Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 30, 2016 | Jun. 30, 2015 | |
Document And Entity Information Abstract | |||
Entity Registrant Name | HAWTHORN BANCSHARES, INC. | ||
Entity Central Index Key | 893,847 | ||
Trading Symbol | hwbk | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding | 5,441,190 | ||
Entity Public Float | $ 58,113,180 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and due from banks | $ 20,484 | $ 22,364 |
Federal funds sold and other overnight interest-bearing deposits | 7,893 | 20,445 |
Cash and cash equivalents | 28,377 | 42,809 |
Investment in available-for-sale securities, at fair value | 235,054 | 198,998 |
Other investments and securities, at cost | 8,037 | 4,722 |
Total investment securities | 243,091 | 203,720 |
Loans | 865,080 | 861,213 |
Allowances for loan losses | (8,604) | (9,099) |
Net loans | 856,476 | 852,114 |
Premises and equipment - net | 36,389 | 37,498 |
Mortgage servicing rights | 2,847 | 2,762 |
Other real estate owned and repossessed assets - net | 15,992 | 11,885 |
Accrued interest receivable | 4,853 | 4,816 |
Cash surrender value - life insurance | 2,348 | 2,284 |
Other assets | 10,548 | 11,843 |
Total assets | 1,200,921 | 1,169,731 |
Deposits | ||
Non-interest bearing demand | 208,035 | 207,700 |
Savings, interest checking and money market | 441,080 | 442,131 |
Time deposits $100,000 and over | 132,244 | 134,945 |
Other time deposits | 165,838 | 184,738 |
Total deposits | 947,197 | 969,514 |
Federal funds purchased and securities sold under agreements to repurchase | 56,834 | 17,970 |
Subordinated notes | 49,486 | 49,486 |
Federal Home Loan Bank advances | 50,000 | 43,000 |
Accrued interest payable | 382 | 373 |
Other liabilities | 9,736 | 8,820 |
Total liabilities | 1,113,635 | 1,089,163 |
Stockholders' equity: | ||
Common stock, $1 par value, authorized 15,000,000 shares; issued 5,605,203 and 5,395,844 shares, respectively | 5,605 | 5,396 |
Surplus | 38,549 | 35,901 |
Retained earnings | 48,700 | 44,016 |
Accumulated other comprehensive loss, net of tax | (2,018) | (1,228) |
Treasury stock; 164,013 and 161,858 shares, at cost, respectively | (3,550) | (3,517) |
Total stockholders' equity | 87,286 | 80,568 |
Total liabilities and stockholders' equity | $ 1,200,921 | $ 1,169,731 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
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 | 5,605,203 | 5,395,844 |
Treasury stock, shares | 164,013 | 161,858 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
INTEREST INCOME | |||
Interest and fees on loans | $ 41,267 | $ 40,274 | $ 41,110 |
Interest on investment securities: | |||
Taxable | 3,554 | 3,394 | 3,592 |
Nontaxable | 681 | 722 | 844 |
Federal funds sold and other overnight interest-bearing deposits | 38 | 28 | 37 |
Dividends on other securities | 216 | 80 | 82 |
Total interest income | 45,756 | 44,498 | 45,665 |
Interest on deposits: | |||
Savings, interest checking and money market | 970 | 968 | 974 |
Time deposit accounts $100,000 and over | 867 | 940 | 1,142 |
Other time deposits | 1,090 | 1,384 | 2,498 |
Interest on federal funds purchased and securities sold under agreements to repurchase | 56 | 21 | 24 |
Interest on subordinated notes | 1,293 | 1,264 | 1,284 |
Interest on Federal Home Loan Bank advances | 723 | 467 | 420 |
Total interest expense | 4,999 | 5,044 | 6,342 |
Net interest income | 40,757 | 39,454 | 39,323 |
Provision for loan losses | 250 | 0 | 2,030 |
Net interest income after provision for loan losses | 40,507 | 39,454 | 37,293 |
NON-INTEREST INCOME | |||
Service charges and other fees | 3,477 | 3,743 | 4,165 |
Bank card income and fees | 2,455 | 2,368 | 2,200 |
Trust department income | 929 | 844 | 796 |
Real estate servicing fees, net | 573 | 319 | 876 |
Gain on sale of mortgage loans, net | 1,386 | 1,093 | 1,944 |
Gain on sale of investment securities | 8 | 20 | 778 |
Other | 338 | 362 | 107 |
Total non-interest income | 9,166 | 8,749 | 10,866 |
NON-INTEREST EXPENSE | |||
Salaries and employee benefits | 20,792 | 20,377 | 19,542 |
Occupancy expense, net | 2,792 | 2,660 | 2,630 |
Furniture and equipment expense | 1,844 | 1,823 | 2,007 |
Processing , network, and bank card expense | 3,363 | 3,203 | 3,668 |
Legal, examination, and professional fees | 1,321 | 1,159 | 982 |
FDIC insurance assessment | 867 | 933 | 992 |
Advertising and promotion | 1,111 | 1,274 | 1,301 |
Postage, printing, and supplies | 1,120 | 1,117 | 1,210 |
Real estate foreclosure (gains) expense, net | (223) | 845 | 4,924 |
Other | 3,507 | 3,116 | 3,507 |
Total non-interest expense | 36,494 | 36,507 | 40,763 |
Income before income taxes | 13,179 | 11,696 | 7,396 |
Income tax expense | 4,580 | 4,042 | 2,422 |
Net income | 8,599 | 7,654 | 4,974 |
Preferred stock dividends and accretion of discount | 0 | 0 | 615 |
Net income available to common shareholders | $ 8,599 | $ 7,654 | $ 4,359 |
Basic earnings per share | $ 1.58 | $ 1.41 | $ 0.80 |
Diluted earnings per share | $ 1.58 | $ 1.41 | $ 0.80 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Consolidated Statements of Comprehensive Income | |||
Net income | $ 8,599 | $ 7,654 | $ 4,974 |
Securities available for sale: | |||
Unrealized (loss) gain on investment securities available-for-sale, net of tax | (800) | 1,717 | (4,275) |
Adjustment for gain on sales of investment securities, net of tax | (5) | (12) | (482) |
Defined benefit pension plans: | |||
Net gain (loss) arising during the year, net of tax | 3 | (2,212) | 2,095 |
Amortization of prior service cost included in net periodic pension cost, net of tax | 12 | 48 | 68 |
Total other comprehensive loss | (790) | (459) | (2,594) |
Total comprehensive income | $ 7,809 | $ 7,195 | $ 2,380 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Preferred Stock | Common Stock | Surplus | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Treasury Stock | Total |
Balance at Dec. 31, 2012 | $ 17,977 | $ 5,001 | $ 31,816 | $ 39,118 | $ 1,825 | $ (3,517) | $ 92,220 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 0 | 0 | 0 | 4,974 | 0 | 0 | 4,974 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | (2,594) | 0 | (2,594) |
Stock based compensation expense | 0 | 0 | 19 | 0 | 0 | 0 | 19 |
Accretion of preferred stock discount | 278 | 0 | 0 | (278) | 0 | 0 | 0 |
Redemption of 18,255 shares of preferred stock | (18,255) | 0 | 0 | 0 | 0 | 0 | (18,255) |
Redemption of common stock warrant | 0 | 0 | (540) | 0 | 0 | 0 | (540) |
Stock dividend | 0 | 194 | 2,090 | (2,284) | 0 | 0 | 0 |
Cash dividends declared, preferred stock | 0 | 0 | 0 | (456) | 0 | 0 | (456) |
Cash dividends declared, common stock | 0 | 0 | 0 | (988) | 0 | 0 | (988) |
Balance at Dec. 31, 2013 | 0 | 5,195 | 33,385 | 40,086 | (769) | (3,517) | 74,380 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 0 | 0 | 0 | 7,654 | 0 | 0 | 7,654 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | (459) | 0 | (459) |
Stock based compensation expense | 0 | 0 | 20 | 0 | 0 | 0 | 20 |
Stock dividend | 0 | 201 | 2,496 | (2,697) | 0 | 0 | 0 |
Cash dividends declared, common stock | 0 | 0 | 0 | (1,027) | 0 | 0 | (1,027) |
Balance at Dec. 31, 2014 | 0 | 5,396 | 35,901 | 44,016 | (1,228) | (3,517) | 80,568 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 0 | 0 | 0 | 8,599 | 0 | 0 | 8,599 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | (790) | 0 | (790) |
Stock based compensation expense | 0 | 0 | 10 | 0 | 0 | 0 | 10 |
Stock dividend | 0 | 209 | 2,638 | (2,847) | 0 | 0 | 0 |
Purchase of treasury stock | 0 | 0 | 0 | 0 | 0 | (33) | (33) |
Cash dividends declared, common stock | 0 | 0 | 0 | (1,068) | 0 | 0 | (1,068) |
Balance at Dec. 31, 2015 | $ 0 | $ 5,605 | $ 38,549 | $ 48,700 | $ (2,018) | $ (3,550) | $ 87,286 |
Consolidated Statements of Sto7
Consolidated Statements of Stockholders' Equity (Parentheticals) | 12 Months Ended |
Dec. 31, 2013shares | |
Preferred Stock | |
Redemption of preferred shares | 18,255 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net income | $ 8,599 | $ 7,654 | $ 4,974 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for loan losses | 250 | 0 | 2,030 |
Depreciation expense | 1,810 | 1,758 | 1,605 |
Net amortization of investment securities, premiums, and discounts | 1,317 | 1,058 | 1,211 |
Amortization of intangible assets | 0 | 0 | 135 |
Stock based compensation expense | 10 | 20 | 19 |
Change in fair value of mortgage servicing rights | 301 | 576 | 25 |
Gain on sale of investment securities | (8) | (20) | (778) |
Gain on sales and dispositions of premises and equipment | (8) | (60) | (6) |
Gain (loss) on sales and dispositions of other real estate owned and repossessed assets | (156) | (188) | 330 |
Provision for other real estate owned | 17 | 585 | 3,367 |
(Increase) decrease in accrued interest receivable | (37) | 183 | 191 |
Increase in cash surrender value - life insurance | (64) | (71) | (77) |
Decrease (increase) in other assets | 1,212 | (479) | 4,311 |
Decrease (increase) in income tax receivable | 621 | (826) | 524 |
Increase (decrease) in accrued interest payable | 9 | (53) | (483) |
Decrease in other liabilities | 911 | 966 | 1,113 |
Origination of mortgage loans for sale | (51,307) | (35,434) | (72,100) |
Proceeds from the sale of mortgage loans | 51,503 | 36,623 | 76,240 |
Gain on sale of mortgage loans, net | (1,386) | (1,093) | (1,944) |
Other, net | (252) | 2,355 | (444) |
Net cash provided by operating activities | 13,342 | 13,554 | 20,243 |
Cash flows from investing activities: | |||
Net increase in loans | (9,226) | (28,357) | (2,525) |
Purchase of available-for-sale debt securities | (102,367) | (48,942) | (88,137) |
Proceeds from maturities of available-for-sale debt securities | 36,143 | 23,702 | 33,341 |
Proceeds from calls of available-for-sale debt securities | 26,840 | 28,605 | 8,275 |
Proceeds from sales of available-for-sale debt securities | 720 | 5,334 | 32,590 |
Proceeds from sales of FHLB stock | 1,600 | 439 | 536 |
Purchases of FHLB stock | (4,915) | (1,160) | (612) |
Purchases of premises and equipment | (872) | (1,342) | (2,680) |
Proceeds from sales of premises and equipment | 11 | 65 | 23 |
Proceeds from sales of other real estate owned and repossessed assets | 1,836 | 4,560 | 9,641 |
Net cash used by investing activities | (50,230) | (17,096) | (9,548) |
Cash flows from financing activities: | |||
Net increase (decrease) in demand deposits | 335 | 20,318 | (4,889) |
Net (decrease) increase in interest-bearing transaction accounts | (1,051) | 22,974 | 13,383 |
Net decrease in time deposits | (21,601) | (30,249) | (43,298) |
Net increase (decrease) in federal funds purchased and securities sold under agreements to repurchase | 38,864 | (13,114) | 10,026 |
Repayment of FHLB advances | (85,000) | (10,000) | (15,126) |
FHLB advances | 92,000 | 29,000 | 19,000 |
Redemption of 18,255 of preferred stock | 0 | 0 | (18,255) |
Warrant redemption | 0 | 0 | (540) |
Purchase of treasury stock | (33) | 0 | 0 |
Cash dividends paid - preferred stock | 0 | 0 | (456) |
Cash dividends paid - common stock | (1,058) | (1,017) | (978) |
Net cash provided (used) by financing activities | 22,456 | 17,912 | (41,133) |
Net (decrease) increase in cash and cash equivalents | (14,432) | 14,370 | (30,438) |
Cash and cash equivalents, beginning of year | 42,809 | 28,439 | 58,877 |
Cash and cash equivalents, end of year | 28,377 | 42,809 | 28,439 |
Cash paid during the year for: | |||
Interest | 4,992 | 5,097 | 6,825 |
Income taxes | 3,509 | 2,265 | 131 |
Supplemental schedule of noncash investing and financing activities: | |||
Other real estate and repossessions acquired in settlement of loans | $ 5,804 | $ 1,975 | $ 4,613 |
Consolidated Statements of Cas9
Consolidated Statements of Cash Flows (Parentheticals) | 12 Months Ended |
Dec. 31, 2013shares | |
Preferred Stock | |
Redemption of preferred shares | 18,255 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
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 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 consolidated financial statements of the Company have been prepared in conformity with U.S. generally accepted accounting principles (U.S. GAAP). 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. The significant accounting policies used by the Company in the preparation of the consolidated financial statements are summarized below: Principles of Consolidation In December of 2008 and March of 2010, the Company formed Hawthorn Real Estate, LLC, and Real Estate Holdings of Missouri, LLC, respectively (the Real Estate Companies); both are wholly owned subsidiaries of the Company. The consolidated financial statements include the accounts of the Company, Hawthorn Bank (the Bank), and the Real Estate Companies. All significant intercompany accounts and transactions have been eliminated in consolidation. Loans Loans that the Company has the intent and ability to hold for the foreseeable future or maturity are held for investment at their stated unpaid principal balance amount less unearned income and the allowance for loan losses. Income on loans is accrued on a simple-interest basis. Loan origination fees and certain direct costs are deferred and recognized over the life of the loan as an adjustment to yield. Loans Held for Sale The Bank originates certain loans, which are sold in the secondary market. These loans are classified as held for sale upon origination based on management’s intent to sell and are accounted for at the lower of adjusted cost or fair value. Adjusted cost reflects the funded loan amount and any loan origination costs and fees. In order to manage the risk associated with such activities, the Company upon locking in an interest rate with the borrower enters into an agreement to sell such loans in the secondary market. Loans held for sale are typically sold with servicing rights retained and without recourse except for normal and customary representation and warranty provisions. Mortgage loans held for sale were $1.2 million at December 31, 2015 compared to no loans held for sale at December 31, 2014. Impaired Loans A loan is considered impaired when it is probable the Company will be unable to collect all amounts due, both principal and interest, according to the contractual terms of the loan agreement. Included in impaired loans are all non-accrual loans and loans whose terms have been modified in a troubled debt restructuring. Impaired loans are individually evaluated for impairment based on fair values of the underlying collateral, obtained through independent appraisals or internal valuations for a collateral dependent loan or by discounting the total expected future cash flows. Non-Accrual Loans Loans are placed on nonaccrual status when management believes that the borrower’s financial condition, after consideration of business conditions and collection efforts, is such that collection of interest is doubtful. Loans that are contractually 90 days past due as to principal and/or interest payments are generally placed on non-accrual, unless they are both well-secured and in the process of collection. Subsequent interest payments received on such loans are applied to principal if doubt exists as to the collectability of such principal; otherwise, such receipts are recorded as interest income on a cash basis. A loan remains on nonaccrual status until the loan is current as to payment of both principal and interest and/or the borrower demonstrates the ability to pay and remain current. Restructured Loans A loan is accounted for as a troubled debt restructuring (TDR) if the Company, for economic or legal reasons related to the borrowers’ financial difficulties, grants a concession to the borrower that it would not otherwise consider. A TDR typically involves (1) modification of terms such as a reduction of the stated interest rate, loan principal, accrued interest, or an extended maturity date (2) a loan renewal at a stated interest rate lower than the current market rate for a new loan with similar risk, or (3) debt that was not reaffirmed in bankruptcy. Nonperforming TDRs are returned to performing status once the borrower demonstrates the ability to pay under the terms of the restructured note through a sustained period of repayment performance, which is generally six months. The Company includes all performing and non-performing TDRs in the impaired and non-performing asset totals. The Company measures the impairment loss of a TDR in the same manner as described below. TDRs which are performing under their contractual terms continue to accrue interest which is recognized in current earnings. Allowance for Loan Losses Management has identified the accounting policy related to the allowance for loan losses as critical to the understanding of the Company’s results of operations, since the application of this policy requires significant management assumptions and estimates that could result in materially different amounts to be reported if conditions or underlying circumstances were to change. Many of the loans are deemed collateral dependent for purposes of the measurement of the impairment loss, thus the fair value of the underlying collateral and sensitivity of such fair values due to changing market conditions, supply and demand, condition of the collateral and other factors can be volatile over periods of time. Such volatility can have an impact on the financial performance of the Company. Loans, or portions of loans, are charged off to the extent deemed uncollectible or a loss is confirmed. When loans become 90 days past due, they are generally placed on nonaccrual status or charged off unless extenuating circumstances justify leaving the loan on accrual basis. When loans reach 120 days past due and there is little likelihood of repayment, they are charged off. 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. The specific reserve component The incurred loss component Investment in Debt and Equity Securities At the time of purchase, debt securities are classified into one of two categories: available-for-sale or held-to-maturity. Held-to-maturity securities are those securities which the Company has the positive intent and ability to hold until maturity. All debt securities not classified as held-to-maturity are classified as available-for-sale. The Company’s securities are classified as available-for-sale and are carried at fair value. Changes in fair value, excluding certain losses associated with other-than-temporary impairment, are reported in other comprehensive income, net of taxes, a component of stockholders’ equity. Securities are periodically evaluated for other-than-temporary impairment in accordance with guidance provided in the FASB ASC Topic 320, Investments – Debt and Equity Securities. Premiums and discounts are amortized using the interest method over the lives of the respective securities, with consideration of historical and estimated prepayment rates for mortgage-backed securities, as an adjustment to yield. Dividend and interest income are recognized when earned. Realized gains and losses for securities classified as available-for-sale are included in earnings based on the specific identification method for determining the cost of securities sold. Capital Stock of the Federal Home Loan Bank The Bank, as a member of the Federal Home Loan Bank System administered by the Federal Housing Finance Agency, is required to maintain an investment in the capital stock of the Federal Home Loan Bank of Des Moines (FHLB) in an amount equal to 12 basis points of the Bank’s year-end total assets plus 4.00% of advances from the FHLB to the Bank. These invest-ments are recorded at cost, which represents redemption value. Premises and Equipment Premises and equipment are stated at cost, less accumulated depreciation. Depreciation applicable to buildings and improve-ments and furniture and equipment is charged to expense using straight-line and accelerated methods over the estimated useful lives of the assets. Such lives are estimated to be 5 to 40 years for buildings and improvements and 3 to 15 years for furniture and equipment. Maintenance and repairs are charged to expense as incurred. Core Deposit Intangibles Intangible assets that have finite useful lives, such as core deposit intangibles, are amortized over their estimated useful lives. Core deposit intangibles are amortized over periods of 7 to 8 years representing their estimated lives using straight line and accelerated methods. When facts and circumstances indicate potential impairment of amortizable intangible assets, the Company evaluates the recoverability of the carrying value based upon future cash flows expected to result from the use of the underlying asset and its eventual disposition. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying value of the underlying asset, the Company recognizes an impairment loss. The impairment loss recognized represents the amount by which the carrying value of the underlying asset exceeds the fair value of the underlying asset. Mortgage Servicing Rights The Company originates and sells residential mortgage loans in the secondary market and may retain the right to service the loans sold. Servicing involves the collection of payments from individual borrowers and the distribution of those payments to the investors or master servicer. Upon a sale of mortgage loans for which servicing rights are retained, the retained mortgage servicing rights asset is capitalized at the fair value of future net cash flows expected to be realized for performing servicing activities. Mortgage servicing rights do not trade in an active market with readily observable prices. The Company determines the fair value of mortgage servicing rights by estimating the fair value of the future cash flows associated with the mortgage loans being serviced. Key economic assumptions used in measuring the fair value of mortgage servicing rights include, but are not limited to, prepayment speeds, discount rates, delinquencies, ancillary income, and cost to service. These assumptions are validated on a periodic basis. The fair value is validated on a quarterly basis with an independent third party valuation specialist firm. In addition to the changes in fair value of the mortgage servicing rights, the Company also recorded loan servicing fee income as part of real estate servicing fees, net in the statement of income. Loan servicing fee income represents revenue earned for servicing mortgage loans. The servicing fees are based on contractual percentage of the outstanding principal balance and recognized as revenue as the related mortgage payments are collected. Corresponding loan servicing costs are changed to expense as incurred. Other Real Estate Owned and Repossessed Assets Other real estate owned and repossessed assets consist 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. Other real estate owned assets are initially recorded as held for sale at the fair value of the collateral less estimated selling costs. Any adjustment is recorded as a charge-off against the allowance for loan losses. The Company relies on external appraisals and assessment of property values by internal staff. In the case of non-real estate collateral, reliance is placed on a variety of sources, including external estimates of value and judgment based on experience and expertise of internal specialists. Subsequent to foreclosure, valuations are updated periodically, and the assets may be written down to reflect a new cost basis. The write-downs are recorded as other real estate expense. The Company establishes a valuation allowance related to other real estate owned on an asset-by-asset basis. The valuation allowance is created during the holding period when the fair value less cost to sell is lower than the cost of the property. Pension Plan The Company provides a noncontributory defined benefit pension plan for all full-time employees. The benefits are based on age, years of service and the level of compensation during the employees highest ten years of compensation before retirement. Net periodic costs are recognized as employees render the services necessary to earn the retirement benefits. The Company records annual amounts relating to its pension plan based on calculations that incorporate various actuarial and other assumptions including discount rates, mortality, assumed rates of return, compensation increases, and turnover rates. The Company reviews its assumptions on an annual basis and may make modifications to the assumptions based on current rates and trends when it is appropriate to do so. The Company believes that the assumptions utilized in recording its obligations under its plan are reasonable based on its experience and market conditions. The Company follows authoritative guidance included in the FASB ASC Topic 715, under the subtopic ASC Topic 715 requires an employer to recognize the overfunded or underfunded status of a defined benefit postretirement plan (other than a multiemployer plan) as an asset or liability in its consolidated balance sheet and to recognize changes in the funded status in the year in which the changes occur through comprehensive income. This guidance also requires an employer to measure the funded status of a plan as of the date of its fiscal year-end, with limited exceptions. Additional disclosures are required to provide users with an understanding of how investment allocation decisions are made, major categories of plan assets, and fair value measurement of plan assets as defined in ASC Topic 820 . Income Taxes Income taxes are accounted for under the asset / liability method by recognizing the amount of taxes payable or refundable for the current period and deferred tax assets and liabilities for future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. Judgment is required in addressing the Company’s future tax consequences of events that have been recognized in the consolidated financial statements or tax returns such as realization of the effects of temporary differences, net operating loss carry forwards and changes in tax laws or interpretations thereof. A valuation allowance is established when in the judgment of management, it is more likely than not that such deferred tax assets will not become realizable. In this case, the Company would adjust the recorded value of our deferred tax asset, which would result in a direct charge to income tax expense in the period that the determination was made. Likewise, the Company would reverse the valuation allowance when it is expected to realize the deferred tax asset. The Company has not recognized any tax liabilities or any interest or penalties in income tax expense related to uncertain tax positions as of December 31, 2015, 2014, and 2013. Trust Department Property held by the Bank in a fiduciary or agency capacity for customers is not included in the accompanying consolidated balance sheets, since such items are not assets of the Company. Trust department income is recognized on the accrual basis. Consolidated Statements of Cash Flows For the purpose of the consolidated statements of cash flows, cash and cash equivalents consist of short-term federal funds sold and securities sold or purchased under agreements to resell, interest earning deposits with banks, cash, and due from banks. Stock-Based Compensation The Company’s stock-based employee compensation plan is described in Note 12, Stock Compensation. In accordance with FASB ASC Topic 718, Compensation – Stock Compensation, Treasury Stock The purchase of the Company’s common stock is recorded at cost. Purchases of the stock are made both in the open market and through negotiated private purchases based on market prices. At the date of subsequent reissue, the treasury stock account is reduced by the cost associated with such stock on a first-in-first-out basis. Reclassifications Certain prior year information has been reclassified to conform to the current year presentation. The following represents significant new accounting principles adopted in 2015: Investments – Equity Method and Joint Ventures The FASB issued ASU No. 2014-01, Accounting for Investments in Qualified Affordable Housing Projects Troubled Debt Restructurings by Creditors The FASB issued ASU No. 2014-04, Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure The FASB issued ASU No. 2014-14, Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2015 | |
