $ 108 $ 0 $ 206 $ 0 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Intangible Assets | |
Schedule of changes in mortgage servicing rights (MSRs) | Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2018 2017 2018 2017 Balance at beginning of period $ 2,781 $ 2,877 $ 2,713 $ 2,584 Originated mortgage servicing rights 81 66 131 115 Changes in fair value: Due to change in model inputs and assumptions (1) 30 (56 ) 133 319 Other changes in fair value (2) (79 ) (121 ) (164 ) (252 ) Balance at end of period $ 2,813 $ 2,766 $ 2,813 $ 2,766 (1) The change in fair value resulting from changes in valuation inputs or assumptions used in the valuation model reflects the change in discount rates and prepayment speed assumptions primarily due to changes in interest rates. (2) Other changes in fair value reflect changes due to customer payments and passage of time. |
Schedule of key data and assumptions used in estimating the fair value of the Company's MSRs | Six Months Ended June 30, 2018 2017 Weighted average constant prepayment rate 9.55 % 9.28 % Weighted average note rate 3.90 % 3.86 % Weighted average discount rate 10.34 % 9.75 % Weighted average expected life (in years) 6.10 6.10 |
Federal funds purchased and s29
Federal funds purchased and securities sold under agreements to repurchase (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase [Abstract] | |
Schedule of federal funds purchased and securities sold under agreements to repurchase | June 30, December 31, 2018 2017 Federal funds purchased $ 0 $ 0 Repurchase agreements 36,103 27,560 Total $ 36,103 $ 27,560 |
Schedule of repurchase agreements by remaining maturity of the agreements | Repurchase Agreements Remaining Contractual Maturity of the Agreements Overnight Less Greater and than than (in thousands) continuous 90 days 90 days Total At June 30, 2018 U.S. Treasury $ 1,445 $ 0 $ 0 $ 1,445 Government sponsored enterprises 14,205 0 0 14,205 Asset-backed securities 20,453 0 0 20,453 Total $ 36,103 $ 0 $ 0 $ 36,103 At December 31, 2017 U.S. Treasury $ 1,964 $ 0 $ 0 $ 1,964 U.S. government and federal agency obligations 2,977 0 0 2,977 Government sponsored enterprises 8,382 0 0 8,382 Asset-backed securities 14,237 0 0 14,237 Total $ 27,560 $ 0 $ 0 $ 27,560 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of the change in the components of the accumulated other comprehensive loss | Six months ended June 30, 2018 Unrecognized Net Accumulated Unrealized Pension and Other Gain (Loss) Postretirement Comprehensive (in thousands) on Securities (1) Costs (2) (Loss) Income Balance at beginning of period $ (2,500 ) $ (3,162 ) $ (5,662 ) Other comprehensive (loss) income, before reclassifications (2,730 ) 108 (2,622 ) Amounts reclassified from accumulated other comprehensive (loss) income 0 0 0 Current period other comprehensive (loss) income, before tax (2,730 ) 108 (2,622 ) Income tax expense (benefit) 573 (23 ) 550 Current period other comprehensive (loss) income, net of tax (2,157 ) 85 (2,072 ) Balance at end of period $ (4,657 ) $ (3,077 ) $ (7,734 ) Six months ended June 30, 2017 Unrecognized Net Accumulated Unrealized Pension and Other Gain (Loss) Postretirement Comprehensive (in thousands) on Securities (1) Costs (2) Loss Balance at beginning of period $ (1,936 ) $ (1,865 ) $ (3,801 ) Other comprehensive income, before reclassifications 1,452 45 1,497 Amounts reclassified from accumulated other comprehensive income (loss) 0 0 0 Current period other comprehensive income, before tax 1,452 45 1,497 Income tax expense (552 ) (18 ) (570 ) Current period other comprehensive income, net of tax 900 27 927 Balance at end of period $ (1,036 ) $ (1,838 ) $ (2,874 ) (1) The pre-tax amounts reclassified from accumulated other comprehensive loss are included in gain on sale of investment securities (2) The pre-tax amounts reclassified from accumulated other comprehensive loss are included in the computation of net periodic pension cost. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of employee benefits charged to operating expenses | Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2018 2017 2018 2017 Payroll taxes $ 301 $ 288 $ 652 $ 644 Medical plans 612 468 1,160 894 401k match and profit sharing 237 226 423 476 Periodic pension cost 405 335 810 671 Other 10 9 25 25 Total employee benefits $ 1,565 $ 1,326 $ 3,070 $ 2,710 |
Schedule of components of net pension cost | Pension Benefits (in thousands) 2018 2017 Service cost - benefits earned during the year $ 1,620 $ 1,343 Interest costs on projected benefit obligations (a) 1,033 1,009 Expected return on plan assets (a) (1,267 ) (1,124 ) Expected administrative expenses (a) 93 88 Amortization of prior service cost (a) 79 79 Amortization of unrecognized net loss (a) 138 11 Net periodic pension cost $ 1,696 $ 1,406 Net periodic pension cost for the three months ended June 30, (actual) $ 405 $ 335 Net periodic pension cost for the six months ended June 30, (actual) $ 810 $ 671 (a) The components of net periodic pension cost other than the service cost component are included in other non-interest expense. |
Stock Compensation (Tables)
Stock Compensation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of summary of Company's stock option activity | Weighted Weighted Average Aggregate Number average Contractual Intrinsic of Exercise Term Value Shares Price (in years) ($000) Outstanding, beginning of period 20,909 $ 14.20 Granted 0 0.00 Exercised 0 0.00 Forfeited or expired 0 0.00 Outstanding, June 30, 2018 20,909 $ 14.20 0.23 $ 160,975 Exercisable, June 30, 2018 20,909 $ 14.20 0.23 $ 160,975 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of calculations of basic and diluted earnings per common share | Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands, except per share data) 2018 2017 2018 2017 Basic earnings per share: Net income available to shareholders $ 2,907 $ 1,919 $ 4,997 $ 4,020 Average shares outstanding 6,021,038 6,070,080 6,024,851 6,070,749 Basic earnings per share $ 0.48 $ 0.32 $ 0.83 $ 0.66 Diluted earnings per share: Net income available to shareholders $ 2,907 $ 1,919 $ 4,997 $ 4,020 Average shares outstanding 6,021,038 6,070,080 6,024,851 6,070,749 Effect of dilutive stock options 6,883 5,141 6,442 5,157 Average shares outstanding including dilutive stock options 6,027,921 6,075,221 6,031,293 6,075,906 Diluted earnings per share $ 0.48 0.32 $ 0.83 0.66 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of mortgage servicing rights | Fair Value Measurements Quoted Prices in Active Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs (in thousands) Fair Value (Level 1) (Level 2) (Level 3) June 30, 2018 Assets: U.S. Treasury $ 1,930 $ 1,930 0 $ 0 U.S. government and federal agency obligations 11,092 0 11,092 0 Government sponsored enterprises 46,059 0 46,059 0 Obligations of states and political subdivisions 41,459 0 41,459 0 Mortgage-backed securities 127,061 0 127,061 0 Mortgage servicing rights 2,813 0 0 2,813 Total $ 230,414 $ 1,930 $ 225,671 $ 2,813 December 31, 2017 Assets: U.S. Treasury $ 1,967 $ 1,967 0 $ 0 U.S. government and federal agency obligations 12,073 0 12,073 0 Government sponsored enterprises 36,897 0 36,897 0 Obligations of states and political subdivisions 46,656 0 46,656 0 Mortgage-backed securities 128,949 0 128,949 0 Mortgage servicing rights 2,713 0 0 2,713 Total $ 229,255 $ 1,967 $ 224,575 $ 2,713 |
Schedule of summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis | Fair Value Measurements Using Fair Value Measurements Using Significant Unobservable Inputs Significant Unobservable Inputs (Level 3) (Level 3) Mortgage Servicing Rights Mortgage Servicing Rights (in thousands) Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Balance at beginning of period $ 2,781 $ 2,877 $ 2,713 $ 2,584 Total gains or losses (realized/unrealized): Included in earnings (49 ) (177 ) (31 ) 67 Included in other comprehensive income 0 0 0 0 Purchases 0 0 0 0 Sales 0 0 0 0 Issues 81 66 131 115 Settlements 0 0 0 0 Balance at end of period $ 2,813 $ 2,766 $ 2,813 $ 2,766 |
Schedule of valuation methods for instruments measured at fair value on a nonrecurring basis | Fair Value Measurements Using Quoted Prices Three Six in Active Months Months Markets for Other Significant Ended Ended Identical Observable Unobservable June 30, June 30, Total Assets Inputs Inputs Total Gains Total Gains (in thousands) Fair Value (Level 1) (Level 2) (Level 3) (Losses)* (Losses)* June 30, 2018 Assets: Collateral dependent impaired loans: Commercial, financial, & agricultural $ 1,648 $ 0 $ 0 $ 1,648 $ (166 ) $ (166 ) Real estate construction - commercial 169 0 0 169 0 (27 ) Real estate mortgage - residential 998 0 0 998 (12 ) (12 ) Real estate mortgage - commercial 337 0 0 337 0 (20 ) Consumer 137 0 0 137 (14 ) (25 ) Total $ 3,289 $ 0 $ 0 $ 3,289 $ (192 ) $ (250 ) Other real estate and foreclosed assets $ 13,236 $ 0 $ 0 $ 13,236 $ (27 ) $ (26 ) June 30, 2017 Assets: Collateral dependent impaired loans: Commercial, financial, & agricultural $ 523 $ 0 $ 0 $ 523 $ 0 $ (1 ) Real estate mortgage - residential 1,488 0 0 1,488 (62 ) (65 ) Real estate mortgage - commercial 220 0 0 220 0 (4 ) Consumer 0 0 0 0 (1 ) (13 ) Total $ 2,231 $ 0 $ 0 $ 2,231 $ (63 ) $ (83 ) Other real estate and foreclosed assets $ 13,356 $ 0 $ 0 $ 13,356 $ (195 ) $ (180 ) * Total gains (losses) reported for other real estate and foreclosed assets includes charge-offs, valuation write downs, and net losses taken during the periods reported. |
Fair Value of Financial Instr35
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
