PAGE | ||
Part I | FINANCIAL INFORMATION | |
Item 1. | Financial Statements (unaudited): | |
Consolidated Balance Sheet as of June December 31, | 1 | |
Consolidated Statement of Income for the Three and Six Months Ended June 30, | 2 | |
Consolidated Statement of Comprehensive Income for the Three and Six Months ended June 30, | 3 | |
Consolidated Statement of Cash Flows for the Six Months ended June 30, | 4 | |
Notes to Consolidated Financial Statements | ||
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations | |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | |
Item 4. | Controls and Procedures | |
Part II | OTHER INFORMATION | |
Item 1. | Legal Proceedings | |
Item 1A. | Risk Factors | |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | |
Item 3. | Defaults Upon Senior Securities | |
Item 4. | Mine Safety Disclosures | |
Item 5. | Other Information | |
Item 6. | Exhibits | |
Signatures |
CITIZENS FINANCIAL SERVICES, INC. | ||||||||
CONSOLIDATED BALANCE SHEET | ||||||||
(UNAUDITED) | ||||||||
June 30 | December 31 | |||||||
(in thousands except share data) | 2017 | 2016 | ||||||
ASSETS: | ||||||||
Cash and due from banks: | ||||||||
Noninterest-bearing | $ | 18,298 | $ | 16,854 | ||||
Interest-bearing | 1,064 | 900 | ||||||
Total cash and cash equivalents | 19,362 | 17,754 | ||||||
Interest bearing time deposits with other banks | 8,791 | 6,955 | ||||||
Available-for-sale securities | 275,208 | 314,017 | ||||||
Loans held for sale | 393 | 1,827 | ||||||
Loans (net of allowance for loan losses: | ||||||||
2017, $9,979 and 2016, $8,886) | 878,070 | 790,725 | ||||||
Premises and equipment | 16,771 | 17,030 | ||||||
Accrued interest receivable | 3,697 | 4,089 | ||||||
Goodwill | 21,089 | 21,089 | ||||||
Bank owned life insurance | 26,556 | 26,223 | ||||||
Other intangibles | 1,945 | 2,096 | ||||||
Other investment sale receivable | - | 7,759 | ||||||
Other assets | 12,974 | 13,454 | ||||||
TOTAL ASSETS | $ | 1,264,856 | $ | 1,223,018 | ||||
LIABILITIES: | ||||||||
Deposits: | ||||||||
Noninterest-bearing | $ | 156,374 | $ | 147,425 | ||||
Interest-bearing | 894,835 | 858,078 | ||||||
Total deposits | 1,051,209 | 1,005,503 | ||||||
Borrowed funds | 69,998 | 79,662 | ||||||
Accrued interest payable | 628 | 720 | ||||||
Other liabilities | 15,251 | 13,865 | ||||||
TOTAL LIABILITIES | 1,137,086 | 1,099,750 | ||||||
STOCKHOLDERS' EQUITY: | ||||||||
Preferred Stock | ||||||||
$1.00 par value; authorized 3,000,000 shares at June 30, 2017 and December 31, 2016; | ||||||||
none issued in 2017 or 2016 | - | - | ||||||
Common stock | ||||||||
$1.00 par value; authorized 15,000,000 shares; issued 3,869,939 at June 30, 2017 and | ||||||||
3,704,375 at December 31, 2016 | 3,870 | 3,704 | ||||||
Additional paid-in capital | 51,085 | 42,250 | ||||||
Retained earnings | 86,170 | 91,278 | ||||||
Accumulated other comprehensive loss | (969 | ) | (1,392 | ) | ||||
Treasury stock, at cost: 380,775 shares at June 30, 2017 | ||||||||
and 384,671 shares at December 31, 2016 | (12,386 | ) | (12,572 | ) | ||||
TOTAL STOCKHOLDERS' EQUITY | 127,770 | 123,268 | ||||||
TOTAL LIABILITIES AND | ||||||||
STOCKHOLDERS' EQUITY | $ | 1,264,856 | $ | 1,223,018 | ||||
The accompanying notes are an integral part of these unaudited consolidated financial statements. |
CITIZENS FINANCIAL SERVICES, INC. | ||||||||
CONSOLIDATED BALANCE SHEET | ||||||||
(UNAUDITED) | ||||||||
June 30 | December 31 | |||||||
(in thousands except share data) | 2016 | 2015 | ||||||
ASSETS: | ||||||||
Cash and due from banks: | ||||||||
Noninterest-bearing | $ | 14,908 | $ | 14,088 | ||||
Interest-bearing | 11,914 | 10,296 | ||||||
Total cash and cash equivalents | 26,822 | 24,384 | ||||||
Interest bearing time deposits with other banks | 6,954 | 7,696 | ||||||
Available-for-sale securities | 360,944 | 359,737 | ||||||
Loans held for sale | 1,304 | 603 | ||||||
Loans (net of allowance for loan losses: | ||||||||
2016, $7,359 and 2015, $7,106) | 701,756 | 687,925 | ||||||
Premises and equipment | 17,239 | 17,263 | ||||||
Accrued interest receivable | 4,176 | 4,211 | ||||||
Goodwill | 21,089 | 21,089 | ||||||
Bank owned life insurance | 25,877 | 25,535 | ||||||
Other intangibles | 2,183 | 2,437 | ||||||
Other assets | 11,174 | 12,104 | ||||||
TOTAL ASSETS | $ | 1,179,518 | $ | 1,162,984 | ||||
LIABILITIES: | ||||||||
Deposits: | ||||||||
Noninterest-bearing | $ | 142,327 | $ | 150,960 | ||||
Interest-bearing | 861,155 | 837,071 | ||||||
Total deposits | 1,003,482 | 988,031 | ||||||
Borrowed funds | 38,786 | 41,631 | ||||||
Accrued interest payable | 644 | 734 | ||||||
Other liabilities | 12,150 | 12,828 | ||||||
TOTAL LIABILITIES | 1,055,062 | 1,043,224 | ||||||
STOCKHOLDERS' EQUITY: | ||||||||
Preferred Stock | ||||||||
$1.00 par value; authorized 3,000,000 shares June 30, 2016 and December 31, 2015; | ||||||||
none issued in 2016 or 2015 | - | - | ||||||
Common stock | ||||||||
$1.00 par value; authorized 15,000,000 shares; issued 3,704,375 at June 30, 2016 and | ||||||||
3,671,751 at December 31, 2015 | 3,704 | 3,672 | ||||||
Additional paid-in capital | 42,241 | 40,715 | ||||||
Retained earnings | 87,753 | 85,790 | ||||||
Accumulated other comprehensive income (loss) | 2,042 | (236 | ) | |||||
Treasury stock, at cost: 358,921 shares at June 30, 2016 | ||||||||
and 335,876 shares at December 31, 2015 | (11,284 | ) | (10,181 | ) | ||||
TOTAL STOCKHOLDERS' EQUITY | 124,456 | 119,760 | ||||||
TOTAL LIABILITIES AND | ||||||||
STOCKHOLDERS' EQUITY | $ | 1,179,518 | $ | 1,162,984 | ||||
The accompanying notes are an integral part of these unaudited consolidated financial statements. |
CITIZENS FINANCIAL SERVICES, INC. | ||||||||||||||||
CONSOLIDATED STATEMENT OF INCOME | ||||||||||||||||
(UNAUDITED) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
(in thousands, except share and per share data) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
INTEREST INCOME: | ||||||||||||||||
Interest and fees on loans | $ | 8,587 | $ | 7,129 | $ | 17,183 | $ | 14,168 | ||||||||
Interest-bearing deposits with banks | 64 | 39 | 135 | 70 | ||||||||||||
Investment securities: | ||||||||||||||||
` Taxable | 959 | 765 | 1,903 | 1,519 | ||||||||||||
Nontaxable | 755 | 801 | 1,526 | 1,649 | ||||||||||||
Dividends | 61 | 34 | 141 | 133 | ||||||||||||
TOTAL INTEREST INCOME | 10,426 | 8,768 | 20,888 | 17,539 | ||||||||||||
INTEREST EXPENSE: | ||||||||||||||||
Deposits | 1,072 | 1,035 | 2,146 | 2,044 | ||||||||||||
Borrowed funds | 183 | 172 | 366 | 347 | ||||||||||||
TOTAL INTEREST EXPENSE | 1,255 | 1,207 | 2,512 | 2,391 | ||||||||||||
NET INTEREST INCOME | 9,171 | 7,561 | 18,376 | 15,148 | ||||||||||||
Provision for loan losses | 135 | 120 | 270 | 240 | ||||||||||||
NET INTEREST INCOME AFTER | ||||||||||||||||
PROVISION FOR LOAN LOSSES | 9,036 | 7,441 | 18,106 | 14,908 | ||||||||||||
NON-INTEREST INCOME: | ||||||||||||||||
Service charges | 1,128 | 1,028 | 2,230 | 2,004 | ||||||||||||
Trust | 182 | 180 | 378 | 374 | ||||||||||||
Brokerage and insurance | 158 | 255 | 367 | 382 | ||||||||||||
Gains on loans sold | 70 | 60 | 116 | 98 | ||||||||||||
Investment securities gains, net | 128 | 175 | 155 | 301 | ||||||||||||
Earnings on bank owned life insurance | 172 | 154 | 342 | 306 | ||||||||||||
Other | 145 | 103 | 311 | 218 | ||||||||||||
TOTAL NON-INTEREST INCOME | 1,983 | 1,955 | 3,899 | 3,683 | ||||||||||||
NON-INTEREST EXPENSES: | ||||||||||||||||
Salaries and employee benefits | 3,900 | 2,993 | 7,782 | 6,049 | ||||||||||||
Occupancy | 455 | 348 | 900 | 717 | ||||||||||||
Furniture and equipment | 171 | 87 | 328 | 215 | ||||||||||||
Professional fees | 266 | 180 | 553 | 412 | ||||||||||||
FDIC insurance | 160 | 116 | 317 | 232 | ||||||||||||
Pennsylvania shares tax | 240 | 200 | 390 | 401 | ||||||||||||
Amortization of other intangibles | 82 | - | 164 | - | ||||||||||||
ORE expenses | 212 | 357 | 305 | 358 | ||||||||||||
Other | 1,815 | 1,147 | 3,474 | 2,379 | ||||||||||||
TOTAL NON-INTEREST EXPENSES | 7,301 | 5,428 | 14,213 | 10,763 | ||||||||||||
Income before provision for income taxes | 3,718 | 3,968 | 7,792 | 7,828 | ||||||||||||
Provision for income taxes | 687 | 779 | 1,478 | 1,519 | ||||||||||||
NET INCOME | $ | 3,031 | $ | 3,189 | $ | 6,314 | $ | 6,309 | ||||||||
PER COMMON SHARE DATA: | ||||||||||||||||
Net Income - Basic | $ | 0.91 | $ | 1.04 | $ | 1.88 | $ | 2.06 | ||||||||
Net Income - Diluted | $ | 0.91 | $ | 1.04 | $ | 1.88 | $ | 2.06 | ||||||||
Cash Dividends Paid | $ | 0.419 | $ | 0.402 | $ | 0.829 | $ | 0.802 | ||||||||
Number of shares used in computation - basic | 3,343,254 | 3,052,285 | 3,349,913 | 3,055,569 | ||||||||||||
Number of shares used in computation - diluted | 3,343,663 | 3,053,349 | 3,350,118 | 3,056,103 | ||||||||||||
The accompanying notes are an integral part of these unaudited consolidated financial statements. |
CITIZENS FINANCIAL SERVICES, INC. | ||||||||||||||||
CONSOLIDATED STATEMENT OF INCOME | ||||||||||||||||
(UNAUDITED) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
(in thousands, except share and per share data) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
INTEREST INCOME: | ||||||||||||||||
Interest and fees on loans | $ | 10,304 | $ | 8,587 | $ | 20,021 | $ | 17,183 | ||||||||
Interest-bearing deposits with banks | 45 | 64 | 80 | 135 | ||||||||||||
Investment securities: | ||||||||||||||||
Taxable | 775 | 959 | 1,579 | 1,903 | ||||||||||||
Nontaxable | 601 | 755 | 1,269 | 1,526 | ||||||||||||
Dividends | 53 | 61 | 129 | 141 | ||||||||||||
TOTAL INTEREST INCOME | 11,778 | 10,426 | 23,078 | 20,888 | ||||||||||||
INTEREST EXPENSE: | ||||||||||||||||
Deposits | 1,143 | 1,072 | 2,188 | 2,146 | ||||||||||||
Borrowed funds | 231 | 183 | 489 | 366 | ||||||||||||
TOTAL INTEREST EXPENSE | 1,374 | 1,255 | 2,677 | 2,512 | ||||||||||||
NET INTEREST INCOME | 10,404 | 9,171 | 20,401 | 18,376 | ||||||||||||
Provision for loan losses | 625 | 135 | 1,240 | 270 | ||||||||||||
NET INTEREST INCOME AFTER | ||||||||||||||||
PROVISION FOR LOAN LOSSES | 9,779 | 9,036 | 19,161 | 18,106 | ||||||||||||
NON-INTEREST INCOME: | ||||||||||||||||
Service charges | 1,120 | 1,128 | 2,178 | 2,230 | ||||||||||||
Trust | 188 | 182 | 409 | 378 | ||||||||||||
Brokerage and insurance | 114 | 158 | 305 | 367 | ||||||||||||
Gains on loans sold | 148 | 70 | 249 | 116 | ||||||||||||
Investment securities gains, net | 23 | 128 | 195 | 155 | ||||||||||||
Earnings on bank owned life insurance | 167 | 172 | 333 | 342 | ||||||||||||
Other | 128 | 145 | 254 | 311 | ||||||||||||
TOTAL NON-INTEREST INCOME | 1,888 | 1,983 | 3,923 | 3,899 | ||||||||||||
NON-INTEREST EXPENSES: | ||||||||||||||||
Salaries and employee benefits | 4,324 | 3,900 | 8,643 | 7,782 | ||||||||||||
Occupancy | 477 | 455 | 1,004 | 900 | ||||||||||||
Furniture and equipment | 146 | 171 | 285 | 328 | ||||||||||||
Professional fees | 258 | 266 | 568 | 553 | ||||||||||||
FDIC insurance | 95 | 160 | 200 | 317 | ||||||||||||
Pennsylvania shares tax | 243 | 240 | 524 | 390 | ||||||||||||
Amortization of intangibles | 73 | 82 | 149 | 164 | ||||||||||||
ORE expenses | 82 | 212 | 172 | 305 | ||||||||||||
Other | 1,468 | 1,815 | 2,812 | 3,474 | ||||||||||||
TOTAL NON-INTEREST EXPENSES | 7,166 | 7,301 | 14,357 | 14,213 | ||||||||||||
Income before provision for income taxes | 4,501 | 3,718 | 8,727 | 7,792 | ||||||||||||
Provision for income taxes | 1,033 | 687 | 1,956 | 1,478 | ||||||||||||
NET INCOME | $ | 3,468 | $ | 3,031 | $ | 6,771 | $ | 6,314 | ||||||||
PER COMMON SHARE DATA: | ||||||||||||||||
Net Income - Basic | $ | 1.00 | $ | 0.86 | $ | 1.95 | $ | 1.80 | ||||||||
Net Income - Diluted | $ | 1.00 | $ | 0.86 | $ | 1.95 | $ | 1.80 | ||||||||
Cash Dividends Paid | $ | 0.405 | $ | 0.392 | $ | 0.810 | $ | 0.783 | ||||||||
Number of shares used in computation - basic | 3,480,122 | 3,508,818 | 3,479,653 | 3,515,477 | ||||||||||||
Number of shares used in computation - diluted | 3,481,310 | 3,509,227 | 3,480,263 | 3,515,682 | ||||||||||||
The accompanying notes are an integral part of these unaudited consolidated financial statements. |
CITIZENS FINANCIAL SERVICES, INC. | ||||||||||||||||||||||||||||||||
CONSOLIDATED STATEMENT OF | ||||||||||||||||||||||||||||||||
COMPREHENSIVE INCOME | ` | |||||||||||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||||||||
(in thousands) | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||||||||||||
Net income | $ | 3,031 | $ | 3,189 | $ | 6,314 | $ | 6,309 | ||||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Unrealized gains on available for sale securities | 1,794 | (2,049 | ) | 3,489 | (704 | ) | ||||||||||||||||||||||||||
Income tax effect | (610 | ) | 698 | (1,188 | ) | 240 | ||||||||||||||||||||||||||
Change in unrecognized pension cost | 60 | 54 | 121 | 102 | ||||||||||||||||||||||||||||
Income tax effect | (21 | ) | (19 | ) | (42 | ) | (35 | ) | ||||||||||||||||||||||||
Less: Reclassification adjustment for investment | ||||||||||||||||||||||||||||||||
security gains included in net income | (128 | ) | (175 | ) | (155 | ) | (301 | ) | ||||||||||||||||||||||||
Income tax effect | 44 | 59 | 53 | 102 | ||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | 1,139 | (1,432 | ) | 2,278 | (596 | ) | ||||||||||||||||||||||||||
Comprehensive income | $ | 4,170 | $ | 1,757 | $ | 8,592 | $ | 5,713 | ||||||||||||||||||||||||
The accompanying notes are an integral part of these unaudited consolidated financial statements. |
CITIZENS FINANCIAL SERVICES, INC. | ||||||||||||||||||||||||||||||||
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | ||||||||||||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||||||||
(in thousands) | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||||||||||
Net income | $ | 3,468 | $ | 3,031 | $ | 6,771 | $ | 6,314 | ||||||||||||||||||||||||
Other comprehensive income: | ||||||||||||||||||||||||||||||||
Unrealized gains on available for sale securities | 654 | 1,794 | 724 | 3,489 | ||||||||||||||||||||||||||||
Income tax effect | (222 | ) | (610 | ) | (246 | ) | (1,188 | ) | ||||||||||||||||||||||||
Change in unrecognized pension cost | 52 | 60 | 112 | 121 | ||||||||||||||||||||||||||||
Income tax effect | (17 | ) | (21 | ) | (38 | ) | (42 | ) | ||||||||||||||||||||||||
Less: Reclassification adjustment for investment | ||||||||||||||||||||||||||||||||
security gains included in net income | (23 | ) | (128 | ) | (195 | ) | (155 | ) | ||||||||||||||||||||||||
Income tax effect | 8 | 44 | 66 | 53 | ||||||||||||||||||||||||||||
Other comprehensive income, net of tax | 452 | 1,139 | 423 | 2,278 | ||||||||||||||||||||||||||||
Comprehensive income | $ | 3,920 | $ | 4,170 | $ | 7,194 | $ | 8,592 | ||||||||||||||||||||||||
The accompanying notes are an integral part of these unaudited consolidated financial statements. |
CITIZENS FINANCIAL SERVICES, INC. | ||||||||
CONSOLIDATED STATEMENT OF CASH FLOWS | ||||||||
(UNAUDITED) | Six Months Ended | |||||||
June 30, | ||||||||
(in thousands) | 2016 | 2015 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 6,314 | $ | 6,309 | ||||
Adjustments to reconcile net income to net | ||||||||
cash provided by operating activities: | ||||||||
Provision for loan losses | 270 | 240 | ||||||
Provision for off-balance sheet items | 30 | - | ||||||
Depreciation and amortization | 175 | 236 | ||||||
Amortization and accretion of investment securities | 1,148 | 992 | ||||||
Deferred income taxes | 81 | 112 | ||||||
Investment securities gains, net | (155 | ) | (301 | ) | ||||
Earnings on bank owned life insurance | (342 | ) | (306 | ) | ||||
Originations of loans held for sale | (8,580 | ) | (7,479 | ) | ||||
Proceeds from sales of loans held for sale | 7,995 | 6,922 | ||||||
Realized gains on loans sold | (116 | ) | (98 | ) | ||||
Increase in accrued interest receivable | 35 | 60 | ||||||
Decrease in accrued interest payable | (90 | ) | (81 | ) | ||||
Other, net | (519 | ) | (1,158 | ) | ||||
Net cash provided by operating activities | 6,246 | 5,448 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Available-for-sale securities: | ||||||||
Proceeds from sales | 12,077 | 18,393 | ||||||
Proceeds from maturity and principal repayments | 21,561 | 31,163 | ||||||
Purchase of securities | (32,507 | ) | (49,579 | ) | ||||
Proceeds from matured interest bearing time deposits with other banks | 744 | - | ||||||
Proceeds from redemption of regulatory stock | 184 | 1,513 | ||||||
Purchase of regulatory stock | (132 | ) | (1,342 | ) | ||||
Net increase in loans | (14,135 | ) | (17,792 | ) | ||||
Purchase of premises and equipment | (398 | ) | (514 | ) | ||||
Proceeds from sale of foreclosed assets held for sale | 374 | 100 | ||||||
Net cash used in investing activities | (12,232 | ) | (18,058 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Net increase in deposits | 15,451 | 17,954 | ||||||
Proceeds from long-term borrowings | 539 | 5,286 | ||||||
Repayments of long-term borrowings | (534 | ) | (551 | ) | ||||
Net increase in short-term borrowed funds | (2,850 | ) | (7,340 | ) | ||||
Purchase of treasury and restricted stock | (1,482 | ) | (997 | ) | ||||
Dividends paid | (2,700 | ) | (2,253 | ) | ||||
Net cash provided by financing activities | 8,424 | 12,099 | ||||||
Net (decrease) increase in cash and cash equivalents | 2,438 | (511 | ) | |||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 24,384 | 11,423 | ||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 26,822 | $ | 10,912 | ||||
Supplemental Disclosures of Cash Flow Information: | ||||||||
Interest paid | $ | 2,602 | $ | 2,472 | ||||
Income taxes paid | $ | 1,400 | $ | 2,025 | ||||
Loans transferred to foreclosed property | $ | 519 | $ | 241 | ||||
Investments purchased and not settled | $ | - | $ | 319 | ||||
The accompanying notes are an integral part of these unaudited consolidated financial statements. |
CITIZENS FINANCIAL SERVICES, INC. | ||||||||
CONSOLIDATED STATEMENT OF CASH FLOWS | ||||||||
(UNAUDITED) | Six Months Ended | |||||||
June 30, | ||||||||
(in thousands) | 2017 | 2016 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 6,771 | $ | 6,314 | ||||
Adjustments to reconcile net income to net | ||||||||
cash provided by operating activities: | ||||||||
Provision for loan losses | 1,240 | 270 | ||||||
Provision for off-balance sheet items | - | 30 | ||||||
Depreciation and amortization | 199 | 175 | ||||||
Amortization and accretion of investment securities | 735 | 1,148 | ||||||
Deferred income taxes | (105 | ) | 81 | |||||
Investment securities and interest bearing time deposit gains, net | (195 | ) | (155 | ) | ||||
Earnings on bank owned life insurance | (333 | ) | (342 | ) | ||||
Originations of loans held for sale | (10,247 | ) | (8,580 | ) | ||||
Proceeds from sales of loans held for sale | 11,840 | 7,995 | ||||||
Realized gains on loans sold | (249 | ) | (116 | ) | ||||
Increase in accrued interest receivable | 392 | 35 | ||||||
