Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 01, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | WELLS FINANCIAL CORP | ||
Entity Central Index Key | 934,739 | ||
Trading Symbol | wefp | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | Yes | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding | 794,253 | ||
Entity Public Float | $ 17.9 | ||
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 cash equivalents, including interest-bearing accounts, 2015, $6,078; 2014, $7,411 | $ 12,059 | $ 14,373 |
Certificates of deposit, at cost | 9,543 | 4,181 |
Federal funds sold | 9,100 | 2,000 |
Securities available for sale | 34,450 | 34,177 |
Federal Home Loan Bank stock, at cost | 1,986 | 2,079 |
Loans held for sale | 1,337 | 1,707 |
Loans receivable, net of allowance for loan loss of $1,988 in 2015; $2,158 in 2014 | 197,595 | 182,050 |
Accrued interest receivable | 1,020 | 834 |
Premises and equipment, net | 3,368 | 3,172 |
Mortgage servicing rights, net | 1,863 | 1,886 |
Foreclosed real estate, net | 1,632 | 3,656 |
Other assets | 826 | 1,711 |
Total assets | 274,779 | 251,826 |
Liabilities | ||
Deposits | 239,950 | 221,972 |
Advances from borrowers for taxes and insurance | 2,646 | 2,630 |
Accrued interest payable | 12 | 17 |
Accrued expenses and other liabilities | 871 | 588 |
Total liabilities | $ 243,479 | $ 225,207 |
Commitments, Contingencies and Credit Risk (Notes 14 and 15) | ||
Mezzanine Equity | ||
Redeemable common stock held by ESOP, $0.10 par value, shares issued and outstanding, 91,459 at December 31, 2015; 95,602 at December 31, 2014 | $ 2,881 | $ 2,533 |
Stockholders' Equity | ||
Preferred stock, no par value; 500,000 shares authorized; none outstanding | ||
Common stock, $0.10 par value; 7,000,000 shares authorized; 2,174,777 shares issued at December 31, 2015 2,091,898 shares issued at December 31, 2014 | $ 217 | $ 209 |
Additional paid-in capital | 18,123 | 17,110 |
Retained earnings, substantially restricted | 39,542 | 35,552 |
Accumulated other comprehensive income | 66 | 93 |
Unallocated Employee Stock Ownership Plan shares | (146) | |
Treasury stock, 2015, 1,463,388 shares; 2014, 1,445,248 shares | (29,383) | (28,878) |
Total stockholders' equity | 28,419 | 24,086 |
Total liabilities, mezzanine equity and stockholders' equity | $ 274,779 | $ 251,826 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Interest-bearing accounts (in dollars) | $ 6,078 | $ 7,411 |
Allowance for loan loss (in dollars) | $ 1,988 | $ 2,158 |
Redeemable common stock held by ESOP (in dollar per share) | $ 0.10 | $ 0.10 |
Redeemable common stock held by ESOP, shares issued | 91,459 | 95,602 |
Redeemable common stock held by ESOP, shares outstanding | 91,459 | 95,602 |
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 7,000,000 | 7,000,000 |
Common stock, shares issued | 2,174,777 | 2,091,898 |
Treasury stock, shares | 1,463,388 | 1,445,248 |
Consolidated Statements of Inco
Consolidated Statements of Income (unaudited) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Interest income: | ||
Loans receivable | $ 8,836 | $ 8,088 |
Investment securities and interest-bearing deposits | 712 | 730 |
Total interest income | 9,548 | 8,818 |
Interest expense: | ||
Deposits | 450 | 597 |
Total interest expense | 450 | 597 |
Net interest income | 9,098 | 8,221 |
Provision for loan losses | 70 | 520 |
Net interest income after provision for loan losses | 9,028 | 7,701 |
Noninterest income: | ||
Gain on sale of loans held for sale | 1,068 | 803 |
Loan servicing fees | 848 | 768 |
Insurance commissions | 685 | 641 |
Fees and service charges | 462 | 483 |
Bargain purchase gain | 2,848 | |
Other | 885 | 874 |
Total noninterest income | 6,796 | 3,569 |
Noninterest expenses: | ||
Compensation and benefits | 4,770 | 4,649 |
Occupancy | 757 | 764 |
Data processing | 965 | 962 |
Advertising | 287 | 249 |
Amortization of mortgage servicing rights | 351 | 324 |
Other real estate owned | 481 | 499 |
Other | 2,075 | 1,897 |
Total noninterest expenses | 9,686 | 9,344 |
Income before income taxes | 6,138 | 1,926 |
Income tax expense | 1,244 | 623 |
Net income | $ 4,894 | $ 1,303 |
Earnings per share: | ||
Basic (in dollars per share) | $ 6.35 | $ 1.72 |
Diluted (in dollars per share) | $ 6.35 | $ 1.72 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 4,894 | $ 1,303 |
Other comprehensive income (loss): | ||
Unrealized gain (loss) on securities, net of related taxes | (27) | 357 |
Comprehensive income | $ 4,867 | $ 1,660 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity and Mezzanine Equity (Unaudited) - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Unallocated ESOP Plan Shares Stock Ownership Shares | Treasury Stock | Total | Mezzanine equity Redeemable Common Stock |
Balance at Dec. 31, 2013 | $ 209 | $ 17,096 | $ 34,893 | $ (264) | $ (28,193) | $ 23,741 | $ 2,342 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 1,303 | 1,303 | ||||||
Other comprehensive income, net of related taxes | 357 | 357 | ||||||
Cash dividends declared ($0.72 and $0.60 per share for December 30, 2015 and 2014 respectively) | (453) | (453) | ||||||
Stock-based compensation | 14 | 18 | 32 | |||||
Treasury stock purchases, 6,666 shares for 2014 and Treasury stock purchases, 18,140 shares, including 10,442 of redeemable common shares for 2015 | (703) | (703) | ||||||
Change in fair value related to redeemable common stock | (191) | (191) | 191 | |||||
Balance at Dec. 31, 2014 | 209 | 17,110 | 35,552 | 93 | (28,878) | 24,086 | 2,533 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 4,894 | 4,894 | ||||||
Issuance of 78,736 shares of common stock including 6,299 shares acquired by the ESOP, net of issuance costs | 8 | 999 | $ (172) | 835 | ||||
Other comprehensive income, net of related taxes | (27) | (27) | ||||||
Cash dividends declared ($0.72 and $0.60 per share for December 30, 2015 and 2014 respectively) | (556) | (556) | ||||||
Stock-based compensation | 14 | 26 | 40 | |||||
Treasury stock purchases, 6,666 shares for 2014 and Treasury stock purchases, 18,140 shares, including 10,442 of redeemable common shares for 2015 | 267 | (505) | (238) | (267) | ||||
Change in fair value related to redeemable common stock | (615) | (615) | 615 | |||||
Balance at Dec. 31, 2015 | $ 217 | $ 18,123 | $ 39,542 | $ 66 | $ (146) | $ (29,383) | $ 28,419 | $ 2,881 |
Consolidated Statements of Sto7
Consolidated Statements of Stockholders' Equity and Mezzanine Equity (Unaudited) (Parentheticals) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends (in dollars per share) | $ 0.72 | $ 0.60 |
Treasury stock purchases (in shares) | 18,140 | 6,666 |
Redeemable common shares acquired included in treasury stock (in shares) | 10,442 | |
Issuance of common stock (in shares) | 78,736 | |
Number of shares acquired by ESOP (in shares) | 6,299 | 7,570 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Flows From Operating Activities | ||
Net income | $ 4,894 | $ 1,303 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 70 | 520 |
Gain on sale of loans | (1,068) | (803) |
Originations of loans held for sale | (33,266) | (25,332) |
Proceeds from the sale of loans held for sale | 34,704 | 26,380 |
Net change in mortgage servicing rights | 23 | 66 |
Gain on sales of foreclosed real estate, net | (4) | (40) |
Deferred income taxes | 253 | (196) |
Depreciation expense | 195 | 182 |
Amortization of net deferred loan origination fees | (81) | (84) |
Amortization of securities premiums | 257 | 210 |
Impairment of foreclosed real estate | 241 | 302 |
Stock-based compensation expense | 40 | 32 |
Bargain purchase gain | (2,848) | |
Changes in assets and liabilities: | ||
Accrued interest receivable | (77) | (30) |
Other assets | 608 | (591) |
Accrued expenses and other liabilities | (27) | (129) |
Net cash provided by operating activities | 3,914 | 1,790 |
Cash Flows From Investing Activities | ||
Net decrease (increase) in loans | 1,863 | (11,334) |
Loans purchased - Minnesota Lake | (6,247) | |
Net decrease (increase) in certificates of deposit | 250 | (486) |
Net (increase) decrease in federal funds sold | (7,100) | 3,000 |
Purchase of Federal Home Loan Bank stock | (132) | (215) |
Proceeds from sale of Federal Home Loan Bank stock | 258 | 157 |
Cash flows from available-for-sale securities | 375 | 7,787 |
Net cash received in conversion/merger | 1,337 | |
Purchase of premises and equipment | (25) | (314) |
Investment in foreclosed real estate | (143) | |
Proceeds from sales of foreclosed real estate | 2,049 | 1,291 |
Net cash used in investing activities | (1,125) | (6,504) |
Cash Flows From Financing Activities | ||
Net decrease in deposits | (5,065) | (4,826) |
Deposits assumed - Minnesota Lake | 12,428 | |
Net increase in advances from borrowers for taxes and insurance | 16 | 16 |
Issuance of 78,736 shares of common stock, net of issuance costs and ESOP shares | 1,007 | |
Dividends paid | (556) | (453) |
Purchase of treasury stock | (505) | (703) |
Net cash (used in) provided by financing activities | (5,103) | 6,462 |
Net (decrease) increase in cash and cash equivalents | (2,314) | 1,748 |
Cash and Cash Equivalents | ||
Beginning | 14,373 | 12,625 |
Ending | $ 12,059 | $ 14,373 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1. Summary of Significant Accounting Policies Nature of operations: Principles of consolidation: Basis of financial statement presentation: Use of estimates: Cash and cash equivalents: Federal Home Loan Bank stock: Securities available for sale: Securities available for sale are carried at fair value. Unrealized gains or losses, net of the related deferred tax effect, are reported as a net amount in accumulated other comprehensive income (loss). Amortization of premiums and accretion of discounts, computed by the interest method over their contractual lives, are recognized in interest income. Realized gains or losses, determined on the basis of the cost of specific securities sold, are included in earnings. Declines in the fair value of individual securities below their amortized cost that are determined to be other than temporary result in write-downs of the individual securities to their fair value, with the resulting write-downs included in current earnings as realized losses. The Company evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. The Company employs a systematic methodology that considers available evidence in evaluating potential impairment of its investments. The assessment of whether such impairment has occurred is based on management’s case-by-case evaluation of the underlying reasons for the decline in fair value. Once a decline in fair value is determined to be other than temporary, an impairment charge is recorded in investment income, and a new cost basis in the investment is established. Securities with unrealized losses that the Company deems to be other than temporary are recognized as realized losses. The assessment of whether such impairment has occurred is based on management’s case-by-case evaluation of the underlying reasons for the decline in fair value. As part of their assessment process, management determines whether (a) they do not have the intent to sell a debt security prior to recovery and (b) it is more likely than not that they will not have to sell the debt security prior to recovery, in which case the security would not be considered other than temporarily impaired, unless there is a credit loss. When management does not intend to sell the security, and it is more likely than not they will not have to sell the security before recovery of its cost basis, the Company will recognize the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. Loans held for sale: Interest rate lock commitments on mortgage loans to be funded and sold are valued at fair value and are included in other assets or liabilities, if material. Loans receivable: Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at the amount of unpaid principal, reduced by an allowance for loan losses, unaccreted discount and net deferred origination fees. Interest is accrued daily on the outstanding balances. Interest on loans is generally recognized over the terms of the loans using the simple-interest method on principal amounts outstanding. The Company determines a loan to be delinquent when payments have not been made according to contractual terms, typically evidenced by nonpayment of a monthly installment by the due date. Accrual of interest is discontinued for loans at the time the loan is 90 days delinquent, unless the credit is well-secured and in the process of collection. All interest accrued but not collected for loans that are placed on nonaccrual status is reversed against interest income. Accrual of interest is generally resumed when the borrower has demonstrated the ability to make all periodic interest and principal payments. Allowance for loan losses: The allowance is an amount that management believes will be adequate to absorb estimated losses relating to specifically identified loans, as well as probable credit losses inherent in the balance of the loan portfolio, based on an evaluation of the collectability of existing loans and prior loss experience. This evaluation also takes into consideration such factors as changes in the nature and volume of the loan portfolio, the value of underlying collateral, overall portfolio quality, review of specific problem loans, and current economic conditions that may affect the borrower’s ability to pay. While management uses the best information available to make its evaluation, future adjustments to the allowance may be necessary if there are significant changes in economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance for loan losses and may require the Bank to make additions to the allowance based on their judgment about information available to them at the time of their examinations. The allowance consists of specific and general components. The Company maintains a loan loss reserve for all commercial loans and agricultural operating loans in the portfolio using a risk-rating system. The calculated allowance is evaluated against the historical loss default rate for each loan type above (net of recoveries) to determine an appropriate level of allowance by loan type. Homogeneous loans with similar risk and loss characteristics are also assessed for probable losses. These loan pools include consumer, residential real estate, agricultural real estate, home equity, and vehicle loans. Historical loss default rates are multiplied by the total of each portfolio segment to determine an appropriate level of allowance by segment. The general allowance for loan losses also includes estimated losses resulting from macroeconomic factors and adjustments to account for imprecision of the loan loss model. Macroeconomic factors adjust the allowance for loan losses upward or downward based on the current point in the economic cycle and are applied to the loan loss model through a separate allowance element. The Company reviews the macroeconomic factors in order to conclude they are adequate based on current economic conditions. The specific component of the allowance for loan losses relates to loans that are considered to be impaired. A loan is impaired when it is probable, based on current information and events, the Company will be unable to collect all contractual principal and interest payments due in accordance with the terms of the loan agreement. Impaired loans are measured on an individual basis based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, as a practical expedient, at the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. The Company obtains external appraisals on real estate–related impaired loans. Other valuation techniques are used as well, including internal valuations, comparable property analyses, and contractual sales information. The Company may further discount appraisal values based on their age and the relationship to the listed comparables. The amount of impairment, if any, and any subsequent changes are included in the provision for loan losses. Accrual of interest on impaired loans is discontinued when management believes the borrower’s financial condition is such that collection of interest is doubtful. Impaired loans also include loans that have been renegotiated in a troubled debt restructuring. Cash collections on impaired loans are generally credited to the loan balance, and no interest income is recognized on those loans until the principal balance has been determined to be collectible. Troubled debt restructurings: Loan origination fees and related costs: Loan servicing: Mortgage servicing rights are subject to change based primarily on changes in the mix of loans, interest rates, prepayment speeds, or default rates from the estimates used in the valuation of the mortgage servicing rights. Such changes may have a material effect on the amortization and valuation of mortgage servicing rights. Although management believes that the assumptions used to evaluate the mortgage servicing rights for impairment are reasonable, future adjustment may be necessary if future economic conditions differ substantially from the economic assumptions used to determine the value of the mortgage servicing rights. Mortgage servicing rights are periodically evaluated for impairment based on the fair value of those rights. Fair values are estimated using discounted cash flows based upon estimated prepayment speeds, ancillary income received from loan servicing, and current interest rates. For purposes of measuring impairment, the rights must be stratified by one or more predominant risk characteristics of the underlying loans. The Company stratifies its capitalized mortgage servicing rights based on interest rates and the term of the underlying loans. The amount of impairment recognized is the amount, if any, by which the amortized cost of the rights for each stratum exceeds their fair value. Foreclosed real estate: Transfers of financial assets: Core deposit intangible assets: Advertising: Premises and equipment: Comprehensive income: Income taxes: Earnings per share: Employee stock plans: Fair value of financial instruments: Cash and cash equivalents: Certificates of deposit: Federal funds sold: Securities available for sale: Federal Home Loan Bank stock: Loans held for sale: Loans and accrued interest receivable: Mortgage servicing rights: Deposits and other liabilities: Borrowed funds: Off-balance-sheet instruments: Derivatives—rate-lock commitments: The forward loan sale agreement also meets the definition of a derivative instrument. Any change in the fair value of the loan commitment after the borrower locks in the interest rate is substantially offset by the corresponding change in the fair value of the forward loan sale agreement related to such loan. The period from the time the borrower locks in the interest rate to the time the Company funds the loan and sells it to FHLMC is generally 60 days. The fair value of each instrument will rise or fall in response to changes in market interest rates subsequent to the dates the interest rate locks and forward loan sale agreements are entered into. In the event that interest rates rise after the Company enters into an interest rate lock, the fair value of the loan commitment will decline. However, the fair value of the forward loan sale agreement related to such loan commitment should increase by substantially the same amount, effectively eliminating the Company’s interest rate and price risk. At December 31, 2015, the Company had $2,142 of loan commitments outstanding related to loans being originated for sale, all of which were subject to interest rate locks and forward loan sale agreements as described above. The fair values of outstanding interest rate-lock commitments and forward sale commitments were considered immaterial to the Company’s consolidated financial statements as of December 31, 2015 and 2014, and therefore, are not recognized in the consolidated financial statements and are not included in the disclosures in Note 18. Fair value measurements: Recent accounting pronouncements: In January 2014, the Financial Accounting Standards Board (FASB) issued ASU 2014-04, Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. ASU 2014-04 clarifies that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (a) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (b) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the standard requires interim and annual disclosure of both (a) the amount of foreclosed residential real estate property held by the creditor and (b) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. ASU 2014-04 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. ASU 2014-04 permits either a modified retrospective transition method or a prospective transition method and was effective for the Company as of the beginning of the 2015 fiscal year. The adoption of this guidance did not have a material effect on the Company’s consolidated financial statements. In August 2014, the FASB issued ASU 2014-14, Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure, which requires, if certain conditions are met, an entity to derecognize a mortgage loan with a government guarantee upon foreclosure and to recognize a separate other receivable. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. This ASU will be effective for the Company for annual periods ending after December 15, 2015, using the same transition method elected under ASU 2014-04. Early adoption is permitted. The adoption of this ASU is not expected to have a material impact on the Company’s consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue Recognition – Revenue from Contracts with Customers (Topic 606). In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments In January 2016, the FASB issued ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognitions and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01 included the following changes: require equity investments to be measured at fair value with changes in fair value recognized in net income, simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities, eliminate the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements, and clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. This ASU will be effective for the Company for annual periods ending after December 15, 2018. The adoption of this ASU is not expected to have a material impact on the Company’s consolidated financial statements. Segment reporting: |
