Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered |
PAGE | ||
Part I | FINANCIAL INFORMATION | |
Item 1. | Financial Statements (unaudited): | |
Consolidated Balance Sheet as of June | 1 | |
Consolidated Statement of Income for the Three and Six | 2 | |
Consolidated Statement of Comprehensive Income for the Three and Six | 3 | |
Consolidated Statement of Changes in Stockholders’ Equity for the Three and Six months ended June 30, 2019 and 2018 | 4 | |
Consolidated Statement of Cash Flows for the Six | ||
Notes to Consolidated Financial Statements | ||
Item 2. | ||
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, | June 30, | December 31, | |||||||||||||
(in thousands except share data) | 2018 | 2017 | 2019 | 2018 | ||||||||||||
ASSETS: | ||||||||||||||||
Cash and due from banks: | ||||||||||||||||
Noninterest-bearing | $ | 14,521 | $ | 16,347 | $ | 15,552 | $ | 15,327 | ||||||||
Interest-bearing | 1,092 | 2,170 | 917 | 1,470 | ||||||||||||
Total cash and cash equivalents | 15,613 | 18,517 | 16,469 | 16,797 | ||||||||||||
Interest bearing time deposits with other banks | 13,762 | 10,283 | 15,498 | 15,498 | ||||||||||||
Equity securities | 195 | - | 557 | 516 | ||||||||||||
Available-for-sale securities | 250,025 | 254,782 | 236,740 | 241,010 | ||||||||||||
Loans held for sale | 1,931 | 1,439 | 778 | 1,127 | ||||||||||||
Loans (net of allowance for loan losses: | ||||||||||||||||
2018, $11,941 and 2017, $11,190) | 1,028,259 | 989,335 | ||||||||||||||
2019, $13,304 and 2018, $12,884) | 1,086,318 | 1,068,999 | ||||||||||||||
Premises and equipment | 16,289 | 16,523 | 16,024 | 16,273 | ||||||||||||
Accrued interest receivable | 4,285 | 4,196 | 4,612 | 4,452 | ||||||||||||
Goodwill | 23,296 | 23,296 | 23,296 | 23,296 | ||||||||||||
Bank owned life insurance | 27,189 | 26,883 | 27,810 | 27,505 | ||||||||||||
Other intangibles | 1,756 | 1,953 | 1,460 | 1,623 | ||||||||||||
Other assets | 14,994 | 14,679 | 17,608 | 13,616 | ||||||||||||
TOTAL ASSETS | $ | 1,397,594 | $ | 1,361,886 | $ | 1,447,170 | $ | 1,430,712 | ||||||||
LIABILITIES: | ||||||||||||||||
Deposits: | ||||||||||||||||
Noninterest-bearing | $ | 169,014 | $ | 171,840 | $ | 183,903 | $ | 179,971 | ||||||||
Interest-bearing | 949,578 | 933,103 | 999,755 | 1,005,185 | ||||||||||||
Total deposits | 1,118,592 | 1,104,943 | 1,183,658 | 1,185,156 | ||||||||||||
Borrowed funds | 133,652 | 114,664 | 100,984 | 91,194 | ||||||||||||
Accrued interest payable | 903 | 897 | 1,048 | 1,076 | ||||||||||||
Other liabilities | 12,166 | 12,371 | 13,459 | 14,057 | ||||||||||||
TOTAL LIABILITIES | 1,265,313 | 1,232,875 | 1,299,149 | 1,291,483 | ||||||||||||
STOCKHOLDERS' EQUITY: | ||||||||||||||||
Preferred Stock | ||||||||||||||||
$1.00 par value; authorized 3,000,000 shares at June 30, 2018 and | ||||||||||||||||
December 31, 2017; none issued in 2018 or 2017 | - | - | ||||||||||||||
$1.00 par value; authorized 3,000,000 shares at June 30, 2019 and | ||||||||||||||||
December 31, 2018; none issued in 2019 or 2018 | - | - | ||||||||||||||
Common stock | ||||||||||||||||
$1.00 par value; authorized 25,000,000 shares at June 30, 2018 and | ||||||||||||||||
15,000,000 at December 31, 2017; issued 3,904,212 at June 30, 2018 and | ||||||||||||||||
3,869,939 at December 31, 2017 | 3,904 | 3,870 | ||||||||||||||
$1.00 par value; authorized 25,000,000 shares at June 30, 2019 and December 31, 2018; | ||||||||||||||||
issued 3,938,673 at June 30, 2019 and 3,904,212, at December 31, 2018 | 3,939 | 3,904 | ||||||||||||||
Additional paid-in capital | 53,098 | 51,108 | 55,096 | 53,099 | ||||||||||||
Retained earnings | 93,717 | 89,982 | 103,733 | 99,727 | ||||||||||||
Accumulated other comprehensive loss | (5,357 | ) | (3,398 | ) | (337 | ) | (3,921 | ) | ||||||||
Treasury stock, at cost: 391,559 shares at June 30, 2018 | ||||||||||||||||
and 383,065 shares at December 31, 2017 | (13,081 | ) | (12,551 | ) | ||||||||||||
Treasury stock, at cost: 413,353 shares at June 30, 2019 | ||||||||||||||||
and 399,616 shares at December 31, 2018 | (14,410 | ) | (13,580 | ) | ||||||||||||
TOTAL STOCKHOLDERS' EQUITY | 132,281 | 129,011 | 148,021 | 139,229 | ||||||||||||
TOTAL LIABILITIES AND | ||||||||||||||||
STOCKHOLDERS' EQUITY | $ | 1,397,594 | $ | 1,361,886 | $ | 1,447,170 | $ | 1,430,712 | ||||||||
The accompanying notes are an integral part of these unaudited consolidated financial statements. | The accompanying notes are an integral part of these unaudited consolidated financial statements. | 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) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
INTEREST INCOME: | ||||||||||||||||
Interest and fees on loans | $ | 12,461 | $ | 10,304 | $ | 24,322 | $ | 20,021 | ||||||||
Interest-bearing deposits with banks | 66 | 45 | 124 | �� | 80 | |||||||||||
Investment securities: | ||||||||||||||||
Taxable | 916 | 775 | 1,716 | 1,579 | ||||||||||||
Nontaxable | 474 | 601 | 1,001 | 1,269 | ||||||||||||
Dividends | 111 | 53 | 248 | 129 | ||||||||||||
TOTAL INTEREST INCOME | 14,028 | 11,778 | 27,411 | 23,078 | ||||||||||||
INTEREST EXPENSE: | ||||||||||||||||
Deposits | 1,585 | 1,143 | 2,901 | 2,188 | ||||||||||||
Borrowed funds | 692 | 231 | 1,339 | 489 | ||||||||||||
TOTAL INTEREST EXPENSE | 2,277 | 1,374 | 4,240 | 2,677 | ||||||||||||
NET INTEREST INCOME | 11,751 | 10,404 | 23,171 | 20,401 | ||||||||||||
Provision for loan losses | 325 | 625 | 825 | 1,240 | ||||||||||||
NET INTEREST INCOME AFTER | ||||||||||||||||
PROVISION FOR LOAN LOSSES | 11,426 | 9,779 | 22,346 | 19,161 | ||||||||||||
NON-INTEREST INCOME: | ||||||||||||||||
Service charges | 1,170 | 1,120 | 2,274 | 2,178 | ||||||||||||
Trust | 150 | 188 | 401 | 409 | ||||||||||||
Brokerage and insurance | 168 | 114 | 349 | 305 | ||||||||||||
Gains on loans sold | 60 | 148 | 132 | 249 | ||||||||||||
Equity security gains, net | 7 | - | 13 | - | ||||||||||||
Available for sale security gains, net | - | 23 | - | 195 | ||||||||||||
Earnings on bank owned life insurance | 154 | 167 | 306 | 333 | ||||||||||||
Other | 133 | 128 | 273 | 254 | ||||||||||||
TOTAL NON-INTEREST INCOME | 1,842 | 1,888 | 3,748 | 3,923 | ||||||||||||
NON-INTEREST EXPENSES: | ||||||||||||||||
Salaries and employee benefits | 4,737 | 4,377 | 9,572 | 8,743 | ||||||||||||
Occupancy | 514 | 477 | 1,106 | 1,004 | ||||||||||||
Furniture and equipment | 122 | 146 | 264 | 285 | ||||||||||||
Professional fees | 262 | 258 | 557 | 568 | ||||||||||||
FDIC insurance | 107 | 95 | 207 | 200 | ||||||||||||
Pennsylvania shares tax | 300 | 243 | 600 | 524 | ||||||||||||
Amortization of intangibles | 74 | 73 | 150 | 149 | ||||||||||||
Other real estate owned expenses | 157 | 82 | 295 | 172 | ||||||||||||
Other | 1,429 | 1,415 | 2,783 | 2,712 | ||||||||||||
TOTAL NON-INTEREST EXPENSES | 7,702 | 7,166 | 15,534 | 14,357 | ||||||||||||
Income before provision for income taxes | 5,566 | 4,501 | 10,560 | 8,727 | ||||||||||||
Provision for income taxes | 875 | 1,033 | 1,622 | 1,956 | ||||||||||||
NET INCOME | $ | 4,691 | $ | 3,468 | $ | 8,938 | $ | 6,771 | ||||||||
PER COMMON SHARE DATA: | ||||||||||||||||
Net Income - Basic | $ | 1.34 | $ | 0.99 | $ | 2.55 | $ | 1.93 | ||||||||
Net Income - Diluted | $ | 1.34 | $ | 0.99 | $ | 2.55 | $ | 1.93 | ||||||||
Cash Dividends Paid | $ | 0.435 | $ | 0.401 | $ | 0.870 | $ | 0.802 | ||||||||
Number of shares used in computation - basic | 3,507,242 | 3,514,394 | 3,509,882 | 3,513,925 | ||||||||||||
Number of shares used in computation - diluted | 3,508,709 | 3,515,582 | 3,510,513 | 3,514,535 | ||||||||||||
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) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
INTEREST INCOME: | ||||||||||||||||
Interest and fees on loans | $ | 13,776 | $ | 12,461 | $ | 27,090 | $ | 24,322 | ||||||||
Interest-bearing deposits with banks | 104 | 66 | 208 | 124 | ||||||||||||
Investment securities: | ||||||||||||||||
Taxable | 1,128 | 916 | 2,236 | 1,716 | ||||||||||||
Nontaxable | 374 | 474 | 731 | 1,001 | ||||||||||||
Dividends | 120 | 111 | 254 | 248 | ||||||||||||
TOTAL INTEREST INCOME | 15,502 | 14,028 | 30,519 | 27,411 | ||||||||||||
INTEREST EXPENSE: | ||||||||||||||||
Deposits | 2,398 | 1,585 | 4,712 | 2,901 | ||||||||||||
Borrowed funds | 768 | 692 | 1,556 | 1,339 | ||||||||||||
TOTAL INTEREST EXPENSE | 3,166 | 2,277 | 6,268 | 4,240 | ||||||||||||
NET INTEREST INCOME | 12,336 | 11,751 | 24,251 | 23,171 | ||||||||||||
Provision for loan losses | 350 | 325 | 750 | 825 | ||||||||||||
NET INTEREST INCOME AFTER | ||||||||||||||||
PROVISION FOR LOAN LOSSES | 11,986 | 11,426 | 23,501 | 22,346 | ||||||||||||
NON-INTEREST INCOME: | ||||||||||||||||
Service charges | 1,174 | 1,170 | 2,273 | 2,274 | ||||||||||||
Trust | 209 | 150 | 441 | 401 | ||||||||||||
Brokerage and insurance | 261 | 168 | 554 | 349 | ||||||||||||
Gains on loans sold | 64 | 60 | 163 | 132 | ||||||||||||
Equity security gains, net | 30 | 7 | 41 | 13 | ||||||||||||
Earnings on bank owned life insurance | 154 | 154 | 305 | 306 | ||||||||||||
Other | 135 | 133 | 283 | 273 | ||||||||||||
TOTAL NON-INTEREST INCOME | 2,027 | 1,842 | 4,060 | 3,748 | ||||||||||||
NON-INTEREST EXPENSES: | ||||||||||||||||
Salaries and employee benefits | 5,004 | 4,737 | 10,033 | 9,572 | ||||||||||||
Occupancy | 517 | 514 | 1,109 | 1,106 | ||||||||||||
Furniture and equipment | 181 | 122 | 336 | 264 | ||||||||||||
Professional fees | 316 | 367 | 758 | 766 | ||||||||||||
FDIC insurance | 105 | 107 | 216 | 207 | ||||||||||||
Pennsylvania shares tax | 275 | 300 | 550 | 600 | ||||||||||||
Amortization of intangibles | 66 | 74 | 132 | 150 | ||||||||||||
ORE expenses | 109 | 52 | 216 | 86 | ||||||||||||
Other | 1,664 | 1,429 | 3,209 | 2,783 | ||||||||||||
TOTAL NON-INTEREST EXPENSES | 8,237 | 7,702 | 16,559 | 15,534 | ||||||||||||
Income before provision for income taxes | 5,776 | 5,566 | 11,002 | 10,560 | ||||||||||||
Provision for income taxes | 930 | 875 | 1,751 | 1,622 | ||||||||||||
NET INCOME | $ | 4,846 | $ | 4,691 | $ | 9,251 | $ | 8,938 | ||||||||
PER COMMON SHARE DATA: | ||||||||||||||||
Net Income - Basic | $ | 1.38 | $ | 1.32 | $ | 2.62 | $ | 2.52 | ||||||||
Net Income - Diluted | $ | 1.38 | $ | 1.32 | $ | 2.62 | $ | 2.52 | ||||||||
Number of shares used in computation - basic | 3,523,135 | 3,541,703 | 3,525,788 | 3,544,343 | ||||||||||||
Number of shares used in computation - diluted | 3,524,517 | 3,543,170 | 3,526,483 | 3,544,974 | ||||||||||||
The accompanying notes are an integral part of these unaudited consolidated financial statements. |
CITIZENS FINANCIAL SERVICES, INC. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | 2018 | 2017 | 2018 | 2017 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | $ | 4,691 | $ | 3,468 | $ | 8,938 | $ | 6,771 | $ | 4,846 | $ | 4,691 | $ | 9,251 | $ | 8,938 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in unrealized gains on available for sale securities | (529 | ) | 654 | (2,574 | ) | 724 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in unrealized gains (losses) on available | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
for sale securities | 3,088 | (529 | ) | 4,416 | (2,574 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax effect | 112 | (222 | ) | 540 | (246 | ) | (648 | ) | 112 | (928 | ) | 540 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in unrecognized pension cost | 47 | 52 | 93 | 112 | 62 | 47 | 123 | 93 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax effect | (10 | ) | (17 | ) | (19 | ) | (38 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less: Reclassification adjustment for investment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
security gains included in net income | - | (23 | ) | - | (195 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax effect | - | 8 | - | 66 | (14 | ) | (10 | ) | (27 | ) | (19 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | (380 | ) | 452 | (1,960 | ) | 423 | 2,488 | (380 | ) | 3,584 | (1,960 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | $ | 4,311 | $ | 3,920 | $ | 6,978 | $ | 7,194 | $ | 7,334 | $ | 4,311 | $ | 12,835 | $ | 6,978 | ||||||||||||||||||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these unaudited consolidated financial statements. | The accompanying notes are an integral part of these unaudited consolidated financial statements. | The accompanying notes are an integral part of these unaudited consolidated financial statements. |
CITIZENS FINANCIAL SERVICES, INC. | ||||||||||||||||||||||||||||
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||||||||
Accumulated | ||||||||||||||||||||||||||||
Additional | Other | |||||||||||||||||||||||||||
Common Stock | Paid-in | Retained | Comprehensive | Treasury | ||||||||||||||||||||||||
(in thousands, except share data) | Shares | Amount | Capital | Earnings | Loss | Stock | Total | |||||||||||||||||||||
Balance, March 31, 2019 | 3,904,212 | 3,904 | 53,102 | 102,574 | (2,825 | ) | (13,910 | ) | 142,845 | |||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||
Net income | 4,846 | 4,846 | ||||||||||||||||||||||||||
Net other comprehensive income | 2,488 | 2,488 | ||||||||||||||||||||||||||
Stock dividend | 34,461 | 35 | 2,067 | (2,102 | ) | - | ||||||||||||||||||||||
Purchase of treasury stock (14,858 shares) | (906 | ) | (906 | ) | ||||||||||||||||||||||||
Restricted stock, executive and Board of Director awards | (300 | ) | 415 | 115 | ||||||||||||||||||||||||
Restricted stock vesting | 218 | 218 | ||||||||||||||||||||||||||
Forfeited restricted stock | 9 | (9 | ) | - | ||||||||||||||||||||||||
Cash dividends, $0.441 per share | (1,585 | ) | (1,585 | ) | ||||||||||||||||||||||||
Balance, June 30, 2019 | 3,938,673 | $ | 3,939 | $ | 55,096 | $ | 103,733 | $ | (337 | ) | $ | (14,410 | ) | $ | 148,021 | |||||||||||||
Balance, December 31, 2018 | 3,904,212 | 3,904 | 53,099 | 99,727 | (3,921 | ) | (13,580 | ) | 139,229 | |||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||
Net income | 9,251 | 9,251 | ||||||||||||||||||||||||||
Net other comprehensive income | 3,584 | 3,584 | ||||||||||||||||||||||||||
Stock dividend | 34,461 | 35 | 2,067 | (2,102 | ) | - | ||||||||||||||||||||||
Purchase of treasury stock (20,620 shares) | (1,236 | ) | (1,236 | ) | ||||||||||||||||||||||||
Restricted stock, executive and Board of Director awards | (300 | ) | 415 | 115 | ||||||||||||||||||||||||
Restricted stock vesting | 221 | 221 | ||||||||||||||||||||||||||
Forfeited restricted stock | 9 | (9 | ) | - | ||||||||||||||||||||||||
Cash dividends, $0.881 per share | (3,143 | ) | (3,143 | ) | ||||||||||||||||||||||||
Balance, June 30, 2019 | 3,938,673 | $ | 3,939 | $ | 55,096 | $ | 103,733 | $ | (337 | ) | $ | (14,410 | ) | $ | 148,021 | |||||||||||||
Balance, March 31, 2018 | 3,869,939 | $ | 3,870 | $ | 51,113 | $ | 92,713 | $ | (4,977 | ) | $ | (12,869 | ) | $ | 129,850 | |||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||
Net income | 4,691 | 4,691 | ||||||||||||||||||||||||||
Net other comprehensive loss | (380 | ) | (380 | ) | ||||||||||||||||||||||||
Stock dividend | 34,272 | 34 | 2,108 | (2,142 | ) | - | ||||||||||||||||||||||
Issuance of Common stock | 1 | - | ||||||||||||||||||||||||||
Purchase of treasury stock (3,382 shares) | (212 | ) | (212 | ) | ||||||||||||||||||||||||
Restricted stock, executive and Board of Director awards | (306 | ) | - | (306 | ) | |||||||||||||||||||||||
Restricted stock vesting | 183 | 183 | ||||||||||||||||||||||||||
Cash dividends, $0.427 per share | (1,545 | ) | (1,545 | ) | ||||||||||||||||||||||||
Balance, June 30, 2018 | 3,904,212 | $ | 3,904 | $ | 53,098 | $ | 93,717 | $ | (5,357 | ) | $ | (13,081 | ) | $ | 132,281 | |||||||||||||
Balance, December 31, 2017 | 3,869,939 | $ | 3,870 | $ | 51,108 | $ | 89,982 | $ | (3,398 | ) | $ | (12,551 | ) | $ | 129,011 | |||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||
Net income | 8,938 | 8,938 | ||||||||||||||||||||||||||
Net other comprehensive loss | (1,960 | ) | (1,960 | ) | ||||||||||||||||||||||||
Stock dividend | 34,272 | 34 | 2,108 | (2,142 | ) | - | ||||||||||||||||||||||
Issuance of Common stock | 1 | - | ||||||||||||||||||||||||||
Purchase of treasury stock (8,711 shares) | (543 | ) | (543 | ) | ||||||||||||||||||||||||
Restricted stock, executive and Board of Director awards | (306 | ) | 13 | (293 | ) | |||||||||||||||||||||||
Restricted stock vesting | 188 | 188 | ||||||||||||||||||||||||||
Change in Accounting policy for equity securities | (1 | ) | 1 | - | ||||||||||||||||||||||||
Cash dividends, $0.853 per share | (3,060 | ) | (3,060 | ) | ||||||||||||||||||||||||
Balance, June 30, 2018 | 3,904,212 | $ | 3,904 | $ | 53,098 | $ | 93,717 | $ | (5,357 | ) | $ | (13,081 | ) | $ | 132,281 | |||||||||||||
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) | 2018 | 2017 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 8,938 | $ | 6,771 | ||||
Adjustments to reconcile net income to net | ||||||||
cash provided by operating activities: | ||||||||
Provision for loan losses | 825 | 1,240 | ||||||
Depreciation and amortization | 182 | 199 | ||||||
Amortization and accretion of investment securities | 569 | 735 | ||||||
Deferred income taxes | 42 | (105 | ) | |||||
Equity and available for sale securities gains, net | (13 | ) | (195 | ) | ||||
Earnings on bank owned life insurance | (306 | ) | (333 | ) | ||||
Originations of loans held for sale | (7,260 | ) | (10,247 | ) | ||||
Proceeds from sales of loans held for sale | 6,849 | 11,840 | ||||||
Realized gains on loans sold | (132 | ) | (249 | ) | ||||
