Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 01, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | PSB HOLDINGS INC /WI/ | ||
Entity Central Index Key | 948368 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -19 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 1,630,228 | ||
Entity Public Float | $49,609,000 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ||
Cash and due from banks | $18,073 | $13,800 |
Interest-bearing deposits and money market funds | 652 | 977 |
Federal funds sold | 6,381 | 16,745 |
Cash and cash equivalents | 25,106 | 31,522 |
Securities available for sale (at fair value) | 74,378 | 61,650 |
Securities held to maturity (fair value of $71,009 and $71,672, respectively) | 69,779 | 71,629 |
Bank certificates of deposit | 3,424 | 2,236 |
Loans held for sale | 100 | 150 |
Loans receivable, net of allowance for loan losses | 525,583 | 509,880 |
Accrued interest receivable | 2,074 | 2,076 |
Foreclosed assets | 1,661 | 1,750 |
Premises and equipment, net | 10,841 | 9,669 |
Mortgage servicing rights, net | 1,738 | 1,696 |
Federal Home Loan Bank stock (at cost) | 2,556 | 2,556 |
Cash surrender value of bank-owned life insurance | 13,230 | 12,826 |
Other assets | 3,897 | 3,901 |
TOTAL ASSETS | 734,367 | 711,541 |
Deposits: | ||
Non-interest-bearing | 114,803 | 102,644 |
Interest-bearing | 508,148 | 474,870 |
Total deposits | 622,951 | 577,514 |
Federal Home Loan Bank advances | 20,271 | 38,049 |
Other borrowings | 10,324 | 20,441 |
Senior subordinated notes | 4,000 | 4,000 |
Junior subordinated debentures | 7,732 | 7,732 |
Accrued expenses and other liabilities | 7,628 | 7,052 |
Total liabilities | 672,906 | 654,788 |
Stockholders' equity | ||
Preferred stock - No par value: Authorized - 30,000 shares; no shares issued or outstanding | ||
Common stock - No par value with a stated value of $1 per share: Authorized - 6,000,000 shares; Issued - 1,830,266 shares Outstanding -1,630,913 and 1,651,518 shares, respectively | 1,830 | 1,830 |
Additional paid-in capital | 6,997 | 6,967 |
Retained earnings | 57,556 | 52,432 |
Accumulated other comprehensive income, net of tax | 637 | 349 |
Treasury stock, at cost - 199,353 and 178,748 shares, respectively | -5,559 | -4,825 |
Total stockholders' equity | 61,461 | 56,753 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $734,367 | $711,541 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Securities held to maturity, fair value | $71,009 | $71,672 |
Preferred stock, par value | ||
Preferred stock, shares authorized | 30,000 | 30,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock,par value | $1 | $1 |
Common stock, shares authorized | 6,000,000 | 6,000,000 |
Common stock, shares issued | 1,830,266 | 1,830,266 |
Common stock, shares outstanding | 1,630,913 | 1,651,518 |
Treasury stock, shares, at cost | 199,353 | 178,748 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest and dividend income: | |||
Loans, including fees | $22,634 | $23,126 | $23,458 |
Securities: | |||
Taxable | 2,398 | 2,098 | 2,402 |
Tax-exempt | 1,504 | 1,511 | 1,293 |
Other interest and dividends | 82 | 81 | 91 |
Total interest and dividend income | 26,618 | 26,816 | 27,244 |
Interest expense: | |||
Deposits | 2,835 | 3,051 | 4,161 |
Federal Home Loan Bank advances | 601 | 1,285 | 1,414 |
Other borrowings | 560 | 650 | 596 |
Senior subordinated notes | 150 | 184 | 578 |
Total interest expense | 4,486 | 5,511 | 7,091 |
Net interest income | 22,132 | 21,305 | 20,153 |
Provision for loan losses | 560 | 4,015 | 785 |
Net interest income after provision for loan losses | 21,572 | 17,290 | 19,368 |
Noninterest income: | |||
Service fees | 1,656 | 1,580 | 1,648 |
Mortgage banking, net | 1,373 | 1,591 | 1,795 |
Investment and insurance sales commissions | 946 | 944 | 736 |
Net gain on sale of securities | 3 | 12 | 0 |
Increase in cash surrender value of bank-owned life insurance | 404 | 402 | 407 |
Gain on bargain purchase | 0 | 0 | 851 |
Other operating income | 1,312 | 1,094 | 1,131 |
Total noninterest income | 5,694 | 5,623 | 6,568 |
Noninterest expense: | |||
Salaries and employee benefits | 9,879 | 9,069 | 9,169 |
Occupancy and facilities | 1,828 | 1,762 | 1,622 |
Loss on foreclosed assets | 233 | 428 | 573 |
Data processing and other office operations | 2,224 | 1,862 | 2,296 |
Advertising and promotion | 376 | 335 | 327 |
FDIC insurance premiums | 523 | 452 | 464 |
Other operating expense | 2,857 | 2,598 | 2,941 |
Total noninterest expense | 17,920 | 16,506 | 17,392 |
Income before income taxes | 9,346 | 6,407 | 8,544 |
Provision for income taxes | 2,906 | 1,663 | 2,535 |
Net income | $6,440 | $4,744 | $6,009 |
Basic earnings per share | $3.90 | $2.87 | $3.61 |
Diluted earnings per share | $3.90 | $2.87 | $3.61 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income | $6,440 | $4,744 | $6,009 |
Other comprehensive income, net of tax: | |||
Unrealized gain (loss) on securities available for sale | 420 | -961 | -191 |
Reclassification adjustment for security gain included in net income | -2 | -7 | 0 |
Amortization of unrealized gain on securities available for sale transferred to securities held to maturity included in net income | -200 | -236 | -274 |
Unrealized gain (loss) on interest rate swap | -44 | 46 | -179 |
Reclassification adjustment of interest rate swap settlements included in earnings | 114 | 113 | 104 |
Other comprehensive income (loss) | 288 | -1,045 | -540 |
Comprehensive income | $6,728 | $3,699 | $5,469 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] |
In Thousands | ||||||
Balance at Dec. 31, 2011 | $50,362 | $1,830 | $7,140 | $44,215 | $1,934 | ($4,757) |
Net income | 6,009 | 6,009 | ||||
Other comprehensive income/loss | -540 | -540 | ||||
Purchase of treasury stock | -262 | -262 | ||||
Proceeds from stock options issued out of treasury | 9 | -6 | 15 | |||
Grants of restricted stock | 0 | -230 | 230 | |||
Vesting of restricted stock | 116 | 116 | ||||
Fractional cash dividends paid with 5% stock dividend | -10 | -10 | ||||
Cash dividends declared | -1,211 | -1,211 | ||||
Cash dividends declared on unvested restricted stock | 26 | -26 | ||||
Balance at Dec. 31, 2012 | 54,447 | 1,830 | 7,020 | 48,977 | 1,394 | -4,774 |
Net income | 4,744 | 4,744 | ||||
Other comprehensive income/loss | -1,045 | -1,045 | ||||
Purchase of treasury stock | -269 | -269 | ||||
Grants of restricted stock | 0 | -218 | 218 | |||
Vesting of restricted stock | 165 | 165 | ||||
Cash dividends declared | -1,263 | -1,263 | ||||
Cash dividends declared on unvested restricted stock | -26 | -26 | ||||
Balance at Dec. 31, 2013 | 56,753 | 1,830 | 6,967 | 52,432 | 349 | -4,825 |
Net income | 6,440 | 6,440 | ||||
Other comprehensive income/loss | 288 | 288 | ||||
Purchase of treasury stock | -913 | -913 | ||||
Grants of restricted stock | 0 | -173 | 173 | |||
Vesting of restricted stock | 203 | 203 | ||||
Directors fees paid in grants of stock | 6 | 0 | 6 | |||
Cash dividends declared | -1,288 | -1,288 | ||||
Cash dividends declared on unvested restricted stock | -28 | -28 | ||||
Balance at Dec. 31, 2014 | $61,461 | $1,830 | $6,997 | $57,556 | $637 | ($5,559) |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividend per share | $0.74 | $0.80 | $0.78 |
Percentage of stock dividend | 5.00% |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income | $6,440 | $4,744 | $6,009 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for depreciation and net amortization | 2,262 | 2,516 | 2,604 |
Provision (benefit) for deferred income taxes | -93 | -33 | 400 |
Provision for loan losses | 560 | 4,015 | 785 |
Deferred net loan origination costs | -417 | -514 | -443 |
Proceeds from sales of loans held for sale | 41,591 | 63,510 | 102,080 |
Originations of loans held for sale | -40,882 | -61,950 | -101,812 |
Gain on sale of loans | -1,047 | -1,373 | -1,918 |
Provision for (recapture of) mortgage servicing rights valuation allowance | 19 | -259 | 199 |
Net loss on sale of premises and equipment | 57 | 0 | 3 |
Realized gain on sale of securities available for sale | -3 | -12 | 0 |
Net loss on sale and provision for write-down of foreclosed assets | 65 | 301 | 443 |
Increase in cash surrender value of bank-owned life insurance | -404 | -402 | -407 |
Gain on bargain purchase | 0 | 0 | -851 |
Changes in operating assets and liabilities: | |||
Accrued interest receivable | 50 | 81 | 313 |
Other assets | 80 | 1,590 | 386 |
Accrued expenses and other liabilities | 757 | 820 | -235 |
Net cash provided by operating activities | 9,035 | 13,034 | 7,556 |
Cash flows from investing activities: | |||
Proceeds from maturities of securities available for sale | 15,606 | 41,824 | 49,290 |
Proceeds from sale of securities available for sale | 1,774 | 986 | 0 |
Proceeds from maturities of securities held to maturity | 5,225 | 6,502 | 10,778 |
Payment for purchase of securities available for sale | -29,710 | -31,241 | -32,368 |
Payment for purchase of securities held to maturity | -3,965 | -8,960 | -11,696 |
Cash acquired on acquisitions | 17,741 | 0 | 14,910 |
Net redemption (net purchase) of bank certificates of deposit | -1,188 | 2,229 | -1,981 |
Net redemption (purchase) of FHLB stock | 0 | -50 | 744 |
Net (increase) decrease in loans | 4,339 | -36,746 | -10,349 |
Capital expenditures | -595 | -334 | -572 |
Proceeds from sale of premises and equipment | 7 | 0 | 0 |
Proceeds from sale of foreclosed assets | 782 | 831 | 1,527 |
Purchase of bank-owned life insurance | 0 | -611 | 0 |
Net cash provided by (used in) investing activities | 10,016 | -25,570 | 20,283 |
Cash flows from financing activities: | |||
Net increase (decrease) in non-interest-bearing deposits | 8,269 | 12,825 | -9,902 |
Net decrease in interest-bearing deposits | -3,612 | -694 | -6,832 |
Net decrease in Federal Home Loan Bank advances | -17,778 | -12,075 | 0 |
Net increase (decrease) in other borrowings | -10,117 | -287 | 1,037 |
Repayment of senior subordinated notes | 0 | -3,000 | 0 |
Dividends declared | -1,316 | -1,289 | -1,247 |
Proceeds from exercise of stock options | 9 | ||
Purchase of treasury stock | -913 | -269 | -262 |
Net cash used in financing activities | -25,467 | -4,789 | -17,197 |
Net increase (decrease) in cash and cash equivalents | -6,416 | -17,325 | 10,642 |
Cash and cash equivalents at beginning | 31,522 | 48,847 | 38,205 |
Cash and cash equivalents at end | 25,106 | 31,522 | 48,847 |
Cash paid during the year for: | |||
Interest | 4,632 | 5,645 | 7,177 |
Income taxes | 2,560 | 759 | 2,146 |
Noncash investing and financing activities: | |||
Loans charged off | 969 | 4,743 | 1,332 |
Loans transferred to foreclosed assets | 801 | 1,342 | 1,295 |
Loans originated on sale of foreclosed properties | 43 | 234 | 490 |
Grants of unvested restricted stock at fair value | 200 | 210 | 200 |
Vesting of restricted stock grants | 203 | 165 | 116 |
Amortization of unrealized gain on securities held to maturity transferred from securities available for sale | $330 | $420 | $452 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1 Summary of Significant Accounting Policies |
Principal Business Activity | |
PSB Holdings, Inc. operates Peoples State Bank (the “Bank”), a full-service financial institution chartered as a Wisconsin commercial bank with nine locations in a primary service area including, but not limited to, Marathon, Oneida, and Vilas counties in Wisconsin. PSB operates as a community bank and provides a variety of retail consumer and commercial banking products, including uninsured investment and insurance products, long-term fixed-rate residential mortgages, and commercial treasury management services. | |
Principles of Consolidation | |
The consolidated financial statements include the accounts of PSB Holdings, Inc. and its subsidiary, Peoples State Bank. Peoples State Bank owns and operates a Nevada subsidiary, PSB Investments, Inc., to manage the Bank’s investment securities. All significant intercompany balances and transactions have been eliminated. The accounting and reporting policies of PSB conform to accounting principles generally accepted in the United States (GAAP) and to the general practices within the banking industry. Any reference to “PSB” refers to the consolidated or individual operations of PSB Holdings, Inc. and its subsidiary, Peoples State Bank. | |
Use of Estimates in Preparation of Financial Statements | |
The preparation of the consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Estimates that are susceptible to significant change include the determination of the allowance for loan losses, mortgage servicing rights assets, and the valuation of investment securities. | |
Cash Equivalents | |
For purposes of reporting cash flows in the consolidated financial statements, cash and cash equivalents include cash and due from banks, interest-bearing deposits and money market funds, and federal funds sold, all of which have original maturities of three months or less. | |
Securities | |
Securities are assigned an appropriate classification at the time of purchase in accordance with management’s intent. Debt securities that management has the positive intent and ability to hold to maturity are classified as held to maturity and recorded at amortized cost. Amortization of the net unrealized gain on securities held to maturity that were transferred from securities available for sale is recognized in other comprehensive income using the interest method over the estimated lives of the securities. Trading securities include those securities bought and held principally for the purpose of selling them in the near future. PSB has no trading securities. Securities not classified as either securities held to maturity or trading securities are considered available for sale and reported at fair value determined from estimates of brokers or other sources. Unrealized gains and losses are excluded from earnings but are reported as other comprehensive income, net of income tax effects. Amortization of premiums and accretion of discounts is recognized in interest income using the interest method over the estimated lives of the securities. | |
Gains and losses on the sale of securities are recorded on the trade date and determined using the specific-identification method. | |
Declines in fair value of securities that are deemed to be other than temporary, if applicable, are reflected in earnings as realized losses. In estimating other-than-temporary impairment losses, management considers the length of time and the extent to which fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of PSB to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. | |
Loans Held for Sale | |
PSB sells substantially all 20- and 30-year long-term fixed-rate single-family mortgage loans and the majority of | |
15-year fixed-rate mortgage loans it originates to the secondary market. The gain or loss associated with sales of single-family mortgage loans is recorded as a component of mortgage banking revenue. | |
Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated market value in the aggregate. Net unrealized losses are recognized through a valuation allowance by charges to income. Gains and losses on the sale of loans held for sale are determined using the specific identification method using quoted market prices. | |
For sales of mortgage loans to the Federal Home Loan Bank (FHLB) prior to 2009, PSB retained a secondary portion of the credit risk on the underlying loans in exchange for a credit enhancement fee. When applicable, PSB records a recourse liability to provide for potential credit losses. PSB also provides representations and warranties regarding all originated loans sold to secondary market buyers including the FHLB and the Federal National Mortgage Association (FNMA). These representations and warranties can lead to additional credit risk for which PSB records a recourse liability. Because the loans involved in these transactions are similar to those in PSB’s loans held for investment, the review of the adequacy of the recourse liability is similar to the review of the adequacy of the allowance for loan losses (refer to “Allowance for Loan Losses”). | |
Loans | |
Loans that management has the intent to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for loan losses, and any deferred fees or costs on originated loans. Interest on loans is credited to income as earned. Interest income is not accrued on loans where management has determined collection of such interest is doubtful or those loans which are past due 90 days or more as to principal or interest payments. When a loan is placed on nonaccrual status, previously accrued but unpaid interest deemed uncollectible is reversed and charged against current income. After being placed on nonaccrual status, additional income is recorded only to the extent that payments are received and the collection of principal becomes reasonably assured. Interest income recognition on loans considered to be impaired is consistent with the recognition on all other loans. | |
Loan origination fees and certain direct loan origination costs are deferred and recognized as an adjustment of the related loan yield using the interest method. | |
Allowance for Loan Losses | |
The allowance for loan losses is established through a provision for loan losses charged to expense. Loans are charged against the allowance for loan losses when management believes the collectability of the principal is unlikely. | |
Management maintains the allowance for loan losses at a level to cover probable credit losses relating to specifically identified loans, as well as probable credit losses inherent in the balance of the loan portfolio. In accordance with current accounting standards, the allowance is provided for losses that have been incurred based on events that have occurred as of the balance sheet date. The allowance is based on past events and current economic conditions and does not include the effects of expected losses on specific loans or groups of loans that are related to future events or expected changes in economic conditions. 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. | |
The allowance for loan losses includes specific allowances related to loans which have been judged to be impaired. A loan is impaired when, based on current information, it is probable that PSB will not collect all amounts due in accordance with the contractual terms of the loan agreement. Management has determined that all loans that have a nonaccrual status or have had their terms restructured, meet this definition. Loans currently maintained on accrual status but expected to be placed on nonaccrual or have their terms restructured in the near term are also considered impaired. Large groups of homogeneous loans, such as mortgage and consumer loans, are not collectively evaluated for impairment. Specific allowances on impaired loans are based on discounted cash flows of expected future payments using the loan’s initial effective interest rate or the fair value of the collateral if the loan is collateral dependent. | |
In addition, various regulatory agencies periodically review the allowance for loan losses. These agencies may require PSB to make additions to the allowance for loan losses based on their judgments of collectability resulting from information available to them at the time of their examination. | |
Foreclosed Assets | |
Real estate and other property acquired through, or in lieu of, loan foreclosure are initially recorded at fair value (after deducting estimated costs to sell) at the date of foreclosure, establishing a new cost basis. Costs related to development and improvement of property are capitalized, whereas costs related to holding property are expensed. After foreclosure, valuations are periodically performed by management, and the real estate or other property is carried at the lower of carrying amount or fair value less estimated costs to sell. Revenue and expenses from operations and changes in any valuation allowance are included in loss on foreclosed assets. | |
Premises and Equipment | |
Premises and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed principally on the straight-line method and is based on the estimated useful lives of the assets varying primarily from 15 to 40 years on buildings, 5 to 10 years on furniture and equipment, and 3 years on computer hardware and software. Maintenance and repair costs are charged to expense as incurred. Gains or losses on disposition of property and equipment are reflected in income. | |
Mortgage Servicing Rights | |
PSB services the single-family mortgages it sells to the FHLB and FNMA. Servicing mortgage loans includes such functions as collecting monthly payments of principal and interest from borrowers, passing such payments through to third-party investors, maintaining escrow accounts for taxes and insurance, and making such payments when they are due. When necessary, servicing mortgage loans also includes functions related to the collection of delinquent principal and interest payments, loan foreclosure proceedings, and disposition of foreclosed real estate. PSB generally earns a servicing fee of 25 basis points (.25% annually) on the outstanding loan balance for performing these services as well as fees and interest income from ancillary sources such as delinquency charges and payment float. Servicing fee income is recorded as a component of mortgage banking revenue, net of the amortization and charges described in the following paragraphs. | |
PSB records originated mortgage servicing rights (OMSR) as a component of mortgage banking income when the obligation to service such loans has been retained. The initial value recorded for OMSR is based on the fair values of the servicing fee adjusted for expected future costs to service the loans, as well as income and fees expected to be received from ancillary sources, as previously described. The carrying value of OMSR is amortized against service fee income in proportion to estimated gross servicing revenues, net of estimated costs of servicing, adjusted for expected prepayments. In addition to this periodic amortization, the carrying value of OMSR associated with loans that actually prepay is also charged against servicing fee income as amortization. During periods of falling long-term interest rates, prepayments would likely accelerate, increasing amortization of existing OMSR against servicing fee income, and impair the value of OMSR as described below. | |
The carrying value of OMSR recorded in PSB’s consolidated balance sheets (“mortgage servicing rights” or MSRs) is subject to impairment because of changes in loan prepayment expectations and in market discount rates used to value the future cash flows associated with such assets. In valuing MSRs, PSB stratifies the loans by year of origination, term of the loan, and range of interest rates within each term. If, based on a periodic evaluation, the estimated fair value of the MSRs related to a particular stratum is determined to be less than its carrying value, a valuation allowance is recorded against such stratum and against PSB’s loan servicing fee income, which is included as a component of mortgage banking revenue. If the periodic evaluation of impairment calls for a valuation allowance less than currently recorded, the decrease in the valuation allowance is recaptured, offsetting amortization from loan prepayments during the period and increasing mortgage banking revenue. The valuation allowance is calculated using the current outstanding principal balance of the related loans, long-term prepayment assumptions as provided by independent sources, a market-based discount rate, and other management assumptions related to future costs to service the loans, as well as ancillary sources of income. | |
Federal Home Loan Bank Stock | |
As a member of the FHLB system, PSB is required to hold stock in the FHLB of Chicago based on the level of borrowings advanced to PSB. This stock is recorded at cost, which approximates fair value. The stock is evaluated for impairment on an annual basis. Transfer of the stock is substantially restricted. | |
Bank-Owned Life Insurance | |
PSB has purchased life insurance policies on certain officers. Bank-owned life insurance is recorded at its cash surrender value. Changes in cash surrender value are recorded in noninterest income. | |
Retirement Plans | |
PSB maintains a defined contribution 401(k) profit sharing plan which covers substantially all full-time employees. | |
Income Taxes | |
Deferred income taxes have been provided under the liability method. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates which will be in effect when these differences are expected to reverse. Deferred tax expense is the result of changes in the deferred tax asset and liability and is a component of the provision for income taxes. | |
PSB may also recognize a liability for unrecognized tax benefits from uncertain tax positions. Unrecognized tax benefits represent the difference between a tax position taken or expected to be taken in a tax return and the benefit recognized and measured in the financial statements. Interest and penalties related to unrecognized benefits are recorded as additional income tax expense. | |
Advertising and Promotional Costs | |
Costs relating to PSB’s advertising and promotion are generally expensed when paid. | |
Derivative Instruments and Hedging Activities | |
All derivative instruments are recorded at their fair values. If derivative instruments are designated as hedges of fair values, both the change in the fair value of the hedge and the hedged item are included in current earnings. Fair value adjustments related to cash flow hedges are recorded in other comprehensive income and reclassified to earnings when the hedged transaction is reflected in earnings. Ineffective portions of hedges are reflected in income. The fair value of derivative instruments is not offset against cash collateral paid to secure those instruments but is reflected as gross amounts outstanding on the consolidated balance sheets. | |
Rate Lock Commitments | |
PSB enters into commitments to originate loans whereby the interest rate on the loan is determined prior to funding (rate lock commitments). Rate lock commitments on mortgage loans that are intended to be sold are considered to be derivatives. Rate lock commitments are recorded at fair value at period-end and classified as other assets on the consolidated balance sheets. Changes in the fair value of rate lock commitments during the period are reflected in the current period’s income statement as mortgage banking income. The fair value of rate lock commitments includes the estimated gain on sale of the loan to the secondary market agency plus the estimated value of OMSR on loans expected to be closed. | |
Fair Values of Financial Instruments | |
Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 23. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. The fair value estimates of existing on- and off-balance-sheet financial instruments do not include the value of anticipated future business or the values of assets and liabilities not considered financial instruments. | |
Segment Information | |
PSB, through the branch network of its banking subsidiary, provides a full range of consumer and commercial banking services to individuals, businesses, governments, and farms in northcentral Wisconsin. These services include demand, time, and savings deposits; safe deposit services; debit and credit cards; notary services; night depository; money orders, traveler’s checks, and cashier’s checks; savings bonds; secured and unsecured consumer, commercial, and real estate loans; ATM processing; cash management; and wealth management. While PSB’s chief decision makers monitor the revenue streams of various PSB products and services, operations are managed and financial performance is evaluated on a companywide basis. Accordingly, all of PSB’s banking operations are considered by management to be aggregated in one reportable operating segment. | |
Stock-Based Compensation | |
PSB uses the fair value based method of accounting for employee stock compensation plans, whereby compensation cost is measured at the grant date based on the value of the award and is recognized as expense over the service period, which is normally the vesting period. | |
Accumulated Other Comprehensive Income (Loss) | |
PSB’s accumulated other comprehensive income (loss) is composed of the unrealized gain (loss) on securities available for sale, net of tax, unrealized gain (loss) on interest rate swaps used for cash flow hedges after reclassification of settlements of the hedged item, net of tax, and unamortized unrealized gain on securities transferred to securities held to maturity from securities available for sale, net of tax, and is shown on the consolidated statements of comprehensive income. | |
Future Accounting Changes | |
FASB ASC Topic 310, Receivables. In January 2014, new authoritative accounting guidance was issued that defined when a lender has obtained physical possession of residential real estate collateral, requiring charge-off of the loan and recognition as foreclosed property. In addition, additional disclosures on the amount of residential real estate included in foreclosed assets as well as the amount of residential loans in the process of foreclosure are required for each period end. These new rules become effective for quarterly periods beginning January 1, 2015. Adoption of this new guidance is not expected to have a significant impact on PSB’s results of operations or financial statements. | |
FASB ASC Topic 606, Revenue from Contracts with Customers. In May 2014, new authoritative accounting guidance was issued that provides guidance on when it is appropriate to recognize customer sales agreements as revenue. This large standard has limited impact on PSB as loans, deposits, and other financial instruments are excluded from the scope of the standard. However sales of foreclosed property and certain noninterest income from contracts with customers, such as insurance contracts, are subject to new rules applied on an individual transaction basis. The standard is effective for quarterly periods beginning January 1, 2017. Adoption of this new guidance is not expected to have a significant impact on PSB’s results of operations or financial statements. | |
Reclassifications | |
Certain prior year balances have been reclassified to conform to the current year presentation. | |
Subsequent Events | |
Management has reviewed PSB’s operations for potential disclosure of information or financial statement impacts related to events occurring after December 31, 2014, but prior to the release of these financial statements. Based on the results of this review, no subsequent event disclosures or financial statement impacts to the recently completed year are required as of the release date. |
Merger_and_Acquisition_Activit
Merger and Acquisition Activity | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Merger and Acquisition Activity [Abstract] | |||||||||||||||||
Merger and Acquisition Activity | NOTE 2 Merger and Acquisition Activity | ||||||||||||||||
Purchase of the Northwoods National Bank of Rhinelander, Wisconsin, a branch of The Baraboo National Bank | |||||||||||||||||
On April 11, 2014, Peoples State Bank, subsidiary of PSB Holdings, Inc., purchased the following assets and assumed liabilities of the Northwoods National Bank, Rhinelander, Wisconsin branch: | |||||||||||||||||
Fair value of assets acquired: | |||||||||||||||||
Cash and due from banks | $ | 17,741 | |||||||||||||||
Loans receivable, including accrued interest | 21,365 | ||||||||||||||||
Premises and equipment | 1,368 | ||||||||||||||||
Core deposit intangible | 231 | ||||||||||||||||
Goodwill | 113 | ||||||||||||||||
Total fair value of assets acquired | $ | 40,818 | |||||||||||||||
Fair value of liabilities assumed: | |||||||||||||||||
Non-interest bearing deposits | $ | 3,890 | |||||||||||||||
Interest-bearing deposits, including accrued interest | 36,912 | ||||||||||||||||
Other liabilities | 16 | ||||||||||||||||
Fair value of liabilities assumed | $ | 40,818 | |||||||||||||||
The core deposit intangible is being amortized over a five year period using a double declining balance method. In the transaction, net cash received by PSB from the seller was reduced by the purchase premium of $654. During 2014, PSB incurred and expensed $371 of non-recurring branch merger and conversion costs with integration of the purchased Northwoods branch, including $224 of data processing conversion costs. | |||||||||||||||||
Purchase of Marathon State Bank | |||||||||||||||||
On June 14, 2012, PSB purchased Marathon State Bank, a privately owned bank with $107 million in total assets located in the village of Marathon City, Wisconsin (“Marathon”). Under the terms of the agreement, PSB paid $5,505 in cash, which was equal to 100% of Marathon’s tangible net book value following a special dividend by Marathon to its shareholders to reduce its book equity ratio to 6% of total assets. The following table outlines the fair value of Marathon assets acquired and liabilities assumed, including determination of the gain on bargain purchase using an accounting date of June 1, 2012. A core deposit intangible was not recorded on the purchase since the fair value calculation determined it was insignificant. | |||||||||||||||||
Cash purchase price | $ | 5,505 | |||||||||||||||
Fair value of assets acquired: | |||||||||||||||||
Cash and due from banks | 20,392 | ||||||||||||||||
Securities available for sale | 50,547 | ||||||||||||||||
Loans receivable | 23,760 | ||||||||||||||||
Short-term commercial paper and bankers’ acceptances | 11,713 | ||||||||||||||||
Foreclosed assets | 0 | ||||||||||||||||
Premises and equipment | 402 | ||||||||||||||||
Core deposit intangible | 0 | ||||||||||||||||
Accrued interest receivable and other assets | 550 | ||||||||||||||||
Total fair value of assets acquired | 107,364 | ||||||||||||||||
Fair value of liabilities assumed: | |||||||||||||||||
Non-interest-bearing deposits | 23,255 | ||||||||||||||||
Interest-bearing deposits | 77,611 | ||||||||||||||||
Accrued interest payable and other liabilities | 142 | ||||||||||||||||
Total fair value of liabilities assumed | 101,008 | ||||||||||||||||
Fair value of net assets acquired | 6,356 | ||||||||||||||||
Gain on bargain purchase | $ | 851 | |||||||||||||||
PSB recorded a total credit markdown of $490 on Marathon’s loan portfolio on the purchase date, or 2.05% of gross purchased loan principal. Purchased impaired loan principal totaled $310 on which a $21 credit write-down was recorded. Due to the insignificant amount of total purchased impaired loans, the entire $490 credit markdown is accreted to income as a yield adjustment based on contractual cash flows over the remaining life of the purchased loans. | |||||||||||||||||
The gain on bargain purchase was due primarily to PSB’s recognition of fair value associated with Marathon’s investment securities and premises and equipment that was not previously recognized by Marathon in its stockholders’ equity, upon which the purchase price was factored. | |||||||||||||||||
Pro forma combined results of operations as if the combination occurred at the beginning of the year-to-date period ended December 31, 2012, are as follows: | |||||||||||||||||
(pro forma combined at beginning of period) | |||||||||||||||||
Net Interest | Noninterest | Net | Earnings | ||||||||||||||
Income | Income | Income | Per Share | ||||||||||||||
PSB Holdings, Inc. | $ | 19,670 | $ | 5,706 | $ | 5,587 | $ | 3.36 | |||||||||
Marathon State Bank | 1,158 | 880 | 468 | 0.28 | |||||||||||||
Pro forma totals | $ | 20,828 | $ | 6,586 | $ | 6,055 | $ | 3.64 |
Cash_and_Cash_Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2014 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | NOTE 3 Cash and Cash Equivalents |
PSB is required to maintain a certain reserve balance, in cash or on deposit with the Federal Reserve Bank, based upon a percentage of transactional deposits. As of December 31, 2014, PSB had a required reserve of $1.064, which was satisfied by cash balances of $1,742. | |
PSB is also required to provide collateral on interest rate swap agreement liabilities with counterparties. The total required collateral on deposit with counterparties before any offset against related swap liabilities was $430 at December 31, 2014, and $570 at December 31, 2013. | |
In the normal course of business, PSB maintains cash and due from bank balances with correspondent banks. PSB also maintains cash balances in money market mutual funds. Such balances are not insured. Total uninsured cash and cash equivalent balances totaled $15,987 and $12,045 at December 31, 2014 and 2013, respectively. | |
Securities
Securities | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Securities [Abstract] | |||||||||||||||||||||||||
SECURITIES | NOTE 4 Securities | ||||||||||||||||||||||||
The amortized cost and estimated fair value of investment securities are as follows: | |||||||||||||||||||||||||
Gross | Gross | Estimated | |||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Securities available for sale | |||||||||||||||||||||||||
U.S. agency issued residential mortgage-backed securities | $ | 45,626 | $ | 834 | $ | 124 | $ | 46,336 | |||||||||||||||||
U.S. agency issued residential collateralized mortgage obligations | 27,031 | 247 | 262 | 27,016 | |||||||||||||||||||||
Privately issued residential collateralized mortgage obligations | 28 | 1 | 0 | 29 | |||||||||||||||||||||
Nonrated SBA loan fund | 950 | 0 | 0 | 950 | |||||||||||||||||||||
Other equity securities | 47 | 0 | 0 | 47 | |||||||||||||||||||||
Totals | $ | 73,682 | 1,082 | 386 | $ | 74,378 | |||||||||||||||||||
Securities held to maturity | |||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 67,836 | $ | 1,517 | $ | 162 | $ | 69,191 | |||||||||||||||||
Nonrated trust preferred securities | 1,543 | 26 | 155 | 1,414 | |||||||||||||||||||||
Nonrated senior subordinated notes | 400 | 4 | 0 | 404 | |||||||||||||||||||||
Totals | $ | 69,779 | $ | 1,547 | $ | 317 | $ | 71,009 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Securities available for sale | |||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 1,001 | $ | 0 | $ | 2 | $ | 999 | |||||||||||||||||
U.S. agency issued residential mortgage-backed securities | 21,388 | 522 | 424 | 21,486 | |||||||||||||||||||||
U.S. agency issued residential collateralized mortgage obligations | 37,998 | 482 | 576 | 37,904 | |||||||||||||||||||||
Privately issued residential collateralized mortgage obligations | 102 | 3 | 0 | 105 | |||||||||||||||||||||
Obligations of states and political subdivision | 159 | 0 | 0 | 159 | |||||||||||||||||||||
Nonrated SBA loan fund | 950 | 0 | 0 | 950 | |||||||||||||||||||||
Other equity securities | 47 | 0 | 0 | 47 | |||||||||||||||||||||
Totals | $ | 61,645 | $ | 1,007 | $ | 1,002 | $ | 61,650 | |||||||||||||||||
Securities held to maturity | |||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 69,704 | $ | 1,059 | $ | 887 | $ | 69,876 | |||||||||||||||||