Certificates of Deposit
Certificates of Deposit | 12 Months Ended |
Dec. 31, 2015 | |
Certificates Of Deposit [Abstract] | |
Certificates of Deposit | Note 2. Certificates of Deposit Certificates of deposit with a carrying value of $9,543 and $4,181 at December 31, 2015, and 2014, respectively, had weighted-average yields of 1.20% and 0.41% at December 31, 2015, and 2014, respectively and weighted average contractual maturities of 1.6 and 0.5 years respectively. |
Securities Available for Sale
Securities Available for Sale | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities Available for Sale | Note 3. Securities Available for Sale December 31, 2015 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Residential mortgage-backed agencies $ 20,290 $ 35 $ (183 ) $ 20,142 Small business administration commercial pools 2,572 9 (7 ) 2,574 Obligations of state and political subdivisions 11,442 212 (12 ) 11,642 Government-sponsored enterprise equity 40 52 - 92 $ 34,344 $ 308 $ (202 ) $ 34,450 December 31, 2014 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Residential mortgage-backed agencies $ 22,676 $ 60 $ (191 ) $ 22,545 Small business administration commercial pools 1,835 6 (9 ) 1,832 Obligations of state and political subdivisions 9,474 250 (26 ) 9,698 Government-sponsored enterprise equity 40 62 - 102 $ 34,025 $ 378 $ (226 ) $ 34,177 Contractual maturities: December 31, 2015 Amortized Fair Value Due in one year or less $ 1,620 $ 1,622 Due in one to five years 4,143 4,175 Due after five through 10 years 4,177 4,295 Due after 10 years 1,502 1,550 11,442 11,642 Residential mortgage-backed agencies 20,291 20,142 SBA commercial pools 2,572 2,574 Government-sponsored enterprise equity 40 92 $ 34,345 $ 34,450 Pledged securities: Securities with a carrying value of $22,127 and $20,961 at December 31, 2015 and 2014, respectively, were pledged to secure borrowed funds and for other purposes as required or permitted by law. Changes in other comprehensive income (loss) — unrealized gains on securities available for sale: Years Ended December 31 2015 2014 Balance, beginning $ 93 $ (264 ) Unrealized gains (losses) during the year (46 ) 605 Deferred tax effect relating to unrealized gains (losses) 19 (248 ) Balance, ending $ 66 $ 93 Temporarily impaired securities: December 31, 2015 Continuous Unrealized Continuous Unrealized Losses Existing Losses Existing 12 Months or Less Greater Than 12 Total Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss Residential mortgage- backed agencies $ 7,975 $ 76 $ 6,075 $ 107 $ 14,050 $ 183 SBA pools 1,126 7 - - 1,126 7 Obligations of states and political subdivisions 2,759 4 925 8 3,684 12 $ 11,860 $ 87 $ 7,000 $ 115 $ 18,860 $ 202 December 31, 2014 Continuous Unrealized Continuous Unrealized Losses Existing Losses Existing 12 Months or Less Greater Than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss Residential mortgage- backed agencies $ 5,679 $ 20 $ 10,566 $ 171 $ 16,245 $ 191 SBA pools - - 1,250 9 1,250 9 Obligations of states and political subdivisions 1,495 6 1,180 20 2,675 26 $ 7,174 $ 26 $ 12,996 $ 200 $ 20,170 $ 226 There were 37 securities in unrealized loss positions as of December 31, 2015 and 2014. Unrealized losses are deemed to be temporary. Most of these underlying securities consist of mortgage-backed securities. Market fluctuations are caused primarily by changes in interest rates and prepayments of underlying mortgages. Volatility in economic conditions influences the prices of these securities. Gross realized gains and losses, and proceeds on the sale of available-for-sale securities during the years ended December 31, 2015 and 2014 were not significant. |
Loans Receivable and Loans Held
Loans Receivable and Loans Held for Sale | 12 Months Ended |
Dec. 31, 2015 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans Receivable and Loans Held for Sale | Note 4. Loans Receivable and Loans Held for Sale Composition of loans receivable: December 31 2015 2014 Residential real estate $ 60,161 $ 56,674 Commercial real estate 32,935 30,653 Agricultural real estate 39,271 38,128 Commercial construction real estate 2,264 4,035 Residential construction real estate 1,370 940 Home equity, home improvement and second mortgages 32,645 32,741 Commercial operating and term 9,322 5,718 Agricultural operating and term 12,867 7,714 Vehicle 2,622 1,671 Consumer 6,328 6,279 Total loans 199,785 184,553 Net deferred loan origination fees (202 ) (345 ) Allowance for loan loss (1,988 ) (2,158 ) Loans receivable, net $ 197,595 $ 182,050 Loans are made to individuals as well as commercial and tax-exempt entities. Specific loan terms vary as to interest rate, repayment and collateral requirements based on the type of loan requested and the creditworthiness of the prospective borrower. Credit risk tends to be geographically concentrated in that a majority of the loan customers are located in the markets serviced by the Company. The Company’s extension of credit is governed by the individual loan policies that were established to control the quality of the Company’s loans. These policies and procedures are reviewed and approved by the Board of Directors on a regular basis. Residential real estate loans: Commercial real estate loans: Agricultural real estate loans: Commercial construction real estate loans: Residential construction real estate loans: Commercial operating and term loans: Agricultural operating and term loans: Consumer loans, including home equity, home improvement and second mortgages, and vehicle loans: Loans receivable: December 31, 2015 Loans Past 30–59 Days 60–89 Days Due 90 Days Total Current Past Due Past Due or More Past Due Total Residential real estate $ 57,608 $ 857 $ 194 $ 1,502 $ 2,553 $ 60,161 Commercial real estate 32,935 - - - - 32,935 Agricultural real estate 38,884 - - 387 387 39,271 Commercial construction real estate 2,264 - - - - 2,264 Residential construction real estate 1,370 - - - - 1,370 Home equity, home improvement and second mortgages 31,892 597 79 77 753 32,645 Commercial operating and term 9,061 154 36 71 261 9,322 Agricultural operating and term 12,860 7 - - 7 12,867 Vehicle 2,591 12 3 16 31 2,622 Consumer 6,304 16 8 24 6,328 Total loans $ 195,769 $ 1,643 $ 312 $ 2,061 $ 4,016 $ 199,785 Nonperforming loans $ - $ - $ - $ 2,061 $ 2,061 $ 2,061 December 31, 2014 Loans Past 30–59 Days 60–89 Days Due 90 Days Total Current Past Due Past Due or More Past Due Total Residential real estate $ 54,699 $ 781 $ 507 $ 687 $ 1,975 $ 56,674 Commercial real estate 30,653 - - - - 30,653 Agricultural real estate 37,843 285 - - 285 38,128 Commercial construction real estate 4,035 - - - - 4,035 Residential construction real estate 940 - - - - 940 and second mortgages 32,291 193 2 255 450 32,741 Commercial operating and term 5,569 82 - 67 149 5,718 Agricultural operating and term 7,674 40 - - 40 7,714 Vehicle 1,661 8 1 1 10 1,671 Consumer 6,243 26 10 - 36 6,279 Total loans $ 181,608 $ 1,415 $ 520 $ 1,010 $ 2,945 $ 184,553 Nonperforming loans $ - $ - $ - $ 1,010 $ 1,010 $ 1,010 Recorded investment in nonaccrual loans and loans past due 90 days or more and still accruing by class of loans as of December 31, 2015 and 2014, were as follows: December 31, 2015 Loans Past Due 90 Days or More Nonaccrual and Still Residential real estate $ 1,502 $ - Agricultural real estate 386 - Home equity, home improvement and second mortgages 78 - Commercial operating and term 71 - Vehicle 16 - Consumer 8 - Total $ 2,061 $ - December 31, 2014 Loans Past Due 90 Days or More Nonaccrual and Still Residential real estate $ 687 $ - Home equity, home improvement and second mortgages 255 - Commercial operating and term 67 - Vehicle 1 - Total $ 1,010 $ - No interest income was recognized on nonaccrual loans for the years ended December 31, 2015 and 2014. The Company utilizes an internal asset classification system as a means of reporting problem and potential problem loans. Under the Company’s risk-rating system, the Company classifies problem and potential problem loans as “Special Mention,” “Substandard” and “Doubtful,” which correspond to risk ratings five, six and seven, respectively. Substandard loans include those characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Loans classified as Doubtful, or risk-rated seven, have all the weaknesses inherent in those classified as Substandard, with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Loans that do not currently expose the Company to sufficient risk to warrant classification in one of the aforementioned categories, but possess weaknesses that deserve management’s close attention, are deemed to be Special Mention, or risk-rated five. Risk ratings are updated any time the situation warrants. Loans not meeting the criteria above that are analyzed individually as part of the above-described process are considered to be pass-rated loans. Loans listed as not rated are included in groups of homogeneous loans with similar risk and loss characteristics. The following tables present the risk category of loans by class of loans based on the most recent analyses performed and the contractual aging as of December 31, 2015 and 2014: December 31, 2015 Special Pass Mention Substandard Doubtful Total Commercial real estate $ 29,952 $ 1,558 $ 1,425 $ - $ 32,935 Agricultural real estate 38,913 358 - - 39,271 Commercial construction real estate 2,264 - - - 2,264 Commercial operating and term 9,221 57 44 - 9,322 Agricultural operating and term 12,867 - - - 12,867 Total $ 93,217 $ 1,973 $ 1,469 $ - $ 96,659 December 31, 2014 Special Pass Mention Substandard Doubtful Total Commercial real estate $ 26,449 $ 3,556 $ 648 $ - $ 30,653 Agricultural real estate 38,128 - - - 38,128 Commercial construction real estate 4,035 - - - 4,035 Commercial operating and term 5,426 - 292 - 5,718 Agricultural operating and term 7,714 - - - 7,714 Total $ 81,752 $ 3,556 $ 940 $ - $ 86,248 For consumer, residential real estate, agricultural real estate, home equity, vehicle and residential construction loan classes, the Company collectively evaluates loans for impairment. The Company evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. Loans where credit quality and aging indicate potential weakness are placed on nonaccrual and are deemed to be nonperforming. Impaired loans also include loans modified in a troubled debt restructuring where concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a reduction in interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collections. The following tables present troubled debt restructurings by class of loans for the years ended December 31, 2015 and 2014: Year Ended December 31, 2015 Premodification Postmodification Number of Outstanding Outstanding Contracts Recorded Investment Recorded Investment Total debt restructuring: Residential real estate 3 $ 368 $ 368 Modified payment terms Year Ended December 31, 2014 Premodification Postmodification Number of Outstanding Outstanding Contracts Recorded Investment Recorded Investment Total debt restructuring: Residential real estate 1 $ 46 $ 46 Modified payment terms and interest rates There were no loans modified in a troubled debt restructuring that subsequently defaulted for the years ended December 31, 2015 and 2014. Loans individually evaluated for impairment by class of loans as of December 31, 2015 and 2014, are as follows: December 31, 2015 Unpaid Allowance for Average Interest Principal Recorded Loan Losses Recorded Income Balance Investment Allocated Investment Recognized With no related allowance recorded: Residential real estate $ 463 $ 463 $ - $ 491 $ 24 Commercial real estate 575 575 - 648 21 With an allowance recorded: Residential real estate 499 499 86 534 36 Commercial real estate 1,531 1,531 287 1,551 57 Home equity, home improvement and second mortgages 31 31 31 32 2 Commercial operating and term 54 54 27 67 3 Vehicle and Consumer 11 11 9 9 - Total $ 3,164 $ 3,164 $ 440 $ 3,332 $ 143 December 31, 2014 Unpaid Allowance for Average Interest Principal Recorded Loan Losses Recorded Income Balance Investment Allocated Investment Recognized With no related allowance recorded: Residential real estate $ 461 $ 461 $ - $ 505 $ 27 With an allowance recorded: Residential real estate 822 822 115 830 34 Commercial real estate 2,637 2,637 341 2,690 99 Home equity, home improvement and second mortgages 73 73 73 74 2 Commercial operating and term 63 63 32 - 2 Vehicle and Consumer 16 16 12 16 2 Total $ 4,072 $ 4,072 $ 573 $ 4,115 $ 166 Allowance for loan losses: Year Ended December 31, 2015 Balance, Balance, Beginning Charge-offs Recoveries Provision Ending Residential real estate $ 545 $ - $ - $ (88 ) $ 457 Commercial real estate 722 - - (163 ) 559 Agricultural real estate 155 - - 43 198 Commercial construction real estate 12 - - - 12 Residential construction real estate 13 - - (6 ) 7 Home equity, home improvement and second mortgages 431 (125 ) 22 66 394 Commercial operating and term 109 (159 ) - 251 201 Agricultural operating and term 31 - - 28 59 Vehicle 28 - 4 (6 ) 26 Consumer 112 (81 ) 99 (55 ) 75 Total $ 2,158 $ (365 ) $ 125 $ 70 $ 1,988 Year Ended December 31, 2014 Balance, Balance, Beginning Charge-offs Recoveries Provision Ending Residential real estate $ 433 $ (6 ) $ 11 $ 107 $ 545 Commercial real estate 624 - 7 91 722 Agricultural real estate 130 - - 25 155 Commercial construction real estate 2 - - 10 12 Residential construction real estate 11 - - 2 13 Home equity, home improvement and second mortgages 254 (183 ) 39 321 431 Commercial operating and term 87 (1 ) - 23 109 Agricultural operating and term 18 - - 13 31 Vehicle 30 - 3 (5 ) 28 Consumer 135 (28 ) 72 (67 ) 112 Total $ 1,724 $ (218 ) $ 132 $ 520 $ 2,158 The allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2015 and 2014, are as follows: December 31, 2015 Individually Collectively Evaluated Evaluated Impairment Impairment Total Allowance for loan losses: Residential real estate $ 86 $ 371 $ 457 Commercial real estate 287 272 559 Agricultural real estate - 198 198 Commercial construction real estate - 12 12 Residential construction real estate - 7 7 Home equity, home improvement/second mortgages 31 363 394 Commercial operating and term 27 174 201 Agricultural operating and term - 59 59 Vehicle 2 24 26 Consumer 7 68 75 Total $ 440 $ 1,548 $ 1,988 December 31, 2015 Individually Collectively Evaluated Evaluated Impairment Impairment Total Loans: Residential real estate $ 962 $ 59,199 $ 60,161 Commercial real estate 2,106 30,829 32,935 Agricultural real estate - 39,271 39,271 Commercial construction real estate - 2,264 2,264 Residential construction real estate - 1,370 1,370 Home equity, home improvement/second mortgages - 32,645 32,645 Commercial operating and term 31 9,291 9,322 Agricultural operating and term 54 12,813 12,867 Vehicle 2 2,620 2,622 Consumer 9 6,319 6,328 Total $ 3,164 $ 196,621 $ 199,785 December 31, 2014 Individually Collectively Evaluated Evaluated Impairment Impairment Total Allowance for loan losses: Residential real estate $ 115 $ 430 $ 545 Commercial real estate 341 381 722 Agricultural real estate - 155 155 Commercial construction real estate - 12 12 Residential construction real estate - 13 13 Home equity, home improvement/second mortgages 73 358 431 Commercial operating and term 32 77 109 Agricultural operating and term - 31 31 Vehicle - 28 28 Consumer 12 100 112 Total $ 573 $ 1,585 $ 2,158 December 31, 2014 Individually Collectively Evaluated Evaluated Impairment Impairment Total Loans: Residential real estate $ 1,283 $ 55,391 $ 56,674 Commercial real estate 2,637 28,016 30,653 Agricultural real estate - 38,128 38,128 Commercial construction real estate - 4,035 4,035 Residential construction real estate - 940 940 Home equity, home improvement/second mortgages 73 32,668 32,741 Commercial operating and term 63 5,655 5,718 Agricultural operating and term - 7,714 7,714 Vehicle - 1,671 1,671 Consumer 16 6,263 6,279 Total $ 4,072 $ 180,481 $ 184,553 Loans with a carrying value of $102,138 and $96,740 at December 31, 2015 and 2014, respectively, were pledged to secure borrowed funds. Related-party loans: Loans held for sale: Interest rate lock commitments related to the origination of mortgage loans that will be sold are considered derivative instruments. The Company estimates the fair value of these derivatives using the difference between the guaranteed interest rate in the commitments and the current market interest rate. To reduce the net interest rate exposure arising from its loan sale activity, the Company enters into a commitment to sell these loans at the same time that the interest rate lock commitment is quoted. The commitments to sell loans are also considered derivative instruments, with offsetting estimated fair values based on changes in current market rates. These commitments are not designated as hedging instruments and, therefore, changes in fair value are recognized immediately into income. The fair values of the Company’s derivative instruments are offsetting and deemed to be immaterial. The net gain on the derivative instruments was $348 and $247 in 2015 and 2014, respectively, and is included in the caption, gain on sale of loans held for sale, in the consolidated statements of income. |
Loan Servicing
Loan Servicing | 12 Months Ended |
Dec. 31, 2015 | |
Loan Servicing [Abstract] | |
Loan Servicing | Note 5. Loan Servicing Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of these loans as of December 31, 2015 and 2014, were $317,047 and $332,075, respectively, and consist of one- to four-family residential real estate loans. These loans are serviced primarily for the Federal Home Loan Mortgage Corporation, Federal Home Loan Bank and Federal National Mortgage Association. Custodial escrow balances maintained in connection with the foregoing loan servicing, and included in advances from borrowers for taxes and insurance, were $2,310 and $2,347 at December 31, 2015 and 2014, respectively. Mortgage servicing rights are summarized as follows for the years ended December 31, 2015 and 2014: 2015 2014 Balance at beginning of year, net $ 1,886 $ 1,952 Mortgage servicing rights capitalized 343 258 Amortization expense (351 ) (324 ) Valuation provision (15 ) - Balance at end of year, net $ 1,863 $ 1,886 The estimated fair value of mortgage servicing rights was $2,293 and $2,578 at December 31, 2015 and 2014, respectively. At December 31, 2015 and 2014, the valuation allowance was $0 and $15, respectively. The following table indicates the estimated future amortization expense for mortgage servicing rights. The estimated amortization expense is based on existing asset balances. The timing of amortization expense actually recognized in future periods may differ significantly depending upon prepayment speeds affected by economic conditions, mortgage interest rates, and other matters. Years Ending December 31, 2016 $ 368 2017 330 2018 294 2019 258 2020 224 Thereafter 389 $ 1,863 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Note 6. Premises and Equipment December 31 2015 2014 Land $ 515 $ 464 Buildings and improvements 4,931 4,631 Leasehold improvements 473 473 Furniture, fixtures and equipment 3,059 3,018 8,978 8,586 Less accumulated depreciation and amortization 5,610 5,414 $ 3,368 $ 3,172 |
Foreclosed Real Estate
Foreclosed Real Estate | 12 Months Ended |
Dec. 31, 2015 | |
Real Estate [Abstract] | |