Schedule of summary of the carrying amounts and fair values of financial instruments | June 30, 2018 Fair Value Measurements Quoted Prices in Active Net Markets for Other Significant June 30, 2018 Identical Observable Unobservable Carrying Fair Assets Inputs Inputs (in thousands) amount value (Level 1) (Level 2) (Level 3) Assets: Cash and due from banks $ 15,921 $ 15,921 $ 15,921 $ 0 $ 0 Federal funds sold and overnight interest-bearing deposits 34,863 34,863 34,863 0 0 Certificates of deposit in other banks 10,746 10,746 10,746 0 0 Investment in available-for-sale securities 227,601 227,601 1,930 225,671 0 Loans, net 1,082,983 1,061,707 0 0 1,061,707 Investment in FHLB stock 4,676 4,676 0 4,676 0 Mortgage servicing rights 2,813 2,813 0 0 2,813 Cash surrender value - life insurance 2,516 2,516 0 2,516 0 Accrued interest receivable 5,294 5,294 5,294 0 0 $ 1,387,413 $ 1,366,137 $ 68,754 $ 232,863 $ 1,064,520 Liabilities: Deposits: Non-interest bearing demand $ 250,232 $ 250,232 $ 250,232 $ 0 $ 0 Savings, interest checking and money market 614,976 614,976 614,976 0 0 Time deposits 318,178 315,242 0 0 315,242 Federal funds purchased and securities sold under agreements to repurchase 36,103 36,103 36,103 0 0 Federal Home Loan Bank advances and other borrowings 74,270 73,846 0 73,846 0 Subordinated notes 49,486 44,146 0 44,146 0 Accrued interest payable 790 790 790 0 0 $ 1,344,035 $ 1,335,335 $ 902,101 $ 117,992 $ 315,242 December 31, 2017 Fair Value Measurements Quoted Prices in Active Net Markets for Other Significant December 31, 2017 Identical Observable Unobservable Carrying Fair Assets Inputs Inputs (in thousands) amount value (Level 1) (Level 2) (Level 3) Assets: Cash and due from banks $ 23,325 $ 23,325 $ 23,325 $ 0 $ 0 Federal funds sold and overnight interest-bearing deposits 39,553 39,553 39,553 0 0 Certificates of deposit in other banks 3,460 3,460 3,460 0 0 Investment in available-for-sale securities 226,542 226,542 1,967 224,575 0 Loans, net 1,057,580 1,058,153 0 0 1,058,153 Investment in FHLB stock 6,390 6,390 0 6,390 0 Mortgage servicing rights 2,713 2,713 0 0 2,713 Cash surrender value - life insurance 2,484 2,484 0 2,484 0 Accrued interest receivable 5,627 5,627 5,627 0 0 $ 1,367,674 $ 1,368,247 $ 73,932 $ 233,449 $ 1,060,866 Liabilities: Deposits: Non-interest bearing demand $ 245,380 $ 245,380 $ 245,380 $ 0 $ 0 Savings, interest checking and money market 584,468 584,468 584,468 0 0 Time deposits 295,964 294,778 0 0 294,778 Federal funds purchased and securities sold under agreements to repurchase 27,560 27,560 27,560 0 0 Federal Home Loan Bank advances and other borrowings 121,382 121,291 0 121,291 0 Subordinated notes 49,486 39,692 0 39,692 0 Accrued interest payable 554 554 554 0 0 $ 1,324,794 $ 1,313,723 $ 857,962 $ 160,983 $ 294,778 |
Repurchase Reserve Liability (T
Repurchase Reserve Liability (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Repurchase Reserve Liability [Abstract] | |
Schedule of repurchase reserve liability | Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2018 2017 2018 2017 Balance at beginning of year $ 160 $ 160 $ 160 $ 160 Provision for repurchase liability 0 0 0 0 Reimbursement of expenses 0 0 0 0 Balance at end of year $ 160 $ 160 $ 160 $ 160 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of contractual amount of off-balance-sheet financial instruments | June 30, December 31, (in thousands) 2018 2017 Commitments to extend credit $ 235,159 $ 238,527 Commitments to originate residential first and second mortgage loans 2,554 1,471 Standby letters of credit 77,276 74,004 Total 314,989 314,002 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies (Detail Textuals) - Subsequent Event | Jul. 01, 2018 |
Subsequent Event [Line Items] | |
Special stock dividend, payment date | Jul. 1, 2018 |
Special stock dividend, rate percent | 4.00% |
Special stock dividend, record date | Jun. 15, 2018 |
Loans and Allowance for Loan 39
Loans and Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | $ 1,094,195 | $ 1,068,432 |
Commercial, financial, and agricultural | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 200,628 | 192,238 |
Residential real estate | Construction | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 28,285 | 26,492 |
Residential real estate | Mortgage | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 246,415 | 246,754 |
Commercial real estate | Construction | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 106,406 | 98,340 |
Commercial real estate | Mortgage | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 479,571 | 472,455 |
Installment and other consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | $ 32,890 | $ 32,153 |
Loans and Allowance for Loan 40
Loans and Allowance for Loan Losses (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Summary of the allowance for loan losses | ||||
Balance at beginning of period | $ 10,947 | $ 10,262 | $ 10,852 | $ 9,886 |
Additions: | ||||
Provision for loan losses | 450 | 330 | 750 | 680 |
Deductions: | ||||
Loans charged off | 269 | 156 | 548 | 268 |
Less recoveries on loans | (84) | (109) | (158) | (247) |
Net loan charge-offs (recoveries) | 185 | 47 | 390 | 21 |
Balance at end of period | 11,212 | 10,545 | 11,212 | 10,545 |
Commercial Financial And Agricultural | ||||
Summary of the allowance for loan losses | ||||
Balance at beginning of period | 3,261 | 2,360 | 3,325 | 2,753 |
Additions: | ||||
Provision for loan losses | 865 | 226 | 898 | (157) |
Deductions: | ||||
Loans charged off | 193 | 32 | 303 | 60 |
Less recoveries on loans | (10) | (24) | (23) | (42) |
Net loan charge-offs (recoveries) | 183 | 8 | 280 | 18 |
Balance at end of period | 3,943 | 2,578 | 3,943 | 2,578 |
Residential Real Estate | Construction | ||||
Summary of the allowance for loan losses | ||||
Balance at beginning of period | 240 | 99 | 170 | 108 |
Additions: | ||||
Provision for loan losses | (52) | (54) | 54 | (113) |
Deductions: | ||||
Loans charged off | 0 | 0 | 48 | 0 |
Less recoveries on loans | (13) | (25) | (25) | (75) |
Net loan charge-offs (recoveries) | (13) | (25) | 23 | (75) |
Balance at end of period | 201 | 70 | 201 | 70 |
Residential Real Estate | Mortgage | ||||
Summary of the allowance for loan losses | ||||
Balance at beginning of period | 2,057 | 2,125 | 1,689 | 2,385 |
Additions: | ||||
Provision for loan losses | 48 | (230) | 416 | (507) |
Deductions: | ||||
Loans charged off | 12 | 62 | 32 | 81 |
Less recoveries on loans | (16) | (21) | (36) | (57) |
Net loan charge-offs (recoveries) | (4) | 41 | (4) | 24 |
Balance at end of period | 2,109 | 1,854 | 2,109 | 1,854 |
Commercial Real Estate | Construction | ||||
Summary of the allowance for loan losses | ||||
Balance at beginning of period | 895 | 579 | 807 | 413 |
Additions: | ||||
Provision for loan losses | 10 | 36 | 128 | 202 |
Deductions: | ||||
Loans charged off | 0 | 0 | 30 | 0 |
Less recoveries on loans | 0 | 0 | 0 | 0 |
Net loan charge-offs (recoveries) | 0 | 0 | 30 | 0 |
Balance at end of period | 905 | 615 | 905 | 615 |
Commercial Real Estate | Mortgage | ||||
Summary of the allowance for loan losses | ||||
Balance at beginning of period | 4,008 | 4,731 | 4,437 | 3,793 |
Additions: | ||||
Provision for loan losses | (388) | 139 | (809) | 1,084 |
Deductions: | ||||
Loans charged off | 15 | 2 | 29 | 16 |
Less recoveries on loans | (25) | (14) | (31) | (21) |
Net loan charge-offs (recoveries) | (10) | (12) | (2) | (5) |
Balance at end of period | 3,630 | 4,882 | 3,630 | 4,882 |
Installment and Other Consumer | ||||
Summary of the allowance for loan losses | ||||
Balance at beginning of period | 352 | 322 | 345 | 274 |
Additions: | ||||
Provision for loan losses | 90 | 89 | 131 | 161 |
Deductions: | ||||
Loans charged off | 49 | 60 | 106 | 111 |
Less recoveries on loans | (20) | (25) | (43) | (52) |
Net loan charge-offs (recoveries) | 29 | 35 | 63 | 59 |
Balance at end of period | 413 | 376 | 413 | 376 |
Unallocated | ||||
Summary of the allowance for loan losses | ||||
Balance at beginning of period | 134 | 46 | 79 | 160 |
Additions: | ||||
Provision for loan losses | (123) | 124 | (68) | 10 |
Deductions: | ||||
Loans charged off | 0 | 0 | 0 | 0 |
Less recoveries on loans | 0 | 0 | 0 | 0 |
Net loan charge-offs (recoveries) | 0 | 0 | 0 | 0 |
Balance at end of period | $ 11 | $ 170 | $ 11 | $ 170 |
Loans and Allowance for Loan 41
Loans and Allowance for Loan Losses (Details 2) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Allowance for loan losses: | ||||||
Individually evaluated for impairment | $ 1,282 | $ 1,333 | ||||
Collectively evaluated for impairment | 9,930 | 9,519 | ||||
Total | 11,212 | $ 10,947 | 10,852 | $ 10,545 | $ 10,262 | $ 9,886 |
Loans outstanding: | ||||||
Individually evaluated for impairment | 10,251 | 10,356 | ||||
Collectively evaluated for impairment | 1,083,944 | 1,058,076 | ||||
Total | 1,094,195 | 1,068,432 | ||||
Commercial Financial And Agricultural | ||||||
Allowance for loan losses: | ||||||
Individually evaluated for impairment | 410 | 500 | ||||
Collectively evaluated for impairment | 3,533 | 2,825 | ||||
Total | 3,943 | 3,261 | 3,325 | 2,578 | 2,360 | 2,753 |
Loans outstanding: | ||||||
Individually evaluated for impairment | 2,887 | 3,007 | ||||
Collectively evaluated for impairment | 197,741 | 189,231 | ||||
Total | 200,628 | 192,238 | ||||
Residential Real Estate | Construction | ||||||
Allowance for loan losses: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 201 | 170 | ||||
Total | 201 | 240 | 170 | 70 | 99 | 108 |
Loans outstanding: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 28,285 | 26,492 | ||||
Total | 28,285 | 26,492 | ||||
Residential Real Estate | Mortgage | ||||||
Allowance for loan losses: | ||||||
Individually evaluated for impairment | 668 | 521 | ||||
Collectively evaluated for impairment | 1,441 | 1,168 | ||||
Total | 2,109 | 2,057 | 1,689 | 1,854 | 2,125 | 2,385 |
Loans outstanding: | ||||||
Individually evaluated for impairment | 5,186 | 5,072 | ||||
Collectively evaluated for impairment | 241,229 | 241,682 | ||||
Total | 246,415 | 246,754 | ||||
Commercial Real Estate | Construction | ||||||
