Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 02, 2018 | |
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 | 3,512,653 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 |
CONSOLIDATED BALANCE SHEET (UNA
CONSOLIDATED BALANCE SHEET (UNAUDITED) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Cash and due from banks: | ||
Noninterest-bearing | $ 14,521 | $ 16,347 |
Interest-bearing | 1,092 | 2,170 |
Total cash and cash equivalents | 15,613 | 18,517 |
Interest bearing time deposits with other banks | 13,762 | 10,283 |
Equity securities | 195 | 0 |
Available-for-sale securities | 250,025 | 254,782 |
Loans held for sale | 1,931 | 1,439 |
Loans (net of allowance for loan losses: 2018, $11,941 and 2017, $11,190) | 1,028,259 | 989,335 |
Premises and equipment | 16,289 | 16,523 |
Accrued interest receivable | 4,285 | 4,196 |
Goodwill | 23,296 | 23,296 |
Bank owned life insurance | 27,189 | 26,883 |
Other intangibles | 1,756 | 1,953 |
Other assets | 14,994 | 14,679 |
TOTAL ASSETS | 1,397,594 | 1,361,886 |
Deposits: | ||
Noninterest-bearing | 169,014 | 171,840 |
Interest-bearing | 949,578 | 933,103 |
Total deposits | 1,118,592 | 1,104,943 |
Borrowed funds | 133,652 | 114,664 |
Accrued interest payable | 903 | 897 |
Other liabilities | 12,166 | 12,371 |
TOTAL LIABILITIES | 1,265,313 | 1,232,875 |
STOCKHOLDERS' EQUITY: | ||
Preferred Stock $1.00 par value; authorized 3,000,000 shares at June 30, 2018 and December 31, 2017; none issued in 2018 or 2017 | 0 | 0 |
Common stock $1.00 par value; authorized 25,000,000 shares at June 30 2018 and 15,000,000 at December 31, 2017; issued 3,904,212 at June 30, 2018 and 3,869,939 at December 31, 2017 | 3,904 | 3,870 |
Additional paid-in capital | 53,098 | 51,108 |
Retained earnings | 93,717 | 89,982 |
Accumulated other comprehensive loss | (5,357) | (3,398) |
Treasury stock, at cost: 391,559 shares at June 30, 2018 and 383,065 shares at December 31, 2017 | (13,081) | (12,551) |
TOTAL STOCKHOLDERS' EQUITY | 132,281 | 129,011 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,397,594 | $ 1,361,886 |
CONSOLIDATED BALANCE SHEET (UN3
CONSOLIDATED BALANCE SHEET (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
ASSETS: | ||
Loans, allowance for loan losses | $ 11,941 | $ 11,190 |
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) | 25,000,000 | 15,000,000 |
Common Stock, issued (in shares) | 3,904,212 | 3,869,939 |
Treasury stock, shares (in shares) | 391,559 | 383,065 |
CONSOLIDATED STATEMENT OF INCOM
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
INTEREST INCOME: | ||||
Interest and fees on loans | $ 12,461 | $ 10,304 | $ 24,322 | $ 20,021 |
Interest-bearing deposits with banks | 66 | 45 | 124 | 80 |
Investment securities: | ||||
Taxable | 916 | 775 | 1,716 | 1,579 |
Nontaxable | 474 | 601 | 1,001 | 1,269 |
Dividends | 111 | 53 | 248 | 129 |
TOTAL INTEREST INCOME | 14,028 | 11,778 | 27,411 | 23,078 |
INTEREST EXPENSE: | ||||
Deposits | 1,585 | 1,143 | 2,901 | 2,188 |
Borrowed funds | 692 | 231 | 1,339 | 489 |
TOTAL INTEREST EXPENSE | 2,277 | 1,374 | 4,240 | 2,677 |
NET INTEREST INCOME | 11,751 | 10,404 | 23,171 | 20,401 |
Provision for loan losses | 325 | 625 | 825 | 1,240 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 11,426 | 9,779 | 22,346 | 19,161 |
Non Interest Income [Abstract] | ||||
Revenue from customers | 1,566 | 3,187 | ||
Gains on loans sold | 60 | 148 | 132 | 249 |
Equity security gains, net | 7 | 0 | 13 | 0 |
Available for sale security gains, net | 0 | 23 | 0 | 195 |
Earnings on bank owned life insurance | 154 | 167 | 306 | 333 |
Other | 133 | 128 | 273 | 254 |
TOTAL NON-INTEREST INCOME | 1,842 | 1,888 | 3,748 | 3,923 |
NON-INTEREST EXPENSES: | ||||
Salaries and employee benefits | 4,737 | 4,377 | 9,572 | 8,743 |
Occupancy | 514 | 477 | 1,106 | 1,004 |
Furniture and equipment | 122 | 146 | 264 | 285 |
Professional fees | 262 | 258 | 557 | 568 |
FDIC insurance | 107 | 95 | 207 | 200 |
Pennsylvania shares tax | 300 | 243 | 600 | 524 |
Amortization of intangibles | 74 | 73 | 150 | 149 |
Other real estate owned expenses | 157 | 82 | 295 | 172 |
Other | 1,429 | 1,415 | 2,783 | 2,712 |
TOTAL NON-INTEREST EXPENSES | 7,702 | 7,166 | 15,534 | 14,357 |
Income before provision for income taxes | 5,566 | 4,501 | 10,560 | 8,727 |
Provision for income taxes | 875 | 1,033 | 1,622 | 1,956 |
NET INCOME | $ 4,691 | $ 3,468 | $ 8,938 | $ 6,771 |
PER COMMON SHARE DATA: | ||||
Net Income - Basic (in dollars per share) | $ 1.34 | $ 0.99 | $ 2.55 | $ 1.93 |
Net Income - Diluted (in dollars per share) | 1.34 | 0.99 | 2.55 | 1.93 |
Cash Dividends Paid (in dollars per share) | $ 0.435 | $ 0.401 | $ 0.870 | $ 0.802 |
Number of shares used in computation - basic (in shares) | 3,507,242 | 3,514,394 | 3,509,882 | 3,513,925 |
Number of shares used in computation - diluted (in shares) | 3,508,709 | 3,515,582 | 3,510,513 | 3,514,535 |
Service Charges [Member] | ||||
Non Interest Income [Abstract] | ||||
Revenue from customers | $ 1,170 | $ 1,120 | $ 2,274 | $ 2,178 |
Trust [Member] | ||||
Non Interest Income [Abstract] | ||||
Revenue from customers | 150 | 188 | 401 | 409 |
Brokerage and Insurance [Member] | ||||
Non Interest Income [Abstract] | ||||
Revenue from customers | $ 168 | $ 114 | $ 349 | $ 305 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) [Abstract] | ||||
Net income | $ 4,691 | $ 3,468 | $ 8,938 | $ 6,771 |
Other comprehensive income (loss): | ||||
Change in unrealized gains on available for sale securities | (529) | 654 | (2,574) | 724 |
Income tax effect | 112 | (222) | 540 | (246) |
Change in unrecognized pension cost | 47 | 52 | 93 | 112 |
Income tax effect | (10) | (17) | (19) | (38) |
Less: Reclassification adjustment for investment security gains included in net income | 0 | (23) | 0 | (195) |
Income tax effect | 0 | 8 | 0 | 66 |
Other comprehensive income (loss), net of tax | (380) | 452 | (1,960) | 423 |
Comprehensive income | $ 4,311 | $ 3,920 | $ 6,978 | $ 7,194 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 8,938 | $ 6,771 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 825 | 1,240 |
Depreciation and amortization | 182 | 199 |
Amortization and accretion of investment securities | 569 | 735 |
Deferred income taxes | 42 | (105) |
Equity and available for sale securities gains, net | (13) | (195) |
Earnings on bank owned life insurance | (306) | (333) |
Originations of loans held for sale | (7,260) | (10,247) |
Proceeds from sales of loans held for sale | 6,849 | 11,840 |
Realized gains on loans sold | (132) | (249) |
(Increase) decrease in accrued interest receivable | (89) | 392 |
Increase (decrease) in accrued interest payable | 6 | (92) |
Other, net | 23 | (166) |
Net cash provided by operating activities | 9,634 | 9,790 |
Available-for-sale securities: | ||
Proceeds from sales | 0 | 25,407 |
Proceeds from maturity and principal repayments | 31,351 | 36,510 |
Purchase of securities | (29,828) | (13,829) |
Purchase of equity securities | (91) | 0 |
Purchase of interest bearing time deposits with other banks | (4,721) | (4,069) |
Proceeds from sale of interest bearing time deposits with other banks | 1,239 | 1,745 |
Proceeds from matured interest bearing time deposits with other banks | 0 | 496 |
Proceeds from redemption of regulatory stock | 5,138 | 4,303 |
Purchase of regulatory stock | (5,574) | (3,487) |
Net increase in loans | (39,375) | (88,468) |
Purchase of premises and equipment | (140) | (131) |
Proceeds from sale of foreclosed assets held for sale | 736 | 237 |
Net cash used in investing activities | (41,265) | (41,286) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net increase in deposits | 13,649 | 45,706 |
Proceeds from long-term borrowings | 4 | 5 |
Net short-term borrowed funds | 18,984 | (9,669) |
Purchase of treasury and restricted stock | (850) | (509) |
Dividends paid | (3,060) | (2,429) |
Net cash provided by financing activities | 28,727 | 33,104 |
Net (decrease) increase in cash and cash equivalents | (2,904) | 1,608 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 18,517 | 17,754 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 15,613 | 19,362 |
Supplemental Disclosures of Cash Flow Information: | ||
Interest paid | 4,234 | 2,769 |
Income taxes paid | 1,200 | 2,075 |
Loans transferred to foreclosed property | 78 | 335 |
Investments purchased and not settled | $ 0 | $ 1,541 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2018 | |
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, 2018 and for the periods ended June 30, 2018 and 2017 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, 2018 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, 2017. In May 2014,the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers" ("ASU 2014-09"), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU replaces most existing revenue recognition guidance in GAAP. The new standard was effective for the Company on January 1, 2018. Adoption of ASU 2014-09 did not have a material impact on the Company's consolidated financial statements other than additional disclosures in note 2 as the Company's primary sources of revenues are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of ASU 2014-09. In January 2016, the FASB finalized ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. This accounting standard (a) requires separate presentation of equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) on the balance sheet and measured at fair value with changes in fair value recognized in net income; (b) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (c) eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities; (d) eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (e) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (f) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and (g) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity's other deferred tax assets. The adoption resulted in the Company recognizing a one-time cumulative effect adjustment of $1,000 between accumulated other comprehensive income and retained earnings on the consolidated balance sheet for the fair value of equity securities included in accumulated other comprehensive income as of the beginning of the period. The adjustment had no impact on net income on any prior periods presented. The Company has adopted this standard during the reporting period. On a prospective basis, the Company implemented changes to the measurement of the fair value of financial instruments using an exit price notion for disclosure purposes included in Note 12 to the financial statements. The June 30, 2018 fair value of each class of financial instruments disclosure did utilize the exit price notion when measuring fair value and, therefore, may not be comparable to the December 3l, 2017 disclosure. In March 2017, the FASB issued ASU 2017-07, Compensation-Retirement Benefits (Topic 71S). The amendments in this Update require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component. The Company adopted the standard on January 1, 2018, which resulted in a reclassification of $(53)and ($100) from Salaries and employee benefits into Other noninterest expenses on the Consolidated Statement of Income for the three and six month periods ended June 30, 2017. See note 10 for additional information on the presentation of these pension cost components. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2018 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Note 2 – Revenue Recognition Effective January 1, 2018, the Company adopted Accounting Standards Update ASU 2014-09 Revenue from Contracts with Customers – Topic 606 · Service charges on deposit accounts – The Company has contracts with its deposit customers where fees are charged if certain parameters are not met. These agreements can be cancelled at any time by either the Company or the deposit customer. Revenue from these transactions is recognized on a monthly basis as the Company has an unconditional right to the fee consideration. The Company also has transaction fees related to specific transactions or activities resulting from a customer request or activity that include overdraft fees, online banking fees, interchange fees, ATM fees and other transaction fees. All of these fees are attributable to specific performance obligations of the Company where the revenue is recognized at a defined point in time upon the completion of the requested service/transaction. · Trust fees – Typical contracts for trust services are based on a fixed percentage of the assets earned ratably over a defined period and billed on a monthly basis. Fees charged to customers' accounts are recognized as revenue over the period during which the Company fulfills its performance obligation under the contract (i.e., holding client asset in a managed fiduciary trust account). For these accounts, the performance obligation of the Company is typically satisfied by holding and managing the customer's assets over time. Other fees related to specific customer requests are attributable to specific performance obligations of the Company where the revenue is recognized at a defined point in time, upon completion of the requested service/transaction. · Gains (losses) on sale of other real estate owned – Gains and losses are recognized at the completion of the property sale when the buyer obtains control of the real estate and all of the performance obligations of the Company have been satisfied. Evidence of the buyer obtaining control of the asset include transfer of the property title, physical possession of the asset, and the buyer obtaining control of the risks and rewards related to the asset. In situations where the Company agrees to provide financing to facilitate the sale, additional analysis is performed to ensure that the contract for sale identifies the buyer and seller, the asset to be transferred, payment terms, and that the contract has a true commercial substance and that collection of amounts due from the buyer are reasonable. In situations where financing terms are not reflective of current market terms, the transaction price is discounted impacting the gain/loss and the carrying value of the asset. · Brokerage and insurance – Fees includes commissions from the sales of investments and insurance products recognized on a trade date basis as the performance obligation is satisfied at the point in time in which the trade is processed. Additional fees are based on a percentage of the market value of customer accounts and billed on a monthly or quarterly basis. The Company's performance obligation under the contracts with certain customers is generally satisfied through the passage of time as the Company monitors and manages the assets in the customer's portfolio and is not dependent on certain return or performance level of the customer's portfolio. Fees for these services are billed monthly and are recorded as revenue at the end of the month for which the wealth management service has been performed. Other performance obligations (such as the delivery of account statements to customers) are generally considered immaterial to the overall transaction price. The following table depicts the disaggregation of revenue derived from contracts with customers to depict the nature, amount, timing, and uncertainty of revenue and cash flows for the three and six months ended June 30, 2018. All revenue in the table below relates to goods and services transferred at a point in time. Revenue stream June 30, 2018 Service charges on deposit accounts Three Months Ended Six Months Ended Overdraft fees $ 381 $ 748 Statement fees 51 105 Interchange revenue 574 1,105 ATM income 101 197 Other service charges 63 119 Total Service Charges 1,170 2,274 Trust 150 401 Brokerage and insurance 168 349 Other 78 163 Total $ 1,566 $ 3,187 |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings per Share [Abstract] | |
Earnings per Share | Note 3 - 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, 2018 2017 2018 2017 Net income applicable to common stock $ 4,691,000 $ 3,468,000 $ 8,938,000 $ 6,771,000 Basic earnings per share computation Weighted average common shares outstanding 3,507,242 3,514,394 3,509,882 3,513,925 Earnings per share - basic $ 1.34 $ 0.99 $ 2.55 $ 1.93 Diluted earnings per share computation Weighted average common shares outstanding for basic earnings per share 3,507,242 3,514,394 3,509,882 3,513,925 Add: Dilutive effects of restricted stock 1,467 1,188 631 610 Weighted average common shares outstanding for dilutive earnings per share 3,508,709 3,515,582 3,510,513 3,514,535 Earnings per share - diluted $ 1.34 $ 0.99 $ 2.55 $ 1.93 For the three months ended June 30, 2018 and 2017, there were 465 and 1,562 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 $46.69-$61.04 for the three month period ended June 30, 2018 and per share prices ranging from $49.87-$53.15 for the three month period ended June 30, 2017. For the six months ended June 30, 2018 and 2017, 3,349 and 4,921 shares, respectively, related to the restricted stock plan were excluded from the diluted earnings per share calculations since they were anti-dilutive. These anti-dilutive shares had prices ranging from $46.69-$61.04 for the six month period ended June 30, 2018 and prices ranging from $47.81-$53.15 for the six month period ended June 30, 2017. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2018 | |
Investments [Abstract] | |
