Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 06, 2018 | |
Document and Entity Information: | ||
Entity Registrant Name | AMERICAN RIVER BANKSHARES | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Amendment Flag | false | |
Entity Central Index Key | 1,108,236 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 5,868,637 | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Current Reporting Status | Yes | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 |
CONSOLIDATED BALANCE SHEET (Una
CONSOLIDATED BALANCE SHEET (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and due from banks | $ 24,634 | $ 38,467 |
Federal funds sold | 10,000 | 0 |
Total cash and cash equivalents | 34,634 | 38,467 |
Interest-bearing deposits in banks | 1,746 | 1,746 |
Investment securities: | ||
Available-for-sale, at fair value | 277,269 | 262,322 |
Held-to-maturity, at amortized cost | 311 | 378 |
Loans and leases, less allowance for loan and lease losses of $4,332 at September 30, 2018 and $4,478 at December 31, 2017 | 310,322 | 308,713 |
Premises and equipment, net | 1,072 | 1,158 |
Federal Home Loan Bank stock | 3,932 | 3,932 |
Goodwill and other intangible assets | 16,321 | 16,321 |
Other real estate owned | 961 | 961 |
Bank owned life insurance | 15,350 | 15,122 |
Accrued interest receivable and other assets | 8,076 | 6,502 |
Total Assets | 669,994 | 655,622 |
Deposits: | ||
Noninterest bearing | 209,322 | 215,528 |
Interest-bearing | 366,498 | 340,552 |
Total deposits | 575,820 | 556,080 |
Short-term borrowings | 6,500 | 3,500 |
Long-term borrowings | 9,000 | 12,000 |
Accrued interest payable and other liabilities | 6,939 | 7,121 |
Total liabilities | 598,259 | 578,701 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Preferred stock, no par value; 10,000,000 shares authorized; none Outstanding | 0 | 0 |
Common stock, no par value; 20,000,000 shares authorized; issued and outstanding – 5,864,802 shares at September 30, 2018 and 6,132,362 shares at December 31, 2017 | 30,165 | 34,463 |
Retained earnings | 45,660 | 42,779 |
Accumulated other comprehensive income, net of taxes | (4,090) | (321) |
Total shareholders' equity | 71,735 | 76,921 |
Total liabilities and shareholders' euity | $ 669,994 | $ 655,622 |
CONSOLIDATED BALANCE SHEET (U_2
CONSOLIDATED BALANCE SHEET (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for loan and lease losses (in dollars) | $ 4,332 | $ 4,478 |
Preferred stock, no par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 5,864,802 | 6,132,362 |
Common stock, shares outstanding | 5,864,802 | 6,132,362 |
CONSOLIDATED STATEMENT OF INCOM
CONSOLIDATED STATEMENT OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Interest and fees on loans: | ||||
Taxable | $ 3,405 | $ 3,496 | $ 10,216 | $ 10,384 |
Exempt from Federal income taxes | 127 | 110 | 383 | 376 |
Interest on Federal funds sold | 120 | 0 | 268 | 0 |
Interest on deposits in banks | 10 | 4 | 23 | 9 |
Interest and dividends on investment securities: | ||||
Taxable | 1,902 | 1,292 | 4,930 | 3,978 |
Exempt from Federal income taxes | 102 | 180 | 410 | 496 |
Dividends | 0 | 0 | 0 | 13 |
Total interest income | 5,666 | 5,082 | 16,230 | 15,256 |
Interest expense: | ||||
Interest on deposits | 346 | 224 | 945 | 621 |
Interest on borrowings | 63 | 55 | 171 | 152 |
Total interest expense | 409 | 279 | 1,116 | 773 |
Net interest income | 5,257 | 4,803 | 15,114 | 14,483 |
Provision for loan and lease losses | 50 | 300 | 50 | 300 |
Net interest income after provision for loan and lease losses | 5,207 | 4,503 | 15,064 | 14,183 |
Noninterest income: | ||||
Service charges on deposit accounts | 119 | 117 | 352 | 348 |
Gain on sale of securities | 8 | 19 | 19 | 161 |
Other noninterest income | 250 | 241 | 758 | 726 |
Total noninterest income | 377 | 377 | 1,129 | 1,235 |
Noninterest expense: | ||||
Salaries and employee benefits | 2,551 | 2,102 | 7,274 | 6,336 |
Occupancy | 267 | 262 | 791 | 793 |
Furniture and equipment | 141 | 141 | 415 | 439 |
Federal Deposit Insurance Corporation assessments | 52 | 51 | 158 | 156 |
Expenses related to other real estate owned | 10 | 4 | 12 | 36 |
Other expense | 982 | 752 | 2,531 | 2,350 |
Total noninterest expense | 4,003 | 3,312 | 11,181 | 10,110 |
Income before provision for income taxes | 1,581 | 1,568 | 5,012 | 5,308 |
Provision for income taxes | 428 | 459 | 1,237 | 1,718 |
Net income | $ 1,153 | $ 1,109 | $ 3,775 | $ 3,590 |
Basic earnings per share | $ 0.20 | $ 0.18 | $ 0.64 | $ 0.56 |
Diluted earnings per share | 0.20 | 0.17 | 0.64 | 0.55 |
Cash dividends per share | $ 0.05 | $ 0.05 | $ 0.15 | $ 0.15 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,153 | $ 1,109 | $ 3,775 | $ 3,590 |
Other comprehensive (loss) income: | ||||
(Decrease) increase in net unrealized gains on investment securities | (1,606) | (497) | (5,516) | 376 |
Deferred tax benefit (expense) | 511 | 199 | 1,760 | (144) |
(Decrease) increase in net unrealized gains (losses) on investment securities, net of tax | (1,095) | (298) | (3,756) | 232 |
Reclassification adjustment for realized gains included in net income | (8) | (19) | (19) | (161) |
Tax effect | 3 | 8 | 6 | 64 |
Realized gains, net of tax | (5) | (11) | (13) | (97) |
Total other comprehensive (loss) income | (1,100) | (309) | (3,769) | 135 |
Comprehensive income | $ 53 | $ 800 | $ 6 | $ 3,725 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total |
Begining Balance, Amount at Dec. 31, 2016 | $ 42,484 | $ 40,822 | $ 544 | $ 83,850 |
Begining Balance, Shares at Dec. 31, 2016 | 6,661,726 | |||
Net income | 3,590 | 3,590 | ||
Other comprehensive income, net of tax | 135 | 135 | ||
Cash dividends ($0.15 per share) | (975) | (975) | ||
Net restricted stock award activity and related compensation expense, Amount | $ 282 | 282 | ||
Net restricted stock award activity and related compensation expense, Shares | 22,032 | |||
Stock options exercised, Amount | $ 351 | 351 | ||
Stock options exercised, Shares | 41,898 | |||
Stock option compensation expense, Amount | $ 28 | 28 | ||
Stock option compensation expense, Shares | 0 | |||
Retirement of common stock, Amount | $ (5,006) | (5,006) | ||
Retirement of common stock, Shares | (333,086) | |||
Ending Balance, Amount at Sep. 30, 2017 | $ 38,139 | 43,437 | 679 | 82,255 |
Ending Balance, Shares at Sep. 30, 2017 | 6,392,570 | |||
Begining Balance, Amount at Dec. 31, 2017 | $ 34,463 | 42,779 | (321) | 76,921 |
Begining Balance, Shares at Dec. 31, 2017 | 6,132,362 | |||
Net income | 3,775 | 3,775 | ||
Other comprehensive income, net of tax | (3,769) | (3,769) | ||
Cash dividends ($0.15 per share) | 895 | 895 | ||
Net restricted stock award activity and related compensation expense, Amount | $ 212 | |||
Net restricted stock award activity and related compensation expense, Shares | 17,859 | |||
Stock options exercised, Amount | $ 123 | 123 | ||
Stock options exercised, Shares | 13,359 | |||
Stock option compensation expense, Amount | $ 21 | 21 | ||
Retirement of common stock, Amount | $ (4,654) | (4,654) | ||
Retirement of common stock, Shares | (298,778) | |||
Ending Balance, Amount at Sep. 30, 2018 | $ 30,165 | $ 45,660 | $ (4,090) | $ 71,735 |
Ending Balance, Shares at Sep. 30, 2018 | 5,864,802 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 3,775 | $ 3,590 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan and lease losses | 50 | 300 |
(Decrease) increase in deferred loan origination fees, net | (53) | 5 |
Depreciation and amortization | 201 | 255 |
Gain on sale, call, and impairment of investment securities, net | (19) | (161) |
Amortization of investment security premiums and discounts, net | 1,969 | 2,447 |
Increase in cash surrender values of life insurance policies | (228) | (238) |
Stock based compensation expense | 234 | 310 |
Gain on sale of other real estate owned | 0 | (8) |
Decrease (increase) in accrued interest receivable | 163 | (581) |
Decrease in accrued interest payable and other | (182) | (347) |
Net cash provided by operating activities | 5,910 | 5,572 |
Cash flows from investing activities: | ||
Proceeds from the sale of available-for-sale investment securities | 24,753 | 31,288 |
Proceeds from matured available-for-sale investment securities | 0 | 1,930 |
Proceeds from called available-for-sale investment securities | 1,499 | 145 |
Purchases of available-for-sale investment securities | (81,850) | (63,061) |
Proceeds from principal repayments for available-for-sale investment securities | 33,196 | 31,768 |
Proceeds from principal repayments for held-to-maturity investment securities | 67 | 79 |
Net increase in interest-bearing deposits in banks | 0 | (249) |
Net (increase) decrease in loans | (2,956) | 1,543 |
Proceed from sale of loans | 1,349 | 0 |
Proceeds from sale of other real estate | 0 | 395 |
Net increase in FHLB stock | 0 | (153) |
Purchases of equipment | (115) | (119) |
Net cash (used in) provided by investing activities | (24,057) | 3,566 |
Cash flows from financing activities: | ||
Net increase in demand, interest-bearing and | 22,420 | 8,825 |
Net decrease in time deposits | (2,680) | (2,689) |
Net increase (decrease) in short-term borrowings | 3,000 | (1,500) |
Net (decrease) increase in long-term borrowings | (3,000) | 1,500 |
Proceeds from stock option exercise | 123 | 351 |
Cash dividends paid | (895) | (975) |
Cash paid to repurchase common stock | (4,654) | (5,006) |
Net cash provided by financing activities | 14,314 | 506 |
(Decrease) increase in cash and cash equivalents | (3,833) | 9,644 |
Cash and cash equivalents at beginning of year | 38,467 | 27,589 |
Cash and cash equivalents at end of period | $ 34,634 | $ 37,233 |
1. CONSOLIDATED FINANCIAL STATE
1. CONSOLIDATED FINANCIAL STATEMENTS | 9 Months Ended |
Sep. 30, 2018 | |
CONSOLIDATED FINANCIAL STATEMENTS | |
CONSOLIDATED FINANCIAL STATEMENTS | In the opinion of management, the unaudited consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the consolidated financial position of American River Bankshares (the “Company”) at September 30, 2018 and December 31, 2017, the results of its operations and statement of comprehensive income for the three-month and nine-month periods ended September 30, 2018 and 2017, its cash flows for the nine-month periods ended September 30, 2018 and 2017 and its statement of changes in shareholders’ equity for the nine months ended September 30, 2018 and 2017 in conformity with accounting principles generally accepted in the United States of America. Certain disclosures normally presented in the notes to the annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted. The Company believes that the disclosures are adequate to make the information not misleading. These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2017. The results of operations for the three-month and nine-month periods ended September 30, 2018 may not necessarily be indicative of the operating results for the full year. In preparing such financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ significantly from those estimates. Management has determined that since all of the banking products and services offered by the Company are available in each branch office of American River Bank, all branch offices are located within the same economic environment and management does not allocate resources based on the performance of different lending or transaction activities, it is appropriate to aggregate all of the branch offices and report them as a single operating segment. No client accounts for more than ten percent (10%) of revenues for the Company or American River Bank. |
2. STOCK-BASED COMPENSATION
2. STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2018 | |
STOCK-BASED COMPENSATION | |
STOCK-BASED COMPENSATION | Equity Plans On March 17, 2010, the Board of Directors adopted the 2010 Equity Incentive Plan (the “2010 Plan”). The 2010 Plan was approved by the Company’s shareholders on May 20, 2010. In 2000, the Board of Directors adopted and the Company’s shareholders approved a stock option plan (the “2000 Plan”), under which 18,041 options remain outstanding at September 30, 2018. At September 30, 2018, under the 2010 Plan, there were 31,008 stock options and 41,457 restricted shares outstanding and the total number of authorized shares that remain available for issuance was 1,290,590. The 2010 Plan provides for the following types of stock-based awards: incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted performance stock, unrestricted Company stock, and performance units. Awards under the 2000 Plan were either incentive stock options or nonqualified stock options. Under the 2010 Plan, the awards may be granted to employees and directors under incentive and nonqualified option agreements, restricted stock agreements, and other awards agreements. The unvested restricted stock under the 2010 Plan have dividend and voting rights. The 2010 Plan and the 2000 Plan (collectively the “Plans”) require that the option price may not be less than the fair market value of the stock at the date the option is awarded. The option awards under the Plans expire on dates determined by the Board of Directors, but not later than ten years from the date of award. The vesting period is generally five years; however, the vesting period can be modified at the discretion of the Company’s Board of Directors. Outstanding option awards under the Plans are exercisable until their expiration, however, no new options may be awarded under the 2000 Plan. New shares are issued upon exercise of an option. The award date fair value of awards is determined by the market price of the Company’s common stock on the date of award and is recognized ratably as compensation expense or director expense over the vesting periods. The shares of common stock awarded pursuant to such agreements vest in increments over one to five years from the date of award. The shares awarded to employees and directors under the restricted stock agreements vest on the applicable vesting dates only to the extent the recipient of the shares is then an employee or a director of the Company or one of its subsidiaries, and each recipient will forfeit all of the shares that have not vested on the date his or her employment or service is terminated. Equity Compensation For the three-month periods ended September 30, 2018 and 2017, the compensation cost recognized for equity compensation was $83,000 and $109,000, respectively and the recognized tax benefit for equity compensation expense was $21,000 and $40,000, respectively, for the same three-month periods ended. For the nine-month periods ended September 30, 2018 and 2017, the compensation cost