Allowance for loan losses: | ||||||
Individually evaluated for impairment | 0 | 48 | ||||
Collectively evaluated for impairment | 905 | 759 | ||||
Total | 905 | 895 | 807 | 615 | 579 | 413 |
Loans outstanding: | ||||||
Individually evaluated for impairment | 169 | 97 | ||||
Collectively evaluated for impairment | 106,237 | 98,243 | ||||
Total | 106,406 | 98,340 | ||||
Commercial Real Estate | Mortgage | ||||||
Allowance for loan losses: | ||||||
Individually evaluated for impairment | 185 | 243 | ||||
Collectively evaluated for impairment | 3,445 | 4,194 | ||||
Total | 3,630 | 4,008 | 4,437 | 4,882 | 4,731 | 3,793 |
Loans outstanding: | ||||||
Individually evaluated for impairment | 1,705 | 2,004 | ||||
Collectively evaluated for impairment | 477,866 | 470,451 | ||||
Total | 479,571 | 472,455 | ||||
Installment and Other Consumer | ||||||
Allowance for loan losses: | ||||||
Individually evaluated for impairment | 19 | 21 | ||||
Collectively evaluated for impairment | 394 | 324 | ||||
Total | 413 | 352 | 345 | 376 | 322 | 274 |
Loans outstanding: | ||||||
Individually evaluated for impairment | 304 | 176 | ||||
Collectively evaluated for impairment | 32,586 | 31,977 | ||||
Total | 32,890 | 32,153 | ||||
Unallocated | ||||||
Allowance for loan losses: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 11 | 79 | ||||
Total | 11 | $ 134 | 79 | $ 170 | $ 46 | $ 160 |
Loans outstanding: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 0 | 0 | ||||
Total | $ 0 | $ 0 |
Loans and Allowance for Loan 42
Loans and Allowance for Loan Losses (Details 3) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Categories of impaired loans | ||
Non-accrual loans | $ 6,311 | $ 5,672 |
Performing TDRs | 3,940 | 4,684 |
Total impaired loans | $ 10,251 | $ 10,356 |
Loans and Allowance for Loan 43
Loans and Allowance for Loan Losses (Details 4) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, With no related allowance recorded | $ 3,334 | $ 2,433 |
Unpaid Principal Balance, With no related allowance recorded | 3,477 | 2,528 |
Recorded Investment, With an allowance recorded | 6,917 | 7,923 |
Unpaid Principal Balance, With an allowance recorded | 7,481 | 8,370 |
Specific Reserves, With an allowance recorded | 1,282 | 1,333 |
Total impaired loans, Recorded Investment | 10,251 | 10,356 |
Total impaired loans, Unpaid Principal Balance | 10,958 | 10,898 |
Commercial, financial, and agricultural | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, With no related allowance recorded | 1,282 | 1,393 |
Unpaid Principal Balance, With no related allowance recorded | 1,351 | 1,445 |
Recorded Investment, With an allowance recorded | 1,605 | 1,614 |
Unpaid Principal Balance, With an allowance recorded | 1,927 | 1,834 |
Specific Reserves, With an allowance recorded | 410 | 500 |
Residential Real Estate | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, With no related allowance recorded | 993 | 674 |
Unpaid Principal Balance, With no related allowance recorded | 1,048 | 688 |
Recorded Investment, With an allowance recorded | 4,193 | 4,398 |
Unpaid Principal Balance, With an allowance recorded | 4,287 | 4,500 |
Specific Reserves, With an allowance recorded | 668 | 521 |
Residential Real Estate | Construction | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, With no related allowance recorded | 0 | |
Unpaid Principal Balance, With no related allowance recorded | 0 | |
Recorded Investment, With an allowance recorded | 0 | |
Unpaid Principal Balance, With an allowance recorded | 0 | |
Specific Reserves, With an allowance recorded | 0 | |
Real estate - commercial | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, With no related allowance recorded | 753 | 366 |
Unpaid Principal Balance, With no related allowance recorded | 753 | 395 |
Recorded Investment, With an allowance recorded | 952 | 1,638 |
Unpaid Principal Balance, With an allowance recorded | 1,078 | 1,743 |
Specific Reserves, With an allowance recorded | 185 | 243 |
Real estate - commercial | Construction | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, With no related allowance recorded | 169 | |
Unpaid Principal Balance, With no related allowance recorded | 188 | |
Recorded Investment, With an allowance recorded | 97 | |
Unpaid Principal Balance, With an allowance recorded | 97 | |
Specific Reserves, With an allowance recorded | 48 | |
Consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, With no related allowance recorded | 137 | |
Unpaid Principal Balance, With no related allowance recorded | 137 | |
Recorded Investment, With an allowance recorded | 176 | |
Unpaid Principal Balance, With an allowance recorded | 196 | |
Specific Reserves, With an allowance recorded | $ 21 | |
Installment and other consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, With an allowance recorded | 167 | |
Unpaid Principal Balance, With an allowance recorded | 189 | |
Specific Reserves, With an allowance recorded | $ 19 |
Loans and Allowance for Loan 44
Loans and Allowance for Loan Losses (Details 5) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
With no related allowance recorded: | ||||
With no related allowance recorded, Average Recorded Investment | $ 2,452 | $ 1,713 | $ 2,515 | $ 1,962 |
With no related allowance recorded, Interest Recognized For The Period Ended | 13 | 0 | 26 | 7 |
With an allowance recorded: | ||||
With an allowance recorded, Average Recorded Investment | 7,663 | 7,707 | 7,881 | 7,396 |
With an allowance recorded, Interest Recognized For The Period Ended | 28 | 64 | 73 | 135 |
Total average recorded investment | 10,115 | 9,420 | 10,396 | 9,358 |
Total interest income recognized For the Period Ended | 41 | 64 | 99 | 142 |
Commercial, financial, and agricultural | ||||
With no related allowance recorded: | ||||
With no related allowance recorded, Average Recorded Investment | 1,153 | 464 | 1,302 | 519 |
With no related allowance recorded, Interest Recognized For The Period Ended | 0 | (1) | 1 | 0 |
With an allowance recorded: | ||||
With an allowance recorded, Average Recorded Investment | 1,621 | 1,214 | 1,737 | 1,199 |
With an allowance recorded, Interest Recognized For The Period Ended | 8 | 8 | 15 | 19 |
Residential Real Estate | ||||
With no related allowance recorded: | ||||
With no related allowance recorded, Average Recorded Investment | 933 | 852 | 900 | 912 |
With no related allowance recorded, Interest Recognized For The Period Ended | 3 | 3 | 6 | 7 |
With an allowance recorded: | ||||
With an allowance recorded, Average Recorded Investment | 4,118 | 4,790 | 4,247 | 4,595 |
With an allowance recorded, Interest Recognized For The Period Ended | 14 | 42 | 47 | 87 |
Residential Real Estate | Construction | ||||
With an allowance recorded: | ||||
With an allowance recorded, Average Recorded Investment | 20 | 0 | 15 | 0 |
With an allowance recorded, Interest Recognized For The Period Ended | 0 | 0 | 0 | 0 |
Real estate - commercial | ||||
With no related allowance recorded: | ||||
With no related allowance recorded, Average Recorded Investment | 116 | 395 | 237 | 500 |
With no related allowance recorded, Interest Recognized For The Period Ended | 10 | (2) | 19 | 0 |
With an allowance recorded: | ||||
With an allowance recorded, Average Recorded Investment | 1,732 | 1,604 | 1,691 | 1,505 |
With an allowance recorded, Interest Recognized For The Period Ended | 5 | 14 | 10 | 29 |
Real estate - commercial | Construction | ||||
With no related allowance recorded: | ||||
With no related allowance recorded, Average Recorded Investment | 113 | 0 | 42 | 0 |
With no related allowance recorded, Interest Recognized For The Period Ended | 0 | 0 | 0 | 0 |
With an allowance recorded: | ||||
With an allowance recorded, Average Recorded Investment | 0 | 48 | 24 | 49 |
With an allowance recorded, Interest Recognized For The Period Ended | 0 | 0 | 0 | 0 |
Installment and other consumer | ||||
With no related allowance recorded: | ||||
With no related allowance recorded, Average Recorded Investment | 137 | 2 | 34 | 31 |
With no related allowance recorded, Interest Recognized For The Period Ended | 0 | 0 | 0 | 0 |
With an allowance recorded: | ||||
With an allowance recorded, Average Recorded Investment | 172 | 51 | 167 | 48 |
With an allowance recorded, Interest Recognized For The Period Ended | $ 1 | $ 0 | $ 1 | $ 0 |
Loans and Allowance for Loan 45
Loans and Allowance for Loan Losses (Details 6) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Aging information for the Company's past due and non-accrual loans | ||
90 Days Past Due And Still Accruing | $ 42 | $ 328 |
Non-Accrual | 6,311 | 5,672 |
Loans | 1,094,195 | 1,068,432 |
Current or Less Than 30 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 1,086,133 | 1,059,498 |
30 - 89 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 1,709 | 2,934 |
Commercial Financial And Agricultural | ||
Aging information for the Company's past due and non-accrual loans | ||
90 Days Past Due And Still Accruing | 0 | 2 |
Non-Accrual | 2,429 | 2,507 |
Loans | 200,628 | 192,238 |
Commercial Financial And Agricultural | Current or Less Than 30 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 197,928 | 189,537 |
Commercial Financial And Agricultural | 30 - 89 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 271 | 192 |
Residential Real Estate | Construction | ||
Aging information for the Company's past due and non-accrual loans | ||
90 Days Past Due And Still Accruing | 0 | 275 |
Non-Accrual | 0 | 0 |
Loans | 28,285 | 26,492 |
Residential Real Estate | Construction | Current or Less Than 30 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 28,285 | 25,930 |
Residential Real Estate | Construction | 30 - 89 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 0 | 287 |
Residential Real Estate | Mortgage | ||
Aging information for the Company's past due and non-accrual loans | ||