Investments | Note 4 – Investments The amortized cost, gross unrealized gains and losses, and fair value of investment securities at June 30, 2018 and December 31, 2017 were as follows (in thousands): Gross Gross Amortized Unrealized Unrealized Fair June 30, 2018 Cost Gains Losses Value Available-for-sale securities: U.S. agency securities $ 103,190 $ 30 $ (1,232 ) $ 101,988 U.S. treasury securities 33,783 - (791 ) 32,992 Obligations of state and political subdivisions 67,763 456 (347 ) 67,872 Corporate obligations 3,000 23 - 3,023 Mortgage-backed securities in government sponsored entities 45,202 3 (1,055 ) 44,150 Total available-for-sale securities $ 252,938 $ 512 $ (3,425 ) $ 250,025 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2017 Cost Gains Losses Value Available-for-sale securities: U.S. agency securities $ 99,454 $ 26 $ (593 ) $ 98,887 U.S. treasury securities 28,782 - (178 ) 28,604 Obligations of state and political subdivisions 78,409 820 (139 ) 79,090 Corporate obligations 3,000 83 - 3,083 Mortgage-backed securities in government sponsored entities 45,385 19 (377 ) 45,027 Equity securities in financial institutions 92 - (1 ) 91 Total available-for-sale securities $ 255,122 $ 948 $ (1,288 ) $ 254,782 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, 2018 and December 31, 2017 (in thousands). As of June 30, 2018, the Company owned 201 securities whose fair value was less than their cost basis. June 30, 2018 Less than Twelve Months Twelve Months or Greater Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses U.S. agency securities $ 76,159 $ (978 ) $ 19,842 $ (254 ) $ 96,001 $ (1,232 ) U.S. treasury securities 32,992 (791 ) - - 32,992 (791 ) Obligations of state and political subdivisions 22,564 (220 ) 6,007 (127 ) 28,571 (347 ) Mortgage-backed securities in government sponsored entities 25,918 (399 ) 17,677 (656 ) 43,595 (1,055 ) Total securities $ 157,633 $ (2,388 ) $ 43,526 $ (1,037 ) $ 201,159 $ (3,425 ) December 31, 2017 U.S. agency securities $ 74,952 $ (421 ) $ 16,928 $ (172 ) $ 91,880 $ (593 ) U.S. treasury securities 28,604 (178 ) - - 28,604 (178 ) Obligations of states and political subdivisions 14,885 (85 ) 5,958 (54 ) 20,843 (139 ) Mortgage-backed securities in government sponsored entities 27,154 (190 ) 13,822 (187 ) 40,976 (377 ) Equity securities in financial institutions 91 (1 ) - - 91 (1 ) Total securities $ 145,686 $ (875 ) $ 36,708 $ (413 ) $ 182,394 $ (1,288 ) As of June 30, 2018 and December 31, 2017, 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, U.S treasury securities, obligations of states and political subdivisions and mortgage backed securities issued by government sponsored entities. For fixed maturity investments 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. There were no sales of available for sale securities during the six months ended June 30, 2018. Proceeds from sales of securities available-for-sale for the six months ended June 30, 2017 were $25,407,000. There were no sales of available for sale securities during the three months ended June 30, 2018. Proceeds from sales of securities available-for-sale for the three months ended June 30, 2017 were $6,641,000. The gross gains and losses were as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Gross gains on available for sale securities $ - $ 30 $ - $ 202 Gross losses on available for sale securities - (7 ) - (7 ) Net gains $ - $ 23 $ - $ 195 The following table presents the net gains on the Company's equity investments recognized in earnings during the three month and six month periods ended June 30, 2018, and the portion of unrealized gains for the period that relates to equity investments held at June 30, 2018 (in thousands): Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Net gains recognized in equity securities during the period $ 7 $ 13 Less: Net gains realized on the sale of equity securities during the period - - Unrealized gains recognized in equity securities held at reporting date $ 7 $ 13 Investment securities with an approximate carrying value of $240.8 million and $243.4 million at June 30, 2018 and December 31, 2017, 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, 2018, by contractual maturity, are shown below (in thousands): Amortized Cost Fair Value Available-for-sale debt securities: Due in one year or less $ 47,012 $ 47,121 Due after one year through five years 106,241 104,395 Due after five years through ten years 50,336 49,644 Due after ten years 49,349 48,865 Total $ 252,938 $ 250,025 |
Loans
Loans | 6 Months Ended |
Jun. 30, 2018 | |
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, 2018 and December 31, 2017, 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, 2018 and December 31, 2017 (in thousands): June 30, 2018 Total Loans Individually evaluated for impairment Loans acquired with deteriorated credit quality Collectively evaluated for impairment Real estate loans: Residential $ 213,242 $ 1,131 $ 30 $ 212,081 Commercial 309,571 13,791 1,388 294,392 Agricultural 262,691 5,204 683 256,804 Construction 27,901 - - 27,901 Consumer 9,740 - - 9,740 Other commercial loans 75,002 3,934 425 70,643 Other agricultural loans 42,131 1,471 - 40,660 State and political subdivision loans 99,922 - - 99,922 Total 1,040,200 25,531 2,526 1,012,143 Allowance for loan losses 11,941 405 - 11,536 Net loans $ 1,028,259 $ 25,126 $ 2,526 $ 1,000,607 December 31, 2017 Total Loans Individually evaluated for impairment Loans acquired with deteriorated credit quality Collectively evaluated for impairment Real estate loans: Residential $ 214,479 $ 1,065 $ 33 $ 213,381 Commercial 308,084 13,864 1,460 292,760 Agricultural 239,957 3,901 702 235,354 Construction 13,502 - - 13,502 Consumer 9,944 8 - 9,936 Other commercial loans 72,013 4,197 443 67,373 Other agricultural loans 37,809 1,363 - 36,446 State and political subdivision loans 104,737 - - 104,737 Total 1,000,525 24,398 2,638 973,489 Allowance for loan losses 11,190 410 - 10,780 Net loans $ 989,335 $ 23,988 $ 2,638 $ 962,709 Purchased loans 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 the acquisition date and June 30, 2018. 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 $2,526,000 and $2,638,000 at June 30, 2018 and December 31, 2017, respectively. The carrying value of the PCI loans was determined by projected discounted contractual cash flows and collateral valuations. Changes in the accretable yield for PCI loans were as follows for the three and six months ended June 30, 2018 and 2017, respectively (in thousands): Three months ended Six months ended June 30, June 30, 2018 2017 2018 2017 Balance at beginning of period $ 82 $ 275 $ 106 $ 389 Accretion (23 ) (108 ) (47 ) (222 ) Balance at end of period $ 59 $ 167 $ 59 $ 167 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, 2018 December 31, 2017 Outstanding balance $ 5,262 $ 5,295 Carrying amount 2,526 2,638 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, 2018 Balance Allowance Allowance Investment Allowance Real estate loans: Mortgages $ 1,138 $ 261 $ 776 $ 1,037 $ 15 Home Equity 111 14 80 94 15 Commercial 16,576 12,442 1,349 13,791 159 Agricultural 5,210 3,648 1,556 5,204 25 Construction - - - - - Consumer - - - - - Other commercial loans 4,489 3,552 382 3,934 151 Other agricultural loans 1,514 1,295 176 1,471 40 State and political subdivision loans - - - - - Total $ 29,038 $ 21,212 $ 4,319 $ 25,531 $ 405 Recorded Recorded Unpaid Investment Investment Total Principal With No With Recorded Related December 31, 2017 Balance Allowance Allowance Investment Allowance Real estate loans: Mortgages $ 1,055 $ 273 $ 700 $ 973 $ 47 Home Equity 92 40 52 92 9 Commercial 16,363 13,154 710 13,864 94 Agricultural 5,231 3,283 618 3,901 3 Construction - - - - - Consumer 10 2 6 8 - Other commercial loans 4,739 3,766 431 4,197 231 Other agricultural loans 1,397 1,238 125 1,363 26 State and political subdivision loans - - - - - Total $ 28,887 $ 21,756 $ 2,642 $ 24,398 $ 410 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, 2018 and 2017(in thousands): For the Three Months Ended June 30, 2018 June 30, 2017 Interest Interest Average Interest Income Average Interest Income Recorded Income Recognized Recorded Income Recognized Investment Recognized Cash Basis Investment Recognized Cash Basis Real estate loans: Mortgages $ 1,045 $ 3 $ - $ 986 $ 3 $ - Home Equity 95 1 - 60 1 - Commercial 13,833 120 3 12,980 134 - Agricultural 4,185 49 - 3,641 32 - Construction - - - - - - Consumer - - - 3 - - Other commercial loans 4,067 26 - 5,029 37 17 Other agricultural loans 1,342 9 - 1,515 22 - State and political subdivision loans - - - - - - Total $ 24,567 $ 208 $ 3 $ 24,214 $ 229 $ 17 For the Six Months ended June 30, 2018 June 30, 2017 Interest Interest Average Interest Income Average Interest Income Recorded Income Recognized Recorded Income Recognized Investment Recognized Cash Basis Investment Recognized Cash Basis Real estate loans: Mortgages $ 1,034 $ 7 $ - $ 940 $ 6 $ - Home Equity 101 2 - 58 2 - Commercial 13,814 242 8 9,387 158 3 Agricultural 4,135 100 - 3,513 63 - Construction - - - - - - Consumer 2 - - 2 - - Other commercial loans 4,112 52 - 5,313 77 27 Other agricultural loans 1,356 19 - 1,571 45 - State and political subdivision loans - - - - - - Total $ 24,554 $ 422 $ 8 $ 20,784 $ 351 $ 30 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, agricultural and state and political 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 50% 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, 2018 and December 31, 2017 (in thousands) June 30, 2018 Pass Special Mention Substandard Doubtful Loss Ending Balance Real estate loans: Commercial $ 284,415 $ 13,347 $ 11,690 $ 119 $ - $ 309,571 Agricultural 244,605 12,427 5,659 - - 262,691 Construction 27,901 - - - - 27,901 Other commercial loans 71,036 870 2,975 121 - 75,002 Other agricultural loans 39,753 1,048 1,330 - - 42,131 State and political subdivision loans 89,602 - 10,320 - - 99,922 Total $ 757,312 $ 27,692 $ 31,974 $ 240 $ - $ 817,218 December 31, 2017 Pass Special Mention Substandard Doubtful Loss Ending Balance Real estate loans: Commercial $ 281,742 $ 15,029 $ 11,271 $ 42 $ - $ 308,084 Agricultural 222,198 11,538 6,221 - - 239,957 Construction 13,364 - 138 - - 13,502 Other commercial loans 67,706 615 3,567 125 - 72,013 Other agricultural loans 34,914 1,325 1,570 - - 37,809 State and political subdivision loans 94,125 - 10,612 - - 104,737 Total $ 714,049 $ 28,507 $ 33,379 $ 167 $ - $ 776,102 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, 2018 and December 31, 2017 ( in thousands) June 30, 2018 Performing Non-performing PCI Total Real estate loans: Mortgages $ 153,342 $ 1,375 $ 30 $ 154,747 Home Equity 58,377 118 - 58,495 Consumer 9,683 57 - 9,740 Total $ 221,402 $ 1,550 $ 30 $ 222,982 December 31, 2017 Performing Non-performing PCI Total Real estate loans: Mortgages $ 152,820 $ 1,492 $ 33 $ 154,345 Home Equity 60,022 112 - $ 60,134 Consumer 9,895 49 - $ 9,944 Total $ 222,737 $ 1,653 $ 33 $ 224,423 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, 2018 and December 31, 2017 (in thousands): 90 Days or 30-59 Days 60-89 Days 90 Days Total Past Total Financing Greater and June 30, 2018 Past Due Past Due Or Greater Due Current PCI Receivables Accruing Real estate loans: Mortgages $ 476 $ 202 $ 796 $ 1,474 $ 153,243 $ 30 $ 154,747 $ - Home Equity 220 8 94 322 58,173 - 58,495 - Commercial 1,649 2,019 4,201 7,869 300,314 1,388 309,571 38 Agricultural 8 1,105 702 1,815 260,193 683 262,691 543 Construction - - - - 27,901 - 27,901 - Consumer 31 26 32 89 9,651 - 9,740 32 Other commercial loans 47 8 2,324 2,379 72,198 425 75,002 - Other agricultural loans 182 569 433 1,184 40,947 - 42,131 433 State and political subdivision loans - - - - 99,922 - 99,922 - Total $ 2,613 $ 3,937 $ 8,582 $ 15,132 $ 1,022,542 $ 2,526 $ 1,040,200 $ 1,046 Loans considered non-accrual $ 617 $ 790 $ 7,536 $ 8,943 $ 1,988 $ - $ 10,931 Loans still accruing 1,996 3,147 1,046 6,189 1,020,554 2,526 1,029,269 Total $ 2,613 $ 3,937 $ 8,582 $ 15,132 $ 1,022,542 $ 2,526 $ 1,040,200 90 Days or 30-59 Days 60-89 Days 90 Days Total Past Total Financing Greater and December 31, 2017 Past Due Past Due Or Greater Due Current PCI Receivables Accruing Real estate loans: Mortgages $ 996 $ 362 $ 810 $ 2,168 $ 152,144 $ 33 $ 154,345 $ 218 Home Equity 277 86 78 441 59,693 - 60,134 - Commercial 1,353 1,010 3,865 6,228 300,396 1,460 308,084 162 Agricultural 242 - 205 447 238,808 702 239,957 30 Construction - - 133 133 13,369 - 13,502 - Consumer 53 33 49 135 9,809 - 9,944 7 Other commercial loans 132 - 2,372 2,504 69,066 443 72,013 32 Other agricultural loans - 42 106 148 37,661 - 37,809 106 State and political subdivision loans - - - - 104,737 - 104,737 - Total $ 3,053 $ 1,533 $ 7,618 $ 12,204 $ 985,683 $ 2,638 $ 1,000,525 $ 555 Loans considered non-accrual $ 816 $ 281 $ 7,063 $ 8,160 $ 2,011 $ - $ 10,171 Loans still accruing 2,237 1,252 555 4,044 983,672 2,638 990,354 Total $ 3,053 $ 1,533 $ 7,618 $ 12,204 $ 985,683 $ 2,638 $ 1,000,525 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, 2018 and December 31, 2017, respectively. The balances are presented by class of financing receivable (in thousands): June 30, 2018 December 31, 2017 Real estate loans: Mortgages $ 1,375 $ 1,274 Home Equity 118 112 Commercial 6,262 5,192 Agricultural 167 175 Construction - 133 Consumer 25 42 Other commercial loans 2,415 2,637 Other agricultural loans 569 606 State and political subdivision - - $ 10,931 $ 10,171 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, 2018 and December 31, 2017, included within the allowance for loan losses are reserves of $87,000 and $41,000 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, 2018 and 2017 were as follows (dollars in thousands): For the Three Months Ended June 30, 2018 Number of contracts Pre-modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Interest Modification Term Modification Interest Modification Term Modification Interest Modification Term Modification Real estate loans: Home Equity - 1 $ - $ 1 $ - $ 1 Commercial - 1 - 577 - 577 Agricultural - 1 - 1,523 1,523 Other agricultural loans - 4 - 176 176 Total - 7 $ - $ 2,277 $ - $ 2,277 For the Six Months Ended June 30, 2018 Number of contracts Pre-modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Interest Modification Term Modification Interest Modification Term Modification Interest Modification Term Modification Real estate loans: Mortgages - 1 $ - $ 7 $ $ 7 Home Equity - 1 - 1 - 1 Commercial - 1 - 577 - 577 Agricultural - 1 - 1,523 1,523 Other agricultural loans - 4 - 176 176 Total - 8 $ - $ 2,284 $ - $ 2,284 For the Three Months Ended June 30, 2017 Number of contracts Pre-modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Interest Modification Term Modification Interest Modification Term Modification Interest Modification Term Modification Real estate loans: Commercial - 5 $ - $ 6,093 $ - $ 6,093 Total - 5 $ - $ 6,093 $ - $ 6,093 For the Six Months Ended June 30, 2017 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 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, 2018 and 2017 (6 month periods) and April 1, 2018 and 2017 (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, 2018 and December 31, 2017, respectively (in thousands): June 30, 2018 December 31, 2017 Individually evaluated for impairment Collectively evaluated for impairment Total Individually evaluated for impairment Collectively evaluated for impairment Total Real estate loans: Residential $ 30 $ 1,015 $ 1,045 $ 56 $ 993 $ 1,049 Commercial 159 3,635 3,794 94 3,773 3,867 Agricultural 25 3,648 3,673 3 3,140 3,143 Construction - 44 44 - 23 23 Consumer - 115 115 - 124 124 Other commercial loans 151 1,115 1,266 231 1,041 1,272 Other agricultural loans 40 549 589 26 466 492 State and political subdivision loans - 767 767 - 816 816 Unallocated - 648 648 - 404 404 Total $ 405 $ 11,536 $ 11,941 $ 410 $ 10,780 $ 11,190 The following tables roll forward the balance of the ALLL by portfolio segment for the three and six months ended June 30, 2018 and 2017, respectively (in thousands): For the three months ended June 30, 2018 Balance at March 31, 2018 Charge-offs Recoveries Provision Balance at June 30, 2018 Real estate loans: Residential $ 1,077 $ (2 ) $ 69 $ (99 ) $ 1,045 Commercial 4,006 - 3 (215 ) 3,794 Agricultural 3,340 - - 333 3,673 Construction 39 - - 5 44 Consumer 123 (6 ) 7 (9 ) 115 Other commercial loans 1,273 (46 ) 11 28 1,266 Other agricultural loans 532 (7 ) - 64 589 State and political subdivision loans 789 - - (22 ) 767 Unallocated 408 - - 240 648 Total $ 11,587 $ (61 ) $ 90 $ 325 $ 11,941 For the six months ended June 30, 2018 Balance at December 31, 2017 Charge-offs Recoveries Provision Balance at June 30, 2018 Real estate loans: Residential $ 1,049 $ (17 ) $ 69 $ (56 ) $ 1,045 Commercial 3,867 - 3 (76 ) 3,794 Agricultural 3,143 - - 530 3,673 Construction 23 - - 21 44 Consumer 124 (19 ) 17 (7 ) 115 Other commercial loans 1,272 (91 ) 14 71 1,266 Other agricultural loans 492 (50 ) - 147 589 State and political subdivision loans 816 - - (49 ) 767 Unallocated 404 - - 244 648 Total $ 11,190 $ (177 ) $ 103 $ 825 $ 11,941 For the three months ended June 30, 2017 Balance at March 31, 2017 Charge-offs Recoveries Provision Balance at June 30, 2017 Real estate loans: Residential $ 1,042 $ (48 ) $ - $ 110 $ 1,104 Commercial 3,665 - 2 (126 ) 3,541 Agricultural 1,952 500 2,452 Construction 46 - - (1 ) 45 Consumer 123 (17 ) 12 7 125 Other commercial loans 1,215 - - (84 ) 1,131 Other agricultural loans 306 - 125 431 State and political subdivision loans 824 - - 14 838 Unallocated 232 - - 80 312 Total $ 9,405 $ (65 ) $ 14 $ 625 $ 9,979 For the six months ended June 30, 2017 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 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, 2018, the allowance for residential real estate decreased in general reserves for pooled loans as a result of a decrease in the qualitative factor associated with unemployment rates. In addition, there was a decrease in total residential loans. This was represented as a decrease to the provision. The allowance for commercial real estate was decreased in general reserves due to a decrease in the qualitative factor associated with unemployment rates and an improvement in the number of loans classified as special mention. This was represented as a decrease in the provision. For the six months ended June 30, 2018, the allowance for residential real estate decreased in general reserves for pooled loans as a result of a decrease in the qualitative factor associated with unemployment rates. In addition, there was a decrease in total residential loans. This was represented as a decrease to the provision. The allowance for commercial real estate was decreased in general reserves due to a decrease in the qualitative factor associated with unemployment rates and an improvement in the number of loans classified as special mention. This was represented as a decrease in the provision. 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. 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, 2018 and December 31, 2017, included with other assets are $471,000 and $1,119,000, respectively, of foreclosed assets. As of June 30, 2018, included within the foreclosed assets are $175,000 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 2018, the Company has initiated formal foreclosure proceedings on $2,023,000 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, 2018 | |