Decrease in accrued interest payable | (92 | ) | (90 | ) | ||||
Other, net | (166 | ) | (519 | ) | ||||
Net cash provided by operating activities | 9,790 | 6,246 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Available-for-sale securities: | ||||||||
Proceeds from sales | 25,407 | 12,077 | ||||||
Proceeds from maturity and principal repayments | 36,510 | 21,561 | ||||||
Purchase of securities | (13,829 | ) | (32,507 | ) | ||||
Purchase of interest bearing time deposits with other banks | (4,069 | ) | - | |||||
Proceeds from matured interest bearing time deposits with other banks | 496 | 744 | ||||||
Proceeds from sale of interest bearing time deposits with other banks | 1,745 | - | ||||||
Proceeds from redemption of regulatory stock | 4,303 | 184 | ||||||
Purchase of regulatory stock | (3,487 | ) | (132 | ) | ||||
Net increase in loans | (88,468 | ) | (14,135 | ) | ||||
Purchase of premises and equipment | (131 | ) | (398 | ) | ||||
Proceeds from sale of foreclosed assets held for sale | 237 | 374 | ||||||
Net cash used in investing activities | (41,286 | ) | (12,232 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Net increase in deposits | 45,706 | 15,451 | ||||||
Proceeds from long-term borrowings | 5 | 539 | ||||||
Repayments of long-term borrowings | - | (534 | ) | |||||
Net decrease in short-term borrowed funds | (9,669 | ) | (2,850 | ) | ||||
Purchase of treasury and restricted stock | (509 | ) | (1,482 | ) | ||||
Dividends paid | (2,429 | ) | (2,700 | ) | ||||
Net cash provided by financing activities | 33,104 | 8,424 | ||||||
Net increase in cash and cash equivalents | 1,608 | 2,438 | ||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 17,754 | 24,384 | ||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 19,362 | $ | 26,822 | ||||
Supplemental Disclosures of Cash Flow Information: | ||||||||
Interest paid | $ | 2,769 | $ | 2,602 | ||||
Income taxes paid | $ | 2,075 | $ | 1,400 | ||||
Loans transferred to foreclosed property | $ | 335 | $ | 519 | ||||
Investments purchased and not settled | $ | 1,541 | $ | - | ||||
The accompanying notes are an integral part of these unaudited consolidated financial statements. |
Three months ended | Six months ended | Three months ended | Six months ended | |||||||||||||||||||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||||||
Net income applicable to common stock | $ | 3,031,000 | $ | 3,189,000 | $ | 6,314,000 | $ | 6,309,000 | $ | 3,468,000 | $ | 3,031,000 | $ | 6,771,000 | $ | 6,314,000 | ||||||||||||||||
Basic earnings per share computation | ||||||||||||||||||||||||||||||||
Weighted average common shares outstanding | 3,343,254 | 3,052,285 | 3,349,913 | 3,055,569 | 3,480,122 | 3,508,818 | 3,479,653 | 3,515,477 | ||||||||||||||||||||||||
Earnings per share - basic | $ | 0.91 | $ | 1.04 | $ | 1.88 | $ | 2.06 | $ | 1.00 | $ | 0.86 | $ | 1.95 | $ | 1.80 | ||||||||||||||||
Diluted earnings per share computation | ||||||||||||||||||||||||||||||||
Weighted average common shares outstanding for basic earnings per share | 3,343,254 | 3,052,285 | 3,349,913 | 3,055,569 | 3,480,122 | 3,508,818 | 3,479,653 | 3,515,477 | ||||||||||||||||||||||||
Add: Dilutive effects of restricted stock | 409 | 1,064 | 205 | 534 | 1,188 | 409 | 610 | 205 | ||||||||||||||||||||||||
Weighted average common shares outstanding for dilutive earnings per share | 3,343,663 | 3,053,349 | 3,350,118 | 3,056,103 | 3,481,310 | 3,509,227 | 3,480,263 | 3,515,682 | ||||||||||||||||||||||||
Earnings per share - diluted | $ | 0.91 | $ | 1.04 | $ | 1.88 | $ | 2.06 | $ | 1.00 | $ | 0.86 | $ | 1.95 | $ | 1.80 |
Gross | Gross | Gross | Gross | |||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||||||||||
June 30, 2016 | Cost | Gains | Losses | Value | ||||||||||||||||||||||||||||
June 30, 2017 | Cost | Gains | Losses | Value | ||||||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||||||||
U.S. agency securities | $ | 203,461 | $ | 2,359 | $ | (1 | ) | $ | 205,819 | $ | 142,581 | $ | 315 | $ | (146 | ) | $ | 142,750 | ||||||||||||||
U.S. treasury securities | 5,046 | 7 | - | 5,053 | ||||||||||||||||||||||||||||
Obligations of state and | ||||||||||||||||||||||||||||||||
political subdivisions | 101,144 | 3,338 | (10 | ) | 104,472 | 84,731 | 1,578 | (93 | ) | 86,216 | ||||||||||||||||||||||
Corporate obligations | 11,430 | 50 | - | 11,480 | 3,000 | 111 | - | 3,111 | ||||||||||||||||||||||||
Mortgage-backed securities in | ||||||||||||||||||||||||||||||||
government sponsored entities | 31,190 | 456 | (40 | ) | 31,606 | 41,489 | 147 | (176 | ) | 41,460 | ||||||||||||||||||||||
Equity securities in financial | ||||||||||||||||||||||||||||||||
Institutions | 2,001 | 518 | (5 | ) | 2,514 | |||||||||||||||||||||||||||
Equity securities in financial institutions | 900 | 771 | - | 1,671 | ||||||||||||||||||||||||||||
Total available-for-sale securities | $ | 354,272 | $ | 6,728 | $ | (56 | ) | $ | 360,944 | $ | 272,701 | $ | 2,922 | $ | (415 | ) | $ | 275,208 | ||||||||||||||
December 31, 2015 | ||||||||||||||||||||||||||||||||
December 31, 2016 | ||||||||||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||||||||
U.S. agency securities | $ | 199,749 | $ | 369 | $ | (527 | ) | $ | 199,591 | $ | 170,276 | $ | 407 | $ | (269 | ) | $ | 170,414 | ||||||||||||||
U.S. treasury securities | 10,103 | - | (21 | ) | 10,082 | 2,999 | 1 | - | 3,000 | |||||||||||||||||||||||
Obligations of state and | ||||||||||||||||||||||||||||||||
political subdivisions | 99,856 | 3,080 | (73 | ) | 102,863 | 95,956 | 1,463 | (493 | ) | 96,926 | ||||||||||||||||||||||
Corporate obligations | 14,583 | 68 | (86 | ) | 14,565 | 3,000 | 50 | - | 3,050 | |||||||||||||||||||||||
Mortgage-backed securities in | ||||||||||||||||||||||||||||||||
government sponsored entities | 30,107 | 186 | (89 | ) | 30,204 | 37,987 | 88 | (347 | ) | 37,728 | ||||||||||||||||||||||
Equity securities in financial institutions | 2,001 | 436 | (5 | ) | 2,432 | 1,821 | 1,078 | - | 2,899 | |||||||||||||||||||||||
Total available-for-sale securities | $ | 356,399 | $ | 4,139 | $ | (801 | ) | $ | 359,737 | $ | 312,039 | $ | 3,087 | $ | (1,109 | ) | $ | 314,017 |
June 30, 2016 | Less than Twelve Months | Twelve Months or Greater | Total | |||||||||||||||||||||||||||||||||||||||||||||
Gross | Gross | Gross | Less than Twelve Months | Twelve Months or Greater | Total | |||||||||||||||||||||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | Gross | Gross | Gross | ||||||||||||||||||||||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||||||||||||||||
June 30, 2017 | Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||||||||||||||||||||||||
U.S. agency securities | $ | 8,509 | $ | (1 | ) | $ | - | $ | - | $ | 8,509 | $ | (1 | ) | $ | 53,010 | $ | (142 | ) | $ | 995 | $ | (4 | ) | $ | 54,005 | $ | (146 | ) | |||||||||||||||||||
Obligations of state and | ||||||||||||||||||||||||||||||||||||||||||||||||
political subdivisions | 4,342 | (9 | ) | 503 | (1 | ) | 4,845 | (10 | ) | 7,811 | (40 | ) | 5,171 | (53 | ) | 12,982 | (93 | ) | ||||||||||||||||||||||||||||||
Mortgage-backed securities in | ||||||||||||||||||||||||||||||||||||||||||||||||
government sponsored entities | 3,716 | (22 | ) | 1,987 | (18 | ) | 5,703 | (40 | ) | 18,873 | (149 | ) | 1,377 | (27 | ) | 20,250 | (176 | ) | ||||||||||||||||||||||||||||||
Equity securities in financial institutions | 111 | (5 | ) | - | - | 111 | (5 | ) | ||||||||||||||||||||||||||||||||||||||||
Total securities | $ | 16,678 | $ | (37 | ) | $ | 2,490 | $ | (19 | ) | $ | 19,168 | $ | (56 | ) | $ | 79,694 | $ | (331 | ) | $ | 7,543 | $ | (84 | ) | $ | 87,237 | $ | (415 | ) | ||||||||||||||||||
December 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. agency securities | $ | 123,591 | $ | (527 | ) | $ | - | $ | - | $ | 123,591 | $ | (527 | ) | $ | 50,947 | $ | (269 | ) | $ | - | $ | - | $ | 50,947 | $ | (269 | ) | ||||||||||||||||||||
U.S. treasury securities | 10,082 | (21 | ) | - | - | 10,082 | (21 | ) | ||||||||||||||||||||||||||||||||||||||||
Obligations of states and | ||||||||||||||||||||||||||||||||||||||||||||||||
political subdivisions | 7,023 | (57 | ) | 2,914 | (16 | ) | 9,937 | (73 | ) | 28,398 | (472 | ) | 767 | (21 | ) | 29,165 | (493 | ) | ||||||||||||||||||||||||||||||
Corporate obligations | 5,822 | (61 | ) | 2,138 | (25 | ) | 7,960 | (86 | ) | |||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities in | ||||||||||||||||||||||||||||||||||||||||||||||||
government sponsored entities | 9,830 | (77 | ) | 227 | (12 | ) | 10,057 | (89 | ) | 26,717 | (330 | ) | 753 | (17 | ) | 27,470 | (347 | ) | ||||||||||||||||||||||||||||||
Equity securities in financial institutions | 106 | (5 | ) | - | - | 106 | (5 | ) | ||||||||||||||||||||||||||||||||||||||||
Total securities | $ | 156,454 | $ | (748 | ) | $ | 5,279 | $ | (53 | ) | $ | 161,733 | $ | (801 | ) | $ | 106,062 | $ | (1,071 | ) | $ | 1,520 | $ | (38 | ) | $ | 107,582 | $ | (1,109 | ) |
Three Months Ended | Six Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||||||
Gross gains | $ | 128 | $ | 175 | $ | 155 | $ | 312 | $ | 30 | $ | 128 | $ | 202 | $ | 155 | ||||||||||||||||
Gross losses | - | - | - | (11 | ) | (7 | ) | - | (7 | ) | - | |||||||||||||||||||||
Net gains | $ | 128 | $ | 175 | $ | 155 | $ | 301 | $ | 23 | $ | 128 | $ | 195 | $ | 155 |
Amortized | Amortized | |||||||||||||||
Cost | Fair Value | Cost | Fair Value | |||||||||||||
Available-for-sale debt securities: | ||||||||||||||||
Due in one year or less | $ | 41,555 | $ | 41,758 | $ | 46,659 | $ | 46,812 | ||||||||
Due after one year through five years | 190,450 | 193,673 | 130,797 | 131,827 | ||||||||||||
Due after five years through ten years | 41,023 | 42,092 | 37,314 | 37,598 | ||||||||||||
Due after ten years | 79,243 | 80,907 | 57,031 | 57,300 | ||||||||||||
Total | $ | 352,271 | $ | 358,430 | $ | 271,801 | $ | 273,537 |
June 30, 2016 | Total Loans | Individually evaluated for impairment | Loans acquired with deteriorated credit quality | Collectively evaluated for impairment | ||||||||||||||||||||||||||||
June 30, 2017 | Total Loans | Individually evaluated for impairment | Loans acquired with deteriorated credit quality | Collectively evaluated for impairment | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||||
Residential | $ | 203,980 | $ | 518 | $ | 34 | $ | 203,428 | $ | 205,725 | $ | 1,254 | $ | 35 | $ | 204,436 | ||||||||||||||||
Commercial and agricultural | 309,287 | 6,404 | 2,753 | 300,130 | ||||||||||||||||||||||||||||
Commercial | 271,342 | 13,680 | 1,989 | 255,673 | ||||||||||||||||||||||||||||
Agricultural | 188,547 | 3,728 | 734 | 184,085 | ||||||||||||||||||||||||||||
Construction | 10,481 | - | - | 10,481 | 25,569 | - | - | 25,569 | ||||||||||||||||||||||||
Consumer | 11,439 | - | 6 | 11,433 | 10,603 | 4 | - | 10,599 | ||||||||||||||||||||||||
Other commercial and agricultural loans | 74,089 | 5,682 | 876 | 67,531 | ||||||||||||||||||||||||||||
Other commercial loans | 56,952 | 4,902 | 868 | 51,182 | ||||||||||||||||||||||||||||
Other agricultural loans | 32,974 | 1,466 | - | 31,508 | ||||||||||||||||||||||||||||
State and political subdivision loans | 99,839 | - | - | 99,839 | 96,337 | - | - | 96,337 | ||||||||||||||||||||||||
Total | 709,115 | 12,604 | 3,669 | 692,842 | 888,049 | 25,034 | 3,626 | 859,389 | ||||||||||||||||||||||||
Allowance for loan losses | 7,359 | 587 | - | 6,772 | 9,979 | 457 | - | 9,522 | ||||||||||||||||||||||||
Net loans | $ | 701,756 | $ | 12,017 | $ | 3,669 | $ | 686,070 | $ | 878,070 | $ | 24,577 | $ | 3,626 | $ | 849,867 | ||||||||||||||||
December 31, 2016 | ||||||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||||
Residential | $ | 207,423 | $ | 957 | $ | 35 | $ | 206,431 | ||||||||||||||||||||||||
Commercial | 252,577 | 5,742 | 1,969 | 244,866 | ||||||||||||||||||||||||||||
Agricultural | 123,624 | 3,346 | 738 | 119,540 | ||||||||||||||||||||||||||||
Construction | 25,441 | - | - | 25,441 | ||||||||||||||||||||||||||||
Consumer | 11,005 | - | 4 | 11,001 | ||||||||||||||||||||||||||||
Other commercial loans | 58,639 | 5,994 | 621 | 52,024 | ||||||||||||||||||||||||||||
Other agricultural loans | 23,388 | 1,654 | - | 21,734 | ||||||||||||||||||||||||||||
State and political subdivision loans | 97,514 | - | - | 97,514 | ||||||||||||||||||||||||||||
Total | 799,611 | 17,693 | 3,367 | 778,551 | ||||||||||||||||||||||||||||
Allowance for loan losses | 8,886 | 487 | - | 8,399 | ||||||||||||||||||||||||||||
Net loans | $ | 790,725 | $ | 17,206 | $ | 3,367 | $ | 770,152 |
December 31, 2015 | Total Loans | Individually evaluated for impairment | Loans acquired with deteriorated credit quality | Collectively evaluated for impairment | ||||||||||||
Real estate loans: | ||||||||||||||||
Residential | $ | 203,407 | $ | 304 | $ | 35 | $ | 203,068 | ||||||||
Commercial and agricultural | 295,364 | 6,235 | 2,908 | 286,221 | ||||||||||||
Construction | 15,011 | - | - | 15,011 | ||||||||||||
Consumer | 11,543 | - | 9 | 11,534 | ||||||||||||
Other commercial and agricultural loans | 71,206 | 5,745 | 866 | 64,595 | ||||||||||||
State and political subdivision loans | 98,500 | - | - | 98,500 | ||||||||||||
Total | 695,031 | 12,284 | 3,818 | 678,929 | ||||||||||||
Allowance for loan losses | 7,106 | 355 | - | 6,751 | ||||||||||||
Net loans | $ | 687,925 | $ | 11,929 | $ | 3,818 | $ | 672,178 |
Three months ended | Six months ended | |||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||
Three Months Ended | Six Months Ended | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||
Balance at beginning of period | $ | 551 | $ | 637 | $ | 275 | $ | 551 | $ | 389 | $ | 637 | ||||||||||||
Accretion | (87 | ) | (173 | ) | (108 | ) | (87 | ) | (222 | ) | (173 | ) | ||||||||||||
Balance at end of period | $ | 464 | $ | 464 | $ | 167 | $ | 464 | $ | 167 | $ | 464 |
June 30, 2016 | December 31, 2015 | June 30, 2017 | December 31, 2016 | |||||||||||||
Outstanding balance | $ | 6,616 | $ | 6,950 | $ | 6,660 | $ | 6,487 | ||||||||
Carrying amount | 3,669 | 3,818 | 3,626 | 3,367 |
Recorded | Recorded | Recorded | Recorded | |||||||||||||||||||||||||||||||||||||
Unpaid | Investment | Investment | Total | Unpaid | Investment | Investment | Total | |||||||||||||||||||||||||||||||||
Principal | With No | With | Recorded | Related | Principal | With No | With | Recorded | Related | |||||||||||||||||||||||||||||||
June 30, 2016 | Balance | Allowance | Allowance | Investment | Allowance | |||||||||||||||||||||||||||||||||||
June 30, 2017 | Balance | Allowance | Allowance | Investment | Allowance | |||||||||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||||||||||||
Mortgages | $ | 502 | $ | 114 | $ | 345 | $ | 459 | $ | 35 | $ | 1,246 | $ | 281 | $ | 903 | $ | 1,184 | $ | 67 | ||||||||||||||||||||
Home Equity | 59 | - | 59 | 59 | 11 | 70 | 16 | 54 | 70 | 10 | ||||||||||||||||||||||||||||||
Commercial | 8,888 | 5,944 | 295 | 6,239 | 126 | 16,037 | 13,093 | 587 | 13,680 | 58 | ||||||||||||||||||||||||||||||
Agricultural | 165 | 165 | - | 165 | - | 3,744 | 2,405 | 1,323 | 3,728 | 95 | ||||||||||||||||||||||||||||||
Construction | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Consumer | - | - | - | - | - | 4 | 2 | 2 | 4 | 2 | ||||||||||||||||||||||||||||||
Other commercial loans | 5,717 | 4,547 | 1,031 | 5,578 | 415 | 5,423 | 4,431 | 471 | 4,902 | 207 | ||||||||||||||||||||||||||||||
Other agricultural loans | 104 | 104 | - | 104 | - | 1,466 | 1,448 | 18 | 1,466 | 18 | ||||||||||||||||||||||||||||||
State and political subdivision loans | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
State and political | ||||||||||||||||||||||||||||||||||||||||
subdivision loans | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Total | $ | 15,435 | $ | 10,874 | $ | 1,730 | $ | 12,604 | $ | 587 | $ | 27,990 | $ | 21,676 | $ | 3,358 | $ | 25,034 | $ | 457 | ||||||||||||||||||||
December 31, 2015 | ||||||||||||||||||||||||||||||||||||||||
December 31, 2016 | ||||||||||||||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||||||||||||
Mortgages | $ | 281 | $ | 114 | $ | 129 | $ | 243 | $ | 26 | $ | 953 | $ | 570 | $ | 330 | $ | 900 | $ | 22 | ||||||||||||||||||||
Home Equity | 61 | - | 61 | 61 | 11 | 57 | - | 57 | 57 | 10 | ||||||||||||||||||||||||||||||
Commercial | 8,654 | 5,843 | 225 | 6,068 | 62 | 7,958 | 5,697 | 45 | 5,742 | 45 | ||||||||||||||||||||||||||||||
Agricultural | 167 | 167 | - | 167 | - | 3,347 | 2,000 | 1,347 | 3,347 | 54 | ||||||||||||||||||||||||||||||
Construction | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Consumer | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Other commercial loans | 5,535 | 4,653 | 987 | 5,640 | 256 | 6,159 | 5,135 | 859 | 5,994 | 326 | ||||||||||||||||||||||||||||||
Other agricultural loans | 105 | 105 | - | 105 | - | 1,653 | 1,629 | 24 | 1,653 | 30 | ||||||||||||||||||||||||||||||
State and political subdivision loans | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
State and political | ||||||||||||||||||||||||||||||||||||||||
subdivision loans | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Total | $ | 14,803 | $ | 10,882 | $ | 1,402 | $ | 12,284 | $ | 355 | $ | 20,127 | $ | 15,031 | $ | 2,662 | $ | 17,693 | $ | 487 |
For the Three Months Ended | ||||||||||||||||||||||||
June 30, 2017 | June 30, 2016 | |||||||||||||||||||||||
Interest | Interest | |||||||||||||||||||||||
Average | Interest | Income | Average | Interest | Income | |||||||||||||||||||
Recorded | Income | Recognized | Recorded | Income | Recognized | |||||||||||||||||||
Investment | Recognized | Cash Basis | Investment | Recognized | Cash Basis | |||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||
Mortgages | $ | 986 | $ | 3 | $ | - | $ | 460 | $ | 5 | $ | - | ||||||||||||
Home Equity | 60 | 1 | - | 59 | 1 | - | ||||||||||||||||||
Commercial | 12,980 | 134 | - | 6,158 | 26 | - | ||||||||||||||||||
Agricultural | 3,641 | 32 | - | 165 | 3 | - | ||||||||||||||||||
Construction | - | - | - | - | - | - | ||||||||||||||||||
Consumer | 3 | - | - | - | - | - | ||||||||||||||||||
Other commercial loans | 5,029 | 37 | 17 | 5,933 | 68 | 2 | ||||||||||||||||||
Other agricultural loans | 1,515 | 22 | - | 104 | 2 | - | ||||||||||||||||||
State and political | ||||||||||||||||||||||||
subdivision loans | - | - | - | - | - | - | ||||||||||||||||||
Total | $ | 24,214 | $ | 229 | $ | 17 | $ | 12,879 | $ | 105 | $ | 2 |
For the Six Months ended | For the Six Months ended | |||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2016 | June 30, 2015 | June 30, 2017 | June 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||
Interest | Interest | Interest | Interest | |||||||||||||||||||||||||||||||||||||||||||||
Average | Interest | Income | Average | Interest | Income | Average | Interest | Income | Average | Interest | Income | |||||||||||||||||||||||||||||||||||||
