Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 29, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | SB Financial Group, Inc. | ||
Entity Central Index Key | 767,405 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Entity Well-Known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 4,899,019 | ||
Entity Public Float | $ 51.7 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and due from banks | $ 20,459 | $ 28,197 |
Available-for-sale securities | 89,789 | 85,240 |
Loans held for sale | 7,516 | 5,168 |
Loans, net of unearned income | 557,659 | 516,336 |
Allowance for loan losses | (6,990) | (6,771) |
Premises and equipment, net | 19,010 | 13,604 |
Federal Reserve and Federal Home Loan Bank Stock, at cost | 3,748 | 3,748 |
Foreclosed assets held for sale, net | 286 | 285 |
Interest receivable | 1,260 | 1,346 |
Goodwill | 16,353 | 16,353 |
Core deposits and other intangibles | 82 | 283 |
Cash value of life insurance | 13,437 | 13,148 |
Mortgage servicing rights | 7,152 | 5,704 |
Other assets | 3,310 | 1,587 |
Total assets | 733,071 | 684,228 |
Deposits | ||
Non interest bearing demand | 113,113 | 97,853 |
Interest bearing demand | 126,443 | 121,043 |
Savings | 83,447 | 64,107 |
Money market | 104,412 | 104,602 |
Time deposits | 159,038 | 163,301 |
Total deposits | 586,453 | 550,906 |
Repurchase agreements | 12,406 | 12,740 |
Federal Home Loan Bank advances | 35,000 | 30,000 |
Trust preferred securities | 10,310 | 10,310 |
Interest payable | 264 | 264 |
Other liabilities | 7,397 | 4,325 |
Total liabilities | $ 651,830 | $ 608,545 |
Commitments & Contingent Liabilities | ||
Stockholders' Equity | ||
Preferred stock 6.5% non-cumulative, Series A, no par value; authorized 200,000 shares; 15,000 shares issued | $ 13,983 | $ 13,983 |
Common stock, no par value; authorized 10,000,000 shares; 5,027,433 shares issued | 12,569 | 12,569 |
Additional paid-in capital | 15,438 | 15,461 |
Retained earnings | 40,059 | 34,379 |
Accumulated other comprehensive income | 650 | 918 |
Treasury stock, at cost - (2015 - 136,547, 2014 - 152,302 shares) | (1,458) | (1,627) |
Total stockholders' equity | 81,241 | 75,683 |
Total liabilities and stockholders' equity | $ 733,071 | $ 684,228 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2015 | |
Balance Sheets [Abstract] | ||
Percentage of noncumulative preferred share | 6.50% | |
Preferred stock, no par value | ||
Preferred stock, shares authorized | 200,000 | 200,000 |
Preferred stock, shares issued | 15,000 | 15,000 |
Common stock, stated value | ||
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 5,027,433 | 5,027,433 |
Treasury stock, shares | 152,302 | 136,547 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Loans | ||
Taxable | $ 23,692 | $ 22,457 |
Tax-exempt | 35 | 44 |
Securities | ||
Taxable | 1,506 | 1,198 |
Tax-exempt | 694 | 709 |
Total interest income | 25,927 | 24,408 |
Interest Expense | ||
Deposits | 1,979 | 1,984 |
Repurchase agreements & Other | 17 | 91 |
Federal Home Loan Bank advances | 375 | 334 |
Trust preferred securities | 213 | 1,071 |
Total interest expense | 2,584 | 3,480 |
Net Interest Income | 23,343 | 20,928 |
Provision for loan losses | 1,100 | 450 |
Net interest income after provision for loan losses | 22,243 | 20,478 |
Non-interest Income | ||
Wealth management fees | 2,606 | 2,630 |
Customer service fees | 2,779 | 2,691 |
Gain on sale of mortgage loans & OMSR's | 6,264 | 4,228 |
Mortgage loan servicing fees, net | 1,025 | 731 |
Gain on sale of non-mortgage loans | 947 | 321 |
Data service fees | $ 1,190 | 1,289 |
Net gain on sales of securities | 160 | |
Gain (loss) on sale of assets | $ 18 | (79) |
Other | 878 | 856 |
Total non-interest income | 15,707 | 12,827 |
Non-interest Expense | ||
Salaries and employee benefits | 14,917 | 13,185 |
Net occupancy expense | 1,943 | 2,087 |
Equipment expense | 2,223 | 2,525 |
Data processing fees | 1,060 | 928 |
Professional fees | 1,663 | 1,703 |
Marketing expense | 594 | 564 |
Telephone and communications | 387 | 404 |
Postage and delivery expense | 801 | 783 |
Employee expense | 543 | 488 |
Intangible amortization expense | 200 | 372 |
State, local and other taxes | 517 | 370 |
Other expenses | 2,079 | 2,548 |
Total non-interest expense | 26,927 | 25,957 |
Income Before Income Tax | 11,023 | 7,348 |
Provision for Income Taxes | 3,404 | 2,085 |
Net Income | 7,619 | $ 5,263 |
Preferred Stock Dividends | 956 | |
Net Income available to Common | $ 6,663 | $ 5,263 |
Basic Earnings Per Share | $ 1.36 | $ 1.08 |
Diluted Earnings Per Share | $ 1.19 | $ 1.07 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Statements Of Comprehensive Income [Abstract] | ||
Net income | $ 7,619 | $ 5,263 |
Available-for-sale investment securities: | ||
Gross unrealized holding gain (loss) arising in the period | (406) | 1,439 |
Related tax (benefit) expense | $ 138 | (489) |
Less: reclassification adjustment for gain realized in income | (160) | |
Related tax benefit | 54 | |
Net effect on other comprehensive income (loss) | $ (268) | 844 |
Total comprehensive income | $ 7,351 | $ 6,107 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Beginning Balance at Dec. 31, 2013 | $ 56,269 | $ 12,569 | $ 15,412 | $ 29,899 | $ 74 | $ (1,685) | |
Net Income | 5,263 | 5,263 | |||||
Other comprehensive income | 844 | 844 | |||||
Dividends on common stock | (783) | (783) | |||||
Preferred Stock Offering (Series A) | 13,983 | $ 13,983 | |||||
Restricted Stock Issuance | 33 | 33 | |||||
Stock options exercised | (16) | (41) | 25 | ||||
Share based compensation expense | 90 | 90 | |||||
Balance at Dec. 31, 2014 | 75,683 | 13,983 | 12,569 | 15,461 | 34,379 | 918 | (1,627) |
Net Income | 7,619 | 7,619 | |||||
Other comprehensive loss | (268) | (268) | |||||
Other comprehensive income | (983) | ||||||
Dividends on common stock | (983) | (983) | |||||
Dividends on preferred stock | $ (956) | (956) | |||||
Restricted Stock Issuance | (69) | 69 | |||||
Stock options exercised | $ 67 | (35) | 102 | ||||
Stock buyback | (2) | (2) | |||||
Share based compensation expense | 81 | 81 | |||||
Balance at Dec. 31, 2015 | $ 81,241 | $ 13,983 | $ 12,569 | $ 15,438 | $ 40,059 | $ 650 | $ (1,458) |
Consolidated Statements of Sto7
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Statements of Stockholders' Equity [Abstract] | ||
Dividend common stock, Per share amount | $ 0.20 | $ 0.16 |
Dividend preferred stock, Per share amount | $ 0.6374 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Activities | ||
Net Income | $ 7,619 | $ 5,263 |
Items not requiring (providing) cash | ||
Depreciation and amortization | 1,097 | 901 |
Provision for loan losses | 1,100 | 450 |
Expense of share-based compensation plan | 81 | 90 |
Amortization of premiums and discounts on securities | 977 | 929 |
Amortization of intangible assets | 200 | 372 |
Amortization of originated mortgage servicing rights | 880 | 613 |
Deferred income taxes | 1,519 | 661 |
Proceeds from sale of loans held for sale | 278,670 | 188,495 |
Originations of loans held for sale | (266,850) | (182,225) |
Gain from sale of loans | (7,195) | (4,549) |
Loss on sales of assets | $ 22 | 80 |
Net gains on sales of securities | (160) | |
Prepayment penalty on trust preferred securities | 333 | |
Originated mortgage servicing rights impairment, net | $ (115) | 231 |
Changes in | ||
Interest receivable | 86 | (65) |
Other assets | (11,058) | (4,557) |
Interest payable & other liabilities | 1,581 | (1,855) |
Net cash provided by operating activities | 8,615 | 5,007 |
Investing Activities | ||
Purchases of available-for-sale securities | (26,261) | (26,097) |
Proceeds from maturities of available-for-sale securities | $ 20,328 | 17,701 |
Proceeds from sales of available-for-sale securities | 13,299 | |
Net change in loans | $ (42,338) | (39,985) |
Purchase of premises, equipment & software | (7,199) | (1,895) |
Proceeds from sales of premises, equipment & software | 667 | (13) |
Proceeds from sale of foreclosed assets | 111 | 342 |
Net cash used in investing activities | (54,692) | (36,648) |
Financing Activities | ||
Net increase in demand deposits, money market, interest checking & savings accounts | 39,810 | 44,930 |
Net decrease in certificates of deposit | (4,263) | (12,258) |
Net decrease in securities sold under agreements to repurchase | (334) | (1,956) |
Proceeds from Federal Home Loan Bank advances | 9,000 | 16,000 |
Repayment of Federal Home Loan Bank advances | (4,000) | (2,000) |
Net proceeds from share based compensation plans | 65 | 17 |
Dividends on Common Stock | (983) | $ (783) |
Dividends on Preferred Stock | $ (956) | |
Repayment of trust preferred securities | $ (10,643) | |
Proceeds from issuance of Series A preferred stock | 13,983 | |
Proceeds from long term note | 7,000 | |
Repayment of long term note payable | (7,000) | |
Repayment of short term note payable | (589) | |
Net cash provided by (used in) financing activities | $ 38,339 | 46,701 |
Increase (Decrease) in Cash and Cash Equivalents | (7,738) | 15,060 |
Cash and Cash Equivalents, Beginning of Year | 28,197 | 13,137 |
Cash and Cash Equivalents, End of Year | 20,459 | 28,197 |
Supplemental Cash Flows Information | ||
Interest paid | 2,583 | 3,855 |
Income taxes paid | 2,060 | 1,715 |
Transfer of loans to foreclosed assets | $ 134 | $ 308 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Organization and Summary of Significant Accounting Policies [Abstract] | |
Organization and Summary of Significant Accounting Policies | Note 1: Organization and Summary of Significant Accounting Policies Organization and Nature of Operations SB Financial Group, Inc. (the “Company”) is a bank holding company whose principal activity is the ownership and management of its wholly-owned subsidiaries, The State Bank and Trust Company (“State Bank”), RFCBC, Inc. (“RFCBC”), Rurbanc Data Services, Inc. dba RDSI Banking Systems (“RDSI”), and Rurban Statutory Trust II (“RST II”). State Bank owns all the outstanding stock of Rurban Mortgage Company (“RMC”), and State Bank Insurance, LLC (“SBI”). Effective April 18, 2013, the Company changed its name from Rurban Financial Corp. to SB Financial Group, Inc. The Company is primarily engaged in providing a full range of banking and wealth management services to individual and corporate customers in Northwest Ohio and Northeast Indiana. The Company is subject to competition from other financial institutions, and is regulated by certain federal and state agencies and undergoes periodic examinations by those regulatory authorities. Where appropriate, reclassifications have been made to the 2014 financial statements to conform to the 2015 financial statement presentation. These reclassifications had no effect on net income. Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company, State Bank, RFCBC, RDSI, RMC, and SBI. All significant intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, loan servicing rights, valuation of deferred tax assets, other-than-temporary impairment (OTTI) and fair value of financial instruments. Cash Equivalents The Company considers all liquid investments with original maturities of three months or less to be cash equivalents. At December 31, 2015 and 2014, cash equivalents consisted primarily of interest-bearing and non-interest bearing demand deposit balances held by correspondent banks. Securities Available-for-sale securities, which include any security for which the Company has no immediate plan to sell but which may be sold in the future, are carried at fair value. Unrealized gains and losses are recorded, net of related income tax effects, in other comprehensive income. Amortization of premiums and accretion of discounts are recorded as interest income from securities. Realized gains and losses are recorded as net security gains (losses). Gains and losses on sales of securities are determined on the specific-identification method. For debt securities with fair value below carrying value when the Company does not intend to sell the debt security, and it is more likely than not the Company will not have to sell the security before recovery of its cost basis, the Company recognizes the credit component of an other-than-temporary impairment of the debt security in earnings and the remaining portion in other comprehensive income. Mortgage Loans Held for Sale Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to non-interest income. Gains and losses on loan sales are recorded in non-interest income. Loans Loans that management has the intent and ability to hold for the foreseeable future, or until maturity or payoffs, are reported at their outstanding principal balances adjusted for any charge-offs, the allowance for loan losses, any deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. Interest income is reported on the interest method and includes amortization of net deferred loan fees and costs over the loan term. Generally, loans are placed on non-accrual status not later than 90 days past due. Past due status is based on the contractural terms of the loan. All interest accrued, but not collected for loans that are placed on non-accrual or charged-off, is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to income. Loan losses are charged against the allowance when management believes the non-collectability of a loan balance is probable. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as new information becomes available. The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers nonclassified loans and is based on historical charge-off experience and expected loss given default derived from the Company’s internal risk rating process. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected on the historical loss or risk rating data. A loan is considered impaired when, based on current information and events, it is probable that State Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration each of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial, agricultural, and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent. When State Bank moves a loan to non-accrual status, total unpaid interest accrued to date is reversed from income. Subsequent payments are applied to the outstanding principal balance with the interest portion of the payment recorded on the balance sheet as a contra-loan. Interest received on impaired loans may be realized once all contractual principal amounts are received or when a borrower establishes a history of six consecutive timely principal and interest payments. It is at the discretion of Management to determine when a loan is placed back on accrual status upon receipt of six consecutive timely payments. Large groups of smaller balance homogenous loans are collectively evaluated for impairment. Accordingly, State Bank does not separately identify individual consumer and residential loans for impairment measurements, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower. Premises and Equipment Depreciable assets are stated at cost less accumulated depreciation. Depreciation is charged to expense using the straight-line method for buildings and equipment over the estimated useful lives of the assets. Leasehold improvements are capitalized and depreciated using the straight-line method over the terms of the respective leases. Long-lived Asset Impairment The Company evaluates the recoverability of the carrying value of long-lived assets whenever events or circumstances indicate the carrying amount may not be recoverable. If a long-lived asset is tested for recoverability and the undiscounted estimated future cash flows expected to result from the use and eventual disposition of the asset is less than the carrying amount of the asset, the asset’s cost is adjusted to fair value and an impairment loss is recognized as the amount by which the carrying amount of a long-lived asset exceeds its fair value. Federal Reserve and Federal Home Loan Bank Stock Federal Reserve and Federal Home Loan Bank stock are required investments for institutions that are members of the Federal Reserve and Federal Home Loan Bank systems. The required investment in the common stock is based on a predetermined formula, carried at cost and evaluated for impairment. Foreclosed Assets Held for Sale Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less costs to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of the carrying amount or the fair value less cost to sell. Revenue and expenses from operations related to foreclosed assets and changes in the valuation allowance are included in net income or expense from foreclosed assets. Goodwill Goodwill is tested for impairment annually. If the implied fair value of goodwill is lower than its carrying amount, goodwill impairment is indicated and goodwill is written down to its implied fair value. Core Deposits and Other Intangibles Intangible assets are being amortized on a straight-line basis over weighted-average periods ranging from one to fifteen years. Such assets are periodically evaluated as to the recoverability of their carrying value. Purchased software is being amortized using the straight-line method over periods ranging from one to three years. Derivatives Derivatives are recognized as assets and liabilities on the consolidated balance sheet and measured at fair value. For exchange-traded contracts, fair value is based on quoted market prices. For non-exchange traded contracts, fair value is based on dealer quotes, pricing models, discounted cash flow methodologies or similar techniques for which the determination of fair value may require significant management judgment or estimation. Mortgage Servicing Rights Mortgage servicing assets are recognized separately when rights are acquired through purchase or through sale of financial assets. Under the servicing assets and liabilities accounting guidance (ASC 806-50), servicing rights from the sale or securitization of loans originated by the Company are initially measured at fair value at the date of transfer. The Company subsequently measures each class of servicing asset using the amortization method. Under the amortization method, servicing rights are amortized in proportion to and over the period of estimated net servicing income. The amortized assets are assessed for impairment based on fair value at each reporting date. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost of service, the discount rate, the custodial earning rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. These variables change from quarter to quarter as market conditions and projected interest rates change, and may have an adverse impact on the value of the mortgage servicing right and may result in a reduction to noninterest income. Each class of separately recognized servicing assets subsequently measured using the amortization method is evaluated and measured for impairment. Impairment is determined by stratifying rights into tranches based on predominant characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual tranche, to the extent that fair value is less than the carrying amount of the servicing assets for that tranche. The valuation allowance is adjusted to reflect changes in the measurement of impairment after the initial measurement of impairment. Changes in valuation allowances are reported with “Mortgage Loan Servicing Fees, net” on the income statement. Fair value in excess of the carrying amount of servicing assets for that stratum is not recognized. Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income. Share-Based Employee Compensation Plan At December 31, 2015 and 2014, the Company had a share-based employee compensation plan, which is described more fully in Note 15. Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company – put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before the maturity or the ability to unilaterally cause the holder to return specific assets. Income Taxes The Company accounts for income taxes in accordance with income tax accounting guidance (ASC 740, Income Taxes). The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. Uncertain tax positions are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the term “upon examination” also includes resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances and information available at the reporting date and is subject to management’s judgment. The Company recognizes interest and penalties on income taxes as a component of income tax expense. The Company files consolidated income tax returns with its subsidiaries. With a few exceptions, the Company is no longer subject to U.S. Federal, State and Local examinations by tax authorities for the years before 2011. As of December 31, 2015, the Company had no uncertain income tax positions. Treasury Shares Treasury stock is stated at cost. Cost is determined by the weighted average cost method. Earnings Per Share Earnings per common share is computed using the two-class method. Basic earnings per share represent income available to common shareholders divided by the weighted-average number of common shares outstanding during each period. Diluted earnings per share reflect additional potential common shares and convertible preferred shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate solely to outstanding stock options which are determined using the treasury stock method and convertible preferred shares which are determined using the if converted method. Treasury stock shares are not deemed outstanding for earnings per share calculations. Comprehensive Income Comprehensive income consists of net income and other comprehensive income, net of applicable income taxes. Other comprehensive income includes unrealized appreciation (depreciation) on available-for-sale securities, and unrealized and realized gains and losses in derivative financial instruments that qualify for hedge accounting. Accumulated other comprehensive income consists solely of the cumulative unrealized gains and losses on available-for-sale securities net of income tax. New and applicable accounting pronouncements: Accounting Standards Update (ASU) No. 2016-02: Leases (Topic 842) This ASU is intended to increase transparency and comparibility among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The amendments in this ASU are effective for reporting periods beginning after December 15, 2019, and management will need further study to determine the impact on the Company’s consolidated financial statements ASU No. 2016-01: Financial Instruments – Recognition and measurement of financial assets and financial liabilities (Subtopic 825-10) This ASU makes targeted improvements to generally accepted accounting principles. Specifically, the amendments require equity securities with readily determinable fair values be classified into different categories and require equity securities to be measured at fair value with changes in the fair value recognized through net income. The amendments in this ASU are effective for reporting periods beginning after December 15, 2017, and management does not believe this ASU will have a material impact on the Company’s consolidated financial statements ASU No. 2015-16: Business Combinations (Topic 805) This ASU requires an acquirer to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. Further, an entity must present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings that would have been recorded previously if the provisional amounts had been recorded as of the acquisition date. The amendments in this ASU are effective for reporting periods beginning after December 15, 2015, and management does not believe this ASU will have a material impact on the Company’s consolidated financial statements ASU No. 2015-15: Interest – Imputation of Interest (Subtopic 835-30) This ASU requires entities to present debt issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of that debt liability. The amendments in this ASU are effective for reporting periods beginning after December 15, 2015, and management does not believe this ASU will have a material impact on the Company’s consolidated financial statements. ASU No. 2015-05: Intangibles – Goodwill and Other (Subtopic 310-40, Software) This ASU provides guidance for the customer’s accounting treatment for fees paid in a cloud computing arrangement. Existing GAAP does not include explicit guidance regarding this topic. Specifically the ASU indicates how to handle cloud computing arrangements when a software license does and does not exist as part of the arrangement. The amendments in this ASU are effective for reporting periods beginning after December 15, 2015, and management does not believe this ASU will have a material impact on the Company’s consolidated financial statements. ASU No. 2015-03 (Sub Topic 835-30): Interest – Simplifying the Presentation of Debt Issuance Costs This ASU simplifies the presentation of debt issuance costs, with the amendments in this ASU requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The amendments in this ASU are effective for reporting periods beginning after December 15, 2015, and management does not believe this update will have a material impact on the Company’s consolidated financial statements. ASU No. 