(Increase) decrease in accrued interest receivable | (89 | ) | 392 | |||||
Increase (decrease) in accrued interest payable | 6 | (92 | ) | |||||
Other, net | 23 | (166 | ) | |||||
Net cash provided by operating activities | 9,634 | 9,790 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Available-for-sale securities: | ||||||||
Proceeds from sales | - | 25,407 | ||||||
Proceeds from maturity and principal repayments | 31,351 | 36,510 | ||||||
Purchase of securities | (29,828 | ) | (13,829 | ) | ||||
Purchase of equity securities | (91 | ) | - | |||||
Purchase of interest bearing time deposits with other banks | (4,721 | ) | (4,069 | ) | ||||
Proceeds from sale of interest bearing time deposits with other banks | 1,239 | 1,745 | ||||||
Proceeds from matured interest bearing time deposits with other banks | - | 496 | ||||||
Proceeds from redemption of regulatory stock | 5,138 | 4,303 | ||||||
Purchase of regulatory stock | (5,574 | ) | (3,487 | ) | ||||
Net increase in loans | (39,375 | ) | (88,468 | ) | ||||
Purchase of premises and equipment | (140 | ) | (131 | ) | ||||
Proceeds from sale of foreclosed assets held for sale | 736 | 237 | ||||||
Net cash used in investing activities | (41,265 | ) | (41,286 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Net increase in deposits | 13,649 | 45,706 | ||||||
Proceeds from long-term borrowings | 4 | 5 | ||||||
Net short-term borrowed funds | 18,984 | (9,669 | ) | |||||
Purchase of treasury and restricted stock | (850 | ) | (509 | ) | ||||
Dividends paid | (3,060 | ) | (2,429 | ) | ||||
Net cash provided by financing activities | 28,727 | 33,104 | ||||||
Net (decrease) increase in cash and cash equivalents | (2,904 | ) | 1,608 | |||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 18,517 | 17,754 | ||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 15,613 | $ | 19,362 | ||||
Supplemental Disclosures of Cash Flow Information: | ||||||||
Interest paid | $ | 4,234 | $ | 2,769 | ||||
Income taxes paid | $ | 1,200 | $ | 2,075 | ||||
Loans transferred to foreclosed property | $ | 78 | $ | 335 | ||||
Investments purchased and not settled | $ | - | $ | 1,541 | ||||
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) | 2019 | 2018 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 9,251 | $ | 8,938 | ||||
Adjustments to reconcile net income to net | ||||||||
cash provided by operating activities: | ||||||||
Provision for loan losses | 750 | 825 | ||||||
Depreciation and amortization | 267 | 182 | ||||||
Amortization and accretion of investment securities | 294 | 569 | ||||||
Deferred income taxes | 660 | 42 | ||||||
Equity securities gains, net | (41 | ) | (13 | ) | ||||
Earnings on bank owned life insurance | (305 | ) | (306 | ) | ||||
Originations of loans held for sale | (7,628 | ) | (7,260 | ) | ||||
Proceeds from sales of loans held for sale | 8,077 | 6,849 | ||||||
Realized gains on loans sold | (163 | ) | (132 | ) | ||||
Increase in accrued interest receivable | (160 | ) | (89 | ) | ||||
Increase (decrease) in accrued interest payable | (28 | ) | 6 | |||||
Other, net | (656 | ) | 23 | |||||
Net cash provided by operating activities | 10,318 | 9,634 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Available-for-sale securities: | ||||||||
Proceeds from maturity and principal repayments | 30,767 | 31,351 | ||||||
Purchase of securities | (23,907 | ) | (29,828 | ) | ||||
Purchase of equity securities | - | (91 | ) | |||||
Purchase of interest bearing time deposits with other banks | - | (4,721 | ) | |||||
Proceeds from sale of interest bearing time deposits with other banks | - | 1,239 | ||||||
Proceeds from redemption of regulatory stock | 5,215 | 5,138 | ||||||
Purchase of regulatory stock | (5,472 | ) | (5,574 | ) | ||||
Net increase in loans | (21,456 | ) | (39,375 | ) | ||||
Purchase of premises and equipment | (165 | ) | (140 | ) | ||||
Proceeds from sale of premises and equipment | 7 | - | ||||||
Proceeds from sale of foreclosed assets held for sale | 452 | 736 | ||||||
Net cash used in investing activities | (14,559 | ) | (41,265 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Net (decrease) increase in deposits | (1,498 | ) | 13,649 | |||||
Proceeds from long-term borrowings | 5,000 | 4 | ||||||
Repayments of long-term borrowings | (3,123 | ) | - | |||||
Net increase in short-term borrowed funds | 7,913 | 18,984 | ||||||
Purchase of treasury and restricted stock | (1,236 | ) | (850 | ) | ||||
Dividends paid | (3,143 | ) | (3,060 | ) | ||||
Net cash provided by financing activities | 3,913 | 28,727 | ||||||
Net decrease in cash and cash equivalents | (328 | ) | (2,904 | ) | ||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 16,797 | 18,517 | ||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 16,469 | $ | 15,613 | ||||
Supplemental Disclosures of Cash Flow Information: | ||||||||
Interest paid | $ | 6,295 | $ | 4,234 | ||||
Income taxes paid | $ | 1,850 | $ | 1,200 | ||||
Loans transferred to foreclosed property | $ | 3,747 | $ | 78 | ||||
Right of use asset and liability | $ | 1,454 | $ | - | ||||
Stock dividend | $ | 2,102 | $ | 2,142 | ||||
The accompanying notes are an integral part of these unaudited consolidated financial statements. |
· | Service charges on deposit accounts – The Company has contracts with its deposit customers where fees are charged if certain parameters are not met. These agreements can be cancelled at any time by either the Company or the deposit customer. Revenue from these transactions is recognized on a monthly basis as the Company has an unconditional right to the fee consideration. The Company also has transaction fees related to specific transactions or activities resulting from a customer request or activity that include overdraft fees, online banking fees, interchange fees, ATM fees and other transaction fees. All of these fees are attributable to specific performance obligations of the Company where the revenue is recognized at a defined point in time upon the completion of the requested service/transaction. |
· | Trust fees – Typical contracts for trust services are based on a fixed percentage of the assets earned ratably over a defined period and billed on a monthly basis. Fees charged to |
· | Gains |
· | Brokerage and insurance – Fees includes commissions from the sales of investments and insurance products recognized on a trade date basis as the performance obligation is satisfied at the point in time in which the trade is processed. Additional fees are based on a percentage of the market value of customer accounts and billed on a monthly or quarterly basis. The |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
June 30 | June 30 | |||||||||||||||||||||||
Revenue stream | June 30, 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||
Service charges on deposit accounts | Three Months Ended | Six Months Ended | ||||||||||||||||||||||
Overdraft fees | $ | 381 | $ | 748 | $ | 369 | 381 | $ | 727 | 748 | ||||||||||||||
Statement fees | 51 | 105 | 50 | 51 | 101 | 105 | ||||||||||||||||||
Interchange revenue | 574 | 1,105 | 595 | 574 | 1,135 | 1,105 | ||||||||||||||||||
ATM income | 101 | 197 | 101 | 101 | 192 | 197 | ||||||||||||||||||
Other service charges | 63 | 119 | 59 | 63 | 118 | 119 | ||||||||||||||||||
Total Service Charges | 1,170 | 2,274 | 1,174 | 1,170 | 2,273 | 2,274 | ||||||||||||||||||
Trust | 150 | 401 | 209 | 150 | 441 | 401 | ||||||||||||||||||
Brokerage and insurance | 168 | 349 | 261 | 168 | 554 | 349 | ||||||||||||||||||
Other | 78 | 163 | 76 | 78 | 187 | 163 | ||||||||||||||||||
Total | $ | 1,566 | $ | 3,187 | $ | 1,720 | $ | 1,566 | $ | 3,455 | $ | 3,187 |
Three months ended | Six months ended | Three months ended | Six months ended | |||||||||||||||||||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
Net income applicable to common stock | $ | 4,691,000 | $ | 3,468,000 | $ | 8,938,000 | $ | 6,771,000 | $ | 4,846,000 | $ | 4,691,000 | $ | 9,251,000 | $ | 8,938,000 | ||||||||||||||||
Basic earnings per share computation | ||||||||||||||||||||||||||||||||
Weighted average common shares outstanding | 3,507,242 | 3,514,394 | 3,509,882 | 3,513,925 | 3,523,135 | 3,541,703 | 3,525,788 | 3,544,343 | ||||||||||||||||||||||||
Earnings per share - basic | $ | 1.34 | $ | 0.99 | $ | 2.55 | $ | 1.93 | $ | 1.38 | $ | 1.32 | $ | 2.62 | $ | 2.52 | ||||||||||||||||
Diluted earnings per share computation | ||||||||||||||||||||||||||||||||
Weighted average common shares outstanding for basic earnings per share | 3,507,242 | 3,514,394 | 3,509,882 | 3,513,925 | 3,523,135 | 3,541,703 | 3,525,788 | 3,544,343 | ||||||||||||||||||||||||
Add: Dilutive effects of restricted stock | 1,467 | 1,188 | 631 | 610 | 1,382 | 1,467 | 695 | 631 | ||||||||||||||||||||||||
Weighted average common shares outstanding for dilutive earnings per share | 3,508,709 | 3,515,582 | 3,510,513 | 3,514,535 | 3,524,517 | 3,543,170 | 3,526,483 | 3,544,974 | ||||||||||||||||||||||||
Earnings per share - diluted | $ | 1.34 | $ | 0.99 | $ | 2.55 | $ | 1.93 | $ | 1.38 | $ | 1.32 | $ | 2.62 | $ | 2.52 |
Gross | Gross | |||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
June 30, 2018 | Cost | Gains | Losses | Value | ||||||||||||
Available-for-sale securities: | ||||||||||||||||
U.S. agency securities | $ | 103,190 | $ | 30 | $ | (1,232 | ) | $ | 101,988 | |||||||
U.S. treasury securities | 33,783 | - | (791 | ) | 32,992 | |||||||||||
Obligations of state and | ||||||||||||||||
political subdivisions | 67,763 | 456 | (347 | ) | 67,872 | |||||||||||
Corporate obligations | 3,000 | 23 | - | 3,023 | ||||||||||||
Mortgage-backed securities in | ||||||||||||||||
government sponsored entities | 45,202 | 3 | (1,055 | ) | 44,150 | |||||||||||
Total available-for-sale securities | $ | 252,938 | $ | 512 | $ | (3,425 | ) | $ | 250,025 |
Gross | Gross | Gross | Gross | |||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||||||||||
December 31, 2017 | Cost | Gains | Losses | Value | ||||||||||||||||||||||||||||
June 30, 2019 | Cost | Gains | Losses | Value | ||||||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||||||||
U.S. agency securities | $ | 99,454 | $ | 26 | $ | (593 | ) | $ | 98,887 | $ | 92,468 | $ | 1,869 | $ | (106 | ) | $ | 94,231 | ||||||||||||||
U.S. treasury securities | 28,782 | - | (178 | ) | 28,604 | 33,843 | 254 | (1 | ) | 34,096 | ||||||||||||||||||||||
Obligations of state and | ||||||||||||||||||||||||||||||||
political subdivisions | 78,409 | 820 | (139 | ) | 79,090 | 57,831 | 691 | (7 | ) | 58,515 | ||||||||||||||||||||||
Corporate obligations | 3,000 | 83 | - | 3,083 | 3,000 | 80 | - | 3,080 | ||||||||||||||||||||||||
Mortgage-backed securities in | ||||||||||||||||||||||||||||||||
government sponsored entities | 45,385 | 19 | (377 | ) | 45,027 | 46,414 | 508 | (104 | ) | 46,818 | ||||||||||||||||||||||
Equity securities in financial institutions | 92 | - | (1 | ) | 91 | |||||||||||||||||||||||||||
Total available-for-sale securities | $ | 255,122 | $ | 948 | $ | (1,288 | ) | $ | 254,782 | $ | 233,556 | $ | 3,402 | $ | (218 | ) | $ | 236,740 | ||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||||||||
U.S. agency securities | $ | 106,516 | $ | 509 | $ | (640 | ) | $ | 106,385 | |||||||||||||||||||||||
U.S. treasury securities | 33,813 | - | (455 | ) | 33,358 | |||||||||||||||||||||||||||
Obligations of state and | ||||||||||||||||||||||||||||||||
political subdivisions | 52,074 | 150 | (177 | ) | 52,047 | |||||||||||||||||||||||||||
Corporate obligations | 3,000 | 34 | - | 3,034 | ||||||||||||||||||||||||||||
Mortgage-backed securities in | ||||||||||||||||||||||||||||||||
government sponsored entities | 46,839 | 59 | (712 | ) | 46,186 | |||||||||||||||||||||||||||
Total available-for-sale securities | $ | 242,242 | $ | 752 | $ | (1,984 | ) | $ | 241,010 |
June 30, 2019 | Less than Twelve Months | Twelve Months or Greater | Total | |||||||||||||||||||||
Gross | Gross | Gross | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
U.S. agency securities | $ | - | $ | - | $ | 36,648 | $ | (106 | ) | $ | 36,648 | $ | (106 | ) | ||||||||||
U.S. treasury securities | - | - | 1,987 | (1 | ) | 1,987 | (1 | ) | ||||||||||||||||
Obligations of state and | ||||||||||||||||||||||||
political subdivisions | - | - | 1,843 | (7 | ) | 1,843 | (7 | ) | ||||||||||||||||
Mortgage-backed securities in | ||||||||||||||||||||||||
government sponsored entities | - | - | 18,381 | (104 | ) | 18,381 | (104 | ) | ||||||||||||||||
Total securities | $ | - | $ | - | $ | 59,077 | $ | (218 | ) | $ | 59,077 | $ | (218 | ) | ||||||||||
December 31, 2018 | ||||||||||||||||||||||||
U.S. agency securities | $ | 5,981 | $ | (5 | ) | $ | 52,673 | $ | (635 | ) | $ | 58,654 | $ | (640 | ) | |||||||||
U.S. treasury securities | 4,948 | (31 | ) | 28,410 | (424 | ) | 33,358 | (455 | ) | |||||||||||||||
Obligations of states and | ||||||||||||||||||||||||
political subdivisions | 8,979 | (22 | ) | 12,441 | (155 | ) | 21,420 | (177 | ) | |||||||||||||||
Mortgage-backed securities in | ||||||||||||||||||||||||
government sponsored entities | 5,272 | (18 | ) | 32,570 | (694 | ) | 37,842 | (712 | ) | |||||||||||||||
Total securities | $ | 25,180 | $ | (76 | ) | $ | 126,094 | $ | (1,908 | ) | $ | 151,274 | $ | (1,984 | ) |
June 30, 2018 | Less than Twelve Months | Twelve Months or Greater | Total | |||||||||||||||||||||
Gross | Gross | Gross | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
U.S. agency securities | $ | 76,159 | $ | (978 | ) | $ | 19,842 | $ | (254 | ) | $ | 96,001 | $ | (1,232 | ) | |||||||||
U.S. treasury securities | 32,992 | (791 | ) | - | - | 32,992 | (791 | ) | ||||||||||||||||
Obligations of state and | ||||||||||||||||||||||||
political subdivisions | 22,564 | (220 | ) | 6,007 | (127 | ) | 28,571 | (347 | ) | |||||||||||||||
Mortgage-backed securities in | ||||||||||||||||||||||||
government sponsored entities | 25,918 | (399 | ) | 17,677 | (656 | ) | 43,595 | (1,055 | ) | |||||||||||||||
Total securities | $ | 157,633 | $ | (2,388 | ) | $ | 43,526 | $ | (1,037 | ) | $ | 201,159 | $ | (3,425 | ) | |||||||||
December 31, 2017 | ||||||||||||||||||||||||
U.S. agency securities | $ | 74,952 | $ | (421 | ) | $ | 16,928 | $ | (172 | ) | $ | 91,880 | $ | (593 | ) | |||||||||
U.S. treasury securities | 28,604 | (178 | ) | - | - | 28,604 | (178 | ) | ||||||||||||||||
Obligations of states and | ||||||||||||||||||||||||
political subdivisions | 14,885 | (85 | ) | 5,958 | (54 | ) | 20,843 | (139 | ) | |||||||||||||||
Mortgage-backed securities in | ||||||||||||||||||||||||
government sponsored entities | 27,154 | (190 | ) | 13,822 | (187 | ) | 40,976 | (377 | ) | |||||||||||||||
Equity securities in financial institutions | 91 | (1 | ) | - | - | 91 | (1 | ) | ||||||||||||||||
Total securities | $ | 145,686 | $ | (875 | ) | $ | 36,708 | $ | (413 | ) | $ | 182,394 | $ | (1,288 | ) |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Gross gains on available for sale securities | $ | - | $ | 30 | $ | - | $ | 202 | ||||||||
Gross losses on available for sale securities | - | (7 | ) | - | (7 | ) | ||||||||||
Net gains | $ | - | $ | 23 | $ | - | $ | 195 |
Three Months Ended June 30, 2018 | Six Months Ended June 30, 2018 | |||||||
Net gains recognized in equity securities during the period | $ | 7 | $ | 13 | ||||
Less: Net gains realized on the sale of equity securities during the period | - | - | ||||||
Unrealized gains recognized in equity securities held at reporting date | $ | 7 | $ | 13 |
Three Months Ended | Six Months Ended | |||||||||||||||
June. 30, | June. 30, | |||||||||||||||
Equity securities | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Net gains (losses) recognized in equity securities during the period | $ | 30 | $ | 7 | $ | 41 | $ | 13 | ||||||||
Less: Net gains realized on the sale of equity securities during the period | - | - | - | - | ||||||||||||
Net unrealized gains (losses) | $ | 30 | $ | 7 | $ | 41 | $ | 13 |
Amortized | Amortized | |||||||||||||||
Cost | Fair Value | Cost | Fair Value | |||||||||||||
Available-for-sale debt securities: | ||||||||||||||||
Due in one year or less | $ | 47,012 | $ | 47,121 | $ | 23,352 | $ | 23,288 | ||||||||
Due after one year through five years | 106,241 | 104,395 | 109,730 | 111,676 | ||||||||||||
Due after five years through ten years | 50,336 | 49,644 | 36,649 | 37,289 | ||||||||||||
Due after ten years | 49,349 | 48,865 | 63,825 | 64,487 | ||||||||||||
Total | $ | 252,938 | $ | 250,025 | $ | 233,556 | $ | 236,740 |
June 30, 2018 | Total Loans | Individually evaluated for impairment | Loans acquired with deteriorated credit quality | Collectively evaluated for impairment | ||||||||||||
Real estate loans: | ||||||||||||||||
Residential | $ | 213,242 | $ | 1,131 | $ | 30 | $ | 212,081 | ||||||||
Commercial | 309,571 | 13,791 | 1,388 | 294,392 | ||||||||||||
Agricultural | 262,691 | 5,204 | 683 | 256,804 | ||||||||||||
Construction | 27,901 | - | - | 27,901 | ||||||||||||
Consumer | 9,740 | - | - | 9,740 | ||||||||||||
Other commercial loans | 75,002 | 3,934 | 425 | 70,643 | ||||||||||||
Other agricultural loans | 42,131 | 1,471 | - | 40,660 | ||||||||||||
State and political subdivision loans | 99,922 | - | - | 99,922 | ||||||||||||
Total | 1,040,200 | 25,531 | 2,526 | 1,012,143 | ||||||||||||
Allowance for loan losses | 11,941 | 405 | - | 11,536 | ||||||||||||
Net loans | $ | 1,028,259 | $ | 25,126 | $ | 2,526 | $ | 1,000,607 |
December 31, 2017 | Total Loans | Individually evaluated for impairment | Loans acquired with deteriorated credit quality | Collectively evaluated for impairment | ||||||||||||