90 Days Past Due And Still Accruing | 8 | 28 |
Non-Accrual | 2,775 | 1,956 |
Loans | 246,415 | 246,754 |
Residential Real Estate | Mortgage | Current or Less Than 30 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 242,937 | 242,597 |
Residential Real Estate | Mortgage | 30 - 89 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 695 | 2,173 |
Commercial Real Estate | Construction | ||
Aging information for the Company's past due and non-accrual loans | ||
90 Days Past Due And Still Accruing | 0 | 0 |
Non-Accrual | 169 | 97 |
Loans | 106,406 | 98,340 |
Commercial Real Estate | Construction | Current or Less Than 30 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 106,237 | 98,243 |
Commercial Real Estate | Construction | 30 - 89 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 0 | 0 |
Commercial Real Estate | Mortgage | ||
Aging information for the Company's past due and non-accrual loans | ||
90 Days Past Due And Still Accruing | 0 | 0 |
Non-Accrual | 653 | 936 |
Loans | 479,571 | 472,455 |
Commercial Real Estate | Mortgage | Current or Less Than 30 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 478,383 | 471,476 |
Commercial Real Estate | Mortgage | 30 - 89 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 535 | 43 |
Installment and Other Consumer | ||
Aging information for the Company's past due and non-accrual loans | ||
90 Days Past Due And Still Accruing | 34 | 23 |
Non-Accrual | 285 | 176 |
Loans | 32,890 | 32,153 |
Installment and Other Consumer | Current or Less Than 30 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 32,363 | 31,715 |
Installment and Other Consumer | 30 - 89 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | $ 208 | $ 239 |
Loans and Allowance for Loan 46
Loans and Allowance for Loan Losses (Details 7) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | $ 1,094,195 | $ 1,068,432 |
Watch | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 53,632 | 71,786 |
Substandard | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 2,189 | 4,121 |
Performing TDRs | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 3,940 | 4,684 |
Non-accrual | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 6,311 | 5,672 |
Total | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 66,072 | 86,263 |
Commercial Financial And Agricultural | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 200,628 | 192,238 |
Commercial Financial And Agricultural | Watch | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 7,378 | 9,868 |
Commercial Financial And Agricultural | Substandard | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 94 | 658 |
Commercial Financial And Agricultural | Performing TDRs | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 458 | 500 |
Commercial Financial And Agricultural | Non-accrual | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 2,429 | 2,507 |
Commercial Financial And Agricultural | Total | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 10,359 | 13,533 |
Residential Real Estate | Construction | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 28,285 | 26,492 |
Residential Real Estate | Construction | Watch | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 598 | 1,459 |
Residential Real Estate | Construction | Substandard | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 0 | 462 |
Residential Real Estate | Construction | Performing TDRs | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 0 | 0 |
Residential Real Estate | Construction | Non-accrual | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 0 | 0 |
Residential Real Estate | Construction | Total | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 598 | 1,921 |
Residential Real Estate | Mortgage | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 246,415 | 246,754 |
Residential Real Estate | Mortgage | Watch | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 8,584 | 9,978 |
Residential Real Estate | Mortgage | Substandard | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 1,371 | 2,262 |
Residential Real Estate | Mortgage | Performing TDRs | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 2,410 | 3,116 |
Residential Real Estate | Mortgage | Non-accrual | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 2,775 | 1,956 |
Residential Real Estate | Mortgage | Total | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 15,140 | 17,312 |
Commercial Real Estate | Construction | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 106,406 | 98,340 |
Commercial Real Estate | Construction | Watch | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 3,581 | 1,284 |
Commercial Real Estate | Construction | Substandard | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 0 | 0 |
Commercial Real Estate | Construction | Performing TDRs | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 0 | 0 |
Commercial Real Estate | Construction | Non-accrual | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 169 | 97 |
Commercial Real Estate | Construction | Total | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 3,750 | 1,381 |
Commercial Real Estate | Mortgage | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 479,571 | 472,455 |
Commercial Real Estate | Mortgage | Watch | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 33,482 | 49,197 |
Commercial Real Estate | Mortgage | Substandard | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 718 | 723 |
Commercial Real Estate | Mortgage | Performing TDRs | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 1,053 | 1,068 |
Commercial Real Estate | Mortgage | Non-accrual | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 653 | 936 |
Commercial Real Estate | Mortgage | Total | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 35,906 | 51,924 |
Installment and Other Consumer | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 32,890 | 32,153 |
Installment and Other Consumer | Watch | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 9 | 0 |
Installment and Other Consumer | Substandard | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 6 | 16 |
Installment and Other Consumer | Performing TDRs | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 19 | 0 |
Installment and Other Consumer | Non-accrual | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 285 | 176 |
Installment and Other Consumer | Total | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | $ 319 | $ 192 |
Loans and Allowance for Loan 47
Loans and Allowance for Loan Losses (Details 8) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2018USD ($)Contract | Jun. 30, 2017USD ($)Contract | ||
Loans that were modified as TDRs | |||
Number of Contracts | Contract | [1] | 6 | 2 |
Pre- Modification | [1] | $ 191 | $ 187 |
Post- Modification | [1] | $ 186 | $ 182 |
Commercial, financial, and agricultural | |||
Loans that were modified as TDRs | |||
Number of Contracts | Contract | [1] | 0 | 1 |
Pre- Modification | [1] | $ 0 | $ 131 |
Post- Modification | [1] | $ 0 | $ 130 |
Residential real estate | Mortgage | |||
Loans that were modified as TDRs | |||
Number of Contracts | Contract | [1] | 1 | 0 |
Pre- Modification | [1] | $ 75 | $ 0 |
Post- Modification | [1] | $ 75 | $ 0 |
Commercial real estate | Mortgage | |||
Loans that were modified as TDRs | |||
Number of Contracts | Contract | [1] | 1 | 1 |
Pre- Modification | [1] | $ 68 | $ 56 |
Post- Modification | [1] | $ 64 | $ 52 |
Consumer | |||
Loans that were modified as TDRs | |||
Number of Contracts | Contract | [1] | 4 | 0 |
Pre- Modification | [1] | $ 48 | $ 0 |
Post- Modification | [1] | $ 47 | $ 0 |
[1] | The amounts reported post-modification are inclusive of all partial pay-downs and charge-offs, and no portion of the debt was forgiven. Loans modified as a TDR that were fully paid down, charged-off or foreclosed upon during the period ended are not reported. |
Loans and Allowance for Loan 48
Loans and Allowance for Loan Losses (Detail Textuals) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)ContractLoan | Jun. 30, 2017USD ($)Contract | Dec. 31, 2017USD ($) | ||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Amount of loans pledged as collateral to the Federal Home Loan Bank | $ 489,600,000 | $ 489,600,000 | ||||
Look back period | 5 years | |||||
Impaired loans individually evaluated for impairment | 10,251,000 | $ 10,251,000 | $ 10,356,000 | |||
Impaired loans were evaluated based on the fair value of the loan's collateral | 4,200,000 | 4,200,000 | 4,000,000 | |||
Specific allowance related to impaired loans | 1,282,000 | 1,282,000 | 1,333,000 | |||
Impaired loans with no reserve allocation | $ 3,334,000 | $ 3,334,000 | $ 2,433,000 | |||
Impaired loans required no reserve allocation, percentage | 33.00% | 33.00% | 23.00% | |||
Interest income recognized on impaired loans | $ 41,000 | $ 64,000 | $ 99,000 | $ 142,000 | ||
Troubled debt restructurings | 5,900,000 | 5,900,000 | $ 6,400,000 | |||
Amount of specific reserves related to TDRs which were allocated to the allowance for loan losses | 510,000 | $ 510,000 | 577,000 | |||
Number of contracts modified | Contract | [1] | 6 | 2 | |||
Residential Real Estate | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Specific allowance related to impaired loans | 668,000 | $ 668,000 | 521,000 | |||
Impaired loans with no reserve allocation | 993,000 | 993,000 | 674,000 | |||
Value of mortgage loans in process of foreclosure | 246,000 | 246,000 | 0 | |||
Residential Real Estate | Mortgages [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Impaired loans individually evaluated for impairment | 5,186,000 | $ 5,186,000 | 5,072,000 | |||
Number of contracts modified | Contract | [1] | 1 | 0 | |||
Number of mortgage loans in process of foreclosure | Loan | 1 | |||||
Value of mortgage loans in process of foreclosure | 48,000 | $ 48,000 | ||||
