Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 01, 2017 | |
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 | 3,493,270 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 |
CONSOLIDATED BALANCE SHEET (UNA
CONSOLIDATED BALANCE SHEET (UNAUDITED) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Cash and due from banks: | ||
Noninterest-bearing | $ 18,298 | $ 16,854 |
Interest-bearing | 1,064 | 900 |
Total cash and cash equivalents | 19,362 | 17,754 |
Interest bearing time deposits with other banks | 8,791 | 6,955 |
Available-for-sale securities | 275,208 | 314,017 |
Loans held for sale | 393 | 1,827 |
Loans (net of allowance for loan losses: 2017, $9,979 and 2016, $8,886) | 878,070 | 790,725 |
Premises and equipment | 16,771 | 17,030 |
Accrued interest receivable | 3,697 | 4,089 |
Goodwill | 21,089 | 21,089 |
Bank owned life insurance | 26,556 | 26,223 |
Other intangibles | 1,945 | 2,096 |
Other investment sale receivable | 0 | 7,759 |
Other assets | 12,974 | 13,454 |
TOTAL ASSETS | 1,264,856 | 1,223,018 |
Deposits: | ||
Noninterest-bearing | 156,374 | 147,425 |
Interest-bearing | 894,835 | 858,078 |
Total deposits | 1,051,209 | 1,005,503 |
Borrowed funds | 69,998 | 79,662 |
Accrued interest payable | 628 | 720 |
Other liabilities | 15,251 | 13,865 |
TOTAL LIABILITIES | 1,137,086 | 1,099,750 |
STOCKHOLDERS' EQUITY: | ||
Preferred Stock $1.00 par value; authorized 3,000,000 shares at June 30, 2017 and December 31, 2016; none issued in 2017 or 2016 | 0 | 0 |
Common stock $1.00 par value; authorized 15,000,000 shares; issued 3,869,939 at June 30, 2017 and 3,704,375 at December 31, 2016 | 3,870 | 3,704 |
Additional paid-in capital | 51,085 | 42,250 |
Retained earnings | 86,170 | 91,278 |
Accumulated other comprehensive loss | (969) | (1,392) |
Treasury stock, at cost: 380,775 shares at June 30, 2017 and 384,671 shares at December 31, 2016 | (12,386) | (12,572) |
TOTAL STOCKHOLDERS' EQUITY | 127,770 | 123,268 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,264,856 | $ 1,223,018 |
CONSOLIDATED BALANCE SHEET (UN3
CONSOLIDATED BALANCE SHEET (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
ASSETS: | ||
Loans, allowance for loan losses | $ 9,979 | $ 8,886 |
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) | 3,869,939 | 3,704,375 |
Treasury stock, shares (in shares) | 380,775 | 384,671 |
CONSOLIDATED STATEMENT OF INCOM
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
INTEREST INCOME: | ||||
Interest and fees on loans | $ 10,304 | $ 8,587 | $ 20,021 | $ 17,183 |
Interest-bearing deposits with banks | 45 | 64 | 80 | 135 |
Investment securities: | ||||
Taxable | 775 | 959 | 1,579 | 1,903 |
Nontaxable | 601 | 755 | 1,269 | 1,526 |
Dividends | 53 | 61 | 129 | 141 |
TOTAL INTEREST INCOME | 11,778 | 10,426 | 23,078 | 20,888 |
INTEREST EXPENSE: | ||||
Deposits | 1,143 | 1,072 | 2,188 | 2,146 |
Borrowed funds | 231 | 183 | 489 | 366 |
TOTAL INTEREST EXPENSE | 1,374 | 1,255 | 2,677 | 2,512 |
NET INTEREST INCOME | 10,404 | 9,171 | 20,401 | 18,376 |
Provision for loan losses | 625 | 135 | 1,240 | 270 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 9,779 | 9,036 | 19,161 | 18,106 |
NON-INTEREST INCOME: | ||||
Service charges | 1,120 | 1,128 | 2,178 | 2,230 |
Trust | 188 | 182 | 409 | 378 |
Brokerage and insurance | 114 | 158 | 305 | 367 |
Gains on loans sold | 148 | 70 | 249 | 116 |
Investment securities gains, net | 23 | 128 | 195 | 155 |
Earnings on bank owned life insurance | 167 | 172 | 333 | 342 |
Other | 128 | 145 | 254 | 311 |
TOTAL NON-INTEREST INCOME | 1,888 | 1,983 | 3,923 | 3,899 |
NON-INTEREST EXPENSES: | ||||
Salaries and employee benefits | 4,324 | 3,900 | 8,643 | 7,782 |
Occupancy | 477 | 455 | 1,004 | 900 |
Furniture and equipment | 146 | 171 | 285 | 328 |
Professional fees | 258 | 266 | 568 | 553 |
FDIC insurance | 95 | 160 | 200 | 317 |
Pennsylvania shares tax | 243 | 240 | 524 | 390 |
Amortization of intangibles | 73 | 82 | 149 | 164 |
ORE expenses | 82 | 212 | 172 | 305 |
Other | 1,468 | 1,815 | 2,812 | 3,474 |
TOTAL NON-INTEREST EXPENSES | 7,166 | 7,301 | 14,357 | 14,213 |
Income before provision for income taxes | 4,501 | 3,718 | 8,727 | 7,792 |
Provision for income taxes | 1,033 | 687 | 1,956 | 1,478 |
NET INCOME | $ 3,468 | $ 3,031 | $ 6,771 | $ 6,314 |
PER COMMON SHARE DATA: | ||||
Net Income - Basic (in dollars per share) | $ 1 | $ 0.86 | $ 1.95 | $ 1.80 |
Net Income - Diluted (in dollars per share) | 1 | 0.86 | 1.95 | 1.80 |
Cash Dividends Paid (in dollars per share) | $ 0.405 | $ 0.392 | $ 0.810 | $ 0.783 |
Number of shares used in computation - basic (in shares) | 3,480,122 | 3,508,818 | 3,479,653 | 3,515,477 |
Number of shares used in computation - diluted (in shares) | 3,481,310 | 3,509,227 | 3,480,263 | 3,515,682 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) [Abstract] | ||||
Net income | $ 3,468 | $ 3,031 | $ 6,771 | $ 6,314 |
Other comprehensive income: | ||||
Unrealized gains on available for sale securities | 654 | 1,794 | 724 | 3,489 |
Income tax effect | (222) | (610) | (246) | (1,188) |
Change in unrecognized pension cost | 52 | 60 | 112 | 121 |
Income tax effect | (17) | (21) | (38) | (42) |
Less: Reclassification adjustment for investment security gains included in net income | (23) | (128) | (195) | (155) |
Income tax effect | 8 | 44 | 66 | 53 |
Other comprehensive income, net of tax | 452 | 1,139 | 423 | 2,278 |
Comprehensive income | $ 3,920 | $ 4,170 | $ 7,194 | $ 8,592 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 6,771 | $ 6,314 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 1,240 | 270 |
Provision for off-balance sheet items | 0 | 30 |
Depreciation and amortization | 199 | 175 |
Amortization and accretion of investment securities | 735 | 1,148 |
Deferred income taxes | (105) | 81 |
Investment securities and interest bearing time deposit gains, net | (195) | (155) |
Earnings on bank owned life insurance | (333) | (342) |
Originations of loans held for sale | (10,247) | (8,580) |
Proceeds from sales of loans held for sale | 11,840 | 7,995 |
Realized gains on loans sold | (249) | (116) |
Increase in accrued interest receivable | 392 | 35 |
Decrease in accrued interest payable | (92) | (90) |
Other, net | (166) | (519) |
Net cash provided by operating activities | 9,790 | 6,246 |
Available-for-sale securities: | ||
Proceeds from sales | 25,407 | 12,077 |
Proceeds from maturity and principal repayments | 36,510 | 21,561 |
Purchase of securities | (13,829) | (32,507) |
Purchase of interest bearing time deposits with other banks | (4,069) | 0 |
Proceeds from matured interest bearing time deposits with other banks | 496 | 744 |
Proceeds from sale of interest bearing time deposits with other banks | 1,745 | 0 |
Proceeds from redemption of regulatory stock | 4,303 | 184 |
Purchase of regulatory stock | (3,487) | (132) |
Net increase in loans | (88,468) | (14,135) |
Purchase of premises and equipment | (131) | (398) |
Proceeds from sale of foreclosed assets held for sale | 237 | 374 |
Net cash used in investing activities | (41,286) | (12,232) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net increase in deposits | 45,706 | 15,451 |
Proceeds from long-term borrowings | 5 | 539 |
Repayments of long-term borrowings | 0 | (534) |
Net decrease in short-term borrowed funds | (9,669) | (2,850) |
Purchase of treasury and restricted stock | (509) | (1,482) |
Dividends paid | (2,429) | (2,700) |
Net cash provided by financing activities | 33,104 | 8,424 |
Net increase in cash and cash equivalents | 1,608 | 2,438 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 17,754 | 24,384 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 19,362 | 26,822 |
Supplemental Disclosures of Cash Flow Information: | ||
Interest paid | 2,769 | 2,602 |
Income taxes paid | 2,075 | 1,400 |
Loans transferred to foreclosed property | 335 | 519 |
Investments purchased and not settled | $ 1,541 | $ 0 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2017 | |
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 and the holding company of its wholly owned subsidiary, First Citizens Community Bank (the "Bank"), and of the Bank's wholly owned subsidiary, First Citizens Insurance Agency, Inc. ("First Citizens Insurance"). 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, 2017 and for the periods ended June 30, 2017 and 2016 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, 2017 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, 2016. |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 2016 2017 2016 Net income applicable to common stock $ 3,468,000 $ 3,031,000 $ 6,771,000 $ 6,314,000 Basic earnings per share computation Weighted average common shares outstanding 3,480,122 3,508,818 3,479,653 3,515,477 Earnings per share - basic $ 1.00 $ 0.86 $ 1.95 $ 1.80 Diluted earnings per share computation Weighted average common shares outstanding for basic earnings per share 3,480,122 3,508,818 3,479,653 3,515,477 Add: Dilutive effects of restricted stock 1,188 409 610 205 Weighted average common shares outstanding for dilutive earnings per share 3,481,310 3,509,227 3,480,263 3,515,682 Earnings per share - diluted $ 1.00 $ 0.86 $ 1.95 $ 1.80 For the three months ended June 30, 2017 and 2016, there were 1,562 and 4,521 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 per share prices ranging from $49.87-$53.15 for the three month period ended June 30, 2017 and per share prices ranging from $46.69-$53.15 for the three month period ended June 30, 2016. For the six months ended June 30, 2017 and 2016, 4,921 and 4,521 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 $47.81-$53.15 for the six month period ended June 30, 2017 and prices ranging from $46.69-$53.15 for the six month period ended June 30, 2016. |
Income Tax Expense
Income Tax Expense | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 and December 31, 2016, 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 $631,000 and $700,000 as of June 30, 2017 and December 31, 2016, respectively. Investments purchased prior to January 1, 2015, are accounted for utilizing the effective yield method. As of June 30, 2017, the Company had $775,000 of tax credits remaining that will be recognized over 5.50 years. Tax credits of $35,000 and $49,000 were recognized as a reduction of tax expense during the three months ended Jun 30, 2017 and 2016, respectively. For the six months ended June 30, 2017 and 2016, tax credits of $70,000 and $99,000, respectively, were recognized as a reduction of tax expense. Amortization of the investment included in other expenses on the Consolidated Statement of Income was $40,000 and $64,000 during the three months ended June 30, 2017 and 2016, respectively. Amortization of the investment included in other expenses on the Consolidated Statement of Income was $80,000 and $129,000 during the six months ended June 30, 2017 and 2016, respectively. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2017 | |
Investments [Abstract] | |
Investments | Note 4 – Investments The amortized cost, gross unrealized gains and losses, and fair value of investment securities at June 30, 2017 and December 31, 2016 were as follows (in thousands): Gross Gross Amortized Unrealized Unrealized Fair June 30, 2017 Cost Gains Losses Value Available-for-sale securities: U.S. agency securities $ 142,581 $ 315 $ (146 ) $ 142,750 Obligations of state and political subdivisions 84,731 1,578 (93 ) 86,216 Corporate obligations 3,000 111 - 3,111 Mortgage-backed securities in government sponsored entities 41,489 147 (176 ) 41,460 Equity securities in financial institutions 900 771 - 1,671 Total available-for-sale securities $ 272,701 $ 2,922 $ (415 ) $ 275,208 December 31, 2016 Available-for-sale securities: U.S. agency securities $ 170,276 $ 407 $ (269 ) $ 170,414 U.S. treasury securities 2,999 1 - 3,000 Obligations of state and political subdivisions 95,956 1,463 (493 ) 96,926 Corporate obligations 3,000 50 - 3,050 Mortgage-backed securities in government sponsored entities 37,987 88 (347 ) 37,728 Equity securities in financial institutions 1,821 1,078 - 2,899 Total available-for-sale securities $ 312,039 $ 3,087 $ (1,109 ) $ 314,017 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, 2017 and December 31, 2016 (in thousands). As of June 30, 2017, the Company owned 63 securities whose fair value was less than their cost basis. Less than Twelve Months Twelve Months or Greater Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized June 30, 2017 Value Losses Value Losses Value Losses U.S. agency securities $ 53,010 $ (142 ) $ 995 $ (4 ) $ 54,005 $ (146 ) Obligations of state and political subdivisions 7,811 (40 ) 5,171 (53 ) 12,982 (93 ) Mortgage-backed securities in government sponsored entities 18,873 (149 ) 1,377 (27 ) 20,250 (176 ) Total securities $ 79,694 $ (331 ) $ 7,543 $ (84 ) $ 87,237 $ (415 ) December 31, 2016 U.S. agency securities $ 50,947 $ (269 ) $ - $ - $ 50,947 $ (269 ) Obligations of states and political subdivisions 28,398 (472 ) 767 (21 ) 29,165 (493 ) Mortgage-backed securities in government sponsored entities 26,717 (330 ) 753 (17 ) 27,470 (347 ) Total securities $ 106,062 $ (1,071 ) $ 1,520 $ (38 ) $ 107,582 $ (1,109 ) As of June 30, 2017 and December 31, 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 and mortgage backed securities issued by government sponsored entities. 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, 2017 and 2016 were $25,407,000 and $12,077,000, respectively. For the three months ended June 30, 2017 and 2016, sales of available-for-sale securities were $6,641,000 and $7,057,000, respectively. The gross gains and losses were as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Gross gains $ 30 $ 128 $ 202 $ 155 Gross losses (7 ) - (7 ) - Net gains $ 23 $ 128 $ 195 $ 155 Investment securities with an approximate carrying value of $233.4 million and $206.3 million at June 30, 2017 and December 31, 2016, 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 (excludes equity securities) at June 30, 2017, by contractual maturity, are shown below (in thousands): Amortized Cost Fair Value Available-for-sale debt securities: Due in one year or less $ 46,659 $ 46,812 Due after one year through five years 130,797 131,827 Due after five years through ten years 37,314 37,598 Due after ten years 57,031 57,300 Total $ 271,801 $ 273,537 |
Loans
Loans | 6 Months Ended |
Jun. 30, 2017 | |