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, 2018 and December 31, 2017 (in thousands): June 30, 2018 December 31, 2017 Gross carrying value Accumulated amortization Net carrying value Gross carrying value Accumulated amortization Net carrying value Amortized intangible assets (1): MSRs $ 1,656 $ (1,009 ) $ 647 $ 1,605 $ (912 ) $ 693 Core deposit intangibles 1,786 (721 ) 1,065 1,786 (586 ) 1,200 Covenant not to compete 125 (81 ) 44 125 (65 ) 60 Total amortized intangible assets $ 3,567 $ (1,811 ) $ 1,756 $ 3,516 $ (1,563 ) $ 1,953 Unamortized intangible assets: Goodwill $ 23,296 $ 23,296 (1) Excludes fully amortized intangible assets The following table provides the current year and estimated future amortization expense for amortized intangible assets for the next five years. We based our projections of amortization expense shown below on existing asset balances at June 30, 2018. Future amortization expense may vary from these projections (in thousands): MSRs Core deposit intangibles Covenant not to compete Total Three months ended June 30, 2018 (actual) $ 48 $ 66 $ 8 $ 122 Six months ended June 30, 2018 (actual) 97 134 16 247 Three months ended June 30, 2017 (actual) 45 66 7 118 Six months June 30, 2017 (actual) 91 134 15 240 Estimate for year ended December 31, Remaining 2018 88 130 15 233 2019 157 230 29 416 2020 123 197 - 320 2021 94 165 - 259 2022 69 133 - 202 |
Federal Home Loan Bank Stock
Federal Home Loan Bank Stock | 6 Months Ended |
Jun. 30, 2018 | |
Federal Home Loan Bank Stock [Abstract] | |
Federal Home Loan Bank Stock | Note 7 – Federal Home Loan Bank Stock As a member of the FHLB of Pittsburgh, the Bank 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, 2018 and December 31, 2017, the Bank's investment in FHLB stock was $6,456,000 and $6,021,000, respectively. |
Repurchase Agreements
Repurchase Agreements | 6 Months Ended |
Jun. 30, 2018 | |
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, 2018 and D ecember 31, 2017 Remaining Contractual Maturity of the Agreements Overnight and Up to Greater than June 30, 2018 Continuous 30 Days 30 - 90 Days 90 days Total Repurchase Agreements: U.S. agency securities $ 18,909 $ - $ - $ 1,998 $ 20,907 Total carrying value of collateral pledged $ 18,909 $ - $ - $ 1,998 $ 20,907 Total liability recognized for repurchase agreements $ 15,061 December 31, 2017 Repurchase Agreements: U.S. agency securities $ 16,027 $ - $ - $ 2,035 $ 18,062 Total carrying value of collateral pledged $ 16,027 $ - $ - $ 2,035 $ 18,062 Total liability recognized for repurchase agreements $ 14,989 |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2018 | |
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 2017 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 and the line item on the Consolidated Statement of Income where such amounts are included, for the three months ended June 30, 2018 and 2017, respectively (in thousands): Three Months Ended Six Months Ended June 30, June 30, Affected line item on the Consolidated 2018 2017 2018 2017 Statement of income Service cost $ 90 $ 84 $ 179 $ 175 Salaries and Employee Benefits Interest cost 162 168 325 335 Other Expenses Expected return on plan assets (345 ) (273 ) (689 ) (547 ) Other Expenses Net amortization and deferral 47 52 93 112 Other Expenses Net periodic (benefit) cost $ (46 ) $ 31 $ (92 ) $ 75 The Bank does not expect to make any contributions to the Pension Plans during 2018. 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, 2018, 136,539 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 months ended June 30, 2018: Three months Six months Weighted Weighted Unvested Average Unvested Average Shares Market Price Shares Market Price Outstanding, beginning of period 8,691 $ 51.19 8,783 $ 51.20 Granted 4,869 62.91 4,869 62.91 Forfeited - - - - Vested (3,626 ) (50.54 ) (3,718 ) (50.58 ) Outstanding, end of period 9,934 $ 57.18 9,934 $ 57.18 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 $119,000 and $104,000 for the six months ended June 30, 2018 and 2017, respectively. For the three months ended June 30, 2018 and 2017, compensation expense totaled $63,000 and $54,000, respectively. At June 30, 2018, the total compensation cost related to nonvested awards that has not yet been recognized was $568,000, which is expected to be recognized over the next three years. |
Accumulated Comprehensive Loss
Accumulated Comprehensive Loss | 6 Months Ended |
Jun. 30, 2018 | |
Accumulated Comprehensive Loss [Abstract] | |
Accumulated Comprehensive Loss | Note 10 – Accumulated Comprehensive Loss The following tables present the changes in accumulated other comprehensive loss by component net of tax for the three and six months ended June 30, 2018 and 2017 (in thousands): Six months ended June 30, 2018 Unrealized gain (loss) on available for sale securities (a) Defined Benefit Pension Items (a) Total Balance as of December 31, 2017 $ (269 ) $ (3,129 ) $ (3,398 ) Change in Accounting policy for equity securities 1 - 1 Other comprehensive loss before reclassifications (net of tax) (2,034 ) - (2,034 ) Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) - 74 74 Net current period other comprehensive loss (2,034 ) 74 (1,960 ) Balance as of June 30, 2018 $ (2,302 ) $ (3,055 ) $ (5,357 ) Six months ended June 30, 2017 Unrealized gain (loss) on available for sale securities (a) Defined Benefit Pension Items (a) Total Balance as of December 31, 2016 $ 1,306 $ (2,698 ) $ (1,392 ) Other comprehensive income before reclassifications (net of tax) 478 - 478 Amounts reclassified from accumulated other comprehensive loss (net of tax) (129 ) 74 (55 ) Net current period other comprehensive income 349 74 423 Balance as of June 30, 2017 $ 1,655 $ (2,624 ) $ (969 ) Three months ended June 30, 2018 Unrealized gain (loss) on available for sale securities (a) Defined Benefit Pension Items (a) Total Balance as of March 31, 2018 $ (1,885 ) $ (3,092 ) $ (4,977 ) Other comprehensive loss before reclassifications (net of tax) (417 ) - (417 ) Amounts reclassified from accumulated other comprehensive loss (net of tax) - 37 37 Net current period other comprehensive income (loss) (417 ) 37 (380 ) Balance as of June 30, 2018 $ (2,302 ) $ (3,055 ) $ (5,357 ) Three months ended June 30, 2017 Unrealized gain (loss) on available for sale securities (a) Defined Benefit Pension Items (a) Total Balance as of March 31, 2017 $ 1,238 $ (2,659 ) $ (1,421 ) Other comprehensive income before reclassifications (net of tax) 432 - 432 Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) (15 ) 35 20 Net current period other comprehensive income (loss) 417 35 452 Balance as of June 30, 2017 $ 1,655 $ (2,624 ) $ (969 ) (a) Amounts in parentheses indicate debits on the Consolidated Balalance Sheet 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, 2018 and 2017 (in thousands): Details about accumulated other comprehensive income (loss) Amount reclassified from accumulated comprehensive income (loss) (a) Affected line item in the Consolidated Statement of Income Three Months Ended June 30, 2018 2017 Unrealized gains and losses on available for sale securities $ - $ 23 Available for sale securities gains, net - (8 ) Provision for income taxes $ - $ 15 Net of tax Defined benefit pension items $ (47 ) $ (52 ) Salaries and employee benefits 10 17 Provision for income taxes $ (37 ) $ (35 ) Net of tax Total reclassifications $ (37 ) $ (20 ) Six Months Ended June 30 2018 2017 Unrealized gains and losses on available for sale securities $ - $ 195 Available for sale securities gains, net - (66 ) Provision for income taxes $ - $ 129 Net of tax Defined benefit pension items $ (93 ) $ (112 ) Salaries and employee benefits 19 38 Provision for income taxes $ (74 ) $ (74 ) Net of tax Total reclassifications $ (74 ) $ 55 (a) Amounts in parentheses indicate expenses and other amounts indicate income on the Consolidated Statement of Income |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
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. Assets and Liabilities Required to be Measured at Fair Value on a Recurring Basis The fair values of equity securities and 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, 2018 and December 31, 2017 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, 2018 Level I Level II Level III Total Fair value measurements on a recurring basis: Assets Equity securities in financial institutions $ 195 $ - $ - $ 195 Available for sale securities: U.S. Agency securities - 101,988 - 101,988 U.S. Treasury securities 32,992 - - 32,992 Obligations of state and political subdivisions - 67,872 - 67,872 Corporate obligations - 3,023 - 3,023 Mortgage-backed securities in government sponsored entities - 44,150 - 44,150 December 31, 2017 Level I Level II Level III Total Fair value measurements on a recurring basis: Available for sale securities: U.S. Agency securities $ - $ 98,887 $ - $ 98,887 U.S. Treasuries securities 28,604 - - 28,604 Obligations of state and political subdivisions - 79,090 - 79,090 Corporate obligations - 3,083 - 3,083 Mortgage-backed securities in government sponsored entities - 45,027 - 45,027 Equity securities in financial institutions 91 - - 91 Assets and Liabilities Required to be Measured and Reported at Fair Value on a Nonrecurring Basis Assets measured at fair value on a nonrecurring basis as of June 30, 2018 and December 31, 2017 are included in the table below ( in thousands) June 30, 2018 Level I Level II Level III Total Impaired Loans $ - $ - $ 3,470 $ 3,470 Other real estate owned - - 326 326 December 31, 2017 Impaired Loans $ - $ - $ 1,569 $ 1,569 Other real estate owned - - 1,024 1,024 · Impaired Loans - · 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). June 30, 2018 Fair Value Valuation Technique(s) Unobservable input Range Weighted average Impaired Loans $ 3,470 Appraised Collateral Values Discount for time since appraisal 0-100% 27.32 % Selling costs 5%-11% 7.88 % Holding period 0 - 12 months 11.4 months Other real estate owned 326 Appraised Collateral Values Discount for time since appraisal 25-35% 27.45 % December 31, 2017 Fair Value Valuation Technique(s) Unobservable input Range Impaired Loans 1,569 Appraised Collateral Values Discount for time since appraisal 0-100% 30.83 % Selling costs 5%-9% 8.35 % Holding period 6 - 12 months 11 months Other real estate owned 1,024 Appraised Collateral Values Discount for time since appraisal 15-65% 26.26 % Financial Instruments Not Required to be Measured or Reported at Fair Value The carrying amount and fair value of the Company's financial instruments that are not required to be measured or reported at fair value on a recurring basis are as follows (in thousands): Carrying June 30, 2018 Amount Fair Value Level I Level II Level III Financial assets: Cash and due from banks $ 15,613 $ 15,613 $ 15,613 $ - $ - Interest bearing time deposits with other banks 13,762 13,766 - - 13,766 Loans held for sale 1,931 1,931 1,931 - - Net loans 1,028,259 1,021,166 - - 1,021,166 Bank owned life insurance 27,189 27,189 27,189 - - Regulatory stock 7,220 7,220 7,220 - - Accrued interest receivable 4,285 4,285 4,285 - - Financial liabilities: Deposits $ 1,118,592 $ 1,113,001 $ 847,151 $ - $ 265,850 Borrowed funds 133,652 132,322 96,566 - 35,756 Accrued interest payable 903 903 903 - - Carrying December 31, 2017 Amount Fair Value Level I Level II Level III Financial assets: Cash and due from banks $ 18,517 $ 18,517 $ 18,517 $ - $ - Interest bearing time deposits with other banks 10,283 10,287 - - 10,287 Loans held for sale 1,439 1,439 1,439 Net loans 989,335 981,238 - - 981,238 Bank owned life insurance 26,883 26,883 26,883 - - Regulatory stock 6,784 6,784 6,784 - - Accrued interest receivable 4,196 4,196 4,196 - - Financial liabilities: Deposits $ 1,104,943 $ 1,101,583 $ 838,490 $ - $ 263,093 Borrowed funds 114,664 113,452 77,650 - 35,802 Accrued interest payable 897 897 897 - - |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2018 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | Note 12 – Recent Accounting Pronouncements 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 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
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, 2018 and for the periods ended June 30, 2018 and 2017 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, 2018 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, 2017. In May 2014,the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers" ("ASU 2014-09"), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU replaces most existing revenue recognition guidance in GAAP. The new standard was effective for the Company on January 1, 2018. Adoption of ASU 2014-09 did not have a material impact on the Company's consolidated financial statements other than additional disclosures in note 2 as the Company's primary sources of revenues are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of ASU 2014-09. In January 2016, the FASB finalized ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. This accounting standard (a) requires separate presentation of equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) on the balance sheet and measured at fair value with changes in fair value recognized in net income; (b) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (c) eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities; (d) eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (e) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (f) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and (g) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity's other deferred tax assets. The adoption resulted in the Company recognizing a one-time cumulative effect adjustment of $1,000 between accumulated other comprehensive income and retained earnings on the consolidated balance sheet for the fair value of equity securities included in accumulated other comprehensive income as of the beginning of the period. The adjustment had no impact on net income on any prior periods presented. The Company has adopted this standard during the reporting period. On a prospective basis, the Company implemented changes to the measurement of the fair value of financial instruments using an exit price notion for disclosure purposes included in Note 12 to the financial statements. The June 30, 2018 fair value of each class of financial instruments disclosure did utilize the exit price notion when measuring fair value and, therefore, may not be comparable to the December 3l, 2017 disclosure. In March 2017, the FASB issued ASU 2017-07, Compensation-Retirement Benefits (Topic 71S). The amendments in this Update require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component. The Company adopted the standard on January 1, 2018, which resulted in a reclassification of $(53)and ($100) from Salaries and employee benefits into Other noninterest expenses on the Consolidated Statement of Income for the three and six month periods ended June 30, 2017. See note 10 for additional information on the presentation of these pension cost components. |
Revenue Recognition (Policies)
Revenue Recognition (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Effective January 1, 2018, the Company adopted Accounting Standards Update ASU 2014-09 Revenue from Contracts with Customers – Topic 606 · Service charges on deposit accounts – The Company has contracts with its deposit customers where fees are charged if certain parameters are not met. These agreements can be cancelled at any time by either the Company or the deposit customer. Revenue from these transactions is recognized on a monthly basis as the Company has an unconditional right to the fee consideration. The Company also has transaction fees related to specific transactions or activities resulting from a customer request or activity that include overdraft fees, online banking fees, interchange fees, ATM fees and other transaction fees. All of these fees are attributable to specific performance obligations of the Company where the revenue is recognized at a defined point in time upon the completion of the requested service/transaction. · Trust fees – Typical contracts for trust services are based on a fixed percentage of the assets earned ratably over a defined period and billed on a monthly basis. Fees charged to customers' accounts are recognized as revenue over the period during which the Company fulfills its performance obligation under the contract (i.e., holding client asset in a managed fiduciary trust account). For these accounts, the performance obligation of the Company is typically satisfied by holding and managing the customer's assets over time. Other fees related to specific customer requests are attributable to specific performance obligations of the Company where the revenue is recognized at a defined point in time, upon completion of the requested service/transaction. · Gains (losses) on sale of other real estate owned – Gains and losses are recognized at the completion of the property sale when the buyer obtains control of the real estate and all of the performance obligations of the Company have been satisfied. Evidence of the buyer obtaining control of the asset include transfer of the property title, physical possession of the asset, and the buyer obtaining control of the risks and rewards related to the asset. In situations where the Company agrees to provide financing to facilitate the sale, additional analysis is performed to ensure that the contract for sale identifies the buyer and seller, the asset to be transferred, payment terms, and that the contract has a true commercial substance and that collection of amounts due from the buyer are reasonable. In situations where financing terms are not reflective of current market terms, the transaction price is discounted impacting the gain/loss and the carrying value of the asset. · Brokerage and insurance – Fees includes commissions from the sales of investments and insurance products recognized on a trade date basis as the performance obligation is satisfied at the point in time in which the trade is processed. Additional fees are based on a percentage of the market value of customer accounts and billed on a monthly or quarterly basis. The Company's performance obligation under the contracts with certain customers is generally satisfied through the passage of time as the Company monitors and manages the assets in the customer's portfolio and is not dependent on certain return or performance level of the customer's portfolio. Fees for these services are billed monthly and are recorded as revenue at the end of the month for which the wealth management service has been performed. Other performance obligations (such as the delivery of account statements to customers) are generally considered immaterial to the overall transaction price. |