Commercial real estate | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Specific allowance related to impaired loans | 185,000 | 185,000 | 243,000 | |||
Impaired loans with no reserve allocation | 753,000 | $ 753,000 | 366,000 | |||
Number of mortgage loans in process of foreclosure | Loan | 1 | |||||
Value of mortgage loans in process of foreclosure | 366,000 | $ 366,000 | ||||
Commercial real estate | Mortgages [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Impaired loans individually evaluated for impairment | 1,705,000 | $ 1,705,000 | 2,004,000 | |||
Number of contracts modified | Contract | [1] | 1 | 1 | |||
Minimum | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Look back period | 3 years | |||||
Maximum | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Look back period | 5 years | |||||
Performing TDRs | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Troubled debt restructurings | 3,900,000 | $ 3,900,000 | 4,700,000 | |||
Nonperforming TDRs | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Troubled debt restructurings | $ 2,000,000 | $ 2,000,000 | $ 1,700,000 | |||
[1] | The amounts reported post-modification are inclusive of all partial pay-downs and charge-offs, and no portion of the debt was forgiven. Loans modified as a TDR that were fully paid down, charged-off or foreclosed upon during the period ended are not reported. |
Other Real Estate and Reposse49
Other Real Estate and Repossessed Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Summary of real estate and other assets acquired in settlement of loans | ||||||
Repossessed assets | $ 0 | $ 5 | ||||
Total | 16,258 | $ 16,264 | 16,403 | $ 16,530 | $ 16,669 | $ 17,291 |
Less valuation allowance for other real estate owned | (3,022) | $ (3,025) | (3,221) | (3,174) | $ (3,044) | $ (3,129) |
Total other real estate and repossessed assets | 13,236 | 13,182 | $ 13,356 | |||
Commercial | ||||||
Summary of real estate and other assets acquired in settlement of loans | ||||||
Real estate acquired through foreclosure | 727 | 727 | ||||
Residential real estate | Construction | ||||||
Summary of real estate and other assets acquired in settlement of loans | ||||||
Real estate acquired through foreclosure | 179 | 0 | ||||
Residential real estate | Mortgage | ||||||
Summary of real estate and other assets acquired in settlement of loans | ||||||
Real estate acquired through foreclosure | 317 | 382 | ||||
Commercial real estate | Construction | ||||||
Summary of real estate and other assets acquired in settlement of loans | ||||||
Real estate acquired through foreclosure | 12,101 | 12,380 | ||||
Commercial real estate | Mortgage | ||||||
Summary of real estate and other assets acquired in settlement of loans | ||||||
Real estate acquired through foreclosure | $ 2,934 | $ 2,909 |
Other Real Estate and Reposse50
Other Real Estate and Repossessed Assets (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Schedule of real estate acquired in settlement of loans | |||||
Balance at beginning of period | $ 16,264 | $ 16,669 | $ 16,403 | $ 17,291 | |
Additions | 104 | 52 | 382 | 155 | |
Proceeds from sales | (80) | (126) | (304) | (784) | |
Charge-offs against the valuation allowance for other real estate owned, net | (30) | (53) | (225) | (170) | |
Net gain on sales | 0 | (12) | 2 | 38 | |
Total other real estate and repossessed assets | 16,258 | 16,530 | 16,258 | 16,530 | |
Less valuation allowance for other real estate owned | (3,022) | (3,174) | (3,022) | (3,174) | |
Balance at end of period | $ 13,236 | $ 13,356 | $ 13,236 | $ 13,356 | $ 13,182 |
Other Real Estate and Reposse51
Other Real Estate and Repossessed Assets (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Summary of activity in valuation allowance for other real estate owned in settlement of loans | ||||
Balance, beginning of period | $ 3,025 | $ 3,044 | $ 3,221 | $ 3,129 |
Provision for other real estate owned | 27 | 183 | 26 | 215 |
Charge-offs | (30) | (53) | (225) | (170) |
Balance, end of period | $ 3,022 | $ 3,174 | $ 3,022 | $ 3,174 |
Other Real Estate and Reposse52
Other Real Estate and Repossessed Assets (Detail Textuals) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Residential real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer mortgage loans in process of foreclosure | $ 246,000 | $ 0 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Amortized cost and fair value of debt securities available-for-sale | ||
Total Amortized Cost | $ 233,496 | $ 229,706 |
Gross Unrealized Gains | 77 | 158 |
Gross Unrealized Losses | (5,972) | (3,322) |
Fair value | 227,601 | 226,542 |
U.S. Treasury | ||
Amortized cost and fair value of debt securities available-for-sale | ||
Total Amortized Cost | 1,983 | 1,980 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (53) | (13) |
Fair value | 1,930 | 1,967 |
U.S. government and federal agency obligations | ||
Amortized cost and fair value of debt securities available-for-sale | ||
Total Amortized Cost | 11,443 | 12,341 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (351) | (268) |
Fair value | 11,092 | 12,073 |
Government sponsored enterprises | ||
Amortized cost and fair value of debt securities available-for-sale | ||
Total Amortized Cost | 46,773 | 37,321 |
Gross Unrealized Gains | 4 | 0 |
Gross Unrealized Losses | (718) | (424) |
Fair value | 46,059 | 36,897 |
Obligations of states and political subdivisions | ||
Amortized cost and fair value of debt securities available-for-sale | ||
Total Amortized Cost | 42,054 | 47,019 |
Gross Unrealized Gains | 38 | 114 |
Gross Unrealized Losses | (633) | (477) |
Fair value | 41,459 | 46,656 |
Residential - government agencies | ||
Amortized cost and fair value of debt securities available-for-sale | ||
Total Amortized Cost | 131,243 | 131,045 |
Gross Unrealized Gains | 35 | 44 |
Gross Unrealized Losses | (4,217) | (2,140) |
Fair value | $ 127,061 | $ 128,949 |
Investment Securities (Details
Investment Securities (Details 1) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Amortized Cost | ||
Due in one year or less | $ 12,173 | |
Due after one year through five years | 68,835 | |
Due after five years through ten years | 18,243 | |
Due after ten years | 3,002 | |
Total | 102,253 | |
Mortgage-backed securities | 131,243 | |
Total available-for-sale securities | 233,496 | $ 229,706 |
Fair Value | ||
Due in one year or less | 12,120 | |
Due after one year through five years | 68,187 | |
Due after five years through ten years | 17,287 | |
Due after ten years | 2,946 | |
Total | 100,540 | |
Mortgage-backed securities | 127,061 | |
Total available-for-sale securities | $ 227,601 | $ 226,542 |
Investment Securities (Detail55
Investment Securities (Details 2) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value | ||
Less than 12 months | $ 97,903 | $ 93,280 |
12 months or more | 114,099 | 114,649 |
Total | 212,002 | 207,929 |
Unrealized Losses | ||
Less than 12 months | (1,908) | (785) |
12 months or more | (4,064) | (2,537) |
Total | (5,972) | (3,322) |
U.S. Treasury | ||
Fair Value | ||
Less than 12 months | 1,930 | 1,967 |
12 months or more | 0 | 0 |
Total | 1,930 | 1,967 |
Unrealized Losses | ||
Less than 12 months | (53) | (13) |
12 months or more | 0 | 0 |
Total | (53) | (13) |
U.S. government and federal agency obligations | ||
Fair Value | ||
Less than 12 months | 0 | 0 |
12 months or more | 11,092 | 12,073 |
Total | 11,092 | 12,073 |
Unrealized Losses | ||
Less than 12 months | 0 | 0 |
12 months or more | (351) | (268) |
Total | (351) | (268) |
Government sponsored enterprises | ||
Fair Value | ||
Less than 12 months | 17,776 | 16,471 |
12 months or more | 25,333 | 20,426 |
Total | 43,109 | 36,897 |
Unrealized Losses | ||
Less than 12 months | (260) | (119) |
12 months or more | (458) | (305) |
Total | (718) | (424) |
Obligations of states and political subdivisions | ||
Fair Value | ||
Less than 12 months | 22,974 | 22,013 |
12 months or more | 12,371 | 12,570 |
Total | 35,345 | 34,583 |
Unrealized Losses | ||
Less than 12 months | (228) | (165) |
12 months or more | (405) | (312) |
Total | (633) | (477) |
Residential - government agencies | ||
Fair Value | ||
Less than 12 months | 55,223 | 52,829 |
12 months or more | 65,303 | 69,580 |
Total | 120,526 | 122,409 |
Unrealized Losses | ||
Less than 12 months | (1,367) | (488) |
12 months or more | (2,850) | (1,652) |
Total | $ (4,217) | $ (2,140) |
Investment Securities (Detail56
Investment Securities (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Investments Debt And Equity Securities [Abstract] | ||||
Gains realized on sales | $ 108 | $ 0 | $ 206 | $ 0 |
Losses realized on sales | 0 | 0 | 0 | 0 |
Other-than-temporary impairment recognized | 0 | 0 | 0 | 0 |
Investment securities gains | $ 108 | $ 0 | $ 206 | $ 0 |
Investment Securities (Detail T
Investment Securities (Detail Textuals) $ in Thousands | Jun. 30, 2018USD ($)Security | Dec. 31, 2017USD ($)Security |
Investments Debt And Equity Securities [Abstract] | ||
Available for sale securities reported at cost in other assets | $ 9,300 | $ 11,000 |
Available for sale securities, pledged | $ 187,300 | $ 181,700 |
Number of securities consisted in portfolio | Security | 369 | 355 |
Number of securities in loss position | Security | 322 | 280 |
Aggregate fair value of securities in loss position | $ 212,002 | $ 207,929 |
Loss position for 12 months or longer | 114,099 | 114,649 |
Aggregate unrealized loss included in accumulated other comprehensive income (loss) | $ 5,972 | $ 3,322 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Changes in mortgage servicing rights | |||||
Balance at beginning of period | $ 2,713 | ||||
Changes in fair value: | |||||
Balance at end of period | $ 2,813 | 2,813 | |||
Mortgage servicing rights (MSRs) | |||||
Changes in mortgage servicing rights | |||||
Balance at beginning of period | 2,781 | $ 2,877 | 2,713 | $ 2,584 | |