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 of New York. Although the Company had a diversified loan portfolio at June 30, 2017 and December 31, 2016, 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, 2017 and December 31, 2016 (in thousands): June 30, 2017 Total Loans Individually evaluated for impairment Loans acquired with deteriorated credit quality Collectively evaluated for impairment Real estate loans: Residential $ 205,725 $ 1,254 $ 35 $ 204,436 Commercial 271,342 13,680 1,989 255,673 Agricultural 188,547 3,728 734 184,085 Construction 25,569 - - 25,569 Consumer 10,603 4 - 10,599 Other commercial loans 56,952 4,902 868 51,182 Other agricultural loans 32,974 1,466 - 31,508 State and political subdivision loans 96,337 - - 96,337 Total 888,049 25,024 3,626 859,389 Allowance for loan losses 9,979 457 - 9,522 Net loans $ 878,070 $ 24,577 $ 3,626 $ 849,867 December 31, 2016 Real estate loans: Residential $ 207,423 $ 957 $ 35 $ 206,431 Commercial 252,577 5,742 1,969 244,866 Agricultural 123,624 3,346 738 119,540 Construction 25,441 - - 25,441 Consumer 11,005 - 4 11,001 Other commercial loans 58,639 5,994 621 52,024 Other agricultural loans 23,388 1,654 - 21,734 State and political subdivision loans 97,514 - - 97,514 Total 799,611 17,693 3,367 778,551 Allowance for loan losses 8,886 487 - 8,399 Net loans $ 790,725 $ 17,206 $ 3,367 $ 770,152 Purchased loans acquired in The First National Bank of Fredericksburg (FNB) acquisition, completed in 2015, 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 ("PCI") 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. Based upon management's review, 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, 2017. The fair value of PCI loans, on the acquisition date, was determined, primarily based on the fair value of the loans' collateral. The carrying value of PCI loans was $3,626,000 and $3,367,000 at June 30, 2017 and December 31, 2016, respectively. The carrying value of the PCI loans was determined by projected discounted contractual cash flows. Changes in the accretable yield for PCI loans were as follows for the three and six months ended June 30, 2017 and 2016, respectively (in thousands): Three months ended Six months ended June 30, June 30, 2017 2016 2017 2016 Balance at beginning of period $ 275 $ 551 $ 389 $ 637 Accretion (108 ) (87 ) (222 ) (173 ) Balance at end of period $ 167 $ 464 $ 167 $ 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, 2017 December 31, 2016 Outstanding balance $ 6,660 $ 6,487 Carrying amount 3,626 3,367 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, commercial or agricultural real estate used during the construction phase of residential, commercial or agricultural 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 other 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, excluding PCI loans, with the associated allowance amount, if applicable (in thousands) Recorded Recorded Unpaid Investment Investment Total Principal With No With Recorded Related June 30, 2017 Balance Allowance Allowance Investment Allowance Real estate loans: Mortgages $ 1,246 $ 281 $ 903 $ 1,184 $ 67 Home Equity 70 16 54 70 10 Commercial 16,037 13,093 587 13,680 58 Agricultural 3,744 2,405 1,323 3,728 95 Construction - - - - - Consumer 4 2 2 4 2 Other commercial loans 5,423 4,431 471 4,902 207 Other agricultural loans 1,466 1,448 18 1,466 18 State and political subdivision loans - - - - - Total $ 27,990 $ 21,676 $ 3,358 $ 25,034 $ 457 December 31, 2016 Real estate loans: $ - Mortgages $ 953 $ 570 $ 330 900 $ 22 Home Equity 57 - 57 57 10 Commercial 7,958 5,697 45 5,742 45 Agricultural 3,347 2,000 1,347 3,347 54 Construction - - - - - Consumer - - - - - Other commercial loans 6,159 5,135 859 5,994 326 Other agricultural loans 1,653 1,629 24 1,653 30 State and political subdivision loans - - - - - Total $ 20,127 $ 15,031 $ 2,662 $ 17,693 $ 487 The following tables includes the average balance of impaired financing receivables by class and the income recognized on these receivables for the three and six month periods ended June 30, 2017 and 2016(in thousands): For the Three Months Ended June 30, 2017 June 30, 2016 Interest Interest Average Interest Income Average Interest Income Recorded Income Recognized Recorded Income Recognized Investment Recognized Cash Basis Investment Recognized Cash Basis Real estate loans: Mortgages $ 986 $ 3 $ - $ 460 $ 5 $ - Home Equity 60 1 - 59 1 - Commercial 12,980 134 - 6,158 26 - Agricultural 3,641 32 - 165 3 - Construction - - - - - - Consumer 3 - - - - - Other commercial loans 5,029 37 17 5,933 68 2 Other agricultural loans 1,515 22 - 104 2 - State and political subdivision loans - - - - - - Total $ 24,214 $ 229 $ 17 $ 12,879 $ 105 $ 2 For the Six Months ended June 30, 2017 June 30, 2016 Interest Interest Average Interest Income Average Interest Income Recorded Income Recognized Recorded Income Recognized Investment Recognized Cash Basis Investment Recognized Cash Basis Real estate loans: Mortgages $ 940 $ 6 $ - $ 425 $ 9 $ - Home Equity 58 2 - 60 2 - Commercial 9,387 158 3 6,142 52 - Agricultural 3,513 63 - 165 5 - Construction - - - - - - Consumer 2 - - - - - Other commercial loans 5,313 77 27 5,942 134 3 Other agricultural loans 1,571 45 - 104 3 - State and political subdivision loans - - - - - - Total $ 20,784 $ 351 $ 30 $ 12,838 $ 205 $ 3 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, 2017 and December 31, 2016 (in thousands) June 30, 2017 Pass Special Mention Substandard Doubtful Loss Ending Balance Real estate loans: Commercial $ 244,957 $ 13,913 $ 12,472 $ - $ - $ 271,342 Agricultural 176,551 5,457 6,539 - - 188,547 Construction 25,569 - - - - 25,569 Other commercial loans 51,577 608 4,684 83 - 56,952 Other agricultural loans 30,641 195 2,138 - - 32,974 State and political subdivision loans 82,665 2,926 10,746 - - 96,337 Total $ 611,960 $ 23,099 $ 36,579 $ 83 $ - $ 671,721 December 31, 2016 Pass Special Mention Substandard Doubtful Loss Ending Balance Real estate loans: Commercial $ 225,185 $ 14,045 $ 13,347 $ - $ - $ 252,577 Agricultural 110,785 8,231 4,608 - - 123,624 Construction 25,441 - - - - 25,441 Other commercial loans 51,396 2,049 5,105 89 - 58,639 Other agricultural loans 20,178 1,733 1,477 - - 23,388 State and political subdivision loans 83,620 13,066 828 - - 97,514 Total $ 516,605 $ 39,124 $ 25,365 $ 89 $ - $ 581,183 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, 2017 and December 31, 2016 ( in thousands) June 30, 2017 Performing Non-performing PCI Total Real estate loans: Mortgages $ 146,736 $ 1,509 $ 35 $ 148,280 Home Equity 57,256 189 - 57,445 Consumer 10,459 144 - 10,603 Total $ 214,451 $ 1,842 $ 35 $ 216,328 December 31, 2016 Real estate loans: Mortgages $ 147,047 $ 1,648 $ 35 $ 148,730 Home Equity 58,438 255 - $ 58,693 Consumer 10,892 109 4 $ 11,005 Total $ 216,377 $ 2,012 $ 39 $ 218,428 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, 2017 and December 31, 2016 (in thousands): Total 90 Days or 30-59 Days 60-89 Days 90 Days Total Past Financing Greater and June 30, 2017 Past Due Past Due Or Greater Due Current PCI Receivables Accruing Real estate loans: Mortgages $ 223 $ 165 $ 879 $ 1,267 $ 146,978 $ 35 $ 148,280 $ - Home Equity 280 8 96 384 57,061 - 57,445 43 Commercial 1,219 302 4,389 5,910 263,443 1,989 271,342 553 Agricultural 454 100 1,163 1,717 186,096 734 188,547 159 Construction - - - - 25,569 - 25,569 - Consumer 91 - 144 235 10,368 - 10,603 57 Other commercial loans 45 - 2,620 2,665 53,419 868 56,952 - Other agricultural loans 283 - 739 1,022 31,952 - 32,974 - State and political subdivision loans - - - - 96,337 - 96,337 - Total $ 2,595 $ 575 $ 10,030 $ 13,200 $ 871,223 $ 3,626 $ 888,049 $ 812 Loans considered non-accrual $ 144 $ 99 $ 9,218 $ 9,461 $ 2,050 $ - $ 11,511 Loans still accruing 2,451 476 812 3,739 869,173 3,626 876,538 Total $ 2,595 $ 575 $ 10,030 $ 13,200 $ 871,223 $ 3,626 $ 888,049 December 31, 2016 Real estate loans: Mortgages $ 630 $ 36 $ 1,109 $ 1,775 $ 146,920 $ 35 $ 148,730 $ 173 Home Equity 384 49 209 642 58,051 - 58,693 160 Commercial 1,757 58 4,302 6,117 244,491 1,969 252,577 - Agricultural - - 1,145 1,145 121,741 738 123,624 - Construction - - - - 25,441 - 25,441 - Consumer 115 40 83 238 10,763 4 11,005 67 Other commercial loans 95 35 4,004 4,134 53,884 621 58,639 - Other agricultural loans 43 34 5 82 23,306 - 23,388 5 State and political subdivision loans - - - - 97,514 - 97,514 - Total $ 3,024 $ 252 $ 10,857 $ 14,133 $ 782,111 $ 3,367 $ 799,611 $ 405 Loans considered non-accrual $ 172 $ 105 $ 10,452 $ 10,729 $ 725 $ - $ 11,454 Loans still accruing 2,852 147 405 3,404 781,386 3,367 788,157 Total $ 3,024 $ 252 $ 10,857 $ 14,133 $ 782,111 $ 3,367 $ 799,611 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, excluding PCI loans, on non-accrual status as of June 30, 2017 and December 31, 2016, respectively. The balances are presented by class of financing receivable (in thousands): June 30, 2017 December 31, 2016 Real estate loans: Mortgages $ 1,509 $ 1,475 Home Equity 146 95 Commercial 4,588 4,445 Agricultural 1,314 1,340 Construction - - Consumer 87 42 Other commercial loans 3,128 4,057 Other agricultural loans 739 - State and political subdivision - - $ 11,511 $ 11,454 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, 2017 and December 31, 2016, included within the allowance for loan losses are reserves of $26,000 and $29,000 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, 2017 and 2016 were as follows (dollars in thousands): For the Three Months Ended June 30, 2017 Number of contracts Pre-modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Interest Modification Term Modification Interest Modification Term Modification Interest Modification Term Modification Real estate loans: Commercial - 5 $ - $ 6,093 $ - $ 6,093 Total - 5 $ - $ 6,093 $ - $ 6,093 For the Six Months Ended June 30, 2017 Number of contracts Pre-modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Interest Modification Term Modification Interest Modification Term Modification Interest Modification Term Modification Real estate loans: Commercial - 7 $ - $ 6,797 $ - $ 6,797 Total - 7 $ - $ 6,797 $ - $ 6,797 For the 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 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 on modified loans 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 began January 1, 2017 and 2016 (six month periods) and April 1, 2017 and 2016 (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, 2017 and December 31, 2016, respectively (in thousands): June 30, 2017 December 31, 2016 Individually evaluated for impairment Collectively evaluated for impairment Total Individually evaluated for impairment Collectively evaluated for impairment Total Real estate loans: Residential $ 77 $ 1,027 $ 1,104 $ 32 $ 1,032 $ 1,064 Commercial 58 3,483 3,541 45 3,544 3,589 Agricultural 95 2,357 2,452 54 1,440 1,494 Construction - 45 45 - 47 47 Consumer 2 123 125 - 122 122 Other commercial loans 207 924 1,131 326 1,001 1,327 Other agricultural loans 18 413 431 30 282 312 State and political subdivision loans - 838 838 - 833 833 Unallocated - 312 312 - 98 98 Total $ 457 $ 9,522 $ 9,979 $ 487 $ 8,399 $ 8,886 The following tables roll forward the balance of the ALLL by portfolio segment for the three and six month periods ended June 30, 2017 and 2016, respectively (in thousands): Balance at March 31, 2017 Charge-offs Recoveries Provision Balance at June 30, 2017 Real estate loans: Residential $ 1,042 $ (48 ) $ - $ 110 $ 1,104 Commercial 3,665 - 2 (126 ) 3,541 Agricultural 1,952 - - 500 2,452 Construction 46 - - (1 ) 45 Consumer 123 (17 ) 12 7 125 Other commercial loans 1,215 - - (84 ) 1,131 Other agricultural loans 306 - - 125 431 State and political subdivision loans 824 - - 14 838 Unallocated 232 - - 80 312 Total $ 9,405 $ (65 ) $ 14 $ 625 $ 9,979 Balance at December 31, 2016 Charge-offs Recoveries Provision Balance at June 30, 2017 Real estate loans: Residential $ 1,064 $ (93 ) $ - $ 133 $ 1,104 Commercial 3,589 (41 ) 6 (13 ) 3,541 Agricultural 1,494 - - 958 2,452 Construction 47 - - (2 ) 45 Consumer 122 (45 ) 22 26 125 Other commercial loans 1,327 - 9 (205 ) 1,131 Other agricultural loans 312 (5 ) 124 431 State and political subdivision loans 833 - - 5 838 Unallocated 98 - - 214 312 Total $ 8,886 $ (184 ) $ 37 $ 1,240 $ 9,979 Balance at March 31, 2016 Charge-offs Recoveries Provision Balance at June 30, 2016 Real estate loans: Residential $ 966 $ (43 ) $ - $ 67 $ 990 Commercial 3,533 - 4 (199 ) 3,338 Agricultural 405 176 581 Construction 14 - - 4 18 Consumer 96 (23 ) 29 2 104 Other commercial loans 1,222 (18 ) - 112 1,316 Other agricultural loans 125 123 248 State and political subdivision loans 666 - - 98 764 Unallocated 248 - - (248 ) - Total $ 7,275 $ (84 ) $ 33 $ 135 $ 7,359 Balance at December 31, 2016 Charge-offs Recoveries Provision Balance at June 30, 2016 Real estate loans: Residential $ 905 $ (43 ) $ - $ 128 $ 990 Commercial 3,376 - 8 (46 ) 3,338 Agricultural 409 - 172 581 Construction 24 - - (6 ) 18 Consumer 102 (38 ) 68 (28 ) 104 Other commercial loans 1,183 (18 ) 6 145 1,316 Other agricultural loans 122 126 248 State and political subdivision loans 593 - - 171 764 Unallocated 392 - - (392 ) - Total $ 7,106 $ (99 ) $ 82 $ 270 $ 7,359 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. For the three months ended June 30, 2017, the allowance for residential real estate increased in general reserves for pooled loans as a result of increased loss rates reflected in the charge-offs for the three month period, as well as higher loan balances, and an increase in the specific reserve for individually evaluated loans. This was represented as an increase to the provision. The allowance for commercial real estate was decreased in general reserves due to the improvement in classified loans, which was represented as a decrease in the provision. The allowance for agricultural real estate loans was increased in general reserves as a result of higher loan balances. It was also impacted by the classified loan trend in the agricultural real estate portfolio. The result of these changes was represented as an increase in the provision. The allowance for other commercial loans was reduced as a result of lower loan balances, an improvement in the amount of classified loans and a reduction in the specific reserves. This was represented by a decrease to the provision. The allowance for other agricultural loans was increased in general reserves as a result of higher loan balances. It was also impacted by the classified loan trend in the other agricultural loan portfolio. The result of these changes was represented as an increase in the provision. For the six months ended June 30, 2017, the allowance for residential real estate increased in general reserves as a result of increased loss rates reflected in the charge-offs for the six month period and an increase in the specific reserve. This was represented as an increase to the provision. The allowance for agricultural real estate loans was increased in general reserves as a result of higher loan balances as well as an increase in specific reserves. It was also impacted by the classified loan trend in the agricultural real estate portfolio. The result of these changes was represented as an increase in the provision. The allowance for other commercial loans was reduced as a result of lower loan balances, an improvement in the amount of classified loans and a reduction in the specific reserves. This was represented by a decrease to the provision. The allowance for other agricultural loans was increased in general reserves as a result of higher loan balances. It was also impacted by the classified loan trend in the other agricultural loan portfolio. The result of these changes was represented as an increase in the provision. For the three months ended June 30, 2016, the allowance for commercial real estate was decreased in general reserves due to the improvement in classified loans, which was represented as a decrease in the provision. The allowance for agricultural real estate loans was increased in general reserves as a result of higher loan balances. It was also impacted by the classified loan trend in the agricultural real estate portfolio. The result of these changes was represented as an increase in the provision. The allowance for other commercial loans was increased as a result of higher loan balances, an increase in the amount of classified loans and an increase in the specific reserves. This was represented by an increase to the provision. The allowance for other agricultural loans was increased in general reserves as a result of higher loan balances. It was also impacted by the classified loan trend in the other agricultural loan portfolio. The result of these changes was represented as an increase in the provision. For the six months ended June 30, 2016, the allowance for agricultural real estate loans was increased in general reserves as a result of higher loan balances. It was also impacted by the classified loan trend in the agricultural real estate portfolio. The result of these changes was represented as an increase in the provision. The allowance for other commercial loans was increased as a result an increase in the amount of classified loans and an increase in the specific reserves. This was represented by an increase to the provision. The allowance for other agricultural loans was increased in general reserves as a result of higher loan balances. It was also impacted by the classified loan trend in the other agricultural loan portfolio. The result of these changes was represented as an increase in the provision. The allowance for state and political loans was increased for general reserves due to an increase in special mention loans during the period. This was represented as an increase in the provision. 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, 2017 and December 31, 2016, included with other assets are $1,194,000 and $1,036,000, respectively, of foreclosed assets. As of June 30, 2017, included within the foreclosed assets are $268,000 of consumer residential mortgages that were foreclosed on or received via a deed in lieu transaction prior to the period end. As of June 30, 2017, the Company has initiated formal foreclosure proceedings on $936,000 of consumer residential mortgages, which have not yet been transferred into foreclosed assets. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 and December 31, 2016 (in thousands): June 30, 2017 December 31, 2016 Gross carrying value Accumulated amortization Net carrying value Gross carrying value Accumulated amortization Net carrying value Amortized intangible assets (1): MSRs $ 1,560 $ (878 ) $ 682 $ 1,471 $ (787 ) $ 684 Core deposit intangibles 1,641 (454 ) 1,187 1,641 (320 ) 1,321 Covenant not to compete 125 (49 ) 76 125 (34 ) 91 Total amortized intangible assets $ 3,326 $ (1,381 ) $ 1,945 $ 3,237 $ (1,141 ) $ 2,096 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, 2017. Future amortization expense may vary from these projections (in thousands): MSRs Core deposit intangibles Covenant not to compete Total Three months ended June 30, 2017 (actual) $ 45 $ 66 $ 7 $ 118 Six months ended June 30, 2017 (actual) $ 91 $ 134 $ 15 $ 240 Three months June 30, 2016 (actual) $ 44 $ 74 $ 8 $ 126 Six months June 30, 2016 (actual) $ 90 $ 148 $ 16 $ 254 Estimate for year ended December 31, Remaining 2017 95 132 16 243 2018 160 236 30 426 2019 127 206 30 363 2020 98 177 - 275 2021 73 147 - 220 |