Nonrated trust preferred securities | 1,524 | 30 | 165 | 1,389 | |||||||||||||||||||||
Nonrated senior subordinated notes | 401 | 6 | 0 | 407 | |||||||||||||||||||||
Totals | $ | 71,629 | $ | 1,095 | $ | 1,052 | $ | 71,672 | |||||||||||||||||
Fair values of securities are estimated based on financial models or prices paid for similar securities. It is possible future interest rates could change considerably resulting in a material change in the estimated fair value. | |||||||||||||||||||||||||
Nonrated trust preferred securities at December 31, 2014 and 2013, consist of separate obligations issued by three holding companies headquartered in Wisconsin. Nonrated senior subordinated notes at December 31, 2014 and 2013, consist of one obligation issued by a Wisconsin state chartered bank. All issues of nonrated trust preferred securities or senior subordinated notes were current as to principal and interest payments as of December 31, 2014 and 2013. | |||||||||||||||||||||||||
The following table indicates the number of months securities that are considered to be temporarily impaired have been in an unrealized loss position at December 31: | |||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Description of Securities | Value | Loss | Value | Loss | Value | Loss | |||||||||||||||||||
2014 | |||||||||||||||||||||||||
Securities available for sale | |||||||||||||||||||||||||
U.S. agency issued residential mortgage-backed securities | $ | 5,555 | $ | 22 | $ | 6,787 | $ | 102 | $ | 12,342 | $ | 124 | |||||||||||||
U.S. agency issued residential collateralized mortgage obligations | 3,267 | 16 | 9,844 | 246 | 13,111 | 262 | |||||||||||||||||||
Totals | $ | 8,822 | $ | 38 | $ | 16,631 | $ | 348 | $ | 25,453 | $ | 386 | |||||||||||||
Securities held to maturity | |||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 4,015 | $ | 38 | $ | 6,103 | $ | 124 | $ | 10,118 | $ | 162 | |||||||||||||
Nonrated trust preferred securities | 0 | 0 | 706 | 155 | 706 | 155 | |||||||||||||||||||
Totals | $ | 4,015 | $ | 38 | $ | 6,809 | $ | 279 | $ | 10,824 | $ | 317 | |||||||||||||
Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Description of Securities | Value | Loss | Value | Loss | Value | Loss | |||||||||||||||||||
2013 | |||||||||||||||||||||||||
Securities available for sale | |||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 999 | $ | 2 | $ | 0 | $ | 0 | $ | 999 | $ | 2 | |||||||||||||
U.S. agency issued residential mortgage-backed securities | 13,206 | 424 | 0 | 0 | 13,206 | 424 | |||||||||||||||||||
U.S. agency issued residential collateralized mortgage obligations | 14,179 | 334 | 5,830 | 242 | 20,009 | 576 | |||||||||||||||||||
Obligations of states and political subdivisions | 159 | 0 | 0 | 0 | 159 | 0 | |||||||||||||||||||
Totals | $ | 28,543 | $ | 760 | $ | 5,830 | $ | 242 | $ | 34,373 | $ | 1,002 | |||||||||||||
Securities held to maturity | |||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 23,017 | $ | 806 | $ | 1,073 | $ | 81 | $ | 24,090 | $ | 887 | |||||||||||||
Non rated trust preferred securities | 368 | 102 | 322 | 63 | 690 | 165 | |||||||||||||||||||
Totals | $ | 23,385 | $ | 908 | $ | 1,395 | $ | 144 | $ | 24,780 | $ | 1,052 | |||||||||||||
At December 31, 2014, 76 debt securities had unrealized losses with aggregate depreciation of 1.90% from the amortized cost basis, compared to 167 debt securities which had unrealized losses with aggregate depreciation of 3.36% from the amortized cost basis at December 31, 2013. These unrealized losses relate principally to an increase in interest rates relative to interest rates in effect at the time of purchase or reclassification from available-for-sale to held-to-maturity classification and are not due to changes in the financial condition of the issuers. However, the unrealized loss on nonrated trust preferred securities is due to an increase in credit spreads for risk on such investments demanded in the market. In analyzing an issuer’s financial condition, management considers whether the securities are issued by a government body or agency, whether a rating agency has downgraded the securities, industry analysts’ reports, and internal review of issuer financial statements. Since management does not intend to sell and has the ability to hold debt securities until maturity (or the foreseeable future for securities available for sale), no declines are deemed to be other than temporary. | |||||||||||||||||||||||||
The amortized cost and estimated fair value of debt securities and nonrated trust preferred securities and senior subordinated notes at December 31, 2014, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||||||||
Available for Sale | Held to Maturity | ||||||||||||||||||||||||
Estimated | Estimated | ||||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | ||||||||||||||||||||||
Cost | Value | Cost | Value | ||||||||||||||||||||||
Due in one year or less | $ | 0 | $ | 0 | $ | 4,568 | $ | 4,588 | |||||||||||||||||
Due after one year through five years | 0 | 0 | 24,288 | 24,885 | |||||||||||||||||||||
Due after five years through ten years | 0 | 0 | 37,826 | 38,531 | |||||||||||||||||||||
Due after ten years | 0 | 0 | 3,097 | 3,005 | |||||||||||||||||||||
Subtotals | 0 | 0 | 69,779 | 71,009 | |||||||||||||||||||||
Mortgage-backed securities and collateralized mortgage obligations | 72,685 | 73,381 | 0 | 0 | |||||||||||||||||||||
Totals | $ | 72,685 | $ | 73,381 | $ | 69,779 | $ | 71,009 | |||||||||||||||||
Securities with a fair value of $46,368 and 47,593 at December 31, 2014 and 2013, respectively, were pledged to secure public deposits, other borrowings, and for other purposes required by law. | |||||||||||||||||||||||||
During 2014, PSB realized a gain of $3 ($2 after tax expense) from proceeds totaling $1,774 on the sale of securities available for sale. During 2013, PSB realized a gain of $12 ($7 after tax expense) from proceeds totaling $986 on the sale of securities available for sale. There were no sales of securities during 2012. | |||||||||||||||||||||||||
During 2014, PSB reclassified $3 ($2 after tax impacts) to reduce comprehensive net income following a gain on sale of securities available for sale. The reduction to comprehensive net income was recognized as a $3 ($2 after tax impacts) gain on sale of securities on the statement of income during the year. During 2013, PSB reclassified $12 ($7 after tax impacts) to reduce comprehensive net income following a gain on sale of securities available for sale. The reduction to comprehensive net income was recognized as a $12 ($7 after tax impacts) gain on sale of securities on the statement of income during the year. | |||||||||||||||||||||||||
During 2010, PSB transferred all of its municipal, trust preferred, and senior subordinated note securities from the available-for-sale classification to the held-to-maturity classification to better reflect its intent and practice to hold these long-term debt securities until maturity. Fair value of the securities was $54,130 at the time of the transfer, which included a $2,552 unrealized gain over the existing amortized cost basis. The original unrealized gain on the transfer date is being amortized against the new cost basis (equal to transfer date fair value) over the remaining life of the securities which is recorded as a reduction to other comprehensive income. Amortization of the unrealized gain reduced comprehensive income by $330 ($200 after tax impacts), $430 ($236 after tax impacts), and $452 ($274 after tax impacts) during the three years ended December 31, 2014. | |||||||||||||||||||||||||
Scheduled amortization at December 31, 2014, of the remaining unrealized gain is as follows: | |||||||||||||||||||||||||
2015 | $ | 274 | |||||||||||||||||||||||
2016 | 194 | ||||||||||||||||||||||||
2017 | 115 | ||||||||||||||||||||||||
2018 | 68 | ||||||||||||||||||||||||
2019 | 22 | ||||||||||||||||||||||||
Thereafter | 22 | ||||||||||||||||||||||||
Total | $ | 695 |
Loans
Loans | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Loans [Abstract] | |||||||||||||||||||||||||||||
Loans | NOTE 5 Loans | ||||||||||||||||||||||||||||
The composition of loans at December 31 categorized by the type of the loan is as follows: | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Commercial, industrial, and municipal | $ | 134,768 | $ | 130,220 | |||||||||||||||||||||||||
Commercial real estate mortgage | 203,501 | 212,850 | |||||||||||||||||||||||||||
Commercial construction and development | 31,364 | 13,672 | |||||||||||||||||||||||||||
Residential real estate mortgage | 128,347 | 123,980 | |||||||||||||||||||||||||||
Residential construction and development | 13,711 | 18,277 | |||||||||||||||||||||||||||
Residential real estate home equity | 23,517 | 20,677 | |||||||||||||||||||||||||||
Consumer and individual | 3,627 | 3,567 | |||||||||||||||||||||||||||
Subtotals – Gross loans | 538,835 | 523,243 | |||||||||||||||||||||||||||
Loans in process of disbursement | (7,145 | ) | (6,895 | ) | |||||||||||||||||||||||||
Subtotals – Disbursed loans | 531,690 | 516,348 | |||||||||||||||||||||||||||
Net deferred loan costs | 302 | 315 | |||||||||||||||||||||||||||
Allowance for loan losses | (6,409 | ) | (6,783 | ) | |||||||||||||||||||||||||
Net loans receivable | $ | 525,583 | $ | 509,880 | |||||||||||||||||||||||||
PSB, in the ordinary course of business, grants loans to its executive officers and directors, including their families and firms in which they are principal owners. All loans to executive officers and directors are made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with others and, in the opinion of management, did not involve more than the normal risk of collectability or present other unfavorable features. Activity in such loans is summarized below: | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Loans outstanding at beginning | $ | 6,663 | $ | 7,371 | |||||||||||||||||||||||||
New loans | 1,500 | 3,519 | |||||||||||||||||||||||||||
Repayments | (1,183 | ) | (4,227 | ) | |||||||||||||||||||||||||
Loans outstanding at end | $ | 6,980 | $ | 6,663 | |||||||||||||||||||||||||
At December 31, 2014 and 2013, PSB had total loans receivable of approximately $5,723 and $4,595, respectively, from one related party. | |||||||||||||||||||||||||||||
Allowance for loan losses activity for the years ended December 31, 2014, 2013, and 2012, follows: | |||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
Commercial | Residential | ||||||||||||||||||||||||||||
Commercial | Real Estate | Real Estate | Consumer | Unallocated | Total | ||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||
Beginning balance | $ | 2,828 | $ | 2,653 | $ | 1,223 | $ | 79 | – | $ | 6,783 | ||||||||||||||||||
Provision (credit) | (716 | ) | (321 | ) | 1,564 | 33 | – | 560 | |||||||||||||||||||||
Recoveries | 4 | 3 | 19 | 9 | – | 35 | |||||||||||||||||||||||
Charge-offs | (215 | ) | (41 | ) | (694 | ) | (19 | ) | – | (969 | ) | ||||||||||||||||||
Ending balance | $ | 1,901 | $ | 2,294 | $ | 2,112 | $ | 102 | – | $ | 6,409 | ||||||||||||||||||
Individually evaluated for impairment | $ | 976 | $ | 511 | $ | 746 | $ | 25 | – | $ | 2,258 | ||||||||||||||||||
Collectively evaluated for impairment | $ | 925 | $ | 1,783 | $ | 1,366 | $ | 77 | – | $ | 4,151 | ||||||||||||||||||
Loans receivable (gross): | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 10,542 | $ | 5,378 | $ | 3,203 | $ | 25 | – | $ | 19,148 | ||||||||||||||||||
Collectively evaluated for impairment | $ | 124,226 | $ | 229,487 | $ | 162,372 | $ | 3,602 | – | $ | 519,687 | ||||||||||||||||||
2013 | |||||||||||||||||||||||||||||
Commercial | Residential | ||||||||||||||||||||||||||||
Commercial | Real Estate | Real Estate | Consumer | Unallocated | Total | ||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||
Beginning balance | $ | 3,014 | $ | 2,803 | $ | 1,511 | $ | 103 | $ | 0 | $ | 7,431 | |||||||||||||||||
Provision (credit) | 3,435 | (9 | ) | 556 | 33 | 0 | 4,015 | ||||||||||||||||||||||
Recoveries | 29 | 33 | 6 | 12 | 0 | 80 | |||||||||||||||||||||||
Charge-offs | (3,650 | ) | (174 | ) | (850 | ) | (69 | ) | 0 | (4,743 | ) | ||||||||||||||||||
Ending balance | $ | 2,828 | $ | 2,653 | $ | 1,223 | $ | 79 | $ | 0 | $ | 6,783 | |||||||||||||||||
Individually evaluated for impairment | $ | 1,167 | $ | 695 | $ | 228 | $ | 18 | $ | 0 | $ | 2,108 | |||||||||||||||||
Collectively evaluated for impairment | $ | 1,661 | $ | 1,958 | $ | 995 | $ | 61 | $ | 0 | $ | 4,675 | |||||||||||||||||
Loans receivable (gross): | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 8,102 | $ | 5,527 | $ | 2,129 | $ | 17 | $ | 0 | $ | 15,775 | |||||||||||||||||
Collectively evaluated for impairment | $ | 122,118 | $ | 220,995 | $ | 160,805 | $ | 3,550 | $ | 0 | $ | 507,468 | |||||||||||||||||
2012 | |||||||||||||||||||||||||||||
Commercial | Residential | ||||||||||||||||||||||||||||
Commercial | Real Estate | Real Estate | Consumer | Unallocated | Total | ||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||
Beginning balance | $ | 3,406 | $ | 3,175 | $ | 1,242 | $ | 118 | $ | 0 | $ | 7,941 | |||||||||||||||||
Provision (credit) | (270 | ) | 142 | 877 | 36 | 0 | 785 | ||||||||||||||||||||||
Recoveries | 6 | 4 | 21 | 6 | 0 | 37 | |||||||||||||||||||||||
Charge-offs | (128 | ) | (518 | ) | (629 | ) | (57 | ) | 0 | (1,332 | ) | ||||||||||||||||||
Ending balance | $ | 3,014 | $ | 2,803 | $ | 1,511 | $ | 103 | $ | 0 | $ | 7,431 | |||||||||||||||||
Individually evaluated for impairment | $ | 1,327 | $ | 674 | $ | 407 | $ | 26 | $ | 0 | $ | 2,434 | |||||||||||||||||
Collectively evaluated for impairment | $ | 1,687 | $ | 2,129 | $ | 1,104 | $ | 77 | $ | 0 | $ | 4,997 | |||||||||||||||||
Loans receivable (gross): | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 5,263 | $ | 4,204 | $ | 2,946 | $ | 26 | $ | 0 | $ | 12,439 | |||||||||||||||||
Collectively evaluated for impairment | $ | 127,370 | $ | 208,096 | $ | 139,636 | $ | 4,689 | $ | 0 | $ | 479,791 | |||||||||||||||||
PSB maintains an independent credit administration staff that continually monitors aggregate commercial loan portfolio and individual borrower credit quality trends. All commercial purpose loans are assigned a credit grade upon origination, and credit grades for nonproblem borrowers with aggregate credit in excess of $500 are reviewed annually. In addition, all past due, restructured, or identified problem loans, both commercial and consumer purpose, are reviewed and assigned an up-to-date credit grade quarterly. | |||||||||||||||||||||||||||||
PSB uses a seven point grading scale to estimate credit risk with risk rating 1, representing the high credit quality, and risk rating 7, representing the lowest credit quality. The assigned credit grade takes into account several credit quality components which are assigned a weight and blended into the composite grade. The factors considered and their assigned weight for the final composite grade is as follows: | |||||||||||||||||||||||||||||
Cash flow (30% weight) – Considers earnings trends and debt service coverage levels. | |||||||||||||||||||||||||||||
Collateral (25% weight) – Considers loan-to-value and other measures of collateral coverage. | |||||||||||||||||||||||||||||
Leverage (15% weight) – Considers balance sheet debt and capital ratios compared to Robert Morris & Associates (RMA) industry medians. | |||||||||||||||||||||||||||||
Liquidity (10% weight) – Considers balance sheet current, quick, and other working capital ratios compared to RMA industry medians. | |||||||||||||||||||||||||||||
Management (5% weight) – Considers the past performance, character, and depth of borrower management. | |||||||||||||||||||||||||||||
Guarantor (5% weight) – Considers the existence of a guarantor along with a bank’s past experience with the guarantor and his related liquidity and credit score. | |||||||||||||||||||||||||||||
Financial reporting (5% weight) – Considers the relative level of independent financial review obtained by the borrower on its financial statements, from audited financial statements down to existence of only tax returns or potentially unreliable financial information. | |||||||||||||||||||||||||||||
Industry (5% weight) – Considers the borrower’s industry and whether it is stable or subject to cyclical or seasonal factors. | |||||||||||||||||||||||||||||
Nonclassified loans are assigned a risk rating of 1 to 4 and have credit quality that ranges from well above average to some inherent industry weaknesses that may present higher than average risk due to conditions affecting the borrower, the borrower’s industry, or economic development. | |||||||||||||||||||||||||||||
Special mention and watch loans are assigned a risk rating of 5 when potential weaknesses exist that deserve management’s close attention. If left uncorrected, the potential weaknesses may result in deterioration of repayment prospects or in credit position at some future date. Substandard loans are assigned a risk rating of 6 and are inadequately protected by the current worth and borrowing capacity of the borrower. Well-defined weaknesses exist that may jeopardize the liquidation of the debt. There is a possibility of some loss if the deficiencies are not corrected. At this point, the loan may still be performing and accruing. | |||||||||||||||||||||||||||||
Impaired and other doubtful loans assigned a risk rating of 7 have all of the weaknesses of a substandard credit plus the added characteristic that the weaknesses make collection or liquidation in full on the basis of current facts, conditions, and collateral values highly questionable and improbable. Impaired loans include all nonaccrual loans and all restructured loans including restructured loans performing according to the restructured terms. In special situations, an impaired loan with a risk rating of 7 could still be maintained on accrual status such as in the case of restructured loans performing according to restructured terms. | |||||||||||||||||||||||||||||
The commercial credit exposure based on internally assigned credit grade at December 31, 2014 and 2013, follows: | |||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
Commercial | Commercial Real Estate | Construction & Development | Agricultural | Government | Total | ||||||||||||||||||||||||
High quality (risk rating 1) | $ | 147 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 147 | |||||||||||||||||
Minimal risk (2) | 26,159 | 19,062 | 785 | 1,937 | 60 | 48,003 | |||||||||||||||||||||||
Average risk (3) | 49,996 | 122,875 | 23,672 | 2,628 | 6,980 | 206,151 | |||||||||||||||||||||||
Acceptable risk (4) | 32,908 | 50,863 | 4,725 | 477 | 291 | 89,264 | |||||||||||||||||||||||
Watch risk (5) | 2,259 | 5,025 | 2,050 | 0 | 0 | 9,334 | |||||||||||||||||||||||
Substandard risk (6) | 384 | 430 | 0 | 0 | 0 | 814 | |||||||||||||||||||||||
Impaired loans (7) | 7,645 | 5,246 | 132 | 122 | 2,775 | 15,920 | |||||||||||||||||||||||
Totals | $ | 119,498 | $ | 203,501 | $ | 31,364 | $ | 5,164 | $ | 10,106 | $ | 369,633 | |||||||||||||||||
2013 | |||||||||||||||||||||||||||||
Commercial | Commercial Real Estate | Construction & Development | Agricultural | Government | Total | ||||||||||||||||||||||||
High quality (risk rating 1) | $ | 44 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 44 | |||||||||||||||||
Minimal risk (2) | 24,085 | 19,249 | 120 | 1,115 | 78 | 44,647 | |||||||||||||||||||||||
Average risk (3) | 51,745 | 145,673 | 8,863 | 2,563 | 6,512 | 215,356 | |||||||||||||||||||||||
Acceptable risk (4) | 26,395 | 34,154 | 2,917 | 424 | 357 | 64,247 | |||||||||||||||||||||||
Watch risk (5) | 8,146 | 7,572 | 1,632 | 0 | 0 | 17,350 | |||||||||||||||||||||||
Substandard risk (6) | 654 | 815 | 0 | 0 | 0 | 1,469 | |||||||||||||||||||||||
Impaired loans (7) | 4,860 | 5,387 | 140 | 152 | 3,090 | 13,629 | |||||||||||||||||||||||
Totals | $ | 115,929 | $ | 212,850 | $ | 13,672 | $ | 4,254 | $ | 10,037 | $ | 356,742 | |||||||||||||||||
The consumer credit exposure based on payment activity at December 31, 2014 and 2013, follows: | |||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
Residential- | Residential- | Construction and | |||||||||||||||||||||||||||
Prime | HELOC | Development | Consumer | Total | |||||||||||||||||||||||||
Performing | $ | 126,035 | $ | 23,117 | $ | 13,220 | $ | 3,602 | $ | 165,974 | |||||||||||||||||||
Impaired loans | 2,312 | 400 | 491 | 25 | 3,228 | ||||||||||||||||||||||||
Totals | $ | 128,347 | $ | 23,517 | $ | 13,711 | $ | 3,627 | $ | 169,202 | |||||||||||||||||||
2013 | |||||||||||||||||||||||||||||
Residential- | Residential- | Construction and | |||||||||||||||||||||||||||
Prime | HELOC | Development | Consumer | Total | |||||||||||||||||||||||||
Performing | $ | 122,408 | $ | 20,167 | $ | 18,230 | $ | 3,550 | $ | 164,355 | |||||||||||||||||||
Impaired loans | 1,572 | 510 | 47 | 17 | 2,146 | ||||||||||||||||||||||||
Totals | $ | 123,980 | $ | 20,677 | $ | 18,277 | $ | 3,567 | $ | 166,501 | |||||||||||||||||||
The payment age analysis of loans receivable disbursed at December 31, 2014 and 2013, follows: | |||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
30-59 | 60-89 | 90+ | Total | Total | 90+ and | ||||||||||||||||||||||||
Loan Class | Days | Days | Days | Past Due | Current | Loans | Accruing | ||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 532 | $ | 49 | $ | 470 | $ | 1,051 | $ | 118,448 | $ | 119,498 | $ | 0 | |||||||||||||||
Agricultural | 0 | 0 | 122 | 122 | 5,042 | 5,164 | 0 | ||||||||||||||||||||||
Government | 0 | 0 | 0 | 0 | 10,106 | 10,106 | 0 | ||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Commercial real estate | 331 | 0 | 793 | 1,124 | 202,376 | 203,501 | 0 | ||||||||||||||||||||||
Construction and development | 81 | 0 | 0 | 81 | 26,044 | 26,125 | 0 | ||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||||||
Residential – Prime | 361 | 321 | 1,184 | 1,866 | 126,481 | 128,347 | 0 | ||||||||||||||||||||||
Residential – HELOC | 79 | 102 | 171 | 352 | 23,165 | 23,517 | 0 | ||||||||||||||||||||||
Construction and development | 111 | 0 | 145 | 256 | 11,549 | 11,805 | 0 | ||||||||||||||||||||||
Consumer | 11 | 4 | 0 | 15 | 3,612 | 3,627 | 0 | ||||||||||||||||||||||
Totals | $ | 1,506 | $ | 476 | $ | 2,885 | $ | 4,867 | $ | 526,823 | $ | 531,690 | $ | 0 | |||||||||||||||
2013 | |||||||||||||||||||||||||||||
30-59 | 60-89 | 90+ | Total | Total | 90+ and | ||||||||||||||||||||||||
Loan Class | Days | Days | Days | Past Due | Current | Loans | Accruing | ||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 284 | $ | 57 | $ | 610 | $ | 951 | $ | 114,978 | $ | 115,929 | $ | 0 | |||||||||||||||
Agricultural | 0 | 0 | 152 | 152 | 4,102 | 4,254 | 0 | ||||||||||||||||||||||
Government | 0 | 0 | 0 | 0 | 10,037 | 10,037 | 0 | ||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Commercial real estate | 376 | 547 | 1,276 | 2,199 | 210,651 | 212,850 | 0 | ||||||||||||||||||||||
Construction and development | 0 | 0 | 0 | 0 | 11,434 | 11,434 | 0 | ||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||||||
Residential – Prime | 369 | 87 | 335 | 791 | 123,189 | 123,980 | 0 | ||||||||||||||||||||||
Residential – HELOC | 45 | 14 | 314 | 373 | 20,304 | 20,677 | 0 | ||||||||||||||||||||||
Construction and development | 37 | 0 | 0 | 37 | 13,583 | 13,620 | 0 | ||||||||||||||||||||||
Consumer | 15 | 10 | 9 | 34 | 3,533 | 3,567 | 0 | ||||||||||||||||||||||
Totals | $ | 1,126 | $ | 715 | $ | 2,696 | $ | 4,537 | $ | 511,811 | $ | 516,348 | $ | 0 | |||||||||||||||
The following is a summary of information pertaining to impaired loans and nonperforming loans: | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Impaired loans without a valuation allowance | $ | 9,021 | $ | 9,303 | $ | 3,410 | |||||||||||||||||||||||
Impaired loans with a valuation allowance | 10,127 | 6,472 | 9,029 | ||||||||||||||||||||||||||
Total impaired loans before valuation allowances | 19,148 | 15,775 | 12,439 | ||||||||||||||||||||||||||
Valuation allowance related to impaired loans | 2,258 | 2,108 | 2,434 | ||||||||||||||||||||||||||
Net impaired loans | $ | 16,890 | $ | 13,667 | $ | 10,005 | |||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Average recorded investment, net of allowance for loan losses | $ | 17,465 | $ | 14,109 | $ | 12,026 | |||||||||||||||||||||||
Interest income recognized | $ | 586 | $ | 534 | $ | 569 | |||||||||||||||||||||||
Interest income recognized on a cash basis on impaired loans | $ | 0 | $ | 0 | $ | 0 | |||||||||||||||||||||||
At December 31, 2014, $204 of funds were committed to be advanced on remaining available lines of credit in connection with impaired loans, while $201 of funds were committed to be advanced on remaining available lines of credit in connection with impaired loans at December 31, 2013. | |||||||||||||||||||||||||||||
Total loans receivable (including nonaccrual impaired loans) maintained on nonaccrual status as of December 31, 2014 and 2013 were $8,371 and $7,340, respectively. There were no loans past due 90 days or more but still accruing income at December 31, 2014 and 2013. | |||||||||||||||||||||||||||||
Detailed information on impaired loans by loan class at December 31, 2014 and 2013, and during the years then ended, follows: | |||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
Unpaid | Average | Interest | |||||||||||||||||||||||||||
Principal | Related | Recorded | Recorded | Income | |||||||||||||||||||||||||
Balance | Allowance | Investment | Investment | Recognized | |||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 2,285 | $ | 0 | $ | 2,235 | $ | 2,549 | $ | 195 | |||||||||||||||||||
Commercial real estate | 2,836 | 0 | 2,577 | 2,476 | 86 | ||||||||||||||||||||||||
Commercial construction and development | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Agricultural | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Government | 2,775 | 0 | 2,775 | 2,933 | 72 | ||||||||||||||||||||||||
Residential – Prime | 1,377 | 0 | 1,281 | 1,074 | 34 | ||||||||||||||||||||||||
Residential – HELOC | 153 | 0 | 153 | 132 | 5 | ||||||||||||||||||||||||
Residential construction and development | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Consumer | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 5,697 | $ | 940 | $ | 5,410 | $ | 3,705 | $ | 162 | |||||||||||||||||||
Commercial real estate | 3,041 | 488 | 2,669 | 2,840 | 7 | ||||||||||||||||||||||||
Commercial construction and development | 135 | 23 | 132 | 136 | 6 | ||||||||||||||||||||||||
Agricultural | 127 | 36 | 122 | 137 | 0 | ||||||||||||||||||||||||
Residential – Prime | 1,538 | 390 | 1,031 | 869 | 18 | ||||||||||||||||||||||||
Residential – HELOC | 273 | 186 | 247 | 324 | 0 | ||||||||||||||||||||||||
Residential construction and development | 503 | 170 | 491 | 269 | 1 | ||||||||||||||||||||||||
Consumer | 26 | 25 | 25 | 21 | 0 | ||||||||||||||||||||||||
Totals: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 7,982 | $ | 940 | $ | 7,645 | $ | 6,254 | $ | 357 | |||||||||||||||||||
Commercial real estate | 5,877 | 488 | 5,246 | 5,316 | 93 | ||||||||||||||||||||||||
Commercial construction and development | 135 | 23 | 132 | 136 | 6 | ||||||||||||||||||||||||
Agricultural | 127 | 36 | 122 | 137 | 0 | ||||||||||||||||||||||||
Government | 2,775 | 0 | 2,775 | 2,933 | 72 | ||||||||||||||||||||||||
Residential – Prime | 2,915 | 390 | 2,312 | 1,943 | 52 | ||||||||||||||||||||||||
Residential – HELOC | 426 | 186 | 400 | 456 | 5 | ||||||||||||||||||||||||
Residential construction and development | 503 | 170 | 491 | 269 | 1 | ||||||||||||||||||||||||
Consumer | 26 | 25 | 25 | 21 | 0 | ||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||
Unpaid | Average | Interest | |||||||||||||||||||||||||||
Principal | Related | Recorded | Recorded | Income | |||||||||||||||||||||||||
Balance | Allowance | Investment | Investment | Recognized | |||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 2,906 | $ | 0 | $ | 2,861 | $ | 2,172 | $ | 135 | |||||||||||||||||||
Commercial real estate | 2,555 | 0 | 2,376 | 1,740 | 85 | ||||||||||||||||||||||||
Commercial construction and development | 1 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Agricultural | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Government | 3,090 | 0 | 3,090 | 1,545 | 150 | ||||||||||||||||||||||||
Residential – Prime | 979 | 0 | 866 | 845 | 14 | ||||||||||||||||||||||||
Residential – HELOC | 110 | 0 | 110 | 55 | 3 | ||||||||||||||||||||||||
Residential construction and development | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Consumer | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 2,231 | $ | 1,112 | $ | 1,999 | $ | 2,813 | $ | 43 | |||||||||||||||||||
Commercial real estate | 3,143 | 621 | 3,011 | 2,955 | 81 | ||||||||||||||||||||||||
Commercial construction and development | 142 | 74 | 140 | 171 | 8 | ||||||||||||||||||||||||
Agricultural | 152 | 55 | 152 | 153 | 0 | ||||||||||||||||||||||||
Residential – Prime | 749 | 101 | 706 | 1,085 | 9 | ||||||||||||||||||||||||
Residential – HELOC | 412 | 119 | 400 | 453 | 5 | ||||||||||||||||||||||||
Residential construction and development | 49 | 8 | 47 | 106 | 1 | ||||||||||||||||||||||||
Consumer | 19 | 18 | 17 | 22 | 0 | ||||||||||||||||||||||||
Totals: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 5,137 | $ | 1,112 | $ | 4,860 | $ | 4,985 | $ | 178 | |||||||||||||||||||
Commercial real estate | 5,698 | 621 | 5,387 | 4,695 | 166 | ||||||||||||||||||||||||
Commercial construction and development | 143 | 74 | 140 | 171 | 8 | ||||||||||||||||||||||||
Agricultural | 152 | 55 | 152 | 153 | 0 | ||||||||||||||||||||||||
Government | 3,090 | 0 | 3,090 | 1,545 | 150 | ||||||||||||||||||||||||
Residential – Prime | 1,728 | 101 | 1,572 | 1,930 | 23 | ||||||||||||||||||||||||
Residential – HELOC | 522 | 119 | 510 | 508 | 8 | ||||||||||||||||||||||||
Residential construction and development | 49 | 8 | 47 | 106 | 1 | ||||||||||||||||||||||||
Consumer | 19 | 18 | 17 | 22 | 0 | ||||||||||||||||||||||||
The loans on nonaccrual status at December 31, follows: | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 2,519 | $ | 1,575 | |||||||||||||||||||||||||
Agricultural | 122 | 152 | |||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Commercial real estate | 3,505 | 4,103 | |||||||||||||||||||||||||||
Construction and development | 18 | 17 | |||||||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||||||
Residential – Prime | 1,426 | 1,059 | |||||||||||||||||||||||||||
Residential – HELOC | 280 | 387 | |||||||||||||||||||||||||||
Construction and development | 476 | 30 | |||||||||||||||||||||||||||
Consumer | 25 | 17 | |||||||||||||||||||||||||||
Totals | $ | 8,371 | $ | 7,340 | |||||||||||||||||||||||||
The following table presents information concerning modifications of troubled debt made during 2014 and 2013: | |||||||||||||||||||||||||||||
Postmodification | |||||||||||||||||||||||||||||
Premodification | Outstanding | ||||||||||||||||||||||||||||
Outstanding | Recorded | ||||||||||||||||||||||||||||
Number of | Recorded | Investment | |||||||||||||||||||||||||||
As of December 31, 2014 | contracts | Investment | at Period-End | ||||||||||||||||||||||||||
Commercial and industrial | 5 | $ | 1,252 | $ | 1,152 | ||||||||||||||||||||||||
Commercial and real estate | 7 | 1,469 | 1,374 | ||||||||||||||||||||||||||
Government | 1 | 2,775 | 2,775 | ||||||||||||||||||||||||||
Residential real estate - Prime | 3 | 401 | 275 | ||||||||||||||||||||||||||
During the year ended December 31, 2014, approximately $1,445, or 25%, of the modified loan principal was restructured to capitalize unpaid property taxes, and $4,452, or 75%, was modified to extend amortization periods or to lower the existing interest rate. No loan principal was charged off or forgiven in connection with the modifications. At December 31, 2014, specific loan loss reserves maintained on loans modified or restructured during 2014 totaled $591. | |||||||||||||||||||||||||||||
The following table outlines past troubled debt restructurings that subsequently defaulted during 2014 when the default occurred within 12 months of the last restructuring date. For purposes of this table, default is defined as 90 days or more past due on restructured payments. | |||||||||||||||||||||||||||||
Number of Contracts | Recorded Investment at | ||||||||||||||||||||||||||||
Period-End | |||||||||||||||||||||||||||||
Commercial and industrial | 4 | $ | 323 | ||||||||||||||||||||||||||
Commercial real estate | 3 | 337 | |||||||||||||||||||||||||||
Residential real estate - Prime | 2 | 0 | |||||||||||||||||||||||||||
The contracts noted above were originally restructured primarily to lower the interest rate and convert payments to interest only. Collateral supporting the modified loans was in the process of foreclosure at period-end. No specific loan loss reserves were maintained on these impaired loans at December 31, 2014. | |||||||||||||||||||||||||||||
Postmodification | |||||||||||||||||||||||||||||
Premodification | Outstanding | ||||||||||||||||||||||||||||
Outstanding | Recorded | ||||||||||||||||||||||||||||
Number of | Recorded | Investment | |||||||||||||||||||||||||||
As of December 31, 2013 | contracts | Investment | at Period-End | ||||||||||||||||||||||||||
Commercial and industrial | 7 | $ | 1,012 | $ | 642 | ||||||||||||||||||||||||
Commercial and real estate | 5 | 587 | 564 | ||||||||||||||||||||||||||
Residential real estate - Prime | 5 | 867 | 852 | ||||||||||||||||||||||||||
During the year ended December 31, 2013, approximately $1,272, or 52%, of the modified loan principal was restructured to capitalize unpaid property taxes, and $1,194, or 48%, was modified to extend amortization periods or to lower the existing interest rate. No loan principal was charged off or forgiven in connection with the modifications. At December 31, 2013, specific loan loss reserves maintained on loans modified or restructured during 2013 totaled $258. | |||||||||||||||||||||||||||||
The following table outlines past troubled debt restructurings that subsequently defaulted during 2013 when the default occurred within 12 months of the last restructuring date. For purposes of this table, default is defined as 90 days or more past due on restructured payments. | |||||||||||||||||||||||||||||
Number of | Recorded | ||||||||||||||||||||||||||||
Contracts | Investment at | ||||||||||||||||||||||||||||
Period-End | |||||||||||||||||||||||||||||
Commercial and industrial | 1 | $ | 0 | ||||||||||||||||||||||||||
Commercial real estate | 1 | 80 | |||||||||||||||||||||||||||
Residential real estate - Prime | 1 | 87 | |||||||||||||||||||||||||||
The contracts noted above were originally restructured primarily to lower the interest rate and convert payments to interest only. Collateral supporting the modified loans was in the process of foreclosure at period-end. No specific loan loss reserves were maintained on these impaired loans at December 31, 2013. | |||||||||||||||||||||||||||||
Under a secondary market loan servicing program with the FHLB, in exchange for a monthly fee, PSB provides a credit enhancement guarantee to reimburse the FHLB for foreclosure losses in excess of 1% of original loan principal sold to the FHLB. At December 31, 2014, PSB serviced payments on $18,834 of first lien residential loan principal under these terms for the FHLB. At December 31, 2014, the maximum PSB obligation for such guarantees would be approximately $949 if total foreclosure losses on the entire pool of loans exceed approximately $1,412. Management believes the likelihood of reimbursement for credit loss payable to the FHLB on loans underwritten according to program requirements beyond the monthly credit enhancement fee is remote. PSB recognizes the credit enhancement fee as mortgage banking income when received in cash and does not maintain any recourse liability for possible credit enhancement losses. | |||||||||||||||||||||||||||||
PSB had originated and sold $3,137 and $5,202 of commercial and commercial real estate loans to other participating financial institutions at December 31, 2014 and 2013, respectively, to accommodate customer credit needs and maintain compliance with internal and external large borrower limits. Likewise, PSB had purchased $22,404 and $27,404 of commercial and commercial real estate loans originated by other Wisconsin-based financial institutions at December 31, 2014 and 2013, respectively, as part of informal reciprocal relationships that allow the originating bank to meet the needs of their large credit customers. PSB does not charge servicing fees to the participating institutions on these traditional loan participations sold by PSB, and no servicing right asset or liability has been recognized on these relationships. Any credit losses incurred on purchased or sold participation loans upon liquidation are shared pro-rata among the participants based on principal owned. |
Foreclosed_Assets
Foreclosed Assets | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Foreclosed Assets [Abstract] | |||||||||||||
Foreclosed Assets | NOTE 6 Foreclosed Assets | ||||||||||||
A summary of activity in foreclosed assets for the period ended December 31 is as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance at beginning of year | $ | 1,750 | $ | 1,774 | $ | 2,939 | |||||||
Transfer of loans at net realizable value to foreclosed assets | 801 | 1,342 | 1,295 | ||||||||||
Sale proceeds | (782 | ) | (831 | ) | (1,527 | ) | |||||||
Loans made on sale of foreclosed assets | (43 | ) | (234 | ) | (490 | ) | |||||||
Net gain (loss) from sale of foreclosed assets | (10 | ) | 105 | 42 | |||||||||
Provision for write-down charged to operations | (55 | ) | (406 | ) | (485 | ) | |||||||
Balance at end of year | $ | 1,661 | $ | 1,750 | $ | 1,774 | |||||||
Net gain and loss from the sale of foreclosed assets as well as the provision to expense for the partial write-down of foreclosed assets prior to sale are recorded as loss on foreclosed assets. Loss on foreclosed assets also includes periodic holding costs related to foreclosed assets. The total loss on foreclosed assets was $233, $428, and $573 during the years ended 2014, 2013, and 2012, respectively. |
Mortgage_Servicing_Rights
Mortgage Servicing Rights | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Mortgage Servicing Rights [Abstract] | |||||||||||||
Mortgage Servicing Rights | NOTE 7 Mortgage Servicing Rights | ||||||||||||
Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of residential mortgage loans serviced for FHLB and FNMA were $279,865 and $272,280 at December 31, 2014 and 2013, respectively. The following is a summary of changes in the balance of MSRs: | |||||||||||||
Originated | Valuation | ||||||||||||
MSR | Allowance | Total | |||||||||||
Balance at January 1, 2012 | $ | 1,286 | $ | (81 | ) | $ | 1,205 | ||||||
Additions from originated servicing | 774 | 0 | 774 | ||||||||||
Amortization charged to earnings | (547 | ) | 0 | (547 | ) | ||||||||
Change in valuation allowance credited to earnings | 0 | (199 | ) | (199 | ) | ||||||||
Balance at December 31, 2012 | 1,513 | (280 | ) | 1,233 | |||||||||
Additions from originated servicing | 625 | 0 | 625 | ||||||||||
Amortization charged to earnings | (421 | ) | 0 | (421 | ) | ||||||||