Originated mortgage servicing rights | 81 | 66 | 131 | 115 | |
Changes in fair value: | |||||
Due to change in model inputs and assumptions | [1] | 30 | (56) | 133 | 319 |
Other changes in fair value | [2] | (79) | (121) | (164) | (252) |
Balance at end of period | $ 2,813 | $ 2,766 | $ 2,813 | $ 2,766 | |
[1] | The change in fair value resulting from changes in valuation inputs or assumptions used in the valuation model reflects the change in discount rates and prepayment speed assumptions primarily due to changes in interest rates. | ||||
[2] | Other changes in fair value reflect changes due to customer payments and passage of time. |
Intangible Assets (Details 1)
Intangible Assets (Details 1) - Mortgage servicing rights (MSRs) | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Assumptions used in estimating the fair value of mortgage service rights | ||
Weighted average constant prepayment rate | 9.55% | 9.28% |
Weighted average note rate | 3.90% | 3.86% |
Weighted average discount rate | 10.34% | 9.75% |
Weighted average expected life (in years) | 6 years 1 month 6 days | 6 years 1 month 6 days |
Intangible Assets (Detail Textu
Intangible Assets (Detail Textuals) - Mortgage servicing rights (MSRs) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Mortgage loans serviced for others | $ 284,900,000 | $ 289,800,000 | $ 284,900,000 | $ 289,800,000 | $ 285,800,000 |
Mortgage loan servicing fees reported as non-interest income | $ 210,000 | $ 211,000 | $ 413,000 | $ 420,000 |
Federal funds purchased and s61
Federal funds purchased and securities sold under agreements to repurchase (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase [Abstract] | ||
Federal funds purchased | $ 0 | $ 0 |
Repurchase agreements | 36,103 | 27,560 |
Total | $ 36,103 | $ 27,560 |
Federal funds purchased and s62
Federal funds purchased and securities sold under agreements to repurchase (Details 1) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | $ 36,103 | $ 27,560 |
U.S. Treasury | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 1,445 | 1,964 |
U.S. government and federal agency obligations | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 2,977 | |
Government sponsored enterprises | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 14,205 | 8,382 |
Asset-backed securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 20,453 | 14,237 |
Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 36,103 | 27,560 |
Overnight and continuous | U.S. Treasury | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 1,445 | 1,964 |
Overnight and continuous | U.S. government and federal agency obligations | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 2,977 | |
Overnight and continuous | Government sponsored enterprises | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 14,205 | 8,382 |
Overnight and continuous | Asset-backed securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 20,453 | 14,237 |
Less than 90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Less than 90 days | U.S. Treasury | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Less than 90 days | Government sponsored enterprises | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Less than 90 days | Asset-backed securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Greater than 90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Greater than 90 days | U.S. Treasury | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Greater than 90 days | Government sponsored enterprises | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Greater than 90 days | Asset-backed securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | $ 0 | $ 0 |
Income Taxes (Detail Textuals)
Income Taxes (Detail Textuals) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Taxes [Line Items] | ||||
Tax rate as percentage of earnings before income taxes | 7.20% | 33.90% | 11.30% | 34.10% |
Valuation allowance against certain capital loss carryforward | $ 46,000 | $ 46,000 | ||
Tax Year 2017 | ||||
Income Taxes [Line Items] | ||||
Federal corporate income tax rate | 34.00% | |||
Tax Year 2018 | ||||
Income Taxes [Line Items] | ||||
Federal corporate income tax rate | 21.00% |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Accumulated Other Comprehensive Income (Loss) | |||||
Balance at beginning of period | $ (5,662) | ||||
Current period other comprehensive (loss) income, net of tax | $ (399) | $ 608 | (2,072) | $ 927 | |
Balance at end of period | (7,734) | (7,734) | |||
Unrealized Gain (Loss) on Securities | |||||
Accumulated Other Comprehensive Income (Loss) | |||||
Balance at beginning of period | [1] | (2,500) | (1,936) | ||
Other comprehensive (loss) income, before reclassifications | [1] | (2,730) | 1,452 | ||
Amounts reclassified from accumulated other comprehensive (loss) income | [1] | 0 | 0 | ||
Current period other comprehensive (loss) income, before tax | [1] | (2,730) | 1,452 | ||
Income tax expense (benefit) | [1] | 573 | (552) | ||
Current period other comprehensive (loss) income, net of tax | [1] | (2,157) | 900 | ||
Balance at end of period | [1] | (4,657) | (1,036) | (4,657) | (1,036) |
Unrecognized Net Pension and Postretirement Costs | |||||
Accumulated Other Comprehensive Income (Loss) | |||||
Balance at beginning of period | [2] | (3,162) | (1,865) | ||
Other comprehensive (loss) income, before reclassifications | [2] | 108 | 45 | ||
Amounts reclassified from accumulated other comprehensive (loss) income | [2] | 0 | 0 | ||
Current period other comprehensive (loss) income, before tax | [2] | 108 | 45 | ||
Income tax expense (benefit) | [2] | (23) | (18) | ||
Current period other comprehensive (loss) income, net of tax | [2] | 85 | 27 | ||
Balance at end of period | [2] | (3,077) | (1,838) | (3,077) | (1,838) |
Accumulated Other Comprehensive (Loss) Income | |||||
Accumulated Other Comprehensive Income (Loss) | |||||
Balance at beginning of period | (5,662) | (3,801) | |||
Other comprehensive (loss) income, before reclassifications | (2,622) | 1,497 | |||
Amounts reclassified from accumulated other comprehensive (loss) income | 0 | 0 | |||
Current period other comprehensive (loss) income, before tax | (2,622) | 1,497 | |||
Income tax expense (benefit) | 550 | (570) | |||
Current period other comprehensive (loss) income, net of tax | (2,072) | 927 | |||
Balance at end of period | $ (7,734) | $ (2,874) | $ (7,734) | $ (2,874) | |
[1] | The pre-tax amounts reclassified from accumulated other comprehensive loss are included in gain on sale of investment securities in the consolidated statements of income. | ||||
[2] | The pre-tax amounts reclassified from accumulated other comprehensive loss are included in the computation of net periodic pension cost. |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Summary of employee benefits charged to operating expenses | ||||
Payroll taxes | $ 301 | $ 288 | $ 652 | $ 644 |
Medical plans | 612 | 468 | 1,160 | 894 |
401k match and profit sharing | 237 | 226 | 423 | 476 |
Periodic pension cost | 405 | 335 | 810 | 671 |
Other | 10 | 9 | 25 | 25 |
Total employee benefits | $ 1,565 | $ 1,326 | $ 3,070 | $ 2,710 |
Employee Benefit Plans (Detai66
Employee Benefit Plans (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Components of net pension cost | |||||
Net periodic pension cost for the three and six months ended (actual) | $ 405 | $ 335 | $ 810 | $ 671 | |
Pension Benefits | |||||
Components of net pension cost | |||||
Service cost - benefits earned during the year | 1,620 | 1,343 | |||
Interest costs on projected benefit obligations | [1] | 1,033 | 1,009 | ||
Expected return on plan assets | [1] | (1,267) | (1,124) | ||
Expected administrative expenses | [1] | 93 | 88 | ||
Amortization of prior service cost | [1] | 79 | 79 | ||
Amortization of unrecognized net loss | [1] | 138 | 11 | ||
Net periodic pension cost | 1,696 | 1,406 | |||
Net periodic pension cost for the three and six months ended (actual) | $ 405 | $ 335 | $ 810 | $ 671 | |
[1] | The components of net periodic pension cost other than the service cost component are included in other non-interest expense. |
Employee Benefit Plans (Detail
Employee Benefit Plans (Detail Textuals) - Pension Benefits $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Defined Benefit Plan Disclosure | |
Percentage of employer match | 3.00% |
Defined benefit plan contributions by employer percent | 6.00% |
Contribution to defined benefit plan in the second quarter of 2018 | $ 1.8 |
Defined benefit plan, minimum required contribution | $ 1 |
Stock Compensation (Details)
Stock Compensation (Details) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($)$ / sharesshares | |
Number of Shares | |
Outstanding, beginning of period | shares | 20,909 |
Granted | shares | 0 |
Exercised | shares | 0 |
Forfeited or expired | shares | 0 |
Outstanding, June 30, 2018 | shares | 20,909 |
Exercisable, June 30, 2018 | shares | 20,909 |
Weighted average Exercise Price | |
Outstanding, beginning of period | $ / shares | $ 14.2 |
Granted | $ / shares | 0 |
Exercised | $ / shares | 0 |
Forfeited or expired | $ / shares | 0 |
Outstanding, June 30, 2018 | $ / shares | 14.2 |
Exercisable, June 30, 2018 | $ / shares | $ 14.2 |
Weighted Average Contractual Term (in years) | |
Outstanding, June 30, 2018 | 2 months 23 days |
Exercisable, June 30, 2018 | 2 months 23 days |
Aggregate Intrinsic Value | |
Outstanding, June 30, 2018 | $ | $ 160,975 |
Exercisable, June 30, 2018 | $ | $ 160,975 |
Stock Compensation (Detail Text
Stock Compensation (Detail Textuals) - USD ($) $ in Thousands | Jul. 01, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock based compensation expense | $ 0 | $ 1,000 | $ 0 | $ 2,000 | |
Subsequent Event | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Special stock dividend, rate percent | 4.00% | ||||