Real estate loans: | ||||||||||||||||
Residential | $ | 214,479 | $ | 1,065 | $ | 33 | $ | 213,381 | ||||||||
Commercial | 308,084 | 13,864 | 1,460 | 292,760 | ||||||||||||
Agricultural | 239,957 | 3,901 | 702 | 235,354 | ||||||||||||
Construction | 13,502 | - | - | 13,502 | ||||||||||||
Consumer | 9,944 | 8 | - | 9,936 | ||||||||||||
Other commercial loans | 72,013 | 4,197 | 443 | 67,373 | ||||||||||||
Other agricultural loans | 37,809 | 1,363 | - | 36,446 | ||||||||||||
State and political subdivision loans | 104,737 | - | - | 104,737 | ||||||||||||
Total | 1,000,525 | 24,398 | 2,638 | 973,489 | ||||||||||||
Allowance for loan losses | 11,190 | 410 | - | 10,780 | ||||||||||||
Net loans | $ | 989,335 | $ | 23,988 | $ | 2,638 | $ | 962,709 |
June 30, 2019 | Total Loans | Individually evaluated for impairment | Loans acquired with deteriorated credit quality | Collectively evaluated for impairment | ||||||||||||
Real estate loans: | ||||||||||||||||
Residential | $ | 213,014 | $ | 1,186 | $ | 26 | $ | 211,802 | ||||||||
Commercial | 347,430 | 11,969 | 1,228 | 334,233 | ||||||||||||
Agricultural | 294,332 | 4,816 | - | 289,516 | ||||||||||||
Construction | 20,950 | - | - | 20,950 | ||||||||||||
Consumer | 9,854 | 5 | - | 9,849 | ||||||||||||
Other commercial loans | 76,179 | 2,134 | 320 | 73,725 | ||||||||||||
Other agricultural loans | 41,689 | 1,411 | - | 40,278 | ||||||||||||
State and political subdivision loans | 96,174 | - | - | 96,174 | ||||||||||||
Total | 1,099,622 | 21,521 | 1,574 | 1,076,527 | ||||||||||||
Allowance for loan losses | 13,304 | 803 | - | 12,501 | ||||||||||||
Net loans | $ | 1,086,318 | $ | 20,718 | $ | 1,574 | $ | 1,064,026 | ||||||||
December 31, 2018 | Total Loans | Individually evaluated for impairment | Loans acquired with deteriorated credit quality | Collectively evaluated for impairment | ||||||||||||
Real estate loans: | ||||||||||||||||
Residential | $ | 215,305 | $ | 890 | $ | 28 | $ | 214,387 | ||||||||
Commercial | 319,265 | 13,327 | 1,321 | 304,617 | ||||||||||||
Agricultural | 284,520 | 5,592 | - | 278,928 | ||||||||||||
Construction | 33,913 | - | - | 33,913 | ||||||||||||
Consumer | 9,858 | - | - | 9,858 | ||||||||||||
Other commercial loans | 74,118 | 2,206 | 510 | 71,402 | ||||||||||||
Other agricultural loans | 42,186 | 1,435 | - | 40,751 | ||||||||||||
State and political subdivision loans | 102,718 | - | - | 102,718 | ||||||||||||
Total | 1,081,883 | 23,450 | 1,859 | 1,056,574 | ||||||||||||
Allowance for loan losses | 12,884 | 676 | - | 12,208 | ||||||||||||
Net loans | $ | 1,068,999 | $ | 22,774 | $ | 1,859 | $ | 1,044,366 |
Three months ended | Six months ended | Three months ended | Six months ended | |||||||||||||||||||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
Balance at beginning of period | $ | 82 | $ | 275 | $ | 106 | $ | 389 | $ | 102 | $ | 82 | $ | 104 | $ | 106 | ||||||||||||||||
Accretion | (23 | ) | (108 | ) | (47 | ) | (222 | ) | (2 | ) | (23 | ) | (4 | ) | (47 | ) | ||||||||||||||||
Balance at end of period | $ | 59 | $ | 167 | $ | 59 | $ | 167 | $ | 100 | $ | 59 | $ | 100 | $ | 59 |
June 30, 2018 | December 31, 2017 | June 30, 2019 | December 31, 2018 | |||||||||||||
Outstanding balance | $ | 5,262 | $ | 5,295 | $ | 4,332 | $ | 4,529 | ||||||||
Carrying amount | 2,526 | 2,638 | 1,574 | 1,859 |
Recorded | Recorded | |||||||||||||||||||
Unpaid | Investment | Investment | Total | |||||||||||||||||
Principal | With No | With | Recorded | Related | ||||||||||||||||
June 30, 2018 | Balance | Allowance | Allowance | Investment | Allowance | |||||||||||||||
Real estate loans: | ||||||||||||||||||||
Mortgages | $ | 1,138 | $ | 261 | $ | 776 | $ | 1,037 | $ | 15 | ||||||||||
Home Equity | 111 | 14 | 80 | 94 | 15 | |||||||||||||||
Commercial | 16,576 | 12,442 | 1,349 | 13,791 | 159 | |||||||||||||||
Agricultural | 5,210 | 3,648 | 1,556 | 5,204 | 25 | |||||||||||||||
Construction | - | - | - | - | - | |||||||||||||||
Consumer | - | - | - | - | - | |||||||||||||||
Other commercial loans | 4,489 | 3,552 | 382 | 3,934 | 151 | |||||||||||||||
Other agricultural loans | 1,514 | 1,295 | 176 | 1,471 | 40 | |||||||||||||||
State and political subdivision loans | - | - | - | - | - | |||||||||||||||
Total | $ | 29,038 | $ | 21,212 | $ | 4,319 | $ | 25,531 | $ | 405 |
Recorded | Recorded | Recorded | Recorded | |||||||||||||||||||||||||||||||||||||
Unpaid | Investment | Investment | Total | Unpaid | Investment | Investment | Total | |||||||||||||||||||||||||||||||||
Principal | With No | With | Recorded | Related | Principal | With No | With | Recorded | Related | |||||||||||||||||||||||||||||||
December 31, 2017 | Balance | Allowance | Allowance | Investment | Allowance | |||||||||||||||||||||||||||||||||||
June 30, 2019 | Balance | Allowance | Allowance | Investment | Allowance | |||||||||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||||||||||||
Mortgages | $ | 1,055 | $ | 273 | $ | 700 | $ | 973 | $ | 47 | $ | 1,228 | $ | 832 | $ | 233 | $ | 1,065 | $ | 10 | ||||||||||||||||||||
Home Equity | 92 | 40 | 52 | 92 | 9 | 269 | 50 | 71 | 121 | 13 | ||||||||||||||||||||||||||||||
Commercial | 16,363 | 13,154 | 710 | 13,864 | 94 | 12,510 | 10,517 | 1,452 | 11,969 | 333 | ||||||||||||||||||||||||||||||
Agricultural | 5,231 | 3,283 | 618 | 3,901 | 3 | 4,842 | 1,641 | 3,175 | 4,816 | 146 | ||||||||||||||||||||||||||||||
Construction | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Consumer | 10 | 2 | 6 | 8 | - | 5 | 5 | - | 5 | - | ||||||||||||||||||||||||||||||
Other commercial loans | 4,739 | 3,766 | 431 | 4,197 | 231 | 2,715 | 1,821 | 313 | 2,134 | 143 | ||||||||||||||||||||||||||||||
Other agricultural loans | 1,397 | 1,238 | 125 | 1,363 | 26 | 1,468 | 102 | 1,309 | 1,411 | 158 | ||||||||||||||||||||||||||||||
State and political subdivision loans | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Total | $ | 28,887 | $ | 21,756 | $ | 2,642 | $ | 24,398 | $ | 410 | $ | 23,037 | $ | 14,968 | $ | 6,553 | $ | 21,521 | $ | 803 |
Recorded | Recorded | |||||||||||||||||||
Unpaid | Investment | Investment | Total | |||||||||||||||||
Principal | With No | With | Recorded | Related | ||||||||||||||||
December 31, 2018 | Balance | Allowance | Allowance | Investment | Allowance | |||||||||||||||
Real estate loans: | ||||||||||||||||||||
Mortgages | $ | 932 | $ | 515 | $ | 288 | $ | 803 | $ | 10 | ||||||||||
Home Equity | 106 | 12 | 75 | 87 | 14 | |||||||||||||||
Commercial | 16,326 | 11,933 | 1,394 | 13,327 | 216 | |||||||||||||||
Agricultural | 5,598 | 2,386 | 3,206 | 5,592 | 84 | |||||||||||||||
Construction | - | - | - | - | - | |||||||||||||||
Consumer | - | - | - | - | - | |||||||||||||||
Other commercial loans | 2,711 | 1,836 | 370 | 2,206 | 193 | |||||||||||||||
Other agricultural loans | 1,487 | 120 | 1,315 | 1,435 | 159 | |||||||||||||||
State and political subdivision loans | - | - | - | - | - | |||||||||||||||
Total | $ | 27,160 | $ | 16,802 | $ | 6,648 | $ | 23,450 | $ | 676 |
For the Six Months Ended | ||||||||||||||||||||||||
June 30, 2019 | June 30, 2018 | |||||||||||||||||||||||
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 | $ | 1,088 | $ | 9 | $ | - | $ | 1,034 | $ | 7 | $ | - | ||||||||||||
Home Equity | 90 | 2 | - | 101 | 2 | - | ||||||||||||||||||
Commercial | 11,699 | 230 | 11 | 13,814 | 242 | 8 | ||||||||||||||||||
Agricultural | 5,205 | 56 | - | 4,135 | 100 | - | ||||||||||||||||||
Construction | - | - | - | - | - | - | ||||||||||||||||||
Consumer | 1 | - | - | 2 | - | - | ||||||||||||||||||
Other commercial loans | 2,096 | 1 | - | 4,112 | 52 | - | ||||||||||||||||||
Other agricultural loans | 1,424 | 4 | - | 1,356 | 19 | - | ||||||||||||||||||
State and political subdivision loans | - | - | - | - | - | - | ||||||||||||||||||
Total | $ | 21,603 | $ | 302 | $ | 11 | $ | 24,554 | $ | 422 | $ | 8 | ||||||||||||
For the Three Months Ended | ||||||||||||||||||||||||
June 30, 2019 | June 30, 2018 | |||||||||||||||||||||||
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 | $ | 1,073 | $ | 5 | $ | - | $ | 1,045 | $ | 3 | $ | - | ||||||||||||
Home Equity | 95 | 1 | - | 95 | 1 | - | ||||||||||||||||||
Commercial | 10,849 | 111 | 5 | 13,833 | 120 | 3 | ||||||||||||||||||
Agricultural | 4,835 | 24 | - | 4,185 | 49 | - | ||||||||||||||||||
Construction | - | - | - | - | - | - | ||||||||||||||||||
Consumer | 2 | - | - | - | - | - | ||||||||||||||||||
Other commercial loans | 2,056 | - | - | 4,067 | 26 | - | ||||||||||||||||||
Other agricultural loans | 1,416 | 2 | - | 1,342 | 9 | - | ||||||||||||||||||
State and political subdivision loans | - | - | - | - | - | - | ||||||||||||||||||
Total | $ | 20,326 | $ | 143 | $ | 5 | $ | 24,567 | $ | 208 | $ | 3 |
For the Three Months Ended | ||||||||||||||||||||||||
June 30, 2018 | June 30, 2017 | |||||||||||||||||||||||
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 | $ | 1,045 | $ | 3 | $ | - | $ | 986 | $ | 3 | $ | - | ||||||||||||
Home Equity | 95 | 1 | - | 60 | 1 | - | ||||||||||||||||||
Commercial | 13,833 | 120 | 3 | 12,980 | 134 | - | ||||||||||||||||||
Agricultural | 4,185 | 49 | - | 3,641 | 32 | - | ||||||||||||||||||
Construction | - | - | - | - | - | - | ||||||||||||||||||
Consumer | - | - | - | 3 | - | - | ||||||||||||||||||
Other commercial loans | 4,067 | 26 | - | 5,029 | 37 | 17 | ||||||||||||||||||
Other agricultural loans | 1,342 | 9 | - | 1,515 | 22 | - | ||||||||||||||||||
State and political subdivision loans | - | - | - | - | - | - | ||||||||||||||||||
Total | $ | 24,567 | $ | 208 | $ | 3 | $ | 24,214 | $ | 229 | $ | 17 |
For the Six Months ended | ||||||||||||||||||||||||
June 30, 2018 | June 30, 2017 | |||||||||||||||||||||||
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 | $ | 1,034 | $ | 7 | $ | - | $ | 940 | $ | 6 | $ | - | ||||||||||||
Home Equity | 101 | 2 | - | 58 | 2 | - | ||||||||||||||||||
Commercial | 13,814 | 242 | 8 | 9,387 | 158 | 3 | ||||||||||||||||||
Agricultural | 4,135 | 100 | - | 3,513 | 63 | - | ||||||||||||||||||
Construction | - | - | - | - | - | - | ||||||||||||||||||
Consumer | 2 | - | - | 2 | - | - | ||||||||||||||||||
Other commercial loans | 4,112 | 52 | - | 5,313 | 77 | 27 | ||||||||||||||||||
Other agricultural loans | 1,356 | 19 | - | 1,571 | 45 | - | ||||||||||||||||||
State and political subdivision loans | - | - | - | - | - | - | ||||||||||||||||||
Total | $ | 24,554 | $ | 422 | $ | 8 | $ | 20,784 | $ | 351 | $ | 30 |
· | 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, 2018 | Pass | Special Mention | Substandard | Doubtful | Loss | Ending Balance | ||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||
Commercial | $ | 284,415 | $ | 13,347 | $ | 11,690 | $ | 119 | $ | - | $ | 309,571 | ||||||||||||
Agricultural | 244,605 | 12,427 | 5,659 | - | - | 262,691 | ||||||||||||||||||
Construction | 27,901 | - | - | - | - | 27,901 | ||||||||||||||||||
Other commercial loans | 71,036 | 870 | 2,975 | 121 | - | 75,002 | ||||||||||||||||||
Other agricultural loans | 39,753 | 1,048 | 1,330 | - | - | 42,131 | ||||||||||||||||||
State and political | ||||||||||||||||||||||||
subdivision loans | 89,602 | - | 10,320 | - | - | 99,922 | ||||||||||||||||||
Total | $ | 757,312 | $ | 27,692 | $ | 31,974 | $ | 240 | $ | - | $ | 817,218 |
December 31, 2017 | Pass | Special Mention | Substandard | Doubtful | Loss | Ending Balance | ||||||||||||||||||||||||||||||||||||||||||
June 30, 2019 | Pass | Special Mention | Substandard | Doubtful | Loss | Ending Balance | ||||||||||||||||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 281,742 | $ | 15,029 | $ | 11,271 | $ | 42 | $ | - | $ | 308,084 | $ | 328,915 | $ | 10,477 | $ | 7,999 | $ | 39 | $ | - | $ | 347,430 | ||||||||||||||||||||||||
Agricultural | 222,198 | 11,538 | 6,221 | - | - | 239,957 | 271,630 | 14,714 | 7,988 | - | - | 294,332 | ||||||||||||||||||||||||||||||||||||
Construction | 13,364 | - | 138 | - | - | 13,502 | 20,950 | - | - | - | - | 20,950 | ||||||||||||||||||||||||||||||||||||
Other commercial loans | 67,706 | 615 | 3,567 | 125 | - | 72,013 | 72,705 | 1,015 | 2,391 | 68 | - | 76,179 | ||||||||||||||||||||||||||||||||||||
Other agricultural loans | 34,914 | 1,325 | 1,570 | - | - | 37,809 | 38,231 | 1,706 | 1,752 | - | - | 41,689 | ||||||||||||||||||||||||||||||||||||
State and political | ||||||||||||||||||||||||||||||||||||||||||||||||
subdivision loans | 94,125 | - | 10,612 | - | - | 104,737 | ||||||||||||||||||||||||||||||||||||||||||
State and political subdivision loans | 95,667 | - | 507 | - | - | 96,174 | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | 714,049 | $ | 28,507 | $ | 33,379 | $ | 167 | $ | - | $ | 776,102 | $ | 828,098 | $ | 27,912 | $ | 20,637 | $ | 107 | $ | - | $ | 876,754 |
December 31, 2018 | Pass | Special Mention | Substandard | Doubtful | Loss | Ending Balance | ||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||
Commercial | $ | 297,690 | $ | 10,792 | $ | 10,743 | $ | 40 | $ | - | $ | 319,265 | ||||||||||||
Agricultural | 264,732 | 10,017 | 9,771 | - | - | 284,520 | ||||||||||||||||||
Construction | 33,913 | - | - | - | - | 33,913 | ||||||||||||||||||
Other commercial loans | 70,425 | 777 | 2,800 | 116 | - | 74,118 | ||||||||||||||||||
Other agricultural loans | 38,628 | 1,724 | 1,834 | - | - | 42,186 | ||||||||||||||||||
State and political subdivision loans | 92,666 | 9,481 | 571 | - | - | 102,718 | ||||||||||||||||||
Total | $ | 798,054 | $ | 32,791 | $ | 25,719 | $ | 156 | $ | - | $ | 856,720 |
June 30, 2018 | Performing | Non-performing | PCI | Total | ||||||||||||
Real estate loans: | ||||||||||||||||
Mortgages | $ | 153,342 | $ | 1,375 | $ | 30 | $ | 154,747 | ||||||||
Home Equity | 58,377 | 118 | - | 58,495 | ||||||||||||
Consumer | 9,683 | 57 | - | 9,740 | ||||||||||||
Total | $ | 221,402 | $ | 1,550 | $ | 30 | $ | 222,982 |
December 31, 2017 | Performing | Non-performing | PCI | Total | ||||||||||||||||||||||||||||
June 30, 2019 | Performing | Non-performing | PCI | Total | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||||
Mortgages | $ | 152,820 | $ | 1,492 | $ | 33 | $ | 154,345 | $ | 153,059 | $ | 1,046 | $ | 26 | $ | 154,131 | ||||||||||||||||
Home Equity | 60,022 | 112 | - | $ | 60,134 | 58,759 | 124 | - | 58,883 | |||||||||||||||||||||||
Consumer | 9,895 | 49 | - | $ | 9,944 | 9,852 | 2 | - | 9,854 | |||||||||||||||||||||||
Total | $ | 222,737 | $ | 1,653 | $ | 33 | $ | 224,423 | $ | 221,670 | $ | 1,172 | $ | 26 | $ | 222,868 | ||||||||||||||||
December 31, 2018 | Performing | Non-performing | PCI | Total | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||||
Mortgages | $ | 155,360 | $ | 1,099 | $ | 28 | $ | 156,487 | ||||||||||||||||||||||||
Home Equity | 58,736 | 82 | - | $ | 58,818 | |||||||||||||||||||||||||||
Consumer | 9,832 | 26 | - | $ | 9,858 | |||||||||||||||||||||||||||
Total | $ | 223,928 | $ | 1,207 | $ | 28 | $ | 225,163 |
90 Days or | ||||||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | 90 Days | Total Past | Total Financing | Greater and | |||||||||||||||||||||||||||
June 30, 2018 | Past Due | Past Due | Or Greater | Due | Current | PCI | Receivables | Accruing | ||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||||
Mortgages | $ | 476 | $ | 202 | $ | 796 | $ | 1,474 | $ | 153,243 | $ | 30 | $ | 154,747 | $ | - | ||||||||||||||||
Home Equity | 220 | 8 | 94 | 322 | 58,173 | - | 58,495 | - | ||||||||||||||||||||||||
Commercial | 1,649 | 2,019 | 4,201 | 7,869 | 300,314 | 1,388 | 309,571 | 38 | ||||||||||||||||||||||||
Agricultural | 8 | 1,105 | 702 | 1,815 | 260,193 | 683 | 262,691 | 543 | ||||||||||||||||||||||||
Construction | - | - | - | - | 27,901 | - | 27,901 | - | ||||||||||||||||||||||||
Consumer | 31 | 26 | 32 | 89 | 9,651 | - | 9,740 | 32 | ||||||||||||||||||||||||
Other commercial loans | 47 | 8 | 2,324 | 2,379 | 72,198 | 425 | 75,002 | - | ||||||||||||||||||||||||
Other agricultural loans | 182 | 569 | 433 | 1,184 | 40,947 | - | 42,131 | 433 | ||||||||||||||||||||||||
State and political | ||||||||||||||||||||||||||||||||
subdivision loans | - | - | - | - | 99,922 | - | 99,922 | - | ||||||||||||||||||||||||
Total | $ | 2,613 | $ | 3,937 | $ | 8,582 | $ | 15,132 | $ | 1,022,542 | $ | 2,526 | $ | 1,040,200 | $ | 1,046 | ||||||||||||||||
Loans considered non-accrual | $ | 617 | $ | 790 | $ | 7,536 | $ | 8,943 | $ | 1,988 | $ | - | $ | 10,931 | ||||||||||||||||||
Loans still accruing | 1,996 | 3,147 | 1,046 | 6,189 | 1,020,554 | 2,526 | 1,029,269 | |||||||||||||||||||||||||
Total | $ | 2,613 | $ | 3,937 | $ | 8,582 | $ | 15,132 | $ | 1,022,542 | $ | 2,526 | $ | 1,040,200 |
90 Days or | ||||||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | 90 Days | Total Past | Total Financing | Greater and | |||||||||||||||||||||||||||
December 31, 2017 | Past Due | Past Due | Or Greater | Due | Current | PCI | Receivables | Accruing | ||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||||
Mortgages | $ | 996 | $ | 362 | $ | 810 | $ | 2,168 | $ | 152,144 | $ | 33 | $ | 154,345 | $ | 218 | ||||||||||||||||
Home Equity | 277 | 86 | 78 | 441 | 59,693 | - | 60,134 | - | ||||||||||||||||||||||||
Commercial | 1,353 | 1,010 | 3,865 | 6,228 | 300,396 | 1,460 | 308,084 | 162 | ||||||||||||||||||||||||
Agricultural | 242 | - | 205 | 447 | 238,808 | 702 | 239,957 | 30 | ||||||||||||||||||||||||
Construction | - | - | 133 | 133 | 13,369 | - | 13,502 | - | ||||||||||||||||||||||||
Consumer | 53 | 33 | 49 | 135 | 9,809 | - | 9,944 | 7 | ||||||||||||||||||||||||
Other commercial loans | 132 | - | 2,372 | 2,504 | 69,066 | 443 | 72,013 | 32 | ||||||||||||||||||||||||
Other agricultural loans | - | 42 | 106 | 148 | 37,661 | - | 37,809 | 106 | ||||||||||||||||||||||||
