Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 23, 2015 | Jun. 30, 2014 |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | FARMERS NATIONAL BANC CORP /OH/ | ||
Entity Central Index Key | 709337 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $146.30 | ||
Entity Common Stock, Shares Outstanding | 18,408,612 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Cash and due from banks | $11,410 | $12,957 |
Federal funds sold and other | 16,018 | 14,556 |
TOTAL CASH AND CASH EQUIVALENTS | 27,428 | 27,513 |
Securities available for sale | 389,829 | 422,985 |
Loans held for sale | 511 | 158 |
Loans | 663,852 | 630,684 |
Less allowance for loan losses | 7,632 | 7,568 |
NET LOANS | 656,220 | 623,116 |
Premises and equipment, net | 17,049 | 17,187 |
Goodwill | 5,591 | 6,354 |
Other intangibles | 3,222 | 3,989 |
Bank owned life insurance | 16,367 | 15,908 |
Other assets | 20,750 | 20,116 |
TOTAL ASSETS | 1,136,967 | 1,137,326 |
Deposits: | ||
Noninterest-bearing | 184,697 | 155,893 |
Interest-bearing | 731,006 | 759,323 |
TOTAL DEPOSITS | 915,703 | 915,216 |
Short-term borrowings | 59,136 | 81,617 |
Long-term borrowings | 28,381 | 19,822 |
Other liabilities | 10,187 | 7,664 |
TOTAL LIABILITIES | 1,013,407 | 1,024,319 |
Commitments and contingent liabilities | ||
Stockholders' Equity | ||
Common Stock - Authorized 35,000,000 shares; issued 19,031,059 | 106,021 | 105,905 |
Retained earnings | 20,944 | 14,215 |
Accumulated other comprehensive income (loss) | 1,093 | -5,465 |
Treasury stock, at cost; 622,447 shares in 2014 and 255,079 shares in 2013 | -4,498 | -1,648 |
TOTAL STOCKHOLDERS' EQUITY | 123,560 | 113,007 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $1,136,967 | $1,137,326 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) | Dec. 31, 2014 | Dec. 31, 2013 |
Statement Of Financial Position [Abstract] | ||
Common stock, shares authorized | 35,000,000 | 35,000,000 |
Common stock, shares issued | 19,031,059 | 19,031,059 |
Treasury stock, shares | 622,447 | 255,079 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
INTEREST AND DIVIDEND INCOME | |||
Loans, including fees | $30,901 | $30,717 | $31,874 |
Taxable securities | 7,282 | 7,062 | 8,099 |
Tax exempt securities | 2,523 | 2,949 | 2,831 |
Dividends | 190 | 196 | 206 |
Federal funds sold and other interest income | 19 | 35 | 100 |
TOTAL INTEREST AND DIVIDEND INCOME | 40,915 | 40,959 | 43,110 |
INTEREST EXPENSE | |||
Deposits | 4,008 | 4,560 | 5,719 |
Short-term borrowings | 46 | 51 | 103 |
Long-term borrowings | 525 | 452 | 390 |
TOTAL INTEREST EXPENSE | 4,579 | 5,063 | 6,212 |
NET INTEREST INCOME | 36,336 | 35,896 | 36,898 |
Provision for loan losses | 1,880 | 1,290 | 725 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 34,456 | 34,606 | 36,173 |
NONINTEREST INCOME | |||
Service charges on deposit accounts | 2,627 | 2,370 | 2,043 |
Bank owned life insurance income, including death benefits | 459 | 696 | 526 |
Trust fees | 6,092 | 5,583 | 5,497 |
Insurance agency commissions | 354 | 243 | 124 |
Security gains | 457 | 863 | 1,059 |
Impairment of equity securities | 0 | -3 | 0 |
Retirement plan consulting fees | 1,809 | 628 | 0 |
Investment commissions | 1,026 | 989 | 946 |
Net gains on sale of loans | 358 | 505 | 598 |
Other operating income | 2,121 | 2,040 | 1,785 |
TOTAL NONINTEREST INCOME | 15,303 | 13,914 | 12,578 |
NONINTEREST EXPENSE | |||
Salaries and employee benefits | 20,878 | 22,054 | 19,746 |
Occupancy and equipment | 4,505 | 4,189 | 4,179 |
State and local taxes | 878 | 1,313 | 1,203 |
Professional fees | 2,451 | 2,212 | 1,967 |
Merger related costs | 0 | 330 | 0 |
Advertising | 1,112 | 911 | 973 |
FDIC insurance | 733 | 719 | 710 |
Intangible amortization | 767 | 624 | 409 |
Core processing charges | 1,571 | 1,354 | 1,419 |
Other operating expenses | 5,267 | 5,351 | 5,158 |
TOTAL NONINTEREST EXPENSE | 38,162 | 39,057 | 35,764 |
INCOME BEFORE INCOME TAXES | 11,597 | 9,463 | 12,987 |
INCOME TAXES | 2,632 | 1,683 | 3,055 |
NET INCOME | $8,965 | $7,780 | $9,932 |
EARNINGS PER SHARE: Basic and Diluted | $0.48 | $0.41 | $0.53 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Statement Of Income And Comprehensive Income [Abstract] | ||||||
NET INCOME | $8,965 | $7,780 | $9,932 | |||
Other comprehensive income (loss): | ||||||
Net unrealized holding gains (losses) on available for sale securities | 10,486 | -19,310 | 307 | |||
Reclassification adjustment for gains realized in income | -457 | [1] | -860 | [1] | -1,059 | [1] |
Net unrealized holding gains (losses) | 10,029 | -20,170 | -752 | |||
Income tax effect | -3,510 | 7,060 | 263 | |||
Unrealized holding gains (losses), net of reclassification and tax | 6,519 | -13,110 | -489 | |||
Change in funded status of post-retirement health plan | 60 | -3 | 131 | |||
Income tax effect | -21 | 1 | -46 | |||
Change in funded status of post-retirement health plan, net of tax | 39 | -2 | 85 | |||
Other comprehensive income (loss), net of tax | 6,558 | -13,112 | -404 | |||
TOTAL COMPREHENSIVE INCOME (LOSS) | $15,523 | ($5,332) | $9,528 | |||
[1] | Pre-tax reclassification adjustments relating to available-for-sale securities are reported in security gains and the tax impact is included in income tax expense on the consolidated statements of income. |
Consolidated_Statement_of_Shar
Consolidated Statement of Shareholders' Equity (USD $) | Total | COMMON STOCK | RETAINED EARNINGS | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | TREASURY STOCK, AT COST | |
In Thousands | ||||||
Balance at beginning of year at Dec. 31, 2011 | $104,261 | $2,133 | $8,051 | $0 | ||
Stock option expense | [1] | 0 | ||||
Issued 44,845 shares from dividend reinvestment | 243 | |||||
Issued 228,777 shares as part of the acquisition of National Associates, Inc. | 0 | 0 | ||||
Accrual for 46,957 shares as part of the long term incentive plan | 0 | |||||
Net income | 9,932 | 9,932 | ||||
Dividends declared: $.12 cash dividends per share in 2014 and 2013, $.18 in 2012 | -3,382 | |||||
Other comprehensive income (loss) | -404 | |||||
Reissued 5,000 treasury shares to satisfy exercised stock options | 0 | |||||
Purchased 372,368 shares in 2014, 247,845 shares in 2013 and 7,221 shares in 2012 | -42 | |||||
TOTAL STOCKHOLDERS' EQUITY | 120,792 | |||||
Balance at end of year at Dec. 31, 2012 | 104,504 | 8,683 | 7,647 | -42 | ||
Stock option expense | [1] | 1 | ||||
Issued 44,845 shares from dividend reinvestment | 0 | |||||
Issued 228,777 shares as part of the acquisition of National Associates, Inc. | 1,400 | 1,400 | ||||
Accrual for 46,957 shares as part of the long term incentive plan | 0 | |||||
Net income | 7,780 | 7,780 | ||||
Dividends declared: $.12 cash dividends per share in 2014 and 2013, $.18 in 2012 | -2,248 | |||||
Other comprehensive income (loss) | -13,112 | |||||
Reissued 5,000 treasury shares to satisfy exercised stock options | 0 | |||||
Purchased 372,368 shares in 2014, 247,845 shares in 2013 and 7,221 shares in 2012 | -1,606 | |||||
TOTAL STOCKHOLDERS' EQUITY | 113,007 | |||||
Balance at end of year at Dec. 31, 2013 | 105,905 | 14,215 | -5,465 | -1,648 | ||
Stock option expense | [1] | 0 | ||||
Issued 44,845 shares from dividend reinvestment | 0 | |||||
Issued 228,777 shares as part of the acquisition of National Associates, Inc. | 0 | 0 | ||||
Accrual for 46,957 shares as part of the long term incentive plan | 116 | |||||
Net income | 8,965 | 8,965 | ||||
Dividends declared: $.12 cash dividends per share in 2014 and 2013, $.18 in 2012 | -2,236 | |||||
Other comprehensive income (loss) | 6,558 | |||||
Reissued 5,000 treasury shares to satisfy exercised stock options | 32 | |||||
Purchased 372,368 shares in 2014, 247,845 shares in 2013 and 7,221 shares in 2012 | -2,882 | |||||
TOTAL STOCKHOLDERS' EQUITY | 123,560 | |||||
Balance at end of year at Dec. 31, 2014 | $106,021 | $20,944 | $1,093 | ($4,498) | ||
[1] | Stock option expense for 2012 was less than $1,000 and rounded to $0. |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Common stock, shares issued | 19,031,059 | 19,031,059 | |
COMMON STOCK | |||
Dividend reinvestment, shares | 44,845 | ||
Accrual for long term incentive plan, shares | 46,957 | ||
RETAINED EARNINGS | |||
Cash dividend declared per share of common stock | $0.12 | $0.12 | $0.18 |
TREASURY STOCK, AT COST | |||
Treasury stock reissued | 5,000 | ||
Treasury stock repurchased | 372,368 | 247,845 | 7,221 |
National Associates Incorporated | COMMON STOCK | |||
Common stock, shares issued | 228,777 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
NET INCOME | $8,965 | $7,780 | $9,932 |
Adjustments to reconcile net income to net cash from operating activities: | |||
Provision for loan losses | 1,880 | 1,290 | 725 |
Depreciation and amortization | 1,981 | 1,945 | 1,738 |
Net amortization of securities | 1,472 | 2,646 | 2,711 |
Security gains | -457 | -863 | -1,059 |
Impairment of equity securities | 0 | 3 | 0 |
(Gain) Loss on sale of other real estate owned | 53 | 75 | -61 |
Earnings on bank owned life insurance | -459 | -478 | -526 |
Income recognized from death benefit on bank owned life insurance | 0 | -218 | 0 |
Origination of loans held for sale | -15,911 | -25,085 | -35,237 |
Proceeds from loans held for sale | 15,916 | 29,056 | 32,888 |
Net gains on sale of loans | -358 | -505 | -598 |
Net change in other assets and liabilities | -830 | -1,394 | 457 |
NET CASH FROM OPERATING ACTIVITIES | 12,252 | 14,252 | 10,970 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Proceeds from maturities and repayments of securities available for sale | 49,401 | 75,015 | 84,490 |
Proceeds from sales of securities available for sale | 57,170 | 94,016 | 91,197 |
Purchases of securities available for sale | -64,400 | -149,886 | -237,393 |
Loan originations and payments, net | -35,352 | -45,529 | -19,278 |
Proceeds from sale of other real estate owned | 337 | 282 | 1,888 |
Proceeds from BOLI death benefit | 0 | 329 | 0 |
Proceeds from sale of land | 0 | 118 | 0 |
Additions to premises and equipment | -972 | -215 | -3,198 |
Purchase of National Associates Inc, net | 0 | -2,111 | 0 |
NET CASH FROM INVESTING ACTIVITIES | 6,184 | -27,981 | -82,294 |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Net change in deposits | 487 | -3,793 | 78,884 |
Net change in short-term borrowings | -22,481 | 1,731 | -18,202 |
Repayment of Federal Home Loan Bank borrowings and other debt | -1,441 | -601 | -840 |
New advances for long term borrowing | 10,000 | 10,000 | 0 |
Cash dividends paid | -2,236 | -2,248 | -3,382 |
Proceeds from dividend reinvestment | 0 | 0 | 243 |
Proceeds from reissuance of treasury shares | 32 | 0 | 0 |
Repurchase of common shares | -2,882 | -1,606 | -42 |
NET CASH FROM FINANCING ACTIVITIES | -18,521 | 3,483 | 56,661 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | -85 | -10,246 | -14,663 |
Beginning cash and cash equivalents | 27,513 | 37,759 | 52,422 |
Ending cash and cash equivalents | 27,428 | 27,513 | 37,759 |
Supplemental cash flow information: | |||
Interest paid | 4,623 | 5,095 | 6,318 |
Income taxes paid | 1,925 | 1,130 | 2,065 |
Supplemental noncash disclosures: | |||
Transfer of loans and property to other real estate owned | 368 | 193 | 1,576 |
Issuance of stock for NAI acquisition | 0 | 1,400 | 0 |
Contingent consideration for NAI acquisition | 0 | 920 | 0 |
Security purchases not settled | $0 | $0 | $4,758 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Principles of Consolidation: The consolidated financial statements include the accounts of Farmers National Banc Corp. and its wholly-owned subsidiaries, The Farmers National Bank (“Bank”) of Canfield, Farmers Trust Company (“Trust”) and National Associates, Inc. (“NAI”). The consolidated financial statements also include the accounts of the Farmers National Bank of Canfield’s subsidiaries; Farmers National Insurance (“Insurance”) and Farmers of Canfield Investment Co. (“Investments”). Together the entities are referred to as “the Company.” All significant intercompany balances and transactions have been eliminated in consolidation. | |
Nature of Operations: The Company provides full banking services, including wealth management services and mortgage banking activity, through the Bank. As a national bank, the Bank is subject to regulation of the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation. The area served by the Bank is the northeastern region of Ohio and service is provided at twenty (20) locations. During 2013, the Company acquired NAI, a retirement plan consulting firm located in Cleveland, Ohio. Therefore the Company provides retirement consulting services through NAI. The Company provides trust services through its subsidiary, Trust and insurance services through the Bank’s subsidiary, Insurance. The primary purpose of Investments, the new subsidiary of the Bank in 2014, is to invest in municipal securities. Farmers Trust Company has a state-chartered bank license to conduct trust business from the Ohio Department of Commerce – Division of Financial Institutions. | |
Estimates: The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Cash Flows: Cash and cash equivalents include cash on hand, deposits with other financial institutions and federal funds sold. Generally, federal funds are purchased and sold for one-day periods. Net cash flows are reported for loan and deposit transactions, short term borrowings, and other assets and liabilities. | |
Securities Available for Sale: Debt securities are classified as available for sale when they might be sold before maturity. Equity securities with readily determinable fair values are classified as available for sale. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax. | |
Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage backed securities where prepayments are anticipated. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Purchases are recorded on the trade date. | |
Management evaluates securities for other-than-temporary impairment (OTTI) at least on a quarterly basis, and more frequently when economic or market conditions warrant. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the income statement and 2) other-than-temporary impairment (OTTI) related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings. | |
Loans Held for Sale: Mortgage loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or fair value, as determined by outstanding commitments from investors. Net unrealized losses, if any, are charged to earnings. | |
Mortgage loans held for sale are generally sold with servicing rights released. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related loan sold. | |
Loans: Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of deferred loan fees and costs, and an allowance for loan losses. Substantially all loans are secured by specific items of collateral including business assets, consumer assets, and commercial and residential real estate. | |
Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level yield method without anticipating prepayments. Interest income on mortgage and commercial loans is discontinued at the time the loan is 90 days delinquent unless the loan is well-secured and in process of collection. Consumer loans are typically charged off no later than 120 days past due. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. | |
For all classes of loans, when interest accruals are discontinued, interest accrued but not received for loans placed on non-accrual is reversed against interest income. Interest on such loans is thereafter recorded on a cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. | |
Derivatives: Derivative financial instruments are recognized as assets or liabilities at fair value. The Company’s derivatives are interest-rate swap agreements, which are used as part of its asset and liability management strategy to help manage its interest rate risk position. The Company does not use derivatives for trading or balance sheet hedging purposes. The derivative transactions are considered instruments with no hedging designation, otherwise known as stand-alone derivatives. Changes in the fair value of the derivatives are reported currently in earnings, as other noninterest income. | |
Concentration of Credit Risk: There are no significant concentrations of loans to any one industry or customer. However, most of the Company’s business activity is with customers located within Mahoning, Trumbull, Columbiana, Stark and Cuyahoga counties. Therefore, the Company’s exposure to credit risk is significantly affected by changes in the economy of the five county area. | |
Allowance for Loan Losses: The allowance for loan losses is a valuation allowance for probable incurred loan losses, increased by the provision for loan losses and decreased by charge-offs less recoveries. The allowance is based on management’s judgment taking into consideration past loss experience, reviews of individual loans, current economic conditions and other factors considered relevant by management at the financial statement date. While management uses the best information available to establish the allowance, future adjustments to the allowance may be necessary, which may be material, if economic conditions differ substantially from the assumptions used in estimating the allowance. If additions to the original estimate of the allowance for loan losses are deemed necessary, they will be reported in earnings in the period in which they become reasonably estimable and probable. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged-off. | |
The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. A loan is considered impaired when, based on the current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Loans, for which the terms have been modified, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. | |
Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. | |
Impairment is measured on a loan by loan basis for commercial and commercial real estate loans over $300 thousand, individually or in the aggregate, by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Large groups of smaller balance homogeneous loans, such as consumer and residential real estate loans are collectively evaluated for impairment and accordingly, they are not separately identified for impairment disclosures. Non-real estate secured consumer loans in bankruptcy where debt has not been reaffirmed are considered troubled debt restructurings and are evaluated individually to ensure that accurate accounting treatment is in place. | |
The Company considers the guidance on troubled debt restructuring for individual consumer and residential loans when evaluating for impairment disclosure. Troubled debt restructurings are measured at the present value of estimated future cash flow using the loan’s effective rate at inception. If a troubled debt restructuring is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For troubled debt restructurings that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses. | |
The general component covers non-impaired loans and is based on historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced for the most recent twelve quarters. The formula for calculating the allowance for loan losses requires that the historical loss percentage be applied to homogeneous and all risk rated loans. This actual loss experience is supplemented with other economic factors based on the risks present for each portfolio segment. These economic factors include consideration of the following: levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. The following portfolio segments have been identified: | |
Commercial Loans. Commercial credit is extended to commercial customers for use in normal business operations to finance working capital needs, equipment purchases, or other projects. The majority of these borrowers are customers doing business within our geographic regions. These loans are generally underwritten individually and secured with the assets of the company and the personal guarantee of the business owners. Commercial loans are made based primarily on the historical and projected cash flow of the borrower and the underlying collateral provided by the borrower. | |
Commercial Real Estate Loans. Commercial real estate loans are subject to underwriting standards and processes similar to commercial loans. These loans are viewed primarily as cash flow loans and the repayment of these loans is largely dependent on the successful operation of the property. Loan performance may be adversely affected by factors impacting the general economy or conditions specific to the real estate market such as geographic location and property type. | |
Consumer Loans. Consumer loans are primarily comprised of loans made directly to consumers and indirectly through automobile dealerships. These loans have a specific matrix which consists of several factors including debt to income, type of collateral and loan to collateral value, credit history and relationship with the borrower. Consumer lending uses risk-based pricing in the underwriting process. | |
Residential Real Estate Loans. Residential mortgage loans represent loans to consumers for the purchase or refinance of a residence. These loans are generally financed up to 15 years, and in most cases, are extended to borrowers to finance their primary residence. Real estate market values at the time of origination directly affect the amount of credit extended and, in the event of default, subsequent changes in these values may impact the severity of losses. | |
Foreclosed Assets: Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. Operating costs after acquisition are expensed. | |
Premises and Equipment: Land is carried at cost. Premises and equipment are stated at cost, less accumulated depreciation. Buildings and related components are depreciated using the straight-line method with useful lives ranging from 5 to 40 years. Furniture, fixtures and equipment are depreciated using the straight-line method with useful lives ranging from 3 to 10 years. | |
Restricted Stock: The Bank is a member of the Federal Home Loan Bank (FHLB) system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. The Bank is also a member of and owns stock in the Federal Reserve Bank. These stocks are carried at cost, classified as restricted securities included in other assets, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. | |
Bank Owned Life Insurance: The Company has purchased life insurance policies on certain key officers. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. | |
Long-term Assets: Premises and equipment and other long-term assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value. | |
Goodwill and Other Intangible Assets: Goodwill resulting from a business combination is generally determined as the excess of the fair value of the consideration transferred over the fair value of the net assets acquired as of the acquisition date. Goodwill acquired in a purchase business combination and determined to have an indefinite useful life is not amortized, but tested for impairment at least annually. The Company has selected September 30 as the date to perform the annual impairment tests associated with the acquisition of the Trust and NAI. Intangible assets with definite useful lives are amortized over their estimated useful lives. Goodwill is the only intangible asset with an indefinite life on the balance sheet. Non-compete contracts are amortized on a straight line basis, over the term of the agreements. Customer relationship and trade name intangibles are amortized over an average of 13 years on an accelerated method. | |
Loan Commitments and Related Financial Instruments: Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. | |
Stock-Based Compensation: Compensation cost is recognized for stock options and restricted stock awards issued to employees, based on the fair value of these awards at the date of grant. The market price of the Company’s common stock at the grant date is used for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. | |
Income Taxes: Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. | |
A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. | |
The Company recognizes interest and/or penalties related to income tax matters in income tax expense. | |
Retirement Plans: Employee 401(k) and profit sharing plan expense is the amount of matching and discretionary contributions. Deferred compensation and supplemental retirement plan expense allocates the benefits over years of service. | |
Earnings per Common Share: Basic earnings per common share is net income divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share include the dilutive effect of additional potential common shares issuable under stock options. Earnings and dividends per share are restated for all stock splits and stock dividends through the date of issuance of the financial statements. | |
Comprehensive Income (Loss): Comprehensive income (loss) consists of net income and other comprehensive income (loss). Other comprehensive income (loss) consists of unrealized gains and losses on securities available for sale and changes in the funded status of the post-retirement health plan, which are recognized as separate components of equity, net of tax effects. | |
Loss Contingencies: Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are such matters that will have a material effect on the financial statements. | |
Restrictions on Cash: Cash on hand or on deposit with the Federal Reserve Bank was required to meet regulatory reserve and clearing requirements. | |
Equity: Treasury stock is carried at cost. | |
Dividend Restriction: Banking regulations require maintaining certain capital levels and may limit the dividends paid by the Bank and Trust to the holding company or by the holding company to shareholders. | |
Fair Value of Financial Instruments: Fair values of financial instruments are estimated using relevant market information and other assumptions as more fully disclosed in Note 4. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect these estimates. | |
Operating Segments: While the chief decision-makers monitor the revenue streams of the various products and services, operations are managed and financial performance is primarily aggregated and reported in three lines of business, the Bank, Trust and Retirement consulting segments. The Company discloses segment information in Note 20. | |
Reclassification: Some items in the prior year financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on prior year net income or stockholders’ equity. | |
Adoption of New Accounting Standards: In May 2014, FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606). The ASU creates a new topic, Topic 606, to provide guidance on revenue recognition for entities that enter into contracts with customers to transfer goods or services or enter into contracts for the transfer of nonfinancial assets. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additional disclosures are required to provide quantitative and qualitative information regarding the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new guidance is effective for annual reporting periods, and interim reporting periods within those annual periods, beginning after December 15, 2016. Early adoption is not permitted. Management is currently evaluating the impact of the adoption of this guidance on the Company’s consolidated financial statements. | |
In January 2014, the FASB issued ASU 2014-04, “Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure.” The objective of the amendments in ASU 2014-04 to Topic 310, “Receivables - Troubled Debt Restructurings by Creditors,” is to reduce diversity by clarifying when an in substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. The amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. An entity can elect to adopt the amendments using either a modified retrospective transition method or a prospective transition method. Early adoption is permitted. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. | |
In January 2014, the FASB amended existing guidance on ASU 2014-1, “Investments - Equity Method and Joint Ventures (Topic 323) - Accounting for Investments in Qualified Affordable Housing Projects” to eliminate the effective yield election and to permit reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Disclosures for a change in accounting principle are required upon transition. The amendments are effective for annual periods and interim reporting periods beginning after December 15, 2014. The amendments in this standard should be applied retrospectively to all periods presented. A reporting entity that uses the effective yield method before the date of adoption of this standard may continue to apply it for preexisting investments. Early adoption is permitted. The adoption of this standard is not expected to have a material effect on the Company’s consolidated financial statements. |
Securities_Available_for_Sale
Securities Available for Sale | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Investments Debt And Equity Securities [Abstract] | |||||||||||||||||||||
Securities Available for Sale | NOTE 2 - SECURITIES AVAILABLE FOR SALE | ||||||||||||||||||||
The following table summarizes the amortized cost and fair value of the available-for-sale securities portfolio at December 31, 2014 and 2013 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows: | |||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||
Amortized | Unrealized | Unrealized | |||||||||||||||||||
2014 | Cost | Gains | Losses | Fair Value | |||||||||||||||||
U.S. Treasury and U.S. government sponsored entities | $ | 24,515 | $ | 418 | $ | (112 | ) | $ | 24,821 | ||||||||||||
State and political subdivisions | 90,369 | 2,183 | (671 | ) | 91,881 | ||||||||||||||||
Corporate bonds | 936 | 3 | (8 | ) | 931 | ||||||||||||||||
Mortgage-backed securities - residential | 223,216 | 2,395 | (1,249 | ) | 224,362 | ||||||||||||||||
Collateralized mortgage obligations | 25,988 | 98 | (911 | ) | 25,175 | ||||||||||||||||
Small Business Administration | 23,193 | 1 | (775 | ) | 22,419 | ||||||||||||||||
Equity securities | 120 | 121 | (1 | ) | 240 | ||||||||||||||||
Totals | $ | 388,337 | $ | 5,219 | $ | (3,727 | ) | $ | 389,829 | ||||||||||||
Gross | Gross | ||||||||||||||||||||
Amortized | Unrealized | Unrealized | |||||||||||||||||||
2013 | Cost | Gains | Losses | Fair Value | |||||||||||||||||
U.S. Treasury and U.S. government sponsored entities | $ | 50,942 | $ | 755 | $ | (387 | ) | $ | 51,310 | ||||||||||||
State and political subdivisions | 96,239 | 1,302 | (2,807 | ) | 94,734 | ||||||||||||||||
Corporate bonds | 1,540 | 0 | (15 | ) | 1,525 | ||||||||||||||||
Mortgage-backed securities - residential | 226,865 | 1,199 | (5,084 | ) | 222,980 | ||||||||||||||||
Collateralized mortgage obligations | 30,227 | 162 | (1,713 | ) | 28,676 | ||||||||||||||||
Small Business Administration | 25,592 | 1 | (2,020 | ) | 23,573 | ||||||||||||||||
Equity securities | 117 | 70 | 0 | 187 | |||||||||||||||||
Totals | $ | 431,522 | $ | 3,489 | $ | (12,026 | ) | $ | 422,985 | ||||||||||||
The proceeds from sales of available-for-sale securities and the associated gains and losses were as follows: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Proceeds | $ | 57,170 | $ | 94,016 | $ | 91,197 | |||||||||||||||
Gross gains | 758 | 1,924 | 1,258 | ||||||||||||||||||
Gross losses | (301 | ) | (1,061 | ) | (199 | ) | |||||||||||||||
The tax provision related to these net realized gains was $160 thousand, $301 thousand and $370 thousand respectively. | |||||||||||||||||||||
The amortized cost and fair value of the debt securities portfolio are shown by expected maturity. Expected maturities may differ from contractual maturities if issuers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. | |||||||||||||||||||||
Available for sale | 31-Dec-14 | ||||||||||||||||||||
Amortized | |||||||||||||||||||||
Maturity | Cost | Fair Value | |||||||||||||||||||
Within one year | $ | 12,359 | $ | 12,480 | |||||||||||||||||
One to five years | 54,555 | 55,070 | |||||||||||||||||||
Five to ten years | 39,859 | 40,994 | |||||||||||||||||||
Beyond ten years | 9,086 | 9,089 | |||||||||||||||||||
Mortgage-backed securities, collateralized mortgage obligations and Small Business Administration | 272,397 | 271,956 | |||||||||||||||||||
Totals | $ | 388,256 | $ | 389,589 | |||||||||||||||||
Securities with a carrying amount of $149 million at December 31, 2014 and $164 million at December 31, 2013 were pledged to secure public deposits and repurchase agreements. The Trust company had securities, with a carrying amount of $100 thousand, at year-end 2014 and 2013, pledged to qualify as a fiduciary in the State of Ohio. | |||||||||||||||||||||
In each year, there were no holdings of any other issuer that exceeded 10% of stockholders’ equity, other than the U.S. Government, its agencies and its sponsored entities. | |||||||||||||||||||||
The following table summarizes the investment securities with unrealized losses at December 31, 2014 and 2013 aggregated by major security type and length of time in a continuous unrealized loss position. Unrealized losses for Equity securities had unrealized losses that rounded to less than $1 thousand for year 2013. | |||||||||||||||||||||
2014 | |||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||
Description of Securities | Value | Loss | Value | Loss | Value | Loss | |||||||||||||||
U.S. Treasury and U.S. government | |||||||||||||||||||||
sponsored entities | $ | 498 | $ | (2 | ) | $ | 10,159 | $ | (110 | ) | $ | 10,657 | $ | (112 | ) | ||||||
State and political subdivisions | 987 | (11 | ) | 24,063 | (660 | ) | 25,050 | (671 | ) | ||||||||||||
Corporate bonds | 0 | 0 | 476 | (8 | ) | 476 | (8 | ) | |||||||||||||
Mortgage-backed securities - residential | 25,770 | (202 | ) | 55,576 | (1,047 | ) | 81,346 | (1,249 | ) | ||||||||||||
Collateralized mortgage obligations | 0 | 0 | 19,541 | (911 | ) | 19,541 | (911 | ) | |||||||||||||
Small Business Administration | 0 | 0 | 22,319 | (775 | ) | 22,319 | (775 | ) | |||||||||||||
Equity securities | 26 | (1 | ) | 0 | 0 | 26 | (1 | ) | |||||||||||||
Total temporarily impaired | $ | 27,281 | $ | (216 | ) | $ | 132,134 | $ | (3,511 | ) | $ | 159,415 | $ | (3,727 | ) | ||||||
2013 | |||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||
Description of Securities | Value | Loss | Value | Loss | Value | Loss | |||||||||||||||
U.S. Treasury and U.S. government | |||||||||||||||||||||
sponsored entities | $ | 20,776 | $ | (387 | ) | $ | 0 | $ | 0 | $ | 20,776 | $ | (387 | ) | |||||||
State and political subdivisions | 34,851 | (1,855 | ) | 7,492 | (952 | ) | 42,343 | (2,807 | ) | ||||||||||||
Corporate bonds | 1,052 | (2 | ) | 473 | (13 | ) | 1,525 | (15 | ) | ||||||||||||
Mortgage-backed securities - residential | 141,024 | (3,735 | ) | 27,026 | (1,349 | ) | 168,050 | (5,084 | ) | ||||||||||||
Collateralized mortgage obligations | 5,283 | (450 | ) | 15,726 | (1,263 | ) | 21,009 | (1,713 | ) | ||||||||||||
Small Business Administration | 6,927 | (491 | ) | 16,520 | (1,529 | ) | 23,447 | (2,020 | ) | ||||||||||||
Equity securities | 7 | 0 | 0 | 0 | 7 | 0 | |||||||||||||||
Total temporarily impaired | $ | 209,920 | $ | (6,920 | ) | $ | 67,237 | $ | (5,106 | ) | $ | 277,157 | $ | (12,026 | ) | ||||||
The Company’s equity securities include local and regional bank holdings. During the year ended December 31, 2013 a $3 thousand pre-tax charge was recognized for the other-than-temporary decline in fair value on these equity holdings. The Company recognized an other-than-temporary impairment that was less than $1 thousand and rounded to zero for year ended December 31, 2012. No other-than-temporary impairments were recognized during 2014. When a decline in fair value below cost is deemed to be other-than-temporary, the difference between the amortized cost basis of the equity security and its fair value must be recognized as a charge to earnings. | |||||||||||||||||||||
As of December 31, 2014, the Company’s security portfolio consisted of 376 securities, 91 of which were in an unrealized loss position. The majority of unrealized losses are related to the Company’s holdings in securities issued by state and political subdivisions, mortgage-backed securities - residential, collateralized mortgage obligations and Small Business Administration, as discussed below: | |||||||||||||||||||||
Securities issued by State and Political subdivisions | |||||||||||||||||||||
Unrealized losses on debt securities issued by state and political subdivisions have not been recognized into income. Generally these securities have maintained their investment grade ratings and management does not have the intent and is not required to sell these securities before their anticipated recovery. The fair value is expected to recover as the securities approach their maturity date. | |||||||||||||||||||||