recognized for equity compensation was $233,000 and $310,000, respectively and the recognized tax benefit for equity compensation expense was $57,000 and $113,000, respectively, for the same nine-month periods. At September 30, 2018, the total unrecognized pre-tax compensation cost related to nonvested stock option awards not yet recorded was $29,000. This amount will be recognized over the next 1.8 years and the weighted average period of recognizing these costs is expected to be 1.4 years. At September 30, 2018, the total compensation cost related to restricted stock awards not yet recorded was $444,000. This amount will be recognized over the next 4.7 years and the weighted average period of recognizing these costs is expected to be 1.4 years. Equity Plans Activity Stock Options There were no stock options awarded during the three-month and nine-month periods ended September 30, 2018 or September 30, 2017. A summary of option activity under the Plans as of September 30, 2018 and changes during the period then ended is presented below: Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value ($000) Outstanding at January 1, 2018 97,543 $ 11.26 3.1 years $ 419 Awarded — — — — Exercised (13,359 ) 9.23 — — Expired, forfeited or cancelled (35,135 ) 15.67 — — Outstanding at September 30, 2018 49,049 $ 8.65 3.6 years $ 327 Vested at September 30, 2018 41,913 $ 8.54 3.2 years $ 284 Non-vested at September 30, 2018 7,136 $ 9.29 6.2 years $ 43 Restricted Stock There were no shares of restricted stock awarded during the three-month periods ended September 30, 2018 and 2017. There were 22,514 and 24,982 shares of restricted stock awarded during the nine-month periods ended September 30, 2018 and 2017, respectively. There were no restricted share awards that were fully vested during the three-month periods ended September 30, 2018 and 2017. There were 25,455 restricted share awards that were fully vested during the nine-month period ended September 30, 2018 and 14,382 restricted share awards that were fully vested during the nine-month period ended September 30, 2017. There were zero and 4,655 restricted share awards forfeited during the three-month and nine-month periods ended September 30, 2018, respectively. There were zero and 2,950 restricted share awards forfeited during the three-month and nine-month periods ended September 30, 2017, respectively. The intrinsic value of nonvested restricted shares at September 30, 2018 was $635,000. Restricted Stock Shares Weighted Average Award Date Fair Value Nonvested at January 1, 2018 49,053 $ 12.27 Awarded 22,514 15.44 Less: Vested (25,455 ) 10.84 Less: Expired, forfeited or cancelled (4,655 ) 13.69 Nonvested at September 30, 2018 41,457 $ 10.61 Other Equity Awards There were no stock appreciation rights, restricted performance stock, unrestricted Company stock, or performance units awarded during the three-month or nine-month month periods ended September 30, 2018 or 2017 or outstanding at September 30, 2018 or December 31, 2017. The intrinsic value used for stock options and restricted stock awards was derived from the market price of the Company’s common stock of $15.32 as of September 30, 2018. |
3. COMMITMENTS AND CONTINGENCIE
3. COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2018 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | In the normal course of business there are outstanding various commitments to extend credit which are not reflected in the financial statements, including loan commitments of approximately $30,266,000 and standby letters of credit of approximately $121,000 at September 30, 2018 and loan commitments of approximately $10,923,000 and standby letters of credit of approximately $121,000 at December 31, 2017. Such commitments relate primarily to real estate construction loans, revolving lines of credit and other commercial loans. However, all such commitments will not necessarily culminate in actual extensions of credit by the Company during 2018 as some of these are expected to expire without being fully drawn upon. Standby letters of credit are commitments issued to guarantee the performance or financial obligation of a client to a third party. These guarantees are issued primarily relating to purchases of inventory, insurance programs, performance obligations to government agencies, or as security for real estate rents by commercial clients and are typically short-term in nature. Credit risk is similar to that involved in extending loan commitments to clients and accordingly, evaluation and collateral requirements similar to those for loan commitments are used. The majority of all such commitments are collateralized. The fair value of the liability related to these standby letters of credit, which represents the fees received for issuing the guarantees, was not significant at September 30, 2018 or December 31, 2017. |
4. EARNINGS PER SHARE COMPUTATI
4. EARNINGS PER SHARE COMPUTATION | 9 Months Ended |
Sep. 30, 2018 | |
EARNINGS PER SHARE COMPUTATION | |
EARNINGS PER SHARE COMPUTATION | Basic earnings per share is computed by dividing net income by the weighted average common shares outstanding for the period (5,823,345 and 5,886,977 shares for the three-month and nine-month periods ended September 30, 2018, and 6,299,914 and 6,402,647 shares for the three-month and nine-month periods ended September 30, 2017). Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock, such as stock options or restricted stock, result in the issuance of common stock. Diluted earnings per share is computed by dividing net income by the weighted average common shares outstanding for the period plus the dilutive effect of stock based awards. There were 41,482 and 38,700, respectively, dilutive shares for the three-month and nine-month periods ended September 30, 2018 and 66,118 and 78,922, respectively, dilutive shares for the three-month and nine-month periods ended September 30, 2017. For the three-month periods ended September 30, 2018 and 2017, there were zero and 32,448 stock options, respectively, that were excluded from the calculation as they were considered antidilutive. For the nine-month periods ended September 30, 2018 and 2017, there were zero and 32,448 stock options, respectively, that were excluded from the calculation as they were considered antidilutive. Earnings per share is retroactively adjusted for stock dividends and stock splits, if applicable, for all periods presented. |
5. INVESTMENT SECURITIES
5. INVESTMENT SECURITIES | 9 Months Ended |
Sep. 30, 2018 | |
INVESTMENTS SECURITIES (Tables) | |
INVESTMENT SECURITIES | The amortized cost and estimated fair values of Available-for-Sale and Held-to-Maturity investment securities at September 30, 2018 and December 31, 2017 consisted of the following (dollars in thousands): Available-for-Sale September 30, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Debt securities: U.S. Government Agencies and Sponsored Entities $ 256,018 $ 360 $ (6,088 ) $ 250,290 Obligations of states and political subdivisions 15,791 120 (370 ) 15,541 Corporate bonds 6,492 51 (68 ) 6,475 U.S. Treasury securities 4,969 — (6 ) 4,963 $ 283,270 $ 531 $ (6,532 ) $ 277,269 December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Debt securities: U.S. Government Agencies and Sponsored Entities $ 233,956 $ 1,184 $ (2,271 ) $ 232,869 Obligations of states and political subdivisions 22,281 528 (94 ) 22,715 Corporate bonds 6,490 160 (24 ) 6,626 Equity securities: Corporate stock 51 61 — 112 $ 262,778 $ 1,933 $ (2,389 ) $ 262,322 Net unrealized losses on available-for-sale investment securities totaling $6,001,000 were recorded, net of $1,911,000 in tax benefits, as accumulated other comprehensive losses within shareholders’ equity at September 30, 2018. Proceeds and gross realized gains from the sale and call of available-for-sale investment securities totaled $10,310,000 and $8,000, respectively, for the three-month period ended September 30, 2018 and for the nine-month period ended September 30, 2018, proceeds and gross realized gains from the sale and call of available-for-sale investment securities totaled $26,252,000 and $19,000, respectively. There were no transfers of available-for-sale investment securities for the three-month and nine-month periods ended September 30, 2018. Net unrealized losses on available-for-sale investment securities totaling $456,000 were recorded, net of $135,000 in tax benefits, as accumulated other comprehensive income within shareholders’ equity at December 31, 2017. Proceeds and gross realized gains from the sale and call of available-for-sale investment securities totaled $22,730,000 and $19,000, respectively, for the three-month period ended September 30, 2017 and for the nine-month period ended September 30, 2017, proceeds and gross realized gains from the sale and call of available-for-sale investment securities totaled $31,433,000 and $161,000, respectively. There were no transfers of available-for-sale investment securities for the three-month and nine-month periods ended September 30, 2017. Held-to-Maturity September 30, 2018 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Debt securities: U.S. Government Agencies and Sponsored Entities $ 311 $ 17 $ — $ 328 December 31, 2017 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Debt securities: U.S. Government Agencies and Sponsored Entities $ 378 $ 26 $ — $ 404 There were no sales or transfers of held-to-maturity investment securities for the periods ended September 30, 2018 and September 30, 2017. Investment securities with unrealized losses at September 30, 2018 and December 31, 2017 are summarized and classified according to the duration of the loss period as follows (dollars in thousands): September 30, 2018 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-Sale Debt securities: U.S. Government Agencies and Sponsored Entities $ 127,137 $ (2,321 ) $ 100,217 $ (3,767 ) $ 227,354 $ (6,088 ) Obligations of states and political subdivisions 5,554 (98 ) 5,518 (272 ) 11,072 (370 ) Corporate bonds 498 (2 ) 1,926 (66 ) 2,424 (68 ) U.S. Treasury securities 4,963 (6 ) — — 4,963 (6 ) $ 138,152 $ (2,427 ) $ 107,661 $ (4,105 ) $ 245,813 $ (6,532 ) December 31, 2017 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-Sale Debt securities: US Government Agencies and Sponsored Entities $ 119,455 $ (1,148 ) $ 49,258 $ (1,123 ) $ 168,713 $ (2,271 ) Obligations of states and political subdivisions 1,130 (9 ) 4,654 (85 ) 5,784 (94 ) Corporate bonds 1,967 (24 ) — — 1,967 (24 ) $ 122,552 $ (1,181 ) $ 53,912 $ (1,208 ) $ 176,464 $ (2,389 ) There were no held-to-maturity investment securities with unrealized losses as of September 30, 2018 or December 31, 2017. At September 30, 2018, the Company held 218 securities of which 79 were in a loss position for less than twelve months and 71 were in a loss position for twelve months or more. Of the 79 securities in a loss position for less than twelve months, 70 were U.S. Government Agencies and Sponsored Entities securities, six were obligations of states or political subdivisions, two were US treasuries, and one was a corporate bond and of the 71 securities that were in a loss position for greater than twelve months, 65 were U.S. Government Agencies and Sponsored Entities securities, five were obligations of states or political subdivisions, and one was a corporate bond. At December 31, 2017, the Company held 217 securities of which 64 were in a loss position for less than twelve months and 35 were in a loss position for twelve months or more. Of the 35 securities in a loss position for greater than twelve months at December 31, 2017, four were municipal securities and 31 were US Government Agencies and Sponsored Agencies securities. The unrealized loss on the Company’s investment securities is primarily driven by interest rates. Because the decline in market value is attributable to a change in interest rates and not credit quality, and because the Company has the ability and intent to hold these investments until recovery of fair value, which may be until maturity, management does not consider these investments to be other-than-temporarily impaired. The amortized cost and estimated fair values of investment securities at September 30, 2018 by contractual maturity are shown below (dollars in thousands). Available-for-Sale Held-to-Maturity Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Within one year $ 4,969 $ 4,963 After one year through five years 5,145 5,109 After five years through ten years 12,980 12,818 After ten years 4,158 4,089 27,252 26,979 Investment securities not due at a single maturity date: US Government Agencies and Sponsored Entities 256,018 250,290 $ 311 $ 328 $ 283,270 $ 277,269 $ 311 $ 328 Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties. |
6. IMPAIRED AND NONPERFORMING L
6. IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED | 9 Months Ended |
Sep. 30, 2018 | |
IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED | |
IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED | At September 30, 2018 and December 31, 2017, the recorded investment in nonperforming loans and leases was approximately $376,000 and $1,892,000, respectively. Nonperforming loans and leases include all such loans and leases that are either placed on nonaccrual status or are 90 days past due as to principal or interest but still accrue interest because such loans are well-secured and in the process of collection. The Company considers a loan to be impaired when, based on current information and events, it is probable that it will be unable to collect all amounts due (principal and interest) according to the contractual terms of the original loan agreement. At September 30, 2018, the recorded investment in loans and leases that were considered to be impaired totaled $9,261,000, which includes $346,000 in nonaccrual loans and leases and $8,915,000 in performing loans and leases. Of the total impaired loans of $9,261,000, loans totaling $6,348,000 were deemed to require no specific reserve and loans totaling $2,913,000 were deemed to require a related valuation allowance of $181,000. At December 31, 2017, the recorded investment in loans and leases that were considered to be impaired totaled $13,757,000, which includes $1,892,000 in nonaccrual loans and leases and $11,865,000 in performing loans and leases. Of the total impaired loans of $13,757,000, loans totaling $7,601,000 were deemed to require no specific reserve and loans totaling $6,156,000 were deemed to require a related valuation allowance of $355,000. At September 30, 2018 and December 31, 2017, the recorded investment in other real estate owned (“OREO”) was $961,000. At September 30, 2018 the Company did not own any residential OREO properties nor were there any residential properties in the process of foreclosure. During the first nine months of 2018, the Company did not add any new or sell any of the OREO properties, nor did we decrease the book value on any of the properties. The September 30, 2018 OREO balance of $961,000 consisted of one parcel of land zoned for commercial use. Nonperforming assets at September 30, 2018 and December 31, 2017 are summarized as follows: (dollars in thousands) September 30, 2018 December 31, 2017 Nonaccrual loans and leases that are current to terms (less than 30 days past due) $ 30 $ 1,603 Nonaccrual loans and leases that are past due 346 289 Loans and leases past due 90 days and accruing interest — — Other real estate owned 961 961 Total nonperforming assets $ 1,337 $ 2,853 Nonperforming loans and leases to total loans and leases 0.12 % 0.60 % Total nonperforming assets to total assets 0.20 % 0.44 % Impaired loans and leases as of and for the periods ended September 30, 2018 and December 31, 2017 are summarized as follows: (dollars in thousands) As of September 30, 2018 As of December 31, 2017 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Commercial $ — $ — $ — $ 1,598 $ 2,671 $ — Real estate-commercial 5,955 6,189 — 5,674 5,907 — Real estate-residential 325 412 — 329 416 — Consumer 68 68 — — — — Subtotal $ 6,348 $ 6,669 $ — $ 7,601 $ 8,994 $ — With an allowance recorded: Real estate-commercial $ 2,181 $ 2,262 $ 118 $ 4,396 $ 4,483 $ 261 Real estate-multi-family — — — 474 474 21 Real estate-residential 732 732 63 1,286 1,286 73 Subtotal $ 2,913 $ 2,994 $ 181 $ 6,156 $ 6,243 $ 355 Total: Commercial $ — $ — $ — $ 1,598 $ 2,671 $ — Real estate-commercial 8,136 8,451 118 10,070 10,390 261 Real estate-multi-family — — — 474 474 21 Real estate-residential 1,057 1,144 63 1,615 1,702 73 Consumer 68 68 — — — — $ 9,261 $ 9,663 $ 181 $ 13,757 $ 15,237 $ 355 The following table presents the average balance related to impaired loans and leases for the periods indicated (dollars in thousands): Average Recorded Investments for the three months ended Average Recorded Investments for the nine months ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Commercial $ — $ 2,369 $ — $ 2,391 Real estate-commercial 6,289 13,139 6,010 13,220 Real estate-multi-family — 477 — 479 Real estate-residential 326 1,973 327 2,003 Consumer 68 — 69 — Total $ 6,683 $ 17,958 $ 6,406 $ 18,093 The following table presents the interest income recognized on impaired loans and leases for the periods indicated (dollars in thousands): Interest Income Recognized for the three months ended Interest Income Recognized for the nine months ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Commercial $ — $ 115 $ — $ 114 Real estate-commercial 85 320 243 503 Real estate-multi-family — 17 — 25 Real estate-residential 5 39 14 76 Consumer 1 2 2 2 Total $ 91 $ 493 $ 259 $ 720 |
7. TROUBLED DEBT RESTRUCTURINGS
7. TROUBLED DEBT RESTRUCTURINGS | 9 Months Ended |
Sep. 30, 2018 | |
TROUBLED DEBT RESTRUCTURINGS | |
TROUBLED DEBT RESTRUCTURINGS | During the three and nine-month periods ended September 30, 2018, there was one $18,000 commercial loan that was modified as a troubled debt restructuring. The loan was a term out of a line of credit to an amortizing loan with a rate reduction. During the three and nine-month periods ended September 30, 2017, there was one loan that was modified as a troubled debt restructuring. The modification of the terms of the loan included a reduction of the stated interest rate for eighteen months according to a bankruptcy court-order as part of a debtor-in-possession financing agreement. The loan had a pre-modification and post-modification outstanding recorded investment of $2,692,000. After principal payments of $57,000 and charge-downs of $1,073,000, the June 30, 2018 balance was $1,562,000. Subsequent to modification the loan went into payment default. During the third quarter of 2018 the loan was written-down by an additional $213,000 and sold with no further loss. There were no payment defaults on troubled debt restructurings within 12 months following the modification for the three-month and nine-month periods ended September 30, 2018 and September 30, 2017, other than the modified loan that went into payment default mentioned above. At September 30, 2018 and December 31, 2017, there were no unfunded commitments on those loans considered troubled debt restructures. See also “Impaired Loans and Leases” in Item 2.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.5in"> </p>" id="sjs-B4"><p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the three and nine-month periods ended September 30, 2018, there was one $18,000 commercial loan that was modified as a troubled debt restructuring. The loan was a term out of a line of credit to an amortizing loan with a rate reduction. During the three and nine-month periods ended September 30, 2017, there was one loan that was modified as a troubled debt restructuring. The modification of the terms of the loan included a reduction of the stated interest rate for eighteen months according to a bankruptcy court-order as part of a debtor-in-possession financing agreement. The loan had a pre-modification and post-modification outstanding recorded investment of $2,692,000. After principal payments of $57,000 and charge-downs of $1,073,000, the June 30, 2018 balance was $1,562,000. Subsequent to modification the loan went into payment default. During the third quarter of 2018 the loan was written-down by an additional $213,000 and sold with no further loss. There were no payment defaults on troubled debt restructurings within 12 months following the modification for the three-month and nine-month periods ended September 30, 2018 and September 30, 2017, other than the modified loan that went into payment default mentioned above. At September 30, 2018 and December 31, 2017, there were no unfunded commitments on those loans considered troubled debt restructures. See also “Impaired Loans and Leases” in Item 2.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.5in"> </p> |
8. ALLOWANCE FOR LOAN AND LEASE
8. ALLOWANCE FOR LOAN AND LEASE LOSSES | 9 Months Ended |
Sep. 30, 2018 | |
Schedule of Troubled Debt Restructurings on Financing Receivables (Tables) | |
ALLOWANCE FOR LOAN AND LEASE LOSSES | The Company’s loan and lease portfolio allocated by management’s internal risk ratings as of September 30, 2018 and December 31, 2017 are summarized below: September 30, 2018 Credit Risk Profile by Internally Assigned Grade (dollars in thousands) Real Estate Commercial Commercial Multi-family Construction Residential Grade: Pass $ 24,389 $ 172,951 $ 61,458 $ 7,486 $ 15,393 Watch 107 16,202 3,854 — 1,304 Special mention — 1,247 — — — Substandard 30 277 — — — Total $ 24,526 $ 190,677 $ 65,312 $ 7,486 $ 16,697 Credit Risk Profile by Internally Assigned Grade Other Credit Exposure Leases Agriculture Consumer Total Grade: Pass $ 61 $ 4,591 $ 5,234 $ 291,563 Watch — — 148 21,615 Special mention — — 2 1,249 Substandard — — 68 375 Total $ 61 $ 4,591 $ 5,452 $ 314,802 December 31, 2017 Credit Risk Profile by Internally Assigned Grade (dollars in thousands) Real Estate Commercial Commercial Multi-family Construction Residential Grade: Pass $ 23,617 $ 164,815 $ 73,644 $ 5,863 $ 13,767 Watch 96 18,083 4,381 — 1,507 Special mention 66 2,265 — — 539 Substandard — 289 — — — Doubtful 1,598 — — — — Total $ 25,377 $ 185,452 $ 78,025 $ 5,863 $ 15,813 Credit Risk Profile by Internally Assigned Grade Other Credit Exposure Leases Agriculture Consumer Total Grade: Pass $ 205 $ 1,713 $ 713 $ 284,337 Watch — — 155 24,222 Special mention — — 70 2,940 Substandard — — 7 296 Doubtful — — — 1,598 Total $ 205 $ 1,713 $ 945 $ 313,393 The allocation of the Company’s allowance for loan and lease losses and by portfolio segment and by impairment methodology are summarized below: September 30, 2018 (dollars in thousands) Real Estate Other Commercial Commercial Multi-Family Construction Residential Leases Agriculture Consumer Unallocated Total Allowance for Loan and Lease Losses Beginning balance, January 1, 2018 $ 447 $ 2,174 $ 1,047 $ 269 $ 205 $ — $ 31 $ 14 $ 291 $ 4,478 Provision for loan losses 300 (208 ) (307 ) 89 35 (1 ) 64 80 (2 ) 50 Loans charged-off (213 ) — — — — — — — — (213 ) Recoveries 10 6 — — — 1 — — — 17 Ending balance, September 30, 2018 $ 544 $ 1,972 $ 740 $ 358 $ 240 $ — $ 95 $ 94 $ 289 $ 4,332 Ending balance: Individually evaluated for impairment $ — $ 118 $ — $ — $ 63 $ — $ — $ — $ — $ 181 Ending balance: Collectively evaluated for impairment $ 544 $ 1,854 $ 740 $ 358 $ 177 $ — $ 95 $ 94 $ 289 $ 4,151 Loans Ending balance $ 24,526 $ 190,677 $ 65,312 $ 7,486 $ 16,697 $ 61 $ 4,591 $ 5,452 $ — $ 314,802 Ending balance: Individually evaluated for impairment $ — $ 8,136 $ — $ — $ 1,057 $ — $ — $ 68 $ — $ 9,261 Ending balance: Collectively evaluated for impairment $ 24,526 $ 182,541 $ 65,312 $ 7,486 $ 15,640 $ 61 $ 4,591 $ 5,384 $ — $ 305,541 Allowance for Loan and Lease Losses Beginning balance, June 30, 2018 $ 669 $ 2,100 $ 839 $ 298 $ 239 $ — $ 49 $ 11 $ 287 $ 4,492 Provision for loan losses 87 (130 ) (99 ) 60 1 — 46 83 2 50 Loans charged off (213 ) — — — — — — — — (213 ) Recoveries 1 2 — — — — — — — 3 Ending balance, September 30, 2018 $ 544 $ 1,972 $ 740 $ 358 $ 240 $ — $ 95 $ 94 $ 289 $ 4,332 December 31, 2017 (dollars in thousands) Real Estate Other Commercial Commercial Multi-Family Construction Residential Leases Agriculture Consumer Unallocated Total Ending balance: Individually evaluated for impairment $ — $ 261 $ 21 $ — $ 73 $ — $ — $ — $ — $ 355 Ending balance: Collectively evaluated for impairment $ 447 $ 1,913 $ 1,026 $ 269 $ 132 $ — $ 31 $ 14 $ 291 $ 4,123 Loans Ending balance $ 25,377 $ 185,452 $ 78,025 $ 5,863 $ 15,813 $ 205 $ 1,713 $ 945 $ — $ 313,393 Ending balance: Individually evaluated for impairment $ 1,598 $ 10,070 $ 474 $ — $ 1,615 $ — $ — $ — $ — $ 13,757 Ending balance: Collectively evaluated for impairment $ 23,779 $ 175,382 $ 77,551 $ 5,863 $ 14,198 $ 205 $ 1,713 $ 945 $ — $ 299,636 September 30, 2017 (dollars in thousands) Real Estate Other Commercial Commercial Multi-Family Construction Residential Leases Agriculture Consumer Unallocated Total Allowance for Loan and Lease Losses Beginning balance, January 1, 2017 $ 855 $ 2,050 $ 851 $ 446 $ 253 $ 1 $ 64 $ 24 $ 278 $ 4,822 Provision for loan losses 240 (16 ) 147 34 (22 ) (40 ) (35 ) (11 ) 3 300 Loans charged-off (673 ) — — — — — — — — (673 ) Recoveries 5 54 — — — 39 — 4 — 102 Ending balance, September 30, 2017 $ 427 $ 2,088 $ 998 $ 480 $ 231 $ — $ 29 $ 17 $ 281 $ 4,551 Allowance for Loan and Lease Losses Beginning balance, June 30, 2017 $ 916 $ 2,091 $ 789 $ 457 $ 268 $ 1 $ 59 $ 19 $ 281 $ 4,881 Provision for loan losses 182 (4 ) 209 23 (37 ) (40 ) (30 ) (3 ) — 300 Loans charged off (673 ) — — — — — — — — (673 ) Recoveries 2 1 — — — 39 — 1 — 43 Ending balance, September 30, 2017 $ 427 $ 2,088 $ 998 $ 480 $ 231 $ — $ 29 $ 17 $ 281 $ 4,551 The Company’s aging analysis of the loan and lease portfolio at September 30, 2018 and December 31, 2017 are summarized below: September 30, 2018 Past Due (dollars in thousands) Past Due Greater Than 30-59 Days 60-89 Days Greater Than Total Past 90 Days and Past Due Past Due 90 Days Due Current Total Loans Accruing Nonaccrual Commercial: Commercial $ — $ — $ — $ — $ 24,526 $ 24,526 $ — $ 30 Real estate: Commercial 278 — — 278 190,399 190,677 — 278 Multi-family — — — — 65,312 65,312 — — Construction — — — — 7,486 7,486 — — Residential 3,273 499 — 3,772 12,925 16,697 — — Other: Leases — — — — 61 61 — — Agriculture — — — — 4,591 4,591 — — Consumer — — 68 68 5,384 5,452 — 68 Total $ 3,551 $ 499 $ 68 $ 4,118 $ 310,684 $ 314,802 $ — $ 376 December 31, 2017 Past Due (dollars in thousands) Past Due Greater Than 30-59 Days 60-89 Days Greater Than Total Past 90 Days and Past Due Past Due 90 Days Due Current Total Loans Accruing Nonaccrual Commercial: Commercial $ — $ — $ — $ — $ 25,377 $ 25,377 $ — $ 1,597 Real estate: Commercial — — 289 289 185,163 185,452 — 289 Multi-family — — — — 78,025 78,025 — — Construction — — — — 5,863 5,863 — — Residential 146 — — 146 15,667 15,813 — — Other: Leases — — — — 205 205 — — Agriculture — — — — 1,713 1,713 — — Consumer 1 — — 1 944 945 — 6 Total $ 147 $ — $ 289 $ 436 $ 312,957 $ 313,393 $ — $ 1,892 |
9. BORROWING ARRANGEMENTS
9. BORROWING ARRANGEMENTS | 9 Months Ended |
Sep. 30, 2018 | |
Borrowing Arrangements | |
BORROWING ARRANGEMENTS | At September 30, 2018, the Company had $17,000,000 of unsecured short-term borrowing arrangements with two of its correspondent banks. There were no advances under the borrowing arrangements as of September 30, 2018 or December 31, 2017. The Company has a line of credit available with the Federal Home Loan Bank of San Francisco (the “FHLB”) which is secured by pledged mortgage loans and investment securities. Borrowings may include overnight advances as well as loans with terms of up to thirty years. Advances (both short-term and long-term) totaling $15,500,000 were outstanding from the FHLB at September 30, 2018, bearing interest rates ranging from 1.18% to 3.04% and maturing between November 23, 2018 and July 20, 2023. Advances totaling $15,500,000 were outstanding from the FHLB at December 31, 2017, bearing interest rates ranging from 1.18% to 1.90% and maturing between July 20, 2018 and April 12, 2021. Remaining amounts available under the borrowing arrangement with the FHLB at September 30, 2018 and December 31, 2017 totaled $100,570,000 and $117,546,000, respectively. In addition, the Company has a secured borrowing agreement with the Federal Reserve Bank of San Francisco. The borrowing can be secured by pledging selected loans and investment securities. Borrowings generally are short-term including overnight advances as well as loans with terms up to ninety days. Amounts available under this borrowing arrangement at September 30, 2018 and December 31, 2017 were $8,435,000 and $9,085,000, respectively. There were no advances outstanding under this borrowing arrangement as of September 30, 2018 and December 31, 2017. |
10. INCOME TAXES
10. INCOME TAXES | 9 Months Ended |
Sep. 30, 2018 | |
INCOME TAXES | |