Foreclosed Real Estate | Note 7. Foreclosed Real Estate An analysis of activity for foreclosed real estate is as follows: Years Ended December 31 2015 2014 Balance at beginning of year $ 3,656 $ 4,340 Transfers from loans 262 726 Capitalized expenses - 143 Proceeds from sales (2,049 ) (1,291 ) Charge-offs/write-downs (241 ) (302 ) Net gain (loss) on sales 4 40 Balance at end of year $ 1,632 $ 3,656 Expenses applicable to foreclosed real estate include the following amounts reported in other real estate owned expense: Years Ended December 31 2015 2014 Net gain on sales $ (4 ) $ (40 ) Impairment 241 302 Operating expenses, net of rental income 244 237 $ 481 $ 499 At December 31, 2015 there were no properties in the process of repossession. At December 31, 2014 there were two properties in the process of repossession with a combined carrying amount of $128. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2015 | |
Deposits [Abstract] | |
Deposits | Note 8. Deposits December 31 2015 2014 Demand deposits, noninterest-bearing $ 21,084 $ 16,610 NOW and money market accounts 105,962 95,775 Savings accounts 50,892 42,133 Certificates of deposit 62,012 67,454 $ 239,950 $ 221,972 The aggregate amount of certificates of deposit over $100 was $15,243 and $15,853 at December 31, 2015 and 2014, respectively. The aggregate amount of certificates of deposit over $250 was $1,053 and $826 at December 31, 2015 and 2014, respectively. A summary of scheduled maturities of certificates of deposit is as follows: Years Ending December 31, 2016 $ 39,116 2017 12,157 2018 5,547 2019 5,066 2020 126 $ 62,012 |
Borrowed Funds
Borrowed Funds | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Borrowed Funds | Note 9. Borrowed Funds The Company has no outstanding advances from the FHLB of Des Moines as of December 31, 2015 and 2014. The maximum borrowing capacity, based on securities and loans pledged, from the FHLB of Des Moines was $75,032 as of December 31, 2015. At December 31, 2014, the Company had a variable rate $1,500 revolving one of credit from United Bankers Bank. There was no outstanding balance on this note at December 31, 2014. The note matured on May 20, 2015 and was not renewed. |
Income Tax Matters
Income Tax Matters | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Matters | Note 10. Income Tax Matters The components of income tax expense are as follows: Years Ended December 31 2015 2014 Federal: Current $ 734 $ 599 Deferred 190 (147 ) 924 452 State: Current 257 220 Deferred 63 (49 ) 320 171 Total $ 1,244 $ 623 Total income tax expense differed from the amounts computed by applying the statutory U.S. federal income tax rate (35 percent) to income before income taxes as a result of the following: Years Ended December 31 2015 2014 Computed expected tax expense $ 2,148 $ 674 State income taxes, net of federal benefit 208 118 Bargain purchase gain (997 ) - Effect of graduated rates (61 ) (19 ) Other (54 ) (150 ) Income tax expense $ 1,244 $ 623 The Company utilizes a two-step process to recognize and measure uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50 percent likely of being realized upon ultimate settlement. The Company and its subsidiary file consolidated federal and state income tax returns. At December 31, 2015, the federal and Minnesota tax returns that the Company files are open for examination by taxing authorities for the years 2012, 2013 and 2014. The Company considers many factors when evaluating and estimating the Company’s tax positions, which may require periodic adjustments. At December 31, 2015, the Company did not record any liabilities for uncertain tax positions. The Company recognizes accrued penalty and interest on uncertain tax positions, if any, as a component of its income tax expense. The net deferred tax assets (liabilities) included in the accompanying consolidated balance sheets in other assets includes the following: December 31 2015 2014 Deferred tax assets: Allowance for loan losses $ 795 $ 873 Management stock bonus plan 6 6 Accrued compensation 29 15 Impairment of securities 196 196 Repossessed property 297 664 Unaccreted discount 35 48 Accrual to cash 14 - Other 144 47 Total deferred tax assets 1,516 1,849 Deferred tax liabilities: Premises and equipment 110 99 FHLB stock 130 131 Mortgage servicing rights 745 763 Deferred loan origination fees 25 31 Securities available for sale 39 58 Prepaid expenses 52 77 Accrued real estate taxes 41 40 Other 32 74 Total deferred tax liabilities 1,174 1,273 Net deferred tax assets $ 342 $ 576 Deferred tax liabilities of $241 were recorded in 2015 relating to the St. James acquisition. The total change in net deferred tax assets (excluding securities available for sale of $494) less the St. James deferred tax liabilities of $241 is the deferred tax expense of $253. Retained earnings include approximately $2,211 related to the pre-1987 allowance for loan losses for which no deferred federal income tax liability has been recognized. This amount represents an allocation of income to bad-debt deductions for tax purposes only. If the Bank no longer qualifies as a bank or in the event of a liquidation of the Bank, income would be created for tax purposes only, which would be subject to the then-current corporate income tax rate. The unrecorded deferred income tax liability on the above amount for financial statement purposes was approximately $884. |
Equity, Regulatory Capital and
Equity, Regulatory Capital and Dividend Restrictions | 12 Months Ended |
Dec. 31, 2015 | |
Banking and Thrift [Abstract] | |
Equity, Regulatory Capital and Dividend Restrictions | Note 11. Equity, Regulatory Capital and Dividend Restrictions The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory—and possibly additional discretionary—actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the following table) of total Tier I capital and common equity Tier I capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier I capital (as defined) to average assets (as defined). Management believes, as of December 31, 2015, that the Bank meets all capital adequacy requirements to which it is subject. As of December 31, 2015, the most recent notification of the Federal Deposit Insurance Corporation 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. There are no conditions or events since that notification that management believes have changed the Bank’s category. The following table summarizes the Bank’s compliance with its regulatory capital requirements: Minimum Minimum to Be for Capital Capitalized Under Actual Adequacy Prompt Corrective Amount Percent Amount Percent Amount Percent As of December 31, 2015: Tier I capital (to average assets) $ 28,734 10.48 % $ 10,967 4.00 % $ 13,709 5.00 % Common equity Tier I capital (to risk weighted assets) 28,734 14.56 % 8,884 4.50 % 12,832 6.50 % Tier I capital (to risk weighted assets) 28,734 14.56 % 11,845 6.00 % 15,793 8.00 % Total risk based capital (to risk weighted assets) 30,722 15.56 % 15,793 8.00 % 19,742 10.00 % As of December 31, 2014: Tier I capital (to average assets) 25,380 9.90 % 10,255 4.00 % 12,819 5.00 % Tier I capital (to risk weighted assets) 25,380 13.58 % 7,478 4.00 % 11,217 6.00 % Total capital (to risk weighted assets) 27,566 14.74 % 14,956 8.00 % 18,695 10.00 % In July 2013, the federal banking agencies issued a final rule revising the regulatory capital rules applicable to most national bank and federal savings associations as well as their holding companies generally beginning on January 1, 2015. The rule implements the Basel Committee’s December 2010 framework known as “Basel Ill” for strengthening international capital standards as well as certain provisions of the Dodd-Frank Act. The final rule implements a revised definition of regulatory capital, a new common equity Tier 1 minimum capital requirement of 4.50%, and a higher minimum Tier 1 capital requirement of 6.00% (which is an increase from 4.00%). Under the final rule, the total capital ratio remains at 8.00% and the minimum leverage ratio (Tier 1 capital to total assets) for all banking organizations, regardless of supervisory rating, is 4.00%. Additionally, under the final rule, in order to avoid limitations on capital distributions, including dividend payments and certain discretionary bonus payments to executive officers, a banking organization must hold a 2.5% capital conservation buffer composed of common equity Tier 1 capital above its minimum risk-based capital requirements. The buffer is measured relative to risk-weighted assets. The final rule also enhances risk sensitivity and addresses weaknesses identified by the regulators over recent years with the measure of risk weighted assets, including through new measures of creditworthiness to replace references to credit ratings, consistent with the requirements of the Dodd-Frank Act. Except for the largest internationally active banking organizations (which are subject to the “advanced approaches” provisions of the final rule), the new minimum capital requirements generally become effective for all banking organizations on January 1, 2015, whereas the capital conservation buffer and the deductions from common equity Tier 1 capital phase in over time, beginning on January 1, 2016 and through January 1, 2019. Similarly, non-qualifying capital instruments phase out over time. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 12. Earnings Per Share A reconciliation of the income and common stock share amounts used in the calculation of basic and diluted earnings per share follows: Year Ended December 31, 2015 Weighted-average Per Share Income Shares Amount Basic earnings per share: Net income $ 4,894 770,569 $ 6.35 Effect of dilutive securities: Stock options - 629 Diluted earnings per share: Net income plus assumed conversions $ 4,894 771,198 $ 6.35 Year Ended December 31, 2014 Weighted-average Per Share Income Shares Amount Basic earnings per share: Net income $ 1,303 755,781 $ 1.72 Effect of dilutive securities: Stock options - 1,360 Diluted earnings per share: Net income plus assumed conversions $ 1,303 757,141 $ 1.72 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Benefit Plans | Note 13. Employee Benefit Plans Defined contribution 401(k) plan: Employee stock ownership plan: The Company makes annual discretionary contributions to the ESOP. As these funds are available, the ESOP acquires shares of Company stock and allocates the shares to ESOP participants. Dividends on allocated ESOP shares are recorded as a reduction of retained earnings. In 2015 and 2014, 6,299 and 7,570 shares, respectively, were purchased, and 2,505 and 2,839 shares, respectively, were allocated to ESOP participants at a cost of approximately $64 for both 2015 and 2014, which was charged to compensation expense. The ESOP held 91,459 and 95,602 shares of Company stock at December 31, 2015 and 2014, respectively. At December 31, 2015 and 2014, 86,135 and 89,304 shares, respectively, have been released for allocation to participants. Allocated shares held by the ESOP are treated as outstanding in computing earnings per share. The Company is subject to a put option on ESOP shares distributed to participants. The put option is a right to demand that the Company buy shares of its stock held by the participant for which there is no market. The put price is representative of the fair market value of the stock, which is approximately $31.50 and $26.50 per share per independent valuation as of December 31, 2015 and 2014, respectively. The Company must pay for the purchase within a five-year period. Since this put right is outside the control of the Company, this results in the classification of these shares as redeemable common stock in the mezzanine equity section of the balance sheet at their fair value, with changes to fair value recorded in retained earnings. The fair value of unreleased shares as of December 31, 2015 and 2014 was $168 and $167, respectively. Stock option plans: Wells Financial Corp. 2003 Stock Option Plan: Options granted under the Plan may be options that qualify as Incentive Stock Options, as defined in Section 422 of the Internal Revenue Code of 1986, as amended, or options that do not so qualify. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. Grant-date fair values were computed using the following assumptions: estimated life (in years), risk-free interest rate, expected volatility and dividend rate. The expected volatility is based on historical volatility for the estimated term of the award. The risk-free interest rates for periods within the contractual life of the awards are based on the U.S. Treasury yield curve in effect at the time of the grant. The expected life is based on historical exercise experience. The dividend yield assumption is based on the Company’s history and expectation of dividend payouts. Stock option activity and balances as of December 31, 2015 and 2014, and during the years then ended are presented below: Years Ended December 31 2015 2014 Aggregate Weighted- Weighted- Intrinsic Average Average Fixed Options Value Shares Exercise Price Shares Exercise Price Outstanding, beginning of year $ 9 16,950 $ 29.10 27,700 $ 29.29 Granted - - - - Exercised - - (2,850 ) 19.10 Forfeited (7,900 ) 30.00 (7,900 ) 33.38 Outstanding, end of year $ 33 9,050 $ 28.32 16,950 $ 29.10 The aggregate intrinsic value of a stock option in the table above represents the total pretax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders, had all option holders exercised their options on December 31, 2014. The intrinsic value changes based on changes in the market value of the Company’s stock. The total intrinsic value of options exercised during 2014 was $25, respectively. The Company has purchased treasury stock and uses these shares for options exercised. The status of the 9,050 options outstanding at December 31, 2015, is presented below: Exercise Remaining Exercisable Price Contractual Number Intrinsic Date of Award Shares Per Share Life (Years) Exercisable Value March 20, 2007 7,950 $ 29.60 1.2 7,950 $ 19 May 18, 2010 1,100 19.10 4.4 1,100 14 For the years ended December 31, 2015 and 2014, the Company recognized $0 and $8 in compensation expense related to awards issued under this plan. Management stock bonus plan: The status of nonvested shares outstanding as of December 31, 2015 and 2014, and the changes during the years then ended are presented below: Years Ended December 31 2015 2014 Outstanding at beginning of year 1,781 2,618 Granted - - Forfeited - - Vested (544 ) (837 ) Outstanding at end of year 1,237 1,781 The total fair value of shares vested during the years ended December 31, 2015 and 2014, was $18 and $17, respectively. The Company recorded compensation expense of $13 and $25 related to this plan for the years ended December 31, 2015 and 2014, respectively. At December 31, 2015, there was a total of $10 of unrecognized compensation expense related to stock-based compensation arrangements granted under this plan. The expense expected to be recognized is $7 in 2016 and $3 in 2017. The total tax benefit recognized in the consolidated financial statements for the years ended December 31, 2015 and 2014, related to shares granted under the plan was $11 and $17, respectively. The total tax benefit realized on the tax returns for the years ended December 31, 2015 and 2014, was $17 and $21, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 14. Commitments and Contingencies The Company leases certain branch facilities under operating leases. Some leases require the Company to pay related insurance, maintenance and repairs, and real estate taxes. The Company also has an agreement with its data processor whereby the processor agrees to provide certain data and item processing services that expire in 2020. The agreement automatically renews in five-year intervals unless terminated by either party. Future minimum rental and data processing commitments under these agreements as of December 31, 2015, are estimated as follows: Years Ending December 31, Rental Data 2016 $ 70 $ 686 2017 34 601 2018 - 558 2019 - 558 2020 - 140 Total rental expense related to operating leases was approximately $159 and $172 for the years ended December 31, 2015 and 2014, respectively. Total data processing expense related to servicing agreements was $965 and $962 for the years ended December 31, 2015 and 2014, respectively. In the normal course of business, the Company may be involved in various legal proceedings. In the opinion of management, any liability resulting from such proceedings would not have a material adverse effect on the consolidated financial statements. |
Financial Instruments With Off-
Financial Instruments With Off-Balance-Sheet Risk | 12 Months Ended |
Dec. 31, 2015 | |
Financial Instruments With Off Balance Sheet Risk [Abstract] | |
Financial Instruments With Off-Balance-Sheet Risk | Note 15. Financial Instruments With Off-Balance-Sheet Risk The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include primarily commitments to extend credit. Those instruments involve, to varying degrees, elements of credit risk and interest rate risk in excess of the amount recognized in the consolidated balance sheet. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit, standby letters of credit, and financial guarantees written is represented by the contractual notional amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. Commitments to extend credit on loans totaled approximately $44,081 and $38,110 at December 31, 2015 and 2014, respectively. 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 some of the commitments 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 it is deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the counterparty. Collateral held varies but normally includes real estate and personal property. |
Business Combination
Business Combination | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Business Combination | Note 16. Business Combination Effective July 16, 2015, the Company completed its previously reported acquisition of St. James Federal Savings and Loan Association, St. James, Minnesota (St. James), in a conversion merger transaction. As a result of the conversion merger transaction, St. James converted from a mutual to stock institution and merged with and into the Bank, with the Bank as the surviving institution. The Company acquired 100% of the voting shares of St. James. The Company issued and sold 78,736 shares of common stock at a price of $27.36 per share, which reflected a 5% discount on the 30 day average price as prescribed in the merger agreement. The shares were offered to depositor and borrower members of St. James in a subscription offering and to stockholders of the Company and members of the general public in a community offering. The Company’s ESOP acquired 8%, or 6,299 shares, of the newly issued shares using funds borrowed from the Company. The fair value of consideration paid to the prior depositors and borrowers of St. James was determined to approximate zero. Gross offering proceeds totaled approximately $2,154, including $172 purchased by the Company’s ESOP. As a result of the stock offering, the Company had 814,758 shares of common stock outstanding as of the close of business on July 16, 2015. St. James’ sole office, located in St. James, Minnesota, has become a branch office of the Bank. The Company’s primary reasons for the acquisition are to provide for asset growth, improve capital and competitive positions, and increase the limit on loans to one borrower. The Company has determined that the acquisition constitutes a business combination as defined by the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 805, Business Combinations. Fair Value Measurements. The determination of these fair values required management to make estimates about discount rates, future expected cash flows, market conditions and other future events which are highly subjective in nature. The assets acquired and liabilities assumed in the transaction are presented at estimated fair value on the acquisition date. The Company recorded the following assets and liabilities as of July 16, 2015. The discounts and premiums resulting from the fair value adjustments will be accreted or amortized over the anticipated lives of the underlying assets and liabilities. The excess fair value of assets acquired over liabilities assumed, resulted in a $2,848 bargain purchase gain. The merger resulted in a gain because of the legal and financial barriers that St. James would have incurred to convert to a stock form of ownership in a stand-alone transaction, including the related transaction costs associated with a conversion and stock issuance. The bargain purchase gain was recorded in non-interest income in the Company’s consolidated statements of income for the three and nine months ended September 30, 2015. July 16, Recognized amounts of identifiable assets acquired and liabilities assumed Fair value of assets acquired Cash $ 1,337 Certificates of deposit 5,616 Securities – available for sale 995 Loans 17,506 Premises and equipment 366 Real estate owned 35 Accrued interest and other assets 131 Core deposit intangible 208 Total assets acquired $ 26,194 Fair value of liabilities assumed Deposits $ 23,043 Deferred tax liability 238 Accrued interest and other liabilities 65 Total liabilities assumed $ 23,346 Net assets acquired $ 2,848 The fair value of the loan portfolio was estimated by performing a discounted cash flow analysis. The valuation was performed at the loan level on real estate loans and at the cohort level for all other loan types, and is based on the objective attributes of the loans in the portfolio (e.g., the rate of interest on the loan, the original term of the loan, the current term of the loan, etc.) and current statistical performance variables used in the market place. The analysis was based on the contractually specified amounts of principal and interest to be received modified by our estimates of prepayment, default and loss severity to be experienced prospectively. The prepayment, default and loss severity assumptions were applied at the loan level based on the characteristics of the loan. The composition of the acquired loans at July 16, 2015 was as follows: Contractual Fair Value Fair Value Residential real estate $ 6,480 $ 74 $ 6,554 Revolving, open end residential real estate 336 (1 ) 335 Agricultural real estate 5,437 57 5,494 Agricultural operating and term 2,588 2 2,590 Commercial real estate 1,262 2 1,264 Automobile loans 721 (8 ) 713 Other consumer 602 (46 ) 556 Total $ 17,426 $ 80 $ 17,506 The Company estimates that $79 of the contractual amounts receivable for loans acquired will not be collected. The following table presents pro forma financial information assuming the acquisition occurred on January 1, 2014: Years Ended 2015 2014 Revenues (interest and noninterest income) $ 13,815 $ 13,026 Net income $ 2,081 $ 1,356 Diluted net income per share $ 2.43 $ 1.62 Diluted weighted-average shares $ 2.43 $ 1.62 The bargain purchase gain is excluded from the pro forma table above. To determine pro forma information, the Company adjusted its 2015 and 2014 historical results to include the historical results of St. James. Stock issuance costs incurred totaled $1,147. The stock issuance costs were offset against the proceeds of the offering, which was recognized as paid-in capital. Merger costs of $332 and $334 were expensed during the years ended December 31, 2015 and 2014, respectively. |