Mortgage-backed securities - residential | |||||||||||||||||||||
All of the Company’s holdings of mortgage-backed securities—residential at year end 2014 and 2013 were issued by U.S. Government sponsored enterprises. Unrealized losses on mortgage-backed securities—residential have not been recognized into income. Because the decline in fair value is attributable to changes in interest rates and illiquidity, and not credit quality, and because the Company does not have the intent to sell these mortgage-backed securities—residential and it is likely that it will not be required to sell the securities before their anticipated recovery, the Company does not consider these securities to be other-than-temporarily impaired at December 31, 2014 and 2013. | |||||||||||||||||||||
Collateralized mortgage obligations | |||||||||||||||||||||
The Company’s portfolio includes collateralized mortgage obligations issued by U.S. Government sponsored enterprises. The decline in fair value is attributable to changes in interest rates and illiquidity, and not credit quality. The Company does not have the intent to sell these collateralized mortgage obligations and it is likely that it will not be required to sell the securities before their anticipated recovery. The Company monitors all securities to ensure adequate credit support and as of December 31, 2014 and 2013, the Company believes there is no other-than-temporary impairment. | |||||||||||||||||||||
Small Business Administration | |||||||||||||||||||||
The Company’s holdings of Small Business Administration securities are issued and backed by the full faith and credit of the U.S. Government. Unrealized losses on these Small Business Administration securities have not been recognized into income. Because the decline in fair value is attributable to changes in interest rates and illiquidity, and not credit quality, and because the Company does not have the intent to sell these securities and it is likely that it will not be required to sell the securities before their anticipated recovery, the Company does not consider these securities to be other-than-temporarily impaired at December 31, 2014 and 2013. |
Loans
Loans | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||
Loans | NOTE 3 - LOANS | |||||||||||||||||||||||
Loans at year end were as follows: | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||
Owner occupied | $ | 74,829 | $ | 86,286 | ||||||||||||||||||||
Non-owner occupied | 122,228 | 107,625 | ||||||||||||||||||||||
Other | 26,137 | 24,381 | ||||||||||||||||||||||
Commercial | 120,493 | 105,023 | ||||||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||
1-4 family residential | 153,055 | 144,225 | ||||||||||||||||||||||
Home equity lines of credit | 31,255 | 26,448 | ||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||
Indirect | 120,931 | 121,446 | ||||||||||||||||||||||
Direct | 9,071 | 10,237 | ||||||||||||||||||||||
Other | 3,626 | 3,031 | ||||||||||||||||||||||
Subtotal | $ | 661,625 | $ | 628,702 | ||||||||||||||||||||
Net deferred loan (fees) costs | 2,227 | 1,982 | ||||||||||||||||||||||
Allowance for loan losses | (7,632 | ) | (7,568 | ) | ||||||||||||||||||||
Net loans | $ | 656,220 | $ | 623,116 | ||||||||||||||||||||
The following tables present the activity in the allowance for loan losses by portfolio segment for years ended December 31, 2014, 2013 and 2012: | ||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
Commercial | Residential | |||||||||||||||||||||||
Real Estate | Commercial | Real Estate | Consumer | Unallocated | Total | |||||||||||||||||||
Allowance for loan losses | ||||||||||||||||||||||||
Beginning balance | $ | 2,752 | $ | 1,219 | $ | 1,964 | $ | 1,419 | $ | 214 | $ | 7,568 | ||||||||||||
Provision for loan losses | (50 | ) | 357 | 233 | 1,370 | (30 | ) | 1,880 | ||||||||||||||||
Loans charged off | (151 | ) | (185 | ) | (585 | ) | (2,213 | ) | 0 | (3,134 | ) | |||||||||||||
Recoveries | 125 | 29 | 77 | 1,087 | 0 | 1,318 | ||||||||||||||||||
Total ending allowance balance | $ | 2,676 | $ | 1,420 | $ | 1,689 | $ | 1,663 | $ | 184 | $ | 7,632 | ||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Commercial | Residential | |||||||||||||||||||||||
Real Estate | Commercial | Real Estate | Consumer | Unallocated | Total | |||||||||||||||||||
Allowance for loan losses | ||||||||||||||||||||||||
Beginning balance | $ | 3,392 | $ | 1,453 | $ | 1,569 | $ | 951 | $ | 264 | $ | 7,629 | ||||||||||||
Provision for loan losses | (306 | ) | (397 | ) | 674 | 1,369 | (50 | ) | 1,290 | |||||||||||||||
Loans charged off | (505 | ) | (99 | ) | (326 | ) | (1,723 | ) | 0 | (2,653 | ) | |||||||||||||
Recoveries | 171 | 262 | 47 | 822 | 0 | 1,302 | ||||||||||||||||||
Total ending allowance balance | $ | 2,752 | $ | 1,219 | $ | 1,964 | $ | 1,419 | $ | 214 | $ | 7,568 | ||||||||||||
31-Dec-12 | ||||||||||||||||||||||||
Commercial | Residential | |||||||||||||||||||||||
Real Estate | Commercial | Real Estate | Consumer | Unallocated | Total | |||||||||||||||||||
Allowance for loan losses | ||||||||||||||||||||||||
Beginning balance | $ | 4,880 | $ | 1,529 | $ | 1,802 | $ | 972 | $ | 637 | $ | 9,820 | ||||||||||||
Provision for loan losses | (516 | ) | 792 | 469 | 353 | (373 | ) | 725 | ||||||||||||||||
Loans charged off | (1,225 | ) | (918 | ) | (806 | ) | (1,002 | ) | 0 | (3,951 | ) | |||||||||||||
Recoveries | 253 | 50 | 104 | 628 | 0 | 1,035 | ||||||||||||||||||
Total ending allowance balance | $ | 3,392 | $ | 1,453 | $ | 1,569 | $ | 951 | $ | 264 | $ | 7,629 | ||||||||||||
The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2014 and 2013. The recorded investment in loans includes the unpaid principal balance and unamortized loan origination fees and costs, but excludes accrued interest receivable which is not considered to be material. | ||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
Commercial | Residential | |||||||||||||||||||||||
Allowance for loan losses: | Real Estate | Commercial | Real Estate | Consumer | Unallocated | Total | ||||||||||||||||||
Ending allowance balance attributable to loans: | ||||||||||||||||||||||||
Individually evaluated for impairment | $ | 514 | $ | 272 | $ | 88 | $ | 0 | $ | 0 | $ | 874 | ||||||||||||
Collectively evaluated for impairment | 2,162 | 1,148 | 1,601 | 1,663 | 184 | 6,758 | ||||||||||||||||||
Total ending allowance balance | $ | 2,676 | $ | 1,420 | $ | 1,689 | $ | 1,663 | $ | 184 | $ | 7,632 | ||||||||||||
Loans: | ||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 7,139 | $ | 1,940 | $ | 3,425 | $ | 93 | $ | 0 | $ | 12,597 | ||||||||||||
Loans collectively evaluated for impairment | 215,434 | 118,210 | 180,428 | 137,183 | 0 | 651,255 | ||||||||||||||||||
Total ending loans balance | $ | 222,573 | $ | 120,150 | $ | 183,853 | $ | 137,276 | $ | 0 | $ | 663,852 | ||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Commercial | Residential | |||||||||||||||||||||||
Allowance for loan losses: | Real Estate | Commercial | Real Estate | Consumer | Unallocated | Total | ||||||||||||||||||
Ending allowance balance attributable to loans: | ||||||||||||||||||||||||
Individually evaluated for impairment | $ | 166 | $ | 110 | $ | 202 | $ | 82 | $ | 0 | $ | 560 | ||||||||||||
Collectively evaluated for impairment | 2,586 | 1,109 | 1,762 | 1,337 | 214 | 7,008 | ||||||||||||||||||
Total ending allowance balance | $ | 2,752 | $ | 1,219 | $ | 1,964 | $ | 1,419 | $ | 214 | $ | 7,568 | ||||||||||||
Loans: | ||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 6,623 | $ | 2,430 | $ | 2,554 | $ | 363 | $ | 0 | $ | 11,970 | ||||||||||||
Loans collectively evaluated for impairment | 210,739 | 102,593 | 167,597 | 137,785 | 0 | 618,714 | ||||||||||||||||||
Total ending loans balance | $ | 217,362 | $ | 105,023 | $ | 170,151 | $ | 138,148 | $ | 0 | $ | 630,684 | ||||||||||||
The following tables present information related to impaired loans by class of loans as of and for year ended December 31, 2014, 2013 and 2012. The recorded investment in loans excludes accrued interest receivable due to immateriality. | ||||||||||||||||||||||||
Unpaid Principal | Recorded | Allowance for Loan | Average Recorded | Interest Income | ||||||||||||||||||||
31-Dec-14 | Balance | Investment | Losses Allocated | Investment | Recognized | |||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||
Owner occupied | $ | 2,448 | $ | 2,318 | $ | 0 | $ | 1,860 | $ | 46 | ||||||||||||||
Non-owner occupied | 391 | 391 | 0 | 653 | 20 | |||||||||||||||||||
Commercial | 531 | 511 | 0 | 1,273 | 22 | |||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||
1-4 family residential | 2,421 | 2,156 | 0 | 1,804 | 79 | |||||||||||||||||||
Home equity lines of credit | 476 | 251 | 0 | 263 | 13 | |||||||||||||||||||
Consumer | 185 | 93 | 0 | 166 | 4 | |||||||||||||||||||
Subtotal | 6,452 | 5,720 | 0 | 6,019 | 184 | |||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||
Owner occupied | 2,882 | 2,882 | 446 | 2,104 | 94 | |||||||||||||||||||
Non-owner occupied | 1,548 | 1,548 | 68 | 1,570 | 81 | |||||||||||||||||||
Commercial | 1,444 | 1,429 | 272 | 818 | 2 | |||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||
1-4 family residential | 944 | 928 | 85 | 1,207 | 41 | |||||||||||||||||||
Home equity lines of credit | 90 | 90 | 3 | 113 | 5 | |||||||||||||||||||
Consumer | 0 | 0 | 0 | 2 | 0 | |||||||||||||||||||
Subtotal | 6,908 | 6,877 | 874 | 5,814 | 223 | |||||||||||||||||||
Total | $ | 13,360 | $ | 12,597 | $ | 874 | $ | 11,833 | $ | 407 | ||||||||||||||
Unpaid Principal | Recorded | Allowance for Loan | Average Recorded | Interest Income | ||||||||||||||||||||
31-Dec-13 | Balance | Investment | Losses Allocated | Investment | Recognized | |||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||
Owner occupied | $ | 4,302 | $ | 3,762 | $ | 0 | $ | 2,643 | $ | 137 | ||||||||||||||
Non-owner occupied | 491 | 389 | 0 | 438 | 0 | |||||||||||||||||||
Commercial | 1,007 | 971 | 0 | 1,363 | 25 | |||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||
1-4 family residential | 1,026 | 961 | 0 | 1,462 | 51 | |||||||||||||||||||
Home equity lines of credit | 107 | 99 | 0 | 194 | 0 | |||||||||||||||||||
Consumer | 111 | 112 | 0 | 9 | 0 | |||||||||||||||||||
Subtotal | 7,044 | 6,294 | 0 | 6,109 | 213 | |||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||
Owner occupied | 886 | 884 | 91 | 2,536 | 39 | |||||||||||||||||||
Non-owner occupied | 1,593 | 1,588 | 75 | 1,975 | 87 | |||||||||||||||||||
Commercial | 1,462 | 1,459 | 110 | 594 | 5 | |||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||
1-4 family residential | 1,458 | 1,347 | 190 | 112 | 48 | |||||||||||||||||||
Home equity lines of credit | 148 | 147 | 12 | 12 | 0 | |||||||||||||||||||
Consumer | 247 | 251 | 82 | 21 | 0 | |||||||||||||||||||
Subtotal | 5,794 | 5,676 | 560 | 5,250 | 179 | |||||||||||||||||||
Total | $ | 12,838 | $ | 11,970 | $ | 560 | $ | 11,359 | $ | 392 | ||||||||||||||
During 2013 the Company, for the first time, began considering consumer loans individually for impairment. Cash basis interest income recognized and interest income recognized was materially equal for 2014 and 2013. | ||||||||||||||||||||||||
Unpaid Principal | Recorded | Allowance for Loan | Average Recorded | |||||||||||||||||||||
31-Dec-12 | Balance | Investment | Losses Allocated | Investment | ||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||
Owner occupied | $ | 3,916 | $ | 3,481 | $ | 0 | $ | 1,490 | ||||||||||||||||
Non-owner occupied | 560 | 461 | 0 | 483 | ||||||||||||||||||||
Other | 0 | 0 | 0 | 114 | ||||||||||||||||||||
Commercial | 1,250 | 1,192 | 0 | 1,075 | ||||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||
1-4 family residential | 971 | 989 | 0 | 747 | ||||||||||||||||||||
Home equity lines of credit | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Consumer | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Subtotal | 6,697 | 6,123 | 0 | 3,909 | ||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||
Owner occupied | 2,207 | 2,169 | 59 | 3,859 | ||||||||||||||||||||
Non-owner occupied | 2,560 | 2,424 | 70 | 2,402 | ||||||||||||||||||||
Other | 0 | 0 | 0 | 119 | ||||||||||||||||||||
Commercial | 948 | 660 | 51 | 478 | ||||||||||||||||||||
Subtotal | 5,715 | 5,253 | 180 | 6,858 | ||||||||||||||||||||
Total | $ | 12,412 | $ | 11,376 | $ | 180 | $ | 10,767 | ||||||||||||||||
Cash basis interest income recognized and interest income recognized during impairment was immaterial for 2012. | ||||||||||||||||||||||||
Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. The following table presents the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of December 31, 2014 and 2013: | ||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||
Loans Past Due | Loans Past Due | |||||||||||||||||||||||
90 Days or More | 90 Days or More | |||||||||||||||||||||||
Nonaccrual | Still Accruing | Nonaccrual | Still Accruing | |||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||
Owner occupied | $ | 3,315 | $ | 44 | $ | 2,806 | $ | 0 | ||||||||||||||||
Non-owner occupied | 41 | 0 | 405 | 0 | ||||||||||||||||||||
Commercial | 1,645 | 0 | 1,993 | 13 | ||||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||
1-4 family residential | 2,742 | 195 | 2,584 | 526 | ||||||||||||||||||||
Home equity lines of credit | 139 | 40 | 280 | 0 | ||||||||||||||||||||
Consumer | ||||||||||||||||||||||||
Indirect | 90 | 193 | 308 | 94 | ||||||||||||||||||||
Direct | 36 | 0 | 55 | 3 | ||||||||||||||||||||
Other | 0 | 1 | 0 | 10 | ||||||||||||||||||||
Total | $ | 8,008 | $ | 473 | $ | 8,431 | $ | 646 | ||||||||||||||||
The following tables present the aging of the recorded investment in past due loans as of December 31, 2014 and 2013 by class of loans: | ||||||||||||||||||||||||
30-59 | 60-89 | Greater Than 90 | ||||||||||||||||||||||
Days Past | Days Past | Days Past Due | Total Past | Loans Not | ||||||||||||||||||||
31-Dec-14 | Due | Due | and Nonaccrual | Due | Past Due | Total | ||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||
Owner occupied | $ | 0 | $ | 0 | $ | 3,359 | $ | 3,359 | $ | 71,272 | $ | 74,631 | ||||||||||||
Non-owner occupied | 0 | 0 | 41 | 41 | 121,872 | 121,913 | ||||||||||||||||||
Other | 0 | 0 | 0 | 0 | 26,029 | 26,029 | ||||||||||||||||||
Commercial | 0 | 0 | 1,645 | 1,645 | 118,505 | 120,150 | ||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||
1-4 family residential | 1,892 | 546 | 2,937 | 5,375 | 147,223 | 152,598 | ||||||||||||||||||
Home equity lines of credit | 205 | 92 | 179 | 476 | 30,779 | 31,255 | ||||||||||||||||||
Consumer | ||||||||||||||||||||||||
Indirect | 2,136 | 406 | 283 | 2,825 | 121,754 | 124,579 | ||||||||||||||||||
Direct | 108 | 18 | 36 | 162 | 8,909 | 9,071 | ||||||||||||||||||
Other | 17 | 6 | 1 | 24 | 3,602 | 3,626 | ||||||||||||||||||
Total | $ | 4,358 | $ | 1,068 | $ | 8,481 | $ | 13,907 | $ | 649,945 | $ | 663,852 | ||||||||||||
30-59 | 60-89 | Greater Than 90 | ||||||||||||||||||||||
Days Past | Days Past | Days Past Due | Total Past | Loans Not | ||||||||||||||||||||
31-Dec-13 | Due | Due | and Nonaccrual | Due | Past Due | Total | ||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||
Owner occupied | $ | 48 | $ | 0 | $ | 2,806 | $ | 2,854 | $ | 83,065 | $ | 85,919 | ||||||||||||
Non-owner occupied | 0 | 0 | 405 | 405 | 106,762 | 107,167 | ||||||||||||||||||
Other | 0 | 0 | 0 | 0 | 24,276 | 24,276 | ||||||||||||||||||
Commercial | 14 | 0 | 2,006 | 2,020 | 103,003 | 105,023 | ||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||
1-4 family residential | 573 | 141 | 3,110 | 3,824 | 139,879 | 143,703 | ||||||||||||||||||
Home equity lines of credit | 35 | 0 | 280 | 315 | 26,133 | 26,448 | ||||||||||||||||||
Consumer | ||||||||||||||||||||||||
Indirect | 2,004 | 539 | 402 | 2,945 | 121,935 | 124,880 | ||||||||||||||||||
Direct | 204 | 31 | 58 | 293 | 9,944 | 10,237 | ||||||||||||||||||
Other | 63 | 6 | 10 | 79 | 2,952 | 3,031 | ||||||||||||||||||
Total | $ | 2,941 | $ | 717 | $ | 9,077 | $ | 12,735 | $ | 617,949 | $ | 630,684 | ||||||||||||
Troubled Debt Restructurings: | ||||||||||||||||||||||||
Total troubled debt restructurings were $8.1 million and $8.3 million at December 31, 2014 and 2013 respectively. The Company has allocated $242 thousand and $397 thousand of specific reserves to customers whose loan terms have been modified in troubled debt restructurings as of December 31, 2014 and 2013. There are $25 thousand and $16 thousand in commitments to lend additional amounts to borrowers with loans that were classified as troubled debt restructurings at December 31, 2014 and 2013. | ||||||||||||||||||||||||
During the years ending December 31, 2014, 2013 and 2012, the terms of certain loans were modified as troubled debt restructurings. The modification of the terms of such loans included one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; a permanent reduction of the recorded investment in the loan; a permanent increase of the recorded investment in the loan due to a protective advance to pay delinquent real estate taxes or advance new monies; a deferral of principal payments; or a legal concession. | ||||||||||||||||||||||||
Troubled debt restructuring modifications involved a reduction of the notes stated interest rate in the range of 0.25% to 3.25%. There were also extensions of the maturity dates on these and other troubled debt restructurings in the range of fifteen months to 126 months. | ||||||||||||||||||||||||
The following tables present loans by class modified as troubled debt restructurings that occurred during the years ending December 31, 2014, 2013 and 2012: | ||||||||||||||||||||||||
Pre-Modification | Post-Modification | |||||||||||||||||||||||
Number of | Outstanding Recorded | Outstanding Recorded | ||||||||||||||||||||||
31-Dec-14 | Loans | Investment | Investment | |||||||||||||||||||||
Troubled Debt Restructurings: | ||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||
Owner occupied | 1 | $ | 303 | $ | 316 | |||||||||||||||||||
Non-owner occupied | 2 | 408 | 408 | |||||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||
1-4 family residential | 21 | 1,042 | 1,059 | |||||||||||||||||||||
Home equity lines of credit | 5 | 128 | 128 | |||||||||||||||||||||
Indirect | 2 | 37 | 37 | |||||||||||||||||||||
Consumer | 1 | 11 | 11 | |||||||||||||||||||||
Total | 32 | $ | 1,929 | $ | 1,959 | |||||||||||||||||||
The troubled debt restructurings described above increased the allowance for loan losses by $11 thousand and resulted in charge offs of $42 thousand during the year ended December 31, 2014. | ||||||||||||||||||||||||
Pre-Modification | Post-Modification | |||||||||||||||||||||||
Number of | Outstanding Recorded | Outstanding Recorded | ||||||||||||||||||||||
31-Dec-13 | Loans | Investment | Investment | |||||||||||||||||||||
Troubled Debt Restructurings: | ||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||
Owner occupied | 2 | $ | 226 | $ | 239 | |||||||||||||||||||
Commercial | 5 | 649 | 682 | |||||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||
1-4 family residential | 4 | 131 | 98 | |||||||||||||||||||||
Home equity lines of credit | 5 | 214 | 214 | |||||||||||||||||||||
Indirect | 24 | 188 | 188 | |||||||||||||||||||||
Consumer | 1 | 1 | 1 | |||||||||||||||||||||
Total | 41 | $ | 1,409 | $ | 1,422 | |||||||||||||||||||
The troubled debt restructurings described above increased the allowance for loan losses by $66 thousand and resulted in charge offs of $50 thousand during the year ended December 31, 2013. | ||||||||||||||||||||||||
Pre-Modification | Post-Modification | |||||||||||||||||||||||
Number of | Outstanding Recorded | Outstanding Recorded | ||||||||||||||||||||||
31-Dec-12 | Loans | Investment | Investment | |||||||||||||||||||||
Troubled Debt Restructurings: | ||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||
Owner occupied | 3 | $ | 1,143 | $ | 1,166 | |||||||||||||||||||
Non-owner occupied | 3 | $ | 2,376 | $ | 2,419 | |||||||||||||||||||
Commercial | 3 | 1,072 | 1,098 | |||||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||
1-4 family residential | 7 | 508 | 540 | |||||||||||||||||||||
Total | 16 | $ | 5,099 | $ | 5,223 | |||||||||||||||||||
The troubled debt restructurings described above increased the allowance for loan losses by $306 thousand and resulted in charge offs of $418 thousand during the year ended December 31, 2012. | ||||||||||||||||||||||||
There were four residential real estate loans for which there were payment defaults within twelve months following the modification of the troubled debt restructuring during the year ending December 31, 2014. Only one of the four loans was past due at December 31, 2014. There was no effect on the provision for loan losses as a result of this default during 2014. | ||||||||||||||||||||||||
There were two commercial loans for $204 thousand, one commercial real estate loan for $205 thousand and one residential real estate loan for $35 thousand modified as troubled debt restructuring for which there were payment defaults within twelve months following the modification during the year ending December 31, 2013. All four loans were past due at December 31, 2013. There was one indirect loan modified as troubled debt restructuring for which there were payment defaults within twelve months following the modification during the year ending December 31, 2013. The loan was not past due at December 31, 2013. There was no additional provision or any impact to the allowance for losses associated with these loans. | ||||||||||||||||||||||||
There were no loans that were modified as troubled debt restructuring for which there was a payment default within twelve months following the modification during the year ending December 31, 2012. A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms. | ||||||||||||||||||||||||
Credit Quality Indicators: | ||||||||||||||||||||||||
The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company establishes a risk rating at origination for all commercial loan and commercial real estate relationships. For relationships over $750 thousand management monitors the loans on an ongoing basis for any changes in the borrower’s ability to service their debt. Management also affirms the risk ratings for the loans and leases in their respective portfolios on an annual basis. The Company uses the following definitions for risk ratings: | ||||||||||||||||||||||||
Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. | ||||||||||||||||||||||||
Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. | ||||||||||||||||||||||||
Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. | ||||||||||||||||||||||||
Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. | ||||||||||||||||||||||||
Based on the most recent analysis performed, the risk category of loans by class of loans is as follows: | ||||||||||||||||||||||||
31-Dec-14 | Pass | Special Mention | Substandard | Doubtful | Not Rated | Total | ||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||
Owner occupied | $ | 66,036 | $ | 2,534 | $ | 6,061 | $ | 0 | $ | 0 | $ | 74,631 | ||||||||||||
Non-owner occupied | 115,159 | 3,760 | 2,994 | 0 | 0 | 121,913 | ||||||||||||||||||
Other | 25,710 | 0 | 319 | 0 | 0 | 26,029 | ||||||||||||||||||
Commercial | 114,409 | 1,566 | 4,175 | 0 | 0 | 120,150 | ||||||||||||||||||
Total | $ | 321,314 | $ | 7,860 | $ | 13,549 | $ | 0 | $ | 0 | $ | 342,723 | ||||||||||||
31-Dec-13 | Pass | Special Mention | Substandard | Doubtful | Not Rated | Total | ||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||
Owner occupied | $ | 72,398 | $ | 7,312 | $ | 6,209 | $ | 0 | $ | 0 | $ | 85,919 | ||||||||||||
Non-owner occupied | 96,065 | 7,877 | 3,225 | 0 | 0 | 107,167 | ||||||||||||||||||
Other | 23,935 | 0 | 341 | 0 | 0 | 24,276 | ||||||||||||||||||
Commercial | 99,022 | 2,313 | 3,688 | 0 | 0 | 105,023 | ||||||||||||||||||
Total | $ | 291,420 | $ | 17,502 | $ | 13,463 | $ | 0 | $ | 0 | $ | 322,385 | ||||||||||||
The Company considers the performance of the loan portfolio and its impact on the allowance for loan losses. For residential, consumer and indirect loan classes, the Company also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment in residential, consumer and indirect auto loans based on payment activity. Nonperforming loans are loans past due 90 days and still accruing interest and nonaccrual loans. | ||||||||||||||||||||||||
Residential Real Estate | Consumer | |||||||||||||||||||||||
1-4 Family Residential | Home Equity Lines of Credit | Indirect | Direct | Other | ||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
Performing | $ | 149,661 | $ | 31,076 | $ | 124,296 | $ | 9,035 | $ | 3,625 | ||||||||||||||
Nonperforming | 2,937 | 179 | 283 | 36 | 1 | |||||||||||||||||||
Total | $ | 152,598 | $ | 31,255 | $ | 124,579 | $ | 9,071 | $ | 3,626 | ||||||||||||||
Residential Real Estate | Consumer | |||||||||||||||||||||||
1-4 Family Residential | Home Equity Lines of Credit | Indirect | Direct | Other | ||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Performing | $ | 140,593 | $ | 26,168 | $ | 124,478 | $ | 10,179 | $ | 3,021 | ||||||||||||||
Nonperforming | 3,110 | 280 | 402 | 58 | 10 | |||||||||||||||||||
Total | $ | 143,703 | $ | 26,448 | $ | 124,880 | $ | 10,237 | $ | 3,031 | ||||||||||||||
Fair_Value
Fair Value | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||
Fair Value | NOTE 4 - FAIR VALUE | |||||||||||||||||||
Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: | ||||||||||||||||||||
Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. | ||||||||||||||||||||
Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. | ||||||||||||||||||||
Level 3 – Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. | ||||||||||||||||||||
The Company used the following methods and significant assumptions to estimate the fair value of each type of financial instrument: | ||||||||||||||||||||
Investment Securities | ||||||||||||||||||||
The Company used a third party service to estimate fair value on available for sale securities on a monthly basis. This service provider is considered a leading evaluation pricing service for U.S. domestic fixed income securities. They subscribe to multiple third-party pricing vendors, and supplement that information with matrix pricing methods. The fair values for investment securities are determined by quoted market prices in active markets, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on quoted prices for similar assets in active markets, quoted prices for similar assets in markets that are not active or inputs other than quoted prices, which provide a reasonable basis for fair value determination. Such inputs may include interest rates and yield curves, volatilities, prepayment speeds, credit risks and default rates. Inputs used are derived principally from observable market data (Level 2). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). The fair values of Level 3 investment securities are determined by using unobservable inputs to measure fair value of assets for which there is little, if any market activity at the measurement date, using reasonable inputs and assumptions based on the best information at the time, to the extent that inputs are available without undue cost and effort. For the years ended December 31, 2014 and 2013 the fair value of Level 3 investment securities was immaterial. | ||||||||||||||||||||
Derivative Instruments | ||||||||||||||||||||
The fair values of derivative instruments are based on valuation models using observable market data as of the measurement date (Level 2). | ||||||||||||||||||||
Impaired Loans | ||||||||||||||||||||
At the time loans are considered impaired, collateral dependent impaired loans are valued at the lower of cost or fair value and non-collateral dependent loans are valued based on discounted cash flows. Impaired loans carried at fair value generally receive specific allocations of the allowance for loan losses. For collateral dependent loans fair value is commonly based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly. | ||||||||||||||||||||
Other Real Estate Owned | ||||||||||||||||||||
Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair values are commonly based on recent real estate appraisals. These appraisals may use a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. | ||||||||||||||||||||
Appraisals for both collateral-dependent impaired loans and other real estate owned are performed by certified general appraisers (for commercial and commercial real estate properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, a member of the Appraisal Department reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with via independent data sources such as recent market data or industry-wide statistics. On an annual basis, the Company compares the actual selling price of collateral that has been sold to the most recent appraised value to determine what adjustments should be made to appraisals to arrive at fair value. | ||||||||||||||||||||
Assets measured at fair value on a recurring basis are summarized below: | ||||||||||||||||||||
Fair Value Measurements at December 31, 2014 Using: | ||||||||||||||||||||
Carrying Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||
Financial Assets | ||||||||||||||||||||
Investment securities available-for sale | ||||||||||||||||||||
U.S Treasury and U.S. government sponsored entities | $ | 24,821 | $ | 0 | $ | 24,821 | $ | 0 | ||||||||||||
State and political subdivisions | 91,881 | 0 | 91,881 | 0 | ||||||||||||||||
Corporate bonds | 931 | 0 | 931 | 0 | ||||||||||||||||
Mortgage-backed securities-residential | 224,362 | 0 | 224,352 | 10 | ||||||||||||||||
Collateralized mortgage obligations | 25,175 | 0 | 25,175 | 0 | ||||||||||||||||
Small Business Administration | 22,419 | 0 | 22,419 | 0 | ||||||||||||||||
Equity securities | 240 | 240 | 0 | 0 | ||||||||||||||||
Total investment securities | $ | 389,829 | $ | 240 | $ | 389,579 | $ | 10 | ||||||||||||
Yield maintenance provisions | $ | 638 | $ | 0 | $ | 638 | $ | 0 | ||||||||||||
Financial Liabilities | ||||||||||||||||||||
Interest rate swaps | $ | 638 | $ | 0 | $ | 638 | $ | 0 | ||||||||||||
Fair Value Measurements at December 31, 2013 Using: | ||||||||||||||||||||
Carrying Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs | |||||||||||||||||
(Level 3) | ||||||||||||||||||||
Financial Assets | ||||||||||||||||||||
Investment securities available-for sale | ||||||||||||||||||||
U.S Treasury and U.S. government sponsored entities | $ | 51,310 | $ | 0 | $ | 51,310 | $ | 0 | ||||||||||||
State and political subdivisions | 94,734 | 0 | 94,734 | 0 | ||||||||||||||||
Corporate bonds | 1,525 | 0 | 1,525 | 0 | ||||||||||||||||
Mortgage-backed securities-residential | 222,980 | 0 | 222,970 | 10 | ||||||||||||||||
Collateralized mortgage obligations | 28,676 | 0 | 28,676 | 0 | ||||||||||||||||
Small Business Administration | 23,573 | 0 | 23,573 | 0 | ||||||||||||||||
Equity securities | 187 | 187 | 0 | 0 | ||||||||||||||||
Total investment securities | $ | 422,985 | $ | 187 | $ | 422,788 | $ | 10 | ||||||||||||
Yield maintenance provisions | $ | 275 | $ | 0 | $ | 275 | $ | 0 | ||||||||||||
Financial Liabilities | ||||||||||||||||||||
Interest rate swaps | $ | 275 | $ | 0 | $ | 275 | $ | 0 | ||||||||||||
There were no significant transfers between Level 1 and Level 2 during 2014 or 2013. | ||||||||||||||||||||
The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the period ended December 31: | ||||||||||||||||||||
Investment Securities | ||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||
(level 3) | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Beginning Balance | $ | 10 | $ | 11 | $ | 12 | ||||||||||||||
Total unrealized gains or losses: | ||||||||||||||||||||
Included in other comprehensive income | 0 | 0 | 0 | |||||||||||||||||
Repayments | 0 | (1 | ) | (1 | ) | |||||||||||||||
Transfers in and/or out of Level 3 | 0 | 0 | 0 | |||||||||||||||||
Ending Balance | $ | 10 | $ | 10 | $ | 11 | ||||||||||||||
There is no impact to earnings as a result of fair value measurements on items valued on a recurring basis, using level 3 inputs. | ||||||||||||||||||||
Assets Measured on a Non-Recurring Basis | ||||||||||||||||||||
Assets measured at fair value on a non-recurring basis are summarized below: | ||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||
at December 31, 2014 Using: | ||||||||||||||||||||
Carrying Value | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Financial Assets | ||||||||||||||||||||
Impaired loans | ||||||||||||||||||||
Commercial | $ | 807 | $ | 0 | $ | 0 | $ | 807 | ||||||||||||
1–4 family residential | 63 | 0 | 0 | 63 | ||||||||||||||||
Other real estate owned | ||||||||||||||||||||
Commercial real estate | 45 | 0 | 0 | 45 | ||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||
at December 31, 2013 Using: | ||||||||||||||||||||
Carrying Value | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Financial Assets | ||||||||||||||||||||
Impaired loans | ||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||
Owner occupied | $ | 962 | $ | 0 | $ | 0 | $ | 962 | ||||||||||||
Non-owner occupied | 391 | 0 | 0 | 391 | ||||||||||||||||
Commercial | 1,575 | 0 | 0 | 1,575 | ||||||||||||||||
1–4 family residential | 577 | 0 | 0 | 577 | ||||||||||||||||
Home equity lines of credit | 174 | 0 | 0 | 174 | ||||||||||||||||
Consumer Indirect | 142 | 0 | 0 | 142 | ||||||||||||||||
Consumer direct | 22 | 0 | 0 | 22 | ||||||||||||||||
Other real estate owned | ||||||||||||||||||||
1–4 family residential | 33 | 0 | 0 | 33 | ||||||||||||||||
Impaired loans carried at fair value that are measured for impairment using the fair value of the collateral had a principal balance of $988 thousand, with a valuation allowance of $117 thousand at December 31, 2014, resulting in an additional provision for loan losses of $992 thousand for the year ending December 31, 2014. At December 31, 2013, impaired loans had a carrying amount of $4.2 million, with a valuation allowance of $363 thousand. Loans measured at fair value throughout the year resulted in an additional provision for loan losses of $916 thousand for the year ending December 31, 2013. Excluded from the fair value of impaired loans, at December 31, 2014 and 2013, discussed above are $4.2 million and $3.0 million of loans with specific allowance amounts allocated and classified as troubled debt restructurings and measured using the present value of discounted cash flows, which are not carried at fair value. | ||||||||||||||||||||
Impaired commercial real estate loans, both owner occupied and non-owner occupied are valued by independent external appraisals. These external appraisals are prepared using the sales comparison approach and income approach valuation techniques. Management makes subsequent unobservable adjustments to the impaired loan appraisals. Impaired loans other than commercial real estate and other real estate owned are not considered material. | ||||||||||||||||||||
The following table presents quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at year ended 2014 and 2013: | ||||||||||||||||||||
31-Dec-14 | Fair value | Valuation Technique(s) | Unobservable Input(s) | Range | ||||||||||||||||
(Weighted Average) | ||||||||||||||||||||
Impaired loans | ||||||||||||||||||||
Commercial | $ | 807 | Sales comparison | Adjustment for differences between comparable sales | -0.6029 | |||||||||||||||
-9.96% | ||||||||||||||||||||
Residential | 63 | Sales comparison | Adjustment for differences between comparable sales | -0.4248 | ||||||||||||||||
(-14.02)% | ||||||||||||||||||||
Other real estate owned | 45 | Sales comparison | Adjustment for differences between comparable sales | -0.2483 | ||||||||||||||||
(-5.79)% | ||||||||||||||||||||
31-Dec-13 | Fair value | Valuation Technique(s) | Unobservable Input(s) | Range | ||||||||||||||||
(Weighted Average) | ||||||||||||||||||||
Impaired loans | ||||||||||||||||||||
Commercial real estate | $ | 1,237 | Sales comparison | Adjustment for differences between comparable sales | -1.1884 | |||||||||||||||
(-7.82%) | ||||||||||||||||||||
116 | Income approach | Adjustment for differences in net operating income | -0.2657 | |||||||||||||||||
(-5.96%) | ||||||||||||||||||||
Commercial | 1,575 | Sales comparison | Adjustment for differences between comparable sales | -0.5859 | ||||||||||||||||
-17.42% | ||||||||||||||||||||
Residential | 751 | Sales comparison | Adjustment for differences between comparable sales | -0.7026 | ||||||||||||||||
(-7.00%) | ||||||||||||||||||||
Consumer | 164 | Sales comparison | Adjustment for differences between comparable sales | -0.58 | ||||||||||||||||
0.00% | ||||||||||||||||||||