Recent Accounting Pronounceme21
Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | 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 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue Recognition [Abstract] | |
Disaggregation of Revenue Derived from Contracts with Customers | The following table depicts the disaggregation of revenue derived from contracts with customers to depict the nature, amount, timing, and uncertainty of revenue and cash flows for the three and six months ended June 30, 2018. All revenue in the table below relates to goods and services transferred at a point in time. Revenue stream June 30, 2018 Service charges on deposit accounts Three Months Ended Six Months Ended Overdraft fees $ 381 $ 748 Statement fees 51 105 Interchange revenue 574 1,105 ATM income 101 197 Other service charges 63 119 Total Service Charges 1,170 2,274 Trust 150 401 Brokerage and insurance 168 349 Other 78 163 Total $ 1,566 $ 3,187 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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, 2018 2017 2018 2017 Net income applicable to common stock $ 4,691,000 $ 3,468,000 $ 8,938,000 $ 6,771,000 Basic earnings per share computation Weighted average common shares outstanding 3,507,242 3,514,394 3,509,882 3,513,925 Earnings per share - basic $ 1.34 $ 0.99 $ 2.55 $ 1.93 Diluted earnings per share computation Weighted average common shares outstanding for basic earnings per share 3,507,242 3,514,394 3,509,882 3,513,925 Add: Dilutive effects of restricted stock 1,467 1,188 631 610 Weighted average common shares outstanding for dilutive earnings per share 3,508,709 3,515,582 3,510,513 3,514,535 Earnings per share - diluted $ 1.34 $ 0.99 $ 2.55 $ 1.93 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Investments [Abstract] | |
Amortized Cost and Fair Value of Investment Securities | The amortized cost, gross unrealized gains and losses, and fair value of investment securities at June 30, 2018 and December 31, 2017 were as follows (in thousands): Gross Gross Amortized Unrealized Unrealized Fair June 30, 2018 Cost Gains Losses Value Available-for-sale securities: U.S. agency securities $ 103,190 $ 30 $ (1,232 ) $ 101,988 U.S. treasury securities 33,783 - (791 ) 32,992 Obligations of state and political subdivisions 67,763 456 (347 ) 67,872 Corporate obligations 3,000 23 - 3,023 Mortgage-backed securities in government sponsored entities 45,202 3 (1,055 ) 44,150 Total available-for-sale securities $ 252,938 $ 512 $ (3,425 ) $ 250,025 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2017 Cost Gains Losses Value Available-for-sale securities: U.S. agency securities $ 99,454 $ 26 $ (593 ) $ 98,887 U.S. treasury securities 28,782 - (178 ) 28,604 Obligations of state and political subdivisions 78,409 820 (139 ) 79,090 Corporate obligations 3,000 83 - 3,083 Mortgage-backed securities in government sponsored entities 45,385 19 (377 ) 45,027 Equity securities in financial institutions 92 - (1 ) 91 Total available-for-sale securities $ 255,122 $ 948 $ (1,288 ) $ 254,782 |
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, 2018 and December 31, 2017 (in thousands). As of June 30, 2018, the Company owned 201 securities whose fair value was less than their cost basis. June 30, 2018 Less than Twelve Months Twelve Months or Greater Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses U.S. agency securities $ 76,159 $ (978 ) $ 19,842 $ (254 ) $ 96,001 $ (1,232 ) U.S. treasury securities 32,992 (791 ) - - 32,992 (791 ) Obligations of state and political subdivisions 22,564 (220 ) 6,007 (127 ) 28,571 (347 ) Mortgage-backed securities in government sponsored entities 25,918 (399 ) 17,677 (656 ) 43,595 (1,055 ) Total securities $ 157,633 $ (2,388 ) $ 43,526 $ (1,037 ) $ 201,159 $ (3,425 ) December 31, 2017 U.S. agency securities $ 74,952 $ (421 ) $ 16,928 $ (172 ) $ 91,880 $ (593 ) U.S. treasury securities 28,604 (178 ) - - 28,604 (178 ) Obligations of states and political subdivisions 14,885 (85 ) 5,958 (54 ) 20,843 (139 ) Mortgage-backed securities in government sponsored entities 27,154 (190 ) 13,822 (187 ) 40,976 (377 ) Equity securities in financial institutions 91 (1 ) - - 91 (1 ) Total securities $ 145,686 $ (875 ) $ 36,708 $ (413 ) $ 182,394 $ (1,288 ) |
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, 2018 2017 2018 2017 Gross gains on available for sale securities $ - $ 30 $ - $ 202 Gross losses on available for sale securities - (7 ) - (7 ) Net gains $ - $ 23 $ - $ 195 |
Unrealized Gains (Losses) Related to Equity Securities | The following table presents the net gains on the Company's equity investments recognized in earnings during the three month and six month periods ended June 30, 2018, and the portion of unrealized gains for the period that relates to equity investments held at June 30, 2018 (in thousands): Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Net gains recognized in equity securities during the period $ 7 $ 13 Less: Net gains realized on the sale of equity securities during the period - - Unrealized gains recognized in equity securities held at reporting date $ 7 $ 13 |
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, 2018, by contractual maturity, are shown below (in thousands): Amortized Cost Fair Value Available-for-sale debt securities: Due in one year or less $ 47,012 $ 47,121 Due after one year through five years 106,241 104,395 Due after five years through ten years 50,336 49,644 Due after ten years 49,349 48,865 Total $ 252,938 $ 250,025 |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Loans [Abstract] | |
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, 2018 and December 31, 2017 (in thousands): June 30, 2018 Total Loans Individually evaluated for impairment Loans acquired with deteriorated credit quality Collectively evaluated for impairment Real estate loans: Residential $ 213,242 $ 1,131 $ 30 $ 212,081 Commercial 309,571 13,791 1,388 294,392 Agricultural 262,691 5,204 683 256,804 Construction 27,901 - - 27,901 Consumer 9,740 - - 9,740 Other commercial loans 75,002 3,934 425 70,643 Other agricultural loans 42,131 1,471 - 40,660 State and political subdivision loans 99,922 - - 99,922 Total 1,040,200 25,531 2,526 1,012,143 Allowance for loan losses 11,941 405 - 11,536 Net loans $ 1,028,259 $ 25,126 $ 2,526 $ 1,000,607 December 31, 2017 Total Loans Individually evaluated for impairment Loans acquired with deteriorated credit quality Collectively evaluated for impairment Real estate loans: Residential $ 214,479 $ 1,065 $ 33 $ 213,381 Commercial 308,084 13,864 1,460 292,760 Agricultural 239,957 3,901 702 235,354 Construction 13,502 - - 13,502 Consumer 9,944 8 - 9,936 Other commercial loans 72,013 4,197 443 67,373 Other agricultural loans 37,809 1,363 - 36,446 State and political subdivision loans 104,737 - - 104,737 Total 1,000,525 24,398 2,638 973,489 Allowance for loan losses 11,190 410 - 10,780 Net loans $ 989,335 $ 23,988 $ 2,638 $ 962,709 |
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, 2018 and 2017, respectively (in thousands): Three months ended Six months ended June 30, June 30, 2018 2017 2018 2017 Balance at beginning of period $ 82 $ 275 $ 106 $ 389 Accretion (23 ) (108 ) (47 ) (222 ) Balance at end of period $ 59 $ 167 $ 59 $ 167 |
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, 2018 December 31, 2017 Outstanding balance $ 5,262 $ 5,295 Carrying amount 2,526 2,638 |
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, 2018 Balance Allowance Allowance Investment Allowance Real estate loans: Mortgages $ 1,138 $ 261 $ 776 $ 1,037 $ 15 Home Equity 111 14 80 94 15 Commercial 16,576 12,442 1,349 13,791 159 Agricultural 5,210 3,648 1,556 5,204 25 Construction - - - - - Consumer - - - - - Other commercial loans 4,489 3,552 382 3,934 151 Other agricultural loans 1,514 1,295 176 1,471 40 State and political subdivision loans - - - - - Total $ 29,038 $ 21,212 $ 4,319 $ 25,531 $ 405 Recorded Recorded Unpaid Investment Investment Total Principal With No With Recorded Related December 31, 2017 Balance Allowance Allowance Investment Allowance Real estate loans: Mortgages $ 1,055 $ 273 $ 700 $ 973 $ 47 Home Equity 92 40 52 92 9 Commercial 16,363 13,154 710 13,864 94 Agricultural 5,231 3,283 618 3,901 3 Construction - - - - - Consumer 10 2 6 8 - Other commercial loans 4,739 3,766 431 4,197 231 Other agricultural loans 1,397 1,238 125 1,363 26 State and political subdivision loans - - - - - Total $ 28,887 $ 21,756 $ 2,642 $ 24,398 $ 410 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, 2018 and 2017(in thousands): For the Three Months Ended June 30, 2018 June 30, 2017 Interest Interest Average Interest Income Average Interest Income Recorded Income Recognized Recorded Income Recognized Investment Recognized Cash Basis Investment Recognized Cash Basis Real estate loans: Mortgages $ 1,045 $ 3 $ - $ 986 $ 3 $ - Home Equity 95 1 - 60 1 - Commercial 13,833 120 3 12,980 134 - Agricultural 4,185 49 - 3,641 32 - Construction - - - - - - Consumer - - - 3 - - Other commercial loans 4,067 26 - 5,029 37 17 Other agricultural loans 1,342 9 - 1,515 22 - State and political subdivision loans - - - - - - Total $ 24,567 $ 208 $ 3 $ 24,214 $ 229 $ 17 For the Six Months ended June 30, 2018 June 30, 2017 Interest Interest Average Interest Income Average Interest Income Recorded Income Recognized Recorded Income Recognized Investment Recognized Cash Basis Investment Recognized Cash Basis Real estate loans: Mortgages $ 1,034 $ 7 $ - $ 940 $ 6 $ - Home Equity 101 2 - 58 2 - Commercial 13,814 242 8 9,387 158 3 Agricultural 4,135 100 - 3,513 63 - Construction - - - - - - Consumer 2 - - 2 - - Other commercial loans 4,112 52 - 5,313 77 27 Other agricultural loans 1,356 19 - 1,571 45 - State and political subdivision loans - - - - - - Total $ 24,554 $ 422 $ 8 $ 20,784 $ 351 $ 30 |
Financing Receivable Credit Exposures by Internally Assigned Grades | The following tables represent credit exposures by internally assigned grades as of June 30, 2018 and December 31, 2017 (in thousands) June 30, 2018 Pass Special Mention Substandard Doubtful Loss Ending Balance Real estate loans: Commercial $ 284,415 $ 13,347 $ 11,690 $ 119 $ - $ 309,571 Agricultural 244,605 12,427 5,659 - - 262,691 Construction 27,901 - - - - 27,901 Other commercial loans 71,036 870 2,975 121 - 75,002 Other agricultural loans 39,753 1,048 1,330 - - 42,131 State and political subdivision loans 89,602 - 10,320 - - 99,922 Total $ 757,312 $ 27,692 $ 31,974 $ 240 $ - $ 817,218 December 31, 2017 Pass Special Mention Substandard Doubtful Loss Ending Balance Real estate loans: Commercial $ 281,742 $ 15,029 $ 11,271 $ 42 $ - $ 308,084 Agricultural 222,198 11,538 6,221 - - 239,957 Construction 13,364 - 138 - - 13,502 Other commercial loans 67,706 615 3,567 125 - 72,013 Other agricultural loans 34,914 1,325 1,570 - - 37,809 State and political subdivision loans 94,125 - 10,612 - - 104,737 Total $ 714,049 $ 28,507 $ 33,379 $ 167 $ - $ 776,102 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, 2018 and December 31, 2017 ( in thousands) June 30, 2018 Performing Non-performing PCI Total Real estate loans: Mortgages $ 153,342 $ 1,375 $ 30 $ 154,747 Home Equity 58,377 118 - 58,495 Consumer 9,683 57 - 9,740 Total $ 221,402 $ 1,550 $ 30 $ 222,982 December 31, 2017 Performing Non-performing PCI Total Real estate loans: Mortgages $ 152,820 $ 1,492 $ 33 $ 154,345 Home Equity 60,022 112 - $ 60,134 Consumer 9,895 49 - $ 9,944 Total $ 222,737 $ 1,653 $ 33 $ 224,423 |
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, 2018 and December 31, 2017 (in thousands): 90 Days or 30-59 Days 60-89 Days 90 Days Total Past Total Financing Greater and June 30, 2018 Past Due Past Due Or Greater Due Current PCI Receivables Accruing Real estate loans: Mortgages $ 476 $ 202 $ 796 $ 1,474 $ 153,243 $ 30 $ 154,747 $ - Home Equity 220 8 94 322 58,173 - 58,495 - Commercial 1,649 2,019 4,201 7,869 300,314 1,388 309,571 38 Agricultural 8 1,105 702 1,815 260,193 683 262,691 543 Construction - - - - 27,901 - 27,901 - Consumer 31 26 32 89 9,651 - 9,740 32 Other commercial loans 47 8 2,324 2,379 72,198 425 75,002 - Other agricultural loans 182 569 433 1,184 40,947 - 42,131 433 State and political subdivision loans - - - - 99,922 - 99,922 - Total $ 2,613 $ 3,937 $ 8,582 $ 15,132 $ 1,022,542 $ 2,526 $ 1,040,200 $ 1,046 Loans considered non-accrual $ 617 $ 790 $ 7,536 $ 8,943 $ 1,988 $ - $ 10,931 Loans still accruing 1,996 3,147 1,046 6,189 1,020,554 2,526 1,029,269 Total $ 2,613 $ 3,937 $ 8,582 $ 15,132 $ 1,022,542 $ 2,526 $ 1,040,200 90 Days or 30-59 Days 60-89 Days 90 Days Total Past Total Financing Greater and December 31, 2017 Past Due Past Due Or Greater Due Current PCI Receivables Accruing Real estate loans: Mortgages $ 996 $ 362 $ 810 $ 2,168 $ 152,144 $ 33 $ 154,345 $ 218 Home Equity 277 86 78 441 59,693 - 60,134 - Commercial 1,353 1,010 3,865 6,228 300,396 1,460 308,084 162 Agricultural 242 - 205 447 238,808 702 239,957 30 Construction - - 133 133 13,369 - 13,502 - Consumer 53 33 49 135 9,809 - 9,944 7 Other commercial loans 132 - 2,372 2,504 69,066 443 72,013 32 Other agricultural loans - 42 106 148 37,661 - 37,809 106 State and political subdivision loans - - - - 104,737 - 104,737 - Total $ 3,053 $ 1,533 $ 7,618 $ 12,204 $ 985,683 $ 2,638 $ 1,000,525 $ 555 Loans considered non-accrual $ 816 $ 281 $ 7,063 $ 8,160 $ 2,011 $ - $ 10,171 Loans still accruing 2,237 1,252 555 4,044 983,672 2,638 990,354 Total $ 3,053 $ 1,533 $ 7,618 $ 12,204 $ 985,683 $ 2,638 $ 1,000,525 |
Financing Receivables on Nonaccrual Status | The following table reflects the financing receivables, excluding PCI loans, on non-accrual status as of June 30, 2018 and December 31, 2017, respectively. The balances are presented by class of financing receivable (in thousands): June 30, 2018 December 31, 2017 Real estate loans: Mortgages $ 1,375 $ 1,274 Home Equity 118 112 Commercial 6,262 5,192 Agricultural 167 175 Construction - 133 Consumer 25 42 Other commercial loans 2,415 2,637 Other agricultural loans 569 606 State and political subdivision - - $ 10,931 $ 10,171 |
Troubled Debt Restructurings on Financing Receivables | Loan modifications that are considered TDRs completed during the three and six months ended June 30, 2018 and 2017 were as follows (dollars in thousands): For the Three Months Ended June 30, 2018 Number of contracts Pre-modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Interest Modification Term Modification Interest Modification Term Modification Interest Modification Term Modification Real estate loans: Home Equity - 1 $ - $ 1 $ - $ 1 Commercial - 1 - 577 - 577 Agricultural - 1 - 1,523 1,523 Other agricultural loans - 4 - 176 176 Total - 7 $ - $ 2,277 $ - $ 2,277 For the Six Months Ended June 30, 2018 Number of contracts Pre-modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Interest Modification Term Modification Interest Modification Term Modification Interest Modification Term Modification Real estate loans: Mortgages - 1 $ - $ 7 $ $ 7 Home Equity - 1 - 1 - 1 Commercial - 1 - 577 - 577 Agricultural - 1 - 1,523 1,523 Other agricultural loans - 4 - 176 176 Total - 8 $ - $ 2,284 $ - $ 2,284 For the Three Months Ended June 30, 2017 Number of contracts Pre-modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Interest Modification Term Modification Interest Modification Term Modification Interest Modification Term Modification Real estate loans: Commercial - 5 $ - $ 6,093 $ - $ 6,093 Total - 5 $ - $ 6,093 $ - $ 6,093 For the Six Months Ended June 30, 2017 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 |
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, 2018 and December 31, 2017, respectively (in thousands): June 30, 2018 December 31, 2017 Individually evaluated for impairment Collectively evaluated for impairment Total Individually evaluated for impairment Collectively evaluated for impairment Total Real estate loans: Residential $ 30 $ 1,015 $ 1,045 $ 56 $ 993 $ 1,049 Commercial 159 3,635 3,794 94 3,773 3,867 Agricultural 25 3,648 3,673 3 3,140 3,143 Construction - 44 44 - 23 23 Consumer - 115 115 - 124 124 Other commercial loans 151 1,115 1,266 231 1,041 1,272 Other agricultural loans 40 549 589 26 466 492 State and political subdivision loans - 767 767 - 816 816 Unallocated - 648 648 - 404 404 Total $ 405 $ 11,536 $ 11,941 $ 410 $ 10,780 $ 11,190 |