State and political | ||||||||||||||||||||||||||||||||
subdivision loans | - | - | - | - | 104,737 | - | 104,737 | - | ||||||||||||||||||||||||
Total | $ | 3,053 | $ | 1,533 | $ | 7,618 | $ | 12,204 | $ | 985,683 | $ | 2,638 | $ | 1,000,525 | $ | 555 | ||||||||||||||||
Loans considered non-accrual | $ | 816 | $ | 281 | $ | 7,063 | $ | 8,160 | $ | 2,011 | $ | - | $ | 10,171 | ||||||||||||||||||
Loans still accruing | 2,237 | 1,252 | 555 | 4,044 | 983,672 | 2,638 | 990,354 | |||||||||||||||||||||||||
Total | $ | 3,053 | $ | 1,533 | $ | 7,618 | $ | 12,204 | $ | 985,683 | $ | 2,638 | $ | 1,000,525 |
Total | 90 Days or | |||||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | 90 Days | Total Past | Financing | Greater and | |||||||||||||||||||||||||||
June 30, 2019 | Past Due | Past Due | Or Greater | Due | Current | PCI | Receivables | Accruing | ||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||||
Mortgages | $ | 271 | $ | 90 | $ | 491 | $ | 852 | $ | 153,253 | $ | 26 | $ | 154,131 | $ | 103 | ||||||||||||||||
Home Equity | 172 | 33 | 107 | 312 | 58,571 | - | 58,883 | 50 | ||||||||||||||||||||||||
Commercial | 1,293 | 1,274 | 3,292 | 5,859 | 340,343 | 1,228 | 347,430 | - | ||||||||||||||||||||||||
Agricultural | 28 | 79 | 3,174 | 3,281 | 291,051 | - | 294,332 | - | ||||||||||||||||||||||||
Construction | - | - | - | - | 20,950 | - | 20,950 | - | ||||||||||||||||||||||||
Consumer | 40 | 31 | 2 | 73 | 9,781 | - | 9,854 | 2 | ||||||||||||||||||||||||
Other commercial loans | 196 | 26 | 1,924 | 2,146 | 73,713 | 320 | 76,179 | 20 | ||||||||||||||||||||||||
Other agricultural loans | 349 | 59 | 1,196 | 1,604 | 40,085 | - | 41,689 | - | ||||||||||||||||||||||||
State and political | ||||||||||||||||||||||||||||||||
subdivision loans | - | - | - | - | 96,174 | - | 96,174 | - | ||||||||||||||||||||||||
Total | $ | 2,349 | $ | 1,592 | $ | 10,186 | $ | 14,127 | $ | 1,083,921 | $ | 1,574 | $ | 1,099,622 | $ | 175 | ||||||||||||||||
Loans considered non-accrual | $ | 92 | $ | 1,250 | $ | 10,011 | $ | 11,353 | $ | 1,181 | $ | - | $ | 12,534 | ||||||||||||||||||
Loans still accruing | 2,257 | 342 | 175 | 2,774 | 1,082,740 | 1,574 | 1,087,088 | |||||||||||||||||||||||||
Total | $ | 2,349 | $ | 1,592 | $ | 10,186 | $ | 14,127 | $ | 1,083,921 | $ | 1,574 | $ | 1,099,622 |
Total | 90 Days or | |||||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | 90 Days | Total Past | Financing | Greater and | |||||||||||||||||||||||||||
December 31, 2018 | Past Due | Past Due | Or Greater | Due | Current | PCI | Receivables | Accruing | ||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||||
Mortgages | $ | 483 | $ | 789 | $ | 686 | $ | 1,958 | $ | 154,501 | $ | 28 | $ | 156,487 | $ | 20 | ||||||||||||||||
Home Equity | 257 | 108 | 63 | 428 | 58,390 | - | 58,818 | - | ||||||||||||||||||||||||
Commercial | 999 | 631 | 4,706 | 6,336 | 311,608 | 1,321 | 319,265 | 36 | ||||||||||||||||||||||||
Agricultural | 121 | - | 3,184 | 3,305 | 281,215 | - | 284,520 | - | ||||||||||||||||||||||||
Construction | - | - | - | - | 33,913 | - | 33,913 | - | ||||||||||||||||||||||||
Consumer | 37 | 14 | 12 | 63 | 9,795 | - | 9,858 | 12 | ||||||||||||||||||||||||
Other commercial loans | 141 | 53 | 2,061 | 2,255 | 71,353 | 510 | 74,118 | - | ||||||||||||||||||||||||
Other agricultural loans | - | - | 1,201 | 1,201 | 40,985 | - | 42,186 | - | ||||||||||||||||||||||||
State and political | ||||||||||||||||||||||||||||||||
subdivision loans | - | - | - | - | 102,718 | - | 102,718 | - | ||||||||||||||||||||||||
Total | $ | 2,038 | $ | 1,595 | $ | 11,913 | $ | 15,546 | $ | 1,064,478 | $ | 1,859 | $ | 1,081,883 | $ | 68 | ||||||||||||||||
Loans considered non-accrual | $ | 72 | $ | 253 | $ | 11,845 | $ | 12,170 | $ | 1,554 | $ | - | $ | 13,724 | ||||||||||||||||||
Loans still accruing | 1,966 | 1,342 | 68 | 3,376 | 1,062,924 | 1,859 | 1,068,159 | |||||||||||||||||||||||||
Total | $ | 2,038 | $ | 1,595 | $ | 11,913 | $ | 15,546 | $ | 1,064,478 | $ | 1,859 | $ | 1,081,883 |
June 30, 2018 | December 31, 2017 | |||||||
Real estate loans: | ||||||||
Mortgages | $ | 1,375 | $ | 1,274 | ||||
Home Equity | 118 | 112 | ||||||
Commercial | 6,262 | 5,192 | ||||||
Agricultural | 167 | 175 | ||||||
Construction | - | 133 | ||||||
Consumer | 25 | 42 | ||||||
Other commercial loans | 2,415 | 2,637 | ||||||
Other agricultural loans | 569 | 606 | ||||||
State and political subdivision | - | - | ||||||
$ | 10,931 | $ | 10,171 |
June 30, 2019 | December 31, 2018 | |||||||
Real estate loans: | ||||||||
Mortgages | $ | 943 | $ | 1,079 | ||||
Home Equity | 74 | 82 | ||||||
Commercial | 4,704 | 5,957 | ||||||
Agricultural | 3,566 | 3,206 | ||||||
Construction | - | - | ||||||
Consumer | - | 14 | ||||||
Other commercial loans | 1,998 | 2,185 | ||||||
Other agricultural loans | 1,249 | 1,201 | ||||||
State and political subdivision | - | - | ||||||
$ | 12,534 | $ | 13,724 |
For the Three Months Ended June 30, 2018 | For the Three Months Ended June 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||
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 | $ | - | $ | 4 | $ | - | $ | 4 | ||||||||||||||||||||||||||||||||||||||
Home Equity | - | 1 | $ | - | $ | 1 | $ | - | $ | 1 | - | 1 | - | 40 | - | 40 | ||||||||||||||||||||||||||||||||
Commercial | - | 1 | - | 577 | - | 577 | - | 4 | - | 222 | - | 222 | ||||||||||||||||||||||||||||||||||||
Agricultural | - | 1 | - | 1,523 | 1,523 | |||||||||||||||||||||||||||||||||||||||||||
Other agricultural loans | - | 4 | - | 176 | 176 | |||||||||||||||||||||||||||||||||||||||||||
Total | - | 7 | $ | - | $ | 2,277 | $ | - | $ | 2,277 | - | 6 | $ | - | $ | 266 | $ | - | $ | 266 |
For the Six Months Ended June 30, 2019 | ||||||||||||||||||||||||
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: | ||||||||||||||||||||||||
Mortgages | - | 1 | $ | - | $ | 4 | $ | - | $ | 4 | ||||||||||||||
Home Equity | - | 1 | - | 40 | - | 40 | ||||||||||||||||||
Commercial | - | 5 | - | 799 | - | 799 | ||||||||||||||||||
Total | - | 7 | $ | - | $ | 843 | $ | - | $ | 843 |
For the Three Months Ended June 30, 2018 | ||||||||||||||||||||||||
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: | ||||||||||||||||||||||||
Home Equity | - | 1 | $ | - | $ | 1 | $ | - | $ | 1 | ||||||||||||||
Commercial | - | 1 | - | 577 | - | 577 | ||||||||||||||||||
Agricultural | - | 1 | - | 1,523 | - | 1,523 | ||||||||||||||||||
Other agricultural loans | - | 4 | - | 176 | - | 176 | ||||||||||||||||||
Total | - | 7 | $ | - | $ | 2,277 | $ | - | $ | 2,277 |
For the Six Months Ended June 30, 2018 | ||||||||||||||||||||||||
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: | ||||||||||||||||||||||||
Mortgages | - | 1 | $ | - | $ | 7 | $ | $ | 7 | |||||||||||||||
Home Equity | - | 1 | - | 1 | - | 1 | ||||||||||||||||||
Commercial | - | 1 | - | 577 | - | 577 | ||||||||||||||||||
Agricultural | - | 1 | - | 1,523 | 1,523 | |||||||||||||||||||
Other agricultural loans | - | 4 | - | 176 | 176 | |||||||||||||||||||
Total | - | 8 | $ | - | $ | 2,284 | $ | - | $ | 2,284 |
For the Three 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 | - | 5 | $ | - | $ | 6,093 | $ | - | $ | 6,093 | ||||||||||||||
Total | - | 5 | $ | - | $ | 6,093 | $ | - | $ | 6,093 |
For the Six Months Ended June 30, 2017 | For the Six Months Ended June 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||
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 | $ | - | $ | 7 | $ | - | $ | 7 | ||||||||||||||||||||||||||||||||||||||
Home Equity | - | 1 | - | 1 | - | 1 | ||||||||||||||||||||||||||||||||||||||||||
Commercial | - | 7 | $ | - | $ | 6,797 | $ | - | $ | 6,797 | - | 1 | - | 577 | - | 577 | ||||||||||||||||||||||||||||||||
Agricultural | - | 1 | - | 1,523 | - | 1,523 | ||||||||||||||||||||||||||||||||||||||||||
Other agricultural loans | - | 4 | - | 176 | - | 176 | ||||||||||||||||||||||||||||||||||||||||||
Total | - | 7 | $ | - | $ | 6,797 | $ | - | $ | 6,797 | - | 8 | $ | - | $ | 2,284 | $ | - | $ | 2,284 |
For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||||||||||||||
June 30, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | |||||||||||||||||||||||||||||
Number of contracts | Recorded investment | Number of contracts | Recorded investment | Number of contracts | Recorded investment | Number of contracts | Recorded investment | |||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||||
Commercial | 1 | $ | 542 | - | $ | - | 1 | $ | 542 | - | $ | - | ||||||||||||||||||||
Agricultural | 1 | 1,439 | - | - | 1 | 1,439 | - | - | ||||||||||||||||||||||||
Other agricultural loans | 3 | 137 | - | - | 4 | 261 | - | - | ||||||||||||||||||||||||
Total recidivism | 5 | $ | 2,118 | - | $ | - | 6 | $ | 2,242 | - | $ | - |
June 30, 2019 | December 31, 2018 | |||||||||||||||||||||||
Individually evaluated for impairment | Collectively evaluated for impairment | Total | Individually evaluated for impairment | Collectively evaluated for impairment | Total | |||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||
Residential | $ | 23 | $ | 1,043 | $ | 1,066 | $ | 24 | $ | 1,081 | $ | 1,105 | ||||||||||||
Commercial | 333 | 4,067 | 4,400 | 216 | 3,899 | 4,115 | ||||||||||||||||||
Agricultural | 146 | 4,386 | 4,532 | 84 | 4,180 | 4,264 | ||||||||||||||||||
Construction | - | 36 | 36 | - | 58 | 58 | ||||||||||||||||||
Consumer | - | 118 | 118 | - | 120 | 120 | ||||||||||||||||||
Other commercial loans | 143 | 1,185 | 1,328 | 193 | 1,161 | 1,354 | ||||||||||||||||||
Other agricultural loans | 158 | 583 | 741 | 159 | 593 | 752 | ||||||||||||||||||
State and political | ||||||||||||||||||||||||
subdivision loans | - | 539 | 539 | - | 762 | 762 | ||||||||||||||||||
Unallocated | - | 544 | 544 | - | 354 | 354 | ||||||||||||||||||
Total | $ | 803 | $ | 12,501 | $ | 13,304 | $ | 676 | $ | 12,208 | $ | 12,884 |
June 30, 2018 | December 31, 2017 | |||||||||||||||||||||||
Individually evaluated for impairment | Collectively evaluated for impairment | Total | Individually evaluated for impairment | Collectively evaluated for impairment | Total | |||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||
Residential | $ | 30 | $ | 1,015 | $ | 1,045 | $ | 56 | $ | 993 | $ | 1,049 | ||||||||||||
Commercial | 159 | 3,635 | 3,794 | 94 | 3,773 | 3,867 | ||||||||||||||||||
Agricultural | 25 | 3,648 | 3,673 | 3 | 3,140 | 3,143 | ||||||||||||||||||
Construction | - | 44 | 44 | - | 23 | 23 | ||||||||||||||||||
Consumer | - | 115 | 115 | - | 124 | 124 | ||||||||||||||||||
Other commercial loans | 151 | 1,115 | 1,266 | 231 | 1,041 | 1,272 | ||||||||||||||||||
Other agricultural loans | 40 | 549 | 589 | 26 | 466 | 492 | ||||||||||||||||||
State and political | ||||||||||||||||||||||||
subdivision loans | - | 767 | 767 | - | 816 | 816 | ||||||||||||||||||
Unallocated | - | 648 | 648 | - | 404 | 404 | ||||||||||||||||||
Total | $ | 405 | $ | 11,536 | $ | 11,941 | $ | 410 | $ | 10,780 | $ | 11,190 |
For the three months ended June 30, 2018 | For the three months ended June 30, 2019 | |||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2018 | Charge-offs | Recoveries | Provision | Balance at June 30, 2018 | Balance at March 31, 2019 | Charge-offs | Recoveries | Provision | Balance at June 30, 2019 | |||||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||||||||||||
Residential | $ | 1,077 | $ | (2 | ) | $ | 69 | $ | (99 | ) | $ | 1,045 | $ | 1,089 | $ | - | $ | - | $ | (23 | ) | $ | 1,066 | |||||||||||||||||
Commercial | 4,006 | - | 3 | (215 | ) | 3,794 | 4,130 | (93 | ) | - | 363 | 4,400 | ||||||||||||||||||||||||||||
Agricultural | 3,340 | - | - | 333 | 3,673 | 4,392 | - | - | 140 | 4,532 | ||||||||||||||||||||||||||||||
Construction | 39 | - | - | 5 | 44 | 32 | - | - | 4 | 36 | ||||||||||||||||||||||||||||||
Consumer | 123 | (6 | ) | 7 | (9 | ) | 115 | 124 | (8 | ) | 7 | (5 | ) | 118 | ||||||||||||||||||||||||||
Other commercial loans | 1,273 | (46 | ) | 11 | 28 | 1,266 | 1,283 | (38 | ) | 2 | 81 | 1,328 | ||||||||||||||||||||||||||||
Other agricultural loans | 532 | (7 | ) | - | 64 | 589 | 756 | - | - | (15 | ) | 741 | ||||||||||||||||||||||||||||
State and political | - | - | ||||||||||||||||||||||||||||||||||||||
subdivision loans | 789 | - | - | (22 | ) | 767 | 565 | - | - | (26 | ) | 539 | ||||||||||||||||||||||||||||
Unallocated | 408 | - | - | 240 | 648 | 713 | - | - | (169 | ) | 544 | |||||||||||||||||||||||||||||
Total | $ | 11,587 | $ | (61 | ) | $ | 90 | $ | 325 | $ | 11,941 | $ | 13,084 | $ | (139 | ) | $ | 9 | $ | 350 | $ | 13,304 |
For the six months ended June 30, 2018 | For the six months ended June 30, 2019 | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2017 | Charge-offs | Recoveries | Provision | Balance at June 30, 2018 | Balance at December 31, 2018 | Charge-offs | Recoveries | Provision | Balance at June 30, 2019 | |||||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||||||||||||
Residential | $ | 1,049 | $ | (17 | ) | $ | 69 | $ | (56 | ) | $ | 1,045 | $ | 1,105 | $ | - | $ | - | $ | (39 | ) | $ | 1,066 | |||||||||||||||||
Commercial | 3,867 | - | 3 | (76 | ) | 3,794 | 4,115 | (293 | ) | - | 578 | 4,400 | ||||||||||||||||||||||||||||
Agricultural | 3,143 | - | - | 530 | 3,673 | 4,264 | - | - | 268 | 4,532 | ||||||||||||||||||||||||||||||
Construction | 23 | - | - | 21 | 44 | 58 | - | - | (22 | ) | 36 | |||||||||||||||||||||||||||||
Consumer | 124 | (19 | ) | 17 | (7 | ) | 115 | 120 | (22 | ) | 18 | 2 | 118 | |||||||||||||||||||||||||||
Other commercial loans | 1,272 | (91 | ) | 14 | 71 | 1,266 | 1,354 | (38 | ) | 5 | 7 | 1,328 | ||||||||||||||||||||||||||||
Other agricultural loans | 492 | (50 | ) | - | 147 | 589 | 752 | - | - | (11 | ) | 741 | ||||||||||||||||||||||||||||
State and political | ||||||||||||||||||||||||||||||||||||||||
subdivision loans | 816 | - | - | (49 | ) | 767 | 762 | - | - | (223 | ) | 539 | ||||||||||||||||||||||||||||
Unallocated | 404 | - | - | 244 | 648 | 354 | - | - | 190 | 544 | ||||||||||||||||||||||||||||||
Total | $ | 11,190 | $ | (177 | ) | $ | 103 | $ | 825 | $ | 11,941 | $ | 12,884 | $ | (353 | ) | $ | 23 | $ | 750 | $ | 13,304 |
For the three months ended June 30, 2018 | ||||||||||||||||||||
Balance at March 31, 2018 | Charge-offs | Recoveries | Provision | Balance at June 30, 2018 | ||||||||||||||||
Real estate loans: | ||||||||||||||||||||
Residential | $ | 1,077 | $ | (2 | ) | $ | 69 | $ | (99 | ) | $ | 1,045 | ||||||||
Commercial | 4,006 | - | 3 | (215 | ) | 3,794 | ||||||||||||||
Agricultural | 3,340 | 333 | 3,673 | |||||||||||||||||
Construction | 39 | - | - | 5 | 44 | |||||||||||||||
Consumer | 123 | (6 | ) | 7 | (9 | ) | 115 | |||||||||||||
Other commercial loans | 1,273 | (46 | ) | 11 | 28 | 1,266 | ||||||||||||||
Other agricultural loans | 532 | (7 | ) | - | 64 | 589 | ||||||||||||||
State and political | ||||||||||||||||||||
subdivision loans | 789 | - | - | (22 | ) | 767 | ||||||||||||||
Unallocated | 408 | - | - | 240 | 648 | |||||||||||||||
Total | $ | 11,587 | $ | (61 | ) | $ | 90 | $ | 325 | $ | 11,941 |
For the three months ended June 30, 2017 | ||||||||||||||||||||
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 |
For the six months ended June 30, 2017 | For the six months ended June 30, 2018 | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2016 | Charge-offs | Recoveries | Provision | Balance at June 30, 2017 | Balance at December 31, 2017 | Charge-offs | Recoveries | Provision | Balance at June 30, 2018 | |||||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||||||||||||
Residential | $ | 1,064 | $ | (93 | ) | $ | - | $ | 133 | $ | 1,104 | $ | 1,049 | $ | (17 | ) | $ | 69 | $ | (56 | ) | $ | 1,045 | |||||||||||||||||
Commercial | 3,589 | (41 | ) | 6 | (13 | ) | 3,541 | 3,867 | - | 3 | (76 | ) | 3,794 | |||||||||||||||||||||||||||
Agricultural | 1,494 | - | 958 | 2,452 | 3,143 | - | 530 | 3,673 | ||||||||||||||||||||||||||||||||
Construction | 47 | - | - | (2 | ) | 45 | 23 | - | - | 21 | 44 | |||||||||||||||||||||||||||||
Consumer | 122 | (45 | ) | 22 | 26 | 125 | 124 | (19 | ) | 17 | (7 | ) | 115 | |||||||||||||||||||||||||||
Other commercial loans | 1,327 | - | 9 | (205 | ) | 1,131 | 1,272 | (91 | ) | 14 | 71 | 1,266 | ||||||||||||||||||||||||||||
Other agricultural loans | 312 | (5 | ) | 124 | 431 | 492 | (50 | ) | - | 147 | 589 | |||||||||||||||||||||||||||||
State and political | ||||||||||||||||||||||||||||||||||||||||
subdivision loans | 833 | - | - | 5 | 838 | 816 | - | - | (49 | ) | 767 | |||||||||||||||||||||||||||||
Unallocated | 98 | - | - | 214 | 312 | 404 | - | - | 244 | 648 | ||||||||||||||||||||||||||||||
Total | $ | 8,886 | $ | (184 | ) | $ | 37 | $ | 1,240 | $ | 9,979 | $ | 11,190 | $ | (177 | ) | $ | 103 | $ | 825 | $ | 11,941 |
· | 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 |
· | 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, 2018 | December 31, 2017 | June 30, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||
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 | $ | 1,656 | $ | (1,009 | ) | $ | 647 | $ | 1,605 | $ | (912 | ) | $ | 693 | $ | 1,788 | $ | (1,160 | ) | $ | 628 | $ | 1,725 | $ | (1,066 | ) | $ | 659 | ||||||||||||||||||||
Core deposit intangibles | 1,786 | (721 | ) | 1,065 | 1,786 | (586 | ) | 1,200 | 1,786 | (967 | ) | 819 | 1,786 | (851 | ) | 935 | ||||||||||||||||||||||||||||||||
Covenant not to compete | 125 | (81 | ) | 44 | 125 | (65 | ) | 60 | 125 | (112 | ) | 13 | �� | 125 | (96 | ) | 29 | |||||||||||||||||||||||||||||||