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 December 31, 2015 and 2014 is as follows: (in thousands) 2015 2014 Commercial, financial, and agricultural $ 149,091 $ 154,834 Real estate construction - residential 16,895 18,103 Real estate construction - commercial 33,943 48,822 Real estate mortgage - residential 256,086 247,117 Real estate mortgage - commercial 385,869 372,321 Installment and other consumer 23,196 20,016 Total loans $ 865,080 $ 861,213 The Bank grants real estate, commercial, installment, and other consumer loans to customers located within the 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 vehicles. At December 31, 2015, loans with a carrying value of $421.8 million, or $350.5 million fair value, were pledged to the Federal Home Loan Bank as collateral for borrowings and letters of credit. The following is a summary of loans to directors and executive officers or to entities in which such individuals had a beneficial interest of the Company, are summarized as follows: (in thousands) Balance at December 31, 2014 $ 4,940 New loans 286 Amounts collected (499 ) Balance at December 31, 2015 $ 4,727 Such loans were made in the normal course of business on substantially the same terms, including interest rates and collateral requirements, as those prevailing at the same time for comparable transactions with other persons, and did not involve more than the normal risk of collectability or present unfavorable features. Allowance for loan losses The following is a summary of the allowance for loan losses for the years ended December 31, 2015, 2014, and 2013: Commercial, Real Estate Real Estate Real Estate Real Estate Installment Financial, & Construction - Construction - Mortgage - Mortgage - Loans to Un- (in thousands) Agricultural Residential Commercial Residential Commercial Individuals allocated Total Balance at December 31, 2012 $ 1,937 $ 732 $ 1,711 $ 3,387 $ 6,834 $ 239 $ 2 $ 14,842 Additions: Provision for loan losses 992 318 (452 ) 273 622 272 5 2,030 Deductions: Loans charged off 895 119 633 812 1,301 420 0 4,180 Less recoveries on loans (340 ) 0 (5 ) (111 ) (368 ) (203 ) 0 (1,027 ) Net loans charged off 555 119 628 701 933 217 0 3,153 Balance at December 31, 2013 $ 2,374 $ 931 $ 631 $ 2,959 $ 6,523 $ 294 $ 7 $ 13,719 Additions: Provision for loan losses 371 (592 ) 326 (226 ) (107 ) 195 33 0 Deductions: Loans charged off 1,285 349 491 408 2,890 405 0 5,828 Less recoveries on loans (319 ) (181 ) 0 (202 ) (320 ) (186 ) 0 (1,208 ) Net loans charged off 966 168 491 206 2,570 219 0 4,620 Balance at December 31, 2014 $ 1,779 $ 171 $ 466 $ 2,527 $ 3,846 $ 270 $ 40 $ 9,099 Additions: Provision for loan losses 833 (434 ) 193 153 (713 ) 157 61 250 Deductions: Loans charged off 1,131 0 15 379 363 302 0 2,190 Less recoveries on loans (672 ) (322 ) 0 (138 ) (165 ) (148 ) 0 (1,445 ) Net loans charged off 459 (322 ) 15 241 198 154 0 745 Balance at December 31, 2015 $ 2,153 $ 59 $ 644 $ 2,439 $ 2,935 $ 273 $ 101 $ 8,604 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. The following table provides the balance in the allowance for loan losses at December 31, 2015 and 2014, and the related loan balance by impairment methodology. Commercial, Real Estate Real Estate Real Estate Real Estate Installment Financial, and Construction - Construction - Mortgage - Mortgage - Loans to Un- (in thousands) Agricultural Residential Commercial Residential Commercial Individuals allocated Total December 31, 2015 Allowance for loan losses: Individually evaluated for impairment $ 285 $ 0 $ 15 $ 955 $ 266 $ 19 $ 0 $ 1,540 Collectively evaluated for impairment 1,868 59 629 1,484 2,669 254 101 7,064 Total $ 2,153 $ 59 $ 644 $ 2,439 $ 2,935 $ 273 $ 101 $ 8,604 Loans outstanding: Individually evaluated for impairment $ 1,005 $ 0 $ 102 $ 5,936 $ 3,081 $ 144 $ 0 $ 10,268 Collectively evaluated for impairment 148,086 16,895 33,841 250,150 382,788 23,052 0 854,812 Total $ 149,091 $ 16,895 $ 33,943 $ 256,086 $ 385,869 $ 23,196 $ 0 $ 865,080 December 31, 2014 Allowance for loan losses: Individually evaluated for impairment $ 134 $ 0 $ 0 $ 1,343 $ 246 $ 26 $ 0 $ 1,749 Collectively evaluated for impairment 1,645 171 466 1,184 3,600 244 40 7,350 Total $ 1,779 $ 171 $ 466 $ 2,527 $ 3,846 $ 270 $ 40 $ 9,099 Loans outstanding: Individually evaluated for impairment $ 7,541 $ 1,750 $ 2,096 $ 7,878 $ 16,464 $ 234 $ 0 $ 35,963 Collectively evaluated for impairment 147,293 16,353 46,726 239,239 355,857 19,782 0 825,250 Total $ 154,834 $ 18,103 $ 48,822 $ 247,117 $ 372,321 $ 20,016 $ 0 $ 861,213 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 $36.0 million at December 31, 2015 and 2014, 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 December 31, 2015 and 2014, $6.4 million and $15.6 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 December 31, 2015, $1.5 million of the Company’s allowance for loan losses was allocated to impaired loans totaling $10.3 million compared to $1.7 million of the Company's allowance for loan losses allocated to impaired loans totaling approximately $36.0 million at December 31, 2014. Management determined that $4.5 million, or 44%, of total impaired loans required no reserve allocation at December 31, 2015 compared to $28.5 million, or 79%, at December 31, 2014 primarily due to adequate collateral values , The categories of impaired loans at December 31, 2015 and 2014 are as follows: (in thousands) 2015 2014 Non-accrual loans $ 4,418 $ 18,243 Performing TDRs 5,850 17,720 Total impaired loans $ 10,268 $ 35,963 The following tables provide additional information about impaired loans at December 31, 2015 and 2014, 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 December 31, 2015 With no related allowance recorded: Commercial, financial and agricultural $ 448 $ 450 $ 0 Real estate - residential 1,645 1,712 0 Real estate - commercial 2,446 2,572 0 Total $ 4,539 $ 4,734 $ 0 With an allowance recorded: Commercial, financial and agricultural $ 557 $ 572 $ 285 Real estate - construction commercial 102 115 15 Real estate - residential 4,291 4,320 955 Real estate - commercial 635 884 266 Consumer 144 182 19 Total $ 5,729 $ 6,073 $ 1,540 Total impaired loans $ 10,268 $ 10,807 $ 1,540 Unpaid Recorded Principal Specific (in thousands) Investment Balance Reserves December 31, 2014 With no related allowance recorded: Commercial, financial and agricultural $ 6,021 $ 6,232 $ 0 Real estate - construction residential 1,750 2,259 0 Real estate - construction commercial 2,096 2,319 0 Real estate - residential 3,213 3,270 0 Real estate - commercial 15,409 18,950 0 Consumer 36 36 0 Total $ 28,525 $ 33,066 $ 0 With an allowance recorded: Commercial, financial and agricultural $ 1,520 $ 1,528 $ 134 Real estate - residential 4,665 3,546 1,343 Real estate - commercial 1,055 1,171 246 Consumer 198 237 26 Total $ 7,438 $ 6,482 $ 1,749 Total impaired loans $ 35,963 $ 39,548 $ 1,749 The following table presents by class, information related to the average recorded investment and interest income recognized on impaired loans for the years ended December 31, 2015 and 2014: 2015 2014 Interest Interest Average Recognized Average Recognized Recorded For the Recorded For the (in thousands) Investment Period Ended Investment Period Ended With no related allowance recorded: Commercial, financial and agricultural $ 2,949 $ 39 $ 3,141 $ 94 Real estate - construction residential 536 0 610 2 Real estate - construction commercial 1,105 0 5,950 0 Real estate - residential 2,331 37 3,517 46 Real estate - commercial 5,169 119 13,703 400 Consumer 7 1 11 0 Total $ 12,097 $ 196 $ 26,932 $ 542 With an allowance recorded: Commercial, financial and agricultural $ 1,356 $ 22 $ 1,773 $ 19 Real estate - construction residential 0 0 1,697 0 Real estate - construction commercial 52 0 42 0 Real estate - residential 4,625 110 5,118 129 Real estate - commercial 1,161 0 3,810 11 Consumer 183 0 312 0 Total $ 7,377 $ 132 $ 12,752 $ 159 Total impaired loans $ 19,474 $ 328 $ 39,684 $ 701 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 $328,000 and $701,000, for the years ended December 31, 2015 and 2014, respectively. The average recorded investment in impaired loans is calculated on a monthly basis during the years 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 collectibility 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 collectibility 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 December 31, 2015 and 2014. (in thousands) Current or 30-89 Days 90 Days Non-Accrual Total December 31, 2015 Commercial, Financial, and Agricultural $ 148,597 $ 185 $ 1 $ 308 $ 149,091 Real Estate Construction - Residential 16,830 0 0 0 16,830 Real Estate Construction - Commercial 33,472 65 0 102 33,639 Real Estate Mortgage - Residential 251,253 2,511 0 2,322 256,086 Real Estate Mortgage - Commercial 384,053 643 0 1,542 386,238 Installment and Other Consumer 22,840 207 5 144 23,196 Total $ 857,045 $ 3,611 $ 6 $ 4,418 $ 865,080 December 31, 2014 Commercial, Financial, and Agricultural $ 149,366 $ 189 $ 0 $ 5,279 $ 154,834 Real Estate Construction - Residential 16,352 0 0 1,751 18,103 Real Estate Construction - Commercial 46,670 0 56 2,096 48,822 Real Estate Mortgage - Residential 239,469 3,229 0 4,419 247,117 Real Estate Mortgage - Commercial 366,653 1,203 0 4,465 372,321 Installment and Other Consumer 19,551 230 2 233 20,016 Total $ 838,061 $ 4,851 $ 58 $ 18,243 $ 861,213 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 December 31, 2015 and 2014. (in thousands) Commercial, Financial, & Agricultural Real Estate Construction - Residential Real Estate Construction - Commercial Real Estate Mortgage - Residential Real Estate Mortgage - Commercial Installment and other Consumer Total At December 31, 2015 Watch $ 8,663 $ 1,267 $ 1,296 $ 22,191 $ 24,303 $ 186 $ 57,906 Substandard 421 0 37 3,737 1,485 36 5,716 Performing TDRs 697 0 0 3,615 1,538 0 5,850 Non-accrual 308 0 102 2,322 1,542 144 4,418 Total $ 10,089 $ 1,267 $ 1,435 $ 31,865 $ 28,868 $ 366 $ 73,890 At December 31, 2014 Watch $ 13,651 $ 1,103 $ 4,757 $ 27,172 $ 18,191 $ 199 $ 65,073 Substandard 926 90 1,211 3,124 4,102 139 9,592 Performing TDRs 2,262 0 0 3,459 11,999 0 17,720 Non-accrual 5,279 1,751 2,096 4,419 4,465 233 18,243 Total $ 22,118 $ 2,944 $ 8,064 $ 38,174 $ 38,757 $ 571 $ 110,628 Troubled Debt Restructurings At December 31, 2015, loans classified as TDRs totaled $6.4 million, of which $527,000 were classified as nonperforming TDRs and included in non-accrual loans and $5.9 million were classified as performing TDRs. At December 31, 2014, TDRs totaled $19.3 million, of which $1.6 million were classified as nonperforming TDRs included in non-accrual loans and $17.7 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 $1.0 million related to TDRs were allocated to the allowance for loan losses at December 31, 2015 and 2014. The following table summarizes loans that were modified as TDRs during the years ended December 31, 2015 and 2014. 2015 2014 Recorded Investment (1) Recorded Investment (1) (in thousands) Number of Contracts Pre- Modification Post- Modification Number of Contracts Pre- Modification Post- Modification Troubled Debt Restructurings Commercial, financial and agricultural 2 $ 250 $ 229 3 $ 244 $ 208 Real estate mortgage - residential 1 519 374 1 1,256 1,170 Real estate mortgage - commercial 4 1,273 1,249 0 0 0 Total 7 $ 2,042 $ 1,852 4 $ 1,500 $ 1,378 (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 due to deteriorated financial condition such as interest rates below the current market rate, deferring principal payments, and extending maturity dates. During the year ended December 31, 2015, seven loans meeting the TDR criteria were modified compared to four loans during the year ended December 31, 2014. Upon default of a TDR, which is considered to be 90 days or more past due under the modified terms, impairment is measured based on the fair value of the underlying collateral less applicable selling costs. The impairment amount is either charged off as a reduction to the allowance for loan losses, provided for as a specific reserve within the allowance for loan losses, or in the process of foreclosure. There were no TDRs that defaulted within twelve months of its modification date during the year ended December 31, 2015 and two loans modified as a TDR that defaulted during the year December 31, 2014. |
Real Estate and Other Assets Ac
Real Estate and Other Assets Acquired in Settlement of Loans | 12 Months Ended |
Dec. 31, 2015 | |
Other Real Estate [Abstract] | |
Real Estate and Other Assets Acquired in Settlement of Loans | (3) Real Estate and Other Assets Acquired in Settlement of Loans (in thousands) 2015 2014 Commercial $ 1,445 $ 0 Real estate construction - residential 0 23 Real estate construction - commercial 12,380 9,831 Real estate mortgage - residential 477 417 Real estate mortgage - commercial 4,923 4,831 Repossessed assets 0 38 Total $ 19,225 $ 15,140 Less valuation allowance for other real estate owned (3,233 ) (3,255 ) Total other real estate owned and foreclosed assets $ 15,992 $ 11,885 Changes in the net carrying amount of other real estate owned and repossessed assets for the years ended December 31, 2013 2014, and 2015, respectively, were as follows: Balance at December 31, 2013 $ 19,542 Additions 1,975 Proceeds from sales (4,560 ) Charge-offs against the valuation allowance for other real estate owned (2,005 ) Net gain on sales 188 Balance at December 31, 2014 $ 15,140 Additions 5,804 Proceeds from sales (1,836 ) Charge-offs against the valuation allowance for other real estate owned, net (39 ) Net gain on sales 156 Total other real estate owned and repossessed assets $ 19,225 Less valuation allowance for other real estate owned (3,233 ) Balance at December 31, 2015 $ 15,992 During the years ended December 31, 2015 and 2014, net charge-offs against the allowance for loan losses at the time of foreclosure were approximately $995,000 and $335,000, respectively. At December 31, 2015 $390,000 of consumer mortgage loans secured by residential real estate properties were in the process of foreclosure compared to $209,000 at December 31, 2014. Activity in the valuation allowance for other real estate owned in settlement of loans for the years ended December 31, 2015, 2014 and 2013, respectively, is summarized as follows: (in thousands) 2015 2014 2013 Balance, beginning of year $ 3,255 $ 4,675 $ 6,137 Provision for other real estate owned 17 585 3,367 Charge-offs (39 ) (2,005 ) (4,829 ) Balance, end of year $ 3,233 $ 3,255 $ 4,675 |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2015 | |
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 December 31, 2015 and 2014 are as follows: Gross Gross Amortized unrealized unrealized ( in thousands) cost gains losses Fair value December 31, 2015 Government sponsored enterprises $ 73,605 $ 127 $ 235 $ 73,497 Asset-backed securities 130,179 440 1,768 128,851 Obligations of states and political subdivisions 32,224 493 11 32,706 Total available for sale securities $ 236,008 $ 1,060 $ 2,014 $ 235,054 December 31, 2014 Government sponsored enterprises $ 57,002 $ 240 $ 143 $ 57,099 Asset-backed securities 106,726 855 1,119 106,462 Obligations of states and political subdivisions 34,925 583 71 35,437 Total available for sale securities $ 198,653 $ 1,678 $ 1,333 $ 198,998 All of the Company’s investment securities are classified as available for sale. Agency bonds and notes, 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 securities, and the Company’s interest in statutory trusts. These securities are reported at cost in other assets in the amount of $8.0 million and $4.7 million as of December 31, 2015 and 2014, respectively. Debt securities with carrying values aggregating approximately $182.7 million and $145.5 million at December 31, 2015 and December 31, 2014, 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 December 31, 2015, 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 $ 24,894 $ 24,890 Due after one year through five years 67,513 67,614 Due after five years through ten years 12,593 12,871 Due after ten years 829 828 Total 105,829 106,203 Asset-backed securities 130,179 128,851 Total available for sale securities $ 236,008 $ 235,054 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 December 31, 2015 and December 31, 2014 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 December 31, 2015 Government sponsored enterprises $ 43,539 $ (222 ) $ 1,002 $ (13 ) $ 44,541 $ (235 ) Asset-backed securities 56,095 (620 ) 43,576 (1,148 ) 99,671 (1,768 ) Obligations of states and political subdivisions 2,571 (6 ) 718 (5 ) 3,289 (11 ) Total $ 102,205 $ (848 ) $ 45,296 $ (1,166 ) $ 147,501 $ (2,014 ) (in thousands) At December 31, 2014 Government sponsored enterprises $ 2,983 $ (4 ) $ 17,862 $ (139 ) $ 20,845 $ (143 ) Asset-backed securities 10,314 (50 ) 45,445 (1,069 ) 55,759 (1,119 ) Obligations of states and political subdivisions 3,667 (15 ) 1,942 (56 ) 5,609 (71 ) Total $ 16,964 $ (69 ) $ 65,249 $ (1,264 ) $ 82,213 $ (1,333 ) The total available for sale portfolio consisted of approximately 316 securities at December 31, 2015. The portfolio included 71 securities having an aggregate fair value of $147.5 million that were in a loss position at December 31, 2015. Securities identified as temporarily impaired which had been in a loss position for 12 months or longer totaled $45.3 million at fair value. The $2.0 million aggregate unrealized loss included in accumulated other comprehensive income at December 31, 2015 was caused by interest rate fluctuations. The total available for sale portfolio consisted of approximately 300 securities at December 31, 2014. The portfolio included 74 securities having an aggregate fair value of $82.2 million that were in a loss position at December 31, 2014. Securities identified as temporarily impaired which had been in a loss position for 12 months or longer totaled $65.2 million at fair value. The $1.3 million aggregate unrealized loss included in accumulated other comprehensive income at December 31, 2014 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 December 31, 2015 and 2014. 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 it 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: (in thousands) 2015 2014 2013 Gains realized on sales $ 8 $ 86 $ 786 Losses realized on sales 0 (66 ) (8 ) Other-than-temporary impairment recognized 0 0 0 Investment securities gains $ 8 $ 20 $ 778 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Premises and Equipment | |
Premises and Equipment | (5) Premises and Equipment A summary of premises and equipment at December 31, 2015 and 2014 is as follows: (in thousands) 2015 2014 Land and land improvements $ 10,165 $ 10,152 Buildings and improvements 35,588 35,504 Furniture and equipment 12,906 12,016 Construction in progress 94 523 Total 58,753 58,195 Less accumulated depreciation 22,364 20,697 Premises and equipment, net $ 36,389 $ 37,498 Depreciation expense for the years ended December 31, 2015, 2014, and 2013 was as follows: (in thousands) 2015 2014 2013 Depreciation expense $ 1,810 $ 1,758 $ 1,605 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Intangible Assets | |
Intangible Assets | (6) Intangible Assets Core Deposit Intangible Asset Core deposit intangible assets in the amount of $4.8 million were fully amortized as of June 30, 2013. Amortization expense was $0, $0 and $135,000 for the years ended December 31, 2015, 2014 and 2013, respectively. Mortgage Servicing Rights At December 31, 2015 and 2014, respectively, the Company serviced mortgage loans for others totaling $312.1 million and $313.9 million, respectively. Mortgage loan servicing fees, reported as non-interest income, earned on loans sold were $873,000, $895,000, and $901,000, for the years ended December 31, 2015, 2014, and 2013, respectively. The table below presents changes in mortgage servicing rights (MSRs) for the years ended December 31, 2015, 2014, and 2013. (in thousands) 2015 2014 2013 Balance at beginning of year $ 2,762 $ 3,036 $ 2,549 Originated mortgage servicing rights 386 302 512 Changes in fair value: Due to change in model inputs and assumptions (1) 372 66 723 Other changes in fair value (2) (673 ) (642 ) (748 ) Amortization 0 0 0 Balance at end of year $ 2,847 $ 2,762 $ 3,036 (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 mortgage servicing rights as of the years ended December 31, 2015 and 2014: 2015 2014 Weighted-Average Constant Prepayment Rate 9.58 % 10.54 % Weighted-Average Note Rate 3.92 % 3.99 % Weighted-Average Discount Rate 9.16 % 9.21 % Weighted-Average Expected Life (in years) 5.90 5.70 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2015 | |
Deposits | |
Deposits | (7) Deposits The scheduled maturities of total time deposits as of the years ended December 31, 2015 and 2014 were as follows: (in thousands) 2015 2014 Due within: One year $ 201,418 $ 204,566 Two years 56,026 58,177 Three years 29,030 33,551 Four years 6,022 16,760 Five years 5,586 5,282 Thereafter 0 1,347 Total $ 298,082 $ 319,683 At December 31, 2015 and 2014, the Company had certificates and other time deposits in denominations of $100,000 or more with maturities as follows: (in thousands) 2015 2014 Due within: Three months or less $ 39,122 $ 33,488 Over three months through six months 30,704 29,381 Over six months through twelve months 30,432 35,308 Over twelve months 31,986 36,768 Total $ 132,244 $ 134,945 Total time deposits of more than $250,000 totaled $254.7 million and $253.9 million at December 31, 2015 and 2014, respectively. The Federal Reserve Bank required the Bank to maintain cash or balances of $1.6 million at December 31, 2015 and 2014 to satisfy reserve requirements. Average compensating balances held at correspondent banks were $544,000 and $408,000 at December 31, 2015 and 2014, respectively. The Bank maintains such compensating balances with correspondent banks to offset charges for services rendered by those banks. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2015 | |
Borrowings | |
Borrowings | (8) Borrowings Federal Funds Purchased and Securities Sold under Agreements to Repurchase (Repurchase Agreements) Information relating to federal funds purchased and repurchase agreements is as follows: (in thousands) Year End Weighted Rate Average Weighted Rate Average Balance Outstanding Maximum Outstanding at any Month End Balance at December 31, 2015 Federal funds purchased 0.70 % 0.41 % $ 658 $ 937 $ 0 Short-term repurchase agreements 0.10 0.17 30,266 58,464 56,834 Total $ 30,924 $ 59,401 $ 56,834 2014 Federal funds purchased 0.45 % 0.38 % $ 404 $ 0 $ 0 Short-term repurchase agreements 0.12 0.10 19,819 22,849 17,970 Total $ 20,223 $ 22,849 $ 17,970 The securities underlying the agreements to repurchase are under the control of the Bank. All securities sold under agreements to repurchase are secured by a portion of the Bank’s investment portfolio. Under agreements with unaffiliated banks, the Bank may borrow federal funds up to $40.0 million on an unsecured basis and $8.6 million on a secured basis at December 31, 2015. Subordinated Notes and Other Borrowings Other borrowings of the Company consisted of the following: (in thousands) 2015 2014 Borrower Maturity Date Year End Balance Year End Weighted Rate Year End Balance Year End Weighted Rate FHLB advances The Bank 2015 $ 0 na % $ 8,000 0.30 % 2016 8,000 0.67 % 8,000 0.67 % 2017 5,000 1.07 % 5,000 1.07 % 2018 22,000 1.93 % 20,000 2.00 % 2019 4,000 1.79 2,000 1.97 % 2020 11,000 1.95 % 0 na % Total Bank $ 50,000 $ 43,000 Subordinated notes The Company 2034 $ 25,774 3.23 % $ 25,774 2.94 % 2035 23,712 2.36 % 23,712 2.07 % Total Company $ 49,486 $ 49,486 The Bank is a member of the Federal Home Loan Bank of Des Moines (FHLB) and has access to term financing from the FHLB. These borrowings are secured under a blanket agreement which assigns all investment in FHLB stock, as well as qualifying first mortgage loans as collateral to secure amounts borrowed by the Bank. The outstanding balance of $50.0 million includes $10.0 million, which the FHLB may call for early payment within the next year. Based upon the collateral pledged to the FHLB at December 31, 2015, the Bank could borrow up to an additional $207.5 million under the agreement. On March 17, 2005, Exchange Statutory Trust II, a business trust and subsidiary of the Company, issued $23.0 million of 30-year floating rate Trust Preferred Securities (TPS) to a TPS Pool. The floating rate is equal to a three-month LIBOR rate plus 1.83% and reprices quarterly (2.36% at December 31, 2015). The TPS can be prepaid without penalty at any time after five years from the issuance date. The TPS represent preferred interests in the trust. The Company invested approximately $712,000 in common interests in the trust and the purchaser in the private placement purchased $23.0 million in preferred interests. The proceeds were used by the trust to purchase from the Company its 30-year deeply subordinated debentures whose terms mirror those stated above for the TPS. The debentures are guaranteed by the Company pursuant to a subordinated guarantee. Distributions on the TPS are payable quarterly on March 17, June 17, September 17, and December 17 of each year that the TPS are outstanding. The trustee for the TPS holders is U.S. Bank, N.A. The trustee does not have the power to take enforcement action in the event of a default under the TPS for five years from the date of default. In the event of default, however, the Company would be precluded from paying dividends until the default is cured. On March 17, 2004, Exchange Statutory Trust I, a business trust and subsidiary of the Company issued $25.0 million of floating rate TPS to a TPS Pool. The floating rate is equal to the three-month LIBOR rate plus 2.70% and reprices quarterly (3.23% at December 31, 2015). The TPS are fully, irrevocably, and unconditionally guaranteed on a subordinated basis by the Company. The proceeds of the TPS were invested in junior subordinated debentures of the Company. Distributions on the TPS are payable quarterly on March 17, June 17, September 17, and December 17 of each year that the TPS are outstanding. The TPS mature on March 17, 2034. That maturity date may be shortened if certain conditions are met. The Exchange Statutory Trusts are not consolidated in the Company’s financial statements. Accordingly, the Company does not report the securities issued by the Exchange Statutory Trusts as liabilities, and instead reports the subordinated notes issued by the Company and held by the Exchange Statutory Trusts as liabilities. The amount of the subordinated notes as of December 31, 2015 and 2014 was $49.5 million, respectively. The Company has recorded the investments in the common securities issued by the Exchange Statutory Trusts aggregating $1.5 million, and the corresponding obligations under the subordinated notes, as well as the interest income and interest expense on such investments and obligations in its consolidated financial statements. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (9) Income Taxes The composition of income tax expense for the years ended December 31, 2015, 2014, and 2013 was as follows: (in thousands) 2015 2014 2013 Current: Federal $ 3,619 $ 1,105 $ 584 State 496 137 71 Total current 4,115 1,242 655 Deferred: Federal 391 2,353 1,485 State 74 447 282 Total deferred 465 2,800 1,767 Total income tax expense $ 4,580 $ 4,042 $ 2,422 Applicable income tax expense for financial reporting purposes differs from the amount computed by applying the statutory federal income tax rate for the reasons noted in the table for the years ended December 31, 2015, 2014, and 2013 are as follows: (in thousands) 2015 2014 2013 Amount % Amount % Amount % Income before provision for income tax expense $ 13,179 $ 11,696 $ 7,396 Tax at statutory federal income tax rate $ 4,481 34.00 % $ 3,977 34.00 % $ 2,515 34.00 % Tax-exempt income (369 ) (2.80 ) (348 ) (2.98 ) (353 ) (4.77 ) State income tax, net of federal tax benefit 376 2.85 385 3.30 233 3.15 Other, net 92 0.70 28 0.24 27 0.37 Provision for income tax expense $ 4,580 34.75 % $ 4,042 34.56 % $ 2,422 32.75 % The components of deferred tax assets and deferred tax liabilities at December 31, 2015 and 2014 are as follows: (in thousands) 2015 2014 Deferred tax assets: Allowance for loan losses $ 3,269 $ 3,458 Impairment of other real estate owned 1,226 1,233 Goodwill 1,437 1,786 Available-for-sale securities 363 0 Nonaccrual loan interest 640 1,069 Core deposit intangible 556 689 Pension 1,242 985 Deferred taxes on pension 874 998 Deferred compensation 138 130 Other 342 250 Total deferred tax assets $ 10,087 $ 10,598 Deferred tax liabilities: Available-for-sale securities $ 0 $ 131 Premises and equipment 938 1,160 Mortgage servicing rights 1,064 1,022 Assets held for sale 49 114 Other 13 53 Total deferred tax liabilities 2,064 2,480 Net deferred tax assets $ 8,023 $ 8,118 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, taxable income available in carryback years, and tax planning strategies in making this assessment. With the exception of certain capital losses generated during 2013 and 2014, it is management’s opinion that the Company will more likely than not realize the benefits of these temporary differences as of December 31, 2015 and, therefore, only established a valuation reserve against the Company’s capital loss carry forward. Management arrived at this conclusion based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible. As indicated above, the Company generated approximately $219,000 of capital losses during 2013 and 2014 as a result of disposing of certain limited partnership interests. The capital losses will expire between 2019 and 2020, and it is management’s opinion that the Company will not more likely than not generate the capital gain income necessary to utilize the capital loss carry forwards before the capital losses expire. As such, the Company has established an $83,000 valuation reserve against its capital loss carry forward deferred tax asset. The Company follows ASC Topic 740, Income Taxes, . |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | (10) Stockholders’ Equity Accumulated Other Comprehensive (Loss) Income The following details the change in the components of the Company’s accumulated other comprehensive (loss) income for the years ended December 31, 2014 and 2015, respectively: Accumulated Unrecognized Net Other Pension and Comprehensive Unrealized Loss Postretirement (Loss) (in thousands) on Securities (1) Costs (2) Income Balance, December 31, 2013 $ (1,491 ) $ 722 $ (769 ) Other comprehensive (loss) income, before reclassifications 2,770 (3,568 ) (798 ) Amounts reclassified from accumulated other comprehensive income (20 ) 79 59 Current period other comprehensive (loss) income, before tax 2,750 (3,489 ) (739 ) Income tax benefit (expense) (1,045 ) 1,325 280 Current period other comprehensive (loss) income, net of tax 1,705 (2,164 ) (459 ) Balance, December 31, 2014 $ 214 $ (1,442 ) $ (1,228 ) Other comprehensive (loss) income, before reclassifications (1,291 ) 5 (1,286 ) Amounts reclassified from accumulated other comprehensive income (8 ) 144 136 Current period other comprehensive (loss) income, before tax (1,299 ) 149 (1,150 ) Deferred tax adjustment 0 (77 ) (77 ) Income tax benefit (expense) 494 (57 ) 437 Current period other comprehensive (loss) income, net of tax (805 ) 15 (790 ) Balance, December 31, 2015 $ (591 ) $ (1,427 ) $ (2,018 ) (1) The pre-tax amounts reclassified from accumulated other comprehensive (loss) income are included in gain on sale of investment securities (2) The pre-tax amounts reclassified from accumulated other comprehensive income are included in the computation of net periodic pension cost. See Note 11. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | (11) Employee Benefit Plans Employee benefits (in thousands) 2015 2014 2013 Payroll taxes $ 1,102 $ 1,081 $ 1,106 Medical plans 1,928 1,974 1,915 401(k) match 325 310 309 Pension plan 1,391 960 1,173 Profit-sharing 563 201 118 Other 164 122 219 Total employee benefits $ 5,473 $ 4,648 $ 4,840 The Company’s profit-sharing plan includes a matching 401(k) 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. An employer is required to recognize the funded status of a defined benefit postretirement plan as an asset or liability in its balance sheet and to recognize changes in that funded status in the year in which the changes occur through comprehensive income. Under the Company’s funding policy for the defined benefit pension plan, contributions are made to a trust as necessary to provide for current service and for any unfunded accrued actuarial liabilities over a reasonable period. To the extent that these requirements are fully covered by assets in the trust, a contribution might not be made in a particular year. The Company made $716,000 of contributions to the defined benefit plan for the current plan year. There is a $758,000 minimum required contribution for the 2016 plan year. The Company has not determined whether it will make any contributions other than the minimum required funding for 2016. Obligations and Funded Status at December 31, (in thousands) 2015 2014 Change in projected benefit obligation: Balance, January 1 $ 19,977 $ 14,852 Service cost 1,325 981 Interest cost 838 732 Actuarial (loss) gain (1,084 ) 3,813 Benefits paid (455 ) (401 ) Balance, December 31 $ 20,601 $ 19,977 Change in plan assets: Fair value, January 1 $ 14,933 $ 13,532 Actual return on plan assets (75 ) 1,118 Employer contribution 716 725 Expenses paid (88 ) (41 ) Benefits paid (455 ) (401 ) Fair value, December 31 $ 15,031 $ 14,933 Funded status at end of year $ (5,570 ) $ (5,044 ) Accumulated benefit obligation $ 16,550 $ 16,595 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 years ended December 31, as indicated: (in thousands) 2015 2014 2013 Service cost—benefits earned during the year $ 1,325 $ 981 $ 1,174 Interest costs on projected benefit obligations 838 732 646 Expected return on plan assets (957 ) (872 ) (797 ) Expected administrative expenses 40 40 40 Amortization of prior service cost 79 79 79 Amortization of unrecognized net loss 66 0 31 Net periodic pension expense $ 1,391 $ 960 $ 1,173 Amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive loss at December 31, 2015 and 2014 are shown below, including amounts recognized in other comprehensive income during the periods. All amounts are shown on a pre-tax basis. (in thousands) 2015 2014 Prior service costs $ (364 ) $ (443 ) Net accumulated actuarial net loss (1,937 ) (2,008 ) Accumulated other comprehensive loss (2,301 ) (2,451 ) Net periodic benefit cost in excess of cumulative employer contributions (3,269 ) (2,593 ) Net amount recognized at December 31, balance sheet $ (5,570 ) $ (5,044 ) Net gain (loss) arising during period $ 5 $ (3,568 ) Prior service cost amortization 79 79 Amortization of net actuarial loss 65 0 Total recognized in other comprehensive income (loss) $ 149 $ (3,489 ) Total recognized in net periodic pension cost and other comprehensive income $ 1,242 $ 4,449 The estimated prior service cost for the defined benefit pension plan that will be amortized from accumulated other comprehensive income into net periodic cost in 2016 is $79,000. During 2016, there is no estimated amount of actuarial loss subject to amortization into net periodic pension cost. Assumptions utilized to determine benefit obligations as of December 31, 2015, 2014 and 2013 and to determine pension expense for the years then ended are as follows: 2015 2014 2013 Determination of benefit obligation at year end: Discount rate 4.70 % 4.25 % 5.00 % Annual rate of compensation increase 3.78 % 3.78 % 3.73 % Determination of pension expense for year ended: Discount rate for the service cost 4.25 % 5.00 % 4.25 % Annual rate of compensation increase 3.78 % 3.73 % 3.61 % Expected long-term rate of return on plan assets 7.00 % 7.00 % 7.00 % The assumed overall expected long-term rate of return on pension plan assets used in calculating 2015 pension expense was 7.0%. Determination of the plan’s rate of return is based upon historical returns for equities and fixed income indexes. During the past five years, the Company’s plan assets have experienced the following annual returns: -0.4% in 2015, 8.3% in 2014, 19.1% in 2013, 11.4% in 2012, and 0.1% in 2011. The rate used in plan calculations may be adjusted by management for current trends in the economic environment. With a traditional investment mix of over half of the plan’s investments in equities, the actual return for any one plan year may fluctuate significantly with changes in the stock market. Due to an increase in discount rates used in the actuarial calculation of plan income, the Company expects to incur $1.2 million of expense in 2016 compared to $1.4 million 2015. Plan Assets The investment policy of the pension plan is designed for growth in value while minimizing risk to the overall portfolio. The Company diversifies the assets through investments in domestic and international fixed income securities and domestic and international equity securities. The assets are readily marketable and can be sold to fund benefit payment obligations as they become payable. The Company’s long-term investment target mix for the plan is 70% equity securities and 30% fixed income. The Company regularly reviews its policies on the investment mix and may make changes depending on economic conditions and perceived investment mix. The fair value of the Company’s pension plan assets at December 31, 2015 and 2014 by asset category was as follows: 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) December 31, 2015 Cash equivalents $ 1,663 $ 1,663 $ 0 $ 0 Equity securities: U.S. large-cap (a) 6,191 6,191 0 0 U.S. mid-cap (b) 2,094 2,094 0 0 U.S. small-cap (c) 820 820 0 0 International (d) 1,778 1,778 0 0 Real estate (e) 478 478 0 0 Commodities (f) 205 205 0 0 Fixed income securities: U.S. gov't agency obligations (g) 1,802 0 1,802 0 Total $ 15,031 $ 13,229 $ 1,802 $ 0 December 31, 2014 Cash equivalents $ 1,937 $ 1,937 $ 0 $ 0 Equity securities: U.S. large-cap (a) 7,252 7,252 0 0 U.S. mid-cap (b) 921 921 0 0 U.S. small-cap (c) 1,131 1,131 0 0 International (d) 1,895 1,895 0 0 Real estate (e) 486 486 0 0 Commodities (f) 264 264 0 0 Fixed income securities: U.S. gov't agency obligations (g) 1,047 0 1,047 0 Total $ 14,933 $ 13,886 $ 1,047 $ 0 (a) This category is comprised of low-cost equity index funds not actively managed that track the S&P 500. (b) This category is comprised of low-cost equity index funds not actively managed that track the MSCI U.S. mid-cap 450. (c) This category is comprised of actively managed mutual funds. (d) At December 31, 2015 and 2014, 31% of this category is comprised of low-cost equity index funds not actively managed that track the MSCI EAFE. (e) This category is comprised of low-cost real estate index exchange traded funds. (f) This category is comprised of exchange traded funds investing in agricultural and energy commodities. (g) This category is comprised of individual bonds. The following future benefit payments are expected to be paid: Year Pension benefits (in thousands) 2016 $ 513 2017 637 2018 660 2019 788 2020 859 2021 to 2025 5,530 |
Stock Compensation
Stock Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Compensation | (12) Stock Compensation The Company’s stock option plan provides for the grant of options to purchase up to 592,168 shares of the Company’s common stock to officers and other key employees of the Company and its subsidiaries. The following table summarizes the Company’s stock option activity: Weighted average Weighted average Aggregate Number of shares exercise price Contractual Term Intrinsic Value December 31 December 31 (in years) ($000) 2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013 Outstanding, beginning of year 100,361 131,366 242,304 $ 21.56 $ 22.32 $ 21.95 Granted 0 0 0 0.00 0.00 0.00 Exercised 0 0 0 0.00 0.00 0.00 Forfeited or expired (37,616 ) (31,005 ) (110,938 ) 21.65 24.76 21.51 Outstanding, end of year 62,745 100,361 131,366 $ 21.50 $ 21.56 $ 22.32 1.41 1.93 2.51 $ 0.00 $ 0.00 $ 0.00 Exercisable, end of year 55,262 88,586 115,663 $ 22.25 $ 21.95 $ 22.58 1.24 1.75 2.30 $ 0.00 $ 0.00 $ 0.00 Options have been adjusted to reflect a 4% stock dividend paid on July 1, 2015. Total stock-based compensation expense for the years ended December 31, 2015, 2014, and 2013 was $10,000, $20,000, and $19,000, respectively. As of December 31, 2015, the total unrecognized compensation expense related to non-vested stock awards was $20,000 and the related weighted average period over which it is expected to be recognized is approximately 0.57 years. No stock options were granted during the years presented above. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings per Share | (13) Earnings per Share Stock Dividend Preferred Stock On June 11, 2013, the common stock warrant issued under the U.S. Treasury Department’s CPP program was repurchased by the Company for a total purchase price of $540,000, or $1.88 per warrant share. The purchase price was based on the fair market value of the warrant as agreed upon by the Company and the Treasury. The repurchase of the warrant ended the Company’s participation in the U.S. Treasury Department’s CPP. Basic earnings per share is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding during the year. Diluted earnings per share gives effect to all dilutive potential common 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. 2015 2014 2013 Basic earnings per common share: Net income $ 8,599 $ 7,654 $ 4,974 Less preferred stock dividends and accretion of discount 0 0 615 Net income available to common shareholders $ 8,599 $ 7,654 $ 4,359 Basic earnings per share $ 1.58 $ 1.41 $ 0.80 Diluted earnings per common share: Net income $ 8,599 $ 7,654 $ 4,974 Less preferred stock dividends and accretion of discount 0 0 615 Net income available to common shareholders $ 8,599 $ 7,654 $ 4,359 Average shares outstanding 5,443,284 5,443,344 5,443,344 Effect of dilutive stock options 0 0 0 Average shares outstanding including dilutive stock options 5,443,284 5,443,344 5,443,344 Diluted earnings per share $ 1.58 $ 1.41 $ 0.80 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 common 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. The following options to purchase shares during the years ended December 31, 2015, 2014 and 2013 were not included in the respective computations of diluted earnings per share because the exercise price of the option, when combined with the effect of the unamortized compensation expense, was greater than the average market price of the common shares and were considered anti-dilutive. 2015 2014 2013 Anti-dilutive shares - option shares 62,745 100,361 131,366 Anti-dilutive shares - warrant shares 0 0 0 Total anti-dilutive shares 62,745 100,361 131,366 Repurchase Program The table below shows activity in the outstanding shares of the Company's common stock during the past three years. Shares in the table below are presented on a historical basis and have not been restated for the annual 4% stock dividends. Number of shares December 31 2015 2014 2013 Outstanding, beginning of year 5,233,986 5,032,679 4,839,114 Issuance of stock: 4% stock dividend 209,359 201,307 193,565 Purchase of treasury stock (2,155 ) 0 0 Outstanding, end of year 5,441,190 5,233,986 5,032,679 Except as noted in the above table, all share and per share amounts in this note have been restated for the 4% common stock dividend distributed in 2015. |
Capital Requirements
Capital Requirements | 12 Months Ended |
Dec. 31, 2015 | |
Capital Requirements | |
Capital Requirements | (14) Capital Requirements The Company and the Bank are subject to various regulatory capital requirements administered by federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification of the Company and the Bank are subject to qualitative judgments by the regulators about components, risk-weightings, and other factors. Quantitative measures established by regulations to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the following table) of total and Tier I capital to risk-weighted assets, and of Tier I capital to adjusted-average assets. Management believes, as of December 31, 2015 and 2014, the Company and the Bank met all capital adequacy requirements. In July 2013, the federal bank regulators approved final rules (the “Basel III Rule”) implementing Basel III framework as well as certain provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The Basel III Rule also substantially revises the risk-based capital requirements applicable to bank holding companies and their depository institution subsidiaries, including the Company and the Bank, as compared to the general risk-based capital rules. The Basel III Rule revises the components of capital and addresses other issues affecting the numerator in regulatory capital ratios. The Basel III Rule also address asset risk weights and other issues affecting the denominator in regulatory capital ratios and replace the existing general risk-weighting approach based on Basel I with a more risk-sensitive approach. The Basel III Rule became effective for the Company and the Bank on January 1, 2015 (subject to a phase-in period for certain provisions). As of December 31, 2015, the capital ratios (as set forth in the table below) are calculated under the new Basel III rules. As of December 31, 2014, the capital ratios (as set forth in the table below) are calculated under the former Basel I rules As of December 31, 2015, the most recent notification from the regulatory authorities categorized the bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well-capitalized, the Bank must maintain minimum total risk-based, Tier I risk-based, and Tier I leverage ratios as set forth in the table. There are no conditions or events since the notification that management believes have changed the Bank’s categories. Well-Capitalized Under Required for Capital Prompt Corrective Action Actual Adequacy Purposes Provision (in thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2015 Total Capital (to risk-weighted assets): Company $ 146,068 14.78 % $ 79,066 8.00 % $ N.A. N.A. % Bank 137,572 13.98 78,718 8.00 98,398 10.00 Tier I Capital (to risk-weighted assets): Company $ 118,875 12.03 % $ 59,299 6.00 % $ N.A. N.A. % Bank 128,808 13.09 59,039 6.00 78,718 8.00 Common Equity Tier I Capital (to risk-weighted assets) Company $ 89,304 9.02 % $ 44,475 4.50 % $ N.A. N.A. % Bank 128,808 13.09 44,279 4.50 63,959 6.50 Tier I leverage ratio: Company $ 118,875 9.84 % $ 48,314 4.00 % $ N.A. N.A. % Bank 128,808 10.73 48,025 4.00 60,031 5.00 (in thousands) December 31, 2014 Total Capital (to risk-weighted assets): Company $ 138,619 15.78 % $ 70,282 8.00 % N.A. N.A. % Bank 128,311 14.78 69,430 8.00 $ 86,788 10.00 Tier I Capital (to risk-weighted assets): Company $ 108,785 12.38 % $ 35,141 4.00 % N.A. N.A. % Bank 119,212 13.74 34,715 4.00 $ 52,073 6.00 Tier I leverage ratio: Company $ 108,785 9.42 % $ 46,197 4.00 % $ N.A. N.A. % Bank 119,212 10.42 45,784 4.00 57,230 5.00 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (15) Fair Value Measurements The Company uses fair value measurements to record fair value adjustments to certain financial and nonfinancial assets and liabilities. The FASB ASC Topic 820, Fair Value Measurements, The fair value hierarchy is as follows: Level 1 – Inputs are unadjusted quoted prices for identical assets or liabilities in active markets. 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. ASC Topic 820 also provides guidance on determining fair value when the volume and level of activity for the asset or liability have significantly decreased and on identifying circumstances when a transaction may not be considered orderly. The Company is required to disclose assets and liabilities measured at fair value on a recurring basis separate from those measured at fair value on a nonrecurring basis. 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 instruments 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. Securities classified as available-for-sale are reported at fair value utilizing Level 2 inputs. 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) December 31, 2015 Assets: Government sponsored enterprises $ 73,497 $ 0 73,497 $ 0 Asset-backed securities 128,851 0 128,851 0 Obligations of states and political subdivisions 32,706 0 32,706 0 Mortgage servicing rights 2,847 0 0 2,847 Total $ 237,901 $ 0 $ 235,054 $ 2,847 December 31, 2014 Assets: Government sponsored enterprises $ 57,099 $ 0 57,099 $ 0 Asset-backed securities 106,462 0 106,462 0 Obligations of states and political subdivisions 35,437 0 35,437 0 Mortgage servicing rights 2,762 0 0 2,762 Total $ 201,760 $ 0 $ 198,998 $ 2,762 The changes in Level 3 assets and liabilities measured at fair value on a recurring basis are summarized as follows: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (in thousands) Mortgage Servicing Rights Balance at December 31, 2013 $ 3,036 Total gains or losses (realized/unrealized): Included in earnings (576 ) Included in other comprehensive income 0 Purchases 0 Sales 0 Issues 302 Settlements 0 Balance at December 31, 2014 $ 2,762 Total gains or losses (realized/unrealized): Included in earnings (301 ) Included in other comprehensive income 0 Purchases 0 Sales 0 Issues 386 Settlements 0 Balance at December 31, 2015 $ 2,847 The change in valuation of mortgage servicing rights Quantitative Information about Level 3 Fair Value Measurements Valuation Technique Unobservable Inputs Input Value 2015 2014 Mortgage servicing rights Discounted cash flows Weighted average constant prepayment rate 9.58 % 10.54 % Weighted average discount rate 9.16 % 9.21 % Weighted average expected life (in years) 5.90 5.70 Valuation methods for instruments 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: Impaired Loans The Company does not record loans at fair value on a recurring basis other than loans that are considered impaired. The net carrying value of impaired loans is generally based on fair values of the underlying collateral obtained through independent appraisals or internal evaluations, or by discounting the total expected future cash flows. Once the fair value of the collateral has been determined and any impairment amount calculated, a specific reserve allocation is made. Because many of these inputs are not observable, the measurements are classified as Level 3. As of December 31, 2015, the Company identified $5.7 million in impaired loans that had specific allowances for losses aggregating $1.5 million. Related to these loans, there was $1.9 million in charge-offs recorded during the year ended December 31, 2015. As of December 31, 2014, the Company identified $7.4 million in impaired loans that had specific allowances for losses aggregating $1.7 million. Related to these loans, there was $5.4 million in charge-offs recorded during the year ended December 31, 2014. Other Real Estate Owned and Repossessed Assets Other real estate owned and repossessed assets consisted of loan collateral that has been repossessed through foreclosure. This collateral comprises of commercial and residential real estate and other non-real estate property, including autos, manufactured homes, and construction equipment. Other real estate owned assets are recorded as held for sale initially at the lower of the loan balance or fair value of the collateral less estimated selling costs. The Company relies on external appraisals and assessment of property values by internal staff. In the case of non-real estate collateral, reliance is placed on a variety of sources, including external estimates of value and judgment based on experience and expertise of internal specialists. Subsequent to foreclosure, 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 in Active Markets for Other Significant Identical Observable Unobservable Total Assets Inputs Inputs Total Gains (in thousands) Fair Value (Level 1) (Level 2) (Level 3) (Losses)* December 31, 2015 Assets: Impaired loans: Commercial, financial, & agricultural $ 272 $ 0 $ 0 $ 272 $ (920 ) Real estate construction - residential 0 0 0 0 0 Real estate construction - commercial 87 0 0 87 (10 ) Real estate mortgage - residential 3,336 0 0 3,336 (567 ) Real estate mortgage - commercial 369 0 0 369 (322 ) Consumer 125 0 0 125 (66 ) Total $ 4,189 $ 0 $ 0 $ 4,189 $ (1,885 ) Other real estate owned and repossessed assets $ 15,992 $ 0 $ 0 $ 15,992 $ 118 December 31, 2014 Assets: Impaired loans: Commercial, financial, & agricultural $ 1,386 $ 0 $ 0 $ 1,386 $ (1,105 ) Real estate construction - residential 0 0 0 0 (350 ) Real estate construction - commercial 0 0 0 0 (491 ) Real estate mortgage - residential 3,322 0 0 3,322 (332 ) Real estate mortgage - commercial 809 0 0 809 (2,937 ) Consumer 172 0 0 172 (148 ) Total $ 5,689 $ 0 $ 0 $ 5,689 $ (5,363 ) Other real estate owned and repossessed assets $ 11,885 $ 0 $ 0 $ 11,885 $ (1,870 ) * Total gains (losses) reported for other real estate owned and repossessed 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 | 12 Months Ended |
Dec. 31, 2015 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
Fair Value of Financial Instruments | (16) 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 The fair values of loans are estimated by discounting the expected future cash flows using the current rates at which similar loans could be made to borrowers with similar credit ratings and for the same remaining maturities 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 and securities purchased under agreements to resell, interest earning deposits with banks, and cash and due from banks approximate fair value. Federal funds sold and securities purchased under agreements to resell classified as short-term generally mature in 90 days or less. 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 and Interest-bearing Demand Notes to U.S. Treasury For securities sold under agreements to repurchase and interest-bearing demand notes to U.S. Treasury, 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 December 31, 2015 and 2014 is as follows: December 31, 2015 Fair Value Measurements Quoted Prices in Active Net Markets for Other Significant December 31, 2015 Identical Observable Unobservable Carrying Fair Assets Inputs Inputs (in thousands) amount value (Level 1) (Level 2) (Level 3) Assets: Cash and due from banks $ 20,484 $ 20,484 $ 20,484 $ 0 $ 0 Federal funds sold and overnight interest-bearing deposits 7,893 7,893 7,893 0 0 Investment in available-for-sale securities 235,054 235,054 0 235,054 0 Loans, net 856,476 854,775 0 0 854,775 Investment in FHLB stock 3,390 3,390 0 3,390 0 Mortgage servicing rights 2,847 2,847 0 0 2,847 Cash surrender value - life insurance 2,348 2,348 0 2,348 0 Accrued interest receivable 4,853 4,853 4,853 0 0 $ 1,133,345 $ 1,131,644 $ 33,230 $ 240,792 $ 857,622 Liabilities: Deposits: Non-interest bearing demand $ 208,035 $ 208,035 $ 208,035 $ 0 $ 0 Savings, interest checking and money market 441,080 441,080 441,080 0 0 Time deposits 298,082 298,323 0 0 298,323 Federal funds purchased and securities sold under agreements to repurchase 56,834 56,834 56,834 0 0 Subordinated notes 49,486 40,821 0 40,821 0 Federal Home Loan Bank advances 50,000 52,340 0 52,340 0 Accrued interest payable 382 382 382 0 0 $ 1,103,899 $ 1,097,815 $ 706,331 $ 93,161 $ 298,323 December 31, 2014 Fair Value Measurements Quoted Prices in Active Net Markets for Other Significant December 31, 2014 Identical Observable Unobservable Carrying Fair Assets Inputs Inputs (in thousands) amount value (Level 1) (Level 2) (Level 3) Assets: Cash and due from banks $ 22,364 $ 22,364 $ 22,364 $ 0 $ 0 Federal funds sold and overnight interest-bearing deposits 20,445 20,445 20,445 0 0 Investment in available-for-sale securities 198,998 198,998 0 198,998 0 Loans, net 852,114 854,062 0 0 854,062 Investment in FHLB stock 3,075 3,075 0 3,075 0 Mortgage servicing rights 2,762 2,762 0 0 2,762 Cash surrender value - life insurance 2,284 2,284 0 2,284 0 Accrued interest receivable 4,816 4,816 4,816 0 0 $ 1,106,858 $ 1,108,806 $ 47,625 $ 204,357 $ 856,824 Liabilities: Deposits: Non-interest bearing demand $ 207,700 $ 207,700 $ 207,700 $ 0 $ 0 Savings, interest checking and money market 442,059 442,059 442,059 0 0 Time deposits 319,755 321,041 0 0 321,041 Federal funds purchased and securities sold under agreements to repurchase 17,970 17,970 17,970 0 0 Subordinated notes 49,486 33,371 0 33,371 0 Federal Home Loan Bank advances 43,000 44,396 0 44,396 0 Accrued interest payable 373 373 373 0 0 $ 1,080,343 $ 1,066,910 $ 668,102 $ 77,767 $ 321,041 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 | 12 Months Ended |
Dec. 31, 2015 | |
Repurchase Reserve Liability [Abstract] | |
Repurchase Reserve Liability | (17) Repurchase Reserve Liability The Company’s repurchase reserve liability for estimated losses incurred on sold loans was $160,000 at both December 31, 2015 and 2014. 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 December 31, 2015, the Company was servicing 3,024 loans sold to the secondary market with a balance of approximately $312.1 million compared to 3,057 loans sold with a balance of approximately $313.9 million at December 31, 2014. (in thousands) 2015 2014 2013 Balance at beginning of year $ 160 $ 160 $ 0 Provision for repurchase liability 40 0 279 Reimbursement of expenses (40 ) 0 (119 ) Balance at end of year $ 160 $ 160 $ 160 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (18) 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 December 31, 2015, no amounts have been accrued for any estimated losses for these financial instruments. The contractual amount of off-balance-sheet financial instruments as of December 31, 2015 and 2014 is as follows: (in thousands) 2015 2014 Commitments to extend credit $ 161,306 $ 135,137 Commitments to originate residential first and second mortgage loans 3,175 1,640 Standby letters of credit 1,466 1,621 Total 165,947 138,398 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 December 31, 2015. 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 amount can be estimated. |
Condensed Financial Information
Condensed Financial Information of the Parent Company Only | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of the Parent Company Only | |