Federal Home Loan Bank Stock
Federal Home Loan Bank Stock | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 and December 31, 2016, the Bank's investment in FHLB stock was $3,725,800 and $4,542,000, respectively. |
Repurchase Agreements
Repurchase Agreements | 6 Months Ended |
Jun. 30, 2017 | |
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 2017 and D ecember 31, 2016 Remaining Contractual Maturity of the Agreements Overnight and Up to Greater than June 30, 2017 Continuous 30 Days 30 - 90 Days 90 days Total Repurchase Agreements: U.S. agency securities $ 18,161 $ - $ - $ 2,069 $ 20,230 Total carrying value of collateral pledged $ 18,161 $ - $ - $ 2,069 $ 20,230 Total liability recognized for repurchase agreements $ 15,577 Remaining Contractual Maturity of the Agreements Overnight and Up to Greater than December 31, 2016 Continuous 30 Days 30 - 90 Days 90 days Total Repurchase Agreements: U.S. agency securities $ 16,118 $ - $ - $ 2,059 $ 18,177 Total carrying value of collateral pledged $ 16,118 $ - $ - $ 2,059 $ 18,177 Total liability recognized for repurchase agreements $ 14,307 |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2017 | |
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 2016 Annual Report on Form 10-K. Noncontributory Defined Benefit Pension Plan The Bank sponsors a trusteed noncontributory defined benefit pension plan ("Pension Plan") covering substantially all employees and officers hired prior to January 1, 2007. Additionally, the Bank assumed the noncontributory defined benefit pension plan of FNB when it was acquired. 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." In lieu of the Pension Plan, employees with a hire date of January 1, 2007 or later are eligible to receive, after meeting certain length of service requirements, an annual discretionary 401(k) plan contribution from the Bank equal to a percentage of an employee's base compensation. The contribution amount, if any, is placed in a separate account within the 401(k) plan and is subject to a vesting requirement. 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, 2017 and 2016, respectively (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Service cost $ 84 $ 89 $ 175 $ 179 Interest cost 168 173 335 345 Expected return on plan assets (273 ) (260 ) (547 ) (520 ) Net amortization and deferral 52 60 112 121 Net periodic benefit cost $ 31 $ 62 $ 75 $ 125 The Bank expects to contribute $400,000 to the Pension Plans in 2017. 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, 2017 and December 31, 2016, an obligation of $914,000 and $940,000, 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. In April of 2016, the Company's shareholders authorized a total of 150,000 shares of the Company's common stock to be made available under the Plan. As of June 30, 2017, 141,678 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, 2017: Three months Six months Weighted Weighted Unvested Average Unvested Average Shares Market Price Shares Market Price Outstanding, beginning of period 8,459 $ 49.10 8,471 $ 49.10 Granted 4,062 53.46 4,212 53.38 Forfeited (43 ) (48.56 ) (43 ) (48.56 ) Vested (3,309 ) (50.14 ) (3,471 ) (50.19 ) Outstanding, end of period 9,169 $ 50.66 9,169 $ 50.66 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 $104,000 and $92,000 for the six months ended June 30, 2017 and 2016, respectively. For the three months ended June 30, 2017 and 2016, compensation expense totaled $54,000 and $45,000, respectively. At June 30, 2017, the total compensation cost related to nonvested awards that has not yet been recognized was $464,000, which is expected to be recognized over the next three 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, 2017 and December 31, 2016, an obligation of $1,516,000 and $1,460,000, respectively, was included in other liabilities for this plan in the Consolidated Balance Sheet. Expenses related to this plan totaled $56,000 and $61,000 for the six months ended June 30, 2017 and 2016, respectively. Salary Continuation Plan The Company maintains a salary continuation plan for certain employees retained through the acquisition of FNB or that were formerly employed by FNB. At June 30, 2017 and December 31 2016, an obligation of $720,000 was included in other liabilities for this plan in the Consolidated Balance Sheet. Expenses related to this plan totaled $14,000 and $16,000 for the three months ended June 30, 2017 and 2016, respectively. For the six months ended June 30, 2017 and 2016, expenses related to this plan totaled $27,000 and $32,000, respectively. 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 and $569,000 as of June 30, 2017 and December 31, 2016, respectively, which is included in other liabilities in the Consolidated Balance Sheet. |
Accumulated Comprehensive Incom
Accumulated Comprehensive Income (loss) | 6 Months Ended |
Jun. 30, 2017 | |
Accumulated Comprehensive Income (loss) [Abstract] | |
Accumulated Comprehensive Income (loss) | Note 10 – Accumulated Comprehensive Income (Loss) The following tables present the changes in accumulated other comprehensive income (loss) by component net of tax for the three and six months ended June 30, 2017 and 2016 (in thousands): Three months ended June 30, 2017 Unrealized gain (loss) on available for sale securities Defined Benefit Pension Items Total Balance as of March 31, 2017 $ 1,238 $ (2,659 ) $ (1,421 ) Other comprehensive income (loss) before reclassifications (net of tax) 432 - 432 Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) (15 ) 35 20 Net current period other comprehensive income (loss) 417 35 452 Balance as of June 30, 2017 $ 1,655 $ (2,624 ) $ (969 ) Six months ended June 30, 2017 Unrealized gain (loss) on available for sale securities Defined Benefit Pension Items Total Balance as of December 31, 2016 $ 1,306 $ (2,698 ) $ (1,392 ) Other comprehensive income (loss) before reclassifications (net of tax) 478 - 478 Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) (129 ) 74 (55 ) Net current period other comprehensive income (loss) 349 74 423 Balance as of June 30, 2017 $ 1,655 $ (2,624 ) $ (969 ) Three months ended June 30, 2016 Unrealized gain (loss) on available for sale securities Defined Benefit Pension Items Total Balance as of March 31, 2016 $ 3,303 $ (2,400 ) $ 903 Other comprehensive income (loss) before reclassifications (net of tax) 1,184 - 1,184 Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) (84 ) 39 (45 ) Net current period other comprehensive income (loss) 1,100 39 1,139 Balance as of June 30, 2016 $ 4,403 $ (2,361 ) $ 2,042 Six months ended June 30, 2016 Unrealized gain (loss) on available for sale securities Defined Benefit Pension Items Total Balance as of December 31, 2015 $ 2,204 $ (2,440 ) $ (236 ) Other comprehensive income (loss) before reclassifications (net of tax) 2,301 - 2,301 Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) (102 ) 79 (23 ) Net current period other comprehensive income (loss) 2,199 79 2,278 Balance as of June 30, 2016 $ 4,403 $ (2,361 ) $ 2,042 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, 2017 and 2016 (in thousands): Details about accumulated other comprehensive income (loss) Amount reclassified from accumulated comprehensive income (loss) Affected line item in the Consolidated Statement of Income Three Months Ended June 30, 2017 2016 Unrealized gains and losses on available for sale securities $ 23 $ 128 Investment securities gains, net (8 ) (44 ) Provision for income taxes $ 15 $ 84 Defined benefit pension items $ (52 ) $ (60 ) Salaries and employee benefits 17 21 Provision for income taxes $ (35 ) $ (39 ) Total reclassifications, net $ (20 ) $ 45 Six Months Ended June 30, 2017 2016 Unrealized gains and losses on available for sale securities $ 195 $ 155 Investment securities gains, net (66 ) (53 ) Provision for income taxes $ 129 $ 102 Defined benefit pension items $ (112 ) $ (121 ) Salaries and employee benefits 38 42 Provision for income taxes $ (74 ) $ (79 ) Total reclassifications, net $ 55 $ 23 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note 11 – 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, 2017 and December 31, 2016 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, 2017 Level I Level II Level III Total Fair value measurements on a recurring basis: Assets Securities available for sale: U.S. agency securities $ - $ 142,750 $ - $ 142,750 Obligations of state and political subdivisions - 86,216 - 86,216 Corporate obligations - 3,111 - 3,111 Mortgage-backed securities in government sponsored entities - 41,460 - 41,460 Equity securities in financial institutions 1,671 - - 1,671 December 31, 2016 Level I Level II Level III Total Fair value measurements on a recurring basis: Securities available for sale: U.S. agency securities $ - $ 170,414 $ - $ 170,414 U.S. treasury securities 3,000 - - 3,000 Obligations of state and political subdivisions - 96,926 - 96,926 Corporate obligations - 3,050 - 3,050 Mortgage-backed securities in government sponsored entities - 37,728 - 37,728 Equity securities in financial institutions 2,899 - - 2,899 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 2017 and 2016 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, 2017 and December 31, 2016 are included in the table below ( in thousands) June 30, 2017 Level I Level II Level III Total Impaired Loans $ - $ - $ 2,756 $ 2,756 Other real estate owned - - 1,102 1,102 December 31, 2016 Impaired Loans $ - $ - $ 2,033 $ 2,033 Other real estate owned - - 839 839 · Impaired Loans - · Other Real Estate Owned (OREO) – 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 III Fair Value Measurements June 30, 2017 Fair Value Valuation Technique(s) Unobservable input Range Weighted average Impaired Loans $ 2,756 Appraised Collateral Values Discount for time since appraisal 0-100 % 27.23 % Selling costs 5%-9 % 7.59 % Holding period 0 - 24 months 11.8 months Other real estate owned 1,102 Appraised Collateral Values Discount for time since appraisal 12-47 % 21.75 % December 31, 2016 Fair Value Valuation Technique(s) Unobservable input Range Weighted average Impaired Loans 2,033 Appraised Collateral Values Discount for time since appraisal 0-65 % 28.98 % Selling costs 5%-9 % 7.56 % Holding period 6 - 12 months 11 months Other real estate owned 839 Appraised Collateral Values Discount for time since appraisal 10-67 % 25.45 % The fair values of the Company's financial instruments are as follows (in thousands): Carrying June 30, 2017 Amount Fair Value Level I Level II Level III Financial assets: Cash and due from banks $ 19,362 $ 19,362 $ 19,362 $ - $ - Interest bearing time deposits with other banks 8,791 8,791 - - 8,791 Available-for-sale securities 275,208 275,208 1,671 273,537 Loans held for sale 393 393 393 Net loans 878,070 878,901 - - 878,901 Bank owned life insurance 26,556 26,556 26,556 - - Regulatory stock 4,490 4,490 4,490 - - Accrued interest receivable 3,697 3,697 3,697 - - Financial liabilities: Deposits $ 1,051,209 $ 1,049,833 $ 791,387 $ - $ 258,446 Borrowed funds 69,998 68,503 30,396 - 38,107 Accrued interest payable 628 628 628 - - December 31, 2016 Financial assets: Cash and due from banks $ 17,754 $ 17,754 $ 17,754 $ - $ - Interest bearing time deposits with other banks 6,955 6,960 - - 6,960 Available-for-sale securities 314,017 314,017 5,899 308,118 - Loans held for sale 1,827 1,827 1,827 Net loans 790,725 797,184 - - 797,184 Bank owned life insurance 26,223 26,223 26,223 - - Regulatory stock 5,306 5,306 5,306 - - Accrued interest receivable 4,089 4,089 4,089 - - Financial liabilities: Deposits $ 1,005,503 $ 1,004,072 $ 740,889 $ - $ 263,183 Borrowed funds 79,662 77,425 41,330 - 36,095 Accrued interest payable 720 720 720 - 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, 2017 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | Note 12 – Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (a new revenue recognition standard). The Update's core principle is that a company will recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this Update specifies the accounting for certain costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. This Update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Because the guidance does not apply to revenue associated with financial instruments, including loans and securities, we do not expect the new standard, or any of the amendments, to result in a material change from our current accounting for revenue because the majority of the Company's financial instruments are not within the scope of Topic 606. However, we do expect that the standard will result in new disclosure requirements, which are currently being evaluated. 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) In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments We expect to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740) The Company is currently evaluating the impact the adoption of the standard will have on the Company's consolidated financial position or results of operations. In December 2016, the FASB issued ASU 2016-20 , Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers Guarantees The Company is currently evaluating the impact the adoption of the standard will have on the Company's consolidated financial position or results of operations. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment . To simplify the subsequent measurement of goodwill, the FASB eliminated Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this Update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting units fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. A public business entity that is a U.S. Securities and Exchange Commission ("SEC") filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. A public business entity that is not an SEC filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2020. All other entities, including not-for-profit entities that are adopting the amendments in this Update should do so for their annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2021. In February 2017, the FASB issued , Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), and Health and Welfare Benefit Plans (Topic 965) . This Update relates primarily to the reporting by an employee benefit plan for its interest in a master trust, which is a trust for which a regulated financial institution serves as a trustee or custodian and in which assets of more than one plan sponsored by a single employer or by a group of employers under common control are held. For each master trust in which a plan holds an interest, the amendments in this Update require a plan's interest in that master trust and any change in that interest to be presented in separate line items in the statement of net assets available for benefits and in the statement of changes in net assets available for benefits, respectively. The amendments in this Update remove the requirement to disclose the percentage interest in the master trust for plans with divided interests and require that all plans disclose the dollar amount of their interest in each of those general types of investments, which supplements the existing requirement to disclose the master trusts balances in each general type of investments. There are also increased disclosure requirements for investments in master trusts. The amendments in this Update are effective for fiscal years beginning after December 15, 2018. Early adoption is permitted. In March 2017, the FASB issued ASU 2017-07, Compensation — Retirement Benefits (Topic 715) . In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20). ons. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Citizens Financial Services, Inc. (individually and collectively with its direct and indirect subsidiaries, the "Company") is a Pennsylvania corporation and the holding company of its wholly owned subsidiary, First Citizens Community Bank (the "Bank"), and of the Bank's wholly owned subsidiary, First Citizens Insurance Agency, Inc. ("First Citizens Insurance"). 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, 2017 and for the periods ended June 30, 2017 and 2016 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, 2017 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, 2016. |