Concentrations
Concentrations | 12 Months Ended |
Dec. 31, 2015 | |
Concentration Risks, Types, No Concentration Percentage [Abstract] | |
Concentrations | Note 17. Concentrations Concentration by geographic location: Concentration by institution: |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 18. Fair Value Measurements ASC Topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact. ASC Topic 820 establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date Level 2: Significant other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Investment securities available for sale: Redeemable common stock: The Company is required, on a nonrecurring basis, to adjust the carrying value of certain assets or provide valuation allowances related to certain assets, using fair value measurements in accordance with generally accepted accounting principles. Impaired loans: Foreclosed real estate: Mortgage servicing rights: The following tables summarize assets and (liabilities) measured at fair value as of December 31, 2015 and 2014, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: December 31, 2015 Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value Recurring: Investment securities available for sale: Residential mortgage-backed securities $ - $ 20,142 $ - $ 20,142 SBA pools - 2,574 - 2,574 Obligations of states and political subdivisions - 11,642 - 11,642 Government-sponsored enterprise equity Securities - 92 - 92 Redeemable common stock - - (2,881 ) (2,881 ) Nonrecurring: Foreclosed real estate - - 1,632 1,632 Collateral-dependent impaired loans - - 1,685 1,685 December 31, 2014 Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value Recurring: Investment securities available for sale: Residential mortgage-backed securities $ - $ 22,545 $ - $ 22,545 SBA pools - 1,832 - 1,832 Obligations of states and political subdivisions - 9,698 - 9,698 Government-sponsored enterprise equity Securities - 102 - 102 Redeemable common stock - - (2,533 ) (2,533 ) Nonrecurring: Foreclosed real estate - - 3,656 3,656 Collateral-dependent impaired loans - - 3,002 3,002 Mortgage servicing rights - 646 - 646 Changes in the fair value of redeemable common stock, which is a recurring fair value measurements using significant unobservable inputs (Level 3), for the fiscal years ended December 31, 2015 and 2014 were as follows: Balance as of December 31, 2013 $ 2,342 Change in fair value related to redeemable common stock 191 Balance as of December 31, 2014 2,533 Purchase of shares by the Company (267 ) Change in fair value related to redeemable common stock 615 Balance as of December 31, 2015 $ 2,881 For the fiscal years ended December 31, 2015 and 2014 there were no transfers in or out of Levels 1, 2, and 3. ASC Topic 825 requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not recognized at fair value on a recurring basis or nonrecurring basis. The methodologies for estimating the fair value of financial assets and financial liabilities that are recognized at fair value on a recurring or nonrecurring basis are discussed above. The methodologies for financial assets and financial liabilities are discussed in Note 1. The estimated fair values of the Company’s financial instruments are as follows: December 31 2015 2014 Level in Fair Carrying Fair Carrying Fair Financial assets: Cash and cash equivalents Level 1 $ 12,059 $ 12,059 $ 14,373 $ 14,373 Certificates of deposit Level 2 9,543 9,543 4,181 4,181 Federal funds sold Level 2 9,100 9,100 2,000 2,000 Securities available for sale Level 2 34,450 34,450 34,177 34,177 FHLB stock Level 2 1,986 1,986 2,079 2,079 Loans held for sale Level 2 1,337 1,337 1,707 1,707 Loans receivable, net Level 2 197,595 199,971 182,050 183,219 Accrued interest receivable Level 2 1,020 1,020 834 834 Mortgage servicing rights Level 2 1,863 2,293 1,886 2,578 Financial liabilities: Deposits Level 2 239,950 232,350 221,972 215,199 Advances from borrowers for taxes and insurance Level 2 2,646 2,646 2,630 2,630 Accrued interest payable Level 2 12 12 17 17 Interest rate risk: The fair value of commitments to extend credit is based on fees currently charged to enter into similar agreements with comparable credit risks and the current creditworthiness of the parties. Commitments are generally short-term in nature and, if drawn upon, are issued under current market terms and conditions for credits with comparable risks. Therefore, the fair values of these financial instruments are not significant. |
Additional Cash Flow Informatio
Additional Cash Flow Information | 12 Months Ended |
Dec. 31, 2015 | |
Additional Cash Flow Elements [Abstract] | |
Additional Cash Flow Information | Note 19. Additional Cash Flow Information Years Ended December 31 2015 2014 Cash flows from securities: Available-for-sale securities Maturities and calls $ 7,658 $ 12,435 Sale of securities - 3,155 Purchases (7,283 ) (7,803 ) $ 375 $ 7,787 Supplemental disclosures of cash flow information: Cash payments for: Interest $ 455 $ 586 Income taxes 1,155 460 Supplemental schedule of noncash investing and financing activities: Loans originated in sale of foreclosed real estate $ 118 $ 223 Foreclosed real estate acquired in settlement of loans 262 726 On July 16, 2015, the Company purchased Saint James Federal Savings and Loan Association. Noncash investing and financing amounts are presented in Note 16. On August 15, 2014, the Company purchased selected assets and assumed selected liabilities of a branch office located in Minnesota Lake, Minnesota from Frandsen Bank & Trust. The transaction, which did not meet the definition of a business combination, included loans of $6,247, building of $87 and deposits of $12,428. |
Financial Information of Wells
Financial Information of Wells Financial Corp. (Parent Only) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Financial Information of Wells Financial Corp. (Parent Only) | Note 20. Financial Information of Wells Financial Corp. (Parent Only) The Company’s condensed statements of financial condition as of December 31, 2015 and 2014 and related condensed statements of income and cash flows for the years then ended: Condensed Balance Sheets Assets 2015 2014 Cash $ 2,094 $ 740 Prepaid fees and other assets 166 218 Investment in Wells Federal Bank 29,060 25,661 Total Assets $ 31,320 $ 26,619 Liabilities and Stockholders’ Equity Liabilities $ 20 $ - Mezzanine equity 2,881 2,533 Stockholders’ equity 28,419 24,086 Total liabilities and stockholders’ equity $ 31,320 $ 26,619 Condensed Statements of Income 2015 2014 Compensation and benefits $ 24 $ 22 Other expense 152 49 Loss before income taxes (176 ) (71 ) Income tax benefit 58 13 Net loss before dividends and equity in undistributed income of subsidiary (118 ) (58 ) Dividends from subsidiary 1,600 1,477 Equity in undistributed income of subsidiary 3,412 (116 ) Net income $ 4,894 $ 1,303 Condensed Statements of Cash Flows 2015 2014 Cash Flows From Operating Activities Net Income $ 4,894 $ 1,303 Adjustments to reconcile net income to net cash provided by operating activities: Stock based compensation 26 - Equity in undistributed net income of subsidiary (3,412 ) 116 Other assets (120 ) (70 ) Other liabilities 20 (17 ) Net cash provided by operating activities 1,408 1,332 Cash Flows From Financing Activities Issuance of shares of common stock 1,007 - Purchase of treasury stock (505 ) (703 ) Dividends paid (556 ) (453 ) Net cash used in financing activities (54 ) (1,156 ) Net increase in cash 1,354 176 Cash and Cash Equivalents Beginning 740 564 Ending $ 2,094 $ 740 |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 21. Subsequent Event On February 1, 2016 the Bank was granted regulatory approval to pay a $4.2 million dividend to the Company. This dividend represents 35.1% ($478) of the Bank’s 2014 net income and 75.0% ($3,757) of the Bank’s 2015 net income. This dividend was paid on February 16, 2016. On February 17, 2016 the Company declared a $0.25 per share dividend, payable on March 28, 2016 to shareholders of record on March 14, 2016. |
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: |
Basis of financial statement presentation | Basis of financial statement presentation: |
Use of estimates | Use of estimates: |
Cash and cash equivalents | Cash and cash equivalents: |
Federal Home Loan Bank stock | Federal Home Loan Bank stock: |
Securities available for sale | Securities available for sale: Securities available for sale are carried at fair value. Unrealized gains or losses, net of the related deferred tax effect, are reported as a net amount in accumulated other comprehensive income (loss). Amortization of premiums and accretion of discounts, computed by the interest method over their contractual lives, are recognized in interest income. Realized gains or losses, determined on the basis of the cost of specific securities sold, are included in earnings. Declines in the fair value of individual securities below their amortized cost that are determined to be other than temporary result in write-downs of the individual securities to their fair value, with the resulting write-downs included in current earnings as realized losses. The Company evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. The Company employs a systematic methodology that considers available evidence in evaluating potential impairment of its investments. The assessment of whether such impairment has occurred is based on management’s case-by-case evaluation of the underlying reasons for the decline in fair value. Once a decline in fair value is determined to be other than temporary, an impairment charge is recorded in investment income, and a new cost basis in the investment is established. Securities with unrealized losses that the Company deems to be other than temporary are recognized as realized losses. The assessment of whether such impairment has occurred is based on management’s case-by-case evaluation of the underlying reasons for the decline in fair value. As part of their assessment process, management determines whether (a) they do not have the intent to sell a debt security prior to recovery and (b) it is more likely than not that they will not have to sell the debt security prior to recovery, in which case the security would not be considered other than temporarily impaired, unless there is a credit loss. When management does not intend to sell the security, and it is more likely than not they will not have to sell the security before recovery of its cost basis, the Company will recognize the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. |
Loans held for sale | Loans held for sale: Interest rate lock commitments on mortgage loans to be funded and sold are valued at fair value and are included in other assets or liabilities, if material. |
Loans receivable | Loans receivable: Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at the amount of unpaid principal, reduced by an allowance for loan losses, unaccreted discount and net deferred origination fees. Interest is accrued daily on the outstanding balances. Interest on loans is generally recognized over the terms of the loans using the simple-interest method on principal amounts outstanding. The Company determines a loan to be delinquent when payments have not been made according to contractual terms, typically evidenced by nonpayment of a monthly installment by the due date. Accrual of interest is discontinued for loans at the time the loan is 90 days delinquent, unless the credit is well-secured and in the process of collection. All interest accrued but not collected for loans that are placed on nonaccrual status is reversed against interest income. Accrual of interest is generally resumed when the borrower has demonstrated the ability to make all periodic interest and principal payments. |
Allowance for loan losses | Allowance for loan losses: The allowance is an amount that management believes will be adequate to absorb estimated losses relating to specifically identified loans, as well as probable credit losses inherent in the balance of the loan portfolio, based on an evaluation of the collectability of existing loans and prior loss experience. This evaluation also takes into consideration such factors as changes in the nature and volume of the loan portfolio, the value of underlying collateral, overall portfolio quality, review of specific problem loans, and current economic conditions that may affect the borrower’s ability to pay. While management uses the best information available to make its evaluation, future adjustments to the allowance may be necessary if there are significant changes in economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance for loan losses and may require the Bank to make additions to the allowance based on their judgment about information available to them at the time of their examinations. The allowance consists of specific and general components. The Company maintains a loan loss reserve for all commercial loans and agricultural operating loans in the portfolio using a risk-rating system. The calculated allowance is evaluated against the historical loss default rate for each loan type above (net of recoveries) to determine an appropriate level of allowance by loan type. Homogeneous loans with similar risk and loss characteristics are also assessed for probable losses. These loan pools include consumer, residential real estate, agricultural real estate, home equity, and vehicle loans. Historical loss default rates are multiplied by the total of each portfolio segment to determine an appropriate level of allowance by segment. The general allowance for loan losses also includes estimated losses resulting from macroeconomic factors and adjustments to account for imprecision of the loan loss model. Macroeconomic factors adjust the allowance for loan losses upward or downward based on the current point in the economic cycle and are applied to the loan loss model through a separate allowance element. The Company reviews the macroeconomic factors in order to conclude they are adequate based on current economic conditions. The specific component of the allowance for loan losses relates to loans that are considered to be impaired. A loan is impaired when it is probable, based on current information and events, the Company will be unable to collect all contractual principal and interest payments due in accordance with the terms of the loan agreement. Impaired loans are measured on an individual basis based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, as a practical expedient, at the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. The Company obtains external appraisals on real estate–related impaired loans. Other valuation techniques are used as well, including internal valuations, comparable property analyses, and contractual sales information. The Company may further discount appraisal values based on their age and the relationship to the listed comparables. The amount of impairment, if any, and any subsequent changes are included in the provision for loan losses. Accrual of interest on impaired loans is discontinued when management believes the borrower’s financial condition is such that collection of interest is doubtful. Impaired loans also include loans that have been renegotiated in a troubled debt restructuring. Cash collections on impaired loans are generally credited to the loan balance, and no interest income is recognized on those loans until the principal balance has been determined to be collectible. |
Troubled debt restructurings | Troubled debt restructurings: |
Loan origination fees and related costs | Loan origination fees and related costs: |
Loan servicing | Loan servicing: Mortgage servicing rights are subject to change based primarily on changes in the mix of loans, interest rates, prepayment speeds, or default rates from the estimates used in the valuation of the mortgage servicing rights. Such changes may have a material effect on the amortization and valuation of mortgage servicing rights. Although management believes that the assumptions used to evaluate the mortgage servicing rights for impairment are reasonable, future adjustment may be necessary if future economic conditions differ substantially from the economic assumptions used to determine the value of the mortgage servicing rights. Mortgage servicing rights are periodically evaluated for impairment based on the fair value of those rights. Fair values are estimated using discounted cash flows based upon estimated prepayment speeds, ancillary income received from loan servicing, and current interest rates. For purposes of measuring impairment, the rights must be stratified by one or more predominant risk characteristics of the underlying loans. The Company stratifies its capitalized mortgage servicing rights based on interest rates and the term of the underlying loans. The amount of impairment recognized is the amount, if any, by which the amortized cost of the rights for each stratum exceeds their fair value. |
Foreclosed real estate | Foreclosed real estate: |
Transfers of financial assets | Transfers of financial assets: |
Core deposit intangible assets | Core deposit intangible assets: |
Advertising | Advertising: |
Premises and equipment | Premises and equipment: |
Comprehensive income | Comprehensive income: |
Income taxes | Income taxes: |
Earnings per share | Earnings per share: |
Employee stock plans | Employee stock plans: |
Fair value of financial instruments | Fair value of financial instruments: Cash and cash equivalents: Certificates of deposit: Federal funds sold: Securities available for sale: Federal Home Loan Bank stock: Loans held for sale: Loans and accrued interest receivable: Mortgage servicing rights: Deposits and other liabilities: Borrowed funds: Off-balance-sheet instruments: |
Derivatives - rate-lock commitments | Derivatives—rate-lock commitments: The forward loan sale agreement also meets the definition of a derivative instrument. Any change in the fair value of the loan commitment after the borrower locks in the interest rate is substantially offset by the corresponding change in the fair value of the forward loan sale agreement related to such loan. The period from the time the borrower locks in the interest rate to the time the Company funds the loan and sells it to FHLMC is generally 60 days. The fair value of each instrument will rise or fall in response to changes in market interest rates subsequent to the dates the interest rate locks and forward loan sale agreements are entered into. In the event that interest rates rise after the Company enters into an interest rate lock, the fair value of the loan commitment will decline. However, the fair value of the forward loan sale agreement related to such loan commitment should increase by substantially the same amount, effectively eliminating the Company’s interest rate and price risk. At December 31, 2015, the Company had $2,142 of loan commitments outstanding related to loans being originated for sale, all of which were subject to interest rate locks and forward loan sale agreements as described above. The fair values of outstanding interest rate-lock commitments and forward sale commitments were considered immaterial to the Company’s consolidated financial statements as of December 31, 2015 and 2014, and therefore, are not recognized in the consolidated financial statements and are not included in the disclosures in Note 18. |