Condensed Financial Information of the Parent Company Only | (19) Condensed Financial Information of the Parent Company Only Following are the condensed financial statements of Hawthorn Bancshares, Inc. (Parent only) as of and for the years indicated: Condensed Balance Sheets December 31, (in thousands) 2015 2014 Assets Cash and due from bank subsidiaries $ 4,971 $ 1,024 Investment in equity securities 1,486 1,486 Investment in subsidiaries 134,099 130,728 Deferred tax asset 2,116 1,989 Other assets 7 308 Total assets $ 142,679 $ 135,535 Liabilities and Stockholders’ Equity Subordinated notes $ 49,486 $ 49,486 Other liabilities 5,907 5,481 Stockholders’ equity 87,286 80,568 Total liabilities and stockholders’ equity $ 142,679 $ 135,535 Condensed Statements of Income For the Years Ended December 31, 2015 2014 2013 Income Interest and dividends received from subsidiaries $ 1,039 $ 2,538 $ 15,039 Total income 1,039 2,538 15,039 Expenses Interest on subordinated notes 1,293 1,264 1,284 Other 2,138 1,730 1,778 Total expenses 3,431 2,994 3,062 Income before income tax benefit and equity in undistributed income of subsidiaries (2,392 ) (456 ) 11,977 Income tax benefit 1,065 1,100 1,126 Equity in undistributed income (losses) of subsidiaries 9,926 7,010 (8,129 ) Net income $ 8,599 $ 7,654 $ 4,974 Condensed Statements of Cash Flows For the Years Ended December 31, (in thousands) 2015 2014 2013 Cash flows from operating activities: Net income $ 8,599 $ 7,654 $ 4,974 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 0 0 1 Equity in undistributed (income) losses of subsidiaries (9,926 ) (7,010 ) 8,129 Stock based compensation expense 10 20 19 (Increase) decrease in deferred tax asset (127 ) (1,415 ) 1,325 Other, net 732 1,942 (182 ) Net cash (used) provided by operating activities $ (712 ) $ 1,191 $ 14,266 Cash flows from investing activities: Investment in subsidiary $ 5,750 $ 400 $ 4,550 Net cash provided by investing activities $ 5,750 $ 400 $ 4,550 Cash flows from financing activities: Redemption of 18,255 shares of preferred stock $ 0 $ 0 $ (18,255 ) Cash dividends paid - preferred stock 0 0 (456 ) Cash dividends paid - common stock (1,058 ) (1,017 ) (978 ) Purchase of treasury stock (33 ) 0 0 Warrant redemption 0 0 (540 ) Net cash used in financing activities $ (1,091 ) $ (1,017 ) $ (20,229 ) Net increase (decrease) in cash and due from banks 3,947 574 (1,413 ) Cash and due from banks at beginning of year 1,024 450 1,863 Cash and due from banks at end of year $ 4,971 $ 1,024 $ 450 |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information (Unaudited) | |
Quarterly Financial Information (Unaudited) | (20) Quarterly Financial Information (Unaudited) Year First Second Third Fourth to (In thousands except per share data) quarter quarter quarter quarter Date Year Ended December 31, 2015 Interest income $ 11,198 $ 11,214 $ 11,829 $ 11,515 $ 45,756 Interest expense 1,220 1,230 1,271 1,278 4,999 Net interest income 9,978 9,984 10,558 10,237 40,757 Provision for loan losses 0 250 0 0 250 Noninterest income 1,987 2,461 2,337 2,381 9,166 Noninterest expense 8,708 9,267 8,978 9,541 36,494 Income tax expense 1,119 1,001 1,377 1,083 4,580 Net income available to common stockholders $ 2,138 $ 1,927 $ 2,540 $ 1,994 $ 8,599 Net income per share: Basic earnings per share $ 0.39 $ 0.35 $ 0.47 $ 0.37 $ 1.58 Diluted earnings per share 0.39 0.35 0.47 0.37 1.58 Year Ended December 31, 2014 Interest income $ 10,963 $ 11,125 $ 11,196 $ 11,214 $ 44,498 Interest expense 1,309 1,278 1,240 1,217 5,044 Net interest income 9,654 9,847 9,956 9,997 39,454 Provision for loan losses 0 0 0 0 0 Noninterest income 2,085 2,183 2,313 2,168 8,749 Noninterest expense 8,707 8,811 9,899 9,090 36,507 Income tax expense 1,045 1,121 802 1,074 4,042 Net income available to common stockholders $ 1,987 $ 2,098 $ 1,568 $ 2,001 $ 7,654 Net income per share: Basic earnings per share $ 0.36 $ 0.39 $ 0.29 $ 0.37 $ 1.41 Diluted earnings per share 0.36 0.39 0.29 0.37 1.41 |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation In December of 2008 and March of 2010, the Company formed Hawthorn Real Estate, LLC, and Real Estate Holdings of Missouri, LLC, respectively (the Real Estate Companies); both are wholly owned subsidiaries of the Company. The consolidated financial statements include the accounts of the Company, Hawthorn Bank (the Bank), and the Real Estate Companies. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Loans | Loans Loans that the Company has the intent and ability to hold for the foreseeable future or maturity are held for investment at their stated unpaid principal balance amount less unearned income and the allowance for loan losses. Income on loans is accrued on a simple-interest basis. Loan origination fees and certain direct costs are deferred and recognized over the life of the loan as an adjustment to yield. Loans Held for Sale The Bank originates certain loans, which are sold in the secondary market. These loans are classified as held for sale upon origination based on management’s intent to sell and are accounted for at the lower of adjusted cost or fair value. Adjusted cost reflects the funded loan amount and any loan origination costs and fees. In order to manage the risk associated with such activities, the Company upon locking in an interest rate with the borrower enters into an agreement to sell such loans in the secondary market. Loans held for sale are typically sold with servicing rights retained and without recourse except for normal and customary representation and warranty provisions. Mortgage loans held for sale were $1.2 million at December 31, 2015 compared to no loans held for sale at December 31, 2014. Impaired Loans A loan is considered impaired when it is probable the Company will be unable to collect all amounts due, both principal and interest, according to the contractual terms of the loan agreement. Included in impaired loans are all non-accrual loans and loans whose terms have been modified in a troubled debt restructuring. Impaired loans are individually evaluated for impairment based on fair values of the underlying collateral, obtained through independent appraisals or internal valuations for a collateral dependent loan or by discounting the total expected future cash flows. Non-Accrual Loans Loans are placed on nonaccrual status when management believes that the borrower’s financial condition, after consideration of business conditions and collection efforts, is such that collection of interest is doubtful. Loans that are contractually 90 days past due as to principal and/or interest payments are generally placed on non-accrual, unless they are both well-secured and in the process of collection. Subsequent interest payments received on such loans are applied to principal if doubt exists as to the collectability of such principal; otherwise, such receipts are recorded as interest income on a cash basis. A loan remains on nonaccrual status until the loan is current as to payment of both principal and interest and/or the borrower demonstrates the ability to pay and remain current. Restructured Loans A loan is accounted for as a troubled debt restructuring (TDR) if the Company, for economic or legal reasons related to the borrowers’ financial difficulties, grants a concession to the borrower that it would not otherwise consider. A TDR typically involves (1) modification of terms such as a reduction of the stated interest rate, loan principal, accrued interest, or an extended maturity date (2) a loan renewal at a stated interest rate lower than the current market rate for a new loan with similar risk, or (3) debt that was not reaffirmed in bankruptcy. Nonperforming TDRs are returned to performing status once the borrower demonstrates the ability to pay under the terms of the restructured note through a sustained period of repayment performance, which is generally six months. The Company includes all performing and non-performing TDRs in the impaired and non-performing asset totals. The Company measures the impairment loss of a TDR in the same manner as described below. TDRs which are performing under their contractual terms continue to accrue interest which is recognized in current earnings. |
Allowance for Loan Losses | Allowance for Loan Losses Management has identified the accounting policy related to the allowance for loan losses as critical to the understanding of the Company’s results of operations, since the application of this policy requires significant management assumptions and estimates that could result in materially different amounts to be reported if conditions or underlying circumstances were to change. Many of the loans are deemed collateral dependent for purposes of the measurement of the impairment loss, thus the fair value of the underlying collateral and sensitivity of such fair values due to changing market conditions, supply and demand, condition of the collateral and other factors can be volatile over periods of time. Such volatility can have an impact on the financial performance of the Company. Loans, or portions of loans, are charged off to the extent deemed uncollectible or a loss is confirmed. When loans become 90 days past due, they are generally placed on nonaccrual status or charged off unless extenuating circumstances justify leaving the loan on accrual basis. When loans reach 120 days past due and there is little likelihood of repayment, they are charged off. 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. The specific reserve component The incurred loss component |
Investment in Debt and Equity Securities | Investment in Debt and Equity Securities At the time of purchase, debt securities are classified into one of two categories: available-for-sale or held-to-maturity. Held-to-maturity securities are those securities which the Company has the positive intent and ability to hold until maturity. All debt securities not classified as held-to-maturity are classified as available-for-sale. The Company’s securities are classified as available-for-sale and are carried at fair value. Changes in fair value, excluding certain losses associated with other-than-temporary impairment, are reported in other comprehensive income, net of taxes, a component of stockholders’ equity. Securities are periodically evaluated for other-than-temporary impairment in accordance with guidance provided in the FASB ASC Topic 320, Investments – Debt and Equity Securities. Premiums and discounts are amortized using the interest method over the lives of the respective securities, with consideration of historical and estimated prepayment rates for mortgage-backed securities, as an adjustment to yield. Dividend and interest income are recognized when earned. Realized gains and losses for securities classified as available-for-sale are included in earnings based on the specific identification method for determining the cost of securities sold. |
Capital Stock of the Federal Home Loan Bank | Capital Stock of the Federal Home Loan Bank The Bank, as a member of the Federal Home Loan Bank System administered by the Federal Housing Finance Agency, is required to maintain an investment in the capital stock of the Federal Home Loan Bank of Des Moines (FHLB) in an amount equal to 12 basis points of the Bank’s year-end total assets plus 4.00% of advances from the FHLB to the Bank. These invest-ments are recorded at cost, which represents redemption value. |
Premises and Equipment | Premises and Equipment Premises and equipment are stated at cost, less accumulated depreciation. Depreciation applicable to buildings and improve-ments and furniture and equipment is charged to expense using straight-line and accelerated methods over the estimated useful lives of the assets. Such lives are estimated to be 5 to 40 years for buildings and improvements and 3 to 15 years for furniture and equipment. Maintenance and repairs are charged to expense as incurred. |
Core Deposit Intangibles | Core Deposit Intangibles Intangible assets that have finite useful lives, such as core deposit intangibles, are amortized over their estimated useful lives. Core deposit intangibles are amortized over periods of 7 to 8 years representing their estimated lives using straight line and accelerated methods. When facts and circumstances indicate potential impairment of amortizable intangible assets, the Company evaluates the recoverability of the carrying value based upon future cash flows expected to result from the use of the underlying asset and its eventual disposition. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying value of the underlying asset, the Company recognizes an impairment loss. The impairment loss recognized represents the amount by which the carrying value of the underlying asset exceeds the fair value of the underlying asset. |
Mortgage Servicing Rights | Mortgage Servicing Rights The Company originates and sells residential mortgage loans in the secondary market and may retain the right to service the loans sold. Servicing involves the collection of payments from individual borrowers and the distribution of those payments to the investors or master servicer. Upon a sale of mortgage loans for which servicing rights are retained, the retained mortgage servicing rights asset is capitalized at the fair value of future net cash flows expected to be realized for performing servicing activities. Mortgage servicing rights do not trade in an active market with readily observable prices. The Company determines the fair value of mortgage servicing rights by estimating the fair value of the future cash flows associated with the mortgage loans being serviced. Key economic assumptions used in measuring the fair value of mortgage servicing rights include, but are not limited to, prepayment speeds, discount rates, delinquencies, ancillary income, and cost to service. These assumptions are validated on a periodic basis. The fair value is validated on a quarterly basis with an independent third party valuation specialist firm. In addition to the changes in fair value of the mortgage servicing rights, the Company also recorded loan servicing fee income as part of real estate servicing fees, net in the statement of income. Loan servicing fee income represents revenue earned for servicing mortgage loans. The servicing fees are based on contractual percentage of the outstanding principal balance and recognized as revenue as the related mortgage payments are collected. Corresponding loan servicing costs are changed to expense as incurred. |
Other Real Estate Owned and Repossessed Assets | Other Real Estate Owned and Repossessed Assets Other real estate owned and repossessed assets consist 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. Other real estate owned assets are initially recorded as held for sale at the fair value of the collateral less estimated selling costs. Any adjustment is recorded as a charge-off against the allowance for loan losses. The Company relies on external appraisals and assessment of property values by internal staff. In the case of non-real estate collateral, reliance is placed on a variety of sources, including external estimates of value and judgment based on experience and expertise of internal specialists. Subsequent to foreclosure, valuations are updated periodically, and the assets may be written down to reflect a new cost basis. The write-downs are recorded as other real estate expense. The Company establishes a valuation allowance related to other real estate owned on an asset-by-asset basis. The valuation allowance is created during the holding period when the fair value less cost to sell is lower than the cost of the property. |
Pension Plan | Pension Plan The Company provides a noncontributory defined benefit pension plan for all full-time employees. The benefits are based on age, years of service and the level of compensation during the employees highest ten years of compensation before retirement. Net periodic costs are recognized as employees render the services necessary to earn the retirement benefits. The Company records annual amounts relating to its pension plan based on calculations that incorporate various actuarial and other assumptions including discount rates, mortality, assumed rates of return, compensation increases, and turnover rates. The Company reviews its assumptions on an annual basis and may make modifications to the assumptions based on current rates and trends when it is appropriate to do so. The Company believes that the assumptions utilized in recording its obligations under its plan are reasonable based on its experience and market conditions. The Company follows authoritative guidance included in the FASB ASC Topic 715, under the subtopic ASC Topic 715 requires an employer to recognize the overfunded or underfunded status of a defined benefit postretirement plan (other than a multiemployer plan) as an asset or liability in its consolidated balance sheet and to recognize changes in the funded status in the year in which the changes occur through comprehensive income. This guidance also requires an employer to measure the funded status of a plan as of the date of its fiscal year-end, with limited exceptions. Additional disclosures are required to provide users with an understanding of how investment allocation decisions are made, major categories of plan assets, and fair value measurement of plan assets as defined in ASC Topic 820 . |
Income Taxes | Income Taxes Income taxes are accounted for under the asset / liability method by recognizing the amount of taxes payable or refundable for the current period and deferred tax assets and liabilities for future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. Judgment is required in addressing the Company’s future tax consequences of events that have been recognized in the consolidated financial statements or tax returns such as realization of the effects of temporary differences, net operating loss carry forwards and changes in tax laws or interpretations thereof. A valuation allowance is established when in the judgment of management, it is more likely than not that such deferred tax assets will not become realizable. In this case, the Company would adjust the recorded value of our deferred tax asset, which would result in a direct charge to income tax expense in the period that the determination was made. Likewise, the Company would reverse the valuation allowance when it is expected to realize the deferred tax asset. The Company has not recognized any tax liabilities or any interest or penalties in income tax expense related to uncertain tax positions as of December 31, 2015, 2014, and 2013. |
Trust Department | Trust Department Property held by the Bank in a fiduciary or agency capacity for customers is not included in the accompanying consolidated balance sheets, since such items are not assets of the Company. Trust department income is recognized on the accrual basis. |
Consolidated Statements of Cash Flows | Consolidated Statements of Cash Flows For the purpose of the consolidated statements of cash flows, cash and cash equivalents consist of short-term federal funds sold and securities sold or purchased under agreements to resell, interest earning deposits with banks, cash, and due from banks. Stock-Based Compensation The Company’s stock-based employee compensation plan is described in Note 12, Stock Compensation. In accordance with FASB ASC Topic 718, Compensation – Stock Compensation, |
Treasury Stock | Treasury Stock The purchase of the Company’s common stock is recorded at cost. Purchases of the stock are made both in the open market and through negotiated private purchases based on market prices. At the date of subsequent reissue, the treasury stock account is reduced by the cost associated with such stock on a first-in-first-out basis. |
Reclassifications | Reclassifications Certain prior year information has been reclassified to conform to the current year presentation. |
New accounting principles adopted | The following represents significant new accounting principles adopted in 2015: Investments – Equity Method and Joint Ventures Troubled Debt Restructurings by Creditors |
Loans and Allowance for Loan 31
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Schedule of summary of loans, by major class within the Company's loan portfolio | (in thousands) 2015 2014 Commercial, financial, and agricultural $ 149,091 $ 154,834 Real estate construction - residential 16,895 18,103 Real estate construction - commercial 33,943 48,822 Real estate mortgage - residential 256,086 247,117 Real estate mortgage - commercial 385,869 372,321 Installment and other consumer 23,196 20,016 Total loans $ 865,080 $ 861,213 |
Schedule of loans to directors and executive officers | (in thousands) Balance at December 31, 2014 $ 4,940 New loans 286 Amounts collected (499 ) Balance at December 31, 2015 $ 4,727 |
Schedule of summary of the allowance for loan losses | Commercial, Real Estate Real Estate Real Estate Real Estate Installment Financial, & Construction - Construction - Mortgage - Mortgage - Loans to Un- (in thousands) Agricultural Residential Commercial Residential Commercial Individuals allocated Total Balance at December 31, 2012 $ 1,937 $ 732 $ 1,711 $ 3,387 $ 6,834 $ 239 $ 2 $ 14,842 Additions: Provision for loan losses 992 318 (452 ) 273 622 272 5 2,030 Deductions: Loans charged off 895 119 633 812 1,301 420 0 4,180 Less recoveries on loans (340 ) 0 (5 ) (111 ) (368 ) (203 ) 0 (1,027 ) Net loans charged off 555 119 628 701 933 217 0 3,153 Balance at December 31, 2013 $ 2,374 $ 931 $ 631 $ 2,959 $ 6,523 $ 294 $ 7 $ 13,719 Additions: Provision for loan losses 371 (592 ) 326 (226 ) (107 ) 195 33 0 Deductions: Loans charged off 1,285 349 491 408 2,890 405 0 5,828 Less recoveries on loans (319 ) (181 ) 0 (202 ) (320 ) (186 ) 0 (1,208 ) Net loans charged off 966 168 491 206 2,570 219 0 4,620 Balance at December 31, 2014 $ 1,779 $ 171 $ 466 $ 2,527 $ 3,846 $ 270 $ 40 $ 9,099 Additions: Provision for loan losses 833 (434 ) 193 153 (713 ) 157 61 250 Deductions: Loans charged off 1,131 0 15 379 363 302 0 2,190 Less recoveries on loans (672 ) (322 ) 0 (138 ) (165 ) (148 ) 0 (1,445 ) Net loans charged off 459 (322 ) 15 241 198 154 0 745 Balance at December 31, 2015 $ 2,153 $ 59 $ 644 $ 2,439 $ 2,935 $ 273 $ 101 $ 8,604 Commercial, Real Estate Real Estate Real Estate Real Estate Installment Financial, and Construction - Construction - Mortgage - Mortgage - Loans to Un- (in thousands) Agricultural Residential Commercial Residential Commercial Individuals allocated Total December 31, 2015 Allowance for loan losses: Individually evaluated for impairment $ 285 $ 0 $ 15 $ 955 $ 266 $ 19 $ 0 $ 1,540 Collectively evaluated for impairment 1,868 59 629 1,484 2,669 254 101 7,064 Total $ 2,153 $ 59 $ 644 $ 2,439 $ 2,935 $ 273 $ 101 $ 8,604 Loans outstanding: Individually evaluated for impairment $ 1,005 $ 0 $ 102 $ 5,936 $ 3,081 $ 144 $ 0 $ 10,268 Collectively evaluated for impairment 148,086 16,895 33,841 250,150 382,788 23,052 0 854,812 Total $ 149,091 $ 16,895 $ 33,943 $ 256,086 $ 385,869 $ 23,196 $ 0 $ 865,080 December 31, 2014 Allowance for loan losses: Individually evaluated for impairment $ 134 $ 0 $ 0 $ 1,343 $ 246 $ 26 $ 0 $ 1,749 Collectively evaluated for impairment 1,645 171 466 1,184 3,600 244 40 7,350 Total $ 1,779 $ 171 $ 466 $ 2,527 $ 3,846 $ 270 $ 40 $ 9,099 Loans outstanding: Individually evaluated for impairment $ 7,541 $ 1,750 $ 2,096 $ 7,878 $ 16,464 $ 234 $ 0 $ 35,963 Collectively evaluated for impairment 147,293 16,353 46,726 239,239 355,857 19,782 0 825,250 Total $ 154,834 $ 18,103 $ 48,822 $ 247,117 $ 372,321 $ 20,016 $ 0 $ 861,213 |
Schedule of impaired loans | (in thousands) 2015 2014 Non-accrual loans $ 4,418 $ 18,243 Performing TDRs 5,850 17,720 Total impaired loans $ 10,268 $ 35,963 Unpaid Recorded Principal Specific (in thousands) Investment Balance Reserves December 31, 2015 With no related allowance recorded: Commercial, financial and agricultural $ 448 $ 450 $ 0 Real estate - residential 1,645 1,712 0 Real estate - commercial 2,446 2,572 0 Total $ 4,539 $ 4,734 $ 0 With an allowance recorded: Commercial, financial and agricultural $ 557 $ 572 $ 285 Real estate - construction commercial 102 115 15 Real estate - residential 4,291 4,320 955 Real estate - commercial 635 884 266 Consumer 144 182 19 Total $ 5,729 $ 6,073 $ 1,540 Total impaired loans $ 10,268 $ 10,807 $ 1,540 Unpaid Recorded Principal Specific (in thousands) Investment Balance Reserves December 31, 2014 With no related allowance recorded: Commercial, financial and agricultural $ 6,021 $ 6,232 $ 0 Real estate - construction residential 1,750 2,259 0 Real estate - construction commercial 2,096 2,319 0 Real estate - residential 3,213 3,270 0 Real estate - commercial 15,409 18,950 0 Consumer 36 36 0 Total $ 28,525 $ 33,066 $ 0 With an allowance recorded: Commercial, financial and agricultural $ 1,520 $ 1,528 $ 134 Real estate - residential 4,665 3,546 1,343 Real estate - commercial 1,055 1,171 246 Consumer 198 237 26 Total $ 7,438 $ 6,482 $ 1,749 Total impaired loans $ 35,963 $ 39,548 $ 1,749 2015 2014 Interest Interest Average Recognized Average Recognized Recorded For the Recorded For the (in thousands) Investment Period Ended Investment Period Ended With no related allowance recorded: Commercial, financial and agricultural $ 2,949 $ 39 $ 3,141 $ 94 Real estate - construction residential 536 0 610 2 Real estate - construction commercial 1,105 0 5,950 0 Real estate - residential 2,331 37 3,517 46 Real estate - commercial 5,169 119 13,703 400 Consumer 7 1 11 0 Total $ 12,097 $ 196 $ 26,932 $ 542 With an allowance recorded: Commercial, financial and agricultural $ 1,356 $ 22 $ 1,773 $ 19 Real estate - construction residential 0 0 1,697 0 Real estate - construction commercial 52 0 42 0 Real estate - residential 4,625 110 5,118 129 Real estate - commercial 1,161 0 3,810 11 Consumer 183 0 312 0 Total $ 7,377 $ 132 $ 12,752 $ 159 Total impaired loans $ 19,474 $ 328 $ 39,684 $ 701 |
Schedule of aging information for the Company's past due and non-accrual loans | (in thousands) Current or 30-89 Days 90 Days Non-Accrual Total December 31, 2015 Commercial, Financial, and Agricultural $ 148,597 $ 185 $ 1 $ 308 $ 149,091 Real Estate Construction - Residential 16,830 0 0 0 16,830 Real Estate Construction - Commercial 33,472 65 0 102 33,639 Real Estate Mortgage - Residential 251,253 2,511 0 2,322 256,086 Real Estate Mortgage - Commercial 384,053 643 0 1,542 386,238 Installment and Other Consumer 22,840 207 5 144 23,196 Total $ 857,045 $ 3,611 $ 6 $ 4,418 $ 865,080 December 31, 2014 Commercial, Financial, and Agricultural $ 149,366 $ 189 $ 0 $ 5,279 $ 154,834 Real Estate Construction - Residential 16,352 0 0 1,751 18,103 Real Estate Construction - Commercial 46,670 0 56 2,096 48,822 Real Estate Mortgage - Residential 239,469 3,229 0 4,419 247,117 Real Estate Mortgage - Commercial 366,653 1,203 0 4,465 372,321 Installment and Other Consumer 19,551 230 2 233 20,016 Total $ 838,061 $ 4,851 $ 58 $ 18,243 $ 861,213 |
Schedule of risk categories by class | (in thousands) Commercial, Financial, & Agricultural Real Estate Construction - Residential Real Estate Construction - Commercial Real Estate Mortgage - Residential Real Estate Mortgage - Commercial Installment and other Consumer Total At December 31, 2015 Watch $ 8,663 $ 1,267 $ 1,296 $ 22,191 $ 24,303 $ 186 $ 57,906 Substandard 421 0 37 3,737 1,485 36 5,716 Performing TDRs 697 0 0 3,615 1,538 0 5,850 Non-accrual 308 0 102 2,322 1,542 144 4,418 Total $ 10,089 $ 1,267 $ 1,435 $ 31,865 $ 28,868 $ 366 $ 73,890 At December 31, 2014 Watch $ 13,651 $ 1,103 $ 4,757 $ 27,172 $ 18,191 $ 199 $ 65,073 Substandard 926 90 1,211 3,124 4,102 139 9,592 Performing TDRs 2,262 0 0 3,459 11,999 0 17,720 Non-accrual 5,279 1,751 2,096 4,419 4,465 233 18,243 Total $ 22,118 $ 2,944 $ 8,064 $ 38,174 $ 38,757 $ 571 $ 110,628 |
Schedule of summary of loans that were modified as TDRs | 2015 2014 Recorded Investment (1) Recorded Investment (1) (in thousands) Number of Contracts Pre- Modification Post- Modification Number of Contracts Pre- Modification Post- Modification Troubled Debt Restructurings Commercial, financial and agricultural 2 $ 250 $ 229 3 $ 244 $ 208 Real estate mortgage - residential 1 519 374 1 1,256 1,170 Real estate mortgage - commercial 4 1,273 1,249 0 0 0 Total 7 $ 2,042 $ 1,852 4 $ 1,500 $ 1,378 (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. |
Real Estate and Other Assets 32
Real Estate and Other Assets Acquired in Settlement of Loans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Real Estate [Abstract] | |
Schedule of summary of real estate and other assets acquired in settlement of loans | (in thousands) 2015 2014 Commercial $ 1,445 $ 0 Real estate construction - residential 0 23 Real estate construction - commercial 12,380 9,831 Real estate mortgage - residential 477 417 Real estate mortgage - commercial 4,923 4,831 Repossessed assets 0 38 Total $ 19,225 $ 15,140 Less valuation allowance for other real estate owned (3,233 ) (3,255 ) Total other real estate owned and foreclosed assets $ 15,992 $ 11,885 |