Other real estate owned measured at fair value less costs to sell, had a net carrying amount of $45 thousand at December 31, 2014. The Company sold ten other real estate owned properties during the year ended December 31, 2014. The Company recorded $5 thousand in write downs on one other real estate owned properties during the year ended December 31, 2014. At December 31, 2013, other real estate owned had a net carrying amount of $33 thousand. During the year ended December 31, 2013 three properties were charged down reflecting updated appraisals which resulted in a write-down of $21 thousand. | ||||||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||||||
The carrying amounts and estimated fair values of financial instruments measured on a recurring basis and not previously presented, at December 31, 2014 and December 31, 2013 are as follows: | ||||||||||||||||||||
Fair Value Measurements at December 31, 2014 Using: | ||||||||||||||||||||
Carrying Amount | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Financial assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 27,428 | $ | 11,410 | $ | 16,018 | $ | 0 | $ | 27,428 | ||||||||||
Restricted stock | 4,224 | n/a | n/a | n/a | n/a | |||||||||||||||
Loans held for sale | 511 | 0 | 523 | 0 | 523 | |||||||||||||||
Loans, net | 656,220 | 0 | 0 | 658,993 | 658,993 | |||||||||||||||
Accrued interest receivable | 3,237 | 0 | 1,645 | 1,592 | 3,237 | |||||||||||||||
Financial liabilities | ||||||||||||||||||||
Deposits | 915,703 | 708,752 | 206,708 | 0 | 915,460 | |||||||||||||||
Short-term borrowings | 59,136 | 0 | 59,136 | 0 | 59,136 | |||||||||||||||
Long-term borrowings | 28,381 | 0 | 28,837 | 0 | 28,837 | |||||||||||||||
Accrued interest payable | 402 | 2 | 400 | 0 | 402 | |||||||||||||||
Fair Value Measurements at December 31, 2013 Using: | ||||||||||||||||||||
Carrying Amount | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Financial assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 27,513 | $ | 12,957 | $ | 14,556 | $ | 0 | $ | 27,513 | ||||||||||
Restricted stock | 4,224 | n/a | n/a | n/a | n/a | |||||||||||||||
Loans held for sale | 158 | 0 | 161 | 0 | 161 | |||||||||||||||
Loans, net | 623,116 | 0 | 0 | 623,875 | 623,875 | |||||||||||||||
Accrued interest receivable | 3,399 | 0 | 1,844 | 1,555 | 3,399 | |||||||||||||||
Financial liabilities | ||||||||||||||||||||
Deposits | 915,216 | 688,470 | 228,116 | 0 | 916,586 | |||||||||||||||
Short-term borrowings | 81,617 | 0 | 81,617 | 0 | 81,617 | |||||||||||||||
Long-term borrowings | 19,822 | 0 | 20,526 | 0 | 20,526 | |||||||||||||||
Accrued interest payable | 447 | 2 | 445 | 0 | 447 | |||||||||||||||
The methods and assumptions used to estimate fair value, not previously described, are described as follows: | ||||||||||||||||||||
Cash and Cash Equivalents: The carrying amounts of cash and short-term instruments approximate fair values and are classified as either Level 1 or Level 2. The Company has determined that cash on hand and non-interest bearing due from bank accounts are Level 1 whereas interest bearing federal funds sold and other are Level 2. | ||||||||||||||||||||
Restricted Stock: It is not practical to determine the fair value of restricted stock due to restrictions placed on its transferability. | ||||||||||||||||||||
Loans: Fair values of loans, excluding loans held for sale, are estimated as follows: For variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values resulting in a Level 3 classification. Fair values for other loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality resulting in a Level 3 classification. Impaired loans are valued at the lower of cost or fair value as described previously. The methods utilized to estimate the fair value of loans do not necessarily represent an exit price. | ||||||||||||||||||||
Loans held for sale: The fair value of loans held for sale is estimated based upon the average of binding contracts and quotes from third party investors resulting in a Level 2 classification. | ||||||||||||||||||||
Accrued Interest Receivable/Payable: The carrying amounts of accrued interest receivable and payable approximate fair value resulting in a Level l, Level 2, or Level 3 classification. The classification is the result of the association with securities, loans and deposits. | ||||||||||||||||||||
Deposits: The fair values disclosed for demand deposits – interest and non-interest checking, passbook savings, and money market accounts—are, by definition, equal to the amount payable on demand at the reporting date resulting in a Level 1 classification. The carrying amounts of variable rate certificates of deposit approximate their fair values at the reporting date resulting Level 2 classification. Fair value for fixed rate certificates of deposit are estimated using a discounted cash flows calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits resulting in a Level 2 classification. | ||||||||||||||||||||
Short-term Borrowings: The carrying amounts of federal funds purchased, borrowings under repurchase agreements, and other short-term borrowings, generally maturing within ninety days, approximate their fair values resulting in a Level 2 classification. | ||||||||||||||||||||
Long-term Borrowings: The fair values of the Company’s long-term borrowings are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements resulting in a Level 2 classification. | ||||||||||||||||||||
Off-balance Sheet Instruments: The fair value of commitments is not considered material. |
Premises_and_Equipment
Premises and Equipment | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Text Block [Abstract] | |||||||
Premises and Equipment | NOTE 5—PREMISES AND EQUIPMENT | ||||||
Year-end premises and equipment were as follows: | |||||||
2014 | 2013 | ||||||
Land | $ | 3,143 | $ | 3,086 | |||
Buildings | 20,842 | 20,293 | |||||
Furniture, fixtures and equipment | 11,651 | 11,294 | |||||
Leasehold Improvements | 247 | 254 | |||||
35,883 | 34,927 | ||||||
Less accumulated depreciation | (18,834 | ) | (17,740 | ) | |||
NET BOOK VALUE | $ | 17,049 | $ | 17,187 | |||
Depreciation expense was $1.1 million for year ended December 31, 2014 and $1.2 million for years ended December 31, 2013 and 2012. | |||||||
During 2014, the Company purchased property located adjacent to its Canfield branch on South Broad Street in Canfield, for $395 thousand to house some investment, insurance and mortgage lending activities. The building was put into service in June 2014. | |||||||
With declining branch transaction counts and banking trends driving customers towards online banking the decision was made to close two retail branch locations in Leetonia and Warren, Ohio. The two branches were closed on October 1, 2013. One property, recently valued at $45 thousand, has been moved to Other Real Estate Owned while the other is still providing ATM service and remains in service as part of premises and equipment. The Company is currently marketing the properties for sale. | |||||||
The Company leases certain branch properties under operating leases. Rent expense was $323, $302, and $265 thousand for 2014, 2013 and 2012. In addition to rent expense, under the leases, common area maintenance and property taxes are paid and the amount can fluctuate according to the costs incurred. Rent commitments, before considering renewal options that generally are present, were as follows: | |||||||
$ | 274 | ||||||
2015 | |||||||
2016 | 210 | ||||||
2017 | 219 | ||||||
2018 | 202 | ||||||
2019 | 194 | ||||||
Thereafter | 515 | ||||||
TOTAL | $ | 1,614 | |||||
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ||||||||||||||||
Goodwill and Intangible Assets | NOTE 6—GOODWILL AND INTANGIBLE ASSETS | |||||||||||||||
Goodwill associated with the Company’s purchase of National Associates, Inc. in July of 2013 and Farmers Trust Company in 2009 totaled $5.6 million at December 31, 2014 and $6.4 million at December 31, 2013. The NAI acquisition is more fully described in Note 16. Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value, which is determined through a two-step impairment test. Step 1 includes the determination of the carrying value of the reporting units, including the existing goodwill and intangible assets, and estimating the fair value of the reporting units. After our annual impairment analysis as of September 30, 2014, the Company determined the fair value of Farmers Trust Company exceeded its carrying amount; however, the fair value of NAI was less than its carrying value. When the carrying amount of a reporting unit exceeds its fair value, a second step to the impairment test is required. The analysis indicated that the Step 2 analysis was necessary for the National Associates, Inc. entity. Step 2 of the goodwill impairment test is performed to measure the impairment loss. Step 2 requires that the implied fair value of the reporting unit’s goodwill be compared to the carrying amount of that goodwill. If the carrying amount of the reporting unit’s goodwill exceeds the implied fair value of that goodwill, an impairment loss shall be recognized in an amount equal to that excess. After performing Step 2 it was determined that the implied value of goodwill was less than the carrying costs, resulting in an impairment charge of $763 thousand for the year ended December 31, 2014. During the initial valuation of the newly acquired entity the future income projections were not fully attained. The fair value of the reporting unit was determined based on a discounted cash flow model. Additionally, the $763 thousand impairment was offset with an equal reduction of the future payment liability associated with the purchase. The two adjustments offset resulting in a zero impact to the Company’s consolidated statements of income for year ended December 31, 2014. | ||||||||||||||||
Acquired Intangible Assets | ||||||||||||||||
Acquired intangible assets were as follows at year end: | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | |||||||||||||
Amortized intangible assets: | ||||||||||||||||
Customer relationship intangibles | $ | 5,970 | $ | (2,972 | ) | $ | 5,970 | $ | (2,262 | ) | ||||||
Non-compete contracts | 370 | (295 | ) | 370 | (265 | ) | ||||||||||
Trade Name | 190 | (41 | ) | 190 | (14 | ) | ||||||||||
Total | $ | 6,530 | $ | (3,308 | ) | $ | 6,530 | $ | (2,541 | ) | ||||||
Aggregate amortization expense was $767 thousand, $624 thousand, and $409 thousand for 2014, 2013, and 2012. | ||||||||||||||||
Estimated amortization expense for each of the next five years: | ||||||||||||||||
2015 | $ | 667 | ||||||||||||||
2016 | 580 | |||||||||||||||
2017 | 494 | |||||||||||||||
2018 | 410 | |||||||||||||||
2019 | 334 | |||||||||||||||
Thereafter | 737 | |||||||||||||||
TOTAL | $ | 3,222 | ||||||||||||||
Interest_Bearing_Deposits
Interest Bearing Deposits | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Interest Bearing Deposits [Abstract] | |||||||
Interest Bearing Deposits | NOTE 7 - INTEREST BEARING DEPOSITS | ||||||
Time deposits of $250 thousand or more were $26.3 million and $22.0 million at year-end 2014 and 2013. | |||||||
Following is a summary of scheduled maturities of certificates of deposit during the years following December 31, 2013: | |||||||
2015 | 103,868 | ||||||
2016 | 44,741 | ||||||
2017 | 16,913 | ||||||
2018 | 11,443 | ||||||
2019 | 19,933 | ||||||
Thereafter | 10,053 | ||||||
TOTAL | $ | 206,951 | |||||
Following is a summary of year-end interest bearing deposits: | |||||||
2014 | 2013 | ||||||
Demand | $ | 126,456 | $ | 124,660 | |||
Money Market | 266,040 | 285,464 | |||||
Savings | 131,559 | 122,453 | |||||
Certificates of Deposit | 206,951 | 226,746 | |||||
TOTAL | $ | 731,006 | $ | 759,323 | |||
Securities_Sold_under_Agreemen
Securities Sold under Agreements to Repurchase and Other Short-Term Borrowings | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||
Securities Sold under Agreements to Repurchase and Other Short-Term Borrowings | NOTE 8 - SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND | ||||||||||||||
OTHER SHORT-TERM BORROWINGS | |||||||||||||||
Securities sold under repurchase agreements are secured by the Bank’s holdings of debt securities issued by U.S. government sponsored entities and agencies with a carrying amount of $147.8 million and $152.4 million at year ended 2014 and 2013. | |||||||||||||||
Repurchase agreements are financing arrangements that mature within 89 days and usually overnight. Under the agreements, customers agree to maintain funds on deposit with the Bank and in return acquire an interest in a pool of securities pledged as collateral against the funds. The securities are held in segregated safekeeping accounts at the Federal Reserve Bank and Farmers Trust Company. Information concerning securities sold under agreements to repurchase is summarized as follows: | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Average balance during the year | $ | 71,573 | $ | 90,951 | $ | 93,149 | |||||||||
Average interest rate during the year | 0.04 | % | 0.04 | % | 0.08 | % | |||||||||
Maximum month-end balance during the year | $ | 78,972 | $ | 100,462 | $ | 98,531 | |||||||||
Weighted average year-end interest rate | 0.06 | % | 0.06 | % | 0.07 | % | |||||||||
Balance at year-end | $ | 58,786 | $ | 75,267 | $ | 79,536 | |||||||||
The Bank has access to lines of credit amounting to $24.5 million at two major domestic banks that are below prime rate. The lines and terms are periodically reviewed by the banks and are generally subject to withdrawal at their discretion. There were no borrowings under these lines at December 31, 2014. At December 31, 2013 the Bank had drawn $6 million against the lines and repaid the full amount during January of 2014. | |||||||||||||||
Farmers National Banc Corp has an unsecured $1.5 million revolving line of credit. The line can be renewed annually. The outstanding balance was $350 thousand at December 31, 2014 and 2013. The interest rate is prime with a floor of 4.5%. The interest rate at December 31, 2014 and 2013 was 4.5%. During 2014, Farmers National Banc Corp added an unsecured $5 million line of credit with another banking institution. The line can be renewed annually and has not been drawn upon. The interest rate is prime with a floor of 3.5%. |
Federal_Home_Loan_Bank_Advance
Federal Home Loan Bank Advances and Other Long-Term Borrowings | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Advances From Federal Home Loan Banks [Abstract] | ||||||||||||||
Federal Home Loan Bank Advances and Other Long-term Borrowings | NOTE 9 - FEDERAL HOME LOAN BANK ADVANCES AND OTHER LONG-TERM BORROWINGS | |||||||||||||
At year end, long-term advances from the Federal Home Loan Bank were as follows: | ||||||||||||||
2014 | 2013 | |||||||||||||
Weighted | Weighted | |||||||||||||
Average | Average | |||||||||||||
Amount | Rate | Amount | Rate | |||||||||||
Fixed-rate constant payment advances, at rates from 1.70% to 4.88% at December 31, 2014 and 2013 | $ | 8,381 | 1.72 | % | $ | 9,822 | 1.74 | % | ||||||
Convertible and putable fixed-rate advances, at rates from 2.82% to 4.45% at December 31, 2014 and 2013 | 10,000 | 3.64 | % | 10,000 | 3.64 | % | ||||||||
Cash management advance with a variable rate of .26% at December 31, 2014 | 10,000 | 0.26 | % | 0 | 0 | % | ||||||||
Total advances | $ | 28,381 | 1.87 | % | $ | 19,822 | 2.7 | % | ||||||
During December of 2014, the Bank received a variable rate cash management advance from FHLB in the amount of $10 million that can be renewed quarterly. The Bank also has a total of $10 million in putable FHLB fixed-rate advances. Should the FHLB elect the put, the Bank is required to repay the advance on that date without penalty. | ||||||||||||||
Federal Home Loan Bank advances are secured by a blanket pledge of residential mortgage loans totaling $110.3 million and $104.4 million at year end 2014 and 2013. Based on this collateral the Bank is eligible to borrow an additional $81.9 million at year end 2014. Each advance is subject to a prepayment penalty if paid prior to its maturity date. | ||||||||||||||
Scheduled repayments of long-term FHLB advances are as follows: | ||||||||||||||
Maturing in: | ||||||||||||||
2015 | $ | 16,398 | ||||||||||||
2016 | 1,176 | |||||||||||||
2017 | 6,089 | |||||||||||||
2018 | 1,008 | |||||||||||||
2019 | 931 | |||||||||||||
Thereafter | 2,779 | |||||||||||||
TOTAL | $ | 28,381 | ||||||||||||
Commitments_and_Contingent_Lia
Commitments and Contingent Liabilities | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Commitments And Contingencies Disclosure [Abstract] | ||||||||||||||||
Commitments and Contingent Liabilities | NOTE 10 - COMMITMENTS AND CONTINGENT LIABILITIES | |||||||||||||||
Some financial instruments, such as loan commitments, credit lines, letters of credit and overdraft protection, are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used. Off-balance-sheet risk to credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment. | ||||||||||||||||
The contractual amounts of financial instruments with off-balance-sheet risk at year end were as follows: | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Fixed | Variable | Fixed | Variable | |||||||||||||
Rate | Rate | Rate | Rate | |||||||||||||
Commitments to make loans | $ | 471 | $ | 1,881 | $ | 4,373 | $ | 8,722 | ||||||||
Unused lines of credit | $ | 108,382 | $ | 39,205 | $ | 87,562 | $ | 33,351 | ||||||||
Commitments to make loans are generally made for periods of 30 days or less. The fixed rate loan commitments for 2014 have interest rates that range from 4.00% to 4.63% and mature within thirty years. The fixed rate loan commitments for 2013 have interest rates of 4.50% and mature between ten and twelve years. Fixed rate unused lines of credit have interest rates ranging from 2.11% to 13.50% at December 31, 2014 and 2.16% to 13.50% at December 31, 2013. | ||||||||||||||||
Standby letters of credit are considered financial guarantees. The standby letters of credit have a contractual value of $5.2 million at December 31, 2014 and $4.9 million at December 31, 2013. The carrying amount of these items on the balance sheet is not material. |
Stock_Based_Compensation
Stock Based Compensation | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||||||
Stock Based Compensation | NOTE 11 - STOCK BASED COMPENSATION | |||||||
During 2012, the Company, with the approval of shareholders, created the 2012 Equity Incentive Plan (the “Plan”). The Plan permits the award of up to 500 thousand shares to the Company’s directors and employees to promote the Company’s long-term financial success by motivating performance through long-term incentive compensation and to better align the interests of its employees with those of its shareholders. 46,957 share awards were granted under the Plan during February 2014. The restricted stock awards were granted with an exercise price equal to the market price of the Company’s common stock at the date of grant; these awards have a three year performance period that will end December 31, 2016. Participants will receive the awards based on performance of the Company’s return on equity metrics. Expense recognized for the Plan was $116 thousand during the year ended 2014. As of December 31, 2014, there was $231 thousand of total unrecognized compensation expense related to the nonvested shares granted under the Plan. The remaining cost is expected to be recognized over the next two years. There were no shares awarded or expense recognized during the years ended December 31, 2013 and 2012 under the Plan. | ||||||||
The following is the activity under the Plan during the year ended December 31, 2014: | ||||||||
Restricted Stock Units | ||||||||
Units | Weighted Average Grant Date Fair Value | |||||||
Beginning balance | $ | 0 | $ | 0 | ||||
Granted | 46,957 | 7.39 | ||||||
Vested | 0 | 0 | ||||||
Forfeited | 0 | 0 | ||||||
Ending balance | $ | 46,957 | $ | 7.39 | ||||
The Company’s Stock Option Plan, which was shareholder-approved and has since expired, permitted the grant of share options to its directors, officers and employees for up to 375 thousand shares of common stock. Option awards were granted with an exercise price equal to the market price of the Company’s common stock at the date of grant; those option awards have vesting periods of 5 years and have 10-year contractual terms. During the first quarter of 2014 the last remaining 5,000 outstanding options were exercised and the Company satisfied these options with the reissuance of treasury shares. | ||||||||
There were no options granted under the Stock Option Plan during 2014, 2013 or 2012. |
Regulatory_Matters
Regulatory Matters | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Regulatory Capital Requirements [Abstract] | |||||||||||||||||||||
Regulatory Matters | NOTE 12 - REGULATORY MATTERS | ||||||||||||||||||||
Banks and bank holding companies are subject to various regulatory capital requirements administered by the federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action by regulators that, if undertaken, could have a direct material effect on the financial statements. Management believes as of December 31, 2014, the Company and Bank meet all capital adequacy requirements to which they are subject. | |||||||||||||||||||||
Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If only adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At year-end 2014 and 2013, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category. | |||||||||||||||||||||
Dividend Restrictions: The Corporation’s principal source of funds for dividend payments is dividends received from the Bank and Trust. The Bank and Trust are subject to the dividend restrictions set forth by the Comptroller of the Currency and Ohio Department of Commerce – Division of Financial Institutions, respectively. The respective regulatory agency must approve declaration of any dividends in excess of the sum of profits for the current year and retained net profits for the preceding two years. During 2015, the Bank could, without prior approval, declare dividends of approximately $9.1 million plus any 2015 net profits retained to the date of the dividend declaration. In order to practice trust powers, Trust must maintain a minimum capital of $3 million. The Trust would need regulatory approval to declare dividends in 2015. | |||||||||||||||||||||
Actual and required capital amounts and ratios are presented below at year-end: | |||||||||||||||||||||
Requirement For Capital Adequacy Purposes: | To be Well Capitalized Under Prompt Corrective Action Provisions: | ||||||||||||||||||||
Actual | |||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||
2014 | |||||||||||||||||||||
Total Capital to risk weighted assets | |||||||||||||||||||||
Consolidated | $ | 121,340 | 16.48 | % | $ | 58,523 | 8 | % | N/A | N/A | |||||||||||
Bank | 114,321 | 15.56 | % | 58,773 | 8 | % | $ | 73,466 | 10 | % | |||||||||||
Tier I Capital to risk weighted assets | |||||||||||||||||||||
Consolidated | 113,654 | 15.43 | % | 29,262 | 4 | % | N/A | N/A | |||||||||||||
Bank | 106,689 | 14.52 | % | 29,386 | 4 | % | 44,079 | 6 | % | ||||||||||||
Tier I Capital to average assets | |||||||||||||||||||||
Consolidated | 113,654 | 10.03 | % | 45,313 | 4 | % | N/A | N/A | |||||||||||||
Bank | 106,689 | 9.37 | % | 45,565 | 4 | % | 56,956 | 5 | % | ||||||||||||
2013 | |||||||||||||||||||||
Total Capital to risk weighted assets | |||||||||||||||||||||
Consolidated | $ | 115,730 | 16.26 | % | $ | 56,950 | 8 | % | N/A | N/A | |||||||||||
Bank | 109,154 | 15.42 | % | 56,638 | 8 | % | $ | 70,798 | 10 | % | |||||||||||
Tier I Capital to risk weighted assets | |||||||||||||||||||||
Consolidated | 108,130 | 15.19 | % | 28,475 | 4 | % | N/A | N/A | |||||||||||||
Bank | 101,586 | 14.35 | % | 28,319 | 4 | % | 42,479 | 6 | % | ||||||||||||
Tier I Capital to average assets | |||||||||||||||||||||
Consolidated | 108,130 | 9.36 | % | 46,185 | 4 | % | N/A | N/A | |||||||||||||
Bank | 101,586 | 8.93 | % | 45,478 | 4 | % | 56,848 | 5 | % | ||||||||||||
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2014 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | NOTE 13 - EMPLOYEE BENEFIT PLANS |
The Company has a qualified 401(k) deferred compensation Retirement Savings Plan. All employees of the Company who have completed at least 90 days of service and meet certain other eligibility requirements are eligible to participate in the Plan. Under the terms of the Plan, employees may voluntarily defer a portion of their annual compensation pursuant to section 401(k) of the Internal Revenue Code. The Company matches a percentage of the participants’ voluntary contributions up to 6% of gross wages. In addition, at the discretion of the Board of Directors, the Company may make an additional profit sharing contribution to the Plan. Total expense was $336 thousand, $336 thousand and $334 thousand for the years ended December 31, 2014, 2013 and 2012, respectively. | |
During 2014 the Company adopted a profit sharing plan to provide associates not participating in a current incentive plan a vehicle for sharing in the success of the Company outside of existing wages and non-monetary benefits. The board of directors has approved a profit sharing amount equal to 1% of annual compensation for associates. The expense was $73 thousand for the year ended December 31, 2014. | |
The Company maintains a deferred compensation plan for certain retirees. Expense under the Plan was $10 thousand, $10 thousand and $13 thousand for the years ended December 31, 2014, 2013 and 2012. The liability under the Plan at December 31, 2014 was $156 thousand and $163 thousand at December 31, 2013. | |
The Company also has a postretirement health care benefit Plan covering individuals retired from the Company that have met certain service and age requirements and certain other active employees that have met similar service requirements. The postretirement health care Plan includes a limit on the Company’s share of costs for recent and future retirees. Expense under this Plan for 2014, 2013 and 2012 was $4 thousand, $13 thousand and $34 thousand. The accrued postretirement benefit liability under this Plan was $314 thousand and $370 thousand at December 31, 2014 and 2013. Due to the immateriality of the Plan, the disclosures required under U.S. generally accepted accounting principles have been omitted. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Income Tax Disclosure [Abstract] | ||||||||||
Income Taxes | NOTE 14 - INCOME TAXES | |||||||||
The provision for income taxes (credit) consists of the following: | ||||||||||
2014 | 2013 | 2012 | ||||||||
Current expense | $ | 2,369 | $ | 874 | $ | 2,042 | ||||
Deferred expense | 263 | 809 | 1,013 | |||||||
TOTALS | $ | 2,632 | $ | 1,683 | $ | 3,055 | ||||
Effective tax rates differ from federal statutory rate of 35% applied to income before income taxes due to the following: | ||||||||||
2014 | 2013 | 2012 | ||||||||
Statutory tax | $ | 4,059 | $ | 3,312 | $ | 4,545 | ||||
Effect of nontaxable interest | (1,179 | ) | (1,325 | ) | (1,203 | ) | ||||
Bank owned life insurance, net | (159 | ) | (123 | ) | (179 | ) | ||||
Effect of nontaxable life insurance death proceeds | 0 | (115 | ) | 0 | ||||||
Other | (89 | ) | (66 | ) | (108 | ) | ||||
ACTUAL TAX | $ | 2,632 | $ | 1,683 | $ | 3,055 | ||||
Deferred tax assets (liabilities) are comprised of the following: | ||||||||||
2014 | 2013 | |||||||||
Deferred tax assets: | ||||||||||
Allowance for credit losses | $ | 2,671 | $ | 2,649 | ||||||
Net unrealized loss on securities available for sale | 0 | 3,005 | ||||||||
Deferred and accrued compensation | 848 | 874 | ||||||||
Deferred loan fees and costs | 515 | 511 | ||||||||
Post-retirement benefits | 110 | 174 | ||||||||
AMT credit carryforward | 0 | 367 | ||||||||
Other | 214 | 258 | ||||||||
Gross deferred tax assets | $ | 4,358 | $ | 7,838 | ||||||
Deferred tax liabilities: | ||||||||||
Depreciation and amortization | $ | (1,081 | ) | $ | (1,082 | ) | ||||
Net unrealized gain on securities available for sale | (523 | ) | 0 | |||||||
Federal Home Loan Bank dividends | (482 | ) | (482 | ) | ||||||
Purchase accounting adjustments | (550 | ) | (684 | ) | ||||||
Other | (38 | ) | (49 | ) | ||||||
Gross deferred tax liabilities | (2,674 | ) | (2,297 | ) | ||||||
NET DEFERRED TAX ASSET | $ | 1,684 | $ | 5,541 | ||||||
No valuation allowance for deferred tax assets was recorded at December 31, 2014 and 2013. | ||||||||||
At December 31, 2014 and December 31, 2013, the Company had no unrecognized tax benefits recorded. The Company does not expect the amount of unrecognized tax benefits to significantly change within the next twelve months. | ||||||||||
The Company paid no penalties for the year ended December 31, 2014 or 2012. The Company paid a $12 thousand penalty for the year ended December 31, 2013. There were no amounts accrued for penalties or interest as of December 31, 2014 or 2013. | ||||||||||
The Company is subject to U.S. federal income tax. The Company is no longer subject to examination by the federal taxing authority for years prior to 2011. The tax years 2011—2013 remain open to examination by the U.S. taxing authority. |
Other_Comprehensive_Income_Los
Other Comprehensive Income (Loss) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Comprehensive Income Net Of Tax [Abstract] | ||||||||||||
Other Comprehensive Income (Loss) | NOTE 15 – OTHER COMPREHENSIVE INCOME (LOSS) | |||||||||||
The following table represents the detail of other comprehensive income (loss) for the years ended December 31, 2014, 2013 and 2012. | ||||||||||||
2014 | ||||||||||||
Pre-tax | Tax | After-Tax | ||||||||||
Unrealized holding gains on available-for-sale securities during the year | $ | 10,486 | $ | (3,670 | ) | $ | 6,816 | |||||
Reclassification adjustment for (gains) losses included in net income (1) | (457 | ) | 160 | (297 | ) | |||||||
Net unrealized gains on available-for-sale securities | 10,029 | (3,510 | ) | 6,519 | ||||||||
Change in funded status of post-retirement health plan | 60 | (21 | ) | 39 | ||||||||
Net other comprehensive income (loss) | $ | 10,089 | $ | (3,531 | ) | $ | 6,558 | |||||
2013 | ||||||||||||
Pre-tax | Tax | After-Tax | ||||||||||
Unrealized holding losses on available-for-sale securities during the year | $ | (19,310 | ) | $ | 6,759 | $ | (12,551 | ) | ||||
Reclassification adjustment for (gains) losses included in net income (1) | (860 | ) | 301 | (559 | ) | |||||||
Net unrealized losses on available-for-sale securities | (20,170 | ) | 7,060 | (13,110 | ) | |||||||
Change in funded status of post-retirement health plan | (3 | ) | 1 | (2 | ) | |||||||
Net other comprehensive income (loss) | $ | (20,173 | ) | $ | 7,061 | $ | (13,112 | ) | ||||
2012 | ||||||||||||
Pre-tax | Tax | After-Tax | ||||||||||
Unrealized holding gains on available-for-sale securities during the year | $ | 307 | $ | (107 | ) | $ | 200 | |||||
Reclassification adjustment for (gains) losses included in net income (1) | (1,059 | ) | 370 | (689 | ) | |||||||
Net unrealized losses on available-for-sale securities | (752 | ) | 263 | (489 | ) | |||||||
Change in funded status of post-retirement health plan | 131 | (46 | ) | 85 | ||||||||
Net other comprehensive income (loss) | $ | (621 | ) | $ | 217 | $ | (404 | ) | ||||
(1) Pre-tax reclassification adjustments relating to available-for-sale securities are reported in security gains and the tax impact is included in income tax expense on the consolidated statements of income. |
Business_Combination
Business Combination | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Business Combinations [Abstract] | |||||||
Business Combination | On July 1, 2013, the Company completed the acquisition of all outstanding stock of the retirement planning consultancy National Associates, Inc. of Cleveland, Ohio. The transaction involved both cash and stock totaling $4.4 million, including up to $1.5 million of future payments, contingent upon NAI meeting income performance targets, with an estimated fair value at the acquisition date of $920 thousand. The contingent consideration of the future payment payable has been adjusted down to $156 thousand based on the September 30, 2014 fair market value estimation. The fair market value of the contingent consideration was determined using the Monte Carlo Simulation. The simulation’s key assumptions included a two year period with an estimated volatility of 20%. Expected EBITDA had a base of 6% with a maximum 12% and a discount rate of 11.9%. The acquisition is part of the Company’s plan to increase the levels of noninterest income and to complement the existing retirement services currently being offered. Acquisition-related costs of $270 thousand were included in the Company’s consolidated statements of income for the year ended December 31, 2013. | ||||||
Goodwill of $2.6 million, which is recorded on the balance sheet of NAI, arising from the acquisition consisted largely of synergies and the cost savings resulting from the combining of the operations of the companies. The goodwill is not expected to be deductible for income tax purposes. The goodwill was partially impaired as described in Note 6, by an amount equal to the reduction in the contingent consideration payable. The two adjustments offset resulting in a zero impact to the Company’s consolidated statements of income for year ended December 31, 2014. After the impairment the NAI goodwill is $1.9 million at December 31, 2014. The fair value of other intangible assets of $2.3 million is related to client relationships, company name and noncompetition agreements. The following table summarizes the consideration paid for NAI and the amounts of the assets acquired and liabilities assumed. | |||||||
Consideration | |||||||
Cash | $ | 2,111 | |||||
Stock | 1,400 | ||||||
Contingent consideration | 920 | ||||||
Fair value of total consideration transferred | $ | 4,431 | |||||
Assets acquired and liabilities assumed | |||||||
Cash | $ | 28 | |||||
Accounts receivable | 300 | ||||||
Premises and equipment | 50 | ||||||
Other assets | 1 | ||||||
Total assets acquired | 379 | ||||||
Liabilities assumed | 81 | ||||||
Net assets acquired | $ | 298 | |||||
Assets and liabilities arising from acquisition | |||||||
Identified intangible assets | 2,290 | ||||||
Deferred tax liability | (802 | ) | |||||
Goodwill | 2,645 | ||||||
Net assets acquired from acquisition | $ | 4,431 | |||||
The following table presents pro forma information as if the acquisition had occurred at the beginning of 2012. The pro forma information includes adjustments for amortization of intangibles arising from the transaction and the related income tax effects. The pro forma financial information is not necessarily indicative of the results of operations that would have occurred had the transactions been effected on the assumed dates. | |||||||
2013 | 2012 | ||||||
Noninterest income | $ | 15,080 | $ | 14,577 | |||
Net income | $ | 7,665 | $ | 9,883 | |||
Basic and diluted earnings per share | $ | 0.41 | $ | 0.53 | |||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Related Party Transactions [Abstract] | |||||
Related Party Transactions | NOTE 17 - RELATED PARTY TRANSACTIONS | ||||
Loans to principal officers, directors, and their affiliates during 2014 were as follows: | |||||
Total loans at December 31, 2013 | $ | 573 | |||
New loans | 0 | ||||
Effect of changes in composition of related parties | 290 | ||||
Repayments | (103 | ) | |||
Total loans at December 31, 2014 | $ | 760 | |||
Deposits from principal officers, directors, and their affiliates at year-end 2014 and 2013 were $1.7 million and $1.6 million. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Earnings Per Share | NOTE 18 – EARNINGS PER SHARE | |||||||||||
The factors used in the earnings per share computation follow: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Basic EPS | ||||||||||||
Net income | $ | 8,965 | $ | 7,780 | $ | 9,932 | ||||||
Weighted average shares outstanding | 18,674,526 | 18,773,491 | 18,791,843 | |||||||||
Basic earnings per share | $ | 0.48 | $ | 0.41 | $ | 0.53 | ||||||
Diluted EPS | ||||||||||||
Net income | $ | 8,965 | $ | 7,780 | $ | 9,932 | ||||||
Weighted average shares out-standing for basic earnings per share | 18,674,526 | 18,773,491 | 18,791,843 | |||||||||
Restricted stock awards | 890 | 0 | 0 | |||||||||
Weighted average shares for diluted earnings per share | 18,675,416 | 18,773,491 | 18,791,843 | |||||||||
Diluted earnings per share | $ | 0.48 | $ | 0.41 | $ | 0.53 | ||||||
Stock options for 5,000 shares of common stock for 2013 and 2012 were not considered in computing diluted earnings per share because they were antidilutive. |
Interest_Rate_Swaps
Interest Rate Swaps | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||||||||||||
Interest Rate Swaps | NOTE 19 – INTEREST RATE SWAPS | |||||||||||