Date of dividend payment | Jul. 1, 2018 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Basic earnings per share: | ||||
Net income available to shareholders | $ 2,907 | $ 1,919 | $ 4,997 | $ 4,020 |
Average shares outstanding | 6,021,038 | 6,070,080 | 6,024,851 | 6,070,749 |
Basic earnings per share (in dollars per share) | $ 0.48 | $ 0.32 | $ 0.83 | $ 0.66 |
Diluted earnings per share: | ||||
Net income available to shareholders | $ 2,907 | $ 1,919 | $ 4,997 | $ 4,020 |
Average shares outstanding | 6,021,038 | 6,070,080 | 6,024,851 | 6,070,749 |
Effect of dilutive stock options | 6,883 | 5,141 | 6,442 | 5,157 |
Average shares outstanding including dilutive stock options | 6,027,921 | 6,075,221 | 6,031,293 | 6,075,906 |
Diluted earnings per share (in dollars per share) | $ 0.48 | $ 0.32 | $ 0.83 | $ 0.66 |
Earnings per Share (Detail Text
Earnings per Share (Detail Textuals) - Subsequent Event | Jul. 01, 2018 |
Subsequent Event [Line Items] | |
Special stock dividend, payment date | Jul. 1, 2018 |
Special stock dividend, rate percent | 4.00% |
Special stock dividend, record date | Jun. 15, 2018 |
Earnings per Share (Detail Te72
Earnings per Share (Detail Textuals 1) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | ||
Jun. 30, 2018 | Aug. 08, 2017 | Aug. 06, 2015 | |
Earnings Per Share [Abstract] | |||
Value of shares repurchased through open market transactions | $ 1.5 | $ 2 | |
Total number of common stock repurchased | 95,709 | ||
Average price per share of total common stock repurchased | $ 17.90 | ||
Number of common stock repurchased | 8,668 | ||
Average price per share of common stock repurchased | $ 20.63 | ||
Value remained available for the purchase of shares under the plan | $ 1.8 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Assets: | ||
Available for sale debt securities, fair value | $ 227,601 | $ 226,542 |
Mortgage servicing rights, fair value | 2,813 | 2,713 |
U.S. Treasury | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Available for sale debt securities, fair value | 1,930 | 1,967 |
Mortgage servicing rights, fair value | 0 | 0 |
Assets, Total | 68,754 | 73,932 |
Other Observable Inputs (Level 2) | ||
Assets: | ||
Available for sale debt securities, fair value | 225,671 | 224,575 |
Mortgage servicing rights, fair value | 0 | 0 |
Assets, Total | 232,863 | 233,449 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Mortgage servicing rights, fair value | 2,813 | 2,713 |
Assets, Total | 1,064,520 | 1,060,866 |
Recurring | ||
Assets: | ||
Assets, Total | 230,414 | 229,255 |
Recurring | U.S. Treasury | ||
Assets: | ||
Available for sale debt securities, fair value | 1,930 | |
Recurring | U.S. government and federal agency obligations | ||
Assets: | ||
Available for sale debt securities, fair value | 11,092 | 12,073 |
Recurring | Government sponsored enterprises | ||
Assets: | ||
Available for sale debt securities, fair value | 46,059 | 36,897 |
Recurring | Obligations of states and political subdivisions | ||
Assets: | ||
Available for sale debt securities, fair value | 41,459 | 46,656 |
Recurring | Mortgage-backed securities | ||
Assets: | ||
Mortgage servicing rights, fair value | 127,061 | 128,949 |
Recurring | Mortgage servicing rights | ||
Assets: | ||
Mortgage servicing rights, fair value | 2,813 | 2,713 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Assets, Total | 1,930 | 1,967 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury | ||
Assets: | ||
Available for sale debt securities, fair value | 1,930 | 1,967 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government and federal agency obligations | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Government sponsored enterprises | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Obligations of states and political subdivisions | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage-backed securities | ||
Assets: | ||
Mortgage servicing rights, fair value | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage servicing rights | ||
Assets: | ||
Mortgage servicing rights, fair value | 0 | 0 |
Recurring | Other Observable Inputs (Level 2) | ||
Assets: | ||
Assets, Total | 225,671 | 224,575 |
Recurring | Other Observable Inputs (Level 2) | U.S. Treasury | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 1,967 |
Recurring | Other Observable Inputs (Level 2) | U.S. government and federal agency obligations | ||
Assets: | ||
Available for sale debt securities, fair value | 11,092 | 12,073 |
Recurring | Other Observable Inputs (Level 2) | Government sponsored enterprises | ||
Assets: | ||
Available for sale debt securities, fair value | 46,059 | 36,897 |
Recurring | Other Observable Inputs (Level 2) | Obligations of states and political subdivisions | ||
Assets: | ||
Available for sale debt securities, fair value | 41,459 | 46,656 |
Recurring | Other Observable Inputs (Level 2) | Mortgage-backed securities | ||
Assets: | ||
Mortgage servicing rights, fair value | 127,061 | 128,949 |
Recurring | Other Observable Inputs (Level 2) | Mortgage servicing rights | ||
Assets: | ||
Mortgage servicing rights, fair value | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Assets, Total | 2,813 | 2,713 |
Recurring | Significant Unobservable Inputs (Level 3) | U.S. Treasury | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | U.S. government and federal agency obligations | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Government sponsored enterprises | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Obligations of states and political subdivisions | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Mortgage-backed securities | ||
Assets: | ||
Mortgage servicing rights, fair value | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Mortgage servicing rights | ||
Assets: | ||
Mortgage servicing rights, fair value | $ 2,813 | $ 2,713 |
Fair Value Measurements (Deta74
Fair Value Measurements (Details 1) - Recurring - Significant Unobservable Inputs (Level 3) - Mortgage servicing rights - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Fair value of assets | ||||
Balance at beginning of period | $ 2,781 | $ 2,877 | $ 2,713 | $ 2,584 |
Total gains or losses (realized/unrealized): Included in earnings | (49) | (177) | (31) | 67 |
Total gains or losses (realized/unrealized): Included in other comprehensive income | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issues | 81 | 66 | 131 | 115 |
Settlements | 0 | 0 | 0 | 0 |
Balance at end of period | $ 2,813 | $ 2,766 | $ 2,813 | $ 2,766 |
Fair Value Measurements (Deta75
Fair Value Measurements (Details 3) - Nonrecurring - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Total Fair Value | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | $ 3,289 | $ 2,231 | $ 3,289 | $ 2,231 | |
Other real estate and foreclosed assets | 13,236 | 13,356 | 13,236 | 13,356 | |
Total Fair Value | Commercial, financial, and agricultural | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 1,648 | 523 | 1,648 | 523 | |
Total Fair Value | Commercial real estate | Construction | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 169 | 169 | |||
Total Fair Value | Commercial real estate | Mortgage | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 337 | 220 | 337 | 220 | |
Total Fair Value | Residential real estate | Mortgage | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 998 | 1,488 | 998 | 1,488 | |
Total Fair Value | Consumer | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 137 | 0 | 137 | 0 | |
Total Gains (Losses) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Gains (losses) on impaired loans | [1] | (192) | (63) | (250) | (83) |
Gains (losses) on other real estate owned and repossessed assets | [1] | (27) | (195) | (26) | (180) |
Total Gains (Losses) | Commercial, financial, and agricultural | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Gains (losses) on impaired loans | [1] | (166) | 0 | (166) | (1) |
Total Gains (Losses) | Commercial real estate | Construction | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Gains (losses) on impaired loans | [1] | 0 | (27) | ||
Total Gains (Losses) | Commercial real estate | Mortgage | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Gains (losses) on impaired loans | [1] | 0 | 0 | (20) | (4) |
Total Gains (Losses) | Residential real estate | Mortgage | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Gains (losses) on impaired loans | [1] | (12) | (62) | (12) | (65) |
Total Gains (Losses) | Consumer | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Gains (losses) on impaired loans | [1] | (14) | (1) | (25) | (13) |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Other real estate and foreclosed assets | 0 | 0 | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial, financial, and agricultural | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 0 | 0 | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial real estate | Construction | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 0 | 0 | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial real estate | Mortgage | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 0 | 0 | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential real estate | Mortgage | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 0 | 0 | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Consumer | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 0 | 0 | 0 | 0 | |
Other Observable Inputs (Level 2) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Other real estate and foreclosed assets | 0 | 0 | 0 | 0 | |
Other Observable Inputs (Level 2) | Commercial, financial, and agricultural | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 0 | 0 | 0 | 0 | |
Other Observable Inputs (Level 2) | Commercial real estate | Construction | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 0 | 0 | |||