Total amortized intangible assets | $ | 3,567 | $ | (1,811 | ) | $ | 1,756 | $ | 3,516 | $ | (1,563 | ) | $ | 1,953 | $ | 3,699 | $ | (2,239 | ) | $ | 1,460 | $ | 3,636 | $ | (2,013 | ) | $ | 1,623 | ||||||||||||||||||||
Unamortized intangible assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | $ | 23,296 | $ | 23,296 | $ | 23,296 | $ | 23,296 | ||||||||||||||||||||||||||||||||||||||||
(1) Excludes fully amortized intangible assets |
MSRs | Core deposit intangibles | Covenant not to compete | Total | |||||||||||||
Three months ended June 30, 2019 (actual) | $ | 46 | $ | 58 | $ | 8 | $ | 112 | ||||||||
Six months ended June 30, 2019 (actual) | 94 | 116 | 16 | 226 | ||||||||||||
Three months ended June 30, 2018 (actual) | 48 | 66 | 8 | 122 | ||||||||||||
Six months ended June 30, 2018 (actual) | 97 | 134 | 16 | 247 | ||||||||||||
Estimate for year ending December 31, | ||||||||||||||||
Remaining 2019 | 92 | 114 | 13 | 219 | ||||||||||||
2020 | 156 | 197 | - | 353 | ||||||||||||
2021 | 122 | 165 | - | 287 | ||||||||||||
2022 | 92 | 133 | - | 225 | ||||||||||||
2023 | 67 | 100 | - | 167 |
Lease Type | Balance at June 30, 2019 | Affected line item on the Consolidated Balance Sheet | |||
Right of Use Assets | |||||
Operating | $ | 1,307 | Other Assets | ||
Lease Liabilities: | |||||
Operating | $ | 1,311 | Other Liabilities |
MSRs | Core deposit intangibles | Covenant not to compete | Total | |||||||||||||
Three months ended June 30, 2018 (actual) | $ | 48 | $ | 66 | $ | 8 | $ | 122 | ||||||||
Six months ended June 30, 2018 (actual) | 97 | 134 | 16 | 247 | ||||||||||||
Three months ended June 30, 2017 (actual) | 45 | 66 | 7 | 118 | ||||||||||||
Six months June 30, 2017 (actual) | 91 | 134 | 15 | 240 | ||||||||||||
Estimate for year ended December 31, | ||||||||||||||||
Remaining 2018 | 88 | 130 | 15 | 233 | ||||||||||||
2019 | 157 | 230 | 29 | 416 | ||||||||||||
2020 | 123 | 197 | - | 320 | ||||||||||||
2021 | 94 | 165 | - | 259 | ||||||||||||
2022 | 69 | 133 | - | 202 |
June 30, 2019 | ||||||||
Lease Cost | Three months Ended | Six Months Ended | ||||||
Operating lease cost | $ | 85 | $ | 170 | ||||
Variable lease cost | 21 | 44 | ||||||
Total lease cost | $ | 106 | $ | 214 |
Operating | |
Weighted average term (years) | 6.28 |
Weighted average discount rate | 3.13% |
Remaining Contractual Maturity of the Agreements | ||||||||||||||||||||
Overnight and | Up to | Greater than | ||||||||||||||||||
June 30, 2018 | Continuous | 30 Days | 30 - 90 Days | 90 days | Total | |||||||||||||||
Repurchase Agreements: | ||||||||||||||||||||
U.S. agency securities | $ | 18,909 | $ | - | $ | - | $ | 1,998 | $ | 20,907 | ||||||||||
Total carrying value of collateral pledged | $ | 18,909 | $ | - | $ | - | $ | 1,998 | $ | 20,907 | ||||||||||
Total liability recognized for repurchase agreements | $ | 15,061 | ||||||||||||||||||
December 31, 2017 | ||||||||||||||||||||
Repurchase Agreements: | ||||||||||||||||||||
U.S. agency securities | $ | 16,027 | $ | - | $ | - | $ | 2,035 | $ | 18,062 | ||||||||||
Total carrying value of collateral pledged | $ | 16,027 | $ | - | $ | - | $ | 2,035 | $ | 18,062 | ||||||||||
Total liability recognized for repurchase agreements | $ | 14,989 |
Undiscounted cash flows due within | Operating | |||
Remaining 2019 | $ | 167 | ||
2020 | 279 | |||
2021 | 238 | |||
2022 | 230 | |||
2023 | 142 | |||
2024 | 105 | |||
2025 and thereafter | 291 | |||
Total undiscounted cash flows | 1,452 | |||
Impact of present value discount | ( 145 | ) | ||
Amount reported on balance sheet | $ | 1,307 |
Three Months Ended | Six Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||
June 30, | June 30, | Affected line item on the Consolidated | June 30, | June 30, | Affected line item on the Consolidated | |||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | Statement of income | 2019 | 2018 | 2019 | 2018 | Statement of income | |||||||||||||||||||||||||
Service cost | $ | 90 | $ | 84 | $ | 179 | $ | 175 | Salaries and Employee Benefits | $ | 89 | $ | 90 | $ | 178 | $ | 179 | Salary and Employee Benefits | ||||||||||||||||
Interest cost | 162 | 168 | 325 | 335 | Other Expenses | 139 | 162 | 278 | 325 | Other Expenses | ||||||||||||||||||||||||
Expected return on plan assets | (345 | ) | (273 | ) | (689 | ) | (547 | ) | Other Expenses | (205 | ) | (345 | ) | (410 | ) | (689 | ) | Other Expenses | ||||||||||||||||
Net amortization and deferral | 47 | 52 | 93 | 112 | Other Expenses | 62 | 47 | 123 | 93 | Other Expenses | ||||||||||||||||||||||||
Net periodic (benefit) cost | $ | (46 | ) | $ | 31 | $ | (92 | ) | $ | 75 | ||||||||||||||||||||||||
Net periodic benefit cost | $ | 85 | $ | (46 | ) | $ | 169 | $ | (92 | ) |
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 | 8,691 | $ | 51.19 | 8,783 | $ | 51.20 | 9,714 | $ | 57.17 | 9,764 | $ | 58.21 | ||||||||||||||||||||
Granted | 4,869 | 62.91 | 4,869 | 62.91 | 5,130 | 60.21 | 5,130 | 60.21 | ||||||||||||||||||||||||
Forfeited | - | - | - | - | (152 | ) | 60.00 | (152 | ) | 60.00 | ||||||||||||||||||||||
Vested | (3,626 | ) | (50.54 | ) | (3,718 | ) | (50.58 | ) | (3,928 | ) | (55.51 | ) | (3,978 | ) | (55.46 | ) | ||||||||||||||||
Outstanding, end of period | 9,934 | $ | 57.18 | 9,934 | $ | 57.18 | 10,764 | $ | 60.16 | 10,764 | $ | 60.16 |
Six months ended June 30, 2019 | ||||||||||||||||||||||||
Unrealized gain (loss) on available for sale securities (a) | Defined Benefit Pension Items (a) | Total | ||||||||||||||||||||||
Balance as of December 31, 2018 | $ | (973 | ) | $ | (2,948 | ) | $ | (3,921 | ) | |||||||||||||||
Other comprehensive income before reclassifications (net of tax) | 3,488 | - | 3,488 | |||||||||||||||||||||
Amounts reclassified from accumulated other | ||||||||||||||||||||||||
comprehensive income (loss) (net of tax) | - | 96 | 96 | |||||||||||||||||||||
Net current period other comprehensive income | 3,488 | 96 | 3,584 | |||||||||||||||||||||
Balance as of June 30, 2019 | $ | 2,515 | $ | (2,852 | ) | $ | (337 | ) | ||||||||||||||||
Six months ended June 30, 2018 | Six months ended June 30, 2018 | |||||||||||||||||||||||
Unrealized gain (loss) on available for sale securities (a) | Defined Benefit Pension Items (a) | Total | Unrealized gain (loss) on available for sale securities (a) | Defined Benefit Pension Items (a) | Total | |||||||||||||||||||
Balance as of December 31, 2017 | $ | (269 | ) | $ | (3,129 | ) | $ | (3,398 | ) | $ | (269 | ) | $ | (3,129 | ) | $ | (3,398 | ) | ||||||
Change in Accounting policy for equity securities | 1 | - | 1 | 1 | - | 1 | ||||||||||||||||||
Other comprehensive loss before reclassifications (net of tax) | (2,034 | ) | - | (2,034 | ) | (2,034 | ) | - | (2,034 | ) | ||||||||||||||
Amounts reclassified from accumulated other | ||||||||||||||||||||||||
comprehensive income (loss) (net of tax) | - | 74 | 74 | - | 74 | 74 | ||||||||||||||||||
Net current period other comprehensive loss | (2,034 | ) | 74 | (1,960 | ) | |||||||||||||||||||
Balance as of June 30, 2018 | $ | (2,302 | ) | $ | (3,055 | ) | $ | (5,357 | ) | |||||||||||||||
Net current period other comprehensive income (loss) | (2,034 | ) | 74 | (1,960 | ) | |||||||||||||||||||
Balance as of September 30, 2017 | $ | (2,302 | ) | $ | (3,055 | ) | $ | (5,357 | ) | |||||||||||||||
Six months ended June 30, 2017 | Three months ended June 30, 2019 | |||||||||||||||||||||||
Unrealized gain (loss) on available for sale securities (a) | Defined Benefit Pension Items (a) | Total | Unrealized gain (loss) on available for sale securities (a) | Defined Benefit Pension Items (a) | Total | |||||||||||||||||||
Balance as of December 31, 2016 | $ | 1,306 | $ | (2,698 | ) | $ | (1,392 | ) | ||||||||||||||||
Balance as of March 31, 2019 | $ | 75 | $ | (2,900 | ) | $ | (2,825 | ) | ||||||||||||||||
Other comprehensive income before reclassifications (net of tax) | 478 | - | 478 | 2,440 | - | 2,440 | ||||||||||||||||||
Amounts reclassified from accumulated other | ||||||||||||||||||||||||
comprehensive loss (net of tax) | (129 | ) | 74 | (55 | ) | |||||||||||||||||||
Net current period other comprehensive income | 349 | 74 | 423 | |||||||||||||||||||||
Balance as of June 30, 2017 | $ | 1,655 | $ | (2,624 | ) | $ | (969 | ) | ||||||||||||||||
comprehensive income (loss) (net of tax) | - | 48 | 48 | |||||||||||||||||||||
Net current period other comprehensive income ( | 2,440 | 48 | 2,488 | |||||||||||||||||||||
Balance as of June 30, 2019 | $ | 2,515 | $ | (2,852 | ) | $ | (337 | ) | ||||||||||||||||
Three months ended June 30, 2018 | Three months ended June 30, 2018 | |||||||||||||||||||||||
Unrealized gain (loss) on available for sale securities (a) | Defined Benefit Pension Items (a) | Total | Unrealized gain (loss) on available for sale securities (a) | Defined Benefit Pension Items (a) | Total | |||||||||||||||||||
Balance as of March 31, 2018 | $ | (1,885 | ) | $ | (3,092 | ) | $ | (4,977 | ) | $ | (1,885 | ) | $ | (3,092 | ) | $ | (4,977 | ) | ||||||
Other comprehensive loss before reclassifications (net of tax) | (417 | ) | - | (417 | ) | (417 | ) | - | (417 | ) | ||||||||||||||
Amounts reclassified from accumulated other | ||||||||||||||||||||||||
comprehensive loss (net of tax) | - | 37 | 37 | |||||||||||||||||||||
comprehensive income (loss) (net of tax) | - | 37 | 37 | |||||||||||||||||||||
Net current period other comprehensive income (loss) | (417 | ) | 37 | (380 | ) | (417 | ) | 37 | (380 | ) | ||||||||||||||
Balance as of June 30, 2018 | $ | (2,302 | ) | $ | (3,055 | ) | $ | (5,357 | ) | $ | (2,302 | ) | $ | (3,055 | ) | $ | (5,357 | ) | ||||||
Three months ended June 30, 2017 | ||||||||||||||||||||||||
Unrealized gain (loss) on available for sale securities (a) | Defined Benefit Pension Items (a) | Total | ||||||||||||||||||||||
Balance as of March 31, 2017 | $ | 1,238 | $ | (2,659 | ) | $ | (1,421 | ) | ||||||||||||||||
Other comprehensive income 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 | ) | ||||||||||||||||
(a) Amounts in parentheses indicate debits on the Consolidated Balalance Sheet | ||||||||||||||||||||||||
(a) Amounts in parentheses indicate debits on the Consolidated Balance Sheet. | (a) Amounts in parentheses indicate debits on the Consolidated Balance Sheet. |
Details about accumulated other comprehensive income (loss) | Amount reclassified from accumulated comprehensive income (loss) (a) | Affected line item in the Consolidated Statement of Income | Amount reclassified from accumulated comprehensive income (loss) (a) | Affected line item in the Consolidated Statement of Income | ||||||||||||||
Three Months Ended June 30, | ||||||||||||||||||
2018 | 2017 | |||||||||||||||||
Unrealized gains and losses on available for sale securities | ||||||||||||||||||
$ | - | $ | 23 | Available for sale securities gains, net | ||||||||||||||
- | (8 | ) | Provision for income taxes | |||||||||||||||
$ | - | $ | 15 | Net of tax | Three Months Ended June 30, | |||||||||||||
2019 | 2018 | |||||||||||||||||
Defined benefit pension items | ||||||||||||||||||
$ | (47 | ) | $ | (52 | ) | Salaries and employee benefits | $ | (62 | ) | $ | (47 | ) | Other expenses | |||||
10 | 17 | Provision for income taxes | 14 | 10 | Provision for income taxes | |||||||||||||
$ | (37 | ) | $ | (35 | ) | Net of tax | $ | (48 | ) | $ | (37 | ) | Net of tax | |||||
Total reclassifications | $ | (37 | ) | $ | (20 | ) | $ | (48 | ) | $ | (37 | ) | ||||||
Six Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||
2018 | 2017 | 2019 | 2018 | |||||||||||||||
Unrealized gains and losses on available for sale securities | ||||||||||||||||||
$ | - | $ | 195 | Available for sale securities gains, net | ||||||||||||||
- | (66 | ) | Provision for income taxes | |||||||||||||||
$ | - | $ | 129 | Net of tax | ||||||||||||||
Defined benefit pension items | ||||||||||||||||||
$ | (93 | ) | $ | (112 | ) | Salaries and employee benefits | $ | (123 | ) | $ | (93 | ) | Other expenses | |||||
19 | 38 | Provision for income taxes | 27 | 19 | Provision for income taxes | |||||||||||||
$ | (74 | ) | $ | (74 | ) | Net of tax | $ | (96 | ) | $ | (74 | ) | Net of tax | |||||
Total reclassifications | $ | (74 | ) | $ | 55 | $ | (96 | ) | $ | (74 | ) | |||||||
(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 |
June 30, 2018 | Level I | Level II | Level III | Total | ||||||||||||
Fair value measurements on a recurring basis: | ||||||||||||||||
Assets | ||||||||||||||||
Equity securities in financial institutions | $ | 195 | $ | - | $ | - | $ | 195 | ||||||||
Available for sale securities: | ||||||||||||||||
U.S. Agency securities | - | 101,988 | - | 101,988 | ||||||||||||
U.S. Treasury securities | 32,992 | - | - | 32,992 | ||||||||||||
Obligations of state and | ||||||||||||||||
political subdivisions | - | 67,872 | - | 67,872 | ||||||||||||
Corporate obligations | - | 3,023 | - | 3,023 | ||||||||||||
Mortgage-backed securities in | ||||||||||||||||
government sponsored entities | - | 44,150 | - | 44,150 |
December 31, 2017 | Level I | Level II | Level III | Total | ||||||||||||||||||||||||||||
June 30, 2019 | Level I | Level II | Level III | Total | ||||||||||||||||||||||||||||
Fair value measurements on a recurring basis: | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Equity securities | $ | 557 | $ | - | $ | - | $ | 557 | ||||||||||||||||||||||||
Available for sale securities: | ||||||||||||||||||||||||||||||||
U.S. Agency securities | - | 94,231 | - | 94,231 | ||||||||||||||||||||||||||||
U.S. Treasury securities | 34,096 | - | - | 34,096 | ||||||||||||||||||||||||||||
Obligations of state and | ||||||||||||||||||||||||||||||||
political subdivisions | - | 58,515 | - | 58,515 | ||||||||||||||||||||||||||||
Corporate obligations | - | 3,080 | - | 3,080 | ||||||||||||||||||||||||||||
Mortgage-backed securities in | ||||||||||||||||||||||||||||||||
government sponsored entities | - | 46,818 | - | 46,818 | ||||||||||||||||||||||||||||
December 31, 2018 | Level I | Level II | Level III | Total | ||||||||||||||||||||||||||||
Fair value measurements on a recurring basis: | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Equity securities | $ | 516 | $ | - | $ | - | $ | 516 | ||||||||||||||||||||||||
Available for sale securities: | ||||||||||||||||||||||||||||||||
U.S. Agency securities | $ | - | $ | 98,887 | $ | - | $ | 98,887 | - | 106,385 | - | 106,385 | ||||||||||||||||||||
U.S. Treasuries securities | 28,604 | - | - | 28,604 | 33,358 | - | - | 33,358 | ||||||||||||||||||||||||
Obligations of state and | ||||||||||||||||||||||||||||||||
political subdivisions | - | 79,090 | - | 79,090 | - | 52,047 | - | 52,047 | ||||||||||||||||||||||||
Corporate obligations | - | 3,083 | - | 3,083 | - | 3,034 | - | 3,034 | ||||||||||||||||||||||||
Mortgage-backed securities in | ||||||||||||||||||||||||||||||||
government sponsored entities | - | 45,027 | - | 45,027 | - | 46,186 | - | 46,186 | ||||||||||||||||||||||||
Equity securities in financial institutions | 91 | - | - | 91 |
June 30, 2019 | Level I | Level II | Level III | Total | ||||||||||||
Impaired Loans | $ | - | $ | - | $ | 5,647 | $ | 5,647 | ||||||||
Other real estate owned | - | - | 3,711 | 3,711 | ||||||||||||
December 31, 2018 | Level I | Level II | Level III | Total | ||||||||||||
Impaired Loans | $ | - | $ | - | $ | 5,815 | $ | 5,815 | ||||||||
Other real estate owned | - | - | 532 | 532 |
June 30, 2018 | Level I | Level II | Level III | Total | ||||||||||||
Impaired Loans | $ | - | $ | - | $ | 3,470 | $ | 3,470 | ||||||||
Other real estate owned | - | - | 326 | 326 | ||||||||||||
December 31, 2017 | ||||||||||||||||
Impaired Loans | $ | - | $ | - | $ | 1,569 | $ | 1,569 | ||||||||
Other real estate owned | - | - | 1,024 | 1,024 |
· | Impaired Loans -The Company has measured impairment on impaired loans generally based on the fair value of the |
· | Other Real Estate Owned (OREO) – OREO is carried at the lower of cost or fair value, less estimated costs to sell, which is measured at the date of foreclosure. If the fair value of the collateral exceeds the carrying amount of the loan, no charge-off or adjustment is necessary, the loan is not considered to be carried at fair value, and is therefore not included in the table above. If the fair value of the collateral is less than the carrying amount of the loan, management will charge the loan down to its estimated realizable value. The fair value of OREO is based on the appraised value of the property, which is generally unadjusted by management and is based on comparable sales for similar properties in the same geographic region as the subject property, and is included in the above table as a Level II measurement. 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. In these cases, the loans are categorized in the above table as a Level III measurement since these adjustments are considered to be unobservable inputs. Income and expenses from operations and further declines in the fair value of the collateral subsequent to foreclosure are included in net expenses from OREO. |
June 30, 2018 | Fair Value | Valuation Technique(s) | Unobservable input | Range | Weighted average | |||||||||||||||||||||||
June 30, 2019 | Fair Value | Valuation Technique(s) | Unobservable input | Range | Weighted average | |||||||||||||||||||||||
Impaired Loans | $ | 3,470 | Appraised Collateral Values | Discount for time since appraisal | 0-100% | 27.32 | % | $ | 5,647 | Appraised Collateral Values | Discount for time since appraisal | 0-100 | % | 19.16 | % | |||||||||||||
Selling costs | 5%-11% | 7.88 | % | Selling costs | 5%-12 | % | 8.86 | % | ||||||||||||||||||||
Holding period | 0 - 12 months | 11.4 months | Holding period | 0 - 12 months | 11.7 months | |||||||||||||||||||||||