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract is more Akin to Debt or to Equity. This ASU provides guidance for an entity when hybrid financial instruments are issued in the form of a share. The entity should determine the nature of the host contract by considering the economic characteristics and risks of the entire financial instrument. The determination of these host characteristics may meet the definition of a derivative financial instrument. The amendments in this ASU are effective for reporting periods beginning after December 15, 2015, and management does not believe this update will have a material impact on the Company’s consolidated ASU No. 2014-12 (Topic 718): Compensation – Stock Compensation This ASU provides guidance for the accounting treatment of share-based payments when the terms provide that a performance target could be achieved after the service period. The treatment requires that the target achievement after the service period be treated as a performance condition. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The amendments in this ASU are effective for reporting periods beginning after December 15, 2015, and management does not believe this update will have a material impact on the Company’s consolidated financial statements. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 2: Earnings Per Share Earnings per common share (EPS) is computed using the two-class method. Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the applicable period, excluding participating securities. Participating securities include non-vested restricted stock awards. Non-vested restricted stock awards are considered participating securities to the extent the holders of these securities receive non-forfeitable dividends at the same rate as holders of common stock. Diluted earnings per common share is computed using the weighted-average number of shares determined for the basic earnings per common share plus the convertible impact of preferred shares and the dilutive effect of stock compensation using the treasury stock method. EPS for the years ended December 31, 2015 and 2014 is computed as follows: ($ in thousands - except per share data) 2015 2014 Distributed earnings allocated to common shares $ 982 $ 783 Undistributed earnings allocated to common shares 5,676 4,477 Net earnings allocated to common shares 6,663 5,260 Net earnings allocated to participating securities 5 3 Dividends on convertible preferred shares 956 - Net Income allocated to common shares and participating securities $ 7,619 $ 5,263 Weighted average shares outstanding for basic earnings per share 4,884 4,874 Dilutive effect of stock compensation 88 68 Dilutive effect of convertible shares 1,451 - Weighted average shares outstanding for diluted earnings per share 6,423 4,942 Basic earnings per common share $ 1.36 $ 1.08 Diluted earnings per common share $ 1.19 $ 1.07 Shares subject to issue upon exercise of options of 35,424 and 171,470 in 2015 and 2014, respectively, at prices of $11.50 to $14.15 were excluded from the diluted earnings per common share calculation as they were anti-dilutive. |
Available-for-Sale Securities
Available-for-Sale Securities | 12 Months Ended |
Dec. 31, 2015 | |
Available-for-Sale Securities [Abstract] | |
Available-for-Sale Securities | Note 3: Available-for-Sale Securities The amortized cost and appropriate fair values, together with gross unrealized gains and losses, of available-for-sale securities are as follows: Gross Gross Amortized Unrealized Unrealized ($ in thousands) Cost Gains Losses Fair Value Available-for-Sale Securities: December 31, 2015: U.S. Treasury and Government agencies $ 10,804 $ 101 $ - $ 10,905 Mortgage-backed securities 61,459 311 (427 ) 61,343 State and political subdivisions 16,519 999 - 17,518 Equity securities 23 - - 23 $ 88,805 $ 1,411 $ (427 ) $ 89,789 Gross Gross Amortized Unrealized Unrealized ($ in thousands) Cost Gains Losses Fair Value Available-for-Sale Securities: December 31, 2014: U.S. Treasury and Government agencies $ 15,187 $ 124 $ (4 ) $ 15,307 Mortgage-backed securities 50,563 462 (285 ) 50,740 State and political subdivisions 18,075 1,095 - 19,170 Equity securities 23 - - 23 $ 83,848 $ 1,681 $ (289 ) $ 85,240 The amortized cost and fair value of securities available for sale and held to maturity at December 31, 2015, by contractual maturity, are shown below. Expected maturities differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Available for Sale Amortized Fair ($ in thousands) Cost Value Within one year $ 425 $ 429 Due after one year through five years 2,044 2,126 Due after five years through ten years 6,079 6,399 Due after ten years 18,775 19,469 27,323 28,423 Mortgage-backed securities and equity securities 61,482 61,366 Totals $ 88,805 $ 89,789 The fair value of securities pledged as collateral, to secure public deposits and for other purposes, was $46.2 million at December 31, 2015, and $44.5 million at December 31, 2014. Securities delivered for repurchase agreements (not included above) were $15.8 million at December 31, 2015 and $16.5 million at December 31, 2014. There were no realized gains or losses on available-for-sale securities in 2015. Gross gains of $0.17 million and gross losses of $0.01 million were realized from sales of available-for-sale securities in 2014. The net $0.16 million gain on sale in 2014 was a reclassification from accumulated other comprehensive income and is included in the net gain on sales of securities. The related tax expense for net security gains was $0.05 million in 2014 and was a reclassification from accumulated other comprehensive income and is included in the income tax expense line in the income statement. Certain investments in debt securities are reported in the financial statements at an amount less than their historical cost. Total fair value of these investments at December 31, 2015 and 2014, was $37.2 million and $29.0 million, respectively, which was approximately 41% and 34%, respectively, of the Company's available-for-sale investment portfolio. Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these securities are temporary. Should the impairment of any of these securities become other than temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified. The following tables present securities with unrealized losses at December 31, 2015 and 2014: ($ in thousands) Less than 12 Months 12 Months or Longer Total December 31, 2015 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Mortgage-backed securities 30,184 (253 ) 7,061 (174 ) 37,245 (427 ) $ 30,184 $ (253 ) $ 7,061 $ (174 ) $ 37,245 $ (427 ) December 31, 2014 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury and Government agencies $ 1,387 $ (4 ) $ - $ - $ 1,387 $ (4 ) Mortgage-backed securities 20,491 (73 ) 7,073 (212 ) 27,564 (285 ) $ 21,878 $ (77 ) $ 7,073 $ (212 ) $ 28,951 $ (289 ) The unrealized loss on the securities portfolio has increased by $0.14 million as of December 31, 2015, from the prior year. Management reviews these securities on a quarterly basis and has determined that no impairment exists. Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concern warrants such evaluation. When the Company does not intend to sell a debt security, and it is more likely than not, the Company will not have to sell the security before recovery of its cost basis, it recognizes the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2015 | |
Loans and Allowance For Loan Losses [Abstract] | |
Loans and Allowance for Loan Losses | Note 4: Loans and Allowance for Loan Losses Categories of loans at December 31 include: Total Loans Non-Accrual Loans ($ in thousands) Dec. 2015 Dec. 2014 Dec. 2015 Dec. 2014 Commercial & Industrial $ 86,542 $ 88,485 188 1,387 Commercial RE & Construction 242,208 217,030 5,670 2,092 Agricultural & Farmland 43,835 46,217 7 - Residential Real Estate 130,806 113,214 749 992 Consumer & Other 54,224 51,546 32 138 Total Loans $ 557,615 $ 516,492 $ 6,646 $ 4,609 Unearned Income $ 44 $ (156 ) Total Loans, net of unearned income $ 557,659 $ 516,336 Allowance for loan losses $ (6,990 ) $ (6,771 ) State Bank makes commercial, agri-business, consumer and residential loans to customers throughout the states of Ohio, Indiana, and Michigan. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since a portion of the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Each customer’s creditworthiness is evaluated on a case-by-case basis. The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the customer. Collateral held varies, but may include accounts receivable, inventory, property, plant and equipment, commercial real estate and residential real estate. Standby letters of credit are conditional commitments issued by State Bank to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing and similar transactions. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. Forward sale commitments are commitments to sell groups of residential mortgage loans that the Company originates or purchases as part of its mortgage banking activities. The Company commits to sell the loans at specified prices in a future period, typically within forty-five days. These commitments are acquired to reduce market risk on mortgage loans in the process of origination and mortgage loans held for sales since the Company is exposed to interest rate risk during the period between issuing a loan commitment and the sales of the loan into the secondary market. Lines of credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Lines of credit generally have fixed expiration dates. Since a portion of the line may expire without being drawn upon, the total unused lines do not necessarily represent future cash requirements. Each customer’s creditworthiness is evaluated on a case-by-case basis. The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the customer. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, commercial real estate and residential real estate. Management uses the same credit policies in granting lines of credit as it does for on-balance-sheet instruments. Listed below is a summary loan commitments, unused lines of credit and standby letters of credit as of December 31, 2015 and 2014. ($ in thousands) 2015 2014 Loan commitments and unused lines of credit $ 126,902 $ 105,136 Standby letters of credit 1,026 672 Total $ 127,928 $ 105,808 There are various contingent liabilities that are not reflected in the consolidated financial statements, including claims and legal actions arising in the ordinary course of business. In the opinion of management, after consultation with legal counsel, the ultimate disposition of these matters is not expected to have a material effect on the Company’s consolidated financial condition or results of operations. The risk characteristics of each loan portfolio segment are as follows: Commercial and Agricultural Commercial and agricultural loans are primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets, such as accounts receivable or inventory, and may include a personal guarantee. Short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. Commercial Real Estate including Construction Commercial real estate loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The characteristics of properties securing the Company’s commercial real estate portfolio are diverse, but with geographic location almost entirely in the Company’s market area. Management monitors and evaluates commercial real estate loans based on collateral, geography and risk grade criteria. In general, the Company avoids financing single purpose projects unless other underwriting factors are present to help mitigate risk. In addition, management tracks the level of owner-occupied commercial real estate versus nonowner-occupied loans. Construction loans are underwritten utilizing feasibility studies, independent appraisal reviews and financial analysis of the developers and property owners. Construction loans are generally based on estimates of costs and value associated with the completed project. These estimates may be inaccurate. Construction loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project. Sources of repayment for these types of loans may be pre-committed permanent loans from approved long-term lenders, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are closely monitored by on-site inspections and are considered to have higher risks than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, governmental regulation of real property, general economic conditions and the availability of long-term financing. Residential and Consumer Residential and consumer loans consist of two segments – residential mortgage loans and personal loans. Residential mortgage loans are secured by 1-4 family residences and are generally owner-occupied, and the Company generally establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. Home equity loans are typically secured by a subordinate interest in 1-4 family residences, and consumer personal loans are secured by consumer personal assets, such as automobiles or recreational vehicles. Some consumer personal loans are unsecured, such as small installment loans and certain lines of credit. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas, such as unemployment levels. Repayment can also be impacted by changes in property values on residential properties. Risk is mitigated by the fact that these loans are of smaller individual amounts and spread over a large number of borrowers. The following tables present the balance of the allowance for loan losses (“ALLL”) and the recorded investment in loans based on portfolio segment and impairment method as of December 31, 2015 and 2014: Commercial Commercial RE Agricultural Residential Consumer ($'s in thousands) & Industrial & Construction & Farmland Real Estate & Other Total ALLOWANCE FOR LOAN AND LEASE LOSSES For the Twelve Months Ended December 31, 2015 Beginning balance $ 1,630 $ 2,857 $ 208 $ 1,308 $ 768 $ 6,771 Charge Offs (497 ) (303 ) - (56 ) (96 ) $ (952 ) Recoveries 26 3 3 29 10 71 Provision (245 ) 1,329 (7 ) 31 (8 ) 1,100 Ending Balance $ 914 $ 3,886 $ 204 $ 1,312 $ 674 $ 6,990 Loans Receivable at December 31, 2015 Allowance: Ending balance: individually evaluated for impairment $ - $ 1,759 $ - $ 167 $ 37 $ 1,963 Ending balance: collectively evaluated for impairment $ 914 $ 2,127 $ 204 $ 1,145 $ 637 $ 5,027 Loans: Ending balance: individually evaluated for impairment $ 126 $ 5,754 $ - $ 1,713 $ 464 $ 8,057 Ending balance: collectively evaluated for impairment $ 86,416 $ 236,454 $ 43,835 $ 129,093 $ 53,760 $ 549,558 Commercial Commercial RE Agricultural Residential Consumer ($'s in thousands) & Industrial & Construction & Farmland Real Estate & Other Total ALLOWANCE FOR LOAN AND LEASE LOSSES For the Twelve Months Ended December 31, 2014 Beginning balance $ 2,175 $ 2,708 $ 159 $ 1,067 $ 855 $ 6,964 Charge Offs (607 ) (13 ) - (92 ) (135 ) $ (847 ) Recoveries 19 125 3 32 25 204 Provision 43 37 46 301 23 450 Ending Balance $ 1,630 $ 2,857 $ 208 $ 1,308 $ 769 $ 6,771 Loans Receivable at December 31, 2014 Allowance: Ending balance: individually evaluated for impairment $ 510 $ 1,018 $ - $ 242 $ 41 $ 1,811 Ending balance: collectively evaluated for impairment $ 1,120 $ 1,839 $ 208 $ 1,066 $ 728 $ 4,960 Loans: Ending balance: individually evaluated for impairment $ 1,268 $ 2,035 $ - $ 1,647 $ 481 $ 5,431 Ending balance: collectively evaluated for impairment $ 87,217 $ 214,995 $ 46,217 $ 111,567 $ 51,065 $ 511,061 Credit Risk Profile The Company categorizes loans into risk categories (loan grades) based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis includes loans with an outstanding balance greater than $100,000 and non-homogeneous loans, such as commercial and commercial real estate loans. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings: Pass (grades 1 – 4): Special Mention (grade 5): Substandard (grade 6): Doubtful (grade 7): Loss (grade 8): The following tables present the credit risk profile of the Company’s loan portfolio based on rating category as of December 31, 2015 and 2014: December 31, 2015 Commercial Commercial RE Agricultural Residential Consumer ($ in thousands) & Industrial & Construction & Farmland Real Estate & Other Total 1-2 $ 709 $ 767 $ 47 $ - $ 15 $ 1,538 3 23,362 79,915 8,195 118,463 50,745 280,680 4 61,799 149,473 35,593 10,418 3,223 260,506 Total Pass (1 - 4) 85,870 230,155 43,835 128,881 53,983 542,724 Special Mention (5) 330 5,260 - 756 70 6,416 Substandard (6) 110 1,072 - 420 139 1,741 Doubtful (7) 232 5,721 - 749 32 6,734 Loss (8) - - - - - - Total Loans $ 86,542 $ 242,208 $ 43,835 $ 130,806 $ 54,224 $ 557,615 December 31, 2014 Commercial Commercial RE Agricultural Residential Consumer ($ in thousands) & Industrial & Construction & Farmland Real Estate & Other Total 1-2 $ 1,148 $ 66 $ 61 $ - $ - $ 1,275 3 23,580 67,779 9,505 105,149 47,795 253,808 4 61,691 136,427 36,651 5,611 3,465 243,845 Total Pass (1 - 4) 86,419 204,272 46,217 110,760 51,260 498,928 Special Mention (5) 83 6,224 - 1,160 84 7,551 Substandard (6) 752 4,422 - 312 55 5,541 Doubtful (7) 1,231 2,112 - 982 147 4,472 Loss (8) - - - - - - Total Loans $ 88,485 $ 217,030 $ 46,217 $ 113,214 $ 51,546 $ 516,492 The Company evaluates the loan risk grading system definitions and allowance for loan loss methodology on an ongoing basis. The Company uses a three-year average of historical losses for the general component of the allowance for loan loss calculation. No significant changes were made to the loan risk grading system definitions and allowance for loan loss methodology during the periods presented. The following tables present the Company’s loan portfolio aging analysis as of December 31, 2015 and 2014: ($ in thousands) 30-59 Days 60-89 Days Greater Than Total Past Total Loans December 31, 2015 Past Due Past Due 90 Days Due Current Receivable Commercial & Industrial $ - $ 60 $ 188 $ 248 $ 86,294 $ 86,542 Commercial RE & Construction 99 - 5,280 5,379 236,829 242,208 Agricultural & Farmland - - - - 43,835 43,835 Residential Real Estate 98 198 156 452 130,354 130,806 Consumer & Other 64 - 2 66 54,158 54,224 Total Loans $ 261 $ 258 $ 5,626 $ 6,145 $ 551,470 $ 557,615 ($ in thousands) 30-59 Days 60-89 Days Greater Than Total Past Total Loans December 31, 2014 Past Due Past Due 90 Days Due Current Receivable Commercial & Industrial $ - $ - $ 987 $ 987 $ 87,498 $ 88,485 Commercial RE & Construction 3,660 - 1,747 5,407 211,623 217,030 Agricultural & Farmland - - - - 46,217 46,217 Residential Real Estate 164 19 377 560 112,654 113,214 Consumer & Other 39 81 - 120 51,426 51,546 Total Loans $ 3,863 $ 100 $ 3,111 $ 7,074 $ 509,418 $ 516,492 All loans past due 90 days are systematically placed on nonaccrual status. A loan is considered impaired, in accordance with the impairment accounting guidance (ASC 310-10-35-16), when based on current information and events, it is probable State Bank will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include non-performing commercial loans but also include loans modified in troubled debt restructurings where concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. The following tables present impaired loan activity for the twelve months ended December 31, 2015 and 2014: Twelve Months Ended Recorded Unpaid Principal Related Average Recorded Interest ($'s in thousands) Investment Balance Allowance Investment Recognized With no related allowance recorded: Commercial & Industrial $ 126 $ 1,214 $ - $ 1,388 $ - Commercial RE & Construction 1,110 1,110 - 1,206 27 Agricultural & Farmland - - - - - Residential Real Estate 657 657 - 862 52 Consumer & Other 90 90 - 107 9 All Impaired Loans < $100,000 131 131 - 131 - With a specific allowance recorded: Commercial & Industrial - - - - - Commercial RE & Construction 4,643 4,893 1,759 5,006 90 Agricultural & Farmland - - - - - Residential Real Estate 1,013 1,013 167 1,084 45 Consumer & Other 374 374 37 385 22 Totals: Commercial & Industrial $ 126 $ 1,214 $ - $ 1,388 $ - Commercial RE & Construction $ 5,753 $ 6,003 $ 1,759 $ 6,212 $ 117 Agricultural & Farmland $ - $ - $ - $ - $ - Residential Real Estate $ 1,670 $ 1,670 $ 167 $ 1,946 $ 97 Consumer & Other $ 464 $ 464 $ 37 $ 492 $ 31 All Impaired Loans < $100,000 $ 131 $ 131 $ - $ 131 $ - Twelve Months Ended Recorded Unpaid Principal Related Average Recorded Interest ($'s in thousands) Investment Balance Allowance Investment Recognized With no related allowance recorded: Commercial & Industrial $ 316 $ 316 $ - $ 316 $ - Commercial RE & Construction 530 530 - 571 20 Agricultural & Farmland - - - - - Residential Real Estate 567 611 - 734 49 Consumer & Other 11 110 - 124 10 All Impaired Loans < $100,000 565 565 - 565 - With a specific allowance recorded: Commercial & Industrial 952 1,552 510 1,605 - Commercial RE & Construction 1,505 1,505 1,018 1,521 60 Agricultural & Farmland - - - - - Residential Real Estate 1,080 1,080 242 1,146 47 Consumer & Other 371 371 41 402 20 Totals: Commercial & Industrial $ 1,268 $ 1,868 $ 510 $ 1,921 $ - Commercial RE & Construction $ 2,035 $ 2,035 $ 1,018 $ 2,092 $ 80 Agricultural & Farmland $ - $ - $ - $ - $ - Residential Real Estate $ 1,647 $ 1,691 $ 242 $ 1,880 $ 96 Consumer & Other $ 382 $ 481 $ 41 $ 526 $ 30 All Impaired Loans < $100,000 $ 565 $ 565 $ - $ 565 $ - Impaired loans less than $100,000 are included in groups of homogenous loans. These loans are evaluated based on delinquency status. Interest income recognized on a cash basis does not materially differ from interest income recognized on an accrual basis. Troubled Debt Restructured (TDR) Loans TDRs are modified loans where a concession was provided to a borrower experiencing financial difficulties. Loan modifications are considered TDRs when the concessions provided are not available to the borrower through either normal channels or other sources. However, not all loan modifications are TDRs. TDR Concession Types The Company’s standards relating to loan modifications consider, among other factors, minimum verified income requirements, cash flow analysis, and collateral valuations. Each potential loan modification is reviewed individually and the terms of the loan are modified to meet a borrower’s specific circumstances at a point in time. All loan modifications, including those classified as TDRs, are reviewed and approved. The types of concessions provided to borrowers include: ● Interest rate reduction: A reduction of the stated interest rate to a nonmarket rate for the remaining original life of the debt. The Company also may grant interest rate concessions for a limited timeframe on a case by case basis. ● Amortization or maturity date change beyond what the collateral supports, including a change that does any of the following: (1) Lengthens the amortization period of the amortized principal beyond market terms. This concession reduces the minimum monthly payment and increases the amount of the balloon payment at the end of the term of the loan. Principal is generally not forgiven. (2) Reduces the amount of loan principal to be amortized. This concession also reduces the minimum monthly payment and increases the amount of the balloon payment at the end of the term of the loan. Principal is generally not forgiven. (3) Extends the maturity date or dates of the debt beyond what the collateral supports. This concession generally applies to loans without a balloon payment at the end of the term of the loan. In addition, there may be instances where renewing loans potentially require non-market terms and would then be reclassified as TDRs. ● Other: A concession that is not categorized as one of the concessions described above. These concessions include, but are not limited to: principal forgiveness, collateral concessions, covenant concessions, and reduction of accrued interest. Principal forgiveness may result from any TDR modification of any concession type. The tables below present the activity of TDRs during the years ended December 31, 2015 and 2014: December 31, 2015 ($ in thousands) Number of Loans Pre- Post Residential Real Estate 1 $ 22 $ 22 Commercial 1 314 314 Consumer & Other 1 39 39 Total Modifications 3 $ 375 $ 375 ($ in thousands) Interest Total Only Term Combination Modification Residential Real Estate $ - $ 22 $ - $ 22 Commercial - 314 - 314 Consumer & Other - 39 - 39 Total Modifications $ - $ 375 $ - $ 375 There was no increase in the allowance for loan losses due to TDR's in the twelve month period ended December 31, 2015. December 31, 2014 ($ in thousands) Number of Loans Pre-Modification Post Modification Residential Real Estate - $ - $ - Consumer & Other 1 16 16 Total Modifications 1 $ 16 $ 16 ($ in thousands) Interest Total Only Term Combination Modification Residential Real Estate $ - $ - $ - $ - Consumer & Other - 16 - 16 Total Modifications $ - $ 16 $ - $ 16 There was no increase in the allowance for loan losses due to TDR's in the twelve month period ended December 31, 2014. There were no TDR's modified during 2015 that have subsequently defaulted. TDR's modified in 2014 that have subsequently defaulted Number of Recorded ($ in thousands) Contracts Balance Residential Real Estate 2 $ 197 2 197 |
Mortgage Banking and Servicing
Mortgage Banking and Servicing Rights | 12 Months Ended |
Dec. 31, 2015 | |
Mortgage Banking and Servicing Rights [Abstract] | |
Mortgage Banking and Servicing Rights | Note 5: Mortgage Banking and Servicing Rights Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balance of mortgage loans serviced for others approximated $772.5 million and $662.7 million at December 31, 2015 and 2014, respectively. Contractually specified servicing fees of approximately $1.8 million and $1.6 million were included in mortgage loan servicing fees in the income statement for the years ended December 31, 2015 and 2014, respectively. The following table summarizes mortgage servicing rights capitalized and related amortization, along with activity in the related valuation allowance: ($ in thousands) 2015 2014 Carrying amount, beginning of year $ 5,704 $ 5,180 Mortgage servicing rights capitalized during the year 2,214 1,367 Mortgage servicing rights amortization during the year (882 ) (612 ) Net change in valuation allowance 116 (231 ) Carrying amount, end of year $ 7,152 $ 5,704 Valuation allowance: Beginning of year $ 412 $ 181 Reduction (116 ) 231 End of year $ 296 $ 412 Fair Value, beginning of period $ 6,358 $ 6,237 Fair Value, end of period $ 7,760 $ 6,358 |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Financial Instruments [Abstract] | |
Derivative Financial Instruments | Note 6: Derivative Financial Instruments The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company manages its exposures to a wide variety of business and operational risks primarily through management of its core business activities. The Company manages economic risks, including interest rate, liquidity and credit risk, primarily by managing the amount, sources and duration of its assets and liabilities and through the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing and duration of the Company’s known or expected cash payments principally related to certain variable-rate assets. The Company does not use derivatives for trading or speculative purposes. Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain customers. The Company executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting interest rate swaps that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. As of December 31, 2015, the notional amount of customer-facing swaps was approximately $17.6 million, as compared to $12.6 million at December 31, 2014. This amount is offset with third party counterparties, as described above. The Company has minimum collateral posting thresholds with its derivative counterparties. As of December 31, 2015, the Company had posted cash as collateral in the amount of $0.7 million. Fair Values of Derivative Instruments on the Balance Sheet The table below presents the fair value of the Company’s derivative financial instruments, as well as their classification on the Balance Sheet, as of December 31, 2015 and 2014. Asset Derivatives Liability Derivatives December 31, 2015 December 31, 2015 ($ in thousands) Balance Sheet Fair Balance Sheet Fair Location Value Location Value Derivatives not designated as hedging instruments: Interest rate contracts Other Assets $ 490 Other Liabilities $ 490 Asset Derivatives Liability Derivatives December 31, 2014 December 31, 2014 ($ in thousands) Balance Sheet Fair Balance Sheet Fair Location Value Location Value Derivatives not designated as hedging instruments: Interest rate contracts Other Assets $ 273 Other Liabilities $ 273 The Company’s derivative financial instruments had no net effect on the Income Statement for the years ended December 31, 2015 and 2014. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Premises and Equipment [Abstract] | |
Premises and Equipment | Note 7: Premises and Equipment Major classifications of premises and equipment stated at cost were as follows at December 31: ($ in thousands) 2015 2014 Land $ 2,501 $ 2,013 Buildings and improvements 19,222 15,213 Equipment 10,566 9,209 Construction in progress 2,002 1,546 34,291 27,981 Less accumulated depreciation (15,281 ) (14,377 ) Net premises and equipment $ 19,010 $ 13,604 For the coming year the Company has plans, but no commitments, of approximately $2.5 million in premises and equipment purchases. These expenditures are expected to be funded by cash on hand and from cash generated from current operations. |
Goodwill and Intangibles
Goodwill and Intangibles | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangibles [Abstract] | |
Goodwill and Intangibles | Note 8: Goodwill and Intangibles Goodwill impairment is tested on the last day of the last quarter of each calendar year. The goodwill impairment test is performed in two steps. If the fair market value of the stock is greater than the calculated book value of the stock, the goodwill is deemed not to be impaired and no further testing is required. If the fair market value is less than the calculated book value, an additional step of determining fair value is taken to determine if there is any impairment. Goodwill at State Bank was reviewed independently as of December 31, 2015 and 2014. Step one indicated the fair value of State Bank was in excess of its book value at the end of both 2015 and 2014 and no further testing was required. Carrying basis and accumulated amortization of intangible assets were as follows at December 31: 2015 2014 ($ in thousands) Gross Carrying Accumulated Gross Carrying Accumulated Amount Amortization Amount Amortization Core deposits intangible $ 4,698 $ (4,668 ) $ 4,698 $ (4,473 ) Customer relationship intangible 200 (148 ) 200 (142 ) Banking intangibles 4,898 (4,816 ) 4,898 (4,615 ) Amortization expense for core deposits and other for the years ended December 31, 2015 and 2014 was $0.20 and $0.37 million, respectively. Estimated amortization expense for each of the following five years is: ($ in thousands) 2016 2017 2018 2019 2020 Core deposit intangible $ 8 $ 7 $ 5 $ 4 $ 4 Customer relationship intangible 5 5 4 4 4 Banking intangibles 13 12 9 8 8 |
Interest Bearing Deposits
Interest Bearing Deposits | 12 Months Ended |
Dec. 31, 2015 | |
Interest Bearing Deposits/ Federal Home Loan Bank Advances [Abstract] | |
Interest Bearing Deposits | Note 9: Interest Bearing Deposits Interest-bearing time deposits in denominations of $250,000 or more were $7.4 million on December 31, 2015, and $16.1 million on December 31, 2014. Certificates of Deposit obtained from brokers totaled approximately $5.2 million and $8.2 million at December 31, 2015 and 2014, respectively, and mature between 2016 and 2020. At December 31, 2015, the scheduled maturities of time deposits were as follows: ($ in thousands) 2016 $ 75,593 2017 41,152 2018 18,368 2019 12,282 2020 11,112 Thereafter 531 $ 159,038 Included in time deposits at December 31, 2015 and 2014 were $37.1 million and $29.2 million, respectively, of deposits which were obtained through the Certificate of Deposit Account Registry Service (CDARS). This service allows deposit customers to maintain fully insured balances in excess of the $250,000 FDIC limit without the inconvenience of having multi-banking relationships. Under the reciprocal program that State Bank is currently participating in, customers agree to allow State Bank to place their deposits with other participating banks in the CDARS program in insurable amounts under $250,000. In exchange, other banks in the program agree to place their deposits with State Bank also in insurable amounts under $250,000. |
Securities Sold Under Repurchas
Securities Sold Under Repurchase Agreements | 12 Months Ended |
Dec. 31, 2015 | |
Securities Sold Under Repurchase Agreements [Abstract] | |
Securities Sold Under Repurchase Agreements | Note 10: Securities Sold Under Repurchase Agreements ($ in thousands) 2015 2014 Securities Sold Under Repurchase Agreements $ 12,406 $ 12,740 At December 31, 2015 and December 31, 2014, State Bank had $15.0 and $14.0 million, respectively, in federal funds lines, of which $0.0 million were drawn upon. State Bank has retail repurchase agreements to facilitate cash management transactions with commercial customers. These obligations are secured by agency and mortgage-backed securities and such collateral is held by the Federal Home Loan Bank. The maximum amount of outstanding agreements at any month end during 2015 and 2014 totaled $20.3 and $20.6 million, respectively, and the monthly average of such agreements totaled $15.7 and $17.1 million, respectively. The agreements mature within one month. |
Federal Home Loan Bank Advances
Federal Home Loan Bank Advances | 12 Months Ended |
Dec. 31, 2015 | |
Interest Bearing Deposits/ Federal Home Loan Bank Advances [Abstract] | |
Federal Home Loan Bank Advances | Note 11: Federal Home Loan Bank Advances The Federal Home Loan Bank advances were secured by $79.9 million in mortgage loans at December 31, 2015. Advances, at interest rates from 0.47 to 1.99 percent, are subject to restrictions or penalties in the event of prepayment. Aggregate annual maturities of Federal Home Loan Bank advances at December 31, 2015, were: ($ in thousands) Debt 2016 $ 14,000 2017 7,500 2018 7,000 2019 6,500 2020 - Total $ 35,000 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | Note 12: Income Taxes The provision for income taxes includes these components: ($ in thousands) For The Year Ended 2015 2014 Taxes currently payable $ 1,885 $ 1,424 Deferred provision 1,519 661 Income tax expense $ 3,404 $ 2,085 A reconciliation of income tax expense at the statutory rate to the Company's actual income tax expense is shown below: ($ in thousands) For The Year Ended December 31, 2015 2014 Computed at the statutory rate (34%) $ 3,748 $ 2,498 Increase (decrease) resulting from Tax exempt interest (240 ) (240 ) BOLI Income (99 ) (138 ) Other (5 ) (35 ) Actual tax expense $ 3,404 $ 2,085 The tax effects of temporary differences related to deferred taxes shown on the balance sheets are: ($ in thousands) At December 31, 2015 2014 Deferred tax assets Allowance for loan losses $ 2,377 $ 2,302 Net deferred loan fees 104 80 AMT credit carry over - 542 Other 757 787 3,238 3,711 Deferred tax liabilities Depreciation (1,335 ) (995 ) Mortgage servicing rights (2,468 ) (1,939 ) Unrealized gains on available-for-sale securities (335 ) (473 ) Purchase accounting adjustments (1,489 ) (1,319 ) Prepaids (285 ) (277 ) FHLB stock dividends (465 ) (466 ) (6,377 ) (5,469 ) Net deferred tax liability $ (3,139 ) $ (1,758 ) |
Regulatory Matters and Trust Pr
Regulatory Matters and Trust Preferred Securities | 12 Months Ended |
Dec. 31, 2015 | |
Regulatory Matters and Trust Preferred Securities [Abstract] | |
Regulatory Matters and Trust Preferred Securities | Note 13: Regulatory Matters and Trust Preferred Securities As of December 31, 2015, based on its call report computations, State Bank was classified as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, State Bank must maintain capital ratios as set forth in the table below. There are no conditions or events since December 31, 2015 that management believes have changed State Bank’s capital classification. State Bank’s actual capital amounts and ratios are presented in the following table. Capital levels are presented for the State Bank only as the Company is now exempt from quarterly reporting at the holding company level: Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Procedures ($ in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2015 Tier I Capital to average assets $ 64,914 9.10 % $ 28,534 4.0 % $ 35,668 5.0 % Tier I Common equity capital to risk-weighted assets 64,914 10.23 % 28,545 4.5 % 41,231 6.5 % Tier I Capital to risk-weighted assets 64,914 10.23 % 38,059 6.0 % 50,746 8.0 % Total Risk-based capital to risk-weighted assets 71,904 11.34 % 50,746 8.0 % 63,432 10.0 % As of December 31, 2014 Tier I Capital to average assets 57,591 8.55 % 27,354 4.0 % 33,333 5.0 % Tier I Capital to risk-weighted assets 57,591 10.73 % 21,253 4.0 % 31,879 6.0 % Total Risk-based capital to risk-weighted assets 63,664 11.98 % 42,506 8.0 % 53,132 10.0 % On September 7, 2014, the Company redeemed its fixed rate trust preferred securities of $10.3 million using a portion of the $14.0 million in proceeds of the Company’s capital raise completed on December 22, 2014, through the public offering of depository shares, each representing a 1/100 th |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2015 | |
Employee Benefits [Abstract] | |
Employee Benefits | Note 14: Employee Benefits The Company has instituted a long-term incentive program (LTI), with the objective of rewarding senior management with restricted shares of the Company, in addition to the existing stock option program (see note 15). The Company has a retirement savings 401(k) plan covering substantially all employees. Employees contributing up to 4 percent of their compensation receive a Company match of 100 percent of the employee’s contribution. Employee contributions are vested immediately and the Company’s matching contributions are fully vested after three years of employment. Employer contributions charged to expense for 2015 and 2014 were $0.4 million and $0.4 million, respectively. Also, the Company has Supplemental Executive Retirement Plan (“SERP”) Agreements with certain active and retired officers. The agreements provide monthly payments for up to 15 years that equal 15 percent to 25 percent of average compensation prior to retirement or death. The charges to expense for the current agreements were $0.2 million and $0.1 million for 2015 and 2014, respectively. Additional life insurance is provided to certain officers through a bank-owned life insurance policy (“BOLI”). By way of a separate split-dollar agreement, the policy interests are divided between State Bank and the insured’s beneficiary. State Bank owns the policy cash value and a portion of the policy net death benefit, over and above the cash value assigned to the insured’s beneficiary. The cash surrender value of all life insurance policies totaled $13.4 and $13.1 million at December 31, 2015, and 2014, respectively. The Company has a noncontributory employee stock ownership plan (“ESOP”) covering substantially all employees of the Company and its subsidiaries. Voluntary contributions are made by the Company to the plan. Each eligible employee is vested based upon years of service, including prior years of service. The Company’s contributions to the account of each employee become fully vested after three years of service. Benefit expense for the value of the stock purchased is recorded equal to the fair market value of the stock when contributions, which are determined annually by the Board of Directors of the Company, are made to the ESOP. Allocated shares in the ESOP at December 31, 2015 and 2014, were 457,647 and 464,377, respectively. Dividends on allocated shares are recorded as dividends and charged to retained earnings. Compensation expense is recorded equal to the fair market value of the stock when contributions, which are determined annually by the Board of Directors of the Company, are made to the ESOP. ESOP expense for the years ended December 31, 2015 and 2014 was $0.2 million and $0.0 million, respectively. |
Share Based Compensation Plan
Share Based Compensation Plan | 12 Months Ended |
Dec. 31, 2015 | |
Share Based Compensation Plan [Abstract] | |
Share Based Compensation Plan | Note 15: Share Based Compensation Plan In April 2008, the shareholders approved a new share-based incentive compensation plan, the SB Financial Group, Inc. 2008 Stock Incentive Plan (the "2008 Plan"), which replaced the Company’s 1997 Stock Option Plan. The 2008 Plan permits the grant or award of incentive stock options, nonqualified stock options, stock appreciation rights ("SARs"), and restricted stock for up to 250,000 Common Shares of the Company. The 2008 Plan is intended to advance the interests of the Company and its shareholders by offering employees, directors and advisory board members of the Company and its subsidiaries an opportunity to acquire or increase their ownership interest in the Company through grants of equity-based awards. The 2008 Plan permits equity-based awards to be used to attract, motivate, reward and retain highly competent individuals upon whose judgment, initiative, leadership and efforts are key to the success of the Company by encouraging those individuals to become shareholders of the Company. Option awards are generally granted with an exercise price equal to the market price of the Company’s stock at the date of grant, and those option awards generally vest based on 5 years of continuous service and have 10-year contractual terms. The fair value of each option award was estimated on the date of grant using the Black-Scholes valuation model. No options were granted in either 2015 or 2014. The compensation cost charged against income with respect to option awards under the 2008 Plan was $0.00 million and $0.04 million for 2015 and 2014, respectively. The total income tax benefit recognized in the income statement for share-based compensation arrangements was $0.00 million and $0.01 million for 2015 and 2014, respectively. A summary of incentive option activity under the Company’s plans as of December 31 and changes during the years then ended, is presented below: Shares Weighted- Weighted- Aggregate Outstanding, beginning of year 195,220 $ 8.60 Granted - - Exercised (9,500 ) 6.98 Forfeited (25,646 ) 6.98 Expired (20,000 ) 12.33 Outstanding, end of year 140,074 8.12 3.36 $ 436,089 Exercisable, end of year 140,074 8.12 3.36 $ 436,089 As of December 31, 2015, there was $0.00 million of total unrecognized compensation cost related to incentive option share-based compensation arrangements granted under the 2008 Plan. On February 5, 2013, the Company adopted a Long Term Incentive (LTI) Plan. The Plan awards restricted stock in the Company to certain key executives under the 2008 Plan. These restricted stock awards vest over a four-year period and are intended to assist the Company in retention of key executives. During 2015 and 2014, the Company met certain performance targets and restricted stock awards were approved by the Board. The compensation cost charged against income for the Long Term Incentive (LTI) Plan was $0.08 million and $0.05 million for 2015 and 2014, respectively. The total income tax benefit recognized in the income statement for share-based compensation arrangements was $0.03 million and $0.02 million for 2015 and 2014, respectively. A summary of restricted stock activity under the Company’s plan as of December 31 and changes during the years ended, is presented below: Shares Weighted- Nonvested, beginning of year 22,652 $ 8.15 Granted 12,192 9.55 Vested (6,441 ) 8.07 Forfeited (1,075 ) 8.11 Nonvested, end of year 27,328 $ 8.77 As of December 31, 2015, there was $0.17 million of total unrecognized compensation cost related to nonvested share-based compensation arrangements related to the restricted stock awards under the 2008 Plan which were granted in accordance with the Long Term Incentive (LTI) plan. That cost is expected to be recognized over a weighted-average period of 2.50 years. |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2015 | |