Change in valuation allowance charged to earnings | 0 | 259 | 259 | ||||||||||
Balance at December 31, 2013 | 1,717 | (21 | ) | 1,696 | |||||||||
Additions from originated servicing | 339 | 0 | 339 | ||||||||||
Amortization charged to earnings | (278 | ) | 0 | (278 | ) | ||||||||
Change in valuation allowance credited to earnings | 0 | (19 | ) | (19 | ) | ||||||||
Balance at December 31, 2014 | $ | 1,778 | $ | (40 | ) | $ | 1,738 | ||||||
The table below summarizes the components of PSB’s mortgage banking income for the three years ended December 31. | |||||||||||||
Years Ending December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Cash gain on sale of mortgage loans | $ | 659 | $ | 826 | $ | 1,113 | |||||||
Originated mortgage servicing rights | 339 | 625 | 774 | ||||||||||
Increase (decrease) in accrued mortgage rate lock commitments | (7 | ) | (78 | ) | 31 | ||||||||
Gain on sale of mortgage loans | 991 | 1,373 | 1,918 | ||||||||||
Mortgage servicing fee income | 691 | 674 | 649 | ||||||||||
Provision for representation and warranty losses on serviced loans | (8 | ) | (294 | ) | (0 | ) | |||||||
Foreclosure servicing losses | (4 | ) | 0 | (26 | ) | ||||||||
Amortization of mortgage servicing rights | (278 | ) | (421 | ) | (547 | ) | |||||||
Decrease (increase) in servicing right valuation allowance | (19 | ) | 259 | (199 | ) | ||||||||
Loan servicing fee income, net | 382 | 218 | (123 | ) | |||||||||
Mortgage banking income, net | $ | 1,373 | $ | 1,591 | $ | 1,795 |
Premises_and_Equipment
Premises and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Premises and Equipment [Abstract] | |||||||||
Premises and Equipment | NOTE 8 Premises and Equipment | ||||||||
The composition of premises and equipment at December 31 follows: | |||||||||
2014 | 2013 | ||||||||
Land | $ | 2,756 | $ | 2,261 | |||||
Buildings and improvements | 10,466 | 9,379 | |||||||
Furniture and equipment | 2,802 | 3,084 | |||||||
Computer hardware and software | 1,802 | 1,690 | |||||||
Total cost | 17,826 | 16,414 | |||||||
Less – Accumulated depreciation and amortization | 6,985 | 6,745 | |||||||
Totals | $ | 10,841 | $ | 9,669 | |||||
Depreciation and amortization charged to operating expenses amounted to $727 in 2014, $723 in 2013, and $659 in 2012. | |||||||||
Lease Commitments | |||||||||
PSB leases various pieces of equipment under cancelable leases and office space for one branch location under a noncancelable lease. The noncancelable branch location lease expires in May 2016. The lease is classified as operating. Future minimum payments under the noncancelable lease total $61 during 2015 and $26 during 2016. | |||||||||
Rental expense for all operating leases was $78, $76, and $72, for the years ended December 31, 2014, 2013, and 2012, respectively. | |||||||||
Deposits
Deposits | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Deposits\Federal Home Loan Bank Advances [Abstract] | |||||||||
Deposits | NOTE 9 Deposits | ||||||||
The distribution of deposits at December 31 is as follows: | |||||||||
2014 | 2013 | ||||||||
Non-interest-bearing demand | $ | 114,803 | $ | 102,644 | |||||
Interest-bearing demand (NOWs) | 123,844 | 118,769 | |||||||
Savings | 64,794 | 57,658 | |||||||
Money market | 146,996 | 136,797 | |||||||
Retail and local time | 122,376 | 104,287 | |||||||
Wholesale market and national time | 50,138 | 57,359 | |||||||
Total deposits | $ | 622,951 | $ | 577,514 | |||||
The scheduled maturities of time deposits at December 31, 2014, are summarized as follows: | |||||||||
2015 | $ | 83,896 | |||||||
2016 | 26,977 | ||||||||
2017 | 23,227 | ||||||||
2018 | 13,837 | ||||||||
2019 | 23,409 | ||||||||
Thereafter | 1,168 | ||||||||
Total | $ | 172,514 | |||||||
Time deposits with individual balances of $100 and over totaled $101,084 and $103,207 at December 31, 2014 and 2013, respectively. | |||||||||
Deposits from PSB directors, executive officers, and related parties at December 31, 2014 and 2013 totaled $8,483 and $9,304, respectively. | |||||||||
Federal_Home_Loan_Bank_Advance
Federal Home Loan Bank Advances | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Deposits\Federal Home Loan Bank Advances [Abstract] | |||||||||||||||||
Federal Home Loan Bank Advances | NOTE 10 Federal Home Loan Bank Advances | ||||||||||||||||
FHLB advances at December 31 consist of the following: | |||||||||||||||||
Weighted | |||||||||||||||||
Scheduled | Range of | Average | |||||||||||||||
Maturity | Rates | Rate | Amount | ||||||||||||||
2014 | |||||||||||||||||
Fixed rate, interest only | 2015 | 0.13 | % | 0.13 | % | $ | 10,000 | ||||||||||
Fixed rate, interest only | 2017 | 0.77%-1.17 | % | 1 | % | 1,350 | |||||||||||
Fixed rate, interest only | 2018 | 1.92 | % | 1.92 | % | 2,000 | |||||||||||
Fixed rate, interest only | 2019 | 1.66%-1.89 | % | 1.72 | % | 6,921 | |||||||||||
Totals | 0.91 | % | $ | 20,271 | |||||||||||||
2013 | |||||||||||||||||
Fixed rate, interest only | 2014 | 2.69%-3.45 | % | 3.18 | % | $ | 31,049 | ||||||||||
Variable rate, interest only | 2014 | 1.33 | % | 1.33 | % | 5,000 | |||||||||||
Fixed rate, interest only | 2018 | 1.92 | % | 1.92 | % | 2,000 | |||||||||||
Totals | 2.87 | % | $ | 38,049 | |||||||||||||
PSB also provides letters of credit to municipal deposit customers which are secured by a FHLB guarantee of payment to the depositor in the event of PSB default. PSB had $2,458 and $6,920 of FHLB public unit deposit letters of credit outstanding at December 31, 2014 and 2013, respectively. All of these letters of credit had original maturities of one year or less upon origination. | |||||||||||||||||
FHLB advances are subject to a prepayment penalty if they are repaid prior to maturity. PSB may draw upon an FHLB open line of credit or provide public unit deposit letters of credit up to approximately 65% of unencumbered one- to four-family residential first mortgage loans and 40% of residential junior mortgage loans pledged as collateral out of its portfolio. The FHLB advances are also secured by $2,556 of FHLB stock owned by PSB at December 31, 2014. PSB may draw both short-term and long-term advances on a maximum line of credit totaling approximately $101,553 based on pledged performing residential real estate mortgage collateral totaling $175,707 as of December 31, 2014. At December 31, 2014, PSB’s available and unused portion of this line of credit totaled approximately $81,282. PSB also has, under a current agreement with the FHLB, an ability to borrow up to an additional $57,599 by pledging securities. | |||||||||||||||||
At December 31, 2014, FHLB advances drawn by PSB and other FHLB credit enhancements provided to PSB totaling greater than $51,120 would require PSB to purchase additional shares of FHLB capital stock. Transfer of FHLB stock is substantially restricted. |
Other_Borrowings
Other Borrowings | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other Borrowings [Abstract] | |||||||||
Other Borrowings | NOTE 11 Other Borrowings | ||||||||
Other borrowings consist of the following obligations at December 31 as follows: | |||||||||
2014 | 2013 | ||||||||
Short-term repurchase agreements | $ | 4,324 | $ | 5,441 | |||||
Bank stock term loan | 500 | 1,500 | |||||||
Wholesale structured repurchase agreements | 5,500 | 13,500 | |||||||
Total other borrowings | $ | 10,324 | $ | 20,441 | |||||
PSB pledges various securities available for sale as collateral for repurchase agreements. The fair value of securities pledged for repurchase agreements totaled $12,722 and $22,699 at December 31, 2014 and 2013, respectively. | |||||||||
The following information relates to securities sold under repurchase agreements and other borrowings for the years ended December 31: | |||||||||
2014 | 2013 | ||||||||
As of end of year: | |||||||||
Weighted average rate | 2.4 | % | 3.08 | % | |||||
For the year: | |||||||||
Highest month-end balance | $ | 23,698 | $ | 24,100 | |||||
Daily average balance | $ | 18,649 | $ | 21,862 | |||||
Weighted average rate | 3 | % | 2.97 | % | |||||
The wholesale structured repurchase agreement at December 31, 2014 is with JP Morgan Chase Bank N.A. and carries a fixed interest rate of 4.09% which matures in November 2017. The repurchase agreement may be put back by the issuer to PSB for repayment on a quarterly basis. | |||||||||
PSB has an agreement with the Federal Reserve to participate in their “Borrower in Custody” program in which performing commercial and commercial real estate loans may be pledged against short-term Discount Window advances. At December 31, 2014, the maximum amount of available advances from the Discount Window totaled $100,000, subject to available collateral pledged under the Borrower in Custody program or pledge of qualifying investment securities. At December 31, 2014, PSB had pledged $114,157 of commercial purpose loans in the program, which permitted Discount Window advances up to $81,207 against this collateral. No investment securities were pledged against the line at December 31, 2014 or 2013. There were no Discount Window advances outstanding at December 31, 2014 or 2013. | |||||||||
PSB maintains a line of credit at the parent holding company level with Bankers’ Bank, Madison, Wisconsin, for advances up to $3,000 which expires on December 30, 2015, and is secured by a pledge of PSB Holdings, Inc.’s investment in the common stock of the Bank. The line carries a variable rate of interest based on changes in the three-month London InterBank Offered Rate (LIBOR). As of December 31, 2014 and 2013, no advances were outstanding on the line of credit. Draws on the line of credit are subject to several restrictive covenants including minimum regulatory capital ratios, minimum capital and loan loss allowances to nonperforming assets, and minimum loan loss allowances to nonperforming assets. PSB did not violate any of the covenants at December 31, 2014 or 2013. | |||||||||
PSB has a term loan outstanding at the parent holding company level payable to Bankers’ Bank with semiannual installments of principal that was originated during 2013. Principal payments due total $500 in 2015. Total interest expense on the term note totaled $27 during 2014 and $54 during 2013. |
Senior_Subordinated_Notes
Senior Subordinated Notes | 12 Months Ended |
Dec. 31, 2014 | |
Senior Subordinated Notes [Abstract] | |
Senior Subordinated Notes | NOTE 12 Senior Subordinated Notes |
During 2013, PSB issued $4,000 of 3.75% Senior Subordinated Notes (the “Notes”) that along with $1,000 in cash and a $2,000 bank stock term loan repaid $7,000 of 8% Notes issued during 2009. The $4,000 Notes require only interest payments and mature on July 1, 2018. The Notes are held by related parties including directors and a significant shareholder. Total interest expense on senior subordinated notes was $150 during 2014, $184 during 2013, and $578 during 2012. | |
Junior_Subordinated_Debentures
Junior Subordinated Debentures | 12 Months Ended |
Dec. 31, 2014 | |
Junior Subordinated Debentures (Abstract] | |
Junior Subordinated Debentures | NOTE 13 Junior Subordinated Debentures |
PSB has issued $7,732 of junior subordinated debentures to PSB Holdings Statutory Trust I (the “Trust”) in connection with an issue of trust preferred securities during 2005 which mature in September 2035. The debentures currently pay a variable rate of interest based on changes in the three-month LIBOR plus 1.70%, adjusted quarterly. During 2010, PSB entered into a cash flow hedge to fix the payments of interest (excluding the credit spread) on the debentures for a seven-year period ending September 2017 at a rate of 2.72%. Including the credit spread, the net interest due on the notes until September 2017 will be equal to a fixed rate of 4.42%. Total interest expense on the junior subordinated debentures was $340 in 2014, $341 in 2013, and $342 in 2012. The subordinated debentures may be called by PSB in part or in full on a quarterly basis. | |
PSB has fully and unconditionally guaranteed all the obligations of the Trust. The guarantee covers the quarterly distributions and payments on liquidation or redemption of the trust preferred securities to the extent of the funds held by the Trust. The trust preferred securities qualify as Tier 1 capital for regulatory capital purposes. | |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Derivative Instruments and Hedging Activities [Abstract] | |||||||||
Derivative Instruments and Hedging Activities | NOTE 14 Derivative Instruments and Hedging Activities | ||||||||
PSB is exposed to certain risks relating to its ongoing business operations. The primary risk managed by using derivative instruments is interest rate risk. Interest rate swaps are entered into to manage interest rate risk associated with PSB's variable rate junior subordinated debentures. Accounting standards require PSB to recognize all derivative instruments as either assets or liabilities at fair value in the balance sheet. PSB designates its interest rate swap associated with the junior subordinated debentures as a cash flow hedge of variable-rate debt. For derivative financial instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative instrument representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. | |||||||||
From time to time, PSB will also enter into fixed interest rate swaps with customers in connection with their floating rate loans to PSB. When fixed rate swaps are originated with customers, an identical offsetting swap is also entered into by PSB with a correspondent bank. These swap arrangements are intended to offset each other as “back to back” swaps and allow PSB’s loan customer to obtain fixed rate loan financing via the swap while PSB exchanges these fixed payments with a correspondent bank. In these arrangements, PSB’s net cash flows and interest income are equal to the floating rate loan originated in connection with the swap. These customer swaps are not designated as hedging instruments and are accounted for at fair value with changes in fair value recognized in the income statement during the current period. | |||||||||
PSB is exposed to credit-related losses in the event of nonperformance by the counterparties to these agreements. PSB controls the credit risk of its financial contracts through credit approvals, limits, and monitoring procedures, and does not expect any counterparties to fail their obligations. PSB enters into agreements only with primary dealers. These derivative instruments are negotiated over-the-counter (OTC) contracts. Negotiated OTC derivative contracts are generally entered into between two counterparties that negotiate specific agreement terms, including the underlying instrument, amounts, exercise prices, and maturity. | |||||||||
As of December 31, PSB had the following outstanding interest rate swap that was entered into to hedge variable-rate debt: | |||||||||
2014 | 2013 | ||||||||
Notional amount | $ | 7,500 | $ | 7,500 | |||||
Pay fixed rate | 2.72 | % | 2.72 | % | |||||
Receive variable rate | 0.24 | % | 0.24 | % | |||||
Maturity | 9/15/17 | 9/15/17 | |||||||
Unrealized loss (fair value) | $ | 325 | $ | 438 | |||||
This agreement provides for PSB to receive payments at a variable rate determined by the three-month LIBOR in exchange for making payments at a fixed rate. Actual maturities may differ from scheduled maturities due to call options and/or early termination provisions. No interest rate swap agreements were terminated prior to maturity in 2014 or 2013. Risk management results for the year ended December 31, 2014, related to the balance sheet hedging of variable rate debt indicates that the hedge was 100% effective, and no component of the derivative instrument’s gain or loss was excluded from the assessment of hedge effectiveness. At December 31, 2014, the fair value of the interest rate swap of $325 was recorded in other liabilities. Net unrealized loss on the derivative instrument recognized in other comprehensive income during the year ended December 31, 2014, totaled $44, net of tax. The net amount of other comprehensive loss reclassified into interest expense during the year ended December 31, 2014 was $114, net of tax. As of December 31, 2014, approximately $176 of losses reported in other comprehensive income related to the interest rate swap ($107 after tax benefits) are expected to be reclassified into interest expense as a yield adjustment of the hedged borrowings during the 12-month period ending December 31, 2015. The interest rate swap agreement was secured by cash and cash equivalents of $430 and $570 at December 31, 2014 and 2013, respectively. | |||||||||
During 2014, PSB reclassified $188 ($114 after tax impacts) of interest rate swap settlements which increased comprehensive income. The increase to comprehensive net income was recognized as a $188 ($114 after tax impacts) increase to interest expense on junior subordinated debentures on the statement of income during the year. During 2013, PSB reclassified $186 ($113 after tax impacts) of interest rate swap settlements which increased comprehensive income. The increase to comprehensive net income was recognized as a $186 ($113 after tax impacts) increase to interest expense on junior subordinated debentures on the statement of income during the year. | |||||||||
As of December 31, 2014 and 2013, PSB had a number of outstanding interest rate swaps with customers and correspondent banks associated with its lending activities that are not designed as hedges. | |||||||||
At December 31, the following floating interest rate swaps were outstanding with customers: | |||||||||
2014 | 2013 | ||||||||
Notional amount | $ | 13,646 | $ | 14,323 | |||||
Receive fixed rate (average) | 2 | % | 2 | % | |||||
Pay variable rate (average) | 0.16 | % | 0.17 | % | |||||
Maturity | 3/2015-10/2021 | 3/2015-10/2021 | |||||||
Weighted average remaining term | 1.9 years | 2.9 years | |||||||
Unrealized gain fair value | $ | 194 | $ | 276 | |||||
At December 31, the following offsetting fixed interest rate swaps were outstanding with correspondent banks: | |||||||||
2014 | 2013 | ||||||||
Notional amount | $ | 13,646 | $ | 14,323 | |||||
Pay fixed rate (average) | 2 | % | 2 | % | |||||
Receive variable rate (average) | 0.16 | % | 0.17 | % | |||||
Maturity | 3/2015-10/2021 | 3/2015-10/2021 | |||||||
Weighted average remaining term | 1.9 years | 2.9 years | |||||||
Unrealized loss fair value | $ | (194 | ) | $ | (276 | ) |
Retirement_and_Deferred_Compen
Retirement and Deferred Compensation Plans | 12 Months Ended |
Dec. 31, 2014 | |
Retirement and Deferred Compensation Plans [Abstract] | |
Retirement and Deferred Compensation Plans | NOTE 15 Retirement and Deferred Compensation Plans |
PSB has established a 401(k) profit sharing plan for its employees. PSB matches 100% of employees’ salary deferrals up to the first 1% of pay deferred and 50% of salary deferrals of the next 5% of pay deferrals, for a maximum match of 3.5% of salary. PSB also may declare a discretionary profit sharing contribution. The expense recognized for contributions to the plan for the years ended December 31, 2014, 2013, and 2012 was $521, $446, and $509, respectively. | |
PSB maintains deferred compensation agreements with certain executives and directors. PSB matches 20% of the amount of employees’ salary deferrals up to the first 15% of pay deferred. PSB directors may elect to defer earned directors’ fees into a separate deferred directors’ fees plan. No PSB match is made on deferred directors’ fees. Cumulative deferred balances earn a crediting rate generally equal to 100% of PSB’s return on average equity until retirement or separation from service. The agreements provide for benefits to be paid in a lump sum at retirement or in monthly installments for a period up to 15 years following each participant’s normal retirement date with interest payable at a fixed interest rate ranging from 7% to 8%. PSB is accruing this liability over each participant’s remaining period of service. The liability outstanding under the agreements was $3,427 and $3,155 at December 31, 2014 and 2013, respectively. The amount charged to operations was $333, $270, and $301 for 2014, 2013, and 2012, respectively. | |
SelfFunded_Health_Insurance_Pl
Self-Funded Health Insurance Plan | 12 Months Ended |
Dec. 31, 2014 | |
Self-Funded Health Insurance Plan [Abstract] | |
Self-Funded Health Insurance Plan | NOTE 16 Self-Funded Health Insurance Plan |
PSB has established an employee medical benefit plan to self-insure claims up to $105 per year during 2014 and 2015 for each individual with no stop-loss per year for participants in the aggregate. PSB and its covered employees contribute to the fund to pay the claims and stop-loss premiums. Medical benefit plan costs are expensed as incurred. The liability recognized for claims incurred but not yet paid was $77 as of December 31, 2014 and 2013. Health and dental insurance expense recorded in 2014, 2013, and 2012, was $925, $1,130, and $1,078, respectively. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Income Taxes [Abstract] | |||||||||||||||||||||||||
Income Taxes | NOTE 17 Income Taxes | ||||||||||||||||||||||||
The components of the provision for income taxes are as follows: | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Current income tax provision: | |||||||||||||||||||||||||
Federal | $ | 2,236 | $ | 1,246 | $ | 1,600 | |||||||||||||||||||
State | 763 | 450 | 535 | ||||||||||||||||||||||
Total current | 2,999 | 1,696 | 2,135 | ||||||||||||||||||||||
Deferred income tax provision (benefit): | |||||||||||||||||||||||||
Federal | (113 | ) | (132 | ) | 330 | ||||||||||||||||||||
State | 20 | 99 | 70 | ||||||||||||||||||||||
Total deferred | (93 | ) | (33 | ) | 400 | ||||||||||||||||||||
Total provision for income taxes | $ | 2,906 | $ | 1,663 | $ | 2,535 | |||||||||||||||||||
A summary of the source of differences between income taxes at the federal statutory rate and the provision for income taxes for the years ended December 31 follows: | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Percent | Percent | Percent | |||||||||||||||||||||||
of | of | of | |||||||||||||||||||||||
Pretax | Pretax | Pretax | |||||||||||||||||||||||
Amount | Income | Amount | Income | Amount | Income | ||||||||||||||||||||
Tax expense at statutory rate | $ | 3,178 | 34 | $ | 2,178 | 34 | $ | 2,905 | 34 | ||||||||||||||||
Increase (decrease) in taxes resulting from: | |||||||||||||||||||||||||
Tax-exempt interest | (605 | ) | (6.5 | ) | (703 | ) | (11.0 | ) | (778 | ) | (9.1 | ) | |||||||||||||
Bank-owned life insurance | (137 | ) | (1.5 | ) | (137 | ) | (2.1 | ) | (138 | ) | (1.6 | ) | |||||||||||||
State income tax | 517 | 5.6 | 362 | 5.7 | 399 | 4.7 | |||||||||||||||||||
Merger-related expenses | 0 | 0 | 0 | 0 | 73 | 1 | |||||||||||||||||||
Other | (47 | ) | (0.5 | ) | (37 | ) | (0.6 | ) | 74 | 1 | |||||||||||||||
Provision for income taxes | $ | 2,906 | 31.1 | $ | 1,663 | 26 | $ | 2,535 | 30 | ||||||||||||||||
Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of PSB’s assets and liabilities. The major components of the net deferred tax assets are as follows: | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||||||||
Allowance for loan losses | $ | 2,467 | $ | 2,579 | |||||||||||||||||||||
Deferred compensation and directors’ fees | 1,424 | 1,308 | |||||||||||||||||||||||
Foreclosed assets | 248 | 352 | |||||||||||||||||||||||
Unrealized loss on interest rate swaps | 128 | 171 | |||||||||||||||||||||||
Other | 307 | 223 | |||||||||||||||||||||||
Gross deferred tax assets | 4,574 | 4,633 | |||||||||||||||||||||||
Deferred tax liabilities: | |||||||||||||||||||||||||
Premises and equipment | 705 | 769 | |||||||||||||||||||||||
Mortgage servicing rights | 687 | 673 | |||||||||||||||||||||||
FHLB stock | 120 | 120 | |||||||||||||||||||||||
Unrealized gain on securities available for sale | 541 | 400 | |||||||||||||||||||||||
Deferred net loan origination costs | 120 | 128 | |||||||||||||||||||||||
Prepaid expenses | 88 | 139 | |||||||||||||||||||||||
Gross deferred tax liabilities | 2,261 | 2,229 | |||||||||||||||||||||||
Net deferred tax asset | $ | 2,313 | $ | 2,404 | |||||||||||||||||||||
At December 31, 2014, federal tax returns remained open for Internal Revenue Service (IRS) review for tax years after 2010, while state tax returns remain open for review by state taxing authorities for tax years after 2009. There were no federal or state income tax audits being conducted at December 31, 2014. | |||||||||||||||||||||||||
The following table presents income tax effects on items of comprehensive income (loss) for the years ended December 31: | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Pretax | Income Tax | Pretax | Income Tax | Pretax | Income Tax | ||||||||||||||||||||
Inc.(Exp.) | Exp.(Credit) | Inc.(Exp.) | Exp.(Credit) | Inc.(Exp.) | Exp.(Credit) | ||||||||||||||||||||
Unrealized gain (loss) on securities available for sale | $ | 693 | $ | 273 | $ | (1,574 | ) | $ | (613 | ) | ($ | 310 | ) | $ | (119 | ) | |||||||||
Reclassification adjustment for net security gain included in net income | (3 | ) | (1 | ) | (12 | ) | (5 | ) | 0 | 0 | |||||||||||||||
Amortization of unrealized gain on securities available for sale transferred to securities held to maturity included in net income | (330 | ) | (130 | ) | (420 | (184 | ) | (452 | ) | (178 | ) | ||||||||||||||
Unrealized gain (loss) on interest rate swap | (73 | ) | (29 | ) | 75 | 29 | (295 | ) | (116 | ) | |||||||||||||||
Reclassification adjustment of interest rate swap settlements included in earnings | 188 | 74 | 186 | 73 | 172 | 68 | |||||||||||||||||||
Totals | $ | 475 | $ | 187 | $ | (1,745 | ) | $ | (700 | ) | $ | (885 | ) | $ | (345 | ) |
Commitments_Contingencies_and_
Commitments, Contingencies, and Credit Risk | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Commitments, Contingencies, and Credit Risk [Abstract] | |||||||||
Commitments, Contingencies, and Credit Risk | NOTE 18 Commitments, Contingencies, and Credit Risk | ||||||||
Financial Instruments With Off-Balance-Sheet Credit Risk | |||||||||
PSB 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 commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheets. | |||||||||
PSB’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. PSB uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. These commitments at December 31 are as follows: | |||||||||
2014 | 2013 | ||||||||
Commitments to extend credit – Fixed and variable rates | $ | 91,206 | $ | 89,645 | |||||
Commercial standby letters of credit – Variable rate | 2,388 | 4,533 | |||||||
Unused home equity lines of credit – Variable rate | 29,034 | 24,082 | |||||||
Unused credit card commitments – Variable rate | 335 | 234 | |||||||
Credit enhancement under the FHLB of Chicago | |||||||||
Mortgage Partnership Finance program | 949 | 949 | |||||||
Totals | $ | 123,912 | $ | 119,443 | |||||
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. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. PSB evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary upon extension of credit, is based on management’s credit evaluation of the party. Collateral held varies but may include accounts receivable, inventory, property, plant, and equipment, and income-producing commercial properties. | |||||||||
Letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. Collateral held varies as specified above and is required in instances which PSB deems necessary. The commitments are generally structured to allow for 100% collateralization on all letters of credit. | |||||||||
Unfunded commitments under home equity lines of credit are commitments for possible future extensions of credit to existing customers. These lines of credit are secured by residential mortgages not to exceed the collateral property fair market value upon origination and may or may not contain a specific maturity date. | |||||||||
Credit card commitments were commitments on credit cards issued by PSB and serviced by Elan Financial Services (a subsidiary of U.S. Bancorp). These commitments were unsecured. During 2013, PSB sold its credit card loan balances to Elan Financial Services at a loss of $31 ($19 after tax benefits) on proceeds of $671. However, PSB provides full recourse to Elan against losses on certain card balances not owned by PSB. Aggregate exposure on the full recourse balances was $335 at December 31, 2014, including $210 of commitments unused by the cardholders. | |||||||||
PSB participates in the FHLB Mortgage Partnership Finance Program (the “Program”) and also originates loans for purchase by FNMA. PSB enters into forward commitments to sell mortgage loans to these various secondary market agency providers under which loans are funded by the agencies and PSB receives an agency fee reported as a component of gain on sale of loans. PSB had approximately $688 and $1,507 in firm commitments outstanding to deliver loans to these providers at December 31, 2014 and 2013, respectively, from rate lock commitments made with customers. | |||||||||
Concentration of Credit Risk | |||||||||
PSB grants residential mortgage, commercial, and consumer loans predominantly in Marathon, Oneida, and Vilas counties in Wisconsin. There are no significant concentrations of credit to any one debtor or industry group. Management believes the diversity of the local economy prevents significant losses during economic downturns. | |||||||||
Contingencies | |||||||||
In the normal course of business, PSB is 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. |
Stock_Based_Compensation
Stock Based Compensation | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Stock Based Compensation [Abstract] | |||||||||
Stock Based Compensation | NOTE 19 Stock Based Compensation | ||||||||
PSB granted shares of restricted stock to certain employees having a market value of $200, $210, and $200, during 2014, 2013, and 2012, respectively. The restricted shares vest to employees based on continued PSB service over a six-year period and are recognized as compensation expense over the vesting period. Cash dividends are paid on unvested shares at the same time and amount as paid to PSB common shareholders. Cash dividends paid on unvested restricted stock shares are charged to retained earnings since significantly all restricted shares are expected to vest to employees. As of December 31, 2014, 31,362 shares of restricted stock are outstanding that remained unvested. Unvested shares are subject to forfeiture upon employee termination. | |||||||||
The following table summarizes information regarding unvested restricted stock and shares outstanding during the three years ended December 31, 2014, 2013, and 2012. | |||||||||
Unvested | Weighted Average | ||||||||
Shares | Grant Value | ||||||||
1-Jan-12 | 25,572 | 17.79 | |||||||
Restricted shares granted | 8,895 | 22.48 | |||||||
Restricted shares vested | (4,058 | ) | (16.08 | ) | |||||
31-Dec-12 | 30,409 | 19.39 | |||||||
Restricted shares granted | 8,076 | 26 | |||||||
Restricted shares vested | (5,883 | ) | (17.85 | ) | |||||
31-Dec-13 | 32,602 | 21.3 | |||||||
Restricted shares granted | 6,400 | 31.25 | |||||||
Restricted shares vested | (7,640 | ) | (18.91 | ) | |||||
31-Dec-14 | 31,362 | $ | 23.92 | ||||||
During 2014, total compensation expense of $166 (before tax benefits of $65) was recorded from amortization of restricted shares expected to vest. During 2013, total compensation expense of $145 (before tax benefits of $57) was recorded from amortization of restricted shares expected to vest. During 2012, total compensation expense of $105 (before tax benefits of $41) was recorded from amortization of restricted shares expected to vest. Future projected compensation expense (before tax benefits) assuming all restricted shares eventually vest to employees would be as follows: | |||||||||
2015 | $ | 157 | |||||||
2016 | 162 | ||||||||
2017 | 122 | ||||||||
2018 | 82 | ||||||||
2019 | 40 | ||||||||
Total | $ | 563 | |||||||
Under the terms of an incentive stock option plan adopted during 2001, shares of unissued common stock were reserved for options to officers and key employees at prices not less than the fair market value of the shares at the date of the grant. The last outstanding option shares were exercised during 2012. No stock option plan expense was recorded in 2012. The following table summarizes information regarding stock option activity during the year ended December 31, 2012. | |||||||||
Weighted | |||||||||
Average | |||||||||
Shares | Price | ||||||||
1-Jan-12 | 588 | $ | 16.03 | ||||||
Options granted | 0 | 0 | |||||||
Options exercised | (588 | ) | (16.03 | ) | |||||
Option forfeited | 0 | 0 | |||||||
31-Dec-12 | 0 | $ | 0 |
Capital_Requirements
Capital Requirements | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Capital Requirements [Abstract] | |||||||||||||||||||||||||
Capital Requirements | NOTE 20 Capital Requirements | ||||||||||||||||||||||||
PSB and the Bank are subject to various regulatory capital requirements administered by the federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory—and possibly additional discretionary—actions by regulators that, if undertaken, could have a direct material effect on PSB’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, PSB and the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification 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 PSB and the Bank to maintain minimum amounts and ratios (set forth in the following table) of total and 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, 2014, PSB and the Bank meet all capital adequacy requirements. | |||||||||||||||||||||||||
As of December 31, 2014, the most recent regulatory financial report categorized the Bank as well-capitalized under the regulatory framework for prompt corrective action. To be categorized as well-capitalized, the Bank must maintain minimum total risk-based, Tier I risk-based, and Tier I leverage ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed the Bank’s category. | |||||||||||||||||||||||||
Notes to Consolidated Financial Statements (dollars in thousands except per share data) | |||||||||||||||||||||||||
PSB’s and the Bank’s actual and regulatory capital amounts and ratios are as follows: | |||||||||||||||||||||||||
To Be Well- | |||||||||||||||||||||||||
Capitalized Under | |||||||||||||||||||||||||
For Capital | Prompt Corrective | ||||||||||||||||||||||||
Actual | Adequacy Purposes | Action Provisions | |||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
As of December 31, 2014: | |||||||||||||||||||||||||
Total capital (to risk weighted assets): | |||||||||||||||||||||||||
Consolidated | $ | 74,370 | 14.24 | % | $ | 41,781 | 8 | % | N/A | N/A | |||||||||||||||
Peoples State Bank | $ | 75,373 | 14.45 | % | $ | 41,729 | 8 | % | $ | 52,161 | 10 | % | |||||||||||||
Tier I capital (to risk weighted assets): | |||||||||||||||||||||||||
Consolidated | $ | 67,876 | 12.99 | % | $ | 20,901 | 4 | % | N/A | N/A | |||||||||||||||
Peoples State Bank | $ | 68,879 | 13.2 | % | $ | 20,872 | 4 | % | $ | 31,309 | 6 | % | |||||||||||||
Tier I capital (to average assets): | |||||||||||||||||||||||||
Consolidated | $ | 67,876 | 9.3 | % | $ | 29,194 | 4 | % | N/A | N/A | |||||||||||||||
Peoples State Bank | $ | 68,879 | 9.44 | % | $ | 29,186 | 4 | % | $ | 36,483 | 5 | % | |||||||||||||
As of December 31, 2013: | |||||||||||||||||||||||||
Total capital (to risk weighted assets): | |||||||||||||||||||||||||
Consolidated | $ | 70,048 | 13.88 | % | $ | 40,365 | 8 | % | N/A | N/A | |||||||||||||||
Peoples State Bank | $ | 72,321 | 14.35 | % | $ | 40,312 | 8 | % | $ | 50,390 | 10 | % | |||||||||||||
Tier I capital (to risk weighted assets): | |||||||||||||||||||||||||
Consolidated | $ | 63,734 | 12.63 | % | $ | 20,182 | 4 | % | N/A | N/A | |||||||||||||||
Peoples State Bank | $ | 66,015 | 13.1 | % | $ | 20,156 | 4 | % | $ | 30,234 | 6 | % | |||||||||||||
Tier I capital (to average assets): | |||||||||||||||||||||||||
Consolidated | $ | 63,734 | 9.06 | % | $ | 28,130 | 4 | % | N/A | N/A | |||||||||||||||
Peoples State Bank | $ | 66,015 | 9.39 | % | $ | 28,130 | 4 | % | $ | 35,163 | 5 | % | |||||||||||||
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
EARNINGS PER SHARE | NOTE 21 Earnings Per Share | ||||||||||||
Basic earnings per share of common stock are based on the weighted average number of common shares outstanding during the period. Unvested but issued restricted shares are considered to be outstanding shares and used to calculate the weighted average number of shares outstanding and determine net book value per share. Diluted earnings per share is calculated by dividing net income by the weighted average number of shares adjusted for the dilutive effect of outstanding stock options. On June 19, 2012, PSB declared a 5% stock dividend to shareholders of record July 16, 2012, which was paid in the form of additional common stock on July 30, 2012. All references in the accompanying consolidated financial statements and footnotes to the number of common shares and per share amounts have been restated to reflect the 5% stock dividend for all periods shown. The computation of earnings per share for the years ended December 31 is as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Weighted average shares outstanding | 1,651,045 | 1,652,700 | 1,663,147 | ||||||||||
Effect of dilutive stock options outstanding | 0 | 0 | 58 | ||||||||||
Diluted weighted average shares outstanding | 1,651,045 | 1,652,700 | 1,663,205 | ||||||||||
Basic earnings per share | $ | 3.9 | $ | 2.87 | $ | 3.61 | |||||||
Diluted earnings per share | $ | 3.9 | $ | 2.87 | $ | 3.61 |
Restrictions_on_Retained_Earni
Restrictions on Retained Earnings | 12 Months Ended |
Dec. 31, 2014 | |
Restrictions on Retained Earnings [Abstract] | |
Restrictions on Retained Earnings | NOTE 22 Restrictions on Retained Earnings |
The Bank is restricted by banking regulations from making dividend distributions above prescribed amounts and is limited in making loans and advances to PSB. At December 31, 2014, management believes that maintaining the regulatory framework of the Bank at the well-capitalized level will effectively restrict potential dividends from the Bank to an amount less than $23,212. Furthermore, any Bank dividend distributions to PSB above customary levels are subject to approval by the FDIC, the Bank’s primary federal regulator, and the Wisconsin Department of Financial Institutions, the Bank’s primary state regulator. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||||||||||
Fair Value Measurements | NOTE 23 Fair Value Measurements | ||||||||||||||||||||
Certain assets and liabilities are recorded or disclosed at fair value to provide financial statement users additional insight into PSB’s quality of earnings. Under current accounting guidance, PSB groups assets and liabilities which are recorded at fair value in three levels based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement (with Level 1 considered highest and Level 3 considered lowest). All transfers between levels are recognized as occurring at the end of the reporting period. | |||||||||||||||||||||