The Company uses a program that utilizes interest-rate swaps as part of its asset/liability management strategy. The interest-rate swaps are used to help manage the Company’s interest rate risk position and not as derivatives for trading purposes. The notional amount of the interest-rate swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest-rate swap agreements. | ||||||||||||
The objective of the interest-rate swaps is to protect the related fixed rate commercial real estate loans from changes in fair value due to changes in interest rates. The Company has a program whereby it lends to its borrowers at a fixed rate with the loan agreement containing a two-way yield maintenance provision, which will be invoked in the event of prepayment of the loan, and is expected to exactly offset the fair value of unwinding the swap. The yield maintenance provision represents an embedded derivative which is bifurcated from the host loan contract and, as such, the swaps and embedded derivatives are not designated as hedges. Accordingly, both instruments are carried at fair value and changes in fair value are reported in current period earnings. | ||||||||||||
Summary information about these interest-rate swaps as of year ended December 31, 2014, 2013 and 2012 is as follows: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Notional amounts | $ | 31,459 | $ | 25,195 | $ | 7,060 | ||||||
Weighted average pay rate on interest-rate swaps | 4.26 | % | 4.28 | % | 4.07 | % | ||||||
Weighted average receive rate on interest-rate swaps | 2.67 | % | 2.82 | % | 2.99 | % | ||||||
Weighted average matuirity (years) | 5.9 | 6.3 | 5.8 | |||||||||
Fair value of combined interest-rate swaps | $ | 638 | $ | 275 | $ | 120 | ||||||
The fair value of the yield maintenance provisions and interest-rate swaps is recorded in other assets and other liabilities, respectively, in the consolidated balance sheet. Changes in the fair value of the yield maintenance provisions and interest-rate swaps are reported in earnings, as other noninterest income in the consolidated income statements. There were no net gains or losses recognized in earnings related to yield maintenance provisions for years ended December 31, 2014, 2013 and 2012. |
Segment_Information
Segment Information | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Segment Information | NOTE 20 – SEGMENT INFORMATION | |||||||||||||||
The reportable segments are determined by the products and services offered, primarily distinguished between banking, trust and retirement consulting operations. They are also distinguished by the level of information provided to the chief operating decision makers in the Company, who use such information to review performance of various components of the business, which are then aggregated. Loans, investments, and deposits provide the revenues in the banking operation, trust service fees provide the revenue in trust operations and consulting fees provide the revenues in the retirement consulting operations. All operations are domestic. | ||||||||||||||||
Accounting policies for segments are the same as those described in Note 1. Segment performance is evaluated using operating income. Income taxes are calculated on operating income. Transactions among segments are made at fair value. | ||||||||||||||||
Significant segment totals are reconciled to the financial statements as follows: | ||||||||||||||||
31-Dec-14 | Trust Segment | Bank Segment | Retirement Consulting Segment | Eliminations and Others | Consolidated Totals | |||||||||||
Goodwill and other intangibles | $ | 5,285 | $ | 0 | $ | 3,528 | $ | 0 | $ | 8,813 | ||||||
Total assets | $ | 10,643 | $ | 1,121,505 | $ | 4,356 | $ | 463 | $ | 1,136,967 | ||||||
31-Dec-13 | Trust Segment | Bank Segment | Retirement Consulting Segment | Eliminations and Others | Consolidated Totals | |||||||||||
Goodwill and other intangibles | $ | 5,639 | $ | 0 | $ | 4,704 | $ | 0 | $ | 10,343 | ||||||
Total assets | $ | 11,572 | $ | 1,120,091 | $ | 5,090 | $ | 573 | $ | 1,137,326 | ||||||
For year ended 2014 | Trust Segment | Bank Segment | Retirement Consulting Segment | Eliminations and Others | Consolidated Totals | |||||||||||
Net interest income | $ | 53 | $ | 36,297 | $ | 0 | $ | (14 | ) | $ | 36,336 | |||||
Provision for loan losses | 0 | 1,880 | 0 | 0 | $ | 1,880 | ||||||||||
Service fees, security gains and other noninterest income | 6,170 | 7,577 | 1,810 | (254 | ) | $ | 15,303 | |||||||||
Noninterest expense | 4,906 | 30,349 | 2,433 | 474 | $ | 38,162 | ||||||||||
Income before taxes | 1,317 | 11,645 | (623 | ) | (742 | ) | $ | 11,597 | ||||||||
Income tax | 451 | 2,645 | 48 | (512 | ) | $ | 2,632 | |||||||||
Net Income | $ | 866 | $ | 9,000 | $ | (671 | ) | $ | (230 | ) | $ | 8,965 | ||||
For year ended 2013 | Trust Segment | Bank Segment | Retirement Consulting Segment | Eliminations and Others | Consolidated Totals | |||||||||||
Net interest income | $ | 45 | $ | 35,865 | $ | 0 | $ | (14 | ) | $ | 35,896 | |||||
Provision for loan losses | 0 | 1,290 | 0 | 0 | $ | 1,290 | ||||||||||
Service fees, security gains and other noninterest income | 5,667 | 7,838 | 627 | (218 | ) | $ | 13,914 | |||||||||
Noninterest expense | 4,899 | 31,875 | 863 | 1,420 | $ | 39,057 | ||||||||||
Income before taxes | 813 | 10,538 | (236 | ) | (1,652 | ) | $ | 9,463 | ||||||||
Income tax | 282 | 2,043 | (80 | ) | (562 | ) | $ | 1,683 | ||||||||
Net Income | $ | 531 | $ | 8,495 | $ | (156 | ) | $ | (1,090 | ) | $ | 7,780 | ||||
For year ended 2012 | Trust Segment | Bank Segment | Retirement Consulting Segment | Eliminations and Others | Consolidated Totals | |||||||||||
Net interest income | $ | 47 | $ | 36,871 | $ | 0 | $ | (20 | ) | $ | 36,898 | |||||
Provision for loan losses | 0 | 725 | 0 | 0 | $ | 725 | ||||||||||
Service fees, security gains and other noninterest income | 5,571 | 7,192 | 0 | (185 | ) | $ | 12,578 | |||||||||
Noninterest expense | 4,918 | 30,024 | 0 | 822 | $ | 35,764 | ||||||||||
Income before taxes | 700 | 13,314 | 0 | (1,027 | ) | $ | 12,987 | |||||||||
Income tax | 244 | 3,160 | 0 | (349 | ) | $ | 3,055 | |||||||||
Net Income | $ | 456 | $ | 10,154 | $ | 0 | $ | (678 | ) | $ | 9,932 | |||||
Bank segment includes Farmers National Insurance and Farmers of Canfield Investment Co. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 21 – SUBSEQUENT EVENT |
During January of 2015, the Company announced a definitive agreement had been reached to acquire all the shares of National Bancshares Corporation, the holding company for First National Bank of Orville and will be merged with and into Farmers National Bank of Canfield. At the completion of the transaction First National Bank of Orrville branches will become branches of Farmers National Bank of Canfield. Pursuant to the Agreement, each shareholder of National Bancshares will be entitled to elect to receive either $32.15 per share in cash or 4.034 shares of Farmers’ common stock, subject to an overall limitation of 80% of the shares being exchanged for stock and 20% for cash. Based on Farmers’ volume weighted average stock price over the last 20 trading days of $7.97, as of January 26, 2015, the transaction is valued at approximately $74.0 million. The merger is expected to qualify as a tax-free reorganization for those shareholders electing to receive Farmers’ stock. The transaction is subject to receipt of National Bancshares’ shareholder approval, Farmers’ shareholder approval and customary regulatory approvals. The Company expects the transaction to close in the first half of 2015. |
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||
Quarterly Financial Data (Unaudited) | NOTE 22 - QUARTERLY FINANCIAL DATA (UNAUDITED) | ||||||||||||
Quarter Ended 2014 | 31-Mar | 30-Jun | 30-Sep | 31-Dec | |||||||||
Total interest income | $ | 10,063 | $ | 10,118 | $ | 10,413 | $ | 10,321 | |||||
Total interest expense | 1,207 | 1,166 | 1,128 | 1,078 | |||||||||
Net interest income | 8,856 | 8,952 | 9,285 | 9,243 | |||||||||
Provision for loan losses | 330 | 300 | 425 | 825 | |||||||||
Noninterest income | 3,433 | 3,797 | 3,880 | 4,193 | |||||||||
Noninterest expense | 9,141 | 9,378 | 9,776 | 9,867 | |||||||||
Income before income taxes | 2,818 | 3,071 | 2,964 | 2,744 | |||||||||
Income taxes | 627 | 720 | 688 | 597 | |||||||||
Net income | $ | 2,191 | $ | 2,351 | $ | 2,276 | $ | 2,147 | |||||
Earnings per share - basic and diluted | $ | 0.12 | $ | 0.13 | $ | 0.12 | $ | 0.12 | |||||
Quarter Ended 2013 | 31-Mar | 30-Jun | 30-Sep | 31-Dec | |||||||||
Total interest income | $ | 10,266 | $ | 10,273 | $ | 10,122 | $ | 10,298 | |||||
Total interest expense | 1,298 | 1,234 | 1,274 | 1,257 | |||||||||
Net interest income | 8,968 | 9,039 | 8,848 | 9,041 | |||||||||
Provision for loan losses | 255 | 170 | 340 | 525 | |||||||||
Noninterest income | 2,875 | 3,225 | 4,173 | 3,641 | |||||||||
Noninterest expense | 9,088 | 9,822 | 10,926 | 9,221 | |||||||||
Income before income taxes | 2,500 | 2,272 | 1,755 | 2,936 | |||||||||
Income taxes | 495 | 404 | 143 | 641 | |||||||||
Net income | $ | 2,005 | $ | 1,868 | $ | 1,612 | $ | 2,295 | |||||
Earnings per share - basic and diluted | $ | 0.11 | $ | 0.1 | $ | 0.09 | $ | 0.12 | |||||
The Company sold certain investment securities and recognized security gains of $372 thousand during the fourth quarter of 2014 and gains of $597 thousand during the third quarter of 2013. A $1.3 million charge was recorded during the third quarter of 2013 for severance costs. |
Parent_Company_Only_Condensed_
Parent Company Only Condensed Financial Information | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | ||||||||||
Parent Company Only Condensed Financial Information | NOTE 23—PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | |||||||||
Below is condensed financial information of Farmers National Banc Corp. (parent company only). This information should be read in conjunction with the consolidated financial statements and related notes. | ||||||||||
December 31, | 2014 | 2013 | ||||||||
BALANCE SHEETS | ||||||||||
Assets: | ||||||||||
Cash | $ | 1,564 | $ | 1,849 | ||||||
Investment in subsidiaries | ||||||||||
Bank | 107,704 | 96,087 | ||||||||
Trust | 10,115 | 11,233 | ||||||||
NAI | 3,604 | 4,275 | ||||||||
Securities available for sale | 172 | 126 | ||||||||
Other | 916 | 725 | ||||||||
TOTAL ASSETS | $ | 124,075 | $ | 114,295 | ||||||
Liabilities: | ||||||||||
Other liabilities | $ | 163 | $ | 932 | ||||||
Note payable | 350 | 350 | ||||||||
Other accounts payable | 2 | 6 | ||||||||
TOTAL LIABILITIES | 515 | 1,288 | ||||||||
TOTAL STOCKHOLDERS' EQUITY | 123,560 | 113,007 | ||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 124,075 | $ | 114,295 | ||||||
STATEMENTS OF INCOME | ||||||||||
Years ended December 31, | 2014 | 2013 | 2012 | |||||||
Income: | ||||||||||
Dividends from subsidiaries | ||||||||||
Bank | $ | 4,013 | $ | 4,333 | $ | 2,712 | ||||
Trust | 2,000 | 980 | 0 | |||||||
NAI | 0 | 0 | 0 | |||||||
Interest and dividends on securities | 1 | 2 | 4 | |||||||
Security gains/(losses) | 0 | 21 | 0 | |||||||
Other income | 764 | 0 | 0 | |||||||
TOTAL INCOME | 6,778 | 5,336 | 2,716 | |||||||
Interest on borrowings | (15 | ) | (16 | ) | (24 | ) | ||||
Other expenses | (1,492 | ) | (1,659 | ) | (1,007 | ) | ||||
Income before income tax benefit and undistributed subsidiary income | 5,271 | 3,661 | 1,685 | |||||||
Income tax benefit | 512 | 562 | 349 | |||||||
Equity in undistributed net income of subsidiaries (dividends in excess of net income) | ||||||||||
Bank | 4,987 | 4,162 | 7,442 | |||||||
Trust | (1,134 | ) | (449 | ) | 456 | |||||
NAI | (671 | ) | (156 | ) | 0 | |||||
NET INCOME | $ | 8,965 | $ | 7,780 | $ | 9,932 | ||||
STATEMENTS OF CASH FLOWS | ||||||||||
Years ended December 31, | 2014 | 2013 | 2012 | |||||||
Cash flows from operating activities: | ||||||||||
Net income | $ | 8,965 | $ | 7,780 | $ | 9,932 | ||||
Adjustments to reconcile net income to net cash | ||||||||||
from operating activities: | ||||||||||
Security (gains)/losses | 0 | (24 | ) | 0 | ||||||
Impairment of securities | 0 | 3 | 0 | |||||||
Dividends in excess of net income (Equity in undistributed net income of subsidiary) | (3,182 | ) | (3,557 | ) | (7,898 | ) | ||||
Other | (982 | ) | (270 | ) | (20 | ) | ||||
NET CASH FROM OPERATING ACTIVITIES | 4,801 | 3,932 | 2,014 | |||||||
Cash flows from investing activities: | ||||||||||
Proceeds from maturities of available for sale securities | 0 | 56 | 0 | |||||||
Purchase of National Associates, Inc. | 0 | (2,111 | ) | 0 | ||||||
NET CASH FROM INVESTING ACTIVITIES | 0 | (2,055 | ) | 0 | ||||||
Cash flows from financing activities: | ||||||||||
Proceeds from reissuance of treasury shares | 32 | 0 | 0 | |||||||
Purchase of treasury shares | (2,882 | ) | (1,606 | ) | (42 | ) | ||||
Cash dividends paid | (2,236 | ) | (2,248 | ) | (3,382 | ) | ||||
Net changes in borrowings | 0 | 0 | (750 | ) | ||||||
Proceeds from dividend reinvestment | 0 | 0 | 243 | |||||||
NET CASH FROM FINANCING ACTIVITIES | (5,086 | ) | (3,854 | ) | (3,931 | ) | ||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | (285 | ) | (1,977 | ) | (1,917 | ) | ||||
Beginning cash and cash equivalents | 1,849 | 3,826 | 5,743 | |||||||
Ending cash and cash equivalents | $ | 1,564 | $ | 1,849 | $ | 3,826 | ||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation: The consolidated financial statements include the accounts of Farmers National Banc Corp. and its wholly-owned subsidiaries, The Farmers National Bank (“Bank”) of Canfield, Farmers Trust Company (“Trust”) and National Associates, Inc. (“NAI”). The consolidated financial statements also include the accounts of the Farmers National Bank of Canfield’s subsidiaries; Farmers National Insurance (“Insurance”) and Farmers of Canfield Investment Co. (“Investments”). Together the entities are referred to as “the Company.” All significant intercompany balances and transactions have been eliminated in consolidation. |
Nature of Operations | Nature of Operations: The Company provides full banking services, including wealth management services and mortgage banking activity, through the Bank. As a national bank, the Bank is subject to regulation of the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation. The area served by the Bank is the northeastern region of Ohio and service is provided at twenty (20) locations. During 2013, the Company acquired NAI, a retirement plan consulting firm located in Cleveland, Ohio. Therefore the Company provides retirement consulting services through NAI. The Company provides trust services through its subsidiary, Trust and insurance services through the Bank’s subsidiary, Insurance. The primary purpose of Investments, the new subsidiary of the Bank in 2014, is to invest in municipal securities. Farmers Trust Company has a state-chartered bank license to conduct trust business from the Ohio Department of Commerce – Division of Financial Institutions. |
Estimates | Estimates: The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash Flows | Cash Flows: Cash and cash equivalents include cash on hand, deposits with other financial institutions and federal funds sold. Generally, federal funds are purchased and sold for one-day periods. Net cash flows are reported for loan and deposit transactions, short term borrowings, and other assets and liabilities. |
Securities Available for Sale | Securities Available for Sale: Debt securities are classified as available for sale when they might be sold before maturity. Equity securities with readily determinable fair values are classified as available for sale. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax. |
Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage backed securities where prepayments are anticipated. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Purchases are recorded on the trade date. | |
Management evaluates securities for other-than-temporary impairment (OTTI) at least on a quarterly basis, and more frequently when economic or market conditions warrant. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the income statement and 2) other-than-temporary impairment (OTTI) related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings. | |
Loans Held for Sale | Loans Held for Sale: Mortgage loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or fair value, as determined by outstanding commitments from investors. Net unrealized losses, if any, are charged to earnings. |
Mortgage loans held for sale are generally sold with servicing rights released. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related loan sold. | |
Loans | Loans: Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of deferred loan fees and costs, and an allowance for loan losses. Substantially all loans are secured by specific items of collateral including business assets, consumer assets, and commercial and residential real estate. |
Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level yield method without anticipating prepayments. Interest income on mortgage and commercial loans is discontinued at the time the loan is 90 days delinquent unless the loan is well-secured and in process of collection. Consumer loans are typically charged off no later than 120 days past due. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. | |
For all classes of loans, when interest accruals are discontinued, interest accrued but not received for loans placed on non-accrual is reversed against interest income. Interest on such loans is thereafter recorded on a cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. | |
Derivatives | Derivatives: Derivative financial instruments are recognized as assets or liabilities at fair value. The Company’s derivatives are interest-rate swap agreements, which are used as part of its asset and liability management strategy to help manage its interest rate risk position. The Company does not use derivatives for trading or balance sheet hedging purposes. The derivative transactions are considered instruments with no hedging designation, otherwise known as stand-alone derivatives. Changes in the fair value of the derivatives are reported currently in earnings, as other noninterest income. |
Concentration of Credit Risk | Concentration of Credit Risk: There are no significant concentrations of loans to any one industry or customer. However, most of the Company’s business activity is with customers located within Mahoning, Trumbull, Columbiana, Stark and Cuyahoga counties. Therefore, the Company’s exposure to credit risk is significantly affected by changes in the economy of the five county area. |
Allowance for Loan Losses | Allowance for Loan Losses: The allowance for loan losses is a valuation allowance for probable incurred loan losses, increased by the provision for loan losses and decreased by charge-offs less recoveries. The allowance is based on management’s judgment taking into consideration past loss experience, reviews of individual loans, current economic conditions and other factors considered relevant by management at the financial statement date. While management uses the best information available to establish the allowance, future adjustments to the allowance may be necessary, which may be material, if economic conditions differ substantially from the assumptions used in estimating the allowance. If additions to the original estimate of the allowance for loan losses are deemed necessary, they will be reported in earnings in the period in which they become reasonably estimable and probable. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged-off. |
The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. A loan is considered impaired when, based on the current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Loans, for which the terms have been modified, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. | |
Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. | |
Impairment is measured on a loan by loan basis for commercial and commercial real estate loans over $300 thousand, individually or in the aggregate, by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Large groups of smaller balance homogeneous loans, such as consumer and residential real estate loans are collectively evaluated for impairment and accordingly, they are not separately identified for impairment disclosures. Non-real estate secured consumer loans in bankruptcy where debt has not been reaffirmed are considered troubled debt restructurings and are evaluated individually to ensure that accurate accounting treatment is in place. | |
The Company considers the guidance on troubled debt restructuring for individual consumer and residential loans when evaluating for impairment disclosure. Troubled debt restructurings are measured at the present value of estimated future cash flow using the loan’s effective rate at inception. If a troubled debt restructuring is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For troubled debt restructurings that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses. | |
The general component covers non-impaired loans and is based on historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced for the most recent twelve quarters. The formula for calculating the allowance for loan losses requires that the historical loss percentage be applied to homogeneous and all risk rated loans. This actual loss experience is supplemented with other economic factors based on the risks present for each portfolio segment. These economic factors include consideration of the following: levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. The following portfolio segments have been identified: | |
Commercial Loans. Commercial credit is extended to commercial customers for use in normal business operations to finance working capital needs, equipment purchases, or other projects. The majority of these borrowers are customers doing business within our geographic regions. These loans are generally underwritten individually and secured with the assets of the company and the personal guarantee of the business owners. Commercial loans are made based primarily on the historical and projected cash flow of the borrower and the underlying collateral provided by the borrower. | |
Commercial Real Estate Loans. Commercial real estate loans are subject to underwriting standards and processes similar to commercial loans. These loans are viewed primarily as cash flow loans and the repayment of these loans is largely dependent on the successful operation of the property. Loan performance may be adversely affected by factors impacting the general economy or conditions specific to the real estate market such as geographic location and property type. | |
Consumer Loans. Consumer loans are primarily comprised of loans made directly to consumers and indirectly through automobile dealerships. These loans have a specific matrix which consists of several factors including debt to income, type of collateral and loan to collateral value, credit history and relationship with the borrower. Consumer lending uses risk-based pricing in the underwriting process. | |
Residential Real Estate Loans. Residential mortgage loans represent loans to consumers for the purchase or refinance of a residence. These loans are generally financed up to 15 years, and in most cases, are extended to borrowers to finance their primary residence. Real estate market values at the time of origination directly affect the amount of credit extended and, in the event of default, subsequent changes in these values may impact the severity of losses. | |
Foreclosed Assets | Foreclosed Assets: Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. Operating costs after acquisition are expensed. |
Premises and Equipment | Premises and Equipment: Land is carried at cost. Premises and equipment are stated at cost, less accumulated depreciation. Buildings and related components are depreciated using the straight-line method with useful lives ranging from 5 to 40 years. Furniture, fixtures and equipment are depreciated using the straight-line method with useful lives ranging from 3 to 10 years. |
Restricted Stock | Restricted Stock: The Bank is a member of the Federal Home Loan Bank (FHLB) system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. The Bank is also a member of and owns stock in the Federal Reserve Bank. These stocks are carried at cost, classified as restricted securities included in other assets, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. |
Bank Owned Life Insurance | Bank Owned Life Insurance: The Company has purchased life insurance policies on certain key officers. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. |
Long-term Assets | Long-term Assets: Premises and equipment and other long-term assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets: Goodwill resulting from a business combination is generally determined as the excess of the fair value of the consideration transferred over the fair value of the net assets acquired as of the acquisition date. Goodwill acquired in a purchase business combination and determined to have an indefinite useful life is not amortized, but tested for impairment at least annually. The Company has selected September 30 as the date to perform the annual impairment tests associated with the acquisition of the Trust and NAI. Intangible assets with definite useful lives are amortized over their estimated useful lives. Goodwill is the only intangible asset with an indefinite life on the balance sheet. Non-compete contracts are amortized on a straight line basis, over the term of the agreements. Customer relationship and trade name intangibles are amortized over an average of 13 years on an accelerated method. |
Loan Commitments and Related Financial Instruments | Loan Commitments and Related Financial Instruments: Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. |
Stock-Based Compensation | Stock-Based Compensation: Compensation cost is recognized for stock options and restricted stock awards issued to employees, based on the fair value of these awards at the date of grant. The market price of the Company’s common stock at the grant date is used for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. |
Income Taxes | Income Taxes: Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. |
A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. | |
The Company recognizes interest and/or penalties related to income tax matters in income tax expense. | |
Retirement Plans | Retirement Plans: Employee 401(k) and profit sharing plan expense is the amount of matching and discretionary contributions. Deferred compensation and supplemental retirement plan expense allocates the benefits over years of service. |
Earnings Per Common Share | Earnings per Common Share: Basic earnings per common share is net income divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share include the dilutive effect of additional potential common shares issuable under stock options. Earnings and dividends per share are restated for all stock splits and stock dividends through the date of issuance of the financial statements. |
Comprehensive Income (Loss) | Comprehensive Income (Loss): Comprehensive income (loss) consists of net income and other comprehensive income (loss). Other comprehensive income (loss) consists of unrealized gains and losses on securities available for sale and changes in the funded status of the post-retirement health plan, which are recognized as separate components of equity, net of tax effects. |
Loss Contingencies | Loss Contingencies: Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are such matters that will have a material effect on the financial statements. |
Restrictions on Cash | Restrictions on Cash: Cash on hand or on deposit with the Federal Reserve Bank was required to meet regulatory reserve and clearing requirements. |
Equity | Equity: Treasury stock is carried at cost. |
Dividend Restriction | Dividend Restriction: Banking regulations require maintaining certain capital levels and may limit the dividends paid by the Bank and Trust to the holding company or by the holding company to shareholders. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments: Fair values of financial instruments are estimated using relevant market information and other assumptions as more fully disclosed in Note 4. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect these estimates. |
Operating Segments | Operating Segments: While the chief decision-makers monitor the revenue streams of the various products and services, operations are managed and financial performance is primarily aggregated and reported in three lines of business, the Bank, Trust and Retirement consulting segments. The Company discloses segment information in Note 20. |
Reclassification | Reclassification: Some items in the prior year financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on prior year net income or stockholders’ equity. |
Adoption of New Accounting Standards | Adoption of New Accounting Standards: In May 2014, FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606). The ASU creates a new topic, Topic 606, to provide guidance on revenue recognition for entities that enter into contracts with customers to transfer goods or services or enter into contracts for the transfer of nonfinancial assets. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additional disclosures are required to provide quantitative and qualitative information regarding the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new guidance is effective for annual reporting periods, and interim reporting periods within those annual periods, beginning after December 15, 2016. Early adoption is not permitted. Management is currently evaluating the impact of the adoption of this guidance on the Company’s consolidated financial statements. |
In January 2014, the FASB issued ASU 2014-04, “Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure.” The objective of the amendments in ASU 2014-04 to Topic 310, “Receivables - Troubled Debt Restructurings by Creditors,” is to reduce diversity by clarifying when an in substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. The amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. An entity can elect to adopt the amendments using either a modified retrospective transition method or a prospective transition method. Early adoption is permitted. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. | |
In January 2014, the FASB amended existing guidance on ASU 2014-1, “Investments - Equity Method and Joint Ventures (Topic 323) - Accounting for Investments in Qualified Affordable Housing Projects” to eliminate the effective yield election and to permit reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Disclosures for a change in accounting principle are required upon transition. The amendments are effective for annual periods and interim reporting periods beginning after December 15, 2014. The amendments in this standard should be applied retrospectively to all periods presented. A reporting entity that uses the effective yield method before the date of adoption of this standard may continue to apply it for preexisting investments. Early adoption is permitted. The adoption of this standard is not expected to have a material effect on the Company’s consolidated financial statements. |
Securities_Available_for_Sale_
Securities Available for Sale (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Investments Debt And Equity Securities [Abstract] | |||||||||||||||||||||
Summary of the Amortized Cost and Fair Value of Available-for-Sale Investment Securities Corresponding Amounts of Unrealized Gains and Losses | The following table summarizes the amortized cost and fair value of the available-for-sale securities portfolio at December 31, 2014 and 2013 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows: | ||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||
Amortized | Unrealized | Unrealized | |||||||||||||||||||
2014 | Cost | Gains | Losses | Fair Value | |||||||||||||||||
U.S. Treasury and U.S. government sponsored entities | $ | 24,515 | $ | 418 | $ | (112 | ) | $ | 24,821 | ||||||||||||
State and political subdivisions | 90,369 | 2,183 | (671 | ) | 91,881 | ||||||||||||||||
Corporate bonds | 936 | 3 | (8 | ) | 931 | ||||||||||||||||
Mortgage-backed securities - residential | 223,216 | 2,395 | (1,249 | ) | 224,362 | ||||||||||||||||
Collateralized mortgage obligations | 25,988 | 98 | (911 | ) | 25,175 | ||||||||||||||||
Small Business Administration | 23,193 | 1 | (775 | ) | 22,419 | ||||||||||||||||
Equity securities | 120 | 121 | (1 | ) | 240 | ||||||||||||||||
Totals | $ | 388,337 | $ | 5,219 | $ | (3,727 | ) | $ | 389,829 | ||||||||||||
Gross | Gross | ||||||||||||||||||||
Amortized | Unrealized | Unrealized | |||||||||||||||||||
2013 | Cost | Gains | Losses | Fair Value | |||||||||||||||||
U.S. Treasury and U.S. government sponsored entities | $ | 50,942 | $ | 755 | $ | (387 | ) | $ | 51,310 | ||||||||||||
State and political subdivisions | 96,239 | 1,302 | (2,807 | ) | 94,734 | ||||||||||||||||
Corporate bonds | 1,540 | 0 | (15 | ) | 1,525 | ||||||||||||||||
Mortgage-backed securities - residential | 226,865 | 1,199 | (5,084 | ) | 222,980 | ||||||||||||||||
Collateralized mortgage obligations | 30,227 | 162 | (1,713 | ) | 28,676 | ||||||||||||||||
Small Business Administration | 25,592 | 1 | (2,020 | ) | 23,573 | ||||||||||||||||
Equity securities | 117 | 70 | 0 | 187 | |||||||||||||||||
Totals | $ | 431,522 | $ | 3,489 | $ | (12,026 | ) | $ | 422,985 | ||||||||||||
Proceeds from Sales of Available-for-Sale Securities and the Associated Gains and Losses | The proceeds from sales of available-for-sale securities and the associated gains and losses were as follows: | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Proceeds | $ | 57,170 | $ | 94,016 | $ | 91,197 | |||||||||||||||
Gross gains | 758 | 1,924 | 1,258 | ||||||||||||||||||
Gross losses | (301 | ) | (1,061 | ) | (199 | ) | |||||||||||||||
Amortized Cost and Fair Value of the Debt Securities Maturity | The amortized cost and fair value of the debt securities portfolio are shown by expected maturity. Expected maturities may differ from contractual maturities if issuers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. | ||||||||||||||||||||
Available for sale | 31-Dec-14 | ||||||||||||||||||||
Amortized | |||||||||||||||||||||
Maturity | Cost | Fair Value | |||||||||||||||||||
Within one year | $ | 12,359 | $ | 12,480 | |||||||||||||||||
One to five years | 54,555 | 55,070 | |||||||||||||||||||
Five to ten years | 39,859 | 40,994 | |||||||||||||||||||
Beyond ten years | 9,086 | 9,089 | |||||||||||||||||||
Mortgage-backed securities, collateralized mortgage obligations and Small Business Administration | 272,397 | 271,956 | |||||||||||||||||||
Totals | $ | 388,256 | $ | 389,589 | |||||||||||||||||
Investment Securities with Unrealized Losses | The following table summarizes the investment securities with unrealized losses at December 31, 2014 and 2013 aggregated by major security type and length of time in a continuous unrealized loss position. Unrealized losses for Equity securities had unrealized losses that rounded to less than $1 thousand for year 2013. | ||||||||||||||||||||
2014 | |||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||
Description of Securities | Value | Loss | Value | Loss | Value | Loss | |||||||||||||||
U.S. Treasury and U.S. government | |||||||||||||||||||||
sponsored entities | $ | 498 | $ | (2 | ) | $ | 10,159 | $ | (110 | ) | $ | 10,657 | $ | (112 | ) | ||||||
State and political subdivisions | 987 | (11 | ) | 24,063 | (660 | ) | 25,050 | (671 | ) | ||||||||||||
Corporate bonds | 0 | 0 | 476 | (8 | ) | 476 | (8 | ) | |||||||||||||
Mortgage-backed securities - residential | 25,770 | (202 | ) | 55,576 | (1,047 | ) | 81,346 | (1,249 | ) | ||||||||||||
Collateralized mortgage obligations | 0 | 0 | 19,541 | (911 | ) | 19,541 | (911 | ) | |||||||||||||
Small Business Administration | 0 | 0 | 22,319 | (775 | ) | 22,319 | (775 | ) | |||||||||||||
Equity securities | 26 | (1 | ) | 0 | 0 | 26 | (1 | ) | |||||||||||||
Total temporarily impaired | $ | 27,281 | $ | (216 | ) | $ | 132,134 | $ | (3,511 | ) | $ | 159,415 | $ | (3,727 | ) | ||||||
2013 | |||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||
Description of Securities | Value | Loss | Value | Loss | Value | Loss | |||||||||||||||
U.S. Treasury and U.S. government | |||||||||||||||||||||
sponsored entities | $ | 20,776 | $ | (387 | ) | $ | 0 | $ | 0 | $ | 20,776 | $ | (387 | ) | |||||||
State and political subdivisions | 34,851 | (1,855 | ) | 7,492 | (952 | ) | 42,343 | (2,807 | ) | ||||||||||||
Corporate bonds | 1,052 | (2 | ) | 473 | (13 | ) | 1,525 | (15 | ) | ||||||||||||
Mortgage-backed securities - residential | 141,024 | (3,735 | ) | 27,026 | (1,349 | ) | 168,050 | (5,084 | ) | ||||||||||||