Trust Preferred Securities/Preferred Stock [Abstract] | |
Preferred Stock | Note 16: Preferred Stock On December 23, 2014, the Company completed its public offering of 1,500,000 depository shares, each representing a 1/100 th Each Series A Preferred Share, at the option of the holder, is convertible at any time into the number of common shares equal to $1,000.00 divided by the conversion price then in effect, which at December 31, 2015, was $10.335. On or after the fifth anniversary of the issue date of the Series A Preferred Shares (December 23, 2019), the Company may require all holders of Series A Preferred Shares (and, therefore, depository shares) to convert their shares into common shares of the Company, provided the Company’s common share price exceeds 120 percent of the conversion price noted above. The conversion price will be impacted by the quarterly dividend paid on the common shares. At December 31, 2015, the aggregate number of common shares issuable upon the conversion of outstanding Series A Preferred Shares was 1,451,377. |
Disclosures About Fair Value of
Disclosures About Fair Value of Assets and Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Disclosures About Fair Value Of Assets and Liabilities [Abstract] | |
Disclosures About Fair Value of Assets and Liabilities | Note 17: Disclosures About Fair Value of Assets and Liabilities ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1: Level 2: Level 3: Following is a description of the valuation methodologies, inputs used for assets measured at fair value on a recurring basis, recognized in the accompanying balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. Available-for-Sale Securities The fair value of available-for-sale securities are determined by various valuation methodologies. Level 1 securities include money market mutual funds. Level 1 inputs include quoted prices in an active market. Level 2 securities include U.S. government agencies, mortgage-backed securities and obligations of political and state subdivisions. Level 2 inputs do not include quoted prices for individual securities in active markets; however, they do include inputs that are either directly or indirectly observable for the individual security being valued. Such observable inputs include interest rates and yield curves at commonly quoted intervals, volatilities, prepayment speeds, credit risks and default rates. Also included are inputs derived principally from or corroborated by observable market data by correlation or other means. Interest Rate Contracts The fair values of interest rate contracts are based upon the estimated amount the Company would receive or pay to terminate the contracts or agreements, taking into account underlying interest rates, creditworthiness of underlying customers for credit derivatives and, when appropriate, the creditworthiness of the counterparties. The following table presents the fair value measurements of securities measured at fair value on a recurring basis and the level within ASC 820 fair value hierarchy in which the fair value measurements fell at December 31, 2015 and 2014: Fair Value Measurements Using: ($ in thousands) Available-for-Sale Securities: Fair Values at 12/31/2015 (Level 1) (Level 2) (Level 3) U.S. Treasury and Government Agencies $ 10,905 $ - $ 10,905 $ - Mortgage-backed securities 61,343 - 61,343 - State and political subdivisions 17,518 - 17,518 - Equity securities 23 23 Interest rate contracts - assets 490 490 Interest rate contracts - liabilities (490 ) (490 ) Fair Value Measurements Using: ($ in thousands) Available-for-Sale Securities: Fair Values at 12/31/2014 (Level 1) (Level 2) (Level 3) U.S. Treasury and Government Agencies $ 15,307 $ - $ 15,307 $ - Mortgage-backed securities 50,740 - 50,740 - State and political subdivisions 19,170 - 19,170 - Equity securities 23 23 Interest rate contracts - assets 273 273 Interest rate contracts - liabilities (273 ) (273 ) Level 1 - Quoted Prices in Active Markets for Identical Assets Level 2 - Significant Other Observable Inputs Level 3 - Significant Unobservable Inputs The following is a description of the valuation methodologies and inputs used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. Collateral-dependent Impaired Loans, Net of ALLL Loans for which it is probable the Company will not collect all principal and interest due according to contractual terms are measured for impairment. The estimated fair value of collateral-dependent impaired loans is based on the appraised value of the collateral, less estimated cost to sell. Collateral-dependent impaired loans are classified within Level 3 of the fair value hierarchy. This method requires obtaining independent appraisals of the collateral, which are reviewed for accuracy and consistency by Credit Administration. These appraisers are selected from the list of approved appraisers maintained by management. The appraised values are reduced by applying a discount factor to the value based on the Company’s loan review policy. All impaired loans held by the Company were collateral dependent at December 31, 2015 and 2014. Mortgage Servicing Rights Mortgage servicing rights do not trade in an active, open market with readily observable prices. Accordingly, fair value is estimated using discounted cash flow models associated with the servicing rights and discounting the cash flows using discount market rates, prepayment speeds and default rates. The servicing portfolio has been valued using all relevant positive and negative cash flows including servicing fees, miscellaneous income and float; marginal costs of servicing; the cost of carry of advances; and foreclosure losses; and applying certain prevailing assumptions used in the marketplace. Due to the nature of the valuation inputs, mortgage servicing rights are classified within Level 3 of the hierarchy. These mortgage servicing rights are tested for impairment on a quarterly basis. Foreclosed Assets Held for Sale Foreclosed assets held for sale are carried at the lower of fair value at acquisition date or current estimated fair value, less estimated cost to sell when the real estate is acquired. Estimated fair value of foreclosed assets held for sale is based on appraisals or evaluations. Foreclosed assets held for sale are classified within Level 3 of the fair value hierarchy. Appraisals of foreclosed assets held for sale are obtained when the real estate is acquired and subsequently as deemed necessary by Credit Administration. These independent appraisals of the collateral are reviewed for accuracy and consistency by Credit Administration. The appraisers are selected from the list of approved appraisers maintained by management. The following table presents the fair value measurements of assets measured at fair value on a non-recurring basis and the level within the fair value hierarchy in which the fair value measurements fell at December 31, 2015 and 2014: ($ in thousands) Fair Values at 12/31/2015 (Level 1) (Level 2) (Level 3) Impaired loans $ 3,011 $ - $ - $ 3,011 Mortgage Servicing Rights 2,585 - - 2,585 ($ in thousands) Fair Values at 12/31/2014 (Level 1) (Level 2) (Level 3) Impaired loans $ 2,538 $ - $ - $ 2,538 Mortgage Servicing Rights 3,037 - - 3,037 Level 1 - Quoted Prices in Active Markets for Identical Assets Level 2 - Significant Other Observable Inputs Level 3 - Significant Unobservable Inputs Unobservable (Level 3) Inputs The following tables present quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements at December 31, 2014 and 2013: ($ in thousands) Fair Value at 12/31/2015 Valuation Technique Unobservable Inputs Range (Weighted Average) Collateral-dependent impaired loans $ 3,011 Market comparable properties Comparability adjustments (%) Not available Mortgage servicing rights 2,585 Discounted cash flow Discount Rate 9.75 % Constant prepayment rate 8.90 % P&I earnings credit 0.42 % T&I earnings credit 1.54 % Inflation for cost of servicing 1.50 % ($ in thousands) Fair Value at 12/31/2014 Valuation Technique Unobservable Inputs Range (Weighted Average) Collateral-dependent impaired loans $ 2,538 Market comparable properties Comparability adjustments (%) Not available Mortgage servicing rights 3,037 Discounted cash flow Discount Rate 9.50 % Constant prepayment rate 10.30 % P&I earnings credit 0.17 % T&I earnings credit 1.75 % Inflation for cost of servicing 1.50 % The mortgage servicing rights portfolio is measured for fair value by an independent third party. The valuation of the portfolio hinges on a number of quantitative factors. These factors include, but are not limited to, a discount rate applied to the cash flows, and an assumption of future principle prepayments. The prepayment assumptions are based upon the historical performance of the Company’s portfolio as well as market metrics. With the stable to slightly declining interest rates during 2015, the mortgage servicing rights have increased in value. The servicing rights have had a decline in prepayments and the .25 percent decrease in the discount rate reflects the change in market rates. There were no changes in the inputs or methodologies used to determine fair value at December 31, 2015, as compared to December 31, 2014. The following methods were used to estimate the fair value of all other financial instruments recognized in the accompanying balance sheets at amounts other than fair value. Cash and Due From Banks, Federal Reserve and Federal Home Loan Bank Stock and Interest Receivable and Payable Fair value is determined to be the carrying amount for these items (which include cash on hand, due from banks, and federal funds sold) because they represent cash or mature in 90 days or less, and do not represent unanticipated credit concerns. Loans Held for Sale The fair value of loans held for sale is based upon quoted market prices, where available, or is determined by discounting estimated cash flows using interest rates approximating the Company’s current origination rates for similar loans and adjusted to reflect the inherent credit risk. Loans The estimated fair value for loans receivable, net, is based on estimates of the rate State Bank would charge for similar loans at December 31, 2015 and 2014, applied for the time period until the loans are assumed to re-price or be paid. Mortgage Servicing Rights Mortgage servicing rights do not trade in an active, open market with readily observable prices. Accordingly, fair value is estimated using discounted cash flow models associated with the servicing rights and discounting the cash flows using discount market rates, prepayment speeds and default rates. The servicing portfolio has been valued using all relevant positive and negative cash flows including servicing fees, miscellaneous income and float; marginal costs of servicing; the cost of carry of advances; and foreclosure losses; and applying certain prevailing assumptions used in the marketplace. Due to the nature of the valuation inputs, mortgage servicing rights are classified within Level 3 of the hierarchy. These mortgage servicing rights are tested for impairment on a quarterly basis. Deposits, Repurchase Agreements & FHLB advances Deposits include demand deposits, savings accounts, NOW accounts and certain money market deposits. The carrying amount approximates the fair value. The estimated fair value for fixed-maturity time deposits, as well as borrowings, is based on estimates of the rate State Bank could pay on similar instruments with similar terms and maturities at December 31, 2015 and 2014. Loan Commitments The fair value of commitments is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. The estimated fair values for other financial instruments and off-balance-sheet loan commitments approximate cost at December 31, 2015 and 2014 and are not considered significant to this presentation. Trust Preferred Securities The fair value for Trust Preferred Securities is estimated by discounting the cash flows using an appropriate discount rate. December 31, 2015 Carrying Fair Value Measurements Using $'s in thousands Amount (Level 1) (Level 2) (Level 3) Financial assets Cash and due from banks $ 20,459 $ 20,459 $ - $ - Loans held for sale 7,516 - 7,779 - Loans, net of allowance for loan losses 550,669 - - 548,154 Federal Reserve and FHLB Bank stock, at cost 3,748 - 3,748 - Interest receivable 1,260 - 1,260 - Mortgage Servicing Rights 7,152 - - 7,760 Financial liabilities Deposits $ 586,453 $ 113,113 $ 475,468 $ - Repurchase agreements 12,406 - 12,406 - FHLB advances 35,000 - 34,870 - Trust preferred securities 10,310 - 7,165 - Interest payable 264 - 264 - December 31, 2014 Carrying Fair Value Measurements Using $'s in thousands Amount (Level 1) (Level 2) (Level 3) Financial assets Cash and due from banks $ 28,197 $ 28,197 $ - $ - Loans held for sale 5,168 - 5,315 - Loans, net of allowance for loan losses 509,565 - - 510,314 Federal Reserve and FHLB Bank stock, at cost 3,748 - 3,748 - Interest receivable 1,346 - 1,346 - Mortgage Servicing Rights 5,704 - - 6,358 Financial liabilities Deposits $ 550,906 $ 97,853 $ 455,383 $ - Repurchase agreements 12,740 - 12,740 - FHLB advances 30,000 - 29,907 - Trust preferred securities 10,310 - 7,206 - Interest payable 264 - 264 - |
Condensed Financial Information
Condensed Financial Information | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information [Abstract] | |
Condensed Financial Information | Note 18: Condensed Financial Information Presented below is condensed financial information of the parent company only ($ in thousands): Condensed Balance Sheets 2015 2014 Assets Cash and cash equivalents $ 9,157 $ 12,446 Investment in banking subsidiaries 82,251 75,194 Investment in nonbanking subsidiaries 1,438 1,401 Other assets 318 152 Total assets $ 93,164 $ 89,193 Liabilities Trust preferred securities $ 10,000 $ 10,000 Borrowings from nonbanking subsidiaries 310 310 Other liabilities & accrued interest payable 1,613 3,200 Total liabilities 11,923 13,510 Stockholders' Equity 81,241 75,683 Total liabilities and stockholders' equity $ 93,164 $ 89,193 Condensed Statements of Income & Comprehensive Income 2015 2014 Dividends from subsidiaries: Banking subsidiaries $ 1,000 $ 5,000 Nonbanking subsidiaries - 39 Total income 1,000 5,039 Expenses Interest expense 212 1,138 Other expense 922 1,201 Total expenses 1,134 2,339 Income before income tax (134 ) 2,700 Income tax benefit (385 ) (803 ) Income before equity in undistributed income of subsidiaries 251 3,503 Equity in undistributed income of subs. Banking subsidiaries 7,369 1,952 Nonbanking subsidiaries (1 ) (192 ) Total 7,368 1,760 Net income $ 7,619 $ 5,263 Preferred stock dividends 956 - Net income available to common shareholders $ 6,663 $ 5,263 Comprehensive income $ 7,351 $ 6,107 Condensed Statements of Cash Flows 2015 2014 Operating Activities Net income $ 7,619 $ 5,263 Items not requiring (providing) cash Equity in undistributed net income of subsidiaries (7,368 ) (1,760 ) Expense of stock option plan 81 90 Other assets (166 ) 118 Prepayment penalty on Trust Preferred - 333 Other liabilities (1,581 ) (362 ) Net cash (used in) provided by operating activities (1,415 ) 3,682 Investing Activities Investment in Subsidiary - (164 ) Net cash used in investing activities - (164 ) Financing Activities Dividends on common stock (983 ) (783 ) Dividends on preferred stock (956 ) - Proceeds from stock compensation 67 18 Repurchase of common stock (2 ) - Redemption of trust preferred - (10,643 ) Preferred stock raise - 13,983 Repayment of Notes Payable - - Net cash provided by (used in) financing activities (1,874 ) 2,575 Net Change in Cash and Cash Equivalents (3,289 ) 6,093 Cash and Cash Equivalents at Beginning of Year 12,446 6,353 Cash and Cash Equivalents at End of Year $ 9,157 $ 12,446 |
Organization and Summary of S27
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Organization and Summary of Significant Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company, State Bank, RFCBC, RDSI, RMC, and SBI. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, loan servicing rights, valuation of deferred tax assets, other-than-temporary impairment (OTTI) and fair value of financial instruments. |
Cash Equivalents | Cash Equivalents The Company considers all liquid investments with original maturities of three months or less to be cash equivalents. At December 31, 2015 and 2014, cash equivalents consisted primarily of interest-bearing and non-interest bearing demand deposit balances held by correspondent banks. |
Securities | Securities Available-for-sale securities, which include any security for which the Company has no immediate plan to sell but which may be sold in the future, are carried at fair value. Unrealized gains and losses are recorded, net of related income tax effects, in other comprehensive income. Amortization of premiums and accretion of discounts are recorded as interest income from securities. Realized gains and losses are recorded as net security gains (losses). Gains and losses on sales of securities are determined on the specific-identification method. For debt securities with fair value below carrying value when the Company does not intend to sell the debt security, and it is more likely than not the Company will not have to sell the security before recovery of its cost basis, the Company recognizes the credit component of an other-than-temporary impairment of the debt security in earnings and the remaining portion in other comprehensive income. |
Mortgage Loans Held for Sale | Mortgage Loans Held for Sale Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to non-interest income. Gains and losses on loan sales are recorded in non-interest income. |
Loans | Loans Loans that management has the intent and ability to hold for the foreseeable future, or until maturity or payoffs, are reported at their outstanding principal balances adjusted for any charge-offs, the allowance for loan losses, any deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. Interest income is reported on the interest method and includes amortization of net deferred loan fees and costs over the loan term. Generally, loans are placed on non-accrual status not later than 90 days past due. Past due status is based on the contractural terms of the loan. All interest accrued, but not collected for loans that are placed on non-accrual or charged-off, is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to income. Loan losses are charged against the allowance when management believes the non-collectability of a loan balance is probable. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as new information becomes available. The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers nonclassified loans and is based on historical charge-off experience and expected loss given default derived from the Company’s internal risk rating process. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected on the historical loss or risk rating data. A loan is considered impaired when, based on current information and events, it is probable that State Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration each of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial, agricultural, and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent. When State Bank moves a loan to non-accrual status, total unpaid interest accrued to date is reversed from income. Subsequent payments are applied to the outstanding principal balance with the interest portion of the payment recorded on the balance sheet as a contra-loan. Interest received on impaired loans may be realized once all contractual principal amounts are received or when a borrower establishes a history of six consecutive timely principal and interest payments. It is at the discretion of Management to determine when a loan is placed back on accrual status upon receipt of six consecutive timely payments. Large groups of smaller balance homogenous loans are collectively evaluated for impairment. Accordingly, State Bank does not separately identify individual consumer and residential loans for impairment measurements, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower. |
Premises and Equipment | Premises and Equipment Depreciable assets are stated at cost less accumulated depreciation. Depreciation is charged to expense using the straight-line method for buildings and equipment over the estimated useful lives of the assets. Leasehold improvements are capitalized and depreciated using the straight-line method over the terms of the respective leases. |
Long-lived Asset Impairment | Long-lived Asset Impairment The Company evaluates the recoverability of the carrying value of long-lived assets whenever events or circumstances indicate the carrying amount may not be recoverable. If a long-lived asset is tested for recoverability and the undiscounted estimated future cash flows expected to result from the use and eventual disposition of the asset is less than the carrying amount of the asset, the asset’s cost is adjusted to fair value and an impairment loss is recognized as the amount by which the carrying amount of a long-lived asset exceeds its fair value. |
Federal Reserve and Federal Home Loan Bank Stock | Federal Reserve and Federal Home Loan Bank Stock Federal Reserve and Federal Home Loan Bank stock are required investments for institutions that are members of the Federal Reserve and Federal Home Loan Bank systems. The required investment in the common stock is based on a predetermined formula, carried at cost and evaluated for impairment. |
Foreclosed Assets Held for Sale | Foreclosed Assets Held for Sale Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less costs to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of the carrying amount or the fair value less cost to sell. Revenue and expenses from operations related to foreclosed assets and changes in the valuation allowance are included in net income or expense from foreclosed assets. |
Goodwill | Goodwill Goodwill is tested for impairment annually. If the implied fair value of goodwill is lower than its carrying amount, goodwill impairment is indicated and goodwill is written down to its implied fair value. |
Intangible Assets | Core Deposits and Other Intangibles Intangible assets are being amortized on a straight-line basis over weighted-average periods ranging from one to fifteen years. Such assets are periodically evaluated as to the recoverability of their carrying value. Purchased software is being amortized using the straight-line method over periods ranging from one to three years. |
Derivatives | Derivatives Derivatives are recognized as assets and liabilities on the consolidated balance sheet and measured at fair value. For exchange-traded contracts, fair value is based on quoted market prices. For non-exchange traded contracts, fair value is based on dealer quotes, pricing models, discounted cash flow methodologies or similar techniques for which the determination of fair value may require significant management judgment or estimation. |