Recorded | Income | Recognized | Recorded | Income | Recognized | Recorded | Income | Recognized | Recorded | Income | Recognized | |||||||||||||||||||||||||||||||||||||
Investment | Recognized | Cash Basis | Investment | Recognized | Cash Basis | Investment | Recognized | Cash Basis | Investment | Recognized | Cash Basis | |||||||||||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgages | $ | 425 | $ | 9 | $ | - | $ | 224 | $ | 4 | $ | 5 | $ | 940 | $ | 6 | $ | - | $ | 425 | $ | 9 | $ | - | ||||||||||||||||||||||||
Home Equity | 60 | 2 | - | 114 | 2 | - | 58 | 2 | - | 60 | 2 | - | ||||||||||||||||||||||||||||||||||||
Commercial | 6,142 | 52 | - | 5,862 | 32 | - | 9,387 | 158 | 3 | 6,142 | 52 | - | ||||||||||||||||||||||||||||||||||||
Agricultural | 165 | 5 | - | - | - | - | 3,513 | 63 | - | 165 | 5 | - | ||||||||||||||||||||||||||||||||||||
Construction | - | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||
Consumer | - | - | - | - | - | - | 2 | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||
Other commercial loans | 5,942 | 134 | 3 | 2,678 | 49 | 3 | 5,313 | 77 | 27 | 5,942 | 134 | 3 | ||||||||||||||||||||||||||||||||||||
Other agricultural loans | 104 | 3 | - | - | - | - | 1,571 | 45 | - | 104 | 3 | - | ||||||||||||||||||||||||||||||||||||
State and political | ||||||||||||||||||||||||||||||||||||||||||||||||
subdivision loans | - | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||
Total | $ | 12,838 | $ | 205 | $ | 3 | $ | 8,878 | $ | 87 | $ | 8 | $ | 20,784 | $ | 351 | $ | 30 | $ | 12,838 | $ | 205 | $ | 3 | ||||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2016 | June 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgages | $ | 460 | $ | 5 | $ | - | $ | 259 | $ | 2 | $ | 5 | ||||||||||||||||||||||||||||||||||||
Home Equity | 59 | 1 | - | 103 | 1 | - | ||||||||||||||||||||||||||||||||||||||||||
Commercial | 6,158 | 26 | - | 5,700 | 19 | - | ||||||||||||||||||||||||||||||||||||||||||
Agricultural | 165 | 3 | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||
Construction | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||
Consumer | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||
Other commercial loans | 5,933 | 68 | 2 | 2,629 | 24 | 2 | ||||||||||||||||||||||||||||||||||||||||||
Other agricultural loans | 104 | 2 | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||
State and political | ||||||||||||||||||||||||||||||||||||||||||||||||
subdivision loans | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | 12,879 | $ | 105 | $ | 2 | $ | 8,691 | $ | 46 | $ | 7 |
· | Pass (Grades 1-5) – These loans are to customers with credit quality ranging from an acceptable to very high quality and are protected by the current net worth and paying capacity of the obligor or by the value of the underlying collateral. |
· | Special Mention (Grade 6) – This loan grade is in accordance with regulatory guidance and includes loans where a potential weakness or risk exists, which could cause a more serious problem if not corrected. |
· | Substandard (Grade 7) – This loan grade is in accordance with regulatory guidance and includes loans that have a well-defined weakness based on objective evidence and be characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. |
· | Doubtful (Grade 8) – This loan grade is in accordance with regulatory guidance and includes loans that have all the weaknesses inherent in a substandard asset. In addition, these weaknesses make collection or liquidation in full highly questionable and improbable, based on existing circumstances. |
· | Loss (Grade 9) – This loan grade is in accordance with regulatory guidance and includes loans that are considered uncollectible, or of such value that continuance as an asset is not warranted. |
June 30, 2016 | Pass | Special Mention | Substandard | Doubtful | Loss | Ending Balance | ||||||||||||||||||||||||||||||||||||||||||
June 30, 2017 | Pass | Special Mention | Substandard | Doubtful | Loss | Ending Balance | ||||||||||||||||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 228,452 | $ | 3,619 | $ | 14,796 | $ | 28 | $ | - | $ | 246,895 | $ | 244,957 | $ | 13,913 | $ | 12,472 | $ | - | $ | - | $ | 271,342 | ||||||||||||||||||||||||
Agricultural | 53,701 | 5,951 | 2,740 | - | - | 62,392 | 176,551 | 5,457 | 6,539 | - | - | 188,547 | ||||||||||||||||||||||||||||||||||||
Construction | 10,481 | - | - | - | - | 10,481 | 25,569 | - | - | - | - | 25,569 | ||||||||||||||||||||||||||||||||||||
Other commercial loans | 48,344 | 2,148 | 5,061 | 133 | - | 55,686 | 51,577 | 608 | 4,684 | 83 | - | 56,952 | ||||||||||||||||||||||||||||||||||||
Other agricultural loans | 14,454 | 2,320 | 1,629 | - | - | 18,403 | 30,641 | 195 | 2,138 | - | - | 32,974 | ||||||||||||||||||||||||||||||||||||
State and political | ||||||||||||||||||||||||||||||||||||||||||||||||
subdivision loans | 91,639 | 8,200 | - | - | - | 99,839 | 82,665 | 2,926 | 10,746 | - | - | 96,337 | ||||||||||||||||||||||||||||||||||||
Total | $ | 447,071 | $ | 22,238 | $ | 24,226 | $ | 161 | $ | - | $ | 493,696 | $ | 611,960 | $ | 23,099 | $ | 36,579 | $ | 83 | $ | - | $ | 671,721 | ||||||||||||||||||||||||
December 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 217,544 | $ | 4,150 | $ | 15,816 | $ | 32 | $ | - | $ | 237,542 | ||||||||||||||||||||||||||||||||||||
Agricultural | 53,695 | 2,865 | 1,262 | - | - | 57,822 | ||||||||||||||||||||||||||||||||||||||||||
Construction | 14,422 | 589 | - | - | - | 15,011 | ||||||||||||||||||||||||||||||||||||||||||
Other commercial loans | 51,297 | 446 | 5,669 | 137 | - | 57,549 | ||||||||||||||||||||||||||||||||||||||||||
Other agricultural loans | 13,318 | 234 | 105 | - | - | 13,657 | ||||||||||||||||||||||||||||||||||||||||||
State and political | ||||||||||||||||||||||||||||||||||||||||||||||||
subdivision loans | 98,500 | - | - | - | - | 98,500 | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | 448,776 | $ | 8,284 | $ | 22,852 | $ | 169 | $ | - | $ | 480,081 |
December 31, 2016 | Pass | Special Mention | Substandard | Doubtful | Loss | Ending Balance | ||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||
Commercial | $ | 225,185 | $ | 14,045 | $ | 13,347 | $ | - | $ | - | $ | 252,577 | ||||||||||||
Agricultural | 110,785 | 8,231 | 4,608 | - | - | 123,624 | ||||||||||||||||||
Construction | 25,441 | - | - | - | - | 25,441 | ||||||||||||||||||
Other commercial loans | 51,396 | 2,049 | 5,105 | 89 | - | 58,639 | ||||||||||||||||||
Other agricultural loans | 20,178 | 1,733 | 1,477 | - | - | 23,388 | ||||||||||||||||||
State and political | ||||||||||||||||||||||||
subdivision loans | 83,620 | 13,066 | 828 | - | - | 97,514 | ||||||||||||||||||
Total | $ | 516,605 | $ | 39,124 | $ | 25,365 | $ | 89 | $ | - | $ | 581,183 |
June 30, 2016 | Performing | Non-performing | PCI | Total | ||||||||||||
Real estate loans: | ||||||||||||||||
Mortgages | $ | 142,633 | $ | 1,474 | $ | 34 | $ | 144,141 | ||||||||
Home Equity | 59,709 | 130 | - | 59,839 | ||||||||||||
Consumer | 11,385 | 48 | 6 | 11,439 | ||||||||||||
Total | $ | 213,727 | $ | 1,652 | $ | 40 | $ | 215,419 |
December 31, 2015 | Performing | Non-performing | PCI | Total | ||||||||||||||||||||||||||||
June 30, 2017 | Performing | Non-performing | PCI | Total | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||||
Mortgages | $ | 139,734 | $ | 1,270 | $ | 35 | $ | 141,039 | $ | 146,736 | $ | 1,509 | $ | 35 | $ | 148,280 | ||||||||||||||||
Home Equity | 62,236 | 132 | - | $ | 62,368 | 57,256 | 189 | - | 57,445 | |||||||||||||||||||||||
Consumer | 11,470 | 64 | 9 | $ | 11,543 | 10,459 | 144 | - | 10,603 | |||||||||||||||||||||||
Total | $ | 213,440 | $ | 1,466 | $ | 44 | $ | 214,950 | $ | 214,451 | $ | 1,842 | $ | 35 | $ | 216,328 | ||||||||||||||||
December 31, 2016 | ||||||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||||
Mortgages | $ | 147,047 | $ | 1,648 | $ | 35 | $ | 148,730 | ||||||||||||||||||||||||
Home Equity | 58,438 | 255 | - | $ | 58,693 | |||||||||||||||||||||||||||
Consumer | 10,892 | 109 | 4 | $ | 11,005 | |||||||||||||||||||||||||||
Total | $ | 216,377 | $ | 2,012 | $ | 39 | $ | 218,428 |
Total | 90 Days or | |||||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | 90 Days | Total Past | Financing | Greater and | |||||||||||||||||||||||||||
June 30, 2016 | Past Due | Past Due | Or Greater | Due | Current | PCI | Receivables | Accruing | ||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||||
Mortgages | $ | 1,564 | $ | 25 | $ | 704 | $ | 2,293 | $ | 141,814 | $ | 34 | $ | 144,141 | $ | 195 | ||||||||||||||||
Home Equity | 478 | 74 | 77 | 629 | 59,210 | - | 59,839 | 24 | ||||||||||||||||||||||||
Commercial | 1,257 | 958 | 4,147 | 6,362 | 238,517 | 2,016 | 246,895 | 461 | ||||||||||||||||||||||||
Agricultural | 166 | 58 | 165 | 389 | 61,266 | 737 | 62,392 | 165 | ||||||||||||||||||||||||
Construction | - | - | - | - | 10,481 | - | 10,481 | - | ||||||||||||||||||||||||
Consumer | 210 | 39 | 48 | 297 | 11,136 | 6 | 11,439 | 9 | ||||||||||||||||||||||||
Other commercial loans | 15 | 3,062 | 1,012 | 4,089 | 50,721 | 876 | 55,686 | 146 | ||||||||||||||||||||||||
Other agricultural loans | 66 | 91 | 104 | 261 | 18,142 | - | 18,403 | 104 | ||||||||||||||||||||||||
State and political | ||||||||||||||||||||||||||||||||
subdivision loans | - | - | - | - | 99,839 | - | 99,839 | - | ||||||||||||||||||||||||
Total | $ | 3,756 | $ | 4,307 | $ | 6,257 | $ | 14,320 | $ | 691,126 | $ | 3,669 | $ | 709,115 | $ | 1,104 | ||||||||||||||||
Loans considered non-accrual | $ | 373 | $ | 3,759 | $ | 5,153 | $ | 9,285 | $ | 921 | $ | - | $ | 10,206 | ||||||||||||||||||
Loans still accruing | 3,383 | 548 | 1,104 | 5,035 | 690,205 | 3,669 | 698,909 | |||||||||||||||||||||||||
Total | $ | 3,756 | $ | 4,307 | $ | 6,257 | $ | 14,320 | $ | 691,126 | $ | 3,669 | $ | 709,115 | ||||||||||||||||||
Total | 90 Days or | |||||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | 90 Days | Total Past | Financing | Greater and | |||||||||||||||||||||||||||
December 31, 2015 | Past Due | Past Due | Or Greater | Due | Current | PCI | Receivables | Accruing | ||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||||
Mortgages | $ | 487 | $ | 283 | $ | 687 | $ | 1,457 | $ | 139,547 | $ | 35 | $ | 141,039 | $ | 321 | ||||||||||||||||
Home Equity | 630 | 15 | 121 | 766 | 61,602 | - | 62,368 | 73 | ||||||||||||||||||||||||
Commercial | 824 | 57 | 4,139 | 5,020 | 230,352 | 2,170 | 237,542 | 60 | ||||||||||||||||||||||||
Agricultural | 177 | 167 | - | 344 | 56,740 | 738 | 57,822 | - | ||||||||||||||||||||||||
Construction | - | - | - | - | 15,011 | - | 15,011 | - | ||||||||||||||||||||||||
Consumer | 239 | 37 | 49 | 325 | 11,209 | 9 | 11,543 | 9 | ||||||||||||||||||||||||
Other commercial loans | 143 | 214 | 1,010 | 1,367 | 55,316 | 866 | 57,549 | 160 | ||||||||||||||||||||||||
Other agricultural loans | 9 | - | - | 9 | 13,648 | - | 13,657 | - | ||||||||||||||||||||||||
State and political | ||||||||||||||||||||||||||||||||
subdivision loans | - | - | - | - | 98,500 | - | 98,500 | - | ||||||||||||||||||||||||
Total | $ | 2,509 | $ | 773 | $ | 6,006 | $ | 9,288 | $ | 681,925 | $ | 3,818 | $ | 695,031 | $ | 623 | ||||||||||||||||
Loans considered non-accrual | $ | 54 | $ | 171 | $ | 5,383 | $ | 5,608 | $ | 923 | $ | - | $ | 6,531 | ||||||||||||||||||
Loans still accruing | 2,455 | 602 | 623 | 3,680 | 681,002 | 3,818 | 688,500 | |||||||||||||||||||||||||
Total | $ | 2,509 | $ | 773 | $ | 6,006 | $ | 9,288 | $ | 681,925 | $ | 3,818 | $ | 695,031 |
Total | 90 Days or | |||||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | 90 Days | Total Past | Financing | Greater and | |||||||||||||||||||||||||||
June 30, 2017 | Past Due | Past Due | Or Greater | Due | Current | PCI | Receivables | Accruing | ||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||||
Mortgages | $ | 223 | $ | 165 | $ | 879 | $ | 1,267 | $ | 146,978 | $ | 35 | $ | 148,280 | $ | - | ||||||||||||||||
Home Equity | 280 | 8 | 96 | 384 | 57,061 | - | 57,445 | 43 | ||||||||||||||||||||||||
Commercial | 1,219 | 302 | 4,389 | 5,910 | 263,443 | 1,989 | 271,342 | 553 | ||||||||||||||||||||||||
Agricultural | 454 | 100 | 1,163 | 1,717 | 186,096 | 734 | 188,547 | 159 | ||||||||||||||||||||||||
Construction | - | - | - | - | 25,569 | - | 25,569 | - | ||||||||||||||||||||||||
Consumer | 91 | - | 144 | 235 | 10,368 | - | 10,603 | 57 | ||||||||||||||||||||||||
Other commercial loans | 45 | - | 2,620 | 2,665 | 53,419 | 868 | 56,952 | - | ||||||||||||||||||||||||
Other agricultural loans | 283 | - | 739 | 1,022 | 31,952 | - | 32,974 | - | ||||||||||||||||||||||||
State and political | ||||||||||||||||||||||||||||||||
subdivision loans | - | - | - | - | 96,337 | - | 96,337 | - | ||||||||||||||||||||||||
Total | $ | 2,595 | $ | 575 | $ | 10,030 | $ | 13,200 | $ | 871,223 | $ | 3,626 | $ | 888,049 | $ | 812 | ||||||||||||||||
Loans considered non-accrual | $ | 144 | $ | 99 | $ | 9,218 | $ | 9,461 | $ | 2,050 | $ | - | $ | 11,511 | ||||||||||||||||||
Loans still accruing | 2,451 | 476 | 812 | 3,739 | 869,173 | 3,626 | 876,538 | |||||||||||||||||||||||||
Total | $ | 2,595 | $ | 575 | $ | 10,030 | $ | 13,200 | $ | 871,223 | $ | 3,626 | $ | 888,049 | ||||||||||||||||||
December 31, 2016 | ||||||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||||
Mortgages | $ | 630 | $ | 36 | $ | 1,109 | $ | 1,775 | $ | 146,920 | $ | 35 | $ | 148,730 | $ | 173 | ||||||||||||||||
Home Equity | 384 | 49 | 209 | 642 | 58,051 | - | 58,693 | 160 | ||||||||||||||||||||||||
Commercial | 1,757 | 58 | 4,302 | 6,117 | 244,491 | 1,969 | 252,577 | - | ||||||||||||||||||||||||
Agricultural | - | - | 1,145 | 1,145 | 121,741 | 738 | 123,624 | - | ||||||||||||||||||||||||
Construction | - | - | - | - | 25,441 | - | 25,441 | - | ||||||||||||||||||||||||
Consumer | 115 | 40 | 83 | 238 | 10,763 | 4 | 11,005 | 67 | ||||||||||||||||||||||||
Other commercial loans | 95 | 35 | 4,004 | 4,134 | 53,884 | 621 | 58,639 | - | ||||||||||||||||||||||||
Other agricultural loans | 43 | 34 | 5 | 82 | 23,306 | - | 23,388 | 5 | ||||||||||||||||||||||||
State and political | ||||||||||||||||||||||||||||||||
subdivision loans | - | - | - | - | 97,514 | - | 97,514 | - | ||||||||||||||||||||||||
Total | $ | 3,024 | $ | 252 | $ | 10,857 | $ | 14,133 | $ | 782,111 | $ | 3,367 | $ | 799,611 | $ | 405 | ||||||||||||||||
Loans considered non-accrual | $ | 172 | $ | 105 | $ | 10,452 | $ | 10,729 | $ | 725 | $ | - | $ | 11,454 | ||||||||||||||||||
Loans still accruing | 2,852 | 147 | 405 | 3,404 | 781,386 | 3,367 | 788,157 | |||||||||||||||||||||||||
Total | $ | 3,024 | $ | 252 | $ | 10,857 | $ | 14,133 | $ | 782,111 | $ | 3,367 | $ | 799,611 |
June 30, 2016 | December 31, 2015 | |||||||
Real estate loans: | ||||||||
Mortgages | $ | 1,279 | $ | 949 | ||||
Home Equity | 106 | 59 | ||||||
Commercial | 4,711 | 4,422 | ||||||
Agricultural | 29 | 34 | ||||||
Consumer | 39 | 55 | ||||||
Other commercial loans | 4,042 | 1,012 | ||||||
$ | 10,206 | $ | 6,531 |
June 30, 2017 | December 31, 2016 | |||||||
Real estate loans: | ||||||||
Mortgages | $ | 1,509 | $ | 1,475 | ||||
Home Equity | 146 | 95 | ||||||
Commercial | 4,588 | 4,445 | ||||||
Agricultural | 1,314 | 1,340 | ||||||
Construction | - | - | ||||||
Consumer | 87 | 42 | ||||||
Other commercial loans | 3,128 | 4,057 | ||||||
Other agricultural loans | 739 | - | ||||||
State and political subdivision | - | - | ||||||
$ | 11,511 | $ | 11,454 |
For the Three Months Ended June 30, 2016 | For the Three Months Ended June 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||
Number of contracts | Pre-modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Number of contracts | Pre-modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | |||||||||||||||||||||||||||||||||||||||||||
Interest Modification | Term Modification | Interest Modification | Term Modification | Interest Modification | Term Modification | Interest Modification | Term Modification | Interest Modification | Term Modification | Interest Modification | Term Modification | |||||||||||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | - | 3 | $ | - | $ | 438 | $ | - | $ | 438 | - | 5 | $ | - | $ | 6,093 | $ | - | $ | 6,093 | ||||||||||||||||||||||||||||
Total | - | 3 | $ | - | $ | 438 | $ | - | $ | 438 | - | 5 | $ | - | $ | 6,093 | $ | - | $ | 6,093 |
For the Six Months Ended June 30, 2017 | ||||||||||||||||||||||||
Number of contracts | Pre-modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | ||||||||||||||||||||||
Interest Modification | Term Modification | Interest Modification | Term Modification | Interest Modification | Term Modification | |||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||
Commercial | - | 7 | $ | - | $ | 6,797 | $ | - | $ | 6,797 | ||||||||||||||
Total | - | 7 | $ | - | $ | 6,797 | $ | - | $ | 6,797 |
For the Six Months Ended June 30, 2016 | ||||||||||||||||||||||||
Number of contracts | Pre-modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | ||||||||||||||||||||||
Interest Modification | Term Modification | Interest Modification | Term Modification | Interest Modification | Term Modification | |||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||
Commercial | - | 3 | $ | - | $ | 438 | $ | - | $ | 438 | ||||||||||||||
Total | - | 3 | $ | - | $ | 438 | $ | - | $ | 438 |
For the Three Months Ended June 30, 2015 | For the Three Months Ended June 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||
Number of contracts | Pre-modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Number of contracts | Pre-modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | |||||||||||||||||||||||||||||||||||||||||||
Interest Modification | Term Modification | Interest Modification | Term Modification | Interest Modification | Term Modification | Interest Modification | Term Modification | Interest Modification | Term Modification | Interest Modification | Term Modification | |||||||||||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgages | - | 1 | $ | - | $ | 19 | $ | - | $ | 19 | ||||||||||||||||||||||||||||||||||||||
Commercial | - | 3 | $ | - | $ | 438 | $ | - | $ | 438 | ||||||||||||||||||||||||||||||||||||||
Total | - | 1 | $ | - | $ | 19 | $ | - | $ | 19 | - | 3 | $ | - | $ | 438 | $ | - | $ | 438 |
For the Six Months Ended June 30, 2015 | For the Six Months Ended June 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||
Number of contracts | Pre-modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Number of contracts | Pre-modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | |||||||||||||||||||||||||||||||||||||||||||
Interest Modification | Term Modification | Interest Modification | Term Modification | Interest Modification | Term Modification | Interest Modification | Term Modification | Interest Modification | Term Modification | Interest Modification | Term Modification | |||||||||||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgages | 1 | 1 | $ | 71 | $ | 19 | $ | 71 | $ | 19 | ||||||||||||||||||||||||||||||||||||||