Recent Accounting Pronounceme20
Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (a new revenue recognition standard). The Update's core principle is that a company will recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this Update specifies the accounting for certain costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. This Update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Because the guidance does not apply to revenue associated with financial instruments, including loans and securities, we do not expect the new standard, or any of the amendments, to result in a material change from our current accounting for revenue because the majority of the Company's financial instruments are not within the scope of Topic 606. However, we do expect that the standard will result in new disclosure requirements, which are currently being evaluated. 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) In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments We expect to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740) The Company is currently evaluating the impact the adoption of the standard will have on the Company's consolidated financial position or results of operations. In December 2016, the FASB issued ASU 2016-20 , Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers Guarantees The Company is currently evaluating the impact the adoption of the standard will have on the Company's consolidated financial position or results of operations. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment . To simplify the subsequent measurement of goodwill, the FASB eliminated Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this Update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting units fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. A public business entity that is a U.S. Securities and Exchange Commission ("SEC") filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. A public business entity that is not an SEC filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2020. All other entities, including not-for-profit entities that are adopting the amendments in this Update should do so for their annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2021. In February 2017, the FASB issued , Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), and Health and Welfare Benefit Plans (Topic 965) . This Update relates primarily to the reporting by an employee benefit plan for its interest in a master trust, which is a trust for which a regulated financial institution serves as a trustee or custodian and in which assets of more than one plan sponsored by a single employer or by a group of employers under common control are held. For each master trust in which a plan holds an interest, the amendments in this Update require a plan's interest in that master trust and any change in that interest to be presented in separate line items in the statement of net assets available for benefits and in the statement of changes in net assets available for benefits, respectively. The amendments in this Update remove the requirement to disclose the percentage interest in the master trust for plans with divided interests and require that all plans disclose the dollar amount of their interest in each of those general types of investments, which supplements the existing requirement to disclose the master trusts balances in each general type of investments. There are also increased disclosure requirements for investments in master trusts. The amendments in this Update are effective for fiscal years beginning after December 15, 2018. Early adoption is permitted. In March 2017, the FASB issued ASU 2017-07, Compensation — Retirement Benefits (Topic 715) . In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20). ons. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings per Share [Abstract] | |
Computation of 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, 2017 2016 2017 2016 Net income applicable to common stock $ 3,468,000 $ 3,031,000 $ 6,771,000 $ 6,314,000 Basic earnings per share computation Weighted average common shares outstanding 3,480,122 3,508,818 3,479,653 3,515,477 Earnings per share - basic $ 1.00 $ 0.86 $ 1.95 $ 1.80 Diluted earnings per share computation Weighted average common shares outstanding for basic earnings per share 3,480,122 3,508,818 3,479,653 3,515,477 Add: Dilutive effects of restricted stock 1,188 409 610 205 Weighted average common shares outstanding for dilutive earnings per share 3,481,310 3,509,227 3,480,263 3,515,682 Earnings per share - diluted $ 1.00 $ 0.86 $ 1.95 $ 1.80 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 and December 31, 2016 were as follows (in thousands): Gross Gross Amortized Unrealized Unrealized Fair June 30, 2017 Cost Gains Losses Value Available-for-sale securities: U.S. agency securities $ 142,581 $ 315 $ (146 ) $ 142,750 Obligations of state and political subdivisions 84,731 1,578 (93 ) 86,216 Corporate obligations 3,000 111 - 3,111 Mortgage-backed securities in government sponsored entities 41,489 147 (176 ) 41,460 Equity securities in financial institutions 900 771 - 1,671 Total available-for-sale securities $ 272,701 $ 2,922 $ (415 ) $ 275,208 December 31, 2016 Available-for-sale securities: U.S. agency securities $ 170,276 $ 407 $ (269 ) $ 170,414 U.S. treasury securities 2,999 1 - 3,000 Obligations of state and political subdivisions 95,956 1,463 (493 ) 96,926 Corporate obligations 3,000 50 - 3,050 Mortgage-backed securities in government sponsored entities 37,987 88 (347 ) 37,728 Equity securities in financial institutions 1,821 1,078 - 2,899 Total available-for-sale securities $ 312,039 $ 3,087 $ (1,109 ) $ 314,017 |
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, 2017 and December 31, 2016 (in thousands). As of June 30, 2017, the Company owned 63 securities whose fair value was less than their cost basis. Less than Twelve Months Twelve Months or Greater Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized June 30, 2017 Value Losses Value Losses Value Losses U.S. agency securities $ 53,010 $ (142 ) $ 995 $ (4 ) $ 54,005 $ (146 ) Obligations of state and political subdivisions 7,811 (40 ) 5,171 (53 ) 12,982 (93 ) Mortgage-backed securities in government sponsored entities 18,873 (149 ) 1,377 (27 ) 20,250 (176 ) Total securities $ 79,694 $ (331 ) $ 7,543 $ (84 ) $ 87,237 $ (415 ) December 31, 2016 U.S. agency securities $ 50,947 $ (269 ) $ - $ - $ 50,947 $ (269 ) Obligations of states and political subdivisions 28,398 (472 ) 767 (21 ) 29,165 (493 ) Mortgage-backed securities in government sponsored entities 26,717 (330 ) 753 (17 ) 27,470 (347 ) Total securities $ 106,062 $ (1,071 ) $ 1,520 $ (38 ) $ 107,582 $ (1,109 ) |
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, 2017 2016 2017 2016 Gross gains $ 30 $ 128 $ 202 $ 155 Gross losses (7 ) - (7 ) - Net gains $ 23 $ 128 $ 195 $ 155 |
Summary of amortized cost and fair value of debt securities by contractual maturity | The amortized cost and fair value of debt securities (excludes equity securities) at June 30, 2017, by contractual maturity, are shown below (in thousands): Amortized Cost Fair Value Available-for-sale debt securities: Due in one year or less $ 46,659 $ 46,812 Due after one year through five years 130,797 131,827 Due after five years through ten years 37,314 37,598 Due after ten years 57,031 57,300 Total $ 271,801 $ 273,537 |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 and December 31, 2016 (in thousands): June 30, 2017 Total Loans Individually evaluated for impairment Loans acquired with deteriorated credit quality Collectively evaluated for impairment Real estate loans: Residential $ 205,725 $ 1,254 $ 35 $ 204,436 Commercial 271,342 13,680 1,989 255,673 Agricultural 188,547 3,728 734 184,085 Construction 25,569 - - 25,569 Consumer 10,603 4 - 10,599 Other commercial loans 56,952 4,902 868 51,182 Other agricultural loans 32,974 1,466 - 31,508 State and political subdivision loans 96,337 - - 96,337 Total 888,049 25,024 3,626 859,389 Allowance for loan losses 9,979 457 - 9,522 Net loans $ 878,070 $ 24,577 $ 3,626 $ 849,867 December 31, 2016 Real estate loans: Residential $ 207,423 $ 957 $ 35 $ 206,431 Commercial 252,577 5,742 1,969 244,866 Agricultural 123,624 3,346 738 119,540 Construction 25,441 - - 25,441 Consumer 11,005 - 4 11,001 Other commercial loans 58,639 5,994 621 52,024 Other agricultural loans 23,388 1,654 - 21,734 State and political subdivision loans 97,514 - - 97,514 Total 799,611 17,693 3,367 778,551 Allowance for loan losses 8,886 487 - 8,399 Net loans $ 790,725 $ 17,206 $ 3,367 $ 770,152 |
Accretable yield for purchased credit impaired loans | Changes in the accretable yield for PCI loans were as follows for the three and six months ended June 30, 2017 and 2016, respectively (in thousands): Three months ended Six months ended June 30, June 30, 2017 2016 2017 2016 Balance at beginning of period $ 275 $ 551 $ 389 $ 637 Accretion (108 ) (87 ) (222 ) (173 ) Balance at end of period $ 167 $ 464 $ 167 $ 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, 2017 December 31, 2016 Outstanding balance $ 6,660 $ 6,487 Carrying amount 3,626 3,367 |
Impaired financing receivables with associated allowance amount | The following table includes the recorded investment and unpaid principal balances for impaired financing receivables by class, excluding PCI loans, with the associated allowance amount, if applicable (in thousands) Recorded Recorded Unpaid Investment Investment Total Principal With No With Recorded Related June 30, 2017 Balance Allowance Allowance Investment Allowance Real estate loans: Mortgages $ 1,246 $ 281 $ 903 $ 1,184 $ 67 Home Equity 70 16 54 70 10 Commercial 16,037 13,093 587 13,680 58 Agricultural 3,744 2,405 1,323 3,728 95 Construction - - - - - Consumer 4 2 2 4 2 Other commercial loans 5,423 4,431 471 4,902 207 Other agricultural loans 1,466 1,448 18 1,466 18 State and political subdivision loans - - - - - Total $ 27,990 $ 21,676 $ 3,358 $ 25,034 $ 457 December 31, 2016 Real estate loans: $ - Mortgages $ 953 $ 570 $ 330 900 $ 22 Home Equity 57 - 57 57 10 Commercial 7,958 5,697 45 5,742 45 Agricultural 3,347 2,000 1,347 3,347 54 Construction - - - - - Consumer - - - - - Other commercial loans 6,159 5,135 859 5,994 326 Other agricultural loans 1,653 1,629 24 1,653 30 State and political subdivision loans - - - - - Total $ 20,127 $ 15,031 $ 2,662 $ 17,693 $ 487 The following tables includes the average balance of impaired financing receivables by class and the income recognized on these receivables for the three and six month periods ended June 30, 2017 and 2016(in thousands): For the Three Months Ended June 30, 2017 June 30, 2016 Interest Interest Average Interest Income Average Interest Income Recorded Income Recognized Recorded Income Recognized Investment Recognized Cash Basis Investment Recognized Cash Basis Real estate loans: Mortgages $ 986 $ 3 $ - $ 460 $ 5 $ - Home Equity 60 1 - 59 1 - Commercial 12,980 134 - 6,158 26 - Agricultural 3,641 32 - 165 3 - Construction - - - - - - Consumer 3 - - - - - Other commercial loans 5,029 37 17 5,933 68 2 Other agricultural loans 1,515 22 - 104 2 - State and political subdivision loans - - - - - - Total $ 24,214 $ 229 $ 17 $ 12,879 $ 105 $ 2 For the Six Months ended June 30, 2017 June 30, 2016 Interest Interest Average Interest Income Average Interest Income Recorded Income Recognized Recorded Income Recognized Investment Recognized Cash Basis Investment Recognized Cash Basis Real estate loans: Mortgages $ 940 $ 6 $ - $ 425 $ 9 $ - Home Equity 58 2 - 60 2 - Commercial 9,387 158 3 6,142 52 - Agricultural 3,513 63 - 165 5 - Construction - - - - - - Consumer 2 - - - - - Other commercial loans 5,313 77 27 5,942 134 3 Other agricultural loans 1,571 45 - 104 3 - State and political subdivision loans - - - - - - Total $ 20,784 $ 351 $ 30 $ 12,838 $ 205 $ 3 |
Summary of financing receivable credit exposures by internally assigned grades | The following tables represent credit exposures by internally assigned grades as of June 30, 2017 and December 31, 2016 (in thousands) June 30, 2017 Pass Special Mention Substandard Doubtful Loss Ending Balance Real estate loans: Commercial $ 244,957 $ 13,913 $ 12,472 $ - $ - $ 271,342 Agricultural 176,551 5,457 6,539 - - 188,547 Construction 25,569 - - - - 25,569 Other commercial loans 51,577 608 4,684 83 - 56,952 Other agricultural loans 30,641 195 2,138 - - 32,974 State and political subdivision loans 82,665 2,926 10,746 - - 96,337 Total $ 611,960 $ 23,099 $ 36,579 $ 83 $ - $ 671,721 December 31, 2016 Pass Special Mention Substandard Doubtful Loss Ending Balance Real estate loans: Commercial $ 225,185 $ 14,045 $ 13,347 $ - $ - $ 252,577 Agricultural 110,785 8,231 4,608 - - 123,624 Construction 25,441 - - - - 25,441 Other commercial loans 51,396 2,049 5,105 89 - 58,639 Other agricultural loans 20,178 1,733 1,477 - - 23,388 State and political subdivision loans 83,620 13,066 828 - - 97,514 Total $ 516,605 $ 39,124 $ 25,365 $ 89 $ - $ 581,183 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, 2017 and December 31, 2016 ( in thousands) June 30, 2017 Performing Non-performing PCI Total Real estate loans: Mortgages $ 146,736 $ 1,509 $ 35 $ 148,280 Home Equity 57,256 189 - 57,445 Consumer 10,459 144 - 10,603 Total $ 214,451 $ 1,842 $ 35 $ 216,328 December 31, 2016 Real estate loans: Mortgages $ 147,047 $ 1,648 $ 35 $ 148,730 Home Equity 58,438 255 - $ 58,693 Consumer 10,892 109 4 $ 11,005 Total $ 216,377 $ 2,012 $ 39 $ 218,428 |