Mortgage Servicing Rights | Mortgage Servicing Rights Mortgage servicing assets are recognized separately when rights are acquired through purchase or through sale of financial assets. Under the servicing assets and liabilities accounting guidance (ASC 806-50), servicing rights from the sale or securitization of loans originated by the Company are initially measured at fair value at the date of transfer. The Company subsequently measures each class of servicing asset using the amortization method. Under the amortization method, servicing rights are amortized in proportion to and over the period of estimated net servicing income. The amortized assets are assessed for impairment based on fair value at each reporting date. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost of service, the discount rate, the custodial earning rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. These variables change from quarter to quarter as market conditions and projected interest rates change, and may have an adverse impact on the value of the mortgage servicing right and may result in a reduction to noninterest income. Each class of separately recognized servicing assets subsequently measured using the amortization method is evaluated and measured for impairment. Impairment is determined by stratifying rights into tranches based on predominant characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual tranche, to the extent that fair value is less than the carrying amount of the servicing assets for that tranche. The valuation allowance is adjusted to reflect changes in the measurement of impairment after the initial measurement of impairment. Changes in valuation allowances are reported with “Mortgage Loan Servicing Fees, net” on the income statement. Fair value in excess of the carrying amount of servicing assets for that stratum is not recognized. Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income. |
Share-Based Employee Compensation Plan | Share-Based Employee Compensation Plan At December 31, 2015 and 2014, the Company had a share-based employee compensation plan, which is described more fully in Note 15. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company – put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before the maturity or the ability to unilaterally cause the holder to return specific assets. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with income tax accounting guidance (ASC 740, Income Taxes). The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. Uncertain tax positions are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the term “upon examination” also includes resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances and information available at the reporting date and is subject to management’s judgment. The Company recognizes interest and penalties on income taxes as a component of income tax expense. The Company files consolidated income tax returns with its subsidiaries. With a few exceptions, the Company is no longer subject to U.S. Federal, State and Local examinations by tax authorities for the years before 2011. As of December 31, 2015, the Company had no uncertain income tax positions. |
Treasury Shares | Treasury Shares Treasury stock is stated at cost. Cost is determined by the weighted average cost method. |
Earnings Per Share | Earnings Per Share Earnings per common share is computed using the two-class method. Basic earnings per share represent income available to common shareholders divided by the weighted-average number of common shares outstanding during each period. Diluted earnings per share reflect additional potential common shares and convertible preferred shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate solely to outstanding stock options which are determined using the treasury stock method and convertible preferred shares which are determined using the if converted method. Treasury stock shares are not deemed outstanding for earnings per share calculations. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of net income and other comprehensive income, net of applicable income taxes. Other comprehensive income includes unrealized appreciation (depreciation) on available-for-sale securities, and unrealized and realized gains and losses in derivative financial instruments that qualify for hedge accounting. Accumulated other comprehensive income consists solely of the cumulative unrealized gains and losses on available-for-sale securities net of income tax. |
New and applicable accounting pronouncements: | New and applicable accounting pronouncements: Accounting Standards Update (ASU) No. 2016-02: Leases (Topic 842) This ASU is intended to increase transparency and comparibility among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The amendments in this ASU are effective for reporting periods beginning after December 15, 2019, and management will need further study to determine the impact on the Company’s consolidated financial statements ASU No. 2016-01: Financial Instruments – Recognition and measurement of financial assets and financial liabilities (Subtopic 825-10) This ASU makes targeted improvements to generally accepted accounting principles. Specifically, the amendments require equity securities with readily determinable fair values be classified into different categories and require equity securities to be measured at fair value with changes in the fair value recognized through net income. The amendments in this ASU are effective for reporting periods beginning after December 15, 2017, and management does not believe this ASU will have a material impact on the Company’s consolidated financial statements ASU No. 2015-16: Business Combinations (Topic 805) This ASU requires an acquirer to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. Further, an entity must present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings that would have been recorded previously if the provisional amounts had been recorded as of the acquisition date. The amendments in this ASU are effective for reporting periods beginning after December 15, 2015, and management does not believe this ASU will have a material impact on the Company’s consolidated financial statements ASU No. 2015-15: Interest – Imputation of Interest (Subtopic 835-30) This ASU requires entities to present debt issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of that debt liability. The amendments in this ASU are effective for reporting periods beginning after December 15, 2015, and management does not believe this ASU will have a material impact on the Company’s consolidated financial statements. ASU No. 2015-05: Intangibles – Goodwill and Other (Subtopic 310-40, Software) This ASU provides guidance for the customer’s accounting treatment for fees paid in a cloud computing arrangement. Existing GAAP does not include explicit guidance regarding this topic. Specifically the ASU indicates how to handle cloud computing arrangements when a software license does and does not exist as part of the arrangement. The amendments in this ASU are effective for reporting periods beginning after December 15, 2015, and management does not believe this ASU will have a material impact on the Company’s consolidated financial statements. ASU No. 2015-03 (Sub Topic 835-30): Interest – Simplifying the Presentation of Debt Issuance Costs This ASU simplifies the presentation of debt issuance costs, with the amendments in this ASU requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The amendments in this ASU are effective for reporting periods beginning after December 15, 2015, and management does not believe this update will have a material impact on the Company’s consolidated financial statements. ASU No. 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract is more Akin to Debt or to Equity. This ASU provides guidance for an entity when hybrid financial instruments are issued in the form of a share. The entity should determine the nature of the host contract by considering the economic characteristics and risks of the entire financial instrument. The determination of these host characteristics may meet the definition of a derivative financial instrument. The amendments in this ASU are effective for reporting periods beginning after December 15, 2015, and management does not believe this update will have a material impact on the Company’s consolidated financial statements. ASU No. 2014-12 (Topic 718): Compensation – Stock Compensation This ASU provides guidance for the accounting treatment of share-based payments when the terms provide that a performance target could be achieved after the service period. The treatment requires that the target achievement after the service period be treated as a performance condition. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The amendments in this ASU are effective for reporting periods beginning after December 15, 2015, and management does not believe this update will have a material impact on the Company’s consolidated financial statements. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Summary of earnings per share | ($ in thousands - except per share data) 2015 2014 Distributed earnings allocated to common shares $ 982 $ 783 Undistributed earnings allocated to common shares 5,676 4,477 Net earnings allocated to common shares 6,663 5,260 Net earnings allocated to participating securities 5 3 Dividends on convertible preferred shares 956 - Net Income allocated to common shares and participating securities $ 7,619 $ 5,263 Weighted average shares outstanding for basic earnings per share 4,884 4,874 Dilutive effect of stock compensation 88 68 Dilutive effect of convertible shares 1,451 - Weighted average shares outstanding for diluted earnings per share 6,423 4,942 Basic earnings per common share $ 1.36 $ 1.08 Diluted earnings per common share $ 1.19 $ 1.07 |
Available-for-Sale Securities (
Available-for-Sale Securities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Available-for-Sale Securities [Abstract] | |
Summary of amortized cost and fair values with gross unrealized gains and losses of available-for-sale securities | Gross Gross Amortized Unrealized Unrealized ($ in thousands) Cost Gains Losses Fair Value Available-for-Sale Securities: December 31, 2015: U.S. Treasury and Government agencies $ 10,804 $ 101 $ - $ 10,905 Mortgage-backed securities 61,459 311 (427 ) 61,343 State and political subdivisions 16,519 999 - 17,518 Equity securities 23 - - 23 $ 88,805 $ 1,411 $ (427 ) $ 89,789 Gross Gross Amortized Unrealized Unrealized ($ in thousands) Cost Gains Losses Fair Value Available-for-Sale Securities: December 31, 2014: U.S. Treasury and Government agencies $ 15,187 $ 124 $ (4 ) $ 15,307 Mortgage-backed securities 50,563 462 (285 ) 50,740 State and political subdivisions 18,075 1,095 - 19,170 Equity securities 23 - - 23 $ 83,848 $ 1,681 $ (289 ) $ 85,240 |
Summary of amortized cost and fair value of securities available for sale by contractual maturity | Available for Sale Amortized Fair ($ in thousands) Cost Value Within one year $ 425 $ 429 Due after one year through five years 2,044 2,126 Due after five years through ten years 6,079 6,399 Due after ten years 18,775 19,469 27,323 28,423 Mortgage-backed securities and equity securities 61,482 61,366 Totals $ 88,805 $ 89,789 |
Summary of securities with unrealized losses | ($ in thousands) Less than 12 Months 12 Months or Longer Total December 31, 2015 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Mortgage-backed securities 30,184 (253 ) 7,061 (174 ) 37,245 (427 ) $ 30,184 $ (253 ) $ 7,061 $ (174 ) $ 37,245 $ (427 ) December 31, 2014 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury and Government agencies $ 1,387 $ (4 ) $ - $ - $ 1,387 $ (4 ) Mortgage-backed securities 20,491 (73 ) 7,073 (212 ) 27,564 (285 ) $ 21,878 $ (77 ) $ 7,073 $ (212 ) $ 28,951 $ (289 ) |
Loans and Allowance for Loan 30
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Loans and Allowance For Loan Losses [Abstract] | |
Summary of categories of loans | Total Loans Non-Accrual Loans ($ in thousands) Dec. 2015 Dec. 2014 Dec. 2015 Dec. 2014 Commercial & Industrial $ 86,542 $ 88,485 188 1,387 Commercial RE & Construction 242,208 217,030 5,670 2,092 Agricultural & Farmland 43,835 46,217 7 - Residential Real Estate 130,806 113,214 749 992 Consumer & Other 54,224 51,546 32 138 Total Loans $ 557,615 $ 516,492 $ 6,646 $ 4,609 Unearned Income $ 44 $ (156 ) Total Loans, net of unearned income $ 557,659 $ 516,336 Allowance for loan losses $ (6,990 ) $ (6,771 ) |
Summary loan commitments, unused lines of credit and standby letters of credit | ($ in thousands) 2015 2014 Loan commitments and unused lines of credit $ 126,902 $ 105,136 Standby letters of credit 1,026 672 Total $ 127,928 $ 105,808 |
Summary of allowance for loan losses and recorded investment in loans based on portfolio segment and impairment method | Commercial Commercial RE Agricultural Residential Consumer ($'s in thousands) & Industrial & Construction & Farmland Real Estate & Other Total ALLOWANCE FOR LOAN AND LEASE LOSSES For the Twelve Months Ended December 31, 2015 Beginning balance $ 1,630 $ 2,857 $ 208 $ 1,308 $ 768 $ 6,771 Charge Offs (497 ) (303 ) - (56 ) (96 ) $ (952 ) Recoveries 26 3 3 29 10 71 Provision (245 ) 1,329 (7 ) 31 (8 ) 1,100 Ending Balance $ 914 $ 3,886 $ 204 $ 1,312 $ 674 $ 6,990 Loans Receivable at December 31, 2015 Allowance: Ending balance: individually evaluated for impairment $ - $ 1,759 $ - $ 167 $ 37 $ 1,963 Ending balance: collectively evaluated for impairment $ 914 $ 2,127 $ 204 $ 1,145 $ 637 $ 5,027 Loans: Ending balance: individually evaluated for impairment $ 126 $ 5,754 $ - $ 1,713 $ 464 $ 8,057 Ending balance: collectively evaluated for impairment $ 86,416 $ 236,454 $ 43,835 $ 129,093 $ 53,760 $ 549,558 Commercial Commercial RE Agricultural Residential Consumer ($'s in thousands) & Industrial & Construction & Farmland Real Estate & Other Total ALLOWANCE FOR LOAN AND LEASE LOSSES For the Twelve Months Ended December 31, 2014 Beginning balance $ 2,175 $ 2,708 $ 159 $ 1,067 $ 855 $ 6,964 Charge Offs (607 ) (13 ) - (92 ) (135 ) $ (847 ) Recoveries 19 125 3 32 25 204 Provision 43 37 46 301 23 450 Ending Balance $ 1,630 $ 2,857 $ 208 $ 1,308 $ 769 $ 6,771 Loans Receivable at December 31, 2014 Allowance: Ending balance: individually evaluated for impairment $ 510 $ 1,018 $ - $ 242 $ 41 $ 1,811 Ending balance: collectively evaluated for impairment $ 1,120 $ 1,839 $ 208 $ 1,066 $ 728 $ 4,960 Loans: Ending balance: individually evaluated for impairment $ 1,268 $ 2,035 $ - $ 1,647 $ 481 $ 5,431 Ending balance: collectively evaluated for impairment $ 87,217 $ 214,995 $ 46,217 $ 111,567 $ 51,065 $ 511,061 |
Summary of credit risk profile of the Company's loan portfolio based on rating category | December 31, 2015 Commercial Commercial RE Agricultural Residential Consumer ($ in thousands) & Industrial & Construction & Farmland Real Estate & Other Total 1-2 $ 709 $ 767 $ 47 $ - $ 15 $ 1,538 3 23,362 79,915 8,195 118,463 50,745 280,680 4 61,799 149,473 35,593 10,418 3,223 260,506 Total Pass (1 - 4) 85,870 230,155 43,835 128,881 53,983 542,724 Special Mention (5) 330 5,260 - 756 70 6,416 Substandard (6) 110 1,072 - 420 139 1,741 Doubtful (7) 232 5,721 - 749 32 6,734 Loss (8) - - - - - - Total Loans $ 86,542 $ 242,208 $ 43,835 $ 130,806 $ 54,224 $ 557,615 December 31, 2014 Commercial Commercial RE Agricultural Residential Consumer ($ in thousands) & Industrial & Construction & Farmland Real Estate & Other Total 1-2 $ 1,148 $ 66 $ 61 $ - $ - $ 1,275 3 23,580 67,779 9,505 105,149 47,795 253,808 4 61,691 136,427 36,651 5,611 3,465 243,845 Total Pass (1 - 4) 86,419 204,272 46,217 110,760 51,260 498,928 Special Mention (5) 83 6,224 - 1,160 84 7,551 Substandard (6) 752 4,422 - 312 55 5,541 Doubtful (7) 1,231 2,112 - 982 147 4,472 Loss (8) - - - - - - Total Loans $ 88,485 $ 217,030 $ 46,217 $ 113,214 $ 51,546 $ 516,492 |
Summary of loan portfolio aging analysis | ($ in thousands) 30-59 Days 60-89 Days Greater Than Total Past Total Loans December 31, 2015 Past Due Past Due 90 Days Due Current Receivable Commercial & Industrial $ - $ 60 $ 188 $ 248 $ 86,294 $ 86,542 Commercial RE & Construction 99 - 5,280 5,379 236,829 242,208 Agricultural & Farmland - - - - 43,835 43,835 Residential Real Estate 98 198 156 452 130,354 130,806 Consumer & Other 64 - 2 66 54,158 54,224 Total Loans $ 261 $ 258 $ 5,626 $ 6,145 $ 551,470 $ 557,615 ($ in thousands) 30-59 Days 60-89 Days Greater Than Total Past Total Loans December 31, 2014 Past Due Past Due 90 Days Due Current Receivable Commercial & Industrial $ - $ - $ 987 $ 987 $ 87,498 $ 88,485 Commercial RE & Construction 3,660 - 1,747 5,407 211,623 217,030 Agricultural & Farmland - - - - 46,217 46,217 Residential Real Estate 164 19 377 560 112,654 113,214 Consumer & Other 39 81 - 120 51,426 51,546 Total Loans $ 3,863 $ 100 $ 3,111 $ 7,074 $ 509,418 $ 516,492 |
Summary of Impaired loan activity | Twelve Months Ended Recorded Unpaid Principal Related Average Recorded Interest ($'s in thousands) Investment Balance Allowance Investment Recognized With no related allowance recorded: Commercial & Industrial $ 126 $ 1,214 $ - $ 1,388 $ - Commercial RE & Construction 1,110 1,110 - 1,206 27 Agricultural & Farmland - - - - - Residential Real Estate 657 657 - 862 52 Consumer & Other 90 90 - 107 9 All Impaired Loans < $100,000 131 131 - 131 - With a specific allowance recorded: Commercial & Industrial - - - - - Commercial RE & Construction 4,643 4,893 1,759 5,006 90 Agricultural & Farmland - - - - - Residential Real Estate 1,013 1,013 167 1,084 45 Consumer & Other 374 374 37 385 22 Totals: Commercial & Industrial $ 126 $ 1,214 $ - $ 1,388 $ - Commercial RE & Construction $ 5,753 $ 6,003 $ 1,759 $ 6,212 $ 117 Agricultural & Farmland $ - $ - $ - $ - $ - Residential Real Estate $ 1,670 $ 1,670 $ 167 $ 1,946 $ 97 Consumer & Other $ 464 $ 464 $ 37 $ 492 $ 31 All Impaired Loans < $100,000 $ 131 $ 131 $ - $ 131 $ - Twelve Months Ended Recorded Unpaid Principal Related Average Recorded Interest ($'s in thousands) Investment Balance Allowance Investment Recognized With no related allowance recorded: Commercial & Industrial $ 316 $ 316 $ - $ 316 $ - Commercial RE & Construction 530 530 - 571 20 Agricultural & Farmland - - - - - Residential Real Estate 567 611 - 734 49 Consumer & Other 11 110 - 124 10 All Impaired Loans < $100,000 565 565 - 565 - With a specific allowance recorded: Commercial & Industrial 952 1,552 510 1,605 - Commercial RE & Construction 1,505 1,505 1,018 1,521 60 Agricultural & Farmland - - - - - Residential Real Estate 1,080 1,080 242 1,146 47 Consumer & Other 371 371 41 402 20 Totals: Commercial & Industrial $ 1,268 $ 1,868 $ 510 $ 1,921 $ - Commercial RE & Construction $ 2,035 $ 2,035 $ 1,018 $ 2,092 $ 80 Agricultural & Farmland $ - $ - $ - $ - $ - Residential Real Estate $ 1,647 $ 1,691 $ 242 $ 1,880 $ 96 Consumer & Other $ 382 $ 481 $ 41 $ 526 $ 30 All Impaired Loans < $100,000 $ 565 $ 565 $ - $ 565 $ - |
Summary of newly restructured loans by type of modification | December 31, 2015 ($ in thousands) Number of Loans Pre- Post Residential Real Estate 1 $ 22 $ 22 Commercial 1 314 314 Consumer & Other 1 39 39 Total Modifications 3 $ 375 $ 375 ($ in thousands) Interest Total Only Term Combination Modification Residential Real Estate $ - $ 22 $ - $ 22 Commercial - 314 - 314 Consumer & Other - 39 - 39 Total Modifications $ - $ 375 $ - $ 375 December 31, 2014 ($ in thousands) Number of Loans Pre-Modification Post Modification Residential Real Estate - $ - $ - Consumer & Other 1 16 16 Total Modifications 1 $ 16 $ 16 ($ in thousands) Interest Total Only Term Combination Modification Residential Real Estate $ - $ - $ - $ - Consumer & Other - 16 - 16 Total Modifications $ - $ 16 $ - $ 16 |
Summary of troubled debt restructurings modified subsequently defaulted | Number of Recorded ($ in thousands) Contracts Balance Residential Real Estate 2 $ 197 2 197 |
Mortgage Banking and Servicin31
Mortgage Banking and Servicing Rights (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Mortgage Banking and Servicing Rights [Abstract] | |
Summary of mortgage servicing rights capitalized and related amortization | ($ in thousands) 2015 2014 Carrying amount, beginning of year $ 5,704 $ 5,180 Mortgage servicing rights capitalized during the year 2,214 1,367 Mortgage servicing rights amortization during the year (882 ) (612 ) Net change in valuation allowance 116 (231 ) Carrying amount, end of year $ 7,152 $ 5,704 Valuation allowance: Beginning of year $ 412 $ 181 Reduction (116 ) 231 End of year $ 296 $ 412 Fair Value, beginning of period $ 6,358 $ 6,237 Fair Value, end of period $ 7,760 $ 6,358 |
Derivative Financial Instrume32
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Financial Instruments [Abstract] | |
Schedule of fair values of derivative instruments on the balance sheet | Asset Derivatives Liability Derivatives December 31, 2015 December 31, 2015 ($ in thousands) Balance Sheet Fair Balance Sheet Fair Location Value Location Value Derivatives not designated as hedging instruments: Interest rate contracts Other Assets $ 490 Other Liabilities $ 490 Asset Derivatives Liability Derivatives December 31, 2014 December 31, 2014 ($ in thousands) Balance Sheet Fair Balance Sheet Fair Location Value Location Value Derivatives not designated as hedging instruments: Interest rate contracts Other Assets $ 273 Other Liabilities $ 273 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Premises and Equipment [Abstract] | |
Summary of premises and equipment | ($ in thousands) 2015 2014 Land $ 2,501 $ 2,013 Buildings and improvements 19,222 15,213 Equipment 10,566 9,209 Construction in progress 2,002 1,546 34,291 27,981 Less accumulated depreciation (15,281 ) (14,377 ) Net premises and equipment $ 19,010 $ 13,604 |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangibles [Abstract] | |
Summary of carrying basis and accumulated amortization of recognized intangible assets | 2015 2014 ($ in thousands) Gross Carrying Accumulated Gross Carrying Accumulated Amount Amortization Amount Amortization Core deposits intangible $ 4,698 $ (4,668 ) $ 4,698 $ (4,473 ) Customer relationship intangible 200 (148 ) 200 (142 ) Banking intangibles 4,898 (4,816 ) 4,898 (4,615 ) |
Summary of estimated amortization expense | ($ in thousands) 2016 2017 2018 2019 2020 Core deposit intangible $ 8 $ 7 $ 5 $ 4 $ 4 Customer relationship intangible 5 5 4 4 4 Banking intangibles 13 12 9 8 8 |
Interest Bearing Deposits (Tabl
Interest Bearing Deposits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Interest Bearing Deposits/ Federal Home Loan Bank Advances [Abstract] | |
Scheduled maturities of time deposit | ($ in thousands) 2016 $ 75,593 2017 41,152 2018 18,368 2019 12,282 2020 11,112 Thereafter 531 $ 159,038 |
Securities Sold Under Repurch36
Securities Sold Under Repurchase Agreements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Securities Sold Under Repurchase Agreements [Abstract] | |
Summary of securities repurchase agreements | ($ in thousands) 2015 2014 Securities Sold Under Repurchase Agreements $ 12,406 $ 12,740 |
Federal Home Loan Bank Advanc37