Fair value measurements | Fair value measurements: |
Recent accounting pronouncements | Recent accounting pronouncements: In January 2014, the Financial Accounting Standards Board (FASB) issued ASU 2014-04, Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. ASU 2014-04 clarifies that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (a) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (b) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the standard requires interim and annual disclosure of both (a) the amount of foreclosed residential real estate property held by the creditor and (b) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. ASU 2014-04 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. ASU 2014-04 permits either a modified retrospective transition method or a prospective transition method and was effective for the Company as of the beginning of the 2015 fiscal year. The adoption of this guidance did not have a material effect on the Company’s consolidated financial statements. In August 2014, the FASB issued ASU 2014-14, Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure, which requires, if certain conditions are met, an entity to derecognize a mortgage loan with a government guarantee upon foreclosure and to recognize a separate other receivable. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. This ASU will be effective for the Company for annual periods ending after December 15, 2015, using the same transition method elected under ASU 2014-04. Early adoption is permitted. The adoption of this ASU is not expected to have a material impact on the Company’s consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue Recognition – Revenue from Contracts with Customers (Topic 606). In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments In January 2016, the FASB issued ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognitions and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01 included the following changes: require equity investments to be measured at fair value with changes in fair value recognized in net income, simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities, eliminate the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements, and clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. This ASU will be effective for the Company for annual periods ending after December 15, 2018. The adoption of this ASU is not expected to have a material impact on the Company’s consolidated financial statements. |
Segment reporting | Segment reporting: |
Securities Available for Sale (
Securities Available for Sale (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of amortized cost and fair values of securities with gross unrealized gains and losses | December 31, 2015 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Residential mortgage-backed agencies $ 20,290 $ 35 $ (183 ) $ 20,142 Small business administration commercial pools 2,572 9 (7 ) 2,574 Obligations of state and political subdivisions 11,442 212 (12 ) 11,642 Government-sponsored enterprise equity 40 52 - 92 $ 34,344 $ 308 $ (202 ) $ 34,450 December 31, 2014 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Residential mortgage-backed agencies $ 22,676 $ 60 $ (191 ) $ 22,545 Small business administration commercial pools 1,835 6 (9 ) 1,832 Obligations of state and political subdivisions 9,474 250 (26 ) 9,698 Government-sponsored enterprise equity 40 62 - 102 $ 34,025 $ 378 $ (226 ) $ 34,177 |
Schedule of amortized cost and fair value by contractual maturity | December 31, 2015 Amortized Fair Value Due in one year or less $ 1,620 $ 1,622 Due in one to five years 4,143 4,175 Due after five through 10 years 4,177 4,295 Due after 10 years 1,502 1,550 11,442 11,642 Residential mortgage-backed agencies 20,291 20,142 SBA commercial pools 2,572 2,574 Government-sponsored enterprise equity 40 92 $ 34,345 $ 34,450 |
Schedule of changes in other comprehensive income-unrealized gains on securities available for sale | Years Ended December 31 2015 2014 Balance, beginning $ 93 $ (264 ) Unrealized gains (losses) during the year (46 ) 605 Deferred tax effect relating to unrealized gains (losses) 19 (248 ) Balance, ending $ 66 $ 93 |
Schedule of unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position | December 31, 2015 Continuous Unrealized Continuous Unrealized Losses Existing Losses Existing 12 Months or Less Greater Than 12 Total Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss Residential mortgage- backed agencies $ 7,975 $ 76 $ 6,075 $ 107 $ 14,050 $ 183 SBA pools 1,126 7 - - 1,126 7 Obligations of states and political subdivisions 2,759 4 925 8 3,684 12 $ 11,860 $ 87 $ 7,000 $ 115 $ 18,860 $ 202 December 31, 2014 Continuous Unrealized Continuous Unrealized Losses Existing Losses Existing 12 Months or Less Greater Than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss Residential mortgage- backed agencies $ 5,679 $ 20 $ 10,566 $ 171 $ 16,245 $ 191 SBA pools - - 1,250 9 1,250 9 Obligations of states and political subdivisions 1,495 6 1,180 20 2,675 26 $ 7,174 $ 26 $ 12,996 $ 200 $ 20,170 $ 226 |
Loans Receivable and Loans He32
Loans Receivable and Loans Held for Sale (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Schedule of composition of loans receivable | December 31 2015 2014 Residential real estate $ 60,161 $ 56,674 Commercial real estate 32,935 30,653 Agricultural real estate 39,271 38,128 Commercial construction real estate 2,264 4,035 Residential construction real estate 1,370 940 Home equity, home improvement and second mortgages 32,645 32,741 Commercial operating and term 9,322 5,718 Agricultural operating and term 12,867 7,714 Vehicle 2,622 1,671 Consumer 6,328 6,279 Total loans 199,785 184,553 Net deferred loan origination fees (202 ) (345 ) Allowance for loan loss (1,988 ) (2,158 ) Loans receivable, net $ 197,595 $ 182,050 |
Schedule of loans receivable | December 31, 2015 Loans Past 30–59 Days 60–89 Days Due 90 Days Total Current Past Due Past Due or More Past Due Total Residential real estate $ 57,608 $ 857 $ 194 $ 1,502 $ 2,553 $ 60,161 Commercial real estate 32,935 - - - - 32,935 Agricultural real estate 38,884 - - 387 387 39,271 Commercial construction real estate 2,264 - - - - 2,264 Residential construction real estate 1,370 - - - - 1,370 Home equity, home improvement and second mortgages 31,892 597 79 77 753 32,645 Commercial operating and term 9,061 154 36 71 261 9,322 Agricultural operating and term 12,860 7 - - 7 12,867 Vehicle 2,591 12 3 16 31 2,622 Consumer 6,304 16 8 24 6,328 Total loans $ 195,769 $ 1,643 $ 312 $ 2,061 $ 4,016 $ 199,785 Nonperforming loans $ - $ - $ - $ 2,061 $ 2,061 $ 2,061 December 31, 2014 Loans Past 30–59 Days 60–89 Days Due 90 Days Total Current Past Due Past Due or More Past Due Total Residential real estate $ 54,699 $ 781 $ 507 $ 687 $ 1,975 $ 56,674 Commercial real estate 30,653 - - - - 30,653 Agricultural real estate 37,843 285 - - 285 38,128 Commercial construction real estate 4,035 - - - - 4,035 Residential construction real estate 940 - - - - 940 and second mortgages 32,291 193 2 255 450 32,741 Commercial operating and term 5,569 82 - 67 149 5,718 Agricultural operating and term 7,674 40 - - 40 7,714 Vehicle 1,661 8 1 1 10 1,671 Consumer 6,243 26 10 - 36 6,279 Total loans $ 181,608 $ 1,415 $ 520 $ 1,010 $ 2,945 $ 184,553 Nonperforming loans $ - $ - $ - $ 1,010 $ 1,010 $ 1,010 |
Schedule of non-accrual loans | December 31, 2015 Loans Past Due 90 Days or More Nonaccrual and Still Residential real estate $ 1,502 $ - Agricultural real estate 386 - Home equity, home improvement and second mortgages 78 - Commercial operating and term 71 - Vehicle 16 - Consumer 8 - Total $ 2,061 $ - December 31, 2014 Loans Past Due 90 Days or More Nonaccrual and Still Residential real estate $ 687 $ - Home equity, home improvement and second mortgages 255 - Commercial operating and term 67 - Vehicle 1 - Total $ 1,010 $ - |
Schedule of credit quality indicators | December 31, 2015 Special Pass Mention Substandard Doubtful Total Commercial real estate $ 29,952 $ 1,558 $ 1,425 $ - $ 32,935 Agricultural real estate 38,913 358 - - 39,271 Commercial construction real estate 2,264 - - - 2,264 Commercial operating and term 9,221 57 44 - 9,322 Agricultural operating and term 12,867 - - - 12,867 Total $ 93,217 $ 1,973 $ 1,469 $ - $ 96,659 December 31, 2014 Special Pass Mention Substandard Doubtful Total Commercial real estate $ 26,449 $ 3,556 $ 648 $ - $ 30,653 Agricultural real estate 38,128 - - - 38,128 Commercial construction real estate 4,035 - - - 4,035 Commercial operating and term 5,426 - 292 - 5,718 Agricultural operating and term 7,714 - - - 7,714 Total $ 81,752 $ 3,556 $ 940 $ - $ 86,248 |
Schedule of troubled debt restructurings by class of loans | Year Ended December 31, 2015 Premodification Postmodification Number of Outstanding Outstanding Contracts Recorded Investment Recorded Investment Total debt restructuring: Residential real estate 3 $ 368 $ 368 Modified payment terms Year Ended December 31, 2014 Premodification Postmodification Number of Outstanding Outstanding Contracts Recorded Investment Recorded Investment Total debt restructuring: Residential real estate 1 $ 46 $ 46 Modified payment terms and interest rates |
Schedule of impaired loans | December 31, 2015 Unpaid Allowance for Average Interest Principal Recorded Loan Losses Recorded Income Balance Investment Allocated Investment Recognized With no related allowance recorded: Residential real estate $ 463 $ 463 $ - $ 491 $ 24 Commercial real estate 575 575 - 648 21 With an allowance recorded: Residential real estate 499 499 86 534 36 Commercial real estate 1,531 1,531 287 1,551 57 Home equity, home improvement and second mortgages 31 31 31 32 2 Commercial operating and term 54 54 27 67 3 Vehicle and Consumer 11 11 9 9 - Total $ 3,164 $ 3,164 $ 440 $ 3,332 $ 143 December 31, 2014 Unpaid Allowance for Average Interest Principal Recorded Loan Losses Recorded Income Balance Investment Allocated Investment Recognized With no related allowance recorded: Residential real estate $ 461 $ 461 $ - $ 505 $ 27 With an allowance recorded: Residential real estate 822 822 115 830 34 Commercial real estate 2,637 2,637 341 2,690 99 Home equity, home improvement and second mortgages 73 73 73 74 2 Commercial operating and term 63 63 32 - 2 Vehicle and Consumer 16 16 12 16 2 Total $ 4,072 $ 4,072 $ 573 $ 4,115 $ 166 |
Schedule of allowance for loan losses | Year Ended December 31, 2015 Balance, Balance, Beginning Charge-offs Recoveries Provision Ending Residential real estate $ 545 $ - $ - $ (88 ) $ 457 Commercial real estate 722 - - (163 ) 559 Agricultural real estate 155 - - 43 198 Commercial construction real estate 12 - - - 12 Residential construction real estate 13 - - (6 ) 7 Home equity, home improvement and second mortgages 431 (125 ) 22 66 394 Commercial operating and term 109 (159 ) - 251 201 Agricultural operating and term 31 - - 28 59 Vehicle 28 - 4 (6 ) 26 Consumer 112 (81 ) 99 (55 ) 75 Total $ 2,158 $ (365 ) $ 125 $ 70 $ 1,988 Year Ended December 31, 2014 Balance, Balance, Beginning Charge-offs Recoveries Provision Ending Residential real estate $ 433 $ (6 ) $ 11 $ 107 $ 545 Commercial real estate 624 - 7 91 722 Agricultural real estate 130 - - 25 155 Commercial construction real estate 2 - - 10 12 Residential construction real estate 11 - - 2 13 Home equity, home improvement and second mortgages 254 (183 ) 39 321 431 Commercial operating and term 87 (1 ) - 23 109 Agricultural operating and term 18 - - 13 31 Vehicle 30 - 3 (5 ) 28 Consumer 135 (28 ) 72 (67 ) 112 Total $ 1,724 $ (218 ) $ 132 $ 520 $ 2,158 |
Schedule of allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method | December 31, 2015 Individually Collectively Evaluated Evaluated Impairment Impairment Total Allowance for loan losses: Residential real estate $ 86 $ 371 $ 457 Commercial real estate 287 272 559 Agricultural real estate - 198 198 Commercial construction real estate - 12 12 Residential construction real estate - 7 7 Home equity, home improvement/second mortgages 31 363 394 Commercial operating and term 27 174 201 Agricultural operating and term - 59 59 Vehicle 2 24 26 Consumer 7 68 75 Total $ 440 $ 1,548 $ 1,988 December 31, 2015 Individually Collectively Evaluated Evaluated Impairment Impairment Total Loans: Residential real estate $ 962 $ 59,199 $ 60,161 Commercial real estate 2,106 30,829 32,935 Agricultural real estate - 39,271 39,271 Commercial construction real estate - 2,264 2,264 Residential construction real estate - 1,370 1,370 Home equity, home improvement/second mortgages - 32,645 32,645 Commercial operating and term 31 9,291 9,322 Agricultural operating and term 54 12,813 12,867 Vehicle 2 2,620 2,622 Consumer 9 6,319 6,328 Total $ 3,164 $ 196,621 $ 199,785 December 31, 2014 Individually Collectively Evaluated Evaluated Impairment Impairment Total Allowance for loan losses: Residential real estate $ 115 $ 430 $ 545 Commercial real estate 341 381 722 Agricultural real estate - 155 155 Commercial construction real estate - 12 12 Residential construction real estate - 13 13 Home equity, home improvement/second mortgages 73 358 431 Commercial operating and term 32 77 109 Agricultural operating and term - 31 31 Vehicle - 28 28 Consumer 12 100 112 Total $ 573 $ 1,585 $ 2,158 December 31, 2014 Individually Collectively Evaluated Evaluated Impairment Impairment Total Loans: Residential real estate $ 1,283 $ 55,391 $ 56,674 Commercial real estate 2,637 28,016 30,653 Agricultural real estate - 38,128 38,128 Commercial construction real estate - 4,035 4,035 Residential construction real estate - 940 940 Home equity, home improvement/second mortgages 73 32,668 32,741 Commercial operating and term 63 5,655 5,718 Agricultural operating and term - 7,714 7,714 Vehicle - 1,671 1,671 Consumer 16 6,263 6,279 Total $ 4,072 $ 180,481 $ 184,553 |
Loan Servicing (Tables)
Loan Servicing (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Loan Servicing [Abstract] | |
Schedule of mortgage servicing rights | 2015 2014 Balance at beginning of year, net $ 1,886 $ 1,952 Mortgage servicing rights capitalized 343 258 Amortization expense (351 ) (324 ) Valuation provision (15 ) - Balance at end of year, net $ 1,863 $ 1,886 |
Schedule of estimated future amortization expense for mortgage servicing rights | Years Ending December 31, 2016 $ 368 2017 330 2018 294 2019 258 2020 224 Thereafter 389 $ 1,863 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of premises and equipment | December 31 2015 2014 Land $ 515 $ 464 Buildings and improvements 4,931 4,631 Leasehold improvements 473 473 Furniture, fixtures and equipment 3,059 3,018 8,978 8,586 Less accumulated depreciation and amortization 5,610 5,414 $ 3,368 $ 3,172 |
Foreclosed Real Estate (Tables)
Foreclosed Real Estate (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Real Estate [Abstract] | |
Schedule of activity for foreclosed real estate | Years Ended December 31 2015 2014 Balance at beginning of year $ 3,656 $ 4,340 Transfers from loans 262 726 Capitalized expenses - 143 Proceeds from sales (2,049 ) (1,291 ) Charge-offs/write-downs (241 ) (302 ) Net gain (loss) on sales 4 40 Balance at end of year $ 1,632 $ 3,656 |
Schedule of other real estate owned expense | Years Ended December 31 2015 2014 Net gain on sales $ (4 ) $ (40 ) Impairment 241 302 Operating expenses, net of rental income 244 237 $ 481 $ 499 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Deposits [Abstract] | |
Schedule of Deposits | December 31 2015 2014 Demand deposits, noninterest-bearing $ 21,084 $ 16,610 NOW and money market accounts 105,962 95,775 Savings accounts 50,892 42,133 Certificates of deposit 62,012 67,454 $ 239,950 $ 221,972 |
Schedule of maturities of certificate | Years Ending December 31, 2016 $ 39,116 2017 12,157 2018 5,547 2019 5,066 2020 126 $ 62,012 |
Income Tax Matters (Tables)
Income Tax Matters (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income tax | Years Ended December 31 2015 2014 Federal: Current $ 734 $ 599 Deferred 190 (147 ) 924 452 State: Current 257 220 Deferred 63 (49 ) 320 171 Total $ 1,244 $ 623 |
Schedule of income tax expense computed at the statutory federal corporate tax rate | Years Ended December 31 2015 2014 Computed expected tax expense $ 2,148 $ 674 State income taxes, net of federal benefit 208 118 Bargain purchase gain (997 ) - Effect of graduated rates (61 ) (19 ) Other (54 ) (150 ) Income tax expense $ 1,244 $ 623 |
Schedule of deferred income taxes | December 31 2015 2014 Deferred tax assets: Allowance for loan losses $ 795 $ 873 Management stock bonus plan 6 6 Accrued compensation 29 15 Impairment of securities 196 196 Repossessed property 297 664 Unaccreted discount 35 48 Accrual to cash 14 - Other 144 47 Total deferred tax assets 1,516 1,849 Deferred tax liabilities: Premises and equipment 110 99 FHLB stock 130 131 Mortgage servicing rights 745 763 Deferred loan origination fees 25 31 Securities available for sale 39 58 Prepaid expenses 52 77 Accrued real estate taxes 41 40 Other 32 74 Total deferred tax liabilities 1,174 1,273 Net deferred tax assets $ 342 $ 576 |
Equity, Regulatory Capital an38
Equity, Regulatory Capital and Dividend Restrictions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Banking and Thrift [Abstract] | |
Schedule of Bank's compliance with its regulatory capital requirements | Minimum Minimum to Be for Capital Capitalized Under Actual Adequacy Prompt Corrective Amount Percent Amount Percent Amount Percent As of December 31, 2015: Tier I capital (to average assets) $ 28,734 10.48 % $ 10,967 4.00 % $ 13,709 5.00 % Common equity Tier I capital (to risk weighted assets) 28,734 14.56 % 8,884 4.50 % 12,832 6.50 % Tier I capital (to risk weighted assets) 28,734 14.56 % 11,845 6.00 % 15,793 8.00 % Total risk based capital (to risk weighted assets) 30,722 15.56 % 15,793 8.00 % 19,742 10.00 % As of December 31, 2014: Tier I capital (to average assets) 25,380 9.90 % 10,255 4.00 % 12,819 5.00 % Tier I capital (to risk weighted assets) 25,380 13.58 % 7,478 4.00 % 11,217 6.00 % Total capital (to risk weighted assets) 27,566 14.74 % 14,956 8.00 % 18,695 10.00 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted earnings per share | Year Ended December 31, 2015 Weighted-average Per Share Income Shares Amount Basic earnings per share: Net income $ 4,894 770,569 $ 6.35 Effect of dilutive securities: Stock options - 629 Diluted earnings per share: Net income plus assumed conversions $ 4,894 771,198 $ 6.35 Year Ended December 31, 2014 Weighted-average Per Share Income Shares Amount Basic earnings per share: Net income $ 1,303 755,781 $ 1.72 Effect of dilutive securities: Stock options - 1,360 Diluted earnings per share: Net income plus assumed conversions $ 1,303 757,141 $ 1.72 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of stock option activity | Years Ended December 31 2015 2014 Aggregate Weighted- Weighted- Intrinsic Average Average Fixed Options Value Shares Exercise Price Shares Exercise Price Outstanding, beginning of year $ 9 16,950 $ 29.10 27,700 $ 29.29 Granted - - - - Exercised - - (2,850 ) 19.10 Forfeited (7,900 ) 30.00 (7,900 ) 33.38 Outstanding, end of year $ 33 9,050 $ 28.32 16,950 $ 29.10 |
Schedule of stock option outstanding | Exercise Remaining Exercisable Price Contractual Number Intrinsic Date of Award Shares Per Share Life (Years) Exercisable Value March 20, 2007 7,950 $ 29.60 1.2 7,950 $ 19 May 18, 2010 1,100 19.10 4.4 1,100 14 |
Schedule of non-vested share outstanding | Years Ended December 31 2015 2014 Outstanding at beginning of year 1,781 2,618 Granted - - Forfeited - - Vested (544 ) (837 ) Outstanding at end of year 1,237 1,781 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum rental payments | Years Ending December 31, Rental Data 2016 $ 70 $ 686 2017 34 601 2018 - 558 2019 - 558 2020 - 140 |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Schedule of purchase gain acquired | July 16, Recognized amounts of identifiable assets acquired and liabilities assumed Fair value of assets acquired Cash $ 1,337 Certificates of deposit 5,616 Securities – available for sale 995 Loans 17,506 Premises and equipment 366 Real estate owned 35 Accrued interest and other assets 131 Core deposit intangible 208 Total assets acquired $ 26,194 Fair value of liabilities assumed Deposits $ 23,043 Deferred tax liability 238 Accrued interest and other liabilities 65 Total liabilities assumed $ 23,346 Net assets acquired $ 2,848 |