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, 2017 and December 31, 2016 (in thousands): Total 90 Days or 30-59 Days 60-89 Days 90 Days Total Past Financing Greater and June 30, 2017 Past Due Past Due Or Greater Due Current PCI Receivables Accruing Real estate loans: Mortgages $ 223 $ 165 $ 879 $ 1,267 $ 146,978 $ 35 $ 148,280 $ - Home Equity 280 8 96 384 57,061 - 57,445 43 Commercial 1,219 302 4,389 5,910 263,443 1,989 271,342 553 Agricultural 454 100 1,163 1,717 186,096 734 188,547 159 Construction - - - - 25,569 - 25,569 - Consumer 91 - 144 235 10,368 - 10,603 57 Other commercial loans 45 - 2,620 2,665 53,419 868 56,952 - Other agricultural loans 283 - 739 1,022 31,952 - 32,974 - State and political subdivision loans - - - - 96,337 - 96,337 - Total $ 2,595 $ 575 $ 10,030 $ 13,200 $ 871,223 $ 3,626 $ 888,049 $ 812 Loans considered non-accrual $ 144 $ 99 $ 9,218 $ 9,461 $ 2,050 $ - $ 11,511 Loans still accruing 2,451 476 812 3,739 869,173 3,626 876,538 Total $ 2,595 $ 575 $ 10,030 $ 13,200 $ 871,223 $ 3,626 $ 888,049 December 31, 2016 Real estate loans: Mortgages $ 630 $ 36 $ 1,109 $ 1,775 $ 146,920 $ 35 $ 148,730 $ 173 Home Equity 384 49 209 642 58,051 - 58,693 160 Commercial 1,757 58 4,302 6,117 244,491 1,969 252,577 - Agricultural - - 1,145 1,145 121,741 738 123,624 - Construction - - - - 25,441 - 25,441 - Consumer 115 40 83 238 10,763 4 11,005 67 Other commercial loans 95 35 4,004 4,134 53,884 621 58,639 - Other agricultural loans 43 34 5 82 23,306 - 23,388 5 State and political subdivision loans - - - - 97,514 - 97,514 - Total $ 3,024 $ 252 $ 10,857 $ 14,133 $ 782,111 $ 3,367 $ 799,611 $ 405 Loans considered non-accrual $ 172 $ 105 $ 10,452 $ 10,729 $ 725 $ - $ 11,454 Loans still accruing 2,852 147 405 3,404 781,386 3,367 788,157 Total $ 3,024 $ 252 $ 10,857 $ 14,133 $ 782,111 $ 3,367 $ 799,611 |
Summary of financing receivables on nonaccrual status | The following table reflects the financing receivables, excluding PCI loans, on non-accrual status as of June 30, 2017 and December 31, 2016, respectively. The balances are presented by class of financing receivable (in thousands): June 30, 2017 December 31, 2016 Real estate loans: Mortgages $ 1,509 $ 1,475 Home Equity 146 95 Commercial 4,588 4,445 Agricultural 1,314 1,340 Construction - - Consumer 87 42 Other commercial loans 3,128 4,057 Other agricultural loans 739 - State and political subdivision - - $ 11,511 $ 11,454 |
Summary of troubled debt restructurings on financing receivables | Loan modifications that are considered TDRs completed during the three and six months ended June 30, 2017 and 2016 were as follows (dollars in thousands): For the Three Months Ended June 30, 2017 Number of contracts Pre-modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Interest Modification Term Modification Interest Modification Term Modification Interest Modification Term Modification Real estate loans: Commercial - 5 $ - $ 6,093 $ - $ 6,093 Total - 5 $ - $ 6,093 $ - $ 6,093 For the Six Months Ended June 30, 2017 Number of contracts Pre-modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Interest Modification Term Modification Interest Modification Term Modification Interest Modification Term Modification Real estate loans: Commercial - 7 $ - $ 6,797 $ - $ 6,797 Total - 7 $ - $ 6,797 $ - $ 6,797 For the 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 |
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, 2017 and December 31, 2016, respectively (in thousands): June 30, 2017 December 31, 2016 Individually evaluated for impairment Collectively evaluated for impairment Total Individually evaluated for impairment Collectively evaluated for impairment Total Real estate loans: Residential $ 77 $ 1,027 $ 1,104 $ 32 $ 1,032 $ 1,064 Commercial 58 3,483 3,541 45 3,544 3,589 Agricultural 95 2,357 2,452 54 1,440 1,494 Construction - 45 45 - 47 47 Consumer 2 123 125 - 122 122 Other commercial loans 207 924 1,131 326 1,001 1,327 Other agricultural loans 18 413 431 30 282 312 State and political subdivision loans - 838 838 - 833 833 Unallocated - 312 312 - 98 98 Total $ 457 $ 9,522 $ 9,979 $ 487 $ 8,399 $ 8,886 |
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, 2017 and 2016, respectively (in thousands): Balance at March 31, 2017 Charge-offs Recoveries Provision Balance at June 30, 2017 Real estate loans: Residential $ 1,042 $ (48 ) $ - $ 110 $ 1,104 Commercial 3,665 - 2 (126 ) 3,541 Agricultural 1,952 - - 500 2,452 Construction 46 - - (1 ) 45 Consumer 123 (17 ) 12 7 125 Other commercial loans 1,215 - - (84 ) 1,131 Other agricultural loans 306 - - 125 431 State and political subdivision loans 824 - - 14 838 Unallocated 232 - - 80 312 Total $ 9,405 $ (65 ) $ 14 $ 625 $ 9,979 Balance at December 31, 2016 Charge-offs Recoveries Provision Balance at June 30, 2017 Real estate loans: Residential $ 1,064 $ (93 ) $ - $ 133 $ 1,104 Commercial 3,589 (41 ) 6 (13 ) 3,541 Agricultural 1,494 - - 958 2,452 Construction 47 - - (2 ) 45 Consumer 122 (45 ) 22 26 125 Other commercial loans 1,327 - 9 (205 ) 1,131 Other agricultural loans 312 (5 ) 124 431 State and political subdivision loans 833 - - 5 838 Unallocated 98 - - 214 312 Total $ 8,886 $ (184 ) $ 37 $ 1,240 $ 9,979 Balance at March 31, 2016 Charge-offs Recoveries Provision Balance at June 30, 2016 Real estate loans: Residential $ 966 $ (43 ) $ - $ 67 $ 990 Commercial 3,533 - 4 (199 ) 3,338 Agricultural 405 176 581 Construction 14 - - 4 18 Consumer 96 (23 ) 29 2 104 Other commercial loans 1,222 (18 ) - 112 1,316 Other agricultural loans 125 123 248 State and political subdivision loans 666 - - 98 764 Unallocated 248 - - (248 ) - Total $ 7,275 $ (84 ) $ 33 $ 135 $ 7,359 Balance at December 31, 2016 Charge-offs Recoveries Provision Balance at June 30, 2016 Real estate loans: Residential $ 905 $ (43 ) $ - $ 128 $ 990 Commercial 3,376 - 8 (46 ) 3,338 Agricultural 409 - 172 581 Construction 24 - - (6 ) 18 Consumer 102 (38 ) 68 (28 ) 104 Other commercial loans 1,183 (18 ) 6 145 1,316 Other agricultural loans 122 126 248 State and political subdivision loans 593 - - 171 764 Unallocated 392 - - (392 ) - Total $ 7,106 $ (99 ) $ 82 $ 270 $ 7,359 |
Goodwill and Other Intangible24
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 and December 31, 2016 (in thousands): June 30, 2017 December 31, 2016 Gross carrying value Accumulated amortization Net carrying value Gross carrying value Accumulated amortization Net carrying value Amortized intangible assets (1): MSRs $ 1,560 $ (878 ) $ 682 $ 1,471 $ (787 ) $ 684 Core deposit intangibles 1,641 (454 ) 1,187 1,641 (320 ) 1,321 Covenant not to compete 125 (49 ) 76 125 (34 ) 91 Total amortized intangible assets $ 3,326 $ (1,381 ) $ 1,945 $ 3,237 $ (1,141 ) $ 2,096 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, 2017. Future amortization expense may vary from these projections (in thousands): MSRs Core deposit intangibles Covenant not to compete Total Three months ended June 30, 2017 (actual) $ 45 $ 66 $ 7 $ 118 Six months ended June 30, 2017 (actual) $ 91 $ 134 $ 15 $ 240 Three months June 30, 2016 (actual) $ 44 $ 74 $ 8 $ 126 Six months June 30, 2016 (actual) $ 90 $ 148 $ 16 $ 254 Estimate for year ended December 31, Remaining 2017 95 132 16 243 2018 160 236 30 426 2019 127 206 30 363 2020 98 177 - 275 2021 73 147 - 220 |
Repurchase Agreements (Tables)
Repurchase Agreements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 2017 and D ecember 31, 2016 Remaining Contractual Maturity of the Agreements Overnight and Up to Greater than June 30, 2017 Continuous 30 Days 30 - 90 Days 90 days Total Repurchase Agreements: U.S. agency securities $ 18,161 $ - $ - $ 2,069 $ 20,230 Total carrying value of collateral pledged $ 18,161 $ - $ - $ 2,069 $ 20,230 Total liability recognized for repurchase agreements $ 15,577 Remaining Contractual Maturity of the Agreements Overnight and Up to Greater than December 31, 2016 Continuous 30 Days 30 - 90 Days 90 days Total Repurchase Agreements: U.S. agency securities $ 16,118 $ - $ - $ 2,059 $ 18,177 Total carrying value of collateral pledged $ 16,118 $ - $ - $ 2,059 $ 18,177 Total liability recognized for repurchase agreements $ 14,307 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 and 2016, respectively (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Service cost $ 84 $ 89 $ 175 $ 179 Interest cost 168 173 335 345 Expected return on plan assets (273 ) (260 ) (547 ) (520 ) Net amortization and deferral 52 60 112 121 Net periodic benefit cost $ 31 $ 62 $ 75 $ 125 |
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, 2017: Three months Six months Weighted Weighted Unvested Average Unvested Average Shares Market Price Shares Market Price Outstanding, beginning of period 8,459 $ 49.10 8,471 $ 49.10 Granted 4,062 53.46 4,212 53.38 Forfeited (43 ) (48.56 ) (43 ) (48.56 ) Vested (3,309 ) (50.14 ) (3,471 ) (50.19 ) Outstanding, end of period 9,169 $ 50.66 9,169 $ 50.66 |
Accumulated Comprehensive Inc27
Accumulated Comprehensive Income (loss) (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Accumulated Comprehensive Income (loss) [Abstract] | |
Changes in accumulated other comprehensive income by component, net of tax | The following tables present the changes in accumulated other comprehensive income (loss) by component net of tax for the three and six months ended June 30, 2017 and 2016 (in thousands): Three months ended June 30, 2017 Unrealized gain (loss) on available for sale securities Defined Benefit Pension Items Total Balance as of March 31, 2017 $ 1,238 $ (2,659 ) $ (1,421 ) Other comprehensive income (loss) before reclassifications (net of tax) 432 - 432 Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) (15 ) 35 20 Net current period other comprehensive income (loss) 417 35 452 Balance as of June 30, 2017 $ 1,655 $ (2,624 ) $ (969 ) Six months ended June 30, 2017 Unrealized gain (loss) on available for sale securities Defined Benefit Pension Items Total Balance as of December 31, 2016 $ 1,306 $ (2,698 ) $ (1,392 ) Other comprehensive income (loss) before reclassifications (net of tax) 478 - 478 Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) (129 ) 74 (55 ) Net current period other comprehensive income (loss) 349 74 423 Balance as of June 30, 2017 $ 1,655 $ (2,624 ) $ (969 ) Three months ended June 30, 2016 Unrealized gain (loss) on available for sale securities Defined Benefit Pension Items Total Balance as of March 31, 2016 $ 3,303 $ (2,400 ) $ 903 Other comprehensive income (loss) before reclassifications (net of tax) 1,184 - 1,184 Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) (84 ) 39 (45 ) Net current period other comprehensive income (loss) 1,100 39 1,139 Balance as of June 30, 2016 $ 4,403 $ (2,361 ) $ 2,042 Six months ended June 30, 2016 Unrealized gain (loss) on available for sale securities Defined Benefit Pension Items Total Balance as of December 31, 2015 $ 2,204 $ (2,440 ) $ (236 ) Other comprehensive income (loss) before reclassifications (net of tax) 2,301 - 2,301 Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) (102 ) 79 (23 ) Net current period other comprehensive income (loss) 2,199 79 2,278 Balance as of June 30, 2016 $ 4,403 $ (2,361 ) $ 2,042 |
Significant amounts reclassified out of each component of accumulated other comprehensive income | 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, 2017 and 2016 (in thousands): Details about accumulated other comprehensive income (loss) Amount reclassified from accumulated comprehensive income (loss) Affected line item in the Consolidated Statement of Income Three Months Ended June 30, 2017 2016 Unrealized gains and losses on available for sale securities $ 23 $ 128 Investment securities gains, net (8 ) (44 ) Provision for income taxes $ 15 $ 84 Defined benefit pension items $ (52 ) $ (60 ) Salaries and employee benefits 17 21 Provision for income taxes $ (35 ) $ (39 ) Total reclassifications, net $ (20 ) $ 45 Six Months Ended June 30, 2017 2016 Unrealized gains and losses on available for sale securities $ 195 $ 155 Investment securities gains, net (66 ) (53 ) Provision for income taxes $ 129 $ 102 Defined benefit pension items $ (112 ) $ (121 ) Salaries and employee benefits 38 42 Provision for income taxes $ (74 ) $ (79 ) Total reclassifications, net $ 55 $ 23 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 and December 31, 2016 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, 2017 Level I Level II Level III Total Fair value measurements on a recurring basis: Assets Securities available for sale: U.S. agency securities $ - $ 142,750 $ - $ 142,750 Obligations of state and political subdivisions - 86,216 - 86,216 Corporate obligations - 3,111 - 3,111 Mortgage-backed securities in government sponsored entities - 41,460 - 41,460 Equity securities in financial institutions 1,671 - - 1,671 December 31, 2016 Level I Level II Level III Total Fair value measurements on a recurring basis: Securities available for sale: U.S. agency securities $ - $ 170,414 $ - $ 170,414 U.S. treasury securities 3,000 - - 3,000 Obligations of state and political subdivisions - 96,926 - 96,926 Corporate obligations - 3,050 - 3,050 Mortgage-backed securities in government sponsored entities - 37,728 - 37,728 Equity securities in financial institutions 2,899 - - 2,899 |
Summary of assets measured at fair value on non-recurring basis | Assets measured at fair value on a nonrecurring basis as of June 30, 2017 and December 31, 2016 are included in the table below ( in thousands) June 30, 2017 Level I Level II Level III Total Impaired Loans $ - $ - $ 2,756 $ 2,756 Other real estate owned - - 1,102 1,102 December 31, 2016 Impaired Loans $ - $ - $ 2,033 $ 2,033 Other real estate owned - - 839 839 |
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 III Fair Value Measurements June 30, 2017 Fair Value Valuation Technique(s) Unobservable input Range Weighted average Impaired Loans $ 2,756 Appraised Collateral Values Discount for time since appraisal 0-100 % 27.23 % Selling costs 5%-9 % 7.59 % Holding period 0 - 24 months 11.8 months Other real estate owned 1,102 Appraised Collateral Values Discount for time since appraisal 12-47 % 21.75 % December 31, 2016 Fair Value Valuation Technique(s) Unobservable input Range Weighted average Impaired Loans 2,033 Appraised Collateral Values Discount for time since appraisal 0-65 % 28.98 % Selling costs 5%-9 % 7.56 % Holding period 6 - 12 months 11 months Other real estate owned 839 Appraised Collateral Values Discount for time since appraisal 10-67 % 25.45 % |
Fair value of financial instruments | The fair values of the Company's financial instruments are as follows (in thousands): Carrying June 30, 2017 Amount Fair Value Level I Level II Level III Financial assets: Cash and due from banks $ 19,362 $ 19,362 $ 19,362 $ - $ - Interest bearing time deposits with other banks 8,791 8,791 - - 8,791 Available-for-sale securities 275,208 275,208 1,671 273,537 Loans held for sale 393 393 393 Net loans 878,070 878,901 - - 878,901 Bank owned life insurance 26,556 26,556 26,556 - - Regulatory stock 4,490 4,490 4,490 - - Accrued interest receivable 3,697 3,697 3,697 - - Financial liabilities: Deposits $ 1,051,209 $ 1,049,833 $ 791,387 $ - $ 258,446 Borrowed funds 69,998 68,503 30,396 - 38,107 Accrued interest payable 628 628 628 - - December 31, 2016 Financial assets: Cash and due from banks $ 17,754 $ 17,754 $ 17,754 $ - $ - Interest bearing time deposits with other banks 6,955 6,960 - - 6,960 Available-for-sale securities 314,017 314,017 5,899 308,118 - Loans held for sale 1,827 1,827 1,827 Net loans 790,725 797,184 - - 797,184 Bank owned life insurance 26,223 26,223 26,223 - - Regulatory stock 5,306 5,306 5,306 - - Accrued interest receivable 4,089 4,089 4,089 - - Financial liabilities: Deposits $ 1,005,503 $ 1,004,072 $ 740,889 $ - $ 263,183 Borrowed funds 79,662 77,425 41,330 - 36,095 Accrued interest payable 720 720 720 - |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings per share basic and diluted [Abstract] | ||||
Net income applicable to common stock | $ 3,468 | $ 3,031 | $ 6,771 | $ 6,314 |
Basic earnings per share computation [Abstract] | ||||
Weighted average common shares outstanding (in shares) | 3,480,122 | 3,508,818 | 3,479,653 | 3,515,477 |
Earnings per share - basic (in dollars per share) | $ 1 | $ 0.86 | $ 1.95 | $ 1.80 |
Diluted earnings per share computation [Abstract] | ||||
Weighted average common shares outstanding for basic earnings per share (in shares) | 3,480,122 | 3,508,818 | 3,479,653 | 3,515,477 |
Add: Dilutive effects of restricted stock (in shares) | 1,188 | 409 | 610 | 205 |
Weighted average common shares outstanding for dilutive earnings per share (in shares) | 3,481,310 | 3,509,227 | 3,480,263 | 3,515,682 |
Earnings per share - diluted (in dollars per share) | $ 1 | $ 0.86 | $ 1.95 | $ 1.80 |