Federal Home Loan Bank Advances (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Interest Bearing Deposits/ Federal Home Loan Bank Advances [Abstract] | |
Aggregate annual maturities of federal home loan bank advances | ($ in thousands) Debt 2016 $ 14,000 2017 7,500 2018 7,000 2019 6,500 2020 - Total $ 35,000 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Schedule of provision for income taxes | ($ in thousands) For The Year Ended 2015 2014 Taxes currently payable $ 1,885 $ 1,424 Deferred provision 1,519 661 Income tax expense $ 3,404 $ 2,085 |
Schedule of reconciliation of income tax expense | ($ in thousands) For The Year Ended December 31, 2015 2014 Computed at the statutory rate (34%) $ 3,748 $ 2,498 Increase (decrease) resulting from Tax exempt interest (240 ) (240 ) BOLI Income (99 ) (138 ) Other (5 ) (35 ) Actual tax expense $ 3,404 $ 2,085 |
Schedule of deferred tax | ($ in thousands) At December 31, 2015 2014 Deferred tax assets Allowance for loan losses $ 2,377 $ 2,302 Net deferred loan fees 104 80 AMT credit carry over - 542 Other 757 787 3,238 3,711 Deferred tax liabilities Depreciation (1,335 ) (995 ) Mortgage servicing rights (2,468 ) (1,939 ) Unrealized gains on available-for-sale securities (335 ) (473 ) Purchase accounting adjustments (1,489 ) (1,319 ) Prepaids (285 ) (277 ) FHLB stock dividends (465 ) (466 ) (6,377 ) (5,469 ) Net deferred tax liability $ (3,139 ) $ (1,758 ) |
Regulatory Matters and Trust 39
Regulatory Matters and Trust Preferred Securities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Regulatory Matters and Trust Preferred Securities [Abstract] | |
Summary of State Bank's actual capital amounts and ratios | Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Procedures ($ in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2015 Tier I Capital to average assets $ 64,914 9.10 % $ 28,534 4.0 % $ 35,668 5.0 % Tier I Common equity capital to risk-weighted assets 64,914 10.23 % 28,545 4.5 % 41,231 6.5 % Tier I Capital to risk-weighted assets 64,914 10.23 % 38,059 6.0 % 50,746 8.0 % Total Risk-based capital to risk-weighted assets 71,904 11.34 % 50,746 8.0 % 63,432 10.0 % As of December 31, 2014 Tier I Capital to average assets 57,591 8.55 % 27,354 4.0 % 33,333 5.0 % Tier I Capital to risk-weighted assets 57,591 10.73 % 21,253 4.0 % 31,879 6.0 % Total Risk-based capital to risk-weighted assets 63,664 11.98 % 42,506 8.0 % 53,132 10.0 % |
Share Based Compensation Plan (
Share Based Compensation Plan (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Share Based Compensation Plan [Abstract] | |
Summary of option activity under Company's Plan | Shares Weighted- Weighted- Aggregate Outstanding, beginning of year 195,220 $ 8.60 Granted - - Exercised (9,500 ) 6.98 Forfeited (25,646 ) 6.98 Expired (20,000 ) 12.33 Outstanding, end of year 140,074 8.12 3.36 $ 436,089 Exercisable, end of year 140,074 8.12 3.36 $ 436,089 |
Summary of restricted stock activity under the Company's plan | Shares Weighted- Nonvested, beginning of year 22,652 $ 8.15 Granted 12,192 9.55 Vested (6,441 ) 8.07 Forfeited (1,075 ) 8.11 Nonvested, end of year 27,328 $ 8.77 |
Disclosures About Fair Value 41
Disclosures About Fair Value of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosures About Fair Value Of Assets and Liabilities [Abstract] | |
Fair value measurements of securities measured at fair value on a recurring basis | ($ in thousands) Available-for-Sale Securities: Fair Values at 12/31/2015 (Level 1) (Level 2) (Level 3) U.S. Treasury and Government Agencies $ 10,905 $ - $ 10,905 $ - Mortgage-backed securities 61,343 - 61,343 - State and political subdivisions 17,518 - 17,518 - Equity securities 23 23 Interest rate contracts - assets 490 490 Interest rate contracts - liabilities (490 ) (490 ) ($ in thousands) Available-for-Sale Securities: Fair Values at 12/31/2014 (Level 1) (Level 2) (Level 3) U.S. Treasury and Government Agencies $ 15,307 $ - $ 15,307 $ - Mortgage-backed securities 50,740 - 50,740 - State and political subdivisions 19,170 - 19,170 - Equity securities 23 23 Interest rate contracts - assets 273 273 Interest rate contracts - liabilities (273 ) (273 ) |
Summary of fair value measurements of assets measured at fair value on a non-recurring basis | ($ in thousands) Fair Values at 12/31/2015 (Level 1) (Level 2) (Level 3) Impaired loans $ 3,011 $ - $ - $ 3,011 Mortgage Servicing Rights 2,585 - - 2,585 ($ in thousands) Fair Values at 12/31/2014 (Level 1) (Level 2) (Level 3) Impaired loans $ 2,538 $ - $ - $ 2,538 Mortgage Servicing Rights 3,037 - - 3,037 |
Summary of quantitative information about unobservable inputs used in recurring and nonrecurring | ($ in thousands) Fair Value at 12/31/2015 Valuation Technique Unobservable Inputs Range (Weighted Average) Collateral-dependent impaired loans $ 3,011 Market comparable properties Comparability adjustments (%) Not available Mortgage servicing rights 2,585 Discounted cash flow Discount Rate 9.75 % Constant prepayment rate 8.90 % P&I earnings credit 0.42 % T&I earnings credit 1.54 % Inflation for cost of servicing 1.50 % ($ in thousands) Fair Value at 12/31/2014 Valuation Technique Unobservable Inputs Range (Weighted Average) Collateral-dependent impaired loans $ 2,538 Market comparable properties Comparability adjustments (%) Not available Mortgage servicing rights 3,037 Discounted cash flow Discount Rate 9.50 % Constant prepayment rate 10.30 % P&I earnings credit 0.17 % T&I earnings credit 1.75 % Inflation for cost of servicing 1.50 % |
Summary of estimated fair values of company's financial instruments | December 31, 2015 Carrying Fair Value Measurements Using $'s in thousands Amount (Level 1) (Level 2) (Level 3) Financial assets Cash and due from banks $ 20,459 $ 20,459 $ - $ - Loans held for sale 7,516 - 7,779 - Loans, net of allowance for loan losses 550,669 - - 548,154 Federal Reserve and FHLB Bank stock, at cost 3,748 - 3,748 - Interest receivable 1,260 - 1,260 - Mortgage Servicing Rights 7,152 - - 7,760 Financial liabilities Deposits $ 586,453 $ 113,113 $ 475,468 $ - Repurchase agreements 12,406 - 12,406 - FHLB advances 35,000 - 34,870 - Trust preferred securities 10,310 - 7,165 - Interest payable 264 - 264 - December 31, 2014 Carrying Fair Value Measurements Using $'s in thousands Amount (Level 1) (Level 2) (Level 3) Financial assets Cash and due from banks $ 28,197 $ 28,197 $ - $ - Loans held for sale 5,168 - 5,315 - Loans, net of allowance for loan losses 509,565 - - 510,314 Federal Reserve and FHLB Bank stock, at cost 3,748 - 3,748 - Interest receivable 1,346 - 1,346 - Mortgage Servicing Rights 5,704 - - 6,358 Financial liabilities Deposits $ 550,906 $ 97,853 $ 455,383 $ - Repurchase agreements 12,740 - 12,740 - FHLB advances 30,000 - 29,907 - Trust preferred securities 10,310 - 7,206 - Interest payable 264 - 264 - |
Condensed Financial Informati42
Condensed Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information [Abstract] | |
Schedule of condensed balance sheets | Condensed Balance Sheets 2015 2014 Assets Cash and cash equivalents $ 9,157 $ 12,446 Investment in banking subsidiaries 82,251 75,194 Investment in nonbanking subsidiaries 1,438 1,401 Other assets 318 152 Total assets $ 93,164 $ 89,193 Liabilities Trust preferred securities $ 10,000 $ 10,000 Borrowings from nonbanking subsidiaries 310 310 Other liabilities & accrued interest payable 1,613 3,200 Total liabilities 11,923 13,510 Stockholders' Equity 81,241 75,683 Total liabilities and stockholders' equity $ 93,164 $ 89,193 |
Schedule of condensed statements of income and comprehensive income | Condensed Statements of Income & Comprehensive Income 2015 2014 Dividends from subsidiaries: Banking subsidiaries $ 1,000 $ 5,000 Nonbanking subsidiaries - 39 Total income 1,000 5,039 Expenses Interest expense 212 1,138 Other expense 922 1,201 Total expenses 1,134 2,339 Income before income tax (134 ) 2,700 Income tax benefit (385 ) (803 ) Income before equity in undistributed income of subsidiaries 251 3,503 Equity in undistributed income of subs. Banking subsidiaries 7,369 1,952 Nonbanking subsidiaries (1 ) (192 ) Total 7,368 1,760 Net income $ 7,619 $ 5,263 Preferred stock dividends 956 - Net income available to common shareholders $ 6,663 $ 5,263 Comprehensive income $ 7,351 $ 6,107 |
Schedule of condensed statements of cash flows | Condensed Statements of Cash Flows 2015 2014 Operating Activities Net income $ 7,619 $ 5,263 Items not requiring (providing) cash Equity in undistributed net income of subsidiaries (7,368 ) (1,760 ) Expense of stock option plan 81 90 Other assets (166 ) 118 Prepayment penalty on Trust Preferred - 333 Other liabilities (1,581 ) (362 ) Net cash (used in) provided by operating activities (1,415 ) 3,682 Investing Activities Investment in Subsidiary - (164 ) Net cash used in investing activities - (164 ) Financing Activities Dividends on common stock (983 ) (783 ) Dividends on preferred stock (956 ) - Proceeds from stock compensation 67 18 Repurchase of common stock (2 ) - Redemption of trust preferred - (10,643 ) Preferred stock raise - 13,983 Repayment of Notes Payable - - Net cash provided by (used in) financing activities (1,874 ) 2,575 Net Change in Cash and Cash Equivalents (3,289 ) 6,093 Cash and Cash Equivalents at Beginning of Year 12,446 6,353 Cash and Cash Equivalents at End of Year $ 9,157 $ 12,446 |
Organization and Summary of S43
Organization and Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Operations and Summary of Significant Accounting Policies (Textual) | |
Maximum period of loan accrual status past due | 90 days |
Uncertain income tax positions | |
Minimum [Member] | |
Operations and Summary of Significant Accounting Policies (Textual) | |
Intangible assets, weighted-average periods | 1 year |
Software amortized period | 1 year |
Maximum [Member] | |
Operations and Summary of Significant Accounting Policies (Textual) | |
Intangible assets, weighted-average periods | 15 years |
Software amortized period | 3 years |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | ||
Distributed earnings allocated to common shares | $ 982 | $ 783 |
Undistributed earnings allocated to common shares | 5,676 | 4,477 |
Net earnings allocated to common shares | 6,663 | 5,260 |
Net earnings allocated to participating securities | 5 | $ 3 |
Dividends on convertible preferred shares | 956 | |
Net income allocated to common shares and participating securities | $ 7,619 | $ 5,263 |
Weighted average shares outstanding for basic earnings per share | 4,884 | 4,874 |
Dilutive effect of stock compensation | 88 | 68 |
Dilutive effect of convertible shares | 1,451 | |
Weighted average shares outstanding for diluted earnings per share | 6,423 | 4,942 |
Basic earnings per share | $ 1.36 | $ 1.08 |
Diluted earnings per share | $ 1.19 | $ 1.07 |
Earnings Per Share (Details Tex
Earnings Per Share (Details Textual) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share (Textual) | ||
Antidilutive securities excluded from computation of earnings per share | 35,424 | 171,470 |
Minimum [Member] | ||
Earnings Per Share (Textual) | ||
Shares issued price per share | $ 11.50 | $ 11.50 |
Maximum [Member] | ||
Earnings Per Share (Textual) | ||
Shares issued price per share | $ 14.15 | $ 14.15 |
Available-for-Sale Securities46
Available-for-Sale Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Summary of amortized cost and approximate fair values of securities | ||
Amortized Cost | $ 88,805 | $ 83,848 |
Gross Unrealized Gains | 1,411 | 1,681 |
Gross Unrealized Losses | (427) | (289) |
Fair Value | 89,789 | 85,240 |
U.S. Treasury and Government agencies [Member] | ||
Summary of amortized cost and approximate fair values of securities | ||
Amortized Cost | 10,804 | 15,187 |
Gross Unrealized Gains | $ 101 | 124 |
Gross Unrealized Losses | (4) | |
Fair Value | $ 10,905 | 15,307 |
Mortgage-backed securities [Member] | ||
Summary of amortized cost and approximate fair values of securities | ||
Amortized Cost | 61,459 | 50,563 |
Gross Unrealized Gains | 311 | 462 |
Gross Unrealized Losses | (427) | (285) |
Fair Value | 61,343 | 50,740 |
State and political subdivisions [Member] | ||
Summary of amortized cost and approximate fair values of securities | ||
Amortized Cost | 16,519 | 18,075 |
Gross Unrealized Gains | $ 999 | $ 1,095 |
Gross Unrealized Losses | ||
Fair Value | $ 7,518 | $ 19,170 |
Equity securities [Member] | ||
Summary of amortized cost and approximate fair values of securities | ||
Amortized Cost | $ 23 | $ 23 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | ||
Fair Value | $ 23 | $ 23 |
Available-for-Sale Securities47
Available-for-Sale Securities (Details 1) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Summary of amortized cost and fair value of securities available for sale by contractual maturity | ||
Available for Sale, Amortized Cost, Within one year | $ 425 | |
Available for Sale, Amortized Cost, Due after one year through five years | 2,044 | |
Available for Sale, Amortized Cost, Due after five years through ten years | 6,079 | |
Available for Sale, Amortized Cost, Due after ten years | 18,775 | |
Available for Sale, Amortized Cost | 27,323 | |
Available for Sale, Amortized Cost, Mortgage-backed securities and equity securities | 61,482 | |
Available for Sale, Amortized Cost, Totals | 88,805 | $ 83,848 |
Available for Sale, Fair Value, Within one year | 429 | |
Available for Sale, Fair Value, Due after one year through five years | 2,126 | |
Available for Sale, Fair value, Due after five years through ten years | 6,399 | |
Available for Sale, Fair Value, Due after ten years | 19,469 | |
Available for Sale, Fair Value | 28,423 | |
Available for Sale, Fair Value, Mortgage-backed securities and equity securities | 61,366 | |
Available for Sale, Fair Value, Totals | $ 89,789 | $ 85,240 |
Available-for-Sale Securities48
Available-for-Sale Securities (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of securities with unrealized losses | ||
Less than 12 Months Fair Value | $ 30,184 | $ 21,878 |
Less than 12 Months Unrealized Losses | (253) | (77) |
12 Months or Longer Fair Value | 7,061 | 7,073 |
12 Months or Longer Unrealized Losses | (174) | (212) |
Total Fair Value | 37,245 | 28,951 |
Total Unrealized Losses | (427) | (289) |
U.S. Treasury and Government agencies [Member] | ||
Schedule of securities with unrealized losses | ||
Less than 12 Months Fair Value | 1,387 | |
Less than 12 Months Unrealized Losses | $ (4) | |
12 Months or Longer Fair Value | ||
12 Months or Longer Unrealized Losses | ||
Total Fair Value | $ 1,387 | |
Total Unrealized Losses | (4) | |
Mortgage-backed securities [Member] | ||
Schedule of securities with unrealized losses | ||
Less than 12 Months Fair Value | 30,184 | 20,491 |
Less than 12 Months Unrealized Losses | (253) | (73) |
12 Months or Longer Fair Value | 7,061 | 7,073 |
12 Months or Longer Unrealized Losses | (174) | (212) |
Total Fair Value | 37,245 | 27,564 |
Total Unrealized Losses | $ (427) | $ (285) |
Available-for-Sale Securities49
Available-for-Sale Securities (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Available-for-Sale Securities (Textual) | ||
Fair value of securities pledged as collateral | $ 46,200 | $ 44,500 |
Securities delivered for repurchase agreements | $ 15,800 | 16,500 |
Gross gains realized from sales of available-for-sale securities | 170 | |
Gross losses realized from sales of available-for-sale securities | 10 | |
Net gain on sales of securities | 160 | |
Tax expense for net security gains | 50 | |
Total fair value of investments | $ 37,245 | $ 28,951 |
Fair value as a percentage of available-for-sale investment portfolio | 41.00% | 34.00% |
Unrealized loss on the securities portfolio | $ 140 |
Loans and Allowance for Loan 50
Loans and Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Summary of categories of loans | ||
Total loans | $ 557,615 | $ 516,492 |
Non-Accrual Loans | 6,646 | 4,609 |
Unearned Income | 44 | (156) |
Total Loans, net of unearned income | 557,659 | 516,336 |
Allowance for loan losses | (6,990) | (6,771) |
Commercial & Industrial [Member] | ||
Summary of categories of loans | ||
Total loans | 86,542 | 88,485 |
Non-Accrual Loans | 188 | 1,387 |
Commercial RE & Construction [Member] | ||
Summary of categories of loans | ||
Total loans | 242,208 | 217,030 |
Non-Accrual Loans | 5,670 | 2,092 |
Agricultural & Farmland [Member] | ||
Summary of categories of loans | ||
Total loans | 43,835 | $ 46,217 |
Non-Accrual Loans | 7 | |
Residential Real Estate [Member] | ||
Summary of categories of loans | ||
Total loans | 130,806 | $ 113,214 |
Non-Accrual Loans | 749 | 992 |
Consumer & Other [Member] | ||
Summary of categories of loans | ||
Total loans | 54,224 | 51,546 |
Non-Accrual Loans | $ 32 | $ 138 |
Loans and Allowance for Loan 51
Loans and Allowance for Loan Losses (Details 1) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Allowance For Credit Losses [Line Items] | ||
Letters of credit outstanding, Amount | $ 127,928 | $ 105,808 |
Loan commitments and unused lines of credit [Member] | ||
Financing Receivable, Allowance For Credit Losses [Line Items] | ||
Letters of credit outstanding, Amount | 126,902 | 105,136 |
Standby letters of credit [Member] | ||
Financing Receivable, Allowance For Credit Losses [Line Items] | ||
Letters of credit outstanding, Amount | $ 1,026 | $ 672 |
Loans and Allowance for Loan 52
Loans and Allowance for Loan Losses (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Summary of balance of the allowance for loan losses and the recorded investment in loans | ||
Beginning balance | $ 6,771 | $ 6,964 |
Charge Offs | (952) | (847) |
Recoveries | 71 | 204 |
Provision | 1,100 | 450 |
Ending Balance | 6,990 | 6,771 |
Allowance: Ending balance: individually evaluated for impairment | 1,963 | 1,811 |
Allowance: Ending balance: collectively evaluated for impairment | 5,027 | 4,960 |
Loans, Ending balance individually evaluated for impairment | 8,057 | 5,431 |
Loans, Ending balance collectively evaluated for impairment | 549,558 | 511,061 |
Commercial Industrial [Member] | ||
Summary of balance of the allowance for loan losses and the recorded investment in loans | ||
Beginning balance | 1,630 | 2,175 |
Charge Offs | (497) | (607) |
Recoveries | 26 | 19 |
Provision | (245) | 43 |
Ending Balance | $ 914 | 1,630 |
Allowance: Ending balance: individually evaluated for impairment | 510 | |
Allowance: Ending balance: collectively evaluated for impairment | $ 914 | 1,120 |
Loans, Ending balance individually evaluated for impairment | 126 | 1,268 |
Loans, Ending balance collectively evaluated for impairment | 86,416 | 87,217 |
Commercial RE & Construction [Member] | ||
Summary of balance of the allowance for loan losses and the recorded investment in loans | ||
Beginning balance | 2,857 | 2,708 |
Charge Offs | (303) | (13) |
Recoveries | 3 | 125 |
Provision | 1,329 | 37 |
Ending Balance | 3,886 | 2,857 |
Allowance: Ending balance: individually evaluated for impairment | 1,759 | 1,018 |
Allowance: Ending balance: collectively evaluated for impairment | 2,127 | 1,839 |
Loans, Ending balance individually evaluated for impairment | 5,754 | 2,035 |
Loans, Ending balance collectively evaluated for impairment | 236,454 | 214,995 |
Agricultural & Farmland [Member] | ||
Summary of balance of the allowance for loan losses and the recorded investment in loans | ||
Beginning balance | $ 208 | $ 159 |
Charge Offs | ||
Recoveries | $ 3 | $ 3 |
Provision | (7) | 46 |
Ending Balance | $ 204 | $ 208 |
Allowance: Ending balance: individually evaluated for impairment | ||
Allowance: Ending balance: collectively evaluated for impairment | $ 204 | $ 208 |
Loans, Ending balance individually evaluated for impairment | ||
Loans, Ending balance collectively evaluated for impairment | $ 43,835 | $ 46,217 |
Residential Real Estate [Member] | ||
Summary of balance of the allowance for loan losses and the recorded investment in loans | ||
Beginning balance | 1,308 | 1,067 |
Charge Offs | (56) | (92) |
Recoveries | 29 | 32 |
Provision | 31 | 301 |
Ending Balance | 1,312 | 1,308 |
Allowance: Ending balance: individually evaluated for impairment | 167 | 242 |
Allowance: Ending balance: collectively evaluated for impairment | 1,145 | 1,066 |
Loans, Ending balance individually evaluated for impairment | 1,713 | 1,647 |
Loans, Ending balance collectively evaluated for impairment | 129,093 | 111,567 |
Consumer & Other [Member] | ||
Summary of balance of the allowance for loan losses and the recorded investment in loans | ||
Beginning balance | 768 | 855 |
Charge Offs | (96) | (135) |
Recoveries | 10 | 25 |
Provision | (8) | 23 |
Ending Balance | 674 | 768 |
Allowance: Ending balance: individually evaluated for impairment | 37 | 41 |
Allowance: Ending balance: collectively evaluated for impairment | 637 | 727 |
Loans, Ending balance individually evaluated for impairment | 464 | 481 |
Loans, Ending balance collectively evaluated for impairment | $ 53,760 | $ 51,065 |
Loans and Allowance for Loan 53
Loans and Allowance for Loan Losses (Details 3) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | $ 557,615 | $ 516,492 |
1-2 [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | 1,538 | 1,275 |
3 [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | 280,680 | 253,808 |
4 [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | 260,506 | 243,845 |
Total Pass (1-4) [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | 542,724 | 498,928 |
Special Mention (5) [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | 6,416 | 7,551 |
Substandard (6) [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | 1,741 | 5,541 |
Doubtful (7) [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | $ 6,734 | $ 4,472 |
Loss (8) [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | ||
Commercial & Industrial [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | $ 86,542 | $ 88,485 |
Commercial & Industrial [Member] | 1-2 [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | 709 | 1,148 |
Commercial & Industrial [Member] | 3 [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | 23,362 | 23,580 |
Commercial & Industrial [Member] | 4 [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | 61,799 | 61,691 |
Commercial & Industrial [Member] | Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | 85,870 | 86,419 |
Commercial & Industrial [Member] | Special Mention (5) [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | 330 | 83 |
Commercial & Industrial [Member] | Substandard (6) [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | 110 | 752 |
Commercial & Industrial [Member] | Doubtful (7) [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | $ 232 | $ 1,231 |
Commercial & Industrial [Member] | Loss (8) [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | ||
Commercial RE & Construction [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | $ 242,208 | $ 217,030 |
Commercial RE & Construction [Member] | 1-2 [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | 767 | 66 |
Commercial RE & Construction [Member] | 3 [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | 79,915 | 67,779 |
Commercial RE & Construction [Member] | 4 [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | 149,473 | 136,427 |