Other Observable Inputs (Level 2) | Commercial real estate | Mortgage | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 0 | 0 | 0 | 0 | |
Other Observable Inputs (Level 2) | Residential real estate | Mortgage | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 0 | 0 | 0 | 0 | |
Other Observable Inputs (Level 2) | Consumer | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 0 | 0 | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Other real estate and foreclosed assets | 13,236 | 13,356 | 13,236 | 13,356 | |
Significant Unobservable Inputs (Level 3) | Commercial, financial, and agricultural | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 1,648 | 523 | 1,648 | 523 | |
Significant Unobservable Inputs (Level 3) | Commercial real estate | Construction | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 169 | 169 | |||
Significant Unobservable Inputs (Level 3) | Commercial real estate | Mortgage | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 337 | 220 | 337 | 220 | |
Significant Unobservable Inputs (Level 3) | Residential real estate | Mortgage | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 998 | 1,488 | 998 | 1,488 | |
Significant Unobservable Inputs (Level 3) | Consumer | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | $ 137 | $ 0 | $ 137 | $ 0 | |
[1] | Total gains (losses) reported for other real estate and foreclosed assets includes charge-offs, valuation write downs, and net losses taken during the periods reported. |
Fair Value Measurements (Deta76
Fair Value Measurements (Detail Textuals) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Impaired loans with a specific allowance | $ 6,917,000 | $ 6,917,000 | $ 7,923,000 | ||
Specific allowance related to impaired loans | 1,282,000 | 1,282,000 | $ 1,333,000 | ||
Collateral dependent impaired loans | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Impaired loans with a specific allowance | 4,200,000 | $ 3,000,000 | 4,200,000 | $ 3,000,000 | |
Specific allowance related to impaired loans | 911,000 | 755,000 | 911,000 | 755,000 | |
Impaired financing receivable charge offs | 192,000 | 63,000 | 250,000 | 83,000 | |
Mortgage servicing rights (MSRs) | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Increase (Decrease) in valuation of mortgage servicing rights arising from inputs and assumptions | $ 30,000 | $ 56,000 | $ 133,000 | $ 319,000 |
Fair Value of Financial Instr77
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Assets: | ||
Cash and due from banks | $ 15,921 | $ 23,325 |
Federal funds sold and overnight interest-bearing deposits | 34,863 | 39,553 |
Certificates of deposit in other banks | 10,746 | 3,460 |
Investment in available-for-sale securities | 227,601 | 226,542 |
Mortgage servicing rights | 2,813 | 2,713 |
Accrued interest receivable | 5,294 | 5,627 |
Deposits: | ||
Non-interest bearing demand | 250,232 | 245,380 |
Savings, interest checking and money market | 614,976 | 584,468 |
Time deposits | 98,638 | 63,176 |
Accrued interest payable | 790 | 554 |
Carrying Amount | ||
Assets: | ||
Cash and due from banks | 15,921 | 23,325 |
Federal funds sold and overnight interest-bearing deposits | 34,863 | 39,553 |
Certificates of deposit in other banks | 10,746 | 3,460 |
Investment in available-for-sale securities | 227,601 | 226,542 |
Loans, net | 1,082,983 | 1,057,580 |
Investment in FHLB stock | 4,676 | 6,390 |
Mortgage servicing rights | 2,813 | 2,713 |
Cash surrender value - life insurance | 2,516 | 2,484 |
Accrued interest receivable | 5,294 | 5,627 |
Assets, Total | 1,387,413 | 1,367,674 |
Deposits: | ||
Non-interest bearing demand | 250,232 | 245,380 |
Savings, interest checking and money market | 614,976 | 584,468 |
Time deposits | 318,178 | 295,964 |
Federal funds purchased and securities sold under agreements to repurchase | 36,103 | 27,560 |
Federal Home Loan Bank advances and other borrowings | 74,270 | 121,382 |
Subordinated notes | 49,486 | 49,486 |
Accrued interest payable | 790 | 554 |
Liabilities, Total | 1,344,035 | 1,324,794 |
Fair Value | ||
Assets: | ||
Cash and due from banks | 15,921 | 23,325 |
Federal funds sold and overnight interest-bearing deposits | 34,863 | 39,553 |
Certificates of deposit in other banks | 10,746 | 3,460 |
Investment in available-for-sale securities | 227,601 | 226,542 |
Loans, net | 1,061,707 | 1,058,153 |
Investment in FHLB stock | 4,676 | 6,390 |
Mortgage servicing rights | 2,813 | 2,713 |
Cash surrender value - life insurance | 2,516 | 2,484 |
Accrued interest receivable | 5,294 | 5,627 |
Assets, Total | 1,366,137 | 1,368,247 |
Deposits: | ||
Non-interest bearing demand | 250,232 | 245,380 |
Savings, interest checking and money market | 614,976 | 584,468 |
Time deposits | 315,242 | 294,778 |
Federal funds purchased and securities sold under agreements to repurchase | 36,103 | 27,560 |
Federal Home Loan Bank advances and other borrowings | 73,846 | 121,291 |
Subordinated notes | 44,146 | 39,692 |
Accrued interest payable | 790 | 554 |
Liabilities, Total | 1,335,335 | 1,313,723 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Cash and due from banks | 15,921 | 23,325 |
Federal funds sold and overnight interest-bearing deposits | 34,863 | 39,553 |
Certificates of deposit in other banks | 10,746 | 3,460 |
Investment in available-for-sale securities | 1,930 | 1,967 |
Loans, net | 0 | 0 |
Investment in FHLB stock | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Cash surrender value - life insurance | 0 | 0 |
Accrued interest receivable | 5,294 | 5,627 |
Assets, Total | 68,754 | 73,932 |
Deposits: | ||
Non-interest bearing demand | 250,232 | 245,380 |
Savings, interest checking and money market | 614,976 | 584,468 |
Time deposits | 0 | 0 |
Federal funds purchased and securities sold under agreements to repurchase | 36,103 | 27,560 |
Federal Home Loan Bank advances and other borrowings | 0 | 0 |
Subordinated notes | 0 | 0 |
Accrued interest payable | 790 | 554 |
Liabilities, Total | 902,101 | 857,962 |
Other Observable Inputs (Level 2) | ||
Assets: | ||
Cash and due from banks | 0 | 0 |
Federal funds sold and overnight interest-bearing deposits | 0 | 0 |
Certificates of deposit in other banks | 0 | 0 |
Investment in available-for-sale securities | 225,671 | 224,575 |
Loans, net | 0 | 0 |
Investment in FHLB stock | 4,676 | 6,390 |
Mortgage servicing rights | 0 | 0 |
Cash surrender value - life insurance | 2,516 | 2,484 |
Accrued interest receivable | 0 | 0 |
Assets, Total | 232,863 | 233,449 |
Deposits: | ||
Non-interest bearing demand | 0 | 0 |
Savings, interest checking and money market | 0 | 0 |
Time deposits | 0 | 0 |
Federal funds purchased and securities sold under agreements to repurchase | 0 | 0 |
Federal Home Loan Bank advances and other borrowings | 73,846 | 121,291 |
Subordinated notes | 44,146 | 39,692 |
Accrued interest payable | 0 | 0 |
Liabilities, Total | 117,992 | 160,983 |
Net Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Cash and due from banks | 0 | 0 |
Federal funds sold and overnight interest-bearing deposits | 0 | 0 |
Certificates of deposit in other banks | 0 | 0 |
Investment in available-for-sale securities | 0 | 0 |
Loans, net | 1,061,707 | 1,058,153 |
Investment in FHLB stock | 0 | 0 |
Mortgage servicing rights | 2,813 | 2,713 |
Cash surrender value - life insurance | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Assets, Total | 1,064,520 | 1,060,866 |
Deposits: | ||
Non-interest bearing demand | 0 | 0 |
Savings, interest checking and money market | 0 | 0 |
Time deposits | 315,242 | 294,778 |
Federal funds purchased and securities sold under agreements to repurchase | 0 | 0 |
Federal Home Loan Bank advances and other borrowings | 0 | 0 |
Subordinated notes | 0 | 0 |
Accrued interest payable | 0 | 0 |
Liabilities, Total | $ 315,242 | $ 294,778 |
Repurchase Reserve Liability (D
Repurchase Reserve Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Assets Sold Under Agreements To Repurchase [Roll Forward] | ||||
Balance at beginning of year | $ 160 | $ 160 | $ 160 | $ 160 |
Provision for repurchase liability | 0 | 0 | 0 | 0 |
Reimbursement of expenses | 0 | 0 | 0 | 0 |
Balance at end of year | $ 160 | $ 160 | $ 160 | $ 160 |
Repurchase Reserve Liability 79
Repurchase Reserve Liability (Detail Textuals) $ in Thousands | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2018USD ($)Loan | Jun. 30, 2017USD ($)Loan | Dec. 31, 2017USD ($)Loan | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Repurchase Reserve Liability [Abstract] | ||||||
Repurchase reserve liability | $ 160 | $ 160 | $ 160 | $ 160 | $ 160 | $ 160 |
Number of loans sold to the secondary market | Loan | 2,726 | 2,826 | 2,773 | |||
Balance of loans sold to the secondary market | $ 284,900 | $ 289,800 | $ 285,800 |
Commitments and Contingencies80
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Contractual amount of off-balance-sheet financial instruments | ||
Total contractual amount of off-balance-sheet financial instruments | $ 314,989 | $ 314,002 |
Commitments to extend credit | ||
Contractual amount of off-balance-sheet financial instruments | ||
Total contractual amount of off-balance-sheet financial instruments | 235,159 | 238,527 |
Commitments to originate residential first and second mortgage loans | ||
Contractual amount of off-balance-sheet financial instruments | ||
Total contractual amount of off-balance-sheet financial instruments | 2,554 | 1,471 |
Standby letters of credit | ||
Contractual amount of off-balance-sheet financial instruments | ||
Total contractual amount of off-balance-sheet financial instruments | $ 77,276 | $ 74,004 |
Commitments and Contingencies81
Commitments and Contingencies (Detail Textuals) | 6 Months Ended |
Jun. 30, 2018 | |
Minimum | |
Other Commitments [Line Items] | |
Remaining term of conditional commitment | 1 month |
Maximum | |
Other Commitments [Line Items] | |
Remaining term of conditional commitment | 5 years |