Schedule of composition of the acquired loans | Contractual Fair Value Fair Value Residential real estate $ 6,480 $ 74 $ 6,554 Revolving, open end residential real estate 336 (1 ) 335 Agricultural real estate 5,437 57 5,494 Agricultural operating and term 2,588 2 2,590 Commercial real estate 1,262 2 1,264 Automobile loans 721 (8 ) 713 Other consumer 602 (46 ) 556 Total $ 17,426 $ 80 $ 17,506 |
Schedule of pro forma financial information assuming acquisition | Years Ended 2015 2014 Revenues (interest and noninterest income) $ 13,815 $ 13,026 Net income $ 2,081 $ 1,356 Diluted net income per share $ 2.43 $ 1.62 Diluted weighted-average shares $ 2.43 $ 1.62 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets measured at fair value on a recurring basis segregated by fair value hierarchy level | December 31, 2015 Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value Recurring: Investment securities available for sale: Residential mortgage-backed securities $ - $ 20,142 $ - $ 20,142 SBA pools - 2,574 - 2,574 Obligations of states and political subdivisions - 11,642 - 11,642 Government-sponsored enterprise equity Securities - 92 - 92 Redeemable common stock - - (2,881 ) (2,881 ) Nonrecurring: Foreclosed real estate - - 1,632 1,632 Collateral-dependent impaired loans - - 1,685 1,685 December 31, 2014 Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value Recurring: Investment securities available for sale: Residential mortgage-backed securities $ - $ 22,545 $ - $ 22,545 SBA pools - 1,832 - 1,832 Obligations of states and political subdivisions - 9,698 - 9,698 Government-sponsored enterprise equity Securities - 102 - 102 Redeemable common stock - - (2,533 ) (2,533 ) Nonrecurring: Foreclosed real estate - - 3,656 3,656 Collateral-dependent impaired loans - - 3,002 3,002 Mortgage servicing rights - 646 - 646 |
Schedule of quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis | Balance as of December 31, 2013 $ 2,342 Change in fair value related to redeemable common stock 191 Balance as of December 31, 2014 2,533 Purchase of shares by the Company (267 ) Change in fair value related to redeemable common stock 615 Balance as of December 31, 2015 $ 2,881 |
Schedule of estimated fair values of the company's financial instruments | December 31 2015 2014 Level in Fair Carrying Fair Carrying Fair Financial assets: Cash and cash equivalents Level 1 $ 12,059 $ 12,059 $ 14,373 $ 14,373 Certificates of deposit Level 2 9,543 9,543 4,181 4,181 Federal funds sold Level 2 9,100 9,100 2,000 2,000 Securities available for sale Level 2 34,450 34,450 34,177 34,177 FHLB stock Level 2 1,986 1,986 2,079 2,079 Loans held for sale Level 2 1,337 1,337 1,707 1,707 Loans receivable, net Level 2 197,595 199,971 182,050 183,219 Accrued interest receivable Level 2 1,020 1,020 834 834 Mortgage servicing rights Level 2 1,863 2,293 1,886 2,578 Financial liabilities: Deposits Level 2 239,950 232,350 221,972 215,199 Advances from borrowers for taxes and insurance Level 2 2,646 2,646 2,630 2,630 Accrued interest payable Level 2 12 12 17 17 |
Additional Cash Flow Informat44
Additional Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Additional Cash Flow Elements [Abstract] | |
Schedule of additional cash flow information | Years Ended December 31 2015 2014 Cash flows from securities: Available-for-sale securities Maturities and calls $ 7,658 $ 12,435 Sale of securities - 3,155 Purchases (7,283 ) (7,803 ) $ 375 $ 7,787 Supplemental disclosures of cash flow information: Cash payments for: Interest $ 455 $ 586 Income taxes 1,155 460 Supplemental schedule of noncash investing and financing activities: Loans originated in sale of foreclosed real estate $ 118 $ 223 Foreclosed real estate acquired in settlement of loans 262 726 |
Financial Information of Well45
Financial Information of Wells Financial Corp. (Parent Only) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule of Condensed Balance Sheets | Condensed Balance Sheets Assets 2015 2014 Cash $ 2,094 $ 740 Prepaid fees and other assets 166 218 Investment in Wells Federal Bank 29,060 25,661 Total Assets $ 31,320 $ 26,619 Liabilities and Stockholders’ Equity Liabilities $ 20 $ - Mezzanine equity 2,881 2,533 Stockholders’ equity 28,419 24,086 Total liabilities and stockholders’ equity $ 31,320 $ 26,619 |
Schedule of Condensed Statements of Income | Condensed Statements of Income 2015 2014 Compensation and benefits $ 24 $ 22 Other expense 152 49 Loss before income taxes (176 ) (71 ) Income tax benefit 58 13 Net loss before dividends and equity in undistributed income of subsidiary (118 ) (58 ) Dividends from subsidiary 1,600 1,477 Equity in undistributed income of subsidiary 3,412 (116 ) Net income $ 4,894 $ 1,303 |
Schedule of Condensed Statements of Cash Flows | Condensed Statements of Cash Flows 2015 2014 Cash Flows From Operating Activities Net Income $ 4,894 $ 1,303 Adjustments to reconcile net income to net cash provided by operating activities: Stock based compensation 26 - Equity in undistributed net income of subsidiary (3,412 ) 116 Other assets (120 ) (70 ) Other liabilities 20 (17 ) Net cash provided by operating activities 1,408 1,332 Cash Flows From Financing Activities Issuance of shares of common stock 1,007 - Purchase of treasury stock (505 ) (703 ) Dividends paid (556 ) (453 ) Net cash used in financing activities (54 ) (1,156 ) Net increase in cash 1,354 176 Cash and Cash Equivalents Beginning 740 564 Ending $ 2,094 $ 740 |
Summary of Significant Accoun46
Summary of Significant Accounting Policies (Detail Textuals) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||
Federal Home Loan Bank Stock, Par value | $ 100 | |
Core Deposits | ||
Finite-Lived Intangible Assets [Line Items] | ||
Core deposit intangible | 285,000 | $ 145,000 |
Core deposit intangible asset amortization expense | $ 68,000 | $ 13,000 |
Core deposit intangible asset amortization period | 8 years |
Summary of Significant Accoun47
Summary of Significant Accounting Policies (Details Textuals 1) | 12 Months Ended |
Dec. 31, 2015 | |
Bank premises | Minimum | |
Property, Plant and Equipment [Line Items] | |
Tangible asset useful life | 10 years |
Bank premises | Maximum | |
Property, Plant and Equipment [Line Items] | |
Tangible asset useful life | 40 years |
Furniture, fixtures and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Tangible asset useful life | 3 years |
Furniture, fixtures and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Tangible asset useful life | 7 years |
Leasehold improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Tangible asset useful life | 7 years |
Leasehold improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Tangible asset useful life | 10 years |
Summary of Significant Accoun48
Summary of Significant Accounting Policies (Detail Textuals 2) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Loan originated | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Loan commitments outstanding | $ 2,142 |
Summary of Significant Accoun49
Summary of Significant Accounting Policies (Detail Textuals 3) | 12 Months Ended |
Dec. 31, 2015Segment | |
Accounting Policies [Abstract] | |
Number of Reportable Segments | 1 |
Certificates of Deposit (Detail
Certificates of Deposit (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Certificates Of Deposit [Abstract] | ||
Certificates of Deposit, at Carrying Value | $ 9,543 | $ 4,181 |
Certificates of deposit, weighted average yield percent | 1.20% | 0.41% |
Certificates of deposit, contractual maturities | 1 year 7 months 6 days | 6 months |
Securities Available for Sale51
Securities Available for Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 34,344 | $ 34,025 |
Gross Unrealized Gains | 308 | 378 |
Gross Unrealized Losses | (202) | (226) |
Fair Value | 34,450 | 34,177 |
Residential mortgage-backed agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 20,290 | 22,676 |
Gross Unrealized Gains | 35 | 60 |
Gross Unrealized Losses | (183) | (191) |
Fair Value | 20,142 | 22,545 |
Small business administration commercial pools | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,572 | 1,835 |
Gross Unrealized Gains | 9 | 6 |
Gross Unrealized Losses | (7) | (9) |
Fair Value | 2,574 | 1,832 |
Obligations of state and political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 11,442 | 9,474 |
Gross Unrealized Gains | 212 | 250 |
Gross Unrealized Losses | (12) | (26) |
Fair Value | 11,642 | 9,698 |
Government-sponsored enterprise equity | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 40 | 40 |
Gross Unrealized Gains | $ 52 | $ 62 |
Gross Unrealized Losses | ||
Fair Value | $ 92 | $ 102 |
Securities Available for Sale52
Securities Available for Sale (Details 1) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Amortized Cost | ||
Amortized Cost | $ 34,345 | |
Fair Value | ||
Fair Value | 34,450 | $ 34,177 |
Obligations of states and political subdivisions | ||
Amortized Cost | ||
Due in one year or less | 1,620 | |
Due in one to five years | 4,143 | |
Due after five through 10 years | 4,177 | |
Due after 10 years | 1,502 | |
Amortized Cost | 11,442 | |
Fair Value | ||
Due in one year or less | 1,622 | |
Due in one to five years | 4,175 | |
Due after five through 10 years | 4,295 | |
Due after 10 years | 1,550 | |
Fair Value | 11,642 | 9,698 |
Residential mortgage-backed agencies | ||
Amortized Cost | ||
Amortized Cost | 20,291 | |
Fair Value | ||
Fair Value | 20,142 | 22,545 |
SBA commercial pools | ||
Amortized Cost | ||
Amortized Cost | 2,572 | |
Fair Value | ||
Fair Value | 2,574 | 1,832 |
Government-sponsored enterprise equity | ||
Amortized Cost | ||
Amortized Cost | 40 | |
Fair Value | ||
Fair Value | $ 92 | $ 102 |
Securities Available for Sale53
Securities Available for Sale (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning | $ 93 | $ (264) |
Unrealized gains (losses) during the year | (46) | 605 |
Deferred tax effect relating to unrealized gains (losses) | 19 | (248) |
Balance, ending | $ 66 | $ 93 |
Securities Available for Sale54
Securities Available for Sale (Details 3) - Temporarily impaired securities - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Residential mortgage-backed agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Continuous Unrealized Losses Existing 12 Months or Less, Fair Value | $ 7,975 | $ 5,679 |
Continuous Unrealized Losses Existing 12 Months or Less, Unrealized Loss | 76 | 20 |
Continuous Unrealized Losses Existing Greater Than 12 Months, Fair Value | 6,075 | 10,566 |
Continuous Unrealized Losses Existing Greater Than 12 Months, Unrealized Loss | 107 | 171 |
Total Fair Value | 14,050 | 16,245 |
Total Unrealized Loss | 183 | $ 191 |
SBA pools | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Continuous Unrealized Losses Existing 12 Months or Less, Fair Value | 1,126 | |
Continuous Unrealized Losses Existing 12 Months or Less, Unrealized Loss | $ 7 | |
Continuous Unrealized Losses Existing Greater Than 12 Months, Fair Value | $ 1,250 | |
Continuous Unrealized Losses Existing Greater Than 12 Months, Unrealized Loss | 9 | |
Total Fair Value | $ 1,126 | 1,250 |
Total Unrealized Loss | 7 | 9 |
Obligations of states and political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Continuous Unrealized Losses Existing 12 Months or Less, Fair Value | 2,759 | 1,495 |
Continuous Unrealized Losses Existing 12 Months or Less, Unrealized Loss | 4 | 6 |
Continuous Unrealized Losses Existing Greater Than 12 Months, Fair Value | 925 | 1,180 |
Continuous Unrealized Losses Existing Greater Than 12 Months, Unrealized Loss | 8 | 20 |
Total Fair Value | 3,684 | 2,675 |
Total Unrealized Loss | $ 12 | $ 26 |
Securities Available for Sale55
Securities Available for Sale (Detail Textuals) $ in Thousands | Dec. 31, 2015USD ($)Security | Dec. 31, 2014USD ($)Security |
Investments, Debt and Equity Securities [Abstract] | ||
Pledged securities carrying value | $ | $ 22,127 | $ 20,961 |
Number of securities in unrealized loss positions | Security | 37 | 37 |
Loans Receivable and Loans He56
Loans Receivable and Loans Held for Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan loss | $ (1,988) | $ (2,158) | |
Loans receivable, net | 197,595 | 182,050 | |
Loans receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 199,785 | 184,553 | |
Net deferred loan origination fees | (202) | (345) | |
Allowance for loan loss | (1,988) | (2,158) | $ (1,724) |
Loans receivable, net | 197,595 | 182,050 | |
Loans receivable | Real estate | Residential | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 60,161 | 56,674 | |
Allowance for loan loss | (457) | (545) | (433) |
Loans receivable | Real estate | Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 32,935 | 30,653 | |
Allowance for loan loss | (559) | (722) | (624) |
Loans receivable | Real estate | Agricultural | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 39,271 | 38,128 | |
Allowance for loan loss | (198) | (155) | (130) |
Loans receivable | Construction real estate | Residential | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 1,370 | 940 | |
Allowance for loan loss | (7) | (13) | (11) |
Loans receivable | Construction real estate | Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 2,264 | 4,035 | |
Allowance for loan loss | (12) | (12) | (2) |
Loans receivable | Home equity, home improvement and second mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 32,645 | 32,741 | |
Allowance for loan loss | (394) | (431) | (254) |
Loans receivable | Operating and term | Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 9,322 | 5,718 | |
Allowance for loan loss | (201) | (109) | (87) |
Loans receivable | Operating and term | Agricultural | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 12,867 | 7,714 | |
Allowance for loan loss | (59) | (31) | (18) |
Loans receivable | Vehicle | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 2,622 | 1,671 | |
Allowance for loan loss | (26) | (28) | (30) |
Loans receivable | Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 6,328 | 6,279 | |
Allowance for loan loss | $ (75) | $ (112) | $ (135) |
Loans Receivable and Loans He57
Loans Receivable and Loans Held for Sale (Details 1) - Loans receivable - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | $ 195,769 | $ 181,608 |
Total past due | 4,016 | 2,945 |
Total | 199,785 | 184,553 |
30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | 1,643 | 1,415 |
60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | 312 | 520 |
Loans Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | 2,061 | $ 1,010 |
Nonperforming loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total past due | 2,061 | |
Total | $ 2,061 | |
Nonperforming loans | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | ||
Nonperforming loans | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | ||
Nonperforming loans | Loans Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | $ 2,061 | $ 1,010 |
Real estate | Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | 57,608 | 54,699 |
Total past due | 2,553 | 1,975 |
Total | 60,161 | 56,674 |
Real estate | Residential | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | 857 | 781 |
Real estate | Residential | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | 194 | 507 |
Real estate | Residential | Loans Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | 1,502 | 687 |
Real estate | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | $ 32,935 | 30,653 |
Total past due | ||
Total | $ 32,935 | $ 30,653 |
Real estate | Commercial | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | ||
Real estate | Commercial | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | ||
Real estate | Commercial | Loans Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | ||
Real estate | Agricultural | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | $ 38,884 | $ 37,843 |
Total past due | 387 | 285 |
Total | $ 39,271 | 38,128 |
Real estate | Agricultural | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | $ 285 | |
Real estate | Agricultural | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | ||
Real estate | Agricultural | Loans Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | $ 387 | |
Construction real estate | Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | $ 1,370 | $ 940 |
Total past due | ||
Total | $ 1,370 | $ 940 |
Construction real estate | Residential | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | ||
Construction real estate | Residential | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | ||
Construction real estate | Residential | Loans Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | ||
Construction real estate | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | $ 2,264 | $ 4,035 |
Total past due | ||
Total | $ 2,264 | $ 4,035 |
Construction real estate | Commercial | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | ||
Construction real estate | Commercial | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | ||
Construction real estate | Commercial | Loans Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | ||
Home equity, home improvement and second mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | $ 31,892 | $ 32,291 |
Total past due | 753 | 450 |
Total | 32,645 | 32,741 |
Home equity, home improvement and second mortgages | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | 597 | 193 |
Home equity, home improvement and second mortgages | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | 79 | 2 |
Home equity, home improvement and second mortgages | Loans Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | 77 | 255 |
Operating and term | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | 9,061 | 5,569 |
Total past due | 261 | 149 |
Total | 9,322 | 5,718 |
Operating and term | Commercial | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | 154 | $ 82 |
Operating and term | Commercial | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | 36 | |
Operating and term | Commercial | Loans Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | 71 | $ 67 |
Operating and term | Agricultural | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | 12,860 | 7,674 |
Total past due | 7 | 40 |
Total | 12,867 | 7,714 |
Operating and term | Agricultural | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | $ 7 | $ 40 |
Operating and term | Agricultural | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | ||
Operating and term | Agricultural | Loans Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | ||
Vehicle | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | $ 2,591 | $ 1,661 |
Total past due | 31 | 10 |
Total | 2,622 | 1,671 |
Vehicle | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | 12 | 8 |
Vehicle | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | 3 | 1 |
Vehicle | Loans Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | 16 | 1 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | 6,304 | 6,243 |
Total past due | 24 | 36 |
Total | 6,328 | 6,279 |
Consumer | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | $ 16 | 26 |
Consumer | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | $ 10 | |
Consumer | Loans Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | $ 8 |
Loans Receivable and Loans He58
Loans Receivable and Loans Held for Sale (Details 2) - Loans receivable - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual | $ 2,061 | $ 1,010 |
Loans Past Due 90 Days or More and Still Accruing | ||
Real estate | Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual | $ 1,502 | $ 687 |
Loans Past Due 90 Days or More and Still Accruing | ||
Real estate | Agricultural | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual | $ 386 | |
Loans Past Due 90 Days or More and Still Accruing | ||
Home equity, home improvement and second mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual | $ 78 | $ 255 |
Loans Past Due 90 Days or More and Still Accruing | ||
Operating and term | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual | $ 71 | $ 67 |
Loans Past Due 90 Days or More and Still Accruing | ||
Vehicle | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual | $ 16 | $ 1 |
Loans Past Due 90 Days or More and Still Accruing | ||
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual | $ 8 | |
Loans Past Due 90 Days or More and Still Accruing |
Loans Receivable and Loans He59
Loans Receivable and Loans Held for Sale (Details 3) - Loans receivable - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 96,659 | $ 86,248 |
Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 93,217 | 81,752 |
Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 1,973 | 3,556 |
Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 1,469 | $ 940 |
Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | ||
Real estate | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 32,935 | $ 30,653 |
Real estate | Commercial | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 29,952 | 26,449 |
Real estate | Commercial | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 1,558 | 3,556 |