Other real estate owned | 326 | Appraised Collateral Values | Discount for time since appraisal | 25-35% | 27.45 | % | 3,711 | Appraised Collateral Values | Discount for time since appraisal | 13-67 | % | 15.81 | % | |||||||||||||||
December 31, 2017 | Fair Value | Valuation Technique(s) | Unobservable input | Range | ||||||||||||||||||||||||
December 31, 2018 | Fair Value | Valuation Technique(s) | Unobservable input | Range | ||||||||||||||||||||||||
Impaired Loans | 1,569 | Appraised Collateral Values | Discount for time since appraisal | 0-100% | 30.83 | % | 5,815 | Appraised Collateral Values | Discount for time since appraisal | 0-100 | % | 19.22 | % | |||||||||||||||
Selling costs | 5%-9% | 8.35 | % | Selling costs | 5%-12 | % | 8.70 | % | ||||||||||||||||||||
Holding period | 6 - 12 months | 11 months | Holding period | 6 - 12 months | 11.61 months | |||||||||||||||||||||||
Other real estate owned | 1,024 | Appraised Collateral Values | Discount for time since appraisal | 15-65% | 26.26 | % | 532 | Appraised Collateral Values | Discount for time since appraisal | 20-55 | % | 31.44 | % |
Carrying | ||||||||||||||||||||
June 30, 2019 | Amount | Fair Value | Level I | Level II | Level III | |||||||||||||||
Financial assets: | ||||||||||||||||||||
Interest bearing time deposits with other banks | $ | 15,498 | $ | 15,790 | $ | - | $ | - | $ | 15,790 | ||||||||||
Loans held for sale | 778 | 778 | - | - | 778 | |||||||||||||||
Net loans | 1,086,318 | 1,080,955 | - | - | 1,080,955 | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | 1,183,658 | 1,182,795 | 897,948 | - | 284,847 | |||||||||||||||
Borrowed funds | 100,984 | 101,121 | - | - | 101,121 | |||||||||||||||
Carrying | ||||||||||||||||||||
December 31, 2018 | Amount | Fair Value | Level I | Level II | Level III | |||||||||||||||
Financial assets: | ||||||||||||||||||||
Interest bearing time deposits with other banks | $ | 15,498 | $ | 15,422 | $ | - | $ | - | $ | 15,422 | ||||||||||
Loans held for sale | 1,127 | 1,126 | - | - | 1,126 | |||||||||||||||
Net loans | 1,068,999 | 1,062,645 | - | - | 1,062,645 | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | 1,185,156 | 1,180,694 | 886,686 | - | 294,008 | |||||||||||||||
Borrowed funds | 91,194 | 90,427 | - | - | 90,427 |
Carrying | ||||||||||||||||||||
June 30, 2018 | Amount | Fair Value | Level I | Level II | Level III | |||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and due from banks | $ | 15,613 | $ | 15,613 | $ | 15,613 | $ | - | $ | - | ||||||||||
Interest bearing time deposits with other banks | 13,762 | 13,766 | - | - | 13,766 | |||||||||||||||
Loans held for sale | 1,931 | 1,931 | 1,931 | - | - | |||||||||||||||
Net loans | 1,028,259 | 1,021,166 | - | - | 1,021,166 | |||||||||||||||
Bank owned life insurance | 27,189 | 27,189 | 27,189 | - | - | |||||||||||||||
Regulatory stock | 7,220 | 7,220 | 7,220 | - | - | |||||||||||||||
Accrued interest receivable | 4,285 | 4,285 | 4,285 | - | - | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | $ | 1,118,592 | $ | 1,113,001 | $ | 847,151 | $ | - | $ | 265,850 | ||||||||||
Borrowed funds | 133,652 | 132,322 | 96,566 | - | 35,756 | |||||||||||||||
Accrued interest payable | 903 | 903 | 903 | - | - |
Carrying | ||||||||||||||||||||
December 31, 2017 | Amount | Fair Value | Level I | Level II | Level III | |||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and due from banks | $ | 18,517 | $ | 18,517 | $ | 18,517 | $ | - | $ | - | ||||||||||
Interest bearing time deposits with other banks | 10,283 | 10,287 | - | - | 10,287 | |||||||||||||||
Loans held for sale | 1,439 | 1,439 | 1,439 | |||||||||||||||||
Net loans | 989,335 | 981,238 | - | - | 981,238 | |||||||||||||||
Bank owned life insurance | 26,883 | 26,883 | 26,883 | - | - | |||||||||||||||
Regulatory stock | 6,784 | 6,784 | 6,784 | - | - | |||||||||||||||
Accrued interest receivable | 4,196 | 4,196 | 4,196 | - | - | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | $ | 1,104,943 | $ | 1,101,583 | $ | 838,490 | $ | - | $ | 263,093 | ||||||||||
Borrowed funds | 114,664 | 113,452 | 77,650 | - | 35,802 | |||||||||||||||
Accrued interest payable | 897 | 897 | 897 | - | - |
· | 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 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 some of our customers. |
· | Agricultural customers could be affected by factors outside of their control including adverse weather conditions, loss of crops or livestock due to diseases or other factors, and government policies, regulations and tariffs. |
· | Loan concentrations in certain industries could negatively impact financial results, if financial results or economic conditions deteriorate. |
· | A budget impasse in the Commonwealth of Pennsylvania could impact our asset values, liquidity and profitability as a result of either delayed or reduced funding to school districts and municipalities who are customers of the Bank. |
· | 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 the companies providing support services related to the exploration and drilling of the natural gas reserves may be dependent on the market price of natural gas. As a result, decreases in the market price of natural gas could also negatively impact these companies, our customers. |
Analysis of Average Balances and Interest Rates (1) | Analysis of Average Balances and Interest Rates | |||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2018 | June 30, 2017 | June 30, 2019 | June 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||
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 | 8,609 | 9 | 0.21 | 9,106 | 9 | 0.20 | 9,165 | 13 | 0.29 | 8,609 | 9 | 0.21 | ||||||||||||||||||||||||||||||||||||
Total short-term investments | 8,609 | 9 | 0.21 | 9,106 | 9 | 0.20 | 9,165 | 13 | 0.29 | 8,609 | 9 | 0.21 | ||||||||||||||||||||||||||||||||||||
Interest bearing time deposits at banks | 10,753 | 115 | 2.16 | 7,123 | 71 | 2.01 | 15,498 | 195 | 2.54 | 10,753 | 115 | 2.16 | ||||||||||||||||||||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Taxable | 187,650 | 1,965 | 2.09 | 202,316 | 1,708 | 1.69 | 192,737 | 2,490 | 2.58 | 187,650 | 1,965 | 2.09 | ||||||||||||||||||||||||||||||||||||
Tax-exempt (3) | 71,775 | 1,267 | 3.53 | 87,491 | 1,922 | 4.39 | 57,482 | 926 | 3.22 | 71,775 | 1,267 | 3.53 | ||||||||||||||||||||||||||||||||||||
Total investment securities | 259,425 | 3,232 | 2.49 | 289,807 | 3,630 | 2.51 | 250,219 | 3,416 | 2.73 | 259,425 | 3,232 | 2.49 | ||||||||||||||||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||||||||||||||||||
Loans (2)(3)(4): | ||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage loans | 214,766 | 5,538 | 5.20 | 206,018 | 5,291 | 5.18 | 215,110 | 5,692 | 5.34 | 214,766 | 5,538 | 5.20 | ||||||||||||||||||||||||||||||||||||
Construction | 20,523 | 474 | 4.66 | 27,198 | 574 | 4.25 | 24,351 | 620 | 5.13 | 20,523 | 474 | 4.66 | ||||||||||||||||||||||||||||||||||||
Commercial Loans | 390,068 | 10,175 | 5.26 | 322,012 | 8,392 | 5.26 | 410,532 | 11,201 | 5.50 | 390,068 | 10,175 | 5.26 | ||||||||||||||||||||||||||||||||||||
Agricultural Loans | 291,030 | 6,324 | 4.38 | 185,160 | 3,966 | 4.32 | 334,895 | 7,639 | 4.60 | 291,030 | 6,324 | 4.38 | ||||||||||||||||||||||||||||||||||||
Loans to state & political subdivisions | 101,891 | 1,788 | 3.54 | 96,818 | 2,026 | 4.22 | 99,945 | 1,951 | 3.94 | 101,891 | 1,788 | 3.54 | ||||||||||||||||||||||||||||||||||||
Other loans | 9,500 | 368 | 7.81 | 10,394 | 415 | 8.04 | 9,737 | 368 | 7.62 | 9,500 | 368 | 7.81 | ||||||||||||||||||||||||||||||||||||
Loans, net of discount | 1,027,778 | 24,667 | 4.84 | 847,600 | 20,664 | 4.92 | 1,094,570 | 27,471 | 5.06 | 1,027,778 | 24,667 | 4.84 | ||||||||||||||||||||||||||||||||||||
Total interest-earning assets | 1,306,565 | 28,023 | 4.33 | 1,153,636 | 24,374 | 4.26 | 1,369,452 | 31,095 | 4.58 | 1,306,565 | 28,023 | 4.33 | ||||||||||||||||||||||||||||||||||||
Cash and due from banks | 6,717 | 6,604 | 6,395 | 6,717 | ||||||||||||||||||||||||||||||||||||||||||||
Bank premises and equipment | 16,418 | 16,947 | 16,198 | 16,418 | ||||||||||||||||||||||||||||||||||||||||||||
Other assets | 54,590 | 55,850 | 56,135 | 54,590 | ||||||||||||||||||||||||||||||||||||||||||||
Total non-interest earning assets | 77,725 | 79,401 | 78,728 | 77,725 | ||||||||||||||||||||||||||||||||||||||||||||
Total assets | 1,384,290 | 1,233,037 | 1,448,180 | 1,384,290 | ||||||||||||||||||||||||||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | LIABILITIES AND STOCKHOLDERS' EQUITY | LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||
NOW accounts | 328,256 | 733 | 0.45 | 319,387 | 534 | 0.34 | 328,951 | 1,167 | 0.72 | 328,256 | 733 | 0.45 | ||||||||||||||||||||||||||||||||||||
Savings accounts | 187,361 | 101 | 0.11 | 177,746 | 92 | 0.10 | 214,361 | 390 | 0.37 | 187,361 | 101 | 0.11 | ||||||||||||||||||||||||||||||||||||
Money market accounts | 153,345 | 610 | 0.80 | 122,943 | 290 | 0.48 | 161,518 | 1,014 | 1.27 | 153,345 | 610 | 0.80 | ||||||||||||||||||||||||||||||||||||
Certificates of deposit | 267,407 | 1,457 | 1.10 | 261,942 | 1,272 | 0.98 | 291,074 | 2,141 | 1.48 | 267,407 | 1,457 | 1.10 | ||||||||||||||||||||||||||||||||||||
Total interest-bearing deposits | 936,369 | 2,901 | 0.62 | 882,018 | 2,188 | 0.50 | 995,904 | 4,712 | 0.95 | 936,369 | 2,901 | 0.62 | ||||||||||||||||||||||||||||||||||||
Other borrowed funds | 132,179 | 1,339 | 2.04 | 57,348 | 489 | 1.72 | 112,204 | 1,556 | 2.79 | 132,179 | 1,339 | 2.04 | ||||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 1,068,548 | 4,240 | 0.80 | 939,366 | 2,677 | 0.57 | 1,108,108 | 6,268 | 1.14 | 1,068,548 | 4,240 | 0.80 | ||||||||||||||||||||||||||||||||||||
Demand deposits | 167,255 | 151,396 | 179,144 | 167,255 | ||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 12,577 | 14,846 | 14,164 | 12,577 | ||||||||||||||||||||||||||||||||||||||||||||
Total non-interest-bearing liabilities | 179,832 | 166,242 | 193,308 | 179,832 | ||||||||||||||||||||||||||||||||||||||||||||
Stockholders' equity | 135,910 | 127,429 | 146,764 | 135,910 | ||||||||||||||||||||||||||||||||||||||||||||
Total liabilities & stockholders' equity | 1,384,290 | 1,233,037 | 1,448,180 | 1,384,290 | ||||||||||||||||||||||||||||||||||||||||||||
Net interest income | 23,783 | 21,697 | 24,827 | 23,783 | ||||||||||||||||||||||||||||||||||||||||||||
Net interest spread (5) | 3.53 | % | 3.69 | % | 3.44 | % | 3.53 | % | ||||||||||||||||||||||||||||||||||||||||
Net interest income as a percentage | ||||||||||||||||||||||||||||||||||||||||||||||||
of average interest-earning assets | 3.67 | % | 3.79 | % | 3.66 | % | 3.67 | % | ||||||||||||||||||||||||||||||||||||||||
Ratio of interest-earning assets | ||||||||||||||||||||||||||||||||||||||||||||||||
to interest-bearing liabilities | 122 | % | 123 | % | 124 | % | 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 21% for 2018 and 34% for 2017. | ||||||||||||||||||||||||||||||||||||||||||||||||
a statutory federal income tax rate of 21%. | a statutory federal income tax rate of 21%. | |||||||||||||||||||||||||||||||||||||||||||||||
(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) | Analysis of Average Balances and Interest Rates | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2018 | June 30, 2017 | June 30, 2019 | June 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||
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 | 9,112 | 4 | 0.18 | 10,552 | 7 | 0.23 | 9,316 | 6 | 0.26 | 9,112 | 4 | 0.18 | ||||||||||||||||||||||||||||||||||||
Total short-term investments | 9,112 | 4 | 0.18 | 10,552 | 7 | 0.23 | 9,316 | 6 | 0.26 | 9,112 | 4 | 0.18 | ||||||||||||||||||||||||||||||||||||
Interest bearing time deposits at banks | 11,191 | 62 | 2.19 | 7,374 | 38 | 2.03 | 15,498 | 98 | 2.54 | 11,191 | 62 | 2.19 | ||||||||||||||||||||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Taxable | 180,905 | 1,028 | 2.27 | 186,983 | 828 | 1.77 | 173,826 | 1,248 | 2.87 | 180,905 | 1,028 | 2.27 | ||||||||||||||||||||||||||||||||||||
Tax-exempt (3) | 68,301 | 600 | 3.51 | 84,235 | 909 | 4.32 | 59,081 | 474 | 3.22 | 68,301 | 600 | 3.51 | ||||||||||||||||||||||||||||||||||||
Total investment securities | 249,206 | 1,628 | 2.61 | 271,218 | 1,737 | 2.56 | 232,907 | 1,722 | 2.96 | 249,206 | 1,628 | 2.61 | ||||||||||||||||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||||||||||||||||||
Loans (2)(3)(4): | ||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage loans | 214,932 | 2,814 | 5.25 | 206,057 | 2,657 | 5.17 | 214,557 | 2,867 | 5.36 | 214,932 | 2,814 | 5.25 | ||||||||||||||||||||||||||||||||||||
Construction | 23,349 | 273 | 4.69 | 26,258 | 269 | 4.12 | 20,308 | 262 | 5.17 | 23,349 | 273 | 4.69 | ||||||||||||||||||||||||||||||||||||
Commercial Loans | 391,935 | 5,197 | 5.32 | 327,924 | 4,326 | 5.29 | 419,175 | 5,805 | 5.55 | 391,935 | 5,197 | 5.32 | ||||||||||||||||||||||||||||||||||||
Agricultural Loans | 298,266 | 3,286 | 4.42 | 200,865 | 2,153 | 4.30 | 335,266 | 3,875 | 4.64 | 298,266 | 3,286 | 4.42 | ||||||||||||||||||||||||||||||||||||
Loans to state & political subdivisions | 99,301 | 873 | 3.53 | 96,461 | 1,014 | 4.22 | 98,979 | 972 | 3.94 | 99,301 | 873 | 3.53 | ||||||||||||||||||||||||||||||||||||
Other loans | 9,494 | 184 | 7.82 | 10,294 | 206 | 8.03 | 9,705 | 184 | 7.60 | 9,494 | 184 | 7.82 | ||||||||||||||||||||||||||||||||||||
Loans, net of discount | 1,037,277 | 12,627 | 4.88 | 867,859 | 10,625 | 4.91 | 1,097,990 | 13,965 | 5.10 | 1,037,277 | 12,627 | 4.88 | ||||||||||||||||||||||||||||||||||||
Total interest-earning assets | 1,306,786 | 14,321 | 4.40 | 1,157,003 | 12,407 | 4.30 | 1,355,711 | 15,791 | 4.67 | 1,306,786 | 14,321 | 4.40 | ||||||||||||||||||||||||||||||||||||
Cash and due from banks | 6,529 | 6,538 | 6,052 | 6,529 | ||||||||||||||||||||||||||||||||||||||||||||
Bank premises and equipment | 16,356 | 16,888 | 16,133 | 16,356 | ||||||||||||||||||||||||||||||||||||||||||||
Other assets | 65,473 | 62,907 | 73,702 | 65,473 | ||||||||||||||||||||||||||||||||||||||||||||
Total non-interest earning assets | 88,358 | 86,333 | 95,887 | 88,358 | ||||||||||||||||||||||||||||||||||||||||||||
Total assets | 1,395,144 | 1,243,336 | 1,451,598 | 1,395,144 | ||||||||||||||||||||||||||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | LIABILITIES AND STOCKHOLDERS' EQUITY | LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||
NOW accounts | 330,550 | 404 | 0.49 | 328,055 | 294 | 0.36 | 329,539 | 589 | 0.72 | 330,550 | 404 | 0.49 | ||||||||||||||||||||||||||||||||||||
Savings accounts | 189,457 | 51 | 0.11 | 180,042 | 47 | 0.10 | 217,537 | 206 | 0.38 | 189,457 | 51 | 0.11 | ||||||||||||||||||||||||||||||||||||
Money market accounts | 160,719 | 365 | 0.91 | 128,931 | 160 | 0.50 | 161,611 | 509 | 1.26 | 160,719 | 365 | 0.91 | ||||||||||||||||||||||||||||||||||||
Certificates of deposit | 268,526 | 765 | 1.14 | 261,368 | 642 | 0.98 | 288,788 | 1,094 | 1.52 | 268,526 | 765 | 1.14 | ||||||||||||||||||||||||||||||||||||
Total interest-bearing deposits | 949,252 | 1,585 | 0.67 | 898,396 | 1,143 | 0.51 | 997,475 | 2,398 | 0.96 | 949,252 | 1,585 | 0.67 | ||||||||||||||||||||||||||||||||||||
Other borrowed funds | 125,815 | 692 | 2.21 | 45,969 | 231 | 2.02 | 110,598 | 768 | 2.79 | 125,815 | 692 | 2.21 | ||||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 1,075,067 | 2,277 | 0.85 | 944,365 | 1,374 | 0.58 | 1,108,073 | 3,166 | 1.15 | 1,075,067 | 2,277 | 0.85 | ||||||||||||||||||||||||||||||||||||
Demand deposits | 170,287 | 155,724 | 181,277 | 170,287 | ||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 12,617 | 14,820 | 14,127 | 12,617 | ||||||||||||||||||||||||||||||||||||||||||||
Total non-interest-bearing liabilities | 182,904 | 170,544 | 195,404 | 182,904 | ||||||||||||||||||||||||||||||||||||||||||||
Stockholders' equity | 137,173 | 128,427 | 148,121 | 137,173 | ||||||||||||||||||||||||||||||||||||||||||||
Total liabilities & stockholders' equity | 1,395,144 | 1,243,336 | 1,451,598 | 1,395,144 | ||||||||||||||||||||||||||||||||||||||||||||
Net interest income | 12,044 | 11,033 | 12,625 | 12,044 | �� | |||||||||||||||||||||||||||||||||||||||||||
Net interest spread (5) | 3.55 | % | 3.72 | % | 3.53 | % | 3.55 | % | ||||||||||||||||||||||||||||||||||||||||
Net interest income as a percentage | ||||||||||||||||||||||||||||||||||||||||||||||||
of average interest-earning assets | 3.70 | % | 3.82 | % | 3.74 | % | 3.70 | % | ||||||||||||||||||||||||||||||||||||||||
Ratio of interest-earning assets | ||||||||||||||||||||||||||||||||||||||||||||||||
to interest-bearing liabilities | 122 | % | 123 | % | 122 | % | 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 21% for 2018 and 34% for 2017. | ||||||||||||||||||||||||||||||||||||||||||||||||
a statutory federal income tax rate of 21%. | a statutory federal income tax rate of 21%. | |||||||||||||||||||||||||||||||||||||||||||||||
(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. |
For the Three Months | For the Six Months | For the Three Months | For the Six Months | |||||||||||||||||||||||||||||
Ended June 30, | Ended June 30, | Ended June 30, | Ended June 30, | |||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
Interest and dividend income from investment securities | ||||||||||||||||||||||||||||||||
and interest bearing deposits at banks (non-tax adjusted) | $ | 1,567 | $ | 1,474 | $ | 3,089 | $ | 3,057 | $ | 1,726 | $ | 1,567 | $ | 3,429 | $ | 3,089 | ||||||||||||||||
Tax equivalent adjustment | 127 | 308 | 267 | 653 | 100 | 127 | 195 | 267 | ||||||||||||||||||||||||