INCOME TAXES | The Company files its income taxes on a consolidated basis with its subsidiaries. The allocation of income tax expense (benefit) represents each entity’s proportionate share of the consolidated provision for (benefit from) income taxes. The Company accounts for income taxes using the balance sheet method, under which deferred tax assets and liabilities are recognized for the tax consequences of temporary differences between the reported amounts of assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. On the consolidated balance sheet, net deferred tax assets are included in accrued interest receivable and other assets. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above, if applicable, is reflected as a liability for unrecognized tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. The Company recognizes accrued interest and penalties related to unrecognized tax benefits, if applicable, as a component of interest expense in the consolidated statement of income. There have been no unrecognized tax benefits or accrued interest and penalties for the three-month and nine-month periods ended September 30, 2018 and 2017. |
11. FAIR VALUE MEASUREMENTS
11. FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2018 | |
Assets and liabilities measured at fair value on a recurring and non-recurring basis are presented in the following table | |
FAIR VALUE MEASUREMENTS | The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring and nonrecurring basis as of September 30, 2018 and December 31, 2017. They indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Fair values determined by Level 2 inputs utilize inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. In 2018, the Company adopted the provisions of Accounting Standard Update 2016-01 “ Recognition and Measurement of Financial Assets and Financial Liabilities Estimated fair values are disclosed for financial instruments for which it is practicable to estimate fair value. These estimates are made at a specific point in time based on relevant market data and information about the financial instruments. These estimates do not reflect any premium or discount that could result from offering the Company’s entire holdings of a particular financial instrument for sale at one time, nor do they attempt to estimate the value of anticipated future business related to the instruments. In addition, the tax ramifications related to the realization of unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of these estimates. The carrying amounts and estimated fair values of the Company’s financial instruments are as follows (dollars in thousands): Carrying Fair Value Measurements Using: September 30, 2018 Amount Level 1 Level 2 Level 3 Total Financial assets: Cash and due from banks $ 24,634 $ 24,634 $ — $ — $ 24,634 Federal funds sold 10,000 10,000 — — 10,000 Interest-bearing deposits in banks 1,746 — 1,746 — 1,746 Available-for-sale securities 277,269 4,963 273,306 — 277,269 Held-to-maturity securities 311 — 328 — 328 FHLB stock 3,932 N/A N/A N/A N/A Net loans and leases: 310,322 — — 306,226 306,226 Accrued interest receivable 1,919 — 983 936 1,919 Financial liabilities: Deposits: Noninterest-bearing $ 209,322 $ 209,322 $ — $ — $ 209,322 Savings 74,765 74,765 — — 74,765 Money market 150,050 150,050 — — 150,050 NOW accounts 64,682 64,682 — — 64,682 Time Deposits 77,001 — 76,687 — 76,687 Short-term borrowings 6,500 6,500 — — 6,500 Long-term borrowings 9,000 — 9,124 — 9,124 Accrued interest payable 69 7 62 — 69 Carrying Fair Value Measurements Using: December 31, 2017 Amount Level 1 Level 2 Level 3 Total Financial assets: Cash and due from banks $ 38,467 $ 38,467 $ — $ — $ 38,467 Interest-bearing deposits in banks 1,746 — 1,750 — 1,750 Available-for-sale securities 262,322 66 262,256 — 262,322 Held-to-maturity securities 378 — 404 — 404 FHLB stock 3,932 N/A N/A N/A N/A Net loans and leases: 308,713 — — 317,900 317,900 Accrued interest receivable 1,956 — 1,124 832 1,956 Financial liabilities: Deposits: Noninterest-bearing $ 215,528 $ 215,528 $ — $ — $ 215,528 Savings 66,130 66,130 — — 66,130 Money market 130,032 130,032 — — 130,032 Interest checking 64,709 64,709 — — 64,709 Time Deposits 79,681 — 79,614 — 79,614 Short-term borrowings 3,500 3,500 — — 3,500 Long-term borrowings 12.000 — 11,978 — 11,978 Accrued interest payable 65 4 61 — 65 Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the fair values presented. The following methods and assumptions were used by the Company to estimate the fair values of its financial instruments at December 31, 2017: Cash and due from banks Interest-bearing deposits in banks Investment securities FHLB stock Loans and leases Deposits Short-term and long-term borrowings Accrued interest receivable and payable Off-balance sheet instruments Assets and liabilities measured at fair value on a recurring and non-recurring basis along with any related gain or loss recognized in the income statement due to fair value changes are presented in the following table: Description Fair Value Measurements Using Total Gains (dollars in thousands) Fair Value Level 1 Level 2 Level 3 (Losses) September 30, 2018 Assets and liabilities measured on a recurring basis: Available-for-sale securities: US Government Agencies and Sponsored Entities $ 250,290 $ — $ 250,290 $ — $ — Obligations of states and political subdivisions 15,541 — 15,541 — — Corporate bonds 6,475 — 6,475 — — U.S. Treasury bonds 4,963 4,963 — — — Total recurring $ 277,269 $ 4,963 $ 272,306 $ — $ — Assets and liabilities measured on a nonrecurring basis: Impaired loans: Real estate: Commercial $ 5,131 $ — $ — $ 5,131 $ — Other real estate owned Land 961 — — 961 — Total nonrecurring $ 6,902 $ — $ — $ 6,902 $ — Description Fair Value Measurements Using Total Gains (dollars in thousands) Fair Value Level 1 Level 2 Level 3 (Losses) December 31, 2017 Assets and liabilities measured on a recurring basis: Available-for-sale securities: US Government Agencies and Sponsored Agencies $ 232,869 $ — $ 232,869 $ — $ — Corporate Debt securities 6,626 — 6,626 Obligations of states and political subdivisions 22,715 — 22,715 — — Corporate stock 112 66 46 — — Total recurring $ 262,322 $ 66 $ 262,256 $ — $ — Assets and liabilities measured on a nonrecurring basis: Impaired loans: Commercial $ 1,598 $ — $ — $ 1,598 $ (1,073 ) Real estate: Commercial 178 — — 178 — Residential 329 — — 329 — Other real estate owned Land 961 — — 961 — Total nonrecurring $ 3,066 $ — $ — $ 3,066 $ (1,073 ) There were no significant transfers between Levels 1 and 2 during the three-month and nine-month periods ended September 30, 2018 or the twelve months ended December 31, 2017. The following methods were used to estimate the fair value of each class of financial instrument above: Available-for-sale securities – Impaired loans Other real estate owned |
12. RECENTLY ISSUED ACCOUNTING
12. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2018 | |
Recently Issued Accounting Pronouncements | |
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | In May 2014, the Financial Accounting Standards Board (the “FASB”) and the International Accounting Standards Board (the “IASB”) jointly issued a comprehensive new revenue recognition standard that will supersede nearly all existing revenue recognition guidance under GAAP and International Financial Reporting Standards (“IFRS”). Previous revenue recognition guidance in GAAP consisted of broad revenue recognition concepts together with numerous revenue requirements for particular industries or transactions, which sometimes resulted in different accounting for economically similar transactions. In contrast, IFRS provided limited revenue recognition guidance and, consequently, could be difficult to apply to complex transactions. Accordingly, the FASB and the IASB initiated a joint project to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and IFRS that would: (1) remove inconsistencies and weaknesses in revenue requirements; (2) provide a more robust framework for addressing revenue issues; (3) improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets; (4) provide more useful information to users of financial statements through improved disclosure requirements; and (5) simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer. To meet those objectives, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, “ Revenue from Contracts with Customers. Revenue from Contracts with Customers - Deferral of the Effective Date Principal versus Agent Considerations (Reporting Revenue Gross versus Net), Identifying Performance Obligations and Licensing, Narrow-Scope Improvements and Practical Expedients, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. In January 2016, the FASB issued ASU No. 2016-01, “ Recognition and Measurement of Financial Assets and Financial Liabilities. In February 2016, the FASB issued ASU No. 2016-02, “ Leases. . In June 2016, the FASB issued ASU No. 2016-13, “ Measurement of Credit Losses on Financial Instruments. |
13. REVENUE FROM CONTRACTS WITH
13. REVENUE FROM CONTRACTS WITH CUSTOMERS | 9 Months Ended |
Sep. 30, 2018 | |
Revenue From Contracts With Customers | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | On January 1, 2018 the Company adopted ASC Topic 606, as revised under ASU’s 2014-09, 2014-08 and 2016-20, using the modified retrospective method as of January 1, 2018. Other income disclosures for periods beginning after January 1, 2018 are presented under revised ASC Topic 606, which have not materially changed from the prior year amounts. Consistent with Topic 606, noninterest income covered by this guidance is recognized as services are transferred to our customers in an amount that reflects the consideration we expect to be entitled to in exchange for those services. Deposit Service Charges — Deposit service charges primarily consist of fees earned from our treasury management services. These services include bill pay, ACH, positive pay, lockbox, remote deposit capture, online banking and cash vault, among others. Customers are given the option to pay for these services in cash or by offsetting the fees for these services against an earnings credit that is given for maintaining noninterest-bearing deposits. The Company’s performance obligations on its treasury services are satisfied either at the time of the transaction or over the course of a month. Most customers pay deposit charges on a monthly basis. Merchant and Bankcard Fees — The Company earns various types of network transaction fees from third party payment network providers which consist of (i) interchange fees earned from the payment network as a debit card issuer and (ii) ongoing merchant fees earned by the Company for referring our clients to the payment processing provider which allows our clients to accept credit cards as a form of payment. The Company is an issuer of debit cards only as it relates to Merchant and Bankcard fees. Interchange income, which is settled on a daily basis, is recognized as settlement occurs. Chargebacks have not historically been, nor are they expected to be significant to the overall fee revenue and will be recognized upon occurrence. Referral and merchant fees are recognized when the transaction occurs. |
2. STOCK-BASED COMPENSATION (Ta
2. STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
STOCK BASED COMPENSATION. (Tables) | |
Schedule of Share-based Compensation, Stock Options, Activity | Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value ($000) Outstanding at January 1, 2018 97,543 $ 11.26 3.1 years $ 419 Awarded — — — — Exercised (13,359 ) 9.23 — — Expired, forfeited or cancelled (35,135 ) 15.67 — — Outstanding at September 30, 2018 49,049 $ 8.65 3.6 years $ 327 Vested at September 30, 2018 41,913 $ 8.54 3.2 years $ 284 Non-vested at September 30, 2018 7,136 $ 9.29 6.2 years $ 43 |
Schedule of Nonvested Share Activity | Restricted Stock Shares Weighted Average Award Date Fair Value Nonvested at January 1, 2018 49,053 $ 12.27 Awarded 22,514 15.44 Less: Vested (25,455 ) 10.84 Less: Expired, forfeited or cancelled (4,655 ) 13.69 Nonvested at September 30, 2018 41,457 $ 10.61 |
5. INVESTMENT SECURITIES (Table
5. INVESTMENT SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
INVESTMENTS SECURITIES (Tables) | |
Available-for-sale Securities | Available-for-Sale September 30, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Debt securities: U.S. Government Agencies and Sponsored Entities $ 256,018 $ 360 $ (6,088 ) $ 250,290 Obligations of states and political subdivisions 15,791 120 (370 ) 15,541 Corporate bonds 6,492 51 (68 ) 6,475 U.S. Treasury securities 4,969 — (6 ) 4,963 $ 283,270 $ 531 $ (6,532 ) $ 277,269 December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Debt securities: U.S. Government Agencies and Sponsored Entities $ 233,956 $ 1,184 $ (2,271 ) $ 232,869 Obligations of states and political subdivisions 22,281 528 (94 ) 22,715 Corporate bonds 6,490 160 (24 ) 6,626 Equity securities: Corporate stock 51 61 — 112 $ 262,778 $ 1,933 $ (2,389 ) $ 262,322 |
Held-to-maturity Securities | Held-to-Maturity September 30, 2018 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Debt securities: U.S. Government Agencies and Sponsored Entities $ 311 $ 17 $ — $ 328 December 31, 2017 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Debt securities: U.S. Government Agencies and Sponsored Entities $ 378 $ 26 $ — $ 404 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | September 30, 2018 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-Sale Debt securities: U.S. Government Agencies and Sponsored Entities $ 127,137 $ (2,321 ) $ 100,217 $ (3,767 ) $ 227,354 $ (6,088 ) Obligations of states and political subdivisions 5,554 (98 ) 5,518 (272 ) 11,072 (370 ) Corporate bonds 498 (2 ) 1,926 (66 ) 2,424 (68 ) U.S. Treasury securities 4,963 (6 ) — — 4,963 (6 ) $ 138,152 $ (2,427 ) $ 107,661 $ (4,105 ) $ 245,813 $ (6,532 ) December 31, 2017 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-Sale Debt securities: US Government Agencies and Sponsored Entities $ 119,455 $ (1,148 ) $ 49,258 $ (1,123 ) $ 168,713 $ (2,271 ) Obligations of states and political subdivisions 1,130 (9 ) 4,654 (85 ) 5,784 (94 ) Corporate bonds 1,967 (24 ) — — 1,967 (24 ) $ 122,552 $ (1,181 ) $ 53,912 $ (1,208 ) $ 176,464 $ (2,389 ) |