Collateralized mortgage obligations | 5,283 | (450 | ) | 15,726 | (1,263 | ) | 21,009 | (1,713 | ) | ||||||||||||
Small Business Administration | 6,927 | (491 | ) | 16,520 | (1,529 | ) | 23,447 | (2,020 | ) | ||||||||||||
Equity securities | 7 | 0 | 0 | 0 | 7 | 0 | |||||||||||||||
Total temporarily impaired | $ | 209,920 | $ | (6,920 | ) | $ | 67,237 | $ | (5,106 | ) | $ | 277,157 | $ | (12,026 | ) | ||||||
Loans_Tables
Loans (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||
Schedule of Loan Balances | Loans at year end were as follows: | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||
Owner occupied | $ | 74,829 | $ | 86,286 | ||||||||||||||||||||
Non-owner occupied | 122,228 | 107,625 | ||||||||||||||||||||||
Other | 26,137 | 24,381 | ||||||||||||||||||||||
Commercial | 120,493 | 105,023 | ||||||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||
1-4 family residential | 153,055 | 144,225 | ||||||||||||||||||||||
Home equity lines of credit | 31,255 | 26,448 | ||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||
Indirect | 120,931 | 121,446 | ||||||||||||||||||||||
Direct | 9,071 | 10,237 | ||||||||||||||||||||||
Other | 3,626 | 3,031 | ||||||||||||||||||||||
Subtotal | $ | 661,625 | $ | 628,702 | ||||||||||||||||||||
Net deferred loan (fees) costs | 2,227 | 1,982 | ||||||||||||||||||||||
Allowance for loan losses | (7,632 | ) | (7,568 | ) | ||||||||||||||||||||
Net loans | $ | 656,220 | $ | 623,116 | ||||||||||||||||||||
Activity in the Allowance for Loan Losses by Portfolio Segment | The following tables present the activity in the allowance for loan losses by portfolio segment for years ended December 31, 2014, 2013 and 2012: | |||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
Commercial | Residential | |||||||||||||||||||||||
Real Estate | Commercial | Real Estate | Consumer | Unallocated | Total | |||||||||||||||||||
Allowance for loan losses | ||||||||||||||||||||||||
Beginning balance | $ | 2,752 | $ | 1,219 | $ | 1,964 | $ | 1,419 | $ | 214 | $ | 7,568 | ||||||||||||
Provision for loan losses | (50 | ) | 357 | 233 | 1,370 | (30 | ) | 1,880 | ||||||||||||||||
Loans charged off | (151 | ) | (185 | ) | (585 | ) | (2,213 | ) | 0 | (3,134 | ) | |||||||||||||
Recoveries | 125 | 29 | 77 | 1,087 | 0 | 1,318 | ||||||||||||||||||
Total ending allowance balance | $ | 2,676 | $ | 1,420 | $ | 1,689 | $ | 1,663 | $ | 184 | $ | 7,632 | ||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Commercial | Residential | |||||||||||||||||||||||
Real Estate | Commercial | Real Estate | Consumer | Unallocated | Total | |||||||||||||||||||
Allowance for loan losses | ||||||||||||||||||||||||
Beginning balance | $ | 3,392 | $ | 1,453 | $ | 1,569 | $ | 951 | $ | 264 | $ | 7,629 | ||||||||||||
Provision for loan losses | (306 | ) | (397 | ) | 674 | 1,369 | (50 | ) | 1,290 | |||||||||||||||
Loans charged off | (505 | ) | (99 | ) | (326 | ) | (1,723 | ) | 0 | (2,653 | ) | |||||||||||||
Recoveries | 171 | 262 | 47 | 822 | 0 | 1,302 | ||||||||||||||||||
Total ending allowance balance | $ | 2,752 | $ | 1,219 | $ | 1,964 | $ | 1,419 | $ | 214 | $ | 7,568 | ||||||||||||
31-Dec-12 | ||||||||||||||||||||||||
Commercial | Residential | |||||||||||||||||||||||
Real Estate | Commercial | Real Estate | Consumer | Unallocated | Total | |||||||||||||||||||
Allowance for loan losses | ||||||||||||||||||||||||
Beginning balance | $ | 4,880 | $ | 1,529 | $ | 1,802 | $ | 972 | $ | 637 | $ | 9,820 | ||||||||||||
Provision for loan losses | (516 | ) | 792 | 469 | 353 | (373 | ) | 725 | ||||||||||||||||
Loans charged off | (1,225 | ) | (918 | ) | (806 | ) | (1,002 | ) | 0 | (3,951 | ) | |||||||||||||
Recoveries | 253 | 50 | 104 | 628 | 0 | 1,035 | ||||||||||||||||||
Total ending allowance balance | $ | 3,392 | $ | 1,453 | $ | 1,569 | $ | 951 | $ | 264 | $ | 7,629 | ||||||||||||
Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Based | ||||||||||||||||||||||||
The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2014 and 2013. The recorded investment in loans includes the unpaid principal balance and unamortized loan origination fees and costs, but excludes accrued interest receivable which is not considered to be material. | ||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
Commercial | Residential | |||||||||||||||||||||||
Allowance for loan losses: | Real Estate | Commercial | Real Estate | Consumer | Unallocated | Total | ||||||||||||||||||
Ending allowance balance attributable to loans: | ||||||||||||||||||||||||
Individually evaluated for impairment | $ | 514 | $ | 272 | $ | 88 | $ | 0 | $ | 0 | $ | 874 | ||||||||||||
Collectively evaluated for impairment | 2,162 | 1,148 | 1,601 | 1,663 | 184 | 6,758 | ||||||||||||||||||
Total ending allowance balance | $ | 2,676 | $ | 1,420 | $ | 1,689 | $ | 1,663 | $ | 184 | $ | 7,632 | ||||||||||||
Loans: | ||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 7,139 | $ | 1,940 | $ | 3,425 | $ | 93 | $ | 0 | $ | 12,597 | ||||||||||||
Loans collectively evaluated for impairment | 215,434 | 118,210 | 180,428 | 137,183 | 0 | 651,255 | ||||||||||||||||||
Total ending loans balance | $ | 222,573 | $ | 120,150 | $ | 183,853 | $ | 137,276 | $ | 0 | $ | 663,852 | ||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Commercial | Residential | |||||||||||||||||||||||
Allowance for loan losses: | Real Estate | Commercial | Real Estate | Consumer | Unallocated | Total | ||||||||||||||||||
Ending allowance balance attributable to loans: | ||||||||||||||||||||||||
Individually evaluated for impairment | $ | 166 | $ | 110 | $ | 202 | $ | 82 | $ | 0 | $ | 560 | ||||||||||||
Collectively evaluated for impairment | 2,586 | 1,109 | 1,762 | 1,337 | 214 | 7,008 | ||||||||||||||||||
Total ending allowance balance | $ | 2,752 | $ | 1,219 | $ | 1,964 | $ | 1,419 | $ | 214 | $ | 7,568 | ||||||||||||
Loans: | ||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 6,623 | $ | 2,430 | $ | 2,554 | $ | 363 | $ | 0 | $ | 11,970 | ||||||||||||
Loans collectively evaluated for impairment | 210,739 | 102,593 | 167,597 | 137,785 | 0 | 618,714 | ||||||||||||||||||
Total ending loans balance | $ | 217,362 | $ | 105,023 | $ | 170,151 | $ | 138,148 | $ | 0 | $ | 630,684 | ||||||||||||
Loans Individually Evaluated for Impairment by Class of Loans | The following tables present information related to impaired loans by class of loans as of and for year ended December 31, 2014, 2013 and 2012. The recorded investment in loans excludes accrued interest receivable due to immateriality. | |||||||||||||||||||||||
Unpaid Principal | Recorded | Allowance for Loan | Average Recorded | Interest Income | ||||||||||||||||||||
31-Dec-14 | Balance | Investment | Losses Allocated | Investment | Recognized | |||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||
Owner occupied | $ | 2,448 | $ | 2,318 | $ | 0 | $ | 1,860 | $ | 46 | ||||||||||||||
Non-owner occupied | 391 | 391 | 0 | 653 | 20 | |||||||||||||||||||
Commercial | 531 | 511 | 0 | 1,273 | 22 | |||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||
1-4 family residential | 2,421 | 2,156 | 0 | 1,804 | 79 | |||||||||||||||||||
Home equity lines of credit | 476 | 251 | 0 | 263 | 13 | |||||||||||||||||||
Consumer | 185 | 93 | 0 | 166 | 4 | |||||||||||||||||||
Subtotal | 6,452 | 5,720 | 0 | 6,019 | 184 | |||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||
Owner occupied | 2,882 | 2,882 | 446 | 2,104 | 94 | |||||||||||||||||||
Non-owner occupied | 1,548 | 1,548 | 68 | 1,570 | 81 | |||||||||||||||||||
Commercial | 1,444 | 1,429 | 272 | 818 | 2 | |||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||
1-4 family residential | 944 | 928 | 85 | 1,207 | 41 | |||||||||||||||||||
Home equity lines of credit | 90 | 90 | 3 | 113 | 5 | |||||||||||||||||||
Consumer | 0 | 0 | 0 | 2 | 0 | |||||||||||||||||||
Subtotal | 6,908 | 6,877 | 874 | 5,814 | 223 | |||||||||||||||||||
Total | $ | 13,360 | $ | 12,597 | $ | 874 | $ | 11,833 | $ | 407 | ||||||||||||||
Unpaid Principal | Recorded | Allowance for Loan | Average Recorded | Interest Income | ||||||||||||||||||||
31-Dec-13 | Balance | Investment | Losses Allocated | Investment | Recognized | |||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||
Owner occupied | $ | 4,302 | $ | 3,762 | $ | 0 | $ | 2,643 | $ | 137 | ||||||||||||||
Non-owner occupied | 491 | 389 | 0 | 438 | 0 | |||||||||||||||||||
Commercial | 1,007 | 971 | 0 | 1,363 | 25 | |||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||
1-4 family residential | 1,026 | 961 | 0 | 1,462 | 51 | |||||||||||||||||||
Home equity lines of credit | 107 | 99 | 0 | 194 | 0 | |||||||||||||||||||
Consumer | 111 | 112 | 0 | 9 | 0 | |||||||||||||||||||
Subtotal | 7,044 | 6,294 | 0 | 6,109 | 213 | |||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||
Owner occupied | 886 | 884 | 91 | 2,536 | 39 | |||||||||||||||||||
Non-owner occupied | 1,593 | 1,588 | 75 | 1,975 | 87 | |||||||||||||||||||
Commercial | 1,462 | 1,459 | 110 | 594 | 5 | |||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||
1-4 family residential | 1,458 | 1,347 | 190 | 112 | 48 | |||||||||||||||||||
Home equity lines of credit | 148 | 147 | 12 | 12 | 0 | |||||||||||||||||||
Consumer | 247 | 251 | 82 | 21 | 0 | |||||||||||||||||||
Subtotal | 5,794 | 5,676 | 560 | 5,250 | 179 | |||||||||||||||||||
Total | $ | 12,838 | $ | 11,970 | $ | 560 | $ | 11,359 | $ | 392 | ||||||||||||||
During 2013 the Company, for the first time, began considering consumer loans individually for impairment. Cash basis interest income recognized and interest income recognized was materially equal for 2014 and 2013. | ||||||||||||||||||||||||
Unpaid Principal | Recorded | Allowance for Loan | Average Recorded | |||||||||||||||||||||
31-Dec-12 | Balance | Investment | Losses Allocated | Investment | ||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||
Owner occupied | $ | 3,916 | $ | 3,481 | $ | 0 | $ | 1,490 | ||||||||||||||||
Non-owner occupied | 560 | 461 | 0 | 483 | ||||||||||||||||||||
Other | 0 | 0 | 0 | 114 | ||||||||||||||||||||
Commercial | 1,250 | 1,192 | 0 | 1,075 | ||||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||
1-4 family residential | 971 | 989 | 0 | 747 | ||||||||||||||||||||
Home equity lines of credit | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Consumer | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Subtotal | 6,697 | 6,123 | 0 | 3,909 | ||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||
Owner occupied | 2,207 | 2,169 | 59 | 3,859 | ||||||||||||||||||||
Non-owner occupied | 2,560 | 2,424 | 70 | 2,402 | ||||||||||||||||||||
Other | 0 | 0 | 0 | 119 | ||||||||||||||||||||
Commercial | 948 | 660 | 51 | 478 | ||||||||||||||||||||
Subtotal | 5,715 | 5,253 | 180 | 6,858 | ||||||||||||||||||||
Total | $ | 12,412 | $ | 11,376 | $ | 180 | $ | 10,767 | ||||||||||||||||
Schedule of Investment in Nonaccrual and Loans Past Due 90 Days or More Still on Accrual by Class of Loans | Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. The following table presents the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of December 31, 2014 and 2013: | |||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||
Loans Past Due | Loans Past Due | |||||||||||||||||||||||
90 Days or More | 90 Days or More | |||||||||||||||||||||||
Nonaccrual | Still Accruing | Nonaccrual | Still Accruing | |||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||
Owner occupied | $ | 3,315 | $ | 44 | $ | 2,806 | $ | 0 | ||||||||||||||||
Non-owner occupied | 41 | 0 | 405 | 0 | ||||||||||||||||||||
Commercial | 1,645 | 0 | 1,993 | 13 | ||||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||
1-4 family residential | 2,742 | 195 | 2,584 | 526 | ||||||||||||||||||||
Home equity lines of credit | 139 | 40 | 280 | 0 | ||||||||||||||||||||
Consumer | ||||||||||||||||||||||||
Indirect | 90 | 193 | 308 | 94 | ||||||||||||||||||||
Direct | 36 | 0 | 55 | 3 | ||||||||||||||||||||
Other | 0 | 1 | 0 | 10 | ||||||||||||||||||||
Total | $ | 8,008 | $ | 473 | $ | 8,431 | $ | 646 | ||||||||||||||||
Schedule of Investment in Past Due Loans | The following tables present the aging of the recorded investment in past due loans as of December 31, 2014 and 2013 by class of loans: | |||||||||||||||||||||||
30-59 | 60-89 | Greater Than 90 | ||||||||||||||||||||||
Days Past | Days Past | Days Past Due | Total Past | Loans Not | ||||||||||||||||||||
31-Dec-14 | Due | Due | and Nonaccrual | Due | Past Due | Total | ||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||
Owner occupied | $ | 0 | $ | 0 | $ | 3,359 | $ | 3,359 | $ | 71,272 | $ | 74,631 | ||||||||||||
Non-owner occupied | 0 | 0 | 41 | 41 | 121,872 | 121,913 | ||||||||||||||||||
Other | 0 | 0 | 0 | 0 | 26,029 | 26,029 | ||||||||||||||||||
Commercial | 0 | 0 | 1,645 | 1,645 | 118,505 | 120,150 | ||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||
1-4 family residential | 1,892 | 546 | 2,937 | 5,375 | 147,223 | 152,598 | ||||||||||||||||||
Home equity lines of credit | 205 | 92 | 179 | 476 | 30,779 | 31,255 | ||||||||||||||||||
Consumer | ||||||||||||||||||||||||
Indirect | 2,136 | 406 | 283 | 2,825 | 121,754 | 124,579 | ||||||||||||||||||
Direct | 108 | 18 | 36 | 162 | 8,909 | 9,071 | ||||||||||||||||||
Other | 17 | 6 | 1 | 24 | 3,602 | 3,626 | ||||||||||||||||||
Total | $ | 4,358 | $ | 1,068 | $ | 8,481 | $ | 13,907 | $ | 649,945 | $ | 663,852 | ||||||||||||
30-59 | 60-89 | Greater Than 90 | ||||||||||||||||||||||
Days Past | Days Past | Days Past Due | Total Past | Loans Not | ||||||||||||||||||||
31-Dec-13 | Due | Due | and Nonaccrual | Due | Past Due | Total | ||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||
Owner occupied | $ | 48 | $ | 0 | $ | 2,806 | $ | 2,854 | $ | 83,065 | $ | 85,919 | ||||||||||||
Non-owner occupied | 0 | 0 | 405 | 405 | 106,762 | 107,167 | ||||||||||||||||||
Other | 0 | 0 | 0 | 0 | 24,276 | 24,276 | ||||||||||||||||||
Commercial | 14 | 0 | 2,006 | 2,020 | 103,003 | 105,023 | ||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||
1-4 family residential | 573 | 141 | 3,110 | 3,824 | 139,879 | 143,703 | ||||||||||||||||||
Home equity lines of credit | 35 | 0 | 280 | 315 | 26,133 | 26,448 | ||||||||||||||||||
Consumer | ||||||||||||||||||||||||
Indirect | 2,004 | 539 | 402 | 2,945 | 121,935 | 124,880 | ||||||||||||||||||
Direct | 204 | 31 | 58 | 293 | 9,944 | 10,237 | ||||||||||||||||||
Other | 63 | 6 | 10 | 79 | 2,952 | 3,031 | ||||||||||||||||||
Total | $ | 2,941 | $ | 717 | $ | 9,077 | $ | 12,735 | $ | 617,949 | $ | 630,684 | ||||||||||||
Schedule of Loans by Class Modified as Troubled Debt Restructurings | The following tables present loans by class modified as troubled debt restructurings that occurred during the years ending December 31, 2014, 2013 and 2012: | |||||||||||||||||||||||
Pre-Modification | Post-Modification | |||||||||||||||||||||||
Number of | Outstanding Recorded | Outstanding Recorded | ||||||||||||||||||||||
31-Dec-14 | Loans | Investment | Investment | |||||||||||||||||||||
Troubled Debt Restructurings: | ||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||
Owner occupied | 1 | $ | 303 | $ | 316 | |||||||||||||||||||
Non-owner occupied | 2 | 408 | 408 | |||||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||
1-4 family residential | 21 | 1,042 | 1,059 | |||||||||||||||||||||
Home equity lines of credit | 5 | 128 | 128 | |||||||||||||||||||||
Indirect | 2 | 37 | 37 | |||||||||||||||||||||
Consumer | 1 | 11 | 11 | |||||||||||||||||||||
Total | 32 | $ | 1,929 | $ | 1,959 | |||||||||||||||||||
Pre-Modification | Post-Modification | |||||||||||||||||||||||
Number of | Outstanding Recorded | Outstanding Recorded | ||||||||||||||||||||||
31-Dec-13 | Loans | Investment | Investment | |||||||||||||||||||||
Troubled Debt Restructurings: | ||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||
Owner occupied | 2 | $ | 226 | $ | 239 | |||||||||||||||||||
Commercial | 5 | 649 | 682 | |||||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||
1-4 family residential | 4 | 131 | 98 | |||||||||||||||||||||
Home equity lines of credit | 5 | 214 | 214 | |||||||||||||||||||||
Indirect | 24 | 188 | 188 | |||||||||||||||||||||
Consumer | 1 | 1 | 1 | |||||||||||||||||||||
Total | 41 | $ | 1,409 | $ | 1,422 | |||||||||||||||||||
Pre-Modification | Post-Modification | |||||||||||||||||||||||
Number of | Outstanding Recorded | Outstanding Recorded | ||||||||||||||||||||||
31-Dec-12 | Loans | Investment | Investment | |||||||||||||||||||||
Troubled Debt Restructurings: | ||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||
Owner occupied | 3 | $ | 1,143 | $ | 1,166 | |||||||||||||||||||
Non-owner occupied | 3 | $ | 2,376 | $ | 2,419 | |||||||||||||||||||
Commercial | 3 | 1,072 | 1,098 | |||||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||
1-4 family residential | 7 | 508 | 540 | |||||||||||||||||||||
Total | 16 | $ | 5,099 | $ | 5,223 | |||||||||||||||||||
Risk Category of Loans by Class of Loans | Based on the most recent analysis performed, the risk category of loans by class of loans is as follows: | |||||||||||||||||||||||
31-Dec-14 | Pass | Special Mention | Substandard | Doubtful | Not Rated | Total | ||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||
Owner occupied | $ | 66,036 | $ | 2,534 | $ | 6,061 | $ | 0 | $ | 0 | $ | 74,631 | ||||||||||||
Non-owner occupied | 115,159 | 3,760 | 2,994 | 0 | 0 | 121,913 | ||||||||||||||||||
Other | 25,710 | 0 | 319 | 0 | 0 | 26,029 | ||||||||||||||||||
Commercial | 114,409 | 1,566 | 4,175 | 0 | 0 | 120,150 | ||||||||||||||||||
Total | $ | 321,314 | $ | 7,860 | $ | 13,549 | $ | 0 | $ | 0 | $ | 342,723 | ||||||||||||
31-Dec-13 | Pass | Special Mention | Substandard | Doubtful | Not Rated | Total | ||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||
Owner occupied | $ | 72,398 | $ | 7,312 | $ | 6,209 | $ | 0 | $ | 0 | $ | 85,919 | ||||||||||||
Non-owner occupied | 96,065 | 7,877 | 3,225 | 0 | 0 | 107,167 | ||||||||||||||||||
Other | 23,935 | 0 | 341 | 0 | 0 | 24,276 | ||||||||||||||||||
Commercial | 99,022 | 2,313 | 3,688 | 0 | 0 | 105,023 | ||||||||||||||||||
Total | $ | 291,420 | $ | 17,502 | $ | 13,463 | $ | 0 | $ | 0 | $ | 322,385 | ||||||||||||
Investment in Residential, Consumer and Indirect Auto Loans Based on Payment Activity | The Company considers the performance of the loan portfolio and its impact on the allowance for loan losses. For residential, consumer and indirect loan classes, the Company also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment in residential, consumer and indirect auto loans based on payment activity. Nonperforming loans are loans past due 90 days and still accruing interest and nonaccrual loans. | |||||||||||||||||||||||
Residential Real Estate | Consumer | |||||||||||||||||||||||
1-4 Family Residential | Home Equity Lines of Credit | Indirect | Direct | Other | ||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
Performing | $ | 149,661 | $ | 31,076 | $ | 124,296 | $ | 9,035 | $ | 3,625 | ||||||||||||||
Nonperforming | 2,937 | 179 | 283 | 36 | 1 | |||||||||||||||||||
Total | $ | 152,598 | $ | 31,255 | $ | 124,579 | $ | 9,071 | $ | 3,626 | ||||||||||||||
Residential Real Estate | Consumer | |||||||||||||||||||||||
1-4 Family Residential | Home Equity Lines of Credit | Indirect | Direct | Other | ||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Performing | $ | 140,593 | $ | 26,168 | $ | 124,478 | $ | 10,179 | $ | 3,021 | ||||||||||||||
Nonperforming | 3,110 | 280 | 402 | 58 | 10 | |||||||||||||||||||
Total | $ | 143,703 | $ | 26,448 | $ | 124,880 | $ | 10,237 | $ | 3,031 | ||||||||||||||
Fair_Value_Tables
Fair Value (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||
Assets Measured at Fair Value on Recurring Basis | Assets measured at fair value on a recurring basis are summarized below: | |||||||||||||||||||
Fair Value Measurements at December 31, 2014 Using: | ||||||||||||||||||||
Carrying Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||
Financial Assets | ||||||||||||||||||||
Investment securities available-for sale | ||||||||||||||||||||
U.S Treasury and U.S. government sponsored entities | $ | 24,821 | $ | 0 | $ | 24,821 | $ | 0 | ||||||||||||
State and political subdivisions | 91,881 | 0 | 91,881 | 0 | ||||||||||||||||
Corporate bonds | 931 | 0 | 931 | 0 | ||||||||||||||||
Mortgage-backed securities-residential | 224,362 | 0 | 224,352 | 10 | ||||||||||||||||
Collateralized mortgage obligations | 25,175 | 0 | 25,175 | 0 | ||||||||||||||||
Small Business Administration | 22,419 | 0 | 22,419 | 0 | ||||||||||||||||
Equity securities | 240 | 240 | 0 | 0 | ||||||||||||||||
Total investment securities | $ | 389,829 | $ | 240 | $ | 389,579 | $ | 10 | ||||||||||||
Yield maintenance provisions | $ | 638 | $ | 0 | $ | 638 | $ | 0 | ||||||||||||
Financial Liabilities | ||||||||||||||||||||
Interest rate swaps | $ | 638 | $ | 0 | $ | 638 | $ | 0 | ||||||||||||
Fair Value Measurements at December 31, 2013 Using: | ||||||||||||||||||||
Carrying Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs | |||||||||||||||||
(Level 3) | ||||||||||||||||||||
Financial Assets | ||||||||||||||||||||
Investment securities available-for sale | ||||||||||||||||||||
U.S Treasury and U.S. government sponsored entities | $ | 51,310 | $ | 0 | $ | 51,310 | $ | 0 | ||||||||||||
State and political subdivisions | 94,734 | 0 | 94,734 | 0 | ||||||||||||||||
Corporate bonds | 1,525 | 0 | 1,525 | 0 | ||||||||||||||||
Mortgage-backed securities-residential | 222,980 | 0 | 222,970 | 10 | ||||||||||||||||
Collateralized mortgage obligations | 28,676 | 0 | 28,676 | 0 | ||||||||||||||||
Small Business Administration | 23,573 | 0 | 23,573 | 0 | ||||||||||||||||
Equity securities | 187 | 187 | 0 | 0 | ||||||||||||||||
Total investment securities | $ | 422,985 | $ | 187 | $ | 422,788 | $ | 10 | ||||||||||||
Yield maintenance provisions | $ | 275 | $ | 0 | $ | 275 | $ | 0 | ||||||||||||
Financial Liabilities | ||||||||||||||||||||
Interest rate swaps | $ | 275 | $ | 0 | $ | 275 | $ | 0 | ||||||||||||
Reconciliation for All Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs | The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the period ended December 31: | |||||||||||||||||||
Investment Securities | ||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||
(level 3) | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Beginning Balance | $ | 10 | $ | 11 | $ | 12 | ||||||||||||||
Total unrealized gains or losses: | ||||||||||||||||||||
Included in other comprehensive income | 0 | 0 | 0 | |||||||||||||||||
Repayments | 0 | (1 | ) | (1 | ) | |||||||||||||||
Transfers in and/or out of Level 3 | 0 | 0 | 0 | |||||||||||||||||
Ending Balance | $ | 10 | $ | 10 | $ | 11 | ||||||||||||||
Assets Measured at Fair Value on Non-Recurring Basis | Assets measured at fair value on a non-recurring basis are summarized below: | |||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||
at December 31, 2014 Using: | ||||||||||||||||||||
Carrying Value | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Financial Assets | ||||||||||||||||||||
Impaired loans | ||||||||||||||||||||
Commercial | $ | 807 | $ | 0 | $ | 0 | $ | 807 | ||||||||||||
1–4 family residential | 63 | 0 | 0 | 63 | ||||||||||||||||
Other real estate owned | ||||||||||||||||||||
Commercial real estate | 45 | 0 | 0 | 45 | ||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||
at December 31, 2013 Using: | ||||||||||||||||||||
Carrying Value | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Financial Assets | ||||||||||||||||||||
Impaired loans | ||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||
Owner occupied | $ | 962 | $ | 0 | $ | 0 | $ | 962 | ||||||||||||
Non-owner occupied | 391 | 0 | 0 | 391 | ||||||||||||||||
Commercial | 1,575 | 0 | 0 | 1,575 | ||||||||||||||||
1–4 family residential | 577 | 0 | 0 | 577 | ||||||||||||||||
Home equity lines of credit | 174 | 0 | 0 | 174 | ||||||||||||||||
Consumer Indirect | 142 | 0 | 0 | 142 | ||||||||||||||||
Consumer direct | 22 | 0 | 0 | 22 | ||||||||||||||||
Other real estate owned | ||||||||||||||||||||
1–4 family residential | 33 | 0 | 0 | 33 | ||||||||||||||||
Fair Value Measurements for Financial Instruments | The following table presents quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at year ended 2014 and 2013: | |||||||||||||||||||
31-Dec-14 | Fair value | Valuation Technique(s) | Unobservable Input(s) | Range | ||||||||||||||||
(Weighted Average) | ||||||||||||||||||||
Impaired loans | ||||||||||||||||||||
Commercial | $ | 807 | Sales comparison | Adjustment for differences between comparable sales | -0.6029 | |||||||||||||||
-9.96% | ||||||||||||||||||||
Residential | 63 | Sales comparison | Adjustment for differences between comparable sales | -0.4248 | ||||||||||||||||
(-14.02)% | ||||||||||||||||||||
Other real estate owned | 45 | Sales comparison | Adjustment for differences between comparable sales | -0.2483 | ||||||||||||||||
(-5.79)% | ||||||||||||||||||||
31-Dec-13 | Fair value | Valuation Technique(s) | Unobservable Input(s) | Range | ||||||||||||||||
(Weighted Average) | ||||||||||||||||||||
Impaired loans | ||||||||||||||||||||
Commercial real estate | $ | 1,237 | Sales comparison | Adjustment for differences between comparable sales | -1.1884 | |||||||||||||||
(-7.82%) | ||||||||||||||||||||
116 | Income approach | Adjustment for differences in net operating income | -0.2657 | |||||||||||||||||
(-5.96%) | ||||||||||||||||||||
Commercial | 1,575 | Sales comparison | Adjustment for differences between comparable sales | -0.5859 | ||||||||||||||||
-17.42% | ||||||||||||||||||||
Residential | 751 | Sales comparison | Adjustment for differences between comparable sales | -0.7026 | ||||||||||||||||
(-7.00%) | ||||||||||||||||||||
Consumer | 164 | Sales comparison | Adjustment for differences between comparable sales | -0.58 | ||||||||||||||||
0.00% | ||||||||||||||||||||
Carrying Amounts and Estimated Fair Values of Financial Instruments | The carrying amounts and estimated fair values of financial instruments measured on a recurring basis and not previously presented, at December 31, 2014 and December 31, 2013 are as follows: | |||||||||||||||||||
Fair Value Measurements at December 31, 2014 Using: | ||||||||||||||||||||
Carrying Amount | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Financial assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 27,428 | $ | 11,410 | $ | 16,018 | $ | 0 | $ | 27,428 | ||||||||||
Restricted stock | 4,224 | n/a | n/a | n/a | n/a | |||||||||||||||
Loans held for sale | 511 | 0 | 523 | 0 | 523 | |||||||||||||||
Loans, net | 656,220 | 0 | 0 | 658,993 | 658,993 | |||||||||||||||
Accrued interest receivable | 3,237 | 0 | 1,645 | 1,592 | 3,237 | |||||||||||||||
Financial liabilities | ||||||||||||||||||||
Deposits | 915,703 | 708,752 | 206,708 | 0 | 915,460 | |||||||||||||||
Short-term borrowings | 59,136 | 0 | 59,136 | 0 | 59,136 | |||||||||||||||
Long-term borrowings | 28,381 | 0 | 28,837 | 0 | 28,837 | |||||||||||||||
Accrued interest payable | 402 | 2 | 400 | 0 | 402 | |||||||||||||||
Fair Value Measurements at December 31, 2013 Using: | ||||||||||||||||||||
Carrying Amount | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Financial assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 27,513 | $ | 12,957 | $ | 14,556 | $ | 0 | $ | 27,513 | ||||||||||
Restricted stock | 4,224 | n/a | n/a | n/a | n/a | |||||||||||||||
Loans held for sale | 158 | 0 | 161 | 0 | 161 | |||||||||||||||
Loans, net | 623,116 | 0 | 0 | 623,875 | 623,875 | |||||||||||||||
Accrued interest receivable | 3,399 | 0 | 1,844 | 1,555 | 3,399 | |||||||||||||||
Financial liabilities | ||||||||||||||||||||
Deposits | 915,216 | 688,470 | 228,116 | 0 | 916,586 | |||||||||||||||
Short-term borrowings | 81,617 | 0 | 81,617 | 0 | 81,617 | |||||||||||||||
Long-term borrowings | 19,822 | 0 | 20,526 | 0 | 20,526 | |||||||||||||||
Accrued interest payable | 447 | 2 | 445 | 0 | 447 | |||||||||||||||
Premises_and_Equipment_Tables
Premises and Equipment (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Property Plant And Equipment [Abstract] | |||||||
Premises and Equipment | |||||||
Year-end premises and equipment were as follows: | |||||||
2014 | 2013 | ||||||
Land | $ | 3,143 | $ | 3,086 | |||
Buildings | 20,842 | 20,293 | |||||
Furniture, fixtures and equipment | 11,651 | 11,294 | |||||
Leasehold Improvements | 247 | 254 | |||||
35,883 | 34,927 | ||||||
Less accumulated depreciation | (18,834 | ) | (17,740 | ) | |||
NET BOOK VALUE | $ | 17,049 | $ | 17,187 | |||
Text Block [Abstract] | |||||||
Rent Commitments | |||||||
The Company leases certain branch properties under operating leases. Rent expense was $323, $302, and $265 thousand for 2014, 2013 and 2012. In addition to rent expense, under the leases, common area maintenance and property taxes are paid and the amount can fluctuate according to the costs incurred. Rent commitments, before considering renewal options that generally are present, were as follows: | |||||||
$ | 274 | ||||||
2015 | |||||||
2016 | 210 | ||||||
2017 | 219 | ||||||
2018 | 202 | ||||||
2019 | 194 | ||||||
Thereafter | 515 | ||||||
TOTAL | $ | 1,614 | |||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ||||||||||||||||
Acquired Intangible Assets | Acquired intangible assets were as follows at year end: | |||||||||||||||
2014 | 2013 | |||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | |||||||||||||
Amortized intangible assets: | ||||||||||||||||
Customer relationship intangibles | $ | 5,970 | $ | (2,972 | ) | $ | 5,970 | $ | (2,262 | ) | ||||||
Non-compete contracts | 370 | (295 | ) | 370 | (265 | ) | ||||||||||
Trade Name | 190 | (41 | ) | 190 | (14 | ) | ||||||||||
Total | $ | 6,530 | $ | (3,308 | ) | $ | 6,530 | $ | (2,541 | ) | ||||||
Estimated Amortization Expense | Estimated amortization expense for each of the next five years: | |||||||||||||||
2015 | $ | 667 | ||||||||||||||
2016 | 580 | |||||||||||||||
2017 | 494 | |||||||||||||||
2018 | 410 | |||||||||||||||
2019 | 334 | |||||||||||||||
Thereafter | 737 | |||||||||||||||
TOTAL | $ | 3,222 | ||||||||||||||
Interest_Bearing_Deposits_Tabl
Interest Bearing Deposits (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Interest Bearing Deposits [Abstract] | |||||||
Summary of Scheduled Maturities of Certificates of Deposit | Following is a summary of scheduled maturities of certificates of deposit during the years following December 31, 2013: | ||||||
2015 | 103,868 | ||||||
2016 | 44,741 | ||||||
2017 | 16,913 | ||||||
2018 | 11,443 | ||||||
2019 | 19,933 | ||||||
Thereafter | 10,053 | ||||||
TOTAL | $ | 206,951 | |||||
Summary of Year-end Interest Bearing Deposits | Following is a summary of year-end interest bearing deposits: | ||||||
2014 | 2013 | ||||||
Demand | $ | 126,456 | $ | 124,660 | |||
Money Market | 266,040 | 285,464 | |||||
Savings | 131,559 | 122,453 | |||||
Certificates of Deposit | 206,951 | 226,746 | |||||
TOTAL | $ | 731,006 | $ | 759,323 | |||
Securities_Sold_under_Agreemen1
Securities Sold under Agreements to Repurchase and Other Short-Term Borrowings (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||
Summary of Securities Sold under Agreements to Repurchase | The securities are held in segregated safekeeping accounts at the Federal Reserve Bank and Farmers Trust Company. Information concerning securities sold under agreements to repurchase is summarized as follows | ||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Average balance during the year | $ | 71,573 | $ | 90,951 | $ | 93,149 | |||||||||
Average interest rate during the year | 0.04 | % | 0.04 | % | 0.08 | % | |||||||||
Maximum month-end balance during the year | $ | 78,972 | $ | 100,462 | $ | 98,531 | |||||||||
Weighted average year-end interest rate | 0.06 | % | 0.06 | % | 0.07 | % | |||||||||
Balance at year-end | $ | 58,786 | $ | 75,267 | $ | 79,536 | |||||||||
Federal_Home_Loan_Bank_Advance1
Federal Home Loan Bank Advances and Other Long Term Borrowings (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Advances From Federal Home Loan Banks [Abstract] | ||||||||||||||
Summary of Long-term Advances from the Federal Home Loan Bank | At year end, long-term advances from the Federal Home Loan Bank were as follows: | |||||||||||||
2014 | 2013 | |||||||||||||
Weighted | Weighted | |||||||||||||
Average | Average | |||||||||||||
Amount | Rate | Amount | Rate | |||||||||||
Fixed-rate constant payment advances, at rates from 1.70% to 4.88% at December 31, 2014 and 2013 | $ | 8,381 | 1.72 | % | $ | 9,822 | 1.74 | % | ||||||
Convertible and putable fixed-rate advances, at rates from 2.82% to 4.45% at December 31, 2014 and 2013 | 10,000 | 3.64 | % | 10,000 | 3.64 | % | ||||||||
Cash management advance with a variable rate of .26% at December 31, 2014 | 10,000 | 0.26 | % | 0 | 0 | % | ||||||||
Total advances | $ | 28,381 | 1.87 | % | $ | 19,822 | 2.7 | % | ||||||
Schedule of Repayments of Long-term FHLB Advances | Scheduled repayments of long-term FHLB advances are as follows: | |||||||||||||
Maturing in: | ||||||||||||||
2015 | $ | 16,398 | ||||||||||||
2016 | 1,176 | |||||||||||||
2017 | 6,089 | |||||||||||||
2018 | 1,008 | |||||||||||||
2019 | 931 | |||||||||||||
Thereafter | 2,779 | |||||||||||||
TOTAL | $ | 28,381 | ||||||||||||
Commitments_and_Contingent_Lia1
Commitments and Contingent Liabilities (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Commitments And Contingencies Disclosure [Abstract] | ||||||||||||||||
The Contractual Amounts of Financial Instruments with Off-Balance-Sheet Risk at Year End | The contractual amounts of financial instruments with off-balance-sheet risk at year end were as follows: | |||||||||||||||
2014 | 2013 | |||||||||||||||
Fixed | Variable | Fixed | Variable | |||||||||||||
Rate | Rate | Rate | Rate | |||||||||||||
Commitments to make loans | $ | 471 | $ | 1,881 | $ | 4,373 | $ | 8,722 | ||||||||
Unused lines of credit | $ | 108,382 | $ | 39,205 | $ | 87,562 | $ | 33,351 | ||||||||
Stock_Based_Compensation_Table
Stock Based Compensation (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||||||
Summary of Stock Option Plan | The following is the activity under the Plan during the year ended December 31, 2014: | |||||||
Restricted Stock Units | ||||||||
Units | Weighted Average Grant Date Fair Value | |||||||
Beginning balance | $ | 0 | $ | 0 | ||||
Granted | 46,957 | 7.39 | ||||||
Vested | 0 | 0 | ||||||
Forfeited | 0 | 0 | ||||||
Ending balance | $ | 46,957 | $ | 7.39 | ||||
Regulatory_Matters_Tables
Regulatory Matters (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Regulatory Capital Requirements [Abstract] | |||||||||||||||||||||
Schedule of Actual and Required Capital Amounts and Ratios | Actual and required capital amounts and ratios are presented below at year-end: | ||||||||||||||||||||
Requirement For Capital Adequacy Purposes: | To be Well Capitalized Under Prompt Corrective Action Provisions: | ||||||||||||||||||||
Actual | |||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||
2014 | |||||||||||||||||||||
Total Capital to risk weighted assets | |||||||||||||||||||||
Consolidated | $ | 121,340 | 16.48 | % | $ | 58,523 | 8 | % | N/A | N/A | |||||||||||
Bank | 114,321 | 15.56 | % | 58,773 | 8 | % | $ | 73,466 | 10 | % | |||||||||||
Tier I Capital to risk weighted assets | |||||||||||||||||||||
Consolidated | 113,654 | 15.43 | % | 29,262 | 4 | % | N/A | N/A | |||||||||||||
Bank | 106,689 | 14.52 | % | 29,386 | 4 | % | 44,079 | 6 | % | ||||||||||||
Tier I Capital to average assets | |||||||||||||||||||||
Consolidated | 113,654 | 10.03 | % | 45,313 | 4 | % | N/A | N/A | |||||||||||||
Bank | 106,689 | 9.37 | % | 45,565 | 4 | % | 56,956 | 5 | % | ||||||||||||
2013 | |||||||||||||||||||||
Total Capital to risk weighted assets | |||||||||||||||||||||
Consolidated | $ | 115,730 | 16.26 | % | $ | 56,950 | 8 | % | N/A | N/A | |||||||||||
Bank | 109,154 | 15.42 | % | 56,638 | 8 | % | $ | 70,798 | 10 | % | |||||||||||
Tier I Capital to risk weighted assets | |||||||||||||||||||||
Consolidated | 108,130 | 15.19 | % | 28,475 | 4 | % | N/A | N/A | |||||||||||||
Bank | 101,586 | 14.35 | % | 28,319 | 4 | % | 42,479 | 6 | % | ||||||||||||
Tier I Capital to average assets | |||||||||||||||||||||
Consolidated | 108,130 | 9.36 | % | 46,185 | 4 | % | N/A | N/A | |||||||||||||
Bank | 101,586 | 8.93 | % | 45,478 | 4 | % | 56,848 | 5 | % | ||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Income Tax Disclosure [Abstract] | ||||||||||
Provision for Income Taxes (Credit) | The provision for income taxes (credit) consists of the following: | |||||||||
2014 | 2013 | 2012 | ||||||||
Current expense | $ | 2,369 | $ | 874 | $ | 2,042 | ||||
Deferred expense | 263 | 809 | 1,013 | |||||||
TOTALS | $ | 2,632 | $ | 1,683 | $ | 3,055 | ||||
Effective Tax Rates Differ from Federal Statutory Rate | Effective tax rates differ from federal statutory rate of 35% applied to income before income taxes due to the following: | |||||||||
2014 | 2013 | 2012 | ||||||||