Schedule of changes in the net carrying amount of other real estate owned and repossessed assets | Balance at December 31, 2013 $ 19,542 Additions 1,975 Proceeds from sales (4,560 ) Charge-offs against the valuation allowance for other real estate owned (2,005 ) Net gain on sales 188 Balance at December 31, 2014 $ 15,140 Additions 5,804 Proceeds from sales (1,836 ) Charge-offs against the valuation allowance for other real estate owned, net (39 ) Net gain on sales 156 Total other real estate owned and repossessed assets $ 19,225 Less valuation allowance for other real estate owned (3,233 ) Balance at December 31, 2015 $ 15,992 |
Schedule of summary of activity in valuation allowance for other real estate owned in settlement of loans | (in thousands) 2015 2014 2013 Balance, beginning of year $ 3,255 $ 4,675 $ 6,137 Provision for other real estate owned 17 585 3,367 Charge-offs (39 ) (2,005 ) (4,829 ) Balance, end of year $ 3,233 $ 3,255 $ 4,675 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of amortized cost and fair value of debt securities classified as available-for-sale | Gross Gross Amortized unrealized unrealized ( in thousands) cost gains losses Fair value December 31, 2015 Government sponsored enterprises $ 73,605 $ 127 $ 235 $ 73,497 Asset-backed securities 130,179 440 1,768 128,851 Obligations of states and political subdivisions 32,224 493 11 32,706 Total available for sale securities $ 236,008 $ 1,060 $ 2,014 $ 235,054 December 31, 2014 Government sponsored enterprises $ 57,002 $ 240 $ 143 $ 57,099 Asset-backed securities 106,726 855 1,119 106,462 Obligations of states and political subdivisions 34,925 583 71 35,437 Total available for sale securities $ 198,653 $ 1,678 $ 1,333 $ 198,998 |
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 $ 24,894 $ 24,890 Due after one year through five years 67,513 67,614 Due after five years through ten years 12,593 12,871 Due after ten years 829 828 Total 105,829 106,203 Asset-backed securities 130,179 128,851 Total available for sale securities $ 236,008 $ 235,054 |
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 December 31, 2015 Government sponsored enterprises $ 43,539 $ (222 ) $ 1,002 $ (13 ) $ 44,541 $ (235 ) Asset-backed securities 56,095 (620 ) 43,576 (1,148 ) 99,671 (1,768 ) Obligations of states and political subdivisions 2,571 (6 ) 718 (5 ) 3,289 (11 ) Total $ 102,205 $ (848 ) $ 45,296 $ (1,166 ) $ 147,501 $ (2,014 ) (in thousands) At December 31, 2014 Government sponsored enterprises $ 2,983 $ (4 ) $ 17,862 $ (139 ) $ 20,845 $ (143 ) Asset-backed securities 10,314 (50 ) 45,445 (1,069 ) 55,759 (1,119 ) Obligations of states and political subdivisions 3,667 (15 ) 1,942 (56 ) 5,609 (71 ) Total $ 16,964 $ (69 ) $ 65,249 $ (1,264 ) $ 82,213 $ (1,333 ) |
Schedule of components of investment securities gains (losses), which are recognized in earnings | (in thousands) 2015 2014 2013 Gains realized on sales $ 8 $ 86 $ 786 Losses realized on sales 0 (66 ) (8 ) Other-than-temporary impairment recognized 0 0 0 Investment securities gains $ 8 $ 20 $ 778 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Premises and Equipment | |
Schedule of summary of premises and equipment | (in thousands) 2015 2014 Land and land improvements $ 10,165 $ 10,152 Buildings and improvements 35,588 35,504 Furniture and equipment 12,906 12,016 Construction in progress 94 523 Total 58,753 58,195 Less accumulated depreciation 22,364 20,697 Premises and equipment, net $ 36,389 $ 37,498 |
Schedule of depreciation expense | (in thousands) 2015 2014 2013 Depreciation expense $ 1,810 $ 1,758 $ 1,605 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Intangible Assets | |
Schedule of changes in mortgage servicing rights (MSRs) | (in thousands) 2015 2014 2013 Balance at beginning of year $ 2,762 $ 3,036 $ 2,549 Originated mortgage servicing rights 386 302 512 Changes in fair value: Due to change in model inputs and assumptions (1) 372 66 723 Other changes in fair value (2) (673 ) (642 ) (748 ) Amortization 0 0 0 Balance at end of year $ 2,847 $ 2,762 $ 3,036 (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 | 2015 2014 Weighted-Average Constant Prepayment Rate 9.58 % 10.54 % Weighted-Average Note Rate 3.92 % 3.99 % Weighted-Average Discount Rate 9.16 % 9.21 % Weighted-Average Expected Life (in years) 5.90 5.70 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Deposits | |
Schedule of maturities of total time deposits | (in thousands) 2015 2014 Due within: One year $ 201,418 $ 204,566 Two years 56,026 58,177 Three years 29,030 33,551 Four years 6,022 16,760 Five years 5,586 5,282 Thereafter 0 1,347 Total $ 298,082 $ 319,683 |
Schedule of maturities of certificates and other time deposits in denominations of $100,000 or more | (in thousands) 2015 2014 Due within: Three months or less $ 39,122 $ 33,488 Over three months through six months 30,704 29,381 Over six months through twelve months 30,432 35,308 Over twelve months 31,986 36,768 Total $ 132,244 $ 134,945 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Borrowings | |
Schedule of information relating to federal funds purchased and repurchase agreements | (in thousands) Year End Weighted Rate Average Weighted Rate Average Balance Outstanding Maximum Outstanding at any Month End Balance at December 31, 2015 Federal funds purchased 0.70 % 0.41 % $ 658 $ 937 $ 0 Short-term repurchase agreements 0.10 0.17 30,266 58,464 56,834 Total $ 30,924 $ 59,401 $ 56,834 2014 Federal funds purchased 0.45 % 0.38 % $ 404 $ 0 $ 0 Short-term repurchase agreements 0.12 0.10 19,819 22,849 17,970 Total $ 20,223 $ 22,849 $ 17,970 |
Schedule of other borrowings | (in thousands) 2015 2014 Borrower Maturity Date Year End Balance Year End Weighted Rate Year End Balance Year End Weighted Rate FHLB advances The Bank 2015 $ 0 na % $ 8,000 0.30 % 2016 8,000 0.67 % 8,000 0.67 % 2017 5,000 1.07 % 5,000 1.07 % 2018 22,000 1.93 % 20,000 2.00 % 2019 4,000 1.79 2,000 1.97 % 2020 11,000 1.95 % 0 na % Total Bank $ 50,000 $ 43,000 Subordinated notes The Company 2034 $ 25,774 3.23 % $ 25,774 2.94 % 2035 23,712 2.36 % 23,712 2.07 % Total Company $ 49,486 $ 49,486 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of composition of income tax expense (benefit) | (in thousands) 2015 2014 2013 Current: Federal $ 3,619 $ 1,105 $ 584 State 496 137 71 Total current 4,115 1,242 655 Deferred: Federal 391 2,353 1,485 State 74 447 282 Total deferred 465 2,800 1,767 Total income tax expense $ 4,580 $ 4,042 $ 2,422 |
Schedule of the applicable income tax (benefit) expense for financial reporting purposes differs from the amount computed by applying the statutory Federal income tax rate | (in thousands) 2015 2014 2013 Amount % Amount % Amount % Income before provision for income tax expense $ 13,179 $ 11,696 $ 7,396 Tax at statutory federal income tax rate $ 4,481 34.00 % $ 3,977 34.00 % $ 2,515 34.00 % Tax-exempt income (369 ) (2.80 ) (348 ) (2.98 ) (353 ) (4.77 ) State income tax, net of federal tax benefit 376 2.85 385 3.30 233 3.15 Other, net 92 0.70 28 0.24 27 0.37 Provision for income tax expense $ 4,580 34.75 % $ 4,042 34.56 % $ 2,422 32.75 % |
Schedule of components of deferred tax assets and deferred tax liabilities | (in thousands) 2015 2014 Deferred tax assets: Allowance for loan losses $ 3,269 $ 3,458 Impairment of other real estate owned 1,226 1,233 Goodwill 1,437 1,786 Available-for-sale securities 363 0 Nonaccrual loan interest 640 1,069 Core deposit intangible 556 689 Pension 1,242 985 Deferred taxes on pension 874 998 Deferred compensation 138 130 Other 342 250 Total deferred tax assets $ 10,087 $ 10,598 Deferred tax liabilities: Available-for-sale securities $ 0 $ 131 Premises and equipment 938 1,160 Mortgage servicing rights 1,064 1,022 Assets held for sale 49 114 Other 13 53 Total deferred tax liabilities 2,064 2,480 Net deferred tax assets $ 8,023 $ 8,118 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Schedule of the change in the components of the accumulated other comprehensive income (loss) | Accumulated Unrecognized Net Other Pension and Comprehensive Unrealized Loss Postretirement (Loss) (in thousands) on Securities (1) Costs (2) Income Balance, December 31, 2013 $ (1,491 ) $ 722 $ (769 ) Other comprehensive (loss) income, before reclassifications 2,770 (3,568 ) (798 ) Amounts reclassified from accumulated other comprehensive income (20 ) 79 59 Current period other comprehensive (loss) income, before tax 2,750 (3,489 ) (739 ) Income tax benefit (expense) (1,045 ) 1,325 280 Current period other comprehensive (loss) income, net of tax 1,705 (2,164 ) (459 ) Balance, December 31, 2014 $ 214 $ (1,442 ) $ (1,228 ) Other comprehensive (loss) income, before reclassifications (1,291 ) 5 (1,286 ) Amounts reclassified from accumulated other comprehensive income (8 ) 144 136 Current period other comprehensive (loss) income, before tax (1,299 ) 149 (1,150 ) Deferred tax adjustment 0 (77 ) (77 ) Income tax benefit (expense) 494 (57 ) 437 Current period other comprehensive (loss) income, net of tax (805 ) 15 (790 ) Balance, December 31, 2015 $ (591 ) $ (1,427 ) $ (2,018 ) (1) The pre-tax amounts reclassified from accumulated other comprehensive (loss) income are included in gain on sale of investment securities (2) The pre-tax amounts reclassified from accumulated other comprehensive income are included in the computation of net periodic pension cost. See Note 11. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of summary of employee benefits charged to operating expenses | (in thousands) 2015 2014 2013 Payroll taxes $ 1,102 $ 1,081 $ 1,106 Medical plans 1,928 1,974 1,915 401(k) match 325 310 309 Pension plan 1,391 960 1,173 Profit-sharing 563 201 118 Other 164 122 219 Total employee benefits $ 5,473 $ 4,648 $ 4,840 |
Schedule of obligations and funded status | (in thousands) 2015 2014 Change in projected benefit obligation: Balance, January 1 $ 19,977 $ 14,852 Service cost 1,325 981 Interest cost 838 732 Actuarial (loss) gain (1,084 ) 3,813 Benefits paid (455 ) (401 ) Balance, December 31 $ 20,601 $ 19,977 Change in plan assets: Fair value, January 1 $ 14,933 $ 13,532 Actual return on plan assets (75 ) 1,118 Employer contribution 716 725 Expenses paid (88 ) (41 ) Benefits paid (455 ) (401 ) Fair value, December 31 $ 15,031 $ 14,933 Funded status at end of year $ (5,570 ) $ (5,044 ) Accumulated benefit obligation $ 16,550 $ 16,595 |
Schedule of components of net pension cost | (in thousands) 2015 2014 2013 Service cost—benefits earned during the year $ 1,325 $ 981 $ 1,174 Interest costs on projected benefit obligations 838 732 646 Expected return on plan assets (957 ) (872 ) (797 ) Expected administrative expenses 40 40 40 Amortization of prior service cost 79 79 79 Amortization of unrecognized net loss 66 0 31 Net periodic pension expense $ 1,391 $ 960 $ 1,173 |
Schedule of amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive income (loss), including amounts recognized in other comprehensive income | (in thousands) 2015 2014 Prior service costs $ (364 ) $ (443 ) Net accumulated actuarial net loss (1,937 ) (2,008 ) Accumulated other comprehensive loss (2,301 ) (2,451 ) Net periodic benefit cost in excess of cumulative employer contributions (3,269 ) (2,593 ) Net amount recognized at December 31, balance sheet $ (5,570 ) $ (5,044 ) Net gain (loss) arising during period $ 5 $ (3,568 ) Prior service cost amortization 79 79 Amortization of net actuarial loss 65 0 Total recognized in other comprehensive income (loss) $ 149 $ (3,489 ) Total recognized in net periodic pension cost and other comprehensive income $ 1,242 $ 4,449 |
Schedule of assumptions utilized to determine benefit obligations and to determine pension expense | 2015 2014 2013 Determination of benefit obligation at year end: Discount rate 4.70 % 4.25 % 5.00 % Annual rate of compensation increase 3.78 % 3.78 % 3.73 % Determination of pension expense for year ended: Discount rate for the service cost 4.25 % 5.00 % 4.25 % Annual rate of compensation increase 3.78 % 3.73 % 3.61 % Expected long-term rate of return on plan assets 7.00 % 7.00 % 7.00 % |
Schedule of fair value of the Company's pension plan assets, by asset category | 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) December 31, 2015 Cash equivalents $ 1,663 $ 1,663 $ 0 $ 0 Equity securities: U.S. large-cap (a) 6,191 6,191 0 0 U.S. mid-cap (b) 2,094 2,094 0 0 U.S. small-cap (c) 820 820 0 0 International (d) 1,778 1,778 0 0 Real estate (e) 478 478 0 0 Commodities (f) 205 205 0 0 Fixed income securities: U.S. gov't agency obligations (g) 1,802 0 1,802 0 Total $ 15,031 $ 13,229 $ 1,802 $ 0 December 31, 2014 Cash equivalents $ 1,937 $ 1,937 $ 0 $ 0 Equity securities: U.S. large-cap (a) 7,252 7,252 0 0 U.S. mid-cap (b) 921 921 0 0 U.S. small-cap (c) 1,131 1,131 0 0 International (d) 1,895 1,895 0 0 Real estate (e) 486 486 0 0 Commodities (f) 264 264 0 0 Fixed income securities: U.S. gov't agency obligations (g) 1,047 0 1,047 0 Total $ 14,933 $ 13,886 $ 1,047 $ 0 (a) This category is comprised of low-cost equity index funds not actively managed that track the S&P 500. (b) This category is comprised of low-cost equity index funds not actively managed that track the MSCI U.S. mid-cap 450. (c) This category is comprised of actively managed mutual funds. (d) At December 31, 2015 and 2014, 31% of this category is comprised of low-cost equity index funds not actively managed that track the MSCI EAFE. (e) This category is comprised of low-cost real estate index exchange traded funds. (f) This category is comprised of exchange traded funds investing in agricultural and energy commodities. (g) This category is comprised of individual bonds. |
Schedule of future benefit payments expected to be paid | Year Pension benefits (in thousands) 2016 $ 513 2017 637 2018 660 2019 788 2020 859 2021 to 2025 5,530 |
Stock Compensation (Tables)
Stock Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of summary of Company's stock option activity | Weighted average Weighted average Aggregate Number of shares exercise price Contractual Term Intrinsic Value December 31 December 31 (in years) ($000) 2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013 Outstanding, beginning of year 100,361 131,366 242,304 $ 21.56 $ 22.32 $ 21.95 Granted 0 0 0 0.00 0.00 0.00 Exercised 0 0 0 0.00 0.00 0.00 Forfeited or expired (37,616 ) (31,005 ) (110,938 ) 21.65 24.76 21.51 Outstanding, end of year 62,745 100,361 131,366 $ 21.50 $ 21.56 $ 22.32 1.41 1.93 2.51 $ 0.00 $ 0.00 $ 0.00 Exercisable, end of year 55,262 88,586 115,663 $ 22.25 $ 21.95 $ 22.58 1.24 1.75 2.30 $ 0.00 $ 0.00 $ 0.00 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of calculations of basic and diluted earnings (loss) per share | 2015 2014 2013 Basic earnings per common share: Net income $ 8,599 $ 7,654 $ 4,974 Less preferred stock dividends and accretion of discount 0 0 615 Net income available to common shareholders $ 8,599 $ 7,654 $ 4,359 Basic earnings per share $ 1.58 $ 1.41 $ 0.80 Diluted earnings per common share: Net income $ 8,599 $ 7,654 $ 4,974 Less preferred stock dividends and accretion of discount 0 0 615 Net income available to common shareholders $ 8,599 $ 7,654 $ 4,359 Average shares outstanding 5,443,284 5,443,344 5,443,344 Effect of dilutive stock options 0 0 0 Average shares outstanding including dilutive stock options 5,443,284 5,443,344 5,443,344 Diluted earnings per share $ 1.58 $ 1.41 $ 0.80 |
Schedule of antidilutive securities excluded from computation of earnings per share | 2015 2014 2013 Anti-dilutive shares - option shares 62,745 100,361 131,366 Anti-dilutive shares - warrant shares 0 0 0 Total anti-dilutive shares 62,745 100,361 131,366 |
Schedule of outstanding shares of the common stock | Number of shares December 31 2015 2014 2013 Outstanding, beginning of year 5,233,986 5,032,679 4,839,114 Issuance of stock: 4% stock dividend 209,359 201,307 193,565 Purchase of treasury stock (2,155 ) 0 0 Outstanding, end of year 5,441,190 5,233,986 5,032,679 |
Capital Requirements (Tables)
Capital Requirements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Capital Requirements | |
Schedule of minimum total risk-based, Tier I risk-based and Tier I leverage ratios to be maintained for bank to be categorized as well capitalized | Well-Capitalized Under Required for Capital Prompt Corrective Action Actual Adequacy Purposes Provision (in thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2015 Total Capital (to risk-weighted assets): Company $ 146,068 14.78 % $ 79,066 8.00 % $ N.A. N.A. % Bank 137,572 13.98 78,718 8.00 98,398 10.00 Tier I Capital (to risk-weighted assets): Company $ 118,875 12.03 % $ 59,299 6.00 % $ N.A. N.A. % Bank 128,808 13.09 59,039 6.00 78,718 8.00 Common Equity Tier I Capital (to risk-weighted assets) Company $ 89,304 9.02 % $ 44,475 4.50 % $ N.A. N.A. % Bank 128,808 13.09 44,279 4.50 63,959 6.50 Tier I leverage ratio: Company $ 118,875 9.84 % $ 48,314 4.00 % $ N.A. N.A. % Bank 128,808 10.73 48,025 4.00 60,031 5.00 (in thousands) December 31, 2014 Total Capital (to risk-weighted assets): Company $ 138,619 15.78 % $ 70,282 8.00 % N.A. N.A. % Bank 128,311 14.78 69,430 8.00 $ 86,788 10.00 Tier I Capital (to risk-weighted assets): Company $ 108,785 12.38 % $ 35,141 4.00 % N.A. N.A. % Bank 119,212 13.74 34,715 4.00 $ 52,073 6.00 Tier I leverage ratio: Company $ 108,785 9.42 % $ 46,197 4.00 % $ N.A. N.A. % Bank 119,212 10.42 45,784 4.00 57,230 5.00 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities recorded at fair value on a recurring basis | 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) December 31, 2015 Assets: Government sponsored enterprises $ 73,497 $ 0 73,497 $ 0 Asset-backed securities 128,851 0 128,851 0 Obligations of states and political subdivisions 32,706 0 32,706 0 Mortgage servicing rights 2,847 0 0 2,847 Total $ 237,901 $ 0 $ 235,054 $ 2,847 December 31, 2014 Assets: Government sponsored enterprises $ 57,099 $ 0 57,099 $ 0 Asset-backed securities 106,462 0 106,462 0 Obligations of states and political subdivisions 35,437 0 35,437 0 Mortgage servicing rights 2,762 0 0 2,762 Total $ 201,760 $ 0 $ 198,998 $ 2,762 |
Schedule of summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (in thousands) Mortgage Servicing Rights Balance at December 31, 2013 $ 3,036 Total gains or losses (realized/unrealized): Included in earnings (576 ) Included in other comprehensive income 0 Purchases 0 Sales 0 Issues 302 Settlements 0 Balance at December 31, 2014 $ 2,762 Total gains or losses (realized/unrealized): Included in earnings (301 ) Included in other comprehensive income 0 Purchases 0 Sales 0 Issues 386 Settlements 0 Balance at December 31, 2015 $ 2,847 |
Schedule of quantitative Information about Level 3 Fair Value Measurements | Quantitative Information about Level 3 Fair Value Measurements Valuation Technique Unobservable Inputs Input Value 2015 2014 Mortgage servicing rights Discounted cash flows Weighted average constant prepayment rate 9.58 % 10.54 % Weighted average discount rate 9.16 % 9.21 % Weighted average expected life (in years) 5.90 5.70 |
Schedule of valuation methods for instruments measured at fair value on a nonrecurring basis | Fair Value Measurements Using Quoted Prices in Active Markets for Other Significant Identical Observable Unobservable Total Assets Inputs Inputs Total Gains (in thousands) Fair Value (Level 1) (Level 2) (Level 3) (Losses)* December 31, 2015 Assets: Impaired loans: Commercial, financial, & agricultural $ 272 $ 0 $ 0 $ 272 $ (920 ) Real estate construction - residential 0 0 0 0 0 Real estate construction - commercial 87 0 0 87 (10 ) Real estate mortgage - residential 3,336 0 0 3,336 (567 ) Real estate mortgage - commercial 369 0 0 369 (322 ) Consumer 125 0 0 125 (66 ) Total $ 4,189 $ 0 $ 0 $ 4,189 $ (1,885 ) Other real estate owned and repossessed assets $ 15,992 $ 0 $ 0 $ 15,992 $ 118 December 31, 2014 Assets: Impaired loans: Commercial, financial, & agricultural $ 1,386 $ 0 $ 0 $ 1,386 $ (1,105 ) Real estate construction - residential 0 0 0 0 (350 ) Real estate construction - commercial 0 0 0 0 (491 ) Real estate mortgage - residential 3,322 0 0 3,322 (332 ) Real estate mortgage - commercial 809 0 0 809 (2,937 ) Consumer 172 0 0 172 (148 ) Total $ 5,689 $ 0 $ 0 $ 5,689 $ (5,363 ) Other real estate owned and repossessed assets $ 11,885 $ 0 $ 0 $ 11,885 $ (1,870 ) * Total gains (losses) reported for other real estate owned and repossessed assets includes charge-offs, valuation write-downs, and net losses taken during the periods reported. |
Fair Value of Financial Instr45
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
Schedule of summary of the carrying amounts and fair values of financial instruments | December 31, 2015 Fair Value Measurements Quoted Prices in Active Net Markets for Other Significant December 31, 2015 Identical Observable Unobservable Carrying Fair Assets Inputs Inputs (in thousands) amount value (Level 1) (Level 2) (Level 3) Assets: Cash and due from banks $ 20,484 $ 20,484 $ 20,484 $ 0 $ 0 Federal funds sold and overnight interest-bearing deposits 7,893 7,893 7,893 0 0 Investment in available-for-sale securities 235,054 235,054 0 235,054 0 Loans, net 856,476 854,775 0 0 854,775 Investment in FHLB stock 3,390 3,390 0 3,390 0 Mortgage servicing rights 2,847 2,847 0 0 2,847 Cash surrender value - life insurance 2,348 2,348 0 2,348 0 Accrued interest receivable 4,853 4,853 4,853 0 0 $ 1,133,345 $ 1,131,644 $ 33,230 $ 240,792 $ 857,622 Liabilities: Deposits: Non-interest bearing demand $ 208,035 $ 208,035 $ 208,035 $ 0 $ 0 Savings, interest checking and money market 441,080 441,080 441,080 0 0 Time deposits 298,082 298,323 0 0 298,323 Federal funds purchased and securities sold under agreements to repurchase 56,834 56,834 56,834 0 0 Subordinated notes 49,486 40,821 0 40,821 0 Federal Home Loan Bank advances 50,000 52,340 0 52,340 0 Accrued interest payable 382 382 382 0 0 $ 1,103,899 $ 1,097,815 $ 706,331 $ 93,161 $ 298,323 December 31, 2014 Fair Value Measurements Quoted Prices in Active Net Markets for Other Significant December 31, 2014 Identical Observable Unobservable Carrying Fair Assets Inputs Inputs (in thousands) amount value (Level 1) (Level 2) (Level 3) Assets: Cash and due from banks $ 22,364 $ 22,364 $ 22,364 $ 0 $ 0 Federal funds sold and overnight interest-bearing deposits 20,445 20,445 20,445 0 0 Investment in available-for-sale securities 198,998 198,998 0 198,998 0 Loans, net 852,114 854,062 0 0 854,062 Investment in FHLB stock 3,075 3,075 0 3,075 0 Mortgage servicing rights 2,762 2,762 0 0 2,762 Cash surrender value - life insurance 2,284 2,284 0 2,284 0 Accrued interest receivable 4,816 4,816 4,816 0 0 $ 1,106,858 $ 1,108,806 $ 47,625 $ 204,357 $ 856,824 Liabilities: Deposits: Non-interest bearing demand $ 207,700 $ 207,700 $ 207,700 $ 0 $ 0 Savings, interest checking and money market 442,059 442,059 442,059 0 0 Time deposits 319,755 321,041 0 0 321,041 Federal funds purchased and securities sold under agreements to repurchase 17,970 17,970 17,970 0 0 Subordinated notes 49,486 33,371 0 33,371 0 Federal Home Loan Bank advances 43,000 44,396 0 44,396 0 Accrued interest payable 373 373 373 0 0 $ 1,080,343 $ 1,066,910 $ 668,102 $ 77,767 $ 321,041 |
Repurchase Reserve Liability (T
Repurchase Reserve Liability (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Repurchase Reserve Liability [Abstract] | |
Schedule of repurchase reserve liability | (in thousands) 2015 2014 2013 Balance at beginning of year $ 160 $ 160 $ 0 Provision for repurchase liability 40 0 279 Reimbursement of expenses (40 ) 0 (119 ) Balance at end of year $ 160 $ 160 $ 160 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of contractual amount of off-balance-sheet financial instruments | (in thousands) 2015 2014 Commitments to extend credit $ 161,306 $ 135,137 Commitments to originate residential first and second mortgage loans 3,175 1,640 Standby letters of credit 1,466 1,621 Total 165,947 138,398 |
Condensed Financial Informati48
Condensed Financial Information of the Parent Company Only (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of the Parent Company Only | |
Schedule of Condensed Balance Sheets | Condensed Balance Sheets December 31, (in thousands) 2015 2014 Assets Cash and due from bank subsidiaries $ 4,971 $ 1,024 Investment in equity securities 1,486 1,486 Investment in subsidiaries 134,099 130,728 Deferred tax asset 2,116 1,989 Other assets 7 308 Total assets $ 142,679 $ 135,535 Liabilities and Stockholders’ Equity Subordinated notes $ 49,486 $ 49,486 Other liabilities 5,907 5,481 Stockholders’ equity 87,286 80,568 Total liabilities and stockholders’ equity $ 142,679 $ 135,535 |
Schedule of Condensed Statements of Income | Condensed Statements of Income For the Years Ended December 31, 2015 2014 2013 Income Interest and dividends received from subsidiaries $ 1,039 $ 2,538 $ 15,039 Total income 1,039 2,538 15,039 Expenses Interest on subordinated notes 1,293 1,264 1,284 Other 2,138 1,730 1,778 Total expenses 3,431 2,994 3,062 Income before income tax benefit and equity in undistributed income of subsidiaries (2,392 ) (456 ) 11,977 Income tax benefit 1,065 1,100 1,126 Equity in undistributed income (losses) of subsidiaries 9,926 7,010 (8,129 ) Net income $ 8,599 $ 7,654 $ 4,974 |
Schedule of Condensed Statements of Cash Flows | Condensed Statements of Cash Flows For the Years Ended December 31, (in thousands) 2015 2014 2013 Cash flows from operating activities: Net income $ 8,599 $ 7,654 $ 4,974 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 0 0 1 Equity in undistributed (income) losses of subsidiaries (9,926 ) (7,010 ) 8,129 Stock based compensation expense 10 20 19 (Increase) decrease in deferred tax asset (127 ) (1,415 ) 1,325 Other, net 732 1,942 (182 ) Net cash (used) provided by operating activities $ (712 ) $ 1,191 $ 14,266 Cash flows from investing activities: Investment in subsidiary $ 5,750 $ 400 $ 4,550 Net cash provided by investing activities $ 5,750 $ 400 $ 4,550 Cash flows from financing activities: Redemption of 18,255 shares of preferred stock $ 0 $ 0 $ (18,255 ) Cash dividends paid - preferred stock 0 0 (456 ) Cash dividends paid - common stock (1,058 ) (1,017 ) (978 ) Purchase of treasury stock (33 ) 0 0 Warrant redemption 0 0 (540 ) Net cash used in financing activities $ (1,091 ) $ (1,017 ) $ (20,229 ) Net increase (decrease) in cash and due from banks 3,947 574 (1,413 ) Cash and due from banks at beginning of year 1,024 450 1,863 Cash and due from banks at end of year $ 4,971 $ 1,024 $ 450 |
Quarterly Financial Informati49
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information (Unaudited) | |
Schedule of quarterly financial data (unaudited) | Year First Second Third Fourth to (In thousands except per share data) quarter quarter quarter quarter Date Year Ended December 31, 2015 Interest income $ 11,198 $ 11,214 $ 11,829 $ 11,515 $ 45,756 Interest expense 1,220 1,230 1,271 1,278 4,999 Net interest income 9,978 9,984 10,558 10,237 40,757 Provision for loan losses 0 250 0 0 250 Noninterest income 1,987 2,461 2,337 2,381 9,166 Noninterest expense 8,708 9,267 8,978 9,541 36,494 Income tax expense 1,119 1,001 1,377 1,083 4,580 Net income available to common stockholders $ 2,138 $ 1,927 $ 2,540 $ 1,994 $ 8,599 Net income per share: Basic earnings per share $ 0.39 $ 0.35 $ 0.47 $ 0.37 $ 1.58 Diluted earnings per share 0.39 0.35 0.47 0.37 1.58 Year Ended December 31, 2014 Interest income $ 10,963 $ 11,125 $ 11,196 $ 11,214 $ 44,498 Interest expense 1,309 1,278 1,240 1,217 5,044 Net interest income 9,654 9,847 9,956 9,997 39,454 Provision for loan losses 0 0 0 0 0 Noninterest income 2,085 2,183 2,313 2,168 8,749 Noninterest expense 8,707 8,811 9,899 9,090 36,507 Income tax expense 1,045 1,121 802 1,074 4,042 Net income available to common stockholders $ 1,987 $ 2,098 $ 1,568 $ 2,001 $ 7,654 Net income per share: Basic earnings per share $ 0.36 $ 0.39 $ 0.29 $ 0.37 $ 1.41 Diluted earnings per share 0.36 0.39 0.29 0.37 1.41 |
Summary of Significant Accoun50
Summary of Significant Accounting Policies (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Summary Of Significant Accounting Policies [Line Items] | ||
Mortgage loans held for sale | $ 1,200 | $ 0 |
Depreciation methods | Straight line and accelerated methods | |
Amortization method | Straight line and accelerated methods | |
Sustained period of repayment performance for non-accrual TDRs | 6 months | |
Period of employees highest compensation before retirement | 10 years | |
Core deposit intangible | Minimum | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Estimated lives | 7 years | |
Core deposit intangible | Maximum | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Estimated lives | 8 years | |
Buildings and improvements | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Estimated useful lives | 5 to 40 years | |
Furniture and equipment | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Estimated useful lives | 3 to 15 years | |