Available-for-sale Securities, Debt Maturities, Basis of Allocation | <tr style="vertical-align: bottom"> <td style="padding-left: 8.65pt; text-align: center; text-indent: -8.65pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Available-for-Sale</font></td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Held-to-Maturity</font></td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; padding-left: 8.65pt; text-align: center; text-indent: -8.65pt"> </td> <td style="white-space: nowrap; padding-bottom: 1pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Amortized</font><br /> <font style="font-size: 8pt">Cost</font></td> <td style="white-space: nowrap; padding-bottom: 1pt"> </td> <td style="white-space: nowrap; padding-bottom: 1pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Estimated</font><br /> <font style="font-size: 8pt">Fair</font><br /> <font style="font-size: 8pt">Value</font></td> <td style="white-space: nowrap; padding-bottom: 1pt"> </td> <td style="white-space: nowrap; padding-bottom: 1pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Amortized</font><br /> <font style="font-size: 8pt">Cost</font></td> <td style="white-space: nowrap; padding-bottom: 1pt"> </td> <td style="white-space: nowrap; padding-bottom: 1pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Estimated</font><br /> <font style="font-size: 8pt">Fair</font><br /> <font style="font-size: 8pt">Value</font></td> <td style="white-space: nowrap; padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 8.65pt; text-align: center; text-indent: -8.65pt"> </td> <td> </td> <td colspan="2" style="text-align: center"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: center"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: center"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: center"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEECC"> <td style="width: 52%; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 8pt">Within one year</font></td> <td style="width: 2%"> </td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 8%; text-align: right"><font style="font-size: 8pt">4,969</font></td> <td style="width: 1%"> </td> <td style="width: 2%"> </td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 8%; text-align: right"><font style="font-size: 8pt">4,963</font></td> <td style="width: 1%"> </td> <td style="width: 2%"> </td> <td style="width: 1%"> </td> <td style="width: 8%; text-align: right"> </td> <td style="width: 1%"> </td> <td style="width: 2%"> </td> <td style="width: 1%"> </td> <td style="width: 8%; text-align: right"> </td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 8pt">After one year through five years</font></td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 8pt">5,145</font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 8pt">5,109</font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEECC"> <td style="padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 8pt">After five years through ten years</font></td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 8pt">12,980</font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 8pt">12,818</font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 8pt">After ten years</font></td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">4,158</font></td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">4,089</font></td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: right"> </td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: right"> </td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEECC"> <td style="padding-left: 8.65pt; text-indent: -8.65pt"> </td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 8pt">27,252</font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 8pt">26,979</font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 8pt">Investment securities not due at a single maturity date:</font></td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEECC"> <td style="padding-bottom: 1pt; padding-left: 17.3pt; text-indent: -8.65pt"><font style="font-size: 8pt">US Government Agencies and Sponsored Entities</font></td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">256,018</font></td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">250,290</font></td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">311</font></td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">328</font></td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 2.5pt; padding-left: 8.65pt; text-indent: -8.65pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt">283,270</font></td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt">277,269</font></td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt">311</font></td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt">328</font></td> <td style="padding-bottom: 2.5pt"> </td></tr> </table>" id="sjs-B7"><table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="padding-left: 8.65pt; text-align: center; text-indent: -8.65pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Available-for-Sale</font></td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Held-to-Maturity</font></td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; padding-left: 8.65pt; text-align: center; text-indent: -8.65pt"> </td> <td style="white-space: nowrap; padding-bottom: 1pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Amortized</font><br /> <font style="font-size: 8pt">Cost</font></td> <td style="white-space: nowrap; padding-bottom: 1pt"> </td> <td style="white-space: nowrap; padding-bottom: 1pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Estimated</font><br /> <font style="font-size: 8pt">Fair</font><br /> <font style="font-size: 8pt">Value</font></td> <td style="white-space: nowrap; padding-bottom: 1pt"> </td> <td style="white-space: nowrap; padding-bottom: 1pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Amortized</font><br /> <font style="font-size: 8pt">Cost</font></td> <td style="white-space: nowrap; padding-bottom: 1pt"> </td> <td style="white-space: nowrap; padding-bottom: 1pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Estimated</font><br /> <font style="font-size: 8pt">Fair</font><br /> <font style="font-size: 8pt">Value</font></td> <td style="white-space: nowrap; padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 8.65pt; text-align: center; text-indent: -8.65pt"> </td> <td> </td> <td colspan="2" style="text-align: center"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: center"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: center"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: center"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEECC"> <td style="width: 52%; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 8pt">Within one year</font></td> <td style="width: 2%"> </td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 8%; text-align: right"><font style="font-size: 8pt">4,969</font></td> <td style="width: 1%"> </td> <td style="width: 2%"> </td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 8%; text-align: right"><font style="font-size: 8pt">4,963</font></td> <td style="width: 1%"> </td> <td style="width: 2%"> </td> <td style="width: 1%"> </td> <td style="width: 8%; text-align: right"> </td> <td style="width: 1%"> </td> <td style="width: 2%"> </td> <td style="width: 1%"> </td> <td style="width: 8%; text-align: right"> </td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 8pt">After one year through five years</font></td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 8pt">5,145</font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 8pt">5,109</font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEECC"> <td style="padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 8pt">After five years through ten years</font></td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 8pt">12,980</font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 8pt">12,818</font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 8pt">After ten years</font></td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">4,158</font></td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">4,089</font></td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: right"> </td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: right"> </td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEECC"> <td style="padding-left: 8.65pt; text-indent: -8.65pt"> </td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 8pt">27,252</font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 8pt">26,979</font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 8pt">Investment securities not due at a single maturity date:</font></td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEECC"> <td style="padding-bottom: 1pt; padding-left: 17.3pt; text-indent: -8.65pt"><font style="font-size: 8pt">US Government Agencies and Sponsored Entities</font></td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">256,018</font></td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">250,290</font></td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">311</font></td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">328</font></td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 2.5pt; padding-left: 8.65pt; text-indent: -8.65pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt">283,270</font></td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt">277,269</font></td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt">311</font></td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt">328</font></td> <td style="padding-bottom: 2.5pt"> </td></tr> </table> |
6. IMPAIRED AND NONPERFORMING_2
6. IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Impaired And Nonperforming Loans And Leases And Other Real Estate Owned Tables | |
Schedule of Nonperforming loans and leases and other assets and OREO | (dollars in thousands) September 30, 2018 December 31, 2017 Nonaccrual loans and leases that are current to terms (less than 30 days past due) $ 30 $ 1,603 Nonaccrual loans and leases that are past due 346 289 Loans and leases past due 90 days and accruing interest — — Other real estate owned 961 961 Total nonperforming assets $ 1,337 $ 2,853 Nonperforming loans and leases to total loans and leases 0.12 % 0.60 % Total nonperforming assets to total assets 0.20 % 0.44 % |
Schedule of Impaired Financing Receivables | (dollars in thousands) As of September 30, 2018 As of December 31, 2017 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Commercial $ — $ — $ — $ 1,598 $ 2,671 $ — Real estate-commercial 5,955 6,189 — 5,674 5,907 — Real estate-residential 325 412 — 329 416 — Consumer 68 68 — — — — Subtotal $ 6,348 $ 6,669 $ — $ 7,601 $ 8,994 $ — With an allowance recorded: Real estate-commercial $ 2,181 $ 2,262 $ 118 $ 4,396 $ 4,483 $ 261 Real estate-multi-family — — — 474 474 21 Real estate-residential 732 732 63 1,286 1,286 73 Subtotal $ 2,913 $ 2,994 $ 181 $ 6,156 $ 6,243 $ 355 Total: Commercial $ — $ — $ — $ 1,598 $ 2,671 $ — Real estate-commercial 8,136 8,451 118 10,070 10,390 261 Real estate-multi-family — — — 474 474 21 Real estate-residential 1,057 1,144 63 1,615 1,702 73 Consumer 68 68 — — — — $ 9,261 $ 9,663 $ 181 $ 13,757 $ 15,237 $ 355 |
Schedule of Average Balance Recorded to Imapired Loans and Leases | Average Recorded Investments for the three months ended Average Recorded Investments for the nine months ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Commercial $ — $ 2,369 $ — $ 2,391 Real estate-commercial 6,289 13,139 6,010 13,220 Real estate-multi-family — 477 — 479 Real estate-residential 326 1,973 327 2,003 Consumer 68 — 69 — Total $ 6,683 $ 17,958 $ 6,406 $ 18,093 |
Schedule of interest income recognized on impaired loans and leases | Interest Income Recognized for the three months ended Interest Income Recognized for the nine months ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Commercial $ — $ 115 $ — $ 114 Real estate-commercial 85 320 243 503 Real estate-multi-family — 17 — 25 Real estate-residential 5 39 14 76 Consumer 1 2 2 2 Total $ 91 $ 493 $ 259 $ 720 |
8. ALLOWANCE FOR LOAN AND LEA_2
8. ALLOWANCE FOR LOAN AND LEASE LOSSES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Loans And Leases And Allowance For Loan And Lease Losses Tables | |
Schedule Of Recorded Investment Evaluated Based On Internal Risk Ratings | September 30, 2018 Credit Risk Profile by Internally Assigned Grade (dollars in thousands) Real Estate Commercial Commercial Multi-family Construction Residential Grade: Pass $ 24,389 $ 172,951 $ 61,458 $ 7,486 $ 15,393 Watch 107 16,202 3,854 — 1,304 Special mention — 1,247 — — — Substandard 30 277 — — — Total $ 24,526 $ 190,677 $ 65,312 $ 7,486 $ 16,697 Credit Risk Profile by Internally Assigned Grade Other Credit Exposure Leases Agriculture Consumer Total Grade: Pass $ 61 $ 4,591 $ 5,234 $ 291,563 Watch — — 148 21,615 Special mention — — 2 1,249 Substandard — — 68 375 Total $ 61 $ 4,591 $ 5,452 $ 314,802 December 31, 2017 Credit Risk Profile by Internally Assigned Grade (dollars in thousands) Real Estate Commercial Commercial Multi-family Construction Residential Grade: Pass $ 23,617 $ 164,815 $ 73,644 $ 5,863 $ 13,767 Watch 96 18,083 4,381 — 1,507 Special mention 66 2,265 — — 539 Substandard — 289 — — — Doubtful 1,598 — — — — Total $ 25,377 $ 185,452 $ 78,025 $ 5,863 $ 15,813 Credit Risk Profile by Internally Assigned Grade Other Credit Exposure Leases Agriculture Consumer Total Grade: Pass $ 205 $ 1,713 $ 713 $ 284,337 Watch — — 155 24,222 Special mention — — 70 2,940 Substandard — — 7 296 Doubtful — — — 1,598 Total $ 205 $ 1,713 $ 945 $ 313,393 |
Summary Of Analysis Of Allowance For Loan Losses | September 30, 2018 (dollars in thousands) Real Estate Other Commercial Commercial Multi-Family Construction Residential Leases Agriculture Consumer Unallocated Total Allowance for Loan and Lease Losses Beginning balance, January 1, 2018 $ 447 $ 2,174 $ 1,047 $ 269 $ 205 $ — $ 31 $ 14 $ 291 $ 4,478 Provision for loan losses 300 (208 ) (307 ) 89 35 (1 ) 64 80 (2 ) 50 Loans charged-off (213 ) — — — — — — — — (213 ) Recoveries 10 6 — — — 1 — — — 17 Ending balance, September 30, 2018 $ 544 $ 1,972 $ 740 $ 358 $ 240 $ — $ 95 $ 94 $ 289 $ 4,332 Ending balance: Individually evaluated for impairment $ — $ 118 $ — $ — $ 63 $ — $ — $ — $ — $ 181 Ending balance: Collectively evaluated for impairment $ 544 $ 1,854 $ 740 $ 358 $ 177 $ — $ 95 $ 94 $ 289 $ 4,151 Loans Ending balance $ 24,526 $ 190,677 $ 65,312 $ 7,486 $ 16,697 $ 61 $ 4,591 $ 5,452 $ — $ 314,802 Ending balance: Individually evaluated for impairment $ — $ 8,136 $ — $ — $ 1,057 $ — $ — $ 68 $ — $ 9,261 Ending balance: Collectively evaluated for impairment $ 24,526 $ 182,541 $ 65,312 $ 7,486 $ 15,640 $ 61 $ 4,591 $ 5,384 $ — $ 305,541 Allowance for Loan and Lease Losses Beginning balance, June 30, 2018 $ 669 $ 2,100 $ 839 $ 298 $ 239 $ — $ 49 $ 11 $ 287 $ 4,492 Provision for loan losses 87 (130 ) (99 ) 60 1 — 46 83 2 50 Loans charged off (213 ) — — — — — — — — (213 ) Recoveries 1 2 — — — — — — — 3 Ending balance, September 30, 2018 $ 544 $ 1,972 $ 740 $ 358 $ 240 $ — $ 95 $ 94 $ 289 $ 4,332 December 31, 2017 (dollars in thousands) Real Estate Other Commercial Commercial Multi-Family Construction Residential Leases Agriculture Consumer Unallocated Total Ending balance: Individually evaluated for impairment $ — $ 261 $ 21 $ — $ 73 $ — $ — $ — $ — $ 355 Ending balance: Collectively evaluated for impairment $ 447 $ 1,913 $ 1,026 $ 269 $ 132 $ — $ 31 $ 14 $ 291 $ 4,123 Loans Ending balance $ 25,377 $ 185,452 $ 78,025 $ 5,863 $ 15,813 $ 205 $ 1,713 $ 945 $ — $ 313,393 Ending balance: Individually evaluated for impairment $ 1,598 $ 10,070 $ 474 $ — $ 1,615 $ — $ — $ — $ — $ 13,757 Ending balance: Collectively evaluated for impairment $ 23,779 $ 175,382 $ 77,551 $ 5,863 $ 14,198 $ 205 $ 1,713 $ 945 $ — $ 299,636 September 30, 2017 (dollars in thousands) Real Estate Other Commercial Commercial Multi-Family Construction Residential Leases Agriculture Consumer Unallocated Total Allowance for Loan and Lease Losses Beginning balance, January 1, 2017 $ 855 $ 2,050 $ 851 $ 446 $ 253 $ 1 $ 64 $ 24 $ 278 $ 4,822 Provision for loan losses 240 (16 ) 147 34 (22 ) (40 ) (35 ) (11 ) 3 300 Loans charged-off (673 ) — — — — — — — — (673 ) Recoveries 5 54 — — — 39 — 4 — 102 Ending balance, September 30, 2017 $ 427 $ 2,088 $ 998 $ 480 $ 231 $ — $ 29 $ 17 $ 281 $ 4,551 Allowance for Loan and Lease Losses Beginning balance, June 30, 2017 $ 916 $ 2,091 $ 789 $ 457 $ 268 $ 1 $ 59 $ 19 $ 281 $ 4,881 Provision for loan losses 182 (4 ) 209 23 (37 ) (40 ) (30 ) (3 ) — 300 Loans charged off (673 ) — — — — — — — — (673 ) Recoveries 2 1 — — — 39 — 1 — 43 Ending balance, September 30, 2017 $ 427 $ 2,088 $ 998 $ 480 $ 231 $ — $ 29 $ 17 $ 281 $ 4,551 |