Following is a brief description of each level of the fair value hierarchy: | |||||||||||||||||||||
Level 1– Fair value measurement is based on quoted prices for identical assets or liabilities in active markets. | |||||||||||||||||||||
Level 2– Fair value measurement is based on (1) quoted prices for similar assets or liabilities in active markets; (2) quoted prices for identical or similar assets or liabilities in markets that are not active; or (3) valuation models and methodologies for which all significant assumptions are or can be corroborated by observable market data. | |||||||||||||||||||||
Level 3– Fair value measurement is based on valuation models and methodologies that incorporate at least one significant assumption that cannot be corroborated by observable market data. Level 3 measurements reflect PSB’s estimates about assumptions market participants would use in measuring fair value of the asset or liability. | |||||||||||||||||||||
Some assets and liabilities, such as securities available for sale, loans held for sale, mortgage rate lock commitments, and interest rate swaps, are measured at fair value on a recurring basis under GAAP. Other assets and liabilities, such as impaired loans, foreclosed assets, and mortgage servicing rights are measured at fair value on a nonrecurring basis. | |||||||||||||||||||||
Following is a description of the valuation methodology used for each asset and liability measured at fair value on a recurring or nonrecurring basis, as well as the classification of the asset or liability within the fair value hierarchy. | |||||||||||||||||||||
Securities available for sale– Securities available for sale may be classified as Level 1, Level 2, or Level 3 measurements within the fair value hierarchy and are measured on a recurring basis. Level 1 securities include equity securities traded on a national exchange. The fair value measurement of a Level 1 security is based on the quoted price of the security. Level 2 securities include U.S. government and agency securities, obligations of states and political subdivisions, corporate debt securities, and mortgage-related securities. The fair value measurement of a Level 2 security is obtained from an independent pricing service and is based on recent sales of similar securities and other observable market data and represents a market approach to fair value. | |||||||||||||||||||||
Nonrated commercial paper is not traded on an active market. However, the original term of each investment is 60 days or less and carries a market rate of interest adjusted for risk. Due to the absence of credit concerns and the short duration, historical cost is assumed to approximate fair value of this investment. | |||||||||||||||||||||
At December 31, 2014 and 2013, Level 3 securities include a common stock investment in Bankers’ Bank, Madison, Wisconsin, that is not traded on an active market. Historical cost of the common stock is assumed to approximate fair value of this investment. | |||||||||||||||||||||
Loans held for sale– Loans held for sale in the secondary market are carried at the lower of aggregate cost or estimated fair value and are measured on a recurring basis. The fair value measurement of a loan held for sale is based on current secondary market prices for similar loans, which is considered a Level 2 measurement and represents a market approach to fair value. | |||||||||||||||||||||
Notes to Consolidated Financial Statements (dollars in thousands except per share data) | |||||||||||||||||||||
Impaired loans– Loans are not measured at fair value on a recurring basis. Carrying value of impaired loans that are not collateral dependent are based on the present value of expected future cash flows discounted at the applicable effective interest rate and, thus, are not fair value measurements. However, impaired loans considered to be collateral dependent are measured at fair value on a nonrecurring basis. The fair value measurement of an impaired loan that is collateral dependent is based on the fair value of the underlying collateral. Fair value measurements of underlying collateral that utilize observable market data, such as independent appraisals reflecting recent comparable sales, are considered Level 2 measurements. Other fair value measurements that incorporate internal collateral appraisals or broker price opinions, net of selling costs, or estimated assumptions market participants would use to measure fair value, such as discounted cash flow measurements, are considered Level 3 measurements and represent a market approach to fair value. | |||||||||||||||||||||
In the absence of a recent independent appraisal, collateral dependent impaired loans are valued based on a recent broker price opinion generally discounted by 10% plus estimated selling costs. In the absence of a broker price opinion, collateral dependent impaired loans are valued at the lower of last appraisal value or the current real estate tax value discounted by 30%, plus estimated selling costs. Property values are impacted by many macroeconomic factors. In general, a declining economy or rising interest rates would be expected to lower fair value of collateral dependent impaired loans while an improving economy or falling interest rates would be expected to increase fair value of collateral dependent impaired loans. | |||||||||||||||||||||
Foreclosed assets– Real estate and other property acquired through, or in lieu of, loan foreclosure are not measured at fair value on a recurring basis. Initially, foreclosed assets are recorded at fair value less estimated costs to sell at the date of foreclosure. Estimated selling costs typically range from 5% to 15% of the property value. Valuations are periodically performed by management, and the real estate or other property is carried at the lower of carrying amount or fair value less estimated costs to sell. Fair value measurements are based on current formal or informal appraisals of property value compared to recent comparable sales of similar property. Independent appraisals reflecting comparable sales are considered Level 2 measurements, while internal assessments of appraised value based on current market activity, including broker price opinions, are considered Level 3 measurements and represent a market approach to fair value. Property values are impacted by many macroeconomic factors. In general, a declining economy or rising interest rates would be expected to lower fair value of foreclosed assets while an improving economy or falling interest rates would be expected to increase fair value of foreclosed assets. | |||||||||||||||||||||
Mortgage servicing rights– Mortgage servicing rights are not measured at fair value on a recurring basis. However, mortgage servicing rights that are impaired are measured at fair value on a nonrecurring basis. Serviced loan pools are stratified by year of origination and term of the loan, and a valuation model is used to calculate the present value of expected future cash flows for each stratum. When the carrying value of a stratum exceeds its fair value, the stratum is measured at fair value. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as costs to service, a discount rate, custodial earnings rate, ancillary income, default rates and losses, and prepayment speeds. Although some of these assumptions are based on observable market data, other assumptions are based on unobservable estimates of what market participants would use to measure fair value. As a result, the fair value measurement of mortgage servicing rights is considered a Level 3 measurement and represents an income approach to fair value. When market mortgage rates decline, borrowers may have the opportunity to refinance their existing mortgage loans at lower rates, increasing the risk of prepayment of loans on which PSB maintains mortgage servicing rights. Therefore, declining long-term interest rates would decrease the fair value of mortgage servicing rights. Significant unobservable inputs at December 31, 2014, used to measure fair value included: | |||||||||||||||||||||
Direct annual servicing cost per loan | $ | 60 | |||||||||||||||||||
Direct annual servicing cost per loan in process of foreclosure | $ | 600 | |||||||||||||||||||
Weighted average prepayment speed: CPR | 12.57 | % | |||||||||||||||||||
Weighted average prepayment speed: PSA | 249.06 | % | |||||||||||||||||||
Weighted average cash flow discount rate | 7.91 | % | |||||||||||||||||||
Asset reinvestment rate | 4 | % | |||||||||||||||||||
Short-term cost of funds | 0.25 | % | |||||||||||||||||||
Escrow inflation adjustment | 1 | % | |||||||||||||||||||
Servicing cost inflation adjustment | 1 | % | |||||||||||||||||||
Other intangible assets– The fair value and impairment of other intangible assets, including core deposit intangible assets and goodwill, is measured annually as of December 31 or more frequently if conditions indicate that impairment may have occurred. The evaluation of possible impairment of other intangible assets involves significant judgment based upon short-term and long-term projections of future performance, which is a Level 3 fair value measurement, and represents an income approach to fair value. | |||||||||||||||||||||
Mortgage rate lock commitments– The fair value of mortgage rate lock commitments is measured on a recurring basis. Fair value is based on current secondary market pricing for delivery of similar loans and the value of OMSR on loans expected to be delivered, which is considered a Level 2 fair value measurement. | |||||||||||||||||||||
Notes to Consolidated Financial Statements (dollars in thousands except per share data) | |||||||||||||||||||||
Interest rate swap agreements– Fair values for interest rate swap agreements are based on the amounts required to settle the contracts based on valuations provided by third-party dealers in the contracts, which is considered a Level 2 fair value measurement, and are measured on a recurring basis. | |||||||||||||||||||||
Information regarding the fair value of assets and liabilities measured at fair value on a recurring basis as of December 31: | |||||||||||||||||||||
Recurring Fair Value Measurements Using | |||||||||||||||||||||
Quoted Prices | |||||||||||||||||||||
in Active | Significant | ||||||||||||||||||||
Assets and | Markets for | Other | Significant | ||||||||||||||||||
Liabilities | Identical | Observable | Unobservable | ||||||||||||||||||
Measured at | Assets | Inputs | Inputs | ||||||||||||||||||
Fair Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
2014 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||
U.S. agency issued residential MBS and CMO | $ | 73,352 | $ | 0 | $ | 73,352 | $ | 0 | |||||||||||||
Privately issued residential MBS and CMO | 29 | 0 | 29 | 0 | |||||||||||||||||
Nonrated SBA loan fund | 950 | 0 | 950 | 0 | |||||||||||||||||
Other equity securities | 47 | 0 | 0 | 47 | |||||||||||||||||
Total securities available for sale | 74,378 | 0 | 74,331 | 47 | |||||||||||||||||
Loans held for sale | 100 | 0 | 100 | 0 | |||||||||||||||||
Mortgage rate lock commitment | 6 | 0 | 6 | 0 | |||||||||||||||||
Interest rate swap agreements | 194 | 0 | 194 | 0 | |||||||||||||||||
Total assets | $ | 74,678 | $ | 0 | $ | 74,631 | $ | 47 | |||||||||||||
Liabilities – Interest rate swap agreements | $ | 519 | $ | 0 | $ | 519 | $ | 0 | |||||||||||||
2013 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||
U.S. Treasury and agency debentures | $ | 999 | $ | 0 | $ | 999 | $ | 0 | |||||||||||||
U.S. agency issued residential MBS and CMO | 59,390 | 0 | 59,390 | 0 | |||||||||||||||||
Privately issued residential MBS and CMO | 105 | 0 | 105 | 0 | |||||||||||||||||
Obligations of states and political subdivisions | 159 | 0 | 159 | 0 | |||||||||||||||||
Nonrated SBA loan fund | 950 | 0 | 950 | 0 | |||||||||||||||||
Other equity securities | 47 | 0 | 0 | 47 | |||||||||||||||||
Total securities available for sale | 61,650 | 0 | 61,603 | 47 | |||||||||||||||||
Loans held for sale | 150 | 0 | 150 | 0 | |||||||||||||||||
Mortgage rate lock commitments | 14 | 0 | 14 | 0 | |||||||||||||||||
Interest rate swap agreements | 276 | 0 | 276 | 0 | |||||||||||||||||
Total assets | $ | 62,090 | $ | 0 | $ | 62,043 | $ | 47 | |||||||||||||
Liabilities – Interest rate swap agreements | $ | 714 | $ | 0 | $ | 714 | $ | 0 | |||||||||||||
Notes to Consolidated Financial Statements (dollars in thousands except per share data) | |||||||||||||||||||||
The reconciliation of fair value measurements using significant unobservable inputs during the years ended December 31 is as follows: | |||||||||||||||||||||
Balance at January 1, 2013: | $ | 47 | |||||||||||||||||||
Total realized/unrealized gains (losses): | |||||||||||||||||||||
Included in earnings | 0 | ||||||||||||||||||||
Included in other comprehensive income | 0 | ||||||||||||||||||||
Purchases, maturities, and sales | 0 | ||||||||||||||||||||
Balance at December 31, 2013 | $ | 47 | |||||||||||||||||||
Total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at December 31, 2013 | $ | 0 | |||||||||||||||||||
Balance at January 1, 2014: | $ | 47 | |||||||||||||||||||
Total realized/unrealized gains (losses): | |||||||||||||||||||||
Included in earnings | 0 | ||||||||||||||||||||
Included in other comprehensive income | 0 | ||||||||||||||||||||
Purchases, maturities, and sales | 0 | ||||||||||||||||||||
Balance at December 31, 2014 | $ | 47 | |||||||||||||||||||
Total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at December 31, 2014 | $ | 0 | |||||||||||||||||||
Information regarding the fair value of assets and liabilities measured at fair value on a nonrecurring basis as of December 31 follows: | |||||||||||||||||||||
Nonrecurring Fair Value Measurements Using | |||||||||||||||||||||
Quoted Prices | |||||||||||||||||||||
in Active | Significant | ||||||||||||||||||||
Markets for | Other | Significant | |||||||||||||||||||
Assets | Identical | Observable | Unobservable | ||||||||||||||||||
Measured at | Assets | Inputs | Inputs | ||||||||||||||||||
Fair Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
2014 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Impaired loans | $ | 1,956 | $ | 0 | $ | 97 | $ | 1,859 | |||||||||||||
Foreclosed assets | 1,661 | 0 | 284 | 1,377 | |||||||||||||||||
Mortgage servicing rights | 1,738 | 0 | 0 | 1,738 | |||||||||||||||||
Other intangible assets | 274 | 0 | 0 | 274 | |||||||||||||||||
Total assets | $ | 5,629 | $ | 0 | $ | 381 | $ | 5,248 | |||||||||||||
2013 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Impaired loans | $ | 1,720 | $ | 0 | $ | 0 | $ | 1,720 | |||||||||||||
Foreclosed assets | 1,750 | 0 | 792 | 958 | |||||||||||||||||
Mortgage servicing rights | 1,696 | 0 | 0 | 1,696 | |||||||||||||||||
Total assets | $ | 5,166 | $ | 0 | $ | 792 | $ | 4,374 | |||||||||||||
Notes to Consolidated Financial Statements (dollars in thousands except per share data) | |||||||||||||||||||||
At December 31, 2014, loans with a carrying amount of $2,517 were considered impaired and were written down to their estimated fair value of $1,956, net of a valuation allowance of $561. At December 31, 2013, loans with a carrying amount of $2,119 were considered impaired and were written down to their estimated fair value of $1,720 net of a valuation allowance of $399. Changes in the valuation allowances are reflected through earnings as a component of the provision for loan losses or as a charge-off against the allowance for loan losses. | |||||||||||||||||||||
In 2014, foreclosed assets with a fair value of $801 were acquired through or in lieu of foreclosure, which is the fair value net of estimated costs to sell. During 2014, foreclosed assets with a carrying amount of $1,716 were written down to a fair value of $1,661, less costs to sell. As a result, an impairment charge of $55 was included in earnings for the year ended December 31, 2014. In 2013, foreclosed assets with a fair value of $1,342 were acquired through or in lieu of foreclosure, which is the fair value net of estimated costs to sell. During 2013, foreclosed assets with a carrying amount of $2,156 were written down to a fair value of $1,750, less costs to sell. As a result, an impairment charge of $406 was included in earnings for the year ended December 31, 2013. | |||||||||||||||||||||
At December 31, 2014, mortgage servicing rights with a carrying amount of $1,778 were considered impaired and were written down to their estimated fair value of $1,738, resulting in an impairment allowance of $40. At December 31, 2013, mortgage servicing rights with a carrying amount of $1,717 were considered impaired and were written down to their estimated fair value of $1,696, resulting in an impairment allowance of $21. Changes in the impairment allowances are reflected through earnings as a component of mortgage banking income. | |||||||||||||||||||||
PSB estimates fair value of all financial instruments regardless of whether such instruments are measured at fair value. The following methods and assumptions were used by PSB to estimate fair value of financial instruments not previously discussed. | |||||||||||||||||||||
Cash and cash equivalents– Fair value reflects the carrying value of cash, which is a Level 1 measurement. | |||||||||||||||||||||
Securities held to maturity– Fair value of securities held to maturity is based on dealer quotations on similar securities near period-end, which is considered a Level 2 measurement. Certain debt issued by banks or bank holding companies purchased by PSB as securities held to maturity is valued on a cash flow basis discounted using market rates reflecting credit risk of the borrower, which is considered a Level 3 measurement. | |||||||||||||||||||||
Bank certificates of deposit– Fair value of fixed rate certificates of deposit included in other investments is estimated by discounting future cash flows using current rates at which similar certificates could be purchased, which is a Level 3 measurement. | |||||||||||||||||||||
Loans– Fair value of variable rate loans that reprice frequently are based on carrying values. Loans with an active sale market, such as one- to four-family residential mortgage loans, estimate fair value based on sales of loans with similar structure and credit quality. Fair value of other loans is estimated by discounting future cash flows using current rates at which similar loans would be made to borrowers with similar credit ratings. Fair value of impaired and other nonperforming loans is estimated using discounted expected future cash flows or the fair value of underlying collateral, if applicable. Except for collateral dependent impaired loans valued using an independent appraisal of collateral value, reflecting a Level 2 fair value measurement, fair value of loans is considered to be a Level 3 measurement due to internally developed discounted cash flow measurements. | |||||||||||||||||||||
Federal Home Loan Bank stock– Fair value is the redeemable (carrying) value based on the redemption provisions of the Federal Home Loan Bank, which is considered a Level 3 fair value measurement. | |||||||||||||||||||||
Accrued interest receivable and payable– Fair value approximates the carrying value, which is considered a Level 3 fair value measurement. | |||||||||||||||||||||
Notes to Consolidated Financial Statements (dollars in thousands except per share data) | |||||||||||||||||||||
Cash value of life insurance– Fair value is based on reported values of the assets by the issuer which are redeemable to the insured, which is considered a Level 2 fair value measurement. | |||||||||||||||||||||
Deposits– Fair value of deposits with no stated maturity, such as demand deposits, savings, and money market accounts, by definition, is the amount payable on demand on the reporting date. Fair value of fixed rate time deposits is estimated using discounted cash flows applying interest rates currently offered on issue of similar time deposits. Use of internal discounted cash flows provides a Level 3 fair value measurement. | |||||||||||||||||||||
FHLB advances and other borrowings– Fair value of fixed rate, fixed term borrowings is estimated by discounting future cash flows using the current rates at which similar borrowings would be made as calculated by the lender or correspondent. Fair value of borrowings with variable rates or maturing within 90 days approximates the carrying value of these borrowings. Fair values based on lender provided settlement provisions are considered a Level 2 fair value measurement. Other borrowings with local customers in the form of repurchase agreements are estimated using internal assessments of discounted future cash flows, which is a Level 3 measurement. | |||||||||||||||||||||
Senior subordinated notes and junior subordinated debentures– Fair value of fixed rate, fixed term notes and debentures are estimated internally by discounting future cash flows using the current rates at which similar borrowings would be made, which is a Level 3 fair value measurement. | |||||||||||||||||||||
The carrying amounts and fair values of PSB’s financial instruments consisted of the following: | |||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Carrying | Estimated | Fair Value Hierarchy Level | |||||||||||||||||||
Amount | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 25,106 | $ | 25,106 | $ | 25,106 | $ | 0 | $ | 0 | |||||||||||
Securities | 144,157 | 145,387 | 0 | 143,522 | 1,865 | ||||||||||||||||
Bank certificates of deposit | 3,424 | 3,446 | 0 | 0 | 5,446 | ||||||||||||||||
Net loans receivable and loans held for sale | 525,683 | 528,696 | 0 | 197 | 528,499 | ||||||||||||||||
Accrued interest receivable | 2,074 | 2,074 | 0 | 0 | 2,074 | ||||||||||||||||
Mortgage servicing rights | 1,738 | 1,738 | 0 | 0 | 1,738 | ||||||||||||||||
Mortgage rate lock commitments | 6 | 6 | 0 | 6 | 0 | ||||||||||||||||
FHLB stock | 2,556 | 2,556 | 0 | 0 | 2,556 | ||||||||||||||||
Cash surrender value of life insurance | 13,230 | 13,230 | 0 | 13,230 | 0 | ||||||||||||||||
Interest rate swap agreements | 194 | 194 | 0 | 194 | 0 | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | $ | 622,951 | $ | 623,439 | $ | 0 | $ | 0 | $ | 623,439 | |||||||||||
FHLB advances | 20,271 | 20,316 | 0 | 20,316 | 0 | ||||||||||||||||
Other borrowings | 10,324 | 10,764 | 0 | 5,942 | 4,822 | ||||||||||||||||
Senior subordinated notes | 4,000 | 3,604 | 0 | 0 | 3,604 | ||||||||||||||||
Junior subordinated debentures | 7,732 | 7,248 | 0 | 0 | 7,248 | ||||||||||||||||
Interest rate swap agreements | 519 | 519 | 0 | 519 | 0 | ||||||||||||||||
Accrued interest payable | 331 | 331 | 0 | 0 | 331 | ||||||||||||||||
Notes to Consolidated Financial Statements (dollars in thousands except per share data) | |||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Carrying | Estimated | Fair Value Hierarchy Level | |||||||||||||||||||
Amount | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 31,522 | $ | 31,522 | $ | 31,522 | $ | 0 | $ | 0 | |||||||||||
Securities | 133,279 | 133,322 | 0 | 131,479 | 1,843 | ||||||||||||||||
Bank certificates of deposit | 2,236 | 2,280 | 0 | 0 | 2,280 | ||||||||||||||||
Net loans receivable and loans held for sale | 510,030 | 514,309 | 0 | 150 | 514,159 | ||||||||||||||||
Accrued interest receivable | 2,076 | 2,076 | 0 | 0 | 2,076 | ||||||||||||||||
Mortgage servicing rights | 1,696 | 1,696 | 0 | 0 | 1,696 | ||||||||||||||||
Mortgage rate lock commitments | 14 | 14 | 0 | 14 | 0 | ||||||||||||||||
FHLB stock | 2,556 | 2,556 | 0 | 0 | 2,556 | ||||||||||||||||
Cash surrender value of life insurance | 12,826 | 12,826 | 0 | 12,826 | 0 | ||||||||||||||||
Interest rate swap agreements | 276 | 276 | 0 | 276 | 0 | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | $ | 577,514 | $ | 578,387 | $ | 0 | $ | 0 | $ | 578,387 | |||||||||||
FHLB advances | 38,049 | 38,511 | 0 | 38,511 | 0 | ||||||||||||||||
Other borrowings | 20,441 | 21,251 | 0 | 14,364 | 6,887 | ||||||||||||||||
Senior subordinated notes | 4,000 | 3,489 | 0 | 0 | 3,489 | ||||||||||||||||
Junior subordinated debentures | 7,732 | 7,085 | 0 | 0 | 7,085 | ||||||||||||||||
Interest rate swap agreements | 714 | 714 | 0 | 714 | 0 | ||||||||||||||||
Accrued interest payable | 477 | 477 | 0 | 0 | 477 | ||||||||||||||||
Condensed_Parent_Company_Only_
Condensed Parent Company Only Financial Statements | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||
Condensed Parent Company Only Financial Statements | NOTE 24 Condensed Parent Company Only Financial Statements | ||||||||||||
The following are condensed balance sheets as of December 31, 2014 and 2013, and condensed statements of income and cash flows for the years ended December 31, 2014, 2013, and 2012, for PSB Holdings, Inc. | |||||||||||||
Balance Sheets | |||||||||||||
December 31, 2014 and 2013 | |||||||||||||
Assets | 2014 | 2013 | |||||||||||
Cash and due from banks | $ | 3,826 | $ | 3,502 | |||||||||
Investment in Peoples State Bank | 70,161 | 66,801 | |||||||||||
Other assets | 747 | 840 | |||||||||||
TOTAL ASSETS | $ | 74,734 | $ | 71,143 | |||||||||
Liabilities and Stockholders’ Equity | |||||||||||||
Accrued dividends payable | $ | 652 | $ | 644 | |||||||||
Other borrowings | 500 | 1,500 | |||||||||||
Senior subordinated notes | 4,000 | 4,000 | |||||||||||
Junior subordinated debentures | 7,732 | 7,732 | |||||||||||
Other liabilities | 389 | 514 | |||||||||||
Total stockholders’ equity | 61,461 | 56,753 | |||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 74,734 | $ | 71,143 | |||||||||
Statements of Income | |||||||||||||
Years Ended December 31, 2014, 2013, and 2012 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Income: | |||||||||||||
Dividends from Peoples State Bank | $ | 3,900 | $ | 4,000 | $ | 7,700 | |||||||
Dividends from other investments | 6 | 6 | 5 | ||||||||||
Interest | 6 | 5 | 10 | ||||||||||
Total income | $ | 3,912 | 4,011 | 7,715 | |||||||||
Expenses: | |||||||||||||
Interest on other borrowings | 27 | 54 | 0 | ||||||||||
Interest expense on senior subordinated notes | 150 | 184 | 578 | ||||||||||
Interest expense on junior subordinated debentures | 340 | 341 | 342 | ||||||||||
Transfer agent and shareholder communication | 52 | 47 | 68 | ||||||||||
Other | 85 | 136 | 348 | ||||||||||
Total expenses | 654 | 762 | 1,336 | ||||||||||
Income before income taxes and equity in undistributed net income of Peoples State Bank | 3,258 | 3,249 | 6,379 | ||||||||||
Recognition of income tax benefit | 251 | 293 | 431 | ||||||||||
Net income before equity in undistributed net income of Peoples State Bank | 3,509 | 3,542 | 6,810 | ||||||||||
Equity in undistributed net income of Peoples State Bank | 2,931 | 1,202 | (801 | ) | |||||||||
Net income | $ | 6,440 | $ | 4,744 | $ | 6,009 | |||||||
Statements of Cash Flows | |||||||||||||
Years Ended December 31, 2014, 2013, and 2012 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Increase (decrease) in cash and due from banks: | |||||||||||||
Cash flows from operating activities: | |||||||||||||
Net income | $ | 6,440 | $ | 4,744 | $ | 6,009 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||
Equity in undistributed net income of Peoples State Bank | (2,931 | ) | (1,202 | ) | 801 | ||||||||
(Increase) decrease in other assets | 41 | 147 | (21 | ) | |||||||||
Decrease in other liabilities | (5 | ) | (98 | ) | (2 | ) | |||||||
Increase (decrease) in dividends payable | 8 | 644 | (583 | ) | |||||||||
Net cash provided by operating activities | 3,553 | 4,235 | 6,204 | ||||||||||
Cash flows from investing activities: | |||||||||||||
Purchase Marathon State Bank common stock | 0 | 0 | (5,482 | ) | |||||||||
Investment in Peoples State Bank | 0 | 0 | (5 | ) | |||||||||
Net cash used in investing activities | 0 | 0 | (5,487 | ) | |||||||||
Cash flows from financing activities: | |||||||||||||
Repayment of senior subordinated notes | 0 | (3,000 | ) | 0 | |||||||||
Proceeds from other borrowings | 0 | 2,000 | 0 | ||||||||||
Repayment of other borrowings | (1,000 | ) | (500 | ) | 0 | ||||||||
Proceeds from exercise of stock options | 0 | 0 | 9 | ||||||||||
Dividends declared | (1,316 | ) | (1,289 | ) | (1,247 | ) | |||||||
Purchase of treasury stock | (913 | ) | (269 | ) | (262 | ) | |||||||
Net cash used in financing activities | (3,229 | ) | (3,058 | ) | (1,500 | ) | |||||||
Net increase (decrease) in cash and due from banks | 324 | 1,177 | (783 | ) | |||||||||
Cash and due from banks at beginning | 3,502 | 2,325 | 3,108 | ||||||||||
Cash and due from banks at end | $ | 3,826 | $ | 3,502 | $ | 2,325 |
Summary_of_Quarterly_Results
Summary of Quarterly Results | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Summary Of Quarterly Results | |||||||||||||||||
Schedule of Quarterly Results | NOTE 25 Summary of Quarterly Results (Unaudited) | ||||||||||||||||
Three Months Ended | |||||||||||||||||
31-Mar | 30-Jun | 30-Sep | 31-Dec | ||||||||||||||
2014 | |||||||||||||||||
Interest income | $ | 6,405 | $ | 6,618 | $ | 6,833 | $ | 6,762 | |||||||||
Interest expense | 1,231 | 1,168 | 1,099 | 988 | |||||||||||||
Net interest income | 5,174 | 5,450 | 5,734 | 5,774 | |||||||||||||
Provision for loan losses | 140 | 140 | 140 | 140 | |||||||||||||
Noninterest income | 1,320 | 1,369 | 1,481 | 1,524 | |||||||||||||
Net income | 1,450 | 1,403 | 1,782 | 1,805 | |||||||||||||
Basic earnings per share* | 0.87 | 0.85 | 1.08 | 1.1 | |||||||||||||
Diluted earnings per share* | 0.87 | 0.85 | 1.08 | 1.1 | |||||||||||||
2013 | |||||||||||||||||
Interest income | $ | 6,624 | $ | 6,692 | $ | 6,772 | $ | 6,728 | |||||||||
Interest expense | 1,423 | 1,375 | 1,350 | 1,363 | |||||||||||||
Net interest income | 5,201 | 5,317 | 5,422 | 5,365 | |||||||||||||
Provision for loan losses | 323 | 352 | 3,340 | 0 | |||||||||||||
Noninterest income | 1,415 | 1,523 | 1,411 | 1,274 | |||||||||||||
Net income | 1,609 | 1,561 | 13 | 1,561 | |||||||||||||
Basic earnings per share* | 0.97 | 0.95 | 0.01 | 0.95 | |||||||||||||
Diluted earnings per share* | 0.97 | 0.95 | 0.01 | 0.95 | |||||||||||||
2012 | |||||||||||||||||
Interest income | $ | 6,695 | $ | 6,679 | $ | 6,933 | $ | 6,937 | |||||||||
Interest expense | 1,879 | 1,799 | 1,770 | 1,643 | |||||||||||||
Net interest income | 4,816 | 4,880 | 5,163 | 5,294 | |||||||||||||
Provision for loan losses | 160 | 165 | 0 | 460 | |||||||||||||
Noninterest income | 1,242 | 2,323 | 1,444 | 1,559 | |||||||||||||
Net income | 1,180 | 1,918 | 1,226 | 1,685 | |||||||||||||
Basic earnings per share* | 0.7 | 1.15 | 0.74 | 1.01 | |||||||||||||
Diluted earnings per share* | 0.7 | 1.15 | 0.74 | 1.01 | |||||||||||||
* Basic and diluted earnings per share may not foot to the total for the year ended December 31 due to rounding. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Principal Business Activity | Principal Business Activity |
PSB Holdings, Inc. operates Peoples State Bank (the “Bank”), a full-service financial institution chartered as a Wisconsin commercial bank with nine locations in a primary service area including, but not limited to, Marathon, Oneida, and Vilas counties in Wisconsin. PSB operates as a community bank and provides a variety of retail consumer and commercial banking products, including uninsured investment and insurance products, long-term fixed-rate residential mortgages, and commercial treasury management services. | |
Principles of Consolidation | Principles of Consolidation |
The consolidated financial statements include the accounts of PSB Holdings, Inc. and its subsidiary, Peoples State Bank. Peoples State Bank owns and operates a Nevada subsidiary, PSB Investments, Inc., to manage the Bank’s investment securities. All significant intercompany balances and transactions have been eliminated. The accounting and reporting policies of PSB conform to accounting principles generally accepted in the United States (GAAP) and to the general practices within the banking industry. Any reference to “PSB” refers to the consolidated or individual operations of PSB Holdings, Inc. and its subsidiary, Peoples State Bank. | |
Use of Estimates in Preparation of Financial Statements | Use of Estimates in Preparation of Financial Statements |
The preparation of the consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Estimates that are susceptible to significant change include the determination of the allowance for loan losses, mortgage servicing rights assets, and the valuation of investment securities. | |
Cash Equivalents | Cash Equivalents |
For purposes of reporting cash flows in the consolidated financial statements, cash and cash equivalents include cash and due from banks, interest-bearing deposits and money market funds, and federal funds sold, all of which have original maturities of three months or less. | |
Securities | Securities |
Securities are assigned an appropriate classification at the time of purchase in accordance with management’s intent. Debt securities that management has the positive intent and ability to hold to maturity are classified as held to maturity and recorded at amortized cost. Amortization of the net unrealized gain on securities held to maturity that were transferred from securities available for sale is recognized in other comprehensive income using the interest method over the estimated lives of the securities. Trading securities include those securities bought and held principally for the purpose of selling them in the near future. PSB has no trading securities. Securities not classified as either securities held to maturity or trading securities are considered available for sale and reported at fair value determined from estimates of brokers or other sources. Unrealized gains and losses are excluded from earnings but are reported as other comprehensive income, net of income tax effects. Amortization of premiums and accretion of discounts is recognized in interest income using the interest method over the estimated lives of the securities. | |
Gains and losses on the sale of securities are recorded on the trade date and determined using the specific-identification method. | |
Declines in fair value of securities that are deemed to be other than temporary, if applicable, are reflected in earnings as realized losses. In estimating other-than-temporary impairment losses, management considers the length of time and the extent to which fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of PSB to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. | |
Loans Held for Sale | Loans Held for Sale |
PSB sells substantially all 20- and 30-year long-term fixed-rate single-family mortgage loans and the majority of | |
15-year fixed-rate mortgage loans it originates to the secondary market. The gain or loss associated with sales of single-family mortgage loans is recorded as a component of mortgage banking revenue. | |
Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated market value in the aggregate. Net unrealized losses are recognized through a valuation allowance by charges to income. Gains and losses on the sale of loans held for sale are determined using the specific identification method using quoted market prices. | |
For sales of mortgage loans to the Federal Home Loan Bank (FHLB) prior to 2009, PSB retained a secondary portion of the credit risk on the underlying loans in exchange for a credit enhancement fee. When applicable, PSB records a recourse liability to provide for potential credit losses. PSB also provides representations and warranties regarding all originated loans sold to secondary market buyers including the FHLB and the Federal National Mortgage Association (FNMA). These representations and warranties can lead to additional credit risk for which PSB records a recourse liability. Because the loans involved in these transactions are similar to those in PSB’s loans held for investment, the review of the adequacy of the recourse liability is similar to the review of the adequacy of the allowance for loan losses (refer to “Allowance for Loan Losses”). | |
Loans | Loans |
Loans that management has the intent to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for loan losses, and any deferred fees or costs on originated loans. Interest on loans is credited to income as earned. Interest income is not accrued on loans where management has determined collection of such interest is doubtful or those loans which are past due 90 days or more as to principal or interest payments. When a loan is placed on nonaccrual status, previously accrued but unpaid interest deemed uncollectible is reversed and charged against current income. After being placed on nonaccrual status, additional income is recorded only to the extent that payments are received and the collection of principal becomes reasonably assured. Interest income recognition on loans considered to be impaired is consistent with the recognition on all other loans. | |
Loan origination fees and certain direct loan origination costs are deferred and recognized as an adjustment of the related loan yield using the interest method. | |
Allowance for Loan Losses | Allowance for Loan Losses |
The allowance for loan losses is established through a provision for loan losses charged to expense. Loans are charged against the allowance for loan losses when management believes the collectability of the principal is unlikely. | |
Management maintains the allowance for loan losses at a level to cover probable credit losses relating to specifically identified loans, as well as probable credit losses inherent in the balance of the loan portfolio. In accordance with current accounting standards, the allowance is provided for losses that have been incurred based on events that have occurred as of the balance sheet date. The allowance is based on past events and current economic conditions and does not include the effects of expected losses on specific loans or groups of loans that are related to future events or expected changes in economic conditions. 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. | |
The allowance for loan losses includes specific allowances related to loans which have been judged to be impaired. A loan is impaired when, based on current information, it is probable that PSB will not collect all amounts due in accordance with the contractual terms of the loan agreement. Management has determined that all loans that have a nonaccrual status or have had their terms restructured, meet this definition. Loans currently maintained on accrual status but expected to be placed on nonaccrual or have their terms restructured in the near term are also considered impaired. Large groups of homogeneous loans, such as mortgage and consumer loans, are not collectively evaluated for impairment. Specific allowances on impaired loans are based on discounted cash flows of expected future payments using the loan’s initial effective interest rate or the fair value of the collateral if the loan is collateral dependent. | |
In addition, various regulatory agencies periodically review the allowance for loan losses. These agencies may require PSB to make additions to the allowance for loan losses based on their judgments of collectability resulting from information available to them at the time of their examination. | |