Commercial | - | 3 | $ | - | 438 | $ | - | 438 | ||||||||||||||||||||||||||||||||||||||||
Total | 1 | 1 | $ | 71 | $ | 19 | $ | 71 | $ | 19 | - | 3 | $ | - | $ | 438 | $ | - | $ | 438 |
June 30, 2016 | December 31, 2015 | June 30, 2017 | December 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | Collectively evaluated for impairment | Total | Individually evaluated for impairment | Collectively evaluated for impairment | Total | Individually evaluated for impairment | Collectively evaluated for impairment | Total | Individually evaluated for impairment | Collectively evaluated for impairment | Total | |||||||||||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||||||||||||||||||||
Residential | $ | 46 | $ | 944 | $ | 990 | $ | 37 | $ | 868 | $ | 905 | $ | 77 | $ | 1,027 | $ | 1,104 | $ | 32 | $ | 1,032 | $ | 1,064 | ||||||||||||||||||||||||
Commercial and agricultural | 126 | 3,793 | 3,919 | 62 | 3,723 | 3,785 | ||||||||||||||||||||||||||||||||||||||||||
Commercial | 58 | 3,483 | 3,541 | 45 | 3,544 | 3,589 | ||||||||||||||||||||||||||||||||||||||||||
Agricultural | 95 | 2,357 | 2,452 | 54 | 1,440 | 1,494 | ||||||||||||||||||||||||||||||||||||||||||
Construction | - | 18 | 18 | - | 24 | 24 | - | 45 | 45 | - | 47 | 47 | ||||||||||||||||||||||||||||||||||||
Consumer | - | 104 | 104 | - | 102 | 102 | 2 | 123 | 125 | - | 122 | 122 | ||||||||||||||||||||||||||||||||||||
Other commercial and agricultural loans | 415 | 1,149 | 1,564 | 256 | 1,049 | 1,305 | ||||||||||||||||||||||||||||||||||||||||||
Other commercial loans | 207 | 924 | 1,131 | 326 | 1,001 | 1,327 | ||||||||||||||||||||||||||||||||||||||||||
Other agricultural loans | 18 | 413 | 431 | 30 | 282 | 312 | ||||||||||||||||||||||||||||||||||||||||||
State and political | ||||||||||||||||||||||||||||||||||||||||||||||||
subdivision loans | - | 764 | 764 | - | 593 | 593 | - | 838 | 838 | - | 833 | 833 | ||||||||||||||||||||||||||||||||||||
Unallocated | - | - | - | - | 392 | 392 | - | 312 | 312 | - | 98 | 98 | ||||||||||||||||||||||||||||||||||||
Total | $ | 587 | $ | 6,772 | $ | 7,359 | $ | 355 | $ | 6,751 | $ | 7,106 | $ | 457 | $ | 9,522 | $ | 9,979 | $ | 487 | $ | 8,399 | $ | 8,886 |
Balance at March 31, 2016 | Charge-offs | Recoveries | Provision | Balance at June 30, 2016 | ||||||||||||||||
Real estate loans: | ||||||||||||||||||||
Residential | $ | 966 | $ | (43 | ) | $ | - | $ | 67 | $ | 990 | |||||||||
Commercial and agricultural | 3,938 | - | 4 | (23 | ) | 3,919 | ||||||||||||||
Construction | 14 | - | - | 4 | 18 | |||||||||||||||
Consumer | 96 | (23 | ) | 29 | 2 | 104 | ||||||||||||||
Other commercial and agricultural loans | 1,347 | (18 | ) | - | 235 | 1,564 | ||||||||||||||
State and political | - | |||||||||||||||||||
subdivision loans | 666 | - | - | 98 | 764 | |||||||||||||||
Unallocated | 248 | - | - | (248 | ) | - | ||||||||||||||
Total | $ | 7,275 | $ | (84 | ) | $ | 33 | $ | 135 | $ | 7,359 | |||||||||
Balance at December 31, 2015 | Charge-offs | Recoveries | Provision | Balance at June 30, 2016 | ||||||||||||||||
Real estate loans: | ||||||||||||||||||||
Residential | $ | 905 | $ | (43 | ) | $ | - | $ | 128 | $ | 990 | |||||||||
Commercial and agricultural | 3,785 | - | 8 | 126 | 3,919 | |||||||||||||||
Construction | 24 | - | - | (6 | ) | 18 | ||||||||||||||
Consumer | 102 | (38 | ) | 68 | (28 | ) | 104 | |||||||||||||
Other commercial and agricultural loans | 1,305 | (18 | ) | 6 | 271 | 1,564 | ||||||||||||||
State and political | - | |||||||||||||||||||
subdivision loans | 593 | - | - | 171 | 764 | |||||||||||||||
Unallocated | 392 | - | - | (392 | ) | - | ||||||||||||||
Total | $ | 7,106 | $ | (99 | ) | $ | 82 | $ | 270 | $ | 7,359 | |||||||||
Balance at March 31, 2015 | Charge-offs | Recoveries | Provision | Balance at June 30, 2015 | ||||||||||||||||
Real estate loans: | ||||||||||||||||||||
Residential | $ | 923 | $ | (17 | ) | $ | - | $ | 25 | $ | 931 | |||||||||
Commercial and agricultural | 3,699 | (56 | ) | 3 | 33 | 3,679 | ||||||||||||||
Construction | 11 | - | - | 3 | 14 | |||||||||||||||
Consumer | 82 | (17 | ) | 4 | 20 | 89 | ||||||||||||||
Other commercial and agricultural loans | 1,286 | - | - | 216 | 1,502 | |||||||||||||||
State and political | - | |||||||||||||||||||
subdivision loans | 572 | - | - | (4 | ) | 568 | ||||||||||||||
Unallocated | 349 | - | - | (173 | ) | 176 | ||||||||||||||
Total | $ | 6,922 | $ | (90 | ) | $ | 7 | $ | 120 | $ | 6,959 | |||||||||
Balance at December 31, 2014 | Charge-offs | Recoveries | Provision | Balance at June 30, 2015 | ||||||||||||||||
Real estate loans: | ||||||||||||||||||||
Residential | $ | 878 | $ | (34 | ) | $ | - | $ | 87 | $ | 931 | |||||||||
Commercial and agricultural | 3,870 | (56 | ) | 7 | (142 | ) | 3,679 | |||||||||||||
Construction | 26 | - | - | (12 | ) | 14 | ||||||||||||||
Consumer | 84 | (24 | ) | 12 | 17 | 89 | ||||||||||||||
Other commercial and agricultural loans | 1,224 | (1 | ) | - | 279 | 1,502 | ||||||||||||||
State and political | - | |||||||||||||||||||
subdivision loans | 545 | - | - | 23 | 568 | |||||||||||||||
Unallocated | 188 | - | - | (12 | ) | 176 | ||||||||||||||
Total | $ | 6,815 | $ | (115 | ) | $ | 19 | $ | 240 | $ | 6,959 |
Balance at March 31, 2017 | Charge-offs | Recoveries | Provision | Balance at June 30, 2017 | ||||||||||||||||
Real estate loans: | ||||||||||||||||||||
Residential | $ | 1,042 | $ | (48 | ) | $ | - | $ | 110 | $ | 1,104 | |||||||||
Commercial | 3,665 | - | 2 | (126 | ) | 3,541 | ||||||||||||||
Agricultural | 1,952 | - | - | 500 | 2,452 | |||||||||||||||
Construction | 46 | - | - | (1 | ) | 45 | ||||||||||||||
Consumer | 123 | (17 | ) | 12 | 7 | 125 | ||||||||||||||
Other commercial loans | 1,215 | - | - | (84 | ) | 1,131 | ||||||||||||||
Other agricultural loans | 306 | - | - | 125 | 431 | |||||||||||||||
State and political subdivision loans | 824 | - | - | 14 | 838 | |||||||||||||||
Unallocated | 232 | - | - | 80 | 312 | |||||||||||||||
Total | $ | 9,405 | $ | (65 | ) | $ | 14 | $ | 625 | $ | 9,979 |
Balance at December 31, 2016 | Charge-offs | Recoveries | Provision | Balance at June 30, 2017 | ||||||||||||||||
Real estate loans: | ||||||||||||||||||||
Residential | $ | 1,064 | $ | (93 | ) | $ | - | $ | 133 | $ | 1,104 | |||||||||
Commercial | 3,589 | (41 | ) | 6 | (13 | ) | 3,541 | |||||||||||||
Agricultural | 1,494 | - | - | 958 | 2,452 | |||||||||||||||
Construction | 47 | - | - | (2 | ) | 45 | ||||||||||||||
Consumer | 122 | (45 | ) | 22 | 26 | 125 | ||||||||||||||
Other commercial loans | 1,327 | - | 9 | (205 | ) | 1,131 | ||||||||||||||
Other agricultural loans | 312 | (5 | ) | 124 | 431 | |||||||||||||||
State and political subdivision loans | 833 | - | - | 5 | 838 | |||||||||||||||
Unallocated | 98 | - | - | 214 | 312 | |||||||||||||||
Total | $ | 8,886 | $ | (184 | ) | $ | 37 | $ | 1,240 | $ | 9,979 |
Balance at March 31, 2016 | Charge-offs | Recoveries | Provision | Balance at June 30, 2016 | ||||||||||||||||
Real estate loans: | ||||||||||||||||||||
Residential | $ | 966 | $ | (43 | ) | $ | - | $ | 67 | $ | 990 | |||||||||
Commercial | 3,533 | - | 4 | (199 | ) | 3,338 | ||||||||||||||
Agricultural | 405 | 176 | 581 | |||||||||||||||||
Construction | 14 | - | - | 4 | 18 | |||||||||||||||
Consumer | 96 | (23 | ) | 29 | 2 | 104 | ||||||||||||||
Other commercial loans | 1,222 | (18 | ) | - | 112 | 1,316 | ||||||||||||||
Other agricultural loans | 125 | 123 | 248 | |||||||||||||||||
State and political subdivision loans | 666 | - | - | 98 | 764 | |||||||||||||||
Unallocated | 248 | - | - | (248 | ) | - | ||||||||||||||
Total | $ | 7,275 | $ | (84 | ) | $ | 33 | $ | 135 | $ | 7,359 |
Balance at December 31, 2016 | Charge-offs | Recoveries | Provision | Balance at June 30, 2016 | ||||||||||||||||
Real estate loans: | ||||||||||||||||||||
Residential | $ | 905 | $ | (43 | ) | $ | - | $ | 128 | $ | 990 | |||||||||
Commercial | 3,376 | - | 8 | (46 | ) | 3,338 | ||||||||||||||
Agricultural | 409 | - | 172 | 581 | ||||||||||||||||
Construction | 24 | - | - | (6 | ) | 18 | ||||||||||||||
Consumer | 102 | (38 | ) | 68 | (28 | ) | 104 | |||||||||||||
Other commercial loans | 1,183 | (18 | ) | 6 | 145 | 1,316 | ||||||||||||||
Other agricultural loans | 122 | 126 | 248 | |||||||||||||||||
State and political subdivision loans | 593 | - | - | 171 | 764 | |||||||||||||||
Unallocated | 392 | - | - | (392 | ) | - | ||||||||||||||
Total | $ | 7,106 | $ | (99 | ) | $ | 82 | $ | 270 | $ | 7,359 |
· | Level of and trends in delinquencies and impaired/classified loans |
§ | Change in volume and severity of past due loans |
§ | Volume of non-accrual loans |
§ | Volume and severity of classified, adversely or graded loans; |
· | Level of and trends in charge-offs and recoveries; |
· | Trends in volume, terms and nature of the loan portfolio; |
· | Effects of any changes in risk selection and underwriting standards and any other changes in lending and recovery policies, procedures and practices; |
· | Changes in the quality of the Company's loan review system; |
· | Experience, ability and depth of lending management and other relevant staff; |
· | National, state, regional and local economic trends and business conditions |
§ | General economic conditions |
§ | Unemployment rates |
§ | Inflation rate/ Consumer Price Index |
§ | Changes in values of underlying collateral for collateral-dependent loans; |
· | Industry conditions including the effects of external factors such as competition, legal, and regulatory requirements on the level of estimated credit losses; |
· | Existence and effect of any credit concentrations, and changes in the level of such concentrations; and |
· | Any change in the level of board oversight. |
June 30, 2016 | December 31, 2015 | June 30, 2017 | December 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||
Gross carrying value | Accumulated amortization | Net carrying value | Gross carrying value | Accumulated amortization | Net carrying value | Gross carrying value | Accumulated amortization | Net carrying value | Gross carrying value | Accumulated amortization | Net carrying value | |||||||||||||||||||||||||||||||||||||
Amortized intangible assets (1): | ||||||||||||||||||||||||||||||||||||||||||||||||
MSRs | $ | 1,336 | $ | (728 | ) | $ | 608 | $ | 1,336 | $ | (638 | ) | $ | 698 | $ | 1,560 | $ | (878 | ) | $ | 682 | $ | 1,471 | $ | (787 | ) | $ | 684 | ||||||||||||||||||||
Core deposit intangibles | 1,641 | (173 | ) | 1,468 | �� | 1,641 | (25 | ) | 1,616 | 1,641 | (454 | ) | 1,187 | 1,641 | (320 | ) | 1,321 | |||||||||||||||||||||||||||||||
Covenant not to compete | 125 | (18 | ) | 107 | 125 | (2 | ) | 123 | 125 | (49 | ) | 76 | 125 | (34 | ) | 91 | ||||||||||||||||||||||||||||||||
Total amortized intangible assets | $ | 3,102 | $ | (919 | ) | $ | 2,183 | $ | 3,102 | $ | (665 | ) | $ | 2,437 | $ | 3,326 | $ | (1,381 | ) | $ | 1,945 | $ | 3,237 | $ | (1,141 | ) | $ | 2,096 | ||||||||||||||||||||
Unamortized intangible assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | $ | 21,089 | $ | 21,089 | $ | 21,089 | $ | 21,089 | ||||||||||||||||||||||||||||||||||||||||
(1) Excludes fully amortized intangible assets | (1) Excludes fully amortized intangible assets |
MSRs | Core deposit intangibles | Covenant not to compete | Total | MSRs | Core deposit intangibles | Covenant not to compete | Total | |||||||||||||||||||||||||
Six months ended June 30, 2016 (actual) | $ | 90 | $ | 148 | $ | 16 | $ | 254 | ||||||||||||||||||||||||
Three months ended June 30, 2016 (actual) | $ | 44 | $ | 74 | $ | 8 | $ | 126 | ||||||||||||||||||||||||
Three months ended June 30, 2017 (actual) | $ | 45 | $ | 66 | $ | 7 | $ | 118 | ||||||||||||||||||||||||
Six months ended June 30, 2017 (actual) | $ | 91 | $ | 134 | $ | 15 | $ | 240 | ||||||||||||||||||||||||
Three months June 30, 2016 (actual) | $ | 44 | $ | 74 | $ | 8 | $ | 126 | ||||||||||||||||||||||||
Six months June 30, 2016 (actual) | $ | 90 | $ | 148 | $ | 16 | $ | 254 | ||||||||||||||||||||||||
Estimate for year ended December 31, | ||||||||||||||||||||||||||||||||
Remaining 2016 | 83 | 148 | 15 | 246 | ||||||||||||||||||||||||||||
2017 | 142 | 266 | 31 | 439 | ||||||||||||||||||||||||||||
Remaining 2017 | 95 | 132 | 16 | 243 | ||||||||||||||||||||||||||||
2018 | 113 | 236 | 31 | 380 | 160 | 236 | 30 | 426 | ||||||||||||||||||||||||
2019 | 88 | 206 | 30 | 324 | 127 | 206 | 30 | 363 | ||||||||||||||||||||||||
2020 | 66 | 177 | - | 243 | 98 | 177 | - | 275 | ||||||||||||||||||||||||
2021 | 73 | 147 | - | 220 |
Remaining Contractual Maturity of the Agreements | ||||||||||||||||||||
Overnight and | Up to | Greater than | ||||||||||||||||||
June 30, 2016 | Continuous | 30 Days | 30 - 90 Days | 90 days | Total | |||||||||||||||
Repurchase Agreements: | ||||||||||||||||||||
U.S. agency securities | $ | 18,024 | $ | - | $ | - | $ | 2,129 | $ | 20,153 | ||||||||||
Total carrying value of collateral pledged | $ | 18,024 | $ | - | $ | - | $ | 2,129 | $ | 20,153 | ||||||||||
Total liability recognized for repurchase agreements | $ | 14,761 | ||||||||||||||||||
Remaining Contractual Maturity of the Agreements | ||||||||||||||||||||
Overnight and | Up to | Greater than | ||||||||||||||||||
December 31, 2015 | Continuous | 30 Days | 30 - 90 Days | 90 days | Total | |||||||||||||||
Repurchase Agreements: | ||||||||||||||||||||
U.S. agency securities | $ | 18,144 | $ | - | $ | - | $ | 2,049 | $ | 20,193 | ||||||||||
Total carrying value of collateral pledged | $ | 18,144 | $ | - | $ | - | $ | 2,049 | $ | 20,193 | ||||||||||
Total liability recognized for repurchase agreements | $ | 16,008 |
Remaining Contractual Maturity of the Agreements | ||||||||||||||||||||
Overnight and | Up to | Greater than | ||||||||||||||||||
June 30, 2017 | Continuous | 30 Days | 30 - 90 Days | 90 days | Total | |||||||||||||||
Repurchase Agreements: | ||||||||||||||||||||
U.S. agency securities | $ | 18,161 | $ | - | $ | - | $ | 2,069 | $ | 20,230 | ||||||||||
Total carrying value of collateral pledged | $ | 18,161 | $ | - | $ | - | $ | 2,069 | $ | 20,230 | ||||||||||
Total liability recognized for repurchase agreements | $ | 15,577 | ||||||||||||||||||
Remaining Contractual Maturity of the Agreements | ||||||||||||||||||||
Overnight and | Up to | Greater than | ||||||||||||||||||
December 31, 2016 | Continuous | 30 Days | 30 - 90 Days | 90 days | Total | |||||||||||||||
Repurchase Agreements: | ||||||||||||||||||||
U.S. agency securities | $ | 16,118 | $ | - | $ | - | $ | 2,059 | $ | 18,177 | ||||||||||
Total carrying value of collateral pledged | $ | 16,118 | $ | - | $ | - | $ | 2,059 | $ | 18,177 | ||||||||||
Total liability recognized for repurchase agreements | $ | 14,307 |
Three Months Ended | Six Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||||||
Service cost | $ | 89 | $ | 78 | $ | 179 | $ | 132 | $ | 84 | $ | 89 | $ | 175 | $ | 179 | ||||||||||||||||
Interest cost | 173 | 90 | 345 | 153 | 168 | 173 | 335 | 345 | ||||||||||||||||||||||||
Expected return on plan assets | (260 | ) | (172 | ) | (520 | ) | (290 | ) | (273 | ) | (260 | ) | (547 | ) | (520 | ) | ||||||||||||||||
Net amortization and deferral | 60 | 45 | 121 | 76 | 52 | 60 | 112 | 121 | ||||||||||||||||||||||||
Net periodic benefit cost | $ | 62 | $ | 41 | $ | 125 | $ | 71 | $ | 31 | $ | 62 | $ | 75 | $ | 125 |
Three months | Six months | Three months | Six months | |||||||||||||||||||||||||||||
Weighted | Weighted | Weighted | Weighted | |||||||||||||||||||||||||||||
Unvested | Average | Unvested | Average | Unvested | Average | Unvested | Average | |||||||||||||||||||||||||
Shares | Market Price | Shares | Market Price | Shares | Market Price | Shares | Market Price | |||||||||||||||||||||||||
Outstanding, beginning of period | 8,111 | $ | 49.96 | 8,269 | $ | 49.98 | 8,459 | $ | 49.10 | 8,471 | $ | 49.10 | ||||||||||||||||||||
Granted | 3,650 | 47.81 | 3,650 | 47.81 | 4,062 | 53.46 | 4,212 | 53.38 | ||||||||||||||||||||||||
Forfeited | - | - | - | - | (43 | ) | (48.56 | ) | (43 | ) | (48.56 | ) | ||||||||||||||||||||
Vested | (3,158 | ) | 50.41 | (3,316 | ) | (50.45 | ) | (3,309 | ) | (50.14 | ) | (3,471 | ) | (50.19 | ) | |||||||||||||||||
Outstanding, end of period | 8,603 | $ | 48.88 | 8,603 | $ | 48.88 | 9,169 | $ | 50.66 | 9,169 | $ | 50.66 |
Three months ended June 30, 2016 | ||||||||||||
Unrealized gain (loss) on available for sale securities (a) | Defined Benefit Pension Items (a) | Total | ||||||||||
Balance as of March 31, 2016 | $ | 3,303 | $ | (2,400 | ) | $ | 903 | |||||
Other comprehensive income before reclassifications (net of tax) | 1,184 | - | 1,184 | |||||||||
Amounts reclassified from accumulated other | ||||||||||||
comprehensive income (loss) (net of tax) | (84 | ) | 39 | (45 | ) | |||||||
Net current period other comprehensive income | 1,100 | 39 | 1,139 | |||||||||
Balance as of June 30, 2016 | $ | 4,403 | $ | (2,361 | ) | $ | 2,042 | |||||
Six months ended June 30, 2016 | ||||||||||||
Balance as of December 31, 2015 | $ | 2,204 | $ | (2,440 | ) | $ | (236 | ) | ||||
Other comprehensive income before reclassifications (net of tax) | 2,301 | - | 2,301 | |||||||||
Amounts reclassified from accumulated other | ||||||||||||
comprehensive income (loss) (net of tax) | (102 | ) | 79 | (23 | ) | |||||||
Net current period other comprehensive income | 2,199 | 79 | 2,278 | |||||||||
Balance as of June 30, 2016 | $ | 4,403 | $ | (2,361 | ) | $ | 2,042 | |||||
Three months ended June 30, 2015 | ||||||||||||
Balance as of March 31, 2015 | $ | 3,897 | $ | (2,294 | ) | $ | 1,603 | |||||
Other comprehensive income (loss) before reclassifications (net of tax) | (1,351 | ) | - | (1,351 | ) | |||||||
Amounts reclassified from accumulated other | ||||||||||||
comprehensive income (loss) (net of tax) | (116 | ) | 35 | (81 | ) | |||||||
Net current period other comprehensive income (loss) | (1,467 | ) | 35 | (1,432 | ) | |||||||
Balance as of June 30, 2015 | $ | 2,430 | $ | (2,259 | ) | $ | 171 | |||||
Six months ended June 30, 2015 | ||||||||||||
Balance as of December 31, 2014 | $ | 3,093 | $ | (2,326 | ) | $ | 767 | |||||
Other comprehensive income (loss) before reclassifications (net of tax) | (464 | ) | - | (464 | ) | |||||||
Amounts reclassified from accumulated other | ||||||||||||
comprehensive income (loss) (net of tax) | (199 | ) | 67 | (132 | ) | |||||||
Net current period other comprehensive income (loss) | (663 | ) | 67 | (596 | ) | |||||||
Balance as of June 30, 2015 | $ | 2,430 | $ | (2,259 | ) | $ | 171 | |||||
(a) Amounts in parentheses indicate debits to the Consolidated Balance Sheet |
Three months ended June 30, 2017 | ||||||||||||
Unrealized gain (loss) on available for sale securities | Defined Benefit Pension Items | Total | ||||||||||
Balance as of March 31, 2017 | $ | 1,238 | $ | (2,659 | ) | $ | (1,421 | ) | ||||