Summary Of Activity in Allowance For Loan Losses By Loan Class | September 30, 2018 Past Due (dollars in thousands) Past Due Greater Than 30-59 Days 60-89 Days Greater Than Total Past 90 Days and Past Due Past Due 90 Days Due Current Total Loans Accruing Nonaccrual Commercial: Commercial $ — $ — $ — $ — $ 24,526 $ 24,526 $ — $ 30 Real estate: Commercial 278 — — 278 190,399 190,677 — 278 Multi-family — — — — 65,312 65,312 — — Construction — — — — 7,486 7,486 — — Residential 3,273 499 — 3,772 12,925 16,697 — — Other: Leases — — — — 61 61 — — Agriculture — — — — 4,591 4,591 — — Consumer — — 68 68 5,384 5,452 — 68 Total $ 3,551 $ 499 $ 68 $ 4,118 $ 310,684 $ 314,802 $ — $ 376 December 31, 2017 Past Due (dollars in thousands) Past Due Greater Than 30-59 Days 60-89 Days Greater Than Total Past 90 Days and Past Due Past Due 90 Days Due Current Total Loans Accruing Nonaccrual Commercial: Commercial $ — $ — $ — $ — $ 25,377 $ 25,377 $ — $ 1,597 Real estate: Commercial — — 289 289 185,163 185,452 — 289 Multi-family — — — — 78,025 78,025 — — Construction — — — — 5,863 5,863 — — Residential 146 — — 146 15,667 15,813 — — Other: Leases — — — — 205 205 — — Agriculture — — — — 1,713 1,713 — — Consumer 1 — — 1 944 945 — 6 Total $ 147 $ — $ 289 $ 436 $ 312,957 $ 313,393 $ — $ 1,892 |
11. FAIR VALUE MEASUREMENTS (Ta
11. FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Assets and liabilities measured at fair value on a recurring and non-recurring basis are presented in the following table | |
Schedule of Assets and Associated Liabilities Accounted for as Secured Borrowings | Carrying Fair Value Measurements Using: September 30, 2018 Amount Level 1 Level 2 Level 3 Total Financial assets: Cash and due from banks $ 24,634 $ 24,634 $ — $ — $ 24,634 Federal funds sold 10,000 10,000 — — 10,000 Interest-bearing deposits in banks 1,746 — 1,746 — 1,746 Available-for-sale securities 277,269 4,963 273,306 — 277,269 Held-to-maturity securities 311 — 328 — 328 FHLB stock 3,932 N/A N/A N/A N/A Net loans and leases: 310,322 — — 306,226 306,226 Accrued interest receivable 1,919 — 983 936 1,919 Financial liabilities: Deposits: Noninterest-bearing $ 209,322 $ 209,322 $ — $ — $ 209,322 Savings 74,765 74,765 — — 74,765 Money market 150,050 150,050 — — 150,050 NOW accounts 64,682 64,682 — — 64,682 Time Deposits 77,001 — 76,687 — 76,687 Short-term borrowings 6,500 6,500 — — 6,500 Long-term borrowings 9,000 — 9,124 — 9,124 Accrued interest payable 69 7 62 — 69 Carrying Fair Value Measurements Using: December 31, 2017 Amount Level 1 Level 2 Level 3 Total Financial assets: Cash and due from banks $ 38,467 $ 38,467 $ — $ — $ 38,467 Interest-bearing deposits in banks 1,746 — 1,750 — 1,750 Available-for-sale securities 262,322 66 262,256 — 262,322 Held-to-maturity securities 378 — 404 — 404 FHLB stock 3,932 N/A N/A N/A N/A Net loans and leases: 308,713 — — 317,900 317,900 Accrued interest receivable 1,956 — 1,124 832 1,956 Financial liabilities: Deposits: Noninterest-bearing $ 215,528 $ 215,528 $ — $ — $ 215,528 Savings 66,130 66,130 — — 66,130 Money market 130,032 130,032 — — 130,032 Interest checking 64,709 64,709 — — 64,709 Time Deposits 79,681 — 79,614 — 79,614 Short-term borrowings 3,500 3,500 — — 3,500 Long-term borrowings 12.000 — 11,978 — 11,978 Accrued interest payable 65 4 61 — 65 |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques | Description Fair Value Measurements Using Total Gains (dollars in thousands) Fair Value Level 1 Level 2 Level 3 (Losses) September 30, 2018 Assets and liabilities measured on a recurring basis: Available-for-sale securities: US Government Agencies and Sponsored Entities $ 250,290 $ — $ 250,290 $ — $ — Obligations of states and political subdivisions 15,541 — 15,541 — — Corporate bonds 6,475 — 6,475 — — U.S. Treasury bonds 4,963 4,963 — — — Total recurring $ 277,269 $ 4,963 $ 272,306 $ — $ — Assets and liabilities measured on a nonrecurring basis: Impaired loans: Real estate: Commercial $ 5,131 $ — $ — $ 5,131 $ — Other real estate owned Land 961 — — 961 — Total nonrecurring $ 6,902 $ — $ — $ 6,902 $ — Description Fair Value Measurements Using Total Gains (dollars in thousands) Fair Value Level 1 Level 2 Level 3 (Losses) December 31, 2017 Assets and liabilities measured on a recurring basis: Available-for-sale securities: US Government Agencies and Sponsored Agencies $ 232,869 $ — $ 232,869 $ — $ — Corporate Debt securities 6,626 — 6,626 Obligations of states and political subdivisions 22,715 — 22,715 — — Corporate stock 112 66 46 — — Total recurring $ 262,322 $ 66 $ 262,256 $ — $ — Assets and liabilities measured on a nonrecurring basis: Impaired loans: Commercial $ 1,598 $ — $ — $ 1,598 $ (1,073 ) Real estate: Commercial 178 — — 178 — Residential 329 — — 329 — Other real estate owned Land 961 — — 961 — Total nonrecurring $ 3,066 $ — $ — $ 3,066 $ (1,073 ) |
2. STOCK-BASED COMPENSATION (De
2. STOCK-BASED COMPENSATION (Details) - Options Shares $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($)$ / sharesshares | |
Outstanding | shares | 97,543 |
Awarded | shares | 0 |
Exercised | shares | (13,359) |
Expired, forfeited or cancelled | shares | (35,135) |
Outstanding | shares | 31,008 |
Number of options vested | shares | 41,913 |
Nonvested, Shares | shares | 7,136 |
Weighted average exercise price, outstanding beginning | $ / shares | $ 11.26 |
Awarded | $ / shares | 0 |
Exercised | $ / shares | 9.23 |
Expired, forfeited or cancelled | $ / shares | 15.67 |
Weighted average exercise price, outstanding ending | $ / shares | 8.65 |
Weighted average exercise price of vested stock options (in dollars per share) | $ / shares | 8.54 |
Weighted average exercise price of nonvested stock options (in dollars per share) | $ / shares | $ 9.29 |
Weighted years to maturity outstanding beginning | 3 years 1 month 6 days |
Weighted years to maturity outstanding Ending | 3 years 7 months 6 days |
Weighted average remaining contractual term in years, vested | 3 years 2 months 12 days |
Weighted average remaining contractual term in years, non-vested | 6 years 2 months 12 days |
Aggregate Intrinsic Value, options outstanding, beginning | $ | $ 419 |
Aggregate Intrinsic Value, options outstanding, ending | $ | 327 |
Aggregate Intrinsic Value, options vested | $ | 284 |
Aggregate Intrinsic Value, options non-vested | $ | $ 43 |
2. STOCK-BASED COMPENSATION (_2
2. STOCK-BASED COMPENSATION (Details 1) - Restricted stock | 9 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Restricted Stock Nonvested beginning balance | shares | 49,053 |
Awarded | shares | 22,514 |
Less: Vested | shares | (25,455) |
Less: Expired, forfeited or cancelled | shares | (4,655) |
Restricted Stock Nonvested ending balance | shares | 41,457 |
Weighted Average Grant Date Fair Value Nonvested beginning balance | $ / shares | $ 12.27 |
Awarded | $ / shares | 15.44 |
Less: Vested | $ / shares | 10.84 |
Less: Expired, forfeited or cancelled | $ / shares | 13.69 |
Weighted Average Grant Date Fair Value Nonvested ending balance | $ / shares | $ 10.61 |
2. STOCK-BASED COMPENSATION (_3
2. STOCK-BASED COMPENSATION (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Authorized shares that remain available for issuance under the 2010 Plan | 1,290,590 | 1,290,590 | |||
Share based compensation | $ 83 | $ 109 | $ 234 | $ 310 | |
Tax benefit of equity compensation expense | $ 21 | $ 40 | |||
Intrinsic value used for stock options and restricted stock | $ 15.32 | $ 15.32 | |||
Restricted stock | |||||
Stock options outstanding under Equity Incentive Plan | 41,457 | 41,457 | |||
Compensation cost related to nonvested stock option awards not yet recorded | $ 444 | $ 444 | |||
Period for recognition | 4 years 8 months 12 days | ||||
Weighted average costs is expected period | 1 year 4 months 24 days | ||||
Options Shares | |||||
Stock options outstanding under Equity Incentive Plan | 31,008 | 31,008 | 97,543 | ||
Compensation cost related to nonvested stock option awards not yet recorded | $ 29 | $ 29 | |||
Period for recognition | 1 year 9 months 18 days | ||||
Weighted average costs is expected period | 1 year 4 months 24 days | ||||
2010 Plan | |||||
Stock options outstanding under Equity Incentive Plan | 18,041 | 18,041 |
3. COMMITMENTS AND CONTINGENC_2
3. COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Commitments | ||
Loan commitments | ||
Commitments | 30,266 | 10,923 |
Standby letters of credit | ||
Commitments | $ 121 | $ 121 |
4. EARNINGS PER SHARE COMPUTA_2
4. EARNINGS PER SHARE COMPUTATION (Details Narrative) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share Computation Details Narrative | ||||
Weighted average common shares outstanding | 5,823,345 | 6,299,914 | 5,886,977 | 6,402,647 |
Dilutive effect of stock based awards | 41,482 | 66,118 | 38,700 | 78,922 |
Antidilutive stock option excluded from earnings per share | 0 | 32,448 | 0 | 32,448 |
5. INVESTMENT SECURITIES (Detai
5. INVESTMENT SECURITIES (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Available for sale securities, Amortized Cost | $ 283,270 | $ 262,778 |
Available for sale securities, Unrealized Gains | 531 | 1,933 |
Available for sale securities, Unrealized Losses | (6,532) | (2,389) |
Available for sale securities, Estimated Fair Value | 277,269 | 262,322 |
Held-to-Maturity Debt securities Amortized Cost | 328 | |
Held-to-Maturity Debt securities Estimated Fair Value | 328 | 404 |
US Government Agencies and Sponsored Agencies | ||
Available for sale securities, Amortized Cost | 256,018 | 233,956 |
Available for sale securities, Unrealized Gains | 360 | 1,184 |
Available for sale securities, Unrealized Losses | (6,088) | (2,271) |
Available for sale securities, Estimated Fair Value | 250,290 | 232,869 |
Held-to-Maturity Debt securities Amortized Cost | 311 | 378 |
Held-to-Maturity Debt securities Gross Unrealized Gains | 26 | |
Held-to-Maturity Debt securities Gross Unrealized Losses | 0 | |
Held-to-Maturity Debt securities Estimated Fair Value | 311 | 404 |
Obligations of states and political subdivisions | ||
Available for sale securities, Amortized Cost | 15,791 | 22,281 |
Available for sale securities, Unrealized Gains | 120 | 528 |
Available for sale securities, Unrealized Losses | (370) | (94) |
Available for sale securities, Estimated Fair Value | 15,541 | 22,715 |
Held-to-Maturity Debt securities Amortized Cost | 311 | |
Held-to-Maturity Debt securities Gross Unrealized Gains | 17 | |
Held-to-Maturity Debt securities Gross Unrealized Losses | 0 | |
Held-to-Maturity Debt securities Estimated Fair Value | 328 | |
Corporate Bonds | ||
Available for sale securities, Amortized Cost | 6,492 | 6,490 |
Available for sale securities, Unrealized Gains | 51 | 160 |
Available for sale securities, Unrealized Losses | (68) | (24) |
Available for sale securities, Estimated Fair Value | 6,475 | 6,626 |
Held-to-Maturity Debt securities Estimated Fair Value | 328 | |
US Treasury securities | ||
Available for sale securities, Amortized Cost | 4,969 | |
Available for sale securities, Unrealized Gains | 0 | |
Available for sale securities, Unrealized Losses | (6) | |
Available for sale securities, Estimated Fair Value | $ 4,963 | |
Equity Securities - Corporate Stock | ||
Available for sale securities, Amortized Cost | 51 | |
Available for sale securities, Unrealized Gains | 61 | |
Available for sale securities, Unrealized Losses | 0 | |
Available for sale securities, Estimated Fair Value | $ 112 |
5. INVESTMENT SECURITIES (Det_2
5. INVESTMENT SECURITIES (Details 1) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Less than 12 months, Estimated Fair Value | $ 138,152 | $ 122,552 |
Less than 12 months, Unrealized Loss | (2,427) | (1,181) |
12 months or more, Estimated Fair Value | 107,661 | 53,912 |
12 months or more, Unrealized Loss | (4,105) | (1,208) |
Total Estimated Fair Value | 245,813 | 176,464 |
Total Unrealized Loss | (6,532) | (2,389) |
US Government Agencies and Sponsored Agencies | ||
Less than 12 months, Estimated Fair Value | 127,137 | 119,455 |
Less than 12 months, Unrealized Loss | (2,321) | (1,148) |
12 months or more, Estimated Fair Value | 100,217 | 49,258 |
12 months or more, Unrealized Loss | (3,767) | (1,123) |
Total Estimated Fair Value | 227,354 | 168,713 |
Total Unrealized Loss | (6,088) | (2,271) |
Obligations of states and political subdivisions | ||
Less than 12 months, Estimated Fair Value | 5,554 | 1,130 |
Less than 12 months, Unrealized Loss | (98) | (9) |
12 months or more, Estimated Fair Value | 5,518 | 4,654 |
12 months or more, Unrealized Loss | (272) | (85) |
Total Estimated Fair Value | 11,072 | 5,784 |
Total Unrealized Loss | (370) | (94) |
Corporate Bonds | ||
Less than 12 months, Estimated Fair Value | 498 | 1,967 |
Less than 12 months, Unrealized Loss | (2) | (24) |
12 months or more, Estimated Fair Value | 1,926 | 0 |
12 months or more, Unrealized Loss | (66) | 0 |
Total Estimated Fair Value | 2,424 | 1,967 |
Total Unrealized Loss | (68) | $ (24) |
US Treasury securities | ||
Less than 12 months, Estimated Fair Value | 4,963 | |
Less than 12 months, Unrealized Loss | (6) | |