Foreclosed Assets | Foreclosed Assets |
Real estate and other property acquired through, or in lieu of, loan foreclosure are initially recorded at fair value (after deducting estimated costs to sell) at the date of foreclosure, establishing a new cost basis. Costs related to development and improvement of property are capitalized, whereas costs related to holding property are expensed. After foreclosure, valuations are periodically performed by management, and the real estate or other property is carried at the lower of carrying amount or fair value less estimated costs to sell. Revenue and expenses from operations and changes in any valuation allowance are included in loss on foreclosed assets. | |
Premises and Equipment | Premises and Equipment |
Premises and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed principally on the straight-line method and is based on the estimated useful lives of the assets varying primarily from 15 to 40 years on buildings, 5 to 10 years on furniture and equipment, and 3 years on computer hardware and software. Maintenance and repair costs are charged to expense as incurred. Gains or losses on disposition of property and equipment are reflected in income. | |
Mortgage Servicing Rights | Mortgage Servicing Rights |
PSB services the single-family mortgages it sells to the FHLB and FNMA. Servicing mortgage loans includes such functions as collecting monthly payments of principal and interest from borrowers, passing such payments through to third-party investors, maintaining escrow accounts for taxes and insurance, and making such payments when they are due. When necessary, servicing mortgage loans also includes functions related to the collection of delinquent principal and interest payments, loan foreclosure proceedings, and disposition of foreclosed real estate. PSB generally earns a servicing fee of 25 basis points (.25% annually) on the outstanding loan balance for performing these services as well as fees and interest income from ancillary sources such as delinquency charges and payment float. Servicing fee income is recorded as a component of mortgage banking revenue, net of the amortization and charges described in the following paragraphs. | |
PSB records originated mortgage servicing rights (OMSR) as a component of mortgage banking income when the obligation to service such loans has been retained. The initial value recorded for OMSR is based on the fair values of the servicing fee adjusted for expected future costs to service the loans, as well as income and fees expected to be received from ancillary sources, as previously described. The carrying value of OMSR is amortized against service fee income in proportion to estimated gross servicing revenues, net of estimated costs of servicing, adjusted for expected prepayments. In addition to this periodic amortization, the carrying value of OMSR associated with loans that actually prepay is also charged against servicing fee income as amortization. During periods of falling long-term interest rates, prepayments would likely accelerate, increasing amortization of existing OMSR against servicing fee income, and impair the value of OMSR as described below. | |
The carrying value of OMSR recorded in PSB’s consolidated balance sheets (“mortgage servicing rights” or MSRs) is subject to impairment because of changes in loan prepayment expectations and in market discount rates used to value the future cash flows associated with such assets. In valuing MSRs, PSB stratifies the loans by year of origination, term of the loan, and range of interest rates within each term. If, based on a periodic evaluation, the estimated fair value of the MSRs related to a particular stratum is determined to be less than its carrying value, a valuation allowance is recorded against such stratum and against PSB’s loan servicing fee income, which is included as a component of mortgage banking revenue. If the periodic evaluation of impairment calls for a valuation allowance less than currently recorded, the decrease in the valuation allowance is recaptured, offsetting amortization from loan prepayments during the period and increasing mortgage banking revenue. The valuation allowance is calculated using the current outstanding principal balance of the related loans, long-term prepayment assumptions as provided by independent sources, a market-based discount rate, and other management assumptions related to future costs to service the loans, as well as ancillary sources of income. | |
Federal Home Loan Bank Stock | Federal Home Loan Bank Stock |
As a member of the FHLB system, PSB is required to hold stock in the FHLB of Chicago based on the level of borrowings advanced to PSB. This stock is recorded at cost, which approximates fair value. The stock is evaluated for impairment on an annual basis. Transfer of the stock is substantially restricted. | |
Bank-Owned Life Insurance | Bank-Owned Life Insurance |
PSB has purchased life insurance policies on certain officers. Bank-owned life insurance is recorded at its cash surrender value. Changes in cash surrender value are recorded in noninterest income. | |
Retirement Plans | Retirement Plans |
PSB maintains a defined contribution 401(k) profit sharing plan which covers substantially all full-time employees. | |
Income Taxes | Income Taxes |
Deferred income taxes have been provided under the liability method. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates which will be in effect when these differences are expected to reverse. Deferred tax expense is the result of changes in the deferred tax asset and liability and is a component of the provision for income taxes. | |
PSB may also recognize a liability for unrecognized tax benefits from uncertain tax positions. Unrecognized tax benefits represent the difference between a tax position taken or expected to be taken in a tax return and the benefit recognized and measured in the financial statements. Interest and penalties related to unrecognized benefits are recorded as additional income tax expense. | |
Advertising and Promotional Costs | Advertising and Promotional Costs |
Costs relating to PSB’s advertising and promotion are generally expensed when paid. | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities |
All derivative instruments are recorded at their fair values. If derivative instruments are designated as hedges of fair values, both the change in the fair value of the hedge and the hedged item are included in current earnings. Fair value adjustments related to cash flow hedges are recorded in other comprehensive income and reclassified to earnings when the hedged transaction is reflected in earnings. Ineffective portions of hedges are reflected in income. The fair value of derivative instruments is not offset against cash collateral paid to secure those instruments but is reflected as gross amounts outstanding on the consolidated balance sheets. | |
Rate Lock Commitments | Rate Lock Commitments |
PSB enters into commitments to originate loans whereby the interest rate on the loan is determined prior to funding (rate lock commitments). Rate lock commitments on mortgage loans that are intended to be sold are considered to be derivatives. Rate lock commitments are recorded at fair value at period-end and classified as other assets on the consolidated balance sheets. Changes in the fair value of rate lock commitments during the period are reflected in the current period’s income statement as mortgage banking income. The fair value of rate lock commitments includes the estimated gain on sale of the loan to the secondary market agency plus the estimated value of OMSR on loans expected to be closed. | |
Fair Values of Financial Instruments | Fair Values of Financial Instruments |
Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 23. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. The fair value estimates of existing on- and off-balance-sheet financial instruments do not include the value of anticipated future business or the values of assets and liabilities not considered financial instruments. | |
Segment Information | Segment Information |
PSB, through the branch network of its banking subsidiary, provides a full range of consumer and commercial banking services to individuals, businesses, governments, and farms in northcentral Wisconsin. These services include demand, time, and savings deposits; safe deposit services; debit and credit cards; notary services; night depository; money orders, traveler’s checks, and cashier’s checks; savings bonds; secured and unsecured consumer, commercial, and real estate loans; ATM processing; cash management; and wealth management. While PSB’s chief decision makers monitor the revenue streams of various PSB products and services, operations are managed and financial performance is evaluated on a companywide basis. Accordingly, all of PSB’s banking operations are considered by management to be aggregated in one reportable operating segment. | |
Stock-Based Compensation | Stock-Based Compensation |
PSB uses the fair value based method of accounting for employee stock compensation plans, whereby compensation cost is measured at the grant date based on the value of the award and is recognized as expense over the service period, which is normally the vesting period. | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) |
PSB’s accumulated other comprehensive income (loss) is composed of the unrealized gain (loss) on securities available for sale, net of tax, unrealized gain (loss) on interest rate swaps used for cash flow hedges after reclassification of settlements of the hedged item, net of tax, and unamortized unrealized gain on securities transferred to securities held to maturity from securities available for sale, net of tax, and is shown on the consolidated statements of comprehensive income. | |
Future Accounting Changes | Future Accounting Changes |
FASB ASC Topic 310, Receivables. In January 2014, new authoritative accounting guidance was issued that defined when a lender has obtained physical possession of residential real estate collateral, requiring charge-off of the loan and recognition as foreclosed property. In addition, additional disclosures on the amount of residential real estate included in foreclosed assets as well as the amount of residential loans in the process of foreclosure are required for each period end. These new rules become effective for quarterly periods beginning January 1, 2015. Adoption of this new guidance is not expected to have a significant impact on PSB’s results of operations or financial statements. | |
FASB ASC Topic 606, Revenue from Contracts with Customers. In May 2014, new authoritative accounting guidance was issued that provides guidance on when it is appropriate to recognize customer sales agreements as revenue. This large standard has limited impact on PSB as loans, deposits, and other financial instruments are excluded from the scope of the standard. However sales of foreclosed property and certain noninterest income from contracts with customers, such as insurance contracts, are subject to new rules applied on an individual transaction basis. The standard is effective for quarterly periods beginning January 1, 2017. Adoption of this new guidance is not expected to have a significant impact on PSB’s results of operations or financial statements. | |
Reclassifications | Reclassifications |
Certain prior year balances have been reclassified to conform to the current year presentation. | |
Subsequent Events | Subsequent Events |
Management has reviewed PSB’s operations for potential disclosure of information or financial statement impacts related to events occurring after December 31, 2014, but prior to the release of these financial statements. Based on the results of this review, no subsequent event disclosures or financial statement impacts to the recently completed year are required as of the release date. |
Merger_and_Acquisition_Activit1
Merger and Acquisition Activity (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Merger and Acquisition Activity [Abstract] | |||||||||||||||||
Schedule of acquisition | Fair value of assets acquired: | ||||||||||||||||
Cash and due from banks | $ | 17,741 | |||||||||||||||
Loans receivable, including accrued interest | 21,365 | ||||||||||||||||
Premises and equipment | 1,368 | ||||||||||||||||
Core deposit intangible | 231 | ||||||||||||||||
Goodwill | 113 | ||||||||||||||||
Total fair value of assets acquired | $ | 40,818 | |||||||||||||||
Fair value of liabilities assumed: | |||||||||||||||||
Non-interest bearing deposits | $ | 3,890 | |||||||||||||||
Interest-bearing deposits, including accrued interest | 36,912 | ||||||||||||||||
Other liabilities | 16 | ||||||||||||||||
Fair value of liabilities assumed | $ | 40,818 | |||||||||||||||
Schedule of business acquisitions purchase of marathon state bank | Cash purchase price | $ | 5,505 | ||||||||||||||
Fair value of assets acquired: | |||||||||||||||||
Cash and due from banks | 20,392 | ||||||||||||||||
Securities available for sale | 50,547 | ||||||||||||||||
Loans receivable | 23,760 | ||||||||||||||||
Short-term commercial paper and bankers’ acceptances | 11,713 | ||||||||||||||||
Foreclosed assets | 0 | ||||||||||||||||
Premises and equipment | 402 | ||||||||||||||||
Core deposit intangible | 0 | ||||||||||||||||
Accrued interest receivable and other assets | 550 | ||||||||||||||||
Total fair value of assets acquired | 107,364 | ||||||||||||||||
Fair value of liabilities assumed: | |||||||||||||||||
Non-interest-bearing deposits | 23,255 | ||||||||||||||||
Interest-bearing deposits | 77,611 | ||||||||||||||||
Accrued interest payable and other liabilities | 142 | ||||||||||||||||
Total fair value of liabilities assumed | 101,008 | ||||||||||||||||
Fair value of net assets acquired | 6,356 | ||||||||||||||||
Gain on bargain purchase | $ | 851 | |||||||||||||||
Schedule of Pro forma combined results of operations | (pro forma combined at beginning of period) | ||||||||||||||||
Net Interest | Noninterest | Net | Earnings | ||||||||||||||
Income | Income | Income | Per Share | ||||||||||||||
PSB Holdings, Inc. | $ | 19,670 | $ | 5,706 | $ | 5,587 | $ | 3.36 | |||||||||
Marathon State Bank | 1,158 | 880 | 468 | 0.28 | |||||||||||||
Pro forma totals | $ | 20,828 | $ | 6,586 | $ | 6,055 | $ | 3.64 |
Securities_Tables
Securities (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Securities [Abstract] | |||||||||||||||||||||||||
Schedule of amortized cost and estimated fair value of investment securities | Gross | Gross | Estimated | ||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Securities available for sale | |||||||||||||||||||||||||
U.S. agency issued residential mortgage-backed securities | $ | 45,626 | $ | 834 | $ | 124 | $ | 46,336 | |||||||||||||||||
U.S. agency issued residential collateralized mortgage obligations | 27,031 | 247 | 262 | 27,016 | |||||||||||||||||||||
Privately issued residential collateralized mortgage obligations | 28 | 1 | 0 | 29 | |||||||||||||||||||||
Nonrated SBA loan fund | 950 | 0 | 0 | 950 | |||||||||||||||||||||
Other equity securities | 47 | 0 | 0 | 47 | |||||||||||||||||||||
Totals | $ | 73,682 | 1,082 | 386 | $ | 74,378 | |||||||||||||||||||
Securities held to maturity | |||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 67,836 | $ | 1,517 | $ | 162 | $ | 69,191 | |||||||||||||||||
Nonrated trust preferred securities | 1,543 | 26 | 155 | 1,414 | |||||||||||||||||||||
Nonrated senior subordinated notes | 400 | 4 | 0 | 404 | |||||||||||||||||||||
Totals | $ | 69,779 | $ | 1,547 | $ | 317 | $ | 71,009 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Securities available for sale | |||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 1,001 | $ | 0 | $ | 2 | $ | 999 | |||||||||||||||||
U.S. agency issued residential mortgage-backed securities | 21,388 | 522 | 424 | 21,486 | |||||||||||||||||||||
U.S. agency issued residential collateralized mortgage obligations | 37,998 | 482 | 576 | 37,904 | |||||||||||||||||||||
Privately issued residential collateralized mortgage obligations | 102 | 3 | 0 | 105 | |||||||||||||||||||||
Obligations of states and political subdivision | 159 | 0 | 0 | 159 | |||||||||||||||||||||
Nonrated SBA loan fund | 950 | 0 | 0 | 950 | |||||||||||||||||||||
Other equity securities | 47 | 0 | 0 | 47 | |||||||||||||||||||||
Totals | $ | 61,645 | $ | 1,007 | $ | 1,002 | $ | 61,650 | |||||||||||||||||
Securities held to maturity | |||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 69,704 | $ | 1,059 | $ | 887 | $ | 69,876 | |||||||||||||||||
Nonrated trust preferred securities | 1,524 | 30 | 165 | 1,389 | |||||||||||||||||||||
Nonrated senior subordinated notes | 401 | 6 | 0 | 407 | |||||||||||||||||||||
Totals | $ | 71,629 | $ | 1,095 | $ | 1,052 | $ | 71,672 | |||||||||||||||||
Schedule of securities in an unrealized loss position | Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Description of Securities | Value | Loss | Value | Loss | Value | Loss | |||||||||||||||||||
2014 | |||||||||||||||||||||||||
Securities available for sale | |||||||||||||||||||||||||
U.S. agency issued residential mortgage-backed securities | $ | 5,555 | $ | 22 | $ | 6,787 | $ | 102 | $ | 12,342 | $ | 124 | |||||||||||||
U.S. agency issued residential collateralized mortgage obligations | 3,267 | 16 | 9,844 | 246 | 13,111 | 262 | |||||||||||||||||||
Totals | $ | 8,822 | $ | 38 | $ | 16,631 | $ | 348 | $ | 25,453 | $ | 386 | |||||||||||||
Securities held to maturity | |||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 4,015 | $ | 38 | $ | 6,103 | $ | 124 | $ | 10,118 | $ | 162 | |||||||||||||
Nonrated trust preferred securities | 0 | 0 | 706 | 155 | 706 | 155 | |||||||||||||||||||
Totals | $ | 4,015 | $ | 38 | $ | 6,809 | $ | 279 | $ | 10,824 | $ | 317 | |||||||||||||
Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Description of Securities | Value | Loss | Value | Loss | Value | Loss | |||||||||||||||||||
2013 | |||||||||||||||||||||||||
Securities available for sale | |||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 999 | $ | 2 | $ | 0 | $ | 0 | $ | 999 | $ | 2 | |||||||||||||
U.S. agency issued residential mortgage-backed securities | 13,206 | 424 | 0 | 0 | 13,206 | 424 | |||||||||||||||||||
U.S. agency issued residential collateralized mortgage obligations | 14,179 | 334 | 5,830 | 242 | 20,009 | 576 | |||||||||||||||||||
Obligations of states and political subdivisions | 159 | 0 | 0 | 0 | 159 | 0 | |||||||||||||||||||
Totals | $ | 28,543 | $ | 760 | $ | 5,830 | $ | 242 | $ | 34,373 | $ | 1,002 | |||||||||||||
Securities held to maturity | |||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 23,017 | $ | 806 | $ | 1,073 | $ | 81 | $ | 24,090 | $ | 887 | |||||||||||||
Non rated trust preferred securities | 368 | 102 | 322 | 63 | 690 | 165 | |||||||||||||||||||
Totals | $ | 23,385 | $ | 908 | $ | 1,395 | $ | 144 | $ | 24,780 | $ | 1,052 | |||||||||||||
Schedule of amortized cost and estimated fair value of debt securities and nonrated trust preferred securities by contractual maturity | Available for Sale | Held to Maturity | |||||||||||||||||||||||
Estimated | Estimated | ||||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | ||||||||||||||||||||||
Cost | Value | Cost | Value | ||||||||||||||||||||||
Due in one year or less | $ | 0 | $ | 0 | $ | 4,568 | $ | 4,588 | |||||||||||||||||
Due after one year through five years | 0 | 0 | 24,288 | 24,885 | |||||||||||||||||||||
Due after five years through ten years | 0 | 0 | 37,826 | 38,531 | |||||||||||||||||||||
Due after ten years | 0 | 0 | 3,097 | 3,005 | |||||||||||||||||||||
Subtotals | 0 | 0 | 69,779 | 71,009 | |||||||||||||||||||||
Mortgage-backed securities and collateralized mortgage obligations | 72,685 | 73,381 | 0 | 0 | |||||||||||||||||||||
Totals | $ | 72,685 | $ | 73,381 | $ | 69,779 | $ | 71,009 | |||||||||||||||||
Schedule of amortization of unrealized gain on securities | 2015 | $ | 274 | ||||||||||||||||||||||
2016 | 194 | ||||||||||||||||||||||||
2017 | 115 | ||||||||||||||||||||||||
2018 | 68 | ||||||||||||||||||||||||
2019 | 22 | ||||||||||||||||||||||||
Thereafter | 22 | ||||||||||||||||||||||||
Total | $ | 695 |
Loans_Tables
Loans (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Loans [Abstract] | |||||||||||||||||||||||||||||
Schedule of composition of loans categorized by the type of loan | 2014 | 2013 | |||||||||||||||||||||||||||
Commercial, industrial, and municipal | $ | 134,768 | $ | 130,220 | |||||||||||||||||||||||||
Commercial real estate mortgage | 203,501 | 212,850 | |||||||||||||||||||||||||||
Commercial construction and development | 31,364 | 13,672 | |||||||||||||||||||||||||||
Residential real estate mortgage | 128,347 | 123,980 | |||||||||||||||||||||||||||
Residential construction and development | 13,711 | 18,277 | |||||||||||||||||||||||||||
Residential real estate home equity | 23,517 | 20,677 | |||||||||||||||||||||||||||
Consumer and individual | 3,627 | 3,567 | |||||||||||||||||||||||||||
Subtotals – Gross loans | 538,835 | 523,243 | |||||||||||||||||||||||||||
Loans in process of disbursement | (7,145 | ) | (6,895 | ) | |||||||||||||||||||||||||
Subtotals – Disbursed loans | 531,690 | 516,348 | |||||||||||||||||||||||||||
Net deferred loan costs | 302 | 315 | |||||||||||||||||||||||||||
Allowance for loan losses | (6,409 | ) | (6,783 | ) | |||||||||||||||||||||||||
Net loans receivable | $ | 525,583 | $ | 509,880 | |||||||||||||||||||||||||
Schedule of loans to its executive officers and directors | 2014 | 2013 | |||||||||||||||||||||||||||
Loans outstanding at beginning | $ | 6,663 | $ | 7,371 | |||||||||||||||||||||||||
New loans | 1,500 | 3,519 | |||||||||||||||||||||||||||
Repayments | (1,183 | ) | (4,227 | ) | |||||||||||||||||||||||||
Loans outstanding at end | $ | 6,980 | $ | 6,663 | |||||||||||||||||||||||||
Schedule of allowance for loan losses | 2014 | ||||||||||||||||||||||||||||
Commercial | Residential | ||||||||||||||||||||||||||||
Commercial | Real Estate | Real Estate | Consumer | Unallocated | Total | ||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||
Beginning balance | $ | 2,828 | $ | 2,653 | $ | 1,223 | $ | 79 | – | $ | 6,783 | ||||||||||||||||||
Provision (credit) | (716 | ) | (321 | ) | 1,564 | 33 | – | 560 | |||||||||||||||||||||
Recoveries | 4 | 3 | 19 | 9 | – | 35 | |||||||||||||||||||||||
Charge-offs | (215 | ) | (41 | ) | (694 | ) | (19 | ) | – | (969 | ) | ||||||||||||||||||
Ending balance | $ | 1,901 | $ | 2,294 | $ | 2,112 | $ | 102 | – | $ | 6,409 | ||||||||||||||||||
Individually evaluated for impairment | $ | 976 | $ | 511 | $ | 746 | $ | 25 | – | $ | 2,258 | ||||||||||||||||||
Collectively evaluated for impairment | $ | 925 | $ | 1,783 | $ | 1,366 | $ | 77 | – | $ | 4,151 | ||||||||||||||||||
Loans receivable (gross): | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 10,542 | $ | 5,378 | $ | 3,203 | $ | 25 | – | $ | 19,148 | ||||||||||||||||||
Collectively evaluated for impairment | $ | 124,226 | $ | 229,487 | $ | 162,372 | $ | 3,602 | – | $ | 519,687 | ||||||||||||||||||
2013 | |||||||||||||||||||||||||||||
Commercial | Residential | ||||||||||||||||||||||||||||
Commercial | Real Estate | Real Estate | Consumer | Unallocated | Total | ||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||
Beginning balance | $ | 3,014 | $ | 2,803 | $ | 1,511 | $ | 103 | $ | 0 | $ | 7,431 | |||||||||||||||||
Provision (credit) | 3,435 | (9 | ) | 556 | 33 | 0 | 4,015 | ||||||||||||||||||||||
Recoveries | 29 | 33 | 6 | 12 | 0 | 80 | |||||||||||||||||||||||
Charge-offs | (3,650 | ) | (174 | ) | (850 | ) | (69 | ) | 0 | (4,743 | ) | ||||||||||||||||||
Ending balance | $ | 2,828 | $ | 2,653 | $ | 1,223 | $ | 79 | $ | 0 | $ | 6,783 | |||||||||||||||||
Individually evaluated for impairment | $ | 1,167 | $ | 695 | $ | 228 | $ | 18 | $ | 0 | $ | 2,108 | |||||||||||||||||
Collectively evaluated for impairment | $ | 1,661 | $ | 1,958 | $ | 995 | $ | 61 | $ | 0 | $ | 4,675 | |||||||||||||||||
Loans receivable (gross): | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 8,102 | $ | 5,527 | $ | 2,129 | $ | 17 | $ | 0 | $ | 15,775 | |||||||||||||||||
Collectively evaluated for impairment | $ | 122,118 | $ | 220,995 | $ | 160,805 | $ | 3,550 | $ | 0 | $ | 507,468 | |||||||||||||||||
2012 | |||||||||||||||||||||||||||||
Commercial | Residential | ||||||||||||||||||||||||||||
Commercial | Real Estate | Real Estate | Consumer | Unallocated | Total | ||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||
Beginning balance | $ | 3,406 | $ | 3,175 | $ | 1,242 | $ | 118 | $ | 0 | $ | 7,941 | |||||||||||||||||
Provision (credit) | (270 | ) | 142 | 877 | 36 | 0 | 785 | ||||||||||||||||||||||
Recoveries | 6 | 4 | 21 | 6 | 0 | 37 | |||||||||||||||||||||||
Charge-offs | (128 | ) | (518 | ) | (629 | ) | (57 | ) | 0 | (1,332 | ) | ||||||||||||||||||
Ending balance | $ | 3,014 | $ | 2,803 | $ | 1,511 | $ | 103 | $ | 0 | $ | 7,431 | |||||||||||||||||
Individually evaluated for impairment | $ | 1,327 | $ | 674 | $ | 407 | $ | 26 | $ | 0 | $ | 2,434 | |||||||||||||||||
Collectively evaluated for impairment | $ | 1,687 | $ | 2,129 | $ | 1,104 | $ | 77 | $ | 0 | $ | 4,997 | |||||||||||||||||
Loans receivable (gross): | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 5,263 | $ | 4,204 | $ | 2,946 | $ | 26 | $ | 0 | $ | 12,439 | |||||||||||||||||
Collectively evaluated for impairment | $ | 127,370 | $ | 208,096 | $ | 139,636 | $ | 4,689 | $ | 0 | $ | 479,791 | |||||||||||||||||
Schedule of loans by credit exposure | 2014 | ||||||||||||||||||||||||||||
Commercial | Commercial Real Estate | Construction & Development | Agricultural | Government | Total | ||||||||||||||||||||||||
High quality (risk rating 1) | $ | 147 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 147 | |||||||||||||||||
Minimal risk (2) | 26,159 | 19,062 | 785 | 1,937 | 60 | 48,003 | |||||||||||||||||||||||
Average risk (3) | 49,996 | 122,875 | 23,672 | 2,628 | 6,980 | 206,151 | |||||||||||||||||||||||
Acceptable risk (4) | 32,908 | 50,863 | 4,725 | 477 | 291 | 89,264 | |||||||||||||||||||||||
Watch risk (5) | 2,259 | 5,025 | 2,050 | 0 | 0 | 9,334 | |||||||||||||||||||||||
Substandard risk (6) | 384 | 430 | 0 | 0 | 0 | 814 | |||||||||||||||||||||||
Impaired loans (7) | 7,645 | 5,246 | 132 | 122 | 2,775 | 15,920 | |||||||||||||||||||||||
Totals | $ | 119,498 | $ | 203,501 | $ | 31,364 | $ | 5,164 | $ | 10,106 | $ | 369,633 | |||||||||||||||||
2013 | |||||||||||||||||||||||||||||
Commercial | Commercial Real Estate | Construction & Development | Agricultural | Government | Total | ||||||||||||||||||||||||
High quality (risk rating 1) | $ | 44 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 44 | |||||||||||||||||
Minimal risk (2) | 24,085 | 19,249 | 120 | 1,115 | 78 | 44,647 | |||||||||||||||||||||||
Average risk (3) | 51,745 | 145,673 | 8,863 | 2,563 | 6,512 | 215,356 | |||||||||||||||||||||||
Acceptable risk (4) | 26,395 | 34,154 | 2,917 | 424 | 357 | 64,247 | |||||||||||||||||||||||
Watch risk (5) | 8,146 | 7,572 | 1,632 | 0 | 0 | 17,350 | |||||||||||||||||||||||
Substandard risk (6) | 654 | 815 | 0 | 0 | 0 | 1,469 | |||||||||||||||||||||||
Impaired loans (7) | 4,860 | 5,387 | 140 | 152 | 3,090 | 13,629 | |||||||||||||||||||||||
Totals | $ | 115,929 | $ | 212,850 | $ | 13,672 | $ | 4,254 | $ | 10,037 | $ | 356,742 | |||||||||||||||||
2014 | |||||||||||||||||||||||||||||
Residential- | Residential- | Construction and | |||||||||||||||||||||||||||
Prime | HELOC | Development | Consumer | Total | |||||||||||||||||||||||||
Performing | $ | 126,035 | $ | 23,117 | $ | 13,220 | $ | 3,602 | $ | 165,974 | |||||||||||||||||||
Impaired loans | 2,312 | 400 | 491 | 25 | 3,228 | ||||||||||||||||||||||||
Totals | $ | 128,347 | $ | 23,517 | $ | 13,711 | $ | 3,627 | $ | 169,202 | |||||||||||||||||||
2013 | |||||||||||||||||||||||||||||
Residential- | Residential- | Construction and | |||||||||||||||||||||||||||
Prime | HELOC | Development | Consumer | Total | |||||||||||||||||||||||||
Performing | $ | 122,408 | $ | 20,167 | $ | 18,230 | $ | 3,550 | $ | 164,355 | |||||||||||||||||||
Impaired loans | 1,572 | 510 | 47 | 17 | 2,146 | ||||||||||||||||||||||||
Totals | $ | 123,980 | $ | 20,677 | $ | 18,277 | $ | 3,567 | $ | 166,501 | |||||||||||||||||||
Schedule of payment age analysis of loans receivable | 2014 | ||||||||||||||||||||||||||||
30-59 | 60-89 | 90+ | Total | Total | 90+ and | ||||||||||||||||||||||||
Loan Class | Days | Days | Days | Past Due | Current | Loans | Accruing | ||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 532 | $ | 49 | $ | 470 | $ | 1,051 | $ | 118,448 | $ | 119,498 | $ | 0 | |||||||||||||||
Agricultural | 0 | 0 | 122 | 122 | 5,042 | 5,164 | 0 | ||||||||||||||||||||||
Government | 0 | 0 | 0 | 0 | 10,106 | 10,106 | 0 | ||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Commercial real estate | 331 | 0 | 793 | 1,124 | 202,376 | 203,501 | 0 | ||||||||||||||||||||||
Construction and development | 81 | 0 | 0 | 81 | 26,044 | 26,125 | 0 | ||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||||||
Residential – Prime | 361 | 321 | 1,184 | 1,866 | 126,481 | 128,347 | 0 | ||||||||||||||||||||||
Residential – HELOC | 79 | 102 | 171 | 352 | 23,165 | 23,517 | 0 | ||||||||||||||||||||||
Construction and development | 111 | 0 | 145 | 256 | 11,549 | 11,805 | 0 | ||||||||||||||||||||||
Consumer | 11 | 4 | 0 | 15 | 3,612 | 3,627 | 0 | ||||||||||||||||||||||
Totals | $ | 1,506 | $ | 476 | $ | 2,885 | $ | 4,867 | $ | 526,823 | $ | 531,690 | $ | 0 | |||||||||||||||
2013 | |||||||||||||||||||||||||||||
30-59 | 60-89 | 90+ | Total | Total | 90+ and | ||||||||||||||||||||||||
Loan Class | Days | Days | Days | Past Due | Current | Loans | Accruing | ||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 284 | $ | 57 | $ | 610 | $ | 951 | $ | 114,978 | $ | 115,929 | $ | 0 | |||||||||||||||
Agricultural | 0 | 0 | 152 | 152 | 4,102 | 4,254 | 0 | ||||||||||||||||||||||
Government | 0 | 0 | 0 | 0 | 10,037 | 10,037 | 0 | ||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Commercial real estate | 376 | 547 | 1,276 | 2,199 | 210,651 | 212,850 | 0 | ||||||||||||||||||||||
Construction and development | 0 | 0 | 0 | 0 | 11,434 | 11,434 | 0 | ||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||||||
Residential – Prime | 369 | 87 | 335 | 791 | 123,189 | 123,980 | 0 | ||||||||||||||||||||||
Residential – HELOC | 45 | 14 | 314 | 373 | 20,304 | 20,677 | 0 | ||||||||||||||||||||||
Construction and development | 37 | 0 | 0 | 37 | 13,583 | 13,620 | 0 | ||||||||||||||||||||||
Consumer | 15 | 10 | 9 | 34 | 3,533 | 3,567 | 0 | ||||||||||||||||||||||
Totals | $ | 1,126 | $ | 715 | $ | 2,696 | $ | 4,537 | $ | 511,811 | $ | 516,348 | $ | 0 | |||||||||||||||
Schedule of impaired loans | December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Impaired loans without a valuation allowance | $ | 9,021 | $ | 9,303 | $ | 3,410 | |||||||||||||||||||||||
Impaired loans with a valuation allowance | 10,127 | 6,472 | 9,029 | ||||||||||||||||||||||||||
Total impaired loans before valuation allowances | 19,148 | 15,775 | 12,439 | ||||||||||||||||||||||||||
Valuation allowance related to impaired loans | 2,258 | 2,108 | 2,434 | ||||||||||||||||||||||||||
Net impaired loans | $ | 16,890 | $ | 13,667 | $ | 10,005 | |||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Average recorded investment, net of allowance for loan losses | $ | 17,465 | $ | 14,109 | $ | 12,026 | |||||||||||||||||||||||
Interest income recognized | $ | 586 | $ | 534 | $ | 569 | |||||||||||||||||||||||
Interest income recognized on a cash basis on impaired loans | $ | 0 | $ | 0 | $ | 0 | |||||||||||||||||||||||
Schedule of impaired loans, by loan class | 2014 | ||||||||||||||||||||||||||||
Unpaid | Average | Interest | |||||||||||||||||||||||||||
Principal | Related | Recorded | Recorded | Income | |||||||||||||||||||||||||
Balance | Allowance | Investment | Investment | Recognized | |||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 2,285 | $ | 0 | $ | 2,235 | $ | 2,549 | $ | 195 | |||||||||||||||||||
Commercial real estate | 2,836 | 0 | 2,577 | 2,476 | 86 | ||||||||||||||||||||||||
Commercial construction and development | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Agricultural | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Government | 2,775 | 0 | 2,775 | 2,933 | 72 | ||||||||||||||||||||||||
Residential – Prime | 1,377 | 0 | 1,281 | 1,074 | 34 | ||||||||||||||||||||||||
Residential – HELOC | 153 | 0 | 153 | 132 | 5 | ||||||||||||||||||||||||
Residential construction and development | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Consumer | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 5,697 | $ | 940 | $ | 5,410 | $ | 3,705 | $ | 162 | |||||||||||||||||||
Commercial real estate | 3,041 | 488 | 2,669 | 2,840 | 7 | ||||||||||||||||||||||||
Commercial construction and development | 135 | 23 | 132 | 136 | 6 | ||||||||||||||||||||||||
Agricultural | 127 | 36 | 122 | 137 | 0 | ||||||||||||||||||||||||
Residential – Prime | 1,538 | 390 | 1,031 | 869 | 18 | ||||||||||||||||||||||||
Residential – HELOC | 273 | 186 | 247 | 324 | 0 | ||||||||||||||||||||||||
Residential construction and development | 503 | 170 | 491 | 269 | 1 | ||||||||||||||||||||||||
Consumer | 26 | 25 | 25 | 21 | 0 | ||||||||||||||||||||||||
Totals: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 7,982 | $ | 940 | $ | 7,645 | $ | 6,254 | $ | 357 | |||||||||||||||||||
Commercial real estate | 5,877 | 488 | 5,246 | 5,316 | 93 | ||||||||||||||||||||||||
Commercial construction and development | 135 | 23 | 132 | 136 | 6 | ||||||||||||||||||||||||
Agricultural | 127 | 36 | 122 | 137 | 0 | ||||||||||||||||||||||||
Government | 2,775 | 0 | 2,775 | 2,933 | 72 | ||||||||||||||||||||||||
Residential – Prime | 2,915 | 390 | 2,312 | 1,943 | 52 | ||||||||||||||||||||||||
Residential – HELOC | 426 | 186 | 400 | 456 | 5 | ||||||||||||||||||||||||
Residential construction and development | 503 | 170 | 491 | 269 | 1 | ||||||||||||||||||||||||
Consumer | 26 | 25 | 25 | 21 | 0 | ||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||
Unpaid | Average | Interest | |||||||||||||||||||||||||||
Principal | Related | Recorded | Recorded | Income | |||||||||||||||||||||||||
Balance | Allowance | Investment | Investment | Recognized | |||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 2,906 | $ | 0 | $ | 2,861 | $ | 2,172 | $ | 135 | |||||||||||||||||||
Commercial real estate | 2,555 | 0 | 2,376 | 1,740 | 85 | ||||||||||||||||||||||||
Commercial construction and development | 1 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Agricultural | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Government | 3,090 | 0 | 3,090 | 1,545 | 150 | ||||||||||||||||||||||||
Residential – Prime | 979 | 0 | 866 | 845 | 14 | ||||||||||||||||||||||||
Residential – HELOC | 110 | 0 | 110 | 55 | 3 | ||||||||||||||||||||||||
Residential construction and development | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Consumer | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 2,231 | $ | 1,112 | $ | 1,999 | $ | 2,813 | $ | 43 | |||||||||||||||||||
Commercial real estate | 3,143 | 621 | 3,011 | 2,955 | 81 | ||||||||||||||||||||||||
Commercial construction and development | 142 | 74 | 140 | 171 | 8 | ||||||||||||||||||||||||
Agricultural | 152 | 55 | 152 | 153 | 0 | ||||||||||||||||||||||||
Residential – Prime | 749 | 101 | 706 | 1,085 | 9 | ||||||||||||||||||||||||
Residential – HELOC | 412 | 119 | 400 | 453 | 5 | ||||||||||||||||||||||||
Residential construction and development | 49 | 8 | 47 | 106 | 1 | ||||||||||||||||||||||||
Consumer | 19 | 18 | 17 | 22 | 0 | ||||||||||||||||||||||||
Totals: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 5,137 | $ | 1,112 | $ | 4,860 | $ | 4,985 | $ | 178 | |||||||||||||||||||
Commercial real estate | 5,698 | 621 | 5,387 | 4,695 | 166 | ||||||||||||||||||||||||
Commercial construction and development | 143 | 74 | 140 | 171 | 8 | ||||||||||||||||||||||||
Agricultural | 152 | 55 | 152 | 153 | 0 | ||||||||||||||||||||||||
Government | 3,090 | 0 | 3,090 | 1,545 | 150 | ||||||||||||||||||||||||
Residential – Prime | 1,728 | 101 | 1,572 | 1,930 | 23 | ||||||||||||||||||||||||
Residential – HELOC | 522 | 119 | 510 | 508 | 8 | ||||||||||||||||||||||||
Residential construction and development | 49 | 8 | 47 | 106 | 1 | ||||||||||||||||||||||||
Consumer | 19 | 18 | 17 | 22 | 0 | ||||||||||||||||||||||||
Schedule of loans on nonaccrual status | 2014 | 2013 | |||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 2,519 | $ | 1,575 | |||||||||||||||||||||||||
Agricultural | 122 | 152 | |||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Commercial real estate | 3,505 | 4,103 | |||||||||||||||||||||||||||
Construction and development | 18 | 17 | |||||||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||||||
Residential – Prime | 1,426 | 1,059 | |||||||||||||||||||||||||||
Residential – HELOC | 280 | 387 | |||||||||||||||||||||||||||
Construction and development | 476 | 30 | |||||||||||||||||||||||||||
Consumer | 25 | 17 | |||||||||||||||||||||||||||
Totals | $ | 8,371 | $ | 7,340 | |||||||||||||||||||||||||
Schedule of modifications of troubled debt | |||||||||||||||||||||||||||||
Postmodification | |||||||||||||||||||||||||||||
Premodification | Outstanding | ||||||||||||||||||||||||||||
Outstanding | Recorded | ||||||||||||||||||||||||||||
Number of | Recorded | Investment | |||||||||||||||||||||||||||
As of December 31, 2014 | contracts | Investment | at Period-End | ||||||||||||||||||||||||||
Commercial and industrial | 5 | $ | 1,252 | $ | 1,152 | ||||||||||||||||||||||||
Commercial and real estate | 7 | 1,469 | 1,374 | ||||||||||||||||||||||||||
Government | 1 | 2,775 | 2,775 | ||||||||||||||||||||||||||
Residential real estate - Prime | 3 | 401 | 275 | ||||||||||||||||||||||||||
Number of Contracts | Recorded Investment at | ||||||||||||||||||||||||||||
Period-End | |||||||||||||||||||||||||||||
Commercial and industrial | 4 | $ | 323 | ||||||||||||||||||||||||||
Commercial real estate | 3 | 337 | |||||||||||||||||||||||||||
Residential real estate - Prime | 2 | 0 | |||||||||||||||||||||||||||
Postmodification | |||||||||||||||||||||||||||||
Premodification | Outstanding | ||||||||||||||||||||||||||||
Outstanding | Recorded | ||||||||||||||||||||||||||||
Number of | Recorded | Investment | |||||||||||||||||||||||||||
As of December 31, 2013 | contracts | Investment | at Period-End | ||||||||||||||||||||||||||
Commercial and industrial | 7 | $ | 1,012 | $ | 642 | ||||||||||||||||||||||||
Commercial and real estate | 5 | 587 | 564 | ||||||||||||||||||||||||||
Residential real estate - Prime | 5 | 867 | 852 | ||||||||||||||||||||||||||
Number of | Recorded | ||||||||||||||||||||||||||||
Contracts | Investment at | ||||||||||||||||||||||||||||
Period-End | |||||||||||||||||||||||||||||
Commercial and industrial | 1 | $ | 0 | ||||||||||||||||||||||||||
Commercial real estate | 1 | 80 | |||||||||||||||||||||||||||
Residential real estate - Prime | 1 | 87 |
Foreclosed_Assets_Tables
Foreclosed Assets (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Foreclosed Assets [Abstract] | |||||||||||||