Federal Home Loan Bank of Des Moines | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Investment in capital stock of the Federal Home Loan Bank of total assets | 0.12% | |
Investment in capital stock of Federal Home Loan Bank required percentage of advances | 4.00% |
Loans and Allowance for Loan 51
Loans and Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Summary of loans, by major class within Company's loan portfolio | ||
Total loans | $ 865,080 | $ 861,213 |
Loans Receivable | ||
Summary of loans, by major class within Company's loan portfolio | ||
Total loans | 865,080 | 861,213 |
Loans Receivable | Commercial, financial, and agricultural | ||
Summary of loans, by major class within Company's loan portfolio | ||
Total loans | 149,091 | 154,834 |
Loans Receivable | Real estate construction - residential | ||
Summary of loans, by major class within Company's loan portfolio | ||
Total loans | 16,830 | 18,103 |
Loans Receivable | Real estate - construction - commercial | ||
Summary of loans, by major class within Company's loan portfolio | ||
Total loans | 33,639 | 48,822 |
Loans Receivable | Real estate mortgage - residential | ||
Summary of loans, by major class within Company's loan portfolio | ||
Total loans | 256,086 | 247,117 |
Loans Receivable | Real estate mortgage - commercial | ||
Summary of loans, by major class within Company's loan portfolio | ||
Total loans | 386,238 | 372,321 |
Loans Receivable | Installment and other consumer | ||
Summary of loans, by major class within Company's loan portfolio | ||
Total loans | $ 23,196 | $ 20,016 |
Loans and Allowance for Loan 52
Loans and Allowance for Loan Losses (Details 1) - Loans Receivable $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Loans and Leases Receivable, Related Parties [Roll Forward] | |
Balance at December 31, 2014 | $ 4,940 |
New loans | 286 |
Amounts collected | (499) |
Balance at December 31, 2015 | $ 4,727 |
Loans and Allowance for Loan 53
Loans and Allowance for Loan Losses (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of the allowance for loan losses | |||||||||||
Balance at beginning of period | $ 9,099 | $ 9,099 | |||||||||
Additions: | |||||||||||
Provision for loan losses | $ 0 | $ 0 | $ 250 | 0 | $ 0 | $ 0 | $ 0 | $ 0 | 250 | $ 0 | $ 2,030 |
Deductions: | |||||||||||
Balance at end of period | 8,604 | 9,099 | 8,604 | 9,099 | |||||||
Loans Receivable | |||||||||||
Summary of the allowance for loan losses | |||||||||||
Balance at beginning of period | 9,099 | 13,719 | 9,099 | 13,719 | 14,842 | ||||||
Additions: | |||||||||||
Provision for loan losses | 250 | 0 | 2,030 | ||||||||
Deductions: | |||||||||||
Loans charged off | 2,190 | 5,828 | 4,180 | ||||||||
Less recoveries on loans | (1,445) | (1,208) | (1,027) | ||||||||
Net loans charged off | 745 | 4,620 | 3,153 | ||||||||
Balance at end of period | 8,604 | 9,099 | 8,604 | 9,099 | 13,719 | ||||||
Loans Receivable | Commercial, Financial, and Agricultural | |||||||||||
Summary of the allowance for loan losses | |||||||||||
Balance at beginning of period | 1,779 | 2,374 | 1,779 | 2,374 | 1,937 | ||||||
Additions: | |||||||||||
Provision for loan losses | 833 | 371 | 992 | ||||||||
Deductions: | |||||||||||
Loans charged off | 1,131 | 1,285 | 895 | ||||||||
Less recoveries on loans | (672) | (319) | (340) | ||||||||
Net loans charged off | 459 | 966 | 555 | ||||||||
Balance at end of period | 2,153 | 1,779 | 2,153 | 1,779 | 2,374 | ||||||
Loans Receivable | Real Estate Construction - Residential | |||||||||||
Summary of the allowance for loan losses | |||||||||||
Balance at beginning of period | 171 | 931 | 171 | 931 | 732 | ||||||
Additions: | |||||||||||
Provision for loan losses | (434) | (592) | 318 | ||||||||
Deductions: | |||||||||||
Loans charged off | 0 | 349 | 119 | ||||||||
Less recoveries on loans | (322) | (181) | 0 | ||||||||
Net loans charged off | (322) | 168 | 119 | ||||||||
Balance at end of period | 59 | 171 | 59 | 171 | 931 | ||||||
Loans Receivable | Real estate - construction - commercial | |||||||||||
Summary of the allowance for loan losses | |||||||||||
Balance at beginning of period | 466 | 631 | 466 | 631 | 1,711 | ||||||
Additions: | |||||||||||
Provision for loan losses | 193 | 326 | (452) | ||||||||
Deductions: | |||||||||||
Loans charged off | 15 | 491 | 633 | ||||||||
Less recoveries on loans | 0 | 0 | (5) | ||||||||
Net loans charged off | 15 | 491 | 628 | ||||||||
Balance at end of period | 644 | 466 | 644 | 466 | 631 | ||||||
Loans Receivable | Real Estate Mortgage - Residential | |||||||||||
Summary of the allowance for loan losses | |||||||||||
Balance at beginning of period | 2,527 | 2,959 | 2,527 | 2,959 | 3,387 | ||||||
Additions: | |||||||||||
Provision for loan losses | 153 | (226) | 273 | ||||||||
Deductions: | |||||||||||
Loans charged off | 379 | 408 | 812 | ||||||||
Less recoveries on loans | (138) | (202) | (111) | ||||||||
Net loans charged off | 241 | 206 | 701 | ||||||||
Balance at end of period | 2,439 | 2,527 | 2,439 | 2,527 | 2,959 | ||||||
Loans Receivable | Real Estate Mortgage - Commercial | |||||||||||
Summary of the allowance for loan losses | |||||||||||
Balance at beginning of period | 3,846 | 6,523 | 3,846 | 6,523 | 6,834 | ||||||
Additions: | |||||||||||
Provision for loan losses | (713) | (107) | 622 | ||||||||
Deductions: | |||||||||||
Loans charged off | 363 | 2,890 | 1,301 | ||||||||
Less recoveries on loans | (165) | (320) | (368) | ||||||||
Net loans charged off | 198 | 2,570 | 933 | ||||||||
Balance at end of period | 2,935 | 3,846 | 2,935 | 3,846 | 6,523 | ||||||
Loans Receivable | Installment Loans to Individuals | |||||||||||
Summary of the allowance for loan losses | |||||||||||
Balance at beginning of period | 270 | 294 | 270 | 294 | 239 | ||||||
Additions: | |||||||||||
Provision for loan losses | 157 | 195 | 272 | ||||||||
Deductions: | |||||||||||
Loans charged off | 302 | 405 | 420 | ||||||||
Less recoveries on loans | (148) | (186) | (203) | ||||||||
Net loans charged off | 154 | 219 | 217 | ||||||||
Balance at end of period | 273 | 270 | 273 | 270 | 294 | ||||||
Loans Receivable | Unallocated | |||||||||||
Summary of the allowance for loan losses | |||||||||||
Balance at beginning of period | $ 40 | $ 7 | 40 | 7 | 2 | ||||||
Additions: | |||||||||||
Provision for loan losses | 61 | 33 | 5 | ||||||||
Deductions: | |||||||||||
Loans charged off | 0 | 0 | 0 | ||||||||
Less recoveries on loans | 0 | 0 | 0 | ||||||||
Net loans charged off | 0 | 0 | 0 | ||||||||
Balance at end of period | $ 101 | $ 40 | $ 101 | $ 40 | $ 7 |
Loans and Allowance for Loan 54
Loans and Allowance for Loan Losses (Details 3) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for loan losses: | ||||
Total | $ 8,604 | $ 9,099 | ||
Loans outstanding: | ||||
Total | 865,080 | 861,213 | ||
Loans Receivable | ||||
Allowance for loan losses: | ||||
Individually evaluated for impairment | 1,540 | 1,749 | ||
Collectively evaluated for impairment | 7,064 | 7,350 | ||
Total | 8,604 | 9,099 | $ 13,719 | $ 14,842 |
Loans outstanding: | ||||
Individually evaluated for impairment | 10,268 | 35,963 | ||
Collectively evaluated for impairment | 854,812 | 825,250 | ||
Total | 865,080 | 861,213 | ||
Loans Receivable | Commercial, Financial, and Agricultural | ||||
Allowance for loan losses: | ||||
Individually evaluated for impairment | 285 | 134 | ||
Collectively evaluated for impairment | 1,868 | 1,645 | ||
Total | 2,153 | 1,779 | 2,374 | 1,937 |
Loans outstanding: | ||||
Individually evaluated for impairment | 1,005 | 7,541 | ||
Collectively evaluated for impairment | 148,086 | 147,293 | ||
Total | 149,091 | 154,834 | ||
Loans Receivable | Real Estate Construction - Residential | ||||
Allowance for loan losses: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 59 | 171 | ||
Total | 59 | 171 | 931 | 732 |
Loans outstanding: | ||||
Individually evaluated for impairment | 0 | 1,750 | ||
Collectively evaluated for impairment | 16,895 | 16,353 | ||
Total | 16,830 | 18,103 | ||
Loans Receivable | Real estate - construction - commercial | ||||
Allowance for loan losses: | ||||
Individually evaluated for impairment | 15 | 0 | ||
Collectively evaluated for impairment | 629 | 466 | ||
Total | 644 | 466 | 631 | 1,711 |
Loans outstanding: | ||||
Individually evaluated for impairment | 102 | 2,096 | ||
Collectively evaluated for impairment | 33,841 | 46,726 | ||
Total | 33,639 | 48,822 | ||
Loans Receivable | Real Estate Mortgage - Residential | ||||
Allowance for loan losses: | ||||
Individually evaluated for impairment | 955 | 1,343 | ||
Collectively evaluated for impairment | 1,484 | 1,184 | ||
Total | 2,439 | 2,527 | 2,959 | 3,387 |
Loans outstanding: | ||||
Individually evaluated for impairment | 5,936 | 7,878 | ||
Collectively evaluated for impairment | 250,150 | 239,239 | ||
Total | 256,086 | 247,117 | ||
Loans Receivable | Real Estate Mortgage - Commercial | ||||
Allowance for loan losses: | ||||
Individually evaluated for impairment | 266 | 246 | ||
Collectively evaluated for impairment | 2,669 | 3,600 | ||
Total | 2,935 | 3,846 | 6,523 | 6,834 |
Loans outstanding: | ||||
Individually evaluated for impairment | 3,081 | 16,464 | ||
Collectively evaluated for impairment | 382,788 | 355,857 | ||
Total | 386,238 | 372,321 | ||
Loans Receivable | Installment Loans to Individuals | ||||
Allowance for loan losses: | ||||
Individually evaluated for impairment | 19 | 26 | ||
Collectively evaluated for impairment | 254 | 244 | ||
Total | 273 | 270 | 294 | 239 |
Loans outstanding: | ||||
Individually evaluated for impairment | 144 | 234 | ||
Collectively evaluated for impairment | 23,052 | 19,782 | ||
Total | 23,196 | 20,016 | ||
Loans Receivable | Un-allocated | ||||
Allowance for loan losses: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 101 | 40 | ||
Total | 101 | 40 | $ 7 | $ 2 |
Loans outstanding: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 0 | 0 | ||
Total | $ 0 | $ 0 |
Loans and Allowance for Loan 55
Loans and Allowance for Loan Losses (Details 4) - Loans Receivable - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Categories of impaired loans | ||
Non-accrual loans | $ 4,418 | $ 18,243 |
Performing TDRs | 5,850 | 17,720 |
Total impaired loans | $ 10,268 | $ 35,963 |
Loans and Allowance for Loan 56
Loans and Allowance for Loan Losses (Details 5) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, With an allowance recorded | $ 5,700 | $ 7,400 |
Specific Reserves, With an allowance recorded | 1,500 | 1,700 |
Loans Receivable | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, With no related allowance recorded | 4,539 | 28,525 |
Unpaid Principal Balance, With no related allowance recorded | 4,734 | 33,066 |
Recorded Investment, With an allowance recorded | 5,729 | 7,438 |
Unpaid Principal Balance, With an allowance recorded | 6,073 | 6,482 |
Specific Reserves, With an allowance recorded | 1,540 | 1,749 |
Total impaired loans, Recorded Investment | 10,268 | 35,963 |
Total impaired loans, Unpaid Principal Balance | 10,807 | 39,548 |
Loans Receivable | Commercial, financial, and agricultural | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, With no related allowance recorded | 448 | 6,021 |
Unpaid Principal Balance, With no related allowance recorded | 450 | 6,232 |
Recorded Investment, With an allowance recorded | 557 | 1,520 |
Unpaid Principal Balance, With an allowance recorded | 572 | 1,528 |
Specific Reserves, With an allowance recorded | 285 | 134 |
Loans Receivable | Real estate - construction residential | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, With no related allowance recorded | 1,750 | |
Unpaid Principal Balance, With no related allowance recorded | 2,259 | |
Loans Receivable | Real estate - construction - commercial | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, With no related allowance recorded | 2,096 | |
Unpaid Principal Balance, With no related allowance recorded | 2,319 | |
Recorded Investment, With an allowance recorded | 102 | |
Unpaid Principal Balance, With an allowance recorded | 115 | |
Specific Reserves, With an allowance recorded | 15 | |
Loans Receivable | Real estate - residential | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, With no related allowance recorded | 1,645 | 3,213 |
Unpaid Principal Balance, With no related allowance recorded | 1,712 | 3,270 |
Recorded Investment, With an allowance recorded | 4,291 | 4,665 |
Unpaid Principal Balance, With an allowance recorded | 4,320 | 3,546 |
Specific Reserves, With an allowance recorded | 955 | 1,343 |
Loans Receivable | Real estate - commercial | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, With no related allowance recorded | 2,446 | 15,409 |
Unpaid Principal Balance, With no related allowance recorded | 2,572 | 18,950 |
Recorded Investment, With an allowance recorded | 635 | 1,055 |
Unpaid Principal Balance, With an allowance recorded | 884 | 1,171 |
Specific Reserves, With an allowance recorded | 266 | 246 |
Loans Receivable | Consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, With no related allowance recorded | 36 | |
Unpaid Principal Balance, With no related allowance recorded | 36 | |
Recorded Investment, With an allowance recorded | 144 | 198 |
Unpaid Principal Balance, With an allowance recorded | 182 | 237 |
Specific Reserves, With an allowance recorded | $ 19 | $ 26 |
Loans and Allowance for Loan 57
Loans and Allowance for Loan Losses (Details 6) - Loans Receivable - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Average Recorded Investment | ||
With no related allowance recorded | $ 12,097 | $ 26,932 |
With an allowance recorded | 7,377 | 12,752 |
Total impaired loans | 19,474 | 39,684 |
Interest Recognized For the Period Ended | ||
With no related allowance recorded | 196 | 542 |
With an allowance recorded | 132 | 159 |
Total impaired loans | 328 | 701 |
Commercial, financial, and agricultural | ||
Average Recorded Investment | ||
With no related allowance recorded | 2,949 | 3,141 |
With an allowance recorded | 1,356 | 1,773 |
Interest Recognized For the Period Ended | ||
With no related allowance recorded | 39 | 94 |
With an allowance recorded | 22 | 19 |
Real estate - construction residential | ||
Average Recorded Investment | ||
With no related allowance recorded | 536 | 610 |
With an allowance recorded | 0 | 1,697 |
Interest Recognized For the Period Ended | ||
With no related allowance recorded | 0 | 2 |
With an allowance recorded | 0 | 0 |
Real estate - construction - commercial | ||
Average Recorded Investment | ||
With no related allowance recorded | 1,105 | 5,950 |
With an allowance recorded | 52 | 42 |
Interest Recognized For the Period Ended | ||
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 0 | 0 |
Real estate - residential | ||
Average Recorded Investment | ||
With no related allowance recorded | 2,331 | 3,517 |
With an allowance recorded | 4,625 | 5,118 |
Interest Recognized For the Period Ended | ||
With no related allowance recorded | 37 | 46 |
With an allowance recorded | 110 | 129 |
Real estate - commercial | ||
Average Recorded Investment | ||
With no related allowance recorded | 5,169 | 13,703 |
With an allowance recorded | 1,161 | 3,810 |
Interest Recognized For the Period Ended | ||
With no related allowance recorded | 119 | 400 |
With an allowance recorded | 0 | 11 |
Consumer | ||
Average Recorded Investment | ||
With no related allowance recorded | 7 | 11 |
With an allowance recorded | 183 | 312 |
Interest Recognized For the Period Ended | ||
With no related allowance recorded | 1 | 0 |
With an allowance recorded | $ 0 | $ 0 |
Loans and Allowance for Loan 58
Loans and Allowance for Loan Losses (Details 7) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Aging information for the Company's past due and non-accrual loans | ||
Loans | $ 865,080 | $ 861,213 |
Loans Receivable | ||
Aging information for the Company's past due and non-accrual loans | ||
90 Days Past Due And Still Accruing | 6 | 58 |
Non-Accrual | 4,418 | 18,243 |
Loans | 865,080 | 861,213 |
Loans Receivable | 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 | 857,045 | 838,061 |
Loans Receivable | 30 - 89 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 3,611 | 4,851 |
Loans Receivable | Commercial, Financial, and Agricultural | ||
Aging information for the Company's past due and non-accrual loans | ||
90 Days Past Due And Still Accruing | 1 | 0 |
Non-Accrual | 308 | 5,279 |
Loans | 149,091 | 154,834 |
Loans Receivable | 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 | 148,597 | 149,366 |
Loans Receivable | 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 | 185 | 189 |
Loans Receivable | Real Estate Construction - Residential | ||
Aging information for the Company's past due and non-accrual loans | ||
90 Days Past Due And Still Accruing | 0 | 0 |
Non-Accrual | 0 | 1,751 |
Loans | 16,830 | 18,103 |
Loans Receivable | Real Estate Construction - Residential | 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 | 16,830 | 16,352 |
Loans Receivable | Real Estate Construction - Residential | 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 |
Loans Receivable | Real estate - construction - commercial | ||
Aging information for the Company's past due and non-accrual loans | ||
90 Days Past Due And Still Accruing | 0 | 56 |
Non-Accrual | 102 | 2,096 |
Loans | 33,639 | 48,822 |
Loans Receivable | Real estate - construction - commercial | 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 | 33,472 | 46,670 |
Loans Receivable | Real estate - construction - commercial | 30 - 89 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 65 | 0 |
Loans Receivable | Real Estate Mortgage - Residential | ||
Aging information for the Company's past due and non-accrual loans | ||
90 Days Past Due And Still Accruing | 0 | 0 |
Non-Accrual | 2,322 | 4,419 |
Loans | 256,086 | 247,117 |
Loans Receivable | Real Estate Mortgage - Residential | 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 | 251,253 | 239,469 |
Loans Receivable | Real Estate Mortgage - Residential | 30 - 89 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 2,511 | 3,229 |
Loans Receivable | Real Estate Mortgage - Commercial | ||
Aging information for the Company's past due and non-accrual loans | ||
90 Days Past Due And Still Accruing | 0 | 0 |
Non-Accrual | 1,542 | 4,465 |
Loans | 386,238 | 372,321 |
Loans Receivable | Real Estate Mortgage - Commercial | 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 | 384,053 | 366,653 |
Loans Receivable | Real Estate Mortgage - Commercial | 30 - 89 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 643 | 1,203 |
Loans Receivable | Installment and other consumer | ||
Aging information for the Company's past due and non-accrual loans | ||
90 Days Past Due And Still Accruing | 5 | 2 |
Non-Accrual | 144 | 233 |
Loans | 23,196 | 20,016 |
Loans Receivable | 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 | 22,840 | 19,551 |
Loans Receivable | 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 | $ 207 | $ 230 |
Loans and Allowance for Loan 59
Loans and Allowance for Loan Losses (Details 8) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | $ 865,080 | $ 861,213 |
Loans Receivable | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 865,080 | 861,213 |
Loans Receivable | Watch | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 57,906 | 65,073 |
Loans Receivable | Substandard | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 5,716 | 9,592 |
Loans Receivable | Performing TDRs | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 5,850 | 17,720 |
Loans Receivable | Non-accrual | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 4,418 | 18,243 |
Loans Receivable | Total | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 73,890 | 110,628 |
Loans Receivable | Commercial, Financial, and Agricultural | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 149,091 | 154,834 |
Loans Receivable | Commercial, Financial, and Agricultural | Watch | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 8,663 | 13,651 |
Loans Receivable | Commercial, Financial, and Agricultural | Substandard | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 421 | 926 |
Loans Receivable | Commercial, Financial, and Agricultural | Performing TDRs | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 697 | 2,262 |
Loans Receivable | Commercial, Financial, and Agricultural | Non-accrual | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 308 | 5,279 |
Loans Receivable | Commercial, Financial, and Agricultural | Total | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 10,089 | 22,118 |
Loans Receivable | Real Estate Construction - Residential | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 16,830 | 18,103 |
Loans Receivable | Real Estate Construction - Residential | Watch | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 1,267 | 1,103 |
Loans Receivable | Real Estate Construction - Residential | Substandard | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 0 | 90 |
Loans Receivable | Real Estate Construction - Residential | Performing TDRs | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 0 | 0 |
Loans Receivable | Real Estate Construction - Residential | Non-accrual | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 0 | 1,751 |
Loans Receivable | Real Estate Construction - Residential | Total | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 1,267 | 2,944 |
Loans Receivable | Real estate - construction - commercial | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 33,639 | 48,822 |
Loans Receivable | Real estate - construction - commercial | Watch | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 1,296 | 4,757 |
Loans Receivable | Real estate - construction - commercial | Substandard | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 37 | 1,211 |
Loans Receivable | Real estate - construction - commercial | Performing TDRs | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 0 | 0 |
Loans Receivable | Real estate - construction - commercial | Non-accrual | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 102 | 2,096 |
Loans Receivable | Real estate - construction - commercial | Total | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 1,435 | 8,064 |
Loans Receivable | Real Estate Mortgage - Residential | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 256,086 | 247,117 |
Loans Receivable | Real Estate Mortgage - Residential | Watch | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 22,191 | 27,172 |
Loans Receivable | Real Estate Mortgage - Residential | Substandard | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 3,737 | 3,124 |
Loans Receivable | Real Estate Mortgage - Residential | Performing TDRs | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 3,615 | 3,459 |
Loans Receivable | Real Estate Mortgage - Residential | Non-accrual | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 2,322 | 4,419 |
Loans Receivable | Real Estate Mortgage - Residential | Total | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 31,865 | 38,174 |
Loans Receivable | Real Estate Mortgage - Commercial | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 386,238 | 372,321 |
Loans Receivable | Real Estate Mortgage - Commercial | Watch | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 24,303 | 18,191 |
Loans Receivable | Real Estate Mortgage - Commercial | Substandard | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 1,485 | 4,102 |
Loans Receivable | Real Estate Mortgage - Commercial | Performing TDRs | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 1,538 | 11,999 |
Loans Receivable | Real Estate Mortgage - Commercial | Non-accrual | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 1,542 | 4,465 |
Loans Receivable | Real Estate Mortgage - Commercial | Total | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 28,868 | 38,757 |
Loans Receivable | Installment and other Consumer | Watch | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 186 | 199 |
Loans Receivable | Installment and other Consumer | Substandard | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 36 | 139 |
Loans Receivable | Installment and other Consumer | Performing TDRs | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 0 | 0 |
Loans Receivable | Installment and other Consumer | Non-accrual | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 144 | 233 |
Loans Receivable | Installment and other Consumer | Total | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | $ 366 | $ 571 |
Loans and Allowance for Loan 60
Loans and Allowance for Loan Losses (Details 9) - Loans Receivable $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)Contract | Dec. 31, 2014USD ($)Contract | ||
Loans that were modified as TDRs | |||
Number of Contracts | Contract | 7 | 4 | |
Pre- Modification | [1] | $ 2,042 | $ 1,500 |
Post- Modification | $ 1,852 | $ 1,378 | |
Commercial, financial, and agricultural | |||
Loans that were modified as TDRs | |||
Number of Contracts | Contract | 2 | 3 | |
Pre- Modification | [1] | $ 250 | $ 244 |
Post- Modification | $ 229 | $ 208 | |
Real estate mortgage - residential | |||
Loans that were modified as TDRs | |||
Number of Contracts | Contract | 1 | 1 | |
Pre- Modification | [1] | $ 519 | $ 1,256 |
Post- Modification | $ 374 | $ 1,170 | |
Real estate mortgage - commercial | |||
Loans that were modified as TDRs | |||
Number of Contracts | Contract | 4 | 0 | |
Pre- Modification | [1] | $ 1,273 | $ 0 |
Post- Modification | $ 1,249 | $ 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 61
Loans and Allowance for Loan Losses (Detail Textuals) | 12 Months Ended | |
Dec. 31, 2015USD ($)Contract | Dec. 31, 2014USD ($)Contract | |
Financing Receivable, Impaired [Line Items] | ||
Specific allowance related to impaired loans | $ 1,500,000 | $ 1,700,000 |
Loans Receivable | ||
Financing Receivable, Impaired [Line Items] | ||
Carrying amount of loans pledged as collateral to the Federal Home Loan Bank | 421,800,000 | |
Fair value amount of loans pledged as collateral to the Federal Home Loan Bank | 350,500,000 | |
Impaired loans individually evaluated for impairment | 10,268,000 | 35,963,000 |
Impaired loans were evaluated based on the fair value of the loan's collateral | 6,400,000 | 15,600,000 |
Specific allowance related to impaired loans | 1,540,000 | 1,749,000 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | $ 4,539,000 | $ 28,525,000 |
Impaired Financing Receivable With No Related Allowance Recorded Investment Percentage | 44.00% | 79.00% |
Interest income recognized on impaired loans | $ 328,000 | $ 701,000 |
Troubled debt restructurings | 6,400,000 | 19,300,000 |
Amount of specific reserves related to TDRs which were allocated to the allowance for loan losses | $ 1,000,000 | $ 1,000,000 |
Number of contracts modified | Contract | 7 | 4 |
Number of contracts defaulted within twelve months of its modification | Contract | 0 | 2 |
Loans Receivable | Consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Specific allowance related to impaired loans | $ 19,000 | $ 26,000 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 36,000 | |
Loans Receivable | Performing TDRs | ||
Financing Receivable, Impaired [Line Items] | ||
Troubled debt restructurings | 5,900,000 | 17,700,000 |
Loans Receivable | Nonperforming TDRs | ||
Financing Receivable, Impaired [Line Items] | ||
Troubled debt restructurings | $ 527,000 | $ 1,600,000 |
Real Estate and Other Assets 62
Real Estate and Other Assets Acquired in Settlement of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of real estate and other assets acquired in settlement of loans | ||||
Repossessed assets | $ 0 | $ 38 | ||
Total | 19,225 | 15,140 | $ 19,542 | |
Less valuation allowance for other real estate owned | (3,233) | (3,255) | $ (4,675) | $ (6,137) |
Total other real estate and repossessed assets | 15,992 | 11,885 | ||
Commercial | ||||
Summary of real estate and other assets acquired in settlement of loans | ||||
Real estate acquired through foreclosure | 1,445 | 0 | ||
Real estate construction - residential | ||||
Summary of real estate and other assets acquired in settlement of loans | ||||
Real estate acquired through foreclosure | 0 | 23 | ||
Real estate - construction - commercial | ||||
Summary of real estate and other assets acquired in settlement of loans | ||||
Real estate acquired through foreclosure | 12,380 | 9,831 | ||
Real estate mortgage - residential | ||||
Summary of real estate and other assets acquired in settlement of loans | ||||
Real estate acquired through foreclosure | 477 | 417 | ||
Real estate mortgage - commercial | ||||
Summary of real estate and other assets acquired in settlement of loans | ||||
Real estate acquired through foreclosure | $ 4,923 | $ 4,831 |
Real Estate and Other Assets 63
Real Estate and Other Assets Acquired in Settlement of Loans (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of real estate acquired in settlement of loans | |||