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 months ended June 30, 2018 and 2017, respectively (in thousands): For the three months ended June 30, 2018 Balance at March 31, 2018 Charge-offs Recoveries Provision Balance at June 30, 2018 Real estate loans: Residential $ 1,077 $ (2 ) $ 69 $ (99 ) $ 1,045 Commercial 4,006 - 3 (215 ) 3,794 Agricultural 3,340 - - 333 3,673 Construction 39 - - 5 44 Consumer 123 (6 ) 7 (9 ) 115 Other commercial loans 1,273 (46 ) 11 28 1,266 Other agricultural loans 532 (7 ) - 64 589 State and political subdivision loans 789 - - (22 ) 767 Unallocated 408 - - 240 648 Total $ 11,587 $ (61 ) $ 90 $ 325 $ 11,941 For the six months ended June 30, 2018 Balance at December 31, 2017 Charge-offs Recoveries Provision Balance at June 30, 2018 Real estate loans: Residential $ 1,049 $ (17 ) $ 69 $ (56 ) $ 1,045 Commercial 3,867 - 3 (76 ) 3,794 Agricultural 3,143 - - 530 3,673 Construction 23 - - 21 44 Consumer 124 (19 ) 17 (7 ) 115 Other commercial loans 1,272 (91 ) 14 71 1,266 Other agricultural loans 492 (50 ) - 147 589 State and political subdivision loans 816 - - (49 ) 767 Unallocated 404 - - 244 648 Total $ 11,190 $ (177 ) $ 103 $ 825 $ 11,941 For the three months ended June 30, 2017 Balance at March 31, 2017 Charge-offs Recoveries Provision Balance at June 30, 2017 Real estate loans: Residential $ 1,042 $ (48 ) $ - $ 110 $ 1,104 Commercial 3,665 - 2 (126 ) 3,541 Agricultural 1,952 500 2,452 Construction 46 - - (1 ) 45 Consumer 123 (17 ) 12 7 125 Other commercial loans 1,215 - - (84 ) 1,131 Other agricultural loans 306 - 125 431 State and political subdivision loans 824 - - 14 838 Unallocated 232 - - 80 312 Total $ 9,405 $ (65 ) $ 14 $ 625 $ 9,979 For the six months ended June 30, 2017 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 |
Goodwill and Other Intangible26
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Other Intangible Assets [Abstract] | |
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, 2018 and December 31, 2017 (in thousands): June 30, 2018 December 31, 2017 Gross carrying value Accumulated amortization Net carrying value Gross carrying value Accumulated amortization Net carrying value Amortized intangible assets (1): MSRs $ 1,656 $ (1,009 ) $ 647 $ 1,605 $ (912 ) $ 693 Core deposit intangibles 1,786 (721 ) 1,065 1,786 (586 ) 1,200 Covenant not to compete 125 (81 ) 44 125 (65 ) 60 Total amortized intangible assets $ 3,567 $ (1,811 ) $ 1,756 $ 3,516 $ (1,563 ) $ 1,953 Unamortized intangible assets: Goodwill $ 23,296 $ 23,296 (1) Excludes fully amortized intangible assets |
Future Amortization Expense for Amortized Intangible Assets | The following table provides the current year and estimated future amortization expense for amortized intangible assets for the next five years. We based our projections of amortization expense shown below on existing asset balances at June 30, 2018. Future amortization expense may vary from these projections (in thousands): MSRs Core deposit intangibles Covenant not to compete Total Three months ended June 30, 2018 (actual) $ 48 $ 66 $ 8 $ 122 Six months ended June 30, 2018 (actual) 97 134 16 247 Three months ended June 30, 2017 (actual) 45 66 7 118 Six months June 30, 2017 (actual) 91 134 15 240 Estimate for year ended December 31, Remaining 2018 88 130 15 233 2019 157 230 29 416 2020 123 197 - 320 2021 94 165 - 259 2022 69 133 - 202 |
Repurchase Agreements (Tables)
Repurchase Agreements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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, 2018 and D ecember 31, 2017 Remaining Contractual Maturity of the Agreements Overnight and Up to Greater than June 30, 2018 Continuous 30 Days 30 - 90 Days 90 days Total Repurchase Agreements: U.S. agency securities $ 18,909 $ - $ - $ 1,998 $ 20,907 Total carrying value of collateral pledged $ 18,909 $ - $ - $ 1,998 $ 20,907 Total liability recognized for repurchase agreements $ 15,061 December 31, 2017 Repurchase Agreements: U.S. agency securities $ 16,027 $ - $ - $ 2,035 $ 18,062 Total carrying value of collateral pledged $ 16,027 $ - $ - $ 2,035 $ 18,062 Total liability recognized for repurchase agreements $ 14,989 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 and the line item on the Consolidated Statement of Income where such amounts are included, for the three months ended June 30, 2018 and 2017, respectively (in thousands): Three Months Ended Six Months Ended June 30, June 30, Affected line item on the Consolidated 2018 2017 2018 2017 Statement of income Service cost $ 90 $ 84 $ 179 $ 175 Salaries and Employee Benefits Interest cost 162 168 325 335 Other Expenses Expected return on plan assets (345 ) (273 ) (689 ) (547 ) Other Expenses Net amortization and deferral 47 52 93 112 Other Expenses Net periodic (benefit) cost $ (46 ) $ 31 $ (92 ) $ 75 |
Restricted Stock Activity | The following table details the vesting, awarding and forfeiting of restricted shares during the three and six months ended June 30, 2018: Three months Six months Weighted Weighted Unvested Average Unvested Average Shares Market Price Shares Market Price Outstanding, beginning of period 8,691 $ 51.19 8,783 $ 51.20 Granted 4,869 62.91 4,869 62.91 Forfeited - - - - Vested (3,626 ) (50.54 ) (3,718 ) (50.58 ) Outstanding, end of period 9,934 $ 57.18 9,934 $ 57.18 |
Accumulated Comprehensive Loss
Accumulated Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accumulated Comprehensive Loss [Abstract] | |
Changes in Accumulated Other Comprehensive Loss by Component, Net of Tax | The following tables present the changes in accumulated other comprehensive loss by component net of tax for the three and six months ended June 30, 2018 and 2017 (in thousands): Six months ended June 30, 2018 Unrealized gain (loss) on available for sale securities (a) Defined Benefit Pension Items (a) Total Balance as of December 31, 2017 $ (269 ) $ (3,129 ) $ (3,398 ) Change in Accounting policy for equity securities 1 - 1 Other comprehensive loss before reclassifications (net of tax) (2,034 ) - (2,034 ) Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) - 74 74 Net current period other comprehensive loss (2,034 ) 74 (1,960 ) Balance as of June 30, 2018 $ (2,302 ) $ (3,055 ) $ (5,357 ) Six months ended June 30, 2017 Unrealized gain (loss) on available for sale securities (a) Defined Benefit Pension Items (a) Total Balance as of December 31, 2016 $ 1,306 $ (2,698 ) $ (1,392 ) Other comprehensive income before reclassifications (net of tax) 478 - 478 Amounts reclassified from accumulated other comprehensive loss (net of tax) (129 ) 74 (55 ) Net current period other comprehensive income 349 74 423 Balance as of June 30, 2017 $ 1,655 $ (2,624 ) $ (969 ) Three months ended June 30, 2018 Unrealized gain (loss) on available for sale securities (a) Defined Benefit Pension Items (a) Total Balance as of March 31, 2018 $ (1,885 ) $ (3,092 ) $ (4,977 ) Other comprehensive loss before reclassifications (net of tax) (417 ) - (417 ) Amounts reclassified from accumulated other comprehensive loss (net of tax) - 37 37 Net current period other comprehensive income (loss) (417 ) 37 (380 ) Balance as of June 30, 2018 $ (2,302 ) $ (3,055 ) $ (5,357 ) Three months ended June 30, 2017 Unrealized gain (loss) on available for sale securities (a) Defined Benefit Pension Items (a) Total Balance as of March 31, 2017 $ 1,238 $ (2,659 ) $ (1,421 ) Other comprehensive income before reclassifications (net of tax) 432 - 432 Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) (15 ) 35 20 Net current period other comprehensive income (loss) 417 35 452 Balance as of June 30, 2017 $ 1,655 $ (2,624 ) $ (969 ) (a) Amounts in parentheses indicate debits on the Consolidated Balalance Sheet |
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, 2018 and 2017 (in thousands): Details about accumulated other comprehensive income (loss) Amount reclassified from accumulated comprehensive income (loss) (a) Affected line item in the Consolidated Statement of Income Three Months Ended June 30, 2018 2017 Unrealized gains and losses on available for sale securities $ - $ 23 Available for sale securities gains, net - (8 ) Provision for income taxes $ - $ 15 Net of tax Defined benefit pension items $ (47 ) $ (52 ) Salaries and employee benefits 10 17 Provision for income taxes $ (37 ) $ (35 ) Net of tax Total reclassifications $ (37 ) $ (20 ) Six Months Ended June 30 2018 2017 Unrealized gains and losses on available for sale securities $ - $ 195 Available for sale securities gains, net - (66 ) Provision for income taxes $ - $ 129 Net of tax Defined benefit pension items $ (93 ) $ (112 ) Salaries and employee benefits 19 38 Provision for income taxes $ (74 ) $ (74 ) Net of tax Total reclassifications $ (74 ) $ 55 (a) Amounts in parentheses indicate expenses and other amounts indicate income on the Consolidated Statement of Income |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Measurements [Abstract] | |
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, 2018 and December 31, 2017 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, 2018 Level I Level II Level III Total Fair value measurements on a recurring basis: Assets Equity securities in financial institutions $ 195 $ - $ - $ 195 Available for sale securities: U.S. Agency securities - 101,988 - 101,988 U.S. Treasury securities 32,992 - - 32,992 Obligations of state and political subdivisions - 67,872 - 67,872 Corporate obligations - 3,023 - 3,023 Mortgage-backed securities in government sponsored entities - 44,150 - 44,150 December 31, 2017 Level I Level II Level III Total Fair value measurements on a recurring basis: Available for sale securities: U.S. Agency securities $ - $ 98,887 $ - $ 98,887 U.S. Treasuries securities 28,604 - - 28,604 Obligations of state and political subdivisions - 79,090 - 79,090 Corporate obligations - 3,083 - 3,083 Mortgage-backed securities in government sponsored entities - 45,027 - 45,027 Equity securities in financial institutions 91 - - 91 |
Summary of Assets Measured at Fair Value on Non-recurring Basis | Assets measured at fair value on a nonrecurring basis as of June 30, 2018 and December 31, 2017 are included in the table below ( in thousands) June 30, 2018 Level I Level II Level III Total Impaired Loans $ - $ - $ 3,470 $ 3,470 Other real estate owned - - 326 326 December 31, 2017 Impaired Loans $ - $ - $ 1,569 $ 1,569 Other real estate owned - - 1,024 1,024 |
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). June 30, 2018 Fair Value Valuation Technique(s) Unobservable input Range Weighted average Impaired Loans $ 3,470 Appraised Collateral Values Discount for time since appraisal 0-100% 27.32 % Selling costs 5%-11% 7.88 % Holding period 0 - 12 months 11.4 months Other real estate owned 326 Appraised Collateral Values Discount for time since appraisal 25-35% 27.45 % December 31, 2017 Fair Value Valuation Technique(s) Unobservable input Range Impaired Loans 1,569 Appraised Collateral Values Discount for time since appraisal 0-100% 30.83 % Selling costs 5%-9% 8.35 % Holding period 6 - 12 months 11 months Other real estate owned 1,024 Appraised Collateral Values Discount for time since appraisal 15-65% 26.26 % |
Fair Value of Financial Instruments | The carrying amount and fair value of the Company's financial instruments that are not required to be measured or reported at fair value on a recurring basis are as follows (in thousands): Carrying June 30, 2018 Amount Fair Value Level I Level II Level III Financial assets: Cash and due from banks $ 15,613 $ 15,613 $ 15,613 $ - $ - Interest bearing time deposits with other banks 13,762 13,766 - - 13,766 Loans held for sale 1,931 1,931 1,931 - - Net loans 1,028,259 1,021,166 - - 1,021,166 Bank owned life insurance 27,189 27,189 27,189 - - Regulatory stock 7,220 7,220 7,220 - - Accrued interest receivable 4,285 4,285 4,285 - - Financial liabilities: Deposits $ 1,118,592 $ 1,113,001 $ 847,151 $ - $ 265,850 Borrowed funds 133,652 132,322 96,566 - 35,756 Accrued interest payable 903 903 903 - - Carrying December 31, 2017 Amount Fair Value Level I Level II Level III Financial assets: Cash and due from banks $ 18,517 $ 18,517 $ 18,517 $ - $ - Interest bearing time deposits with other banks 10,283 10,287 - - 10,287 Loans held for sale 1,439 1,439 1,439 Net loans 989,335 981,238 - - 981,238 Bank owned life insurance 26,883 26,883 26,883 - - Regulatory stock 6,784 6,784 6,784 - - Accrued interest receivable 4,196 4,196 4,196 - - Financial liabilities: Deposits $ 1,104,943 $ 1,101,583 $ 838,490 $ - $ 263,093 Borrowed funds 114,664 113,452 77,650 - 35,802 Accrued interest payable 897 897 897 - - |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ||||
Cumulative effect adjustment from accumulated other comprehensive income to retained earnings | $ 1 | $ 1 | ||
Salaries and employee benefits | 4,737 | $ 4,377 | 9,572 | $ 8,743 |
Other noninterest expense | (1,429) | $ (1,415) | (2,783) | $ (2,712) |
ASU 2016-01 [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | ||||
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ||||
Cumulative effect adjustment from accumulated other comprehensive income to retained earnings | 1 | 1 | ||
ASU 2016-01 [Member] | Retained Earnings [Member] | ||||
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ||||
Cumulative effect adjustment from accumulated other comprehensive income to retained earnings | (1) | (1) | ||
ASU 2017-07 [Member] | ||||
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ||||
Salaries and employee benefits | 53 | 100 | ||
Other noninterest expense | $ (53) | $ (100) |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue from Customers [Abstract] | ||||
Revenue from customers | $ 1,566 | $ 3,187 | ||
Service Charges [Member] | ||||
Revenue from Customers [Abstract] | ||||
Revenue from customers | 1,170 | 2,274 | ||
Overdraft Fees [Member] | ||||
Revenue from Customers [Abstract] | ||||
Revenue from customers | 381 | 748 | ||
Statement Fees [Member] | ||||
Revenue from Customers [Abstract] | ||||
Revenue from customers | 51 | 105 | ||
Interchange Revenue [Member] | ||||
Revenue from Customers [Abstract] | ||||
Revenue from customers | 574 | 1,105 | ||
ATM Income [Member] | ||||
Revenue from Customers [Abstract] | ||||
Revenue from customers | 101 | 197 | ||
Other Service Charges [Member] | ||||
Revenue from Customers [Abstract] | ||||
Revenue from customers | 63 | 119 | ||
Trust [Member] | ||||
Revenue from Customers [Abstract] | ||||
Revenue from customers | 150 | $ 188 | 401 | $ 409 |
Brokerage and Insurance [Member] | ||||
Revenue from Customers [Abstract] | ||||
Revenue from customers | 168 | $ 114 | 349 | $ 305 |
Other [Member] | ||||
Revenue from Customers [Abstract] | ||||
Revenue from customers | $ 78 | $ 163 | ||
Revenue [Member] | Product Concentration Risk [Member] | Products and Services Not within the Scope of ASC 606 [Member] | ||||
Concentration Risk [Abstract] | ||||
Concentration risk percentage | 90.13% | 89.80% |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings per share basic and diluted [Abstract] | ||||
Net income applicable to common stock | $ 4,691 | $ 3,468 | $ 8,938 | $ 6,771 |
Basic earnings per share computation [Abstract] | ||||
Weighted average common shares outstanding (in shares) | 3,507,242 | 3,514,394 | 3,509,882 | 3,513,925 |
Earnings per share - basic (in dollars per share) | $ 1.34 | $ 0.99 | $ 2.55 | $ 1.93 |
Diluted earnings per share computation [Abstract] | ||||
Weighted average common shares outstanding for basic earnings per share (in shares) | 3,507,242 | 3,514,394 | 3,509,882 | 3,513,925 |
Add: Dilutive effects of restricted stock (in shares) | 1,467 | 1,188 | 631 | 610 |
Weighted average common shares outstanding for dilutive earnings per share (in shares) | 3,508,709 | 3,515,582 | 3,510,513 | 3,514,535 |
Earnings per share - diluted (in dollars per share) | $ 1.34 | $ 0.99 | $ 2.55 | $ 1.93 |
Restricted Stock [Member] | ||||
Antidilutive Securities [Abstract] | ||||
Antidilutive restricted stock excluded from net income per share calculations (in shares) | 465 | 1,562 | 3,349 | 4,921 |
Restricted Stock [Member] | Minimum [Member] | ||||
Antidilutive Securities [Abstract] | ||||
Antidilutive stock share price range (in dollars per share) | $ 46.69 | $ 49.87 | $ 46.69 | $ 47.81 |
Restricted Stock [Member] | Maximum [Member] | ||||
Antidilutive Securities [Abstract] | ||||
Antidilutive stock share price range (in dollars per share) | $ 61.04 | $ 53.15 | $ 61.04 | $ 53.15 |
Investments (Details)
Investments (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018USD ($)Security | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)Security | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Debt Securities [Abstract] | |||||
Amortized cost | $ 252,938 | $ 252,938 | |||
Gross unrealized gains | 512 | 512 | |||
Gross unrealized losses | (3,425) | (3,425) | |||
Fair value | $ 250,025 | $ 250,025 | $ 254,782 | ||
Equity Securities [Abstract] | |||||
Amortized cost | 92 | ||||
Gross unrealized gains | 0 | ||||
Gross unrealized losses | (1) | ||||
Fair value | 91 | ||||
Total Available-for-sale Securities [Abstract] | |||||
Amortized cost | 255,122 | ||||
Gross unrealized gains | 948 | ||||
Gross unrealized losses | (1,288) | ||||
Fair value | 254,782 | ||||
Number of securities owned with fair value less than cost | Security | 201 | 201 | |||
Available-for-sale, Debt Securities, Fair Value and Gross Unrealized Losses [Abstract] | |||||
Less than twelve months, Fair value | $ 157,633 | $ 157,633 | |||
Twelve months or greater, Fair value | 43,526 | 43,526 | |||
Total, Fair value | 201,159 | 201,159 | |||
Less than twelve months, Gross unrealized losses | (2,388) | (2,388) | |||
Twelve months or greater, Gross unrealized losses | (1,037) | (1,037) | |||
Total, Gross Unrealized Losses | (3,425) | (3,425) | |||
Available-for-sale Securities, Fair Value and Gross Unrealized Losses [Abstract] | |||||
Less than twelve months, Fair value | 145,686 | ||||
Twelve months or greater, Fair value | 36,708 | ||||
Total, Fair value | 182,394 | ||||
Less than twelve months, Gross unrealized losses | (875) | ||||
Twelve months or greater, Gross unrealized losses | (413) | ||||
Total, Gross Unrealized Losses | (1,288) | ||||