Commercial RE & Construction [Member] | Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | 230,155 | 204,272 |
Commercial RE & Construction [Member] | Special Mention (5) [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | 5,260 | 6,224 |
Commercial RE & Construction [Member] | Substandard (6) [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | 1,072 | 4,422 |
Commercial RE & Construction [Member] | Doubtful (7) [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | $ 5,721 | $ 2,112 |
Commercial RE & Construction [Member] | Loss (8) [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | ||
Agricultural & Farmland [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | $ 43,835 | $ 46,217 |
Agricultural & Farmland [Member] | 1-2 [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | 47 | 61 |
Agricultural & Farmland [Member] | 3 [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | 8,195 | 9,505 |
Agricultural & Farmland [Member] | 4 [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | 35,593 | 36,651 |
Agricultural & Farmland [Member] | Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | $ 43,835 | $ 46,217 |
Agricultural & Farmland [Member] | Special Mention (5) [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | ||
Agricultural & Farmland [Member] | Substandard (6) [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | ||
Agricultural & Farmland [Member] | Doubtful (7) [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | ||
Agricultural & Farmland [Member] | Loss (8) [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | ||
Residential Real Estate [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | $ 130,806 | $ 113,214 |
Residential Real Estate [Member] | 1-2 [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | ||
Residential Real Estate [Member] | 3 [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | $ 118,463 | $ 105,149 |
Residential Real Estate [Member] | 4 [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | 10,418 | 5,611 |
Residential Real Estate [Member] | Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | 128,881 | 110,760 |
Residential Real Estate [Member] | Special Mention (5) [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | 756 | 1,160 |
Residential Real Estate [Member] | Substandard (6) [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | 420 | 312 |
Residential Real Estate [Member] | Doubtful (7) [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | $ 749 | $ 982 |
Residential Real Estate [Member] | Loss (8) [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | ||
Consumer & Other [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | $ 54,224 | $ 51,546 |
Consumer & Other [Member] | 1-2 [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | 15 | |
Consumer & Other [Member] | 3 [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | 50,745 | $ 47,795 |
Consumer & Other [Member] | 4 [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | 3,223 | 3,465 |
Consumer & Other [Member] | Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | 53,983 | 51,260 |
Consumer & Other [Member] | Special Mention (5) [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | 70 | 84 |
Consumer & Other [Member] | Substandard (6) [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | 139 | 55 |
Consumer & Other [Member] | Doubtful (7) [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross | $ 32 | $ 147 |
Consumer & Other [Member] | Loss (8) [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, Gross |
Loans and Allowance for Loan 54
Loans and Allowance for Loan Losses (Details 4) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Summary of loan portfolio aging analysis | ||
Total Past Due | $ 6,145 | $ 7,074 |
Current | 551,470 | 509,418 |
Total Loans Receivable | 557,615 | 516,492 |
30 to 59 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 261 | 3,863 |
60-89 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 258 | 100 |
Greater Than 90 Days [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 5,626 | 3,111 |
Commercial & Industrial [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 248 | 987 |
Current | 86,294 | 87,498 |
Total Loans Receivable | $ 86,542 | $ 88,485 |
Commercial & Industrial [Member] | 30 to 59 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | ||
Commercial & Industrial [Member] | 60-89 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | $ 60 | |
Commercial & Industrial [Member] | Greater Than 90 Days [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 188 | $ 987 |
Commercial RE & Construction [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 5,379 | 5,407 |
Current | 236,829 | 211,623 |
Total Loans Receivable | 242,208 | 217,030 |
Commercial RE & Construction [Member] | 30 to 59 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | $ 99 | $ 3,660 |
Commercial RE & Construction [Member] | 60-89 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | ||
Commercial RE & Construction [Member] | Greater Than 90 Days [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | $ 5,280 | $ 1,747 |
Agricultural & Farmland [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | ||
Current | $ 43,835 | $ 46,217 |
Total Loans Receivable | $ 43,835 | $ 46,217 |
Agricultural & Farmland [Member] | 30 to 59 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | ||
Agricultural & Farmland [Member] | 60-89 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | ||
Agricultural & Farmland [Member] | Greater Than 90 Days [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | ||
Residential Real Estate [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | $ 452 | $ 560 |
Current | 130,354 | 112,654 |
Total Loans Receivable | 130,806 | 113,214 |
Residential Real Estate [Member] | 30 to 59 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 98 | 164 |
Residential Real Estate [Member] | 60-89 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 198 | 19 |
Residential Real Estate [Member] | Greater Than 90 Days [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 156 | 377 |
Consumer & Other [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 66 | 120 |
Current | 54,158 | 51,426 |
Total Loans Receivable | 54,224 | 51,546 |
Consumer & Other [Member] | 30 to 59 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | $ 64 | 39 |
Consumer & Other [Member] | 60-89 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | $ 81 | |
Consumer & Other [Member] | Greater Than 90 Days [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | $ 2 |
Loans and Allowance for Loan 55
Loans and Allowance for Loan Losses (Details 5) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Commercial & Industrial [Member] | ||
Summary of Impaired loan activity | ||
With no related allowance recorded, Recorded Investment | $ 126 | $ 316 |
With no related allowance recorded, Unpaid Principal Balance | $ 1,214 | $ 316 |
With no related allowance recorded, Related Allowance | ||
With no related allowance recorded, Average Recorded Investment | $ 1,388 | $ 316 |
With no related allowance recorded, Interest Income Recognized | ||
With a specific allowance recorded, Recorded Investment | $ 952 | |
With a specific allowance recorded, Unpaid Principal Balance | 1,552 | |
With a specific allowance recorded, Related Allowance | 510 | |
With a specific allowance recorded, Average Recorded Investment | $ 1,605 | |
With a specific allowance recorded, Interest Income Recognized | ||
Total Recorded Investment | $ 126 | $ 1,268 |
Total Unpaid Principal Balance | $ 1,214 | 1,868 |
Total Related Allowance | 510 | |
Total Average Recorded Investment | $ 1,388 | $ 1,921 |
Total Interest Income Recognized | ||
Commercial RE & Construction [Member] | ||
Summary of Impaired loan activity | ||
With no related allowance recorded, Recorded Investment | $ 1,110 | $ 530 |
With no related allowance recorded, Unpaid Principal Balance | $ 1,110 | $ 530 |
With no related allowance recorded, Related Allowance | ||
With no related allowance recorded, Average Recorded Investment | $ 1,206 | $ 571 |
With no related allowance recorded, Interest Income Recognized | 27 | 20 |
With a specific allowance recorded, Recorded Investment | 4,643 | 1,505 |
With a specific allowance recorded, Unpaid Principal Balance | 4,893 | 1,505 |
With a specific allowance recorded, Related Allowance | 1,759 | 1,018 |
With a specific allowance recorded, Average Recorded Investment | 5,006 | 1,521 |
With a specific allowance recorded, Interest Income Recognized | 90 | 60 |
Total Recorded Investment | 5,753 | 2,035 |
Total Unpaid Principal Balance | 6,003 | 2,035 |
Total Related Allowance | 1,759 | 1,018 |
Total Average Recorded Investment | 6,212 | 2,092 |
Total Interest Income Recognized | $ 117 | $ 80 |
Agricultural & Farmland [Member] | ||
Summary of Impaired loan activity | ||
With no related allowance recorded, Recorded Investment | ||
With no related allowance recorded, Unpaid Principal Balance | ||
With no related allowance recorded, Related Allowance | ||
With no related allowance recorded, Average Recorded Investment | ||
With no related allowance recorded, Interest Income Recognized | ||
With a specific allowance recorded, Recorded Investment | ||
With a specific allowance recorded, Unpaid Principal Balance | ||
With a specific allowance recorded, Related Allowance | ||
With a specific allowance recorded, Average Recorded Investment | ||
With a specific allowance recorded, Interest Income Recognized | ||
Total Recorded Investment | ||
Total Unpaid Principal Balance | ||
Total Related Allowance | ||
Total Average Recorded Investment | ||
Total Interest Income Recognized | ||
Residential Real Estate [Member] | ||
Summary of Impaired loan activity | ||
With no related allowance recorded, Recorded Investment | $ 657 | $ 567 |
With no related allowance recorded, Unpaid Principal Balance | $ 657 | $ 611 |
With no related allowance recorded, Related Allowance | ||
With no related allowance recorded, Average Recorded Investment | $ 862 | $ 734 |
With no related allowance recorded, Interest Income Recognized | 52 | 49 |
With a specific allowance recorded, Recorded Investment | 1,013 | 1,080 |
With a specific allowance recorded, Unpaid Principal Balance | 1,013 | 1,080 |
With a specific allowance recorded, Related Allowance | 167 | 242 |
With a specific allowance recorded, Average Recorded Investment | 1,084 | 1,146 |
With a specific allowance recorded, Interest Income Recognized | 45 | 47 |
Total Recorded Investment | 1,670 | 1,647 |
Total Unpaid Principal Balance | 1,670 | 1,691 |
Total Related Allowance | 167 | 242 |
Total Average Recorded Investment | 1,946 | 1,880 |
Total Interest Income Recognized | 97 | 96 |
Consumer & Other [Member] | ||
Summary of Impaired loan activity | ||
With no related allowance recorded, Recorded Investment | 90 | 11 |
With no related allowance recorded, Unpaid Principal Balance | $ 90 | $ 110 |
With no related allowance recorded, Related Allowance | ||
With no related allowance recorded, Average Recorded Investment | $ 107 | $ 124 |
With no related allowance recorded, Interest Income Recognized | 9 | 10 |
With a specific allowance recorded, Recorded Investment | 374 | 371 |
With a specific allowance recorded, Unpaid Principal Balance | 374 | 371 |
With a specific allowance recorded, Related Allowance | 37 | 41 |
With a specific allowance recorded, Average Recorded Investment | 385 | 402 |
With a specific allowance recorded, Interest Income Recognized | 22 | 20 |
Total Recorded Investment | 464 | 382 |
Total Unpaid Principal Balance | 464 | 481 |
Total Related Allowance | 37 | 41 |
Total Average Recorded Investment | 492 | 526 |
Total Interest Income Recognized | 31 | 30 |
All Impaired Loans less than $100,000 [Member] | ||
Summary of Impaired loan activity | ||
With no related allowance recorded, Recorded Investment | 131 | 565 |
With no related allowance recorded, Unpaid Principal Balance | $ 131 | $ 565 |
With no related allowance recorded, Related Allowance | ||
With no related allowance recorded, Average Recorded Investment | $ 131 | $ 565 |
With no related allowance recorded, Interest Income Recognized | ||
With a specific allowance recorded, Recorded Investment | $ 371 | |
With a specific allowance recorded, Unpaid Principal Balance | 371 | |
With a specific allowance recorded, Related Allowance | 41 | |
With a specific allowance recorded, Average Recorded Investment | 402 | |
With a specific allowance recorded, Interest Income Recognized | 20 | |
Total Recorded Investment | $ 131 | 565 |
Total Unpaid Principal Balance | $ 131 | $ 565 |
Total Related Allowance | ||
Total Average Recorded Investment | $ 131 | $ 565 |
Total Interest Income Recognized |
Loans and Allowance for Loan 56
Loans and Allowance for Loan Losses (Details 6) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing receivable newly restructured loans by type of modification [Abstract] | ||
Number of Loans | $ 1 | |
Pre-Modification Recorded Balance | 16 | |
Post Modification Recorded Balance | $ 16 | |
Interest Only | ||
Term | $ 16 | |
Combination | ||
Total Modification | $ 16 | |
Residential Real Estate [Member] | ||
Financing receivable newly restructured loans by type of modification [Abstract] | ||
Number of Loans | $ 1 | |
Pre-Modification Recorded Balance | 22 | |
Post Modification Recorded Balance | $ 22 | |
Interest Only | ||
Term | $ 22 | |
Combination | ||
Total Modification | $ 22 | |
Commercial [Member] | ||
Financing receivable newly restructured loans by type of modification [Abstract] | ||
Number of Loans | 1 | |
Pre-Modification Recorded Balance | 314 | |
Post Modification Recorded Balance | $ 314 | |
Interest Only | ||
Term | $ 314 | |
Combination | ||
Total Modification | $ 314 | |
Consumer & Other [Member] | ||
Financing receivable newly restructured loans by type of modification [Abstract] | ||
Number of Loans | 1 | $ 1 |
Pre-Modification Recorded Balance | 39 | 16 |
Post Modification Recorded Balance | $ 39 | $ 16 |
Interest Only | ||
Term | $ 39 | $ 16 |
Combination | ||
Total Modification | $ 39 | $ 16 |
Loans and Allowance for Loan 57
Loans and Allowance for Loan Losses (Details 7) $ in Thousands | 12 Months Ended |
Dec. 31, 2014USD ($)Contract | |
Summary of troubled debt restructurings modified in the past 12 months that subsequently defaulted | |
Number of Contracts | Contract | 2 |
Recorded Balance | $ | $ 197 |
Residential Real Estate [Member] | |
Summary of troubled debt restructurings modified in the past 12 months that subsequently defaulted | |
Number of Contracts | Contract | 2 |
Recorded Balance | $ | $ 197 |
Loans and Allowance for Loan 58
Loans and Allowance for Loan Losses (Details Textual) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Loans and Allowance for Loan Losses (Textual) | |
Principal amount outstanding of loans held-in-portfolio | $ 100,000 |
Impaired loans | Less than $100,000 |
Mortgage Banking and Servicin59
Mortgage Banking and Servicing Rights (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Summary of mortgage servicing rights capitalized and related amortization | ||
Carrying amount, beginning of year | $ 5,704 | $ 5,180 |
Mortgage servicing rights capitalized during the year | 2,214 | 1,367 |
Mortgage servicing rights amortization during the year | (880) | (613) |
Net change in valuation allowance | 116 | (231) |
Carrying amount, end of year | 7,152 | 5,704 |
Valuation allowance: | ||
Beginning of year | 412 | 181 |
Reduction | (116) | 231 |
End of year | 296 | 412 |
Fair Value, beginning of period | 6,358 | 6,237 |
Fair Value, end of period | $ 7,760 | $ 6,358 |
Mortgage Banking and Servicin60
Mortgage Banking and Servicing Rights (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Mortgage Banking and Servicing Rights (Textual) | ||
Unpaid principal balance of mortgage loans | $ 772.5 | $ 662.7 |
Contractually specified servicing fees | $ 1.8 | $ 1.6 |
Derivative Financial Instrume61
Derivative Financial Instruments (Details) - Derivatives not designated as hedging instruments [Member] - Interest rate contracts [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Other Assets [Member] | ||
Fair value of the Company's derivative financial instruments, as well as their classification on the balance sheet | ||
Liability Derivatives | $ 490 | $ 273 |
Other Liabilities [Member] | ||
Fair value of the Company's derivative financial instruments, as well as their classification on the balance sheet | ||
Asset Derivatives | $ 490 | $ 273 |
Derivative Financial Instrume62
Derivative Financial Instruments (Details Textual) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Derivative Financial Instruments (Textual) | ||
Notional amount of customer-facing swaps | $ 17.6 | $ 12.6 |
Cash as collateral | $ 0.7 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Summary of premises and equipment | ||
Property, Plant and Equipment, Gross | $ 34,291 | $ 27,981 |
Less accumulated depreciation | (15,281) | (14,377) |
Net premises and equipment | 19,010 | 13,604 |
Land [Member] | ||
Summary of premises and equipment | ||
Property, Plant and Equipment, Gross | 2,501 | 2,013 |
Buildings and improvements [Member] | ||
Summary of premises and equipment | ||
Property, Plant and Equipment, Gross | 19,222 | 15,213 |
Equipment [Member] | ||
Summary of premises and equipment | ||
Property, Plant and Equipment, Gross | 10,566 | 9,209 |
Construction in progress [Member] | ||
Summary of premises and equipment | ||
Property, Plant and Equipment, Gross | $ 2,002 | $ 1,546 |
Premises and Equipment (Detai64
Premises and Equipment (Details Textual) $ in Millions | Dec. 31, 2015USD ($) |
Premises and Equipment (Textual) | |
Purchase obligation of premises and equipment | $ 2.5 |
Goodwill and Intangibles (Detai
Goodwill and Intangibles (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Core deposits intangible [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | $ 4,698 | $ 4,698 |
Accumulated Amortization | (4,668) | (4,473) |
Customer relationship intangible [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 200 | 200 |
Accumulated Amortization | (148) | (142) |
Banking intangibles [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 4,898 | 4,898 |
Accumulated Amortization | $ (4,816) | $ (4,615) |
Goodwill and Intangibles (Det66
Goodwill and Intangibles (Details 1) $ in Thousands | Dec. 31, 2015USD ($) |
Core deposits intangible [Member] | |
Summary of estimated amortization expense | |
2,016 | $ 8 |
2,017 | 7 |
2,018 | 5 |
2,019 | 4 |
2,020 | 4 |
Customer relationship intangible [Member] | |
Summary of estimated amortization expense | |
2,016 | 5 |
2,017 | 5 |
2,018 | 4 |
2,019 | 4 |
2,020 | 4 |
Banking intangibles [Member] | |
Summary of estimated amortization expense | |
2,016 | 13 |
2,017 | 12 |
2,018 | 9 |
2,019 | 8 |
2,020 | $ 8 |
Goodwill and Intangibles (Det67
Goodwill and Intangibles (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill and Intangibles (Textual) | ||
Intangible amortization expense | $ 200 | $ 372 |
Core Deposits and Other [Member] | ||
Goodwill and Intangibles (Textual) | ||
Intangible amortization expense | $ 200 | $ 370 |
Interest Bearing Deposits (Deta
Interest Bearing Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Summary of scheduled maturities of time deposit | ||
2,016 | $ 75,593 | |
2,017 | 41,152 | |
2,018 | 18,368 | |
2,019 | 12,282 | |
2,020 | 11,112 | |
Thereafter | 531 | |
Time Deposits | $ 159,038 | $ 163,301 |
Interest Bearing Deposits (De69
Interest Bearing Deposits (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Interest-Bearing Time Deposits (Textual) | ||
Interest-bearing time deposits in denominations of $250,000 or more | $ 7,400,000 | $ 16,100,000 |
Certificates of Deposit obtained from brokers | $ 5,200,000 | 8,200,000 |
Deposits maturity date | Between 2016 and 2020. | |
Time deposits certificate of deposit account registry service | $ 37,100,000 | $ 29,200,000 |
Cash FDIC insured | $ 250,000 |
Securities Sold Under Repurch70
Securities Sold Under Repurchase Agreements (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Securities Sold under Agreements to Repurchase [Abstract] | ||
Securities Sold Under Repurchase Agreements | $ 12,406 | $ 12,740 |
Securities Sold Under Repurch71
Securities Sold Under Repurchase Agreements (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Securities Sold Under Repurchase Agreements (Textual) | ||
Purchases of federal funds | $ 15,000,000 | $ 14,000,000 |
Federal funds line drawn upon | $ 0 | 0 |
Short-term borrowings mature | Between 2016 and 2020. | |
Retail Repurchase Agreements [Member] | ||
Securities Sold Under Repurchase Agreements (Textual) | ||
Maximum amount of outstanding agreements at any month-end | $ 20,300,000 | 20,600,000 |
Monthly average of such agreements totaled | $ 15,700,000 | $ 17,100,000 |
Short-term borrowings mature | within one month. | within one month. |
Federal Home Loan Bank Advanc72
Federal Home Loan Bank Advances (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Summary of aggregate annual maturities of Federal Home Loan Bank advances | ||
2,016 | $ 14,000 | |
2,017 | 7,500 | |
2,018 | 7,000 | |
2,019 | $ 6,500 | |
2,020 | ||
Total | $ 35,000 | $ 30,000 |
Federal Home Loan Bank Advanc73
Federal Home Loan Bank Advances (Details Textual) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Federal Home Loan Bank Advances (Textual) | |
Secured amount of Federal Home Loan Bank advances | $ 79.9 |
Minimum interest rate on advances | 0.47% |
Maximum interest rate on advances | 1.99% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of provision for income taxes | ||
Taxes currently payable | $ 1,885 | $ 1,424 |
Deferred provision | 1,519 | 661 |
Income tax expense | $ 3,404 | $ 2,085 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of reconciliation of income tax expense | ||
Computed at the statutory rate (34%) | $ 3,748 | $ 2,498 |
Increase (decrease) resulting from | ||
Tax exempt interest | (240) | (240) |
BOLI Income | (99) | (138) |
Other | (5) | (35) |
Income tax expense | $ 3,404 | $ 2,085 |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets | ||
Allowance for loan losses | $ 2,377 | $ 2,302 |
Net deferred loan fees | $ 104 | 80 |
AMT credit carry over | 542 | |
Other | $ 757 | 787 |
Deferred Tax Assets, Gross | 3,238 | 3,711 |
Deferred tax liabilities | ||
Depreciation | (1,335) | (995) |
Mortgage servicing rights | (2,468) | (1,939) |
Unrealized gains on available-for-sale securities | (335) | (473) |
Purchase accounting adjustments | (1,489) | (1,319) |
Prepaids | (285) | (277) |
FHLB stock dividends | (465) | (466) |
Deferred Tax Liabilities, Gross | (6,377) | (5,469) |
Net deferred tax liability | $ (3,139) | $ (1,758) |
Income Taxes (Details Textual)
Income Taxes (Details Textual) | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes (Textual) | |
Statutory income tax rate | 34.00% |
Regulatory Matters and Trust 78
Regulatory Matters and Trust Preferred Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Summary of State Bank's actual capital amounts and ratios | ||
Tier I Capital to average assets actual amount | $ 64,914 | $ 57,591 |