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) | 1,562,000 | 4,521,000 | 4,921,000 | 4,521,000 |
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) | $ 49.87 | $ 46.69 | $ 47.81 | $ 46.69 |
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, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)Partnership | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($)Partnership | |
Income Tax Expense [Abstract] | |||||
Number of investments in partnerships | Partnership | 4 | 4 | |||
Investment amount in partnerships | $ 631,000 | $ 631,000 | $ 700,000 | ||
Investment Tax Credit Carryforward [Member] | |||||
Tax Credit Carryforward [Line Items] | |||||
Investment tax credits | 775,000 | $ 775,000 | |||
Tax credits recognition period | 5 years 6 months | ||||
Tax credits recognized as reduction of tax expense amount | 35,000 | $ 49,000 | $ 70,000 | $ 99,000 | |
Amortization of investment in other expenses | $ 40,000 | $ 64,000 | $ 80,000 | $ 129,000 |
Investments (Details)
Investments (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017USD ($)Security | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)Security | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Available for Sale Securities Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value [Abstract] | |||||
Amortized cost | $ 272,701 | $ 272,701 | $ 312,039 | ||
Gross unrealized gains | 2,922 | 2,922 | 3,087 | ||
Gross unrealized losses | (415) | (415) | (1,109) | ||
Fair value | $ 275,208 | $ 275,208 | 314,017 | ||
Number of securities owned with fair value less than cost | Security | 63 | 63 | |||
Available-For-Sale Securities, Fair Value and Gross Unrealized Losses [Abstract] | |||||
Less than twelve months, Fair value | $ 79,694 | $ 79,694 | 106,062 | ||
Twelve months or greater, Fair value | 7,543 | 7,543 | 1,520 | ||
Total, Fair value | 87,237 | 87,237 | 107,582 | ||
Less than twelve months, Gross unrealized losses | (331) | (331) | (1,071) | ||
Twelve months or greater, Gross unrealized losses | (84) | (84) | (38) | ||
Total, Gross Unrealized Losses | (415) | (415) | (1,109) | ||
Proceeds from sale of securities available-for-sale | 6,641 | $ 7,057 | 25,407 | $ 12,077 | |
Realized investment gains (losses) [Abstract] | |||||
Gross gains | 30 | 128 | 202 | 155 | |
Gross losses | (7) | 0 | (7) | 0 | |
Net gains | 23 | $ 128 | 195 | $ 155 | |
Investment securities pledged as collateral | 233,400 | 233,400 | 206,300 | ||
Available-for-Sale Debt Securities, Amortized Cost [Abstract] | |||||
Due in one year or less | 46,659 | 46,659 | |||
Due after one year through five years | 130,797 | 130,797 | |||
Due after five years through ten years | 37,314 | 37,314 | |||
Due after ten years | 57,031 | 57,031 | |||
Total | 271,801 | 271,801 | |||
Available-for-Sale Debt Securities, Fair Value [Abstract] | |||||
Due in one year or less | 46,812 | 46,812 | |||
Due after one year through five years | 131,827 | 131,827 | |||
Due after five years through ten years | 37,598 | 37,598 | |||
Due after ten years | 57,300 | 57,300 | |||
Total | 273,537 | $ 273,537 | |||
Minimum [Member] | |||||
Available-For-Sale Securities, Fair Value and Gross Unrealized Losses [Abstract] | |||||
Duration securities impaired | 1 year | ||||
U.S. Agency Securities [Member] | |||||
Available for Sale Securities Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value [Abstract] | |||||
Amortized cost | 142,581 | $ 142,581 | 170,276 | ||
Gross unrealized gains | 315 | 315 | 407 | ||
Gross unrealized losses | (146) | (146) | (269) | ||
Fair value | 142,750 | 142,750 | 170,414 | ||
Available-For-Sale Securities, Fair Value and Gross Unrealized Losses [Abstract] | |||||
Less than twelve months, Fair value | 53,010 | 53,010 | 50,947 | ||
Twelve months or greater, Fair value | 995 | 995 | 0 | ||
Total, Fair value | 54,005 | 54,005 | 50,947 | ||
Less than twelve months, Gross unrealized losses | (142) | (142) | (269) | ||
Twelve months or greater, Gross unrealized losses | (4) | (4) | 0 | ||
Total, Gross Unrealized Losses | (146) | (146) | (269) | ||
U.S. Treasury Securities [Member] | |||||
Available for Sale Securities Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value [Abstract] | |||||
Amortized cost | 2,999 | ||||
Gross unrealized gains | 1 | ||||
Gross unrealized losses | 0 | ||||
Fair value | 3,000 | ||||
Obligations of State and Political Subdivisions [Member] | |||||
Available for Sale Securities Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value [Abstract] | |||||
Amortized cost | 84,731 | 84,731 | 95,956 | ||
Gross unrealized gains | 1,578 | 1,578 | 1,463 | ||
Gross unrealized losses | (93) | (93) | (493) | ||
Fair value | 86,216 | 86,216 | 96,926 | ||
Available-For-Sale Securities, Fair Value and Gross Unrealized Losses [Abstract] | |||||
Less than twelve months, Fair value | 7,811 | 7,811 | 28,398 | ||
Twelve months or greater, Fair value | 5,171 | 5,171 | 767 | ||
Total, Fair value | 12,982 | 12,982 | 29,165 | ||
Less than twelve months, Gross unrealized losses | (40) | (40) | (472) | ||
Twelve months or greater, Gross unrealized losses | (53) | (53) | (21) | ||
Total, Gross Unrealized Losses | (93) | (93) | (493) | ||
Corporate Obligations [Member] | |||||
Available for Sale Securities Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value [Abstract] | |||||
Amortized cost | 3,000 | 3,000 | 3,000 | ||
Gross unrealized gains | 111 | 111 | 50 | ||
Gross unrealized losses | 0 | 0 | 0 | ||
Fair value | 3,111 | 3,111 | 3,050 | ||
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 | 41,489 | 41,489 | 37,987 | ||
Gross unrealized gains | 147 | 147 | 88 | ||
Gross unrealized losses | (176) | (176) | (347) | ||
Fair value | 41,460 | 41,460 | 37,728 | ||
Available-For-Sale Securities, Fair Value and Gross Unrealized Losses [Abstract] | |||||
Less than twelve months, Fair value | 18,873 | 18,873 | 26,717 | ||
Twelve months or greater, Fair value | 1,377 | 1,377 | 753 | ||
Total, Fair value | 20,250 | 20,250 | 27,470 | ||
Less than twelve months, Gross unrealized losses | (149) | (149) | (330) | ||
Twelve months or greater, Gross unrealized losses | (27) | (27) | (17) | ||
Total, Gross Unrealized Losses | (176) | (176) | (347) | ||
Equity Securities in Financial Institutions [Member] | |||||
Available for Sale Securities Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value [Abstract] | |||||
Amortized cost | 900 | 900 | 1,821 | ||
Gross unrealized gains | 771 | 771 | 1,078 | ||
Gross unrealized losses | 0 | 0 | 0 | ||
Fair value | $ 1,671 | $ 1,671 | $ 2,899 |
Loans (Details)
Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Dec. 31, 2016 | |
Segments of loan portfolio and allowance for loan losses [Abstract] | ||||||
Total financing receivables | $ 888,049 | $ 799,611 | ||||
Individually evaluated for impairment | 25,034 | 17,693 | ||||
Loans acquired with deteriorated credit quality | 3,626 | 3,367 | ||||
Collectively evaluated for impairment | 859,389 | 778,551 | ||||
Allowance for loan losses | 9,979 | 8,886 | ||||
Allowance for loan losses related to individually evaluated for impairment | 457 | 487 | ||||
Allowance for loan losses related to loans acquired with deteriorated credit quality | 0 | 0 | ||||
Allowance for loan losses related to collectively evaluated for impairment | 9,522 | 8,399 | ||||
Net loans | 878,070 | 790,725 | ||||
Net loans, individually evaluated for impairment | 24,577 | 17,206 | ||||
Net loans, loans acquired with deteriorated credit quality | 3,626 | 3,367 | ||||
Net loans, collectively evaluated for impairment | 849,867 | 770,152 | ||||
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 | 457 | 487 | ||||
Collectively evaluated for impairment | 9,522 | 8,399 | ||||
Total | $ 9,979 | $ 7,275 | $ 8,886 | $ 7,106 | 9,979 | 8,886 |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Balance at beginning of period | 9,405 | 7,275 | 8,886 | 7,106 | ||
Charge-offs | (65) | (84) | (184) | (99) | ||
Recoveries | 14 | 33 | 37 | 82 | ||
Provision | 625 | 135 | 1,240 | 270 | ||
Balance at end of period | 9,979 | 7,359 | $ 9,979 | 7,359 | ||
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 | |||||
Commercial [Member] | ||||||
Segments of loan portfolio and allowance for loan losses [Abstract] | ||||||
Total financing receivables | 271,342 | 252,577 | ||||
Individually evaluated for impairment | 13,680 | 5,742 | ||||
Loans acquired with deteriorated credit quality | 1,989 | 1,969 | ||||
Collectively evaluated for impairment | 255,673 | 244,866 | ||||
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 | 58 | 45 | ||||
Collectively evaluated for impairment | 3,483 | 3,544 | ||||
Total | 3,541 | 3,533 | $ 3,541 | 3,376 | 3,541 | 3,589 |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Balance at beginning of period | 3,665 | 3,533 | 3,589 | 3,376 | ||
Charge-offs | 0 | 0 | (41) | 0 | ||
Recoveries | 2 | 4 | 6 | 8 | ||
Provision | (126) | (199) | (13) | (46) | ||
Balance at end of period | 3,541 | 3,338 | 3,541 | 3,338 | ||
Agricultural [Member] | ||||||
Segments of loan portfolio and allowance for loan losses [Abstract] | ||||||
Total financing receivables | 188,547 | 123,624 | ||||
Individually evaluated for impairment | 3,728 | 3,346 | ||||
Loans acquired with deteriorated credit quality | 734 | 738 | ||||
Collectively evaluated for impairment | 184,085 | 119,540 | ||||
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 | 95 | 54 | ||||
Collectively evaluated for impairment | 2,357 | 1,440 | ||||
Total | 2,452 | 405 | 1,494 | 409 | 2,452 | 1,494 |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Balance at beginning of period | 1,952 | 405 | 1,494 | 409 | ||
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Provision | 500 | 176 | 958 | 172 | ||
Balance at end of period | 2,452 | 581 | 2,452 | 581 | ||
Residential Real Estate Loans [Member] | ||||||
Segments of loan portfolio and allowance for loan losses [Abstract] | ||||||
Total financing receivables | 205,725 | 207,423 | ||||
Individually evaluated for impairment | 1,254 | 957 | ||||
Loans acquired with deteriorated credit quality | 35 | 35 | ||||
Collectively evaluated for impairment | 204,436 | 206,431 | ||||
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 | 77 | 32 | ||||
Collectively evaluated for impairment | 1,027 | 1,032 | ||||
Total | 1,104 | 966 | 1,064 | 905 | 1,104 | 1,064 |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Balance at beginning of period | 1,042 | 966 | 1,064 | 905 | ||
Charge-offs | (48) | (43) | (93) | (43) | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Provision | 110 | 67 | 133 | 128 | ||
Balance at end of period | 1,104 | 990 | 1,104 | 990 | ||
Construction Real Estate Loans [Member] | ||||||
Segments of loan portfolio and allowance for loan losses [Abstract] | ||||||
Total financing receivables | 25,569 | 25,441 | ||||
Individually evaluated for impairment | 0 | 0 | ||||
Loans acquired with deteriorated credit quality | 0 | 0 | ||||
Collectively evaluated for impairment | 25,569 | 25,441 | ||||
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 | 45 | 47 | ||||
Total | 45 | 14 | 45 | 24 | 45 | 47 |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Balance at beginning of period | 46 | 14 | 47 | 24 | ||
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Provision | (1) | 4 | (2) | (6) | ||
Balance at end of period | 45 | 18 | 45 | 18 | ||
Consumer [Member] | ||||||
Segments of loan portfolio and allowance for loan losses [Abstract] | ||||||
Total financing receivables | 10,603 | 11,005 | ||||
Individually evaluated for impairment | 4 | 0 | ||||
Loans acquired with deteriorated credit quality | 0 | 4 | ||||
Collectively evaluated for impairment | 10,599 | 11,001 | ||||
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 | 2 | 0 | ||||
Collectively evaluated for impairment | 123 | 122 | ||||
Total | 125 | 96 | 125 | 102 | 125 | 122 |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Balance at beginning of period | 123 | 96 | 122 | 102 | ||
Charge-offs | (17) | (23) | (45) | (38) | ||
Recoveries | 12 | 29 | 22 | 68 | ||
Provision | 7 | 2 | 26 | (28) | ||
Balance at end of period | 125 | 104 | 125 | 104 | ||
Other Commercial Loans [Member] | ||||||
Segments of loan portfolio and allowance for loan losses [Abstract] | ||||||
Total financing receivables | 56,952 | 58,639 | ||||
Individually evaluated for impairment | 4,902 | 5,994 | ||||
Loans acquired with deteriorated credit quality | 868 | 621 | ||||
Collectively evaluated for impairment | 51,182 | 52,024 | ||||
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 | 207 | 326 | ||||
Collectively evaluated for impairment | 924 | 1,001 | ||||
Total | 1,131 | 1,222 | 1,327 | 1,183 | 1,131 | 1,327 |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Balance at beginning of period | 1,215 | 1,222 | 1,327 | 1,183 | ||
Charge-offs | 0 | (18) | 0 | (18) | ||
Recoveries | 0 | 0 | 9 | 6 | ||
Provision | (84) | 112 | (205) | 145 | ||
Balance at end of period | 1,131 | 1,316 | 1,131 | 1,316 | ||
Other Agricultural Loans [Member] | ||||||
Segments of loan portfolio and allowance for loan losses [Abstract] | ||||||
Total financing receivables | 32,974 | 23,388 | ||||
Individually evaluated for impairment | 1,466 | 1,654 | ||||
Loans acquired with deteriorated credit quality | 0 | 0 | ||||
Collectively evaluated for impairment | 31,508 | 21,734 | ||||
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 | 18 | 30 | ||||
Collectively evaluated for impairment | 413 | 282 | ||||
Total | 431 | 125 | 312 | 122 | 431 | 312 |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Balance at beginning of period | 306 | 125 | 312 | 122 | ||
Charge-offs | 0 | 0 | (5) | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Provision | 125 | 123 | 124 | 126 | ||
Balance at end of period | 431 | 248 | 431 | 248 | ||
State and Political Subdivision Loans [Member] | ||||||
Segments of loan portfolio and allowance for loan losses [Abstract] | ||||||
Total financing receivables | 96,337 | 97,514 | ||||
Individually evaluated for impairment | 0 | 0 | ||||
Loans acquired with deteriorated credit quality | 0 | 0 | ||||
Collectively evaluated for impairment | 96,337 | 97,514 | ||||
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 | 838 | 833 | ||||
Total | 838 | 666 | 838 | 593 | 838 | 833 |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Balance at beginning of period | 824 | 666 | 833 | 593 | ||
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Provision | 14 | 98 | 5 | 171 | ||
Balance at end of period | 838 | 764 | 838 | 764 | ||
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 | 312 | 98 | ||||
Total | 312 | 248 | 98 | 392 | 312 | 98 |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Balance at beginning of period | 232 | 248 | 98 | 392 | ||
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Provision | 80 | (248) | 214 | (392) | ||
Balance at end of period | 312 | 0 | 312 | 0 | ||
First National Bank of Fredericksburg [Member] | ||||||
Changes in the accretable yield for purchased credit-impaired loans [Roll Forward] | ||||||
Balance at beginning of period | 275 | 551 | 389 | 637 | ||
Accretion | (108) | (87) | (222) | (173) | ||
Balance at end of period | $ 167 | $ 464 | $ 167 | $ 464 | ||
Loans acquired with specific evidence of deterioration in credit quality [Abstract] | ||||||
Outstanding balance | 6,660 | 6,487 | ||||
Carrying amount | $ 3,626 | $ 3,367 |
Loans, Impaired Financing Recei
Loans, Impaired Financing Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Impaired Financing Receivable [Abstract] | |||||
Unpaid Principal Balance | $ 27,990 | $ 27,990 | $ 20,127 | ||
Recorded Investment With No Allowance | 21,676 | 21,676 | 15,031 | ||
Recorded Investment With Allowance | 3,358 | 3,358 | 2,662 | ||
Total Recorded Investment | 25,034 | 25,034 | 17,693 | ||
Related Allowance | 457 | 457 | 487 | ||
Average Recorded Investment | 24,214 | $ 12,879 | 20,784 | $ 12,838 | |
Interest Income Recognized | 229 | 105 | 351 | 205 | |
Interest Income Recognized Cash Basis | 17 | 2 | 30 | 3 | |
Real Estate Loans [Member] | Mortgages [Member] | |||||
Impaired Financing Receivable [Abstract] | |||||