Interest and dividend income from investment securities | ||||||||||||||||||||||||||||||||
and interest bearing deposits at banks (tax equivalent basis) | $ | 1,694 | $ | 1,782 | $ | 3,356 | $ | 3,710 | $ | 1,826 | $ | 1,694 | $ | 3,624 | $ | 3,356 | ||||||||||||||||
Interest and fees on loans (non-tax adjusted) | $ | 12,461 | $ | 10,304 | $ | 24,322 | $ | 20,021 | $ | 13,776 | $ | 12,461 | $ | 27,090 | $ | 24,322 | ||||||||||||||||
Tax equivalent adjustment | 166 | 321 | 345 | 643 | 189 | 166 | 381 | 345 | ||||||||||||||||||||||||
Interest and fees on loans (tax equivalent basis) | $ | 12,627 | $ | 10,625 | $ | 24,667 | $ | 20,664 | $ | 13,965 | $ | 12,627 | $ | 27,471 | $ | 24,667 | ||||||||||||||||
Total interest income | $ | 14,028 | $ | 11,778 | $ | 27,411 | $ | 23,078 | $ | 15,502 | $ | 14,028 | $ | 30,519 | $ | 27,411 | ||||||||||||||||
Total interest expense | 2,277 | 1,374 | 4,240 | 2,677 | 3,166 | 2,277 | 6,268 | 4,240 | ||||||||||||||||||||||||
Net interest income | 11,751 | 10,404 | 23,171 | 20,401 | 12,336 | 11,751 | 24,251 | 23,171 | ||||||||||||||||||||||||
Total tax equivalent adjustment | 293 | 629 | 612 | 1,296 | 289 | 293 | 576 | 612 | ||||||||||||||||||||||||
Net interest income (tax equivalent basis) | $ | 12,044 | $ | 11,033 | $ | 23,783 | $ | 21,697 | $ | 12,625 | $ | 12,044 | $ | 24,827 | $ | 23,783 |
Three months ended June 30, 2018 vs 2017 (1) | Six months ended June 30, 2018 vs. 2017 (1) | Three months ended June 30, 2019 vs 2018 (1) | Six months ended June 30, 2019 vs 2018 (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 | $ | (2 | ) | $ | (1 | ) | $ | (3 | ) | $ | - | $ | - | $ | - | $ | - | $ | 2 | $ | 2 | $ | 4 | $ | - | $ | 4 | |||||||||||||||||||||
Interest bearing time deposits at banks | 20 | 4 | 24 | 39 | 5 | 44 | 26 | 10 | 36 | 57 | 23 | 80 | ||||||||||||||||||||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Taxable | (26 | ) | 226 | 200 | (111 | ) | 368 | 257 | (38 | ) | 258 | 220 | 54 | 471 | 525 | |||||||||||||||||||||||||||||||||
Tax-exempt | (156 | ) | (153 | ) | (309 | ) | (313 | ) | (342 | ) | (655 | ) | (77 | ) | (49 | ) | (126 | ) | (237 | ) | (104 | ) | (341 | ) | ||||||||||||||||||||||||
Total investments | (182 | ) | 73 | (109 | ) | (424 | ) | 26 | (398 | ) | (115 | ) | 209 | 94 | (183 | ) | 367 | 184 | ||||||||||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage loans | 115 | 42 | 157 | 226 | 21 | 247 | (5 | ) | 58 | 53 | 9 | 145 | 154 | |||||||||||||||||||||||||||||||||||
Construction | (12 | ) | 16 | 4 | (163 | ) | 63 | (100 | ) | (53 | ) | 42 | (11 | ) | 94 | 52 | 146 | |||||||||||||||||||||||||||||||
Commercial Loans | 848 | 23 | 871 | 1,775 | 8 | 1,783 | 371 | 237 | 608 | 547 | 479 | 1,026 | ||||||||||||||||||||||||||||||||||||
Agricultural Loans | 1,071 | 62 | 1,133 | 2,300 | 58 | 2,358 | 422 | 167 | 589 | 989 | 326 | 1,315 | ||||||||||||||||||||||||||||||||||||
Loans to state & political subdivisions | 31 | (172 | ) | (141 | ) | 115 | (353 | ) | (238 | ) | (3 | ) | 102 | 99 | (33 | ) | 196 | 163 | ||||||||||||||||||||||||||||||
Other loans | (16 | ) | (6 | ) | (22 | ) | (35 | ) | (12 | ) | (47 | ) | 5 | (5 | ) | - | 9 | (9 | ) | - | ||||||||||||||||||||||||||||
Total loans, net of discount | 2,037 | (35 | ) | 2,002 | 4,218 | (215 | ) | 4,003 | 737 | 601 | 1,338 | 1,615 | 1,189 | 2,804 | ||||||||||||||||||||||||||||||||||
Total Interest Income | 1,873 | 41 | 1,914 | 3,833 | (184 | ) | 3,649 | 648 | 822 | 1,470 | 1,493 | 1,579 | 3,072 | |||||||||||||||||||||||||||||||||||
Interest Expense: | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||||||||||||||||||||||||||
NOW accounts | 2 | 108 | 110 | 15 | 184 | 199 | (1 | ) | 186 | 185 | 2 | 432 | 434 | |||||||||||||||||||||||||||||||||||
Savings accounts | 3 | 1 | 4 | 5 | 4 | 9 | 9 | 146 | 155 | 16 | 273 | 289 | ||||||||||||||||||||||||||||||||||||
Money Market accounts | 47 | 158 | 205 | 85 | 235 | 320 | 2 | 142 | 144 | 34 | 370 | 404 | ||||||||||||||||||||||||||||||||||||
Certificates of deposit | 18 | 105 | 123 | 27 | 158 | 185 | 61 | 268 | 329 | 138 | 546 | 684 | ||||||||||||||||||||||||||||||||||||
Total interest-bearing deposits | 70 | 372 | 442 | 132 | 581 | 713 | 71 | 742 | 813 | 190 | 1,621 | 1,811 | ||||||||||||||||||||||||||||||||||||
Other borrowed funds | 437 | 24 | 461 | 743 | 107 | 850 | (65 | ) | 141 | 76 | (150 | ) | 367 | 217 | ||||||||||||||||||||||||||||||||||
Total interest expense | 507 | 396 | 903 | 875 | 688 | 1,563 | 6 | 883 | 889 | 40 | 1,988 | 2,028 | ||||||||||||||||||||||||||||||||||||
Net interest income | $ | 1,366 | $ | (355 | ) | $ | 1,011 | $ | 2,958 | $ | (872 | ) | $ | 2,086 | $ | 642 | $ | (61 | ) | $ | 581 | $ | 1,453 | $ | (409 | ) | $ | 1,044 | ||||||||||||||||||||
(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 | (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. | 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 |
· | The average balance of commercial loans increased |
· | Interest income on agricultural loans increased |
· | The average balance of construction loans |
· | The average balance of state and political subdivision loans |
· | Interest income on residential mortgage loans increased |
· | The average balance of interest bearing deposits increased |
· | The average balance of other borrowed funds |
· | Total investment income |
· | Total loan interest income increased |
· | The average balance of interest bearing certificates of deposits increased |
· | The average balance of other borrowed funds |
Six months ended June 30, | Change | Six months ended June 30, | Change | |||||||||||||||||||||||||||||
2018 | 2017 | Amount | % | 2019 | 2018 | Amount | % | |||||||||||||||||||||||||
Service charges | $ | 2,274 | $ | 2,178 | $ | 96 | 4.4 | $ | 2,273 | $ | 2,274 | $ | (1 | ) | (0.0 | ) | ||||||||||||||||
Trust | 401 | 409 | (8 | ) | (2.0 | ) | 441 | 401 | 40 | 10.0 | ||||||||||||||||||||||
Brokerage and insurance | 349 | 305 | 44 | 14.4 | 554 | 349 | 205 | 58.7 | ||||||||||||||||||||||||
Gains on loans sold | 132 | 249 | (117 | ) | (47.0 | ) | 163 | 132 | 31 | 23.5 | ||||||||||||||||||||||
Equity security gains, net | 13 | - | 13 | NA | 41 | 13 | 28 | 215.4 | ||||||||||||||||||||||||
Available for sale security gains, net | - | 195 | (195 | ) | (100.0 | ) | ||||||||||||||||||||||||||
Earnings on bank owned life insurance | 306 | 333 | (27 | ) | (8.1 | ) | 305 | 306 | (1 | ) | (0.3 | ) | ||||||||||||||||||||
Other | 273 | 254 | 19 | 7.5 | 283 | 273 | 10 | 3.7 | ||||||||||||||||||||||||
Total | $ | 3,748 | $ | 3,923 | $ | (175 | ) | (4.5 | ) | $ | 4,060 | $ | 3,748 | $ | 312 | 8.3 | ||||||||||||||||
Three months ended June 30, | Change | Three months ended June 30, | Change | |||||||||||||||||||||||||||||
2018 | 2017 | Amount | % | 2019 | 2018 | Amount | % | |||||||||||||||||||||||||
Service charges | $ | 1,170 | $ | 1,120 | $ | 50 | 4.5 | $ | 1,174 | $ | 1,170 | $ | 4 | 0.3 | ||||||||||||||||||
Trust | 150 | 188 | (38 | ) | (20.2 | ) | 209 | 150 | 59 | 39.3 | ||||||||||||||||||||||
Brokerage and insurance | 168 | 114 | 54 | 47.4 | 261 | 168 | 93 | 55.4 | ||||||||||||||||||||||||
Gains on loans sold | 60 | 148 | (88 | ) | (59.5 | ) | 64 | 60 | 4 | 6.7 | ||||||||||||||||||||||
Equity security gains, net | 7 | - | 7 | NA | 30 | 7 | 23 | 328.6 | ||||||||||||||||||||||||
Available for sale security gains, net | - | 23 | (23 | ) | (100.0 | ) | ||||||||||||||||||||||||||
Earnings on bank owned life insurance | 154 | 167 | (13 | ) | (7.8 | ) | 154 | 154 | - | - | ||||||||||||||||||||||
Other | 133 | 128 | 5 | 3.9 | 135 | 133 | 2 | 1.5 | ||||||||||||||||||||||||
Total | $ | 1,842 | $ | 1,888 | $ | (46 | ) | (2.4 | ) | $ | 2,027 | $ | 1,842 | $ | 185 | 10.0 |
Six months ended | Six months ended | |||||||||||||||||||||||||||||||
June 30, | Change | June 30, | Change | |||||||||||||||||||||||||||||
2018 | 2017 | Amount | % | 2019 | 2018 | Amount | % | |||||||||||||||||||||||||
Salaries and employee benefits | $ | 9,572 | $ | 8,743 | $ | 829 | 9.5 | $ | 10,033 | $ | 9,572 | $ | 461 | 4.8 | ||||||||||||||||||
Occupancy | 1,106 | 1,004 | 102 | 10.2 | 1,109 | 1,106 | 3 | 0.3 | ||||||||||||||||||||||||
Furniture and equipment | 264 | 285 | (21 | ) | (7.4 | ) | 336 | 264 | 72 | 27.3 | ||||||||||||||||||||||
Professional fees | 557 | 568 | (11 | ) | (1.9 | ) | 758 | 766 | (8 | ) | (1.0 | ) | ||||||||||||||||||||
FDIC insurance | 207 | 200 | 7 | 3.5 | 216 | 207 | 9 | 4.3 | ||||||||||||||||||||||||
Pennsylvania shares tax | 600 | 524 | 76 | 14.5 | 550 | 600 | (50 | ) | (8.3 | ) | ||||||||||||||||||||||
Amortization of intangibles | 150 | 149 | 1 | NA | 132 | 150 | (18 | ) | (12.0 | ) | ||||||||||||||||||||||
ORE expenses | 295 | 172 | 123 | 71.5 | 216 | 86 | 130 | 151.2 | ||||||||||||||||||||||||
Other | 2,783 | 2,712 | 71 | 2.6 | 3,209 | 2,783 | 426 | 15.3 | ||||||||||||||||||||||||
Total | $ | 15,534 | $ | 14,357 | $ | 1,177 | 8.2 | $ | 16,559 | $ | 15,534 | $ | 1,025 | 6.6 | ||||||||||||||||||
Three months ended | ||||||||||||||||||||||||||||||||
June 30, | Change | |||||||||||||||||||||||||||||||
2018 | 2017 | Amount | % | |||||||||||||||||||||||||||||
Salaries and employee benefits | $ | 4,737 | $ | 4,377 | $ | 360 | 8.2 | |||||||||||||||||||||||||
Occupancy | 514 | 477 | 37 | 7.8 | ||||||||||||||||||||||||||||
Furniture and equipment | 122 | 146 | (24 | ) | (16.4 | ) | ||||||||||||||||||||||||||
Professional fees | 262 | 258 | 4 | 1.6 | ||||||||||||||||||||||||||||
FDIC insurance | 107 | 95 | 12 | 12.6 | ||||||||||||||||||||||||||||
Pennsylvania shares tax | 300 | 243 | 57 | 23.5 | ||||||||||||||||||||||||||||
Amortization of intangibles | 74 | 73 | 1 | 1.4 | ||||||||||||||||||||||||||||
ORE expenses | 157 | 82 | 75 | 91.5 | ||||||||||||||||||||||||||||
Other | 1,429 | 1,415 | 14 | 1.0 | ||||||||||||||||||||||||||||
Total | $ | 7,702 | $ | 7,166 | $ | 536 | 7.5 |
Three months ended | ||||||||||||||||
June 30, | Change | |||||||||||||||
2019 | 2018 | Amount | % | |||||||||||||
Salaries and employee benefits | $ | 5,004 | $ | 4,737 | $ | 267 | 5.6 | |||||||||
Occupancy | 517 | 514 | 3 | 0.6 | ||||||||||||
Furniture and equipment | 181 | 122 | 59 | 48.4 | ||||||||||||
Professional fees | 316 | 367 | (51 | ) | (13.9 | ) | ||||||||||
FDIC insurance | 105 | 107 | (2 | ) | (1.9 | ) | ||||||||||
Pennsylvania shares tax | 275 | 300 | (25 | ) | (8.3 | ) | ||||||||||
Amortization of intangibles | 66 | 74 | (8 | ) | (10.8 | ) | ||||||||||
ORE expenses | 109 | 52 | 57 | 109.6 | ||||||||||||
Other | 1,664 | 1,429 | 235 | 16.4 | ||||||||||||
Total | $ | 8,237 | $ | 7,702 | $ | 535 | 6.9 |
Fair Market Value of Investment Portfolio | ||||||||||||||||
June 30, 2018 | December 31, 2017 | |||||||||||||||
Amount | % | Amount | % | |||||||||||||
Debt securities: | ||||||||||||||||
U. S. Agency securities | $ | 101,988 | 40.8 | $ | 98,887 | 38.8 | ||||||||||
U. S. Treasury notes | 32,992 | 13.2 | 28,604 | 11.2 | ||||||||||||
Obligations of state & political subdivisions | 67,872 | 27.1 | 79,090 | 31.0 | ||||||||||||
Corporate obligations | 3,023 | 1.2 | 3,083 | 1.2 | ||||||||||||
Mortgage-backed securities in | ||||||||||||||||
government sponsored entities | 44,150 | 17.6 | 45,027 | 17.7 | ||||||||||||
Equity securities (a) | 195 | 0.1 | 91 | 0.1 | ||||||||||||
Total | $ | 250,220 | 100.0 | $ | 254,782 | 100.0 | ||||||||||
June 30, 2018/ | ||||||||||||||||
December 31, 2017 | ||||||||||||||||
Change | ||||||||||||||||
Amount | % | |||||||||||||||
Debt securities: | ||||||||||||||||
U. S. Agency securities | $ | 3,101 | 3.1 | |||||||||||||
U. S. Treasury notes | 4,388 | 15.3 | ||||||||||||||
Obligations of state & political subdivisions | (11,218 | ) | (14.2 | ) | ||||||||||||
Corporate obligations | (60 | ) | (1.9 | ) | ||||||||||||
Mortgage-backed securities in | ||||||||||||||||
government sponsored entities | (877 | ) | (1.9 | ) | ||||||||||||
Equity securities | 104 | 114.3 | ||||||||||||||
Total | $ | (4,562 | ) | (1.8 | ) |
June 30, 2019 | December 31, 2018 | |||||||||||||||
Amount | % | Amount | % | |||||||||||||
Debt securities: | ||||||||||||||||
U. S. Agency securities | $ | 94,231 | 39.7 | $ | 106,385 | 44.0 | ||||||||||
U. S. Treasury notes | 34,096 | 14.4 | 33,358 | 13.8 | ||||||||||||
Obligations of state & political subdivisions | 58,515 | 24.7 | 52,047 | 21.5 | ||||||||||||
Corporate obligations | 3,080 | 1.3 | 3,034 | 1.3 | ||||||||||||
Mortgage-backed securities in | ||||||||||||||||
government sponsored entities | 46,818 | 19.7 | 46,186 | 19.1 | ||||||||||||
Equity securities | 557 | 0.2 | 516 | 0.3 | ||||||||||||
Total | $ | 237,297 | 100.0 | $ | 241,526 | 100.0 | ||||||||||
June 30, 2019/ | ||||||||||||||||
December 31, 2018 | ||||||||||||||||
Change | ||||||||||||||||
Amount | % | |||||||||||||||
Debt securities: | ||||||||||||||||
U. S. Agency securities | $ | (12,154 | ) | (11.4 | ) | |||||||||||
U. S. Treasury notes | 738 | 2.2 | ||||||||||||||
Obligations of state & political subdivisions | 6,468 | 12.4 | ||||||||||||||
Corporate obligations | 46 | 1.5 | ||||||||||||||
Mortgage-backed securities in | ||||||||||||||||
government sponsored entities | 632 | 1.4 | ||||||||||||||
Equity securities | 41 | 7.9 | ||||||||||||||
Total | $ | (4,229 | ) | (1.8 | ) |
June 30, | December 31, | |||||||||||||||
2018 | 2017 | |||||||||||||||
Amount | % | Amount | % | |||||||||||||
Real estate: | ||||||||||||||||
Residential | $ | 213,242 | 20.5 | $ | 214,479 | 21.4 | ||||||||||
Commercial | 309,571 | 29.8 | 308,084 | 30.8 | ||||||||||||
Agricultural | 262,691 | 25.3 | 239,957 | 24.0 | ||||||||||||
Construction | 27,901 | 2.7 | 13,502 | 1.3 | ||||||||||||
Consumer | 9,740 | 0.9 | 9,944 | 1.0 | ||||||||||||
Other commercial loans | 75,002 | 7.2 | 72,013 | 7.2 | ||||||||||||
Other agricultural loans | 42,131 | 4.1 | 37,809 | 3.8 | ||||||||||||
State & political subdivision loans | 99,922 | 9.5 | 104,737 | 10.5 | ||||||||||||
Total loans | 1,040,200 | 100.0 | 1,000,525 | 100.0 | ||||||||||||
Less allowance for loan losses | 11,941 | 11,190 | ||||||||||||||
Net loans | $ | 1,028,259 | $ | 989,335 | ||||||||||||
June 30, 2018/ | ||||||||||||||||
December 31, 2017 | ||||||||||||||||
Change | ||||||||||||||||
Amount | % | |||||||||||||||
Real estate: | ||||||||||||||||
Residential | $ | (1,237 | ) | (0.6 | ) | |||||||||||
Commercial | 1,487 | 0.5 | ||||||||||||||
Agricultural | 22,734 | 9.5 | ||||||||||||||
Construction | 14,399 | 106.6 | ||||||||||||||
Consumer | (204 | ) | (2.1 | ) | ||||||||||||
Other commercial loans | 2,989 | 4.2 | ||||||||||||||
Other agricultural loans | 4,322 | 11.4 | ||||||||||||||
State & political subdivision loans | (4,815 | ) | (4.6 | ) | ||||||||||||
Total loans | $ | 39,675 | 4.0 |
June 30, | December 31, | |||||||||||||||
2019 | 2018 | |||||||||||||||
Amount | % | Amount | % | |||||||||||||
Real estate: | ||||||||||||||||
Residential | $ | 213,014 | 19.4 | $ | 215,305 | 19.9 | ||||||||||
Commercial | 347,430 | 31.6 | 319,265 | 29.5 | ||||||||||||
Agricultural | 294,332 | 26.8 | 284,520 | 26.3 | ||||||||||||
Construction | 20,950 | 1.9 | 33,913 | 3.1 | ||||||||||||
Consumer | 9,854 | 0.9 | 9,858 | 0.9 | ||||||||||||
Other commercial loans | 76,179 | 6.9 | 74,118 | 6.9 | ||||||||||||
Other agricultural loans | 41,689 | 3.8 | 42,186 | 3.9 | ||||||||||||
State & political subdivision loans | 96,174 | 8.7 | 102,718 | 9.5 | ||||||||||||
Total loans | 1,099,622 | 100.0 | 1,081,883 | 100.0 | ||||||||||||
Less allowance for loan losses | 13,304 | 12,884 | ||||||||||||||
Net loans | $ | 1,086,318 | $ | 1,068,999 | ||||||||||||
June 30, 2019/ | ||||||||||||||||
December 31, 2018 | ||||||||||||||||
Change | ||||||||||||||||
Amount | % | |||||||||||||||
Real estate: | ||||||||||||||||
Residential | $ | (2,291 | ) | (1.1 | ) | |||||||||||
Commercial | 28,165 | 8.8 | ||||||||||||||
Agricultural | 9,812 | 3.4 | ||||||||||||||
Construction | (12,963 | ) | (38.2 | ) | ||||||||||||
Consumer | (4 | ) | (0.0 | ) | ||||||||||||
Other commercial loans | 2,061 | 2.8 | ||||||||||||||
Other agricultural loans | (497 | ) | (1.2 | ) | ||||||||||||
State & political subdivision loans | (6,544 | ) | (6.4 | ) | ||||||||||||
Total loans | $ | 17,739 | 1.6 |
June 30, | December 31, | June 30, | December 31, | |||||||||||||||||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||||||||||||||
Balance | ||||||||||||||||||||||||||||||||||||||||
at beginning of period | $ | 11,190 | $ | 8,886 | $ | 7,106 | $ | 6,815 | $ | 7,098 | $ | 12,884 | $ | 11,190 | $ | 8,886 | $ | 7,106 | $ | 6,815 | ||||||||||||||||||||
Charge-offs: | ||||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||
Residential | 17 | 107 | 85 | 66 | 97 | - | 118 | 107 | 85 | 66 | ||||||||||||||||||||||||||||||
Commercial | - | 41 | 100 | 84 | 516 | 293 | 66 | 41 | 100 | 84 | ||||||||||||||||||||||||||||||
Agricultural | - | 30 | - | - | - | - | - | 30 | - | - | ||||||||||||||||||||||||||||||
Consumer | 19 | 130 | 100 | 47 | 47 | 22 | 40 | 130 | 100 | 47 | ||||||||||||||||||||||||||||||
Other commercial loans | 91 | - | 55 | 41 | 250 | 38 | 91 | - | 55 | 41 | ||||||||||||||||||||||||||||||
Other agricultural loans | 50 | 5 | - | - | - | - | 50 | 5 | - | - | ||||||||||||||||||||||||||||||
Total loans charged-off | 177 | 313 | 340 | 238 | 910 | 353 | 365 | 313 | 340 | 238 | ||||||||||||||||||||||||||||||
Recoveries: | ||||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||
Residential | 69 | - | - | - | - | - | 69 | - | - | - | ||||||||||||||||||||||||||||||
Commercial | 3 | 11 | 479 | 14 | 15 | - | 3 | 11 | 479 | 14 | ||||||||||||||||||||||||||||||