Tier I Capital to average assets for capital adequacy purposes amount | 28,534 | 27,354 |
Tier I Capital to average assets to be well capitalized under prompt corrective action provisions amount | 35,668 | 33,333 |
Tier I Common equity capital to risk-weighted assets actual amount | 64,914 | |
Tier I Common equity capital to risk-weighted assets for capital adequacy purposes | 28,545 | |
Tier I Common equity capital to risk-weighted assets to be well capitalized under prompt corrective action procedures amount | 41,231 | |
Tier I Capital to risk-weighted assets actual amount | 64,914 | 57,591 |
Tier I Capital to risk-weighted assets for capital adequacy purposes | 38,059 | 21,253 |
Tier I Capital to risk-weighted assets to be well capitalized under prompt corrective action procedures | 50,746 | 31,879 |
Total Risk-based capital to risk-weighted assets actual amount | 71,904 | 63,664 |
Total Risk-based capital to risk-weighted assets for capital adequacy purposes amount | 50,746 | 42,506 |
Total Risk-based capital to risk-weighted assets to be well capitalized under prompt corrective action provisions amount | $ 63,432 | $ 53,132 |
Tier I Capital to average assets actual ratio | 9.10% | 8.55% |
Tier I Capital to average assets for capital adequacy purposes ratio | 4.00% | 4.00% |
Tier I Capital to average assets to be well capitalized under prompt corrective action provisions ratio | 5.00% | 5.00% |
Tier I Common equity capital to risk-weighted assets actual ratio | 10.23% | |
Tier I Common equity capital to risk-weighted assets for capital adequacy purposes | 4.50% | |
Tier I Common equity capital to risk-weighted assets to be well capitalized under prompt corrective action procedures ratio | 6.50% | |
Tier I Capital to risk-weighted assets actual ratio | 10.23% | 10.73% |
Tier I Capital to risk-weighted assets for capital adequacy purposes ratio | 6.00% | 4.00% |
Tier I Capital to risk-weighted assets to be well capitalized under prompt corrective action procedures ratio | 8.00% | 6.00% |
Total Risk-based capital to risk-weighted assets actual ratio | 11.34% | 11.98% |
Total Risk-based capital to risk-weighted assets capital adequacy purposes ratio | 8.00% | 8.00% |
Total Risk-based capital to risk-weighted assets to be well capitalized under prompt corrective action provisions ratio | 10.00% | 10.00% |
Regulatory Matters and Trust 79
Regulatory Matters and Trust Preferred Securities (Details Textual) - USD ($) $ in Millions | Sep. 07, 2014 | Dec. 22, 2014 |
Regulatory Matters and Trust Preferred Securities (Textual) | ||
Trust preferred securities reedemed | $ 10.3 | |
Net proceeds from public offering | $ 14 |
Related Party Transactions (Det
Related Party Transactions (Details) - State Bank [Member] $ in Thousands | Dec. 31, 2014USD ($) |
Related Party Transactions (Textual) | |
Related Party Bank Deposit | $ 540 |
Bank Loans | $ 170 |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Benefits (Textual) | ||
Maximum employee contribution of compensation received | 4.00% | |
Employer Matching Contribution, Percent | 100.00% | |
Vesting period of matching contribution | 3 years | |
Amount of Employer contributions charged to expense | $ 400 | $ 400 |
Description of Supplemental Executive Retirement Plan agreement with certain active and retired officers | Agreements provide monthly payments for up to 15 years that equal 15 percent to 25 percent of average compensation prior to retirement or death. | |
Expense charged under Supplemental Executive Retirement Plan agreements | $ 200 | 100 |
Cash surrender value of all life insurance policies | $ 13,437 | $ 13,148 |
Vesting period of company's contribution to each employee account | 3 years | |
Employee Stock Ownership Plan (ESOP), Number of Allocated Shares | 457,647 | 464,377 |
Employee Stock Ownership Plan (ESOP), Compensation Expense | $ 200 | $ 0 |
Share Based Compensation Plan82
Share Based Compensation Plan (Details) | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Summary of option activity under Company's Plan | |
Shares Outstanding, beginning of year | shares | 195,220 |
Shares Granted | shares | |
Shares Exercised | shares | (9,500) |
Shares Forfeited | shares | (25,646) |
Shares Expired | shares | (20,000) |
Shares Outstanding, end of year | shares | 140,074 |
Shares Exercisable, end of year | shares | 140,074 |
Weighted - Average Exercise Price, Outstanding, beginning of year | $ / shares | $ 8.60 |
Weighted - Average Exercise Price, Granted | $ / shares | |
Weighted - Average Exercise Price, Exercised | $ / shares | $ 6.98 |
Weighted - Average Exercise Price, Forfeited | $ / shares | 6.98 |
Weighted - Average Exercise Price, Expired | $ / shares | 12.33 |
Weighted - Average Exercise Price, Outstanding, end of year | $ / shares | 8.12 |
Weighted - Average Exercise Price, Exercisable, end of year | $ / shares | $ 8.12 |
Weighted - Average Remaining Contractual Term, Outstanding, end of year | 3 years 4 months 10 days |
Weighted - Average Remaining Contractual Term, Exercisable, end of year | 3 years 4 months 10 days |
Aggregate Intrinsic Value, Outstanding, end of year | $ | $ 436,089 |
Aggregate Intrinsic Value, Exercisable, end of year | $ | $ 436,089 |
Share Based Compensation Plan83
Share Based Compensation Plan (Details 1) - Restricted Stock [Member] | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested, beginning of year | shares | 22,652 |
Nonvested Shares, Granted | shares | 12,192 |
Nonvested Shares, Vested | shares | (6,441) |
Nonvested Shares, Forfeited | shares | (1,075) |
Nonvested Shares, end of year | shares | 27,328 |
Nonvested Weighted-Average Grant-Date Fair Value per share, Outstanding, beginning of year | $ / shares | $ 8.15 |
Nonvested Weighted-Average Grant-Date Fair Value per share, Granted | $ / shares | 9.55 |
Nonvested Weighted-Average Grant-Date Fair Value per share, Vested | $ / shares | 8.07 |
Nonvested Weighted-Average Grant-Date Fair Value per share, Forfeited | $ / shares | 8.11 |
Nonvested Weighted-Average Grant-Date Fair Value per share, Outstanding, end of year | $ / shares | $ 8.77 |
Share Based Compensation Plan84
Share Based Compensation Plan (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share Based Compensation Plan (Textual) | ||
Option awards vesting period | 3 years | |
Options granted | ||
2008 Stock Incentive Plan [Member] | ||
Share Based Compensation Plan (Textual) | ||
Maximum common shares granted for incentive stock options, nonqualified stock options, stock appreciation rights ("SARs"), and restricted stock | 250,000 | |
Compensation cost charged against income | $ 0 | $ 40 |
Total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under plan | $ 0 | |
Option awards vesting period | 5 years | |
Option awards contractual terms | 10 years | |
Total income tax benefit recognized in income statement for share-based compensation arrangements | 0 | $ 10 |
Restricted Stock [Member] | ||
Share Based Compensation Plan (Textual) | ||
Compensation cost charged against income | 80 | $ 50 |
Total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under plan | 170 | |
Option awards vesting period | 4 years | |
Total income tax benefit recognized in income statement for share-based compensation arrangements | $ 30 | $ 20 |
weighted-average period term | 2 years 6 months |
Preferred Stock (Details)
Preferred Stock (Details) - USD ($) | Dec. 23, 2014 | Dec. 31, 2015 | Dec. 31, 2014 |
Preffered Stock (Textual) | |||
Proceeds from issuance of Series A preferred stock | $ 13,983,000 | ||
Percentage of noncumulative convertible preferred share | 6.50% | ||
Series A Preferred Stock [Member] | |||
Preffered Stock (Textual) | |||
Liquidation preference per share | $ 1,000 | ||
Share price | $ 10 | ||
Description of preffered capital offering | The Company completed its public offering of 1,500,000 depository shares, each representing a 1/100th ownership interest in a 6.50 percent Noncumulative Convertible Preferred Share, Series A | ||
Proceeds from issuance of Series A preferred stock | $ 13,983,000 | ||
Conversion price | $ 10.335 | ||
Preferred stock, Conversion basis | On or after the fifth anniversary of the issue date of the Series A Preferred Shares (December 23, 2019), the Company may require all holders of Series A Preferred Shares (and, therefore, depository shares) to convert their shares into common shares of the Company, provided the Company's common share price exceeds 120 percent of the conversion price noted above. | ||
Conversion of outstanding Series A Preferred Shares | 1,451,377 | ||
Percentage of noncumulative convertible preferred share | 6.50% | ||
Depository shares issued, Value | $ 15,000,000 | ||
Depository shares issued, Shares | 1,500,000 | ||
Conversion of Stock, Shares Converted | 1,000 |
Disclosures About Fair Value 86
Disclosures About Fair Value of Assets and Liabilities (Details) - Available-For-Sale Securities [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
U.S. Treasury and Government agencies [Member] | ||
Fair value measurements of securities measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | $ 10,905 | $ 15,307 |
Mortgage-backed securities [Member] | ||
Fair value measurements of securities measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | 61,343 | 50,740 |
State and political subdivisions [Member] | ||
Fair value measurements of securities measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | 17,518 | 19,170 |
Equity securities [Member] | ||
Fair value measurements of securities measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | 23 | 23 |
Interest Rate Contract Asset [Member] | ||
Fair value measurements of securities measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | 490 | 273 |
Interest Rate Contract Liabilities [Member] | ||
Fair value measurements of securities measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | $ (490) | $ (273) |
Level 1 [Member] | U.S. Treasury and Government agencies [Member] | ||
Fair value measurements of securities measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | ||
Level 1 [Member] | Mortgage-backed securities [Member] | ||
Fair value measurements of securities measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | ||
Level 1 [Member] | State and political subdivisions [Member] | ||
Fair value measurements of securities measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | ||
Level 2 [Member] | U.S. Treasury and Government agencies [Member] | ||
Fair value measurements of securities measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | $ 10,905 | $ 15,307 |
Level 2 [Member] | Mortgage-backed securities [Member] | ||
Fair value measurements of securities measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | 61,343 | 50,740 |
Level 2 [Member] | State and political subdivisions [Member] | ||
Fair value measurements of securities measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | 17,518 | 19,170 |
Level 2 [Member] | Equity securities [Member] | ||
Fair value measurements of securities measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | 23 | 23 |
Level 2 [Member] | Interest Rate Contract Asset [Member] | ||
Fair value measurements of securities measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | 490 | 273 |
Level 2 [Member] | Interest Rate Contract Liabilities [Member] | ||
Fair value measurements of securities measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | $ (490) | $ (273) |
Level 3 [Member] | U.S. Treasury and Government agencies [Member] | ||
Fair value measurements of securities measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | ||
Level 3 [Member] | Mortgage-backed securities [Member] | ||
Fair value measurements of securities measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | ||
Level 3 [Member] | State and political subdivisions [Member] | ||
Fair value measurements of securities measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring |
Disclosures About Fair Value 87
Disclosures About Fair Value of Assets and Liabilities (Details 1) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Impaired loans [Member] | Level 1 [Member] | ||
Fair value measurements of assets measured at fair value on a non-recurring basis | ||
Assets, Fair value, Nonrecurring | ||
Impaired loans [Member] | ||
Fair value measurements of assets measured at fair value on a non-recurring basis | ||
Assets, Fair value, Nonrecurring | $ 3,011 | $ 2,538 |
Impaired loans [Member] | Level 2 [Member] | ||
Fair value measurements of assets measured at fair value on a non-recurring basis | ||
Assets, Fair value, Nonrecurring | ||
Impaired loans [Member] | Level 3 [Member] | ||
Fair value measurements of assets measured at fair value on a non-recurring basis | ||
Assets, Fair value, Nonrecurring | $ 3,011 | $ 2,538 |
Mortgage Servicing Rights [Member] | Level 1 [Member] | ||
Fair value measurements of assets measured at fair value on a non-recurring basis | ||
Assets, Fair value, Nonrecurring | ||
Mortgage Servicing Rights [Member] | ||
Fair value measurements of assets measured at fair value on a non-recurring basis | ||
Assets, Fair value, Nonrecurring | $ 2,585 | $ 3,037 |
Mortgage Servicing Rights [Member] | Level 2 [Member] | ||
Fair value measurements of assets measured at fair value on a non-recurring basis | ||
Assets, Fair value, Nonrecurring | ||
Mortgage Servicing Rights [Member] | Level 3 [Member] | ||
Fair value measurements of assets measured at fair value on a non-recurring basis | ||
Assets, Fair value, Nonrecurring | $ 2,585 | $ 3,037 |
Disclosures About Fair Value 88
Disclosures About Fair Value of Assets and Liabilities (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Collateral-dependent impaired loans [Member] | ||
Quantitative information about unobservable inputs used in recurring and nonrecurring fair value measurements | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | $ 3,011 | $ 2,538 |
Fair Value Measurements, Valuation Techniques | Market comparable properties | Market comparable properties |
Collateral-dependent impaired loans [Member] | Comparability Adjustments Percent [Member] | ||
Quantitative information about unobservable inputs used in recurring and nonrecurring fair value measurements | ||
Fair Value Measurements Unobservable Input Description | Comparability adjustments (%) | Comparability adjustments (%) |
Fair Value Input Interest Rate | ||
Mortgage servicing rights [Member] | ||
Quantitative information about unobservable inputs used in recurring and nonrecurring fair value measurements | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | $ 2,585 | $ 3,037 |
Fair Value Measurements, Valuation Techniques | Discounted cash flow | Discounted cash flow |
Mortgage servicing rights [Member] | Discount Rate [Member] | ||
Quantitative information about unobservable inputs used in recurring and nonrecurring fair value measurements | ||
Fair Value Measurements Unobservable Input Description | Discount Rate | Discount Rate |
Fair Value Input Interest Rate | 9.75% | 9.50% |
Mortgage servicing rights [Member] | Constant Prepayment Rate [Member] | ||
Quantitative information about unobservable inputs used in recurring and nonrecurring fair value measurements | ||
Fair Value Measurements Unobservable Input Description | Constant prepayment rate | Constant prepayment rate |
Fair Value Input Interest Rate | 8.90% | 10.30% |
Mortgage servicing rights [Member] | T and I Earnings Credit [Member] | ||
Quantitative information about unobservable inputs used in recurring and nonrecurring fair value measurements | ||
Fair Value Measurements Unobservable Input Description | T&I earnings credit | T&I earnings credit |
Fair Value Input Interest Rate | 1.54% | 1.75% |
Mortgage servicing rights [Member] | P and I Earnings Credit [Member] | ||
Quantitative information about unobservable inputs used in recurring and nonrecurring fair value measurements | ||
Fair Value Measurements Unobservable Input Description | P&I earnings credit | P&I earnings credit |
Fair Value Input Interest Rate | 0.42% | 0.17% |
Mortgage servicing rights [Member] | Inflation For Cost Of Servicing [Member] | ||
Quantitative information about unobservable inputs used in recurring and nonrecurring fair value measurements | ||
Fair Value Measurements Unobservable Input Description | Inflation for cost of servicing | Inflation for cost of servicing |
Fair Value Input Interest Rate | 1.50% | 1.50% |
Disclosures About Fair Value 89
Disclosures About Fair Value of Assets and Liabilities (Details 3) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Financial assets | |||
Cash and due from banks | $ 20,459 | $ 28,197 | |
Loam held for sale | 7,516 | 5,168 | |
Loans, net of allowance for loan losses | 550,669 | 509,565 | |
Federal Reserve and FHLB Bank stock, at cost | 3,748 | 3,748 | |
Interest receivable | 1,260 | 1,346 | |
Mortgage Servicing Rights | 7,152 | 5,704 | $ 5,180 |
Financial liabilities | |||
Deposits | 586,453 | 550,906 | |
Repurchase agreements | 12,406 | 12,740 | |
FHLB advances | 35,000 | 30,000 | |
Trust preferred securities | 10,310 | 10,310 | |
Interest payable | 264 | 264 | |
Level 1 [Member] | |||
Financial assets | |||
Cash and due from banks | $ 20,459 | $ 28,197 | |
Loam held for sale | |||
Loans, net of allowance for loan losses | |||
Federal Reserve and FHLB Bank stock, at cost | |||
Interest receivable | |||
Mortgage Servicing Rights | |||
Financial liabilities | |||
Deposits | $ 113,113 | $ 97,853 | |
Repurchase agreements | |||
FHLB advances | |||
Trust preferred securities | |||
Interest payable | |||
Level 2 [Member] | |||
Financial assets | |||
Cash and due from banks | |||
Loam held for sale | $ 7,779 | $ 5,315 | |
Loans, net of allowance for loan losses | |||
Federal Reserve and FHLB Bank stock, at cost | $ 3,748 | $ 3,748 | |
Interest receivable | $ 1,260 | $ 1,346 | |
Mortgage Servicing Rights | |||
Financial liabilities | |||
Deposits | $ 475,468 | $ 455,383 | |
Repurchase agreements | 12,406 | 12,740 | |
FHLB advances | 34,870 | 29,907 | |
Trust preferred securities | 7,165 | 7,206 | |
Interest payable | $ 264 | $ 264 | |
Level 3 [Member] | |||
Financial assets | |||
Cash and due from banks | |||
Loam held for sale | |||
Loans, net of allowance for loan losses | $ 548,154 | $ 510,314 | |
Federal Reserve and FHLB Bank stock, at cost | |||
Interest receivable | |||
Mortgage Servicing Rights | $ 7,760 | $ 6,358 | |
Financial liabilities | |||
Deposits | |||
Repurchase agreements | |||
FHLB advances | |||
Trust preferred securities | |||
Interest payable |
Disclosures About Fair Value 90
Disclosures About Fair Value of Assets and Liabilities (Details Textual) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosures About Fair Value Of Assets And Liabilities (Textual) | |
Interest rate on mortgage service description | The mortgage servicing rights have increased in value. The servicing rights have had a decline in prepayments and the .25 percent decrease in the discount rate reflects the change in market rates. |
Condensed Financial Informati91
Condensed Financial Information (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets | |||
Cash and cash equivalents | $ 20,459 | $ 28,197 | $ 13,137 |
Other assets | 3,310 | 1,587 | |
Total assets | 733,071 | 684,228 | |
Liabilities | |||
Total liabilities | 651,830 | 608,545 | |
Stockholders' Equity | 81,241 | 75,683 | $ 56,269 |
Total liabilities and stockholders' equity | 733,071 | 684,228 | |
Parent [Member] | |||
Assets | |||
Cash and cash equivalents | 9,157 | 12,446 | |
Investment in banking subsidiaries | 82,251 | 75,194 | |
Investment in nonbanking subsidiaries | 1,438 | 1,401 | |
Other assets | 318 | 152 | |
Total assets | 93,164 | 89,193 | |
Liabilities | |||
Trust preferred securities | 10,000 | 10,000 | |
Borrowings from nonbanking subsidiaries | 310 | 310 | |
Other liabilities & accrued interest payable | 1,613 | 3,200 | |
Total liabilities | 11,923 | 13,510 | |
Stockholders' Equity | 81,241 | 75,683 | |
Total liabilities and stockholders' equity | $ 93,164 | $ 89,193 |
Condensed Financial Informati92
Condensed Financial Information (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Expenses | ||
Interest expense | $ 2,584 | $ 3,480 |
Income tax benefit | 3,404 | 2,085 |
Equity in undistributed income of subs. | ||
Net Income | 7,619 | $ 5,263 |
Preferred stock dividends | 956 | |
Net income available to common shareholders | 6,663 | $ 5,263 |
Comprehensive income | 7,351 | 6,107 |
Parent [Member] | ||
Dividends from subsidiaries: | ||
Banking subsidiaries | $ 1,000 | 5,000 |
Nonbanking subsidiaries | 39 | |
Total income | $ 1,000 | 5,039 |
Expenses | ||
Interest expense | 212 | 1,138 |
Other expense | 922 | 1,201 |
Total expenses | 1,134 | 2,339 |
Income before income tax | (134) | 2,700 |
Income tax benefit | (385) | (803) |
Income before equity in undistributed income of subsidiaries | 251 | 3,503 |
Equity in undistributed income of subs. | ||
Banking subsidiaries | 7,369 | 1,952 |
Nonbanking subsidiaries | (1) | (192) |
Total | 7,368 | 1,760 |
Net Income | 7,619 | $ 5,263 |
Preferred stock dividends | 956 | |
Net income available to common shareholders | 6,663 | $ 5,263 |
Comprehensive income | $ 7,351 | $ 6,107 |
Condensed Financial Informati93
Condensed Financial Information (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Activities | ||
Net Income | $ 7,619 | $ 5,263 |
Items not requiring (providing) cash | ||
Other assets | 11,058 | 4,557 |
Net cash (used in) provided by operating activities | 8,615 | 5,007 |
Investing Activities | ||
Net cash used in investing activities | (54,692) | (36,648) |
Financing Activities | ||
Dividends on common stock | (983) | $ (783) |
Dividends on preferred stock | $ (956) | |
Repayment of trust preferred securities | $ (10,643) | |
Preferred stock raise | 13,983 | |
Repayment of Notes Payable | 589 | |
Net cash provided by (used in) financing activities | $ 38,339 | 46,701 |
Net Change in Cash and Cash Equivalents | (7,738) | 15,060 |
Cash and Cash Equivalents, Beginning of Year | 28,197 | 13,137 |
Cash and Cash Equivalents, End of Year | 20,459 | 28,197 |
Parent [Member] | ||
Operating Activities | ||
Net Income | 7,619 | 5,263 |
Items not requiring (providing) cash | ||
Equity in undistributed net income of subsidiaries | (7,368) | (1,960) |
Expense of stock option plan | 81 | 90 |
Other assets | $ (166) | 118 |
Prepayment penalty on Trust Preferred | 333 | |
Other liabilities | $ (1,581) | (362) |
Net cash (used in) provided by operating activities | $ (1,415) | 3,682 |
Investing Activities | ||
Investment in Subsidiary | (164) | |
Net cash used in investing activities | (164) | |
Financing Activities | ||
Dividends on common stock | $ (983) | $ (783) |
Dividends on preferred stock | (956) | |
Proceeds from stock compensation | 67 | $ 18 |
Repurchase of common stock | $ (2) | |
Repayment of trust preferred securities | $ (10,643) | |
Preferred stock raise | $ 13,983 | |
Repayment of Notes Payable | ||
Net cash provided by (used in) financing activities | $ (1,874) | $ 2,575 |
Net Change in Cash and Cash Equivalents | (3,289) | 6,093 |
Cash and Cash Equivalents, Beginning of Year | 12,446 | |
Cash and Cash Equivalents, End of Year | $ 9,157 | $ 12,446 |