Unpaid Principal Balance | 1,246 | 1,246 | 953 | ||
Recorded Investment With No Allowance | 281 | 281 | 570 | ||
Recorded Investment With Allowance | 903 | 903 | 330 | ||
Total Recorded Investment | 1,184 | 1,184 | 900 | ||
Related Allowance | 67 | 67 | 22 | ||
Average Recorded Investment | 986 | 460 | 940 | 425 | |
Interest Income Recognized | 3 | 5 | 6 | 9 | |
Interest Income Recognized Cash Basis | 0 | 0 | 0 | 0 | |
Real Estate Loans [Member] | Home Equity [Member] | |||||
Impaired Financing Receivable [Abstract] | |||||
Unpaid Principal Balance | 70 | 70 | 57 | ||
Recorded Investment With No Allowance | 16 | 16 | 0 | ||
Recorded Investment With Allowance | 54 | 54 | 57 | ||
Total Recorded Investment | 70 | 70 | 57 | ||
Related Allowance | 10 | 10 | 10 | ||
Average Recorded Investment | 60 | 59 | 58 | 60 | |
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 | 16,037 | 16,037 | 7,958 | ||
Recorded Investment With No Allowance | 13,093 | 13,093 | 5,697 | ||
Recorded Investment With Allowance | 587 | 587 | 45 | ||
Total Recorded Investment | 13,680 | 13,680 | 5,742 | ||
Related Allowance | 58 | 58 | 45 | ||
Average Recorded Investment | 12,980 | 6,158 | 9,387 | 6,142 | |
Interest Income Recognized | 134 | 26 | 158 | 52 | |
Interest Income Recognized Cash Basis | 0 | 0 | 3 | 0 | |
Real Estate Loans [Member] | Agricultural [Member] | |||||
Impaired Financing Receivable [Abstract] | |||||
Unpaid Principal Balance | 3,744 | 3,744 | 3,347 | ||
Recorded Investment With No Allowance | 2,405 | 2,405 | 2,000 | ||
Recorded Investment With Allowance | 1,323 | 1,323 | 1,347 | ||
Total Recorded Investment | 3,728 | 3,728 | 3,347 | ||
Related Allowance | 95 | 95 | 54 | ||
Average Recorded Investment | 3,641 | 165 | 3,513 | 165 | |
Interest Income Recognized | 32 | 3 | 63 | 5 | |
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 | 4 | 4 | 0 | ||
Recorded Investment With No Allowance | 2 | 2 | 0 | ||
Recorded Investment With Allowance | 2 | 2 | 0 | ||
Total Recorded Investment | 4 | 4 | 0 | ||
Related Allowance | 2 | 2 | 0 | ||
Average Recorded Investment | 3 | 0 | 2 | 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 | 5,423 | 5,423 | 6,159 | ||
Recorded Investment With No Allowance | 4,431 | 4,431 | 5,135 | ||
Recorded Investment With Allowance | 471 | 471 | 859 | ||
Total Recorded Investment | 4,902 | 4,902 | 5,994 | ||
Related Allowance | 207 | 207 | 326 | ||
Average Recorded Investment | 5,029 | 5,933 | 5,313 | 5,942 | |
Interest Income Recognized | 37 | 68 | 77 | 134 | |
Interest Income Recognized Cash Basis | 17 | 2 | 27 | 3 | |
Other Agricultural Loans [Member] | |||||
Impaired Financing Receivable [Abstract] | |||||
Unpaid Principal Balance | 1,466 | 1,466 | 1,653 | ||
Recorded Investment With No Allowance | 1,448 | 1,448 | 1,629 | ||
Recorded Investment With Allowance | 18 | 18 | 24 | ||
Total Recorded Investment | 1,466 | 1,466 | 1,653 | ||
Related Allowance | 18 | 18 | 30 | ||
Average Recorded Investment | 1,515 | 104 | 1,571 | 104 | |
Interest Income Recognized | 22 | 2 | 45 | 3 | |
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 ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Financing Receivable by credit exposure [Abstract] | ||
Total | $ 216,328 | $ 218,428 |
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 | |
Amount over which all relationships to be reviewed | 1,000 | |
Amount which is 30 days past due to be reviewed for all aggregate loan relationships | 750 | |
Real Estate Loans [Member] | Commercial [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 271,342 | 252,577 |
Real Estate Loans [Member] | Agricultural [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 188,547 | 123,624 |
Real Estate Loans [Member] | Construction [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 25,569 | 25,441 |
Real Estate Loans [Member] | Mortgages [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 148,280 | 148,730 |
Real Estate Loans [Member] | Home Equity [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 57,445 | 58,693 |
Consumer [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 10,603 | 11,005 |
Other Commercial Loans [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 56,952 | 58,639 |
Other Agricultural Loans [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 32,974 | 23,388 |
State and Political Subdivision Loans [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 96,337 | 97,514 |
Pass [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 611,960 | 516,605 |
Pass [Member] | Real Estate Loans [Member] | Commercial [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 244,957 | 225,185 |
Pass [Member] | Real Estate Loans [Member] | Agricultural [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 176,551 | 110,785 |
Pass [Member] | Real Estate Loans [Member] | Construction [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 25,569 | 25,441 |
Pass [Member] | Other Commercial Loans [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 51,577 | 51,396 |
Pass [Member] | Other Agricultural Loans [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 30,641 | 20,178 |
Pass [Member] | State and Political Subdivision Loans [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 82,665 | 83,620 |
Special Mention [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 23,099 | 39,124 |
Special Mention [Member] | Real Estate Loans [Member] | Commercial [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 13,913 | 14,045 |
Special Mention [Member] | Real Estate Loans [Member] | Agricultural [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 5,457 | 8,231 |
Special Mention [Member] | Real Estate Loans [Member] | Construction [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 0 | 0 |
Special Mention [Member] | Other Commercial Loans [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 608 | 2,049 |
Special Mention [Member] | Other Agricultural Loans [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 195 | 1,733 |
Special Mention [Member] | State and Political Subdivision Loans [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 2,926 | 13,066 |
Substandard [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 36,579 | 25,365 |
Substandard [Member] | Real Estate Loans [Member] | Commercial [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 12,472 | 13,347 |
Substandard [Member] | Real Estate Loans [Member] | Agricultural [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 6,539 | 4,608 |
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 | 4,684 | 5,105 |
Substandard [Member] | Other Agricultural Loans [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 2,138 | 1,477 |
Substandard [Member] | State and Political Subdivision Loans [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 10,746 | 828 |
Doubtful [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 83 | 89 |
Doubtful [Member] | Real Estate Loans [Member] | Commercial [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 0 | 0 |
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 | 83 | 89 |
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 | 671,721 | 581,183 |
Performing [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 214,451 | 216,377 |
Performing [Member] | Real Estate Loans [Member] | Mortgages [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 146,736 | 147,047 |
Performing [Member] | Real Estate Loans [Member] | Home Equity [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 57,256 | 58,438 |
Performing [Member] | Consumer [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 10,459 | 10,892 |
Nonperforming [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 1,842 | 2,012 |
Nonperforming [Member] | Real Estate Loans [Member] | Mortgages [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 1,509 | 1,648 |
Nonperforming [Member] | Real Estate Loans [Member] | Home Equity [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 189 | 255 |
Nonperforming [Member] | Consumer [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 144 | 109 |
PCI [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 35 | 39 |
PCI [Member] | Real Estate Loans [Member] | Mortgages [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 35 | 35 |
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 | $ 0 | $ 4 |
Loans, Past Due (Details)
Loans, Past Due (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Recorded investment of past due [Abstract] | ||
Total past due | $ 13,200 | $ 14,133 |
Current | 871,223 | 782,111 |
PCI | 3,626 | 3,367 |
Total financing receivables | 888,049 | 799,611 |
90 Days or greater and accruing | 812 | 405 |
Financing receivables on nonaccrual status [Abstract] | ||
Total past due and non-accrual | 9,461 | 10,729 |
Current and non-accrual | 2,050 | 725 |
PCI Loans considered non accrual | 0 | 0 |
Financing receivable nonaccrual status | 11,511 | 11,454 |
Financing receivables on accrual status [Abstract] | ||
Total past due and still accruing | 3,739 | 3,404 |
Current and still accruing | 869,173 | 781,386 |
PCI Loans still accruing | 3,626 | 3,367 |
Total financing receivables and still accruing | $ 876,538 | 788,157 |
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 | $ 2,595 | 3,024 |
Financing receivables on nonaccrual status [Abstract] | ||
Total past due and non-accrual | 144 | 172 |
Financing receivables on accrual status [Abstract] | ||
Total past due and still accruing | 2,451 | 2,852 |
60 to 89 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 575 | 252 |
Financing receivables on nonaccrual status [Abstract] | ||
Total past due and non-accrual | 99 | 105 |
Financing receivables on accrual status [Abstract] | ||
Total past due and still accruing | 476 | 147 |
90 Days Or Greater [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 10,030 | 10,857 |
Financing receivables on nonaccrual status [Abstract] | ||
Total past due and non-accrual | 9,218 | 10,452 |
Financing receivables on accrual status [Abstract] | ||
Total past due and still accruing | 812 | 405 |
Commercial [Member] | ||
Recorded investment of past due [Abstract] | ||
Total financing receivables | 271,342 | 252,577 |
Agricultural [Member] | ||
Recorded investment of past due [Abstract] | ||
Total financing receivables | 188,547 | 123,624 |
Real Estate Loans [Member] | Mortgages [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 1,267 | 1,775 |
Current | 146,978 | 146,920 |
PCI | 35 | 35 |
Total financing receivables | 148,280 | 148,730 |
90 Days or greater and accruing | 0 | 173 |
Financing receivables on nonaccrual status [Abstract] | ||
Financing receivable nonaccrual status | 1,509 | 1,475 |
Real Estate Loans [Member] | Mortgages [Member] | 30 to 59 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 223 | 630 |
Real Estate Loans [Member] | Mortgages [Member] | 60 to 89 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 165 | 36 |
Real Estate Loans [Member] | Mortgages [Member] | 90 Days Or Greater [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 879 | 1,109 |
Real Estate Loans [Member] | Home Equity [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 384 | 642 |
Current | 57,061 | 58,051 |
PCI | 0 | 0 |
Total financing receivables | 57,445 | 58,693 |
90 Days or greater and accruing | 43 | 160 |
Financing receivables on nonaccrual status [Abstract] | ||
Financing receivable nonaccrual status | 146 | 95 |
Real Estate Loans [Member] | Home Equity [Member] | 30 to 59 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 280 | 384 |
Real Estate Loans [Member] | Home Equity [Member] | 60 to 89 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 8 | 49 |
Real Estate Loans [Member] | Home Equity [Member] | 90 Days Or Greater [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 96 | 209 |
Real Estate Loans [Member] | Commercial [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 5,910 | 6,117 |
Current | 263,443 | 244,491 |
PCI | 1,989 | 1,969 |
Total financing receivables | 271,342 | 252,577 |
90 Days or greater and accruing | 553 | 0 |
Financing receivables on nonaccrual status [Abstract] | ||
Financing receivable nonaccrual status | 4,588 | 4,445 |
Real Estate Loans [Member] | Commercial [Member] | 30 to 59 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 1,219 | 1,757 |
Real Estate Loans [Member] | Commercial [Member] | 60 to 89 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 302 | 58 |
Real Estate Loans [Member] | Commercial [Member] | 90 Days Or Greater [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 4,389 | 4,302 |
Real Estate Loans [Member] | Agricultural [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 1,717 | 1,145 |
Current | 186,096 | 121,741 |
PCI | 734 | 738 |
Total financing receivables | 188,547 | 123,624 |
90 Days or greater and accruing | 159 | 0 |
Financing receivables on nonaccrual status [Abstract] | ||
Financing receivable nonaccrual status | 1,314 | 1,340 |
Real Estate Loans [Member] | Agricultural [Member] | 30 to 59 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 454 | 0 |
Real Estate Loans [Member] | Agricultural [Member] | 60 to 89 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 100 | 0 |
Real Estate Loans [Member] | Agricultural [Member] | 90 Days Or Greater [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 1,163 | 1,145 |
Real Estate Loans [Member] | Construction [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 0 | 0 |
Current | 25,569 | 25,441 |
PCI | 0 | 0 |
Total financing receivables | 25,569 | 25,441 |
90 Days or greater and accruing | 0 | 0 |
Financing receivables on nonaccrual status [Abstract] | ||
Financing receivable nonaccrual status | 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 | 235 | 238 |
Current | 10,368 | 10,763 |
PCI | 0 | 4 |
Total financing receivables | 10,603 | 11,005 |
90 Days or greater and accruing | 57 | 67 |
Financing receivables on nonaccrual status [Abstract] | ||
Financing receivable nonaccrual status | 87 | 42 |
Consumer [Member] | 30 to 59 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 91 | 115 |
Consumer [Member] | 60 to 89 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 0 | 40 |
Consumer [Member] | 90 Days Or Greater [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 144 | 83 |
Other Commercial Loans [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 2,665 | 4,134 |
Current | 53,419 | 53,884 |
PCI | 868 | 621 |
Total financing receivables | 56,952 | 58,639 |
90 Days or greater and accruing | 0 | 0 |
Financing receivables on nonaccrual status [Abstract] | ||
Financing receivable nonaccrual status | 3,128 | 4,057 |
Other Commercial Loans [Member] | 30 to 59 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 45 | 95 |
Other Commercial Loans [Member] | 60 to 89 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 0 | 35 |
Other Commercial Loans [Member] | 90 Days Or Greater [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 2,620 | 4,004 |
Other Agricultural Loans [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 1,022 | 82 |
Current | 31,952 | 23,306 |
PCI | 0 | 0 |
Total financing receivables | 32,974 | 23,388 |
90 Days or greater and accruing | 0 | 5 |
Financing receivables on nonaccrual status [Abstract] | ||
Financing receivable nonaccrual status | 739 | 0 |
Other Agricultural Loans [Member] | 30 to 59 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 283 | 43 |
Other Agricultural Loans [Member] | 60 to 89 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 0 | 34 |
Other Agricultural Loans [Member] | 90 Days Or Greater [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 739 | 5 |
State and Political Subdivision Loans [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 0 | 0 |
Current | 96,337 | 97,514 |
PCI | 0 | 0 |
Total financing receivables | 96,337 | 97,514 |
90 Days or greater and accruing | 0 | 0 |
Financing receivables on nonaccrual status [Abstract] | ||
Financing receivable nonaccrual status | 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) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017USD ($)Contract | Jun. 30, 2016USD ($)Contract | Jun. 30, 2017USD ($)Contract | Jun. 30, 2016USD ($)Contract | Dec. 31, 2016USD ($) | |