Proceeds from sale of securities available-for-sale | 0 | $ 6,641 | 0 | $ 25,407 | |
Realized investment gains (losses) [Abstract] | |||||
Gross gains on available for sale securities | 0 | 30 | 0 | 202 | |
Gross losses on available for sale securities | 0 | (7) | 0 | (7) | |
Net gains | 0 | 23 | 0 | 195 | |
Equity Securities Fv Ni Gain (Loss) [Abstract] | |||||
Net gains recognized in equity securities during the period | 7 | $ 0 | 13 | $ 0 | |
Less: Net gains realized on the sale of equity securities during the period | 0 | 0 | |||
Unrealized gains recognized in equity securities held at reporting date | 7 | 13 | |||
Investment securities pledged as collateral | 240,800 | 240,800 | 243,400 | ||
Available-for-Sale Debt Securities, Amortized Cost [Abstract] | |||||
Due in one year or less | 47,012 | 47,012 | |||
Due after one year through five years | 106,241 | 106,241 | |||
Due after five years through ten years | 50,336 | 50,336 | |||
Due after ten years | 49,349 | 49,349 | |||
Amortized cost | 252,938 | 252,938 | |||
Available-for-Sale Debt Securities, Fair Value [Abstract] | |||||
Due in one year or less | 47,121 | 47,121 | |||
Due after one year through five years | 104,395 | 104,395 | |||
Due after five years through ten years | 49,644 | 49,644 | |||
Due after ten years | 48,865 | 48,865 | |||
Fair value | 250,025 | 250,025 | 254,782 | ||
U.S. Agency Securities [Member] | |||||
Debt Securities [Abstract] | |||||
Amortized cost | 103,190 | 103,190 | 99,454 | ||
Gross unrealized gains | 30 | 30 | 26 | ||
Gross unrealized losses | (1,232) | (1,232) | (593) | ||
Fair value | 101,988 | 101,988 | 98,887 | ||
Available-for-sale, Debt Securities, Fair Value and Gross Unrealized Losses [Abstract] | |||||
Less than twelve months, Fair value | 76,159 | 76,159 | 74,952 | ||
Twelve months or greater, Fair value | 19,842 | 19,842 | 16,928 | ||
Total, Fair value | 96,001 | 96,001 | 91,880 | ||
Less than twelve months, Gross unrealized losses | (978) | (978) | (421) | ||
Twelve months or greater, Gross unrealized losses | (254) | (254) | (172) | ||
Total, Gross Unrealized Losses | (1,232) | (1,232) | (593) | ||
Available-for-Sale Debt Securities, Amortized Cost [Abstract] | |||||
Amortized cost | 103,190 | 103,190 | 99,454 | ||
Available-for-Sale Debt Securities, Fair Value [Abstract] | |||||
Fair value | 101,988 | 101,988 | 98,887 | ||
U.S. Treasury Securities [Member] | |||||
Debt Securities [Abstract] | |||||
Amortized cost | 33,783 | 33,783 | 28,782 | ||
Gross unrealized gains | 0 | 0 | 0 | ||
Gross unrealized losses | (791) | (791) | (178) | ||
Fair value | 32,992 | 32,992 | 28,604 | ||
Available-for-sale, Debt Securities, Fair Value and Gross Unrealized Losses [Abstract] | |||||
Less than twelve months, Fair value | 32,992 | 32,992 | 28,604 | ||
Twelve months or greater, Fair value | 0 | 0 | 0 | ||
Total, Fair value | 32,992 | 32,992 | 28,604 | ||
Less than twelve months, Gross unrealized losses | (791) | (791) | (178) | ||
Twelve months or greater, Gross unrealized losses | 0 | 0 | 0 | ||
Total, Gross Unrealized Losses | (791) | (791) | (178) | ||
Available-for-Sale Debt Securities, Amortized Cost [Abstract] | |||||
Amortized cost | 33,783 | 33,783 | 28,782 | ||
Available-for-Sale Debt Securities, Fair Value [Abstract] | |||||
Fair value | 32,992 | 32,992 | 28,604 | ||
Obligations of State and Political Subdivisions [Member] | |||||
Debt Securities [Abstract] | |||||
Amortized cost | 67,763 | 67,763 | 78,409 | ||
Gross unrealized gains | 456 | 456 | 820 | ||
Gross unrealized losses | (347) | (347) | (139) | ||
Fair value | 67,872 | 67,872 | 79,090 | ||
Available-for-sale, Debt Securities, Fair Value and Gross Unrealized Losses [Abstract] | |||||
Less than twelve months, Fair value | 22,564 | 22,564 | 14,885 | ||
Twelve months or greater, Fair value | 6,007 | 6,007 | 5,958 | ||
Total, Fair value | 28,571 | 28,571 | 20,843 | ||
Less than twelve months, Gross unrealized losses | (220) | (220) | (85) | ||
Twelve months or greater, Gross unrealized losses | (127) | (127) | (54) | ||
Total, Gross Unrealized Losses | (347) | (347) | (139) | ||
Available-for-Sale Debt Securities, Amortized Cost [Abstract] | |||||
Amortized cost | 67,763 | 67,763 | 78,409 | ||
Available-for-Sale Debt Securities, Fair Value [Abstract] | |||||
Fair value | 67,872 | 67,872 | 79,090 | ||
Corporate Obligations [Member] | |||||
Debt Securities [Abstract] | |||||
Amortized cost | 3,000 | 3,000 | 3,000 | ||
Gross unrealized gains | 23 | 23 | 83 | ||
Gross unrealized losses | 0 | 0 | 0 | ||
Fair value | 3,023 | 3,023 | 3,083 | ||
Available-for-Sale Debt Securities, Amortized Cost [Abstract] | |||||
Amortized cost | 3,000 | 3,000 | 3,000 | ||
Available-for-Sale Debt Securities, Fair Value [Abstract] | |||||
Fair value | 3,023 | 3,023 | 3,083 | ||
Mortgage-backed Securities in Government Sponsored Entities [Member] | |||||
Debt Securities [Abstract] | |||||
Amortized cost | 45,202 | 45,202 | 45,385 | ||
Gross unrealized gains | 3 | 3 | 19 | ||
Gross unrealized losses | (1,055) | (1,055) | (377) | ||
Fair value | 44,150 | 44,150 | 45,027 | ||
Available-for-sale, Debt Securities, Fair Value and Gross Unrealized Losses [Abstract] | |||||
Less than twelve months, Fair value | 25,918 | 25,918 | 27,154 | ||
Twelve months or greater, Fair value | 17,677 | 17,677 | 13,822 | ||
Total, Fair value | 43,595 | 43,595 | 40,976 | ||
Less than twelve months, Gross unrealized losses | (399) | (399) | (190) | ||
Twelve months or greater, Gross unrealized losses | (656) | (656) | (187) | ||
Total, Gross Unrealized Losses | (1,055) | (1,055) | (377) | ||
Available-for-Sale Debt Securities, Amortized Cost [Abstract] | |||||
Amortized cost | 45,202 | 45,202 | 45,385 | ||
Available-for-Sale Debt Securities, Fair Value [Abstract] | |||||
Fair value | $ 44,150 | $ 44,150 | 45,027 | ||
Equity Securities in Financial Institutions [Member] | |||||
Available-for-sale Securities, Fair Value and Gross Unrealized Losses [Abstract] | |||||
Less than twelve months, Fair value | 91 | ||||
Twelve months or greater, Fair value | 0 | ||||
Total, Fair value | 91 | ||||
Less than twelve months, Gross unrealized losses | (1) | ||||
Twelve months or greater, Gross unrealized losses | 0 | ||||
Total, Gross Unrealized Losses | $ (1) |
Loans (Details)
Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Segments of loan portfolio and allowance for loan losses [Abstract] | |||||
Total financing receivables | $ 1,040,200 | $ 1,040,200 | $ 1,000,525 | ||
Individually evaluated for impairment | 25,531 | 25,531 | 24,398 | ||
Loans acquired with deteriorated credit quality | 2,526 | 2,526 | 2,638 | ||
Collectively evaluated for impairment | 1,012,143 | 1,012,143 | 973,489 | ||
Allowance for loan losses | 11,941 | 11,941 | 11,190 | ||
Allowance for loan losses related to individually evaluated for impairment | 405 | 405 | 410 | ||
Allowance for loan losses related to loans acquired with deteriorated credit quality | 0 | 0 | 0 | ||
Allowance for loan losses related to collectively evaluated for impairment | 11,536 | 11,536 | 10,780 | ||
Net loans | 1,028,259 | 1,028,259 | 989,335 | ||
Net loans, individually evaluated for impairment | 25,126 | 25,126 | 23,988 | ||
Net loans, loans acquired with deteriorated credit quality | 2,526 | 2,526 | 2,638 | ||
Net loans, collectively evaluated for impairment | 1,000,607 | $ 1,000,607 | 962,709 | ||
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 | ||||
Real Estate Loans [Member] | Residential [Member] | |||||
Segments of loan portfolio and allowance for loan losses [Abstract] | |||||
Total financing receivables | 213,242 | $ 213,242 | 214,479 | ||
Individually evaluated for impairment | 1,131 | 1,131 | 1,065 | ||
Loans acquired with deteriorated credit quality | 30 | 30 | 33 | ||
Collectively evaluated for impairment | 212,081 | 212,081 | 213,381 | ||
Real Estate Loans [Member] | Commercial [Member] | |||||
Segments of loan portfolio and allowance for loan losses [Abstract] | |||||
Total financing receivables | 309,571 | 309,571 | 308,084 | ||
Individually evaluated for impairment | 13,791 | 13,791 | 13,864 | ||
Loans acquired with deteriorated credit quality | 1,388 | 1,388 | 1,460 | ||
Collectively evaluated for impairment | 294,392 | 294,392 | 292,760 | ||
Real Estate Loans [Member] | Agricultural [Member] | |||||
Segments of loan portfolio and allowance for loan losses [Abstract] | |||||
Total financing receivables | 262,691 | 262,691 | 239,957 | ||
Individually evaluated for impairment | 5,204 | 5,204 | 3,901 | ||
Loans acquired with deteriorated credit quality | 683 | 683 | 702 | ||
Collectively evaluated for impairment | 256,804 | 256,804 | 235,354 | ||
Real Estate Loans [Member] | Construction [Member] | |||||
Segments of loan portfolio and allowance for loan losses [Abstract] | |||||
Total financing receivables | 27,901 | 27,901 | 13,502 | ||
Individually evaluated for impairment | 0 | 0 | 0 | ||
Loans acquired with deteriorated credit quality | 0 | 0 | 0 | ||
Collectively evaluated for impairment | 27,901 | 27,901 | 13,502 | ||
Consumer [Member] | |||||
Segments of loan portfolio and allowance for loan losses [Abstract] | |||||
Total financing receivables | 9,740 | 9,740 | 9,944 | ||
Individually evaluated for impairment | 0 | 0 | 8 | ||
Loans acquired with deteriorated credit quality | 0 | 0 | 0 | ||
Collectively evaluated for impairment | 9,740 | 9,740 | 9,936 | ||
Other Commercial Loans [Member] | |||||
Segments of loan portfolio and allowance for loan losses [Abstract] | |||||
Total financing receivables | 75,002 | 75,002 | 72,013 | ||
Individually evaluated for impairment | 3,934 | 3,934 | 4,197 | ||
Loans acquired with deteriorated credit quality | 425 | 425 | 443 | ||
Collectively evaluated for impairment | 70,643 | 70,643 | 67,373 | ||
Other Agricultural Loans [Member] | |||||
Segments of loan portfolio and allowance for loan losses [Abstract] | |||||
Total financing receivables | 42,131 | 42,131 | 37,809 | ||
Individually evaluated for impairment | 1,471 | 1,471 | 1,363 | ||
Loans acquired with deteriorated credit quality | 0 | 0 | 0 | ||
Collectively evaluated for impairment | 40,660 | 40,660 | 36,446 | ||
State and Political Subdivision Loans [Member] | |||||
Segments of loan portfolio and allowance for loan losses [Abstract] | |||||
Total financing receivables | 99,922 | 99,922 | 104,737 | ||
Individually evaluated for impairment | 0 | 0 | 0 | ||
Loans acquired with deteriorated credit quality | 0 | 0 | 0 | ||
Collectively evaluated for impairment | 99,922 | 99,922 | 104,737 | ||
First National Bank of Fredericksburg [Member] | |||||
Changes in the accretable yield for purchased credit-impaired loans [Roll Forward] | |||||
Balance at beginning of period | 82 | $ 275 | 106 | $ 389 | |
Accretion | (23) | (108) | (47) | (222) | |
Balance at end of period | 59 | $ 167 | 59 | $ 167 | |
Loans acquired with specific evidence of deterioration in credit quality [Abstract] | |||||
Outstanding balance | 5,262 | 5,262 | 5,295 | ||
Carrying amount | $ 2,526 | $ 2,526 | $ 2,638 |
Loans, Impaired Financing Recei
Loans, Impaired Financing Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Impaired Financing Receivable [Abstract] | |||||
Unpaid Principal Balance | $ 29,038 | $ 29,038 | $ 28,887 | ||
Recorded Investment With No Allowance | 21,212 | 21,212 | 21,756 | ||
Recorded Investment With Allowance | 4,319 | 4,319 | 2,642 | ||
Total Recorded Investment | 25,531 | 25,531 | 24,398 | ||
Related Allowance | 405 | 405 | 410 | ||
Average Recorded Investment | 24,567 | $ 24,214 | 24,554 | $ 20,784 | |
Interest Income Recognized | 208 | 229 | 422 | 351 | |
Interest Income Recognized Cash Basis | 3 | 17 | 8 | 30 | |
Real Estate Loans [Member] | Mortgages [Member] | |||||
Impaired Financing Receivable [Abstract] | |||||
Unpaid Principal Balance | 1,138 | 1,138 | 1,055 | ||
Recorded Investment With No Allowance | 261 | 261 | 273 | ||
Recorded Investment With Allowance | 776 | 776 | 700 | ||
Total Recorded Investment | 1,037 | 1,037 | 973 | ||
Related Allowance | 15 | 15 | 47 | ||
Average Recorded Investment | 1,045 | 986 | 1,034 | 940 | |
Interest Income Recognized | 3 | 3 | 7 | 6 | |
Interest Income Recognized Cash Basis | 0 | 0 | 0 | 0 | |
Real Estate Loans [Member] | Home Equity [Member] | |||||
Impaired Financing Receivable [Abstract] | |||||
Unpaid Principal Balance | 111 | 111 | 92 | ||
Recorded Investment With No Allowance | 14 | 14 | 40 | ||
Recorded Investment With Allowance | 80 | 80 | 52 | ||
Total Recorded Investment | 94 | 94 | 92 | ||
Related Allowance | 15 | 15 | 9 | ||
Average Recorded Investment | 95 | 60 | 101 | 58 | |
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 | 16,576 | 16,576 | 16,363 | ||
Recorded Investment With No Allowance | 12,442 | 12,442 | 13,154 | ||
Recorded Investment With Allowance | 1,349 | 1,349 | 710 | ||
Total Recorded Investment | 13,791 | 13,791 | 13,864 | ||
Related Allowance | 159 | 159 | 94 | ||
Average Recorded Investment | 13,833 | 12,980 | 13,814 | 9,387 | |
Interest Income Recognized | 120 | 134 | 242 | 158 | |
Interest Income Recognized Cash Basis | 3 | 0 | 8 | 3 | |
Real Estate Loans [Member] | Agricultural [Member] | |||||
Impaired Financing Receivable [Abstract] | |||||
Unpaid Principal Balance | 5,210 | 5,210 | 5,231 | ||
Recorded Investment With No Allowance | 3,648 | 3,648 | 3,283 | ||
Recorded Investment With Allowance | 1,556 | 1,556 | 618 | ||
Total Recorded Investment | 5,204 | 5,204 | 3,901 | ||
Related Allowance | 25 | 25 | 3 | ||
Average Recorded Investment | 4,185 | 3,641 | 4,135 | 3,513 | |
Interest Income Recognized | 49 | 32 | 100 | 63 | |
Interest Income Recognized Cash Basis | 0 | 0 | 0 | 0 | |
Real Estate Loans [Member] | Construction [Member] | |||||
Impaired Financing Receivable [Abstract] | |||||
Unpaid Principal Balance | 0 | 0 | 0 | ||
Recorded Investment With No Allowance | 0 | 0 | 0 | ||
Recorded Investment With Allowance | 0 | 0 | 0 | ||
Total Recorded Investment | 0 | 0 | 0 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 0 | 0 | 0 | 0 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | |
Interest Income Recognized Cash Basis | 0 | 0 | 0 | 0 | |
Consumer [Member] | |||||
Impaired Financing Receivable [Abstract] | |||||
Unpaid Principal Balance | 0 | 0 | 10 | ||
Recorded Investment With No Allowance | 0 | 0 | 2 | ||
Recorded Investment With Allowance | 0 | 0 | 6 | ||
Total Recorded Investment | 0 | 0 | 8 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 0 | 3 | 2 | 2 | |
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 | 4,489 | 4,489 | 4,739 | ||
Recorded Investment With No Allowance | 3,552 | 3,552 | 3,766 | ||
Recorded Investment With Allowance | 382 | 382 | 431 | ||
Total Recorded Investment | 3,934 | 3,934 | 4,197 | ||
Related Allowance | 151 | 151 | 231 | ||
Average Recorded Investment | 4,067 | 5,029 | 4,112 | 5,313 | |
Interest Income Recognized | 26 | 37 | 52 | 77 | |
Interest Income Recognized Cash Basis | 0 | 17 | 0 | 27 | |
Other Agricultural Loans [Member] | |||||
Impaired Financing Receivable [Abstract] | |||||
Unpaid Principal Balance | 1,514 | 1,514 | 1,397 | ||
Recorded Investment With No Allowance | 1,295 | 1,295 | 1,238 | ||
Recorded Investment With Allowance | 176 | 176 | 125 | ||
Total Recorded Investment | 1,471 | 1,471 | 1,363 | ||
Related Allowance | 40 | 40 | 26 | ||
Average Recorded Investment | 1,342 | 1,515 | 1,356 | 1,571 | |
Interest Income Recognized | 9 | 22 | 19 | 45 | |
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, 2018 | Dec. 31, 2017 | |
Financing Receivable by credit exposure [Abstract] | ||
Total | $ 222,982 | $ 224,423 |
Minimum [Member] | ||
Financing Receivable [Abstract] | ||
Percentage of dollar volume of commercial loan portfolio to be reviewed | 50.00% | |
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 | 309,571 | 308,084 |
Real Estate Loans [Member] | Agricultural [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 262,691 | 239,957 |
Real Estate Loans [Member] | Construction [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 27,901 | 13,502 |
Real Estate Loans [Member] | Mortgages [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 154,747 | 154,345 |
Real Estate Loans [Member] | Home Equity [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 58,495 | 60,134 |
Consumer [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 9,740 | 9,944 |
Other Commercial Loans [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 75,002 | 72,013 |
Other Agricultural Loans [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 42,131 | 37,809 |
State and Political Subdivision Loans [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 99,922 | 104,737 |
Pass [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 757,312 | 714,049 |
Pass [Member] | Real Estate Loans [Member] | Commercial [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 284,415 | 281,742 |
Pass [Member] | Real Estate Loans [Member] | Agricultural [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 244,605 | 222,198 |
Pass [Member] | Real Estate Loans [Member] | Construction [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 27,901 | 13,364 |
Pass [Member] | Other Commercial Loans [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 71,036 | 67,706 |
Pass [Member] | Other Agricultural Loans [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 39,753 | 34,914 |
Pass [Member] | State and Political Subdivision Loans [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 89,602 | 94,125 |
Special Mention [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 27,692 | 28,507 |
Special Mention [Member] | Real Estate Loans [Member] | Commercial [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 13,347 | 15,029 |
Special Mention [Member] | Real Estate Loans [Member] | Agricultural [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 12,427 | 11,538 |
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 | 870 | 615 |
Special Mention [Member] | Other Agricultural Loans [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 1,048 | 1,325 |
Special Mention [Member] | State and Political Subdivision Loans [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 0 | 0 |