Other comprehensive income (loss) before reclassifications (net of tax) | 432 | - | 432 | |||||||||
Amounts reclassified from accumulated other | ||||||||||||
comprehensive income (loss) (net of tax) | (15 | ) | 35 | 20 | ||||||||
Net current period other comprehensive income (loss) | 417 | 35 | 452 | |||||||||
Balance as of June 30, 2017 | $ | 1,655 | $ | (2,624 | ) | $ | (969 | ) | ||||
Six months ended June 30, 2017 | ||||||||||||
Unrealized gain (loss) on available for sale securities | Defined Benefit Pension Items | Total | ||||||||||
Balance as of December 31, 2016 | $ | 1,306 | $ | (2,698 | ) | $ | (1,392 | ) | ||||
Other comprehensive income (loss) before reclassifications (net of tax) | 478 | - | 478 | |||||||||
Amounts reclassified from accumulated other | ||||||||||||
comprehensive income (loss) (net of tax) | (129 | ) | 74 | (55 | ) | |||||||
Net current period other comprehensive income (loss) | 349 | 74 | 423 | |||||||||
Balance as of June 30, 2017 | $ | 1,655 | $ | (2,624 | ) | $ | (969 | ) | ||||
Three months ended June 30, 2016 | ||||||||||||
Unrealized gain (loss) on available for sale securities | Defined Benefit Pension Items | Total | ||||||||||
Balance as of March 31, 2016 | $ | 3,303 | $ | (2,400 | ) | $ | 903 | |||||
Other comprehensive income (loss) before reclassifications (net of tax) | 1,184 | - | 1,184 | |||||||||
Amounts reclassified from accumulated other | ||||||||||||
comprehensive income (loss) (net of tax) | (84 | ) | 39 | (45 | ) | |||||||
Net current period other comprehensive income (loss) | 1,100 | 39 | 1,139 | |||||||||
Balance as of June 30, 2016 | $ | 4,403 | $ | (2,361 | ) | $ | 2,042 | |||||
Six months ended June 30, 2016 | ||||||||||||
Unrealized gain (loss) on available for sale securities | Defined Benefit Pension Items | Total | ||||||||||
Balance as of December 31, 2015 | $ | 2,204 | $ | (2,440 | ) | $ | (236 | ) | ||||
Other comprehensive income (loss) before reclassifications (net of tax) | 2,301 | - | 2,301 | |||||||||
Amounts reclassified from accumulated other | ||||||||||||
comprehensive income (loss) (net of tax) | (102 | ) | 79 | (23 | ) | |||||||
Net current period other comprehensive income (loss) | 2,199 | 79 | 2,278 | |||||||||
Balance as of June 30, 2016 | $ | 4,403 | $ | (2,361 | ) | $ | 2,042 |
Details about accumulated other comprehensive income (loss) | Amount reclassified from accumulated comprehensive income (loss) | Affected line item in the Consolidated Statement of Income | |||||||
Three Months Ended June 30, | |||||||||
2017 | 2016 | ||||||||
Unrealized gains and losses on available for sale securities | |||||||||
$ | 23 | $ | 128 | Investment securities gains, net | |||||
(8 | ) | (44 | ) | Provision for income taxes | |||||
$ | 15 | $ | 84 | ||||||
Defined benefit pension items | |||||||||
$ | (52 | ) | $ | (60 | ) | Salaries and employee benefits | |||
17 | 21 | Provision for income taxes | |||||||
$ | (35 | ) | $ | (39 | ) | ||||
Total reclassifications, net | $ | (20 | ) | $ | 45 | ||||
Six Months Ended June 30, | |||||||||
2017 | 2016 | ||||||||
Unrealized gains and losses on available for sale securities | |||||||||
$ | 195 | $ | 155 | Investment securities gains, net | |||||
(66 | ) | (53 | ) | Provision for income taxes | |||||
$ | 129 | $ | 102 | ||||||
Defined benefit pension items | |||||||||
$ | (112 | ) | $ | (121 | ) | Salaries and employee benefits | |||
38 | 42 | Provision for income taxes | |||||||
$ | (74 | ) | $ | (79 | ) | ||||
Total reclassifications, net | $ | 55 | $ | 23 |
Details about accumulated other comprehensive income (loss) | Amount reclassified from accumulated comprehensive income (loss) (a) | Affected line item in the statement where net Income is presented | |||||||
Three Months Ended June 30, | |||||||||
2016 | 2015 | ||||||||
Unrealized gains and losses on available for sale securities | |||||||||
$ | 128 | $ | 175 | Investment securities gains, net | |||||
(44 | ) | (59 | ) | Provision for income taxes | |||||
$ | 84 | $ | 116 | Net of tax | |||||
Defined benefit pension items | |||||||||
$ | (60 | ) | $ | (54 | ) | Salaries and employee benefits | |||
21 | 19 | Provision for income taxes | |||||||
$ | (39 | ) | $ | (35 | ) | Net of tax | |||
Total reclassifications | $ | 45 | $ | 81 | |||||
Six Months Ended June 30, | |||||||||
2016 | 2015 | ||||||||
Unrealized gains and losses on available for sale securities | |||||||||
$ | 155 | $ | 301 | Investment securities gains, net | |||||
(53 | ) | (102 | ) | Provision for income taxes | |||||
$ | 102 | $ | 199 | Net of tax | |||||
Defined benefit pension items | |||||||||
$ | (121 | ) | $ | (102 | ) | Salaries and employee benefits | |||
42 | 35 | Provision for income taxes | |||||||
$ | (79 | ) | $ | (67 | ) | Net of tax | |||
Total reclassifications | $ | 23 | $ | 132 | |||||
(a) Amounts in parentheses indicate expenses and other amounts indicate income on the Consolidated Statement of Income |
Level I: | Quoted prices are available in active markets for identical assets or liabilities as of the reported date. |
Level II: | Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities include items for which quoted prices are available but traded less frequently, and items that are fair valued using other financial instruments, the parameters of which can be directly observed. |
Level III: | Assets and liabilities that have little to no pricing observability as of the reported date. These items do not have two-way markets and are measured using management's best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. |
June 30, 2016 | Level I | Level II | Level III | Total | ||||||||||||
Fair value measurements on a recurring basis: | ||||||||||||||||
Assets | ||||||||||||||||
Securities available for sale: | ||||||||||||||||
U.S. Agency securities | $ | - | $ | 205,819 | $ | - | $ | 205,819 | ||||||||
U.S. Treasury securities | 5,053 | - | - | 5,053 | ||||||||||||
Obligations of state and | ||||||||||||||||
political subdivisions | - | 104,472 | - | 104,472 | ||||||||||||
Corporate obligations | - | 11,480 | - | 11,480 | ||||||||||||
Mortgage-backed securities in | ||||||||||||||||
government sponsored entities | - | 31,606 | - | 31,606 | ||||||||||||
Equity securities in financial institutions | 2,514 | - | - | 2,514 | ||||||||||||
December 31, 2015 | ||||||||||||||||
Fair value measurements on a recurring basis: | ||||||||||||||||
Securities available for sale: | ||||||||||||||||
U.S. Agency securities | $ | - | $ | 199,591 | $ | - | $ | 199,591 | ||||||||
U.S. Treasuries securities | 10,082 | - | - | 10,082 | ||||||||||||
Obligations of state and | ||||||||||||||||
political subdivisions | - | 102,863 | - | 102,863 | ||||||||||||
Corporate obligations | - | 14,565 | - | 14,565 | ||||||||||||
Mortgage-backed securities in | ||||||||||||||||
government sponsored entities | - | 30,204 | - | 30,204 | ||||||||||||
Equity securities in financial institutions | 2,432 | - | - | 2,432 |
June 30, 2017 | Level I | Level II | Level III | Total | ||||||||||||
Fair value measurements on a recurring basis: | ||||||||||||||||
Assets | ||||||||||||||||
Securities available for sale: | ||||||||||||||||
U.S. agency securities | $ | - | $ | 142,750 | $ | - | $ | 142,750 | ||||||||
Obligations of state and | ||||||||||||||||
political subdivisions | - | 86,216 | - | 86,216 | ||||||||||||
Corporate obligations | - | 3,111 | - | 3,111 | ||||||||||||
Mortgage-backed securities in | ||||||||||||||||
government sponsored entities | - | 41,460 | - | 41,460 | ||||||||||||
Equity securities in financial institutions | 1,671 | - | - | 1,671 |
December 31, 2016 | Level I | Level II | Level III | Total | ||||||||||||
Fair value measurements on a recurring basis: | ||||||||||||||||
Securities available for sale: | ||||||||||||||||
U.S. agency securities | $ | - | $ | 170,414 | $ | - | $ | 170,414 | ||||||||
U.S. treasury securities | 3,000 | - | - | 3,000 | ||||||||||||
Obligations of state and | ||||||||||||||||
political subdivisions | - | 96,926 | - | 96,926 | ||||||||||||
Corporate obligations | - | 3,050 | - | 3,050 | ||||||||||||
Mortgage-backed securities in | ||||||||||||||||
government sponsored entities | - | 37,728 | - | 37,728 | ||||||||||||
Equity securities in financial institutions | 2,899 | - | - | 2,899 |
June 30, 2016 | Level I | Level II | Level III | Total | ||||||||||||||||||||||||||||
June 30, 2017 | Level I | Level II | Level III | Total | ||||||||||||||||||||||||||||
Impaired Loans | $ | - | $ | - | $ | 989 | $ | 989 | $ | - | $ | - | $ | 2,756 | $ | 2,756 | ||||||||||||||||
Other real estate owned | - | - | 1,007 | 1,007 | - | - | 1,102 | 1,102 | ||||||||||||||||||||||||
December 31, 2015 | ||||||||||||||||||||||||||||||||
December 31, 2016 | ||||||||||||||||||||||||||||||||
Impaired Loans | $ | - | $ | - | $ | 894 | $ | 894 | $ | - | $ | - | $ | 2,033 | $ | 2,033 | ||||||||||||||||
Other real estate owned | - | - | 1,197 | 1,197 | - | - | 839 | 839 |
· | Impaired Loans - The Company has measured impairment on impaired loans generally based on the fair value of the loan's collateral. Fair value is generally determined based upon independent third-party appraisals of the properties. In some cases, management may adjust the appraised value due to the age of the appraisal, changes in market conditions, or observable deterioration of the property since the appraisal was completed. Additionally, management makes estimates about expected costs to sell the property which are also included in the net realizable value. If the fair value of the collateral dependent loan is less than the carrying amount of the loan a specific reserve for the loan is made in the allowance for loan losses or a charge-off is taken to reduce the loan to the fair value of the collateral (less estimated selling costs) and the loan is included in the table above as a Level III measurement. If the fair value of the collateral exceeds the carrying amount of the loan, then the loan is not included in the table above as it is not |
· | Other Real Estate |
Quantitative Information about Level 3 Fair Value Measurements | ||||||||||||||||||||||||||||
June 30, 2016 | Fair Value | Valuation Technique(s) | Unobservable input | Range | Weighted average | |||||||||||||||||||||||
Quantitative Information about Level III Fair Value Measurements | Quantitative Information about Level III Fair Value Measurements | |||||||||||||||||||||||||||
June 30, 2017 | Fair Value | Valuation Technique(s) | Unobservable input | Range | Weighted average | |||||||||||||||||||||||
Impaired Loans | $ | 989 | Appraised Collateral Values | Discount to appraised value | 0-75 | % | 36.64 | % | $ | 2,756 | Appraised Collateral Values | Discount for time since appraisal | 0-100 | % | 27.23 | % | ||||||||||||
Selling costs | 5%-10 | % | 8.18 | % | Selling costs | 5%-9 | % | 7.59 | % | |||||||||||||||||||
Holding period | 0 - 12 months | 10 months | Holding period | 0 - 24 months | 11.8 months | |||||||||||||||||||||||
Other real estate owned | 1,007 | Appraised Collateral Values | Discount to appraised value | 0-37 | % | 24.70 | % | 1,102 | Appraised Collateral Values | Discount for time since appraisal | 12-47 | % | 21.75 | % | ||||||||||||||
December 31, 2015 | Fair Value | Valuation Technique(s) | Unobservable input | Range | ||||||||||||||||||||||||
Impaired Loans | 894 | Appraised Collateral Values | Discount to appraised value | 0-70 | % | 46.50 | % | |||||||||||||||||||||
Selling costs | 4%-10 | % | 7.75 | % | ||||||||||||||||||||||||
Holding period | 0 - 12 months | 10 months | ||||||||||||||||||||||||||
Other real estate owned | 1,197 | Appraised Collateral Values | Discount to appraised value | 0-75 | % | 25 | % |
December 31, 2016 | Fair Value | Valuation Technique(s) | Unobservable input | Range | Weighted average | |||||||||
Impaired Loans | 2,033 | Appraised Collateral Values | Discount for time since appraisal | 0-65 | % | 28.98 | % | |||||||
Selling costs | 5%-9 | % | 7.56 | % | ||||||||||
Holding period | 6 - 12 months | 11 months | ||||||||||||
Other real estate owned | 839 | Appraised Collateral Values | Discount for time since appraisal | 10-67 | % | 25.45 | % |
Carrying | ||||||||||||||||||||
June 30, 2016 | Amount | Fair Value | Level I | Level II | Level III | |||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and due from banks | $ | 26,822 | $ | 26,822 | $ | 26,822 | $ | - | $ | - | ||||||||||
Interest bearing time deposits with other banks | 6,954 | 6,961 | - | - | 6,961 | |||||||||||||||
Available-for-sale securities | 360,944 | 360,944 | 7,567 | 353,377 | ||||||||||||||||
Loans held for sale | 1,304 | 1,304 | 1,304 | |||||||||||||||||
Net loans | 701,756 | 726,584 | - | - | 726,584 | |||||||||||||||
Bank owned life insurance | 25,877 | 25,877 | 25,877 | - | - | |||||||||||||||
Regulatory stock | 3,407 | 3,407 | 3,407 | - | - | |||||||||||||||
Accrued interest receivable | 4,176 | 4,176 | 4,176 | - | - | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | $ | 1,003,482 | $ | 1,005,158 | $ | 734,593 | $ | - | $ | 270,565 | ||||||||||
Borrowed funds | 38,786 | 37,240 | - | - | 37,240 | |||||||||||||||
Accrued interest payable | 644 | 644 | 644 | - | - | |||||||||||||||
Carrying | ||||||||||||||||||||
December 31, 2015 | Amount | Fair Value | Level I | Level II | Level III | |||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and due from banks | $ | 24,384 | $ | 24,384 | $ | 24,384 | $ | - | $ | - | ||||||||||
Interest bearing time deposits with other banks | 7,696 | 7,705 | - | - | 7,705 | |||||||||||||||
Available-for-sale securities | 359,737 | 359,737 | 12,514 | 347,223 | - | |||||||||||||||
Loans held for sale | 603 | 603 | 603 | |||||||||||||||||
Net loans | 687,925 | 712,524 | - | - | 712,524 | |||||||||||||||
Bank owned life insurance | 25,535 | 25,535 | 25,535 | - | - | |||||||||||||||
Regulatory stock | 3,459 | 3,459 | 3,459 | - | - | |||||||||||||||
Accrued interest receivable | 4,211 | 4,211 | 4,211 | - | - | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | $ | 988,031 | $ | 987,542 | $ | 706,121 | $ | - | $ | 281,421 | ||||||||||
Borrowed funds | 41,631 | 38,863 | 1,598 | - | 37,265 | |||||||||||||||
Accrued interest payable | 734 | 734 | 734 | - |
Carrying | ||||||||||||||||||||
June 30, 2017 | Amount | Fair Value | Level I | Level II | Level III | |||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and due from banks | $ | 19,362 | $ | 19,362 | $ | 19,362 | $ | - | $ | - | ||||||||||
Interest bearing time deposits with other banks | 8,791 | 8,791 | - | - | 8,791 | |||||||||||||||
Available-for-sale securities | 275,208 | 275,208 | 1,671 | 273,537 | ||||||||||||||||
Loans held for sale | 393 | 393 | 393 | |||||||||||||||||
Net loans | 878,070 | 878,901 | - | - | 878,901 | |||||||||||||||
Bank owned life insurance | 26,556 | 26,556 | 26,556 | - | - | |||||||||||||||
Regulatory stock | 4,490 | 4,490 | 4,490 | - | - | |||||||||||||||
Accrued interest receivable | 3,697 | 3,697 | 3,697 | - | - | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | $ | 1,051,209 | $ | 1,049,833 | $ | 791,387 | $ | - | $ | 258,446 | ||||||||||
Borrowed funds | 69,998 | 68,503 | 30,396 | - | 38,107 | |||||||||||||||
Accrued interest payable | 628 | 628 | 628 | - | - |
December 31, 2016 | ||||||||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and due from banks | $ | 17,754 | $ | 17,754 | $ | 17,754 | $ | - | $ | - | ||||||||||
Interest bearing time deposits with other banks | 6,955 | 6,960 | - | - | 6,960 | |||||||||||||||
Available-for-sale securities | 314,017 | 314,017 | 5,899 | 308,118 | - | |||||||||||||||
Loans held for sale | 1,827 | 1,827 | 1,827 | |||||||||||||||||
Net loans | 790,725 | 797,184 | - | - | 797,184 | |||||||||||||||
Bank owned life insurance | 26,223 | 26,223 | 26,223 | - | - | |||||||||||||||
Regulatory stock | 5,306 | 5,306 | 5,306 | - | - | |||||||||||||||
Accrued interest receivable | 4,089 | 4,089 | 4,089 | - | - | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | $ | 1,005,503 | $ | 1,004,072 | $ | 740,889 | $ | - | $ | 263,183 | ||||||||||
Borrowed funds | 79,662 | 77,425 | 41,330 | - | 36,095 | |||||||||||||||
Accrued interest payable | 720 | 720 | 720 | - |
· | Interest rates could change more rapidly or more significantly than we expect. |
· | The economy could change significantly in an unexpected way, which would cause the demand for new loans and the ability of borrowers to repay outstanding loans to change in ways that our models do not anticipate. |
· | The financial markets could suffer a significant disruption, which may have a negative effect on our financial condition and that of our borrowers, and on our ability to raise money by issuing new securities. |
· | It could take us longer than we anticipate to implement strategic initiatives designed to increase revenues or manage expenses, or we may be unable to implement those initiatives at all. |
· | We may not be able to successfully integrate businesses we acquire or be able to fully realize the expected financial and other benefits from acquisitions. |
· | Acquisitions and dispositions of assets could affect us in ways that management has not anticipated. |
· | We may become subject to new legal obligations or the resolution of litigation may have a negative effect on our financial condition or operating results. |
· | We may become subject to new and unanticipated accounting, tax, or regulatory practices or requirements. |
· | We could experience greater loan delinquencies than anticipated, adversely affecting our earnings and financial condition. We could also experience greater losses than expected due to the ever increasing volume of information theft and fraudulent scams impacting our customers and the banking industry. |
· | We could lose the services of some or all of our key personnel, which would negatively impact our business because of their business development skills, financial expertise, lending experience, technical expertise and market area knowledge. |
· | The agricultural economy is subject to extreme swings in both the costs of resources and the prices received from the sale of products, which could negatively impact our customers. |
· |
· | Companies providing support services related to the exploration and drilling of the natural gas reserves in our market area may be affected by federal, state and local laws and regulations such as restrictions on production, permitting, changes in taxes and environmental protection, which could negatively impact our customers and, as a result, negatively impact our loan and deposit volume and loan quality. Additionally, the activities |
Analysis of Average Balances and Interest Rates (1) | ||||||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||
June 30, 2016 | June 30, 2015 | |||||||||||||||||||||||