Real estate | Commercial | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 1,425 | $ 648 |
Real estate | Commercial | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | ||
Real estate | Agricultural | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 39,271 | $ 38,128 |
Real estate | Agricultural | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 38,913 | $ 38,128 |
Real estate | Agricultural | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 358 | |
Real estate | Agricultural | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | ||
Real estate | Agricultural | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | ||
Construction real estate | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 2,264 | $ 4,035 |
Construction real estate | Commercial | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 2,264 | $ 4,035 |
Construction real estate | Commercial | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | ||
Construction real estate | Commercial | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | ||
Construction real estate | Commercial | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | ||
Operating and term | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 9,322 | $ 5,718 |
Operating and term | Commercial | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 9,221 | $ 5,426 |
Operating and term | Commercial | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 57 | |
Operating and term | Commercial | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 44 | $ 292 |
Operating and term | Commercial | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | ||
Operating and term | Agricultural | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 12,867 | $ 7,714 |
Operating and term | Agricultural | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 12,867 | $ 7,714 |
Operating and term | Agricultural | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | ||
Operating and term | Agricultural | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | ||
Operating and term | Agricultural | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total |
Loans Receivable and Loans He60
Loans Receivable and Loans Held for Sale (Details 4) - Loans receivable - Real estate - Residential $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)Contracts | Dec. 31, 2014USD ($)Contracts | |
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | Contracts | 3 | 1 |
Pre-Modification recorded investment | $ 368 | $ 46 |
Post-Modification recorded investment | $ 368 | $ 46 |
Loans Receivable and Loans He61
Loans Receivable and Loans Held for Sale (Details 5) - Loans receivable - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
With an allowance recorded: | ||
Allowance for Loan Losses Allocated | $ 440 | $ 573 |
Total | ||
Unpaid Principal Balance | 3,164 | 4,072 |
Recorded Investment | 3,164 | 4,072 |
Allowance for Loan Losses Allocated | 440 | 573 |
Average Recorded Investment | 3,332 | 4,115 |
Interest Income Recognized | 143 | 166 |
Real estate | Residential | ||
With no related allowance recorded: | ||
Unpaid Principal Balance | 463 | 461 |
Recorded Investment | 463 | 461 |
Average Recorded Investment | 491 | 505 |
Interest Income Recognized | 24 | 27 |
With an allowance recorded: | ||
Unpaid Principal Balance | 499 | 822 |
Recorded Investment | 499 | 822 |
Allowance for Loan Losses Allocated | 86 | 115 |
Average Recorded Investment | 534 | 830 |
Interest Income Recognized | 36 | 34 |
Total | ||
Allowance for Loan Losses Allocated | 86 | 115 |
Real estate | Commercial | ||
With no related allowance recorded: | ||
Unpaid Principal Balance | 575 | |
Recorded Investment | 575 | |
Average Recorded Investment | 648 | |
Interest Income Recognized | 21 | |
With an allowance recorded: | ||
Unpaid Principal Balance | 1,531 | 2,637 |
Recorded Investment | 1,531 | 2,637 |
Allowance for Loan Losses Allocated | 287 | 341 |
Average Recorded Investment | 1,551 | 2,690 |
Interest Income Recognized | 57 | 99 |
Total | ||
Allowance for Loan Losses Allocated | 287 | 341 |
Home equity, home improvement and second mortgages | ||
With an allowance recorded: | ||
Unpaid Principal Balance | 31 | 73 |
Recorded Investment | 31 | 73 |
Allowance for Loan Losses Allocated | 31 | 73 |
Average Recorded Investment | 32 | 74 |
Interest Income Recognized | 2 | 2 |
Total | ||
Allowance for Loan Losses Allocated | 31 | 73 |
Operating and term | Commercial | ||
With an allowance recorded: | ||
Unpaid Principal Balance | 54 | 63 |
Recorded Investment | 54 | 63 |
Allowance for Loan Losses Allocated | 27 | $ 32 |
Average Recorded Investment | 67 | |
Interest Income Recognized | 3 | $ 2 |
Total | ||
Allowance for Loan Losses Allocated | 27 | 32 |
Vehicle and Consumer | ||
With an allowance recorded: | ||
Unpaid Principal Balance | 11 | 16 |
Recorded Investment | 11 | 16 |
Allowance for Loan Losses Allocated | 9 | 12 |
Average Recorded Investment | $ 9 | 16 |
Interest Income Recognized | 2 | |
Total | ||
Allowance for Loan Losses Allocated | $ 9 | $ 12 |
Loans Receivable and Loans He62
Loans Receivable and Loans Held for Sale (Details 6) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, Beginning | $ 2,158 | |
Provision | 70 | $ 520 |
Balance, Ending | 1,988 | 2,158 |
Loans receivable | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, Beginning | 2,158 | 1,724 |
Charge-offs | (365) | (218) |
Recoveries | 125 | 132 |
Provision | 70 | 520 |
Balance, Ending | 1,988 | 2,158 |
Loans receivable | Real estate | Residential | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, Beginning | $ 545 | 433 |
Charge-offs | (6) | |
Recoveries | 11 | |
Provision | $ (88) | 107 |
Balance, Ending | 457 | 545 |
Loans receivable | Real estate | Commercial | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, Beginning | $ 722 | $ 624 |
Charge-offs | ||
Recoveries | $ 7 | |
Provision | $ (163) | 91 |
Balance, Ending | 559 | 722 |
Loans receivable | Real estate | Agricultural | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, Beginning | $ 155 | $ 130 |
Charge-offs | ||
Recoveries | ||
Provision | $ 43 | $ 25 |
Balance, Ending | 198 | 155 |
Loans receivable | Construction real estate | Residential | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, Beginning | $ 13 | $ 11 |
Charge-offs | ||
Recoveries | ||
Provision | $ (6) | $ 2 |
Balance, Ending | 7 | 13 |
Loans receivable | Construction real estate | Commercial | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, Beginning | $ 12 | $ 2 |
Charge-offs | ||
Recoveries | ||
Provision | $ 10 | |
Balance, Ending | $ 12 | 12 |
Loans receivable | Home equity, home improvement and second mortgages | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, Beginning | 431 | 254 |
Charge-offs | (125) | (183) |
Recoveries | 22 | 39 |
Provision | 66 | 321 |
Balance, Ending | 394 | 431 |
Loans receivable | Operating and term | Commercial | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, Beginning | 109 | 87 |
Charge-offs | $ (159) | $ (1) |
Recoveries | ||
Provision | $ 251 | $ 23 |
Balance, Ending | 201 | 109 |
Loans receivable | Operating and term | Agricultural | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, Beginning | $ 31 | $ 18 |
Charge-offs | ||
Recoveries | ||
Provision | $ 28 | $ 13 |
Balance, Ending | 59 | 31 |
Loans receivable | Vehicle | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, Beginning | $ 28 | $ 30 |
Charge-offs | ||
Recoveries | $ 4 | $ 3 |
Provision | (6) | (5) |
Balance, Ending | 26 | 28 |
Loans receivable | Consumer | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, Beginning | 112 | 135 |
Charge-offs | (81) | (28) |
Recoveries | 99 | 72 |
Provision | (55) | (67) |
Balance, Ending | $ 75 | $ 112 |
Loans Receivable and Loans He63
Loans Receivable and Loans Held for Sale (Details 7) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Allowance for loan losses: | |||
Total | $ 1,988 | $ 2,158 | |
Loans receivable | |||
Allowance for loan losses: | |||
Individually Evaluated for Impairment | 440 | 573 | |
Collectively Evaluated for Impairment | 1,548 | 1,585 | |
Total | 1,988 | 2,158 | $ 1,724 |
Loans: | |||
Individually Evaluated for Impairment | 3,164 | 4,072 | |
Collectively Evaluated for Impairment | 196,621 | 180,481 | |
Total | 199,785 | 184,553 | |
Loans receivable | Real estate | Residential | |||
Allowance for loan losses: | |||
Individually Evaluated for Impairment | 86 | 115 | |
Collectively Evaluated for Impairment | 371 | 430 | |
Total | 457 | 545 | 433 |
Loans: | |||
Individually Evaluated for Impairment | 962 | 1,283 | |
Collectively Evaluated for Impairment | 59,199 | 55,391 | |
Total | 60,161 | 56,674 | |
Loans receivable | Real estate | Commercial | |||
Allowance for loan losses: | |||
Individually Evaluated for Impairment | 287 | 341 | |
Collectively Evaluated for Impairment | 272 | 381 | |
Total | 559 | 722 | 624 |
Loans: | |||
Individually Evaluated for Impairment | 2,106 | 2,637 | |
Collectively Evaluated for Impairment | 30,829 | 28,016 | |
Total | $ 32,935 | $ 30,653 | |
Loans receivable | Real estate | Agricultural | |||
Allowance for loan losses: | |||
Individually Evaluated for Impairment | |||
Collectively Evaluated for Impairment | $ 198 | $ 155 | |
Total | $ 198 | $ 155 | 130 |
Loans: | |||
Individually Evaluated for Impairment | |||
Collectively Evaluated for Impairment | $ 39,271 | $ 38,128 | |
Total | $ 39,271 | $ 38,128 | |
Loans receivable | Construction real estate | Residential | |||
Allowance for loan losses: | |||
Individually Evaluated for Impairment | |||
Collectively Evaluated for Impairment | $ 7 | $ 13 | |
Total | $ 7 | $ 13 | 11 |
Loans: | |||
Individually Evaluated for Impairment | |||
Collectively Evaluated for Impairment | $ 1,370 | $ 940 | |
Total | $ 1,370 | $ 940 | |
Loans receivable | Construction real estate | Commercial | |||
Allowance for loan losses: | |||
Individually Evaluated for Impairment | |||
Collectively Evaluated for Impairment | $ 12 | $ 12 | |
Total | $ 12 | $ 12 | 2 |
Loans: | |||
Individually Evaluated for Impairment | |||
Collectively Evaluated for Impairment | $ 2,264 | $ 4,035 | |
Total | 2,264 | 4,035 | |
Loans receivable | Home equity, home improvement and second mortgages | |||
Allowance for loan losses: | |||
Individually Evaluated for Impairment | 31 | 73 | |
Collectively Evaluated for Impairment | 363 | 358 | |
Total | $ 394 | 431 | 254 |
Loans: | |||
Individually Evaluated for Impairment | 73 | ||
Collectively Evaluated for Impairment | $ 32,645 | 32,668 | |
Total | 32,645 | 32,741 | |
Loans receivable | Operating and term | Commercial | |||
Allowance for loan losses: | |||
Individually Evaluated for Impairment | 27 | 32 | |
Collectively Evaluated for Impairment | 174 | 77 | |
Total | 201 | 109 | 87 |
Loans: | |||
Individually Evaluated for Impairment | 31 | 63 | |
Collectively Evaluated for Impairment | 9,291 | 5,655 | |
Total | $ 9,322 | $ 5,718 | |
Loans receivable | Operating and term | Agricultural | |||
Allowance for loan losses: | |||
Individually Evaluated for Impairment | |||
Collectively Evaluated for Impairment | $ 59 | $ 31 | |
Total | 59 | $ 31 | 18 |
Loans: | |||
Individually Evaluated for Impairment | 54 | ||
Collectively Evaluated for Impairment | 12,813 | $ 7,714 | |
Total | 12,867 | $ 7,714 | |
Loans receivable | Vehicle | |||
Allowance for loan losses: | |||
Individually Evaluated for Impairment | 2 | ||
Collectively Evaluated for Impairment | 24 | $ 28 | |
Total | 26 | $ 28 | 30 |
Loans: | |||
Individually Evaluated for Impairment | 2 | ||
Collectively Evaluated for Impairment | 2,620 | $ 1,671 | |
Total | 2,622 | 1,671 | |
Loans receivable | Consumer | |||
Allowance for loan losses: | |||
Individually Evaluated for Impairment | 7 | 12 | |
Collectively Evaluated for Impairment | 68 | 100 | |
Total | 75 | 112 | $ 135 |
Loans: | |||
Individually Evaluated for Impairment | 9 | 16 | |
Collectively Evaluated for Impairment | 6,319 | 6,263 | |
Total | $ 6,328 | $ 6,279 |
Loans Receivable and Loans He64
Loans Receivable and Loans Held for Sale (Detail Textuals) | 12 Months Ended | |
Dec. 31, 2015USD ($)Contracts | Dec. 31, 2014USD ($)Contracts | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value of loans pledged to secure borrowed funds | $ 102,138,000 | $ 96,740,000 |
Addition to aggregate amounts of loans to related parties | 116,000 | 185,000 |
Aggregate amounts of loans to related parties | 204,000 | 342,000 |
Repayments of loans receivable from related parties | 157,000 | 67,000 |
Reduction in repayments due to officer and director retirements | 97,000 | 191,000 |
Loans held for sale | 1,337,000 | 1,707,000 |
Net gain on derivatives | $ 348,000 | 247,000 |
Agricultural | Real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Maximum loan to value ratios | 60.00% | |
Loans receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Interest income on nonaccrual loans | $ 0 | $ 0 |
Number of loans modified in a troubled debt restructuring that subsequently defaulted | Contracts | 0 | 0 |
Loans receivable | Agricultural | Operating and term | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Maximum lending amount of collateral fair value | 85.00% | |
Loans receivable | Commercial | Construction real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Condition or commercial construction loans o underwrite | based on projected cash flows and value of the construction project, generally up to 80% of cost or appraised value, whichever is less. |
Loan Servicing (Details)
Loan Servicing (Details) - Mortgage servicing rights - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||
Balance at beginning of year, net | $ 1,886 | $ 1,952 |
Mortgage servicing rights capitalized | 343 | 258 |
Amortization expense | (351) | $ (324) |
Valuation provision | (15) | |
Balance at end of period, net | $ 1,863 | $ 1,886 |
Loan Servicing (Details 1)
Loan Servicing (Details 1) - Mortgage servicing rights $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Servicing Asset at Amortized Cost [Line Items] | |
2,016 | $ 368 |
2,017 | 330 |
2,018 | 294 |
2,019 | 258 |
2,020 | 224 |
Thereafter | 389 |
Total | $ 1,863 |
Loan Servicing (Detail Textuals
Loan Servicing (Detail Textuals) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Loan Servicing [Abstract] | ||
Unpaid principal balance of one to four family residential real estate loans | $ 317,047 | $ 332,075 |
Custodial escrow balance | 2,310 | 2,347 |
Estimated fair value of mortgage servicing rights | 2,293 | 2,578 |
Mortgage servicing rights valuation allowance | $ 0 | $ 15 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 8,978 | $ 8,586 |
Less accumulated depreciation and amortization | 5,610 | 5,414 |
Premises and equipment, net | 3,368 | 3,172 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 515 | 464 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 4,931 | 4,631 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 473 | 473 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 3,059 | $ 3,018 |
Foreclosed Real Estate (Details
Foreclosed Real Estate (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Other Real Estate [Roll Forward] | ||
Balance at beginning of year | $ 3,656 | $ 4,340 |
Transfers from loans | 262 | 726 |
Capitalized expenses | 143 | |
Proceeds from sales | 2,049 | 1,291 |
Charge-offs/write-downs | (241) | (302) |
Net gain (loss) on sales | 4 | 40 |
Balance at end of year | $ 1,632 | $ 3,656 |
Foreclosed Real Estate (Detai70
Foreclosed Real Estate (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Real Estate [Abstract] | ||
Net gain on sales | $ (4) | $ (40) |
Impairment | 241 | 302 |
Operating expenses, net of rental income | 244 | 237 |
Foreclosed real estate expenses, total | $ 481 | $ 499 |
Foreclosed Real Estate (Detail
Foreclosed Real Estate (Detail Textuals) $ in Thousands | Dec. 31, 2015Property | Dec. 31, 2014USD ($)Property |
Real Estate [Abstract] | ||
Number of properties in repossession | Property | 0 | 2 |
Carrying amount properties in repossession | $ | $ 128 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deposits [Abstract] | ||
Demand deposits, noninterest-bearing | $ 21,084 | $ 16,610 |
NOW and money market accounts | 105,962 | 95,775 |
Savings accounts | 50,892 | 42,133 |
Certificates of deposit | 62,012 | 67,454 |
Deposits, Total | $ 239,950 | $ 221,972 |
Deposits (Details 1)
Deposits (Details 1) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deposits [Abstract] | ||
2,016 | $ 39,116 | |
2,017 | 12,157 | |
2,018 | 5,547 | |
2,019 | 5,066 | |
2,020 | 126 | |
Certificates of deposit, Total | $ 62,012 | $ 67,454 |
Deposits (Detail Textuals)
Deposits (Detail Textuals) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deposits [Abstract] | ||
Aggregate amount of certificates of deposit over $100,000 | $ 15,243 | $ 15,853 |
Aggregate amount of certificates of deposit over $250,000 | $ 1,053 | $ 826 |
Borrowed Funds (Detail Textuals
Borrowed Funds (Detail Textuals) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Disclosure [Abstract] | ||
Outstanding advances from FHLB of Des Moines | $ 0 | $ 0 |
Maximum borrowing capacity securities and loans pledged from the FHLB of Des Moines | $ 75,032,000 | |
Variable rate revolving credit | 1,500,000 | |
Outstanding balance of notes | $ 0 |
Income Tax Matters (Details)
Income Tax Matters (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Federal: | ||
Current | $ 734 | $ 599 |
Deferred | 190 | (147) |
Federal income tax expense | 924 | 452 |
State: | ||
Current | 257 | 220 |
Deferred | 63 | (49) |
State income tax expense | 320 | 171 |
Total | $ 1,244 | $ 623 |
Income Tax Matters (Details 1)
Income Tax Matters (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Computed expected tax expense | $ 2,148 | $ 674 |
State income taxes, net of federal benefit | 208 | 118 |
Bargain purchase gain | (997) | |
Effect of graduated rates | (61) | (19) |
Other | (54) | (150) |
Total | $ 1,244 | $ 623 |
Income Tax Matters (Details 2)
Income Tax Matters (Details 2) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Allowance for loan losses | $ 795 | $ 873 |
Management stock bonus plan | 6 | 6 |
Accrued compensation | 29 | 15 |
Impairment of securities | 196 | 196 |
Repossessed property | 297 | 664 |
Unaccreted discount | 35 | 48 |
Accrual to cash | 14 | |
Other | 144 | 47 |
Total deferred tax assets | 1,516 | 1,849 |
Deferred tax liabilities: | ||
Premises and equipment | 110 | 99 |
FHLB stock | 130 | 131 |
Mortgage servicing rights | 745 | 763 |
Deferred loan origination fees | 25 | 31 |
Securities available for sale | 39 | 58 |
Prepaid expenses | 52 | 77 |
Accrued real estate taxes | 41 | 40 |
Other | 32 | 74 |
Total deferred tax liabilities | 1,174 | 1,273 |
Net deferred tax assets | $ 342 | $ 576 |
Income Tax Matters (Detail Text
Income Tax Matters (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 35.00% |
Deferred tax liabilities relating to the St. James acquisition | $ 241 | |
Deferred tax assets, securities available for sale | 494 | |
Deferred tax expense | 253 | |
Amount of pre-1987 allowance for loan losses | 2,211 | |
Unrecorded deferred income tax liability | $ 884 |
Equity, Regulatory Capital an80
Equity, Regulatory Capital and Dividend Restrictions (Details) - Wells Federal Bank - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier I capital (to average assets), Actual Amount | $ 28,734 | $ 25,380 |
Tier I capital (to average assets), Minimum for Capital Adequacy Purposes, Amount | 10,967 | 10,255 |
Tier I capital (to average assets), Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 13,709 | $ 12,819 |
Tier I capital (to average assets), Actual Percent | 10.48% | 9.90% |
Tier I capital (to average assets), Minimum for Capital Adequacy Purposes, Percent | 4.00% | 4.00% |
Tier I capital (to average assets), Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Percent | 5.00% | 5.00% |
Common equity Tier I capital (to risk weighted assets), Actual Amount | $ 28,734 | |
Common equity Tier I capital (to risk weighted assets), Minimum for Capital Adequacy Purposes, Amount | 8,884 | |
Common equity Tier I capital (to risk weighted assets), Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 12,832 | |
Common equity Tier I capital (to risk weighted assets), Actual Percent | 14.56% | |
Common equity Tier I capital (to risk weighted assets), Minimum for Capital Adequacy Purposes, Percent | 4.50% | |
Common equity Tier I capital (to risk weighted assets), Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Percent | 6.50% | |
Tier I capital (to risk weighted assets), Actual Amount | $ 28,734 | $ 25,380 |
Tier I capital (to risk weighted assets), Minimum for Capital Adequacy Purposes, Amount | 11,845 | 7,478 |
Tier I capital (to risk weighted assets), Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 15,793 | $ 11,217 |
Tier I capital (to risk weighted assets), Actual Percent | 14.56% | 13.58% |
Tier I capital (to risk weighted assets), Minimum for Capital Adequacy Purposes, Percent | 6.00% | 4.00% |
Tier I capital (to risk weighted assets), Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Percent | 8.00% | 6.00% |