Substandard [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 31,974 | 33,379 |
Substandard [Member] | Real Estate Loans [Member] | Commercial [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 11,690 | 11,271 |
Substandard [Member] | Real Estate Loans [Member] | Agricultural [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 5,659 | 6,221 |
Substandard [Member] | Real Estate Loans [Member] | Construction [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 0 | 138 |
Substandard [Member] | Other Commercial Loans [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 2,975 | 3,567 |
Substandard [Member] | Other Agricultural Loans [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 1,330 | 1,570 |
Substandard [Member] | State and Political Subdivision Loans [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 10,320 | 10,612 |
Doubtful [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 240 | 167 |
Doubtful [Member] | Real Estate Loans [Member] | Commercial [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 119 | 42 |
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 | 121 | 125 |
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 | 817,218 | 776,102 |
Performing [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 221,402 | 222,737 |
Performing [Member] | Real Estate Loans [Member] | Mortgages [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 153,342 | 152,820 |
Performing [Member] | Real Estate Loans [Member] | Home Equity [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 58,377 | 60,022 |
Performing [Member] | Consumer [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 9,683 | 9,895 |
Nonperforming [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 1,550 | 1,653 |
Nonperforming [Member] | Real Estate Loans [Member] | Mortgages [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 1,375 | 1,492 |
Nonperforming [Member] | Real Estate Loans [Member] | Home Equity [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 118 | 112 |
Nonperforming [Member] | Consumer [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 57 | 49 |
PCI [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 30 | 33 |
PCI [Member] | Real Estate Loans [Member] | Mortgages [Member] | ||
Financing Receivable by credit exposure [Abstract] | ||
Total | 30 | 33 |
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 | $ 0 |
Loans, Past Due (Details)
Loans, Past Due (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Recorded investment of past due [Abstract] | ||
Total past due | $ 15,132 | $ 12,204 |
Current | 1,022,542 | 985,683 |
PCI | 2,526 | 2,638 |
Total financing receivables | 1,040,200 | 1,000,525 |
90 Days or greater and accruing | 1,046 | 555 |
Financing receivables on nonaccrual status [Abstract] | ||
Total past due and non-accrual | 8,943 | 8,160 |
Current and non-accrual | 1,988 | 2,011 |
PCI Loans considered non accrual | 0 | 0 |
Financing receivable nonaccrual status | 10,931 | 10,171 |
Financing receivables on accrual status [Abstract] | ||
Total past due and still accruing | 6,189 | 4,044 |
Current and still accruing | 1,020,554 | 983,672 |
PCI Loans still accruing | 2,526 | 2,638 |
Total financing receivables and still accruing | $ 1,029,269 | 990,354 |
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 | $ 2,613 | 3,053 |
Financing receivables on nonaccrual status [Abstract] | ||
Total past due and non-accrual | 617 | 816 |
Financing receivables on accrual status [Abstract] | ||
Total past due and still accruing | 1,996 | 2,237 |
60 to 89 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 3,937 | 1,533 |
Financing receivables on nonaccrual status [Abstract] | ||
Total past due and non-accrual | 790 | 281 |
Financing receivables on accrual status [Abstract] | ||
Total past due and still accruing | 3,147 | 1,252 |
90 Days Or Greater [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 8,582 | 7,618 |
Financing receivables on nonaccrual status [Abstract] | ||
Total past due and non-accrual | 7,536 | 7,063 |
Financing receivables on accrual status [Abstract] | ||
Total past due and still accruing | 1,046 | 555 |
Real Estate Loans [Member] | Mortgages [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 1,474 | 2,168 |
Current | 153,243 | 152,144 |
PCI | 30 | 33 |
Total financing receivables | 154,747 | 154,345 |
90 Days or greater and accruing | 0 | 218 |
Financing receivables on nonaccrual status [Abstract] | ||
Financing receivable nonaccrual status | 1,375 | 1,274 |
Real Estate Loans [Member] | Mortgages [Member] | 30 to 59 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 476 | 996 |
Real Estate Loans [Member] | Mortgages [Member] | 60 to 89 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 202 | 362 |
Real Estate Loans [Member] | Mortgages [Member] | 90 Days Or Greater [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 796 | 810 |
Real Estate Loans [Member] | Home Equity [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 322 | 441 |
Current | 58,173 | 59,693 |
PCI | 0 | 0 |
Total financing receivables | 58,495 | 60,134 |
90 Days or greater and accruing | 0 | 0 |
Financing receivables on nonaccrual status [Abstract] | ||
Financing receivable nonaccrual status | 118 | 112 |
Real Estate Loans [Member] | Home Equity [Member] | 30 to 59 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 220 | 277 |
Real Estate Loans [Member] | Home Equity [Member] | 60 to 89 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 8 | 86 |
Real Estate Loans [Member] | Home Equity [Member] | 90 Days Or Greater [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 94 | 78 |
Real Estate Loans [Member] | Commercial [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 7,869 | 6,228 |
Current | 300,314 | 300,396 |
PCI | 1,388 | 1,460 |
Total financing receivables | 309,571 | 308,084 |
90 Days or greater and accruing | 38 | 162 |
Financing receivables on nonaccrual status [Abstract] | ||
Financing receivable nonaccrual status | 6,262 | 5,192 |
Real Estate Loans [Member] | Commercial [Member] | 30 to 59 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 1,649 | 1,353 |
Real Estate Loans [Member] | Commercial [Member] | 60 to 89 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 2,019 | 1,010 |
Real Estate Loans [Member] | Commercial [Member] | 90 Days Or Greater [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 4,201 | 3,865 |
Real Estate Loans [Member] | Agricultural [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 1,815 | 447 |
Current | 260,193 | 238,808 |
PCI | 683 | 702 |
Total financing receivables | 262,691 | 239,957 |
90 Days or greater and accruing | 543 | 30 |
Financing receivables on nonaccrual status [Abstract] | ||
Financing receivable nonaccrual status | 167 | 175 |
Real Estate Loans [Member] | Agricultural [Member] | 30 to 59 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 8 | 242 |
Real Estate Loans [Member] | Agricultural [Member] | 60 to 89 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 1,105 | 0 |
Real Estate Loans [Member] | Agricultural [Member] | 90 Days Or Greater [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 702 | 205 |
Real Estate Loans [Member] | Construction [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 0 | 133 |
Current | 27,901 | 13,369 |
PCI | 0 | 0 |
Total financing receivables | 27,901 | 13,502 |
90 Days or greater and accruing | 0 | 0 |
Financing receivables on nonaccrual status [Abstract] | ||
Financing receivable nonaccrual status | 0 | 133 |
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 | 133 |
Consumer [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 89 | 135 |
Current | 9,651 | 9,809 |
PCI | 0 | 0 |
Total financing receivables | 9,740 | 9,944 |
90 Days or greater and accruing | 32 | 7 |
Financing receivables on nonaccrual status [Abstract] | ||
Financing receivable nonaccrual status | 25 | 42 |
Consumer [Member] | 30 to 59 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 31 | 53 |
Consumer [Member] | 60 to 89 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 26 | 33 |
Consumer [Member] | 90 Days Or Greater [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 32 | 49 |
Other Commercial Loans [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 2,379 | 2,504 |
Current | 72,198 | 69,066 |
PCI | 425 | 443 |
Total financing receivables | 75,002 | 72,013 |
90 Days or greater and accruing | 0 | 32 |
Financing receivables on nonaccrual status [Abstract] | ||
Financing receivable nonaccrual status | 2,415 | 2,637 |
Other Commercial Loans [Member] | 30 to 59 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 47 | 132 |
Other Commercial Loans [Member] | 60 to 89 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 8 | 0 |
Other Commercial Loans [Member] | 90 Days Or Greater [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 2,324 | 2,372 |
Other Agricultural Loans [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 1,184 | 148 |
Current | 40,947 | 37,661 |
PCI | 0 | 0 |
Total financing receivables | 42,131 | 37,809 |
90 Days or greater and accruing | 433 | 106 |
Financing receivables on nonaccrual status [Abstract] | ||
Financing receivable nonaccrual status | 569 | 606 |
Other Agricultural Loans [Member] | 30 to 59 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 182 | 0 |
Other Agricultural Loans [Member] | 60 to 89 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 569 | 42 |
Other Agricultural Loans [Member] | 90 Days Or Greater [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 433 | 106 |
State and Political Subdivision Loans [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 0 | 0 |
Current | 99,922 | 104,737 |
PCI | 0 | 0 |
Total financing receivables | 99,922 | 104,737 |
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, 2018USD ($)Contract | Jun. 30, 2017USD ($)Contract | Jun. 30, 2018USD ($)Contract | Jun. 30, 2017USD ($)Contract | Dec. 31, 2017USD ($) | |
Loans [Abstract] | |||||
Reserves of allowance for loan losses | $ 87 | $ 87 | $ 41 | ||
Financing receivable modifications [Abstract] | |||||
Number of contract, subsequently defaults | Contract | 0 | 0 | 0 | 0 | |
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 | 7 | 5 | 8 | 7 | |
Pre-modification outstanding recorded investment | $ 2,277 | $ 6,093 | $ 2,284 | $ 6,797 | |
Post-modification outstanding recorded investment | $ 2,277 | $ 6,093 | $ 2,284 | $ 6,797 | |
Real Estate Loans [Member] | Home Equity [Member] | Interest Modification [Member] | |||||
Financing receivable modifications [Abstract] | |||||
Number of contracts | Contract | 0 | 0 | |||
Pre-modification outstanding recorded investment | $ 0 | $ 0 | |||
Post-modification outstanding recorded investment | $ 0 | $ 0 | |||
Real Estate Loans [Member] | Home Equity [Member] | Term Modification [Member] | |||||
Financing receivable modifications [Abstract] | |||||
Number of contracts | Contract | 1 | 1 | |||
Pre-modification outstanding recorded investment | $ 1 | $ 1 | |||
Post-modification outstanding recorded investment | $ 1 | $ 1 | |||
Real Estate Loans [Member] | Mortgages [Member] | Interest Modification [Member] | |||||
Financing receivable modifications [Abstract] | |||||
Number of contracts | Contract | 0 | ||||
Pre-modification outstanding recorded investment | $ 0 | ||||
Post-modification outstanding recorded investment | $ 0 | ||||
Real Estate Loans [Member] | Mortgages [Member] | Term Modification [Member] | |||||
Financing receivable modifications [Abstract] | |||||
Number of contracts | Contract | 1 | ||||
Pre-modification outstanding recorded investment | $ 7 | ||||
Post-modification outstanding recorded investment | $ 7 | ||||
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 | 1 | 5 | 1 | 7 | |
Pre-modification outstanding recorded investment | $ 577 | $ 6,093 | $ 577 | $ 6,797 | |
Post-modification outstanding recorded investment | $ 577 | $ 6,093 | $ 577 | $ 6,797 | |
Real Estate Loans [Member] | Agricultural [Member] | Interest Modification [Member] | |||||
Financing receivable modifications [Abstract] | |||||
Number of contracts | Contract | 0 | 0 | |||
Pre-modification outstanding recorded investment | $ 0 | $ 0 | |||
Post-modification outstanding recorded investment | $ 0 | $ 0 | |||
Real Estate Loans [Member] | Agricultural [Member] | Term Modification [Member] | |||||
Financing receivable modifications [Abstract] | |||||
Number of contracts | Contract | 1 | 1 | |||
Pre-modification outstanding recorded investment | $ 1,523 | $ 1,523 | |||
Post-modification outstanding recorded investment | $ 1,523 | $ 1,523 | |||
Other Agricultural Loans [Member] | Interest Modification [Member] | |||||
Financing receivable modifications [Abstract] | |||||
Number of contracts | Contract | 0 | 0 | |||
Pre-modification outstanding recorded investment | $ 0 | $ 0 | |||
Post-modification outstanding recorded investment | $ 0 | $ 0 | |||
Other Agricultural Loans [Member] | Term Modification [Member] | |||||
Financing receivable modifications [Abstract] | |||||
Number of contracts | Contract | 4 | 4 | |||
Pre-modification outstanding recorded investment | $ 176 | $ 176 | |||
Post-modification outstanding recorded investment | $ 176 | $ 176 |
Loans, Allowance for Loan Losse
Loans, Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
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 | $ 405 | $ 410 | ||||
Collectively evaluated for impairment | 11,536 | 10,780 | ||||
Total | 11,941 | $ 11,587 | 11,190 | $ 9,979 | $ 9,405 | $ 8,886 |
Real Estate Loans [Member] | Residential [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 | 30 | 56 | ||||
Collectively evaluated for impairment | 1,015 | 993 | ||||
Total | 1,045 | 1,077 | 1,049 | 1,104 | 1,042 | 1,064 |
Real Estate Loans [Member] | Commercial [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 | 159 | 94 | ||||
Collectively evaluated for impairment | 3,635 | 3,773 | ||||
Total | 3,794 | 4,006 | 3,867 | 3,541 | 3,665 | 3,589 |
Real Estate Loans [Member] | Agricultural [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 | 25 | 3 | ||||
Collectively evaluated for impairment | 3,648 | 3,140 | ||||
Total | 3,673 | 3,340 | 3,143 | 2,452 | 1,952 | 1,494 |
Real Estate Loans [Member] | Construction [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 | 44 | 23 | ||||
Total | 44 | 39 | 23 | 45 | 46 | 47 |
Consumer [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 | 115 | 124 | ||||
Total | 115 | 123 | 124 | 125 | 123 | 122 |
Other Commercial Loans [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 | 151 | 231 | ||||
Collectively evaluated for impairment | 1,115 | 1,041 | ||||
Total | 1,266 | 1,273 | 1,272 | 1,131 | 1,215 | 1,327 |
Other Agricultural Loans [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 | 40 | 26 | ||||
Collectively evaluated for impairment | 549 | 466 | ||||
Total | 589 | 532 | 492 | 431 | 306 | 312 |
State and Political Subdivision Loans [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 | 767 | 816 | ||||
Total | 767 | 789 | 816 | 838 | 824 | 833 |
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 | 648 | 404 | ||||
Total | $ 648 | $ 408 | $ 404 | $ 312 | $ 232 | $ 98 |
Loans, Allowance for Loan Los41
Loans, Allowance for Loan Losses by Portfolio Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance at beginning of period | $ 11,587 | $ 9,405 | $ 11,190 | $ 8,886 |
Charge-offs | (61) | (65) | (177) | (184) |
Recoveries | 90 | 14 | 103 | 37 |
Provision | 325 | 625 | 825 | 1,240 |
Balance at end of period | 11,941 | 9,979 | 11,941 | 9,979 |
Real Estate Loans [Member] | Residential [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance at beginning of period | 1,077 | 1,042 | 1,049 | 1,064 |
Charge-offs | (2) | (48) | (17) | (93) |
Recoveries | 69 | 0 | 69 | 0 |
Provision | (99) | 110 | (56) | 133 |
Balance at end of period | 1,045 | 1,104 | 1,045 | 1,104 |
Real Estate Loans [Member] | Commercial [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance at beginning of period | 4,006 | 3,665 | 3,867 | 3,589 |
Charge-offs | 0 | 0 | 0 | (41) |
Recoveries | 3 | 2 | 3 | 6 |
Provision | (215) | (126) | (76) | (13) |
Balance at end of period | 3,794 | 3,541 | 3,794 | 3,541 |
Real Estate Loans [Member] | Agricultural [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance at beginning of period | 3,340 | 1,952 | 3,143 | 1,494 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision | 333 | 500 | 530 | 958 |
Balance at end of period | 3,673 | 2,452 | 3,673 | 2,452 |
Real Estate Loans [Member] | Construction [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance at beginning of period | 39 | 46 | 23 | 47 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision | 5 | (1) | 21 | (2) |
Balance at end of period | 44 | 45 | 44 | 45 |
Consumer [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance at beginning of period | 123 | 123 | 124 | 122 |
Charge-offs | (6) | (17) | (19) | (45) |
Recoveries | 7 | 12 | 17 | 22 |
Provision | (9) | 7 | (7) | 26 |
Balance at end of period | 115 | 125 | 115 | 125 |
Other Commercial Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance at beginning of period | 1,273 | 1,215 | 1,272 | 1,327 |
Charge-offs | (46) | 0 | (91) | 0 |
Recoveries | 11 | 0 | 14 | 9 |
Provision | 28 | (84) | 71 | (205) |
Balance at end of period | 1,266 | 1,131 | 1,266 | 1,131 |
Other Agricultural Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance at beginning of period | 532 | 306 | 492 | 312 |
Charge-offs | (7) | 0 | (50) | (5) |
Recoveries | 0 | 0 | 0 | 0 |
Provision | 64 | 125 | 147 | 124 |
Balance at end of period | 589 | 431 | 589 | 431 |
State and Political Subdivision Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance at beginning of period | 789 | 824 | 816 | 833 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision | (22) | 14 | (49) | 5 |
Balance at end of period | 767 | 838 | 767 | 838 |
Unallocated [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance at beginning of period | 408 | 232 | 404 | 98 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision | 240 | 80 | 244 | 214 |