Average | Average | Average | Average | |||||||||||||||||||||
Balance (1) | Interest | Rate | Balance (1) | Interest | Rate | |||||||||||||||||||
(dollars in thousands) | $ | $ | % | $ | $ | % | ||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Short-term investments: | ||||||||||||||||||||||||
Interest-bearing deposits at banks | 32,770 | 65 | 0.40 | 14,331 | 12 | 0.17 | ||||||||||||||||||
Total short-term investments | 32,770 | 65 | 0.40 | 14,331 | 12 | 0.17 | ||||||||||||||||||
Interest bearing time deposits at banks | 7,513 | 70 | 1.89 | 5,960 | 58 | 1.97 | ||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||
Taxable | 263,302 | 2,044 | 1.55 | 195,079 | 1,652 | 1.69 | ||||||||||||||||||
Tax-exempt (3) | 100,766 | 2,313 | 4.59 | 99,925 | 2,498 | 5.00 | ||||||||||||||||||
Total investment securities | 364,068 | 4,357 | 2.39 | 295,004 | 4,150 | 2.81 | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||
Residential mortgage loans | 202,813 | 5,337 | 5.29 | 183,827 | 5,057 | 5.55 | ||||||||||||||||||
Construction | 11,247 | 286 | 5.12 | 6,313 | 160 | 5.11 | ||||||||||||||||||
Commercial & agricultural loans | 371,026 | 9,627 | 5.22 | 280,823 | 7,377 | 5.30 | ||||||||||||||||||
Loans to state & political subdivisions | 103,707 | 2,201 | 4.27 | 83,055 | 1,853 | 4.50 | ||||||||||||||||||
Other loans | 11,103 | 449 | 8.13 | 8,120 | 322 | 8.00 | ||||||||||||||||||
Loans, net of discount (2)(3)(4) | 699,896 | 17,900 | 5.14 | 562,138 | 14,769 | 5.30 | ||||||||||||||||||
Total interest-earning assets | 1,104,247 | 22,392 | 4.08 | 877,433 | 18,989 | 4.36 | ||||||||||||||||||
Cash and due from banks | 7,352 | 3,933 | ||||||||||||||||||||||
Bank premises and equipment | 17,264 | 12,579 | ||||||||||||||||||||||
Other assets | 57,268 | 35,788 | ||||||||||||||||||||||
Total non-interest earning assets | 81,884 | 52,300 | ||||||||||||||||||||||
Total assets | 1,186,131 | 929,733 | ||||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
NOW accounts | 303,297 | 468 | 0.31 | 231,106 | 407 | 0.36 | ||||||||||||||||||
Savings accounts | 174,141 | 93 | 0.11 | 112,734 | 67 | 0.12 | ||||||||||||||||||
Money market accounts | 114,478 | 257 | 0.45 | 94,474 | 219 | 0.47 | ||||||||||||||||||
Certificates of deposit | 275,925 | 1,328 | 0.97 | 249,866 | 1,351 | 1.09 | ||||||||||||||||||
Total interest-bearing deposits | 867,841 | 2,146 | 0.50 | 688,180 | 2,044 | 0.60 | ||||||||||||||||||
Other borrowed funds | 39,500 | 366 | 1.86 | 33,603 | 347 | 2.08 | ||||||||||||||||||
Total interest-bearing liabilities | 907,341 | 2,512 | 0.56 | 721,783 | 2,391 | 0.67 | ||||||||||||||||||
Demand deposits | 144,198 | 97,498 | ||||||||||||||||||||||
Other liabilities | 12,487 | 8,813 | ||||||||||||||||||||||
Total non-interest-bearing liabilities | 156,685 | 106,311 | ||||||||||||||||||||||
Stockholders' equity | 122,105 | 101,639 | ||||||||||||||||||||||
Total liabilities & stockholders' equity | 1,186,131 | 929,733 | ||||||||||||||||||||||
Net interest income | 19,880 | 16,598 | ||||||||||||||||||||||
Net interest spread (5) | 3.52 | % | 3.69 | % | ||||||||||||||||||||
Net interest income as a percentage | ||||||||||||||||||||||||
of average interest-earning assets | 3.62 | % | 3.81 | % | ||||||||||||||||||||
Ratio of interest-earning assets | ||||||||||||||||||||||||
to interest-bearing liabilities | 122 | % | 122 | % | ||||||||||||||||||||
(1) Averages are based on daily averages. | ||||||||||||||||||||||||
(2) Includes loan origination and commitment fees. | ||||||||||||||||||||||||
(3) Tax exempt interest revenue is shown on a tax equivalent basis for proper comparison using | ||||||||||||||||||||||||
a statutory federal income tax rate of 34%. | ||||||||||||||||||||||||
(4) Income on non-accrual loans is accounted for on a cash basis, and the loan balances are included in interest-earning assets. | ||||||||||||||||||||||||
(5) Interest rate spread represents the difference between the average rate earned on interest-earning assets | ||||||||||||||||||||||||
and the average rate paid on interest-bearing liabilities. |
Analysis of Average Balances and Interest Rates (1) | Analysis of Average Balances and Interest Rates (1) | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2016 | June 30, 2015 | June 30, 2017 | June 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||
Average | Average | Average | Average | Average | Average | Average | Average | |||||||||||||||||||||||||||||||||||||||||
Balance (1) | Interest | Rate | Balance (1) | Interest | Rate | Balance (1) | Interest | Rate | Balance (1) | Interest | Rate | |||||||||||||||||||||||||||||||||||||
(dollars in thousands) | $ | $ | % | $ | $ | % | $ | $ | % | $ | $ | % | ||||||||||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||||||||||||||||||
Short-term investments: | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits at banks | 31,880 | 30 | 0.38 | 19,879 | 10 | 0.19 | 9,106 | 9 | 0.20 | 32,770 | 65 | 0.40 | ||||||||||||||||||||||||||||||||||||
Total short-term investments | 31,880 | 30 | 0.38 | 19,879 | 10 | 0.19 | 9,106 | 9 | 0.20 | 32,770 | 65 | 0.40 | ||||||||||||||||||||||||||||||||||||
Interest bearing time deposits at banks | 7,332 | 34 | 1.85 | 5,960 | 29 | 1.97 | 7,123 | 71 | 2.01 | 7,513 | 70 | 1.89 | ||||||||||||||||||||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Taxable | 258,197 | 1,020 | 1.58 | 188,736 | 799 | 1.69 | 202,316 | 1,708 | 1.69 | 263,302 | 2,044 | 1.55 | ||||||||||||||||||||||||||||||||||||
Tax-exempt (3) | 101,428 | 1,144 | 4.51 | 97,443 | 1,212 | 4.98 | 87,491 | 1,922 | 4.39 | 100,766 | 2,313 | 4.59 | ||||||||||||||||||||||||||||||||||||
Total investment securities | 359,625 | 2,164 | 2.41 | 286,179 | 2,011 | 2.87 | 289,807 | 3,630 | 2.51 | 364,068 | 4,357 | 2.39 | ||||||||||||||||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage loans | 203,091 | 2,665 | 5.28 | 183,251 | 2,519 | 5.51 | 206,018 | 5,291 | 5.18 | 202,813 | 5,337 | 5.29 | ||||||||||||||||||||||||||||||||||||
Construction | 9,198 | 121 | 5.29 | 6,912 | 89 | 5.15 | 27,198 | 574 | 4.25 | 11,247 | 286 | 5.12 | ||||||||||||||||||||||||||||||||||||
Commercial & farm loans | 376,795 | 4,865 | 5.19 | 285,580 | 3,730 | 5.24 | ||||||||||||||||||||||||||||||||||||||||||
Commercial & agricultural loans | 507,172 | 12,358 | 4.91 | 371,026 | 9,627 | 5.22 | ||||||||||||||||||||||||||||||||||||||||||
Loans to state & political subdivisions | 101,348 | 1,058 | 4.20 | 84,776 | 936 | 4.43 | 96,818 | 2,026 | 4.22 | 103,707 | 2,201 | 4.27 | ||||||||||||||||||||||||||||||||||||
Other loans | 10,975 | 220 | 8.07 | 8,064 | 160 | 7.94 | 10,394 | 415 | 8.04 | 11,103 | 449 | 8.13 | ||||||||||||||||||||||||||||||||||||
Loans, net of discount (2)(3)(4) | 701,407 | 8,929 | 5.12 | 568,583 | 7,434 | 5.24 | 847,600 | 20,664 | 4.92 | 699,896 | 17,900 | 5.14 | ||||||||||||||||||||||||||||||||||||
Total interest-earning assets | 1,100,244 | 11,157 | 4.08 | 880,601 | 9,484 | 4.32 | 1,153,636 | 24,374 | 4.26 | 1,104,247 | 22,392 | 4.08 | ||||||||||||||||||||||||||||||||||||
Cash and due from banks | 7,530 | 3,988 | 6,604 | 7,352 | ||||||||||||||||||||||||||||||||||||||||||||
Bank premises and equipment | 17,236 | 12,611 | 16,947 | 17,264 | ||||||||||||||||||||||||||||||||||||||||||||
Other assets | 64,904 | 41,736 | 55,850 | 57,268 | ||||||||||||||||||||||||||||||||||||||||||||
Total non-interest earning assets | 89,670 | 58,335 | 79,401 | 81,884 | ||||||||||||||||||||||||||||||||||||||||||||
Total assets | 1,189,914 | 938,936 | 1,233,037 | 1,186,131 | ||||||||||||||||||||||||||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | LIABILITIES AND STOCKHOLDERS' EQUITY | LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||
NOW accounts | 310,640 | 243 | 0.31 | 236,864 | 209 | 0.35 | 319,387 | 534 | 0.34 | 303,297 | 468 | 0.31 | ||||||||||||||||||||||||||||||||||||
Savings accounts | 173,176 | 46 | 0.11 | 114,764 | 35 | 0.12 | 177,746 | 92 | 0.10 | 174,141 | 93 | 0.11 | ||||||||||||||||||||||||||||||||||||
Money market accounts | 113,373 | 126 | 0.45 | 94,609 | 109 | 0.46 | 122,943 | 290 | 0.48 | 114,478 | 257 | 0.45 | ||||||||||||||||||||||||||||||||||||
Certificates of deposit | 272,809 | 657 | 0.97 | 250,091 | 682 | 1.09 | 261,942 | 1,272 | 0.98 | 275,925 | 1,328 | 0.97 | ||||||||||||||||||||||||||||||||||||
Total interest-bearing deposits | 869,998 | 1,072 | 0.50 | 696,328 | 1,035 | 0.60 | 882,018 | 2,188 | 0.50 | 867,841 | 2,146 | 0.50 | ||||||||||||||||||||||||||||||||||||
Other borrowed funds | 39,369 | 183 | 1.87 | 30,849 | 172 | 2.24 | 57,348 | 489 | 1.72 | 39,500 | 366 | 1.86 | ||||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 909,367 | 1,255 | 0.55 | 727,177 | 1,207 | 0.67 | 939,366 | 2,677 | 0.57 | 907,341 | 2,512 | 0.56 | ||||||||||||||||||||||||||||||||||||
Demand deposits | 145,164 | 100,865 | 151,396 | 144,198 | ||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 12,642 | 8,441 | 14,846 | 12,487 | ||||||||||||||||||||||||||||||||||||||||||||
Total non-interest-bearing liabilities | 157,806 | 109,306 | 166,242 | 156,685 | ||||||||||||||||||||||||||||||||||||||||||||
Stockholders' equity | 122,741 | 102,453 | 127,429 | 122,105 | ||||||||||||||||||||||||||||||||||||||||||||
Total liabilities & stockholders' equity | 1,189,914 | 938,936 | 1,233,037 | 1,186,131 | ||||||||||||||||||||||||||||||||||||||||||||
Net interest income | 9,902 | 8,277 | 21,697 | 19,880 | ||||||||||||||||||||||||||||||||||||||||||||
Net interest spread (5) | 3.53 | % | 3.65 | % | 3.69 | % | 3.52 | % | ||||||||||||||||||||||||||||||||||||||||
Net interest income as a percentage | ||||||||||||||||||||||||||||||||||||||||||||||||
of average interest-earning assets | 3.62 | % | 3.77 | % | 3.79 | % | 3.62 | % | ||||||||||||||||||||||||||||||||||||||||
Ratio of interest-earning assets | ||||||||||||||||||||||||||||||||||||||||||||||||
to interest-bearing liabilities | 121 | % | 121 | % | 123 | % | 122 | % | ||||||||||||||||||||||||||||||||||||||||
(1) Averages are based on daily averages. | (1) Averages are based on daily averages. | (1) Averages are based on daily averages. | ||||||||||||||||||||||||||||||||||||||||||||||
(2) Includes loan origination and commitment fees. | (2) Includes loan origination and commitment fees. | (2) Includes loan origination and commitment fees. | ||||||||||||||||||||||||||||||||||||||||||||||
(3) Tax exempt interest revenue is shown on a tax equivalent basis for proper comparison using | (3) Tax exempt interest revenue is shown on a tax equivalent basis for proper comparison using | (3) Tax exempt interest revenue is shown on a tax equivalent basis for proper comparison using | ||||||||||||||||||||||||||||||||||||||||||||||
a statutory federal income tax rate of 34%. | a statutory federal income tax rate of 34%. | a statutory federal income tax rate of 34%. | ||||||||||||||||||||||||||||||||||||||||||||||
(4) Income on non-accrual loans is accounted for on a cash basis, and the loan balances are included in interest-earning assets. | (4) Income on non-accrual loans is accounted for on a cash basis, and the loan balances are included in interest-earning assets. | (4) Income on non-accrual loans is accounted for on a cash basis, and the loan balances are included in interest-earning assets. | ||||||||||||||||||||||||||||||||||||||||||||||
(5) Interest rate spread represents the difference between the average rate earned on interest-earning assets | (5) Interest rate spread represents the difference between the average rate earned on interest-earning assets | (5) Interest rate spread represents the difference between the average rate earned on interest-earning assets | ||||||||||||||||||||||||||||||||||||||||||||||
and the average rate paid on interest-bearing liabilities. | and the average rate paid on interest-bearing liabilities. | and the average rate paid on interest-bearing liabilities. |
Analysis of Average Balances and Interest Rates (1) | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
June 30, 2017 | June 30, 2016 | |||||||||||||||||||||||
Average | Average | Average | Average | |||||||||||||||||||||
Balance (1) | Interest | Rate | Balance (1) | Interest | Rate | |||||||||||||||||||
(dollars in thousands) | $ | $ | % | $ | $ | % | ||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Short-term investments: | ||||||||||||||||||||||||
Interest-bearing deposits at banks | 10,552 | 7 | 0.23 | 31,880 | 30 | 0.38 | ||||||||||||||||||
Total short-term investments | 10,552 | 7 | 0.23 | 31,880 | 30 | 0.38 | ||||||||||||||||||
Interest bearing time deposits at banks | 7,374 | 38 | 2.03 | 7,332 | 34 | 1.85 | ||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||
Taxable | 186,983 | 828 | 1.77 | 258,197 | 1,020 | 1.58 | ||||||||||||||||||
Tax-exempt (3) | 84,235 | 909 | 4.32 | 101,428 | 1,144 | 4.51 | ||||||||||||||||||
Total investment securities | 271,218 | 1,737 | 2.56 | 359,625 | 2,164 | 2.41 | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||
Residential mortgage loans | 206,057 | 2,657 | 5.17 | 203,091 | 2,665 | 5.28 | ||||||||||||||||||
Construction | 26,258 | 269 | 4.12 | 9,198 | 121 | 5.29 | ||||||||||||||||||
Commercial & agricultural loans | 528,789 | 6,479 | 4.91 | 376,795 | 4,865 | 5.19 | ||||||||||||||||||
Loans to state & political subdivisions | 96,461 | 1,014 | 4.22 | 101,348 | 1,058 | 4.20 | ||||||||||||||||||
Other loans | 10,294 | 206 | 8.03 | 10,975 | 220 | 8.07 | ||||||||||||||||||
Loans, net of discount (2)(3)(4) | 867,859 | 10,625 | 4.91 | 701,407 | 8,929 | 5.12 | ||||||||||||||||||
Total interest-earning assets | 1,157,003 | 12,407 | 4.30 | 1,100,244 | 11,157 | 4.08 | ||||||||||||||||||
Cash and due from banks | 6,538 | 7,530 | ||||||||||||||||||||||
Bank premises and equipment | 16,888 | 17,236 | ||||||||||||||||||||||
Other assets | 62,907 | 64,904 | ||||||||||||||||||||||
Total non-interest earning assets | 86,333 | 89,670 | ||||||||||||||||||||||
Total assets | 1,243,336 | 1,189,914 | ||||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
NOW accounts | 328,055 | 294 | 0.36 | 310,640 | 243 | 0.31 | ||||||||||||||||||
Savings accounts | 180,042 | 47 | 0.10 | 173,176 | 46 | 0.11 | ||||||||||||||||||
Money market accounts | 128,931 | 160 | 0.50 | 113,373 | 126 | 0.45 | ||||||||||||||||||
Certificates of deposit | 261,368 | 642 | 0.98 | 272,809 | 657 | 0.97 | ||||||||||||||||||
Total interest-bearing deposits | 898,396 | 1,143 | 0.51 | 869,998 | 1,072 | 0.50 | ||||||||||||||||||
Other borrowed funds | 45,969 | 231 | 2.02 | 39,369 | 183 | 1.87 | ||||||||||||||||||
Total interest-bearing liabilities | 944,365 | 1,374 | 0.58 | 909,367 | 1,255 | 0.55 | ||||||||||||||||||
Demand deposits | 155,724 | 145,164 | ||||||||||||||||||||||
Other liabilities | 14,820 | 12,642 | ||||||||||||||||||||||
Total non-interest-bearing liabilities | 170,544 | 157,806 | ||||||||||||||||||||||
Stockholders' equity | 128,427 | 122,741 | ||||||||||||||||||||||
Total liabilities & stockholders' equity | 1,243,336 | 1,189,914 | ||||||||||||||||||||||
Net interest income | 11,033 | 9,902 | ||||||||||||||||||||||
Net interest spread (5) | 3.72 | % | 3.53 | % | ||||||||||||||||||||
Net interest income as a percentage | ||||||||||||||||||||||||
of average interest-earning assets | 3.82 | % | 3.62 | % | ||||||||||||||||||||
Ratio of interest-earning assets | ||||||||||||||||||||||||
to interest-bearing liabilities | 123 | % | 121 | % | ||||||||||||||||||||
(1) Averages are based on daily averages. | ||||||||||||||||||||||||
(2) Includes loan origination and commitment fees. | ||||||||||||||||||||||||
(3) Tax exempt interest revenue is shown on a tax equivalent basis for proper comparison using | ||||||||||||||||||||||||
a statutory federal income tax rate of 34%. | ||||||||||||||||||||||||
(4) Income on non-accrual loans is accounted for on a cash basis, and the loan balances are included in interest-earning assets. | ||||||||||||||||||||||||
(5) Interest rate spread represents the difference between the average rate earned on interest-earning assets | ||||||||||||||||||||||||
and the average rate paid on interest-bearing liabilities. |
For the Three Months | For the Six Months | |||||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Interest and dividend income from investment securities | ||||||||||||||||
and interest bearing deposits at banks (non-tax adjusted) | $ | 1,839 | $ | 1,639 | $ | 3,705 | $ | 3,371 | ||||||||
Tax equivalent adjustment | 389 | 411 | 787 | 849 | ||||||||||||
Interest and dividend income from investment securities | ||||||||||||||||
and interest bearing deposits at banks (tax equivalent basis) | $ | 2,228 | $ | 2,050 | $ | 4,492 | $ | 4,220 | ||||||||
Interest and fees on loans (non-tax adjusted) | $ | 8,587 | $ | 7,129 | $ | 17,183 | $ | 14,168 | ||||||||
Tax equivalent adjustment | 342 | 305 | 717 | 601 | ||||||||||||
Interest and fees on loans (tax equivalent basis) | $ | 8,929 | $ | 7,434 | $ | 17,900 | $ | 14,769 | ||||||||
Total interest income | $ | 10,426 | $ | 8,768 | $ | 20,888 | $ | 17,539 | ||||||||
Total interest expense | 1,255 | 1,207 | 2,512 | 2,391 | ||||||||||||
Net interest income | 9,171 | 7,561 | 18,376 | 15,148 | ||||||||||||
Total tax equivalent adjustment | 731 | 716 | 1,504 | 1,450 | ||||||||||||
Net interest income (tax equivalent basis) | $ | 9,902 | $ | 8,277 | $ | 19,880 | $ | 16,598 |
For the Three Months | For the Six Months | |||||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Interest and dividend income from investment securities | ||||||||||||||||
and interest bearing deposits at banks (non-tax adjusted) | $ | 1,474 | $ | 1,839 | $ | 3,057 | $ | 3,705 | ||||||||
Tax equivalent adjustment | 308 | 389 | 653 | 787 | ||||||||||||
Interest and dividend income from investment securities | ||||||||||||||||
and interest bearing deposits at banks (tax equivalent basis) | $ | 1,782 | $ | 2,228 | $ | 3,710 | $ | 4,492 | ||||||||
Interest and fees on loans (non-tax adjusted) | $ | 10,304 | $ | 8,587 | $ | 20,021 | $ | 17,183 | ||||||||
Tax equivalent adjustment | 321 | 342 | 643 | 717 | ||||||||||||
Interest and fees on loans (tax equivalent basis) | $ | 10,625 | $ | 8,929 | $ | 20,664 | $ | 17,900 | ||||||||
Total interest income | $ | 11,778 | $ | 10,426 | $ | 23,078 | $ | 20,888 | ||||||||
Total interest expense | 1,374 | 1,255 | 2,677 | 2,512 | ||||||||||||
Net interest income | 10,404 | 9,171 | 20,401 | 18,376 | ||||||||||||
Total tax equivalent adjustment | 629 | 731 | 1,296 | 1,504 | ||||||||||||
Net interest income (tax equivalent basis) | $ | 11,033 | $ | 9,902 | $ | 21,697 | $ | 19,880 |
Three months ended June 30, 2016 vs. 2015 (1) | Six months ended June 30, 2016 vs. 2015 (1) | Three months ended June 30, 2017 vs 2016 (1) | Six months ended June 30, 2017 vs. 2016 (1) | |||||||||||||||||||||||||||||||||||||||||||||
Change in | Change | Total | Change in | Change | Total | Change in | Change | Total | Change in | Change | Total | |||||||||||||||||||||||||||||||||||||