Total risk based capital (to risk weighted assets), Actual Amount | $ 30,722 | $ 27,566 |
Total risk based capital (to risk weighted assets), Minimum for Capital Adequacy Purposes, Amount | 15,793 | 14,956 |
Total risk based capital (to risk weighted assets), Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 19,742 | $ 18,695 |
Total risk based capital (to risk weighted assets), Actual Percent | 15.56% | 14.74% |
Total risk based capital (to risk weighted assets), Minimum for Capital Adequacy Purposes, Percent | 8.00% | 8.00% |
Total risk based capital (to risk weighted assets), Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Percent | 10.00% | 10.00% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Basic earnings per share: | ||
Net income | $ 4,894 | $ 1,303 |
Weighted average number of shares outstanding, basic (in shares) | 770,569 | 755,781 |
Per share amount, basic (in dollars per share) | $ 6.35 | $ 1.72 |
Effect of dilutive securities: | ||
Stock options (in shares) | 629 | 1,360 |
Diluted earnings per share: | ||
Net income plus assumed conversions | $ 4,894 | $ 1,303 |
Weighted average number of shares outstanding, diluted (in shares) | 771,198 | 757,141 |
Per share amount, diluted (in dollars per share) | $ 6.35 | $ 1.72 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - Wells Financial Corp. 2003 Stock Option Plan - Stock options - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Shares | ||
Outstanding, beginning of year | 16,950 | 27,700 |
Granted | ||
Exercised | (2,850) | |
Forfeited | (7,900) | (7,900) |
Outstanding, end of year | 9,050 | 16,950 |
Weighted- Average Exercise Price | ||
Outstanding, beginning of year | $ 29.10 | $ 29.29 |
Granted | ||
Exercised | $ 19.1 | |
Forfeited | $ 30 | 33.38 |
Outstanding, end of year | $ 28.32 | $ 29.10 |
Aggregate Intrinsic Value | $ 33 | $ 9 |
Employee Benefit Plans (Detai83
Employee Benefit Plans (Details 1) - Wells Financial Corp. 2003 Stock Option Plan - Stock options - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options outstanding, Shares | 9,050 | 16,950 | 27,700 |
Exercise Price Per Share | $ 28.32 | $ 29.10 | $ 29.29 |
March 20, 2007 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options outstanding, Shares | 7,950 | ||
Exercise Price Per Share | $ 29.60 | ||
Remaining Contractual Life (Years) | 1 year 2 months 12 days | ||
Number Exercisable | 7,950 | ||
Exercisable Intrinsic Value | $ 19 | ||
May 18, 2010 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options outstanding, Shares | 1,100 | ||
Exercise Price Per Share | $ 19.10 | ||
Remaining Contractual Life (Years) | 4 years 4 months 24 days | ||
Number Exercisable | 1,100 | ||
Exercisable Intrinsic Value | $ 14 |
Employee Benefit Plans (Detai84
Employee Benefit Plans (Details 2) - Management stock bonus plan - shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Outstanding at beginning of year | 1,781 | 2,618 |
Granted | ||
Forfeited | ||
Vested | (544) | (837) |
Outstanding at end of year | 1,237 | 1,781 |
Employee Benefit Plans (Detail
Employee Benefit Plans (Detail Textuals) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)Hour$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Percentage of maximum annual contribution | 15.00% | |
Discretionary matching contributions | $ | $ 80 | $ 75 |
Percentage of annual discretionary matching contributions | 3.00% | |
Minimum service period required of employees to participate in plan | 1 year | |
Minimum required age of employees to participate in plan | 21 years | |
Minimum working hours required for participation in the plan | Hour | 1,500 | |
Number of shares acquired for Employee stock ownership plan | 6,299 | 7,570 |
Number of shares held by ESOP | 91,459 | 95,602 |
Number of shares allocated to Employee stock ownership plan | 2,505 | 2,839 |
Compensation expense | $ | $ 64 | $ 64 |
Number of shares released for allocation to Employee stock ownership plan participants | 86,135 | 89,304 |
Fair market value per share of Employee stock ownership plan | $ / shares | $ 31.50 | $ 26.50 |
Fair value of unreleased shares | $ | $ 168 | $ 167 |
Period specified for the purchase of ESOP | 5 years |
Employee Benefit Plans (Detai86
Employee Benefit Plans (Detail Textuals 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Wells Financial Corp. 2003 Stock Option Plan | Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares granted to officers, directors, employees and other persons providing services | 120,000 | ||
Maximum term of stock option plan | 10 years | ||
Total intrinsic value of options exercised | $ 25 | ||
Number of options outstanding | 9,050 | 16,950 | 27,700 |
Compensation expense related to awards issued | $ 0 | $ 8 | |
Management stock bonus plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of nonvested awards authorized | 50,000 | ||
Vesting percentage of non vested awards | 25.00% | ||
Number of shares available to be issued | 17,425 | 17,425 | |
Total fair value of stock options vested | $ 18 | $ 17 | |
Compensation expense related to awards issued | 13 | 25 | |
Unrecognized compensation expense | 10 | ||
Expense expected to be recognized in 2016 | 7 | ||
Expense expected to be recognized in 2017 | 3 | ||
Total tax benefit recognized | 11 | 17 | |
Total tax benefit realized on tax returns | $ 17 | $ 21 |
Commitments and Contingencies87
Commitments and Contingencies (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Rental | |
2,016 | $ 70 |
2,017 | $ 34 |
2,018 | |
2,019 | |
2,020 | |
Data Processing | |
2,016 | $ 686 |
2,017 | 601 |
2,018 | 558 |
2,019 | 558 |
2,020 | $ 140 |
Commitments and Contingencies88
Commitments and Contingencies (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Renewal term | 5 years | |
Operating leases, rental expense | $ 159 | $ 172 |
Data processing | $ 965 | $ 962 |
Financial Instruments With Of89
Financial Instruments With Off-Balance-Sheet Risk (Detail Textuals) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Commitments to extend credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments to extend credit on loans total | $ 44,081 | $ 38,110 |
Business Combination (Details)
Business Combination (Details) - St. James $ in Thousands | Jul. 16, 2015USD ($) |
Fair value of assets acquired | |
Cash | $ 1,337 |
Certificates of deposit | 5,616 |
Securities - available for sale | 995 |
Loans | 17,506 |
Premises and equipment | 366 |
Real estate owned | 35 |
Accrued interest and other assets | 131 |
Core deposit intangible | 208 |
Total assets acquired | 26,194 |
Fair value of liabilities assumed | |
Deposits | 23,043 |
Deferred tax liability | 238 |
Accrued interest and other liabilities | 65 |
Total liabilities assumed | 23,346 |
Net assets acquired | $ 2,848 |
Business Combination (Details 1
Business Combination (Details 1) - St. James - Loans receivable $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Business Acquisition [Line Items] | |
Contractual Amount | $ 17,426 |
Fair Value Adjustments | 80 |
Fair Value | 17,506 |
Real estate | Residential | |
Business Acquisition [Line Items] | |
Contractual Amount | 6,480 |
Fair Value Adjustments | 74 |
Fair Value | 6,554 |
Real estate | Revolving, open end residential | |
Business Acquisition [Line Items] | |
Contractual Amount | 336 |
Fair Value Adjustments | (1) |
Fair Value | 335 |
Real estate | Agricultural | |
Business Acquisition [Line Items] | |
Contractual Amount | 5,437 |
Fair Value Adjustments | 57 |
Fair Value | 5,494 |
Real estate | Commercial | |
Business Acquisition [Line Items] | |
Contractual Amount | 1,262 |
Fair Value Adjustments | 2 |
Fair Value | 1,264 |
Operating and term | Agricultural | |
Business Acquisition [Line Items] | |
Contractual Amount | 2,588 |
Fair Value Adjustments | 2 |
Fair Value | 2,590 |
Automobile Loan | |
Business Acquisition [Line Items] | |
Contractual Amount | 721 |
Fair Value Adjustments | (8) |
Fair Value | 713 |
Other Consumer | |
Business Acquisition [Line Items] | |
Contractual Amount | 602 |
Fair Value Adjustments | (46) |
Fair Value | $ 556 |
Business Combination (Details 2
Business Combination (Details 2) - St. James - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Business Combination, Separately Recognized Transactions [Line Items] | ||
Revenues (interest and noninterest income) | $ 13,815 | $ 13,026 |
Net income | $ 2,081 | $ 1,356 |
Diluted net income per share (in dollars per share) | $ 2.43 | $ 1.62 |
Diluted weighted-average shares (in dollars per share) | $ 2.43 | $ 1.62 |
Business Combination (Detail Te
Business Combination (Detail Textuals) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |
Jul. 16, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition [Line Items] | |||
Bargain purchase gain | $ 2,848 | ||
Estimated contractual amounts receivable for loans acquired will not be collected | 79 | ||
Stock issuance costs | 1,147 | ||
Merger costs | $ 332 | $ 334 | |
St. James | |||
Business Acquisition [Line Items] | |||
Percentage of voting shares acquired | 100.00% | ||
Number of common stock sold and issued (in shares) | 78,736 | ||
Share price (in dollars per share) | $ 27.36 | ||
Percentage of discount on average bid | 5.00% | ||
Threshold trading days | 30 days | ||
Percentage acquired by ESOP | 8.00% | ||
Shares issued under Employee Stock Ownership Plan (in shares) | 6,299 | ||
Gross offering proceeds | $ 2,154 | ||
Purchased by employee stock ownership plan | $ 172 | ||
Common stock, shares outstanding | 814,758 |
Concentrations (Detail Textuals
Concentrations (Detail Textuals) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Concentration Risks, Types, No Concentration Percentage [Abstract] | ||
Deposit with United Bankers Bank | $ 13,582 | $ 7,411 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Recurring | Residential mortgage-backed agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Asset (Liability) | $ 20,142 | $ 22,545 |
Recurring | Residential mortgage-backed agencies | Level 1 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Asset (Liability) | ||
Recurring | Residential mortgage-backed agencies | Level 2 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Asset (Liability) | $ 20,142 | $ 22,545 |
Recurring | Residential mortgage-backed agencies | Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Asset (Liability) | ||
Recurring | SBA pools | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Asset (Liability) | $ 2,574 | $ 1,832 |
Recurring | SBA pools | Level 1 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Asset (Liability) | ||
Recurring | SBA pools | Level 2 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Asset (Liability) | $ 2,574 | $ 1,832 |
Recurring | SBA pools | Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Asset (Liability) | ||
Recurring | Obligations of states and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Asset (Liability) | $ 11,642 | $ 9,698 |
Recurring | Obligations of states and political subdivisions | Level 1 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Asset (Liability) | ||
Recurring | Obligations of states and political subdivisions | Level 2 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Asset (Liability) | $ 11,642 | $ 9,698 |
Recurring | Obligations of states and political subdivisions | Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Asset (Liability) | ||
Recurring | Government-sponsored enterprise equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Asset (Liability) | $ 92 | $ 102 |
Recurring | Government-sponsored enterprise equity securities | Level 1 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Asset (Liability) | ||
Recurring | Government-sponsored enterprise equity securities | Level 2 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Asset (Liability) | $ 92 | $ 102 |
Recurring | Government-sponsored enterprise equity securities | Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Asset (Liability) | ||
Recurring | Redeemable common stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Asset (Liability) | $ (2,881) | $ (2,533) |
Recurring | Redeemable common stock | Level 1 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Asset (Liability) | ||
Recurring | Redeemable common stock | Level 2 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Asset (Liability) | ||
Recurring | Redeemable common stock | Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Asset (Liability) | $ (2,881) | $ (2,533) |
Nonrecurring | Foreclosed real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Asset (Liability) | $ 1,632 | $ 3,656 |
Nonrecurring | Foreclosed real estate | Level 1 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Asset (Liability) | ||
Nonrecurring | Foreclosed real estate | Level 2 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Asset (Liability) | ||
Nonrecurring | Foreclosed real estate | Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Asset (Liability) | $ 1,632 | $ 3,656 |
Nonrecurring | Collateral-dependent impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Asset (Liability) | $ 1,685 | $ 3,002 |
Nonrecurring | Collateral-dependent impaired loans | Level 1 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Asset (Liability) | ||
Nonrecurring | Collateral-dependent impaired loans | Level 2 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Asset (Liability) | ||
Nonrecurring | Collateral-dependent impaired loans | Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Asset (Liability) | $ 1,685 | $ 3,002 |
Nonrecurring | Mortgage servicing rights | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Asset (Liability) | $ 646 | |
Nonrecurring | Mortgage servicing rights | Level 1 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Asset (Liability) | ||
Nonrecurring | Mortgage servicing rights | Level 2 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Asset (Liability) | $ 646 | |
Nonrecurring | Mortgage servicing rights | Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Asset (Liability) |
Fair Value Measurements (Deta96
Fair Value Measurements (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | $ 2,533 | $ 2,342 |
Purchase of shares by the Company | (267) | |
Change in fair value related to redeemable common stock | 615 | 191 |
Ending Balance | $ 2,881 | $ 2,533 |
Fair Value Measurements (Deta97
Fair Value Measurements (Details 2) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Financial assets: | ||||
Cash and cash equivalents | $ 12,059 | $ 14,373 | $ 12,625 | |
Certificates of deposit | 9,543 | 4,181 | ||
Federal funds sold | 9,100 | 2,000 | ||
Securities available for sale | 34,450 | 34,177 | ||
FHLB stock | 1,986 | 2,079 | ||
Loans held for sale | 1,337 | 1,707 | ||
Loans receivable, net | 197,595 | 182,050 | ||
Accrued interest receivable | 1,020 | 834 | ||
Mortgage servicing rights | 1,863 | 1,886 | ||
Financial liabilities: | ||||
Deposits | 239,950 | 221,972 | ||
Advances from borrowers for taxes and insurance | 2,646 | 2,630 | ||
Accrued interest payable | 12 | 17 | ||
Fair Value | ||||
Financial assets: | ||||
Cash and cash equivalents | [1] | 12,059 | 14,373 | |
Certificates of deposit | [2] | 9,543 | 4,181 | |
Federal funds sold | [2] | 9,100 | 2,000 | |
Securities available for sale | [2] | 34,450 | 34,177 | |
FHLB stock | [2] | 1,986 | 2,079 | |
Loans held for sale | [2] | 1,337 | 1,707 | |
Loans receivable, net | [2] | 199,971 | 183,219 | |
Accrued interest receivable | [2] | 1,020 | 834 | |
Mortgage servicing rights | [2] | 2,293 | 2,578 | |
Financial liabilities: | ||||
Deposits | [2] | 232,350 | 215,199 | |
Advances from borrowers for taxes and insurance | [2] | 2,646 | 2,630 | |
Accrued interest payable | [2] | $ 12 | $ 17 | |
[1] | Level 1 | |||
[2] | Level 2 |
Additional Cash Flow Informat98
Additional Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Available-for-sale securities | ||
Maturities and calls | $ 7,658 | $ 12,435 |
Sale of securities | 3,155 | |
Purchases | (7,283) | (7,803) |
Cash flows from available-for-sale securities | 375 | 7,787 |
Cash payments for: | ||
Interest | 455 | 586 |
Income taxes | 1,155 | 460 |
Supplemental schedule of noncash investing and financing activities: | ||
Loans originated in sale of foreclosed real estate | 118 | 223 |
Foreclosed real estate acquired in settlement of loans | $ 262 | $ 726 |
Additional Cash Flow Informat99
Additional Cash Flow Information (Detail Textuals) - Frandsen Bank & Trust $ in Thousands | Aug. 15, 2014USD ($) |
Additional Cash Flow Information [Line Items] | |
Loans | $ 6,247 |
Building | 87 |
Deposits | $ 12,428 |
Financial Information of Wel100
Financial Information of Wells Financial Corp. (Parent Only) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets [Abstract] | |||
Cash | $ 12,059 | $ 14,373 | $ 12,625 |
Total assets | 274,779 | 251,826 | |
Liabilities and Stockholders' Equity | |||
Liabilities | 243,479 | 225,207 | |
Redeemable common stock held by ESOP, $0.10 par value, shares issued and outstanding, 91,459 at December 31, 2015; 95,602 at December 31, 2014 | 2,881 | 2,533 | |
Stockholders' equity | 28,419 | 24,086 | 23,741 |
Total liabilities, mezzanine equity and stockholders' equity | 274,779 | 251,826 | |
Wells Financial Corp. and Subsidiary | |||
Assets [Abstract] | |||
Cash | 2,094 | 740 | $ 564 |
Prepaid fees and other assets | 166 | 218 | |
Investment in Wells Federal Bank | 29,060 | 25,661 | |
Total assets | 31,320 | 26,619 | |
Liabilities and Stockholders' Equity | |||
Liabilities | 20 | ||
Redeemable common stock held by ESOP, $0.10 par value, shares issued and outstanding, 91,459 at December 31, 2015; 95,602 at December 31, 2014 | 2,881 | 2,533 | |
Stockholders' equity | 28,419 | 24,086 | |
Total liabilities, mezzanine equity and stockholders' equity | $ 31,320 | $ 26,619 |
Financial Information of Wel101
Financial Information of Wells Financial Corp. (Parent Only) (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Income Statements, Captions [Line Items] | ||
Compensation and benefits | $ 4,770 | $ 4,649 |
Other expense | 2,075 | 1,897 |
Income before income taxes | 6,138 | 1,926 |
Income tax benefit | 1,244 | 623 |
Net income | 4,894 | 1,303 |
Wells Financial Corp. and Subsidiary | ||
Condensed Income Statements, Captions [Line Items] | ||
Compensation and benefits | 24 | 22 |
Other expense | 152 | 49 |
Income before income taxes | (176) | (71) |
Income tax benefit | (58) | (13) |
Net loss before dividends and equity in undistributed income of subsidiary | (118) | (58) |
Dividends from subsidiary | 1,600 | 1,477 |
Equity in undistributed income of subsidiary | 3,412 | (116) |
Net income | $ 4,894 | $ 1,303 |
Financial Information of Wel102
Financial Information of Wells Financial Corp. (Parent Only) (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Flows From Operating Activities | ||
Net income | $ 4,894 | $ 1,303 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock based compensation | 40 | 32 |
Other assets | 608 | (591) |
Net cash provided by operating activities | 3,914 | 1,790 |
Cash Flows From Financing Activities | ||
Issuance of shares of common stock | 1,007 | |
Purchase of treasury stock | (505) | (703) |
Dividends paid | (556) | (453) |
Net cash (used in) provided by financing activities | (5,103) | 6,462 |
Net (decrease) increase in cash and cash equivalents | (2,314) | 1,748 |
Cash and Cash Equivalents | ||
Beginning | 14,373 | 12,625 |
Ending | 12,059 | 14,373 |
Wells Financial Corp. and Subsidiary | ||
Cash Flows From Operating Activities | ||
Net income | 4,894 | $ 1,303 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock based compensation | 26 | |
Equity in undistributed net income of subsidiary | (3,412) | $ 116 |
Other assets | (120) | (70) |
Other liabilities | 20 | (17) |
Net cash provided by operating activities | 1,408 | $ 1,332 |
Cash Flows From Financing Activities | ||
Issuance of shares of common stock | 1,007 | |
Purchase of treasury stock | (505) | $ (703) |
Dividends paid | (556) | (453) |
Net cash (used in) provided by financing activities | (54) | (1,156) |
Net (decrease) increase in cash and cash equivalents | 1,354 | 176 |
Cash and Cash Equivalents | ||
Beginning | 740 | 564 |
Ending | $ 2,094 | $ 740 |
Subsequent Event (Detail Textua
Subsequent Event (Detail Textuals) - Subsequent Event - USD ($) $ / shares in Units, $ in Thousands | Feb. 01, 2016 | Feb. 17, 2016 |
Dividend Declared | ||
Subsequent Event [Line Items] | ||
Dividends Payable, Date Declared | Feb. 17, 2016 | |
Dividends Payable, Date to be Paid | Mar. 28, 2016 | |
Dividends Payable, Date of Record | Mar. 14, 2016 | |
Dividends Payable, Amount Per Share | $ 0.25 | |
Wells Federal Bank | Dividend Paid | ||
Subsequent Event [Line Items] | ||
Dividends Payable | $ 4,200 | |
Dividends Payable, Date to be Paid | Feb. 16, 2016 | |
Wells Federal Bank | 2014 net income | Dividend Paid | ||
Subsequent Event [Line Items] | ||
Dividends Payable | $ 478 | |
Dividend Payable, Percentage | 35.10% | |
Wells Federal Bank | 2015 net income | Dividend Paid | ||
Subsequent Event [Line Items] | ||
Dividends Payable | $ 3,757 | |
Dividend Payable, Percentage | 75.00% |