Schedule of foreclosed assets | 2014 | 2013 | 2012 | ||||||||||
Balance at beginning of year | $ | 1,750 | $ | 1,774 | $ | 2,939 | |||||||
Transfer of loans at net realizable value to foreclosed assets | 801 | 1,342 | 1,295 | ||||||||||
Sale proceeds | (782 | ) | (831 | ) | (1,527 | ) | |||||||
Loans made on sale of foreclosed assets | (43 | ) | (234 | ) | (490 | ) | |||||||
Net gain (loss) from sale of foreclosed assets | (10 | ) | 105 | 42 | |||||||||
Provision for write-down charged to operations | (55 | ) | (406 | ) | (485 | ) | |||||||
Balance at end of year | $ | 1,661 | $ | 1,750 | $ | 1,774 |
Mortgage_Servicing_Rights_Tabl
Mortgage Servicing Rights (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Mortgage Servicing Rights [Abstract] | |||||||||||||
Schedule of changes in balance of MSRs | |||||||||||||
Originated | Valuation | ||||||||||||
MSR | Allowance | Total | |||||||||||
Balance at January 1, 2012 | $ | 1,286 | $ | (81 | ) | $ | 1,205 | ||||||
Additions from originated servicing | 774 | 0 | 774 | ||||||||||
Amortization charged to earnings | (547 | ) | 0 | (547 | ) | ||||||||
Change in valuation allowance credited to earnings | 0 | (199 | ) | (199 | ) | ||||||||
Balance at December 31, 2012 | 1,513 | (280 | ) | 1,233 | |||||||||
Additions from originated servicing | 625 | 0 | 625 | ||||||||||
Amortization charged to earnings | (421 | ) | 0 | (421 | ) | ||||||||
Change in valuation allowance charged to earnings | 0 | 259 | 259 | ||||||||||
Balance at December 31, 2013 | 1,717 | (21 | ) | 1,696 | |||||||||
Additions from originated servicing | 339 | 0 | 339 | ||||||||||
Amortization charged to earnings | (278 | ) | 0 | (278 | ) | ||||||||
Change in valuation allowance credited to earnings | 0 | (19 | ) | (19 | ) | ||||||||
Balance at December 31, 2014 | $ | 1,778 | $ | (40 | ) | $ | 1,738 | ||||||
Schedule of mortgage banking income | Years Ending December 31, | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Cash gain on sale of mortgage loans | $ | 659 | $ | 826 | $ | 1,113 | |||||||
Originated mortgage servicing rights | 339 | 625 | 774 | ||||||||||
Increase (decrease) in accrued mortgage rate lock commitments | (7 | ) | (78 | ) | 31 | ||||||||
Gain on sale of mortgage loans | 991 | 1,373 | 1,918 | ||||||||||
Mortgage servicing fee income | 691 | 674 | 649 | ||||||||||
Provision for representation and warranty losses on serviced loans | (8 | ) | (294 | ) | (0 | ) | |||||||
Foreclosure servicing losses | (4 | ) | 0 | (26 | ) | ||||||||
Amortization of mortgage servicing rights | (278 | ) | (421 | ) | (547 | ) | |||||||
Decrease (increase) in servicing right valuation allowance | (19 | ) | 259 | (199 | ) | ||||||||
Loan servicing fee income, net | 382 | 218 | (123 | ) | |||||||||
Mortgage banking income, net | $ | 1,373 | $ | 1,591 | $ | 1,795 |
Premises_and_Equipment_Tables
Premises and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Premises and Equipment [Abstract] | |||||||||
Schedule of the composition of premises and equipment | 2014 | 2013 | |||||||
Land | $ | 2,756 | $ | 2,261 | |||||
Buildings and improvements | 10,466 | 9,379 | |||||||
Furniture and equipment | 2,802 | 3,084 | |||||||
Computer hardware and software | 1,802 | 1,690 | |||||||
Total cost | 17,826 | 16,414 | |||||||
Less – Accumulated depreciation and amortization | 6,985 | 6,745 | |||||||
Totals | $ | 10,841 | $ | 9,669 |
Deposits_Tables
Deposits (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Deposits\Federal Home Loan Bank Advances [Abstract] | |||||||||
Schedule of distribution of deposits | 2014 | 2013 | |||||||
Non-interest-bearing demand | $ | 114,803 | $ | 102,644 | |||||
Interest-bearing demand (NOWs) | 123,844 | 118,769 | |||||||
Savings | 64,794 | 57,658 | |||||||
Money market | 146,996 | 136,797 | |||||||
Retail and local time | 122,376 | 104,287 | |||||||
Wholesale market and national time | 50,138 | 57,359 | |||||||
Total deposits | $ | 622,951 | $ | 577,514 | |||||
Scheduled maturities of time deposits | 2015 | $ | 83,896 | ||||||
2016 | 26,977 | ||||||||
2017 | 23,227 | ||||||||
2018 | 13,837 | ||||||||
2019 | 23,409 | ||||||||
Thereafter | 1,168 | ||||||||
Total | $ | 172,514 |
Federal_Home_Loan_Bank_Advance1
Federal Home Loan Bank Advances (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Deposits\Federal Home Loan Bank Advances [Abstract] | |||||||||||||||||
Schedule of FHLB Advances | Weighted | ||||||||||||||||
Scheduled | Range of | Average | |||||||||||||||
Maturity | Rates | Rate | Amount | ||||||||||||||
2014 | |||||||||||||||||
Fixed rate, interest only | 2015 | 0.13 | % | 0.13 | % | $ | 10,000 | ||||||||||
Fixed rate, interest only | 2017 | 0.77%-1.17 | % | 1 | % | 1,350 | |||||||||||
Fixed rate, interest only | 2018 | 1.92 | % | 1.92 | % | 2,000 | |||||||||||
Fixed rate, interest only | 2019 | 1.66%-1.89 | % | 1.72 | % | 6,921 | |||||||||||
Totals | 0.91 | % | $ | 20,271 | |||||||||||||
2013 | |||||||||||||||||
Fixed rate, interest only | 2014 | 2.69%-3.45 | % | 3.18 | % | $ | 31,049 | ||||||||||
Variable rate, interest only | 2014 | 1.33 | % | 1.33 | % | 5,000 | |||||||||||
Fixed rate, interest only | 2018 | 1.92 | % | 1.92 | % | 2,000 | |||||||||||
Totals | 2.87 | % | $ | 38,049 |
Other_Borrowings_Tables
Other Borrowings (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other Borrowings [Abstract] | |||||||||
Schedule of other borrowings | 2014 | 2013 | |||||||
Short-term repurchase agreements | $ | 4,324 | $ | 5,441 | |||||
Bank stock term loan | 500 | 1,500 | |||||||
Wholesale structured repurchase agreements | 5,500 | 13,500 | |||||||
Total other borrowings | $ | 10,324 | $ | 20,441 | |||||
Schedule of repurchase agreements | 2014 | 2013 | |||||||
As of end of year: | |||||||||
Weighted average rate | 2.4 | % | 3.08 | % | |||||
For the year: | |||||||||
Highest month-end balance | $ | 23,698 | $ | 24,100 | |||||
Daily average balance | $ | 18,649 | $ | 21,862 | |||||
Weighted average rate | 3 | % | 2.97 | % |
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Floating interest rate swaps [Member] | Not designated as hedging instrument [Member] | |||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||||
Schedule of interest rate swaps | 2014 | 2013 | |||||||
Notional amount | $ | 13,646 | $ | 14,323 | |||||
Receive fixed rate (average) | 2 | % | 2 | % | |||||
Pay variable rate (average) | 0.16 | % | 0.17 | % | |||||
Maturity | 3/2015-10/2021 | 3/2015-10/2021 | |||||||
Weighted average remaining term | 1.9 years | 2.9 years | |||||||
Unrealized gain fair value | $ | 194 | $ | 276 | |||||
Offsetting fixed interest rate swaps [Member] | |||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||||
Schedule of interest rate swaps | |||||||||
2014 | 2013 | ||||||||
Notional amount | $ | 13,646 | $ | 14,323 | |||||
Pay fixed rate (average) | 2 | % | 2 | % | |||||
Receive variable rate (average) | 0.16 | % | 0.17 | % | |||||
Maturity | 3/2015-10/2021 | 3/2015-10/2021 | |||||||
Weighted average remaining term | 1.9 years | 2.9 years | |||||||
Unrealized loss fair value | $ | (194 | ) | $ | (276 | ) | |||
Variable interest rate swaps [Member] | Designated as hedging instrument [Member] | |||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||||
Schedule of interest rate swaps | 2014 | 2013 | |||||||
Notional amount | $ | 7,500 | $ | 7,500 | |||||
Pay fixed rate | 2.72 | % | 2.72 | % | |||||
Receive variable rate | 0.24 | % | 0.24 | % | |||||
Maturity | 9/15/17 | 9/15/17 | |||||||
Unrealized loss (fair value) | $ | 325 | $ | 438 | |||||
Income_Tax_Tables
Income Tax (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Income Taxes [Abstract] | |||||||||||||||||||||||||
Shedule of components of the provision for income taxes | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Current income tax provision: | |||||||||||||||||||||||||
Federal | $ | 2,236 | $ | 1,246 | $ | 1,600 | |||||||||||||||||||
State | 763 | 450 | 535 | ||||||||||||||||||||||
Total current | 2,999 | 1,696 | 2,135 | ||||||||||||||||||||||
Deferred income tax provision (benefit): | |||||||||||||||||||||||||
Federal | (113 | ) | (132 | ) | 330 | ||||||||||||||||||||
State | 20 | 99 | 70 | ||||||||||||||||||||||
Total deferred | (93 | ) | (33 | ) | 400 | ||||||||||||||||||||
Total provision for income taxes | $ | 2,906 | $ | 1,663 | $ | 2,535 | |||||||||||||||||||
Summary of source differences between income taxes at the federal statutory rate and provision for income taxes | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Percent | Percent | Percent | |||||||||||||||||||||||
of | of | of | |||||||||||||||||||||||
Pretax | Pretax | Pretax | |||||||||||||||||||||||
Amount | Income | Amount | Income | Amount | Income | ||||||||||||||||||||
Tax expense at statutory rate | $ | 3,178 | 34 | $ | 2,178 | 34 | $ | 2,905 | 34 | ||||||||||||||||
Increase (decrease) in taxes resulting from: | |||||||||||||||||||||||||
Tax-exempt interest | (605 | ) | (6.5 | ) | (703 | ) | (11.0 | ) | (778 | ) | (9.1 | ) | |||||||||||||
Bank-owned life insurance | (137 | ) | (1.5 | ) | (137 | ) | (2.1 | ) | (138 | ) | (1.6 | ) | |||||||||||||
State income tax | 517 | 5.6 | 362 | 5.7 | 399 | 4.7 | |||||||||||||||||||
Merger-related expenses | 0 | 0 | 0 | 0 | 73 | 1 | |||||||||||||||||||
Other | (47 | ) | (0.5 | ) | (37 | ) | (0.6 | ) | 74 | 1 | |||||||||||||||
Provision for income taxes | $ | 2,906 | 31.1 | $ | 1,663 | 26 | $ | 2,535 | 30 | ||||||||||||||||
Schedule of net deferred tax assets | 2014 | 2013 | |||||||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||||||||
Allowance for loan losses | $ | 2,467 | $ | 2,579 | |||||||||||||||||||||
Deferred compensation and directors’ fees | 1,424 | 1,308 | |||||||||||||||||||||||
Foreclosed assets | 248 | 352 | |||||||||||||||||||||||
Unrealized loss on interest rate swaps | 128 | 171 | |||||||||||||||||||||||
Other | 307 | 223 | |||||||||||||||||||||||
Gross deferred tax assets | 4,574 | 4,633 | |||||||||||||||||||||||
Deferred tax liabilities: | |||||||||||||||||||||||||
Premises and equipment | 705 | 769 | |||||||||||||||||||||||
Mortgage servicing rights | 687 | 673 | |||||||||||||||||||||||
FHLB stock | 120 | 120 | |||||||||||||||||||||||
Unrealized gain on securities available for sale | 541 | 400 | |||||||||||||||||||||||
Deferred net loan origination costs | 120 | 128 | |||||||||||||||||||||||
Prepaid expenses | 88 | 139 | |||||||||||||||||||||||
Gross deferred tax liabilities | 2,261 | 2,229 | |||||||||||||||||||||||
Net deferred tax asset | $ | 2,313 | $ | 2,404 | |||||||||||||||||||||
Schedule of income tax effects on items of comprehensive income (loss) | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Pretax | Income Tax | Pretax | Income Tax | Pretax | Income Tax | ||||||||||||||||||||
Inc.(Exp.) | Exp.(Credit) | Inc.(Exp.) | Exp.(Credit) | Inc.(Exp.) | Exp.(Credit) | ||||||||||||||||||||
Unrealized gain (loss) on securities available for sale | $ | 693 | $ | 273 | $ | (1,574 | ) | $ | (613 | ) | ($ | 310 | ) | $ | (119 | ) | |||||||||
Reclassification adjustment for net security gain included in net income | (3 | ) | (1 | ) | (12 | ) | (5 | ) | 0 | 0 | |||||||||||||||
Amortization of unrealized gain on securities available for sale transferred to securities held to maturity included in net income | (330 | ) | (130 | ) | (420 | (184 | ) | (452 | ) | (178 | ) | ||||||||||||||
Unrealized gain (loss) on interest rate swap | (73 | ) | (29 | ) | 75 | 29 | (295 | ) | (116 | ) | |||||||||||||||
Reclassification adjustment of interest rate swap settlements included in earnings | 188 | 74 | 186 | 73 | 172 | 68 | |||||||||||||||||||
Totals | $ | 475 | $ | 187 | $ | (1,745 | ) | $ | (700 | ) | $ | (885 | ) | $ | (345 | ) |
Commitments_Contingencies_and_1
Commitments, Contingencies, and Credit Risk (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Commitments, Contingencies, and Credit Risk [Abstract] | |||||||||
Schedule of Commitments | 2014 | 2013 | |||||||
Commitments to extend credit – Fixed and variable rates | $ | 91,206 | $ | 89,645 | |||||
Commercial standby letters of credit – Variable rate | 2,388 | 4,533 | |||||||
Unused home equity lines of credit – Variable rate | 29,034 | 24,082 | |||||||
Unused credit card commitments – Variable rate | 335 | 234 | |||||||
Credit enhancement under the FHLB of Chicago | |||||||||
Mortgage Partnership Finance program | 949 | 949 | |||||||
Totals | $ | 123,912 | $ | 119,443 | |||||
Stock_Based_Compensation_Table
Stock Based Compensation (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Stock Based Compensation [Abstract] | |||||||||
Schedule of restricted stock awards activity | Unvested | Weighted Average | |||||||
Shares | Grant Value | ||||||||
1-Jan-12 | 25,572 | 17.79 | |||||||
Restricted shares granted | 8,895 | 22.48 | |||||||
Restricted shares vested | (4,058 | ) | (16.08 | ) | |||||
31-Dec-12 | 30,409 | 19.39 | |||||||
Restricted shares granted | 8,076 | 26 | |||||||
Restricted shares vested | (5,883 | ) | (17.85 | ) | |||||
31-Dec-13 | 32,602 | 21.3 | |||||||
Restricted shares granted | 6,400 | 31.25 | |||||||
Restricted shares vested | (7,640 | ) | (18.91 | ) | |||||
31-Dec-14 | 31,362 | $ | 23.92 | ||||||
Schedule of compensation expense due amount for restricted stock awards | 2015 | $ | 157 | ||||||
2016 | 162 | ||||||||
2017 | 122 | ||||||||
2018 | 82 | ||||||||
2019 | 40 | ||||||||
Total | $ | 563 | |||||||
Schedule of stock option activity | Weighted | ||||||||
Average | |||||||||
Shares | Price | ||||||||
1-Jan-12 | 588 | $ | 16.03 | ||||||
Options granted | 0 | 0 | |||||||
Options exercised | (588 | ) | (16.03 | ) | |||||
Option forfeited | 0 | 0 | |||||||
31-Dec-12 | 0 | $ | 0 |
Capital_Requirements_Tables
Capital Requirements (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Capital Requirements [Abstract] | |||||||||||||||||||||||||
Capital Requirements | To Be Well- | ||||||||||||||||||||||||
Capitalized Under | |||||||||||||||||||||||||
For Capital | Prompt Corrective | ||||||||||||||||||||||||
Actual | Adequacy Purposes | Action Provisions | |||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
As of December 31, 2014: | |||||||||||||||||||||||||
Total capital (to risk weighted assets): | |||||||||||||||||||||||||
Consolidated | $ | 74,370 | 14.24 | % | $ | 41,781 | 8 | % | N/A | N/A | |||||||||||||||
Peoples State Bank | $ | 75,373 | 14.45 | % | $ | 41,729 | 8 | % | $ | 52,161 | 10 | % | |||||||||||||
Tier I capital (to risk weighted assets): | |||||||||||||||||||||||||
Consolidated | $ | 67,876 | 12.99 | % | $ | 20,901 | 4 | % | N/A | N/A | |||||||||||||||
Peoples State Bank | $ | 68,879 | 13.2 | % | $ | 20,872 | 4 | % | $ | 31,309 | 6 | % | |||||||||||||
Tier I capital (to average assets): | |||||||||||||||||||||||||
Consolidated | $ | 67,876 | 9.3 | % | $ | 29,194 | 4 | % | N/A | N/A | |||||||||||||||
Peoples State Bank | $ | 68,879 | 9.44 | % | $ | 29,186 | 4 | % | $ | 36,483 | 5 | % | |||||||||||||
As of December 31, 2013: | |||||||||||||||||||||||||
Total capital (to risk weighted assets): | |||||||||||||||||||||||||
Consolidated | $ | 70,048 | 13.88 | % | $ | 40,365 | 8 | % | N/A | N/A | |||||||||||||||
Peoples State Bank | $ | 72,321 | 14.35 | % | $ | 40,312 | 8 | % | $ | 50,390 | 10 | % | |||||||||||||
Tier I capital (to risk weighted assets): | |||||||||||||||||||||||||
Consolidated | $ | 63,734 | 12.63 | % | $ | 20,182 | 4 | % | N/A | N/A | |||||||||||||||
Peoples State Bank | $ | 66,015 | 13.1 | % | $ | 20,156 | 4 | % | $ | 30,234 | 6 | % | |||||||||||||
Tier I capital (to average assets): | |||||||||||||||||||||||||
Consolidated | $ | 63,734 | 9.06 | % | $ | 28,130 | 4 | % | N/A | N/A | |||||||||||||||
Peoples State Bank | $ | 66,015 | 9.39 | % | $ | 28,130 | 4 | % | $ | 35,163 | 5 | % | |||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Schedule of computation of earnings per share | 2014 | 2013 | 2012 | ||||||||||
Weighted average shares outstanding | 1,651,045 | 1,652,700 | 1,663,147 | ||||||||||
Effect of dilutive stock options outstanding | 0 | 0 | 58 | ||||||||||
Diluted weighted average shares outstanding | 1,651,045 | 1,652,700 | 1,663,205 | ||||||||||
Basic earnings per share | $ | 3.9 | $ | 2.87 | $ | 3.61 | |||||||
Diluted earnings per share | $ | 3.9 | $ | 2.87 | $ | 3.61 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||||||||||
Schedule of unobservable inputs used to measure fair value | Direct annual servicing cost per loan | $ | 60 | ||||||||||||||||||
Direct annual servicing cost per loan in process of foreclosure | $ | 600 | |||||||||||||||||||
Weighted average prepayment speed: CPR | 12.57 | % | |||||||||||||||||||
Weighted average prepayment speed: PSA | 249.06 | % | |||||||||||||||||||
Weighted average cash flow discount rate | 7.91 | % | |||||||||||||||||||
Asset reinvestment rate | 4 | % | |||||||||||||||||||
Short-term cost of funds | 0.25 | % | |||||||||||||||||||
Escrow inflation adjustment | 1 | % | |||||||||||||||||||
Servicing cost inflation adjustment | 1 | % | |||||||||||||||||||
Schedule of fair value assets measured on a recurring basis | Recurring Fair Value Measurements Using | ||||||||||||||||||||
Quoted Prices | |||||||||||||||||||||
in Active | Significant | ||||||||||||||||||||
Assets and | Markets for | Other | Significant | ||||||||||||||||||
Liabilities | Identical | Observable | Unobservable | ||||||||||||||||||
Measured at | Assets | Inputs | Inputs | ||||||||||||||||||
Fair Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
2014 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||
U.S. agency issued residential MBS and CMO | $ | 73,352 | $ | 0 | $ | 73,352 | $ | 0 | |||||||||||||
Privately issued residential MBS and CMO | 29 | 0 | 29 | 0 | |||||||||||||||||
Nonrated SBA loan fund | 950 | 0 | 950 | 0 | |||||||||||||||||
Other equity securities | 47 | 0 | 0 | 47 | |||||||||||||||||
Total securities available for sale | 74,378 | 0 | 74,331 | 47 | |||||||||||||||||
Loans held for sale | 100 | 0 | 100 | 0 | |||||||||||||||||
Mortgage rate lock commitment | 6 | 0 | 6 | 0 | |||||||||||||||||
Interest rate swap agreements | 194 | 0 | 194 | 0 | |||||||||||||||||
Total assets | $ | 74,678 | $ | 0 | $ | 74,631 | $ | 47 | |||||||||||||
Liabilities – Interest rate swap agreements | $ | 519 | $ | 0 | $ | 519 | $ | 0 | |||||||||||||
2013 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||
U.S. Treasury and agency debentures | $ | 999 | $ | 0 | $ | 999 | $ | 0 | |||||||||||||
U.S. agency issued residential MBS and CMO | 59,390 | 0 | 59,390 | 0 | |||||||||||||||||
Privately issued residential MBS and CMO | 105 | 0 | 105 | 0 | |||||||||||||||||
Obligations of states and political subdivisions | 159 | 0 | 159 | 0 | |||||||||||||||||
Nonrated SBA loan fund | 950 | 0 | 950 | 0 | |||||||||||||||||
Other equity securities | 47 | 0 | 0 | 47 | |||||||||||||||||
Total securities available for sale | 61,650 | 0 | 61,603 | 47 | |||||||||||||||||
Loans held for sale | 150 | 0 | 150 | 0 | |||||||||||||||||
Mortgage rate lock commitments | 14 | 0 | 14 | 0 | |||||||||||||||||
Interest rate swap agreements | 276 | 0 | 276 | 0 | |||||||||||||||||
Total assets | $ | 62,090 | $ | 0 | $ | 62,043 | $ | 47 | |||||||||||||
Liabilities – Interest rate swap agreements | $ | 714 | $ | 0 | $ | 714 | $ | 0 | |||||||||||||
Summary of reconciliation of fair value measurements using significant unobservable inputs | |||||||||||||||||||||
Balance at January 1, 2013: | $ | 47 | |||||||||||||||||||
Total realized/unrealized gains (losses): | |||||||||||||||||||||
Included in earnings | 0 | ||||||||||||||||||||
Included in other comprehensive income | 0 | ||||||||||||||||||||
Purchases, maturities, and sales | 0 | ||||||||||||||||||||
Balance at December 31, 2013 | $ | 47 | |||||||||||||||||||
Total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at December 31, 2013 | $ | 0 | |||||||||||||||||||
Balance at January 1, 2014: | $ | 47 | |||||||||||||||||||
Total realized/unrealized gains (losses): | |||||||||||||||||||||
Included in earnings | 0 | ||||||||||||||||||||
Included in other comprehensive income | 0 | ||||||||||||||||||||
Purchases, maturities, and sales | 0 | ||||||||||||||||||||
Balance at December 31, 2014 | $ | 47 | |||||||||||||||||||
Total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at December 31, 2014 | $ | 0 | |||||||||||||||||||
Schedule of assets measured at fair value on a non recurring basis | Nonrecurring Fair Value Measurements Using | ||||||||||||||||||||
Quoted Prices | |||||||||||||||||||||
in Active | Significant | ||||||||||||||||||||
Markets for | Other | Significant | |||||||||||||||||||
Assets | Identical | Observable | Unobservable | ||||||||||||||||||
Measured at | Assets | Inputs | Inputs | ||||||||||||||||||
Fair Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
2014 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Impaired loans | $ | 1,956 | $ | 0 | $ | 97 | $ | 1,859 | |||||||||||||
Foreclosed assets | 1,661 | 0 | 284 | 1,377 | |||||||||||||||||
Mortgage servicing rights | 1,738 | 0 | 0 | 1,738 | |||||||||||||||||
Other intangible assets | 274 | 0 | 0 | 274 | |||||||||||||||||
Total assets | $ | 5,629 | $ | 0 | $ | 381 | $ | 5,248 | |||||||||||||
2013 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Impaired loans | $ | 1,720 | $ | 0 | $ | 0 | $ | 1,720 | |||||||||||||
Foreclosed assets | 1,750 | 0 | 792 | 958 | |||||||||||||||||
Mortgage servicing rights | 1,696 | 0 | 0 | 1,696 | |||||||||||||||||
Total assets | $ | 5,166 | $ | 0 | $ | 792 | $ | 4,374 | |||||||||||||
Schedule of carrying amounts and fair values of PSB's financial instruments | 31-Dec-14 | ||||||||||||||||||||
Carrying | Estimated | Fair Value Hierarchy Level | |||||||||||||||||||
Amount | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 25,106 | $ | 25,106 | $ | 25,106 | $ | 0 | $ | 0 | |||||||||||
Securities | 144,157 | 145,387 | 0 | 143,522 | 1,865 | ||||||||||||||||
Bank certificates of deposit | 3,424 | 3,446 | 0 | 0 | 5,446 | ||||||||||||||||
Net loans receivable and loans held for sale | 525,683 | 528,696 | 0 | 197 | 528,499 | ||||||||||||||||
Accrued interest receivable | 2,074 | 2,074 | 0 | 0 | 2,074 | ||||||||||||||||
Mortgage servicing rights | 1,738 | 1,738 | 0 | 0 | 1,738 | ||||||||||||||||
Mortgage rate lock commitments | 6 | 6 | 0 | 6 | 0 | ||||||||||||||||
FHLB stock | 2,556 | 2,556 | 0 | 0 | 2,556 | ||||||||||||||||
Cash surrender value of life insurance | 13,230 | 13,230 | 0 | 13,230 | 0 | ||||||||||||||||
Interest rate swap agreements | 194 | 194 | 0 | 194 | 0 | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | $ | 622,951 | $ | 623,439 | $ | 0 | $ | 0 | $ | 623,439 | |||||||||||
FHLB advances | 20,271 | 20,316 | 0 | 20,316 | 0 | ||||||||||||||||
Other borrowings | 10,324 | 10,764 | 0 | 5,942 | 4,822 | ||||||||||||||||
Senior subordinated notes | 4,000 | 3,604 | 0 | 0 | 3,604 | ||||||||||||||||
Junior subordinated debentures | 7,732 | 7,248 | 0 | 0 | 7,248 | ||||||||||||||||
Interest rate swap agreements | 519 | 519 | 0 | 519 | 0 | ||||||||||||||||
Accrued interest payable | 331 | 331 | 0 | 0 | 331 | ||||||||||||||||
Notes to Consolidated Financial Statements (dollars in thousands except per share data) | |||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Carrying | Estimated | Fair Value Hierarchy Level | |||||||||||||||||||
Amount | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 31,522 | $ | 31,522 | $ | 31,522 | $ | 0 | $ | 0 | |||||||||||
Securities | 133,279 | 133,322 | 0 | 131,479 | 1,843 | ||||||||||||||||
Bank certificates of deposit | 2,236 | 2,280 | 0 | 0 | 2,280 | ||||||||||||||||
Net loans receivable and loans held for sale | 510,030 | 514,309 | 0 | 150 | 514,159 | ||||||||||||||||
Accrued interest receivable | 2,076 | 2,076 | 0 | 0 | 2,076 | ||||||||||||||||
Mortgage servicing rights | 1,696 | 1,696 | 0 | 0 | 1,696 | ||||||||||||||||
Mortgage rate lock commitments | 14 | 14 | 0 | 14 | 0 | ||||||||||||||||
FHLB stock | 2,556 | 2,556 | 0 | 0 | 2,556 | ||||||||||||||||
Cash surrender value of life insurance | 12,826 | 12,826 | 0 | 12,826 | 0 | ||||||||||||||||
Interest rate swap agreements | 276 | 276 | 0 | 276 | 0 | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | $ | 577,514 | $ | 578,387 | $ | 0 | $ | 0 | $ | 578,387 | |||||||||||
FHLB advances | 38,049 | 38,511 | 0 | 38,511 | 0 | ||||||||||||||||
Other borrowings | 20,441 | 21,251 | 0 | 14,364 | 6,887 | ||||||||||||||||
Senior subordinated notes | 4,000 | 3,489 | 0 | 0 | 3,489 | ||||||||||||||||
Junior subordinated debentures | 7,732 | 7,085 | 0 | 0 | 7,085 | ||||||||||||||||
Interest rate swap agreements | 714 | 714 | 0 | 714 | 0 | ||||||||||||||||
Accrued interest payable | 477 | 477 | 0 | 0 | 477 | ||||||||||||||||
Condensed_Parent_Company_Only_1
Condensed Parent Company Only Financial Statements (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||
Condensed balance sheets | Assets | 2014 | 2013 | ||||||||||
Cash and due from banks | $ | 3,826 | $ | 3,502 | |||||||||
Investment in Peoples State Bank | 70,161 | 66,801 | |||||||||||
Other assets | 747 | 840 | |||||||||||
TOTAL ASSETS | $ | 74,734 | $ | 71,143 | |||||||||
Liabilities and Stockholders’ Equity | |||||||||||||
Accrued dividends payable | $ | 652 | $ | 644 | |||||||||
Other borrowings | 500 | 1,500 | |||||||||||
Senior subordinated notes | 4,000 | 4,000 | |||||||||||
Junior subordinated debentures | 7,732 | 7,732 | |||||||||||
Other liabilities | 389 | 514 | |||||||||||
Total stockholders’ equity | 61,461 | 56,753 | |||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 74,734 | $ | 71,143 | |||||||||
Condensed statements of income | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Income: | |||||||||||||
Dividends from Peoples State Bank | $ | 3,900 | $ | 4,000 | $ | 7,700 | |||||||
Dividends from other investments | 6 | 6 | 5 | ||||||||||
Interest | 6 | 5 | 10 | ||||||||||
Total income | $ | 3,912 | 4,011 | 7,715 | |||||||||
Expenses: | |||||||||||||
Interest on other borrowings | 27 | 54 | 0 | ||||||||||
Interest expense on senior subordinated notes | 150 | 184 | 578 | ||||||||||
Interest expense on junior subordinated debentures | 340 | 341 | 342 | ||||||||||
Transfer agent and shareholder communication | 52 | 47 | 68 | ||||||||||
Other | 85 | 136 | 348 | ||||||||||
Total expenses | 654 | 762 | 1,336 | ||||||||||
Income before income taxes and equity in undistributed net income of Peoples State Bank | 3,258 | 3,249 | 6,379 | ||||||||||
Recognition of income tax benefit | 251 | 293 | 431 | ||||||||||
Net income before equity in undistributed net income of Peoples State Bank | 3,509 | 3,542 | 6,810 | ||||||||||
Equity in undistributed net income of Peoples State Bank | 2,931 | 1,202 | (801 | ) | |||||||||
Net income | $ | 6,440 | $ | 4,744 | $ | 6,009 | |||||||
Condensed statements of cash flows | 2014 | 2013 | 2012 | ||||||||||
Increase (decrease) in cash and due from banks: | |||||||||||||
Cash flows from operating activities: | |||||||||||||
Net income | $ | 6,440 | $ | 4,744 | $ | 6,009 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||
Equity in undistributed net income of Peoples State Bank | (2,931 | ) | (1,202 | ) | 801 | ||||||||
(Increase) decrease in other assets | 41 | 147 | (21 | ) | |||||||||
Decrease in other liabilities | (5 | ) | (98 | ) | (2 | ) | |||||||
Increase (decrease) in dividends payable | 8 | 644 | (583 | ) | |||||||||
Net cash provided by operating activities | 3,553 | 4,235 | 6,204 | ||||||||||
Cash flows from investing activities: | |||||||||||||
Purchase Marathon State Bank common stock | 0 | 0 | (5,482 | ) | |||||||||
Investment in Peoples State Bank | 0 | 0 | (5 | ) | |||||||||
Net cash used in investing activities | 0 | 0 | (5,487 | ) | |||||||||
Cash flows from financing activities: | |||||||||||||
Repayment of senior subordinated notes | 0 | (3,000 | ) | 0 | |||||||||
Proceeds from other borrowings | 0 | 2,000 | 0 | ||||||||||
Repayment of other borrowings | (1,000 | ) | (500 | ) | 0 | ||||||||
Proceeds from exercise of stock options | 0 | 0 | 9 | ||||||||||
Dividends declared | (1,316 | ) | (1,289 | ) | (1,247 | ) | |||||||
Purchase of treasury stock | (913 | ) | (269 | ) | (262 | ) | |||||||
Net cash used in financing activities | (3,229 | ) | (3,058 | ) | (1,500 | ) | |||||||
Net increase (decrease) in cash and due from banks | 324 | 1,177 | (783 | ) | |||||||||
Cash and due from banks at beginning | 3,502 | 2,325 | 3,108 | ||||||||||
Cash and due from banks at end | $ | 3,826 | $ | 3,502 | $ | 2,325 |
Summary_of_Quarterly_Results_T
Summary of Quarterly Results (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Summary Of Quarterly Results | |||||||||||||||||
Summary of Quarterly Results (Unaudited) | Three Months Ended | ||||||||||||||||
31-Mar | 30-Jun | 30-Sep | 31-Dec | ||||||||||||||
2014 | |||||||||||||||||
Interest income | $ | 6,405 | $ | 6,618 | $ | 6,833 | $ | 6,762 | |||||||||
Interest expense | 1,231 | 1,168 | 1,099 | 988 | |||||||||||||
Net interest income | 5,174 | 5,450 | 5,734 | 5,774 | |||||||||||||
Provision for loan losses | 140 | 140 | 140 | 140 | |||||||||||||
Noninterest income | 1,320 | 1,369 | 1,481 | 1,524 | |||||||||||||
Net income | 1,450 | 1,403 | 1,782 | 1,805 | |||||||||||||
Basic earnings per share* | 0.87 | 0.85 | 1.08 | 1.1 | |||||||||||||
Diluted earnings per share* | 0.87 | 0.85 | 1.08 | 1.1 | |||||||||||||
2013 | |||||||||||||||||
Interest income | $ | 6,624 | $ | 6,692 | $ | 6,772 | $ | 6,728 | |||||||||
Interest expense | 1,423 | 1,375 | 1,350 | 1,363 | |||||||||||||
Net interest income | 5,201 | 5,317 | 5,422 | 5,365 | |||||||||||||
Provision for loan losses | 323 | 352 | 3,340 | 0 | |||||||||||||
Noninterest income | 1,415 | 1,523 | 1,411 | 1,274 | |||||||||||||
Net income | 1,609 | 1,561 | 13 | 1,561 | |||||||||||||
Basic earnings per share* | 0.97 | 0.95 | 0.01 | 0.95 | |||||||||||||
Diluted earnings per share* | 0.97 | 0.95 | 0.01 | 0.95 | |||||||||||||
2012 | |||||||||||||||||
Interest income | $ | 6,695 | $ | 6,679 | $ | 6,933 | $ | 6,937 | |||||||||
Interest expense | 1,879 | 1,799 | 1,770 | 1,643 | |||||||||||||
Net interest income | 4,816 | 4,880 | 5,163 | 5,294 | |||||||||||||
Provision for loan losses | 160 | 165 | 0 | 460 | |||||||||||||
Noninterest income | 1,242 | 2,323 | 1,444 | 1,559 | |||||||||||||
Net income | 1,180 | 1,918 | 1,226 | 1,685 | |||||||||||||
Basic earnings per share* | 0.7 | 1.15 | 0.74 | 1.01 | |||||||||||||
Diluted earnings per share* | 0.7 | 1.15 | 0.74 | 1.01 | |||||||||||||
* Basic and diluted earnings per share may not foot to the total for the year ended December 31 due to rounding. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Buildings [Member] | Maximum [Member] | |
Premises and Equipment estimated useful life | 40 years |
Buildings [Member] | Minimum [Member] | |
Premises and Equipment estimated useful life | 15 years |
Furniture and equipment [Member] | Maximum [Member] | |
Premises and Equipment estimated useful life | 10 years |
Furniture and equipment [Member] | Minimum [Member] | |
Premises and Equipment estimated useful life | 5 years |
Computer hardware and software [Member] | |
Premises and Equipment estimated useful life | 3 years |
Merger_and_Acquisition_Activit2
Merger and Acquisition Activity (Details) (USD $) | Dec. 31, 2014 | Jun. 14, 2012 | Apr. 11, 2014 |
In Thousands, unless otherwise specified | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | |||
Cash and due from banks | $20,392 | ||
Loans receivable, including accrued interest | 23,760 | ||
Premises and equipment | 402 | ||
Core deposit intangible | 0 | ||
Total fair value of assets acquired | 107,364 | ||
Fair value of liabilities assumed: | |||
Non-interest bearing deposits | 23,255 | ||
Fair value of liabilities assumed | 101,008 | ||
Northwoods National Bank [Member] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | |||
Cash and due from banks | 17,741 | ||
Loans receivable, including accrued interest | 21,365 | ||
Premises and equipment | 1,368 | ||
Core deposit intangible | 231 | ||
Goodwill | 113 | ||
Total fair value of assets acquired | 40,818 | ||
Fair value of liabilities assumed: | |||
Non-interest bearing deposits | 3,890 | ||
Interest-bearing deposits, including accrued interest | 36,912 | ||
Other liabilities | 16 | ||
Fair value of liabilities assumed | $40,818 |
Merger_and_Acquisition_Activit3
Merger and Acquisition Activity (Details 1) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 14, 2012 |
Business Acquisition [Line Items] | ||||
Cash purchase price | $5,505 | |||
Fair value of assets acquired: | ||||
Cash and due from banks | 20,392 | |||
Securities available for sale | 50,547 | |||
Loans receivable | 23,760 | |||
Short-term commercial paper and bankers' acceptances | 11,713 | |||
Foreclosed assets | 0 | |||
Premises and equipment | 402 | |||
Core deposit intangible | 0 | |||
Accrued interest receivable and other assets | 550 | |||
Total fair value of assets acquired | 107,364 | |||
Fair value of liabilities assumed: | ||||
Non-interest bearing deposits | 23,255 | |||
Interest-bearing deposits | 77,611 | |||
Accrued interest payable and other liabilities | 142 | |||
Fair value of liabilities assumed | 101,008 | |||
Fair value of net assets acquired | 6,356 | |||
Gain on bargain purchase | 0 | 0 | 851 | |
Marathon State Bank [Member] | ||||
Fair value of assets acquired: | ||||
Total fair value of assets acquired | $107,000 |
Merger_and_Acquisition_Activit4
Merger and Acquisition Activity (Details 2) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2012 |
Pro Forma with Marathon State Bank | |
Net Interest Income | $20,828 |
Noninterest Income | 6,586 |
Net Income | 6,055 |
Earnings Per Share | $3.64 |
PSB Holdings, Inc.[Member] | |
Pro Forma with Marathon State Bank | |
Net Interest Income | 19,670 |
Noninterest Income | 5,706 |
Net Income | 5,587 |
Earnings Per Share | $3.36 |
Marathon State Bank [Member] | |
Pro Forma with Marathon State Bank | |
Net Interest Income | 1,158 |
Noninterest Income | 880 |
Net Income | $468 |
Earnings Per Share | $0.28 |
Merger_and_Acquisition_Activit5
Merger and Acquisition Activity (Details Textual) (USD $) | 12 Months Ended | 0 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 11, 2014 | Jun. 14, 2012 |
Business Acquisition [Line Items] | |||||
Purchase premium | $0 | $0 | $851 | ||
Total fair value of assets acquired | 107,364 | ||||
Northwoods National Bank [Member] | |||||
Business Acquisition [Line Items] | |||||
Core deposit intangible, Amortization period | 5 years | ||||
Purchase premium | 654 | ||||
Incurred and expensed non-recurring | 371 | ||||
Data Processing Conversion Costs | 224 | ||||
Total fair value of assets acquired | 40,818 | ||||
Accounting date | 1-Jun-12 | ||||
Percentage of tangible net book value | 100.00% | ||||
Marathon State Bank book equity ratio as percent of assets prior to acquisition | 6.00% | ||||
Credit Markdown on Acquired Loan Portfolio | 490 | ||||
Credit Markdown on Acquired Loan Portfolio, percentage | 2.05% | ||||
Purchased Impaired Loan Balance | 310 | ||||
Write-down, impaired loans | 21 | ||||
Marathon State Bank [Member] | |||||
Business Acquisition [Line Items] | |||||
Total fair value of assets acquired | $107,000 |
Cash_and_Cash_Equivalents_Deta
Cash and Cash Equivalents (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Cash and Cash Equivalents [Abstract] | ||
Required cash reserve | $1,064 | |
Cash balances | 1,742 | |
Collateral on deposit | 430 | 570 |
Total uninsured cash and cash equivalent balances | $15,987 | $12,045 |
Securities_Details
Securities (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Securities available for sale | ||
Amortized Cost | $73,682 | $61,645 |
Gross Unrealized Gains | 1,082 | 1,007 |
Gross Unrealized Losses | 386 | 1,002 |
Estimated Fair Value | 74,378 | 61,650 |
Securities held to maturity | ||
Amortized Cost | 69,779 | 71,629 |
Gross Unrealized Gains | 1,547 | 1,095 |
Gross Unrealized Losses | 317 | 1,052 |
Estimates Fair Value | 71,009 | 71,672 |
U.S. Treasury securities and obligations of U.S. government corporations and agencies [Member] | ||
Securities available for sale | ||
Amortized Cost | 1,001 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 2 | |
Estimated Fair Value | 999 | |
US agency issued residential mortgage-backed securities [Member] | ||
Securities available for sale | ||
Amortized Cost | 45,626 | 21,388 |
Gross Unrealized Gains | 834 | 522 |
Gross Unrealized Losses | 124 | 424 |
Estimated Fair Value | 46,336 | 21,486 |
US agency issued residential collateralized mortgage obligations [Member] | ||
Securities available for sale | ||
Amortized Cost | 27,031 | 37,998 |
Gross Unrealized Gains | 247 | 482 |
Gross Unrealized Losses | 262 | 576 |
Estimated Fair Value | 27,016 | 37,904 |
Privately issued residential collateralized mortgage obligations [Member] | ||
Securities available for sale | ||
Amortized Cost | 28 | 102 |
Gross Unrealized Gains | 1 | 3 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 29 | 105 |
Nonrated SBA loan fund [Member] | ||
Securities available for sale | ||
Amortized Cost | 950 | 950 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 950 | 950 |
Other equity securities [Member] | ||
Securities available for sale | ||
Amortized Cost | 47 | 47 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 47 | 47 |
Obligations of states and political subdivisions [Member] | ||
Securities available for sale | ||
Amortized Cost | 159 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Estimated Fair Value | 159 | |
Securities held to maturity | ||
Amortized Cost | 67,836 | 69,704 |
Gross Unrealized Gains | 1,517 | 1,059 |
Gross Unrealized Losses | 162 | 887 |
Estimates Fair Value | 69,191 | 69,876 |
Nonrated trust preferred securities [Member] | ||
Securities held to maturity | ||
Amortized Cost | 1,543 | 1,524 |
Gross Unrealized Gains | 26 | 30 |
Gross Unrealized Losses | 155 | 165 |
Estimates Fair Value | 1,414 | 1,389 |
Nonrated senior subordinated notes [Member] | ||
Securities held to maturity | ||
Amortized Cost | 400 | 401 |
Gross Unrealized Gains | 4 | 6 |
Gross Unrealized Losses | 0 | 0 |
Estimates Fair Value | $404 | $407 |
Securities_Details_1
Securities (Details 1) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Securities available for sale | ||
Fair value, less than 12 months | $8,822 | $28,543 |
Unrealized loss, less than 12 months | 38 | 760 |
Fair value, 12 months or more | 16,631 | 5,830 |
Unrealized loss, 12 months or more | 348 | 242 |
Fair value, Total | 25,453 | 34,373 |
Unrealized loss, Total | 386 | 1,002 |
Securities held to maturity | ||
Fair value, less than 12 months | 4,015 | 23,385 |
Unrealized loss, less than 12 months | 38 | 908 |
Fair value, 12 months or more | 6,809 | 1,395 |
Unrealized loss, less than 12 months | 279 | 144 |
Fair value, Total | 10,824 | 24,780 |
Unrealized loss, Total | 317 | 1,052 |
U.S. Treasury securities and obligations of U.S. government corporations and agencies [Member] | ||
Securities available for sale | ||
Fair value, less than 12 months | 999 | |
Unrealized loss, less than 12 months | 2 | |
Fair value, 12 months or more | 0 | |
Unrealized loss, 12 months or more | 0 | |
Fair value, Total | 999 | |
Unrealized loss, Total | 2 | |
US agency issued residential mortgage-backed securities [Member] | ||
Securities available for sale | ||
Fair value, less than 12 months | 5,555 | 13,206 |