Statutory tax | $ | 4,059 | $ | 3,312 | $ | 4,545 | ||||
Effect of nontaxable interest | (1,179 | ) | (1,325 | ) | (1,203 | ) | ||||
Bank owned life insurance, net | (159 | ) | (123 | ) | (179 | ) | ||||
Effect of nontaxable life insurance death proceeds | 0 | (115 | ) | 0 | ||||||
Other | (89 | ) | (66 | ) | (108 | ) | ||||
ACTUAL TAX | $ | 2,632 | $ | 1,683 | $ | 3,055 | ||||
Deferred Tax Assets (Liabilities) | Deferred tax assets (liabilities) are comprised of the following: | |||||||||
2014 | 2013 | |||||||||
Deferred tax assets: | ||||||||||
Allowance for credit losses | $ | 2,671 | $ | 2,649 | ||||||
Net unrealized loss on securities available for sale | 0 | 3,005 | ||||||||
Deferred and accrued compensation | 848 | 874 | ||||||||
Deferred loan fees and costs | 515 | 511 | ||||||||
Post-retirement benefits | 110 | 174 | ||||||||
AMT credit carryforward | 0 | 367 | ||||||||
Other | 214 | 258 | ||||||||
Gross deferred tax assets | $ | 4,358 | $ | 7,838 | ||||||
Deferred tax liabilities: | ||||||||||
Depreciation and amortization | $ | (1,081 | ) | $ | (1,082 | ) | ||||
Net unrealized gain on securities available for sale | (523 | ) | 0 | |||||||
Federal Home Loan Bank dividends | (482 | ) | (482 | ) | ||||||
Purchase accounting adjustments | (550 | ) | (684 | ) | ||||||
Other | (38 | ) | (49 | ) | ||||||
Gross deferred tax liabilities | (2,674 | ) | (2,297 | ) | ||||||
NET DEFERRED TAX ASSET | $ | 1,684 | $ | 5,541 | ||||||
Other_Comprehensive_Income_Los1
Other Comprehensive Income (Loss) (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Comprehensive Income Net Of Tax [Abstract] | ||||||||||||
Schedule of Other Comprehensive Income (Loss) | The following table represents the detail of other comprehensive income (loss) for the years ended December 31, 2014, 2013 and 2012. | |||||||||||
2014 | ||||||||||||
Pre-tax | Tax | After-Tax | ||||||||||
Unrealized holding gains on available-for-sale securities during the year | $ | 10,486 | $ | (3,670 | ) | $ | 6,816 | |||||
Reclassification adjustment for (gains) losses included in net income (1) | (457 | ) | 160 | (297 | ) | |||||||
Net unrealized gains on available-for-sale securities | 10,029 | (3,510 | ) | 6,519 | ||||||||
Change in funded status of post-retirement health plan | 60 | (21 | ) | 39 | ||||||||
Net other comprehensive income (loss) | $ | 10,089 | $ | (3,531 | ) | $ | 6,558 | |||||
2013 | ||||||||||||
Pre-tax | Tax | After-Tax | ||||||||||
Unrealized holding losses on available-for-sale securities during the year | $ | (19,310 | ) | $ | 6,759 | $ | (12,551 | ) | ||||
Reclassification adjustment for (gains) losses included in net income (1) | (860 | ) | 301 | (559 | ) | |||||||
Net unrealized losses on available-for-sale securities | (20,170 | ) | 7,060 | (13,110 | ) | |||||||
Change in funded status of post-retirement health plan | (3 | ) | 1 | (2 | ) | |||||||
Net other comprehensive income (loss) | $ | (20,173 | ) | $ | 7,061 | $ | (13,112 | ) | ||||
2012 | ||||||||||||
Pre-tax | Tax | After-Tax | ||||||||||
Unrealized holding gains on available-for-sale securities during the year | $ | 307 | $ | (107 | ) | $ | 200 | |||||
Reclassification adjustment for (gains) losses included in net income (1) | (1,059 | ) | 370 | (689 | ) | |||||||
Net unrealized losses on available-for-sale securities | (752 | ) | 263 | (489 | ) | |||||||
Change in funded status of post-retirement health plan | 131 | (46 | ) | 85 | ||||||||
Net other comprehensive income (loss) | $ | (621 | ) | $ | 217 | $ | (404 | ) | ||||
(1) Pre-tax reclassification adjustments relating to available-for-sale securities are reported in security gains and the tax impact is included in income tax expense on the consolidated statements of income. |
Business_Combination_Tables
Business Combination (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Business Combinations [Abstract] | |||||||
Summary of Consideration Paid and Amounts of Assets and Liabilities Assumed | The following table summarizes the consideration paid for NAI and the amounts of the assets acquired and liabilities assumed. | ||||||
Consideration | |||||||
Cash | $ | 2,111 | |||||
Stock | 1,400 | ||||||
Contingent consideration | 920 | ||||||
Fair value of total consideration transferred | $ | 4,431 | |||||
Assets acquired and liabilities assumed | |||||||
Cash | $ | 28 | |||||
Accounts receivable | 300 | ||||||
Premises and equipment | 50 | ||||||
Other assets | 1 | ||||||
Total assets acquired | 379 | ||||||
Liabilities assumed | 81 | ||||||
Net assets acquired | $ | 298 | |||||
Assets and liabilities arising from acquisition | |||||||
Identified intangible assets | 2,290 | ||||||
Deferred tax liability | (802 | ) | |||||
Goodwill | 2,645 | ||||||
Net assets acquired from acquisition | $ | 4,431 | |||||
Pro Forma Information | The pro forma financial information is not necessarily indicative of the results of operations that would have occurred had the transactions been effected on the assumed dates. | ||||||
2013 | 2012 | ||||||
Noninterest income | $ | 15,080 | $ | 14,577 | |||
Net income | $ | 7,665 | $ | 9,883 | |||
Basic and diluted earnings per share | $ | 0.41 | $ | 0.53 | |||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Related Party Transactions [Abstract] | |||||
Loans to Principal Officers, Directors, and Their Affiliates | Loans to principal officers, directors, and their affiliates during 2014 were as follows: | ||||
Total loans at December 31, 2013 | $ | 573 | |||
New loans | 0 | ||||
Effect of changes in composition of related parties | 290 | ||||
Repayments | (103 | ) | |||
Total loans at December 31, 2014 | $ | 760 | |||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Computation of Basic and Diluted Earnings Per Share | The factors used in the earnings per share computation follow: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Basic EPS | ||||||||||||
Net income | $ | 8,965 | $ | 7,780 | $ | 9,932 | ||||||
Weighted average shares outstanding | 18,674,526 | 18,773,491 | 18,791,843 | |||||||||
Basic earnings per share | $ | 0.48 | $ | 0.41 | $ | 0.53 | ||||||
Diluted EPS | ||||||||||||
Net income | $ | 8,965 | $ | 7,780 | $ | 9,932 | ||||||
Weighted average shares out-standing for basic earnings per share | 18,674,526 | 18,773,491 | 18,791,843 | |||||||||
Restricted stock awards | 890 | 0 | 0 | |||||||||
Weighted average shares for diluted earnings per share | 18,675,416 | 18,773,491 | 18,791,843 | |||||||||
Diluted earnings per share | $ | 0.48 | $ | 0.41 | $ | 0.53 | ||||||
InterestRate_Swaps_Tables
Interest-Rate Swaps (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||||||||||||
Summary Information about Interest-Rate Swaps | Summary information about these interest-rate swaps as of year ended December 31, 2014, 2013 and 2012 is as follows: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Notional amounts | $ | 31,459 | $ | 25,195 | $ | 7,060 | ||||||
Weighted average pay rate on interest-rate swaps | 4.26 | % | 4.28 | % | 4.07 | % | ||||||
Weighted average receive rate on interest-rate swaps | 2.67 | % | 2.82 | % | 2.99 | % | ||||||
Weighted average matuirity (years) | 5.9 | 6.3 | 5.8 | |||||||||
Fair value of combined interest-rate swaps | $ | 638 | $ | 275 | $ | 120 | ||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Schedule of Segment Reporting Information | Significant segment totals are reconciled to the financial statements as follows: | |||||||||||||||
31-Dec-14 | Trust Segment | Bank Segment | Retirement Consulting Segment | Eliminations and Others | Consolidated Totals | |||||||||||
Goodwill and other intangibles | $ | 5,285 | $ | 0 | $ | 3,528 | $ | 0 | $ | 8,813 | ||||||
Total assets | $ | 10,643 | $ | 1,121,505 | $ | 4,356 | $ | 463 | $ | 1,136,967 | ||||||
31-Dec-13 | Trust Segment | Bank Segment | Retirement Consulting Segment | Eliminations and Others | Consolidated Totals | |||||||||||
Goodwill and other intangibles | $ | 5,639 | $ | 0 | $ | 4,704 | $ | 0 | $ | 10,343 | ||||||
Total assets | $ | 11,572 | $ | 1,120,091 | $ | 5,090 | $ | 573 | $ | 1,137,326 | ||||||
For year ended 2014 | Trust Segment | Bank Segment | Retirement Consulting Segment | Eliminations and Others | Consolidated Totals | |||||||||||
Net interest income | $ | 53 | $ | 36,297 | $ | 0 | $ | (14 | ) | $ | 36,336 | |||||
Provision for loan losses | 0 | 1,880 | 0 | 0 | $ | 1,880 | ||||||||||
Service fees, security gains and other noninterest income | 6,170 | 7,577 | 1,810 | (254 | ) | $ | 15,303 | |||||||||
Noninterest expense | 4,906 | 30,349 | 2,433 | 474 | $ | 38,162 | ||||||||||
Income before taxes | 1,317 | 11,645 | (623 | ) | (742 | ) | $ | 11,597 | ||||||||
Income tax | 451 | 2,645 | 48 | (512 | ) | $ | 2,632 | |||||||||
Net Income | $ | 866 | $ | 9,000 | $ | (671 | ) | $ | (230 | ) | $ | 8,965 | ||||
For year ended 2013 | Trust Segment | Bank Segment | Retirement Consulting Segment | Eliminations and Others | Consolidated Totals | |||||||||||
Net interest income | $ | 45 | $ | 35,865 | $ | 0 | $ | (14 | ) | $ | 35,896 | |||||
Provision for loan losses | 0 | 1,290 | 0 | 0 | $ | 1,290 | ||||||||||
Service fees, security gains and other noninterest income | 5,667 | 7,838 | 627 | (218 | ) | $ | 13,914 | |||||||||
Noninterest expense | 4,899 | 31,875 | 863 | 1,420 | $ | 39,057 | ||||||||||
Income before taxes | 813 | 10,538 | (236 | ) | (1,652 | ) | $ | 9,463 | ||||||||
Income tax | 282 | 2,043 | (80 | ) | (562 | ) | $ | 1,683 | ||||||||
Net Income | $ | 531 | $ | 8,495 | $ | (156 | ) | $ | (1,090 | ) | $ | 7,780 | ||||
For year ended 2012 | Trust Segment | Bank Segment | Retirement Consulting Segment | Eliminations and Others | Consolidated Totals | |||||||||||
Net interest income | $ | 47 | $ | 36,871 | $ | 0 | $ | (20 | ) | $ | 36,898 | |||||
Provision for loan losses | 0 | 725 | 0 | 0 | $ | 725 | ||||||||||
Service fees, security gains and other noninterest income | 5,571 | 7,192 | 0 | (185 | ) | $ | 12,578 | |||||||||
Noninterest expense | 4,918 | 30,024 | 0 | 822 | $ | 35,764 | ||||||||||
Income before taxes | 700 | 13,314 | 0 | (1,027 | ) | $ | 12,987 | |||||||||
Income tax | 244 | 3,160 | 0 | (349 | ) | $ | 3,055 | |||||||||
Net Income | $ | 456 | $ | 10,154 | $ | 0 | $ | (678 | ) | $ | 9,932 | |||||
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||
Quarterly Financial Data (Unaudited) | |||||||||||||
Quarter Ended 2014 | 31-Mar | 30-Jun | 30-Sep | 31-Dec | |||||||||
Total interest income | $ | 10,063 | $ | 10,118 | $ | 10,413 | $ | 10,321 | |||||
Total interest expense | 1,207 | 1,166 | 1,128 | 1,078 | |||||||||
Net interest income | 8,856 | 8,952 | 9,285 | 9,243 | |||||||||
Provision for loan losses | 330 | 300 | 425 | 825 | |||||||||
Noninterest income | 3,433 | 3,797 | 3,880 | 4,193 | |||||||||
Noninterest expense | 9,141 | 9,378 | 9,776 | 9,867 | |||||||||
Income before income taxes | 2,818 | 3,071 | 2,964 | 2,744 | |||||||||
Income taxes | 627 | 720 | 688 | 597 | |||||||||
Net income | $ | 2,191 | $ | 2,351 | $ | 2,276 | $ | 2,147 | |||||
Earnings per share - basic and diluted | $ | 0.12 | $ | 0.13 | $ | 0.12 | $ | 0.12 | |||||
Quarter Ended 2013 | 31-Mar | 30-Jun | 30-Sep | 31-Dec | |||||||||
Total interest income | $ | 10,266 | $ | 10,273 | $ | 10,122 | $ | 10,298 | |||||
Total interest expense | 1,298 | 1,234 | 1,274 | 1,257 | |||||||||
Net interest income | 8,968 | 9,039 | 8,848 | 9,041 | |||||||||
Provision for loan losses | 255 | 170 | 340 | 525 | |||||||||
Noninterest income | 2,875 | 3,225 | 4,173 | 3,641 | |||||||||
Noninterest expense | 9,088 | 9,822 | 10,926 | 9,221 | |||||||||
Income before income taxes | 2,500 | 2,272 | 1,755 | 2,936 | |||||||||
Income taxes | 495 | 404 | 143 | 641 | |||||||||
Net income | $ | 2,005 | $ | 1,868 | $ | 1,612 | $ | 2,295 | |||||
Earnings per share - basic and diluted | $ | 0.11 | $ | 0.1 | $ | 0.09 | $ | 0.12 | |||||
Parent_Company_Only_Condensed_1
Parent Company Only Condensed Financial Information (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | ||||||||||
Condensed Financial Information | NOTE 23—PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | |||||||||
Below is condensed financial information of Farmers National Banc Corp. (parent company only). This information should be read in conjunction with the consolidated financial statements and related notes. | ||||||||||
December 31, | 2014 | 2013 | ||||||||
BALANCE SHEETS | ||||||||||
Assets: | ||||||||||
Cash | $ | 1,564 | $ | 1,849 | ||||||
Investment in subsidiaries | ||||||||||
Bank | 107,704 | 96,087 | ||||||||
Trust | 10,115 | 11,233 | ||||||||
NAI | 3,604 | 4,275 | ||||||||
Securities available for sale | 172 | 126 | ||||||||
Other | 916 | 725 | ||||||||
TOTAL ASSETS | $ | 124,075 | $ | 114,295 | ||||||
Liabilities: | ||||||||||
Other liabilities | $ | 163 | $ | 932 | ||||||
Note payable | 350 | 350 | ||||||||
Other accounts payable | 2 | 6 | ||||||||
TOTAL LIABILITIES | 515 | 1,288 | ||||||||
TOTAL STOCKHOLDERS' EQUITY | 123,560 | 113,007 | ||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 124,075 | $ | 114,295 | ||||||
STATEMENTS OF INCOME | ||||||||||
Years ended December 31, | 2014 | 2013 | 2012 | |||||||
Income: | ||||||||||
Dividends from subsidiaries | ||||||||||
Bank | $ | 4,013 | $ | 4,333 | $ | 2,712 | ||||
Trust | 2,000 | 980 | 0 | |||||||
NAI | 0 | 0 | 0 | |||||||
Interest and dividends on securities | 1 | 2 | 4 | |||||||
Security gains/(losses) | 0 | 21 | 0 | |||||||
Other income | 764 | 0 | 0 | |||||||
TOTAL INCOME | 6,778 | 5,336 | 2,716 | |||||||
Interest on borrowings | (15 | ) | (16 | ) | (24 | ) | ||||
Other expenses | (1,492 | ) | (1,659 | ) | (1,007 | ) | ||||
Income before income tax benefit and undistributed subsidiary income | 5,271 | 3,661 | 1,685 | |||||||
Income tax benefit | 512 | 562 | 349 | |||||||
Equity in undistributed net income of subsidiaries (dividends in excess of net income) | ||||||||||
Bank | 4,987 | 4,162 | 7,442 | |||||||
Trust | (1,134 | ) | (449 | ) | 456 | |||||
NAI | (671 | ) | (156 | ) | 0 | |||||
NET INCOME | $ | 8,965 | $ | 7,780 | $ | 9,932 | ||||
STATEMENTS OF CASH FLOWS | ||||||||||
Years ended December 31, | 2014 | 2013 | 2012 | |||||||
Cash flows from operating activities: | ||||||||||
Net income | $ | 8,965 | $ | 7,780 | $ | 9,932 | ||||
Adjustments to reconcile net income to net cash | ||||||||||
from operating activities: | ||||||||||
Security (gains)/losses | 0 | (24 | ) | 0 | ||||||
Impairment of securities | 0 | 3 | 0 | |||||||
Dividends in excess of net income (Equity in undistributed net income of subsidiary) | (3,182 | ) | (3,557 | ) | (7,898 | ) | ||||
Other | (982 | ) | (270 | ) | (20 | ) | ||||
NET CASH FROM OPERATING ACTIVITIES | 4,801 | 3,932 | 2,014 | |||||||
Cash flows from investing activities: | ||||||||||
Proceeds from maturities of available for sale securities | 0 | 56 | 0 | |||||||
Purchase of National Associates, Inc. | 0 | (2,111 | ) | 0 | ||||||
NET CASH FROM INVESTING ACTIVITIES | 0 | (2,055 | ) | 0 | ||||||
Cash flows from financing activities: | ||||||||||
Proceeds from reissuance of treasury shares | 32 | 0 | 0 | |||||||
Purchase of treasury shares | (2,882 | ) | (1,606 | ) | (42 | ) | ||||
Cash dividends paid | (2,236 | ) | (2,248 | ) | (3,382 | ) | ||||
Net changes in borrowings | 0 | 0 | (750 | ) | ||||||
Proceeds from dividend reinvestment | 0 | 0 | 243 | |||||||
NET CASH FROM FINANCING ACTIVITIES | (5,086 | ) | (3,854 | ) | (3,931 | ) | ||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | (285 | ) | (1,977 | ) | (1,917 | ) | ||||
Beginning cash and cash equivalents | 1,849 | 3,826 | 5,743 | |||||||
Ending cash and cash equivalents | $ | 1,564 | $ | 1,849 | $ | 3,826 | ||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details Textual) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Segment | |
County_Economy | |
Location | |
Summary of Significant Accounting Policies (Additional Textual) [Abstract] | |
Number of locations served by bank | 20 |
Purchased and sold period of federal fund | 1 day |
Delinquent period of loans after which interest income is discontinued | 90 days |
Number of country economy from which credit risk exposure effected | 5 |
Impairment on loan | $300 |
Recognized tax amount | 50.00% |
Operating segments of business | 3 |
Customer Relationships | |
Summary of Significant Accounting Policies (Textual) [Abstract] | |
Customer relationship and trade name intangibles average amortized period | 13 years |
Buildings | Minimum | |
Summary of Significant Accounting Policies (Textual) [Abstract] | |
Range of buildings and furniture depreciated | 5 years |
Buildings | Maximum | |
Summary of Significant Accounting Policies (Textual) [Abstract] | |
Range of buildings and furniture depreciated | 40 years |
Furniture Fixtures and Equipment | Minimum | |
Summary of Significant Accounting Policies (Textual) [Abstract] | |
Range of buildings and furniture depreciated | 3 years |
Furniture Fixtures and Equipment | Maximum | |
Summary of Significant Accounting Policies (Textual) [Abstract] | |
Range of buildings and furniture depreciated | 10 years |
Residential Real Estate | |
Summary of Significant Accounting Policies (Textual) [Abstract] | |
Loan financing period | 15 years |
Securities_Available_for_Sale_1
Securities Available for Sale (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $388,337 | $431,522 |
Gross Unrealized Gains | 5,219 | 3,489 |
Gross Unrealized Losses | -3,727 | -12,026 |
Fair Value | 389,829 | 422,985 |
Corporate bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 936 | 1,540 |
Gross Unrealized Gains | 3 | 0 |
Gross Unrealized Losses | -8 | -15 |
Fair Value | 931 | 1,525 |
U.S. Treasury and U.S. government sponsored entities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 24,515 | 50,942 |
Gross Unrealized Gains | 418 | 755 |
Gross Unrealized Losses | -112 | -387 |
Fair Value | 24,821 | 51,310 |
State and political subdivisions | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 90,369 | 96,239 |
Gross Unrealized Gains | 2,183 | 1,302 |
Gross Unrealized Losses | -671 | -2,807 |
Fair Value | 91,881 | 94,734 |
Mortgage-backed securities - residential | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 223,216 | 226,865 |
Gross Unrealized Gains | 2,395 | 1,199 |
Gross Unrealized Losses | -1,249 | -5,084 |
Fair Value | 224,362 | 222,980 |
Collateralized mortgage obligations | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 25,988 | 30,227 |
Gross Unrealized Gains | 98 | 162 |
Gross Unrealized Losses | -911 | -1,713 |
Fair Value | 25,175 | 28,676 |
Small Business Administration | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 23,193 | 25,592 |
Gross Unrealized Gains | 1 | 1 |
Gross Unrealized Losses | -775 | -2,020 |
Fair Value | 22,419 | 23,573 |
Equity securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 120 | 117 |
Gross Unrealized Gains | 121 | 70 |
Gross Unrealized Losses | -1 | 0 |
Fair Value | $240 | $187 |
Securities_Available_for_Sale_2
Securities Available for Sale (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Proceeds from sales of available-for-sale securities and the associated gains and losses | |||
Proceeds | $57,170 | $94,016 | $91,197 |
Gross gains | 758 | 1,924 | 1,258 |
Gross losses | ($301) | ($1,061) | ($199) |
Securities_Available_for_Sale_3
Securities Available for Sale (Details Textual) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Securities | ||||||
Securities Available for Sale (Additional Textual) [Abstract] | ||||||
Tax provision related to net realized gain | $160 | [1] | $301 | [1] | $370 | [1] |
Number of securities not more than 10% of stockholder equities | 0 | |||||
Number of securities | 376 | |||||
Number of securities on unrealized loss position | 91 | |||||
Securities Available for Sale (Textual) [Abstract] | ||||||
Pledged to secure public deposits and repurchase agreements and Pledge to qualify carrying amount of securities | 149,000 | 164,000 | ||||
Other than temporary impairment charges recognized | 0 | 3 | ||||
Minimum | ||||||
Securities Available for Sale (Textual) [Abstract] | ||||||
Other than temporary impairment charges recognized | 0 | |||||
Maximum | ||||||
Securities Available for Sale (Textual) [Abstract] | ||||||
Other than temporary impairment charges recognized | 1 | |||||
Equity securities | ||||||
Securities Available for Sale (Textual) [Abstract] | ||||||
Unrealized losses for Mortgage-backed securities residential | 1 | |||||
Farmers Trust Company | ||||||
Securities Available for Sale (Textual) [Abstract] | ||||||
Pledged to secure public deposits and repurchase agreements and Pledge to qualify carrying amount of securities | $100 | $100 | ||||
[1] | Pre-tax reclassification adjustments relating to available-for-sale securities are reported in security gains and the tax impact is included in income tax expense on the consolidated statements of income. |
Securities_Available_for_Sale_4
Securities Available for Sale (Details 2) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Amortized cost and fair value of the debt securities maturity | |
Amortized Cost, Within one year | $12,359 |
Amortized Cost, One to five years | 54,555 |
Amortized Cost, Five to ten years | 39,859 |
Amortized Cost, Beyond ten years | 9,086 |
Amortized Cost, Mortgage-backed securities, collateralized mortgage obligations and Small Business Administration | 272,397 |
Amortized Cost, Totals | 388,256 |
Fair Value, Within one year | 12,480 |
Fair Value, One to five years | 55,070 |
Fair Value, Five to ten years | 40,994 |
Fair Value, Beyond ten years | 9,089 |
Fair Value, Mortgage-backed securities, collateralized mortgage obligations and small business administration | 271,956 |
Fair Value, Totals | $389,589 |
Securities_Available_for_Sale_5
Securities Available for Sale (Details 3) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investment securities with unrealized losses | ||
Fair Value, Less Than 12 Months | $27,281 | $209,920 |
Unrealized Losses, Less Than 12 Months | -216 | -6,920 |
Fair Value, 12 Months or Longer | 132,134 | 67,237 |
Unrealized Losses, 12 Months or Longer | -3,511 | -5,106 |
Fair Value, Total | 159,415 | 277,157 |
Unrealized Losses, Total | -3,727 | -12,026 |
Corporate bonds | ||
Investment securities with unrealized losses | ||
Fair Value, Less Than 12 Months | 0 | 1,052 |
Unrealized Losses, Less Than 12 Months | 0 | -2 |
Fair Value, 12 Months or Longer | 476 | 473 |
Unrealized Losses, 12 Months or Longer | -8 | -13 |
Fair Value, Total | 476 | 1,525 |
Unrealized Losses, Total | -8 | -15 |
U.S. Treasury and U.S. government sponsored entities | ||
Investment securities with unrealized losses | ||
Fair Value, Less Than 12 Months | 498 | 20,776 |
Unrealized Losses, Less Than 12 Months | -2 | -387 |
Fair Value, 12 Months or Longer | 10,159 | 0 |
Unrealized Losses, 12 Months or Longer | -110 | 0 |
Fair Value, Total | 10,657 | 20,776 |
Unrealized Losses, Total | -112 | -387 |
State and political subdivisions | ||
Investment securities with unrealized losses | ||
Fair Value, Less Than 12 Months | 987 | 34,851 |
Unrealized Losses, Less Than 12 Months | -11 | -1,855 |
Fair Value, 12 Months or Longer | 24,063 | 7,492 |
Unrealized Losses, 12 Months or Longer | -660 | -952 |
Fair Value, Total | 25,050 | 42,343 |
Unrealized Losses, Total | -671 | -2,807 |
Mortgage-backed securities - residential | ||
Investment securities with unrealized losses | ||
Fair Value, Less Than 12 Months | 25,770 | 141,024 |
Unrealized Losses, Less Than 12 Months | -202 | -3,735 |
Fair Value, 12 Months or Longer | 55,576 | 27,026 |
Unrealized Losses, 12 Months or Longer | -1,047 | -1,349 |
Fair Value, Total | 81,346 | 168,050 |
Unrealized Losses, Total | -1,249 | -5,084 |
Collateralized mortgage obligations | ||
Investment securities with unrealized losses | ||
Fair Value, Less Than 12 Months | 0 | 5,283 |
Unrealized Losses, Less Than 12 Months | 0 | -450 |
Fair Value, 12 Months or Longer | 19,541 | 15,726 |
Unrealized Losses, 12 Months or Longer | -911 | -1,263 |
Fair Value, Total | 19,541 | 21,009 |
Unrealized Losses, Total | -911 | -1,713 |
Small Business Administration | ||
Investment securities with unrealized losses | ||
Fair Value, Less Than 12 Months | 0 | 6,927 |
Unrealized Losses, Less Than 12 Months | 0 | -491 |
Fair Value, 12 Months or Longer | 22,319 | 16,520 |
Unrealized Losses, 12 Months or Longer | -775 | -1,529 |
Fair Value, Total | 22,319 | 23,447 |
Unrealized Losses, Total | -775 | -2,020 |
Equity securities | ||
Investment securities with unrealized losses | ||
Fair Value, Less Than 12 Months | 26 | 7 |
Unrealized Losses, Less Than 12 Months | -1 | 0 |
Fair Value, 12 Months or Longer | 0 | 0 |
Unrealized Losses, 12 Months or Longer | 0 | 0 |
Fair Value, Total | 26 | 7 |
Unrealized Losses, Total | ($1) | $0 |
Loans_Details
Loans (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Schedule of loan balances | ||||
Subtotal | $661,625 | $628,702 | ||
Net deferred loan (fees) costs | 2,227 | 1,982 | ||
Allowance for loan losses | -7,632 | -7,568 | -7,629 | -9,820 |
NET LOANS | 656,220 | 623,116 | ||
Commercial real estate, Owner occupied | ||||
Schedule of loan balances | ||||
Commercial real estate | 74,829 | 86,286 | ||
Commercial real estate, Non-owner occupied | ||||
Schedule of loan balances | ||||
Commercial real estate | 122,228 | 107,625 | ||
Commercial real estate, Other | ||||
Schedule of loan balances | ||||
Commercial real estate | 26,137 | 24,381 | ||
Commercial | ||||
Schedule of loan balances | ||||
Commercial | 120,493 | 105,023 | ||
Allowance for loan losses | -1,420 | -1,219 | -1,453 | -1,529 |
Residential real estate, 1-4 family residential | ||||
Schedule of loan balances | ||||
Residential real estate | 153,055 | 144,225 | ||
Residential real estate, Home equity lines of credit | ||||
Schedule of loan balances | ||||
Residential real estate | 31,255 | 26,448 | ||
Consumer, Indirect | ||||
Schedule of loan balances | ||||
Consumer | 120,931 | 121,446 | ||
Consumer, Direct | ||||
Schedule of loan balances | ||||
Consumer | 9,071 | 10,237 | ||
Consumer, Other | ||||
Schedule of loan balances | ||||
Consumer | $3,626 | $3,031 |
Loans_Details_1
Loans (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for loan losses | |||||||||||
Beginning balance | $7,568 | $7,629 | $7,568 | $7,629 | $9,820 | ||||||
Provision for loan losses | 825 | 425 | 300 | 330 | 525 | 340 | 170 | 255 | 1,880 | 1,290 | 725 |
Loans charged off | -3,134 | -2,653 | -3,951 | ||||||||
Recoveries | 1,318 | 1,302 | 1,035 | ||||||||
Ending balance | 7,632 | 7,568 | 7,632 | 7,568 | 7,629 | ||||||
Commercial Real Estate | |||||||||||
Allowance for loan losses | |||||||||||
Beginning balance | 2,752 | 3,392 | 2,752 | 3,392 | 4,880 | ||||||
Provision for loan losses | -50 | -306 | -516 | ||||||||
Loans charged off | -151 | -505 | -1,225 | ||||||||
Recoveries | 125 | 171 | 253 | ||||||||
Ending balance | 2,676 | 2,752 | 2,676 | 2,752 | 3,392 | ||||||
Commercial | |||||||||||
Allowance for loan losses | |||||||||||
Beginning balance | 1,219 | 1,453 | 1,219 | 1,453 | 1,529 | ||||||
Provision for loan losses | 357 | -397 | 792 | ||||||||
Loans charged off | -185 | -99 | -918 | ||||||||
Recoveries | 29 | 262 | 50 | ||||||||
Ending balance | 1,420 | 1,219 | 1,420 | 1,219 | 1,453 | ||||||
Residential Real Estate | |||||||||||
Allowance for loan losses | |||||||||||
Beginning balance | 1,964 | 1,569 | 1,964 | 1,569 | 1,802 | ||||||
Provision for loan losses | 233 | 674 | 469 | ||||||||
Loans charged off | -585 | -326 | -806 | ||||||||
Recoveries | 77 | 47 | 104 | ||||||||
Ending balance | 1,689 | 1,964 | 1,689 | 1,964 | 1,569 | ||||||
Consumer | |||||||||||
Allowance for loan losses | |||||||||||
Beginning balance | 1,419 | 951 | 1,419 | 951 | 972 | ||||||
Provision for loan losses | 1,370 | 1,369 | 353 | ||||||||
Loans charged off | -2,213 | -1,723 | -1,002 | ||||||||
Recoveries | 1,087 | 822 | 628 | ||||||||
Ending balance | 1,663 | 1,419 | 1,663 | 1,419 | 951 | ||||||
Unallocated | |||||||||||
Allowance for loan losses | |||||||||||
Beginning balance | 214 | 264 | 214 | 264 | 637 | ||||||
Provision for loan losses | -30 | -50 | -373 | ||||||||
Loans charged off | 0 | 0 | 0 | ||||||||
Recoveries | 0 | 0 | 0 | ||||||||
Ending balance | $184 | $214 | $184 | $214 | $264 |
Loans_Details_2
Loans (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | $874 | $560 | ||
Collectively evaluated for impairment | 6,758 | 7,008 | ||
Total ending allowance balance | 7,632 | 7,568 | 7,629 | 9,820 |
Loans: | ||||
Loans individually evaluated for impairment | 12,597 | 11,970 | ||
Loans collectively evaluated for impairment | 651,255 | 618,714 | ||
Loans | 663,852 | 630,684 | ||
Commercial Real Estate | ||||
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | 514 | 166 | ||
Collectively evaluated for impairment | 2,162 | 2,586 | ||
Total ending allowance balance | 2,676 | 2,752 | 3,392 | 4,880 |
Loans: | ||||
Loans individually evaluated for impairment | 7,139 | 6,623 | ||
Loans collectively evaluated for impairment | 215,434 | 210,739 | ||
Loans | 222,573 | 217,362 | ||
Commercial | ||||
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | 272 | 110 | ||
Collectively evaluated for impairment | 1,148 | 1,109 | ||
Total ending allowance balance | 1,420 | 1,219 | 1,453 | 1,529 |
Loans: | ||||
Loans individually evaluated for impairment | 1,940 | 2,430 | ||
Loans collectively evaluated for impairment | 118,210 | 102,593 | ||
Loans | 120,150 | 105,023 | ||
Residential Real Estate | ||||
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | 88 | 202 | ||
Collectively evaluated for impairment | 1,601 | 1,762 | ||
Total ending allowance balance | 1,689 | 1,964 | 1,569 | 1,802 |
Loans: | ||||
Loans individually evaluated for impairment | 3,425 | 2,554 | ||
Loans collectively evaluated for impairment | 180,428 | 167,597 | ||
Loans | 183,853 | 170,151 | ||
Consumer | ||||
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | 0 | 82 | ||
Collectively evaluated for impairment | 1,663 | 1,337 | ||
Total ending allowance balance | 1,663 | 1,419 | 951 | 972 |
Loans: | ||||
Loans individually evaluated for impairment | 93 | 363 | ||
Loans collectively evaluated for impairment | 137,183 | 137,785 | ||
Loans | 137,276 | 138,148 | ||
Unallocated | ||||
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 184 | 214 | ||
Total ending allowance balance | 184 | 214 | 264 | 637 |
Loans: | ||||
Loans individually evaluated for impairment | 0 | 0 | ||
Loans collectively evaluated for impairment | 0 | 0 | ||
Loans | $0 | $0 |
Loans_Details_3
Loans (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Financing Receivable Impaired [Line Items] | |||
Unpaid Principal Balance | $13,360 | $12,838 | $12,412 |
Recorded Investment | 12,597 | 11,970 | 11,376 |
Allowance for Loan Losses Allocated | 874 | 560 | 180 |
Average Recorded Investment | 11,833 | 11,359 | 10,767 |
Interest Income Recognized | 407 | ||
Commercial real estate, Owner occupied | |||
Financing Receivable Impaired [Line Items] | |||
Unpaid Principal Balance, With no related allowance recorded | 2,448 | 4,302 | 3,916 |
Unpaid Principal Balance, With an allowance recorded | 2,882 | 886 | 2,207 |
Recorded Investment, With no related allowance recorded | 2,318 | 3,762 | 3,481 |
Recorded Investment, With an allowance recorded | 2,882 | 884 | 2,169 |
Allowance for Loan Losses Allocated | 446 | 91 | 59 |
Average Recorded Investment, With no related allowance recorded | 1,860 | 2,643 | 1,490 |
Average Recorded Investment, With an allowance recorded | 2,104 | 2,536 | 3,859 |
Interest Income Recognized, With no related allowance recorded | 46 | ||
Interest Income Recognized, With related allowance recorded | 94 | ||
Commercial real estate, Non-owner occupied | |||
Financing Receivable Impaired [Line Items] | |||
Unpaid Principal Balance, With no related allowance recorded | 391 | 491 | 560 |
Unpaid Principal Balance, With an allowance recorded | 1,548 | 1,593 | 2,560 |
Recorded Investment, With no related allowance recorded | 391 | 389 | 461 |
Recorded Investment, With an allowance recorded | 1,548 | 1,588 | 2,424 |
Allowance for Loan Losses Allocated | 68 | 75 | 70 |
Average Recorded Investment, With no related allowance recorded | 653 | 438 | 483 |
Average Recorded Investment, With an allowance recorded | 1,570 | 1,975 | 2,402 |
Interest Income Recognized, With no related allowance recorded | 20 | ||
Interest Income Recognized, With related allowance recorded | 81 | ||
Commercial | |||
Financing Receivable Impaired [Line Items] | |||
Unpaid Principal Balance, With no related allowance recorded | 531 | 1,007 | 1,250 |
Unpaid Principal Balance, With an allowance recorded | 1,444 | 1,462 | 948 |
Recorded Investment, With no related allowance recorded | 511 | 971 | 1,192 |
Recorded Investment, With an allowance recorded | 1,429 | 1,459 | 660 |
Allowance for Loan Losses Allocated | 272 | 110 | 51 |
Average Recorded Investment, With no related allowance recorded | 1,273 | 1,363 | 1,075 |
Average Recorded Investment, With an allowance recorded | 818 | 594 | 478 |
Interest Income Recognized, With no related allowance recorded | 22 | ||
Interest Income Recognized, With related allowance recorded | 2 | ||
Residential real estate, 1-4 family residential | |||
Financing Receivable Impaired [Line Items] | |||
Unpaid Principal Balance, With no related allowance recorded | 2,421 | 1,026 | 971 |
Unpaid Principal Balance, With an allowance recorded | 944 | 1,458 | |
Recorded Investment, With no related allowance recorded | 2,156 | 961 | 989 |
Recorded Investment, With an allowance recorded | 928 | 1,347 | |
Allowance for Loan Losses Allocated | 85 | 190 | |
Average Recorded Investment, With no related allowance recorded | 1,804 | 1,462 | 747 |
Average Recorded Investment, With an allowance recorded | 1,207 | 112 | |
Interest Income Recognized, With no related allowance recorded | 79 | ||
Interest Income Recognized, With related allowance recorded | 41 | ||
Residential real estate, Home equity lines of credit | |||
Financing Receivable Impaired [Line Items] | |||
Unpaid Principal Balance, With no related allowance recorded | 476 | 107 | 0 |
Unpaid Principal Balance, With an allowance recorded | 90 | 148 | |
Recorded Investment, With no related allowance recorded | 251 | 99 | 0 |
Recorded Investment, With an allowance recorded | 90 | 147 | |
Allowance for Loan Losses Allocated | 3 | 12 | |
Average Recorded Investment, With no related allowance recorded | 263 | 194 | 0 |
Average Recorded Investment, With an allowance recorded | 113 | 12 | |
Interest Income Recognized, With no related allowance recorded | 13 | ||
Interest Income Recognized, With related allowance recorded | 5 | ||
Consumer | |||
Financing Receivable Impaired [Line Items] | |||
Unpaid Principal Balance, With no related allowance recorded | 185 | 111 | 0 |
Unpaid Principal Balance, With an allowance recorded | 0 | 247 | |
Recorded Investment, With no related allowance recorded | 93 | 112 | 0 |
Recorded Investment, With an allowance recorded | 0 | 251 | |
Allowance for Loan Losses Allocated | 0 | 82 | |
Average Recorded Investment, With no related allowance recorded | 166 | 9 | 0 |
Average Recorded Investment, With an allowance recorded | 2 | 21 | |
Interest Income Recognized, With no related allowance recorded | 4 | ||
Interest Income Recognized, With related allowance recorded | 0 | ||
No Related Allowance | |||
Financing Receivable Impaired [Line Items] | |||
Unpaid Principal Balance, With no related allowance recorded | 6,452 | 7,044 | 6,697 |
Recorded Investment, With no related allowance recorded | 5,720 | 6,294 | 6,123 |
Average Recorded Investment, With no related allowance recorded | 6,019 | 6,109 | 3,909 |
Interest Income Recognized, With no related allowance recorded | 184 | ||
Allowance | |||
Financing Receivable Impaired [Line Items] | |||
Unpaid Principal Balance, With an allowance recorded | 6,908 | 5,794 | 5,715 |
Recorded Investment, With an allowance recorded | 6,877 | 5,676 | 5,253 |
Allowance for Loan Losses Allocated | 874 | 560 | 180 |
Average Recorded Investment, With an allowance recorded | 5,814 | 5,250 | 6,858 |
Interest Income Recognized, With related allowance recorded | 223 | ||
Commercial real estate, Other | |||
Financing Receivable Impaired [Line Items] | |||
Unpaid Principal Balance, With no related allowance recorded | 0 | ||
Unpaid Principal Balance, With an allowance recorded | 0 | ||
Recorded Investment, With no related allowance recorded | 0 | ||
Recorded Investment, With an allowance recorded | 0 | ||
Allowance for Loan Losses Allocated | 0 | ||
Average Recorded Investment, With no related allowance recorded | 114 | ||
Average Recorded Investment, With an allowance recorded | $119 |
Loans_Details_4
Loans (Details 4) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of investment in nonaccrual and loans past due over 90 days still on accrual by class of loans | ||
Nonaccrual | $8,008 | $8,431 |
Loans Past Due 90 Days or More Still Accruing | 473 | 646 |
Commercial real estate, Owner occupied | ||