Volume | in Rate | Change | Volume | in Rate | Change | Volume | in Rate | Change | Volume | in Rate | Change | |||||||||||||||||||||||||||||||||||||
Interest Income: | ||||||||||||||||||||||||||||||||||||||||||||||||
Short-term investments: | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits at banks | $ | 7 | $ | 13 | $ | 20 | $ | 26 | $ | 27 | $ | 53 | $ | (15 | ) | $ | (8 | ) | $ | (23 | ) | $ | (33 | ) | $ | (23 | ) | $ | (56 | ) | ||||||||||||||||||
Interest bearing time deposits at banks | 7 | (2 | ) | 5 | 14 | (2 | ) | 12 | 1 | 3 | 4 | (3 | ) | 4 | 1 | |||||||||||||||||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Taxable | 270 | (49 | ) | 221 | 515 | (123 | ) | 392 | (343 | ) | 151 | (192 | ) | (540 | ) | 204 | (336 | ) | ||||||||||||||||||||||||||||||
Tax-exempt | 53 | (121 | ) | (68 | ) | 21 | (206 | ) | (185 | ) | (187 | ) | (48 | ) | (235 | ) | (295 | ) | (96 | ) | (391 | ) | ||||||||||||||||||||||||||
Total investments | 323 | (170 | ) | 153 | 536 | (329 | ) | 207 | (530 | ) | 103 | (427 | ) | (835 | ) | 108 | (727 | ) | ||||||||||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage loans | 246 | (100 | ) | 146 | 494 | (214 | ) | 280 | 49 | (57 | ) | (8 | ) | 75 | (121 | ) | (46 | ) | ||||||||||||||||||||||||||||||
Construction | 29 | 3 | 32 | 125 | 1 | 126 | 168 | (20 | ) | 148 | 327 | (39 | ) | 288 | ||||||||||||||||||||||||||||||||||
Commercial & agricultural loans | 1,167 | (32 | ) | 1,135 | 2,360 | (110 | ) | 2,250 | 1,860 | (246 | ) | 1,614 | 3,252 | (521 | ) | 2,731 | ||||||||||||||||||||||||||||||||
Loans to state & political subdivisions | 167 | (45 | ) | 122 | 437 | (89 | ) | 348 | (49 | ) | 5 | (44 | ) | (150 | ) | (25 | ) | (175 | ) | |||||||||||||||||||||||||||||
Other loans | 57 | 3 | 60 | 121 | 6 | 127 | (13 | ) | (1 | ) | (14 | ) | (29 | ) | (5 | ) | (34 | ) | ||||||||||||||||||||||||||||||
Total loans, net of discount | 1,666 | (171 | ) | 1,495 | 3,537 | (406 | ) | 3,131 | 2,015 | (319 | ) | 1,696 | 3,475 | (711 | ) | 2,764 | ||||||||||||||||||||||||||||||||
Total Interest Income | 2,003 | (330 | ) | 1,673 | 4,113 | (710 | ) | 3,403 | 1,471 | (221 | ) | 1,250 | 2,604 | (622 | ) | 1,982 | ||||||||||||||||||||||||||||||||
Interest Expense: | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||||||||||||||||||||||||||
NOW accounts | 53 | (19 | ) | 34 | 102 | (41 | ) | 61 | 15 | 36 | 51 | 25 | 41 | 66 | ||||||||||||||||||||||||||||||||||
Savings accounts | 15 | (4 | ) | 11 | 32 | (6 | ) | 26 | 2 | (1 | ) | 1 | 1 | (2 | ) | (1 | ) | |||||||||||||||||||||||||||||||
Money Market accounts | 20 | (3 | ) | 17 | 45 | (7 | ) | 38 | 19 | 15 | 34 | 19 | 14 | 33 | ||||||||||||||||||||||||||||||||||
Certificates of deposit | 86 | (111 | ) | (25 | ) | 350 | (373 | ) | (23 | ) | (27 | ) | 12 | (15 | ) | (71 | ) | 15 | (56 | ) | ||||||||||||||||||||||||||||
Total interest-bearing deposits | 174 | (137 | ) | 37 | 529 | (427 | ) | 102 | 9 | 62 | 71 | (26 | ) | 68 | 42 | |||||||||||||||||||||||||||||||||
Other borrowed funds | 28 | (17 | ) | 11 | 46 | (27 | ) | 19 | 33 | 15 | 48 | 149 | (26 | ) | 123 | |||||||||||||||||||||||||||||||||
Total interest expense | 202 | (154 | ) | 48 | 575 | (454 | ) | 121 | 42 | 77 | 119 | 123 | 42 | 165 | ||||||||||||||||||||||||||||||||||
Net interest income | $ | 1,801 | $ | (176 | ) | $ | 1,625 | $ | 3,538 | $ | (256 | ) | $ | 3,282 | $ | 1,429 | $ | (298 | ) | $ | 1,131 | $ | 2,481 | $ | (664 | ) | $ | 1,817 | ||||||||||||||||||||
(1) The portion of the total change attributable to both volume and rate changes, which can not be separated, has been allocated proportionally to the change due to volume and the change due to rate prior to allocation. | (1) The portion of the total change attributable to both volume and rate changes, which can not be separated, has been allocated proportionally to the change due to volume and the change due to rate prior to allocation. | (1) The portion of the total change attributable to both volume and rate changes, which can not be separated, has been allocated proportionally to the change due to volume and the change due to rate prior to allocation. | ||||||||||||||||||||||||||||||||||||||||||||||
· | The average balance of taxable securities |
· | The average balance of tax-exempt securities decreased by $13.3 million, which resulted in a decrease in investment income of $295,000. The yield on tax-exempt securities decreased |
· | The average balance of commercial and agricultural loans increased |
· | The average balance of construction loans increased $16.0 million from a year ago. This had a positive impact of $327,000 on total interest income due to volume. Offsetting this increase, there was a $39,000 decrease due to rate, as the |
· | The average balance of state and political subdivision loans |
· | Interest income on residential mortgage loans |
· | The average balance of interest bearing deposits increased |
· | The average balance of other borrowed funds increased $17.8 million from a year ago. This resulted in an increase in interest expense of |
$149,000. There was a decrease in the average rate on |
· | Total investment income |
· | Total loan interest income increased |
Six months ended June 30, | Change | Six months ended June 30, | Change | |||||||||||||||||||||||||||||
2016 | 2015 | Amount | % | 2017 | 2016 | Amount | % | |||||||||||||||||||||||||
Service charges | $ | 2,230 | $ | 2,004 | $ | 226 | 11.3 | $ | 2,178 | $ | 2,230 | $ | (52 | ) | (2.3 | ) | ||||||||||||||||
Trust | 378 | 374 | 4 | 1.1 | 409 | 378 | 31 | 8.2 | ||||||||||||||||||||||||
Brokerage and insurance | 367 | 382 | (15 | ) | (3.9 | ) | 305 | 367 | (62 | ) | (16.9 | ) | ||||||||||||||||||||
Gains on loans sold | 116 | 98 | 18 | 18.4 | 249 | 116 | 133 | 114.7 | ||||||||||||||||||||||||
Investment securities gains, net | 155 | 301 | (146 | ) | (48.5 | ) | 195 | 155 | 40 | 25.8 | ||||||||||||||||||||||
Earnings on bank owned life insurance | 342 | 306 | 36 | 11.8 | 333 | 342 | (9 | ) | (2.6 | ) | ||||||||||||||||||||||
Other | 311 | 218 | 93 | 42.7 | 254 | 311 | (57 | ) | (18.3 | ) | ||||||||||||||||||||||
Total | $ | 3,899 | $ | 3,683 | $ | 216 | 5.9 | $ | 3,923 | $ | 3,899 | $ | 24 | 0.6 |
Three months ended June 30, | Change | Three months ended June 30, | Change | |||||||||||||||||||||||||||||
2016 | 2015 | Amount | % | 2017 | 2016 | Amount | % | |||||||||||||||||||||||||
Service charges | $ | 1,128 | $ | 1,028 | $ | 100 | 9.7 | $ | 1,120 | $ | 1,128 | $ | (8 | ) | (0.7 | ) | ||||||||||||||||
Trust | 182 | 180 | 2 | 1.1 | 188 | 182 | 6 | 3.3 | ||||||||||||||||||||||||
Brokerage and insurance | 158 | 255 | (97 | ) | (38.0 | ) | 114 | 158 | (44 | ) | (27.8 | ) | ||||||||||||||||||||
Gains on loans sold | 70 | 60 | 10 | 16.7 | 148 | 70 | 78 | 111.4 | ||||||||||||||||||||||||
Investment securities gains, net | 128 | 175 | (47 | ) | (26.9 | ) | 23 | 128 | (105 | ) | (82.0 | ) | ||||||||||||||||||||
Earnings on bank owned life insurance | 172 | 154 | 18 | 11.7 | 167 | 172 | (5 | ) | (2.9 | ) | ||||||||||||||||||||||
Other | 145 | 103 | 42 | 40.8 | 128 | 145 | (17 | ) | (11.7 | ) | ||||||||||||||||||||||
Total | $ | 1,983 | $ | 1,955 | $ | 28 | 1.4 | $ | 1,888 | $ | 1,983 | $ | (95 | ) | (4.8 | ) |
Six months ended | ||||||||||||||||
June 30, | Change | |||||||||||||||
2016 | 2015 | Amount | % | |||||||||||||
Salaries and employee benefits | $ | 7,782 | $ | 6,049 | $ | 1,733 | 28.6 | |||||||||
Occupancy | 900 | 717 | 183 | 25.5 | ||||||||||||
Furniture and equipment | 328 | 215 | 113 | 52.6 | ||||||||||||
Professional fees | 553 | 412 | 141 | 34.2 | ||||||||||||
FDIC insurance | 317 | 232 | 85 | 36.6 | ||||||||||||
Pennsylvania shares tax | 390 | 401 | (11 | ) | (2.7 | ) | ||||||||||
Amortization of intangibles | 164 | - | 164 | NA | ||||||||||||
ORE expenses | 305 | 358 | (53 | ) | (14.8 | ) | ||||||||||
Other | 3,474 | 2,379 | 1,095 | 46.0 | ||||||||||||
Total | $ | 14,213 | $ | 10,763 | $ | 3,450 | 32.1 |
Three months ended | ||||||||||||||||
June 30, | Change | |||||||||||||||
2016 | 2015 | Amount | % | |||||||||||||
Salaries and employee benefits | $ | 3,900 | $ | 2,993 | $ | 907 | 30.3 | |||||||||
Occupancy | 455 | 348 | 107 | 30.7 | ||||||||||||
Furniture and equipment | 171 | 87 | 84 | 96.6 | ||||||||||||
Professional fees | 266 | 180 | 86 | 47.8 | ||||||||||||
FDIC insurance | 160 | 116 | 44 | 37.9 | ||||||||||||
Pennsylvania shares tax | 240 | 200 | 40 | 20.0 | ||||||||||||
Amortization of intangibles | 82 | - | 82 | NA | ||||||||||||
ORE expenses | 212 | 357 | (145 | ) | (40.6 | ) | ||||||||||
Other | 1,815 | 1,147 | 668 | 58.2 | ||||||||||||
Total | $ | 7,301 | $ | 5,428 | $ | 1,873 | 34.5 |
Six months ended | ||||||||||||||||
June 30, | Change | |||||||||||||||
2017 | 2016 | Amount | % | |||||||||||||
Salaries and employee benefits | $ | 8,643 | $ | 7,782 | $ | 861 | 11.1 | |||||||||
Occupancy | 1,004 | 900 | 104 | 11.6 | ||||||||||||
Furniture and equipment | 285 | 328 | (43 | ) | (13.1 | ) | ||||||||||
Professional fees | 568 | 553 | 15 | 2.7 | ||||||||||||
FDIC insurance | 200 | 317 | (117 | ) | (36.9 | ) | ||||||||||
Pennsylvania shares tax | 524 | 390 | 134 | 34.4 | ||||||||||||
Amortization of intangibles | 149 | 164 | (15 | ) | NA | |||||||||||
ORE expenses | 172 | 305 | (133 | ) | (43.6 | ) | ||||||||||
Other | 2,812 | 3,474 | (662 | ) | (19.1 | ) | ||||||||||
Total | $ | 14,357 | $ | 14,213 | $ | 144 | 1.0 | |||||||||
Three months ended | ||||||||||||||||
June 30, | Change | |||||||||||||||
2017 | 2016 | Amount | % | |||||||||||||
Salaries and employee benefits | $ | 4,324 | $ | 3,900 | $ | 424 | 10.9 | |||||||||
Occupancy | 477 | 455 | 22 | 4.8 | ||||||||||||
Furniture and equipment | 146 | 171 | (25 | ) | (14.6 | ) | ||||||||||
Professional fees | 258 | 266 | (8 | ) | (3.0 | ) | ||||||||||
FDIC insurance | 95 | 160 | (65 | ) | (40.6 | ) | ||||||||||
Pennsylvania shares tax | 243 | 240 | 3 | 1.3 | ||||||||||||
Amortization of intangibles | 73 | 82 | (9 | ) | (11.0 | ) | ||||||||||
ORE expenses (recovery) | 82 | 212 | (130 | ) | (61.3 | ) | ||||||||||
Other | 1,468 | 1,815 | (347 | ) | (19.1 | ) | ||||||||||
Total | $ | 7,166 | $ | 7,301 | $ | (135 | ) | (1.8 | ) |
Fair Market Value of Investment Portfolio | Fair Market Value of Investment Portfolio | |||||||||||||||||||||||||||||||
June 30, 2016 | December 31, 2015 | June 30, 2017 | December 31, 2016 | |||||||||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | Amount | % | |||||||||||||||||||||||||
Available-for-sale: | ||||||||||||||||||||||||||||||||
U. S. Agency securities | $ | 205,819 | 57.0 | $ | 199,591 | 55.5 | $ | 142,750 | 51.9 | $ | 170,414 | 54.3 | ||||||||||||||||||||
U. S. Treasury notes | 5,053 | 1.4 | 10,082 | 2.8 | - | - | 3,000 | 0.9 | ||||||||||||||||||||||||
Obligations of state & political | ||||||||||||||||||||||||||||||||
subdivisions | 104,472 | 28.9 | 102,863 | 28.6 | ||||||||||||||||||||||||||||
Obligations of state & political subdivisions | 86,216 | 31.3 | 96,926 | 30.9 | ||||||||||||||||||||||||||||
Corporate obligations | 11,480 | 3.2 | 14,565 | 4.0 | 3,111 | 1.1 | 3,050 | 1.0 | ||||||||||||||||||||||||
Mortgage-backed securities in | ||||||||||||||||||||||||||||||||
government sponsored entities | 31,606 | 8.8 | 30,204 | 8.4 | 41,460 | 15.1 | 37,728 | 12.0 | ||||||||||||||||||||||||
Equity securities in financial | ||||||||||||||||||||||||||||||||
institutions | 2,514 | 0.7 | 2,432 | 0.7 | ||||||||||||||||||||||||||||
Equity securities in financial institutions | 1,671 | 0.6 | 2,899 | 0.9 | ||||||||||||||||||||||||||||
Total | $ | 360,944 | 100.0 | $ | 359,737 | 100.0 | $ | 275,208 | 100.0 | $ | 314,017 | 100.0 | ||||||||||||||||||||
June 30, 2016/ | ||||||||||||||||||||||||||||||||
December 31, 2015 | ||||||||||||||||||||||||||||||||
Change | ||||||||||||||||||||||||||||||||
Amount | % | |||||||||||||||||||||||||||||||
Available-for-sale: | ||||||||||||||||||||||||||||||||
U. S. Agency securities | $ | 6,228 | 3.1 | |||||||||||||||||||||||||||||
U. S. Treasury notes | (5,029 | ) | (49.9 | ) | ||||||||||||||||||||||||||||
Obligations of state & political | ||||||||||||||||||||||||||||||||
subdivisions | 1,609 | 1.6 | ||||||||||||||||||||||||||||||
Corporate obligations | (3,085 | ) | (21.2 | ) | ||||||||||||||||||||||||||||
Mortgage-backed securities in | ||||||||||||||||||||||||||||||||
government sponsored entities | 1,402 | 4.6 | ||||||||||||||||||||||||||||||
Equity securities in financial | ||||||||||||||||||||||||||||||||
institutions | 82 | 3.4 | ||||||||||||||||||||||||||||||
Total | $ | 1,207 | 0.3 |
June 30, 2017/ | ||||||||
December 31, 2016 | ||||||||
Change | ||||||||
Amount | % | |||||||
Available-for-sale: | ||||||||
U. S. Agency securities | $ | (27,664 | ) | (16.2 | ) | |||
U. S. Treasury notes | (3,000 | ) | (100.0 | ) | ||||
Obligations of state & political subdivisions | (10,710 | ) | (11.0 | ) | ||||
Corporate obligations | 61 | 2.0 | ||||||
Mortgage-backed securities in | ||||||||
government sponsored entities | 3,732 | 9.9 | ||||||
Equity securities in financial institutions | (1,228 | ) | (42.4 | ) | ||||
Total | $ | (38,809 | ) | (12.4 | ) |
June 30, | December 31, | June 30, | December 31, | |||||||||||||||||||||||||||||
2016 | 2015 | 2017 | 2016 | |||||||||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | Amount | % | |||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||
Residential | $ | 203,980 | 28.8 | $ | 203,407 | 29.3 | $ | 205,725 | 23.2 | $ | 207,423 | 25.9 | ||||||||||||||||||||
Commercial | 246,895 | 34.8 | 237,542 | 34.2 | 271,342 | 30.6 | 252,577 | 31.6 | ||||||||||||||||||||||||
Agricultural | 62,392 | 8.8 | 57,822 | 8.3 | 188,547 | 21.2 | 123,624 | 15.5 | ||||||||||||||||||||||||
Construction | 10,481 | 1.5 | 15,011 | 2.2 | 25,569 | 2.9 | 25,441 | 3.2 | ||||||||||||||||||||||||
Consumer | 11,439 | 1.6 | 11,543 | 1.7 | 10,603 | 1.2 | 11,005 | 1.4 | ||||||||||||||||||||||||
Other commercial and agricultural loans | 74,089 | 10.4 | 71,206 | 10.2 | ||||||||||||||||||||||||||||
Other commercial loans | 56,952 | 6.4 | 58,639 | 7.3 | ||||||||||||||||||||||||||||
Other agricultural loans | 32,974 | 3.7 | 23,388 | 2.9 | ||||||||||||||||||||||||||||
State & political subdivision loans | 99,839 | 14.1 | 98,500 | 14.1 | 96,337 | 10.8 | 97,514 | 12.2 | ||||||||||||||||||||||||
Total loans | 709,115 | 100.0 | 695,031 | 100.0 | 888,049 | 100.0 | 799,611 | 100.0 | ||||||||||||||||||||||||
Less allowance for loan losses | 7,359 | 7,106 | 9,979 | 8,886 | ||||||||||||||||||||||||||||
Net loans | $ | 701,756 | $ | 687,925 | $ | 878,070 | $ | 790,725 | ||||||||||||||||||||||||
June 30, 2016/ | ||||||||||||||||||||||||||||||||
December 31, 2015 | ||||||||||||||||||||||||||||||||
Change | ||||||||||||||||||||||||||||||||
Amount | % | |||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||
Residential | $ | 573 | 0.3 | |||||||||||||||||||||||||||||
Commercial | 9,353 | 3.9 | ||||||||||||||||||||||||||||||
Agricultural | 4,570 | 7.9 | ||||||||||||||||||||||||||||||
Construction | (4,530 | ) | (30.2 | ) | ||||||||||||||||||||||||||||
Consumer | (104 | ) | (0.9 | ) | ||||||||||||||||||||||||||||
Other commercial and agricultural loans | 2,883 | 4.0 | ||||||||||||||||||||||||||||||
State & political subdivision loans | 1,339 | 1.4 | ||||||||||||||||||||||||||||||
Total loans | $ | 14,084 | 2.0 |
June 30, 2017/ | ||||||||
December 31, 2016 | ||||||||
Change | ||||||||
Amount | % | |||||||
Real estate: | ||||||||
Residential | $ | (1,698 | ) | (0.8 | ) | |||
Commercial | 18,765 | 7.4 | ||||||
Agricultural | 64,923 | 52.5 | ||||||
Construction | 128 | 0.5 | ||||||
Consumer | (402 | ) | (3.7 | ) | ||||
Other commercial loans | (1,687 | ) | (2.9 | ) | ||||
Other agricultural loans | 9,586 | 41.0 | ||||||
State & political subdivision loans | (1,177 | ) | (1.2 | ) | ||||
Total loans | $ | 88,438 | 11.1 |
June 30, | December 31, | |||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Balance | ||||||||||||||||||||
at beginning of period | $ | 7,106 | $ | 6,815 | $ | 7,098 | $ | 6,784 | $ | 6,487 | ||||||||||
Charge-offs: | ||||||||||||||||||||
Real estate: | ||||||||||||||||||||
Residential | 43 | 66 | 97 | 17 | 95 | |||||||||||||||
Commercial | - | 84 | 516 | 62 | 2 | |||||||||||||||
Agricultural | - | - | - | - | - | |||||||||||||||
Consumer | 38 | 47 | 47 | 54 | 54 | |||||||||||||||
Other commercial and agricultural loans | 18 | 41 | 250 | 1 | 21 | |||||||||||||||
Total loans charged-off | 99 | 238 | 910 | 134 | 172 | |||||||||||||||
Recoveries: | ||||||||||||||||||||
Real estate: | ||||||||||||||||||||
Residential | - | - | - | 5 | - | |||||||||||||||
Commercial | 8 | 14 | 15 | 5 | 9 | |||||||||||||||
Agricultural | - | - | - | - | - | |||||||||||||||
Consumer | 68 | 33 | 27 | 33 | 33 | |||||||||||||||
Other commercial and agricultural loans | 6 | 2 | - | - | 7 | |||||||||||||||
Total loans recovered | 82 | 49 | 42 | 43 | 49 | |||||||||||||||
Net loans charged-off | 17 | 189 | 868 | 91 | 123 | |||||||||||||||
Provision charged to expense | 270 | 480 | 585 | 405 | 420 | |||||||||||||||
Balance at end of year | $ | 7,359 | $ | 7,106 | $ | 6,815 | $ | 7,098 | $ | 6,784 | ||||||||||
Loans outstanding at end of period | $ | 709,115 | $ | 695,031 | $ | 554,105 | $ | 540,612 | $ | 502,463 | ||||||||||
Average loans outstanding, net | $ | 699,896 | $ | 577,992 | $ | 540,541 | $ | 516,748 | $ | 496,822 | ||||||||||
Non-performing assets: | ||||||||||||||||||||
Non-accruing loans | $ | 10,206 | $ | 6,531 | $ | 6,599 | $ | 8,097 | $ | 8,067 | ||||||||||
Accrual loans - 90 days or more past due | 1,104 | 623 | 836 | 697 | 506 | |||||||||||||||
Total non-performing loans | $ | 11,310 | $ | 7,154 | $ | 7,435 | $ | 8,794 | $ | 8,573 | ||||||||||
Foreclosed assets held for sale | 1,558 | 1,354 | 1,792 | 1,360 | 616 | |||||||||||||||
Total non-performing assets | $ | 12,868 | $ | 8,508 | $ | 9,227 | $ | 10,154 | $ | 9,189 | ||||||||||
Annualized net charge-offs to average loans | 0.00 | % | 0.03 | % | 0.16 | % | 0.02 | % | 0.02 | % | ||||||||||
Allowance to total loans | 1.04 | % | 1.02 | % | 1.23 | % | 1.31 | % | 1.35 | % | ||||||||||
Allowance to total non-performing loans | 65.07 | % | 99.33 | % | 91.66 | % | 80.71 | % | 79.13 | % | ||||||||||
Non-performing loans as a percent of loans | ||||||||||||||||||||
net of unearned income | 1.59 | % | 1.03 | % | 1.34 | % | 1.63 | % | 1.71 | % | ||||||||||
Non-performing assets as a percent of loans | ||||||||||||||||||||
net of unearned income | 1.81 | % | 1.22 | % | 1.67 | % | 1.88 | % | 1.83 | % |
June 30, | December 31, | |||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Balance | ||||||||||||||||||||
at beginning of period | $ | 8,886 | $ | 7,106 | $ | 6,815 | $ | 7,098 | $ | 6,784 | ||||||||||
Charge-offs: | ||||||||||||||||||||
Real estate: | ||||||||||||||||||||
Residential | 93 | 85 | 66 | 97 | 17 | |||||||||||||||
