Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 26, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | CITIZENS FINANCIAL SERVICES INC | |
Entity Central Index Key | 739,421 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 3,349,753 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 |
CONSOLIDATED BALANCE SHEET (UNA
CONSOLIDATED BALANCE SHEET (UNAUDITED) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Cash and due from banks: | ||
Noninterest-bearing | $ 14,908 | $ 14,088 |
Interest-bearing | 11,914 | 10,296 |
Total cash and cash equivalents | 26,822 | 24,384 |
Interest bearing time deposits with other banks | 6,954 | 7,696 |
Available-for-sale securities | 360,944 | 359,737 |
Loans held for sale | 1,304 | 603 |
Loans (net of allowance for loan losses: 2016, $7,359 and 2015, $7,106) | 701,756 | 687,925 |
Premises and equipment | 17,239 | 17,263 |
Accrued interest receivable | 4,176 | 4,211 |
Goodwill | 21,089 | 21,089 |
Bank owned life insurance | 25,877 | 25,535 |
Other intangibles | 2,183 | 2,437 |
Other assets | 11,174 | 12,104 |
TOTAL ASSETS | 1,179,518 | 1,162,984 |
Deposits: | ||
Noninterest-bearing | 142,327 | 150,960 |
Interest-bearing | 861,155 | 837,071 |
Total deposits | 1,003,482 | 988,031 |
Borrowed funds | 38,786 | 41,631 |
Accrued interest payable | 644 | 734 |
Other liabilities | 12,150 | 12,828 |
TOTAL LIABILITIES | 1,055,062 | 1,043,224 |
STOCKHOLDERS' EQUITY: | ||
Preferred Stock $1.00 par value; authorized 3,000,000 shares June 30, 2016 and December 31, 2015; none issued in 2016 or 2015 | 0 | 0 |
Common stock $1.00 par value; authorized 15,000,000 shares; issued 3,704,375 at June 30, 2016 and 3,671,751 at December 31, 2015 | 3,704 | 3,672 |
Additional paid-in capital | 42,241 | 40,715 |
Retained earnings | 87,753 | 85,790 |
Accumulated other comprehensive income (loss) | 2,042 | (236) |
Treasury stock, at cost: 358,921 shares at June 30, 2016 and 335,876 shares at December 31, 2015 | (11,284) | (10,181) |
TOTAL STOCKHOLDERS' EQUITY | 124,456 | 119,760 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,179,518 | $ 1,162,984 |
CONSOLIDATED BALANCE SHEET (UN3
CONSOLIDATED BALANCE SHEET (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
ASSETS: | ||
Loans, allowance for loan losses | $ 7,359 | $ 7,106 |
STOCKHOLDERS' EQUITY: | ||
Preferred Stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred Stock, authorized (in shares) | 3,000,000 | 3,000,000 |
Preferred Stock, issued (in shares) | 0 | 0 |
Common Stock, par value (in dollars per share) | $ 1 | $ 1 |
Common Stock, authorized (in shares) | 15,000,000 | 15,000,000 |
Common Stock, issued (in shares) | 3,704,375 | 3,671,751 |
Treasury stock, shares (in shares) | 358,921 | 335,876 |
CONSOLIDATED STATEMENT OF INCOM
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
INTEREST INCOME: | ||||
Interest and fees on loans | $ 8,587 | $ 7,129 | $ 17,183 | $ 14,168 |
Interest-bearing deposits with banks | 64 | 39 | 135 | 70 |
Investment securities: | ||||
Taxable | 959 | 765 | 1,903 | 1,519 |
Nontaxable | 755 | 801 | 1,526 | 1,649 |
Dividends | 61 | 34 | 141 | 133 |
TOTAL INTEREST INCOME | 10,426 | 8,768 | 20,888 | 17,539 |
INTEREST EXPENSE: | ||||
Deposits | 1,072 | 1,035 | 2,146 | 2,044 |
Borrowed funds | 183 | 172 | 366 | 347 |
TOTAL INTEREST EXPENSE | 1,255 | 1,207 | 2,512 | 2,391 |
NET INTEREST INCOME | 9,171 | 7,561 | 18,376 | 15,148 |
Provision for loan losses | 135 | 120 | 270 | 240 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 9,036 | 7,441 | 18,106 | 14,908 |
NON-INTEREST INCOME: | ||||
Service charges | 1,128 | 1,028 | 2,230 | 2,004 |
Trust | 182 | 180 | 378 | 374 |
Brokerage and insurance | 158 | 255 | 367 | 382 |
Gains on loans sold | 70 | 60 | 116 | 98 |
Investment securities gains, net | 128 | 175 | 155 | 301 |
Earnings on bank owned life insurance | 172 | 154 | 342 | 306 |
Other | 145 | 103 | 311 | 218 |
TOTAL NON-INTEREST INCOME | 1,983 | 1,955 | 3,899 | 3,683 |
NON-INTEREST EXPENSES: | ||||
Salaries and employee benefits | 3,900 | 2,993 | 7,782 | 6,049 |
Occupancy | 455 | 348 | 900 | 717 |
Furniture and equipment | 171 | 87 | 328 | 215 |
Professional fees | 266 | 180 | 553 | 412 |
FDIC insurance | 160 | 116 | 317 | 232 |
Pennsylvania shares tax | 240 | 200 | 390 | 401 |
Amortization of other intangibles | 82 | 0 | 164 | 0 |
ORE expenses | 212 | 357 | 305 | 358 |
Other | 1,815 | 1,147 | 3,474 | 2,379 |
TOTAL NON-INTEREST EXPENSES | 7,301 | 5,428 | 14,213 | 10,763 |
Income before provision for income taxes | 3,718 | 3,968 | 7,792 | 7,828 |
Provision for income taxes | 687 | 779 | 1,478 | 1,519 |
NET INCOME | $ 3,031 | $ 3,189 | $ 6,314 | $ 6,309 |
PER COMMON SHARE DATA: | ||||
Net Income - Basic (in dollars per share) | $ 0.91 | $ 1.04 | $ 1.88 | $ 2.06 |
Net Income - Diluted (in dollars per share) | 0.91 | 1.04 | 1.88 | 2.06 |
Cash Dividends Paid (in dollars per share) | $ 0.419 | $ 0.402 | $ 0.829 | $ 0.802 |
Number of shares used in computation - basic (in shares) | 3,343,254 | 3,052,285 | 3,349,913 | 3,055,569 |
Number of shares used in computation - diluted (in shares) | 3,343,663 | 3,053,349 | 3,350,118 | 3,056,103 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) [Abstract] | ||||
Net income | $ 3,031 | $ 3,189 | $ 6,314 | $ 6,309 |
Other comprehensive income (loss): | ||||
Unrealized gains on available for sale securities | 1,794 | (2,049) | 3,489 | (704) |
Income tax effect | (610) | 698 | (1,188) | 240 |
Change in unrecognized pension cost | 60 | 54 | 121 | 102 |
Income tax effect | (21) | (19) | (42) | (35) |
Less: Reclassification adjustment for investment security gains included in net income | (128) | (175) | (155) | (301) |
Income tax effect | 44 | 59 | 53 | 102 |
Other comprehensive income (loss), net of tax | 1,139 | (1,432) | 2,278 | (596) |
Comprehensive income | $ 4,170 | $ 1,757 | $ 8,592 | $ 5,713 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 6,314 | $ 6,309 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 270 | 240 |
Provision for off-balance sheet items | 30 | 0 |
Depreciation and amortization | 175 | 236 |
Amortization and accretion of investment securities | 1,148 | 992 |
Deferred income taxes | 81 | 112 |
Investment securities gains, net | (155) | (301) |
Earnings on bank owned life insurance | (342) | (306) |
Originations of loans held for sale | (8,580) | (7,479) |
Proceeds from sales of loans held for sale | 7,995 | 6,922 |
Realized gains on loans sold | (116) | (98) |
Increase in accrued interest receivable | 35 | 60 |
Decrease in accrued interest payable | (90) | (81) |
Other, net | (519) | (1,158) |
Net cash provided by operating activities | 6,246 | 5,448 |
Available-for-sale securities: | ||
Proceeds from sales | 12,077 | 18,393 |
Proceeds from maturity and principal repayments | 21,561 | 31,163 |
Purchase of securities | (32,507) | (49,579) |
Proceeds from matured interest bearing time deposits with other banks | 744 | 0 |
Proceeds from redemption of regulatory stock | 184 | 1,513 |
Purchase of regulatory stock | (132) | (1,342) |
Net increase in loans | (14,135) | (17,792) |
Purchase of premises and equipment | (398) | (514) |
Proceeds from sale of foreclosed assets held for sale | 374 | 100 |
Net cash used in investing activities | (12,232) | (18,058) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net increase in deposits | 15,451 | 17,954 |
Proceeds from long-term borrowings | 539 | 5,286 |
Repayments of long-term borrowings | (534) | (551) |
Net increase in short-term borrowed funds | (2,850) | (7,340) |
Purchase of treasury and restricted stock | (1,482) | (997) |
Dividends paid | (2,700) | (2,253) |
Net cash provided by financing activities | 8,424 | 12,099 |
Net (decrease) increase in cash and cash equivalents | 2,438 | (511) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 24,384 | 11,423 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 26,822 | 10,912 |
Supplemental Disclosures of Cash Flow Information: | ||
Interest paid | 2,602 | 2,472 |
Income taxes paid | 1,400 | 2,025 |
Loans transferred to foreclosed property | 519 | 241 |
Investments purchased and not settled | $ 0 | $ 319 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2016 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Note 1 - Basis of Presentation Citizens Financial Services, Inc. (individually and collectively with its direct and indirect subsidiaries, the "Company") is a Pennsylvania corporation organized as the holding company of its wholly owned subsidiary, First Citizens Community Bank (the "Bank"), and the Bank's wholly owned subsidiary, First Citizens Insurance Agency, Inc. ("First Citizens Insurance"). On December 11, 2015, the Company completed its acquisition of The First National Bank of Fredericksburg (FNB) by merging FNB into the Bank. The accompanying consolidated financial statements have been prepared pursuant to rules and regulations of the Securities and Exchange Commission ("SEC") and in conformity with U.S. generally accepted accounting principles. Because this report is based on an interim period, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted. Certain of the prior year amounts have been reclassified to conform with the current year presentation. Such reclassifications had no effect on net income or stockholders' equity. All material inter‑company balances and transactions have been eliminated in consolidation. In the opinion of management of the Company, the accompanying interim financial statements at June 30, 2016 and for the periods ended June 30, 2016 and 2015 include all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of the financial condition and the results of operations for the periods. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. The financial performance reported for the Company for the six month period ended June 30, 2016 is not necessarily indicative of the results to be expected for the full year. This information should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2015. |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings per Share [Abstract] | |
Earnings per Share | Note 2 - Earnings per Share The following table sets forth the computation of earnings per share. Earnings per share calculations give retroactive effect to stock dividends declared by the Company. Three months ended Six months ended June 30, June 30, 2016 2015 2016 2015 Net income applicable to common stock $ 3,031,000 $ 3,189,000 $ 6,314,000 $ 6,309,000 Basic earnings per share computation Weighted average common shares outstanding 3,343,254 3,052,285 3,349,913 3,055,569 Earnings per share - basic $ 0.91 $ 1.04 $ 1.88 $ 2.06 Diluted earnings per share computation Weighted average common shares outstanding for basic earnings per share 3,343,254 3,052,285 3,349,913 3,055,569 Add: Dilutive effects of restricted stock 409 1,064 205 534 Weighted average common shares outstanding for dilutive earnings per share 3,343,663 3,053,349 3,350,118 3,056,103 Earnings per share - diluted $ 0.91 $ 1.04 $ 1.88 $ 2.06 For the three months ended June 30, 2016 and 2015, there were 4,521 and 3,287 shares, respectively, related to the restricted stock plan that were excluded from the diluted earnings per share calculations since they were anti-dilutive. These anti-dilutive shares had prices ranging from $46.69-$53.15 for the three month period ended June 30, 2016 and prices ranging from $44.50-$53.15 for the three month period ended June 30, 2015. For the six months ended June 30, 2016 and 2015, 4,521 and 3,287 shares, respectively, related to the restricted stock plan were excluded from the diluted earnings per share calculations since they were anti-dilutive. These anti-dilutive shares had prices ranging from $46.69-$53.15 for the six month period ended June 30, 2016 and prices ranging from $44.50-$53.15 for the six month period ended June 30, 2015. |
Income Tax Expense
Income Tax Expense | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Expense [Abstract] | |
Income Tax Expense | Note 3 - Income Tax Expense Income tax expense is less than the amount calculated using the statutory tax rate, primarily as a result of tax-exempt income earned from state and municipal securities and loans and investments in affordable housing tax credits. Investments in Qualified Affordable Housing Projects As of June 30, 2016 and December 31, 2015, the Company was invested in four partnerships that provide affordable housing. The balance of the investments, which is included within other assets in the Consolidated Balance Sheet, was $829,000 and $959,000 as of June 30, 2016 and December 31, 2015, respectively. Investments purchased prior to January 1, 2015, are accounted for utilizing the effective yield method. As of June 30, 2016, the Company has $945,000 of tax credits remaining that will be recognized over 6.4 years. Tax credits of $49,000 were recognized as a reduction of tax expense during the three months ended June 30, 2016 and 2015. Tax credits of $99,000 were recognized as a reduction of tax expense during the six months ended June 30, 2016 and 2015. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2016 | |
Investments [Abstract] | |
Investments | Note 4 – Investments The amortized cost, gross unrealized gains and losses, and fair value of investment securities at June 30, 2016 and December 31, 2015 were as follows (in thousands): Gross Gross Amortized Unrealized Unrealized Fair June 30, 2016 Cost Gains Losses Value Available-for-sale securities: U.S. agency securities $ 203,461 $ 2,359 $ (1 ) $ 205,819 U.S. treasury securities 5,046 7 - 5,053 Obligations of state and political subdivisions 101,144 3,338 (10 ) 104,472 Corporate obligations 11,430 50 - 11,480 Mortgage-backed securities in government sponsored entities 31,190 456 (40 ) 31,606 Equity securities in financial Institutions 2,001 518 (5 ) 2,514 Total available-for-sale securities $ 354,272 $ 6,728 $ (56 ) $ 360,944 December 31, 2015 Available-for-sale securities: U.S. agency securities $ 199,749 $ 369 $ (527 ) $ 199,591 U.S. treasury securities 10,103 - (21 ) 10,082 Obligations of state and political subdivisions 99,856 3,080 (73 ) 102,863 Corporate obligations 14,583 68 (86 ) 14,565 Mortgage-backed securities in government sponsored entities 30,107 186 (89 ) 30,204 Equity securities in financial institutions 2,001 436 (5 ) 2,432 Total available-for-sale securities $ 356,399 $ 4,139 $ (801 ) $ 359,737 The following table shows the Company's gross unrealized losses and fair value of the Company's investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time, which individual securities have been in a continuous unrealized loss position, at June 30, 2016 and December 31, 2015 (in thousands). As of June 30, 2016, the Company owned 17 securities whose fair value was less than their cost basis. June 30, 2016 Less than Twelve Months Twelve Months or Greater Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses U.S. agency securities $ 8,509 $ (1 ) $ - $ - $ 8,509 $ (1 ) Obligations of state and political subdivisions 4,342 (9 ) 503 (1 ) 4,845 (10 ) Mortgage-backed securities in government sponsored entities 3,716 (22 ) 1,987 (18 ) 5,703 (40 ) Equity securities in financial institutions 111 (5 ) - - 111 (5 ) Total securities $ 16,678 $ (37 ) $ 2,490 $ (19 ) $ 19,168 $ (56 ) December 31, 2015 U.S. agency securities $ 123,591 $ (527 ) $ - $ - $ 123,591 $ (527 ) U.S. treasury securities 10,082 (21 ) - - 10,082 (21 ) Obligations of states and political subdivisions 7,023 (57 ) 2,914 (16 ) 9,937 (73 ) Corporate obligations 5,822 (61 ) 2,138 (25 ) 7,960 (86 ) Mortgage-backed securities in government sponsored entities 9,830 (77 ) 227 (12 ) 10,057 (89 ) Equity securities in financial institutions 106 (5 ) - - 106 (5 ) Total securities $ 156,454 $ (748 ) $ 5,279 $ (53 ) $ 161,733 $ (801 ) As of June 30, 2016, the Company's investment securities portfolio contained unrealized losses on agency securities issued or backed by the full faith and credit of the United States government or are generally viewed as having the implied guarantee of the U.S. government, obligations of states and political subdivisions, mortgage backed securities issued by government sponsored entities, and equity securities in financial institutions. For fixed maturity investments For equity securities where the fair value has been significantly below cost for one year, the Company's policy is to recognize an impairment loss unless sufficient evidence is available that the decline is not other than temporary and a recovery period can be predicted. The Company has concluded that any impairment of its investment securities portfolio outlined in the above table is not other than temporary and is the result of interest rate changes, sector credit rating changes, or issuer-specific rating changes that are not expected to result in the non-collection of principal and interest during the period. Proceeds from sales of securities available-for-sale for the six months ended June 30, 2016 and 2015 were $12,077,000 and $18,393,000, respectively. For the three months ended June 30, 2016 and 2015, there were sales of $7,057,000 and $3,770,000, respectively, of available-for-sale securities. The gross gains and losses were as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Gross gains $ 128 $ 175 $ 155 $ 312 Gross losses - - - (11 ) Net gains $ 128 $ 175 $ 155 $ 301 Investment securities with an approximate carrying value of $221.9 million and $203.8 million at June 30, 2016 and December 31, 2015, respectively, were pledged to secure public funds and certain other deposits. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The amortized cost and fair value of debt securities at June 30, 2016, by contractual maturity, are shown below (in thousands): Amortized Cost Fair Value Available-for-sale debt securities: Due in one year or less $ 41,555 $ 41,758 Due after one year through five years 190,450 193,673 Due after five years through ten years 41,023 42,092 Due after ten years 79,243 80,907 Total $ 352,271 $ 358,430 |
Loans
Loans | 6 Months Ended |
Jun. 30, 2016 | |
Loans [Abstract] | |
Loans | Note 5 – Loans The Company grants loans primarily to customers throughout north central, central and south central Pennsylvania and the southern tier New York. Although the Company had a diversified loan portfolio at June 30, 2016 and December 31, 2015, a substantial portion of its debtors' ability to honor their contracts is dependent on the economic conditions within these regions. The following table summarizes the primary segments of the loan portfolio and how those segments are analyzed within the allowance for loan losses as of June 30, 2016 and December 31, 2015 (in thousands): June 30, 2016 Total Loans Individually evaluated for impairment Loans acquired with deteriorated credit quality Collectively evaluated for impairment Real estate loans: Residential $ 203,980 $ 518 $ 34 $ 203,428 Commercial and agricultural 309,287 6,404 2,753 300,130 Construction 10,481 - - 10,481 Consumer 11,439 - 6 11,433 Other commercial and agricultural loans 74,089 5,682 876 67,531 State and political subdivision loans 99,839 - - 99,839 Total 709,115 12,604 3,669 692,842 Allowance for loan losses 7,359 587 - 6,772 Net loans $ 701,756 $ 12,017 $ 3,669 $ 686,070 December 31, 2015 Total Loans Individually evaluated for impairment Loans acquired with deteriorated credit quality Collectively evaluated for impairment Real estate loans: Residential $ 203,407 $ 304 $ 35 $ 203,068 Commercial and agricultural 295,364 6,235 2,908 286,221 Construction 15,011 - - 15,011 Consumer 11,543 - 9 11,534 Other commercial and agricultural loans 71,206 5,745 866 64,595 State and political subdivision loans 98,500 - - 98,500 Total 695,031 12,284 3,818 678,929 Allowance for loan losses 7,106 355 - 6,751 Net loans $ 687,925 $ 11,929 $ 3,818 $ 672,178 Purchased loans acquired in the FNB acquisition were recorded at fair value on their purchase date without a carryover of the related allowance for loan losses. Upon acquisition, the Company evaluated whether an acquired loan was within the scope of ASC 310-30, Receivables-Loans and Debt Securities Acquired with Deteriorated Credit Quality. Purchased credit-impaired loans are loans that have evidence of credit deterioration since origination and it is probable at the date of acquisition that the Company will not collect all contractually required principal and interest payments. There were no material increases or decreases in the expected cash flows of these loans between December 11, 2015 (the "acquisition date") and June 30, 2016. The fair value of purchased credit-impaired loans, on the acquisition date, was determined, primarily based on the fair value of loan collateral. The carrying value of purchased loans acquired with deteriorated credit quality was $3,669,000 and $3,818,000 at June 30, 2016 and December 31, 2015, respectively. On the acquisition date, the preliminary estimate of the unpaid principal balance for all loans evidencing credit impairment acquired in the FNB acquisition was $6,969,000 and the estimated fair value of the loans was $3,809,000. Total contractually required payments on these loans, including interest, at the acquisition date was $9,913,000. However, the Company's preliminary estimate of expected cash flows was $4,474,000. At such date, the Company established a credit risk related non-accretable discount (a discount representing amounts which are not expected to be collected from the customer nor liquidation of collateral) of $5,439,000 relating to these impaired loans, reflected in the recorded net fair value. Such amount is reflected as a non-accretable fair value adjustment to loans. The Company further estimated the timing and amount of expected cash flows in excess of the estimated fair value and established an accretable discount of $665,000 on the acquisition date relating to these impaired loans. The carrying value of the loans acquired in the FNB acquisition with specific evidence of deterioration in credit quality was determined by projected discounted contractual cash flows. Changes in the accretable yield for purchased credit-impaired loans were as follows for the three and six months ended June 30, 2016 (in thousands): Three Months Ended Six Months Ended Balance at beginning of period $ 551 $ 637 Accretion (87 ) (173 ) Balance at end of period $ 464 $ 464 The following table presents additional information regarding loans acquired with specific evidence of deterioration in credit quality under ASC 310-30 (in thousands): June 30, 2016 December 31, 2015 Outstanding balance $ 6,616 $ 6,950 Carrying amount 3,669 3,818 The segments of the Company's loan portfolio are disaggregated into classes to a level that allows management to monitor risk and performance. Residential real estate mortgages consist primarily of 15 to 30 year first mortgages on residential real estate, while residential real estate home equity loans are consumer purpose installment loans or lines of credit with terms of 15 years or less secured by a mortgage which is often a second lien on residential real estate. Commercial real estate loans are business purpose loans secured by a mortgage on commercial real estate. Agricultural real estate loans are loans secured by a mortgage on real estate used in agriculture production. Construction real estate loans are loans secured by residential or commercial real estate used during the construction phase of residential and commercial projects. Consumer loans are typically unsecured or primarily secured by assets other than real estate and overdraft lines of credit are typically secured by customer deposit accounts. Other commercial loans are loans for commercial purposes primarily secured by non-real estate collateral. Other agricultural loans are loans for agricultural purposes primarily secured by non-real estate collateral. State and political subdivision loans are loans to state and local municipalities for capital and operating expenses or tax free loans used to finance commercial development. Management considers commercial loans, other agricultural loans, state and political subdivision loans, commercial real estate loans and agricultural real estate loans which are 90 days or more past due to be impaired. Management will also consider a loan impaired based on other factors it becomes aware of, including the customer's results of operations and cash flows or if the loan is modified in a troubled debt restructuring. In addition, c ertain residential mortgages, home equity and consumer loans that are cross collateralized with commercial relationships that are determined to be impaired may also be classified as impaired. The following table includes the recorded investment and unpaid principal balances for impaired financing receivables by class, with the associated allowance amount, if applicable (in thousands) Recorded Recorded Unpaid Investment Investment Total Principal With No With Recorded Related June 30, 2016 Balance Allowance Allowance Investment Allowance Real estate loans: Mortgages $ 502 $ 114 $ 345 $ 459 $ 35 Home Equity 59 - 59 59 11 Commercial 8,888 5,944 295 6,239 126 Agricultural 165 165 - 165 - Construction - - - - - Consumer - - - - - Other commercial loans 5,717 4,547 1,031 5,578 415 Other agricultural loans 104 104 - 104 - State and political subdivision loans - - - - - Total $ 15,435 $ 10,874 $ 1,730 $ 12,604 $ 587 December 31, 2015 Real estate loans: Mortgages $ 281 $ 114 $ 129 $ 243 $ 26 Home Equity 61 - 61 61 11 Commercial 8,654 5,843 225 6,068 62 Agricultural 167 167 - 167 - Construction - - - - - Consumer - - - - - Other commercial loans 5,535 4,653 987 5,640 256 Other agricultural loans 105 105 - 105 - State and political subdivision loans - - - - - Total $ 14,803 $ 10,882 $ 1,402 $ 12,284 $ 355 The following tables includes the average balance of impaired financing receivables by class and the income recognized on impaired loans for the three and six month periods ended June 30, 2016 and 2015(in thousands): For the Six Months ended June 30, 2016 June 30, 2015 Interest Interest Average Interest Income Average Interest Income Recorded Income Recognized Recorded Income Recognized Investment Recognized Cash Basis Investment Recognized Cash Basis Real estate loans: Mortgages $ 425 $ 9 $ - $ 224 $ 4 $ 5 Home Equity 60 2 - 114 2 - Commercial 6,142 52 - 5,862 32 - Agricultural 165 5 - - - - Construction - - - - - - Consumer - - - - - - Other commercial loans 5,942 134 3 2,678 49 3 Other agricultural loans 104 3 - - - - State and political subdivision loans - - - - - - Total $ 12,838 $ 205 $ 3 $ 8,878 $ 87 $ 8 For the Three Months Ended June 30, 2016 June 30, 2015 Real estate loans: Mortgages $ 460 $ 5 $ - $ 259 $ 2 $ 5 Home Equity 59 1 - 103 1 - Commercial 6,158 26 - 5,700 19 - Agricultural 165 3 - - - - Construction - - - - - - Consumer - - - - - - Other commercial loans 5,933 68 2 2,629 24 2 Other agricultural loans 104 2 - - - - State and political subdivision loans - - - - - - Total $ 12,879 $ 105 $ 2 $ 8,691 $ 46 $ 7 Credit Quality Information For commercial real estate, agricultural real estate, construction, other commercial, other agricultural and state and political subdivision loans, management uses a nine grade internal risk rating system to monitor credit quality. The first five categories are considered not criticized and are aggregated as "Pass" rated. The criticized rating categories utilized by management generally follow bank regulatory definitions. The definitions of each rating are defined below: · Pass (Grades 1-5) – These loans are to customers with credit quality ranging from an acceptable to very high quality and are protected by the current net worth and paying capacity of the obligor or by the value of the underlying collateral. · Special Mention (Grade 6) – This loan grade is in accordance with regulatory guidance and includes loans where a potential weakness or risk exists, which could cause a more serious problem if not corrected. · Substandard (Grade 7) – This loan grade is in accordance with regulatory guidance and includes loans that have a well-defined weakness based on objective evidence and be characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. · Doubtful (Grade 8) – This loan grade is in accordance with regulatory guidance and includes loans that have all the weaknesses inherent in a substandard asset. In addition, these weaknesses make collection or liquidation in full highly questionable and improbable, based on existing circumstances. · Loss (Grade 9) – This loan grade is in accordance with regulatory guidance and includes loans that are considered uncollectible, or of such value that continuance as an asset is not warranted. To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay the loan as agreed, the Company's loan rating process includes several layers of internal and external oversight. The Company's loan officers are responsible for the timely and accurate risk rating of the loans in each of their portfolios at origination and on an ongoing basis under the supervision of management. All commercial and agricultural loans are reviewed annually to ensure the appropriateness of the loan grade. In addition, the Company engages an external consultant on at least an annual basis to 1) review a minimum of 55% of the dollar volume of the commercial loan portfolio on an annual basis, 2) review new loans originated for over $1.0 million in the last year, 3) review a majority of borrowers with commitments greater than or equal to $1.0 million, 4) review selected loan relationships over $750,000 which are over 30 days past due or classified Special Mention, Substandard, Doubtful, or Loss, and 5) such other loans which management or the consultant deems appropriate. The following tables represent credit exposures by internally assigned grades as of June 30, 2016 and December 31, 2015 (in thousands) June 30, 2016 Pass Special Mention Substandard Doubtful Loss Ending Balance Real estate loans: Commercial $ 228,452 $ 3,619 $ 14,796 $ 28 $ - $ 246,895 Agricultural 53,701 5,951 2,740 - - 62,392 Construction 10,481 - - - - 10,481 Other commercial loans 48,344 2,148 5,061 133 - 55,686 Other agricultural loans 14,454 2,320 1,629 - - 18,403 State and political subdivision loans 91,639 8,200 - - - 99,839 Total $ 447,071 $ 22,238 $ 24,226 $ 161 $ - $ 493,696 December 31, 2015 Real estate loans: Commercial $ 217,544 $ 4,150 $ 15,816 $ 32 $ - $ 237,542 Agricultural 53,695 2,865 1,262 - - 57,822 Construction 14,422 589 - - - 15,011 Other commercial loans 51,297 446 5,669 137 - 57,549 Other agricultural loans 13,318 234 105 - - 13,657 State and political subdivision loans 98,500 - - - - 98,500 Total $ 448,776 $ 8,284 $ 22,852 $ 169 $ - $ 480,081 For residential real estate mortgages, home equity and consumer loans, credit quality is monitored based on whether the loan is performing or non-performing, which is typically based on the aging status of the loan and payment activity, unless a specific action, such as bankruptcy, repossession, death or significant delay in payment occurs to raise awareness of a possible credit event. Non-performing loans include those loans that are considered nonaccrual, described in more detail below, and all loans past due 90 or more days and still accruing. The following table presents the recorded investment in those loan classes based on payment activity as of June 30, 2016 and December 31, 2015 ( in thousands) June 30, 2016 Performing Non-performing PCI Total Real estate loans: Mortgages $ 142,633 $ 1,474 $ 34 $ 144,141 Home Equity 59,709 130 - 59,839 Consumer 11,385 48 6 11,439 Total $ 213,727 $ 1,652 $ 40 $ 215,419 December 31, 2015 Performing Non-performing PCI Total Real estate loans: Mortgages $ 139,734 $ 1,270 $ 35 $ 141,039 Home Equity 62,236 132 - $ 62,368 Consumer 11,470 64 9 $ 11,543 Total $ 213,440 $ 1,466 $ 44 $ 214,950 Aging Analysis of Past Due Financing Receivables Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. The following table includes an aging analysis of the recorded investment of past due financing receivables as of June 30, 2016 and December 31, 2015 (in thousands): Total 90 Days or 30-59 Days 60-89 Days 90 Days Total Past Financing Greater and June 30, 2016 Past Due Past Due Or Greater Due Current PCI Receivables Accruing Real estate loans: Mortgages $ 1,564 $ 25 $ 704 $ 2,293 $ 141,814 $ 34 $ 144,141 $ 195 Home Equity 478 74 77 629 59,210 - 59,839 24 Commercial 1,257 958 4,147 6,362 238,517 2,016 246,895 461 Agricultural 166 58 165 389 61,266 737 62,392 165 Construction - - - - 10,481 - 10,481 - Consumer 210 39 48 297 11,136 6 11,439 9 Other commercial loans 15 3,062 1,012 4,089 50,721 876 55,686 146 Other agricultural loans 66 91 104 261 18,142 - 18,403 104 State and political subdivision loans - - - - 99,839 - 99,839 - Total $ 3,756 $ 4,307 $ 6,257 $ 14,320 $ 691,126 $ 3,669 $ 709,115 $ 1,104 Loans considered non-accrual $ 373 $ 3,759 $ 5,153 $ 9,285 $ 921 $ - $ 10,206 Loans still accruing 3,383 548 1,104 5,035 690,205 3,669 698,909 Total $ 3,756 $ 4,307 $ 6,257 $ 14,320 $ 691,126 $ 3,669 $ 709,115 Total 90 Days or 30-59 Days 60-89 Days 90 Days Total Past Financing Greater and December 31, 2015 Past Due Past Due Or Greater Due Current PCI Receivables Accruing Real estate loans: Mortgages $ 487 $ 283 $ 687 $ 1,457 $ 139,547 $ 35 $ 141,039 $ 321 Home Equity 630 15 121 766 61,602 - 62,368 73 Commercial 824 57 4,139 5,020 230,352 2,170 237,542 60 Agricultural 177 167 - 344 56,740 738 57,822 - Construction - - - - 15,011 - 15,011 - Consumer 239 37 49 325 11,209 9 11,543 9 Other commercial loans 143 214 1,010 1,367 55,316 866 57,549 160 Other agricultural loans 9 - - 9 13,648 - 13,657 - State and political subdivision loans - - - - 98,500 - 98,500 - Total $ 2,509 $ 773 $ 6,006 $ 9,288 $ 681,925 $ 3,818 $ 695,031 $ 623 Loans considered non-accrual $ 54 $ 171 $ 5,383 $ 5,608 $ 923 $ - $ 6,531 Loans still accruing 2,455 602 623 3,680 681,002 3,818 688,500 Total $ 2,509 $ 773 $ 6,006 $ 9,288 $ 681,925 $ 3,818 $ 695,031 Nonaccrual Loans Loans are considered for non-accrual status upon reaching 90 days delinquency, although the Company may be receiving partial payments of interest and partial repayments of principal on such loans or if full payment of principal and interest is not expected. Additionally, if management is made aware of other information including bankruptcy, repossession, death, or legal proceedings, the loan may be placed on non-accrual status. If a loan is 90 days or more past due and is well secured and in the process of collection, it may still be considered accruing. The following table reflects the financing receivables on non-accrual status as of June 30, 2016 and December 31, 2015, respectively. The balances are presented by class of financing receivable (in thousands): June 30, 2016 December 31, 2015 Real estate loans: Mortgages $ 1,279 $ 949 Home Equity 106 59 Commercial 4,711 4,422 Agricultural 29 34 Consumer 39 55 Other commercial loans 4,042 1,012 $ 10,206 $ 6,531 Troubled Debt Restructurings In situations where, for economic or legal reasons related to a borrower's financial difficulties, management may grant a concession for other than an insignificant period of time to the borrower that would not otherwise be considered, the related loan is classified as a Troubled Debt Restructuring (TDR). Management strives to identify borrowers in financial difficulty early and work with them to structure more affordable terms before their loan reaches nonaccrual status. These restructured terms may include rate reductions, principal forgiveness, payment forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. In cases where borrowers are granted new terms that provide for a reduction of interest or principal, or both, management measures any impairment on the restructuring by calculating the present value of the revised loan terms and comparing this balance to the Company's investment in the loan prior to the restructuring. As these loans are individually evaluated, they are excluded from pooled portfolios when calculating the allowance for loan and lease losses and a separate allocation within the allowance for loan and lease losses is provided. Management continually evaluates loans that are considered TDRs, including payment history under the modified loan terms, the borrower's ability to continue to repay the loan based on continued evaluation of their operating results and cash flows from operations. Based on this evaluation management would no longer consider a loan to be a TDR when the relevant facts support such a conclusion. As of June 30, 2016 and December 31, 2015, included within the allowance for loan losses are reserves of $33,000 and $37,000 respectively, that are associated with loans modified as TDRs. Loan modifications that are considered TDRs completed during the three and six months ended June 30, 2016 and 2015 were as follows (dollars in thousands): For the Three Months Ended June 30, 2016 Number of contracts Pre-modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Interest Modification Term Modification Interest Modification Term Modification Interest Modification Term Modification Real estate loans: Commercial - 3 $ - 438 $ - 438 Total - 3 $ - $ 438 $ - $ 438 For the Six Months Ended June 30, 2016 Number of contracts Pre-modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Interest Modification Term Modification Interest Modification Term Modification Interest Modification Term Modification Real estate loans: Commercial - 3 $ - 438 $ - 438 Total - 3 $ - $ 438 $ - $ 438 For the Three Months Ended June 30, 2015 Number of contracts Pre-modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Interest Modification Term Modification Interest Modification Term Modification Interest Modification Term Modification Real estate loans: Mortgages - 1 $ - $ 19 $ - $ 19 Total - 1 $ - $ 19 $ - $ 19 For the Six Months Ended June 30, 2015 Number of contracts Pre-modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Interest Modification Term Modification Interest Modification Term Modification Interest Modification Term Modification Real estate loans: Mortgages 1 1 $ 71 $ 19 $ 71 $ 19 Total 1 1 $ 71 $ 19 $ 71 $ 19 Recidivism, or the borrower defaulting on its obligation pursuant to a modified loan, results in the loan once again becoming a non-accrual loan. Recidivism occurs at a notably higher rate than do defaults on new origination loans, so modified loans present a higher risk of loss than do new origination loans. There were no loans that were modified as TDRs during each 12-month period prior to the current reporting periods, which begin January 1, 2016 and 2015 (six month periods) and April 1, 2016 and 2015 (3 month periods), respectively, that subsequently defaulted during these reporting periods. Allowance for Loan Losses The following table segregates the allowance for loan losses (ALLL) into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of June 30, 2016 and December 31, 2015, respectively (in thousands): June 30, 2016 December 31, 2015 Individually evaluated for impairment Collectively evaluated for impairment Total Individually evaluated for impairment Collectively evaluated for impairment Total Real estate loans: Residential $ 46 $ 944 $ 990 $ 37 $ 868 $ 905 Commercial and agricultural 126 3,793 3,919 62 3,723 3,785 Construction - 18 18 - 24 24 Consumer - 104 104 - 102 102 Other commercial and agricultural loans 415 1,149 1,564 256 1,049 1,305 State and political subdivision loans - 764 764 - 593 593 Unallocated - - - - 392 392 Total $ 587 $ 6,772 $ 7,359 $ 355 $ 6,751 $ 7,106 The following tables roll forward the balance of the ALLL by portfolio segment for the three and six month periods ended June 30, 2016 and 2015, respectively (in thousands): Balance at March 31, 2016 Charge-offs Recoveries Provision Balance at June 30, 2016 Real estate loans: Residential $ 966 $ (43 ) $ - $ 67 $ 990 Commercial and agricultural 3,938 - 4 (23 ) 3,919 Construction 14 - - 4 18 Consumer 96 (23 ) 29 2 104 Other commercial and agricultural loans 1,347 (18 ) - 235 1,564 State and political - subdivision loans 666 - - 98 764 Unallocated 248 - - (248 ) - Total $ 7,275 $ (84 ) $ 33 $ 135 $ 7,359 Balance at December 31, 2015 Charge-offs Recoveries Provision Balance at June 30, 2016 Real estate loans: Residential $ 905 $ (43 ) $ - $ 128 $ 990 Commercial and agricultural 3,785 - 8 126 3,919 Construction 24 - - (6 ) 18 Consumer 102 (38 ) 68 (28 ) 104 Other commercial and agricultural loans 1,305 (18 ) 6 271 1,564 State and political - subdivision loans 593 - - 171 764 Unallocated 392 - - (392 ) - Total $ 7,106 $ (99 ) $ 82 $ 270 $ 7,359 Balance at March 31, 2015 Charge-offs Recoveries Provision Balance at June 30, 2015 Real estate loans: Residential $ 923 $ (17 ) $ - $ 25 $ 931 Commercial and agricultural 3,699 (56 ) 3 33 3,679 Construction 11 - - 3 14 Consumer 82 (17 ) 4 20 89 Other commercial and agricultural loans 1,286 - - 216 1,502 State and political - subdivision loans 572 - - (4 ) 568 Unallocated 349 - - (173 ) 176 Total $ 6,922 $ (90 ) $ 7 $ 120 $ 6,959 Balance at December 31, 2014 Charge-offs Recoveries Provision Balance at June 30, 2015 Real estate loans: Residential $ 878 $ (34 ) $ - $ 87 $ 931 Commercial and agricultural 3,870 (56 ) 7 (142 ) 3,679 Construction 26 - - (12 ) 14 Consumer 84 (24 ) 12 17 89 Other commercial and agricultural loans 1,224 (1 ) - 279 1,502 State and political - subdivision loans 545 - - 23 568 Unallocated 188 - - (12 ) 176 Total $ 6,815 $ (115 ) $ 19 $ 240 $ 6,959 The Company allocates the ALLL based on the factors described below, which conform to the Company's loan classification policy and credit quality measurements. In reviewing risk within the Company's loan portfolio, management has determined there to be several different risk categories within the loan portfolio. The ALLL consists of amounts applicable to: (i) residential real estate loans; (ii) residential real estate home equity loans; (iii) commercial real estate loans; (iv) agricultural real estate loans; (v) real estate construction loans; (vi) other commercial and agricultural loans; (vii) consumer loans; (viii) other agricultural loans and (ix) state and political subdivision loans. Factors considered in this process include general loan terms, collateral, and availability of historical data to support the analysis. Historical loss percentages are calculated and used as the basis for calculating allowance allocations. Certain qualitative factors are evaluated to determine additional inherent risks in the loan portfolio, which are not necessarily reflected in the historical loss percentages. These factors are then added to the historical allocation percentage to get the adjusted factor to be applied to non-classified loans. The following qualitative factors are analyzed: · Level of and trends in delinquencies and impaired/classified loans § Change in volume and severity of past due loans § Volume of non-accrual loans § Volume and severity of classified, adversely or graded loans; · Level of and trends in charge-offs and recoveries; · Trends in volume, terms and nature of the loan portfolio; · Effects of any changes in risk selection and underwriting standards and any other changes in lending and recovery policies, procedures and practices; · Changes in the quality of the Company's loan review system; · Experience, ability and depth of lending management and other relevant staff; · National, state, regional and local economic trends and business conditions § General economic conditions § Unemployment rates § Inflation rate/ Consumer Price