12 months or more, Estimated Fair Value | 0 | |
12 months or more, Unrealized Loss | 0 | |
Total Estimated Fair Value | 4,963 | |
Total Unrealized Loss | $ (6) |
5. INVESTMENT SECURITIES (Det_3
5. INVESTMENT SECURITIES (Details 2) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Equity securities, Amortized Cost | $ 250,290 | |
Equity securities, Estimated Fair Value | 277,269 | |
Held-to-Maturity Amortized Cost | 328 | |
Held-to-Maturity Estimated Fair Value | 328 | $ 404 |
Equity Securities - Corporate Stock | ||
Within one year, Amortized Cost | 4,969 | |
After one through five years, Amortized Cost | 5,145 | |
After five through ten years, Amortized Cost | 12,980 | |
After ten years, Amortized Cost | 4,158 | |
Total Amortized Cost | 27,252 | |
Within one year, Estimated Fair Value | 4,963 | |
After one through five years, Estimated Fair Value | 5,109 | |
After five through ten years, Estimated Fair Value | 12,818 | |
After ten years, Estimated Fair Value | 4,089 | |
Total Estimated Fair Value | 26,979 | |
Equity securities, Amortized Cost | 256,018 | |
Equity securities, Estimated Fair Value | 283,270 | |
US Government Agencies and Sponsored Agencies | ||
Held-to-Maturity Amortized Cost | 311 | 378 |
Held-to-Maturity Estimated Fair Value | $ 311 | $ 404 |
6. IMPAIRED AND NONPERFORMING_3
6. IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED - Nonaccrual loans (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Total nonperforming assets | $ 1,337 | $ 2,853 |
Nonperforming loans and leases to total loans and leases | 0.12% | 0.60% |
Total nonperforming assets to total assets | 0.20% | 0.44% |
Nonaccrual loans and leases that are current to terms (less than 30 days past due) | ||
Total nonperforming assets | $ 30 | $ 1,603 |
Nonaccrual loans and leases that are past due | ||
Total nonperforming assets | 346 | 289 |
Loans and leases past due 90 days and accruing interest | ||
Total nonperforming assets | 0 | 0 |
Other real estate owned | ||
Total nonperforming assets | $ 961 | $ 961 |
6. IMPAIRED AND NONPERFORMING_4
6. IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED - Nonperforming assets (Details 1) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
With no related allowance recorded: Recorded Investment | $ 6,348 | $ 7,601 |
With no related allowance recorded: Unpaid Principal Balance | 6,669 | 8,994 |
With no related allowance recorded: Related Allowance | 0 | 0 |
With an allowance recorded: Recorded Investment | 2,913 | 6,156 |
With an allowance recorded: Unpaid Principal Balance | 2,994 | 6,243 |
With an allowance recorded: Related Allowance | 181 | 355 |
Recorded Investment | 9,261 | 13,757 |
Unpaid Principal Balance | 9,663 | 15,237 |
Related Allowance | 181 | 355 |
Commercial | ||
With no related allowance recorded: Recorded Investment | 0 | 1,598 |
With no related allowance recorded: Unpaid Principal Balance | 0 | 2,671 |
With no related allowance recorded: Related Allowance | 0 | 0 |
With an allowance recorded: Recorded Investment | 0 | |
With an allowance recorded: Unpaid Principal Balance | 0 | |
With an allowance recorded: Related Allowance | 0 | |
Recorded Investment | 0 | 1,598 |
Unpaid Principal Balance | 0 | 2,671 |
Related Allowance | 0 | 0 |
Real estate-commercial | ||
With no related allowance recorded: Recorded Investment | 5,955 | 5,674 |
With no related allowance recorded: Unpaid Principal Balance | 6,189 | 5,907 |
With no related allowance recorded: Related Allowance | 0 | 0 |
With an allowance recorded: Recorded Investment | 2,181 | 4,396 |
With an allowance recorded: Unpaid Principal Balance | 2,262 | 4,483 |
With an allowance recorded: Related Allowance | 118 | 261 |
Recorded Investment | 8,136 | 10,070 |
Unpaid Principal Balance | 8,451 | 10,390 |
Related Allowance | 118 | 261 |
Real estate-multi-family | ||
With an allowance recorded: Recorded Investment | 0 | 474 |
With an allowance recorded: Unpaid Principal Balance | 0 | 474 |
With an allowance recorded: Related Allowance | 0 | 21 |
Recorded Investment | 0 | 474 |
Unpaid Principal Balance | 0 | 474 |
Related Allowance | 0 | 21 |
Real Estate Residential | ||
With no related allowance recorded: Recorded Investment | 325 | 329 |
With no related allowance recorded: Unpaid Principal Balance | 412 | 416 |
With no related allowance recorded: Related Allowance | 0 | 0 |
With an allowance recorded: Recorded Investment | 732 | 1,286 |
With an allowance recorded: Unpaid Principal Balance | 732 | 1,286 |
With an allowance recorded: Related Allowance | 63 | 73 |
Recorded Investment | 1,057 | 1,615 |
Unpaid Principal Balance | 1,144 | 1,702 |
Related Allowance | 63 | $ 73 |
Consumer | ||
With no related allowance recorded: Recorded Investment | 68 | |
With no related allowance recorded: Unpaid Principal Balance | 68 | |
With no related allowance recorded: Related Allowance | 0 | |
Recorded Investment | 68 | |
Unpaid Principal Balance | 68 | |
Related Allowance | $ 0 |
6. IMPAIRED AND NONPERFORMING_5
6. IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED - Impaired loans and leases (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Impaired Loans and Leases | $ 6,683 | $ 17,958 | $ 6,406 | $ 18,093 |
Interest income recognized on impaired loans and leases | 91 | 493 | 259 | 720 |
Commercial | ||||
Impaired Loans and Leases | 0 | 2,369 | 0 | 2,391 |
Interest income recognized on impaired loans and leases | 0 | 115 | 0 | 114 |
Real estate-commercial | ||||
Impaired Loans and Leases | 6,289 | 13,139 | 6,010 | 13,220 |
Interest income recognized on impaired loans and leases | 85 | 320 | 243 | 503 |
Real estate-multi-family | ||||
Impaired Loans and Leases | 0 | 477 | 0 | 479 |
Interest income recognized on impaired loans and leases | 0 | 17 | 0 | 25 |
Real Estate Residential | ||||
Impaired Loans and Leases | 326 | 1,973 | 327 | 2,003 |
Interest income recognized on impaired loans and leases | 5 | 39 | 14 | 76 |
Consumer | ||||
Impaired Loans and Leases | 68 | 0 | 69 | 0 |
Interest income recognized on impaired loans and leases | $ 1 | $ 2 | $ 2 | $ 2 |
8. LOANS AND LEASES AND ALLOWAN
8. LOANS AND LEASES AND ALLOWANCE FOR LOAN AND LEASE LOSSES - Internal risk ratings (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Total | $ 314,802 | $ 313,393 |
Pass | ||
Total | 291,563 | 284,337 |
Watch | ||
Total | 21,615 | 24,222 |
Special mention | ||
Total | 1,249 | 2,940 |
Substandard | ||
Total | 375 | 296 |
Doubtful or loss | ||
Total | 1,598 | |
Commercial Loan [Member] | Pass | ||
Total | 24,389 | 23,617 |
Commercial Loan [Member] | Watch | ||
Total | 107 | 96 |
Commercial Loan [Member] | Special mention | ||
Total | 0 | 66 |
Commercial Loan [Member] | Substandard | ||
Total | 30 | 0 |
Commercial Loan [Member] | Doubtful or loss | ||
Total | 1,598 | |
Commercial | ||
Total | 24,526 | 25,377 |
Real estate-commercial | ||
Total | 190,677 | 185,452 |
Real estate-commercial | Pass | ||
Total | 172,951 | 164,815 |
Real estate-commercial | Watch | ||
Total | 16,202 | 18,083 |
Real estate-commercial | Special mention | ||
Total | 1,247 | 2,265 |
Real estate-commercial | Substandard | ||
Total | 277 | 289 |
Real estate-commercial | Doubtful or loss | ||
Total | 0 | |
Real estate-multi-family | ||
Total | 65,312 | 78,025 |
Real estate-multi-family | Pass | ||
Total | 61,458 | 73,644 |
Real estate-multi-family | Watch | ||
Total | 3,854 | 4,381 |
Real estate-multi-family | Special mention | ||
Total | 0 | 0 |
Real estate-multi-family | Substandard | ||
Total | 0 | 0 |
Real estate-multi-family | Doubtful or loss | ||
Total | 0 | |
Real Estate Construction | Pass | ||
Total | 7,486 | 5,863 |
Real Estate Construction | Watch | ||
Total | 0 | 0 |
Real Estate Construction | Special mention | ||
Total | 0 | 0 |
Real Estate Construction | Substandard | ||
Total | 0 | 0 |
Real Estate Construction | Doubtful or loss | ||
Total | 0 | |
Real estate-construction | ||
Total | 7,486 | 5,863 |
Residential Real Estate [Member] | Pass | ||
Total | 15,393 | 13,767 |
Residential Real Estate [Member] | Watch | ||
Total | 1,304 | 1,507 |
Residential Real Estate [Member] | Special mention | ||
Total | 0 | 539 |
Residential Real Estate [Member] | Substandard | ||
Total | 0 | 0 |
Residential Real Estate [Member] | Doubtful or loss | ||
Total | 0 | |
Real Estate Residential | ||
Total | 16,697 | 15,813 |
Leases | ||
Total | 61 | 205 |
Leases | Pass | ||
Total | 61 | 205 |
Leases | Watch | ||
Total | 0 | 0 |
Leases | Special mention | ||
Total | 0 | 0 |
Leases | Substandard | ||
Total | 0 | 0 |
Leases | Doubtful or loss | ||
Total | 0 | |
Agriculture | ||
Total | 4,591 | 1,713 |
Agriculture | Pass | ||
Total | 4,591 | 1,713 |
Agriculture | Watch | ||
Total | 0 | 0 |
Agriculture | Special mention | ||
Total | 0 | 0 |
Agriculture | Substandard | ||
Total | 0 | 0 |
Agriculture | Doubtful or loss | ||
Total | 0 | |
Consumer Loan [Member] | Pass | ||
Total | 5,234 | 713 |
Consumer Loan [Member] | Watch | ||
Total | 148 | 155 |
Consumer Loan [Member] | Special mention | ||
Total | 2 | 70 |
Consumer Loan [Member] | Substandard | ||
Total | 68 | 7 |
Consumer Loan [Member] | Doubtful or loss | ||
Total | 0 | |
Consumer | ||
Total | $ 5,452 | $ 945 |
8. LOANS AND LEASES AND ALLOW_2
8. LOANS AND LEASES AND ALLOWANCE FOR LOAN AND LEASE LOSSES - Allowance Roll-forward (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Allowance for Loan and Lease Losses Beginning balance | $ 4,492 | $ 4,881 | $ 4,478 | $ 4,822 | |
Provision for loan losses | 50 | 300 | 50 | 300 | |
Loans charged off | (213) | (673) | (213) | (673) | |
Recoveries | 3 | 43 | 17 | 102 | |
Allowance for Loan and Lease Losses Ending balance | 4,332 | 4,551 | 4,332 | 4,551 | |
Allowance related to: Loans individually evaluated for impairment | 181 | 181 | $ 355 | ||
Allowance related to: Loans collectively evaluated for impairment | 4,151 | 4,151 | 4,123 | ||
Loans | 314,802 | 314,802 | 313,393 | ||
Loans individually evaluated for impairment | 9,261 | 9,261 | 13,757 | ||
Loans collectively evaluated for impairment | 305,541 | 305,541 | 299,636 | ||
Commercial | |||||
Allowance for Loan and Lease Losses Beginning balance | 669 | 916 | 447 | 855 | |
Provision for loan losses | 87 | 182 | 300 | 240 | |
Loans charged off | (213) | (673) | (213) | (673) | |
Recoveries | 1 | 2 | 10 | 5 | |
Allowance for Loan and Lease Losses Ending balance | 544 | 427 | 544 | 427 | |
Allowance related to: Loans individually evaluated for impairment | 0 | 0 | 0 | ||
Allowance related to: Loans collectively evaluated for impairment | 544 | 544 | 447 | ||
Loans | 24,526 | 24,526 | 25,377 | ||
Loans individually evaluated for impairment | 0 | 0 | 1,598 | ||
Loans collectively evaluated for impairment | 24,526 | 24,526 | 23,779 | ||
Real estate-commercial | |||||
Allowance for Loan and Lease Losses Beginning balance | 2,100 | 2,091 | 2,174 | 2,050 | |
Provision for loan losses | (130) | (4) | (208) | (16) | |
Loans charged off | 0 | 0 | 0 | 0 | |
Recoveries | 2 | 1 | 6 | 54 | |
Allowance for Loan and Lease Losses Ending balance | 1,972 | 2,088 | 1,972 | 2,088 | |
Allowance related to: Loans individually evaluated for impairment | 118 | 118 | 261 | ||
Allowance related to: Loans collectively evaluated for impairment | 1,854 | 1,854 | 1,913 | ||
Loans | 190,677 | 190,677 | 185,452 | ||
Loans individually evaluated for impairment | 8,136 | 8,136 | 10,070 | ||
Loans collectively evaluated for impairment | 182,541 | 182,541 | 175,382 | ||
Real estate-multi-family | |||||
Allowance for Loan and Lease Losses Beginning balance | 839 | 789 | 1,047 | 851 | |
Provision for loan losses | (99) | 209 | (307) | 147 | |
Loans charged off | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Allowance for Loan and Lease Losses Ending balance | 740 | 998 | 740 | 998 | |
Allowance related to: Loans individually evaluated for impairment | 0 | 0 | 21 | ||
Allowance related to: Loans collectively evaluated for impairment | 740 | 740 | 1,026 | ||
Loans | 65,312 | 65,312 | 78,025 | ||
Loans individually evaluated for impairment | 0 | 0 | 474 | ||
Loans collectively evaluated for impairment | 65,312 | 65,312 | 77,551 | ||
Real estate-construction | |||||
Allowance for Loan and Lease Losses Beginning balance | 298 | 457 | 269 | 446 | |
Provision for loan losses | 60 | 23 | 89 | 34 | |
Loans charged off | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Allowance for Loan and Lease Losses Ending balance | 358 | 480 | 358 | 480 | |
Allowance related to: Loans individually evaluated for impairment | 0 | 0 | 0 | ||
Allowance related to: Loans collectively evaluated for impairment | 358 | 358 | 269 | ||
Loans | 7,486 | 7,486 | 5,863 | ||
Loans individually evaluated for impairment | 0 | 0 | 0 | ||
Loans collectively evaluated for impairment | 7,486 | 7,486 | 5,863 | ||
Real Estate Residential | |||||
Allowance for Loan and Lease Losses Beginning balance | 239 | 268 | 205 | 253 | |
Provision for loan losses | 1 | (37) | 35 | (22) | |
Loans charged off | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Allowance for Loan and Lease Losses Ending balance | 240 | 231 | 240 | 231 | |
Allowance related to: Loans individually evaluated for impairment | 63 | 63 | 73 | ||
Allowance related to: Loans collectively evaluated for impairment | 177 | 177 | 132 | ||
Loans | 16,697 | 16,697 | 15,813 | ||
Loans individually evaluated for impairment | 1,057 | 1,057 | 1,615 | ||
Loans collectively evaluated for impairment | 15,640 | 15,640 | 14,198 | ||
Leases | |||||
Allowance for Loan and Lease Losses Beginning balance | 0 | 1 | 0 | 1 | |
Provision for loan losses | 0 | (40) | (1) | (40) | |
Loans charged off | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 39 | 1 | 39 | |
Allowance for Loan and Lease Losses Ending balance | 0 | 0 | 0 | 0 | |
Allowance related to: Loans individually evaluated for impairment | 0 | 0 | 0 | ||
Allowance related to: Loans collectively evaluated for impairment | 0 | 0 | 0 | ||
Loans | 61 | 61 | 205 | ||
Loans individually evaluated for impairment | 0 | 0 | 0 | ||
Loans collectively evaluated for impairment | 61 | 61 | 205 | ||
Agriculture | |||||
Allowance for Loan and Lease Losses Beginning balance | 49 | 59 | 31 | 64 | |
Provision for loan losses | 46 | (30) | 64 | (35) | |
Loans charged off | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Allowance for Loan and Lease Losses Ending balance | 95 | 29 | 95 | 29 | |
Allowance related to: Loans individually evaluated for impairment | 0 | 0 | 0 | ||
Allowance related to: Loans collectively evaluated for impairment | 95 | 95 | 31 | ||
Loans | 4,591 | 4,591 | 1,713 | ||
Loans individually evaluated for impairment | 0 | 0 | 0 | ||
Loans collectively evaluated for impairment | 4,591 | 4,591 | 1,713 | ||