Commercial | 41 | 100 | 84 | 516 | 62 | |||||||||||||||
Agricultural | - | - | - | - | - | |||||||||||||||
Consumer | 45 | 100 | 47 | 47 | 54 | |||||||||||||||
Other commercial loans | - | 55 | 41 | 250 | 1 | |||||||||||||||
Other agricultural loans | 5 | - | - | - | - | |||||||||||||||
Total loans charged-off | 184 | 340 | 238 | 910 | 134 | |||||||||||||||
Recoveries: | ||||||||||||||||||||
Real estate: | ||||||||||||||||||||
Residential | - | - | - | - | 5 | |||||||||||||||
Commercial | 6 | 479 | 14 | 15 | 5 | |||||||||||||||
Agricultural | - | - | - | - | - | |||||||||||||||
Consumer | 22 | 88 | 33 | 27 | 33 | |||||||||||||||
Other commercial loans | 9 | 33 | 2 | - | - | |||||||||||||||
Other agricultural loans | - | - | - | - | - | |||||||||||||||
Total loans recovered | 37 | 600 | 49 | 42 | 43 | |||||||||||||||
Net loans (recovered) charged-off | 147 | (260 | ) | 189 | 868 | 91 | ||||||||||||||
Provision charged to expense | 1,240 | 1,520 | 480 | 585 | 405 | |||||||||||||||
Balance at end of year | $ | 9,979 | $ | 8,886 | $ | 7,106 | $ | 6,815 | $ | 7,098 | ||||||||||
Loans outstanding at end of period | $ | 888,049 | $ | 799,611 | $ | 695,031 | $ | 554,105 | $ | 540,612 | ||||||||||
Average loans outstanding, net | $ | 847,600 | $ | 725,881 | $ | 577,992 | $ | 540,541 | $ | 516,748 | ||||||||||
Non-performing assets: | ||||||||||||||||||||
Non-accruing loans | $ | 11,511 | $ | 11,454 | $ | 6,531 | $ | 6,599 | $ | 8,097 | ||||||||||
Accrual loans - 90 days or more past due | 812 | 405 | 623 | 836 | 697 | |||||||||||||||
Total non-performing loans | $ | 12,323 | $ | 11,859 | $ | 7,154 | $ | 7,435 | $ | 8,794 | ||||||||||
Foreclosed assets held for sale | 1,194 | 1,036 | 1,354 | 1,792 | 1,360 | |||||||||||||||
Total non-performing assets | $ | 13,517 | $ | 12,895 | $ | 8,508 | $ | 9,227 | $ | 10,154 | ||||||||||
Annualized net charge-offs to average loans | 0.03 | % | -0.04 | % | 0.03 | % | 0.16 | % | 0.02 | % | ||||||||||
Allowance to total loans | 1.12 | % | 1.11 | % | 1.02 | % | 1.23 | % | 1.31 | % | ||||||||||
Allowance to total non-performing loans | 80.98 | % | 74.93 | % | 99.33 | % | 91.66 | % | 80.71 | % | ||||||||||
Non-performing loans as a percent of loans outstanding | 1.39 | % | 1.48 | % | 1.03 | % | 1.34 | % | 1.63 | % | ||||||||||
Non-performing assets as a percent of loans outstanding | 1.52 | % | 1.61 | % | 1.22 | % | 1.67 | % | 1.88 | % |
June 30, | December 31 | June 30, | December 31 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | 2017 | 2016 | �� | 2015 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | Amount | % | Amount | % | Amount | % | Amount | % | Amount | % | Amount | % | Amount | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential | $ | 990 | 28.8 | $ | 905 | 29.3 | $ | 878 | 33.5 | $ | 946 | 34.6 | $ | 875 | 35.4 | $ | 1,104 | 23.2 | $ | 1,064 | 25.9 | $ | 905 | 29.3 | $ | 878 | 33.5 | $ | 946 | 34.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial, agricultural | 3,919 | 43.6 | 3,785 | 42.5 | 3,870 | 38.9 | 4,558 | 39.8 | 4,437 | 38.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | 3,541 | 30.6 | 3,589 | 31.6 | 3,376 | 34.2 | 3,419 | 34.5 | 3,983 | 35.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agricultural | 2,452 | 21.2 | 1,494 | 15.5 | 409 | 8.3 | 451 | 4.4 | 575 | 4.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | 18 | 1.5 | 24 | 2.2 | 26 | 1.1 | 50 | 1.7 | 38 | 2.4 | 45 | 2.9 | 47 | 3.2 | 24 | 2.2 | 26 | 1.1 | 50 | 1.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer | 104 | 1.6 | 102 | 1.7 | 84 | 1.5 | 105 | 1.7 | 119 | 2.1 | 125 | 1.2 | 122 | 1.4 | 102 | 1.7 | 84 | 1.5 | 105 | 1.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other commercial and agricultural loans | 1,564 | 10.4 | 1,305 | 10.2 | 1,224 | 10.6 | 942 | 10.0 | 728 | 9.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other commercial loans | 1,131 | 6.4 | 1,327 | 7.3 | 1,183 | 8.2 | 1,007 | 8.6 | 686 | 8.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other agricultural loans | 431 | 3.7 | 312 | 2.9 | 122 | 2.0 | 217 | 2.0 | 256 | 1.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
State & political subdivision loans | 764 | 14.1 | 593 | 14.1 | 545 | 14.4 | 330 | 12.2 | 271 | 11.8 | 838 | 10.8 | 833 | 12.2 | 593 | 14.1 | 545 | 14.4 | 330 | 12.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unallocated | - | N/ | A | 392 | N/ | A | 188 | N/ | A | 167 | N/ | A | 316 | N/ | A | 312 | N/A | 98 | N/A | 392 | N/A | 188 | N/A | 167 | N/A | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total allowance for loan losses | $ | 7,359 | 100.0 | $ | 7,106 | 100.0 | $ | 6,815 | 100.0 | $ | 7,098 | 100.0 | $ | 6,784 | 100.0 | $ | 9,979 | 100.0 | $ | 8,886 | 100.0 | $ | 7,106 | 100.0 | $ | 6,815 | 100.0 | $ | 7,098 | 100.0 |
June 30, 2016 | December 31, 2015 | |||||||||||||||||||||||||||||||
Non-Performing Loans | Non-Performing Loans | |||||||||||||||||||||||||||||||
30 - 89 Days | 30 - 89 Days | |||||||||||||||||||||||||||||||
Past Due | 90 Days Past | Non- | Total Non- | Past Due | 90 Days Past | Non- | Total Non- | |||||||||||||||||||||||||
(in thousands) | Accruing | Due Accruing | accrual | Performing | Accruing | Due Accruing | accrual | Performing | ||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||
Residential | $ | 1,817 | $ | 219 | $ | 1,385 | $ | 1,604 | $ | 1,273 | $ | 394 | $ | 1,008 | $ | 1,402 | ||||||||||||||||
Commercial | 1,402 | 461 | 4,711 | 5,172 | 859 | 60 | 4,422 | 4,482 | ||||||||||||||||||||||||
Agricultural | 251 | 165 | 29 | 194 | 344 | - | 34 | 34 | ||||||||||||||||||||||||
Construction | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Consumer | 243 | 9 | 39 | 48 | 262 | 9 | 55 | 64 | ||||||||||||||||||||||||
Other commercial and | ||||||||||||||||||||||||||||||||
agricultural loans | 218 | 250 | 4,042 | 4,292 | 319 | 160 | 1,012 | 1,172 | ||||||||||||||||||||||||
Total nonperforming loans | $ | 3,931 | $ | 1,104 | $ | 10,206 | $ | 11,310 | $ | 3,057 | $ | 623 | $ | 6,531 | $ | 7,154 |
Change in Non-Performing Loans June 30, 2016/ | ||||||||
December 31, 2015 | ||||||||
(in thousands) | Amount | % | ||||||
Real estate: | ||||||||
Residential | $ | 202 | 14.4 | |||||
Commercial | 690 | 15.4 | ||||||
Agricultural | 160 | 470.6 | ||||||
Construction | - | N/ | A | |||||
Consumer | (16 | ) | (25.0 | ) | ||||
Other commercial and | ||||||||
agricultural loans | 3,120 | 266.2 | ||||||
Total nonperforming loans | $ | 4,156 | 58.1 |
June 30, 2017 | December 31, 2016 | |||||||||||||||||||||||||||||||
Non-Performing Loans | Non-Performing Loans | |||||||||||||||||||||||||||||||
30 - 89 Days | 90 Days or | 30 - 89 Days | 90 Days or | |||||||||||||||||||||||||||||
Past Due | More Past | Non- | Total Non- | Past Due | More Past | Non- | Total Non- | |||||||||||||||||||||||||
(in thousands) | Accruing | Due Accruing | accrual | Performing | Accruing | Due Accruing | accrual | Performing | ||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||
Residential | $ | 588 | $ | 43 | $ | 1,655 | $ | 1,698 | $ | 1,010 | $ | 333 | $ | 1,570 | $ | 1,903 | ||||||||||||||||
Commercial | 1,408 | 553 | 4,588 | 5,141 | 1,703 | - | 4,445 | 4,445 | ||||||||||||||||||||||||
Agricultural | 534 | 159 | 1,314 | 1,473 | - | - | 1,340 | 1,340 | ||||||||||||||||||||||||
Construction | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Consumer | 92 | 57 | 87 | 144 | 131 | 67 | 42 | 109 | ||||||||||||||||||||||||
Other commercial loans | 22 | - | 3,128 | 3,128 | 78 | - | 4,057 | 4,057 | ||||||||||||||||||||||||
Other agricultural loans | 283 | - | 739 | 739 | 77 | 5 | - | 5 | ||||||||||||||||||||||||
Total nonperforming loans | $ | 2,927 | $ | 812 | $ | 11,511 | $ | 12,323 | $ | 2,999 | $ | 405 | $ | 11,454 | $ | 11,859 |
Change in Non-Performing Loans | ||||||||
June 30, 2017 / December 31, 2016 | ||||||||
(in thousands) | Amount | % | ||||||
Real estate: | ||||||||
Residential | $ | (205 | ) | (10.8 | ) | |||
Commercial | 696 | 15.7 | ||||||
Agricultural | 133 | 9.9 | ||||||
Construction | - | N/A | ||||||
Consumer | 36 | 33.0 | ||||||
Other commercial loans | (930 | ) | (22.9 | ) | ||||
Other agricultural loans | 734 | 14,680.0 | ||||||
Total nonperforming loans | $ | 464 | 3.9 |
· | A commercial customer with a total loan relationship of 2017. |
· | A commercial customer with a total loan relationship of |
· |
· | Two loan relationships |
· | Net and gross charge-offs |
· | Real estate values in the Bank's primary market areas have only decreased slightly with the decrease in the market price for natural gas. |
June 30, | December 31, | June 30, | December 31, | |||||||||||||||||||||||||||||
2016 | 2015 | 2017 | 2016 | |||||||||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | Amount | % | |||||||||||||||||||||||||
Non-interest-bearing deposits | $ | 142,327 | 14.2 | $ | 150,960 | 15.3 | $ | 156,374 | 14.9 | $ | 147,425 | 14.7 | ||||||||||||||||||||
NOW accounts | 299,130 | 29.8 | 279,655 | 28.3 | 322,663 | 30.7 | 305,862 | 30.4 | ||||||||||||||||||||||||
Savings deposits | 169,990 | 16.9 | 170,277 | 17.2 | 181,381 | 17.3 | 170,722 | 17.0 | ||||||||||||||||||||||||
Money market deposit accounts | 123,146 | 12.3 | 105,229 | 10.7 | 130,969 | 12.5 | 116,880 | 11.6 | ||||||||||||||||||||||||
Certificates of deposit | 268,889 | 26.8 | 281,910 | 28.5 | 259,822 | 24.6 | 264,614 | 26.3 | ||||||||||||||||||||||||
Total | $ | 1,003,482 | 100.0 | $ | 988,031 | 100.0 | $ | 1,051,209 | 100.0 | $ | 1,005,503 | 100.0 |
June 30, 2016/ | ||||||||
December 31, 2015 | ||||||||
Change | ||||||||
Amount | % | |||||||
Non-interest-bearing deposits | $ | (8,633 | ) | (5.7 | ) | |||
NOW accounts | 19,475 | 7.0 | ||||||
Savings deposits | (287 | ) | (0.2 | ) | ||||
Money market deposit accounts | 17,917 | 17.0 | ||||||
Certificates of deposit | (13,021 | ) | (4.6 | ) | ||||
Total | $ | 15,451 | 1.6 |
June 30, 2017/ | ||||||||
December 31, 2016 | ||||||||
Change | ||||||||
Amount | % | |||||||
Non-interest-bearing deposits | $ | 8,949 | 6.1 | |||||
NOW accounts | 16,801 | 5.5 | ||||||
Savings deposits | 10,659 | 6.2 | ||||||
Money market deposit accounts | 14,089 | 12.1 | ||||||
Certificates of deposit | (4,792 | ) | (1.8 | ) | ||||
Total | $ | 45,706 | 4.5 |
Actual | For Capital Adequacy Purposes | To Be Well Capitalized Under Prompt Corrective Action Provisions | Actual | For Capital Adequacy Purposes | To Be Well Capitalized Under Prompt Corrective Action Provisions | |||||||||||||||||||||||||||||||||||||||||||
June 30, 2016 | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||||||||||||||||||||
June 30, 2017 | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||||||||||||||||||||
Total Capital (to Risk Weighted Assets): | Total Capital (to Risk Weighted Assets): | Total Capital (to Risk Weighted Assets): | ||||||||||||||||||||||||||||||||||||||||||||||
Company | $ | 117,683 | 16.16 | % | $ | 58,248 | 8.00 | % | $ | 72,810 | 10.00 | % | $ | 126,856 | 14.32 | % | $ | 70,846 | 8.00 | % | $ | 88,558 | 10.00 | % | ||||||||||||||||||||||||
Bank | $ | 112,026 | 15.43 | % | $ | 58,077 | 8.00 | % | $ | 72,596 | 10.00 | % | $ | 122,463 | 13.85 | % | $ | 70,751 | 8.00 | % | $ | 88,439 | 10.00 | % | ||||||||||||||||||||||||
Tier 1 Capital (to Risk Weighted Assets): | Tier 1 Capital (to Risk Weighted Assets): | Tier 1 Capital (to Risk Weighted Assets): | ||||||||||||||||||||||||||||||||||||||||||||||
Company | $ | 109,928 | 15.10 | % | $ | 43,686 | 6.00 | % | $ | 58,248 | 8.00 | % | $ | 116,664 | 13.17 | % | $ | 53,135 | 6.00 | % | $ | 70,846 | 8.00 | % | ||||||||||||||||||||||||
Bank | $ | 104,450 | 14.39 | % | $ | 43,558 | 6.00 | % | $ | 58,077 | 8.00 | % | $ | 112,272 | 12.70 | % | $ | 53,064 | 6.00 | % | $ | 70,751 | 8.00 | % | ||||||||||||||||||||||||
Common Equity Tier 1 Capital (to Risk Weighted Assets): | Common Equity Tier 1 Capital (to Risk Weighted Assets): | Common Equity Tier 1 Capital (to Risk Weighted Assets): | ||||||||||||||||||||||||||||||||||||||||||||||
Company | $ | 102,428 | 14.07 | % | $ | 32,765 | 4.50 | % | $ | 47,327 | 6.50 | % | $ | 109,164 | 12.33 | % | $ | 39,851 | 4.50 | % | $ | 57,563 | 6.50 | % | ||||||||||||||||||||||||
Bank | $ | 104,450 | 14.39 | % | $ | 32,668 | 4.50 | % | $ | 47,188 | 6.50 | % | $ | 112,272 | 12.70 | % | $ | 39,798 | 4.50 | % | $ | 57,486 | 6.50 | % | ||||||||||||||||||||||||
Tier 1 Capital (to Average Assets): | Tier 1 Capital (to Average Assets): | Tier 1 Capital (to Average Assets): | ||||||||||||||||||||||||||||||||||||||||||||||
Company | $ | 109,928 | 9.40 | % | $ | 46,793 | 4.00 | % | $ | 58,491 | 5.00 | % | $ | 116,664 | 9.55 | % | $ | 48,852 | 4.00 | % | $ | 61,065 | 5.00 | % | ||||||||||||||||||||||||
Bank | $ | 104,450 | 8.95 | % | $ | 46,691 | 4.00 | % | $ | 58,364 | 5.00 | % | $ | 112,272 | 9.21 | % | $ | 48,782 | 4.00 | % | $ | 60,977 | 5.00 | % | ||||||||||||||||||||||||
Actual | For Capital Adequacy Purposes | To Be Well Capitalized Under Prompt Corrective Action Provisions | ||||||||||||||||||||||
December 31, 2015 | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||
Total Capital (to Risk Weighted Assets): | ||||||||||||||||||||||||
Company | $ | 114,886 | 16.23 | % | $ | 56,630 | 8.00 | % | $ | 70,787 | 10.00 | % | ||||||||||||
Bank | $ | 108,232 | 15.34 | % | $ | 56,443 | 8.00 | % | $ | 70,554 | 10.00 | % | ||||||||||||
Tier 1 Capital (to Risk Weighted Assets): | ||||||||||||||||||||||||
Company | $ | 107,612 | 15.20 | % | $ | 42,472 | 6.00 | % | $ | 56,630 | 8.00 | % | ||||||||||||
Bank | $ | 100,958 | 14.31 | % | $ | 42,332 | 6.00 | % | $ | 56,443 | 8.00 | % | ||||||||||||
Common Equity Tier 1 Capital (to Risk Weighted Assets): | ||||||||||||||||||||||||
Company | $ | 100,112 | 14.14 | % | $ | 31,854 | 4.50 | % | $ | 46,012 | 6.50 | % | ||||||||||||
Bank | $ | 100,958 | 14.31 | % | $ | 31,749 | 4.50 | % | $ | 45,860 | 6.50 | % | ||||||||||||
Tier 1 Capital (to Average Assets): | ||||||||||||||||||||||||
Company | $ | 107,612 | 11.01 | % | $ | 39,083 | 4.00 | % | $ | 48,854 | 5.00 | % | ||||||||||||
Bank | $ | 100,958 | 10.35 | % | $ | 39,006 | 4.00 | % | $ | 48,757 | 5.00 | % |
Actual | For Capital Adequacy Purposes | To Be Well Capitalized Under Prompt Corrective Action Provisions | ||||||||||||||||||||||
December 31, 2016 | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||
Total Capital (to Risk Weighted Assets): | ||||||||||||||||||||||||
Company | $ | 121,717 | 14.93 | % | $ | 65,217 | 8.00 | % | $ | 81,522 | 10.00 | % | ||||||||||||
Bank | $ | 117,537 | 14.46 | % | $ | 65,020 | 8.00 | % | $ | 81,275 | 10.00 | % | ||||||||||||
Tier 1 Capital (to Risk Weighted Assets): | ||||||||||||||||||||||||
Company | $ | 112,599 | 13.81 | % | $ | 48,913 | 6.00 | % | $ | 65,217 | 8.00 | % | ||||||||||||
Bank | $ | 108,419 | 13.34 | % | $ | 48,765 | 6.00 | % | $ | 65,020 | 8.00 | % | ||||||||||||
Common Equity Tier 1 Capital (to Risk Weighted Assets): | ||||||||||||||||||||||||
Company | $ | 105,099 | 12.89 | % | $ | 36,685 | 4.50 | % | $ | 52,989 | 6.50 | % | ||||||||||||
Bank | $ | 108,419 | 13.34 | % | $ | 36,574 | 4.50 | % | $ | 52,829 | 6.50 | % | ||||||||||||
Tier 1 Capital (to Average Assets): | ||||||||||||||||||||||||
Company | $ | 112,599 | 9.46 | % | $ | 47,586 | 4.00 | % | $ | 59,483 | 5.00 | % | ||||||||||||
Bank | $ | 108,419 | 9.13 | % | $ | 39,006 | 4.00 | % | $ | 48,757 | 5.00 | % |
June 30, 2016 | December 31, 2015 | June 30, 2017 | December 31, 2016 | |||||||||||||
Commitments to extend credit | $ | 186,943 | $ | 143,134 | $ | 198,733 | $ | 206,505 | ||||||||
Standby letters of credit | 13,884 | 13,751 | 15,516 | 14,955 | ||||||||||||
$ | 200,827 | $ | 156,885 | $ | 214,249 | $ | 221,460 |
Change In | % Change In | |||||||||||
Prospective One-Year | Prospective | Prospective | ||||||||||
Changes in Rates | Net Interest Income | Net Interest Income | Net Interest Income | |||||||||
-100 Shock | $ | 35,090 | $ | (757 | ) | (2.11 | ) | |||||
Base | 35,847 | - | - | |||||||||
+100 Shock | 35,293 | (554 | ) | (1.55 | ) | |||||||
+200 Shock | 34,816 | (1,031 | ) | (2.88 | ) | |||||||
+300 Shock | 34,157 | (1,690 | ) | (4.71 | ) | |||||||
+400 Shock | 33,400 | (2,447 | ) | (6.83 | ) |
Change In | % Change In | |||||||||||
Prospective One-Year | Prospective | Prospective | ||||||||||
Changes in Rates | Net Interest Income | Net Interest Income | Net Interest Income | |||||||||
-100 Shock | $ | 40,618 | $ | (1,054 | ) | (2.53 | ) | |||||
Base | 41,672 | - | - | |||||||||
+100 Shock | 40,667 | (1,005 | ) | (2.41 | ) | |||||||
+200 Shock | 39,510 | (2,162 | ) | (5.19 | ) | |||||||
+300 Shock | 38,308 | (3,364 | ) | (8.07 | ) | |||||||
+400 Shock | 36,999 | (4,673 | ) | (11.21 | ) |
ISSUER PURCHASES OF EQUITY SECURITIES | ISSUER PURCHASES OF EQUITY SECURITIES | ISSUER PURCHASES OF EQUITY SECURITIES | ||||||||||||||||||||||||||||||
Period | Total Number of Shares (or units Purchased) | Average Price Paid per Share (or Unit) | Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans of Programs | Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs (1) | ||||||||||||||||||||||||||||
Period | Total Number of Shares (or units Purchased) | Average Price Paid per Share (or Unit) | Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans of Programs | Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs (1) | ||||||||||||||||||||||||||||
4/1/16 to 4/30/16 | 29 | $ | 47.00 | 29 | 155,610 | |||||||||||||||||||||||||||
5/1/16 to 5/31/16 | 7,271 | $ | 47.78 | 7,271 | 148,339 | |||||||||||||||||||||||||||
6/1/16 to 6/30/16 | 5,717 | $ | 47.65 | 5,717 | 142,622 | |||||||||||||||||||||||||||
4/1/17 to 4/30/17 | - | $ | 0.00 | - | 99,524 | |||||||||||||||||||||||||||
5/1/17 to 5/31/17 | 1,043 | $ | 54.00 | 1,043 | 98,481 | |||||||||||||||||||||||||||
6/1/17 to 6/30/17 | 952 | $ | 54.00 | 952 | 97,529 | |||||||||||||||||||||||||||
Total | 13,017 | $ | 47.72 | 13,017 | 142,622 | 1,995 | $ | 54.00 | 1,995 | 97,529 |
(1) | On October 20, 2015, the Company announced that the Board of Directors authorized the Company to repurchase up to an additional 150,000 shares. The repurchases will be conducted through open-market purchases or privately negotiated transactions and will be made from time to time depending on market conditions and other factors. No time limit was placed on the duration of the share repurchase program. Any repurchased shares will be held as treasury stock and will be available for general corporate purposes. |
3.1 | |||
3.2 | |||
4.1 | |||
31.1 |
31.2 |
32.1 | |||
101 ** | The following materials from the Company's Quarterly Report on Form 10-Q for the period ended June 30, |
Citizens Financial Services, Inc. | |||
August | By: | /s/ Randall E. Black | |
Randall E. Black | |||
President and Chief Executive Officer (Principal Executive Officer) | |||
August | By: | /s/ Mickey L. Jones | |
Mickey L. Jones | |||
Chief Financial Officer (Principal Financial and Accounting Officer) | |||