Index § Changes in values of underlying collateral for collateral-dependent loans; · Industry conditions including the effects of external factors such as competition, legal, and regulatory requirements on the level of estimated credit losses; · Existence and effect of any credit concentrations, and changes in the level of such concentrations; and · Any change in the level of board oversight. The Company analyzes its loan portfolio each quarter to determine the adequacy of its ALLL. Loans determined to be TDRs are impaired and for purposes of estimating the ALLL must be individually evaluated for impairment. In calculating the impairment, the Company calculates the present value utilizing an analysis of discounted cash flows. If the present value calculated is below the recorded investment of the loan, impairment is recognized by a charge to the provision for loan and lease losses and a credit to the ALLL. We continually review the model utilized in calculating the required ALLL. The following qualitative factors experienced changes during the first six months of 2016: · The qualitative factors for changes in levels of and trends in delinquencies, impaired/classified loans were increased for residential, consumer and agricultural related loans due to an increase in past due, non-accrual and classified loans. · The qualitative factor for industry conditions, including the effects of external factors such as competition, legal, and regulatory requirements on the level of estimated credit losses was increased for agricultural related loans due to the decrease in the price received for product sold and the increase in feed costs that has occurred in 2016, which negatively affected customer earnings. · The qualitative factor for national, state, regional and local economic trends and business conditions was increased for all loan categories due to an increase in the unemployment rates in the local economy during the first six months of 2016. The following qualitative factors experienced changes during the three months ended June 30, 2016: · The qualitative factor for national, state, regional and local economic trends and business conditions was increased for all loan categories due to an increase in the unemployment rates in the local economy during the quarter. · The qualitative factors for changes in levels of and trends in delinquencies, impaired/classified loans were increased for agricultural related loans due to an increase in past due, non-accrual and classified loans. The following qualitative factors experienced changes during the first six months of 2015: · The qualitative factor for national, state, regional and local economic trends and business conditions was increased for all loan categories due to an increase in the unemployment rates in the local economy during the first six months of 2015. · The qualitative factors for changes in levels of and trends in delinquencies, impaired/classified loans were decreased for commercial and agricultural real estate due to the decrease in the amount of loans classified as substandard. · The qualitative factors for changes in levels of and trends in delinquencies, impaired/classified loans were increased for other commercial and agricultural loans due to an increase in the amount of loans classified as substandard. · The qualitative factor for levels of and trends in charge-offs and recoveries was decreased for commercial and agricultural real estate and other commercial and agricultural loans due to the decrease in charge-offs compared to the prior year as charge-offs returned to historical levels for the Bank. · The qualitative factor for experience, ability and depth of lending management and other relevant staff was decreased for commercial real estate, agricultural real estate, other commercial and other agricultural loans due to the length of time employees involved throughout the loan process have been in their positions. · The qualitative factor for industry conditions, including the effects of external factors such as competition, legal, and regulatory requirements on the level of estimated credit losses was increased for commercial and agricultural related loans due to the decrease in the price received for product sold and the increase in feed costs that has occurred in 2015, which negatively affected customer earnings. · The qualitative factor for levels of and trends in charge-offs and recoveries was increased for residential real estate loans due to the increase in charge-offs compared to historical norms for the Company. · The qualitative factors for changes in levels of and trends in delinquencies, impaired/classified loans was increased for residential mortgages due to increases in the amount of delinquent loans. The following qualitative factors experienced changes during the three months ended June 30, 2015: · The qualitative factors for changes in levels of and trends in delinquencies, impaired/classified loans were decreased for commercial and agricultural real estate due to the decrease in the amount of loans classified as substandard. · The qualitative factors for changes in levels of and trends in delinquencies, impaired/classified loans were increased for other commercial and agricultural loans due to an increase in the amount of loans classified as substandard. · The qualitative factor for levels of and trends in charge-offs and recoveries was decreased for commercial and agricultural real estate and other commercial and agricultural loans due to the decrease in charge-offs compared to the prior year as charge-offs returned to historical levels for the Bank. · The qualitative factor for experience, ability and depth of lending management and other relevant staff was decreased for all commercial real estate, agricultural real estate, other commercial and other agricultural loans due to the length of time employees involved throughout the loan process have been in their positions. The primary factor that resulted in negative provision for commercial and agricultural loans for the six month period ended June 30, 2015 was the reduction in the amount of special mention and substandard loans since December 31, 2014. Foreclosed Assets Held For Sale Foreclosed assets acquired in settlement of loans are carried at fair value, less estimated costs to sell, and are included in other assets on the Consolidated Balance Sheet. As of June 30, 2016 and December 31, 2015 included with other assets are $1,558,000 and $1,354,000, respectively, of foreclosed assets. As of June 30, 2016, included |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Other Intangible Assets [Abstract] | |
Goodwill and Other Intangible Assets | Note 6 – Goodwill and Other Intangible Assets The following table provides the gross carrying value and accumulated amortization of intangible assets as of June 30, 2016 and December 31, 2015 (in thousands): June 30, 2016 December 31, 2015 Gross carrying value Accumulated amortization Net carrying value Gross carrying value Accumulated amortization Net carrying value Amortized intangible assets (1): MSRs $ 1,336 $ (728 ) $ 608 $ 1,336 $ (638 ) $ 698 Core deposit intangibles 1,641 (173 ) 1,468 1,641 (25 ) 1,616 Covenant not to compete 125 (18 ) 107 125 (2 ) 123 Total amortized intangible assets $ 3,102 $ (919 ) $ 2,183 $ 3,102 $ (665 ) $ 2,437 Unamortized intangible assets: Goodwill $ 21,089 $ 21,089 (1) Excludes fully amortized intangible assets The following table provides the current year and estimated future amortization expense for amortized intangible assets. We based our projections of amortization expense shown below on existing asset balances at June 30, 2016. Future amortization expense may vary from these projections (in thousands): MSRs Core deposit intangibles Covenant not to compete Total Six months ended June 30, 2016 (actual) $ 90 $ 148 $ 16 $ 254 Three months ended June 30, 2016 (actual) $ 44 $ 74 $ 8 $ 126 Estimate for year ended December 31, Remaining 2016 83 148 15 246 2017 142 266 31 439 2018 113 236 31 380 2019 88 206 30 324 2020 66 177 - 243 |
Federal Home Loan Bank Stock
Federal Home Loan Bank Stock | 6 Months Ended |
Jun. 30, 2016 | |
Federal Home Loan Bank Stock [Abstract] | |
Federal Home Loan Bank Stock | Note 7 – Federal Home Loan Bank Stock The Bank is a member of the FHLB of Pittsburgh and, as such, is required to maintain a minimum investment in stock of the FHLB that varies with the level of advances outstanding with the FHLB. As of June 30, 2016 and December 31, 2015, the Bank's investment in FHLB stock was $2,643,000 and $2,800,000, respectively. |
Repurchase Agreements
Repurchase Agreements | 6 Months Ended |
Jun. 30, 2016 | |
Repurchase Agreements [Abstract] | |
Repurchase Agreements | Note 8 – Repurchase Agreements We utilize securities sold under agreements to repurchase to facilitate the needs of our customers and to facilitate secured short-term funding needs. Securities sold under agreements to repurchase are stated at the amount of cash received in connection with the transaction. We monitor collateral levels on a continuous basis. We may be required to provide additional collateral based on the fair value of the underlying securities. Securities pledged as collateral under repurchase agreements are maintained with our safekeeping agents. The value of the collateral segmented by the remaining contractual maturity of the repurchase agreements in the Consolidated Balance Sheets as of June 30, 2016 and D ecember 31, 2015 Remaining Contractual Maturity of the Agreements Overnight and Up to Greater than June 30, 2016 Continuous 30 Days 30 - 90 Days 90 days Total Repurchase Agreements: U.S. agency securities $ 18,024 $ - $ - $ 2,129 $ 20,153 Total carrying value of collateral pledged $ 18,024 $ - $ - $ 2,129 $ 20,153 Total liability recognized for repurchase agreements $ 14,761 Remaining Contractual Maturity of the Agreements Overnight and Up to Greater than December 31, 2015 Continuous 30 Days 30 - 90 Days 90 days Total Repurchase Agreements: U.S. agency securities $ 18,144 $ - $ - $ 2,049 $ 20,193 Total carrying value of collateral pledged $ 18,144 $ - $ - $ 2,049 $ 20,193 Total liability recognized for repurchase agreements $ 16,008 |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2016 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | Note 9 - Employee Benefit Plans For additional detailed disclosure on the Company's pension and employee benefits plans, please refer to Note 11 of the Company's Consolidated Financial Statements included in the 2015 Annual Report on Form 10-K. Noncontributory Defined Benefit Pension Plan The Bank sponsors a noncontributory defined benefit pension plan ("Pension Plan") covering substantially all employees and officers that were hired prior to January 1, 2007. Additionally, the Bank assumed the noncontributory defined benefit pension plan of FNB when it was acquired during 2015. The FNB plan was frozen prior to the acquisition and therefore, no additional benefits will accrue for employees covered under that plan. These two plans are collectively referred to herein as "the Plans." For employees who are eligible to participate in the Pension Plan, the Pension Plan requires benefits to be paid to eligible employees based primarily upon age and compensation rates during employment. Upon retirement or other termination of employment, employees can elect either an annuity benefit or a lump sum distribution of vested benefits in the Pension Plan. The following sets forth the components of net periodic benefit costs of the Pension Plan for the three and six months ended June 30, 2016 and 2015, respectively (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Service cost $ 89 $ 78 $ 179 $ 132 Interest cost 173 90 345 153 Expected return on plan assets (260 ) (172 ) (520 ) (290 ) Net amortization and deferral 60 45 121 76 Net periodic benefit cost $ 62 $ 41 $ 125 $ 71 The Company expects to contribute $700,000 to the Pension Plans in 2016. Defined Contribution Plan The Company sponsors a voluntary 401(k) savings plan which eligible employees can elect to contribute up to the maximum amount allowable not to exceed the limits of IRS Code Sections 401(k). Under the plan, the Company also makes required contributions on behalf of the eligible employees. Directors' Deferred Compensation Plan The Company's directors may elect to defer all or portions of their fees until their retirement or termination from service. Amounts deferred under the plan earn interest based upon the highest current rate offered to certificate of deposit customers. Amounts deferred under the plan are not guaranteed and represent a general liability of the Company. At June 30, 2016 and December 31, 2015, an obligation of $929,000 and $958,000, respectively, was included in other liabilities for this plan in the Consolidated Balance Sheet. Restricted Stock Plan The Company maintains a Restricted Stock Plan (the "Plan") whereby employees and non-employee corporate directors are eligible to receive awards of restricted stock based upon performance related requirements. Awards granted under the Plan are in the form of the Company's common stock and are subject to certain vesting requirements including continuous employment or service with the Company. A total of 150,000 shares of the Company's common stock have been authorized under the Plan. As of June 30, 2016, 146,350 shares remain available to be issued under the Plan. The Plan assists the Company in attracting, retaining and motivating employees to make substantial contributions to the success of the Company and to increase the emphasis on the use of equity as a key component of compensation. The following table details the vesting, awarding and forfeiting of restricted shares during the three and six month periods ended June 30, 2016: Three months Six months Weighted Weighted Unvested Average Unvested Average Shares Market Price Shares Market Price Outstanding, beginning of period 8,111 $ 49.96 8,269 $ 49.98 Granted 3,650 47.81 3,650 47.81 Forfeited - - - - Vested (3,158 ) 50.41 (3,316 ) (50.45 ) Outstanding, end of period 8,603 $ 48.88 8,603 $ 48.88 Compensation cost related to restricted stock is recognized, based on the market price of the stock at the grant date, over the vesting period. Compensation expense related to restricted stock was $92,000 and $85,000 for the six months ended June 30, 2016 and 2015, respectively. For the three months ended June 30, 2016 and 2015, compensation expense totaled $45,000 and $43,000, respectively. At June 30, 2016 the total compensation cost related to nonvested awards that has not yet been recognized was $421,000, which is expected to be recognized over the next 2.75 years. Supplemental Executive Retirement Plan The Company maintains a non-qualified supplemental executive retirement plan ("SERP") for certain executives to compensate those executive participants in the Company's noncontributory defined benefit pension plan whose benefits are limited by compensation limitations under current tax law. At June 30, 2016 and December 31, 2015, an obligation of $1,400,000 and $1,339,000, respectively, was included in other liabilities for this plan in the Consolidated Balance Sheet. Expenses related to this plan totaled $61,000 and $71,000 for the six months ended June 30, 2016 and 2015, respectively. Salary Continuation Plan The Company maintains a salary continuation plan for certain employees acquired through the acquisition of the FNB. At June 30, 2016 and December 31 2015, an obligation of $716,000 and $710,000 was included in other liabilities for this plan in the Consolidated Balance Sheet. Expenses related to this plan totaled $16,000 for the three months ended June 30, 2016. For the six months ended June 30, 2016, expenses related to this plan totaled $32,000. Continuation of Life Insurance Plan The Company, as part of the acquisition of FNB, has promised a continuation of certain split-dollar life insurance policies that provide coverage to certain persons post-retirement. U.S. generally accepted accounting principles require the recording of post-retirement costs and a liability equal to the present value of the cost of post-retirement insurance during the person's term of service. The estimated present value of future benefits to be paid totaled $574,000 at both June 30, 2016 and December 31, 2015, which is included in other liabilities in the Consolidated Balance Sheet. |
Accumulated Comprehensive Incom
Accumulated Comprehensive Income | 6 Months Ended |
Jun. 30, 2016 | |
Accumulated Comprehensive Income [Abstract] | |
Accumulated Comprehensive Income | Note 9 – Accumulated Comprehensive Income The following tables present the changes in accumulated other comprehensive income by component net of tax for the three and six months ended June 30, 2016 and 2015 (in thousands): Three months ended June 30, 2016 Unrealized gain (loss) on available for sale securities (a) Defined Benefit Pension Items (a) Total Balance as of March 31, 2016 $ 3,303 $ (2,400 ) $ 903 Other comprehensive income before reclassifications (net of tax) 1,184 - 1,184 Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) (84 ) 39 (45 ) Net current period other comprehensive income 1,100 39 1,139 Balance as of June 30, 2016 $ 4,403 $ (2,361 ) $ 2,042 Six months ended June 30, 2016 Balance as of December 31, 2015 $ 2,204 $ (2,440 ) $ (236 ) Other comprehensive income before reclassifications (net of tax) 2,301 - 2,301 Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) (102 ) 79 (23 ) Net current period other comprehensive income 2,199 79 2,278 Balance as of June 30, 2016 $ 4,403 $ (2,361 ) $ 2,042 Three months ended June 30, 2015 Balance as of March 31, 2015 $ 3,897 $ (2,294 ) $ 1,603 Other comprehensive income (loss) before reclassifications (net of tax) (1,351 ) - (1,351 ) Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) (116 ) 35 (81 ) Net current period other comprehensive income (loss) (1,467 ) 35 (1,432 ) Balance as of June 30, 2015 $ 2,430 $ (2,259 ) $ 171 Six months ended June 30, 2015 Balance as of December 31, 2014 $ 3,093 $ (2,326 ) $ 767 Other comprehensive income (loss) before reclassifications (net of tax) (464 ) - (464 ) Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) (199 ) 67 (132 ) Net current period other comprehensive income (loss) (663 ) 67 (596 ) Balance as of June 30, 2015 $ 2,430 $ (2,259 ) $ 171 (a) Amounts in parentheses indicate debits to the Consolidated Balance Sheet The following table presents the significant amounts reclassified out of each component of accumulated other comprehensive income for the three and six months ended June 30, 2016 and 2015 (in thousands): Details about accumulated other comprehensive income (loss) Amount reclassified from accumulated comprehensive income (loss) (a) Affected line item in the statement where net Income is presented Three Months Ended June 30, 2016 2015 Unrealized gains and losses on available for sale securities $ 128 $ 175 Investment securities gains, net (44 ) (59 ) Provision for income taxes $ 84 $ 116 Net of tax Defined benefit pension items $ (60 ) $ (54 ) Salaries and employee benefits 21 19 Provision for income taxes $ (39 ) $ (35 ) Net of tax Total reclassifications $ 45 $ 81 Six Months Ended June 30, 2016 2015 Unrealized gains and losses on available for sale securities $ 155 $ 301 Investment securities gains, net (53 ) (102 ) Provision for income taxes $ 102 $ 199 Net of tax Defined benefit pension items $ (121 ) $ (102 ) Salaries and employee benefits 42 35 Provision for income taxes $ (79 ) $ (67 ) Net of tax Total reclassifications $ 23 $ 132 (a) Amounts in parentheses indicate expenses and other amounts indicate income on the Consolidated Statement of Income |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note 10 – Fair Value Measurements The Company has established a hierarchal disclosure framework associated with the level of pricing observability utilized in measuring assets and liabilities at fair value. The three broad levels defined by this hierarchy are as follows Level I: Quoted prices are available in active markets for identical assets or liabilities as of the reported date. Level II: Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities include items for which quoted prices are available but traded less frequently, and items that are fair valued using other financial instruments, the parameters of which can be directly observed. Level III: Assets and liabilities that have little to no pricing observability as of the reported date. These items do not have two-way markets and are measured using management's best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality, the Company's creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. Our valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Company's valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally coincides with the Company's monthly and/or quarterly valuation process. Financial Instruments Recorded at Fair Value on a Recurring Basis The fair values of securities available for sale are determined by quoted prices in active markets, when available, and classified as Level I. If quoted market prices are not available, the fair value is determined by a matrix pricing, which is a mathematical technique, widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities' relationship to other benchmark quoted securities and classified as Level II. The fair values consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond's terms and conditions, among other things. The following tables present the assets and liabilities reported on the Consolidated Balance Sheet at their fair value on a recurring basis as of June 30, 2016 and December 31, 2015 by level within the fair value hierarchy (in thousands). Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. June 30, 2016 Level I Level II Level III Total Fair value measurements on a recurring basis: Assets Securities available for sale: U.S. Agency securities $ - $ 205,819 $ - $ 205,819 U.S. Treasury securities 5,053 - - 5,053 Obligations of state and political subdivisions - 104,472 - 104,472 Corporate obligations - 11,480 - 11,480 Mortgage-backed securities in government sponsored entities - 31,606 - 31,606 Equity securities in financial institutions 2,514 - - 2,514 December 31, 2015 Fair value measurements on a recurring basis: Securities available for sale: U.S. Agency securities $ - $ 199,591 $ - $ 199,591 U.S. Treasuries securities 10,082 - - 10,082 Obligations of state and political subdivisions - 102,863 - 102,863 Corporate obligations - 14,565 - 14,565 Mortgage-backed securities in government sponsored entities - 30,204 - 30,204 Equity securities in financial institutions 2,432 - - 2,432 Financial Instruments, Non-Financial Assets and Non-Financial Liabilities Recorded at Fair Value on a Nonrecurring Basis The Company may be required, from time to time, to measure certain financial assets, financial liabilities, non-financial assets and non-financial liabilities at fair value on a nonrecurring basis in accordance with U.S. generally accepted accounting principles. These include assets that are measured at the lower of cost or market value that were recognized at fair value below cost at the end of the period. Certain non-financial assets measured at fair value on a non-recurring basis include foreclosed assets (upon initial recognition or subsequent impairment), non-financial assets and non-financial liabilities measured at fair value in the second step of a goodwill impairment test, and intangible assets and other non-financial long-lived assets measured at fair value for impairment assessment. Non-financial assets measured at fair value on a non-recurring basis during 2016 and 2015 include certain foreclosed assets which, upon initial recognition, were remeasured and reported at fair value through a charge-off to the allowance for possible loan losses and certain foreclosed assets which, subsequent to their initial recognition, were remeasured at fair value through a write-down included in other non-interest expense. Assets measured at fair value on a nonrecurring basis as of June 30, 2016 and December 31, 2015 are included in the table below ( in thousands) June 30, 2016 Level I Level II Level III Total Impaired Loans $ - $ - $ 989 $ 989 Other real estate owned - - 1,007 1,007 December 31, 2015 Impaired Loans $ - $ - $ 894 $ 894 Other real estate owned - - 1,197 1,197 · Impaired Loans - · Other Real Estate owned – The following table provides a listing of the significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques (dollars in thousands). Quantitative Information about Level 3 Fair Value Measurements June 30, 2016 Fair Value Valuation Technique(s) Unobservable input Range Weighted average Impaired Loans $ 989 Appraised Collateral Values Discount to appraised value 0-75 % 36.64 % Selling costs 5%-10 % 8.18 % Holding period 0 - 12 months 10 months Other real estate owned 1,007 Appraised Collateral Values Discount to appraised value 0-37 % 24.70 % December 31, 2015 Fair Value Valuation Technique(s) Unobservable input Range Impaired Loans 894 Appraised Collateral Values Discount to appraised value 0-70 % 46.50 % Selling costs 4%-10 % 7.75 % Holding period 0 - 12 months 10 months Other real estate owned 1,197 Appraised Collateral Values Discount to appraised value 0-75 % 25 % The fair values of the Company's financial instruments are as follows (in thousands): Carrying June 30, 2016 Amount Fair Value Level I Level II Level III Financial assets: Cash and due from banks $ 26,822 $ 26,822 $ 26,822 $ - $ - Interest bearing time deposits with other banks 6,954 6,961 - - 6,961 Available-for-sale securities 360,944 360,944 7,567 353,377 Loans held for sale 1,304 1,304 1,304 Net loans 701,756 726,584 - - 726,584 Bank owned life insurance 25,877 25,877 25,877 - - Regulatory stock 3,407 3,407 3,407 - - Accrued interest receivable 4,176 4,176 4,176 - - Financial liabilities: Deposits $ 1,003,482 $ 1,005,158 $ 734,593 $ - $ 270,565 Borrowed funds 38,786 37,240 - - 37,240 Accrued interest payable 644 644 644 - - Carrying December 31, 2015 Amount Fair Value Level I Level II Level III Financial assets: Cash and due from banks $ 24,384 $ 24,384 $ 24,384 $ - $ - Interest bearing time deposits with other banks 7,696 7,705 - - 7,705 Available-for-sale securities 359,737 359,737 12,514 347,223 - Loans held for sale 603 603 603 Net loans 687,925 712,524 - - 712,524 Bank owned life insurance 25,535 25,535 25,535 - - Regulatory stock 3,459 3,459 3,459 - - Accrued interest receivable 4,211 4,211 4,211 - - Financial liabilities: Deposits $ 988,031 $ 987,542 $ 706,121 $ - $ 281,421 Borrowed funds 41,631 38,863 1,598 - 37,265 Accrued interest payable 734 734 734 - Fair value is determined based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company's entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company's financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions can significantly affect the estimates. Fair values have been determined by the Company using historical data, as generally provided in the Company's regulatory reports, and an estimation methodology suitable for each category of financial instruments. The Company's fair value estimates, methods and assumptions are set forth below for the Company's other financial instruments. Cash and Cash Equivalents: The carrying amounts for cash and cash equivalents approximate fair value because they have original maturities of 90 days or less and do not present unanticipated credit concerns. Accrued Interest Receivable and Payable: The carrying amounts for accrued interest receivable and payable approximate fair value because they are generally received or paid in 90 days or less and do not present unanticipated credit concerns. Interest bearing time deposits with other banks: The fair value of interest bearing time deposits with other banks is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. Available-For-Sale Securities: The fair values of securities available for sale are determined by quoted prices in active markets, when available, and classified as Level I. If quoted market prices are not available, the fair value is determined by a matrix pricing, which is a mathematical technique, widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities' relationship to other benchmark quoted securities and classified as Level II. The fair values consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond's terms and conditions, among other things. Loans held for sale: The carrying amount for loans held for sale approximates fair value as the loans are only held for less than a week from origination. Loans: Fair values are estimated for portfolios of loans with similar financial characteristics. The fair value of performing loans has been estimated by discounting expected future cash flows. The discount rate used in these calculations is derived from the Treasury yield curve adjusted for credit quality, operating expense and prepayment option price, and is calculated by discounting scheduled cash flows through the estimated maturity using estimated market discount rates that reflect the credit and interest rate risk inherent in the loan. The estimate of maturity is based on the Company's historical experience with repayments for each loan classification, modified as required by an estimate of the effect of current economic and lending conditions. Bank Owned Life Insurance: The carrying value of bank owned life insurance approximates fair value based on applicable redemption provisions. Regulatory Stock: The carrying value of regulatory stock approximates fair value based on applicable redemption provisions. Deposits: The fair value of deposits with no stated maturity, such as noninterest-bearing demand deposits, savings and NOW accounts, and money market accounts, is equal to the amount payable on demand. The fair value of certificates of deposit is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. The deposits' fair value estimates do not include the benefit that results from the low-cost funding provided by the deposit liabilities compared to the cost of borrowing funds in the market, commonly referred to as the core deposit intangible. Borrowed Funds: Rates available to the Company for borrowed funds with similar terms and remaining maturities are used to estimate the fair value of borrowed funds. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2016 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | Note 11 – Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements -Going Concern (Subtopic In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810) . The amendments in this Update affect reporting entities that are required to evaluate whether they should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. Specifically, the amendments (1) modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities; (2) eliminate the presumption that a general partner should consolidate a limited partnership; (3) affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; (4) provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. The amendments in this Update are effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2016, and for interim periods within fiscal years beginning after December 15, 2017. In April 2015, the FASB issued ASU 2015-03, Interest-Imputation of Interest (Subtopic 835-30) , as part of its initiative to reduce complexity in accounting standards. To simplify presentation of debt issuance costs, the amendments in this Update require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this Update. For public business entities, the amendments in this Update are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. For all other entities, the amendments in this Update are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within fiscal years beginning after December 15, 2016. An entity should apply the new guidance on a retrospective basis, wherein the balance sheet of each individual period In June 2015, the FASB issued ASU 2015-10, Technical Corrections and Improvements In August 2015, the FASB issued ASU 2015-14, Revenue from Contract with Customers (Topic 606). The amendments in this Update defer the effective date of ASU 2014-09 for all entities by one year. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. All other entities should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after Dece In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805). The amendments in this Update require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments in this Update require that the acquirer record, in the same period's financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amendments in this Update require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. For all other entities, the amendments in this Update are effective for fiscal years beginning after December In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) rlier application permitted as of the beginning of an interim or annual reporting period. The Company is currently evaluating the impact the adoption of the standard will have on the Company's financial position or results of operations. In March 2016, the FASB issued ASU 2016-04, Liabilities – Extinguishments of Liabilities (Subtopic 405-20). after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Earlier application is permitted, including adoption in an interim period. This Update is not expected to have a significant impact on the Company's financial statements. In March 2016, the FASB issued ASU 2016-05, Derivatives and Hedging (Topic 815) . Topic 815 For public business entities, the amendments in this Update are effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. For all other entities, the amendments in this Update are effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within fiscal years beginning after December 15, 2018. An entity has an option to apply the amendments in this Update on either a prospective basis or a modified retrospective basis. Early adoption is permitted, including adoption in an interim period. This Update is not expected to have a significant impact on the Company's financial statements. In March 2016, the FASB issued ASU 2016-06, Derivatives and Hedging (Topic 815) . The amendments apply to all entities that are issuers of or investors in debt instruments (or hybrid financial instruments that are determined to have a debt host) with embedded call (put) options. The amendments in this update clarify the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt host. An entity performing the assessment under the amendments in this Update is required to assess the embedded call (put) options solely in accordance with the four-step decision sequence. For public business entities, the amendments in this Update are effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. For entities other than public business entities, the amendments in this Update are effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within fiscal years beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact the adoption of the standard will have on the Company's financial position or results of operations. In March 2016, the FASB issued ASU 2016-07, Investments – Equity Method and Joint Ventures (Topic 323) . The Update affects all entities that have an investment that becomes qualified for the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence. The amendments in this Update eliminate the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor's previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. Therefore, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. The amendments in this Update require that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. The amendments in this Update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The amendments should be applied prospectively upon their effective date to increases in the level of ownership interest or degree of influence that result in the adoption of the equity method. Earlier application is permitted. This Update is not expected to have a significant impact on the Company's financial statements. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606). The amendments in this Update affect entities with transactions included within the scope of Topic 606, which includes entities that enter into contracts with customers to transfer goods or services (that are an output of the entity's ordinary activities) in exchange for consideration. The amendments in this update do not change the core principle of the guidance in Topic 606; they simply clarify the implementation guidance on principal versus agent considerations. The amendments in this Update are intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. The amendments in this Update affect the guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements of Update 2014-09. ASU No. 2015-14, Revenue from Contracts wi th Customers (Topic 606): Deferral of the Effective Date, defers the effective date of Update 2014-09 by one year. The Company is currently evaluating the impact the adoption of the standard will have on the Company's financial position or results of operations. In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718) . The amendments in this Update affect all entities that issue share-based payment awards to their employees. The standards in this Update provide simplification for several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as with equity or liabilities, and classification on the statement of cash flows. Some of the areas for simplification apply only to nonpublic entities. In addition to those simplifications, the amendments eliminate the guidance in Topic 718 that was indefinitely deferred shortly after the issuance of FASB Statement No. 123 (revised 2004), Share-Based Payment . This should not result in a change in practice because the guidance that is being superseded was never effective. For public business entities, the amendments in this Update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. For all other entities, the amendments are effective for annual periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15 , 2018. Early adoption is permitted for any entity in any interim or annual period. The Company is currently evaluating the impact the adoption of the standard will have on the Company's financial position or results of operations. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606). The amendments in this Update affect entities with transactions included within the scope of Topic 606, which includes entities that enter into contracts with customers to transfer goods or services in exchange for consideration. The amendments in this Update do not change the core principle for revenue recognition in Topic 606. Instead, the amendments provide (1) more detailed guidance in a few areas and (2) additional implementation guidance and examples based on feedback the FASB received from its stakeholders. The amendments are expected to reduce the degree of judgment necessary to comply with Topic 606, which the FASB expects will reduce the potential for diversity arising in practice and reduce the cost and complexity of applying the guidance. The amendments in this Update affect the guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements in Topic 606 (and any other Topic amended by Update 2014-09). ASU 2015-14, Revenue from Contracts with Customers (Topic 606) : Deferral of the Effective Date, defers the effective date of Update 2014-09 by one year. The Company is currently evaluating the impact the adoption of the standard will have on the Company's financial position or results of operations. In May 2016, the FASB issued ASU 2016-11, Revenue Recognition (Topic 605) and Derivative and Hedging (Topic 815 In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments interim periods beginning after December 15, 2018. With certain exceptions, transition to the new requirements will be through a cumulative effect adjustment to opening retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company is currently evaluating the impact the adoption of the standard will have on the Company's financial position or results of operations. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings per Share [Abstract] | |
Computation of earnings per share | Note 2 - Earnings per Share The following table sets forth the computation of earnings per share. Earnings per share calculations give retroactive effect to stock dividends declared by the Company. Three months ended Six months ended June 30, June 30, 2016 2015 2016 2015 Net income applicable to common stock $ 3,031,000 $ 3,189,000 $ 6,314,000 $ 6,309,000 Basic earnings per share computation Weighted average common shares outstanding 3,343,254 3,052,285 3,349,913 3,055,569 Earnings per share - basic $ 0.91 $ 1.04 $ 1.88 $ 2.06 Diluted earnings per share computation Weighted average common shares outstanding for basic earnings per share 3,343,254 3,052,285 3,349,913 3,055,569 Add: Dilutive effects of restricted stock 409 1,064 205 534 Weighted average common shares outstanding for dilutive earnings per share 3,343,663 3,053,349 3,350,118 3,056,103 Earnings per share - diluted $ 0.91 $ 1.04 $ 1.88 $ 2.06 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Investments [Abstract] | |
Summary of amortized cost, gross unrealized gains and losses, and fair value of investment securities | The amortized cost, gross unrealized gains and losses, and fair value of investment securities at June 30, 2016 and December 31, 2015 were as follows (in thousands): Gross Gross Amortized Unrealized Unrealized Fair June 30, 2016 Cost Gains Losses Value Available-for-sale securities: U.S. agency securities $ 203,461 $ 2,359 $ (1 ) $ 205,819 U.S. treasury securities 5,046 7 - 5,053 Obligations of state and political subdivisions 101,144 3,338 (10 ) 104,472 Corporate obligations 11,430 50 - 11,480 Mortgage-backed securities in government sponsored entities 31,190 456 (40 ) 31,606 Equity securities in financial Institutions 2,001 518 (5 ) 2,514 Total available-for-sale securities $ 354,272 $ 6,728 $ (56 ) $ 360,944 December 31, 2015 Available-for-sale securities: U.S. agency securities $ 199,749 $ 369 $ (527 ) $ 199,591 U.S. treasury securities 10,103 - (21 ) 10,082 Obligations of state and political subdivisions 99,856 3,080 (73 ) 102,863 Corporate obligations 14,583 68 (86 ) 14,565 Mortgage-backed securities in government sponsored entities 30,107 186 (89 ) 30,204 Equity securities in financial institutions 2,001 436 (5 ) 2,432 Total available-for-sale securities $ 356,399 $ 4,139 $ (801 ) $ 359,737 |
Unrealized losses and fair value of investments | The following table shows the Company's gross unrealized losses and fair value of the Company's investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time, which individual securities have been in a continuous unrealized loss position, at June 30, 2016 and December 31, 2015 (in thousands). As of June 30, 2016, the Company owned 17 securities whose fair value was less than their cost basis. June 30, 2016 Less than Twelve Months Twelve Months or Greater Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses U.S. agency securities $ 8,509 $ (1 ) $ - $ - $ 8,509 $ (1 ) Obligations of state and political subdivisions 4,342 (9 ) 503 (1 ) 4,845 (10 ) Mortgage-backed securities in government sponsored entities 3,716 (22 ) 1,987 (18 ) 5,703 (40 ) Equity securities in financial institutions 111 (5 ) - - 111 (5 ) Total securities $ 16,678 $ (37 ) $ 2,490 $ (19 ) $ 19,168 $ (56 ) December 31, 2015 U.S. agency securities $ 123,591 $ (527 ) $ - $ - $ 123,591 $ (527 ) U.S. treasury securities 10,082 (21 ) - - 10,082 (21 ) Obligations of states and political subdivisions 7,023 (57 ) 2,914 (16 ) 9,937 (73 ) Corporate obligations 5,822 (61 ) 2,138 (25 ) 7,960 (86 ) Mortgage-backed securities in government sponsored entities 9,830 (77 ) 227 (12 ) 10,057 (89 ) Equity securities in financial institutions 106 (5 ) - - 106 (5 ) Total securities $ 156,454 $ (748 ) $ 5,279 $ (53 ) $ 161,733 $ (801 ) |