Loans [Abstract] | |||||
Reserves of allowance for loan losses | $ 26 | $ 26 | $ 29 | ||
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 | $ 1,194 | $ 1,194 | $ 1,036 | ||
Interest Modification [Member] | |||||
Financing receivable modifications [Abstract] | |||||
Number of contracts | Contract | 0 | 0 | 0 | 0 | |
Pre-modification outstanding recorded investment | $ 0 | $ 0 | $ 0 | $ 0 | |
Post-modification outstanding recorded investment | $ 0 | $ 0 | $ 0 | $ 0 | |
Term Modification [Member] | |||||
Financing receivable modifications [Abstract] | |||||
Number of contracts | Contract | 5 | 3 | 7 | 3 | |
Pre-modification outstanding recorded investment | $ 6,093 | $ 438 | $ 6,797 | $ 438 | |
Post-modification outstanding recorded investment | $ 6,093 | $ 438 | $ 6,797 | $ 438 | |
Real Estate Loans [Member] | Commercial [Member] | Interest Modification [Member] | |||||
Financing receivable modifications [Abstract] | |||||
Number of contracts | Contract | 0 | 0 | 0 | 0 | |
Pre-modification outstanding recorded investment | $ 0 | $ 0 | $ 0 | $ 0 | |
Post-modification outstanding recorded investment | $ 0 | $ 0 | $ 0 | $ 0 | |
Real Estate Loans [Member] | Commercial [Member] | Term Modification [Member] | |||||
Financing receivable modifications [Abstract] | |||||
Number of contracts | Contract | 5 | 3 | 7 | 3 | |
Pre-modification outstanding recorded investment | $ 6,093 | $ 438 | $ 6,797 | $ 438 | |
Post-modification outstanding recorded investment | 6,093 | $ 438 | 6,797 | $ 438 | |
Consumer Residential Mortgages [Member] | |||||
Foreclosed assets held for sale [Abstract] | |||||
Foreclosed assets held for sale | 268 | 268 | |||
Formal foreclosure proceedings on potential foreclosure assets | $ 936 | $ 936 |
Goodwill and Other Intangible37
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | ||
Amortized intangible assets [Abstract] | ||||||
Gross carrying value | [1] | $ 3,326 | $ 3,326 | $ 3,237 | ||
Accumulated amortization | [1] | (1,381) | (1,381) | (1,141) | ||
Net carrying value | [1] | 1,945 | 1,945 | 2,096 | ||
Unamortized intangible assets [Abstract] | ||||||
Goodwill | 21,089 | 21,089 | 21,089 | |||
Actual and Estimated Future Amortization Expense [Abstract] | ||||||
Amortization expense | 118 | $ 126 | 240 | $ 254 | ||
Estimated Amortization Expense [Abstract] | ||||||
Remaining 2,017 | 243 | 243 | ||||
2,018 | 426 | 426 | ||||
2,019 | 363 | 363 | ||||
2,020 | 275 | 275 | ||||
2,021 | 220 | 220 | ||||
MSRs [Member] | ||||||
Amortized intangible assets [Abstract] | ||||||
Gross carrying value | [1] | 1,560 | 1,560 | 1,471 | ||
Accumulated amortization | [1] | (878) | (878) | (787) | ||
Net carrying value | [1] | 682 | 682 | 684 | ||
Actual and Estimated Future Amortization Expense [Abstract] | ||||||
Amortization expense | 45 | 44 | 91 | 90 | ||
Estimated Amortization Expense [Abstract] | ||||||
Remaining 2,017 | 95 | 95 | ||||
2,018 | 160 | 160 | ||||
2,019 | 127 | 127 | ||||
2,020 | 98 | 98 | ||||
2,021 | 73 | 73 | ||||
Core Deposit Intangibles [Member] | ||||||
Amortized intangible assets [Abstract] | ||||||
Gross carrying value | [1] | 1,641 | 1,641 | 1,641 | ||
Accumulated amortization | [1] | (454) | (454) | (320) | ||
Net carrying value | [1] | 1,187 | 1,187 | 1,321 | ||
Actual and Estimated Future Amortization Expense [Abstract] | ||||||
Amortization expense | 66 | 74 | 134 | 148 | ||
Estimated Amortization Expense [Abstract] | ||||||
Remaining 2,017 | 132 | 132 | ||||
2,018 | 236 | 236 | ||||
2,019 | 206 | 206 | ||||
2,020 | 177 | 177 | ||||
2,021 | 147 | 147 | ||||
Covenant not to Compete [Member] | ||||||
Amortized intangible assets [Abstract] | ||||||
Gross carrying value | [1] | 125 | 125 | 125 | ||
Accumulated amortization | [1] | (49) | (49) | (34) | ||
Net carrying value | [1] | 76 | 76 | $ 91 | ||
Actual and Estimated Future Amortization Expense [Abstract] | ||||||
Amortization expense | 7 | $ 8 | 15 | $ 16 | ||
Estimated Amortization Expense [Abstract] | ||||||
Remaining 2,017 | 16 | 16 | ||||
2,018 | 30 | 30 | ||||
2,019 | 30 | 30 | ||||
2,020 | 0 | 0 | ||||
2,021 | $ 0 | $ 0 | ||||
[1] | Excludes fully amortized intangible assets |
Federal Home Loan Bank Stock (D
Federal Home Loan Bank Stock (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Federal Home Loan Bank Stock [Abstract] | ||
Federal home loan bank stock | $ 3,725,800 | $ 4,542,000 |
FHLB Stock, at par value (in dollars per share) | $ 100 |
Repurchase Agreements (Details)
Repurchase Agreements (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total carrying value of collateral pledged | $ 20,230 | $ 18,177 |
Total liability recognized for repurchase agreements | 15,577 | 14,307 |
U.S. Agency Securities [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total carrying value of collateral pledged | 20,230 | 18,177 |
Overnight and Continuous [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total carrying value of collateral pledged | 18,161 | 16,118 |
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 | 18,161 | 16,118 |
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 | 2,069 | 2,059 |
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 | $ 2,069 | $ 2,059 |
Employee Benefit Plans, Noncont
Employee Benefit Plans, Noncontributory Defined Benefit Pension Plan (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)Plan | Jun. 30, 2016USD ($) | |
Employee Benefit Plans [Abstract] | ||||
Number of plans | Plan | 2 | |||
Pension Plan [Member] | ||||
Components of net periodic benefit cost [Abstract] | ||||
Service cost | $ 84 | $ 89 | $ 175 | $ 179 |
Interest cost | 168 | 173 | 335 | 345 |
Expected return on plan assets | (273) | (260) | (547) | (520) |
Net amortization and deferral | 52 | 60 | 112 | 121 |
Net periodic benefit cost | $ 31 | $ 62 | 75 | $ 125 |
Employer contributions | $ 400 |
Employee Benefit Plans, Defined
Employee Benefit Plans, Defined Contribution Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Defined Contribution Plan [Abstract] | ||||
Employer contribution to 401 (k) defined contribution plan | $ 108 | $ 97 | $ 207 | $ 180 |
Employee Benefit Plans, Directo
Employee Benefit Plans, Directors' Deferred Compensation Plan (Details) - Directors [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||||
Deferred compensation liability | $ 914 | $ 914 | $ 940 | ||
Deferred interest expense | $ 4 | $ 4 | $ 9 | $ 8 |
Employee Benefit Plans, Restric
Employee Benefit Plans, Restricted Stock Plan (Details) - Restricted Stock [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized (in shares) | 150,000 | 150,000 | ||
Number of shares available for grant (in shares) | 141,678 | 141,678 | ||
Unvested Shares [Roll Forward] | ||||
Outstanding, beginning of period (in shares) | 8,459 | 8,471 | ||
Granted (in shares) | 4,062 | 4,212 | ||
Forfeited (in shares) | (43) | (43) | ||
Vested (in shares) | (3,309) | (3,471) | ||
Outstanding, end of period (in shares) | 9,169 | 9,169 | ||
Weighted Average Market Price [Roll Forward] | ||||
Outstanding, beginning of period (in dollars per share) | $ 49.10 | $ 49.10 | ||
Granted (in dollars per share) | 53.46 | 53.38 | ||
Forfeited (in dollars per share) | (48.56) | (48.56) | ||
Vested (in dollars per share) | (50.14) | (50.19) | ||
Outstanding, end of period (in dollars per share) | $ 50.66 | $ 50.66 | ||
Additional General Disclosures [Abstract] | ||||
Share-based compensation expense | $ 54 | $ 45 | $ 104 | $ 92 |
Compensation cost related to nonvested awards that has not yet been recognized | $ 464 | $ 464 | ||
Period over which compensation cost is expected to be recognized | 3 years |
Employee Benefit Plans, Other P
Employee Benefit Plans, Other Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Supplemental Executive Retirement Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Obligation included in other liabilities | $ 1,516 | $ 1,516 | $ 1,460 | ||
Cost recognized | 28 | $ 31 | 56 | $ 61 | |
Salary Continuation Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Obligation included in other liabilities | 720 | 720 | 720 | ||
Cost recognized | 14 | $ 16 | 27 | $ 32 | |
Continuation of Life Insurance Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Obligation included in other liabilities | $ 574 | $ 574 | $ 569 |
Accumulated Comprehensive Inc45
Accumulated Comprehensive Income (loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | $ 123,268 | |||
Other comprehensive income (loss) before reclassifications (net of tax) | $ 432 | $ 1,184 | 478 | $ 2,301 |
Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) | 20 | (45) | (55) | (23) |
Other comprehensive income, net of tax | 452 | 1,139 | 423 | 2,278 |
Ending Balance | 127,770 | 127,770 | ||
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (1,421) | 903 | (1,392) | (236) |
Ending Balance | (969) | 2,042 | (969) | 2,042 |
Unrealized Gain (Loss) on Available for Sale Securities [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | 1,238 | 3,303 | 1,306 | 2,204 |
Other comprehensive income (loss) before reclassifications (net of tax) | 432 | 1,184 | 478 | 2,301 |
Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) | (15) | (84) | (129) | (102) |
Other comprehensive income, net of tax | 417 | 1,100 | 349 | 2,199 |
Ending Balance | 1,655 | 4,403 | 1,655 | 4,403 |
Defined Benefit Pension Items [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (2,659) | (2,400) | (2,698) | (2,440) |
Other comprehensive income (loss) before reclassifications (net of tax) | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) | 35 | 39 | 74 | 79 |
Other comprehensive income, net of tax | 35 | 39 | 74 | 79 |
Ending Balance | $ (2,624) | $ (2,361) | $ (2,624) | $ (2,361) |
Accumulated Comprehensive Inc46
Accumulated Comprehensive Income (loss), Reclassification (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Investment securities gains, net | $ 23 | $ 128 | $ 195 | $ 155 |
Salaries and employee benefits | (4,324) | (3,900) | (8,643) | (7,782) |
Provision for income taxes | (1,033) | (687) | (1,956) | (1,478) |
NET INCOME | 3,468 | 3,031 | 6,771 | 6,314 |
Amount Reclassified from Accumulated Comprehensive Income (Loss) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
NET INCOME | (20) | 45 | 55 | 23 |
Unrealized Gains and Losses on Available for Sale Securities [Member] | Amount Reclassified from Accumulated Comprehensive Income (Loss) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Investment securities gains, net | 23 | 128 | 195 | 155 |
Provision for income taxes | (8) | (44) | (66) | (53) |
NET INCOME | 15 | 84 | 129 | 102 |
Defined Benefit Pension Items [Member] | Amount Reclassified from Accumulated Comprehensive Income (Loss) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Salaries and employee benefits | (52) | (60) | (112) | (121) |
Provision for income taxes | 17 | 21 | 38 | 42 |
NET INCOME | $ (35) | $ (39) | $ (74) | $ (79) |
Fair Value Measurements, Measur
Fair Value Measurements, Measured On A Recurring And Nonrecurring Basis (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Fair value assets and liabilities measured on non-recurring basis [Abstract] | ||
Impaired loans, estimated selling cost | $ 185 | $ 188 |
Recurring [Member] | ||
Securities available for sale [Abstract] | ||
U.S. agency securities | 142,750 | 170,414 |
U.S. treasuries securities | 3,000 | |
Obligations of state and political subdivisions | 86,216 | 96,926 |
Corporate obligations | 3,111 | 3,050 |
Mortgage-backed securities in government sponsored entities | 41,460 | 37,728 |
Equity securities in financial institutions | 1,671 | 2,899 |
Recurring [Member] | Level I [Member] | ||
Securities available for sale [Abstract] | ||
U.S. agency securities | 0 | 0 |
U.S. treasuries securities | 3,000 | |
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 | 1,671 | 2,899 |
Recurring [Member] | Level II [Member] | ||
Securities available for sale [Abstract] | ||
U.S. agency securities | 142,750 | 170,414 |
U.S. treasuries securities | 0 | |
Obligations of state and political subdivisions | 86,216 | 96,926 |
Corporate obligations | 3,111 | 3,050 |
Mortgage-backed securities in government sponsored entities | 41,460 | 37,728 |
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 | |
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 | 2,756 | 2,033 |
Other real estate owned | 1,102 | 839 |
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 | 2,756 | 2,033 |
Other real estate owned | $ 1,102 | $ 839 |
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, 2017 | Dec. 31, 2016 | |
Impaired Loans [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 2,756 | $ 2,033 |
Valuation Technique(s) | Appraised Collateral Values | Appraised Collateral Values |
Impaired Loans [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount for time since appraisal | 0.00% | 0.00% |
Selling costs | 5.00% | 5.00% |
Holding period | 0 months | 6 months |
Impaired Loans [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount for time since appraisal | 100.00% | 65.00% |
Selling costs | 9.00% | 9.00% |
Holding period | 24 months | 12 months |
Impaired Loans [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount for time since appraisal | 27.23% | 28.98% |
Selling costs | 7.59% | 7.56% |
Holding period | 11 months 24 days | 11 months |
Other Real Estate Owned [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 1,102 | $ 839 |
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 for time since appraisal | 12.00% | 10.00% |
Other Real Estate Owned [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount for time since appraisal | 47.00% | 67.00% |
Other Real Estate Owned [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount for time since appraisal | 21.75% | 25.45% |
Fair Value Measurements, By Bal
Fair Value Measurements, By Balance Sheet Grouping (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Financial assets [Abstract] | ||
Interest bearing time deposits with other banks | $ 8,791 | $ 6,955 |
Available-for-sale securities | $ 275,208 | 314,017 |
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 | $ 19,362 | 17,754 |
Interest bearing time deposits with other banks | 0 | 0 |
Available-for-sale securities | 1,671 | 5,899 |
Loans held for sale | 393 | 1,827 |
Net loans | 0 | 0 |
Bank owned life insurance | 26,556 | 26,223 |
Regulatory stock | 4,490 | 5,306 |
Accrued interest receivable | 3,697 | 4,089 |
Financial liabilities [Abstract] | ||
Deposits | 791,387 | 740,889 |
Borrowed funds | 30,396 | 41,330 |
Accrued interest payable | 628 | 720 |
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 | 273,537 | 308,118 |
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 | 8,791 | 6,960 |
Available-for-sale securities | 0 | |
Net loans | 878,901 | 797,184 |
Bank owned life insurance | 0 | 0 |
Regulatory stock | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities [Abstract] | ||
Deposits | 258,446 | 263,183 |
Borrowed funds | 38,107 | 36,095 |
Accrued interest payable | 0 | |
Carrying Amount [Member] | ||
Financial assets [Abstract] | ||
Cash and due from banks | 19,362 | 17,754 |
Interest bearing time deposits with other banks | 8,791 | 6,955 |
Available-for-sale securities | 275,208 | 314,017 |
Loans held for sale | 393 | 1,827 |
Net loans | 878,070 | 790,725 |
Bank owned life insurance | 26,556 | 26,223 |
Regulatory stock | 4,490 | 5,306 |
Accrued interest receivable | 3,697 | 4,089 |
Financial liabilities [Abstract] | ||
Deposits | 1,051,209 | 1,005,503 |
Borrowed funds | 69,998 | 79,662 |
Accrued interest payable | 628 | 720 |
Fair Value [Member] | ||
Financial assets [Abstract] | ||
Cash and due from banks | 19,362 | 17,754 |
Interest bearing time deposits with other banks | 8,791 | 6,960 |
Available-for-sale securities | 275,208 | 314,017 |
Loans held for sale | 393 | 1,827 |
Net loans | 878,901 | 797,184 |
Bank owned life insurance | 26,556 | 26,223 |
Regulatory stock | 4,490 | 5,306 |
Accrued interest receivable | 3,697 | 4,089 |
Financial liabilities [Abstract] | ||
Deposits | 1,049,833 | 1,004,072 |
Borrowed funds | 68,503 | 77,425 |
Accrued interest payable | $ 628 | $ 720 |