Balance at end of period | $ 648 | $ 312 | $ 648 | $ 312 |
Loans, Foreclosed Assets Held f
Loans, Foreclosed Assets Held for Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Foreclosed assets held for sale [Abstract] | ||
Foreclosed assets held for sale | $ 471 | $ 1,119 |
Consumer Residential Mortgages [Member] | ||
Foreclosed assets held for sale [Abstract] | ||
Foreclosed assets held for sale | 175 | |
Formal foreclosure proceedings on potential foreclosure assets | $ 2,023 |
Goodwill and Other Intangible43
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | ||
Amortized intangible assets [Abstract] | ||||||
Gross carrying value | [1] | $ 3,567 | $ 3,567 | $ 3,516 | ||
Accumulated amortization | [1] | (1,811) | (1,811) | (1,563) | ||
Net carrying value | [1] | 1,756 | 1,756 | 1,953 | ||
Unamortized intangible assets [Abstract] | ||||||
Goodwill | 23,296 | 23,296 | 23,296 | |||
Actual and Estimated Future Amortization Expense [Abstract] | ||||||
Amortization expense | 122 | $ 118 | 247 | $ 240 | ||
Estimated Amortization Expense [Abstract] | ||||||
Remaining 2,018 | 233 | 233 | ||||
2,019 | 416 | 416 | ||||
2,020 | 320 | 320 | ||||
2,021 | 259 | 259 | ||||
2,022 | 202 | 202 | ||||
MSRs [Member] | ||||||
Amortized intangible assets [Abstract] | ||||||
Gross carrying value | [1] | 1,656 | 1,656 | 1,605 | ||
Accumulated amortization | [1] | (1,009) | (1,009) | (912) | ||
Net carrying value | [1] | 647 | 647 | 693 | ||
Actual and Estimated Future Amortization Expense [Abstract] | ||||||
Amortization expense | 48 | 45 | 97 | 91 | ||
Estimated Amortization Expense [Abstract] | ||||||
Remaining 2,018 | 88 | 88 | ||||
2,019 | 157 | 157 | ||||
2,020 | 123 | 123 | ||||
2,021 | 94 | 94 | ||||
2,022 | 69 | 69 | ||||
Core Deposit Intangibles [Member] | ||||||
Amortized intangible assets [Abstract] | ||||||
Gross carrying value | [1] | 1,786 | 1,786 | 1,786 | ||
Accumulated amortization | [1] | (721) | (721) | (586) | ||
Net carrying value | [1] | 1,065 | 1,065 | 1,200 | ||
Actual and Estimated Future Amortization Expense [Abstract] | ||||||
Amortization expense | 66 | 66 | 134 | 134 | ||
Estimated Amortization Expense [Abstract] | ||||||
Remaining 2,018 | 130 | 130 | ||||
2,019 | 230 | 230 | ||||
2,020 | 197 | 197 | ||||
2,021 | 165 | 165 | ||||
2,022 | 133 | 133 | ||||
Covenant not to Compete [Member] | ||||||
Amortized intangible assets [Abstract] | ||||||
Gross carrying value | [1] | 125 | 125 | 125 | ||
Accumulated amortization | [1] | (81) | (81) | (65) | ||
Net carrying value | [1] | 44 | 44 | $ 60 | ||
Actual and Estimated Future Amortization Expense [Abstract] | ||||||
Amortization expense | 8 | $ 7 | 16 | $ 15 | ||
Estimated Amortization Expense [Abstract] | ||||||
Remaining 2,018 | 15 | 15 | ||||
2,019 | 29 | 29 | ||||
2,020 | 0 | 0 | ||||
2,021 | 0 | 0 | ||||
2,022 | $ 0 | $ 0 | ||||
[1] | Excludes fully amortized intangible assets. |
Federal Home Loan Bank Stock (D
Federal Home Loan Bank Stock (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Federal Home Loan Bank Stock [Abstract] | ||
Federal home loan bank stock | $ 6,456,000 | $ 6,021,000 |
FHLB Stock, at par value (in dollars per share) | $ 100 |
Repurchase Agreements (Details)
Repurchase Agreements (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Securities Sold under Agreements to Repurchase [Abstract] | ||
Total carrying value of collateral pledged | $ 20,907 | $ 18,062 |
Total liability recognized for repurchase agreements | 15,061 | 14,989 |
U.S. Agency Securities [Member] | ||
Securities Sold under Agreements to Repurchase [Abstract] | ||
Total carrying value of collateral pledged | 20,907 | 18,062 |
Overnight and Continuous [Member] | ||
Securities Sold under Agreements to Repurchase [Abstract] | ||
Total carrying value of collateral pledged | 18,909 | 16,027 |
Overnight and Continuous [Member] | U.S. Agency Securities [Member] | ||
Securities Sold under Agreements to Repurchase [Abstract] | ||
Total carrying value of collateral pledged | 18,909 | 16,027 |
Up to 30 Days [Member] | ||
Securities Sold under Agreements to Repurchase [Abstract] | ||
Total carrying value of collateral pledged | 0 | 0 |
Up to 30 Days [Member] | U.S. Agency Securities [Member] | ||
Securities Sold under Agreements to Repurchase [Abstract] | ||
Total carrying value of collateral pledged | 0 | 0 |
30 - 90 Days [Member] | ||
Securities Sold under Agreements to Repurchase [Abstract] | ||
Total carrying value of collateral pledged | 0 | 0 |
30 - 90 Days [Member] | U.S. Agency Securities [Member] | ||
Securities Sold under Agreements to Repurchase [Abstract] | ||
Total carrying value of collateral pledged | 0 | 0 |
Greater than 90 Days [Member] | ||
Securities Sold under Agreements to Repurchase [Abstract] | ||
Total carrying value of collateral pledged | 1,998 | 2,035 |
Greater than 90 Days [Member] | U.S. Agency Securities [Member] | ||
Securities Sold under Agreements to Repurchase [Abstract] | ||
Total carrying value of collateral pledged | $ 1,998 | $ 2,035 |
Employee Benefit Plans, Noncont
Employee Benefit Plans, Noncontributory Defined Benefit Pension Plan (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)Plan | Jun. 30, 2017USD ($) | |
Employee Benefit Plans [Abstract] | ||||
Number of plans | Plan | 2 | |||
Pension Plan [Member] | ||||
Components of net periodic benefit cost [Abstract] | ||||
Net periodic benefit cost | $ (46) | $ 31 | $ (92) | $ 75 |
Employer contributions | 0 | |||
Pension Plan [Member] | Salaries and Employee Benefits [Member] | ||||
Components of net periodic benefit cost [Abstract] | ||||
Service cost | 90 | 84 | 179 | 175 |
Pension Plan [Member] | Other Expenses [Member] | ||||
Components of net periodic benefit cost [Abstract] | ||||
Interest cost | 162 | 168 | 325 | 335 |
Expected return on plan assets | (345) | (273) | (689) | (547) |
Net amortization and deferral | $ 47 | $ 52 | $ 93 | $ 112 |
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, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Deferred Compensation Arrangements [Abstract] | ||||
Number of shares authorized (in shares) | 150,000 | 150,000 | ||
Number of shares available for grant (in shares) | 136,539 | 136,539 | ||
Unvested Shares [Roll Forward] | ||||
Outstanding, beginning of period (in shares) | 8,691 | 8,783 | ||
Granted (in shares) | 4,869 | 4,869 | ||
Forfeited (in shares) | 0 | 0 | ||
Vested (in shares) | (3,626) | (3,718) | ||
Outstanding, end of period (in shares) | 9,934 | 9,934 | ||
Weighted Average Market Price [Roll Forward] | ||||
Outstanding, beginning of period (in dollars per share) | $ 51.19 | $ 51.20 | ||
Granted (in dollars per share) | 62.91 | 62.91 | ||
Forfeited (in dollars per share) | 0 | 0 | ||
Vested (in dollars per share) | (50.54) | (50.58) | ||
Outstanding, end of period (in dollars per share) | $ 57.18 | $ 57.18 | ||
Additional General Disclosures [Abstract] | ||||
Share-based compensation expense | $ 63 | $ 54 | $ 119 | $ 104 |
Compensation cost related to nonvested awards that has not yet been recognized | $ 568 | $ 568 | ||
Period over which compensation cost is expected to be recognized | 3 years |
Accumulated Comprehensive Los48
Accumulated Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning Balance | $ 129,011 | ||||
Change in Accounting policy for equity securities | $ 1 | 1 | |||
Other comprehensive income (loss) before reclassifications (net of tax) | (417) | $ 432 | (2,034) | $ 478 | |
Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) | 37 | 20 | 74 | (55) | |
Other comprehensive income (loss), net of tax | (380) | 452 | (1,960) | 423 | |
Ending Balance | 132,281 | 132,281 | |||
Accumulated Other Comprehensive Income (Loss) [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning Balance | (4,977) | (1,421) | (3,398) | (1,392) | |
Ending Balance | (5,357) | (969) | (5,357) | (969) | |
Unrealized Gain (Loss) on Available for Sale Securities [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning Balance | [1] | (1,885) | 1,238 | (269) | 1,306 |
Change in Accounting policy for equity securities | [1] | 1 | 1 | ||
Other comprehensive income (loss) before reclassifications (net of tax) | [1] | (417) | 432 | (2,034) | 478 |
Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) | [1] | 0 | (15) | 0 | (129) |
Other comprehensive income (loss), net of tax | [1] | (417) | 417 | (2,034) | 349 |
Ending Balance | [1] | (2,302) | 1,655 | (2,302) | 1,655 |
Defined Benefit Pension Items [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning Balance | [1] | (3,092) | (2,659) | (3,129) | (2,698) |
Change in Accounting policy for equity securities | [1] | 0 | 0 | ||
Other comprehensive income (loss) before reclassifications (net of tax) | [1] | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) | [1] | 37 | 35 | 74 | 74 |
Other comprehensive income (loss), net of tax | [1] | 37 | 35 | 74 | 74 |
Ending Balance | [1] | $ (3,055) | $ (2,624) | $ (3,055) | $ (2,624) |
[1] | Amounts in parentheses indicate debits on the Consolidated Balance Sheet. |
Accumulated Comprehensive Loss,
Accumulated Comprehensive Loss, Reclassification (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
AOCI Attributable to Parent [Abstract] | |||||
Available for sale securities gains, net | $ 13 | $ 195 | |||
Salaries and employee benefits | $ (4,737) | $ (4,377) | (9,572) | (8,743) | |
Provision for income taxes | (875) | (1,033) | (1,622) | (1,956) | |
NET INCOME | 4,691 | 3,468 | 8,938 | 6,771 | |
Amount Reclassified from Accumulated Comprehensive Income (Loss) [Member] | |||||
AOCI Attributable to Parent [Abstract] | |||||
NET INCOME | [1] | (37) | (20) | (74) | 55 |
Unrealized Gains and Losses on Available for Sale Securities [Member] | Amount Reclassified from Accumulated Comprehensive Income (Loss) [Member] | |||||
AOCI Attributable to Parent [Abstract] | |||||
Available for sale securities gains, net | [1] | 0 | 23 | 0 | 195 |
Provision for income taxes | [1] | 0 | (8) | 0 | (66) |
NET INCOME | [1] | 0 | 15 | 0 | 129 |
Defined Benefit Pension Items [Member] | Amount Reclassified from Accumulated Comprehensive Income (Loss) [Member] | |||||
AOCI Attributable to Parent [Abstract] | |||||
Salaries and employee benefits | [1] | (47) | (52) | (93) | (112) |
Provision for income taxes | [1] | 10 | 17 | 19 | 38 |
NET INCOME | [1] | $ (37) | $ (35) | $ (74) | $ (74) |
[1] | Amounts in parentheses indicate expenses and other amounts indicate income on the Consolidated Statement of Income. |
Fair Value Measurements, Measur
Fair Value Measurements, Measured On A Recurring And Nonrecurring Basis (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Fair value assets and liabilities measured on non-recurring basis [Abstract] | ||
Impaired loans, estimated selling cost | $ 304 | $ 163 |
Recurring [Member] | ||
Assets [Abstract] | ||
Equity securities in financial institutions | 195 | 91 |
Available for sale securities [Abstract] | ||
U.S. Agency Securities | 101,988 | 98,887 |
U.S. Treasury securities | 32,992 | 28,604 |
Obligations of state and political subdivisions | 67,872 | 79,090 |
Corporate obligations | 3,023 | 3,083 |
Mortgage-backed securities in government sponsored entities | 44,150 | 45,027 |
Equity securities in financial institutions | 195 | 91 |
Recurring [Member] | Level I [Member] | ||
Assets [Abstract] | ||
Equity securities in financial institutions | 195 | 91 |
Available for sale securities [Abstract] | ||
U.S. Agency Securities | 0 | 0 |
U.S. Treasury securities | 32,992 | 28,604 |
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 | 195 | 91 |
Recurring [Member] | Level II [Member] | ||
Assets [Abstract] | ||
Equity securities in financial institutions | 0 | 0 |
Available for sale securities [Abstract] | ||
U.S. Agency Securities | 101,988 | 98,887 |
U.S. Treasury securities | 0 | 0 |
Obligations of state and political subdivisions | 67,872 | 79,090 |
Corporate obligations | 3,023 | 3,083 |
Mortgage-backed securities in government sponsored entities | 44,150 | 45,027 |
Equity securities in financial institutions | 0 | 0 |
Recurring [Member] | Level III [Member] | ||
Assets [Abstract] | ||
Equity securities in financial institutions | 0 | 0 |
Available for sale securities [Abstract] | ||
U.S. Agency Securities | 0 | 0 |
U.S. Treasury securities | 0 | 0 |
Obligations of state and political subdivisions | 0 | 0 |
Corporate obligations | 0 | 0 |
Mortgage-backed securities in government sponsored entities | 0 | 0 |
Equity securities in financial institutions | 0 | 0 |
Nonrecurring [Member] | ||
Fair value assets and liabilities measured on non-recurring basis [Abstract] | ||
Impaired Loans | 3,470 | 1,569 |
Other real estate owned | 326 | 1,024 |
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 | 3,470 | 1,569 |
Other real estate owned | $ 326 | $ 1,024 |
Fair Value Measurements, Quanti
Fair Value Measurements, Quantitative Information (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Available-for-sale debt securities | $ 250,025 | $ 254,782 |
Impaired Loans [Member] | Appraised Collateral Values [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Available-for-sale debt securities | $ 3,470 | $ 1,569 |
Impaired Loans [Member] | Appraised Collateral Values [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Holding period | 0 months | 6 months |
Impaired Loans [Member] | Appraised Collateral Values [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Holding period | 12 months | 12 months |
Impaired Loans [Member] | Appraised Collateral Values [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Holding period | 11 months 13 days | 11 months |
Impaired Loans [Member] | Appraised Collateral Values [Member] | Discount for Time Since Appraisal [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Available-for-sale, Measurement input | 0 | 0 |
Impaired Loans [Member] | Appraised Collateral Values [Member] | Discount for Time Since Appraisal [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Available-for-sale, Measurement input | 1 | 1 |
Impaired Loans [Member] | Appraised Collateral Values [Member] | Discount for Time Since Appraisal [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Available-for-sale, Measurement input | 0.2732 | 0.3083 |
Impaired Loans [Member] | Appraised Collateral Values [Member] | Selling Costs [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Available-for-sale, Measurement input | 0.05 | 0.05 |
Impaired Loans [Member] | Appraised Collateral Values [Member] | Selling Costs [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Available-for-sale, Measurement input | 0.11 | 0.09 |
Impaired Loans [Member] | Appraised Collateral Values [Member] | Selling Costs [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Available-for-sale, Measurement input | 0.0788 | 0.0835 |
Other Real Estate Owned [Member] | Appraised Collateral Values [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Available-for-sale debt securities | $ 326 | $ 1,024 |
Other Real Estate Owned [Member] | Appraised Collateral Values [Member] | Discount for Time Since Appraisal [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Available-for-sale, Measurement input | 0.25 | 0.15 |
Other Real Estate Owned [Member] | Appraised Collateral Values [Member] | Discount for Time Since Appraisal [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Available-for-sale, Measurement input | 0.35 | 0.65 |
Other Real Estate Owned [Member] | Appraised Collateral Values [Member] | Discount for Time Since Appraisal [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Available-for-sale, Measurement input | 0.2745 | 0.2626 |
Fair Value Measurements, By Bal
Fair Value Measurements, By Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Financial assets [Abstract] | ||
Interest bearing time deposits with other banks | $ 13,762 | $ 10,283 |
Level I [Member] | Recurring [Member] | ||
Financial assets [Abstract] | ||
Cash and due from banks | 15,613 | 18,517 |
Interest bearing time deposits with other banks | 0 | 0 |
Loans held for sale | 1,931 | 1,439 |
Net loans | 0 | 0 |
Bank owned life insurance | 27,189 | 26,883 |
Regulatory stock | 7,220 | 6,784 |
Accrued interest receivable | 4,285 | 4,196 |
Financial liabilities [Abstract] | ||
Deposits | 847,151 | 838,490 |
Borrowed funds | 96,566 | 77,650 |
Accrued interest payable | 903 | 897 |
Level II [Member] | Recurring [Member] | ||
Financial assets [Abstract] | ||
Cash and due from banks | 0 | 0 |
Interest bearing time deposits with other banks | 0 | 0 |
Loans held for sale | 0 | |
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] | Recurring [Member] | ||
Financial assets [Abstract] | ||
Cash and due from banks | 0 | 0 |
Interest bearing time deposits with other banks | 13,766 | 10,287 |
Loans held for sale | 0 | |
Net loans | 1,021,166 | 981,238 |
Bank owned life insurance | 0 | 0 |
Regulatory stock | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities [Abstract] | ||
Deposits | 265,850 | 263,093 |
Borrowed funds | 35,756 | 35,802 |
Accrued interest payable | 0 | 0 |
Carrying Amount [Member] | Recurring [Member] | ||
Financial assets [Abstract] | ||
Cash and due from banks | 15,613 | 18,517 |
Interest bearing time deposits with other banks | 13,762 | 10,283 |
Loans held for sale | 1,931 | 1,439 |
Net loans | 1,028,259 | 989,335 |
Bank owned life insurance | 27,189 | 26,883 |
Regulatory stock | 7,220 | 6,784 |
Accrued interest receivable | 4,285 | 4,196 |
Financial liabilities [Abstract] | ||
Deposits | 1,118,592 | 1,104,943 |
Borrowed funds | 133,652 | 114,664 |
Accrued interest payable | 903 | 897 |
Fair Value [Member] | Recurring [Member] | ||
Financial assets [Abstract] | ||
Cash and due from banks | 15,613 | 18,517 |
Interest bearing time deposits with other banks | 13,766 | 10,287 |
Loans held for sale | 1,931 | 1,439 |
Net loans | 1,021,166 | 981,238 |
Bank owned life insurance | 27,189 | 26,883 |
Regulatory stock | 7,220 | 6,784 |
Accrued interest receivable | 4,285 | 4,196 |
Financial liabilities [Abstract] | ||
Deposits | 1,113,001 | 1,101,583 |
Borrowed funds | 132,322 | 113,452 |
Accrued interest payable | $ 903 | $ 897 |