Gross gains and losses on available-for-sale securities | The gross gains and losses were as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Gross gains $ 128 $ 175 $ 155 $ 312 Gross losses - - - (11 ) Net gains $ 128 $ 175 $ 155 $ 301 |
Summary of amortized cost and fair value of debt securities by contractual maturity | The amortized cost and fair value of debt securities at June 30, 2016, by contractual maturity, are shown below (in thousands): Amortized Cost Fair Value Available-for-sale debt securities: Due in one year or less $ 41,555 $ 41,758 Due after one year through five years 190,450 193,673 Due after five years through ten years 41,023 42,092 Due after ten years 79,243 80,907 Total $ 352,271 $ 358,430 |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Loans [Abstract] | |
Summary of loan portfolio and allowance for loan losses | The following table summarizes the primary segments of the loan portfolio and how those segments are analyzed within the allowance for loan losses as of June 30, 2016 and December 31, 2015 (in thousands): June 30, 2016 Total Loans Individually evaluated for impairment Loans acquired with deteriorated credit quality Collectively evaluated for impairment Real estate loans: Residential $ 203,980 $ 518 $ 34 $ 203,428 Commercial and agricultural 309,287 6,404 2,753 300,130 Construction 10,481 - - 10,481 Consumer 11,439 - 6 11,433 Other commercial and agricultural loans 74,089 5,682 876 67,531 State and political subdivision loans 99,839 - - 99,839 Total 709,115 12,604 3,669 692,842 Allowance for loan losses 7,359 587 - 6,772 Net loans $ 701,756 $ 12,017 $ 3,669 $ 686,070 December 31, 2015 Total Loans Individually evaluated for impairment Loans acquired with deteriorated credit quality Collectively evaluated for impairment Real estate loans: Residential $ 203,407 $ 304 $ 35 $ 203,068 Commercial and agricultural 295,364 6,235 2,908 286,221 Construction 15,011 - - 15,011 Consumer 11,543 - 9 11,534 Other commercial and agricultural loans 71,206 5,745 866 64,595 State and political subdivision loans 98,500 - - 98,500 Total 695,031 12,284 3,818 678,929 Allowance for loan losses 7,106 355 - 6,751 Net loans $ 687,925 $ 11,929 $ 3,818 $ 672,178 |
Accretable yield for purchased credit impaired loans | Changes in the accretable yield for purchased credit-impaired loans were as follows for the three and six months ended June 30, 2016 (in thousands): Three Months Ended Six Months Ended Balance at beginning of period $ 551 $ 637 Accretion (87 ) (173 ) Balance at end of period $ 464 $ 464 |
Loans acquired with specific evidence of deterioration in credit quality | The following table presents additional information regarding loans acquired with specific evidence of deterioration in credit quality under ASC 310-30 (in thousands): June 30, 2016 December 31, 2015 Outstanding balance $ 6,616 $ 6,950 Carrying amount 3,669 3,818 |
Impaired financing receivables with associated allowance amount | The following table includes the recorded investment and unpaid principal balances for impaired financing receivables by class, with the associated allowance amount, if applicable (in thousands) Recorded Recorded Unpaid Investment Investment Total Principal With No With Recorded Related June 30, 2016 Balance Allowance Allowance Investment Allowance Real estate loans: Mortgages $ 502 $ 114 $ 345 $ 459 $ 35 Home Equity 59 - 59 59 11 Commercial 8,888 5,944 295 6,239 126 Agricultural 165 165 - 165 - Construction - - - - - Consumer - - - - - Other commercial loans 5,717 4,547 1,031 5,578 415 Other agricultural loans 104 104 - 104 - State and political subdivision loans - - - - - Total $ 15,435 $ 10,874 $ 1,730 $ 12,604 $ 587 December 31, 2015 Real estate loans: Mortgages $ 281 $ 114 $ 129 $ 243 $ 26 Home Equity 61 - 61 61 11 Commercial 8,654 5,843 225 6,068 62 Agricultural 167 167 - 167 - Construction - - - - - Consumer - - - - - Other commercial loans 5,535 4,653 987 5,640 256 Other agricultural loans 105 105 - 105 - State and political subdivision loans - - - - - Total $ 14,803 $ 10,882 $ 1,402 $ 12,284 $ 355 The following tables includes the average balance of impaired financing receivables by class and the income recognized on impaired loans for the three and six month periods ended June 30, 2016 and 2015(in thousands): For the Six Months ended June 30, 2016 June 30, 2015 Interest Interest Average Interest Income Average Interest Income Recorded Income Recognized Recorded Income Recognized Investment Recognized Cash Basis Investment Recognized Cash Basis Real estate loans: Mortgages $ 425 $ 9 $ - $ 224 $ 4 $ 5 Home Equity 60 2 - 114 2 - Commercial 6,142 52 - 5,862 32 - Agricultural 165 5 - - - - Construction - - - - - - Consumer - - - - - - Other commercial loans 5,942 134 3 2,678 49 3 Other agricultural loans 104 3 - - - - State and political subdivision loans - - - - - - Total $ 12,838 $ 205 $ 3 $ 8,878 $ 87 $ 8 For the Three Months Ended June 30, 2016 June 30, 2015 Real estate loans: Mortgages $ 460 $ 5 $ - $ 259 $ 2 $ 5 Home Equity 59 1 - 103 1 - Commercial 6,158 26 - 5,700 19 - Agricultural 165 3 - - - - Construction - - - - - - Consumer - - - - - - Other commercial loans 5,933 68 2 2,629 24 2 Other agricultural loans 104 2 - - - - State and political subdivision loans - - - - - - Total $ 12,879 $ 105 $ 2 $ 8,691 $ 46 $ 7 |
Summary of financing receivable credit exposures by internally assigned grades | The following tables represent credit exposures by internally assigned grades as of June 30, 2016 and December 31, 2015 (in thousands) June 30, 2016 Pass Special Mention Substandard Doubtful Loss Ending Balance Real estate loans: Commercial $ 228,452 $ 3,619 $ 14,796 $ 28 $ - $ 246,895 Agricultural 53,701 5,951 2,740 - - 62,392 Construction 10,481 - - - - 10,481 Other commercial loans 48,344 2,148 5,061 133 - 55,686 Other agricultural loans 14,454 2,320 1,629 - - 18,403 State and political subdivision loans 91,639 8,200 - - - 99,839 Total $ 447,071 $ 22,238 $ 24,226 $ 161 $ - $ 493,696 December 31, 2015 Real estate loans: Commercial $ 217,544 $ 4,150 $ 15,816 $ 32 $ - $ 237,542 Agricultural 53,695 2,865 1,262 - - 57,822 Construction 14,422 589 - - - 15,011 Other commercial loans 51,297 446 5,669 137 - 57,549 Other agricultural loans 13,318 234 105 - - 13,657 State and political subdivision loans 98,500 - - - - 98,500 Total $ 448,776 $ 8,284 $ 22,852 $ 169 $ - $ 480,081 For residential real estate mortgages, home equity and consumer loans, credit quality is monitored based on whether the loan is performing or non-performing, which is typically based on the aging status of the loan and payment activity, unless a specific action, such as bankruptcy, repossession, death or significant delay in payment occurs to raise awareness of a possible credit event. Non-performing loans include those loans that are considered nonaccrual, described in more detail below, and all loans past due 90 or more days and still accruing. The following table presents the recorded investment in those loan classes based on payment activity as of June 30, 2016 and December 31, 2015 ( in thousands) June 30, 2016 Performing Non-performing PCI Total Real estate loans: Mortgages $ 142,633 $ 1,474 $ 34 $ 144,141 Home Equity 59,709 130 - 59,839 Consumer 11,385 48 6 11,439 Total $ 213,727 $ 1,652 $ 40 $ 215,419 December 31, 2015 Performing Non-performing PCI Total Real estate loans: Mortgages $ 139,734 $ 1,270 $ 35 $ 141,039 Home Equity 62,236 132 - $ 62,368 Consumer 11,470 64 9 $ 11,543 Total $ 213,440 $ 1,466 $ 44 $ 214,950 |
Aging analysis of past due financing receivables | The following table includes an aging analysis of the recorded investment of past due financing receivables as of June 30, 2016 and December 31, 2015 (in thousands): Total 90 Days or 30-59 Days 60-89 Days 90 Days Total Past Financing Greater and June 30, 2016 Past Due Past Due Or Greater Due Current PCI Receivables Accruing Real estate loans: Mortgages $ 1,564 $ 25 $ 704 $ 2,293 $ 141,814 $ 34 $ 144,141 $ 195 Home Equity 478 74 77 629 59,210 - 59,839 24 Commercial 1,257 958 4,147 6,362 238,517 2,016 246,895 461 Agricultural 166 58 165 389 61,266 737 62,392 165 Construction - - - - 10,481 - 10,481 - Consumer 210 39 48 297 11,136 6 11,439 9 Other commercial loans 15 3,062 1,012 4,089 50,721 876 55,686 146 Other agricultural loans 66 91 104 261 18,142 - 18,403 104 State and political subdivision loans - - - - 99,839 - 99,839 - Total $ 3,756 $ 4,307 $ 6,257 $ 14,320 $ 691,126 $ 3,669 $ 709,115 $ 1,104 Loans considered non-accrual $ 373 $ 3,759 $ 5,153 $ 9,285 $ 921 $ - $ 10,206 Loans still accruing 3,383 548 1,104 5,035 690,205 3,669 698,909 Total $ 3,756 $ 4,307 $ 6,257 $ 14,320 $ 691,126 $ 3,669 $ 709,115 Total 90 Days or 30-59 Days 60-89 Days 90 Days Total Past Financing Greater and December 31, 2015 Past Due Past Due Or Greater Due Current PCI Receivables Accruing Real estate loans: Mortgages $ 487 $ 283 $ 687 $ 1,457 $ 139,547 $ 35 $ 141,039 $ 321 Home Equity 630 15 121 766 61,602 - 62,368 73 Commercial 824 57 4,139 5,020 230,352 2,170 237,542 60 Agricultural 177 167 - 344 56,740 738 57,822 - Construction - - - - 15,011 - 15,011 - Consumer 239 37 49 325 11,209 9 11,543 9 Other commercial loans 143 214 1,010 1,367 55,316 866 57,549 160 Other agricultural loans 9 - - 9 13,648 - 13,657 - State and political subdivision loans - - - - 98,500 - 98,500 - Total $ 2,509 $ 773 $ 6,006 $ 9,288 $ 681,925 $ 3,818 $ 695,031 $ 623 Loans considered non-accrual $ 54 $ 171 $ 5,383 $ 5,608 $ 923 $ - $ 6,531 Loans still accruing 2,455 602 623 3,680 681,002 3,818 688,500 Total $ 2,509 $ 773 $ 6,006 $ 9,288 $ 681,925 $ 3,818 $ 695,031 |
Summary of financing receivables on nonaccrual status | The following table reflects the financing receivables on non-accrual status as of June 30, 2016 and December 31, 2015, respectively. The balances are presented by class of financing receivable (in thousands): June 30, 2016 December 31, 2015 Real estate loans: Mortgages $ 1,279 $ 949 Home Equity 106 59 Commercial 4,711 4,422 Agricultural 29 34 Consumer 39 55 Other commercial loans 4,042 1,012 $ 10,206 $ 6,531 |
Summary of troubled debt restructurings on financing receivables | Loan modifications that are considered TDRs completed during the three and six months ended June 30, 2016 and 2015 were as follows (dollars in thousands): For the Three Months Ended June 30, 2016 Number of contracts Pre-modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Interest Modification Term Modification Interest Modification Term Modification Interest Modification Term Modification Real estate loans: Commercial - 3 $ - 438 $ - 438 Total - 3 $ - $ 438 $ - $ 438 For the Six Months Ended June 30, 2016 Number of contracts Pre-modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Interest Modification Term Modification Interest Modification Term Modification Interest Modification Term Modification Real estate loans: Commercial - 3 $ - 438 $ - 438 Total - 3 $ - $ 438 $ - $ 438 For the Three Months Ended June 30, 2015 Number of contracts Pre-modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Interest Modification Term Modification Interest Modification Term Modification Interest Modification Term Modification Real estate loans: Mortgages - 1 $ - $ 19 $ - $ 19 Total - 1 $ - $ 19 $ - $ 19 For the Six Months Ended June 30, 2015 Number of contracts Pre-modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Interest Modification Term Modification Interest Modification Term Modification Interest Modification Term Modification Real estate loans: Mortgages 1 1 $ 71 $ 19 $ 71 $ 19 Total 1 1 $ 71 $ 19 $ 71 $ 19 |
Allowance for loan losses by impairment method | The following table segregates the allowance for loan losses (ALLL) into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of June 30, 2016 and December 31, 2015, respectively (in thousands): June 30, 2016 December 31, 2015 Individually evaluated for impairment Collectively evaluated for impairment Total Individually evaluated for impairment Collectively evaluated for impairment Total Real estate loans: Residential $ 46 $ 944 $ 990 $ 37 $ 868 $ 905 Commercial and agricultural 126 3,793 3,919 62 3,723 3,785 Construction - 18 18 - 24 24 Consumer - 104 104 - 102 102 Other commercial and agricultural loans 415 1,149 1,564 256 1,049 1,305 State and political subdivision loans - 764 764 - 593 593 Unallocated - - - - 392 392 Total $ 587 $ 6,772 $ 7,359 $ 355 $ 6,751 $ 7,106 |
Roll forward of allowance for loan losses by portfolio segment | The following tables roll forward the balance of the ALLL by portfolio segment for the three and six month periods ended June 30, 2016 and 2015, respectively (in thousands): Balance at March 31, 2016 Charge-offs Recoveries Provision Balance at June 30, 2016 Real estate loans: Residential $ 966 $ (43 ) $ - $ 67 $ 990 Commercial and agricultural 3,938 - 4 (23 ) 3,919 Construction 14 - - 4 18 Consumer 96 (23 ) 29 2 104 Other commercial and agricultural loans 1,347 (18 ) - 235 1,564 State and political - subdivision loans 666 - - 98 764 Unallocated 248 - - (248 ) - Total $ 7,275 $ (84 ) $ 33 $ 135 $ 7,359 Balance at December 31, 2015 Charge-offs Recoveries Provision Balance at June 30, 2016 Real estate loans: Residential $ 905 $ (43 ) $ - $ 128 $ 990 Commercial and agricultural 3,785 - 8 126 3,919 Construction 24 - - (6 ) 18 Consumer 102 (38 ) 68 (28 ) 104 Other commercial and agricultural loans 1,305 (18 ) 6 271 1,564 State and political - subdivision loans 593 - - 171 764 Unallocated 392 - - (392 ) - Total $ 7,106 $ (99 ) $ 82 $ 270 $ 7,359 Balance at March 31, 2015 Charge-offs Recoveries Provision Balance at June 30, 2015 Real estate loans: Residential $ 923 $ (17 ) $ - $ 25 $ 931 Commercial and agricultural 3,699 (56 ) 3 33 3,679 Construction 11 - - 3 14 Consumer 82 (17 ) 4 20 89 Other commercial and agricultural loans 1,286 - - 216 1,502 State and political - subdivision loans 572 - - (4 ) 568 Unallocated 349 - - (173 ) 176 Total $ 6,922 $ (90 ) $ 7 $ 120 $ 6,959 Balance at December 31, 2014 Charge-offs Recoveries Provision Balance at June 30, 2015 Real estate loans: Residential $ 878 $ (34 ) $ - $ 87 $ 931 Commercial and agricultural 3,870 (56 ) 7 (142 ) 3,679 Construction 26 - - (12 ) 14 Consumer 84 (24 ) 12 17 89 Other commercial and agricultural loans 1,224 (1 ) - 279 1,502 State and political - subdivision loans 545 - - 23 568 Unallocated 188 - - (12 ) 176 Total $ 6,815 $ (115 ) $ 19 $ 240 $ 6,959 |
Goodwill and Other Intangible22
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Other Intangible Assets [Abstract] | |
Schedule of gross carrying value and accumulated amortization of intangible assets | The following table provides the gross carrying value and accumulated amortization of intangible assets as of June 30, 2016 and December 31, 2015 (in thousands): June 30, 2016 December 31, 2015 Gross carrying value Accumulated amortization Net carrying value Gross carrying value Accumulated amortization Net carrying value Amortized intangible assets (1): MSRs $ 1,336 $ (728 ) $ 608 $ 1,336 $ (638 ) $ 698 Core deposit intangibles 1,641 (173 ) 1,468 1,641 (25 ) 1,616 Covenant not to compete 125 (18 ) 107 125 (2 ) 123 Total amortized intangible assets $ 3,102 $ (919 ) $ 2,183 $ 3,102 $ (665 ) $ 2,437 Unamortized intangible assets: Goodwill $ 21,089 $ 21,089 (1) Excludes fully amortized intangible assets |
Schedule of future amortization expense for amortized intangible assets | The following table provides the current year and estimated future amortization expense for amortized intangible assets. We based our projections of amortization expense shown below on existing asset balances at June 30, 2016. Future amortization expense may vary from these projections (in thousands): MSRs Core deposit intangibles Covenant not to compete Total Six months ended June 30, 2016 (actual) $ 90 $ 148 $ 16 $ 254 Three months ended June 30, 2016 (actual) $ 44 $ 74 $ 8 $ 126 Estimate for year ended December 31, Remaining 2016 83 148 15 246 2017 142 266 31 439 2018 113 236 31 380 2019 88 206 30 324 2020 66 177 - 243 |
Repurchase Agreements (Tables)
Repurchase Agreements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Repurchase Agreements [Abstract] | |
Remaining contractual maturity of the repurchase agreements | The value of the collateral segmented by the remaining contractual maturity of the repurchase agreements in the Consolidated Balance Sheets as of June 30, 2016 and D ecember 31, 2015 Remaining Contractual Maturity of the Agreements Overnight and Up to Greater than June 30, 2016 Continuous 30 Days 30 - 90 Days 90 days Total Repurchase Agreements: U.S. agency securities $ 18,024 $ - $ - $ 2,129 $ 20,153 Total carrying value of collateral pledged $ 18,024 $ - $ - $ 2,129 $ 20,153 Total liability recognized for repurchase agreements $ 14,761 Remaining Contractual Maturity of the Agreements Overnight and Up to Greater than December 31, 2015 Continuous 30 Days 30 - 90 Days 90 days Total Repurchase Agreements: U.S. agency securities $ 18,144 $ - $ - $ 2,049 $ 20,193 Total carrying value of collateral pledged $ 18,144 $ - $ - $ 2,049 $ 20,193 Total liability recognized for repurchase agreements $ 16,008 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Employee Benefit Plans [Abstract] | |
Components of net periodic benefit costs | The following sets forth the components of net periodic benefit costs of the Pension Plan for the three and six months ended June 30, 2016 and 2015, respectively (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Service cost $ 89 $ 78 $ 179 $ 132 Interest cost 173 90 345 153 Expected return on plan assets (260 ) (172 ) (520 ) (290 ) Net amortization and deferral 60 45 121 76 Net periodic benefit cost $ 62 $ 41 $ 125 $ 71 |
Schedule of restricted stock activity | The following table details the vesting, awarding and forfeiting of restricted shares during the three and six month periods ended June 30, 2016: Three months Six months Weighted Weighted Unvested Average Unvested Average Shares Market Price Shares Market Price Outstanding, beginning of period 8,111 $ 49.96 8,269 $ 49.98 Granted 3,650 47.81 3,650 47.81 Forfeited - - - - Vested (3,158 ) 50.41 (3,316 ) (50.45 ) Outstanding, end of period 8,603 $ 48.88 8,603 $ 48.88 |
Accumulated Comprehensive Inc25
Accumulated Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Accumulated Comprehensive Income [Abstract] | |
Schedule of the significant amounts reclassified out of each component of accumulated other comprehensive income | The following tables present the changes in accumulated other comprehensive income by component net of tax for the three and six months ended June 30, 2016 and 2015 (in thousands): Three months ended June 30, 2016 Unrealized gain (loss) on available for sale securities (a) Defined Benefit Pension Items (a) Total Balance as of March 31, 2016 $ 3,303 $ (2,400 ) $ 903 Other comprehensive income before reclassifications (net of tax) 1,184 - 1,184 Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) (84 ) 39 (45 ) Net current period other comprehensive income 1,100 39 1,139 Balance as of June 30, 2016 $ 4,403 $ (2,361 ) $ 2,042 Six months ended June 30, 2016 Balance as of December 31, 2015 $ 2,204 $ (2,440 ) $ (236 ) Other comprehensive income before reclassifications (net of tax) 2,301 - 2,301 Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) (102 ) 79 (23 ) Net current period other comprehensive income 2,199 79 2,278 Balance as of June 30, 2016 $ 4,403 $ (2,361 ) $ 2,042 Three months ended June 30, 2015 Balance as of March 31, 2015 $ 3,897 $ (2,294 ) $ 1,603 Other comprehensive income (loss) before reclassifications (net of tax) (1,351 ) - (1,351 ) Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) (116 ) 35 (81 ) Net current period other comprehensive income (loss) (1,467 ) 35 (1,432 ) Balance as of June 30, 2015 $ 2,430 $ (2,259 ) $ 171 Six months ended June 30, 2015 Balance as of December 31, 2014 $ 3,093 $ (2,326 ) $ 767 Other comprehensive income (loss) before reclassifications (net of tax) (464 ) - (464 ) Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) (199 ) 67 (132 ) Net current period other comprehensive income (loss) (663 ) 67 (596 ) Balance as of June 30, 2015 $ 2,430 $ (2,259 ) $ 171 (a) Amounts in parentheses indicate debits to the Consolidated Balance Sheet The following table presents the significant amounts reclassified out of each component of accumulated other comprehensive income for the three and six months ended June 30, 2016 and 2015 (in thousands): Details about accumulated other comprehensive income (loss) Amount reclassified from accumulated comprehensive income (loss) (a) Affected line item in the statement where net Income is presented Three Months Ended June 30, 2016 2015 Unrealized gains and losses on available for sale securities $ 128 $ 175 Investment securities gains, net (44 ) (59 ) Provision for income taxes $ 84 $ 116 Net of tax Defined benefit pension items $ (60 ) $ (54 ) Salaries and employee benefits 21 19 Provision for income taxes $ (39 ) $ (35 ) Net of tax Total reclassifications $ 45 $ 81 Six Months Ended June 30, 2016 2015 Unrealized gains and losses on available for sale securities $ 155 $ 301 Investment securities gains, net (53 ) (102 ) Provision for income taxes $ 102 $ 199 Net of tax Defined benefit pension items $ (121 ) $ (102 ) Salaries and employee benefits 42 35 Provision for income taxes $ (79 ) $ (67 ) Net of tax Total reclassifications $ 23 $ 132 (a) Amounts in parentheses indicate expenses and other amounts indicate income on the Consolidated Statement of Income |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Measurements [Abstract] | |