Unrealized loss, less than 12 months | 22 | 424 |
Fair value, 12 months or more | 6,787 | 0 |
Unrealized loss, 12 months or more | 102 | 0 |
Fair value, Total | 12,342 | 13,206 |
Unrealized loss, Total | 124 | 424 |
US agency issued residential collateralized mortgage obligations [Member] | ||
Securities available for sale | ||
Fair value, less than 12 months | 3,267 | 14,179 |
Unrealized loss, less than 12 months | 16 | 334 |
Fair value, 12 months or more | 9,844 | 5,830 |
Unrealized loss, 12 months or more | 246 | 242 |
Fair value, Total | 13,111 | 20,009 |
Unrealized loss, Total | 262 | 576 |
Obligations of states and political subdivisions [Member] | ||
Securities available for sale | ||
Fair value, less than 12 months | 159 | |
Unrealized loss, less than 12 months | 0 | |
Fair value, 12 months or more | 0 | |
Unrealized loss, 12 months or more | 0 | |
Fair value, Total | 159 | |
Unrealized loss, Total | 0 | |
Securities held to maturity | ||
Fair value, less than 12 months | 4,015 | 23,017 |
Unrealized loss, less than 12 months | 38 | 806 |
Fair value, 12 months or more | 6,103 | 1,073 |
Unrealized loss, less than 12 months | 124 | 81 |
Fair value, Total | 10,118 | 24,090 |
Unrealized loss, Total | 162 | 887 |
Nonrated trust preferred securities [Member] | ||
Securities held to maturity | ||
Fair value, less than 12 months | 0 | 368 |
Unrealized loss, less than 12 months | 0 | 102 |
Fair value, 12 months or more | 706 | 322 |
Unrealized loss, less than 12 months | 155 | 63 |
Fair value, Total | 706 | 690 |
Unrealized loss, Total | $155 | $165 |
Securities_Details_2
Securities (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Available For Sale, Amortized Cost | ||
Due in one year or less | $0 | |
Due after one year through five years | 0 | |
Due after five years through ten years | 0 | |
Due after ten years | 0 | |
Subtotals | 0 | |
Mortgage-backed securities and collateralized mortgage obligations | 72,685 | |
Totals | 72,685 | |
Available For Sale, Estimated Fair Value | ||
Due in one year or less | 0 | |
Due after one year through five years | 0 | |
Due after five years through ten years | 0 | |
Due after ten years | 0 | |
Subtotals | 0 | |
Mortgage-backed securities and collateralized mortgage obligations | 73,381 | |
Totals | 73,381 | |
Held to Maturity, Amortized Cost | ||
Due in one year or less | 4,568 | |
Due after one year through five years | 24,288 | |
Due after five years through ten years | 37,826 | |
Due after ten years | 3,097 | |
Subtotals | 69,779 | |
Mortgage-backed securities and collateralized mortgage obligations | 0 | |
Totals | 69,779 | |
Held to Maturity, Estimated Estimated Value | ||
Due in one year or less | 4,588 | |
Due after one year through five years | 24,885 | |
Due after five years through ten years | 38,531 | |
Due after ten years | 3,005 | |
Subtotals | 71,009 | |
Mortgage-backed securities and collateralized mortgage obligations | 0 | |
Totals | $71,009 | $71,672 |
Securities_Details_3
Securities (Details 3) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Amortization Of Remaining Unrealized Gain On Debt Securities [Abstract] | |
2015 | $274 |
2016 | 194 |
2017 | 115 |
2018 | 68 |
2019 | 22 |
Thereafter | 22 |
Total | $695 |
Securities_Details_Textual
Securities (Details Textual) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 |
Securities [Abstract] | ||||
Securities Pledged as Collateral | $46,368 | $47,593 | ||
Realized gain on sale of securities available for sale | -3 | -12 | 0 | |
Realized gain on sale of securities available for sale after tax | 2 | 7 | ||
Proceeds from sale of securities available for sale | 1,774 | 986 | 0 | |
Reclassification of comprehensive income on sale of securities available for sale | 3 | 12 | ||
Reclassification of comprehensive income on sale of securities available for sale after tax | 2 | 7 | 0 | |
Reduction to comprehensive net income recognized as gain on sale of securities | 3 | 12 | ||
Reduction to comprehensive net income recognized as gain on sale of securities after tax | 2 | 7 | ||
Fair value of securities transferred from available-for-sale to held-to-maturity | 54,130 | |||
Unrealized gain over amortized cost basis | 2,552 | |||
Comprehensive income before tax | 330 | 430 | 452 | |
Comprehensive income after tax | $200 | $236 | $274 | |
Debt securities, Description | At December 31, 2014, 76 debt securities had unrealized losses with aggregate depreciation of 1.90% from the amortized cost basis, compared to 167 debt securities which had unrealized losses with aggregate depreciation of 3.36% from the amortized cost basis at December 31, 2013. |
Loans_Details
Loans (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Composition of loans, categorized by the type of the loan | ||||
Subtotals - Gross loans | $538,835 | $523,243 | ||
Loans in process of disbursement | -7,145 | -6,895 | ||
Subtotals - Disbursed loans | 531,690 | 516,348 | ||
Net deferred loan costs | 302 | 315 | ||
Allowance for loan losses | -6,409 | -6,783 | -7,431 | -7,941 |
Net loans receivable | 525,583 | 509,880 | ||
Commercial, industrial and municipal [Member] | ||||
Composition of loans, categorized by the type of the loan | ||||
Subtotals - Gross loans | 134,768 | 130,220 | ||
Commercial real estate mortgage [Member] | ||||
Composition of loans, categorized by the type of the loan | ||||
Subtotals - Gross loans | 203,501 | 212,850 | ||
Commercial construction and development [Member] | ||||
Composition of loans, categorized by the type of the loan | ||||
Subtotals - Gross loans | 31,364 | 13,672 | ||
Residential real estate mortgage [Member] | ||||
Composition of loans, categorized by the type of the loan | ||||
Subtotals - Gross loans | 128,347 | 123,980 | ||
Residential construction and development [Member] | ||||
Composition of loans, categorized by the type of the loan | ||||
Subtotals - Gross loans | 13,711 | 18,277 | ||
Residential real estate home equity [Member] | ||||
Composition of loans, categorized by the type of the loan | ||||
Subtotals - Gross loans | 23,517 | 20,677 | ||
Consumer and individual [Member] | ||||
Composition of loans, categorized by the type of the loan | ||||
Subtotals - Gross loans | $3,627 | $3,567 |
Loans_Details_1
Loans (Details 1) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Loans receivable from executive officers and directors | ||
Loans outstanding at beginning | $6,663 | $7,371 |
New loans | 1,500 | 3,519 |
Repayments | -1,183 | -4,227 |
Loans outstanding at end | $6,980 | $6,663 |
Loans_Details_2
Loans (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for loan losses: | |||
Allowance for loan losses, Beginning Balance | $6,783 | $7,431 | $7,941 |
Provision (credit) | 560 | 4,015 | 785 |
Recoveries | 35 | 80 | 37 |
Charge offs | -969 | -4,743 | -1,332 |
Allowance for loan losses, Ending balance | 6,409 | 6,783 | 7,431 |
Individually evaluated for impairment | 2,258 | 2,108 | 2,434 |
Collectively evaluated for impairment | 4,151 | 4,675 | 4,997 |
Loans receivable (gross): | |||
Individually evaluated for impairment | 19,148 | 15,775 | 12,439 |
Collectively evaluated for impairment | 519,687 | 507,468 | 479,791 |
Commercial [Member] | |||
Allowance for loan losses: | |||
Allowance for loan losses, Beginning Balance | 2,828 | 3,014 | 3,406 |
Provision (credit) | -716 | 3,435 | -270 |
Recoveries | 4 | 29 | 6 |
Charge offs | -215 | -3,650 | -128 |
Allowance for loan losses, Ending balance | 1,901 | 2,828 | 3,014 |
Individually evaluated for impairment | 976 | 1,167 | 1,327 |
Collectively evaluated for impairment | 925 | 1,661 | 1,687 |
Loans receivable (gross): | |||
Individually evaluated for impairment | 10,542 | 8,102 | 5,263 |
Collectively evaluated for impairment | 124,226 | 122,118 | 127,370 |
Commercial Real Estate [Member] | |||
Allowance for loan losses: | |||
Allowance for loan losses, Beginning Balance | 2,653 | 2,803 | 3,175 |
Provision (credit) | -321 | -9 | 142 |
Recoveries | 3 | 33 | 4 |
Charge offs | -41 | -174 | -518 |
Allowance for loan losses, Ending balance | 2,294 | 2,653 | 2,803 |
Individually evaluated for impairment | 511 | 695 | 674 |
Collectively evaluated for impairment | 1,783 | 1,958 | 2,129 |
Loans receivable (gross): | |||
Individually evaluated for impairment | 5,378 | 5,527 | 4,204 |
Collectively evaluated for impairment | 229,487 | 220,995 | 208,096 |
Residential Real Estate [Member] | |||
Allowance for loan losses: | |||
Allowance for loan losses, Beginning Balance | 1,223 | 1,511 | 1,242 |
Provision (credit) | 1,564 | 556 | 877 |
Recoveries | 19 | 6 | 21 |
Charge offs | -694 | -850 | -629 |
Allowance for loan losses, Ending balance | 2,112 | 1,223 | 1,511 |
Individually evaluated for impairment | 746 | 228 | 407 |
Collectively evaluated for impairment | 1,366 | 995 | 1,104 |
Loans receivable (gross): | |||
Individually evaluated for impairment | 3,203 | 2,129 | 2,946 |
Collectively evaluated for impairment | 162,372 | 160,805 | 139,636 |
Consumer [Member] | |||
Allowance for loan losses: | |||
Allowance for loan losses, Beginning Balance | 79 | 103 | 118 |
Provision (credit) | 33 | 33 | 36 |
Recoveries | 9 | 12 | 6 |
Charge offs | -19 | -69 | -57 |
Allowance for loan losses, Ending balance | 102 | 79 | 103 |
Individually evaluated for impairment | 25 | 18 | 26 |
Collectively evaluated for impairment | 77 | 61 | 77 |
Loans receivable (gross): | |||
Individually evaluated for impairment | 25 | 17 | 26 |
Collectively evaluated for impairment | 3,602 | 3,550 | 4,689 |
Unallocated [Member] | |||
Allowance for loan losses: | |||
Allowance for loan losses, Beginning Balance | 0 | 0 | |
Provision (credit) | 0 | 0 | |
Recoveries | 0 | 0 | |
Charge offs | 0 | 0 | |
Allowance for loan losses, Ending balance | 0 | ||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 0 | 0 | |
Loans receivable (gross): | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | $0 | $0 |
Loans_Details_3
Loans (Details 3) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | $369,633 | $356,742 |
High quality (risk rating 1) [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | 147 | 44 |
Minimal (risk rating 2) [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | 48,003 | 44,647 |
Average risk (3) [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | 206,151 | 215,356 |
Acceptable (risk rating 4) [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | 89,264 | 64,247 |
Watch (risk rating 5) [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | 9,334 | 17,350 |
Substandard (risk rating 6) [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | 814 | 1,469 |
Impaired loans (risk rating 7) [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | 15,920 | 13,629 |
Commercial [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | 119,498 | 115,929 |
Commercial [Member] | High quality (risk rating 1) [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | 147 | 44 |
Commercial [Member] | Minimal (risk rating 2) [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | 26,159 | 24,085 |
Commercial [Member] | Average risk (3) [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | 49,996 | 51,745 |
Commercial [Member] | Acceptable (risk rating 4) [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | 32,908 | 26,395 |
Commercial [Member] | Watch (risk rating 5) [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | 2,259 | 8,146 |
Commercial [Member] | Substandard (risk rating 6) [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | 384 | 654 |
Commercial [Member] | Impaired loans (risk rating 7) [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | 7,645 | 4,860 |
Commercial Real Estate [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | 203,501 | 212,850 |
Commercial Real Estate [Member] | High quality (risk rating 1) [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | 0 | 0 |
Commercial Real Estate [Member] | Minimal (risk rating 2) [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | 19,062 | 19,249 |
Commercial Real Estate [Member] | Average risk (3) [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | 122,875 | 145,673 |
Commercial Real Estate [Member] | Acceptable (risk rating 4) [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | 50,863 | 34,154 |
Commercial Real Estate [Member] | Watch (risk rating 5) [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | 5,025 | 7,572 |
Commercial Real Estate [Member] | Substandard (risk rating 6) [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | 430 | 815 |
Commercial Real Estate [Member] | Impaired loans (risk rating 7) [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | 5,246 | 5,387 |
Construction and Development [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | 31,364 | 13,672 |
Construction and Development [Member] | High quality (risk rating 1) [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | 0 | 0 |
Construction and Development [Member] | Minimal (risk rating 2) [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | 785 | 120 |
Construction and Development [Member] | Average risk (3) [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | 23,672 | 8,863 |
Construction and Development [Member] | Acceptable (risk rating 4) [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | 4,725 | 2,917 |
Construction and Development [Member] | Watch (risk rating 5) [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | 2,050 | 1,632 |
Construction and Development [Member] | Substandard (risk rating 6) [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | 0 | 0 |
Construction and Development [Member] | Impaired loans (risk rating 7) [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | 132 | 140 |
Agricultural [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | 5,164 | 4,254 |
Agricultural [Member] | High quality (risk rating 1) [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | 0 | 0 |
Agricultural [Member] | Minimal (risk rating 2) [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | 1,937 | 1,115 |
Agricultural [Member] | Average risk (3) [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | 2,628 | 2,563 |
Agricultural [Member] | Acceptable (risk rating 4) [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | 477 | 424 |
Agricultural [Member] | Watch (risk rating 5) [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | 0 | 0 |
Agricultural [Member] | Substandard (risk rating 6) [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | 0 | 0 |
Agricultural [Member] | Impaired loans (risk rating 7) [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | 122 | 152 |
Government [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | 10,106 | 10,037 |
Government [Member] | High quality (risk rating 1) [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | 0 | 0 |
Government [Member] | Minimal (risk rating 2) [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | 60 | 78 |
Government [Member] | Average risk (3) [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | 6,980 | 6,512 |
Government [Member] | Acceptable (risk rating 4) [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | 291 | 357 |
Government [Member] | Watch (risk rating 5) [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | 0 | 0 |
Government [Member] | Substandard (risk rating 6) [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | 0 | 0 |
Government [Member] | Impaired loans (risk rating 7) [Member] | ||
Commercial Credit Exposure | ||
Loans receivable, commercial credit exposure | $2,775 | $3,090 |
Loans_Details_4
Loans (Details 4) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Consumer Credit Exposure | ||
Loans receivable, consumer credit exposure | $169,202 | $166,501 |
Performing [Member] | ||
Consumer Credit Exposure | ||
Loans receivable, consumer credit exposure | 165,974 | 164,355 |
Impaired [Member] | ||
Consumer Credit Exposure | ||
Loans receivable, consumer credit exposure | 3,228 | 2,146 |
Residential Prime [Member] | ||
Consumer Credit Exposure | ||
Loans receivable, consumer credit exposure | 128,347 | 123,980 |
Residential Prime [Member] | Performing [Member] | ||
Consumer Credit Exposure | ||
Loans receivable, consumer credit exposure | 126,035 | 122,408 |
Residential Prime [Member] | Impaired [Member] | ||
Consumer Credit Exposure | ||
Loans receivable, consumer credit exposure | 2,312 | 1,572 |
Residential - construction and development [Member] | ||
Consumer Credit Exposure | ||
Loans receivable, consumer credit exposure | 13,711 | 18,277 |
Residential - construction and development [Member] | Performing [Member] | ||
Consumer Credit Exposure | ||
Loans receivable, consumer credit exposure | 13,220 | 18,230 |
Residential - construction and development [Member] | Impaired [Member] | ||
Consumer Credit Exposure | ||
Loans receivable, consumer credit exposure | 491 | 47 |
Residential HELOC [Member] | ||
Consumer Credit Exposure | ||
Loans receivable, consumer credit exposure | 23,517 | 20,677 |
Residential HELOC [Member] | Performing [Member] | ||
Consumer Credit Exposure | ||
Loans receivable, consumer credit exposure | 23,117 | 20,167 |
Residential HELOC [Member] | Impaired [Member] | ||
Consumer Credit Exposure | ||
Loans receivable, consumer credit exposure | 400 | 510 |
Consumer [Member] | ||
Consumer Credit Exposure | ||
Loans receivable, consumer credit exposure | 3,627 | 3,567 |
Consumer [Member] | Performing [Member] | ||
Consumer Credit Exposure | ||
Loans receivable, consumer credit exposure | 3,602 | 3,550 |
Consumer [Member] | Impaired [Member] | ||
Consumer Credit Exposure | ||
Loans receivable, consumer credit exposure | $25 | $17 |
Loans_Details_5
Loans (Details 5) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Loans Receivable Payment Age Analysis | ||
30-59 Days | $1,506 | $1,126 |
60-89 Days | 476 | 715 |
90+ Days | 2,885 | 2,696 |
Total Past Due | 4,867 | 4,537 |
Current | 526,823 | 511,811 |
Total Loans | 531,690 | 516,348 |
90+ And Accruing | 0 | 0 |
Commercial Real Estate [Member] | ||
Loans Receivable Payment Age Analysis | ||
30-59 Days | 331 | 376 |
60-89 Days | 0 | 547 |
90+ Days | 793 | 1,276 |
Total Past Due | 1,124 | 2,199 |
Current | 202,376 | 210,651 |
Total Loans | 203,501 | 212,850 |
90+ And Accruing | 0 | 0 |
Consumer [Member] | ||
Loans Receivable Payment Age Analysis | ||
30-59 Days | 11 | 15 |
60-89 Days | 4 | 10 |
90+ Days | 0 | 9 |
Total Past Due | 15 | 34 |
Current | 3,612 | 3,533 |
Total Loans | 3,627 | 3,567 |
90+ And Accruing | 0 | 0 |
Government [Member] | ||
Loans Receivable Payment Age Analysis | ||
30-59 Days | 0 | 0 |
60-89 Days | 0 | 0 |
90+ Days | 0 | 0 |
Total Past Due | 0 | 0 |
Current | 10,106 | 10,037 |
Total Loans | 10,106 | 10,037 |
90+ And Accruing | 0 | 0 |
Commercial and Industrial [Member] | ||
Loans Receivable Payment Age Analysis | ||
30-59 Days | 532 | 284 |
60-89 Days | 49 | 57 |
90+ Days | 470 | 610 |
Total Past Due | 1,051 | 951 |
Current | 118,448 | 114,978 |
Total Loans | 119,498 | 115,929 |
90+ And Accruing | 0 | 0 |
Agricultural [Member] | ||
Loans Receivable Payment Age Analysis | ||
30-59 Days | 0 | 0 |
60-89 Days | 0 | 0 |
90+ Days | 122 | 152 |
Total Past Due | 122 | 152 |
Current | 5,042 | 4,102 |
Total Loans | 5,164 | 4,254 |
90+ And Accruing | 0 | 0 |
Commercial Construction and Development [Member] | ||
Loans Receivable Payment Age Analysis | ||
30-59 Days | 81 | 0 |
60-89 Days | 0 | 0 |
90+ Days | 0 | 0 |
Total Past Due | 81 | 0 |
Current | 26,044 | 11,434 |
Total Loans | 26,125 | 11,434 |
90+ And Accruing | 0 | 0 |
Residential Prime [Member] | ||
Loans Receivable Payment Age Analysis | ||
30-59 Days | 361 | 369 |
60-89 Days | 321 | 87 |
90+ Days | 1,184 | 335 |
Total Past Due | 1,866 | 791 |
Current | 126,481 | 123,189 |
Total Loans | 128,347 | 123,980 |
90+ And Accruing | 0 | 0 |
Residential HELOC [Member] | ||
Loans Receivable Payment Age Analysis | ||
30-59 Days | 79 | 45 |
60-89 Days | 102 | 14 |
90+ Days | 171 | 314 |
Total Past Due | 352 | 373 |
Current | 23,165 | 20,304 |
Total Loans | 23,517 | 20,677 |
90+ And Accruing | 0 | 0 |
Residential - construction and development [Member] | ||
Loans Receivable Payment Age Analysis | ||
30-59 Days | 111 | 37 |
60-89 Days | 0 | 0 |
90+ Days | 145 | 0 |
Total Past Due | 256 | 37 |
Current | 11,549 | 13,583 |
Total Loans | 11,805 | 13,620 |
90+ And Accruing | $0 | $0 |
Loans_Details_6
Loans (Details 6) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of information pertaining to impaired loans | |||
Impaired loans without a valuation allowance | $9,021 | $9,303 | $3,410 |
Impaired loans with a valuation allowance | 10,127 | 6,472 | 9,029 |
Total impaired loans before valuation allowances | 19,148 | 15,775 | 12,439 |
Valuation allowance related to impaired loans | 2,258 | 2,108 | 2,434 |
Net impaired loans | 16,890 | 13,667 | 10,005 |
Average recorded investment, net of allowance for loan losses | 17,465 | 14,109 | 12,026 |
Interest income recognized | 586 | 534 | 569 |
Interest income recognized on a cash basis on impaired loans | $0 | $0 | $0 |
Loans_Details_7
Loans (Details 7) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
With no related allowance recorded: | |||
Recorded Investment | $9,021 | $9,303 | $3,410 |
With an allowance recorded: | |||
Related Allowance | 2,258 | 2,108 | 2,434 |
Recorded Investment | 10,127 | 6,472 | 9,029 |
Total | |||
Recorded Investment | 19,148 | 15,775 | 12,439 |
Average Recorded Investment | 17,465 | 14,109 | 12,026 |
Interest income recognized | 586 | 534 | 569 |
Commercial Real Estate [Member] | |||
With no related allowance recorded: | |||
Unpaid Principal Balance | 2,836 | 2,555 | |
Related Allowance | 0 | 0 | |
Recorded Investment | 2,577 | 2,376 | |
Average Recorded Investment | 2,476 | 1,740 | |
Interest income recognized | 86 | 85 | |
With an allowance recorded: | |||
Unpaid Principal Balance | 3,041 | 3,143 | |
Related Allowance | 488 | 621 | |
Recorded Investment | 2,669 | 3,011 | |
Average Recorded Investment | 2,840 | 2,955 | |
Interest income recognized | 7 | 81 | |
Total | |||
Unpaid Principal Balance | 5,877 | 5,698 | |
Related allowance | 488 | 621 | |
Recorded Investment | 5,246 | 5,387 | |
Average Recorded Investment | 5,316 | 4,695 | |
Interest income recognized | 93 | 166 | |
Consumer [Member] | |||
With no related allowance recorded: | |||
Unpaid Principal Balance | 0 | 0 | |
Related Allowance | 0 | 0 | |
Recorded Investment | 0 | 0 | |
Average Recorded Investment | 0 | 0 | |
Interest income recognized | 0 | 0 | |
With an allowance recorded: | |||
Unpaid Principal Balance | 26 | 19 | |
Related Allowance | 25 | 18 | |
Recorded Investment | 25 | 17 | |
Average Recorded Investment | 21 | 22 | |
Interest income recognized | 0 | 0 | |
Total | |||
Unpaid Principal Balance | 26 | 19 | |
Related allowance | 25 | 18 | |
Recorded Investment | 25 | 17 | |
Average Recorded Investment | 21 | 22 | |
Interest income recognized | 0 | 0 | |
Government [Member] | |||
With no related allowance recorded: | |||
Unpaid Principal Balance | 2,775 | 3,090 | |
Related Allowance | 0 | 0 | |
Recorded Investment | 2,775 | 3,090 | |
Average Recorded Investment | 2,933 | 1,545 | |
Interest income recognized | 72 | 150 | |
Total | |||
Unpaid Principal Balance | 2,775 | 3,090 | |
Related allowance | 0 | ||
Recorded Investment | 2,775 | 3,090 | |
Average Recorded Investment | 2,933 | 1,545 | |
Interest income recognized | 72 | 150 | |
Commercial and Industrial [Member] | |||
With no related allowance recorded: | |||
Unpaid Principal Balance | 2,285 | 2,906 | |
Related Allowance | 0 | 0 | |
Recorded Investment | 2,235 | 2,861 | |
Average Recorded Investment | 2,549 | 2,172 | |
Interest income recognized | 195 | 135 | |
With an allowance recorded: | |||
Unpaid Principal Balance | 5,697 | 2,231 | |
Related Allowance | 940 | 1,112 | |
Recorded Investment | 5,410 | 1,999 | |
Average Recorded Investment | 3,705 | 2,813 | |
Interest income recognized | 162 | 43 | |
Total | |||
Unpaid Principal Balance | 7,982 | 5,137 | |
Related allowance | 940 | 1,112 | |
Recorded Investment | 7,645 | 4,860 | |
Average Recorded Investment | 6,254 | 4,985 | |
Interest income recognized | 357 | 178 | |
Agricultural [Member] | |||
With no related allowance recorded: | |||
Unpaid Principal Balance | 0 | 0 | |
Related Allowance | 0 | ||
Recorded Investment | 0 | 0 | |
Average Recorded Investment | 0 | 0 | |
Interest income recognized | 0 | 0 | |
With an allowance recorded: | |||
Unpaid Principal Balance | 127 | 152 | |
Related Allowance | 36 | 55 | |
Recorded Investment | 122 | 152 | |
Average Recorded Investment | 137 | 153 | |
Interest income recognized | 0 | 0 | |
Total | |||
Unpaid Principal Balance | 127 | 152 | |
Related allowance | 36 | 55 | |
Recorded Investment | 122 | 152 | |
Average Recorded Investment | 137 | 153 | |
Interest income recognized | 0 | 0 | |
Commercial Construction and Development [Member] | |||
With no related allowance recorded: | |||
Unpaid Principal Balance | 0 | 1 | |
Related Allowance | 0 | 0 | |
Recorded Investment | 0 | 0 | |
Average Recorded Investment | 0 | 0 | |
Interest income recognized | 0 | 0 | |
With an allowance recorded: | |||
Unpaid Principal Balance | 135 | 142 | |
Related Allowance | 23 | 74 | |
Recorded Investment | 132 | 140 | |
Average Recorded Investment | 136 | 171 | |
Interest income recognized | 6 | 8 | |
Total | |||
Unpaid Principal Balance | 135 | 143 | |
Related allowance | 23 | 74 | |
Recorded Investment | 132 | 140 | |
Average Recorded Investment | 136 | 171 | |
Interest income recognized | 6 | 8 | |
Residential Prime [Member] | |||
With no related allowance recorded: | |||
Unpaid Principal Balance | 1,377 | 979 | |
Related Allowance | 0 | 0 | |
Recorded Investment | 1,281 | 866 | |
Average Recorded Investment | 1,074 | 845 | |
Interest income recognized | 34 | 14 | |
With an allowance recorded: | |||
Unpaid Principal Balance | 1,538 | 749 | |
Related Allowance | 390 | 101 | |
Recorded Investment | 1,031 | 706 | |
Average Recorded Investment | 869 | 1,085 | |
Interest income recognized | 18 | 9 | |
Total | |||
Unpaid Principal Balance | 2,915 | 1,728 | |
Related allowance | 390 | 101 | |
Recorded Investment | 2,312 | 1,572 | |
Average Recorded Investment | 1,943 | 1,930 | |
Interest income recognized | 52 | 23 | |
Residential HELOC [Member] | |||
With no related allowance recorded: | |||
Unpaid Principal Balance | 153 | 110 | |
Related Allowance | 0 | 0 | |
Recorded Investment | 153 | 110 | |
Average Recorded Investment | 132 | 55 | |
Interest income recognized | 5 | 3 | |
With an allowance recorded: | |||
Unpaid Principal Balance | 273 | 412 | |
Related Allowance | 186 | 119 | |
Recorded Investment | 247 | 400 | |
Average Recorded Investment | 324 | 453 | |
Interest income recognized | 0 | 5 | |
Total | |||
Unpaid Principal Balance | 426 | 522 | |
Related allowance | 186 | 119 | |
Recorded Investment | 400 | 510 | |
Average Recorded Investment | 456 | 508 | |
Interest income recognized | 5 | 8 | |
Residential - construction and development [Member] | |||
With no related allowance recorded: | |||
Unpaid Principal Balance | 0 | 0 | |
Related Allowance | 0 | ||
Recorded Investment | 0 | 0 | |
Average Recorded Investment | 0 | 0 | |
Interest income recognized | 0 | 0 | |
With an allowance recorded: | |||
Unpaid Principal Balance | 503 | 49 | |
Related Allowance | 170 | 8 | |
Recorded Investment | 491 | 47 | |
Average Recorded Investment | 269 | 106 | |
Interest income recognized | 1 | 1 | |
Total | |||
Unpaid Principal Balance | 503 | 49 | |
Related allowance | 170 | 8 | |
Recorded Investment | 491 | 47 | |
Average Recorded Investment | 269 | 106 | |
Interest income recognized | $1 | $1 |
Loans_Details_8
Loans (Details 8) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Loans on Non Accrual Status | ||
Loans on non accrual status | $8,371 | $7,340 |
Commercial Real Estate [Member] | ||
Loans on Non Accrual Status | ||
Loans on non accrual status | 3,505 | 4,103 |
Consumer Loan [Member] | ||
Loans on Non Accrual Status | ||
Loans on non accrual status | 25 | 17 |
Commercial and Industrial [Member] | ||
Loans on Non Accrual Status | ||
Loans on non accrual status | 2,519 | 1,575 |
Agricultural [Member] | ||
Loans on Non Accrual Status | ||
Loans on non accrual status | 122 | 152 |
Commercial construction and development [Member] | ||
Loans on Non Accrual Status | ||
Loans on non accrual status | 18 | 17 |
Residential Prime [Member] | ||
Loans on Non Accrual Status | ||
Loans on non accrual status | 1,426 | 1,059 |
Residential HELOC [Member] | ||
Loans on Non Accrual Status | ||
Loans on non accrual status | 280 | 387 |
Residential construction and development [Member] | ||
Loans on Non Accrual Status | ||
Loans on non accrual status | $476 | $30 |
Loans_Details_9
Loans (Details 9) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Contracts | Contracts | |
Government [Member] | ||
Troubled Debt Restructuring | ||
Number of Contracts | 1 | |
Pre-modification outstanding recorded investment | $2,775 | |
Post-modification outstanding recorded investment at period - end | 2,775 | |
Commercial Real Estate [Member] | ||
Troubled Debt Restructuring | ||
Number of Contracts | 7 | 5 |
Pre-modification outstanding recorded investment | 1,469 | 587 |
Post-modification outstanding recorded investment at period - end | 1,374 | 564 |
Subsequent Default | ||
Number of Contracts | 3 | 1 |
Recorded investment | 337 | 80 |
Commercial and Industrial [Member] | ||
Troubled Debt Restructuring | ||
Number of Contracts | 5 | 7 |
Pre-modification outstanding recorded investment | 1,252 | 1,012 |
Post-modification outstanding recorded investment at period - end | 1,152 | 642 |
Subsequent Default | ||
Number of Contracts | 4 | 1 |
Recorded investment | 323 | 0 |
Residential Prime [Member] | ||
Troubled Debt Restructuring | ||
Number of Contracts | 3 | 5 |
Pre-modification outstanding recorded investment | 401 | 867 |
Post-modification outstanding recorded investment at period - end | 275 | 852 |
Subsequent Default | ||
Number of Contracts | 2 | 1 |
Recorded investment | $0 | $87 |
Loans_Details_Textual
Loans (Details Textual) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Related Party Transaction [Line Items] | |||
Specific loan reserves for loans restructured | $591 | $258 | |
Loans receivable credit in excess | 500 | ||
Loans and leases receivable, related parties | 6,980 | 6,663 | 7,371 |
Loans on non accrual status | 8,371 | 7,340 | |
Proceeds from Lines of Credit | 204 | 201 | |
Modified loan principal restructured to capitalize unpaid property taxes | 1,445 | 1,272 | |
Modified loan principal restructured to capitalize unpaid property taxes, percentage | 25.00% | 52.00% | |
Modified loan principal to extend amortization or lower existing interest rates | 4,452 | 1,194 | |
Modified loan principal to extend amortization or lower existing interest rates, percentage | 75.00% | 48.00% | |
Specific Loan Reserves | 591 | 258 | |
Restructured payments description | When the default occurred within 12 months of the last restructuring date. For purposes of this table, default is defined as 90 days or more past due on restructured payments. | When the default occurred within 12 months of the last restructuring date. For purposes of this table, default is defined as 90 days or more past due on restructured payments. | |
Percentage of original loan principal | 1.00% | ||
commercial real estate loans | 3,137 | 5,202 | |
Purchased commercial real estate loans | 22,404 | 27,404 | |
Principal amount of residental loan | 18,834 | ||
Maximum guarntees of PSB obligation | 949 | ||
Approximate amount of loan | 1,412 | ||
Related Party [Member] | |||
Related Party Transaction [Line Items] | |||
Loans and leases receivable, related parties | $5,723 | $4,595 |
Foreclosed_Assets_Details
Foreclosed Assets (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Foreclosed Assets [Abstract] | |||
Balance at beginning of year | $1,750 | $1,774 | $2,939 |
Transfer of loans at net realizable value to foreclosed assets | 801 | 1,342 | 1,295 |
Sale proceeds | -782 | -831 | -1,527 |
Loans made on sale of foreclosed assets | -43 | -234 | -490 |
Net gain (loss) from sale of foreclosed assets | -10 | 105 | 42 |
Provision for write-down charged to operations | -55 | -406 | -485 |
Balance at end of year | $1,661 | $1,750 | $1,774 |
Foreclosed_Assets_Details_Text
Foreclosed Assets (Details Textual) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Foreclosed Assets [Abstract] | |||
Total loss on foreclosed assets | $233 | $428 | $573 |
Mortgage_Servicing_Rights_Deta
Mortgage Servicing Rights (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance, beginning | $1,696 | $1,233 | $1,205 |
Additions from originated servicing | 339 | 625 | 774 |
Amortization charged to earnings | -278 | -421 | -547 |
Change in valuation allowance credited to earnings | -19 | 259 | -199 |
Balance, ending | 1,738 | 1,696 | 1,233 |
Originated MSR (Member) | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance, beginning | 1,717 | 1,513 | 1,286 |
Additions from originated servicing | 339 | 625 | 774 |
Amortization charged to earnings | -278 | -421 | -547 |
Change in valuation allowance credited to earnings | 0 | 0 | 0 |
Balance, ending | 1,778 | 1,717 | 1,513 |
Valuation Allowance (Member) | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance, beginning | -21 | -280 | -81 |
Additions from originated servicing | 0 | 0 | 0 |
Amortization charged to earnings | 0 | 0 | 0 |
Change in valuation allowance credited to earnings | -19 | 259 | -199 |
Balance, ending | ($40) | ($21) | ($280) |
Mortgage_Servicing_Rights_Deta1
Mortgage Servicing Rights (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Mortgage Servicing Rights [Abstract] | |||
Cash gain on sale of mortgage loans | $659 | $826 | $1,113 |
Originated mortgage servicing rights | 339 | 625 | 774 |
Increase (decrease) in accrued mortgage rate lock commitments | -7 | -78 | 31 |
Gain on sale of mortgage loans | 1,047 | 1,373 | 1,918 |
Mortgage servicing fee income | 691 | 674 | 649 |
Provision for representation and warranty losses on serviced loans | -8 | -294 | 0 |
Foreclosure servicing losses | -4 | 0 | -26 |
Amortization of mortgage servicing rights | -278 | -421 | -547 |
Decrease (increase) in servicing right valuation allowance | -19 | 259 | -199 |
Loan servicing fee income, net | 382 | 218 | -123 |
Mortgage banking income, net | $1,373 | $1,591 | $1,795 |
Mortgage_Servicing_Rights_Deta2
Mortgage Servicing Rights (Details Textual) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Mortgage Servicing Rights [Abstract] | ||
Unpaid principal balances of residential mortgage loans | $279,865 | $272,280 |
Premises_and_Equipment_Details
Premises and Equipment (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | $17,826 | $16,414 |
Less - Accumulated depreciation and amortization | 6,985 | 6,745 |
Totals | 10,841 | 9,669 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 2,756 | 2,261 |
Buildings and improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 10,466 | 9,379 |
Furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 2,802 | 3,084 |
Computer hardware and software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | $1,802 | $1,690 |
Premises_and_Equipment_Details1
Premises and Equipment (Details Textual) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Premises and Equipment [Abstract] | |||
Depreciation and amortization | $727 | $723 | $659 |
Lease expiration date | 31-May-16 | ||
Future minimum payments under the noncancelable lease 2015 | 61 | ||
Future minimum payments under the noncancelable lease 2016 | 26 | ||
Rental expense for all operating leases | $78 | $76 | $72 |
Deposits_Details
Deposits (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Distribution of deposits | ||
Non-interest-bearing demand | $114,803 | $102,644 |
Interest-bearing demand (NOWs) | 123,844 | 118,769 |
Savings | 64,794 | 57,658 |
Money market | 146,996 | 136,797 |
Retail and local time | 122,376 | 104,287 |
Wholesale market and national time | 50,138 | 57,359 |
Total deposits | $622,951 | $577,514 |
Deposits_Details_1
Deposits (Details 1) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Maturities of time deposits | |
2015 | $83,896 |
2016 | 26,977 |
2017 | 23,227 |
2018 | 13,837 |
2019 | 23,409 |
Thereafter | 1,168 |
Total | $172,514 |
Deposits_Details_Textual
Deposits (Details Textual) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deposits\Federal Home Loan Bank Advances [Abstract] | ||
Time deposits with individual balances over $100,000 | $101,084 | $103,207 |
Deposits from directors, executive officers, and related parties | $8,483 | $9,304 |
Federal_Home_Loan_Bank_Advance2
Federal Home Loan Bank Advances (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Weighted Average Rate | 0.91% | 2.87% |
Federal Home Loan Bank advances | $20,271 | $38,049 |
Fixed rate, interest only Tranche 1 [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Scheduled Maturity | 2015 | 2014 |
Range of Rates, lower limit | 2.69% | |
Range of Rates, upper limit | 3.45% | |
Range of Rates | 0.13% | |
Weighted Average Rate | 0.13% | 3.18% |
Federal Home Loan Bank advances | 10,000 | 31,049 |
Fixed rate, interest only Tranche 2 [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Scheduled Maturity | 2017 | 2018 |
Range of Rates, lower limit | 0.77% | |
Range of Rates, upper limit | 1.17% | |
Range of Rates | 1.92% | |
Weighted Average Rate | 1.00% | 1.92% |
Federal Home Loan Bank advances | 1,350 | 2,000 |
Fixed rate, interest only Tranche 3 [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Scheduled Maturity | 2018 | |
Range of Rates | 1.92% | |
Weighted Average Rate | 1.92% | |
Federal Home Loan Bank advances | 2,000 | |
Fixed rate, interest only Tranche 4 [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Scheduled Maturity | 2019 | |
Range of Rates, lower limit | 1.66% | |
Range of Rates, upper limit | 1.89% | |
Weighted Average Rate | 1.72% | |
Federal Home Loan Bank advances | 6,921 | |
Variable rate, interest only Tranche 1 [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Scheduled Maturity | 2014 | |
Range of Rates | 1.33% | |
Weighted Average Rate | 1.33% | |
Federal Home Loan Bank advances | $5,000 |
Federal_Home_Loan_Bank_Advance3
Federal Home Loan Bank Advances (Details Textual) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Deposits\Federal Home Loan Bank Advances [Abstract] | ||
FHLB public unit deposit letters of credit outstanding | $2,458 | $6,920 |
Federal Home Loan Bank stock (at cost) | 2,556 | 2,556 |
Maximum line of credit - FHLB advances | 101,553 | |
Residential real estate mortgage collateral pledged to FHLB line of credit advances | 175,707 | |
Available and unused portion of FHLB line of credit advances | 81,282 | |
Current agreement with FHLB, additional borrowing capacity by pledging securities | 57,599 | |
FHLB advances drawn which rquire additional purchases of FHLB capital stock | $51,120 | |
Federal Home Loan Bank, Description | PSB may draw upon an FHLB open line of credit or provide public unit deposit letters of credit up to approximately 65% of unencumbered one- to four-family residential first mortgage loans and 40% of residential junior mortgage loans pledged as collateral out of its portfolio. |
Other_Borrowings_Details
Other Borrowings (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of other borrowings | ||