Agricultural | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Consumer | 17 | 49 | 88 | 33 | 27 | 18 | 31 | 49 | 88 | 33 | ||||||||||||||||||||||||||||||
Other commercial loans | 14 | 16 | 33 | 2 | - | 5 | 30 | 16 | 33 | 2 | ||||||||||||||||||||||||||||||
Other agricultural loans | - | 1 | - | - | - | - | 1 | 1 | - | - | ||||||||||||||||||||||||||||||
Total loans recovered | 103 | 77 | 600 | 49 | 42 | 23 | 134 | 77 | 600 | 49 | ||||||||||||||||||||||||||||||
Net loans (recovered) charged-off | 74 | 236 | (260 | ) | 189 | 868 | 330 | 231 | 236 | (260 | ) | 189 | ||||||||||||||||||||||||||||
Provision charged to expense | 825 | 2,540 | 1,520 | 480 | 585 | 750 | 1,925 | 2,540 | 1,520 | 480 | ||||||||||||||||||||||||||||||
Balance at end of period | $ | 11,941 | $ | 11,190 | $ | 8,886 | $ | 7,106 | $ | 6,815 | ||||||||||||||||||||||||||||||
Balance at end of year | $ | 13,304 | $ | 12,884 | $ | 11,190 | $ | 8,886 | $ | 7,106 | ||||||||||||||||||||||||||||||
Loans outstanding at end of period | $ | 1,040,200 | $ | 1,000,525 | $ | 799,611 | $ | 695,031 | $ | 554,105 | $ | 1,099,622 | $ | 1,081,883 | $ | 1,000,525 | $ | 799,611 | $ | 695,031 | ||||||||||||||||||||
Average loans outstanding, net | $ | 1,027,778 | $ | 883,355 | $ | 725,881 | $ | 577,992 | $ | 540,541 | $ | 1,094,570 | $ | 1,044,250 | $ | 883,355 | $ | 725,881 | $ | 577,992 | ||||||||||||||||||||
Non-performing assets: | ||||||||||||||||||||||||||||||||||||||||
Non-accruing loans | $ | 10,931 | $ | 10,171 | $ | 11,454 | $ | 6,531 | $ | 6,599 | $ | 12,534 | $ | 13,724 | $ | 10,171 | $ | 11,454 | $ | 6,531 | ||||||||||||||||||||
Accrual loans - 90 days or more past due | 1,046 | 555 | 405 | 623 | 836 | 175 | 68 | 555 | 405 | 623 | ||||||||||||||||||||||||||||||
Total non-performing loans | $ | 11,977 | $ | 10,726 | $ | 11,859 | $ | 7,154 | $ | 7,435 | $ | 12,709 | $ | 13,792 | $ | 10,726 | $ | 11,859 | $ | 7,154 | ||||||||||||||||||||
Foreclosed assets held for sale | 471 | 1,119 | 1,036 | 1,354 | 1,792 | 3,853 | 601 | 1,119 | 1,036 | 1,354 | ||||||||||||||||||||||||||||||
Total non-performing assets | $ | 12,448 | $ | 11,845 | $ | 12,895 | $ | 8,508 | $ | 9,227 | $ | 16,562 | $ | 14,393 | $ | 11,845 | $ | 12,895 | $ | 8,508 | ||||||||||||||||||||
Annualized net charge-offs to average loans | 0.02 | % | 0.03 | % | -0.04 | % | 0.03 | % | 0.16 | % | 0.06 | % | 0.02 | % | 0.03 | % | -0.04 | % | 0.03 | % | ||||||||||||||||||||
Allowance to total loans | 1.15 | % | 1.12 | % | 1.11 | % | 1.02 | % | 1.23 | % | 1.21 | % | 1.19 | % | 1.12 | % | 1.11 | % | 1.02 | % | ||||||||||||||||||||
Allowance to total non-performing loans | 99.70 | % | 104.33 | % | 74.93 | % | 99.33 | % | 91.66 | % | 104.68 | % | 93.42 | % | 104.33 | % | 74.93 | % | 99.33 | % | ||||||||||||||||||||
Non-performing loans as a percent of loans | ||||||||||||||||||||||||||||||||||||||||
net of unearned income | 1.15 | % | 1.07 | % | 1.48 | % | 1.03 | % | 1.34 | % | 1.16 | % | 1.27 | % | 1.07 | % | 1.48 | % | 1.03 | % | ||||||||||||||||||||
Non-performing assets as a percent of loans | Non-performing assets as a percent of loans | Non-performing assets as a percent of loans | ||||||||||||||||||||||||||||||||||||||
net of unearned income | 1.20 | % | 1.18 | % | 1.61 | % | 1.22 | % | 1.67 | % | 1.51 | % | 1.33 | % | 1.18 | % | 1.61 | % | 1.22 | % |
June 30, | December 31 | June 30, | December 31 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | Amount | % | Amount | % | Amount | % | Amount | % | Amount | % | Amount | % | Amount | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential | $ | 1,045 | 20.5 | $ | 1,049 | 21.4 | $ | 1,064 | 25.9 | $ | 905 | 29.3 | $ | 878 | 33.5 | $ | 1,066 | 19.4 | $ | 1,105 | 19.9 | $ | 1,049 | 21.4 | $ | 1,064 | 25.9 | $ | 905 | 29.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | 3,794 | 29.8 | 3,867 | 30.8 | 3,589 | 31.6 | 3,376 | 34.2 | 3,419 | 34.5 | 4,400 | 31.6 | 4,115 | 29.5 | 3,867 | 30.8 | 3,589 | 31.6 | 3,376 | 34.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agricultural | 3,673 | 25.3 | 3,143 | 24.0 | 1,494 | 15.5 | 409 | 8.3 | 451 | 4.4 | 4,532 | 26.8 | 4,264 | 26.3 | 3,143 | 24.0 | 1,494 | 15.5 | 409 | 8.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | 44 | 2.7 | 23 | 1.3 | 47 | 3.2 | 24 | 2.2 | 26 | 1.1 | 36 | 1.9 | 58 | 3.1 | 23 | 1.3 | 47 | 3.2 | 24 | 2.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer | 115 | 0.9 | 124 | 1.0 | 122 | 1.4 | 102 | 1.7 | 84 | 1.5 | 118 | 0.9 | 120 | 0.9 | 124 | 1.0 | 122 | 1.4 | 102 | 1.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other commercial loans | 1,266 | 7.2 | 1,272 | 7.2 | 1,327 | 7.3 | 1,183 | 8.2 | 1,007 | 8.6 | 1,328 | 6.9 | 1,354 | 6.9 | 1,272 | 7.2 | 1,327 | 7.3 | 1,183 | 8.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other agricultural loans | 589 | 4.1 | 492 | 3.8 | 312 | 2.9 | 122 | 2.0 | 217 | 2.0 | 741 | 3.8 | 752 | 3.9 | 492 | 3.8 | 312 | 2.9 | 122 | 2.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
State & political subdivision loans | 767 | 9.5 | 816 | 10.5 | 833 | 12.2 | 593 | 14.1 | 545 | 14.4 | 539 | 8.7 | 762 | 9.5 | 816 | 10.5 | 833 | 12.2 | 593 | 14.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unallocated | 648 | N/A | 404 | N/A | 98 | N/A | 392 | N/A | 188 | N/A | 544 | N/A | 354 | N/A | 404 | N/A | 98 | N/A | 392 | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total allowance for loan losses | $ | 11,941 | 100.0 | $ | 11,190 | 100.0 | $ | 8,886 | 100.0 | $ | 7,106 | 100.0 | $ | 6,815 | 100.0 | $ | 13,304 | 100.0 | $ | 12,884 | 100.0 | $ | 11,190 | 100.0 | $ | 8,886 | 100.0 | $ | 7,106 | 100.0 |
June 30, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||||
Non-Performing Loans | Non-Performing Loans | |||||||||||||||||||||||||||||||
30 - 89 Days | 90 Days | 30 - 89 Days | ||||||||||||||||||||||||||||||
Past Due | Past Due | Non- | Total Non- | Past Due | 90 Days Past | Non- | Total Non- | |||||||||||||||||||||||||
(in thousands) | Accruing | Accruing | accrual | Performing | Accruing | Due Accruing | accrual | Performing | ||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||
Residential | $ | 500 | $ | 153 | $ | 1,017 | $ | 1,170 | $ | 1,624 | $ | 20 | $ | 1,161 | $ | 1,181 | ||||||||||||||||
Commercial | 1,377 | - | 4,704 | 4,704 | 1,444 | 36 | 5,957 | 5,993 | ||||||||||||||||||||||||
Agricultural | 107 | - | 3,566 | 3,566 | 121 | - | 3,206 | 3,206 | ||||||||||||||||||||||||
Consumer | 71 | 2 | - | 2 | 37 | 12 | 14 | 26 | ||||||||||||||||||||||||
Other commercial loans | 136 | 20 | 1,998 | 2,018 | 73 | - | 2,185 | 2,185 | ||||||||||||||||||||||||
Other agricultural loans | 408 | - | 1,249 | 1,249 | 9 | - | 1,201 | 1,201 | ||||||||||||||||||||||||
Total nonperforming loans | $ | 2,599 | $ | 175 | $ | 12,534 | $ | 12,709 | $ | 3,308 | $ | 68 | $ | 13,724 | $ | 13,792 |
June 30, 2018 | December 31, 2017 | |||||||||||||||||||||||||||||||
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 | $ | 905 | $ | - | $ | 1,493 | $ | 1,493 | $ | 1,550 | $ | 218 | $ | 1,386 | $ | 1,604 | ||||||||||||||||
Commercial | 2,864 | 38 | 6,262 | 6,300 | 1,519 | 162 | 5,192 | 5,354 | ||||||||||||||||||||||||
Agricultural | 1,105 | 543 | 167 | 710 | 242 | 30 | 175 | 205 | ||||||||||||||||||||||||
Construction | - | - | - | - | - | - | 133 | 133 | ||||||||||||||||||||||||
Consumer | 32 | 32 | 25 | 57 | 86 | 7 | 42 | 49 | ||||||||||||||||||||||||
Other commercial loans | 55 | - | 2,415 | 2,415 | 50 | 32 | 2,637 | 2,669 | ||||||||||||||||||||||||
Other agricultural loans | 182 | 433 | 569 | 1,002 | 42 | 106 | 606 | 712 | ||||||||||||||||||||||||
Total nonperforming loans | $ | 5,143 | $ | 1,046 | $ | 10,931 | $ | 11,977 | $ | 3,489 | $ | 555 | $ | 10,171 | $ | 10,726 | ||||||||||||||||
Change in Non-Performing Loans | Change in Non-Performing Loans | |||||||||||||||
June 30, 2018 /December 31, 2017 | June 30, 2019 /December 31, 2018 | |||||||||||||||
(in thousands) | Amount | % | Amount | % | ||||||||||||
Real estate: | ||||||||||||||||
Residential | $ | (111 | ) | (6.9 | ) | $ | (11 | ) | (0.9 | ) | ||||||
Commercial | 946 | 17.7 | (1,289 | ) | (21.5 | ) | ||||||||||
Agricultural | 505 | 246.3 | 360 | 11.2 | ||||||||||||
Construction | (133 | ) | (100.0 | ) | ||||||||||||
Consumer | 8 | 16.3 | (24 | ) | (92.3 | ) | ||||||||||
Other commercial loans | (254 | ) | (9.5 | ) | (167 | ) | (7.6 | ) | ||||||||
Other agricultural loans | 290 | 40.7 | 48 | 4.0 | ||||||||||||
Total nonperforming loans | $ | 1,251 | 11.7 | $ | (1,083 | ) | (7.9 | ) |
· | A commercial customer with a total loan relationship of |
· | An agricultural customer with a total loan relationship of |
· | An agricultural customer with a total loan relationship of $1.6 million, secured by real estate, equipment and cattle, was on non-accrual status as of June 30, 2019. Included within these loans to this customer are $137,000 of loans which are subject to Farm Service Agency guarantees. Depressed milk prices have created cash flow difficulties for this customer. Absent a sizable and sustained increase in milk prices, which is not assured, we expect we will need to rely upon the collateral for repayment of interest and principal. As of June 30, 2019, there was a specific reserve of $1,000 for this relationship. |
· | A commercial customer with a loan relationship of $950,000, secured by commercial real estate, business assets and vehicles, was on non-accrual status as of June 30, 2019. The business expanded into a new market, which has not grown as originally expected and has created cashflow issues. Management reviewed the collateral and determined that no specific reserve |
· |
· | The Company has a history of low charge-offs, which |
June 30, | December 31, | June 30, | December 31, | |||||||||||||||||||||||||||||
2018 | 2017 | 2019 | 2018 | |||||||||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | Amount | % | |||||||||||||||||||||||||
Non-interest-bearing deposits | $ | 169,014 | 15.1 | $ | 171,840 | 15.6 | $ | 183,903 | 15.5 | $ | 179,971 | 15.2 | ||||||||||||||||||||
NOW accounts | 321,799 | 28.8 | 337,307 | 30.5 | 333,427 | 28.2 | 336,756 | 28.4 | ||||||||||||||||||||||||
Savings deposits | 190,557 | 17.0 | 184,057 | 16.7 | 221,238 | 18.7 | 205,334 | 17.3 | ||||||||||||||||||||||||
Money market deposit accounts | 165,781 | 14.8 | 145,287 | 13.1 | 159,380 | 13.5 | 164,625 | 13.9 | ||||||||||||||||||||||||
Certificates of deposit | 271,441 | 24.3 | 266,452 | 24.1 | 285,710 | 24.1 | 298,470 | 25.2 | ||||||||||||||||||||||||
Total | $ | 1,118,592 | 100.0 | $ | 1,104,943 | 100.0 | $ | 1,183,658 | 100.0 | $ | 1,185,156 | 100.0 | ||||||||||||||||||||
June 30, 2018/ | June 30, 2019/ | |||||||||||||||
December 31, 2017 | December 31, 2018 | |||||||||||||||
Change | Change | |||||||||||||||
Amount | % | Amount | % | |||||||||||||
Non-interest-bearing deposits | $ | (2,826 | ) | (1.6 | ) | $ | 3,932 | 2.2 | ||||||||
NOW accounts | (15,508 | ) | (4.6 | ) | (3,329 | ) | (1.0 | ) | ||||||||
Savings deposits | 6,500 | 3.5 | 15,904 | 7.7 | ||||||||||||
Money market deposit accounts | 20,494 | 14.1 | (5,245 | ) | (3.2 | ) | ||||||||||
Certificates of deposit | 4,989 | 1.9 | (12,760 | ) | (4.3 | ) | ||||||||||
Total | $ | 13,649 | 1.2 | $ | (1,498 | ) | (0.1 | ) |
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, 2018 | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||||||||||||||||||||
June 30, 2019 | 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 | $ | 134,566 | 13.23 | % | $ | 81,356 | 8.00 | % | $ | 101,695 | 10.00 | % | $ | 147,056 | 13.73 | % | $ | 85,676 | 8.00 | % | $ | 107,095 | 10.00 | % | ||||||||||||||||||||||||
Bank | $ | 128,570 | 12.65 | % | $ | 81,339 | 8.00 | % | $ | 101,674 | 10.00 | % | $ | 140,066 | 13.08 | % | $ | 85,647 | 8.00 | % | $ | 107,058 | 10.00 | % | ||||||||||||||||||||||||
Tier 1 Capital (to Risk Weighted Assets): | Tier 1 Capital (to Risk Weighted Assets): | Tier 1 Capital (to Risk Weighted Assets): | ||||||||||||||||||||||||||||||||||||||||||||||
Company | $ | 122,460 | 12.04 | % | $ | 61,017 | 6.00 | % | $ | 81,356 | 8.00 | % | $ | 133,668 | 12.48 | % | $ | 64,257 | 6.00 | % | $ | 85,676 | 8.00 | % | ||||||||||||||||||||||||
Bank | $ | 116,464 | 11.45 | % | $ | 61,004 | 6.00 | % | $ | 81,339 | 8.00 | % | $ | 126,682 | 11.83 | % | $ | 64,235 | 6.00 | % | $ | 85,647 | 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 | $ | 114,960 | 11.30 | % | $ | 45,763 | 4.50 | % | $ | 66,101 | 6.50 | % | $ | 126,168 | 11.78 | % | $ | 48,193 | 4.50 | % | $ | 69,612 | 6.50 | % | ||||||||||||||||||||||||
Bank | $ | 116,464 | 11.45 | % | $ | 45,753 | 4.50 | % | $ | 66,088 | 6.50 | % | $ | 126,682 | 11.83 | % | $ | 48,176 | 4.50 | % | $ | 69,588 | 6.50 | % | ||||||||||||||||||||||||
Tier 1 Capital (to Average Assets): | Tier 1 Capital (to Average Assets): | Tier 1 Capital (to Average Assets): | ||||||||||||||||||||||||||||||||||||||||||||||
Company | $ | 122,460 | 8.94 | % | $ | 54,767 | 4.00 | % | $ | 68,459 | 5.00 | % | $ | 133,668 | 9.37 | % | $ | 57,051 | 4.00 | % | $ | 71,314 | 5.00 | % | ||||||||||||||||||||||||
Bank | $ | 116,464 | 8.51 | % | $ | 54,748 | 4.00 | % | $ | 68,435 | 5.00 | % | $ | 126,682 | 8.89 | % | $ | 57,020 | 4.00 | % | $ | 71,275 | 5.00 | % |
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 | |||||||||||||||||||||||||||||||||||||||||||
December 31, 2017 | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||||||||||||||||||||
December 31, 2018 | 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 | $ | 128,578 | 13.20 | % | $ | 77,906 | 8.00 | % | $ | 97,383 | 10.00 | % | $ | 141,272 | 13.42 | % | $ | 84,227 | 8.00 | % | $ | 105,284 | 10.00 | % | ||||||||||||||||||||||||
Bank | $ | 122,469 | 12.58 | % | $ | 77,852 | 8.00 | % | $ | 97,315 | 10.00 | % | $ | 134,841 | 12.82 | % | $ | 84,141 | 8.00 | % | $ | 105,176 | 10.00 | % | ||||||||||||||||||||||||
Tier 1 Capital (to Risk Weighted Assets): | Tier 1 Capital (to Risk Weighted Assets): | Tier 1 Capital (to Risk Weighted Assets): | ||||||||||||||||||||||||||||||||||||||||||||||
Company | $ | 117,224 | 12.04 | % | $ | 58,430 | 6.00 | % | $ | 77,906 | 8.00 | % | $ | 128,224 | 12.18 | % | $ | 63,171 | 6.00 | % | $ | 84,227 | 8.00 | % | ||||||||||||||||||||||||
Bank | $ | 111,114 | 11.42 | % | $ | 58,389 | 6.00 | % | $ | 77,852 | 8.00 | % | $ | 121,792 | 11.58 | % | $ | 63,106 | 6.00 | % | $ | 84,141 | 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 | $ | 109,724 | 11.27 | % | $ | 43,822 | 4.50 | % | $ | 63,299 | 6.50 | % | $ | 120,724 | 11.47 | % | $ | 47,378 | 4.50 | % | $ | 68,435 | 6.50 | % | ||||||||||||||||||||||||
Bank | $ | 111,114 | 11.42 | % | $ | 43,792 | 4.50 | % | $ | 63,255 | 6.50 | % | $ | 121,792 | 11.58 | % | $ | 47,329 | 4.50 | % | $ | 68,364 | 6.50 | % | ||||||||||||||||||||||||
Tier 1 Capital (to Average Assets): | Tier 1 Capital (to Average Assets): | Tier 1 Capital (to Average Assets): | ||||||||||||||||||||||||||||||||||||||||||||||
Company | $ | 117,224 | 9.18 | % | $ | 51,085 | 4.00 | % | $ | 63,857 | 5.00 | % | $ | 128,224 | 9.15 | % | $ | 56,041 | 4.00 | % | $ | 70,051 | 5.00 | % | ||||||||||||||||||||||||
Bank | $ | 111,114 | 8.71 | % | $ | 51,023 | 4.00 | % | $ | 63,778 | 5.00 | % | $ | 121,792 | 8.70 | % | $ | 56,018 | 4.00 | % | $ | 70,023 | 5.00 | % |
June 30, 2018 | December 31, 2017 | June 30, 2019 | December 31, 2018 | |||||||||||||
Commitments to extend credit | $ | 209,549 | $ | 188,482 | $ | 199,004 | $ | 199,183 | ||||||||
Standby letters of credit | 15,465 | 15,244 | 15,174 | 16,311 | ||||||||||||
$ | 225,014 | $ | 203,726 | $ | 214,178 | $ | 215,494 |
Change In | % Change In | Change In | % Change In | |||||||||||||||||||||
Prospective One-Year | Prospective | Prospective | Prospective One-Year | Prospective | Prospective | |||||||||||||||||||
Changes in Rates | Net Interest Income | Net Interest Income | Net Interest Income | Net Interest Income | Net Interest Income | Net Interest Income | ||||||||||||||||||
-200 Shock | $ | 49,397 | $ | (505 | ) | (1.01 | ) | |||||||||||||||||
-100 Shock | $ | 46,316 | $ | (1,069 | ) | (2.26 | ) | 50,407 | 505 | 1.01 | ||||||||||||||
Base | 47,385 | - | - | 49,902 | - | - | ||||||||||||||||||
+100 Shock | 46,074 | (1,311 | ) | (2.77 | ) | 48,467 | (1,435 | ) | (2.88 | ) | ||||||||||||||
+200 Shock | 44,564 | (2,821 | ) | (5.95 | ) | 46,986 | (2,916 | ) | (5.84 | ) | ||||||||||||||
+300 Shock | 43,090 | (4,295 | ) | (9.06 | ) | 45,469 | (4,433 | ) | (8.88 | ) | ||||||||||||||
+400 Shock | 41,595 | (5,790 | ) | (12.22 | ) | 43,873 | (6,029 | ) | (12.08 | ) |
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) | 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) | ||||||||||||||||||||||||
4/1/18 to 4/30/18 | 75 | $ | 61.00 | 75 | 84,068 | |||||||||||||||||||||||||||
5/1/18 to 5/31/18 | - | $ | 0.00 | - | 84,068 | |||||||||||||||||||||||||||
6/1/18 to 6/30/18 | 3,307 | $ | 62.66 | 3,307 | 80,761 | |||||||||||||||||||||||||||
4/1/19 to 4/30/19 | - | $ | 0.00 | �� | - | 64,767 | ||||||||||||||||||||||||||
5/1/19 to 5/31/19 | 7,113 | $ | 60.65 | 7,113 | 57,654 | |||||||||||||||||||||||||||
6/1/19 to 6/30/19 | 7,745 | $ | 61.13 | 7,745 | 49,909 | |||||||||||||||||||||||||||
Total | 3,382 | $ | 62.62 | 3,382 | 80,761 | 14,858 | $ | 60.90 | 14,858 | 49,909 |
(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. |
101 | The following materials from the |
Citizens Financial Services, Inc. (Registrant) | |||
August | By: | /s/ Randall E. Black | |
Randall E. Black | |||
President (Principal Executive Officer) | |||
August 8, 2019 | By: | /s/ Mickey L. Jones | |
Mickey L. Jones | |||
Chief Financial Officer (Principal Financial and Accounting Officer) | |||