Summary of assets measured at fair value on a recurring basis | The following tables present the assets and liabilities reported on the Consolidated Balance Sheet at their fair value on a recurring basis as of June 30, 2016 and December 31, 2015 by level within the fair value hierarchy (in thousands). Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. June 30, 2016 Level I Level II Level III Total Fair value measurements on a recurring basis: Assets Securities available for sale: U.S. Agency securities $ - $ 205,819 $ - $ 205,819 U.S. Treasury securities 5,053 - - 5,053 Obligations of state and political subdivisions - 104,472 - 104,472 Corporate obligations - 11,480 - 11,480 Mortgage-backed securities in government sponsored entities - 31,606 - 31,606 Equity securities in financial institutions 2,514 - - 2,514 December 31, 2015 Fair value measurements on a recurring basis: Securities available for sale: U.S. Agency securities $ - $ 199,591 $ - $ 199,591 U.S. Treasuries securities 10,082 - - 10,082 Obligations of state and political subdivisions - 102,863 - 102,863 Corporate obligations - 14,565 - 14,565 Mortgage-backed securities in government sponsored entities - 30,204 - 30,204 Equity securities in financial institutions 2,432 - - 2,432 |
Summary of assets measured at fair value on non-recurring basis | Assets measured at fair value on a nonrecurring basis as of June 30, 2016 and December 31, 2015 are included in the table below ( in thousands) June 30, 2016 Level I Level II Level III Total Impaired Loans $ - $ - $ 989 $ 989 Other real estate owned - - 1,007 1,007 December 31, 2015 Impaired Loans $ - $ - $ 894 $ 894 Other real estate owned - - 1,197 1,197 |
Significant unobservable inputs used in fair value measurement process | The following table provides a listing of the significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques (dollars in thousands). Quantitative Information about Level 3 Fair Value Measurements June 30, 2016 Fair Value Valuation Technique(s) Unobservable input Range Weighted average Impaired Loans $ 989 Appraised Collateral Values Discount to appraised value 0-75 % 36.64 % Selling costs 5%-10 % 8.18 % Holding period 0 - 12 months 10 months Other real estate owned 1,007 Appraised Collateral Values Discount to appraised value 0-37 % 24.70 % December 31, 2015 Fair Value Valuation Technique(s) Unobservable input Range Impaired Loans 894 Appraised Collateral Values Discount to appraised value 0-70 % 46.50 % Selling costs 4%-10 % 7.75 % Holding period 0 - 12 months 10 months Other real estate owned 1,197 Appraised Collateral Values Discount to appraised value 0-75 % 25 % |
Fair value of financial instruments | The fair values of the Company's financial instruments are as follows (in thousands): Carrying June 30, 2016 Amount Fair Value Level I Level II Level III Financial assets: Cash and due from banks $ 26,822 $ 26,822 $ 26,822 $ - $ - Interest bearing time deposits with other banks 6,954 6,961 - - 6,961 Available-for-sale securities 360,944 360,944 7,567 353,377 Loans held for sale 1,304 1,304 1,304 Net loans 701,756 726,584 - - 726,584 Bank owned life insurance 25,877 25,877 25,877 - - Regulatory stock 3,407 3,407 3,407 - - Accrued interest receivable 4,176 4,176 4,176 - - Financial liabilities: Deposits $ 1,003,482 $ 1,005,158 $ 734,593 $ - $ 270,565 Borrowed funds 38,786 37,240 - - 37,240 Accrued interest payable 644 644 644 - - Carrying December 31, 2015 Amount Fair Value Level I Level II Level III Financial assets: Cash and due from banks $ 24,384 $ 24,384 $ 24,384 $ - $ - Interest bearing time deposits with other banks 7,696 7,705 - - 7,705 Available-for-sale securities 359,737 359,737 12,514 347,223 - Loans held for sale 603 603 603 Net loans 687,925 712,524 - - 712,524 Bank owned life insurance 25,535 25,535 25,535 - - Regulatory stock 3,459 3,459 3,459 - - Accrued interest receivable 4,211 4,211 4,211 - - Financial liabilities: Deposits $ 988,031 $ 987,542 $ 706,121 $ - $ 281,421 Borrowed funds 41,631 38,863 1,598 - 37,265 Accrued interest payable 734 734 734 - |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings per share basic and diluted [Abstract] | ||||
Net income applicable to common stock | $ 3,031 | $ 3,189 | $ 6,314 | $ 6,309 |
Basic earnings per share computation [Abstract] | ||||
Weighted average common shares outstanding (in shares) | 3,343,254 | 3,052,285 | 3,349,913 | 3,055,569 |
Earnings per share - basic (in dollars per share) | $ 0.91 | $ 1.04 | $ 1.88 | $ 2.06 |
Diluted earnings per share computation [Abstract] | ||||
Weighted average common shares outstanding for basic earnings per share (in shares) | 3,343,254 | 3,052,285 | 3,349,913 | 3,055,569 |
Add: Dilutive effects of restricted stock (in shares) | 409 | 1,064 | 205 | 534 |
Weighted average common shares outstanding for dilutive earnings per share (in shares) | 3,343,663 | 3,053,349 | 3,350,118 | 3,056,103 |
Earnings per share - diluted (in dollars per share) | $ 0.91 | $ 1.04 | $ 1.88 | $ 2.06 |
Restricted Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive restricted stock excluded from net income per share calculations (in shares) | 4,521 | 3,287 | 4,521 | 3,287 |
Restricted Stock [Member] | Minimum [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive stock share price range (in dollars per share) | $ 46.69 | $ 44.50 | $ 46.69 | $ 44.50 |
Restricted Stock [Member] | Maximum [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive stock share price range (in dollars per share) | $ 53.15 | $ 53.15 | $ 53.15 | $ 53.15 |
Income Tax Expense (Details)
Income Tax Expense (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)Partnership | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($)Partnership | |
Income Tax Expense [Abstract] | |||||
Investments in number of partnerships | Partnership | 4 | 4 | |||
Investment amount in partnerships | $ 829,000 | $ 829,000 | $ 959,000 | ||
Investment Tax Credit Carryforward [Member] | |||||
Tax Credit Carryforward [Line Items] | |||||
Investment tax credits | 945,000 | $ 945,000 | |||
Tax credits recognition period | 6 years 4 months 24 days | ||||
Tax credits recognized as reduction of tax expense amount | $ 49,000 | $ 49,000 | $ 99,000 | $ 99,000 |
Investments (Details)
Investments (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016USD ($)Security | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)Security | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Available for Sale Securities Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value [Abstract] | |||||
Amortized Cost | $ 354,272 | $ 354,272 | $ 356,399 | ||
Gross Unrealized Gains | 6,728 | 6,728 | 4,139 | ||
Gross Unrealized Losses | (56) | (56) | (801) | ||
Fair Value | $ 360,944 | $ 360,944 | 359,737 | ||
Number of securities owned with fair value less than cost | Security | 17 | 17 | |||
Available-For-Sale Securities, Fair Value and Gross Unrealized Losses [Abstract] | |||||
Less than Twelve Months, Fair Value | $ 16,678 | $ 16,678 | 156,454 | ||
Twelve Months or Greater, Fair Value | 2,490 | 2,490 | 5,279 | ||
Total, Fair Value | 19,168 | 19,168 | 161,733 | ||
Less than Twelve Months, Gross Unrealized Losses | (37) | (37) | (748) | ||
Twelve Months or Greater, Gross Unrealized Losses | (19) | (19) | (53) | ||
Total, Gross Unrealized Losses | (56) | $ (56) | (801) | ||
Duration securities impaired, minimum | 1 year | ||||
Proceeds from sale of securities available-for-sale | 7,057 | $ 3,770 | $ 12,077 | $ 18,393 | |
Realized investment gains (losses) [Abstract] | |||||
Gross gains | 128 | 175 | 155 | 312 | |
Gross losses | 0 | 0 | 0 | (11) | |
Net gains | 128 | $ 175 | 155 | $ 301 | |
Investment securities pledged as collateral | 221,900 | 221,900 | 203,800 | ||
Available-for-Sale Debt Securities, Amortized Cost [Abstract] | |||||
Due in one year or less | 41,555 | 41,555 | |||
Due after one year through five years | 190,450 | 190,450 | |||
Due after five years through ten years | 41,023 | 41,023 | |||
Due after ten years | 79,243 | 79,243 | |||
Total | 352,271 | 352,271 | |||
Available-for-Sale Debt Securities, Fair Value [Abstract] | |||||
Due in one year or less | 41,758 | 41,758 | |||
Due after one year through five years | 193,673 | 193,673 | |||
Due after five years through ten years | 42,092 | 42,092 | |||
Due after ten years | 80,907 | 80,907 | |||
Total | 358,430 | 358,430 | |||
U.S. Agency Securities [Member] | |||||
Available for Sale Securities Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value [Abstract] | |||||
Amortized Cost | 203,461 | 203,461 | 199,749 | ||
Gross Unrealized Gains | 2,359 | 2,359 | 369 | ||
Gross Unrealized Losses | (1) | (1) | (527) | ||
Fair Value | 205,819 | 205,819 | 199,591 | ||
Available-For-Sale Securities, Fair Value and Gross Unrealized Losses [Abstract] | |||||
Less than Twelve Months, Fair Value | 8,509 | 8,509 | 123,591 | ||
Twelve Months or Greater, Fair Value | 0 | 0 | 0 | ||
Total, Fair Value | 8,509 | 8,509 | 123,591 | ||
Less than Twelve Months, Gross Unrealized Losses | (1) | (1) | (527) | ||
Twelve Months or Greater, Gross Unrealized Losses | 0 | 0 | 0 | ||
Total, Gross Unrealized Losses | (1) | (1) | (527) | ||
U.S. Treasury Securities [Member] | |||||
Available for Sale Securities Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value [Abstract] | |||||
Amortized Cost | 5,046 | 5,046 | 10,103 | ||
Gross Unrealized Gains | 7 | 7 | 0 | ||
Gross Unrealized Losses | 0 | 0 | (21) | ||
Fair Value | 5,053 | 5,053 | 10,082 | ||
Available-For-Sale Securities, Fair Value and Gross Unrealized Losses [Abstract] | |||||
Less than Twelve Months, Fair Value | 10,082 | ||||
Twelve Months or Greater, Fair Value | 0 | ||||
Total, Fair Value | 10,082 | ||||
Less than Twelve Months, Gross Unrealized Losses | (21) | ||||
Twelve Months or Greater, Gross Unrealized Losses | 0 | ||||
Total, Gross Unrealized Losses | (21) | ||||
Obligations of State and Political Subdivisions [Member] | |||||
Available for Sale Securities Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value [Abstract] | |||||
Amortized Cost | 101,144 | 101,144 | 99,856 | ||
Gross Unrealized Gains | 3,338 | 3,338 | 3,080 | ||
Gross Unrealized Losses | (10) | (10) | (73) | ||
Fair Value | 104,472 | 104,472 | 102,863 | ||
Available-For-Sale Securities, Fair Value and Gross Unrealized Losses [Abstract] | |||||
Less than Twelve Months, Fair Value | 4,342 | 4,342 | 7,023 | ||
Twelve Months or Greater, Fair Value | 503 | 503 | 2,914 | ||
Total, Fair Value | 4,845 | 4,845 | 9,937 | ||
Less than Twelve Months, Gross Unrealized Losses | (9) | (9) | (57) | ||
Twelve Months or Greater, Gross Unrealized Losses | (1) | (1) | (16) | ||
Total, Gross Unrealized Losses | (10) | (10) | (73) | ||
Corporate Obligations [Member] | |||||
Available for Sale Securities Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value [Abstract] | |||||
Amortized Cost | 11,430 | 11,430 | 14,583 | ||
Gross Unrealized Gains | 50 | 50 | 68 | ||
Gross Unrealized Losses | 0 | 0 | (86) | ||
Fair Value | 11,480 | 11,480 | 14,565 | ||
Available-For-Sale Securities, Fair Value and Gross Unrealized Losses [Abstract] | |||||
Less than Twelve Months, Fair Value | 5,822 | ||||
Twelve Months or Greater, Fair Value | 2,138 | ||||
Total, Fair Value | 7,960 | ||||
Less than Twelve Months, Gross Unrealized Losses | (61) | ||||
Twelve Months or Greater, Gross Unrealized Losses | (25) | ||||
Total, Gross Unrealized Losses | (86) | ||||
Mortgage-backed Securities in Government Sponsored Entities [Member] | |||||
Available for Sale Securities Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value [Abstract] | |||||
Amortized Cost | 31,190 | 31,190 | 30,107 | ||
Gross Unrealized Gains | 456 | 456 | 186 | ||
Gross Unrealized Losses | (40) | (40) | (89) | ||
Fair Value | 31,606 | 31,606 | 30,204 | ||
Available-For-Sale Securities, Fair Value and Gross Unrealized Losses [Abstract] | |||||
Less than Twelve Months, Fair Value | 3,716 | 3,716 | 9,830 | ||
Twelve Months or Greater, Fair Value | 1,987 | 1,987 | 227 | ||
Total, Fair Value | 5,703 | 5,703 | 10,057 | ||
Less than Twelve Months, Gross Unrealized Losses | (22) | (22) | (77) | ||
Twelve Months or Greater, Gross Unrealized Losses | (18) | (18) | (12) | ||
Total, Gross Unrealized Losses | (40) | (40) | (89) | ||
Equity Securities in Financial Institutions [Member] | |||||
Available for Sale Securities Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value [Abstract] | |||||
Amortized Cost | 2,001 | 2,001 | 2,001 | ||
Gross Unrealized Gains | 518 | 518 | 436 | ||
Gross Unrealized Losses | (5) | (5) | (5) | ||
Fair Value | 2,514 | 2,514 | 2,432 | ||
Available-For-Sale Securities, Fair Value and Gross Unrealized Losses [Abstract] | |||||
Less than Twelve Months, Fair Value | 111 | 111 | 106 | ||
Twelve Months or Greater, Fair Value | 0 | 0 | 0 | ||
Total, Fair Value | 111 | 111 | 106 | ||
Less than Twelve Months, Gross Unrealized Losses | (5) | (5) | (5) | ||
Twelve Months or Greater, Gross Unrealized Losses | 0 | 0 | 0 | ||
Total, Gross Unrealized Losses | $ (5) | $ (5) | $ (5) |
Loans (Details)
Loans (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 11, 2015 | |
Segments of loan portfolio and allowance for loan losses [Abstract] | |||||||
Total financing receivables | $ 709,115,000 | $ 695,031,000 | |||||
Individually evaluated for impairment | 12,604,000 | 12,284,000 | |||||
Loans acquired with deteriorated credit quality | 3,669,000 | 3,818,000 | |||||
Collectively evaluated for impairment | 692,842,000 | 678,929,000 | |||||
Allowance for loan losses | 7,359,000 | 7,106,000 | |||||
Allowance for loan losses related to individually evaluated for impairment | 587,000 | 355,000 | |||||
Allowance for loan losses related to loans acquired with deteriorated credit quality | 0 | 0 | |||||
Allowance for loan losses related to collectively evaluated for impairment | 6,772,000 | 6,751,000 | |||||
Net loans | 701,756,000 | 687,925,000 | |||||
Net loans, individually evaluated for impairment | 12,017,000 | 11,929,000 | |||||
Net loans, loans acquired with deteriorated credit quality | 3,669,000 | 3,818,000 | |||||
Net loans, collectively evaluated for impairment | 686,070,000 | 672,178,000 | |||||
Summary of allowance for loan losses into amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment [Abstract] | |||||||
Individually evaluated for impairment | 587,000 | 355,000 | |||||
Collectively evaluated for impairment | 6,772,000 | 6,751,000 | |||||
Total | $ 7,359,000 | $ 6,922,000 | $ 7,359,000 | $ 6,815,000 | 7,359,000 | 7,106,000 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||
Balance at beginning of period | 7,275,000 | 6,922,000 | 7,106,000 | 6,815,000 | |||
Charge-offs | (84,000) | (90,000) | (99,000) | (115,000) | |||
Recoveries | 33,000 | 7,000 | 82,000 | 19,000 | |||
Provision | 135,000 | 120,000 | 270,000 | 240,000 | |||
Balance at end of period | 7,359,000 | 6,959,000 | $ 7,359,000 | 6,959,000 | |||
Minimum [Member] | |||||||
Segments of loan portfolio and allowance for loan losses [Abstract] | |||||||
Number of days past for loan to be considered impaired, Minimum | 90 days | ||||||
First Mortgage [Member] | Minimum [Member] | |||||||
Segments of loan portfolio and allowance for loan losses [Abstract] | |||||||
Period of mortgage on real estate | 15 years | ||||||
First Mortgage [Member] | Maximum [Member] | |||||||
Segments of loan portfolio and allowance for loan losses [Abstract] | |||||||
Period of mortgage on real estate | 30 years | ||||||
Second Mortgage [Member] | Maximum [Member] | |||||||
Segments of loan portfolio and allowance for loan losses [Abstract] | |||||||
Period of mortgage on real estate | 15 years | ||||||
Residential Real Estate Loans [Member] | |||||||
Segments of loan portfolio and allowance for loan losses [Abstract] | |||||||
Total financing receivables | 203,980,000 | 203,407,000 | |||||
Individually evaluated for impairment | 518,000 | 304,000 | |||||
Loans acquired with deteriorated credit quality | 34,000 | 35,000 | |||||
Collectively evaluated for impairment | 203,428,000 | 203,068,000 | |||||
Summary of allowance for loan losses into amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment [Abstract] | |||||||
Individually evaluated for impairment | 46,000 | 37,000 | |||||
Collectively evaluated for impairment | 944,000 | 868,000 | |||||
Total | 990,000 | 923,000 | $ 990,000 | 878,000 | 990,000 | 905,000 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||
Balance at beginning of period | 966,000 | 923,000 | 905,000 | 878,000 | |||
Charge-offs | (43,000) | (17,000) | (43,000) | (34,000) | |||
Recoveries | 0 | 0 | 0 | 0 | |||
Provision | 67,000 | 25,000 | 128,000 | 87,000 | |||
Balance at end of period | 990,000 | 931,000 | 990,000 | 931,000 | |||
Commercial and Agricultural Real Estate Loans [Member] | |||||||
Segments of loan portfolio and allowance for loan losses [Abstract] | |||||||
Total financing receivables | 309,287,000 | 295,364,000 | |||||
Individually evaluated for impairment | 6,404,000 | 6,235,000 | |||||
Loans acquired with deteriorated credit quality | 2,753,000 | 2,908,000 | |||||
Collectively evaluated for impairment | 300,130,000 | 286,221,000 | |||||
Summary of allowance for loan losses into amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment [Abstract] | |||||||
Individually evaluated for impairment | 126,000 | 62,000 | |||||
Collectively evaluated for impairment | 3,793,000 | 3,723,000 | |||||
Total | 3,919,000 | 3,699,000 | 3,785,000 | 3,870,000 | 3,919,000 | 3,785,000 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||
Balance at beginning of period | 3,938,000 | 3,699,000 | 3,785,000 | 3,870,000 | |||
Charge-offs | 0 | (56,000) | 0 | (56,000) | |||
Recoveries | 4,000 | 3,000 | 8,000 | 7,000 | |||
Provision | (23,000) | 33,000 | 126,000 | (142,000) | |||
Balance at end of period | 3,919,000 | 3,679,000 | 3,919,000 | 3,679,000 | |||
Construction Real Estate Loans [Member] | |||||||
Segments of loan portfolio and allowance for loan losses [Abstract] | |||||||
Total financing receivables | 10,481,000 | 15,011,000 | |||||
Individually evaluated for impairment | 0 | 0 | |||||
Loans acquired with deteriorated credit quality | 0 | 0 | |||||
Collectively evaluated for impairment | 10,481,000 | 15,011,000 | |||||
Summary of allowance for loan losses into amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment [Abstract] | |||||||
Individually evaluated for impairment | 0 | 0 | |||||
Collectively evaluated for impairment | 18,000 | 24,000 | |||||
Total | 18,000 | 11,000 | 24,000 | 26,000 | 18,000 | 24,000 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||
Balance at beginning of period | 14,000 | 11,000 | 24,000 | 26,000 | |||
Charge-offs | 0 | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | 0 | |||
Provision | 4,000 | 3,000 | (6,000) | (12,000) | |||
Balance at end of period | 18,000 | 14,000 | 18,000 | 14,000 | |||
Consumer [Member] | |||||||
Segments of loan portfolio and allowance for loan losses [Abstract] | |||||||
Total financing receivables | 11,439,000 | 11,543,000 | |||||
Individually evaluated for impairment | 0 | 0 | |||||
Loans acquired with deteriorated credit quality | 6,000 | 9,000 | |||||
Collectively evaluated for impairment | 11,433,000 | 11,534,000 | |||||
Summary of allowance for loan losses into amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment [Abstract] | |||||||
Individually evaluated for impairment | 0 | 0 | |||||
Collectively evaluated for impairment | 104,000 | 102,000 | |||||
Total | 104,000 | 82,000 | 104,000 | 84,000 | 104,000 | 102,000 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||
Balance at beginning of period | 96,000 | 82,000 | 102,000 | 84,000 | |||
Charge-offs | (23,000) | (17,000) | (38,000) | (24,000) | |||
Recoveries | 29,000 | 4,000 | 68,000 | 12,000 | |||
Provision | 2,000 | 20,000 | (28,000) | 17,000 | |||
Balance at end of period | 104,000 | 89,000 | 104,000 | 89,000 | |||
Other Commercial and Agricultural Loans [Member] | |||||||
Segments of loan portfolio and allowance for loan losses [Abstract] | |||||||
Total financing receivables | 74,089,000 | 71,206,000 | |||||
Individually evaluated for impairment | 5,682,000 | 5,745,000 | |||||
Loans acquired with deteriorated credit quality | 876,000 | 866,000 | |||||
Collectively evaluated for impairment | 67,531,000 | 64,595,000 | |||||
Summary of allowance for loan losses into amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment [Abstract] | |||||||
Individually evaluated for impairment | 415,000 | 256,000 | |||||
Collectively evaluated for impairment | 1,149,000 | 1,049,000 | |||||
Total | 1,564,000 | 1,286,000 | 1,564,000 | 1,224,000 | 1,564,000 | 1,305,000 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||
Balance at beginning of period | 1,347,000 | 1,286,000 | 1,305,000 | 1,224,000 | |||
Charge-offs | (18,000) | 0 | (18,000) | (1,000) | |||
Recoveries | 0 | 0 | 6,000 | 0 | |||
Provision | 235,000 | 216,000 | 271,000 | 279,000 | |||
Balance at end of period | 1,564,000 | 1,502,000 | 1,564,000 | 1,502,000 | |||
State and Political Subdivision Loans [Member] | |||||||
Segments of loan portfolio and allowance for loan losses [Abstract] | |||||||
Total financing receivables | 99,839,000 | 98,500,000 | |||||
Individually evaluated for impairment | 0 | 0 | |||||
Loans acquired with deteriorated credit quality | 0 | 0 | |||||