Balance at beginning of period | $ 15,140 | $ 19,542 | |
Additions | 5,804 | 1,975 | |
Proceeds from sales | (1,836) | (4,560) | $ (9,641) |
Charge-offs against the valuation allowance for other real estate owned | (39) | (2,005) | |
Net gain on sales | 156 | 188 | |
Total other real estate and repossessed assets | 19,225 | 15,140 | $ 19,542 |
Less valuation allowance for other real estate owned | (3,233) | ||
Balance at end of period | $ 15,992 | $ 11,885 |
Real Estate and Other Assets 64
Real Estate and Other Assets Acquired in Settlement of Loans (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of activity in valuation allowance for other real estate owned in settlement of loans | |||
Balance, beginning of year | $ 3,255 | $ 4,675 | $ 6,137 |
Provision for other real estate owned | 17 | 585 | 3,367 |
Charge-offs | (39) | (2,005) | (4,829) |
Balance, end of year | $ 3,233 | $ 3,255 | $ 4,675 |
Real Estate and Other Assets 65
Real Estate and Other Assets Acquired in Settlement of Loans (Detail Textuals) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Other Real Estate [Abstract] | ||
Net charge-offs against allowance for loan losses | $ 995,000 | $ 335,000 |
Consumer mortgage loans in process of foreclosure | $ 390,000 | $ 209,000 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Amortized cost and fair value of debt securities | ||
Amortized Cost | $ 236,008 | $ 198,653 |
Gross Unrealized Gains | 1,060 | 1,678 |
Gross Unrealized Losses | 2,014 | 1,333 |
Fair value | 235,054 | 198,998 |
Government sponsored enterprises | ||
Amortized cost and fair value of debt securities | ||
Amortized Cost | 73,605 | 57,002 |
Gross Unrealized Gains | 127 | 240 |
Gross Unrealized Losses | 235 | 143 |
Fair value | 73,497 | 57,099 |
Asset-backed securities | ||
Amortized cost and fair value of debt securities | ||
Amortized Cost | 130,179 | 106,726 |
Gross Unrealized Gains | 440 | 855 |
Gross Unrealized Losses | 1,768 | 1,119 |
Fair value | 128,851 | 106,462 |
Obligations of states and political subdivisions | ||
Amortized cost and fair value of debt securities | ||
Amortized Cost | 32,224 | 34,925 |
Gross Unrealized Gains | 493 | 583 |
Gross Unrealized Losses | 11 | 71 |
Fair value | $ 32,706 | $ 35,437 |
Investment Securities (Details
Investment Securities (Details 1) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Amortized Cost | ||
Due in one year or less | $ 24,894 | |
Due after one year through five years | 67,513 | |
Due after five year through ten years | 12,593 | |
Due after ten years | 829 | |
Total | 105,829 | |
Asset-backed securities | 130,179 | |
Amortized Cost | 236,008 | $ 198,653 |
Fair Value | ||
Due in one year or less | 24,890 | |
Due after one year through five years | 67,614 | |
Due after five year through ten years | 12,871 | |
Due after ten years | 828 | |
Total | 106,203 | |
Asset-backed securities | 128,851 | |
Fair value | $ 235,054 | $ 198,998 |
Investment Securities (Detail68
Investment Securities (Details 2) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value | ||
Less than 12 months | $ 102,205 | $ 16,964 |
12 months or more | 45,296 | 65,249 |
Total | 147,501 | 82,213 |
Unrealized Losses | ||
Less than 12 months | (848) | (69) |
12 months or more | (1,166) | (1,264) |
Total | (2,014) | (1,333) |
Government sponsored enterprises | ||
Fair Value | ||
Less than 12 months | 43,539 | 2,983 |
12 months or more | 1,002 | 17,862 |
Total | 44,541 | 20,845 |
Unrealized Losses | ||
Less than 12 months | (222) | (4) |
12 months or more | (13) | (139) |
Total | (235) | (143) |
Asset-backed securities | ||
Fair Value | ||
Less than 12 months | 56,095 | 10,314 |
12 months or more | 43,576 | 45,445 |
Total | 99,671 | 55,759 |
Unrealized Losses | ||
Less than 12 months | (620) | (50) |
12 months or more | (1,148) | (1,069) |
Total | (1,768) | (1,119) |
Obligations of states and political subdivisions | ||
Fair Value | ||
Less than 12 months | 2,571 | 3,667 |
12 months or more | 718 | 1,942 |
Total | 3,289 | 5,609 |
Unrealized Losses | ||
Less than 12 months | (6) | (15) |
12 months or more | (5) | (56) |
Total | $ (11) | $ (71) |
Investment Securities (Detail69
Investment Securities (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investments Debt And Equity Securities [Abstract] | |||
Gains realized on sales | $ 8 | $ 86 | $ 786 |
Losses realized on sales | 0 | (66) | (8) |
Other-than-temporary impairment recognized | 0 | 0 | 0 |
Investment securities gains | $ 8 | $ 20 | $ 778 |
Investment Securities (Detail T
Investment Securities (Detail Textuals) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)Security | Dec. 31, 2014USD ($)Security | |
Investments Debt And Equity Securities [Abstract] | ||
Available for sale securities, restricted | $ 8,000 | $ 4,700 |
Available for sale securities, pledged | $ 182,700 | $ 145,500 |
Number of securities consisted in portfolio | Security | 316 | 300 |
Number of securities in loss position | Security | 71 | 74 |
Unrealized loss included in other comprehensive | $ 147,500 | $ 82,200 |
12 months or more | 45,296 | 65,249 |
Gross Unrealized Losses | $ 2,000 | $ 1,300 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Summary of premises and equipment | ||
Total, premises and equipment | $ 58,753 | $ 58,195 |
Less accumulated depreciation | 22,364 | 20,697 |
Premises and equipment, net | 36,389 | 37,498 |
Land and land improvements | ||
Summary of premises and equipment | ||
Total, premises and equipment | 10,165 | 10,152 |
Buildings and improvements | ||
Summary of premises and equipment | ||
Total, premises and equipment | 35,588 | 35,504 |
Furniture and equipment | ||
Summary of premises and equipment | ||
Total, premises and equipment | 12,906 | 12,016 |
Construction in progress | ||
Summary of premises and equipment | ||
Total, premises and equipment | $ 94 | $ 523 |
Premises and Equipment (Detai72
Premises and Equipment (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Depreciation expense | |||
Depreciation expense | $ 1,810 | $ 1,758 | $ 1,605 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Changes in mortgage servicing rights | ||||
Balance at beginning of year | $ 2,762 | |||
Changes in fair value: | ||||
Balance at end of year | 2,847 | $ 2,762 | ||
Mortgage servicing rights (MSRs) | ||||
Changes in mortgage servicing rights | ||||
Balance at beginning of year | 2,762 | 3,036 | $ 2,549 | |
Originated mortgage servicing rights | 386 | 302 | 512 | |
Changes in fair value: | ||||
Due to change in model inputs and assumptions | [1] | 372 | 66 | 723 |
Other changes in fair value | [2] | (673) | (642) | (748) |
Amortization | 0 | 0 | 0 | |
Balance at end of year | $ 2,847 | $ 2,762 | $ 3,036 | |
[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) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Assumptions used in estimating the fair value of mortgage service rights | ||
Weighted-Average Constant Prepayment Rate (as a percent) | 9.58% | 10.54% |
Weighted-Average Note Rate (as a percent) | 3.92% | 3.99% |
Weighted-Average Discount Rate (as a percent) | 9.16% | 9.21% |
Weighted-Average Expected Life (in years) | 5 years 10 months 24 days | 5 years 8 months 12 days |
Intangible Assets (Detail Textu
Intangible Assets (Detail Textuals) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 0 | $ 0 | $ 135,000 | |
Core Deposit Intangible Asset | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount | $ 4,800,000 | |||
Amortization expense | 0 | 0 | 135,000 | |
Mortgage servicing rights (MSRs) | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Mortgage loans serviced for others | 312,100,000 | 313,900,000 | ||
Mortgage loan servicing fees reported as other non-interest income | 873,000 | 895,000 | 901,000 | |
Amortization | $ 0 | $ 0 | $ 0 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Due within: | ||
One year | $ 201,418 | $ 204,566 |
Two years | 56,026 | 58,177 |
Three years | 29,030 | 33,551 |
Four years | 6,022 | 16,760 |
Five years | 5,586 | 5,282 |
Thereafter | 0 | 1,347 |
Total | $ 298,082 | $ 319,683 |
Deposits (Details 1)
Deposits (Details 1) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Due within: | ||
Three months or less | $ 39,122 | $ 33,488 |
Over three months through six months | 30,704 | 29,381 |
Over six months through twelve months | 30,432 | 35,308 |
Over twelve months | 31,986 | 36,768 |
Total | $ 132,244 | $ 134,945 |
Deposits (Detail Textuals)
Deposits (Detail Textuals) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Deposits | ||
Minimum cash required | $ 1,600,000 | $ 1,600,000 |
Average compensating balances | 544,000 | 408,000 |
Time deposits $250000 or more | $ 254,700,000 | $ 253,900,000 |
Borrowings (Details)
Borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Borrowings | ||
Average Balance Outstanding | $ 30,924 | $ 20,223 |
Maximum Outstanding at any Month End | 59,401 | 22,849 |
Balance | $ 56,834 | $ 17,970 |
Federal funds purchased | ||
Borrowings | ||
Year End Weighted Rate (as a percent) | 0.70% | 0.45% |
Average Weighted Rate (as a percent) | 0.41% | 0.38% |
Average Balance Outstanding | $ 658 | $ 404 |
Maximum Outstanding at any Month End | 937 | 0 |
Balance | $ 0 | $ 0 |
Short-term repurchase agreements | ||
Borrowings | ||
Year End Weighted Rate (as a percent) | 0.10% | 0.12% |
Average Weighted Rate (as a percent) | 0.17% | 0.10% |
Average Balance Outstanding | $ 30,266 | $ 19,819 |
Maximum Outstanding at any Month End | 58,464 | 22,849 |
Balance | $ 56,834 | $ 17,970 |
Borrowings (Details 1)
Borrowings (Details 1) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Borrowings | ||
Year End Balance - Total Bank | $ 50,000 | $ 43,000 |
Year End Balance - Total Company | 49,486 | 49,486 |
Bank | ||
Borrowings | ||
Year End Balance - Total Bank | 50,000 | |
FHLB advances | Bank | ||
Borrowings | ||
2,015 | 0 | 8,000 |
2,016 | 8,000 | 8,000 |
2,017 | 5,000 | 5,000 |
2,018 | 22,000 | 20,000 |
2,019 | 4,000 | 2,000 |
2,020 | 11,000 | 0 |
Year End Balance - Total Bank | $ 50,000 | $ 43,000 |
2015 (as a percent) | 0.30% | |
2016 (as a percent) | 0.67% | 0.67% |
2017 (as a percent) | 1.07% | 1.07% |
2018 (as a percent) | 1.93% | 2.00% |
2019 (as a percent) | 1.79% | 1.97% |
2020 (as a percent) | 1.95% | |
Subordinated notes due 2034 | ||
Borrowings | ||
Year End Balance - Total Company | $ 25,774 | $ 25,774 |
Year End Weighted Rate (as a percent) | 3.23% | 2.94% |
Subordinated notes due 2035 | ||
Borrowings | ||
Year End Balance - Total Company | $ 23,712 | $ 23,712 |
Year End Weighted Rate (as a percent) | 2.36% | 2.07% |
Borrowings (Detail Textuals)
Borrowings (Detail Textuals) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Short-term Debt [Line Items] | ||
Long-term Federal Home Loan Bank Advances | $ 50,000 | $ 43,000 |
Bank | ||
Short-term Debt [Line Items] | ||
Long-term Federal Home Loan Bank Advances | 50,000 | |
Federal funds purchased | Bank | ||
Short-term Debt [Line Items] | ||
Maximum borrowing capacity of federal funds on unsecured basis | 40,000 | |
Maximum borrowing capacity of federal funds on secured basis | 8,600 | |
Amount of FHLB advances which may be called early | 10,000 | |
Maximum additional borrowing amount under agreement with FHLB | $ 207,500 |
Borrowings (Detail Textuals 1)
Borrowings (Detail Textuals 1) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Mar. 17, 2005 | Mar. 17, 2004 | Dec. 31, 2015 | Dec. 31, 2014 | |
Borrowings | ||||
Investment in common interests of the trust during the period | $ 712,000 | |||
Investment in preferred interests of the trust by a third party during the period | 23,000,000 | |||
Subordinated notes | 49,486,000 | $ 49,486,000 | ||
Investment in common securities of the trust | $ 1,500,000 | |||
Exchange Statutory Trust II | ||||
Borrowings | ||||
Trust preferred securities issued | $ 23,000,000 | |||
Term | 30 years | |||
Description of variable rate | three-month LIBOR | |||
Basis spread on variable rate (as a percent) | 1.83% | |||
Interest rate at end of period (as a percent) | 2.36% | |||
Period of time after issuance in which TPS can be repaid without penalty | 5 years | |||
Exchange Statutory Trust I | ||||
Borrowings | ||||
Trust preferred securities issued | $ 25,000,000 | |||
Description of variable rate | three-month LIBOR | |||
Basis spread on variable rate (as a percent) | 2.70% | |||
Interest rate at end of period (as a percent) | 3.23% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | |||||||||||
Federal | $ 3,619 | $ 1,105 | $ 584 | ||||||||
State | 496 | 137 | 71 | ||||||||
Total current | 4,115 | 1,242 | 655 | ||||||||
Deferred: | |||||||||||
Federal | 391 | 2,353 | 1,485 | ||||||||
State | 74 | 447 | 282 | ||||||||
Total deferred | 465 | 2,800 | 1,767 | ||||||||
Total income tax expense | $ 1,083 | $ 1,377 | $ 1,001 | $ 1,119 | $ 1,074 | $ 802 | $ 1,121 | $ 1,045 | $ 4,580 | $ 4,042 | $ 2,422 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||||||||||
Income before provision for income tax expense | $ 13,179 | $ 11,696 | $ 7,396 | ||||||||
Tax at statutory federal income tax rate | 4,481 | 3,977 | 2,515 | ||||||||
Tax-exempt income | (369) | (348) | (353) | ||||||||
State income tax, net of federal tax benefit | 376 | 385 | 233 | ||||||||
Other, net | 92 | 28 | 27 | ||||||||
Total income tax expense | $ 1,083 | $ 1,377 | $ 1,001 | $ 1,119 | $ 1,074 | $ 802 | $ 1,121 | $ 1,045 | $ 4,580 | $ 4,042 | $ 2,422 |
Tax at statutory federal income tax rate (in percent) | 34.00% | 34.00% | 34.00% | ||||||||
Tax-exempt income (in percent) | (2.80%) | (2.98%) | (4.77%) | ||||||||
State income tax, net of federal tax benefit (in percent) | 2.85% | 3.30% | 3.15% | ||||||||
Other, net (in percent) | 0.70% | 0.24% | 0.37% | ||||||||
Provision for income tax expense (in percent) | 34.75% | 34.56% | 32.75% |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Allowance for loan losses | $ 3,269 | $ 3,458 |
Impairment of other real estate owned | 1,226 | 1,233 |
Goodwill | 1,437 | 1,786 |
Available-for-sale securities | 363 | 0 |
Nonaccrual loan interest | 640 | 1,069 |
Core deposit intangible | 556 | 689 |
Pension | 1,242 | 985 |
Deferred taxes on pension | 874 | 998 |
Deferred compensation | 138 | 130 |
Other | 342 | 250 |
Total deferred tax assets | 10,087 | 10,598 |
Deferred tax liabilities: | ||
Available-for-sale securities | 0 | 131 |
Premises and equipment | 938 | 1,160 |
Mortgage servicing rights | 1,064 | 1,022 |
Assets held for sale | 49 | 114 |
Other | 13 | 53 |
Total deferred tax liabilities | 2,064 | 2,480 |
Net deferred tax assets | $ 8,023 | $ 8,118 |
Income Taxes (Details Textuals)
Income Taxes (Details Textuals) - Capital loss carryforward - USD ($) | Dec. 31, 2014 | Dec. 31, 2013 |
Tax Credit Carryforward [Line Items] | ||
Capital losses | $ 219,000 | $ 219,000 |
Valuation reserve | $ 83,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Unrealized Loss on Securities | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Balance at the beginning | [1] | $ 214,000 | $ (1,491,000) | |
Other comprehensive (loss) income, before reclassifications | [1] | (1,291,000) | 2,770,000 | |
Amounts reclassified from accumulated other comprehensive income | [1] | (8,000) | (20,000) | |
Current period other comprehensive (loss) income, before tax | [1] | (1,299,000) | 2,750,000 | |
Deferred tax adjustment | [1] | 0 | ||
Income tax benefit (expense) | [1] | 494,000 | (1,045,000) | |
Current period other comprehensive (loss) income, net of tax | [1] | (805,000) | 1,705,000 | |
Balance at the end | [1] | (591,000) | 214,000 | $ (1,491,000) |
Unrecognized Net Pension and Postretirement Costs | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Balance at the beginning | [2] | (1,442,000) | 722,000 | |
Other comprehensive (loss) income, before reclassifications | [2] | 5,000 | (3,568,000) | |
Amounts reclassified from accumulated other comprehensive income | [2] | 144,000 | 79,000 | |
Current period other comprehensive (loss) income, before tax | [2] | 149,000 | (3,489,000) | |
Deferred tax adjustment | [2] | (77,000) | ||
Income tax benefit (expense) | [2] | (57,000) | 1,325,000 | |
Current period other comprehensive (loss) income, net of tax | [2] | 15,000 | (2,164,000) | |
Balance at the end | [2] | (1,427,000) | (1,442,000) | 722,000 |
Accumulated Other Comprehensive (Loss) Income | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Balance at the beginning | (1,228,000) | (769,000) | ||
Other comprehensive (loss) income, before reclassifications | (1,286,000) | (798,000) | ||
Amounts reclassified from accumulated other comprehensive income | 136,000 | 59,000 | ||
Current period other comprehensive (loss) income, before tax | (1,150,000) | (739,000) | ||
Deferred tax adjustment | (77,000) | |||
Income tax benefit (expense) | 437,000 | 280,000 | ||
Current period other comprehensive (loss) income, net of tax | (790,000) | (459,000) | (2,594,000) | |
Balance at the end | (2,018,000) | (1,228,000) | (769,000) | |
Balance at the beginning | (1,228,000) | |||
Current period other comprehensive (loss) income, net of tax | (790,000) | (459,000) | $ (2,594,000) | |
Balance at the end | $ (2,018,000) | $ (1,228,000) | ||
[1] | The pre-tax amounts reclassified from accumulated other comprehensive (loss) income 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 income are included in the computation of net periodic pension cost. See Note 11. |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of employee benefits charged to operating expenses | |||
Payroll taxes | $ 1,102 | $ 1,081 | $ 1,106 |
Medical plans | 1,928 | 1,974 | 1,915 |
401(k) match | 325 | 310 | 309 |
Pension plan | 1,391 | 960 | 1,173 |
Profit-sharing | 563 | 201 | 118 |
Other | 164 | 122 | 219 |
Total employee benefits | $ 5,473 | $ 4,648 | $ 4,840 |
Employee Benefit Plans (Detai89
Employee Benefit Plans (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Change in projected benefit obligation: | |||
Balance, January 1 | $ 19,977 | $ 14,852 | |
Service cost | 1,325 | 981 | $ 1,174 |
Interest cost | 838 | 732 | 646 |
Actuarial (loss) gain | (1,084) | (3,813) | |
Benefits paid | (455) | (401) | |
Balance, December 31 | 20,601 | 19,977 | 14,852 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value, January 1 | 14,933 | 13,532 | |
Actual return on plan assets | (75) | 1,118 | |
Employer contribution | 716 | 725 | |
Expenses paid | (88) | (41) | |
Benefits paid | (455) | (401) | |
Fair value, December 31 | 15,031 | 14,933 | $ 13,532 |
Funded status at end of year | (5,570) | (5,044) | |
Accumulated benefit obligation | $ 16,550 | $ 16,595 |
Employee Benefit Plans (Detai90
Employee Benefit Plans (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Components of net pension cost | |||
Service cost - benefits earned during the year | $ 1,325 | $ 981 | $ 1,174 |
Interest costs on projected benefit obligations | 838 | 732 | 646 |
Expected return on plan assets | (957) | (872) | (797) |
Expected administrative expenses | 40 | 40 | 40 |
Amortization of prior service cost | 79 | 79 | 79 |
Amortization of unrecognized net loss | 66 | 0 | 31 |
Net periodic pension expense | $ 1,391 | $ 960 | $ 1,173 |
Employee Benefit Plans (Detai91
Employee Benefit Plans (Details 3) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ||
Prior service costs | $ (364) | $ (443) |
Net accumulated actuarial net loss | (1,937) | (2,008) |
Accumulated other comprehensive loss | (2,301) | (2,451) |
Net periodic benefit cost in excess of cumulative employer contributions | (3,269) | (2,593) |
Net amount recognized at December 31, balance sheet | (5,570) | (5,044) |
Net gain (loss) arising during period | 5 | (3,568) |
Prior service cost amortization | 79 | 79 |
Amortization of net actuarial loss | 65 | 0 |
Total recognized in other comprehensive income (loss) | 149 | (3,489) |
Total recognized in net periodic pension cost and other comprehensive income | $ 1,242 | $ 4,449 |
Employee Benefit Plans (Detai92
Employee Benefit Plans (Details 4) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Determination of benefit obligation at year end: | |||
Discount rate | 4.70% | 4.25% | 5.00% |
Annual rate of compensation increase | 3.78% | 3.78% | 3.73% |
Determination of pension expense for year ended: | |||
Discount rate for the service cost | 4.25% | 5.00% | 4.25% |
Annual rate of compensation increase | 3.78% | 3.73% | 3.61% |
Expected long-term rate of return on plan assets | 7.00% | 7.00% | 7.00% |
Employee Benefit Plans (Detai93
Employee Benefit Plans (Details 5) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value | $ 15,031 | $ 14,933 | $ 13,532 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value | 13,229 | 13,886 | ||
Other Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value | 1,802 | 1,047 | ||
Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value | 0 | 0 | ||
Cash equivalents | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value | 1,663 | 1,937 | ||
Cash equivalents | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value | 1,663 | 1,937 | ||
Cash equivalents | Other Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value | 0 | 0 | ||
Cash equivalents | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value | 0 | 0 | ||
U.S. large-cap | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value | 6,191 | [1] | 7,252 | |
U.S. large-cap | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value | 6,191 | [1] | 7,252 | |
U.S. large-cap | Other Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value | 0 | [1] | 0 | |
U.S. large-cap | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value | 0 | [1] | 0 | |
U.S. mid-cap | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value | 2,094 | [2] | 921 | |
U.S. mid-cap | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value | 2,094 | [2] | 921 | |
U.S. mid-cap | Other Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value | 0 | [2] | 0 | |
U.S. mid-cap | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value | 0 | [2] | 0 | |
U.S. small-cap | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value | 820 | [3] | 1,131 | |
U.S. small-cap | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value | 820 | [3] | 1,131 | |
U.S. small-cap | Other Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value | 0 | [3] | 0 | |
U.S. small-cap | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value | 0 | [3] | 0 | |
International | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value | 1,778 | [4] | 1,895 | |
International | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value | 1,778 | [4] | 1,895 | |
International | Other Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value | 0 | [4] | 0 | |
International | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value | 0 | [4] | 0 | |
Real estate | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value | 478 | [5] | 486 | |
Real estate | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value | 478 | [5] | 486 | |
Real estate | Other Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value | 0 | [5] | 0 | |
Real estate | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value | 0 | [5] | 0 | |
Commodities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value | 205 | [6] | 264 | |
Commodities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value | 205 | [6] | 264 | |
Commodities | Other Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value | 0 | [6] | 0 | |
Commodities | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value | 0 | [6] | 0 | |
U.S. gov't agency obligations | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value | 1,802 | [7] | 1,047 | |
U.S. gov't agency obligations | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value | 0 | [7] | 0 | |
U.S. gov't agency obligations | Other Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value | 1,802 | [7] | 1,047 | |
U.S. gov't agency obligations | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value | $ 0 | [7] | $ 0 | |
[1] | This category is comprised of low-cost equity index funds not actively managed that track the S&P 500. | |||
[2] | This category is comprised of low-cost equity index funds not actively managed that track the MSCI U.S. mid-cap 450. | |||
[3] | This category is comprised of actively managed mutual funds. | |||
[4] | At December 31, 2015 and 2014, 31% of this category is comprised of low-cost equity index funds not actively managed that track the MSCI EAFE. | |||
[5] | This category is comprised of low-cost real estate index exchange traded funds. | |||
[6] | This category is comprised of exchange traded funds investing in agricultural and energy commodities. | |||
[7] | This category is comprised of individual bonds. |
Employee Benefit Plans (Parenth
Employee Benefit Plans (Parentheticals) (Details 5) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ||
Percentage of securities comprising of low-cost equity index funds not actively managed that track the MSCI EAFE | 31.00% | 31.00% |
Employee Benefit Plans (Detai95
Employee Benefit Plans (Details 6) $ in Thousands | Dec. 31, 2014USD ($) |
Future benefit payments expected to be paid | |
Pension benefits, 2016 | $ 513 |
Pension benefits, 2017 | 637 |
Pension benefits, 2018 | 660 |
Pension benefits, 2019 | 788 |
Pension benefits, 2020 | 859 |
Pension benefits, 2021 to 2025 | $ 5,530 |
Employee Benefit Plans (Detail
Employee Benefit Plans (Detail Textuals) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Compensation and Retirement Disclosure [Abstract] | |||||
Employer match | 3.00% | 3.00% | |||
Defined benefit plan contributions by employer percent | 6.00% | 6.00% | |||
Defined Benefit Plan, Contributions by Employer | $ 716,000 | $ 725,000 | |||
Defined Benefit Plan Contributions Minimum Required Contribution | 758,000 | ||||
Estimated prior service cost for the defined benefit pension plan that will be amortized from accumulated other comprehensive income into net periodic cost | $ 79,000 | ||||
Assumed overall expected long-term rate of return on pension plan assets (in percent) | 7.00% | 7.00% | 7.00% | ||
Annual return on plan assets | (0.40%) | 8.30% | 19.10% | 11.40% | 0.10% |
Estimated pension expense | $ 1,200,000 | $ 1,400,000 |
Employee Benefit Plans (Detai97
Employee Benefit Plans (Detail Textuals 1) | 12 Months Ended |
Dec. 31, 2015 | |
Equity securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Long-term investment target mix for the plan | 70.00% |
Fixed income | |
Defined Benefit Plan Disclosure [Line Items] | |
Long-term investment target mix for the plan | 30.00% |
Stock Compensation (Details)
Stock Compensation (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Number of shares | |||
Outstanding, beginning of year (in shares) | 100,361 | 131,366 | 242,304 |
Granted (in shares) | 0 | 0 | 0 |
Exercised (in shares) | 0 | 0 | 0 |
Forfeited (in shares) | (37,616) | (31,005) | (110,938) |
Outstanding, end of year (in shares) | 62,745 | 100,361 | 131,366 |
Exercisable, end of year (in shares) | 55,262 | 88,586 | 115,663 |
Weighted average exercise price | |||
Outstanding, beginning of year (in dollars per share) | $ 21.56 | $ 22.32 | $ 21.95 |
Granted (in dollars per share) | 0 | 0 | 0 |
Exercised (in dollars per share) | 0 | 0 | 0 |
Forfeited (in dollars per share) | 21.65 | 24.76 | 21.51 |
Outstanding, end of year (in dollars per share) | 21.50 | 21.56 | 22.32 |
Exercisable, end of year (in dollars per share) | $ 22.25 | $ 21.95 | $ 22.58 |
Weighted average Contractual Term (in years) | |||
Outstanding at the end of period | 1 year 4 months 28 days | 1 year 11 months 5 days | 2 years 6 months 4 days |
Exercisable at the end of period | 1 year 2 months 27 days | 1 year 9 months | 2 years 3 months 18 days |
Aggregate Intrinsic Value | |||
Outstanding, end of year | $ 0 | $ 0 | $ 0 |
Exercisable, end of year | $ 0 | $ 0 | $ 0 |
Stock Compensation (Detail Text
Stock Compensation (Detail Textuals) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Grant of options to purchase (in shares) | 592,168 | ||
Stock dividend (in percent) | 4.00% | ||
Stock based compensation expense | $ 10,000 | $ 20,000 | $ 19,000 |
Total unrecognized compensation expense related to non-vested stock awards | $ 20,000 | ||
Weighted average period is expected to be recognized | 6 months 26 days |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Basic earnings per common share: | |||||||||||
Net income | $ 8,599 | $ 7,654 | $ 4,974 | ||||||||
Less preferred stock dividends and accretion of discount | 0 | 0 | 615 | ||||||||
Net income available to common shareholders | $ 1,994 | $ 2,540 | $ 1,927 | $ 2,138 | $ 2,001 | $ 1,568 | $ 2,098 | $ 1,987 | $ 8,599 | $ 7,654 | $ 4,359 |
Basic earnings per share | $ 0.37 | $ 0.47 | $ 0.35 | $ 0.39 | $ 0.37 | $ 0.29 | $ 0.39 | $ 0.36 | $ 1.58 | $ 1.41 | $ 0.80 |
Diluted earnings per common share: | |||||||||||
Net income | $ 8,599 | $ 7,654 | $ 4,974 | ||||||||
Less preferred stock dividends and accretion of discount | 0 | 0 | 615 | ||||||||
Net income available to common shareholders | $ 1,994 | $ 2,540 | $ 1,927 | $ 2,138 | $ 2,001 | $ 1,568 | $ 2,098 | $ 1,987 | $ 8,599 | $ 7,654 | $ 4,359 |