Schedule of investment in nonaccrual and loans past due over 90 days still on accrual by class of loans | ||
Nonaccrual | 3,315 | 2,806 |
Loans Past Due 90 Days or More Still Accruing | 44 | 0 |
Commercial real estate, Non-owner occupied | ||
Schedule of investment in nonaccrual and loans past due over 90 days still on accrual by class of loans | ||
Nonaccrual | 41 | 405 |
Loans Past Due 90 Days or More Still Accruing | 0 | 0 |
Commercial | ||
Schedule of investment in nonaccrual and loans past due over 90 days still on accrual by class of loans | ||
Nonaccrual | 1,645 | 1,993 |
Loans Past Due 90 Days or More Still Accruing | 0 | 13 |
Residential real estate, 1-4 family residential | ||
Schedule of investment in nonaccrual and loans past due over 90 days still on accrual by class of loans | ||
Nonaccrual | 2,742 | 2,584 |
Loans Past Due 90 Days or More Still Accruing | 195 | 526 |
Residential real estate, Home equity lines of credit | ||
Schedule of investment in nonaccrual and loans past due over 90 days still on accrual by class of loans | ||
Nonaccrual | 139 | 280 |
Loans Past Due 90 Days or More Still Accruing | 40 | 0 |
Consumer, Indirect | ||
Schedule of investment in nonaccrual and loans past due over 90 days still on accrual by class of loans | ||
Nonaccrual | 90 | 308 |
Loans Past Due 90 Days or More Still Accruing | 193 | 94 |
Consumer, Direct | ||
Schedule of investment in nonaccrual and loans past due over 90 days still on accrual by class of loans | ||
Nonaccrual | 36 | 55 |
Loans Past Due 90 Days or More Still Accruing | 0 | 3 |
Consumer, Other | ||
Schedule of investment in nonaccrual and loans past due over 90 days still on accrual by class of loans | ||
Nonaccrual | 0 | 0 |
Loans Past Due 90 Days or More Still Accruing | $1 | $10 |
Loans_Details_5
Loans (Details 5) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of investment in past due loans | ||
30-59 Days Past Due | $4,358 | $2,941 |
60-89 Days Past Due | 1,068 | 717 |
Greater than 90 Days Past Due and Nonaccrual | 8,481 | 9,077 |
Total Past Due | 13,907 | 12,735 |
Loans Not Past Due | 649,945 | 617,949 |
Loans | 663,852 | 630,684 |
Commercial real estate, Owner occupied | ||
Schedule of investment in past due loans | ||
30-59 Days Past Due | 0 | 48 |
60-89 Days Past Due | 0 | 0 |
Greater than 90 Days Past Due and Nonaccrual | 3,359 | 2,806 |
Total Past Due | 3,359 | 2,854 |
Loans Not Past Due | 71,272 | 83,065 |
Loans | 74,631 | 85,919 |
Commercial real estate, Non-owner occupied | ||
Schedule of investment in past due loans | ||
30-59 Days Past Due | 0 | 0 |
60-89 Days Past Due | 0 | 0 |
Greater than 90 Days Past Due and Nonaccrual | 41 | 405 |
Total Past Due | 41 | 405 |
Loans Not Past Due | 121,872 | 106,762 |
Loans | 121,913 | 107,167 |
Commercial real estate, Other | ||
Schedule of investment in past due loans | ||
30-59 Days Past Due | 0 | 0 |
60-89 Days Past Due | 0 | 0 |
Greater than 90 Days Past Due and Nonaccrual | 0 | 0 |
Total Past Due | 0 | 0 |
Loans Not Past Due | 26,029 | 24,276 |
Loans | 26,029 | 24,276 |
Commercial | ||
Schedule of investment in past due loans | ||
30-59 Days Past Due | 0 | 14 |
60-89 Days Past Due | 0 | 0 |
Greater than 90 Days Past Due and Nonaccrual | 1,645 | 2,006 |
Total Past Due | 1,645 | 2,020 |
Loans Not Past Due | 118,505 | 103,003 |
Loans | 120,150 | 105,023 |
Residential real estate, 1-4 family residential | ||
Schedule of investment in past due loans | ||
30-59 Days Past Due | 1,892 | 573 |
60-89 Days Past Due | 546 | 141 |
Greater than 90 Days Past Due and Nonaccrual | 2,937 | 3,110 |
Total Past Due | 5,375 | 3,824 |
Loans Not Past Due | 147,223 | 139,879 |
Loans | 152,598 | 143,703 |
Residential real estate, Home equity lines of credit | ||
Schedule of investment in past due loans | ||
30-59 Days Past Due | 205 | 35 |
60-89 Days Past Due | 92 | 0 |
Greater than 90 Days Past Due and Nonaccrual | 179 | 280 |
Total Past Due | 476 | 315 |
Loans Not Past Due | 30,779 | 26,133 |
Loans | 31,255 | 26,448 |
Consumer, Indirect | ||
Schedule of investment in past due loans | ||
30-59 Days Past Due | 2,136 | 2,004 |
60-89 Days Past Due | 406 | 539 |
Greater than 90 Days Past Due and Nonaccrual | 283 | 402 |
Total Past Due | 2,825 | 2,945 |
Loans Not Past Due | 121,754 | 121,935 |
Loans | 124,579 | 124,880 |
Consumer, Direct | ||
Schedule of investment in past due loans | ||
30-59 Days Past Due | 108 | 204 |
60-89 Days Past Due | 18 | 31 |
Greater than 90 Days Past Due and Nonaccrual | 36 | 58 |
Total Past Due | 162 | 293 |
Loans Not Past Due | 8,909 | 9,944 |
Loans | 9,071 | 10,237 |
Consumer, Other | ||
Schedule of investment in past due loans | ||
30-59 Days Past Due | 17 | 63 |
60-89 Days Past Due | 6 | 6 |
Greater than 90 Days Past Due and Nonaccrual | 1 | 10 |
Total Past Due | 24 | 79 |
Loans Not Past Due | 3,602 | 2,952 |
Loans | $3,626 | $3,031 |
Loans_Details_Textual
Loans (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Loans (Additional Textual) [Abstract] | |||
Total troubled debt restructurings | $8,100,000 | $8,300,000 | |
Specific reserves to customers | 242,000 | 397,000 | |
Commitments to lend additional amounts to borrowers classified as troubled debt restructurings | 25,000 | 16,000 | |
Payment default loan period | 12 months | 12 months | |
Modified troubled debt restructuring | 4,200,000 | 3,000,000 | |
Maximum commercial loan and commercial real estate relationships | 750,000 | ||
Loans (Textual) [Abstract] | |||
Allowance adjustment charge offs | 42,000 | 50,000 | 418,000 |
Increase in the allowance for loan losses as a result of the allowance | 11,000 | 66,000 | 306,000 |
Commercial Loan | |||
Loans (Additional Textual) [Abstract] | |||
Modified troubled debt restructuring | 204,000 | ||
Commercial real estate loan | |||
Loans (Additional Textual) [Abstract] | |||
Modified troubled debt restructuring | 205,000 | ||
Residential real estate loan | |||
Loans (Additional Textual) [Abstract] | |||
Modified troubled debt restructuring | $35,000 | ||
Minimum | |||
Loans (Textual) [Abstract] | |||
Reduction of the notes stated interest rate | 0.25% | ||
Maturity period loans | 15 months | ||
Maximum | |||
Loans (Textual) [Abstract] | |||
Reduction of the notes stated interest rate | 3.25% | ||
Maturity period loans | 126 months |
Loans_Details_6
Loans (Details 6) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Loan | Loan | |
Financing Receivable Recorded Investment [Line Items] | ||
Number of Loans | 32 | 41 |
Pre-Modification Outstanding Recorded Investment | $1,929 | $1,409 |
Post-Modification Outstanding Recorded Investment | 1,959 | 1,422 |
Commercial real estate, Owner occupied | ||
Financing Receivable Recorded Investment [Line Items] | ||
Number of Loans | 1 | 2 |
Pre-Modification Outstanding Recorded Investment | 303 | 226 |
Post-Modification Outstanding Recorded Investment | 316 | 239 |
Commercial real estate, Non-owner occupied | ||
Financing Receivable Recorded Investment [Line Items] | ||
Number of Loans | 2 | |
Pre-Modification Outstanding Recorded Investment | 408 | |
Post-Modification Outstanding Recorded Investment | 408 | |
Residential real estate, 1-4 family residential | ||
Financing Receivable Recorded Investment [Line Items] | ||
Number of Loans | 21 | 4 |
Pre-Modification Outstanding Recorded Investment | 1,042 | 131 |
Post-Modification Outstanding Recorded Investment | 1,059 | 98 |
Residential real estate, Home equity lines of credit | ||
Financing Receivable Recorded Investment [Line Items] | ||
Number of Loans | 5 | 5 |
Pre-Modification Outstanding Recorded Investment | 128 | 214 |
Post-Modification Outstanding Recorded Investment | 128 | 214 |
Consumer, Indirect | ||
Financing Receivable Recorded Investment [Line Items] | ||
Number of Loans | 2 | 24 |
Pre-Modification Outstanding Recorded Investment | 37 | 188 |
Post-Modification Outstanding Recorded Investment | 37 | 188 |
Consumer | ||
Financing Receivable Recorded Investment [Line Items] | ||
Number of Loans | 1 | 1 |
Pre-Modification Outstanding Recorded Investment | 11 | 1 |
Post-Modification Outstanding Recorded Investment | 11 | 1 |
Commercial Loan | ||
Financing Receivable Recorded Investment [Line Items] | ||
Number of Loans | 5 | |
Pre-Modification Outstanding Recorded Investment | 649 | |
Post-Modification Outstanding Recorded Investment | $682 |
Loans_Details_7
Loans (Details 7) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Risk category of loans by class of loans | ||
Total risk category of loans by class of loans | $342,723 | $322,385 |
Pass | ||
Risk category of loans by class of loans | ||
Total risk category of loans by class of loans | 321,314 | 291,420 |
Special Mention | ||
Risk category of loans by class of loans | ||
Total risk category of loans by class of loans | 7,860 | 17,502 |
Substandard | ||
Risk category of loans by class of loans | ||
Total risk category of loans by class of loans | 13,549 | 13,463 |
Doubtful | ||
Risk category of loans by class of loans | ||
Total risk category of loans by class of loans | 0 | 0 |
Not Rated | ||
Risk category of loans by class of loans | ||
Total risk category of loans by class of loans | 0 | 0 |
Commercial real estate, Owner occupied | ||
Risk category of loans by class of loans | ||
Total risk category of loans by class of loans | 74,631 | 85,919 |
Commercial real estate, Owner occupied | Pass | ||
Risk category of loans by class of loans | ||
Total risk category of loans by class of loans | 66,036 | 72,398 |
Commercial real estate, Owner occupied | Special Mention | ||
Risk category of loans by class of loans | ||
Total risk category of loans by class of loans | 2,534 | 7,312 |
Commercial real estate, Owner occupied | Substandard | ||
Risk category of loans by class of loans | ||
Total risk category of loans by class of loans | 6,061 | 6,209 |
Commercial real estate, Owner occupied | Doubtful | ||
Risk category of loans by class of loans | ||
Total risk category of loans by class of loans | 0 | 0 |
Commercial real estate, Owner occupied | Not Rated | ||
Risk category of loans by class of loans | ||
Total risk category of loans by class of loans | 0 | 0 |
Commercial real estate, Non-owner occupied | ||
Risk category of loans by class of loans | ||
Total risk category of loans by class of loans | 121,913 | 107,167 |
Commercial real estate, Non-owner occupied | Pass | ||
Risk category of loans by class of loans | ||
Total risk category of loans by class of loans | 115,159 | 96,065 |
Commercial real estate, Non-owner occupied | Special Mention | ||
Risk category of loans by class of loans | ||
Total risk category of loans by class of loans | 3,760 | 7,877 |
Commercial real estate, Non-owner occupied | Substandard | ||
Risk category of loans by class of loans | ||
Total risk category of loans by class of loans | 2,994 | 3,225 |
Commercial real estate, Non-owner occupied | Doubtful | ||
Risk category of loans by class of loans | ||
Total risk category of loans by class of loans | 0 | 0 |
Commercial real estate, Non-owner occupied | Not Rated | ||
Risk category of loans by class of loans | ||
Total risk category of loans by class of loans | 0 | 0 |
Commercial real estate, Other | ||
Risk category of loans by class of loans | ||
Total risk category of loans by class of loans | 26,029 | 24,276 |
Commercial real estate, Other | Pass | ||
Risk category of loans by class of loans | ||
Total risk category of loans by class of loans | 25,710 | 23,935 |
Commercial real estate, Other | Special Mention | ||
Risk category of loans by class of loans | ||
Total risk category of loans by class of loans | 0 | 0 |
Commercial real estate, Other | Substandard | ||
Risk category of loans by class of loans | ||
Total risk category of loans by class of loans | 319 | 341 |
Commercial real estate, Other | Doubtful | ||
Risk category of loans by class of loans | ||
Total risk category of loans by class of loans | 0 | 0 |
Commercial real estate, Other | Not Rated | ||
Risk category of loans by class of loans | ||
Total risk category of loans by class of loans | 0 | 0 |
Commercial | ||
Risk category of loans by class of loans | ||
Total risk category of loans by class of loans | 120,150 | 105,023 |
Commercial | Pass | ||
Risk category of loans by class of loans | ||
Total risk category of loans by class of loans | 114,409 | 99,022 |
Commercial | Special Mention | ||
Risk category of loans by class of loans | ||
Total risk category of loans by class of loans | 1,566 | 2,313 |
Commercial | Substandard | ||
Risk category of loans by class of loans | ||
Total risk category of loans by class of loans | 4,175 | 3,688 |
Commercial | Doubtful | ||
Risk category of loans by class of loans | ||
Total risk category of loans by class of loans | 0 | 0 |
Commercial | Not Rated | ||
Risk category of loans by class of loans | ||
Total risk category of loans by class of loans | $0 | $0 |
Loans_Details_8
Loans (Details 8) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investment in residential, consumer and indirect auto loans based on payment activity | ||
Loans | $663,852 | $630,684 |
Residential real estate, 1-4 family residential | ||
Investment in residential, consumer and indirect auto loans based on payment activity | ||
Loans | 152,598 | 143,703 |
Residential real estate, 1-4 family residential | Performing | ||
Investment in residential, consumer and indirect auto loans based on payment activity | ||
Loans | 149,661 | 140,593 |
Residential real estate, 1-4 family residential | Nonperforming | ||
Investment in residential, consumer and indirect auto loans based on payment activity | ||
Loans | 2,937 | 3,110 |
Residential real estate, Home equity lines of credit | ||
Investment in residential, consumer and indirect auto loans based on payment activity | ||
Loans | 31,255 | 26,448 |
Residential real estate, Home equity lines of credit | Performing | ||
Investment in residential, consumer and indirect auto loans based on payment activity | ||
Loans | 31,076 | 26,168 |
Residential real estate, Home equity lines of credit | Nonperforming | ||
Investment in residential, consumer and indirect auto loans based on payment activity | ||
Loans | 179 | 280 |
Consumer, Indirect | ||
Investment in residential, consumer and indirect auto loans based on payment activity | ||
Loans | 124,579 | 124,880 |
Consumer, Indirect | Performing | ||
Investment in residential, consumer and indirect auto loans based on payment activity | ||
Loans | 124,296 | 124,478 |
Consumer, Indirect | Nonperforming | ||
Investment in residential, consumer and indirect auto loans based on payment activity | ||
Loans | 283 | 402 |
Consumer, Direct | ||
Investment in residential, consumer and indirect auto loans based on payment activity | ||
Loans | 9,071 | 10,237 |
Consumer, Direct | Performing | ||
Investment in residential, consumer and indirect auto loans based on payment activity | ||
Loans | 9,035 | 10,179 |
Consumer, Direct | Nonperforming | ||
Investment in residential, consumer and indirect auto loans based on payment activity | ||
Loans | 36 | 58 |
Consumer, Other | ||
Investment in residential, consumer and indirect auto loans based on payment activity | ||
Loans | 3,626 | 3,031 |
Consumer, Other | Performing | ||
Investment in residential, consumer and indirect auto loans based on payment activity | ||
Loans | 3,625 | 3,021 |
Consumer, Other | Nonperforming | ||
Investment in residential, consumer and indirect auto loans based on payment activity | ||
Loans | $1 | $10 |
Fair_Value_Details
Fair Value (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | $389,829 | $422,985 |
Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 389,829 | 422,985 |
Yield maintenance provisions | 638 | 275 |
Corporate bonds | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 931 | 1,525 |
Corporate bonds | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 931 | 1,525 |
U.S. Treasury and U.S. government sponsored entities | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 24,821 | 51,310 |
U.S. Treasury and U.S. government sponsored entities | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 24,821 | 51,310 |
State and political subdivisions | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 91,881 | 94,734 |
State and political subdivisions | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 91,881 | 94,734 |
Mortgage-backed securities - residential | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 224,362 | 222,980 |
Mortgage-backed securities - residential | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 224,362 | 222,980 |
Collateralized mortgage obligations | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 25,175 | 28,676 |
Collateralized mortgage obligations | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 25,175 | 28,676 |
Small Business Administration | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 22,419 | 23,573 |
Small Business Administration | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 22,419 | 23,573 |
Equity securities | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 240 | 187 |
Equity securities | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 240 | 187 |
Interest rate swaps | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Derivative assets | 638 | 275 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 240 | 187 |
Yield maintenance provisions | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate bonds | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury and U.S. government sponsored entities | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | State and political subdivisions | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage-backed securities - residential | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Collateralized mortgage obligations | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Small Business Administration | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity securities | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 240 | 187 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate swaps | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Derivative assets | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 389,579 | 422,788 |
Yield maintenance provisions | 638 | 275 |
Significant Other Observable Inputs (Level 2) | Corporate bonds | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 931 | 1,525 |
Significant Other Observable Inputs (Level 2) | U.S. Treasury and U.S. government sponsored entities | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 24,821 | 51,310 |
Significant Other Observable Inputs (Level 2) | State and political subdivisions | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 91,881 | 94,734 |
Significant Other Observable Inputs (Level 2) | Mortgage-backed securities - residential | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 224,352 | 222,970 |
Significant Other Observable Inputs (Level 2) | Collateralized mortgage obligations | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 25,175 | 28,676 |
Significant Other Observable Inputs (Level 2) | Small Business Administration | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 22,419 | 23,573 |
Significant Other Observable Inputs (Level 2) | Equity securities | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Interest rate swaps | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Derivative assets | 638 | 275 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 10 | 10 |
Yield maintenance provisions | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Corporate bonds | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) | U.S. Treasury and U.S. government sponsored entities | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) | State and political subdivisions | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Mortgage-backed securities - residential | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 10 | 10 |
Significant Unobservable Inputs (Level 3) | Collateralized mortgage obligations | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Small Business Administration | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Equity securities | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Interest rate swaps | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Derivative assets | $0 | $0 |
Fair_Value_Details_Textual
Fair Value (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Property | Property | |
Fair Value Disclosures [Abstract] | ||
Fair value assets liabilities transfers amount between level 1 and level 2 | $0 | $0 |
Fair Value (Textual) [Abstract] | ||
Impaired loans carried at fair value | 988,000 | 4,200,000 |
Impaired loans collateral dependent loans valuation allowance | 117,000 | 363,000 |
Additional provision for loan losses | 992,000 | 916,000 |
Troubled debt restructurings not carried at fair value | 4,200,000 | 3,000,000 |
Other real estate owned measured at fair value less costs to sell | 45,000 | |
Real estate owned properties sold | 10 | |
Net carrying amount of other real estate owned | 33,000 | |
Number of properties charged down reflecting updated appraisals | 1 | 3 |
Write down of other real estate owned | $5,000 | $21,000 |
Maximum maturity period of short term borrowings | 90 days |
Fair_Value_Details_1
Fair Value (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation for all assets measured at fair value on a recurring basis using significant unobservable inputs | |||
Beginning Balance | $10 | $11 | $12 |
Total unrealized gains or losses: | |||
Included in other comprehensive income | 0 | 0 | 0 |
Repayments | 0 | -1 | -1 |
Transfers in and/or out of Level 3 | 0 | 0 | 0 |
Ending Balance | $10 | $10 | $11 |
Fair_Value_Details_2
Fair Value (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Fair value assets measured on non-recurring basis | |||
Recorded Investment | $12,597 | $11,970 | $11,376 |
Commercial | Fair Value, Measurements, Nonrecurring | |||
Fair value assets measured on non-recurring basis | |||
Recorded Investment | 807 | 1,575 | |
Commercial | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Nonrecurring | |||
Fair value assets measured on non-recurring basis | |||
Recorded Investment | 0 | 0 | |
Commercial | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Nonrecurring | |||
Fair value assets measured on non-recurring basis | |||
Recorded Investment | 0 | 0 | |
Commercial | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Nonrecurring | |||
Fair value assets measured on non-recurring basis | |||
Recorded Investment | 807 | 1,575 | |
Residential real estate loan | Fair Value, Measurements, Nonrecurring | |||
Fair value assets measured on non-recurring basis | |||
Recorded Investment | 63 | 577 | |
Residential real estate loan | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Nonrecurring | |||
Fair value assets measured on non-recurring basis | |||
Recorded Investment | 0 | 0 | |
Residential real estate loan | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Nonrecurring | |||
Fair value assets measured on non-recurring basis | |||
Recorded Investment | 0 | 0 | |
Residential real estate loan | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Nonrecurring | |||
Fair value assets measured on non-recurring basis | |||
Recorded Investment | 63 | 577 | |
Other real estate owned, Commercial real estate | Fair Value, Measurements, Nonrecurring | |||
Fair value assets measured on non-recurring basis | |||
Recorded Investment | 45 | ||
Other real estate owned, Commercial real estate | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Nonrecurring | |||
Fair value assets measured on non-recurring basis | |||
Recorded Investment | 0 | ||
Other real estate owned, Commercial real estate | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Nonrecurring | |||
Fair value assets measured on non-recurring basis | |||
Recorded Investment | 0 | ||
Other real estate owned, Commercial real estate | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Nonrecurring | |||
Fair value assets measured on non-recurring basis | |||
Recorded Investment | 45 | ||
Commercial real estate, Owner occupied | Fair Value, Measurements, Nonrecurring | |||
Fair value assets measured on non-recurring basis | |||
Recorded Investment | 962 | ||
Commercial real estate, Owner occupied | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Nonrecurring | |||
Fair value assets measured on non-recurring basis | |||
Recorded Investment | 0 | ||
Commercial real estate, Owner occupied | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Nonrecurring | |||
Fair value assets measured on non-recurring basis | |||
Recorded Investment | 0 | ||
Commercial real estate, Owner occupied | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Nonrecurring | |||
Fair value assets measured on non-recurring basis | |||
Recorded Investment | 962 | ||
Commercial real estate, Non-owner occupied | Fair Value, Measurements, Nonrecurring | |||
Fair value assets measured on non-recurring basis | |||
Recorded Investment | 391 | ||
Commercial real estate, Non-owner occupied | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Nonrecurring | |||
Fair value assets measured on non-recurring basis | |||
Recorded Investment | 0 | ||
Commercial real estate, Non-owner occupied | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Nonrecurring | |||
Fair value assets measured on non-recurring basis | |||
Recorded Investment | 0 | ||
Commercial real estate, Non-owner occupied | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Nonrecurring | |||
Fair value assets measured on non-recurring basis | |||
Recorded Investment | 391 | ||
Home equity lines of credit | Fair Value, Measurements, Nonrecurring | |||
Fair value assets measured on non-recurring basis | |||
Recorded Investment | 174 | ||
Home equity lines of credit | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Nonrecurring | |||
Fair value assets measured on non-recurring basis | |||
Recorded Investment | 0 | ||
Home equity lines of credit | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Nonrecurring | |||
Fair value assets measured on non-recurring basis | |||
Recorded Investment | 0 | ||
Home equity lines of credit | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Nonrecurring | |||
Fair value assets measured on non-recurring basis | |||
Recorded Investment | 174 | ||
Consumer, Indirect | Fair Value, Measurements, Nonrecurring | |||
Fair value assets measured on non-recurring basis | |||
Recorded Investment | 142 | ||
Consumer, Indirect | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Nonrecurring | |||
Fair value assets measured on non-recurring basis | |||
Recorded Investment | 0 | ||
Consumer, Indirect | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Nonrecurring | |||
Fair value assets measured on non-recurring basis | |||
Recorded Investment | 0 | ||
Consumer, Indirect | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Nonrecurring | |||
Fair value assets measured on non-recurring basis | |||
Recorded Investment | 142 | ||
Consumer, Direct | Fair Value, Measurements, Nonrecurring | |||
Fair value assets measured on non-recurring basis | |||
Recorded Investment | 22 | ||
Consumer, Direct | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Nonrecurring | |||
Fair value assets measured on non-recurring basis | |||
Recorded Investment | 0 | ||
Consumer, Direct | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Nonrecurring | |||
Fair value assets measured on non-recurring basis | |||
Recorded Investment | 0 | ||
Consumer, Direct | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Nonrecurring | |||
Fair value assets measured on non-recurring basis | |||
Recorded Investment | 22 | ||
Residential real estate, 1-4 family residential | Fair Value, Measurements, Nonrecurring | |||
Fair value assets measured on non-recurring basis | |||
Recorded Investment | 33 | ||
Residential real estate, 1-4 family residential | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Nonrecurring | |||
Fair value assets measured on non-recurring basis | |||
Recorded Investment | 0 | ||
Residential real estate, 1-4 family residential | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Nonrecurring | |||
Fair value assets measured on non-recurring basis | |||
Recorded Investment | 0 | ||
Residential real estate, 1-4 family residential | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Nonrecurring | |||
Fair value assets measured on non-recurring basis | |||
Recorded Investment | $33 |
Fair_Value_Details_3
Fair Value (Details 3) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Sales Comparison Valuation | Commercial | ||
Fair value measurements for financial instruments | ||
Fair value | $807 | $1,575 |
Fair Value Measurements Valuation Technique(s) Description | Sales comparison | Sales comparison |
Sales Comparison Valuation | Commercial | Minimum | ||
Fair value measurements for financial instruments | ||
Adjustment for differences between comparable sales, Percent | -27.43% | -25.56% |
Sales Comparison Valuation | Commercial | Maximum | ||
Fair value measurements for financial instruments | ||
Adjustment for differences between comparable sales, Percent | 32.86% | 33.03% |
Sales Comparison Valuation | Commercial | Weighted Average | ||
Fair value measurements for financial instruments | ||
Adjustment for differences between comparable sales, Percent | 9.96% | 17.42% |
Sales Comparison Valuation | Residential real estate loan | ||
Fair value measurements for financial instruments | ||
Fair value | 63 | 751 |
Fair Value Measurements Valuation Technique(s) Description | Sales comparison | Sales comparison |
Sales Comparison Valuation | Residential real estate loan | Minimum | ||
Fair value measurements for financial instruments | ||
Adjustment for differences between comparable sales, Percent | -18.32% | -46.81% |
Sales Comparison Valuation | Residential real estate loan | Maximum | ||
Fair value measurements for financial instruments | ||
Adjustment for differences between comparable sales, Percent | 24.16% | 23.45% |
Sales Comparison Valuation | Residential real estate loan | Weighted Average | ||
Fair value measurements for financial instruments | ||
Adjustment for differences between comparable sales, Percent | -14.02% | -7.00% |
Sales Comparison Valuation | Other real estate owned | ||
Fair value measurements for financial instruments | ||
Fair value | 45 | |
Fair Value Measurements Valuation Technique(s) Description | Sales comparison | |
Sales Comparison Valuation | Other real estate owned | Minimum | ||
Fair value measurements for financial instruments | ||
Adjustment for differences between comparable sales, Percent | -12.86% | |
Sales Comparison Valuation | Other real estate owned | Maximum | ||
Fair value measurements for financial instruments | ||
Adjustment for differences between comparable sales, Percent | 11.97% | |
Sales Comparison Valuation | Other real estate owned | Weighted Average | ||
Fair value measurements for financial instruments | ||
Adjustment for differences between comparable sales, Percent | 5.79% | |
Sales Comparison Valuation | Consumer | ||
Fair value measurements for financial instruments | ||
Fair value | 164 | |
Fair Value Measurements Valuation Technique(s) Description | Sales comparison | |
Sales Comparison Valuation | Consumer | Minimum | ||
Fair value measurements for financial instruments | ||
Adjustment for differences between comparable sales, Percent | -29.00% | |
Sales Comparison Valuation | Consumer | Maximum | ||
Fair value measurements for financial instruments | ||
Adjustment for differences between comparable sales, Percent | 29.00% | |
Sales Comparison Valuation | Consumer | Weighted Average | ||
Fair value measurements for financial instruments | ||
Adjustment for differences between comparable sales, Percent | 0.00% | |
Sales Comparison Valuation | Commercial real estate loan | ||
Fair value measurements for financial instruments | ||
Fair value | 1,237 | |
Fair Value Measurements Valuation Technique(s) Description | Sales comparison | |
Sales Comparison Valuation | Commercial real estate loan | Minimum | ||
Fair value measurements for financial instruments | ||
Adjustment for differences between comparable sales, Percent | -41.59% | |
Sales Comparison Valuation | Commercial real estate loan | Maximum | ||
Fair value measurements for financial instruments | ||
Adjustment for differences between comparable sales, Percent | 77.25% | |
Sales Comparison Valuation | Commercial real estate loan | Weighted Average | ||
Fair value measurements for financial instruments | ||
Adjustment for differences between comparable sales, Percent | -7.82% | |
Income Approach Valuation | Commercial real estate loan | ||
Fair value measurements for financial instruments | ||
Fair value | $116 | |
Fair Value Measurements Valuation Technique(s) Description | Income approach | |
Income Approach Valuation | Commercial real estate loan | Minimum | ||
Fair value measurements for financial instruments | ||
Adjustment for differences between comparable sales, Percent | -13.64% | |
Income Approach Valuation | Commercial real estate loan | Maximum | ||
Fair value measurements for financial instruments | ||
Adjustment for differences between comparable sales, Percent | 12.93% | |
Income Approach Valuation | Commercial real estate loan | Weighted Average | ||
Fair value measurements for financial instruments | ||
Adjustment for differences between comparable sales, Percent | -5.96% |
Fair_Value_Details_4
Fair Value (Details 4) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Financial assets | ||||
Cash and cash equivalents, Carrying Amount | $27,428 | $27,513 | $37,759 | $52,422 |
Loans held for sale, Carrying Amount | 511 | 158 | ||
Loans, net, Carrying Amount | 656,220 | 623,116 | ||
Financial liabilities | ||||
Deposits, Carrying Amount | 915,703 | 915,216 | ||
Short-term borrowings, Carrying Amount | 59,136 | 81,617 | ||
Long-term borrowings | 28,381 | 19,822 | ||
Fair Value, Measurements, Recurring | ||||
Financial assets | ||||
Cash and cash equivalents, Carrying Amount | 27,428 | 27,513 | ||
Restricted stock, Carrying Amount | 4,224 | 4,224 | ||
Loans held for sale, Carrying Amount | 511 | 158 | ||
Loans, net, Carrying Amount | 656,220 | 623,116 | ||
Accrued interest receivable, Carrying Amount | 3,237 | 3,399 | ||
Cash and cash equivalents, Fair Value | 27,428 | 27,513 | ||
Loans held for sale, Fair Value | 523 | 161 | ||
Loans, net, Fair Value | 658,993 | 623,875 | ||
Accrued interest receivable, Fair Value | 3,237 | 3,399 | ||
Financial liabilities | ||||
Deposits, Carrying Amount | 915,703 | 915,216 | ||
Short-term borrowings, Carrying Amount | 59,136 | 81,617 | ||
Long-term borrowings | 28,381 | 19,822 | ||
Accrued interest payable, Carrying Amount | 402 | 447 | ||
Deposits, Fair Value | 915,460 | 916,586 | ||
Short-term borrowings, Fair Value | 59,136 | 81,617 | ||
Long-term borrowings, Fair Value | 28,837 | 20,526 | ||
Accrued interest payable, Fair value | 402 | 447 | ||
Fair Value, Measurements, Recurring | Level 1 | ||||
Financial assets | ||||
Cash and cash equivalents, Fair Value | 11,410 | 12,957 | ||
Loans held for sale, Fair Value | 0 | 0 | ||
Loans, net, Fair Value | 0 | 0 | ||
Accrued interest receivable, Fair Value | 0 | 0 | ||
Financial liabilities | ||||
Deposits, Fair Value | 708,752 | 688,470 | ||
Short-term borrowings, Fair Value | 0 | 0 | ||
Long-term borrowings, Fair Value | 0 | 0 | ||
Accrued interest payable, Fair value | 2 | 2 | ||
Fair Value, Measurements, Recurring | Level 2 | ||||
Financial assets | ||||
Cash and cash equivalents, Fair Value | 16,018 | 14,556 | ||
Loans held for sale, Fair Value | 523 | 161 | ||
Loans, net, Fair Value | 0 | 0 | ||
Accrued interest receivable, Fair Value | 1,645 | 1,844 | ||
Financial liabilities | ||||
Deposits, Fair Value | 206,708 | 228,116 | ||
Short-term borrowings, Fair Value | 59,136 | 81,617 | ||
Long-term borrowings, Fair Value | 28,837 | 20,526 | ||
Accrued interest payable, Fair value | 400 | 445 | ||
Fair Value, Measurements, Recurring | Level 3 | ||||
Financial assets | ||||
Cash and cash equivalents, Fair Value | 0 | 0 | ||
Loans held for sale, Fair Value | 0 | 0 | ||
Loans, net, Fair Value | 658,993 | 623,875 | ||
Accrued interest receivable, Fair Value | 1,592 | 1,555 | ||
Financial liabilities | ||||
Deposits, Fair Value | 0 | 0 | ||
Short-term borrowings, Fair Value | 0 | 0 | ||
Long-term borrowings, Fair Value | 0 | 0 | ||
Accrued interest payable, Fair value | $0 | $0 |
Premises_and_Equipment_Details
Premises and Equipment (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Premises and equipment | ||
Premises and equipment, gross | $35,883 | $34,927 |
Less accumulated depreciation | -18,834 | -17,740 |
NET BOOK VALUE | 17,049 | 17,187 |
Land | ||
Premises and equipment | ||
Premises and equipment, gross | 3,143 | 3,086 |
Buildings | ||
Premises and equipment | ||