Collectively evaluated for impairment | 99,839,000 | 98,500,000 | |||||
Summary of allowance for loan losses into amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment [Abstract] | |||||||
Individually evaluated for impairment | 0 | 0 | |||||
Collectively evaluated for impairment | 764,000 | 593,000 | |||||
Total | 764,000 | 572,000 | 764,000 | 545,000 | 764,000 | 593,000 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||
Balance at beginning of period | 666,000 | 572,000 | 593,000 | 545,000 | |||
Charge-offs | 0 | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | 0 | |||
Provision | 98,000 | (4,000) | 171,000 | 23,000 | |||
Balance at end of period | 764,000 | 568,000 | 764,000 | 568,000 | |||
Unallocated [Member] | |||||||
Summary of allowance for loan losses into amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment [Abstract] | |||||||
Individually evaluated for impairment | 0 | 0 | |||||
Collectively evaluated for impairment | 0 | 392,000 | |||||
Total | 0 | 349,000 | 0 | 188,000 | 0 | 392,000 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||
Balance at beginning of period | 248,000 | 349,000 | 392,000 | 188,000 | |||
Charge-offs | 0 | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | 0 | |||
Provision | (248,000) | (173,000) | (392,000) | (12,000) | |||
Balance at end of period | 0 | $ 176,000 | 0 | $ 176,000 | |||
First National Bank of Fredericksburg [Member] | |||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | |||||||
Unpaid principal balance amount | $ 6,969,000 | ||||||
Estimated fair value | 3,809,000 | ||||||
Contractually required principal and interest at acquisition | 9,913,000 | ||||||
Expected cash flows | 4,474,000 | ||||||
Non-accretable discount | 5,439,000 | ||||||
Accretable discount | 551,000 | 637,000 | 464,000 | 637,000 | $ 665,000 | ||
Changes in the accretable yield for purchased credit-impaired loans [Roll Forward] | |||||||
Balance at beginning of period | 551,000 | 637,000 | |||||
Accretion | (87,000) | (173,000) | |||||
Balance at end of period | $ 464,000 | $ 464,000 | |||||
Loans acquired with specific evidence of deterioration in credit quality [Abstract] | |||||||
Outstanding balance | 6,616,000 | 6,950,000 | |||||
Carrying amount | $ 3,669,000 | $ 3,818,000 |
Loans, Impaired Financing Recei
Loans, Impaired Financing Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Impaired Financing Receivable [Abstract] | |||||
Unpaid Principal Balance | $ 15,435 | $ 15,435 | $ 14,803 | ||
Recorded Investment With No Allowance | 10,874 | 10,874 | 10,882 | ||
Recorded Investment With Allowance | 1,730 | 1,730 | 1,402 | ||
Total Recorded Investment | 12,604 | 12,604 | 12,284 | ||
Related Allowance | 587 | 587 | 355 | ||
Average Recorded Investment | 12,879 | $ 8,691 | 12,838 | $ 8,878 | |
Interest Income Recognized | 105 | 46 | 205 | 87 | |
Interest Income Recognized Cash Basis | 2 | 7 | 3 | 8 | |
Real Estate Loans [Member] | Mortgages [Member] | |||||
Impaired Financing Receivable [Abstract] | |||||
Unpaid Principal Balance | 502 | 502 | 281 | ||
Recorded Investment With No Allowance | 114 | 114 | 114 | ||
Recorded Investment With Allowance | 345 | 345 | 129 | ||
Total Recorded Investment | 459 | 459 | 243 | ||
Related Allowance | 35 | 35 | 26 | ||
Average Recorded Investment | 460 | 259 | 425 | 224 | |
Interest Income Recognized | 5 | 2 | 9 | 4 | |
Interest Income Recognized Cash Basis | 0 | 5 | 0 | 5 | |
Real Estate Loans [Member] | Home Equity [Member] | |||||
Impaired Financing Receivable [Abstract] | |||||
Unpaid Principal Balance | 59 | 59 | 61 | ||
Recorded Investment With No Allowance | 0 | 0 | 0 | ||
Recorded Investment With Allowance | 59 | 59 | 61 | ||
Total Recorded Investment | 59 | 59 | 61 | ||
Related Allowance | 11 | 11 | 11 | ||
Average Recorded Investment | 59 | 103 | 60 | 114 | |
Interest Income Recognized | 1 | 1 | 2 | 2 | |
Interest Income Recognized Cash Basis | 0 | 0 | 0 | 0 | |
Real Estate Loans [Member] | Commercial [Member] | |||||
Impaired Financing Receivable [Abstract] | |||||
Unpaid Principal Balance | 8,888 | 8,888 | 8,654 | ||
Recorded Investment With No Allowance | 5,944 | 5,944 | 5,843 | ||
Recorded Investment With Allowance | 295 | 295 | 225 | ||
Total Recorded Investment | 6,239 | 6,239 | 6,068 | ||
Related Allowance | 126 | 126 | 62 | ||
Average Recorded Investment | 6,158 | 5,700 | 6,142 | 5,862 | |
Interest Income Recognized | 26 | 19 | 52 | 32 | |
Interest Income Recognized Cash Basis | 0 | 0 | 0 | 0 | |
Real Estate Loans [Member] | Agricultural [Member] | |||||
Impaired Financing Receivable [Abstract] | |||||
Unpaid Principal Balance | 165 | 165 | 167 | ||
Recorded Investment With No Allowance | 165 | 165 | 167 | ||
Recorded Investment With Allowance | 0 | 0 | 0 | ||
Total Recorded Investment | 165 | 165 | 167 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 165 | 0 | 165 | 0 | |
Interest Income Recognized | 3 | 0 | 5 | 0 | |
Interest Income Recognized Cash Basis | 0 | 0 | 0 | 0 | |
Real Estate Loans [Member] | Construction [Member] | |||||
Impaired Financing Receivable [Abstract] | |||||
Unpaid Principal Balance | 0 | 0 | 0 | ||
Recorded Investment With No Allowance | 0 | 0 | 0 | ||
Recorded Investment With Allowance | 0 | 0 | 0 | ||
Total Recorded Investment | 0 | 0 | 0 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 0 | 0 | 0 | 0 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | |
Interest Income Recognized Cash Basis | 0 | 0 | 0 | 0 | |
Consumer [Member] | |||||
Impaired Financing Receivable [Abstract] | |||||
Unpaid Principal Balance | 0 | 0 | 0 | ||
Recorded Investment With No Allowance | 0 | 0 | 0 | ||
Recorded Investment With Allowance | 0 | 0 | 0 | ||
Total Recorded Investment | 0 | 0 | 0 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 0 | 0 | 0 | 0 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | |
Interest Income Recognized Cash Basis | 0 | 0 | 0 | 0 | |
Other Commercial Loans [Member] | |||||
Impaired Financing Receivable [Abstract] | |||||
Unpaid Principal Balance | 5,717 | 5,717 | 5,535 | ||
Recorded Investment With No Allowance | 4,547 | 4,547 | 4,653 | ||
Recorded Investment With Allowance | 1,031 | 1,031 | 987 | ||
Total Recorded Investment | 5,578 | 5,578 | 5,640 | ||
Related Allowance | 415 | 415 | 256 | ||
Average Recorded Investment | 5,933 | 2,629 | 5,942 | 2,678 | |
Interest Income Recognized | 68 | 24 | 134 | 49 | |
Interest Income Recognized Cash Basis | 2 | 2 | 3 | 3 | |
Other Agricultural Loans [Member] | |||||
Impaired Financing Receivable [Abstract] | |||||
Unpaid Principal Balance | 104 | 104 | 105 | ||
Recorded Investment With No Allowance | 104 | 104 | 105 | ||
Recorded Investment With Allowance | 0 | 0 | 0 | ||
Total Recorded Investment | 104 | 104 | 105 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 104 | 0 | 104 | 0 | |
Interest Income Recognized | 2 | 0 | 3 | 0 | |
Interest Income Recognized Cash Basis | 0 | 0 | 0 | 0 | |
State and Political Subdivision Loans [Member] | |||||
Impaired Financing Receivable [Abstract] | |||||
Unpaid Principal Balance | 0 | 0 | 0 | ||
Recorded Investment With No Allowance | 0 | 0 | 0 | ||
Recorded Investment With Allowance | 0 | 0 | 0 | ||
Total Recorded Investment | 0 | 0 | 0 | ||
Related Allowance | 0 | 0 | $ 0 | ||
Average Recorded Investment | 0 | 0 | 0 | 0 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | |
Interest Income Recognized Cash Basis | $ 0 | $ 0 | $ 0 | $ 0 |
Loans, Credit Quality Indicator
Loans, Credit Quality Indicator (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Financing Receivable by credit exposure [Abstract] | ||
Total | $ 215,419,000 | $ 214,950,000 |
Minimum [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Percentage of dollar volume of commercial loan portfolio to be reviewed | 55.00% | |
Amount over which all new loans to be reviewed | $ 1,000,000 | |
Amount over which all relationships to be reviewed | 1,000,000 | |
Amount which is 30 days past due to be reviewed for all aggregate loan relationships | 750,000 | |
Real Estate Loans [Member] | Commercial [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 246,895,000 | 237,542,000 |
Real Estate Loans [Member] | Agricultural [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 62,392,000 | 57,822,000 |
Real Estate Loans [Member] | Construction [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 10,481,000 | 15,011,000 |
Real Estate Loans [Member] | Mortgages [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 144,141,000 | 141,039,000 |
Real Estate Loans [Member] | Home Equity [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 59,839,000 | 62,368,000 |
Consumer [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 11,439,000 | 11,543,000 |
Other Commercial Loans [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 55,686,000 | 57,549,000 |
Other Agricultural Loans [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 18,403,000 | 13,657,000 |
State and Political Subdivision Loans [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 99,839,000 | 98,500,000 |
Pass [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 447,071,000 | 448,776,000 |
Pass [Member] | Real Estate Loans [Member] | Commercial [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 228,452,000 | 217,544,000 |
Pass [Member] | Real Estate Loans [Member] | Agricultural [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 53,701,000 | 53,695,000 |
Pass [Member] | Real Estate Loans [Member] | Construction [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 10,481,000 | 14,422,000 |
Pass [Member] | Other Commercial Loans [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 48,344,000 | 51,297,000 |
Pass [Member] | Other Agricultural Loans [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 14,454,000 | 13,318,000 |
Pass [Member] | State and Political Subdivision Loans [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 91,639,000 | 98,500,000 |
Special Mention [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 22,238,000 | 8,284,000 |
Special Mention [Member] | Real Estate Loans [Member] | Commercial [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 3,619,000 | 4,150,000 |
Special Mention [Member] | Real Estate Loans [Member] | Agricultural [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 5,951,000 | 2,865,000 |
Special Mention [Member] | Real Estate Loans [Member] | Construction [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 0 | 589,000 |
Special Mention [Member] | Other Commercial Loans [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 2,148,000 | 446,000 |
Special Mention [Member] | Other Agricultural Loans [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 2,320,000 | 234,000 |
Special Mention [Member] | State and Political Subdivision Loans [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 8,200,000 | 0 |
Substandard [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 24,226,000 | 22,852,000 |
Substandard [Member] | Real Estate Loans [Member] | Commercial [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 14,796,000 | 15,816,000 |
Substandard [Member] | Real Estate Loans [Member] | Agricultural [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 2,740,000 | 1,262,000 |
Substandard [Member] | Real Estate Loans [Member] | Construction [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 0 | 0 |
Substandard [Member] | Other Commercial Loans [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 5,061,000 | 5,669,000 |
Substandard [Member] | Other Agricultural Loans [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 1,629,000 | 105,000 |
Substandard [Member] | State and Political Subdivision Loans [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 0 | 0 |
Doubtful [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 161,000 | 169,000 |
Doubtful [Member] | Real Estate Loans [Member] | Commercial [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 28,000 | 32,000 |
Doubtful [Member] | Real Estate Loans [Member] | Agricultural [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 0 | 0 |
Doubtful [Member] | Real Estate Loans [Member] | Construction [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 0 | 0 |
Doubtful [Member] | Other Commercial Loans [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 133,000 | 137,000 |
Doubtful [Member] | Other Agricultural Loans [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 0 | 0 |
Doubtful [Member] | State and Political Subdivision Loans [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 0 | 0 |
Loss [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 0 | 0 |
Loss [Member] | Real Estate Loans [Member] | Commercial [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 0 | 0 |
Loss [Member] | Real Estate Loans [Member] | Agricultural [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 0 | 0 |
Loss [Member] | Real Estate Loans [Member] | Construction [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 0 | 0 |
Loss [Member] | Other Commercial Loans [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 0 | 0 |
Loss [Member] | Other Agricultural Loans [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 0 | 0 |
Loss [Member] | State and Political Subdivision Loans [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 0 | 0 |
Internally Assigned Grade [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 493,696,000 | 480,081,000 |
Performing [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 213,727,000 | 213,440,000 |
Performing [Member] | Real Estate Loans [Member] | Mortgages [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 142,633,000 | 139,734,000 |
Performing [Member] | Real Estate Loans [Member] | Home Equity [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 59,709,000 | 62,236,000 |
Performing [Member] | Consumer [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 11,385,000 | 11,470,000 |
Nonperforming [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 1,652,000 | 1,466,000 |
Nonperforming [Member] | Real Estate Loans [Member] | Mortgages [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 1,474,000 | 1,270,000 |
Nonperforming [Member] | Real Estate Loans [Member] | Home Equity [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 130,000 | 132,000 |
Nonperforming [Member] | Consumer [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 48,000 | 64,000 |
PCI [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 40,000 | 44,000 |
PCI [Member] | Real Estate Loans [Member] | Mortgages [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 34,000 | 35,000 |
PCI [Member] | Real Estate Loans [Member] | Home Equity [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 0 | 0 |
PCI [Member] | Consumer [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | $ 6,000 | $ 9,000 |
Loans, Past Due (Details)
Loans, Past Due (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Recorded investment of past due [Abstract] | ||
Total Past Due | $ 14,320 | $ 9,288 |
Current | 691,126 | 681,925 |
PCI | 3,669 | 3,818 |
Total financing receivables | 709,115 | 695,031 |
90 Days or Greater and Accruing | 1,104 | 623 |
Financing receivables on nonaccrual status [Abstract] | ||
Total Past Due And Non-accrual | 9,285 | 5,608 |
Current And Non-accrual | 921 | 923 |
PCI Loans considered non accrual | 0 | 0 |
Financing receivable nonaccrual status | 10,206 | 6,531 |
Financing receivables on accrual status [Abstract] | ||
Total Past Due And Still Accruing | 5,035 | 3,680 |
Current And Still Accruing | 690,205 | 681,002 |
PCI Loans still accruing | 3,669 | 3,818 |
Total Financing Receivables And Still Accruing | $ 698,909 | 688,500 |
Minimum [Member] | ||
Financing receivables on nonaccrual status [Abstract] | ||
Period of past due after which loans considered as non accrual | 90 days | |
30 to 59 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total Past Due | $ 3,756 | 2,509 |
Financing receivables on nonaccrual status [Abstract] | ||
Total Past Due And Non-accrual | 373 | 54 |
Financing receivables on accrual status [Abstract] | ||
Total Past Due And Still Accruing | 3,383 | 2,455 |
60 to 89 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total Past Due | 4,307 | 773 |
Financing receivables on nonaccrual status [Abstract] | ||
Total Past Due And Non-accrual | 3,759 | 171 |
Financing receivables on accrual status [Abstract] | ||
Total Past Due And Still Accruing | 548 | 602 |
90 Days Or Greater [Member] | ||
Recorded investment of past due [Abstract] | ||
Total Past Due | 6,257 | 6,006 |
Financing receivables on nonaccrual status [Abstract] | ||
Total Past Due And Non-accrual | 5,153 | 5,383 |
Financing receivables on accrual status [Abstract] | ||
Total Past Due And Still Accruing | 1,104 | 623 |
Real Estate Loans [Member] | Mortgages [Member] | ||
Recorded investment of past due [Abstract] | ||
Total Past Due | 2,293 | 1,457 |
Current | 141,814 | 139,547 |
PCI | 34 | 35 |
Total financing receivables | 144,141 | 141,039 |
90 Days or Greater and Accruing | 195 | 321 |
Financing receivables on nonaccrual status [Abstract] | ||
Financing receivable nonaccrual status | 1,279 | 949 |
Real Estate Loans [Member] | Mortgages [Member] | 30 to 59 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total Past Due | 1,564 | 487 |
Real Estate Loans [Member] | Mortgages [Member] | 60 to 89 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total Past Due | 25 | 283 |
Real Estate Loans [Member] | Mortgages [Member] | 90 Days Or Greater [Member] | ||
Recorded investment of past due [Abstract] | ||
Total Past Due | 704 | 687 |
Real Estate Loans [Member] | Home Equity [Member] | ||
Recorded investment of past due [Abstract] | ||
Total Past Due | 629 | 766 |
Current | 59,210 | 61,602 |
PCI | 0 | 0 |
Total financing receivables | 59,839 | 62,368 |
90 Days or Greater and Accruing | 24 | 73 |
Financing receivables on nonaccrual status [Abstract] | ||
Financing receivable nonaccrual status | 106 | 59 |
Real Estate Loans [Member] | Home Equity [Member] | 30 to 59 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total Past Due | 478 | 630 |
Real Estate Loans [Member] | Home Equity [Member] | 60 to 89 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total Past Due | 74 | 15 |
Real Estate Loans [Member] | Home Equity [Member] | 90 Days Or Greater [Member] | ||
Recorded investment of past due [Abstract] | ||
Total Past Due | 77 | 121 |
Real Estate Loans [Member] | Commercial [Member] | ||
Recorded investment of past due [Abstract] | ||
Total Past Due | 6,362 | 5,020 |
Current | 238,517 | 230,352 |
PCI | 2,016 | 2,170 |
Total financing receivables | 246,895 | 237,542 |
90 Days or Greater and Accruing | 461 | 60 |
Financing receivables on nonaccrual status [Abstract] | ||
Financing receivable nonaccrual status | 4,711 | 4,422 |
Real Estate Loans [Member] | Commercial [Member] | 30 to 59 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total Past Due | 1,257 | 824 |
Real Estate Loans [Member] | Commercial [Member] | 60 to 89 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total Past Due | 958 | 57 |
Real Estate Loans [Member] | Commercial [Member] | 90 Days Or Greater [Member] | ||
Recorded investment of past due [Abstract] | ||
Total Past Due | 4,147 | 4,139 |
Real Estate Loans [Member] | Agricultural [Member] | ||
Recorded investment of past due [Abstract] | ||
Total Past Due | 389 | 344 |
Current | 61,266 | 56,740 |
PCI | 737 | 738 |
Total financing receivables | 62,392 | 57,822 |
90 Days or Greater and Accruing | 165 | 0 |
Financing receivables on nonaccrual status [Abstract] | ||
Financing receivable nonaccrual status | 29 | 34 |
Real Estate Loans [Member] | Agricultural [Member] | 30 to 59 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total Past Due | 166 | 177 |
Real Estate Loans [Member] | Agricultural [Member] | 60 to 89 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total Past Due | 58 | 167 |
Real Estate Loans [Member] | Agricultural [Member] | 90 Days Or Greater [Member] | ||
Recorded investment of past due [Abstract] | ||
Total Past Due | 165 | 0 |
Real Estate Loans [Member] | Construction [Member] | ||
Recorded investment of past due [Abstract] | ||
Total Past Due | 0 | 0 |
Current | 10,481 | 15,011 |
PCI | 0 | 0 |
Total financing receivables | 10,481 | 15,011 |
90 Days or Greater and Accruing | 0 | 0 |
Real Estate Loans [Member] | Construction [Member] | 30 to 59 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total Past Due | 0 | 0 |
Real Estate Loans [Member] | Construction [Member] | 60 to 89 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total Past Due | 0 | 0 |
Real Estate Loans [Member] | Construction [Member] | 90 Days Or Greater [Member] | ||
Recorded investment of past due [Abstract] | ||
Total Past Due | 0 | 0 |
Consumer [Member] | ||
Recorded investment of past due [Abstract] | ||
Total Past Due | 297 | 325 |
Current | 11,136 | 11,209 |
PCI | 6 | 9 |
Total financing receivables | 11,439 | 11,543 |
90 Days or Greater and Accruing | 9 | 9 |
Financing receivables on nonaccrual status [Abstract] | ||
Financing receivable nonaccrual status | 39 | 55 |
Consumer [Member] | 30 to 59 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total Past Due | 210 | 239 |
Consumer [Member] | 60 to 89 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total Past Due | 39 | 37 |
Consumer [Member] | 90 Days Or Greater [Member] | ||
Recorded investment of past due [Abstract] | ||
Total Past Due | 48 | 49 |
Other Commercial Loans [Member] | ||
Recorded investment of past due [Abstract] | ||
Total Past Due | 4,089 | 1,367 |
Current | 50,721 | 55,316 |
PCI | 876 | 866 |
Total financing receivables | 55,686 | 57,549 |
90 Days or Greater and Accruing | 146 | 160 |
Financing receivables on nonaccrual status [Abstract] | ||
Financing receivable nonaccrual status | 4,042 | 1,012 |