Average shares outstanding (in shares) | 5,443,284 | 5,443,344 | 5,443,344 | ||||||||
Effect of dilutive stock options (in shares) | 0 | 0 | 0 | ||||||||
Average shares outstanding including dilutive stock options (in shares) | 5,443,284 | 5,443,344 | 5,443,344 | ||||||||
Diluted earnings per share | $ 0.37 | $ 0.47 | $ 0.35 | $ 0.39 | $ 0.37 | $ 0.29 | $ 0.39 | $ 0.36 | $ 1.58 | $ 1.41 | $ 0.80 |
Earnings per Share (Details 1)
Earnings per Share (Details 1) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of anti-dilutive shares | |||
Anti-dilutive shares | 62,745 | 100,361 | 131,366 |
Option shares | |||
Summary of anti-dilutive shares | |||
Anti-dilutive shares | 62,745 | 100,361 | 131,366 |
Warrant shares | |||
Summary of anti-dilutive shares | |||
Anti-dilutive shares | 0 | 0 | 0 |
Earnings per Share (Details 2)
Earnings per Share (Details 2) - shares | Aug. 06, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule Of Common Stock Outstanding [Roll Forward] | ||||
Outstanding, beginning of year | 5,233,986 | 5,032,679 | 4,839,114 | |
Issuance of stock as 4% stock dividend | 209,359 | 201,307 | 193,565 | |
Purchase of treasury stock | (2,155) | (2,155) | 0 | 0 |
Outstanding, end of year | 5,441,190 | 5,233,986 | 5,032,679 |
Earnings per Share (Parenthetic
Earnings per Share (Parentheticals) (Details 2) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||
Common Stock, Dividend Rate, Percentage | 4.00% | 4.00% | 4.00% |
Earnings per Share (Detail Text
Earnings per Share (Detail Textuals) - USD ($) | Aug. 06, 2015 | Jun. 11, 2013 | May. 15, 2013 | May. 09, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 19, 2008 |
Class of Stock [Line Items] | ||||||||
Total purchase price of preferred shares redeemed | $ 18,255,000 | |||||||
Share repurchase plan, Authorized amount | $ 2,000,000 | |||||||
Number of common stock repurchased | 2,155 | 2,155 | 0 | 0 | ||||
Average price per share of common stock repurchased | $ 15.39 | |||||||
U.S. Treasury Department's Capital Purchase Program | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred Stock, Shares Issued | 30,255 | |||||||
Preferred stock, par value (in dollars per share) | $ 1,000 | |||||||
Redemption of preferred shares | 18,255 | 12,000 | ||||||
Total purchase price of preferred shares redeemed | $ 18,500,000 | $ 12,100,000 | ||||||
U.S. Treasury Department's Capital Purchase Program | Ten year warrant | ||||||||
Class of Stock [Line Items] | ||||||||
Number of common stock called by warrants | 287,133 | |||||||
U.S. Treasury Department's Capital Purchase Program | Common stock warrant | ||||||||
Class of Stock [Line Items] | ||||||||
Total purchase price of warrants repurchased | $ 540,000 | |||||||
Purchase price per share of warrants repurchased (in warrants per share) | $ 1.88 |
Capital Requirements (Details)
Capital Requirements (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
The actual and required capital amounts and ratios for the Company and the Bank | ||
Total capital (to risk-weighted assets), Actual Amount | $ 146,068 | $ 138,619 |
Total capital (to risk-weighted assets), Actual Ratio (as a percent) | 14.78% | 15.78% |
Total capital (to risk-weighted assets), Required for Capital Adequacy Purposes, Amount | $ 79,066 | $ 70,282 |
Total capital (to risk-weighted assets), Required for Capital Adequacy Purposes, Ratio (as a percent) | 8.00% | 8.00% |
Tier I capital (to risk-weighted assets), Actual Amount | $ 118,875 | $ 108,785 |
Tier I capital (to risk-weighted assets), Actual, Ratio (as a percent) | 12.03% | 12.38% |
Tier I capital (to risk-weighted assets), Required for Capital Adequacy Purposes, Amount | $ 59,299 | $ 35,141 |
Tier I capital (to risk-weighted assets), Required for Capital Adequacy Purposes, Ratio (as a percent) | 6.00% | 4.00% |
Common Equity Tier I Capital (to risk-weighted assets), Actual Amount | $ 89,304 | |
Common Equity Tier I Capital (to risk-weighted assets), Actual Ratio (as a percent) | 9.02% | |
Common Equity Tier I Capital (to risk-weighted assets), Required for Capital Adequacy Purposes, Amount | $ 44,475 | |
Common Equity Tier I Capital (to risk-weighted assets), Required for Capital Adequacy Purposes, Ratio (as a percent) | 4.50% | |
Tier I Capital (to adjusted average assets), Actual Amount | $ 118,875 | $ 108,785 |
Tier I Capital (to adjusted average assets), Actual Ratio (as a percent) | 9.84% | 9.42% |
Tier I Capital (to adjusted average assets), Required for Capital Adequacy Purposes, Amount | $ 48,314 | $ 46,197 |
Tier I capital (to adjusted average assets) Required for Capital Adequacy Purposes, Ratio (as a percent) | 4.00% | 4.00% |
Bank | ||
The actual and required capital amounts and ratios for the Company and the Bank | ||
Total capital (to risk-weighted assets), Actual Amount | $ 137,572 | $ 128,311 |
Total capital (to risk-weighted assets), Actual Ratio (as a percent) | 13.98% | 14.78% |
Total capital (to risk-weighted assets), Required for Capital Adequacy Purposes, Amount | $ 78,718 | $ 69,430 |
Total capital (to risk-weighted assets), Required for Capital Adequacy Purposes, Ratio (as a percent) | 8.00% | 8.00% |
Total capital (to risk-weighted assets), Well-Capitalized Capital requirements, Amount | $ 98,398 | $ 86,788 |
Total capital (to risk-weighted assets), Well-Capitalized Capital requirements, Ratio (as a percent) | 10.00% | 10.00% |
Tier I capital (to risk-weighted assets), Actual Amount | $ 128,808 | $ 119,212 |
Tier I capital (to risk-weighted assets), Actual, Ratio (as a percent) | 13.09% | 13.74% |
Tier I capital (to risk-weighted assets), Required for Capital Adequacy Purposes, Amount | $ 59,039 | $ 34,715 |
Tier I capital (to risk-weighted assets), Required for Capital Adequacy Purposes, Ratio (as a percent) | 6.00% | 4.00% |
Tier I capital (to risk-weighted assets), Well-Capitalized Capital requirements, Amount | $ 78,718 | $ 52,073 |
Tier I capital (to risk-weighted assets), Well-Capitalized Capital requirements, Ratio (as a percent) | 8.00% | 6.00% |
Common Equity Tier I Capital (to risk-weighted assets), Actual Amount | $ 128,808 | |
Common Equity Tier I Capital (to risk-weighted assets), Actual Ratio (as a percent) | 13.09% | |
Common Equity Tier I Capital (to risk-weighted assets), Required for Capital Adequacy Purposes, Amount | $ 44,279 | |
Common Equity Tier I Capital (to risk-weighted assets), Required for Capital Adequacy Purposes, Ratio (as a percent) | 4.50% | |
Common Equity Tier I Capital (to risk-weighted assets), Well-Capitalized Under Prompt Corrective Action Provision, Amount | $ 63,959 | |
Common Equity Tier I Capital (to risk-weighted assets), Well-Capitalized Under Prompt Corrective Action Provision, Ratio (as a percent) | 6.50% | |
Tier I Capital (to adjusted average assets), Actual Amount | $ 128,808 | $ 119,212 |
Tier I Capital (to adjusted average assets), Actual Ratio (as a percent) | 10.73% | 10.42% |
Tier I Capital (to adjusted average assets), Required for Capital Adequacy Purposes, Amount | $ 48,025 | $ 45,784 |
Tier I capital (to adjusted average assets) Required for Capital Adequacy Purposes, Ratio (as a percent) | 4.00% | 4.00% |
Tier I capital (to adjusted average assets), Well-Capitalized Capital requirements, Amount | $ 60,031 | $ 57,230 |
Tier I capital (to adjusted average assets), Well-Capitalized Capital requirements, Ratio (as a percent) | 5.00% | 5.00% |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets: | ||
Available for sale debt securities, fair value | $ 235,054 | $ 198,998 |
Mortgage servicing rights, fair value | 2,847 | 2,762 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Mortgage servicing rights, fair value | 0 | 0 |
Other Observable Inputs (Level 2) | ||
Assets: | ||
Available for sale debt securities, fair value | 235,054 | 198,998 |
Mortgage servicing rights, fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Mortgage servicing rights, fair value | 2,847 | 2,762 |
Recurring | ||
Assets: | ||
Assets, Total | 237,901 | 201,760 |
Recurring | Government sponsored enterprises | ||
Assets: | ||
Available for sale debt securities, fair value | 73,497 | 57,099 |
Recurring | Asset-backed securities | ||
Assets: | ||
Available for sale debt securities, fair value | 128,851 | 106,462 |
Recurring | Obligations of states and political subdivisions | ||
Assets: | ||
Available for sale debt securities, fair value | 32,706 | 35,437 |
Recurring | Mortgage servicing rights | ||
Assets: | ||
Mortgage servicing rights, fair value | 2,847 | 2,762 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Assets, Total | 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) | Asset-backed securities | ||
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 servicing rights | ||
Assets: | ||
Mortgage servicing rights, fair value | 0 | 0 |
Recurring | Other Observable Inputs (Level 2) | ||
Assets: | ||
Assets, Total | 235,054 | 198,998 |
Recurring | Other Observable Inputs (Level 2) | Government sponsored enterprises | ||
Assets: | ||
Available for sale debt securities, fair value | 73,497 | 57,099 |
Recurring | Other Observable Inputs (Level 2) | Asset-backed securities | ||
Assets: | ||
Available for sale debt securities, fair value | 128,851 | 106,462 |
Recurring | Other Observable Inputs (Level 2) | Obligations of states and political subdivisions | ||
Assets: | ||
Available for sale debt securities, fair value | 32,706 | 35,437 |
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 | 2,847 | 2,762 |
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) | Asset-backed securities | ||
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 servicing rights | ||
Assets: | ||
Mortgage servicing rights, fair value | $ 2,847 | $ 2,762 |
Fair Value Measurements (Det107
Fair Value Measurements (Details 1) - Recurring - Significant Unobservable Inputs (Level 3) - Mortgage servicing rights - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair value of assets | ||
Balance at beginning of period | $ 2,762 | $ 3,036 |
Total gains or losses (realized/unrealized) included in earnings | (301) | (576) |
Total gains or losses (realized/unrealized) included in other comprehensive income | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issues | 386 | 302 |
Settlements | 0 | 0 |
Balance at end of period | $ 2,847 | $ 2,762 |
Fair Value Measurements (Det108
Fair Value Measurements (Details 2) - Recurring - Significant Unobservable Inputs (Level 3) - Mortgage servicing rights | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Quantitative Information | ||
Weighted average constant prepayment rate (as a percent) | 9.58% | 10.54% |
Weighted average discount rate (as a percent) | 9.16% | 9.21% |
Weighted average expected life (in years) | 5 years 10 months 24 days | 5 years 8 months 12 days |
Fair Value Measurements (Det109
Fair Value Measurements (Details 3) - Nonrecurring - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Total Gains (Losses) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gains (losses) on impaired loans | [1] | $ (1,885) | $ (5,363) |
Gains (losses) on other real estate owned and repossessed assets | [1] | (118) | (1,870) |
Total Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | 4,189 | 5,689 | |
Other real estate owned and repossessed assets | 15,992 | 11,885 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | 0 | 0 | |
Other real estate owned and repossessed assets | 0 | 0 | |
Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | 0 | 0 | |
Other real estate owned and repossessed assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | 4,189 | 5,689 | |
Other real estate owned and repossessed assets | 15,992 | 11,885 | |
Commercial, financial, and agricultural | Total Gains (Losses) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gains (losses) on impaired loans | [1] | (920) | (1,105) |
Commercial, financial, and agricultural | Total Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | 272 | 1,386 | |
Commercial, financial, and agricultural | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | 0 | 0 | |
Commercial, financial, and agricultural | Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | 0 | 0 | |
Commercial, financial, and agricultural | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | 272 | 1,386 | |
Real estate construction - residential | Total Gains (Losses) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gains (losses) on impaired loans | [1] | 0 | (350) |
Real estate construction - residential | Total Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | 0 | 0 | |
Real estate construction - residential | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | 0 | 0 | |
Real estate construction - residential | Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | 0 | 0 | |
Real estate construction - residential | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | 0 | 0 | |
Real estate - construction - commercial | Total Gains (Losses) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gains (losses) on impaired loans | [1] | (10) | (491) |
Real estate - construction - commercial | Total Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | 87 | 0 | |
Real estate - construction - commercial | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | 0 | 0 | |
Real estate - construction - commercial | Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | 0 | 0 | |
Real estate - construction - commercial | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | 87 | 0 | |
Real estate mortgage - residential | Total Gains (Losses) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gains (losses) on impaired loans | [1] | (567) | (332) |
Real estate mortgage - residential | Total Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | 3,336 | 3,322 | |
Real estate mortgage - residential | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | 0 | 0 | |
Real estate mortgage - residential | Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | 0 | 0 | |
Real estate mortgage - residential | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | 3,336 | 3,322 | |
Real estate mortgage - commercial | Total Gains (Losses) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gains (losses) on impaired loans | [1] | (322) | (2,937) |
Real estate mortgage - commercial | Total Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | 369 | 809 | |
Real estate mortgage - commercial | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | 0 | 0 | |
Real estate mortgage - commercial | Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | 0 | 0 | |
Real estate mortgage - commercial | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | 369 | 809 | |
Consumer | Total Gains (Losses) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gains (losses) on impaired loans | [1] | (66) | (148) |
Consumer | Total Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | 125 | 172 | |
Consumer | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | 0 | 0 | |
Consumer | Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | 0 | 0 | |
Consumer | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | $ 125 | $ 172 | |
[1] | Total gains (losses) reported for other real estate owned and repossessed assets includes charge-offs, valuation write-downs, and net losses taken during the periods reported. |
Fair Value Measurements (Det110
Fair Value Measurements (Detail Textuals) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value Disclosures [Abstract] | ||
Gains included in earnings attributable to change in unrealized gains or losses | $ 372,000 | $ 66,000 |
Impaired loans with a specific allowance | 5,700,000 | 7,400,000 |
Specific allowance related to impaired loans | 1,500,000 | 1,700,000 |
Impaired financing receivable charge offs | $ 1,900,000 | $ 5,400,000 |
Fair Value of Financial Inst111
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets: | ||
Cash and due from banks | $ 20,484 | $ 22,364 |
Federal funds sold and overnight interest-bearing deposits | 7,893 | 20,445 |
Investment in available-for-sale securities, at fair value | 235,054 | 198,998 |
Mortgage servicing rights | 2,847 | 2,762 |
Accrued interest receivable | 4,853 | 4,816 |
Deposits: | ||
Non-interest bearing demand | 208,035 | 207,700 |
Savings, interest checking and money market | 441,080 | 442,131 |
Time deposits | 298,082 | 319,683 |
Accrued interest payable | 382 | 373 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Cash and due from banks | 20,484 | 22,364 |
Federal funds sold and overnight interest-bearing deposits | 7,893 | 20,445 |
Investment in available-for-sale securities, at fair value | 0 | 0 |
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 | 4,853 | 4,816 |
Assets, Total | 33,230 | 47,625 |
Deposits: | ||
Non-interest bearing demand | 208,035 | 207,700 |
Savings, interest checking and money market | 441,080 | 442,059 |
Time deposits | 0 | 0 |
Federal funds purchased and securities sold under agreements to repurchase | 56,834 | 17,970 |
Subordinated notes | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Accrued interest payable | 382 | 373 |
Liabilities, Fair Value Disclosure, Total | 706,331 | 668,102 |
Other Observable Inputs (Level 2) | ||
Assets: | ||
Cash and due from banks | 0 | 0 |
Federal funds sold and overnight interest-bearing deposits | 0 | 0 |
Investment in available-for-sale securities, at fair value | 235,054 | 198,998 |
Loans, net | 0 | 0 |
Investment in FHLB stock | 3,390 | 3,075 |
Mortgage servicing rights | 0 | 0 |
Cash surrender value - life insurance | 2,348 | 2,284 |
Accrued interest receivable | 0 | 0 |
Assets, Total | 240,792 | 204,357 |
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 |
Subordinated notes | 40,821 | 33,371 |
Federal Home Loan Bank advances | 52,340 | 44,396 |
Accrued interest payable | 0 | 0 |
Liabilities, Fair Value Disclosure, Total | 93,161 | 77,767 |
Net Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Cash and due from banks | 0 | 0 |
Federal funds sold and overnight interest-bearing deposits | 0 | 0 |
Investment in available-for-sale securities, at fair value | 0 | 0 |
Loans, net | 854,775 | 854,062 |
Investment in FHLB stock | 0 | 0 |
Mortgage servicing rights | 2,847 | 2,762 |
Cash surrender value - life insurance | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Assets, Total | 857,622 | 856,824 |
Deposits: | ||
Non-interest bearing demand | 0 | 0 |
Savings, interest checking and money market | 0 | 0 |
Time deposits | 298,323 | 321,041 |
Federal funds purchased and securities sold under agreements to repurchase | 0 | 0 |
Subordinated notes | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Accrued interest payable | 0 | 0 |
Liabilities, Fair Value Disclosure, Total | 298,323 | 321,041 |
Carrying Amount | ||
Assets: | ||
Cash and due from banks | 20,484 | 22,364 |
Federal funds sold and overnight interest-bearing deposits | 7,893 | 20,445 |
Investment in available-for-sale securities, at fair value | 235,054 | 198,998 |
Loans, net | 856,476 | 852,114 |
Investment in FHLB stock | 3,390 | 3,075 |
Mortgage servicing rights | 2,847 | 2,762 |
Cash surrender value - life insurance | 2,348 | 2,284 |
Accrued interest receivable | 4,853 | 4,816 |
Assets, Total | 1,133,345 | 1,106,858 |
Deposits: | ||
Non-interest bearing demand | 208,035 | 207,700 |
Savings, interest checking and money market | 441,080 | 442,059 |
Time deposits | 298,082 | 319,755 |
Federal funds purchased and securities sold under agreements to repurchase | 56,834 | 17,970 |
Subordinated notes | 49,486 | 49,486 |
Federal Home Loan Bank advances | 50,000 | 43,000 |
Accrued interest payable | 382 | 373 |
Liabilities, Fair Value Disclosure, Total | 1,103,899 | 1,080,343 |
Fair Value | ||
Assets: | ||
Cash and due from banks | 20,484 | 22,364 |
Federal funds sold and overnight interest-bearing deposits | 7,893 | 20,445 |
Investment in available-for-sale securities, at fair value | 235,054 | 198,998 |
Loans, net | 854,775 | 854,062 |
Investment in FHLB stock | 3,390 | 3,075 |
Mortgage servicing rights | 2,847 | 2,762 |
Cash surrender value - life insurance | 2,348 | 2,284 |
Accrued interest receivable | 4,853 | 4,816 |
Assets, Total | 1,131,644 | 1,108,806 |
Deposits: | ||
Non-interest bearing demand | 208,035 | 207,700 |
Savings, interest checking and money market | 441,080 | 442,059 |
Time deposits | 298,323 | 321,041 |
Federal funds purchased and securities sold under agreements to repurchase | 56,834 | 17,970 |
Subordinated notes | 40,821 | 33,371 |
Federal Home Loan Bank advances | 52,340 | 44,396 |
Accrued interest payable | 382 | 373 |
Liabilities, Fair Value Disclosure, Total | $ 1,097,815 | $ 1,066,910 |
Repurchase Reserve Liability (D
Repurchase Reserve Liability (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Repurchase Reserve Liability [Abstract] | |||
Balance at beginning of year | $ 160 | $ 160 | $ 0 |
Provision for repurchase liability | 40 | 0 | 279 |
Reimbursement of expenses | (40) | 0 | (119) |
Balance at end of year | $ 160 | $ 160 | $ 160 |
Repurchase Reserve Liability113
Repurchase Reserve Liability (Detail Textuals) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015USD ($)Loans | Dec. 31, 2014USD ($)Loans | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | |
Repurchase Reserve Liability [Abstract] | ||||
Repurchase reserve liability | $ 160 | $ 160 | $ 160 | $ 0 |
Number of loans sold to the secondary market | Loans | 3,024 | 3,057 | ||
Balance of loans sold to the secondary market | $ 312,100 | $ 313,900 |
Commitments and Contingencie114
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Contractual amount of off-balance-sheet financial instruments | ||
Total contractual amount of off-balance-sheet financial instruments | $ 165,947 | $ 138,398 |
Commitments to extend credit | ||
Contractual amount of off-balance-sheet financial instruments | ||
Total contractual amount of off-balance-sheet financial instruments | 161,306 | 135,137 |
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 | 3,175 | 1,640 |
Standby letters of credit | ||
Contractual amount of off-balance-sheet financial instruments | ||
Total contractual amount of off-balance-sheet financial instruments | $ 1,466 | $ 1,621 |
Commitments and Contingencie115
Commitments and Contingencies (Detail Textuals) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Contractual amount of off-balance-sheet financial instruments | |
Amounts accrued for estimated losses for the financial instruments | $ 0 |
Minimum | |
Contractual amount of off-balance-sheet financial instruments | |
Remaining term of standby letters of credit | 1 year |
Maximum | |
Contractual amount of off-balance-sheet financial instruments | |
Remaining term of standby letters of credit | 5 years |
Condensed Financial Informat116
Condensed Financial Information of the Parent Company Only (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Assets | ||||
Cash and due from bank subsidiaries | $ 20,484 | $ 22,364 | ||
Deferred tax asset | 10,087 | 10,598 | ||
Other assets | 10,548 | 11,843 | ||
Total assets | 1,200,921 | 1,169,731 | ||
Liabilities and Stockholders' Equity | ||||
Subordinated notes | 49,486 | 49,486 | ||
Other liabilities | 9,736 | 8,820 | ||
Stockholders' equity | 87,286 | 80,568 | $ 74,380 | $ 92,220 |
Total liabilities and stockholders' equity | 1,200,921 | 1,169,731 | ||
HAWTHORN BANCSHARES, INC. | ||||
Assets | ||||
Cash and due from bank subsidiaries | 4,971 | 1,024 | ||
Investment in equity securities | 1,486 | 1,486 | ||
Investment in subsidiaries | 134,099 | 130,728 | ||
Deferred tax asset | 2,116 | 1,989 | ||
Other assets | 7 | 308 | ||
Total assets | 142,679 | 135,535 | ||
Liabilities and Stockholders' Equity | ||||
Subordinated notes | 49,486 | 49,486 | ||
Other liabilities | 5,907 | 5,481 | ||
Stockholders' equity | 87,286 | 80,568 | ||
Total liabilities and stockholders' equity | $ 142,679 | $ 135,535 |
Condensed Financial Informat117
Condensed Financial Information of the Parent Company Only (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income | |||||||||||
Interest and dividends received from subsidiaries | $ 11,515 | $ 11,829 | $ 11,214 | $ 11,198 | $ 11,214 | $ 11,196 | $ 11,125 | $ 10,963 | $ 45,756 | $ 44,498 | $ 45,665 |
Expenses | |||||||||||
Interest on subordinated notes | 1,293 | 1,264 | 1,284 | ||||||||
Other | 3,507 | 3,116 | 3,507 | ||||||||
Income tax benefit | $ (1,083) | $ (1,377) | $ (1,001) | $ (1,119) | $ (1,074) | $ (802) | $ (1,121) | $ (1,045) | (4,580) | (4,042) | (2,422) |
Net income | 8,599 | 7,654 | 4,974 | ||||||||
HAWTHORN BANCSHARES, INC. | |||||||||||
Income | |||||||||||
Interest and dividends received from subsidiaries | 1,039 | 2,538 | 15,039 | ||||||||
Total income | 1,039 | 2,538 | 15,039 | ||||||||
Expenses | |||||||||||
Interest on subordinated notes | 1,293 | 1,264 | 1,284 | ||||||||
Other | 2,138 | 1,730 | 1,778 | ||||||||
Total expenses | 3,431 | 2,994 | 3,062 | ||||||||
Income before income tax benefit and equity in undistributed income of subsidiaries | (2,392) | (456) | 11,977 | ||||||||
Income tax benefit | 1,065 | 1,100 | 1,126 | ||||||||
Equity in undistributed income (losses) of subsidiaries | 9,926 | 7,010 | (8,129) | ||||||||
Net income | $ 8,599 | $ 7,654 | $ 4,974 |
Condensed Financial Informat118
Condensed Financial Information of the Parent Company Only (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net income | $ 8,599 | $ 7,654 | $ 4,974 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 1,810 | 1,758 | 1,605 |
Stock based compensation expense | 10 | 20 | 19 |
Other, net | (252) | 2,355 | (444) |
Net cash (used) provided by operating activities | 13,342 | 13,554 | 20,243 |
Cash flows from investing activities: | |||
Net cash provided by investing activities | (50,230) | (17,096) | (9,548) |
Cash flows from financing activities: | |||
Redemption of 18,255 shares of preferred stock | 0 | 0 | (18,255) |
Cash dividends paid - preferred stock | 0 | 0 | (456) |
Cash dividends paid - common stock | (1,058) | (1,017) | (978) |
Purchase of treasury stock | (33) | 0 | 0 |
Warrant redemption | 0 | 0 | (540) |
Net cash used in financing activities | 22,456 | 17,912 | (41,133) |
Net increase (decrease) in cash and due from banks | (14,432) | 14,370 | (30,438) |
Cash and cash equivalents, beginning of year | 42,809 | 28,439 | 58,877 |
Cash and cash equivalents, end of year | 28,377 | 42,809 | 28,439 |
HAWTHORN BANCSHARES, INC. | |||
Cash flows from operating activities: | |||
Net income | 8,599 | 7,654 | 4,974 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 0 | 0 | 1 |
Equity in undistributed (income) losses of subsidiaries | (9,926) | (7,010) | 8,129 |
Stock based compensation expense | 10 | 20 | 19 |
(Increase) decrease in deferred tax asset | (127) | (1,415) | 1,325 |
Other, net | 732 | 1,942 | (182) |
Net cash (used) provided by operating activities | (712) | 1,191 | 14,266 |
Cash flows from investing activities: | |||
Investment in subsidiary | 5,750 | 400 | 4,550 |
Net cash provided by investing activities | 5,750 | 400 | 4,550 |
Cash flows from financing activities: | |||
Redemption of 18,255 shares of preferred stock | 0 | 0 | (18,255) |
Cash dividends paid - preferred stock | 0 | 0 | (456) |
Cash dividends paid - common stock | (1,058) | (1,017) | (978) |
Purchase of treasury stock | (33) | 0 | 0 |
Warrant redemption | 0 | 0 | (540) |
Net cash used in financing activities | (1,091) | (1,017) | (20,229) |
Net increase (decrease) in cash and due from banks | 3,947 | 574 | (1,413) |
Cash and cash equivalents, beginning of year | 1,024 | 450 | 1,863 |
Cash and cash equivalents, end of year | $ 4,971 | $ 1,024 | $ 450 |
Quarterly Financial Informat119
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information (Unaudited) | |||||||||||
Interest income | $ 11,515 | $ 11,829 | $ 11,214 | $ 11,198 | $ 11,214 | $ 11,196 | $ 11,125 | $ 10,963 | $ 45,756 | $ 44,498 | $ 45,665 |
Interest expense | 1,278 | 1,271 | 1,230 | 1,220 | 1,217 | 1,240 | 1,278 | 1,309 | 4,999 | 5,044 | 6,342 |
Net interest income | 10,237 | 10,558 | 9,984 | 9,978 | 9,997 | 9,956 | 9,847 | 9,654 | 40,757 | 39,454 | 39,323 |
Provision for loan losses | 0 | 0 | 250 | 0 | 0 | 0 | 0 | 0 | 250 | 0 | 2,030 |
Noninterest income | 2,381 | 2,337 | 2,461 | 1,987 | 2,168 | 2,313 | 2,183 | 2,085 | 9,166 | 8,749 | 10,866 |
Noninterest expense | 9,541 | 8,978 | 9,267 | 8,708 | 9,090 | 9,899 | 8,811 | 8,707 | 36,494 | 36,507 | 40,763 |
Income tax (benefit) expense | 1,083 | 1,377 | 1,001 | 1,119 | 1,074 | 802 | 1,121 | 1,045 | 4,580 | 4,042 | 2,422 |
Net income available to common shareholders | $ 1,994 | $ 2,540 | $ 1,927 | $ 2,138 | $ 2,001 | $ 1,568 | $ 2,098 | $ 1,987 | $ 8,599 | $ 7,654 | $ 4,359 |
Net income (loss) per share: | |||||||||||
Basic (loss) earnings per share (in dollars per share) | $ 0.37 | $ 0.47 | $ 0.35 | $ 0.39 | $ 0.37 | $ 0.29 | $ 0.39 | $ 0.36 | $ 1.58 | $ 1.41 | $ 0.80 |
Diluted (loss) earnings per share (in dollars per share) | $ 0.37 | $ 0.47 | $ 0.35 | $ 0.39 | $ 0.37 | $ 0.29 | $ 0.39 | $ 0.36 | $ 1.58 | $ 1.41 | $ 0.80 |