Premises and equipment, gross | 20,842 | 20,293 |
Furniture Fixtures and Equipment | ||
Premises and equipment | ||
Premises and equipment, gross | 11,651 | 11,294 |
Leasehold Improvements | ||
Premises and equipment | ||
Premises and equipment, gross | $247 | $254 |
Premises_and_Equipment_Details1
Premises and Equipment (Details Textual) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 01, 2013 | |
Location | ||||
Premises and Equipment (Textual) [Abstract] | ||||
Depreciation expense | $1,100,000 | $1,200,000 | $1,200,000 | |
Purchase of property | 395,000 | |||
Possession of property | 2014-06 | |||
Number of retail branch | 2 | |||
Asset value | 45,000 | |||
Rent expense | $323,000 | $302,000 | $265,000 |
Premises_and_Equipment_Details2
Premises and Equipment (Details 1) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Rent commitments | |
2015 | $274 |
2016 | 210 |
2017 | 219 |
2018 | 202 |
2019 | 194 |
Thereafter | 515 |
TOTAL | $1,614 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Details Textual) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill and Intangible Assets (Textual) [Abstract] | |||
Goodwill associated with the Company's purchase of National Associates, Inc. and Farmers Trust Company | $5,591 | $6,354 | |
Impairment Charges | 763 | ||
Aggregate amortization expense | $767 | $624 | $409 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Acquired intangible assets | ||
Gross Carrying Amount | $6,530 | $6,530 |
Accumulated Amortization | -3,308 | -2,541 |
Customer Relationships | ||
Acquired intangible assets | ||
Gross Carrying Amount | 5,970 | 5,970 |
Accumulated Amortization | -2,972 | -2,262 |
Non-compete contracts | ||
Acquired intangible assets | ||
Gross Carrying Amount | 370 | 370 |
Accumulated Amortization | -295 | -265 |
Trade name | ||
Acquired intangible assets | ||
Gross Carrying Amount | 190 | 190 |
Accumulated Amortization | ($41) | ($14) |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets (Details 1) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Estimated amortization expense | |
2015 | $667 |
2016 | 580 |
2017 | 494 |
2018 | 410 |
2019 | 334 |
Thereafter | 737 |
TOTAL | $3,222 |
Interest_Bearing_Deposits_Deta
Interest Bearing Deposits (Details Textual) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Interest Bearing Deposits (Textual) [Abstract] | ||
Minimum time deposits amount | $250,000 | |
Time deposits of $100 thousand or more | $26,300,000 | $22,000,000 |
Interest_Bearing_Deposits_Deta1
Interest Bearing Deposits (Details) (Certificates of Deposit, USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Certificates of Deposit | |
Summary of scheduled maturities of certificates of deposit | |
2015 | $103,868 |
2016 | 44,741 |
2017 | 16,913 |
2018 | 11,443 |
2019 | 19,933 |
Thereafter | 10,053 |
TOTAL | $206,951 |
Interest_Bearing_Deposits_Deta2
Interest Bearing Deposits (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Summary of year-end interest bearing deposits | ||
Demand | $126,456 | $124,660 |
Money Market | 266,040 | 285,464 |
Savings | 131,559 | 122,453 |
Certificates of Deposit | 206,951 | 226,746 |
TOTAL | $731,006 | $759,323 |
Securities_Sold_under_Agreemen2
Securities Sold under Agreements to Repurchase and Other Short-Term Borrowings (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | |
Jan. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Bank | |||
Securities Sold under Agreements to Repurchase and Other Short Term Borrowings (Additional Textual) [Abstract] | |||
Maturity of repurchase agreements | 89 days | ||
Interest rate, effective percentage | 4.50% | 4.50% | |
Domestic Line of Credit | |||
Securities Sold under Agreements to Repurchase and Other Short Term Borrowings (Textual) [Abstract] | |||
Access to lines of credit at domestic banks | $24,500,000 | ||
Number of domestic banks | 2 | ||
Lines of credit withdrawal amount | 6,000,000 | ||
Unsecured revolving line of credit, outstanding balance | 0 | ||
Lines of credit repaid amount | 6,000,000 | ||
Revolving Credit Facility | |||
Securities Sold under Agreements to Repurchase and Other Short Term Borrowings (Textual) [Abstract] | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | ||
Revolving Credit Facility | Farmers National Banc Corp | Unsecured Debt | |||
Securities Sold under Agreements to Repurchase and Other Short Term Borrowings (Textual) [Abstract] | |||
Unsecured revolving line of credit, outstanding balance | 1,500,000 | ||
Letter of Credit | |||
Securities Sold under Agreements to Repurchase and Other Short Term Borrowings (Textual) [Abstract] | |||
Unsecured revolving line of credit, outstanding balance | 350,000 | 350,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | ||
Letter of Credit | Farmers National Banc Corp | Unsecured Debt | |||
Securities Sold under Agreements to Repurchase and Other Short Term Borrowings (Textual) [Abstract] | |||
Unsecured revolving line of credit, outstanding balance | 5,000,000 | ||
US Treasury and Government Short-term Debt Securities | |||
Securities Sold under Agreements to Repurchase and Other Short Term Borrowings (Textual) [Abstract] | |||
Carrying amount of securities sold under repurchase agreement | $147,800,000 | $152,400,000 |
Securities_Sold_under_Agreemen3
Securities Sold under Agreements to Repurchase and Other Short-Term Borrowings (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of securities sold under agreements to repurchase | |||
Average balance during the year | $71,573 | $90,951 | $93,149 |
Average interest rate during the year | 0.04% | 0.04% | 0.08% |
Maximum month-end balance during the year | 78,972 | 100,462 | 98,531 |
Weighted average year-end interest rate | 0.06% | 0.06% | 0.07% |
Balance at year-end | $58,786 | $75,267 | $79,536 |
Federal_Home_Loan_Bank_Advance2
Federal Home Loan Bank Advances and Other Long Term Borrowings (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Summary of long-term advances from the Federal Home Loan Bank | ||
Amount of Advances | $28,381 | $19,822 |
Weighted Average Interest Rate | 1.87% | 2.70% |
Fixed-rate constant payment advances | ||
Summary of long-term advances from the Federal Home Loan Bank | ||
Amount of Advances | 8,381 | 9,822 |
Weighted Average Interest Rate | 1.72% | 1.74% |
Convertible and putable fixed-rate advances | ||
Summary of long-term advances from the Federal Home Loan Bank | ||
Amount of Advances | 10,000 | 10,000 |
Weighted Average Interest Rate | 3.64% | 3.64% |
Cash management advance | ||
Summary of long-term advances from the Federal Home Loan Bank | ||
Amount of Advances | $10,000 | $0 |
Weighted Average Interest Rate | 0.26% | 0.00% |
Federal_Home_Loan_Bank_Advance3
Federal Home Loan Bank Advances and Other Long Term Borrowings (Details Textual) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Federal Home Loan Bank Advances and Other Long Term Borrowings (Additional Textual) [Abstract] | ||
Residential mortgage loans | $110.30 | $104.40 |
Additional borrowing limit | 81.9 | |
Fixed-rate constant payment advances | ||
Federal Home Loan Bank Advances and Other Long Term Borrowings (Textual) [Abstract] | ||
Federal Home Loan Bank interest rate from | 1.70% | 1.70% |
Federal Home Loan Bank interest rate to | 4.88% | 4.88% |
Federal Home Loan Bank Advances and Other Long Term Borrowings (Additional Textual) [Abstract] | ||
Retained amount of putable FHLB fixed-rate advances | 10 | |
Convertible and putable fixed-rate advances | ||
Federal Home Loan Bank Advances and Other Long Term Borrowings (Textual) [Abstract] | ||
Federal Home Loan Bank interest rate from | 2.82% | 2.82% |
Federal Home Loan Bank interest rate to | 4.45% | 4.45% |
Cash management advance | ||
Federal Home Loan Bank Advances and Other Long Term Borrowings (Textual) [Abstract] | ||
Federal Home Loan Bank interest rate | 0.26% | |
Federal Home Loan Bank Advances and Other Long Term Borrowings (Additional Textual) [Abstract] | ||
Federal home loan bank advances, advance received | $10 |
Federal_Home_Loan_Bank_Advance4
Federal Home Loan Bank Advances and Other Long Term Borrowings (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Maturing in: | ||
2015 | $16,398 | |
2016 | 1,176 | |
2017 | 6,089 | |
2018 | 1,008 | |
2019 | 931 | |
Thereafter | 2,779 | |
TOTAL | $28,381 | $19,822 |
Commitments_and_Contingent_Lia2
Commitments and Contingent Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Commitments to make loans | Fixed Rate | ||
The contractual amounts of financial instruments with off-balance-sheet risk at year end | ||
Total contractual amounts of financial instruments with off-balance-sheet risk | $471 | $4,373 |
Commitments to make loans | Variable Rate | ||
The contractual amounts of financial instruments with off-balance-sheet risk at year end | ||
Total contractual amounts of financial instruments with off-balance-sheet risk | 1,881 | 8,722 |
Unused lines of credit | Fixed Rate | ||
The contractual amounts of financial instruments with off-balance-sheet risk at year end | ||
Total contractual amounts of financial instruments with off-balance-sheet risk | 108,382 | 87,562 |
Unused lines of credit | Variable Rate | ||
The contractual amounts of financial instruments with off-balance-sheet risk at year end | ||
Total contractual amounts of financial instruments with off-balance-sheet risk | $39,205 | $33,351 |
Commitments_and_Contingent_Lia3
Commitments and Contingent Liabilities (Details Textual) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Commitments and Contingent Liabilities (Additional Textual) [Abstract] | ||
Maximum commitment period to make loans | 30 days | |
Standby letters of credit contractual value | $5.20 | $4.90 |
Minimum | ||
Commitments and Contingent Liabilities (Textual) [Abstract] | ||
Debt Instrument, Interest Rate, Stated Percentage | 0.25% | |
Maximum | ||
Commitments and Contingent Liabilities (Textual) [Abstract] | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.25% | |
Fixed Rate | Minimum | ||
Commitments and Contingent Liabilities (Textual) [Abstract] | ||
Fixed rate loan commitments maturity range | 10 years | |
Fixed Rate | Maximum | ||
Commitments and Contingent Liabilities (Textual) [Abstract] | ||
Fixed rate loan commitments maturity range | 30 years | 12 years |
Commitments to make loans | Minimum | ||
Commitments and Contingent Liabilities (Textual) [Abstract] | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | 4.50% |
Commitments to make loans | Maximum | ||
Commitments and Contingent Liabilities (Textual) [Abstract] | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.63% | |
Unused lines of credit | Minimum | ||
Commitments and Contingent Liabilities (Textual) [Abstract] | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.11% | 2.16% |
Unused lines of credit | Maximum | ||
Commitments and Contingent Liabilities (Textual) [Abstract] | ||
Debt Instrument, Interest Rate, Stated Percentage | 13.50% | 13.50% |
Stock_Based_Compensation_Detai
Stock Based Compensation (Details Textual) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 3 Months Ended | |
Dec. 31, 2014 | Feb. 28, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | |
Restricted Stock Award | |||||
Stock Options (Textual) [Abstract] | |||||
Award of shares Plan permits to directors and employees | 46,957 | ||||
Restricted Stock Award | 2012 Incentive Plan | |||||
Stock Options (Textual) [Abstract] | |||||
Award of shares Plan permits to directors and employees | 46,957 | 500,000 | |||
Share awards issued | 0 | 0 | |||
Vesting period under stock option plan | 3 years | ||||
Expiration period of restricted stock | 31-Dec-16 | ||||
Expense recognized | 116,000 | $0 | $0 | ||
Unrecognized compensation expense | 231,000 | ||||
Compensation cost not yet recognized, period for recognition | 2 years | ||||
Employee Stock Option | |||||
Stock Options (Textual) [Abstract] | |||||
Vesting period under stock option plan | 5 years | ||||
Award of shares Plan permits to directors and employees | 375,000 | ||||
Stock Options (Additional Textual) [Abstract] | |||||
Contractual term of options granted | 10 years | ||||
Options outstanding during period | 5,000 | ||||
Options exercise during period | 5,000 | ||||
Options granted during period | 0 | 0 | 0 |
Stock_Based_Compensation_Detai1
Stock Based Compensation (Details) (Restricted Stock Award, USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Restricted Stock Award | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Beginning balance, Units | 0 |
Granted, Units | 46,957 |
Vested, Units | 0 |
Forfeited, Units | 0 |
Ending balance, Units | 46,957 |
Beginning balance, Weighted Average Grant Date Fair Value | $0 |
Granted, Weighted Average Grant Date Fair Value | $7.39 |
Vested, Weighted Average Grant Date Fair Value | $0 |
Forfeited, Weighted Average Grant Date Fair Value | $0 |
Ending balance, Weighted Average Grant Date Fair Value | $7.39 |
Regulatory_Matters_Details_Tex
Regulatory Matters (Details Textual) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Classification | |
Regulatory Matters (Additional Textual) [Abstract] | |
Number of classifications | 5 |
Minimum capital maintained by trust | $3 |
Minimum | |
Regulatory Matters (Textual) [Abstract] | |
Dividend declared | $9.10 |
Regulatory_Matters_Details
Regulatory Matters (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Total Capital to risk weighted assets | ||
Actual, Amount | $121,340 | $115,730 |
Actual, Ratio | 16.48% | 16.26% |
Requirement for Capital Adequacy Purposes, Amount | 58,523 | 56,950 |
Requirement for Capital Adequacy Purposes, Ratio | 8.00% | 8.00% |
Tier I Capital to risk weighted assets | ||
Actual, Amount | 113,654 | 108,130 |
Actual, Ratio | 15.43% | 15.19% |
Requirement for Capital Adequacy Purposes, Amount | 29,262 | 28,475 |
Requirement for Capital Adequacy Purposes, Ratio | 4.00% | 4.00% |
Tier I Capital to average assets | ||
Actual, Amount | 113,654 | 108,130 |
Actual, Ratio | 10.03% | 9.36% |
Requirement for Capital Adequacy Purposes, Amount | 45,313 | 46,185 |
Requirement for Capital Adequacy Purposes, Ratio | 4.00% | 4.00% |
Farmers National Banc Corp | ||
Total Capital to risk weighted assets | ||
Actual, Amount | 114,321 | 109,154 |
Actual, Ratio | 15.56% | 15.42% |
Requirement for Capital Adequacy Purposes, Amount | 58,773 | 56,638 |
Requirement for Capital Adequacy Purposes, Ratio | 8.00% | 8.00% |
To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | 73,466 | 70,798 |
To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 10.00% | 10.00% |
Tier I Capital to risk weighted assets | ||
Actual, Amount | 106,689 | 101,586 |
Actual, Ratio | 14.52% | 14.35% |
Requirement for Capital Adequacy Purposes, Amount | 29,386 | 28,319 |
Requirement for Capital Adequacy Purposes, Ratio | 4.00% | 4.00% |
To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | 44,079 | 42,479 |
To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.00% | 6.00% |
Tier I Capital to average assets | ||
Actual, Amount | 106,689 | 101,586 |
Actual, Ratio | 9.37% | 8.93% |
Requirement for Capital Adequacy Purposes, Amount | 45,565 | 45,478 |
Requirement for Capital Adequacy Purposes, Ratio | 4.00% | 4.00% |
To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $56,956 | $56,848 |
To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 5.00% | 5.00% |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details Textual) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
The accrued postretirement benefit liability | $314 | $370 | |
Defined Benefit Postretirement Health Coverage | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expense under the plan | 4 | 13 | 34 |
Retirement Savings Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employees who have completed no days of service | 90 days | ||
Percentage of the participants' voluntary contributions of gross wages | 6.00% | ||
Expense under the plan | 336 | 336 | 334 |
Profit Sharing Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expense under the plan | 73 | ||
Annual compensation for associates, Percent | 1.00% | ||
Deferred Compensation Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expense under the plan | 10 | 10 | 13 |
Liability under the Plan | $156 | $163 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Provision for income taxes (credit) | |||||||||||
Current expense | $2,369 | $874 | $2,042 | ||||||||
Deferred expense | 263 | 809 | 1,013 | ||||||||
TOTALS | $597 | $688 | $720 | $627 | $641 | $143 | $404 | $495 | $2,632 | $1,683 | $3,055 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes (Textual) [Abstract] | |||
Federal statutory income tax rate | 35.00% | ||
Valuation allowance for deferred tax assets | $0 | $0 | |
Unrecognized tax benefits | 0 | 0 | |
Penalties or interest | 0 | 12 | 0 |
Amounts accrued for penalties or interest | $0 | $0 | |
Earliest Tax Year | |||
Income Taxes (Textual) [Abstract] | |||
Open tax year | 2011 | ||
Latest Tax Year | |||
Income Taxes (Textual) [Abstract] | |||
Open tax year | 2013 |
Income_Taxes_Details_1
Income Taxes (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||||||||||
Statutory tax | $4,059 | $3,312 | $4,545 | ||||||||
Effect of nontaxable interest | -1,179 | -1,325 | -1,203 | ||||||||
Bank owned life insurance, net | -159 | -123 | -179 | ||||||||
Effect of nontaxable life insurance death proceeds | 0 | -115 | 0 | ||||||||
Other | -89 | -66 | -108 | ||||||||
TOTALS | $597 | $688 | $720 | $627 | $641 | $143 | $404 | $495 | $2,632 | $1,683 | $3,055 |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Allowance for credit losses | $2,671 | $2,649 |
Net unrealized loss on securities available for sale | 0 | 3,005 |
Deferred and accrued compensation | 848 | 874 |
Deferred loan fees and costs | 515 | 511 |
Post-retirement benefits | 110 | 174 |
AMT credit carryforward | 0 | 367 |
Other | 214 | 258 |
Gross deferred tax assets | 4,358 | 7,838 |
Deferred tax liabilities: | ||
Depreciation and amortization | -1,081 | -1,082 |
Net unrealized gain on securities available for sale | -523 | 0 |
Federal Home Loan Bank dividends | -482 | -482 |
Purchase accounting adjustment | -550 | -684 |
Other | -38 | -49 |
Gross deferred tax liabilities | -2,674 | -2,297 |
NET DEFERRED TAX ASSET | $1,684 | $5,541 |
Other_Comprehensive_Income_Los2
Other Comprehensive Income (Loss) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Comprehensive Income Net Of Tax [Abstract] | ||||||
Net unrealized holding gains (losses) on available for sale securities | $10,486 | ($19,310) | $307 | |||
Reclassification adjustment for (gains) losses included in net income, pre-tax | 457 | [1] | 860 | [1] | 1,059 | [1] |
Net unrealized holding gains (losses) | 10,029 | -20,170 | -752 | |||
Change in funded status of post-retirement health plan | 60 | -3 | 131 | |||
Net other comprehensive income (loss), pre-tax | 10,089 | -20,173 | -621 | |||
Unrealized holding gains on available-for-sale securities during the year, tax | -3,670 | 6,759 | -107 | |||
Reclassification adjustment for (gains) losses included in net income, tax | 160 | [1] | 301 | [1] | 370 | [1] |
Income tax effect | -3,510 | 7,060 | 263 | |||
Income tax effect | -21 | 1 | -46 | |||
Net other comprehensive income (loss), tax | -3,531 | 7,061 | 217 | |||
Unrealized holding gains on available-for-sale securities during the year, after-tax | 6,816 | -12,551 | 200 | |||
Reclassification adjustment for (gains) losses included in net income, after-tax | -297 | [1] | -559 | [1] | -689 | [1] |
Unrealized holding gains (losses), net of reclassification and tax | 6,519 | -13,110 | -489 | |||
Change in funded status of post-retirement health plan, net of tax | 39 | -2 | 85 | |||
Other comprehensive income (loss), net of tax | 6,558 | -13,112 | -404 | |||
Unrealized holding losses on available-for-sale securities during the year, pre-tax | 10,486 | -19,310 | 307 | |||
Reclassification adjustment for (gains) losses included in net income, pre-tax | ($457) | [1] | ($860) | [1] | ($1,059) | [1] |
[1] | Pre-tax reclassification adjustments relating to available-for-sale securities are reported in security gains and the tax impact is included in income tax expense on the consolidated statements of income. |
Business_Combination_Details_T
Business Combination (Details Textual) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | |
Business Acquisition [Line Items] | ||||
Merger related costs | $0 | $330,000 | $0 | |
Goodwill | 5,591,000 | 6,354,000 | ||
National Associates Incorporated | ||||
Business Acquisition [Line Items] | ||||
Fair value of total consideration transferred | 4,431,000 | |||
Contingent consideration | 920,000 | 156,000 | ||
Fair value assumptions, expected term period | 2 years | |||
Fair value assumptions, expected volatility rate | 20.00% | |||
Fair value inputs, earnings before interest, taxes, depreciation, and amortization discount rate | 11.90% | |||
Merger related costs | 270,000 | |||
Business Acquisition, Effective Date of Acquisition | 1-Jul-13 | |||
Goodwill | 2,645,000 | |||
After impairment of goodwill | 1,900,000 | |||
Fair value of other intangible assets | 2,290,000 | |||
National Associates Incorporated | Minimum | ||||
Business Acquisition [Line Items] | ||||
Fair value inputs, earnings before interest, taxes, depreciation, and amortization | 6.00% | |||
National Associates Incorporated | Maximum | ||||
Business Acquisition [Line Items] | ||||
Contingent future payments | $1,500,000 | |||
Fair value inputs, earnings before interest, taxes, depreciation, and amortization | 12.00% |
Business_Combination_Details
Business Combination (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 |
Assets and liabilities arising from acquisition | |||
Goodwill | $5,591 | $6,354 | |
National Associates Incorporated | |||
Consideration | |||
Cash | 2,111 | ||
Stock | 1,400 | ||
Contingent consideration | 920 | 156 | |
Fair value of total consideration transferred | 4,431 | ||
Assets acquired and liabilities assumed | |||
Cash | 28 | ||
Accounts receivable | 300 | ||
Premises and equipment | 50 | ||
Other assets | 1 | ||
Total assets acquired | 379 | ||
Liabilities assumed | 81 | ||
Net assets acquired | 298 | ||
Assets and liabilities arising from acquisition | |||
Identified intangible assets | 2,290 | ||
Deferred tax liability | -802 | ||
Goodwill | 2,645 | ||
Net assets acquired from acquisition | $4,431 |
Business_Combination_Details_1
Business Combination (Details 1) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Business Combinations [Abstract] | ||
Noninterest income | $15,080 | $14,577 |
Net income | $7,665 | $9,883 |
Basic and diluted earnings per share | $0.41 | $0.53 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (Affiliated Entity, USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Affiliated Entity | |
Loans to principal officers, directors, and their affiliates | |
Total loans at December 31, 2013 | $573 |
New loans | 0 |
Effect of changes in composition of related parties | 290 |
Repayments | -103 |
Total loans at December 31, 2014 | $760 |
Related_Party_Transactions_Det1
Related Party Transactions (Details Textual) (Affiliated Entity, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Affiliated Entity | ||
Related Party Transactions (Textual) [Abstract] | ||
Deposits from principal officers, directors, and their affiliates | $1.70 | $1.60 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Basic EPS | |||||||||||
Net income | $2,147 | $2,276 | $2,351 | $2,191 | $2,295 | $1,612 | $1,868 | $2,005 | $8,965 | $7,780 | $9,932 |
Weighted average shares outstanding | 18,674,526 | 18,773,491 | 18,791,843 | ||||||||
Basic earnings per share | $0.48 | $0.41 | $0.53 | ||||||||
Diluted EPS | |||||||||||
Net income | $2,147 | $2,276 | $2,351 | $2,191 | $2,295 | $1,612 | $1,868 | $2,005 | $8,965 | $7,780 | $9,932 |
Weighted average shares outstanding | 18,674,526 | 18,773,491 | 18,791,843 | ||||||||
Restricted stock awards | 890 | 0 | 0 | ||||||||
Weighted average shares for diluted earnings per share | 18,675,416 | 18,773,491 | 18,791,843 | ||||||||
Diluted earnings per share | $0.48 | $0.41 | $0.53 |
Earnings_Per_Share_Details_Tex
Earnings Per Share (Details Textual) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Earnings Per Share [Abstract] | ||
Stock options not considered in computing of diluted earnings per share | 5,000 | 5,000 |
Interest_Rate_Swaps_Details
Interest Rate Swaps (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Summary information about interest-rate swaps | |||
Weighted average pay rate on interest-rate swaps | 4.26% | 4.28% | 4.07% |
Weighted average receive rate on interest-rate swaps | 2.67% | 2.82% | 2.99% |
Weighted average matuirity (years) | 5 years 10 months 24 days | 6 years 3 months 18 days | 5 years 9 months 18 days |
Fair value of combined interest-rate swaps | $638 | $275 | $120 |
Interest rate swaps | |||
Summary information about interest-rate swaps | |||
Notional amounts | $31,459 | $25,195 | $7,060 |
Interest_Rate_Swaps_Details_Te
Interest Rate Swaps (Details Textual) (Interest rate swaps, USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Interest rate swaps | |||
Interest Rate Swaps (Textual) [Abstract] | |||
Net Gain or Loss recognized in earnings | $0 | $0 | $0 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Goodwill and other intangibles | $8,813 | $10,343 | $8,813 | $10,343 | |||||||
Total assets | 1,136,967 | 1,137,326 | 1,136,967 | 1,137,326 | |||||||
Net interest income | 9,243 | 9,285 | 8,952 | 8,856 | 9,041 | 8,848 | 9,039 | 8,968 | 36,336 | 35,896 | 36,898 |
Provision for loan losses | 825 | 425 | 300 | 330 | 525 | 340 | 170 | 255 | 1,880 | 1,290 | 725 |
Service fees, security gains and other noninterest income | 4,193 | 3,880 | 3,797 | 3,433 | 3,641 | 4,173 | 3,225 | 2,875 | 15,303 | 13,914 | 12,578 |
Noninterest expense | 9,867 | 9,776 | 9,378 | 9,141 | 9,221 | 10,926 | 9,822 | 9,088 | 38,162 | 39,057 | 35,764 |
Income before taxes | 2,744 | 2,964 | 3,071 | 2,818 | 2,936 | 1,755 | 2,272 | 2,500 | 11,597 | 9,463 | 12,987 |
INCOME TAXES | 597 | 688 | 720 | 627 | 641 | 143 | 404 | 495 | 2,632 | 1,683 | 3,055 |
NET INCOME | 2,147 | 2,276 | 2,351 | 2,191 | 2,295 | 1,612 | 1,868 | 2,005 | 8,965 | 7,780 | 9,932 |
Eliminations And Others | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Goodwill and other intangibles | 0 | 0 | 0 | 0 | |||||||
Total assets | 463 | 573 | 463 | 573 | |||||||
Net interest income | -14 | -14 | -20 | ||||||||
Provision for loan losses | 0 | 0 | 0 | ||||||||
Service fees, security gains and other noninterest income | -254 | -218 | -185 | ||||||||
Noninterest expense | 474 | 1,420 | 822 | ||||||||
Income before taxes | -742 | -1,652 | -1,027 | ||||||||
INCOME TAXES | -512 | -562 | -349 | ||||||||
NET INCOME | -230 | -1,090 | -678 | ||||||||
Trust Segment | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Goodwill and other intangibles | 5,285 | 5,639 | 5,285 | 5,639 | |||||||
Total assets | 10,643 | 11,572 | 10,643 | 11,572 | |||||||
Net interest income | 53 | 45 | 47 | ||||||||
Provision for loan losses | 0 | 0 | 0 | ||||||||
Service fees, security gains and other noninterest income | 6,170 | 5,667 | 5,571 | ||||||||
Noninterest expense | 4,906 | 4,899 | 4,918 | ||||||||
Income before taxes | 1,317 | 813 | 700 | ||||||||
INCOME TAXES | 451 | 282 | 244 | ||||||||
NET INCOME | 866 | 531 | 456 | ||||||||
Bank Segment | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Goodwill and other intangibles | 0 | 0 | 0 | 0 | |||||||
Total assets | 1,121,505 | 1,120,091 | 1,121,505 | 1,120,091 | |||||||
Net interest income | 36,297 | 35,865 | 36,871 | ||||||||
Provision for loan losses | 1,880 | 1,290 | 725 | ||||||||
Service fees, security gains and other noninterest income | 7,577 | 7,838 | 7,192 | ||||||||
Noninterest expense | 30,349 | 31,875 | 30,024 | ||||||||
Income before taxes | 11,645 | 10,538 | 13,314 | ||||||||
INCOME TAXES | 2,645 | 2,043 | 3,160 | ||||||||
NET INCOME | 9,000 | 8,495 | 10,154 | ||||||||
Retirement Consulting Segment | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Goodwill and other intangibles | 3,528 | 4,704 | 3,528 | 4,704 | |||||||
Total assets | 4,356 | 5,090 | 4,356 | 5,090 | |||||||
Net interest income | 0 | 0 | 0 | ||||||||
Provision for loan losses | 0 | 0 | 0 | ||||||||
Service fees, security gains and other noninterest income | 1,810 | 627 | 0 | ||||||||
Noninterest expense | 2,433 | 863 | 0 | ||||||||
Income before taxes | -623 | -236 | 0 | ||||||||
INCOME TAXES | 48 | -80 | 0 | ||||||||
NET INCOME | ($671) | ($156) | $0 |
Subsequent_Events_Details_Text
Subsequent Events (Details Textual) (Subsequent Event, USD $) | 0 Months Ended | |
In Millions, except Share data, unless otherwise specified | Jan. 31, 2015 | Jan. 26, 2015 |
Subsequent Event [Line Items] | ||
Volume weighted average stock price over last 20 trading days, per share | $7.97 | |
Business combination, transaction value | $74 | |
National Bancshares Corporation | ||
Subsequent Event [Line Items] | ||
Cash shareholders are entitled to elect to receive per share | $32.15 | |
Shares shareholders are entitled to elect to receive per shares | 4.034 | |
Maximum shares exchanged for stock | 80.00% | |
Maximum shares exchanged for cash | 20.00% |
Quarterly_Financial_Data_Unaud2
Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Data Abstract | |||||||||||
Total interest income | $10,321 | $10,413 | $10,118 | $10,063 | $10,298 | $10,122 | $10,273 | $10,266 | $40,915 | $40,959 | $43,110 |
Total interest expense | 1,078 | 1,128 | 1,166 | 1,207 | 1,257 | 1,274 | 1,234 | 1,298 | 4,579 | 5,063 | 6,212 |
Net interest income | 9,243 | 9,285 | 8,952 | 8,856 | 9,041 | 8,848 | 9,039 | 8,968 | 36,336 | 35,896 | 36,898 |
Provision for loan losses | 825 | 425 | 300 | 330 | 525 | 340 | 170 | 255 | 1,880 | 1,290 | 725 |
Noninterest income | 4,193 | 3,880 | 3,797 | 3,433 | 3,641 | 4,173 | 3,225 | 2,875 | 15,303 | 13,914 | 12,578 |
Noninterest expense | 9,867 | 9,776 | 9,378 | 9,141 | 9,221 | 10,926 | 9,822 | 9,088 | 38,162 | 39,057 | 35,764 |
Income before income taxes | 2,744 | 2,964 | 3,071 | 2,818 | 2,936 | 1,755 | 2,272 | 2,500 | 11,597 | 9,463 | 12,987 |
Income taxes | 597 | 688 | 720 | 627 | 641 | 143 | 404 | 495 | 2,632 | 1,683 | 3,055 |
Net income | $2,147 | $2,276 | $2,351 | $2,191 | $2,295 | $1,612 | $1,868 | $2,005 | $8,965 | $7,780 | $9,932 |
Earnings per share - basic and diluted | $0.12 | $0.12 | $0.13 | $0.12 | $0.12 | $0.09 | $0.10 | $0.11 | $0.48 | $0.41 | $0.53 |
Quarterly_Financial_Data_Unaud3
Quarterly Financial Data (Unaudited) (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Data (Unaudited) (Textual) [Abstract] | |||||
Security gains | $372 | $597 | $457 | $863 | $1,059 |
Severance costs | $1,300 |
Parent_Company_Only_Condensed_2
Parent Company Only Condensed Financial Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Assets: | ||||||||||||
Securities available for sale | $389,829 | $422,985 | $389,829 | $422,985 | ||||||||
Other | 20,750 | 20,116 | 20,750 | 20,116 | ||||||||
TOTAL ASSETS | 1,136,967 | 1,137,326 | 1,136,967 | 1,137,326 | ||||||||
Liabilities: | ||||||||||||
Other liabilities | 10,187 | 7,664 | 10,187 | 7,664 | ||||||||
TOTAL LIABILITIES | 1,013,407 | 1,024,319 | 1,013,407 | 1,024,319 | ||||||||
TOTAL STOCKHOLDERS' EQUITY | 123,560 | 113,007 | 123,560 | 113,007 | 120,792 | |||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 1,136,967 | 1,137,326 | 1,136,967 | 1,137,326 | ||||||||
Income: | ||||||||||||
Dividends from subsidiaries | 190 | 196 | 206 | |||||||||
Income before income tax benefit and undistributed subsidiary income | 2,744 | 2,964 | 3,071 | 2,818 | 2,936 | 1,755 | 2,272 | 2,500 | 11,597 | 9,463 | 12,987 | |
Income taxes | 597 | 688 | 720 | 627 | 641 | 143 | 404 | 495 | 2,632 | 1,683 | 3,055 | |
NET INCOME | 2,147 | 2,276 | 2,351 | 2,191 | 2,295 | 1,612 | 1,868 | 2,005 | 8,965 | 7,780 | 9,932 | |
Cash flows from operating activities: | ||||||||||||
Net income | 2,147 | 2,276 | 2,351 | 2,191 | 2,295 | 1,612 | 1,868 | 2,005 | 8,965 | 7,780 | 9,932 | |
Security gains | -372 | -597 | -457 | -863 | -1,059 | |||||||
Impairment of securities | 0 | 3 | 0 | |||||||||
Cash flows from investing activities: | ||||||||||||
Proceeds from maturities of available for sale securities | 49,401 | 75,015 | 84,490 | |||||||||
Purchase of National Associates Inc, net | 0 | -2,111 | 0 | |||||||||
NET CASH FROM INVESTING ACTIVITIES | 6,184 | -27,981 | -82,294 | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||
Proceeds from reissuance of treasury shares | 32 | 0 | 0 | |||||||||
Cash dividends paid | -2,236 | -2,248 | -3,382 | |||||||||
Proceeds from dividend reinvestment | 0 | 0 | 243 | |||||||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | -85 | -10,246 | -14,663 | |||||||||
Farmers National Banc Corp | ||||||||||||
Assets: | ||||||||||||
Cash | 1,564 | 1,849 | 1,564 | 1,849 | ||||||||
Securities available for sale | 172 | 126 | 172 | 126 | ||||||||
Other | 916 | 725 | 916 | 725 | ||||||||
TOTAL ASSETS | 124,075 | 114,295 | 124,075 | 114,295 | ||||||||
Liabilities: | ||||||||||||
Other liabilities | 163 | 932 | 163 | 932 | ||||||||
Note payable | 350 | 350 | 350 | 350 | ||||||||
Other accounts payable | 2 | 6 | 2 | 6 | ||||||||
TOTAL LIABILITIES | 515 | 1,288 | 515 | 1,288 | ||||||||
TOTAL STOCKHOLDERS' EQUITY | 123,560 | 113,007 | 123,560 | 113,007 | ||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 124,075 | 114,295 | 124,075 | 114,295 | ||||||||
Income: | ||||||||||||
Interest and dividends on securities | 1 | 2 | 4 | |||||||||
Security gains/(losses) | 0 | 21 | 0 | |||||||||
Other income | 764 | 0 | 0 | |||||||||
TOTAL INCOME | 6,778 | 5,336 | 2,716 | |||||||||
Interest on borrowings | -15 | -16 | -24 | |||||||||
Other expenses | -1,492 | -1,659 | -1,007 | |||||||||
Income before income tax benefit and undistributed subsidiary income | 5,271 | 3,661 | 1,685 | |||||||||
Income taxes | 512 | 562 | 349 | |||||||||
Equity in undistributed net income of subsidiaries (dividends in excess of net income) | 3,182 | 3,557 | 7,898 | |||||||||
NET INCOME | 8,965 | 7,780 | 9,932 | |||||||||
Cash flows from operating activities: | ||||||||||||
Net income | 8,965 | 7,780 | 9,932 | |||||||||
Security gains | 0 | -24 | 0 | |||||||||
Impairment of securities | 0 | 3 | 0 | |||||||||
Dividends in excess of net income (Equity in undistributed net income of subsidiary) | -3,182 | -3,557 | -7,898 | |||||||||
Other | -982 | -270 | -20 | |||||||||
NET CASH FROM OPERATING ACTIVITIES | 4,801 | 3,932 | 2,014 | |||||||||
Cash flows from investing activities: | ||||||||||||
Proceeds from maturities of available for sale securities | 0 | 56 | 0 | |||||||||
Purchase of National Associates Inc, net | 0 | -2,111 | 0 | |||||||||
NET CASH FROM INVESTING ACTIVITIES | 0 | -2,055 | 0 | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||
Proceeds from reissuance of treasury shares | 32 | 0 | 0 | |||||||||
Purchase of treasury shares | -2,882 | -1,606 | -42 | |||||||||
Cash dividends paid | -2,236 | -2,248 | -3,382 | |||||||||
Net changes in borrowings | 0 | 0 | -750 | |||||||||
Proceeds from dividend reinvestment | 0 | 0 | 243 | |||||||||
NET CASH FROM FINANCING ACTIVITIES | -5,086 | -3,854 | -3,931 | |||||||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | -285 | -1,977 | -1,917 | |||||||||
Beginning cash and cash equivalents | 1,564 | 1,849 | 1,564 | 1,849 | 3,826 | 5,743 | ||||||
Farmers National Banc Corp | National Associates Incorporated | ||||||||||||
Assets: | ||||||||||||
Investment in subsidiaries | 3,604 | 4,275 | 3,604 | 4,275 | ||||||||
Income: | ||||||||||||
Dividends from subsidiaries | 0 | 0 | 0 | |||||||||
Equity in undistributed net income of subsidiaries (dividends in excess of net income) | -671 | -156 | 0 | |||||||||
Cash flows from operating activities: | ||||||||||||
Dividends in excess of net income (Equity in undistributed net income of subsidiary) | 671 | 156 | 0 | |||||||||
Farmers National Banc Corp | Bank Segment | ||||||||||||
Assets: | ||||||||||||
Investment in subsidiaries | 107,704 | 96,087 | 107,704 | 96,087 | ||||||||
Income: | ||||||||||||
Dividends from subsidiaries | 4,013 | 4,333 | 2,712 | |||||||||
Equity in undistributed net income of subsidiaries (dividends in excess of net income) | 4,987 | 4,162 | 7,442 | |||||||||
Cash flows from operating activities: | ||||||||||||
Dividends in excess of net income (Equity in undistributed net income of subsidiary) | -4,987 | -4,162 | -7,442 | |||||||||
Farmers National Banc Corp | Trust Segment | ||||||||||||
Assets: | ||||||||||||
Investment in subsidiaries | 10,115 | 11,233 | 10,115 | 11,233 | ||||||||
Income: | ||||||||||||
Dividends from subsidiaries | 2,000 | 980 | 0 | |||||||||
Equity in undistributed net income of subsidiaries (dividends in excess of net income) | -1,134 | -449 | 456 | |||||||||
Cash flows from operating activities: | ||||||||||||
Dividends in excess of net income (Equity in undistributed net income of subsidiary) | $1,134 | $449 | ($456) |