Other Commercial Loans [Member] | 30 to 59 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total Past Due | 15 | 143 |
Other Commercial Loans [Member] | 60 to 89 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total Past Due | 3,062 | 214 |
Other Commercial Loans [Member] | 90 Days Or Greater [Member] | ||
Recorded investment of past due [Abstract] | ||
Total Past Due | 1,012 | 1,010 |
Other Agricultural Loans [Member] | ||
Recorded investment of past due [Abstract] | ||
Total Past Due | 261 | 9 |
Current | 18,142 | 13,648 |
PCI | 0 | 0 |
Total financing receivables | 18,403 | 13,657 |
90 Days or Greater and Accruing | 104 | 0 |
Other Agricultural Loans [Member] | 30 to 59 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total Past Due | 66 | 9 |
Other Agricultural Loans [Member] | 60 to 89 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total Past Due | 91 | 0 |
Other Agricultural Loans [Member] | 90 Days Or Greater [Member] | ||
Recorded investment of past due [Abstract] | ||
Total Past Due | 104 | 0 |
State and Political Subdivision Loans [Member] | ||
Recorded investment of past due [Abstract] | ||
Total Past Due | 0 | 0 |
Current | 99,839 | 98,500 |
PCI | 0 | 0 |
Total financing receivables | 99,839 | 98,500 |
90 Days or Greater and Accruing | 0 | 0 |
State and Political Subdivision Loans [Member] | 30 to 59 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total Past Due | 0 | 0 |
State and Political Subdivision Loans [Member] | 60 to 89 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total Past Due | 0 | 0 |
State and Political Subdivision Loans [Member] | 90 Days Or Greater [Member] | ||
Recorded investment of past due [Abstract] | ||
Total Past Due | $ 0 | $ 0 |
Loans, Trouble Debt Restructuri
Loans, Trouble Debt Restructuring (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016USD ($)Contract | Jun. 30, 2015USD ($)Contract | Jun. 30, 2016USD ($)Contract | Jun. 30, 2015USD ($)Contract | Dec. 31, 2015USD ($) | |
Loans [Abstract] | |||||
Reserves of allowance for loan losses | $ 33,000 | $ 33,000 | $ 37,000 | ||
Financing receivable modifications [Abstract] | |||||
Number of contract, subsequently defaults | Contract | 0 | 0 | 0 | 0 | |
Foreclosed assets held for sale [Abstract] | |||||
Foreclosed assets held for sale | $ 1,558,000 | $ 1,558,000 | $ 1,354,000 | ||
Interest Modification [Member] | |||||
Financing receivable modifications [Abstract] | |||||
Number of contracts | Contract | 0 | 0 | 0 | 1 | |
Pre-modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 71,000 | |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 71,000 | |
Term Modification [Member] | |||||
Financing receivable modifications [Abstract] | |||||
Number of contracts | Contract | 3 | 1 | 3 | 1 | |
Pre-modification Outstanding Recorded Investment | $ 438,000 | $ 19,000 | $ 438,000 | $ 19,000 | |
Post-Modification Outstanding Recorded Investment | $ 438,000 | $ 19,000 | $ 438,000 | $ 19,000 | |
Real Estate Loans [Member] | Mortgages [Member] | Interest Modification [Member] | |||||
Financing receivable modifications [Abstract] | |||||
Number of contracts | Contract | 0 | 1 | |||
Pre-modification Outstanding Recorded Investment | $ 0 | $ 71,000 | |||
Post-Modification Outstanding Recorded Investment | $ 0 | $ 71,000 | |||
Real Estate Loans [Member] | Mortgages [Member] | Term Modification [Member] | |||||
Financing receivable modifications [Abstract] | |||||
Number of contracts | Contract | 1 | 1 | |||
Pre-modification Outstanding Recorded Investment | $ 19,000 | $ 19,000 | |||
Post-Modification Outstanding Recorded Investment | $ 19,000 | $ 19,000 | |||
Real Estate Loans [Member] | Commercial [Member] | Interest Modification [Member] | |||||
Financing receivable modifications [Abstract] | |||||
Number of contracts | Contract | 0 | 0 | |||
Pre-modification Outstanding Recorded Investment | $ 0 | $ 0 | |||
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 | |||
Real Estate Loans [Member] | Commercial [Member] | Term Modification [Member] | |||||
Financing receivable modifications [Abstract] | |||||
Number of contracts | Contract | 3 | 3 | |||
Pre-modification Outstanding Recorded Investment | $ 438,000 | $ 438,000 | |||
Post-Modification Outstanding Recorded Investment | 438,000 | 438,000 | |||
Consumer Residential Mortgages [Member] | |||||
Foreclosed assets held for sale [Abstract] | |||||
Foreclosed assets held for sale | 453,000 | 453,000 | |||
Formal foreclosure proceedings on potential foreclosure assets | $ 1,424,000 | $ 1,424,000 |
Goodwill and Other Intangible35
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | ||
Amortized intangible assets [Abstract] | ||||
Gross carrying value | [1] | $ 3,102 | $ 3,102 | $ 3,102 |
Accumulated amortization | [1] | (919) | (919) | (665) |
Net carrying value | [1] | 2,183 | 2,183 | 2,437 |
Unamortized intangible assets [Abstract] | ||||
Goodwill | 21,089 | 21,089 | 21,089 | |
Actual and Estimated Future Amortization Expense [Abstract] | ||||
Amortization expense | 126 | 254 | ||
Estimated Amortization Expense [Abstract] | ||||
Remaining 2,016 | 246 | 246 | ||
2,017 | 439 | 439 | ||
2,018 | 380 | 380 | ||
2,019 | 324 | 324 | ||
2,020 | 243 | 243 | ||
MSRs [Member] | ||||
Amortized intangible assets [Abstract] | ||||
Gross carrying value | [1] | 1,336 | 1,336 | 1,336 |
Accumulated amortization | [1] | (728) | (728) | (638) |
Net carrying value | [1] | 608 | 608 | 698 |
Actual and Estimated Future Amortization Expense [Abstract] | ||||
Amortization expense | 44 | 90 | ||
Estimated Amortization Expense [Abstract] | ||||
Remaining 2,016 | 83 | 83 | ||
2,017 | 142 | 142 | ||
2,018 | 113 | 113 | ||
2,019 | 88 | 88 | ||
2,020 | 66 | 66 | ||
Core Deposit Intangibles [Member] | ||||
Amortized intangible assets [Abstract] | ||||
Gross carrying value | [1] | 1,641 | 1,641 | 1,641 |
Accumulated amortization | [1] | (173) | (173) | (25) |
Net carrying value | [1] | 1,468 | 1,468 | 1,616 |
Actual and Estimated Future Amortization Expense [Abstract] | ||||
Amortization expense | 74 | 148 | ||
Estimated Amortization Expense [Abstract] | ||||
Remaining 2,016 | 148 | 148 | ||
2,017 | 266 | 266 | ||
2,018 | 236 | 236 | ||
2,019 | 206 | 206 | ||
2,020 | 177 | 177 | ||
Covenant not to Compete [Member] | ||||
Amortized intangible assets [Abstract] | ||||
Gross carrying value | [1] | 125 | 125 | 125 |
Accumulated amortization | [1] | (18) | (18) | (2) |
Net carrying value | [1] | 107 | 107 | $ 123 |
Actual and Estimated Future Amortization Expense [Abstract] | ||||
Amortization expense | 8 | 16 | ||
Estimated Amortization Expense [Abstract] | ||||
Remaining 2,016 | 15 | 15 | ||
2,017 | 31 | 31 | ||
2,018 | 31 | 31 | ||
2,019 | 30 | 30 | ||
2,020 | $ 0 | $ 0 | ||
[1] | Excludes fully amortized intangible assets |
Federal Home Loan Bank Stock (D
Federal Home Loan Bank Stock (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Federal Home Loan Bank Stock [Abstract] | ||
Federal home loan bank stock | $ 2,643,000 | $ 2,800,000 |
FHLB Stock, at par value (in dollars per share) | $ 100 |
Repurchase Agreements (Details)
Repurchase Agreements (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total carrying value of collateral pledged | $ 20,153 | $ 20,193 |
Total liability recognized for repurchase agreements | 14,761 | 16,008 |
U.S. Agency Securities [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total carrying value of collateral pledged | 20,153 | 20,193 |
Overnight and Continuous [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total carrying value of collateral pledged | 18,024 | 18,144 |
Overnight and Continuous [Member] | U.S. Agency Securities [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total carrying value of collateral pledged | 18,024 | 18,144 |
Up to 30 Days [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total carrying value of collateral pledged | 0 | 0 |
Up to 30 Days [Member] | U.S. Agency Securities [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total carrying value of collateral pledged | 0 | 0 |
30 - 90 Days [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total carrying value of collateral pledged | 0 | 0 |
30 - 90 Days [Member] | U.S. Agency Securities [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total carrying value of collateral pledged | 0 | 0 |
Greater than 90 Days [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total carrying value of collateral pledged | 2,129 | 2,049 |
Greater than 90 Days [Member] | U.S. Agency Securities [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total carrying value of collateral pledged | $ 2,129 | $ 2,049 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016USD ($)$ / sharesshares | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)Plan$ / sharesshares | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Employee Benefit Plans [Abstract] | |||||
Number of plans | Plan | 2 | ||||
Defined Contribution Plan [Abstract] | |||||
Employer contribution to 401 (k) defined contribution plan | $ 97,000 | $ 93,000 | $ 180,000 | $ 155,000 | |
Directors [Member] | |||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||||
Deferred compensation liability | 929,000 | 929,000 | $ 958,000 | ||
Deferred interest expense | 4,000 | 5,000 | 8,000 | 12,000 | |
Pension Plan [Member] | |||||
Components of net periodic benefit cost [Abstract] | |||||
Service cost | 89,000 | 78,000 | 179,000 | 132,000 | |
Interest cost | 173,000 | 90,000 | 345,000 | 153,000 | |
Expected return on plan assets | (260,000) | (172,000) | (520,000) | (290,000) | |
Net amortization and deferral | 60,000 | 45,000 | 121,000 | 76,000 | |
Net periodic benefit cost | 62,000 | 41,000 | 125,000 | 71,000 | |
Defined Benefit Plans Other Disclosure [Abstract] | |||||
Employer contribution to pension plan | 700,000 | ||||
Supplemental Executive Retirement Plans [Member] | |||||
Defined Benefit Plans Other Disclosure [Abstract] | |||||
Obligation included in other liabilities | 1,400,000 | 1,400,000 | 1,339,000 | ||
Cost recognized | 31,000 | 36,000 | 61,000 | 71,000 | |
Continuation of Life Insurance Plan [Member] | |||||
Defined Benefit Plans Other Disclosure [Abstract] | |||||
Obligation included in other liabilities | 574,000 | 574,000 | 574,000 | ||
Salary Continuation Plan [Member] | |||||
Defined Benefit Plans Other Disclosure [Abstract] | |||||
Obligation included in other liabilities | 716,000 | 716,000 | $ 710,000 | ||
Cost recognized | $ 16,000 | $ 32,000 | |||
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized (in shares) | shares | 150,000 | 150,000 | |||
Number of shares available for grant (in shares) | shares | 146,350 | 146,350 | |||
Restricted stock activity [Roll Forward] | |||||
Outstanding, beginning of period (in shares) | shares | 8,111 | 8,269 | |||
Granted (in shares) | shares | 3,650 | 3,650 | |||
Forfeited (in shares) | shares | 0 | 0 | |||
Vested (in shares) | shares | (3,158) | (3,316) | |||
Outstanding, end of period (in shares) | shares | 8,603 | 8,603 | |||
Weighted average market price [Roll Forward] | |||||
Outstanding, beginning of period (in dollars per share) | $ / shares | $ 49.96 | $ 49.98 | |||
Granted (in dollars per share) | $ / shares | 47.81 | 47.81 | |||
Forfeited (in dollars per share) | $ / shares | 0 | 0 | |||
Vested (in dollars per share) | $ / shares | 50.41 | (50.45) | |||
Outstanding, end of period (in dollars per share) | $ / shares | $ 48.88 | $ 48.88 | |||
Additional General Disclosures [Abstract] | |||||
Share-based compensation expense | $ 45,000 | $ 43,000 | $ 92,000 | $ 85,000 | |
Compensation cost related to nonvested awards that has not yet been recognized | $ 421,000 | $ 421,000 | |||
Period over which compensation cost is expected to be recognized | 2 years 9 months |
Accumulated Comprehensive Inc39
Accumulated Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning Balance | $ 119,760 | ||||
Other comprehensive income (loss) before reclassifications (net of tax) | $ 1,184 | $ (1,351) | 2,301 | $ (464) | |
Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) | (45) | (81) | (23) | (132) | |
Other comprehensive income (loss), net of tax | 1,139 | (1,432) | 2,278 | (596) | |
Ending Balance | 124,456 | 124,456 | |||
Accumulated Other Comprehensive Income [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning Balance | 903 | 1,603 | (236) | 767 | |
Ending Balance | 2,042 | 171 | 2,042 | 171 | |
Unrealized Gains (Loss) on Available for Sale Securities [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning Balance | [1] | 3,303 | 3,897 | 2,204 | 3,093 |
Other comprehensive income (loss) before reclassifications (net of tax) | [1] | 1,184 | (1,351) | 2,301 | (464) |
Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) | [1] | (84) | (116) | (102) | (199) |
Other comprehensive income (loss), net of tax | [1] | 1,100 | (1,467) | 2,199 | (663) |
Ending Balance | [1] | 4,403 | 2,430 | 4,403 | 2,430 |
Defined Benefit Pension Items [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning Balance | [1] | (2,400) | (2,294) | (2,440) | (2,326) |
Other comprehensive income (loss) before reclassifications (net of tax) | [1] | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) | [1] | 39 | 35 | 79 | 67 |
Other comprehensive income (loss), net of tax | [1] | 39 | 35 | 79 | 67 |
Ending Balance | [1] | $ (2,361) | $ (2,259) | $ (2,361) | $ (2,259) |
[1] | Amounts in parentheses indicate debits to the Consolidated Balance Sheet |
Accumulated Comprehensive Inc40
Accumulated Comprehensive Income, Reclassification (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Investment securities gains, net | $ 128 | $ 175 | $ 155 | $ 301 | |
Provision for income taxes | (687) | (779) | (1,478) | (1,519) | |
Salaries and employee benefits | (3,900) | (2,993) | (7,782) | (6,049) | |
NET INCOME | 3,031 | 3,189 | 6,314 | 6,309 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
NET INCOME | [1] | 45 | 81 | 23 | 132 |
Unrealized Gains (Loss) on Available for Sale Securities [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Investment securities gains, net | [1] | 128 | 175 | 155 | 301 |
Provision for income taxes | [1] | (44) | (59) | (53) | (102) |
NET INCOME | [1] | 84 | 116 | 102 | 199 |
Defined Benefit Pension Items [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Provision for income taxes | [1] | 21 | 19 | 42 | 35 |
Salaries and employee benefits | [1] | (60) | (54) | (121) | (102) |
NET INCOME | [1] | $ (39) | $ (35) | $ (79) | $ (67) |
[1] | Amounts in parentheses indicate expenses and other amounts indicate income on the consolidated statement of income. |
Fair Value Measurements, Measur
Fair Value Measurements, Measured On A Recurring And Nonrecurring Basis (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Fair value assets and liabilities measured on non-recurring basis [Abstract] | ||
Impaired loans, estimated selling cost | $ 126,000 | $ 91,000 |
Recurring [Member] | ||
Securities available for sale [Abstract] | ||
U.S. Agency securities | 205,819,000 | 199,591,000 |
U.S. Treasuries securities | 5,053,000 | 10,082,000 |
Obligations of state and political subdivisions | 104,472,000 | 102,863,000 |
Corporate obligations | 11,480,000 | 14,565,000 |
Mortgage-backed securities in government sponsored entities | 31,606,000 | 30,204,000 |
Equity securities in financial institutions | 2,514,000 | 2,432,000 |
Recurring [Member] | Level I [Member] | ||
Securities available for sale [Abstract] | ||
U.S. Agency securities | 0 | 0 |
U.S. Treasuries securities | 5,053,000 | 10,082,000 |
Obligations of state and political subdivisions | 0 | 0 |
Corporate obligations | 0 | 0 |
Mortgage-backed securities in government sponsored entities | 0 | 0 |
Equity securities in financial institutions | 2,514,000 | 2,432,000 |
Recurring [Member] | Level II [Member] | ||
Securities available for sale [Abstract] | ||
U.S. Agency securities | 205,819,000 | 199,591,000 |
U.S. Treasuries securities | 0 | 0 |
Obligations of state and political subdivisions | 104,472,000 | 102,863,000 |
Corporate obligations | 11,480,000 | 14,565,000 |
Mortgage-backed securities in government sponsored entities | 31,606,000 | 30,204,000 |
Equity securities in financial institutions | 0 | 0 |
Recurring [Member] | Level III [Member] | ||
Securities available for sale [Abstract] | ||
U.S. Agency securities | 0 | 0 |
U.S. Treasuries securities | 0 | 0 |
Obligations of state and political subdivisions | 0 | 0 |
Corporate obligations | 0 | 0 |
Mortgage-backed securities in government sponsored entities | 0 | 0 |
Equity securities in financial institutions | 0 | 0 |
Nonrecurring [Member] | ||
Fair value assets and liabilities measured on non-recurring basis [Abstract] | ||
Impaired Loans | 989,000 | 894,000 |
Other real estate owned | 1,007,000 | 1,197,000 |
Nonrecurring [Member] | Level I [Member] | ||
Fair value assets and liabilities measured on non-recurring basis [Abstract] | ||
Impaired Loans | 0 | 0 |
Other real estate owned | 0 | 0 |
Nonrecurring [Member] | Level II [Member] | ||
Fair value assets and liabilities measured on non-recurring basis [Abstract] | ||
Impaired Loans | 0 | 0 |
Other real estate owned | 0 | 0 |
Nonrecurring [Member] | Level III [Member] | ||
Fair value assets and liabilities measured on non-recurring basis [Abstract] | ||
Impaired Loans | 989,000 | 894,000 |
Other real estate owned | $ 1,007,000 | $ 1,197,000 |
Fair Value Measurements, Quanti
Fair Value Measurements, Quantitative Information (Details) - Appraised Collateral Values [Member] - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Impaired Loans [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 989 | $ 894 |
Valuation Technique(s) | Appraised Collateral Values | Appraised Collateral Values |
Impaired Loans [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount to appraised value | 0.00% | 0.00% |
Selling costs | 5.00% | 4.00% |
Holding period | 0 months | 0 months |
Impaired Loans [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount to appraised value | 75.00% | 70.00% |
Selling costs | 10.00% | 10.00% |
Holding period | 12 months | 12 months |
Impaired Loans [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount to appraised value | 36.64% | 46.50% |
Selling costs | 8.18% | 7.75% |
Holding period | 10 months | 10 months |
Other Real Estate Owned [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 1,007 | $ 1,197 |
Valuation Technique(s) | Appraised Collateral Values | Appraised Collateral Values |
Other Real Estate Owned [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount to appraised value | 0.00% | 0.00% |
Other Real Estate Owned [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount to appraised value | 37.00% | 75.00% |
Other Real Estate Owned [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount to appraised value | 24.70% | 25.00% |
Fair Value Measurements, By Bal
Fair Value Measurements, By Balance Sheet Grouping (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Financial assets [Abstract] | ||
Interest bearing time deposits with other banks | $ 6,954 | $ 7,696 |
Available-for-sale securities | $ 360,944 | 359,737 |
Financial liabilities [Abstract] | ||
Consideration period for recognition of cash and due from banks | 90 days | |
Consideration period for recognition of accrued interest receivable and payable | 90 days | |
Level I [Member] | ||
Financial assets [Abstract] | ||
Cash and due from banks | $ 26,822 | 24,384 |
Interest bearing time deposits with other banks | 0 | 0 |
Available-for-sale securities | 7,567 | 12,514 |
Loans held for sale | 1,304 | 603 |
Net loans | 0 | 0 |
Bank owned life insurance | 25,877 | 25,535 |
Regulatory stock | 3,407 | 3,459 |
Accrued interest receivable | 4,176 | 4,211 |
Financial liabilities [Abstract] | ||
Deposits | 734,593 | 706,121 |
Borrowed funds | 0 | 1,598 |
Accrued interest payable | 644 | 734 |
Level II [Member] | ||
Financial assets [Abstract] | ||
Cash and due from banks | 0 | 0 |
Interest bearing time deposits with other banks | 0 | 0 |
Available-for-sale securities | 353,377 | 347,223 |
Net loans | 0 | 0 |
Bank owned life insurance | 0 | 0 |
Regulatory stock | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities [Abstract] | ||
Deposits | 0 | 0 |
Borrowed funds | 0 | 0 |
Accrued interest payable | 0 | 0 |
Level III [Member] | ||
Financial assets [Abstract] | ||
Cash and due from banks | 0 | 0 |
Interest bearing time deposits with other banks | 6,961 | 7,705 |
Available-for-sale securities | 0 | |
Net loans | 726,584 | 712,524 |
Bank owned life insurance | 0 | 0 |
Regulatory stock | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities [Abstract] | ||
Deposits | 270,565 | 281,421 |
Borrowed funds | 37,240 | 37,265 |
Accrued interest payable | 0 | |
Carrying Amount [Member] | ||
Financial assets [Abstract] | ||
Cash and due from banks | 26,822 | 24,384 |
Interest bearing time deposits with other banks | 6,954 | 7,696 |
Available-for-sale securities | 360,944 | 359,737 |
Loans held for sale | 1,304 | 603 |
Net loans | 701,756 | 687,925 |
Bank owned life insurance | 25,877 | 25,535 |
Regulatory stock | 3,407 | 3,459 |
Accrued interest receivable | 4,176 | 4,211 |
Financial liabilities [Abstract] | ||
Deposits | 1,003,482 | 988,031 |
Borrowed funds | 38,786 | 41,631 |
Accrued interest payable | 644 | 734 |
Fair Value [Member] | ||
Financial assets [Abstract] | ||
Cash and due from banks | 26,822 | 24,384 |
Interest bearing time deposits with other banks | 6,961 | 7,705 |
Available-for-sale securities | 360,944 | 359,737 |
Loans held for sale | 1,304 | 603 |
Net loans | 726,584 | 712,524 |
Bank owned life insurance | 25,877 | 25,535 |
Regulatory stock | 3,407 | 3,459 |
Accrued interest receivable | 4,176 | 4,211 |
Financial liabilities [Abstract] | ||
Deposits | 1,005,158 | 987,542 |
Borrowed funds | 37,240 | 38,863 |
Accrued interest payable | $ 644 | $ 734 |