Short-term repurchase agreements | $4,324 | $5,441 |
Bank stock term loan | 500 | 1,500 |
Wholesale structured repurchase agreements | 5,500 | 13,500 |
Total other borrowings | $10,324 | $20,441 |
Other_Borrowings_Details_1
Other Borrowings (Details 1) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
As of end of year: | ||
Weighted average rate | 2.40% | 3.08% |
For the year: | ||
Highest month-end balance | $23,698 | $24,100 |
Daily average balance | $18,649 | $21,862 |
Weighted average rate | 3.00% | 2.97% |
Other_Borrowings_Details_Textu
Other Borrowings (Details Textual) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Other Borrowings [Abstract] | ||
Securities pledged for repurchase agreements | $12,722 | $22,699 |
Fixed Interest Rate | 4.09% | |
Line of credit with Bankers' Bank, Madison, WI | 3,000 | |
Maximum advances from Federal Reserve under Discount Window program | 100,000 | |
Commercial Purpose Loans pledged as collateral under Discount Window Program | 114,157 | |
Advances available from Federal Reserve under Discount Window Program | 81,207 | |
Interest expense | 27 | 54 |
Principal payments due | $500 | |
Maturity date | 30-Nov-17 |
Senior_Subordinated_Notes_Deta
Senior Subordinated Notes (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Debt Instrument [Line Items] | |||||||||||||||
Repayment of debt, cash | $0 | $3,000 | $0 | ||||||||||||
Interest expense | 988 | 1,099 | 1,168 | 1,231 | 1,363 | 1,350 | 1,375 | 1,423 | 1,643 | 1,770 | 1,799 | 1,879 | 4,486 | 5,511 | 7,091 |
8% Senior Subordinated Note [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Prepayment of senior subordinated notes | 7,000 | ||||||||||||||
Interest rate on notes payable | 3.75% | 3.75% | |||||||||||||
Repayment of debt, cash | 1,000 | ||||||||||||||
Notes payable to related parties | 4,000 | 4,000 | |||||||||||||
Interest expense | 150 | 184 | 578 | ||||||||||||
Bankers' Bank Term Loan [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Notes payable to related parties | 4,000 | 4,000 | |||||||||||||
Debt instrument, face amount | $2,000 | $2,000 |
Junior_Subordinated_Debentures1
Junior Subordinated Debentures (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 |
Debt Instrument [Line Items] | ||||
Junior subordinated debentures | $7,732 | $7,732 | ||
Junior Subordinated Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate on notes payable | 1.70% | |||
Interest rate description | The debentures currently pay a variable rate of interest based on changes in the three-month LIBOR plus 1.70%, adjusted quarterly. | Entered into a cash flow hedge to fix the payments of interest (excluding the credit spread) on the debentures for a seven-year period ending September 2017 at a rate of 2.72%. Including the credit spread, the net interest due on the notes until September 2017 will be equal to a fixed rate of 4.42%. | ||
Interest rate on notes payable | 4.42% | |||
Interest expense on junior subordinated debentures | $340 | $341 | $342 |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Activities (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Pay fixed rate | 4.09% | |
Unrealized loss (fair value) | $325 | |
Variable interest rate swaps [Member] | Designated as hedging instrument [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount | 7,500 | 7,500 |
Pay fixed rate | 2.72% | 2.72% |
Receive variable rate | 0.24% | 0.24% |
Maturity | 15-Sep-17 | 15-Sep-17 |
Unrealized loss (fair value) | $325 | $438 |
Derivative_Instruments_and_Hed3
Derivative Instruments and Hedging Activities (Details 1) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Unrealized gain fair value | $325 | |
Not Designated as Hedging Instrument [Member] | Floating interest rate swaps [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount | 13,646 | 14,323 |
Receive fixed rate (average) | 2.00% | 2.00% |
Pay variable rate (average) | 0.16% | 0.17% |
Maturity, Lower maturity range | 3/31/15 | 3/31/15 |
Maturity, Higher maturity range | 10/31/21 | 10/31/21 |
Weighted average remaining term | 1 year 10 months 24 days | 2 years 10 months 24 days |
Unrealized gain fair value | $194 | $276 |
Derivative_Instruments_and_Hed4
Derivative Instruments and Hedging Activities (Details 2) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Unrealized gain fair value | $325 | |
Offsetting fixed interest rate swaps [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount | 13,646 | 14,323 |
Pay fixed rate (average) | 2.00% | 2.00% |
Receive variable rate (average) | 0.16% | 0.17% |
Maturity, Lower maturity range | 3/31/15 | 3/31/15 |
Maturity, Higher maturity range | 10/31/21 | 10/31/21 |
Weighted average remaining term | 1 year 10 months 24 days | 2 years 10 months 24 days |
Unrealized gain fair value | ($194) | ($276) |
Derivative_Instruments_and_Hed5
Derivative Instruments and Hedging Activities (Details Textual) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments and Hedging Activities [Abstract] | |||
Unrealized fair value gain (loss) | $325 | ||
Unrealized gain (loss) on interest rate swap | -44 | 46 | -179 |
Percentage of Hedging | 100.00% | ||
Unrealized loss reported in other comprehensive income related to the interest rate swap, gross | 176 | ||
Reclassification adjustment of interest rate swap settlements included in earnings, income tax | -114 | -113 | -104 |
Unrealized loss reported in other comprehensive income related to the interest rate swap, estimate of time to transfer | 12 months | ||
Interest rate swap agreement, secured cash and cash equivalents | 430 | 570 | |
Reclassification adjustment of interest rate swap settlements included in earnings | -188 | -186 | -172 |
Reclassification from accumulated ocito income estimated net amount to be transferred net of tax | 107 | ||
Reclassification interest rate settlement from net of tax | 188 | 186 | |
Reclassification interest rate settlement from net after tax | $114 | $113 |
Retirement_and_Deferred_Compen1
Retirement and Deferred Compensation Plans (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Retirement and Deferred Compensation Plans [Abstract] | |||
401(k) plan description | PSB has established a 401(k) profit sharing plan for its employees. PSB matches 100% of employees' salary deferrals up to the first 1% of pay deferred and 50% of salary deferrals of the next 5% of pay deferrals, for a maximum match of 3.5% of salary. PSB also may declare a discretionary profit sharing contribution. | ||
Expense recognized for contributions to the 401(k) plan | $521 | $446 | $509 |
Deferred compensation agreement description | PSB maintains deferred compensation agreements with certain executives and directors. PSB matches 20% of the amount of employees' salary deferrals up to the first 15% of pay deferred. PSB directors may elect to defer earned directors' fees into a separate deferred directors' fees plan. No PSB match is made on deferred directors' fees. Cumulative deferred balances earn a crediting rate generally equal to 100% of PSB's return on average equity until retirement or separation from service. The agreements provide for benefits to be paid in a lump sum at retirement or in monthly installments for a period up to 15 years following each participant's normal retirement date with interest payable at a fixed interest rate ranging from 7% to 8%. | ||
Deferred compensation liability outstanding | 3,427 | 3,155 | |
Deferred compensation expense | $333 | $270 | $301 |
SelfFunded_Health_Insurance_Pl1
Self-Funded Health Insurance Plan (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Self-Funded Health Insurance Plan [Abstract] | |||
Employee medical benefit plan to self-insure claims | $105 | ||
Liability recognized for claims | 77 | 77 | |
Health and dental insurance expense | $925 | $1,130 | $1,078 |
Income_Tax_Details
Income Tax (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current income tax provision: | |||
Federal | $2,236 | $1,246 | $1,600 |
State | 763 | 450 | 535 |
Total current | 2,999 | 1,696 | 2,135 |
Deferred income tax provision (benefit): | |||
Federal | -113 | -132 | 330 |
State | 20 | 99 | 70 |
Total deferred | -93 | -33 | 400 |
Total provision for income taxes | $2,906 | $1,663 | $2,535 |
Income_Tax_Details_1
Income Tax (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes [Abstract] | |||
Tax expense at statutory rate, Amount | $3,178 | $2,178 | $2,905 |
Increase (decrease) in taxes resulting from: | |||
Tax-exempt interest, Amount | -605 | -703 | -778 |
Bank-owned life insurance, Amount | -137 | -137 | -138 |
State income tax, Amount | 517 | 362 | 399 |
Merger-related expenses, Amount | 0 | 0 | 73 |
Other, Amount | -47 | -37 | 74 |
Total provision for income taxes | $2,906 | $1,663 | $2,535 |
Tax expense at statutory rate, Percent of Pretax Income | 34.00% | 34.00% | 34.00% |
Increase (decrease) in taxes resulting from: | |||
Tax-exempt interest, Percent of Pretax Income | -6.50% | -11.00% | -9.10% |
Bank-owned life insurance, Percent of Pretax Income | -1.50% | -2.10% | -1.60% |
State income tax, Percent of Pretax Income | 5.60% | 5.70% | 4.70% |
Merger-related expenses, Percent of Pretax Income | 0.00% | 1.00% | |
Other, Percent of Pretax Income | -0.50% | -0.60% | 1.00% |
Total provision for income taxes, Percent of Pretax Income | 31.10% | 26.00% | 30.00% |
Income_Tax_Details_2
Income Tax (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Allowance for loan losses | $2,467 | $2,579 |
Deferred compensation and directors' fees | 1,424 | 1,308 |
Foreclosed assets | 248 | 352 |
Unrealized loss on interest rate swaps | 128 | 171 |
Other | 307 | 223 |
Gross deferred tax assets | 4,574 | 4,633 |
Deferred tax liabilities: | ||
Premises and equipment | 705 | 769 |
Mortgage servicing rights | 687 | 673 |
FHLB stock | 120 | 120 |
Unrealized gain on securities available for sale | 541 | 400 |
Deferred net loan origination costs | 120 | 128 |
Prepaid expenses | 88 | 139 |
Gross deferred tax liabilities | 2,261 | 2,229 |
Net deferred tax asset | $2,313 | $2,404 |
Income_Tax_Details_3
Income Tax (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pre-Tax Income (Expense) | |||
Unrealized gain (loss) on securities available for sale | $693 | ($1,574) | ($310) |
Reclassification adjustment for security gain included in net income | -3 | -12 | 0 |
Amortization of unrealized gain on securities available for sale transferred to securities held to maturity included in net income | -330 | -420 | -452 |
Unrealized gain (loss) on interest rate swap | -73 | 75 | -295 |
Reclassification adjustment of interest rate swap settlements included in earnings | 188 | 186 | 172 |
Totals | 475 | -1,745 | -885 |
Income Tax Expense (Credit) | |||
Unrealized gain (loss) on securities available for sale | 273 | -613 | -119 |
Reclassification adjustment for security gain included in net income | -1 | -5 | 0 |
Amortization of unrealized gain on securities available for sale transferred to securities held to maturity included in net income | -130 | -184 | -178 |
Unrealized gain (loss) on interest rate swap | -29 | 29 | -116 |
Reclassification adjustment of interest rate swap settlements included in earnings | 74 | 73 | 68 |
Totals | $187 | ($700) | ($345) |
Commitments_Contingencies_and_2
Commitments, Contingencies, and Credit Risk (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Commitments | $123,912 | $119,443 |
Commitments to extend credit - Fixed and variable rates [Member] | ||
Commitments | 91,206 | 89,645 |
Commercial standby letters of credit -Variable rate [Member] | ||
Commitments | 2,388 | 4,533 |
Unused home equity lines of credit - Variable rate[Member] | ||
Commitments | 29,034 | 24,082 |
Unused credit card commitments - Variable rate [Member] | ||
Commitments | 335 | 234 |
Mortgage Partnership Finance program [Member] | ||
Commitments | $949 | $949 |
Commitments_Contingencies_and_3
Commitments, Contingencies, and Credit Risk (Details Textual) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Commitments unused by cardholders | $210 | |
Proceeds from credit card loan | 671 | |
Credit risk description | The commitments are generally structured to allow for 100% collateralization on all letters of credit. | |
Loss on sale of credit card loan balances | 31 | |
Loss on sale of credit card loan balances, net of tax | 19 | |
Aggregate exposure on the full recourse balances amount | 335 | |
FHLB Mortgage Partnership Finance Program [Member] | ||
Amount of commitments outstanding | $688 | $1,507 |
Stock_Based_Compensation_Detai
Stock Based Compensation (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | |
Restricted stock, Shares | ||||
Restricted stock beginning balance | 32,602 | |||
Restricted stock ending balance | 31,362 | 32,602 | 30,409 | 32,602 |
Restricted stock, Weighted Average Grant Price | ||||
Restricted stock weighted average grant price, beginning balance | $21.30 | |||
Restricted stock weighted average grant price, ending balance | $23.92 | $21.30 | $19.39 | $21.30 |
Restricted Stock [Member] | ||||
Restricted stock, Shares | ||||
Restricted stock beginning balance | 32,602 | 30,409 | 25,572 | 32,602 |
Restricted stock granted | 6,400 | 8,076 | 8,895 | |
Restricted shares vested | -7,640 | -5,883 | -4,058 | |
Restricted stock ending balance | 31,362 | 32,602 | 30,409 | 32,602 |
Restricted stock, Weighted Average Grant Price | ||||
Restricted stock weighted average grant price, beginning balance | $21.30 | $19.39 | $17.79 | $21.30 |
Restricted stock weighted average grant price, granted | $31.25 | $26 | $22.48 | |
Restricted stock weighted average grant price vested | ($18.91) | ($17.85) | ($16.08) | |
Restricted stock weighted average grant price, ending balance | $23.92 | $21.30 | $19.39 | $21.30 |
Stock_Based_Compensation_Detai1
Stock Based Compensation (Details 1) (Restricted Stock [Member], USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
2015 | $157 |
2016 | 162 |
2017 | 122 |
2018 | 82 |
2019 | 40 |
Total | $563 |
Stock_Based_Compensation_Detai2
Stock Based Compensation (Details 2) (USD $) | 12 Months Ended |
Dec. 31, 2012 | |
Options | |
Options outstanding, begining balance | 588 |
Options granted | 0 |
Options exercised | -588 |
Option forfeited | 0 |
Options outstanding, ending balance | 0 |
Weighted average exercise price | |
Options weighted average price outstanding, begining balance | $16.03 |
Options granted, weighted average price | $0 |
Options exercised, weighted average price | ($16.03) |
Option forfeited, weighted average exercise price | $0 |
Options weighted average price outstanding, ending balance | $0 |
Stock_Based_Compensation_Detai3
Stock Based Compensation (Details Textual) (USD $) | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 |
Stock Based Compensation [Abstract] | ||||
Value of restricted stocks granted to employees at grant date | $200 | $210 | $200 | |
Restricted Stock Balance | 31,362 | 32,602 | 30,409 | 32,602 |
Compensation expense recorded from amortization of restricted stock expected to vest | $166 | $145 | $105 | |
Tax effect of amortization of restricted stock | $65 | $57 | $41 |
Capital_Requirements_Details
Capital Requirements (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Consolidated [Member] | ||
Total capital (to risk weighted assets): | ||
Actual amount | $74,370 | $70,048 |
Actual ratio | 14.24% | 13.88% |
For capital adequacy purposes amount | 41,781 | 40,365 |
For capital adequacy purposes amount ratio | 8.00% | 8.00% |
To be well- capitalized under prompt corrective action provisions amount | ||
To be well- capitalized under prompt corrective action provisions amount ratio | ||
Tier I capital (to risk weighted assets): | ||
Actual amount | 67,876 | 63,734 |
Actual ratio | 12.99% | 12.63% |
For capital adequacy purposes amount | 20,901 | 20,182 |
For capital adequacy purposes amount ratio | 4.00% | 4.00% |
To be well- capitalized under prompt corrective action provisions amount | ||
To be well- capitalized under prompt corrective action provisions amount ratio | ||
Tier I capital (to average assets): | ||
Actual amount | 67,876 | 63,734 |
Actual ratio | 9.30% | 9.06% |
For capital adequacy purposes amount | 29,194 | 28,130 |
For capital adequacy purposes amount ratio | 4.00% | 4.00% |
To be well- capitalized under prompt corrective action provisions amount | ||
To be well- capitalized under prompt corrective action provisions amount ratio | ||
Peoples State Bank [Member] | ||
Total capital (to risk weighted assets): | ||
Actual amount | 75,373 | 72,321 |
Actual ratio | 14.45% | 14.35% |
For capital adequacy purposes amount | 41,729 | 40,312 |
For capital adequacy purposes amount ratio | 8.00% | 8.00% |
To be well- capitalized under prompt corrective action provisions amount | 52,161 | 50,390 |
To be well- capitalized under prompt corrective action provisions amount ratio | 10.00% | 10.00% |
Tier I capital (to risk weighted assets): | ||
Actual amount | 68,879 | 66,015 |
Actual ratio | 13.20% | 13.10% |
For capital adequacy purposes amount | 20,872 | 20,156 |
For capital adequacy purposes amount ratio | 4.00% | 4.00% |
To be well- capitalized under prompt corrective action provisions amount | 31,309 | 30,234 |
To be well- capitalized under prompt corrective action provisions amount ratio | 6.00% | 6.00% |
Tier I capital (to average assets): | ||
Actual amount | 68,879 | 66,015 |
Actual ratio | 9.44% | 9.39% |
For capital adequacy purposes amount | 29,186 | 28,130 |
For capital adequacy purposes amount ratio | 4.00% | 4.00% |
To be well- capitalized under prompt corrective action provisions amount | $36,483 | $35,163 |
To be well- capitalized under prompt corrective action provisions amount ratio | 5.00% | 5.00% |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||
Weighted average shares outstanding | 1,651,045 | 1,652,700 | 1,663,147 | ||||||||||||||||||||||||
Effect of dilutive stock options outstanding | 0 | 0 | 58 | ||||||||||||||||||||||||
Diluted weighted average shares outstanding | 1,651,045 | 1,652,700 | 1,663,205 | ||||||||||||||||||||||||
Basic earnings per share | $1.10 | [1] | $1.08 | [1] | $0.85 | [1] | $0.87 | [1] | $0.95 | [1] | $0.01 | [1] | $0.95 | [1] | $0.97 | [1] | $1.01 | [1] | $0.74 | [1] | $1.15 | [1] | $0.70 | [1] | $3.90 | $2.87 | $3.61 |
Diluted earnings per share | $1.10 | [1] | $1.08 | [1] | $0.85 | [1] | $0.87 | [1] | $0.95 | [1] | $0.01 | [1] | $0.95 | [1] | $0.97 | [1] | $1.01 | [1] | $0.74 | [1] | $1.15 | [1] | $0.70 | [1] | $3.90 | $2.87 | $3.61 |
[1] | Basic and diluted earnings per share may not foot to the total for the year ended December 31 due to rounding. |
Earnings_Per_Share_Detail_Text
Earnings Per Share (Detail Textuals) | 12 Months Ended |
Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |
Stock dividend percentage | 5.00% |
Restrictions_on_Retained_Earni1
Restrictions on Retained Earnings (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Restrictions on Retained Earnings [Abstract] | |
Restrict potential dividends description | At December 31, 2014, management believes that maintaining the regulatory framework of the Bank at the well-capitalized level will effectively restrict potential dividends from the Bank to an amount less than $23,212. |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Schedule of significant unobservable inputs to measure fair value | |
Direct annual servicing cost per loan | $60 |
Direct annual servicing cost per loan in process of foreclosure | $600 |
Weighted average prepayment speed: CPR | 12.57% |
Weighted average prepayment speed: PSA | 249.06% |
Weighted average cash flow discount rate | 7.91% |
Asset reinvestment rate | 4.00% |
Short-term cost of funds | 0.25% |
Escrow inflation adjustment | 1.00% |
Servicing cost inflation adjustment | 1.00% |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Available-for-sale Securities [Abstract] | ||
Total securities available for sale | $74,378 | $61,650 |
Loans held for sale | 100 | 150 |
Mortgage rate lock commitments | 6 | 14 |
Interest rate swap agreements | 194 | 276 |
Total assets | 74,678 | 62,090 |
Liabilities - Interest rate swap agreements | 519 | 714 |
Quoted Prices in Active Markets for identical Assets [Member] | ||
Available-for-sale Securities [Abstract] | ||
Total securities available for sale | ||
Loans held for sale | ||
Mortgage rate lock commitments | ||
Interest rate swap agreements | ||
Total assets | ||
Liabilities - Interest rate swap agreements | ||
Significant Other Observable Inputs (Level 2) [Member] | ||
Available-for-sale Securities [Abstract] | ||
Total securities available for sale | 74,331 | 61,603 |
Loans held for sale | 100 | 150 |
Mortgage rate lock commitments | 6 | 14 |
Interest rate swap agreements | 194 | 276 |
Total assets | 74,631 | 62,043 |
Liabilities - Interest rate swap agreements | 519 | 714 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Available-for-sale Securities [Abstract] | ||
Total securities available for sale | 47 | 47 |
Loans held for sale | ||
Mortgage rate lock commitments | ||
Interest rate swap agreements | ||
Total assets | 47 | 47 |
Liabilities - Interest rate swap agreements | ||
Obligations of states and political subdivisions [Member] | ||
Available-for-sale Securities [Abstract] | ||
Total securities available for sale | 159 | |
Obligations of states and political subdivisions [Member] | Quoted Prices in Active Markets for identical Assets [Member] | ||
Available-for-sale Securities [Abstract] | ||
Total securities available for sale | ||
Obligations of states and political subdivisions [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Available-for-sale Securities [Abstract] | ||
Total securities available for sale | 159 | |
Obligations of states and political subdivisions [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Available-for-sale Securities [Abstract] | ||
Total securities available for sale | ||
U.S. agency issued residential MBS and CMO [Member] | ||
Available-for-sale Securities [Abstract] | ||
Total securities available for sale | 73,352 | 59,390 |
U.S. agency issued residential MBS and CMO [Member] | Quoted Prices in Active Markets for identical Assets [Member] | ||
Available-for-sale Securities [Abstract] | ||
Total securities available for sale | ||
U.S. agency issued residential MBS and CMO [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Available-for-sale Securities [Abstract] | ||
Total securities available for sale | 73,352 | 59,390 |
U.S. agency issued residential MBS and CMO [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Available-for-sale Securities [Abstract] | ||
Total securities available for sale | ||
Privately issued residential MBS and CMO [Member] | ||
Available-for-sale Securities [Abstract] | ||
Total securities available for sale | 29 | 105 |
Privately issued residential MBS and CMO [Member] | Quoted Prices in Active Markets for identical Assets [Member] | ||
Available-for-sale Securities [Abstract] | ||
Total securities available for sale | ||
Privately issued residential MBS and CMO [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Available-for-sale Securities [Abstract] | ||
Total securities available for sale | 29 | 105 |
Privately issued residential MBS and CMO [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Available-for-sale Securities [Abstract] | ||
Total securities available for sale | ||
Nonrated SBA loan fund [Member] | ||
Available-for-sale Securities [Abstract] | ||
Total securities available for sale | 950 | 950 |
Nonrated SBA loan fund [Member] | Quoted Prices in Active Markets for identical Assets [Member] | ||
Available-for-sale Securities [Abstract] | ||
Total securities available for sale | ||
Nonrated SBA loan fund [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Available-for-sale Securities [Abstract] | ||
Total securities available for sale | 950 | 950 |
Nonrated SBA loan fund [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Available-for-sale Securities [Abstract] | ||
Total securities available for sale | ||
Other equity securities [Member] | ||
Available-for-sale Securities [Abstract] | ||
Total securities available for sale | 47 | 47 |
Other equity securities [Member] | Quoted Prices in Active Markets for identical Assets [Member] | ||
Available-for-sale Securities [Abstract] | ||
Total securities available for sale | ||
Other equity securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Available-for-sale Securities [Abstract] | ||
Total securities available for sale | ||
Other equity securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Available-for-sale Securities [Abstract] | ||
Total securities available for sale | 47 | 47 |
U.S. Treasury and agency debentures [Member] | ||
Available-for-sale Securities [Abstract] | ||
Total securities available for sale | 999 | |
U.S. Treasury and agency debentures [Member] | Quoted Prices in Active Markets for identical Assets [Member] | ||
Available-for-sale Securities [Abstract] | ||
Total securities available for sale | ||
U.S. Treasury and agency debentures [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Available-for-sale Securities [Abstract] | ||
Total securities available for sale | 999 | |
U.S. Treasury and agency debentures [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Available-for-sale Securities [Abstract] | ||
Total securities available for sale |
Fair_Value_Measurements_Detail2
Fair Value Measurements (Details 2) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning | $47 | $47 |
Total realized/unrealized gains and (losses): | ||
Included in earnings | 0 | 0 |
Included in other comprehensive income | 0 | 0 |
Purchases, maturities, and sales | 0 | 0 |
Balance, ending | 47 | 47 |
Total gains or (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held | $0 | $0 |
Fair_Value_Measurements_Detail3
Fair Value Measurements (Details 3) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Assets measured at fair value on a non recurring basis | ||||
Impaired loans | $1,956 | $1,720 | ||
Foreclosed assets | 1,661 | 1,750 | 1,774 | 2,939 |
Mortgage servicing rights | 1,738 | 1,696 | ||
Other intangible assets | 274 | |||
Total assets | 5,629 | 5,166 | ||
Quoted Prices in Active Markets for identical Assets [Member] | ||||
Assets measured at fair value on a non recurring basis | ||||
Impaired loans | ||||
Foreclosed assets | ||||
Mortgage servicing rights | ||||
Other intangible assets | ||||
Total assets | ||||
Significant Other Observable Inputs (Level 2) [Member] | ||||
Assets measured at fair value on a non recurring basis | ||||
Impaired loans | 97 | |||
Foreclosed assets | 284 | 792 | ||
Mortgage servicing rights | 0 | |||
Other intangible assets | 0 | |||
Total assets | 381 | 792 | ||
Significant Unobservable Inputs (Level 3) [Member] | ||||
Assets measured at fair value on a non recurring basis | ||||
Impaired loans | 1,859 | 1,720 | ||
Foreclosed assets | 1,377 | 958 | ||
Mortgage servicing rights | 1,738 | 1,696 | ||
Other intangible assets | 274 | |||
Total assets | $5,248 | $4,374 |
Fair_Value_Measurements_Detail4
Fair Value Measurements (Details 4) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Level 1 [Member] | ||
Assets [Abstract] | ||
Cash and cash equivalents | $25,106 | $31,522 |
Securities | 0 | 0 |
Bank certificates of deposit | 0 | 0 |
Net loans receivable and loans held for sale | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Mortgage rate lock commitments | 0 | 0 |
FHLB stock | 0 | 0 |
Cash surrender value of life insurance | 0 | 0 |
Interest rate swap agreements | 0 | 0 |
Liabilities and Equity [Abstract] | ||
Deposits | 0 | 0 |
FHLB advances | 0 | 0 |
Other borrowings | 0 | 0 |
Senior subordinated notes | 0 | 0 |
Junior subordinated debentures | 0 | 0 |
Interest rate swap agreements | 0 | 0 |
Accrued interest payable | 0 | 0 |
Level 2 [Member] | ||
Assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Securities | 143,522 | 131,479 |
Bank certificates of deposit | 0 | 0 |
Net loans receivable and loans held for sale | 197 | 150 |
Accrued interest receivable | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Mortgage rate lock commitments | 6 | 14 |
FHLB stock | 0 | 0 |
Cash surrender value of life insurance | 13,230 | 12,826 |
Interest rate swap agreements | 194 | 276 |
Liabilities and Equity [Abstract] | ||
Deposits | 0 | 0 |
FHLB advances | 20,316 | 38,511 |
Other borrowings | 5,942 | 14,364 |
Senior subordinated notes | 0 | 0 |
Junior subordinated debentures | 0 | 0 |
Interest rate swap agreements | 519 | 714 |
Accrued interest payable | 0 | 0 |
Level 3 [Member] | ||
Assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Securities | 1,865 | 1,843 |
Bank certificates of deposit | 5,446 | 2,280 |
Net loans receivable and loans held for sale | 528,499 | 514,159 |
Accrued interest receivable | 2,074 | 2,076 |
Mortgage servicing rights | 1,738 | 1,696 |
Mortgage rate lock commitments | 0 | 0 |
FHLB stock | 2,556 | 2,556 |
Cash surrender value of life insurance | 0 | 0 |
Interest rate swap agreements | 0 | 0 |
Liabilities and Equity [Abstract] | ||
Deposits | 623,439 | 578,387 |
FHLB advances | 0 | 0 |
Other borrowings | 4,822 | 6,887 |
Senior subordinated notes | 3,604 | 3,489 |
Junior subordinated debentures | 7,248 | 7,085 |
Interest rate swap agreements | 0 | 0 |
Accrued interest payable | 331 | 477 |
Carrying Amount [Member] | ||
Assets [Abstract] | ||
Cash and cash equivalents | 25,106 | 31,522 |
Securities | 144,157 | 133,279 |
Bank certificates of deposit | 3,424 | 2,236 |
Net loans receivable and loans held for sale | 525,683 | 510,030 |
Accrued interest receivable | 2,074 | 2,076 |
Mortgage servicing rights | 1,738 | 1,696 |
Mortgage rate lock commitments | 6 | 14 |
FHLB stock | 2,556 | 2,556 |
Cash surrender value of life insurance | 13,230 | 12,826 |
Interest rate swap agreements | 194 | 276 |
Liabilities and Equity [Abstract] | ||
Deposits | 622,951 | 577,514 |
FHLB advances | 20,271 | 38,049 |
Other borrowings | 10,324 | 20,441 |
Senior subordinated notes | 4,000 | 4,000 |
Junior subordinated debentures | 7,732 | 7,732 |
Interest rate swap agreements | 519 | 714 |
Accrued interest payable | 331 | 477 |
Estimate of Fair Value [Member] | ||
Assets [Abstract] | ||
Cash and cash equivalents | 25,106 | 31,522 |
Securities | 145,387 | 133,322 |
Bank certificates of deposit | 3,446 | 2,280 |
Net loans receivable and loans held for sale | 528,696 | 514,309 |
Accrued interest receivable | 2,074 | 2,076 |
Mortgage servicing rights | 1,738 | 1,696 |
Mortgage rate lock commitments | 6 | 14 |
FHLB stock | 2,556 | 2,556 |
Cash surrender value of life insurance | 13,230 | 12,826 |
Interest rate swap agreements | 194 | 276 |
Liabilities and Equity [Abstract] | ||
Deposits | 623,439 | 578,387 |
FHLB advances | 20,316 | 38,511 |
Other borrowings | 10,764 | 21,251 |
Senior subordinated notes | 3,604 | 3,489 |
Junior subordinated debentures | 7,248 | 7,085 |
Interest rate swap agreements | 519 | 714 |
Accrued interest payable | $331 | $477 |
Fair_Value_Measurements_Detail5
Fair Value Measurements (Details Textual) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Loans receivable carrying value | $538,835 | $523,243 | ||
Impaired loans fair value | 1,956 | 1,720 | ||
Foreclosed assets carrying value | 1,716 | 2,156 | ||
Foreclosed Assets, recorded at fair value | 1,661 | 1,750 | 1,774 | 2,939 |
Mortgage servicing rights, carrying value | 1,738 | 1,696 | 1,233 | 1,205 |
Mortgage servicing rights, net | 1,738 | 1,696 | ||
Mortgage servicing rights impairment allowance | 40 | 21 | ||
Loans transferred to foreclosed assets | 801 | 1,342 | 1,295 | |
Provision for write-down charged to operations | -55 | -406 | -485 | |
Impaired [Member] | ||||
Loans receivable carrying value | $2,517 | $2,119 | ||
Minimum [Member] | ||||
Selling costs percentage | 10.00% | |||
Minimum [Member] | Foreclosed Assets [Member] | ||||
Selling costs percentage | 5.00% | |||
Maximum [Member] | ||||
Selling costs percentage | 30.00% | |||
Maximum [Member] | Foreclosed Assets [Member] | ||||
Selling costs percentage | 15.00% |
Condensed_Parent_Company_Only_2
Condensed Parent Company Only Financial Statements (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||||
Assets | |||||
Cash and due from banks | $18,073 | $13,800 | |||
Other assets | 3,897 | 3,901 | |||
TOTAL ASSETS | 734,367 | 711,541 | |||
Liabilities and Stockholders' Equity | |||||
Other borrowings | 10,324 | 20,441 | |||
Senior subordinated notes | 4,000 | 4,000 | |||
Junior subordinated debentures | 7,732 | 7,732 | |||
Total stockholders' equity | 61,461 | 56,753 | 56,012 | 54,447 | 50,362 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 734,367 | 711,541 | |||
Parent Company [Member] | |||||
Assets | |||||
Cash and due from banks | 3,826 | 3,502 | |||
Investment in Peoples State Bank | 70,161 | 66,801 | |||
Other assets | 747 | 840 | |||
TOTAL ASSETS | 74,734 | 71,143 | |||
Liabilities and Stockholders' Equity | |||||
Accrued dividends payable | 652 | 644 | |||
Other borrowings | 500 | 1,500 | |||
Senior subordinated notes | 4,000 | 4,000 | |||
Junior subordinated debentures | 7,732 | 7,732 | |||
Other liabilities | 389 | 514 | |||
Total stockholders' equity | 61,461 | 56,753 | |||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $74,734 | $71,143 |
Condensed_Parent_Company_Only_3
Condensed Parent Company Only Financial Statements (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Expenses: | |||||||||||||||
Interest expense on senior subordinated notes | $150 | $184 | $578 | ||||||||||||
Recognition of income tax benefit | 2,906 | 1,663 | 2,535 | ||||||||||||
Net income | 1,805 | 1,782 | 1,403 | 1,450 | 1,561 | 13 | 1,561 | 1,609 | 1,685 | 1,226 | 1,918 | 1,180 | 6,440 | 4,744 | 6,009 |
Parent Company [Member] | |||||||||||||||
Income: | |||||||||||||||
Dividends from Peoples State Bank | 3,900 | 4,000 | 7,700 | ||||||||||||
Dividends from other investments | 6 | 6 | 5 | ||||||||||||
Interest | 6 | 5 | 10 | ||||||||||||
Total income | 3,912 | 4,011 | 7,715 | ||||||||||||
Expenses: | |||||||||||||||
Interest on other borrowings | 27 | 54 | 0 | ||||||||||||
Interest expense on senior subordinated notes | 150 | 184 | 578 | ||||||||||||
Transfer agent and shareholder communication | 52 | 47 | 68 | ||||||||||||
Other | 85 | 136 | 348 | ||||||||||||
Total expenses | 654 | 762 | 1,336 | ||||||||||||
Income before income taxes and equity in undistributed net income of Peoples State Bank | 3,258 | 3,249 | 6,379 | ||||||||||||
Recognition of income tax benefit | -251 | -293 | -431 | ||||||||||||
Net income before equity in undistributed net income of Peoples State Bank | 3,509 | 3,542 | 6,810 | ||||||||||||
Equity in undistributed net income of Peoples State Bank | 2,931 | 1,202 | -801 | ||||||||||||
Net income | $6,440 | $4,744 | $6,009 |
Condensed_Parent_Company_Only_4
Condensed Parent Company Only Financial Statements (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||||||||||||||
Net income | $1,805 | $1,782 | $1,403 | $1,450 | $1,561 | $13 | $1,561 | $1,609 | $1,685 | $1,226 | $1,918 | $1,180 | $6,440 | $4,744 | $6,009 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||
Other assets | 80 | 1,590 | 386 | ||||||||||||
Net cash provided by operating activities | 9,035 | 13,034 | 7,556 | ||||||||||||
Cash flows from investing activities: | |||||||||||||||
Net cash provided by (used in) investing activities | 10,016 | -25,570 | 20,283 | ||||||||||||
Cash flows from financing activities: | |||||||||||||||
Repayment of senior subordinated notes | 0 | -3,000 | 0 | ||||||||||||
Proceeds from exercise of stock options | 9 | ||||||||||||||
Dividends declared | -1,316 | -1,289 | -1,247 | ||||||||||||
Net cash used in financing activities | -25,467 | -4,789 | -17,197 | ||||||||||||
Net increase (decrease) in cash and due from banks | -6,416 | -17,325 | 10,642 | ||||||||||||
Cash and cash equivalents at beginning | 31,522 | 17,080 | 48,847 | 38,205 | 31,522 | 48,847 | 38,205 | ||||||||
Cash and cash equivalents at end | 25,106 | 31,522 | 17,080 | 48,847 | 25,106 | 31,522 | 48,847 | ||||||||
Parent Company [Member] | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net income | 6,440 | 4,744 | 6,009 | ||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||
Equity in undistributed net income of Peoples State Bank | -2,931 | -1,202 | 801 | ||||||||||||
Other assets | 41 | 147 | -21 | ||||||||||||
Decrease in other liabilities | -5 | -98 | -2 | ||||||||||||
Increase (decrease) in dividends payable | 8 | 644 | -583 | ||||||||||||
Net cash provided by operating activities | 3,553 | 4,235 | 6,204 | ||||||||||||
Cash flows from investing activities: | |||||||||||||||
Purchase Marathon State Bank common stock | 0 | 0 | -5,482 | ||||||||||||
Investment in Peoples State Bank | 0 | 0 | -5 | ||||||||||||
Net cash provided by (used in) investing activities | 0 | 0 | -5,487 | ||||||||||||
Cash flows from financing activities: | |||||||||||||||
Repayment of senior subordinated notes | 0 | -3,000 | 0 | ||||||||||||
Proceeds from other borrowings | 0 | 2,000 | 0 | ||||||||||||
Repayment of other borrowings | -1,000 | -500 | 0 | ||||||||||||
Proceeds from exercise of stock options | 0 | 0 | 9 | ||||||||||||
Dividends declared | -1,316 | -1,289 | -1,247 | ||||||||||||
Purchase of treasury stock | -913 | -269 | -262 | ||||||||||||
Net cash used in financing activities | -3,229 | -3,058 | -1,500 | ||||||||||||
Net increase (decrease) in cash and due from banks | 324 | 1,177 | -783 | ||||||||||||
Cash and cash equivalents at beginning | 3,502 | 2,325 | 3,108 | 3,502 | 2,325 | 3,108 | |||||||||
Cash and cash equivalents at end | $3,826 | $3,502 | $2,325 | $3,826 | $3,502 | $2,325 |
Summary_of_Quarterly_Results_D
Summary of Quarterly Results (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||||||
Summary Of Quarterly Results | |||||||||||||||||||||||||||
Interest income | $6,762 | $6,833 | $6,618 | $6,405 | $6,728 | $6,772 | $6,692 | $6,624 | $6,937 | $6,933 | $6,679 | $6,695 | |||||||||||||||
Interest expense | 988 | 1,099 | 1,168 | 1,231 | 1,363 | 1,350 | 1,375 | 1,423 | 1,643 | 1,770 | 1,799 | 1,879 | 4,486 | 5,511 | 7,091 | ||||||||||||
Net interest income | 5,774 | 5,734 | 5,450 | 5,174 | 5,365 | 5,422 | 5,317 | 5,201 | 5,294 | 5,163 | 4,880 | 4,816 | 22,132 | 21,305 | 20,153 | ||||||||||||
Provision for loan losses | 140 | 140 | 140 | 140 | 0 | 3,340 | 352 | 323 | 460 | 0 | 165 | 160 | 560 | 4,015 | 785 | ||||||||||||
Noninterest income | 1,524 | 1,481 | 1,369 | 1,320 | 1,274 | 1,411 | 1,523 | 1,415 | 1,559 | 1,444 | 2,323 | 1,242 | 5,694 | 5,623 | 6,568 | ||||||||||||
Net income | $1,805 | $1,782 | $1,403 | $1,450 | $1,561 | $13 | $1,561 | $1,609 | $1,685 | $1,226 | $1,918 | $1,180 | $6,440 | $4,744 | $6,009 | ||||||||||||
Basic earnings per share | $1.10 | [1] | $1.08 | [1] | $0.85 | [1] | $0.87 | [1] | $0.95 | [1] | $0.01 | [1] | $0.95 | [1] | $0.97 | [1] | $1.01 | [1] | $0.74 | [1] | $1.15 | [1] | $0.70 | [1] | $3.90 | $2.87 | $3.61 |
Diluted earnings per share | $1.10 | [1] | $1.08 | [1] | $0.85 | [1] | $0.87 | [1] | $0.95 | [1] | $0.01 | [1] | $0.95 | [1] | $0.97 | [1] | $1.01 | [1] | $0.74 | [1] | $1.15 | [1] | $0.70 | [1] | $3.90 | $2.87 | $3.61 |
[1] | Basic and diluted earnings per share may not foot to the total for the year ended December 31 due to rounding. |