Consumer | |||||
Allowance for Loan and Lease Losses Beginning balance | 11 | 19 | 14 | 24 | |
Provision for loan losses | 83 | (3) | 80 | (11) | |
Loans charged off | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 1 | 0 | 4 | |
Allowance for Loan and Lease Losses Ending balance | 94 | 17 | 94 | 17 | |
Allowance related to: Loans individually evaluated for impairment | 0 | 0 | 0 | ||
Allowance related to: Loans collectively evaluated for impairment | 94 | 94 | 14 | ||
Loans | 5,452 | 5,452 | 945 | ||
Loans individually evaluated for impairment | 68 | 68 | 0 | ||
Loans collectively evaluated for impairment | 5,384 | 5,384 | 945 | ||
Unallocated | |||||
Allowance for Loan and Lease Losses Beginning balance | 287 | 281 | 291 | 278 | |
Provision for loan losses | 2 | 0 | (2) | 3 | |
Loans charged off | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Allowance for Loan and Lease Losses Ending balance | 289 | $ 281 | 289 | $ 281 | |
Allowance related to: Loans individually evaluated for impairment | 0 | 0 | 0 | ||
Allowance related to: Loans collectively evaluated for impairment | 289 | 289 | 291 | ||
Loans | 0 | 0 | 0 | ||
Loans individually evaluated for impairment | 0 | 0 | 0 | ||
Loans collectively evaluated for impairment | $ 0 | $ 0 | $ 0 |
8. LOANS AND LEASES AND ALLOW_3
8. LOANS AND LEASES AND ALLOWANCE FOR LOAN AND LEASE LOSSES - Aging analysis (Details 2) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Total Past Due | $ 4,118 | $ 436 |
Current | 310,684 | 312,957 |
Total Loans | 314,802 | 313,393 |
Past Due Greater Than 90 Days and Accruing | 0 | 0 |
Nonaccrual | 376 | 1,892 |
30 -59 Days Past Due | ||
Total Past Due | 3,551 | 147 |
60 -89 Days Past Due | ||
Total Past Due | 499 | 0 |
Past Due Greater Than 90 Days | ||
Total Past Due | 68 | 289 |
Commercial | ||
Total Past Due | 0 | 0 |
Current | 24,526 | 25,377 |
Total Loans | 24,526 | 25,377 |
Past Due Greater Than 90 Days and Accruing | 0 | 0 |
Nonaccrual | 30 | 1,597 |
Commercial | 30 -59 Days Past Due | ||
Total Past Due | 0 | 0 |
Commercial | 60 -89 Days Past Due | ||
Total Past Due | 0 | 0 |
Commercial | Past Due Greater Than 90 Days | ||
Total Past Due | 0 | 0 |
Real estate-commercial | ||
Total Past Due | 278 | 289 |
Current | 190,399 | 185,163 |
Total Loans | 190,677 | 185,452 |
Past Due Greater Than 90 Days and Accruing | 0 | 0 |
Nonaccrual | 278 | 289 |
Real estate-commercial | 30 -59 Days Past Due | ||
Total Past Due | 278 | 0 |
Real estate-commercial | 60 -89 Days Past Due | ||
Total Past Due | 0 | 0 |
Real estate-commercial | Past Due Greater Than 90 Days | ||
Total Past Due | 0 | 289 |
Real estate-multi-family | ||
Total Past Due | 0 | 0 |
Current | 65,312 | 78,025 |
Total Loans | 65,312 | 78,025 |
Past Due Greater Than 90 Days and Accruing | 0 | 0 |
Nonaccrual | 0 | 0 |
Real estate-multi-family | 30 -59 Days Past Due | ||
Total Past Due | 0 | 0 |
Real estate-multi-family | 60 -89 Days Past Due | ||
Total Past Due | 0 | 0 |
Real estate-multi-family | Past Due Greater Than 90 Days | ||
Total Past Due | 0 | 0 |
Real estate-construction | ||
Total Past Due | 0 | 0 |
Current | 7,486 | 5,863 |
Total Loans | 7,486 | 5,863 |
Past Due Greater Than 90 Days and Accruing | 0 | 0 |
Nonaccrual | 0 | 0 |
Real estate-construction | 30 -59 Days Past Due | ||
Total Past Due | 0 | 0 |
Real estate-construction | 60 -89 Days Past Due | ||
Total Past Due | 0 | 0 |
Real estate-construction | Past Due Greater Than 90 Days | ||
Total Past Due | 0 | 0 |
Real Estate Residential | ||
Total Past Due | 3,772 | 146 |
Current | 12,925 | 15,667 |
Total Loans | 16,697 | 15,813 |
Past Due Greater Than 90 Days and Accruing | 0 | 0 |
Nonaccrual | 0 | 0 |
Real Estate Residential | 30 -59 Days Past Due | ||
Total Past Due | 3,273 | 146 |
Real Estate Residential | 60 -89 Days Past Due | ||
Total Past Due | 499 | 0 |
Real Estate Residential | Past Due Greater Than 90 Days | ||
Total Past Due | 0 | 0 |
Leases | ||
Total Past Due | 0 | 0 |
Current | 61 | 205 |
Total Loans | 61 | 205 |
Past Due Greater Than 90 Days and Accruing | 0 | 0 |
Nonaccrual | 0 | 0 |
Leases | 30 -59 Days Past Due | ||
Total Past Due | 0 | 0 |
Leases | 60 -89 Days Past Due | ||
Total Past Due | 0 | 0 |
Leases | Past Due Greater Than 90 Days | ||
Total Past Due | 0 | 0 |
Agriculture | ||
Total Past Due | 0 | 0 |
Current | 4,591 | 1,713 |
Total Loans | 4,591 | 1,713 |
Past Due Greater Than 90 Days and Accruing | 0 | 0 |
Nonaccrual | 0 | 0 |
Agriculture | 30 -59 Days Past Due | ||
Total Past Due | 0 | 0 |
Agriculture | 60 -89 Days Past Due | ||
Total Past Due | 0 | 0 |
Agriculture | Past Due Greater Than 90 Days | ||
Total Past Due | 0 | 0 |
Consumer | ||
Total Past Due | 68 | 1 |
Current | 5,384 | 944 |
Total Loans | 5,452 | 945 |
Past Due Greater Than 90 Days and Accruing | 0 | 0 |
Nonaccrual | 68 | 6 |
Consumer | 30 -59 Days Past Due | ||
Total Past Due | 0 | 1 |
Consumer | 60 -89 Days Past Due | ||
Total Past Due | 0 | 0 |
Consumer | Past Due Greater Than 90 Days | ||
Total Past Due | 68 | 0 |
Unallocated | ||
Total Loans | $ 0 | $ 0 |
9. BORROWING ARRANGEMENTS (Deta
9. BORROWING ARRANGEMENTS (Details Narrative) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Borrowing Arrangements | ||
Unsecured short-term borrowing arrangements with two of its correspondent banks | $ 17,000 | $ 0 |
FHLB advances | $ 15,500 | $ 0 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate, Minimum | 1.18% | 1.18% |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate, Maximum | 1.90% | 1.90% |
Remaining amounts available under the borrowing arrangement with the FHLB | $ 100,570 | $ 117,546 |
Secured borrowing agreement with the Federal Reserve Bank of San Francisco | $ 8,435 | $ 9,085 |
11. FAIR VALUE MEASUREMENTS - C
11. FAIR VALUE MEASUREMENTS - Carrying amounts and estimated fair values (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Financial assets: | ||
Cash and due from banks | $ (24,634) | $ (38,467) |
Federal funds sold | (10,000) | 0 |
Interest-bearing deposits in banks | 1,746 | 1,746 |
Available-for-sale securities | 277,269 | 262,322 |
Held-to-maturity securities | 328 | 404 |
FHLB stock | 3,932 | 3,932 |
Net loans and leases: | 306,226 | 317,900 |
Accrued interest receivable | 1,919 | 1,956 |
Deposits: | ||
Noninterest-bearing | 209,322 | 215,528 |
Savings | 74,765 | 66,130 |
Money market | 150,050 | 130,032 |
NOW accounts | 64,682 | 64,709 |
Time Deposits | 76,687 | 79,614 |
Short-term borrowings | 6,500 | 3,500 |
Long-term borrowings | 9,124 | 11,978 |
Accrued interest payable | 69 | 65 |
Carrying Amount | ||
Financial assets: | ||
Cash and due from banks | 24,634 | 38,467 |
Federal funds sold | 10,000 | |
Interest-bearing deposits in banks | 1,746 | 1,746 |
Available-for-sale securities | 277,269 | 262,322 |
Held-to-maturity securities | 311 | 378 |
FHLB stock | 3,932 | 3,932 |
Net loans and leases: | 310,322 | 308,713 |
Accrued interest receivable | 1,919 | 1,956 |
Deposits: | ||
Noninterest-bearing | 209,322 | 215,528 |
Savings | 74,765 | 66,130 |
Money market | 150,050 | 130,032 |
NOW accounts | 64,682 | 64,709 |
Time Deposits | 77,001 | 79,681 |
Short-term borrowings | 6,500 | 3,500 |
Long-term borrowings | 9,000 | 12 |
Accrued interest payable | 69 | 65 |
Level 1 | ||
Financial assets: | ||
Cash and due from banks | 24,634 | 38,467 |
Federal funds sold | 10,000 | |
Interest-bearing deposits in banks | 0 | 0 |
Available-for-sale securities | 4,963 | 66 |
Held-to-maturity securities | 0 | 0 |
FHLB stock | 0 | 0 |
Net loans and leases: | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Deposits: | ||
Noninterest-bearing | 209,322 | 215,528 |
Savings | 74,765 | 66,130 |
Money market | 150,050 | 130,032 |
NOW accounts | 64,682 | 64,709 |
Time Deposits | 0 | 0 |
Short-term borrowings | 6,500 | 3,500 |
Long-term borrowings | 0 | 0 |
Accrued interest payable | 7 | 4 |
Level 2 | ||
Financial assets: | ||
Cash and due from banks | 0 | 0 |
Federal funds sold | 0 | |
Interest-bearing deposits in banks | 1,746 | 1,750 |
Available-for-sale securities | 273,306 | 262,256 |
Held-to-maturity securities | 328 | 404 |
FHLB stock | 0 | 0 |
Net loans and leases: | 0 | 0 |
Accrued interest receivable | 983 | 1,124 |
Deposits: | ||
Noninterest-bearing | 0 | 0 |
Savings | 0 | 0 |
Money market | 0 | 0 |
NOW accounts | 0 | 0 |
Time Deposits | 76,687 | 79,614 |
Short-term borrowings | 0 | 0 |
Long-term borrowings | 9,124 | 11,978 |
Accrued interest payable | 62 | 61 |
Level 3 | ||
Financial assets: | ||
Cash and due from banks | 0 | 0 |
Federal funds sold | 0 | |
Interest-bearing deposits in banks | 0 | 0 |
Available-for-sale securities | 0 | 0 |
Held-to-maturity securities | 0 | 0 |
FHLB stock | 0 | 0 |
Net loans and leases: | 306,226 | 317,900 |
Accrued interest receivable | 936 | 832 |
Deposits: | ||
Noninterest-bearing | 0 | 0 |
Savings | 0 | 0 |
Money market | 0 | 0 |
NOW accounts | 0 | 0 |
Time Deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
Long-term borrowings | 0 | 0 |
Accrued interest payable | $ 0 | $ 0 |
11. FAIR VALUE MEASUREMENTS - A
11. FAIR VALUE MEASUREMENTS - Assets and liabilities measured at fair value on recurring and non-recurring basis (Details 1) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Recurring | ||
Impaired loans: | ||
Total gain (losses) | $ 0 | |
Non Recurring | ||
Impaired loans: | ||
Total gain (losses) | $ 0 | (1,073) |
US Government Agencies Debt Securities [Member] | ||
Impaired loans: | ||
Total gain (losses) | 0 | |
US Government Agencies Debt Securities [Member] | Fair Value | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 250,290 | 232,869 |
US Government Agencies Debt Securities [Member] | Level 1 | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 0 | 0 |
US Government Agencies Debt Securities [Member] | Level 2 | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 250,290 | 232,869 |
US Government Agencies Debt Securities [Member] | Level 3 | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 0 | 0 |
Obligations of states and political subdivisions | ||
Impaired loans: | ||
Total gain (losses) | 0 | |
Obligations of states and political subdivisions | Fair Value | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 15,541 | 22,715 |
Obligations of states and political subdivisions | Level 1 | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 0 | 0 |
Obligations of states and political subdivisions | Level 2 | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 15,541 | 22,715 |
Obligations of states and political subdivisions | Level 3 | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 0 | 0 |
Corporate bonds | Fair Value | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 6,475 | |
Corporate bonds | Level 1 | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 0 | |
Corporate bonds | Level 2 | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 6,475 | |
Corporate bonds | Level 3 | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 0 | |
US Treasury securities | Fair Value | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 4,963 | |
US Treasury securities | Level 1 | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 4,963 | |
US Treasury securities | Level 2 | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 0 | |
US Treasury securities | Level 3 | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 0 | |
Recurring | Fair Value | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 277,269 | 262,322 |
Recurring | Level 1 | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 4,963 | 66 |
Recurring | Level 2 | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 272,306 | 262,256 |
Recurring | Level 3 | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 0 | 0 |
Commercial Loan [Member] | ||
Impaired loans: | ||
Total gain (losses) | 0 | (1,073) |
Commercial Loan [Member] | Fair Value | ||
Impaired loans: | ||
Assets, Fair Value Disclosure, Nonrecurring | 5,131 | 1,598 |
Commercial Loan [Member] | Level 1 | ||
Impaired loans: | ||
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Commercial Loan [Member] | Level 2 | ||
Impaired loans: | ||
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Commercial Loan [Member] | Level 3 | ||
Impaired loans: | ||
Assets, Fair Value Disclosure, Nonrecurring | 5,131 | 1,598 |
Land | ||
Impaired loans: | ||
Total gain (losses) | 0 | 0 |
Land | Fair Value | ||
Impaired loans: | ||
Assets, Fair Value Disclosure, Nonrecurring | 961 | 961 |
Land | Level 1 | ||
Impaired loans: | ||
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Land | Level 2 | ||
Impaired loans: | ||
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Land | Level 3 | ||
Impaired loans: | ||
Assets, Fair Value Disclosure, Nonrecurring | 961 | 961 |
Non Recurring | Fair Value | ||
Impaired loans: | ||
Assets, Fair Value Disclosure, Nonrecurring | 6,902 | 3,066 |
Non Recurring | Level 1 | ||
Impaired loans: | ||
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Non Recurring | Level 2 | ||
Impaired loans: | ||
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Non Recurring | Level 3 | ||
Impaired loans: | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 6,902 | 3,066 |
Corporate Bonds | ||
Impaired loans: | ||
Total gain (losses) | 0 | |
Corporate Bonds | Fair Value | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 6,626 | |
Corporate Bonds | Level 1 | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 0 | |
Corporate Bonds | Level 2 | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 6,626 | |
Corporate Bonds | Level 3 | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 0 | |
Corporate stock | ||
Impaired loans: | ||
Total gain (losses) | 0 | |
Corporate stock | Fair Value | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 112 | |
Corporate stock | Level 1 | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 66 | |
Corporate stock | Level 2 | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 46 | |
Corporate stock | Level 3 | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 0 | |
Residential Real Estate [Member] | ||
Impaired loans: | ||
Total gain (losses) | 0 | |
Residential Real Estate [Member] | Fair Value | ||
Impaired loans: | ||
Assets, Fair Value Disclosure, Nonrecurring | 329 | |
Residential Real Estate [Member] | Level 1 | ||
Impaired loans: | ||
Assets, Fair Value Disclosure, Nonrecurring | 0 | |
Residential Real Estate [Member] | Level 2 | ||
Impaired loans: | ||
Assets, Fair Value Disclosure, Nonrecurring | 0 | |
Residential Real Estate [Member] | Level 3 | ||
Impaired loans: | ||
Assets, Fair Value Disclosure, Nonrecurring | 329 | |
Real estate-commercial | ||
Impaired loans: | ||
Total gain (losses) | $ 0 |