Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 08, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | SB FINANCIAL GROUP, INC. | |
Entity Central Index Key | 767,405 | |
Trading Symbol | SBFG | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Entity Filer Category | Accelerated Filer | |
Entity Ex Transition Period | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 6,503,250 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash & due from banks | $ 45,515 | $ 26,616 |
Securities available for sale, at fair value | 84,114 | 82,790 |
Other securities - FRB and FHLB Stock | 4,123 | 3,748 |
Loans held for sale | 6,888 | 3,940 |
Loans, net of unearned income | 771,698 | 696,615 |
Allowance for loan losses | (8,489) | (7,930) |
Premises and equipment, net | 21,900 | 21,277 |
Cash surrender value of life insurance | 16,745 | 16,479 |
Goodwill & other intangibles | 16,404 | 16,411 |
Foreclosed assets held for sale, net | 105 | 26 |
Mortgage servicing rights | 11,129 | 9,907 |
Accrued interest receivable | 2,433 | 1,825 |
Other assets | 6,615 | 4,923 |
Total assets | 979,180 | 876,627 |
Deposits | ||
Non interest bearing demand | 134,747 | 135,592 |
Interest bearing demand | 130,897 | 131,079 |
Savings | 114,213 | 103,267 |
Money market | 170,190 | 141,844 |
Time deposits | 239,379 | 217,818 |
Total deposits | 789,426 | 729,600 |
Repurchase agreements | 15,539 | 15,082 |
Advances from Federal Home Loan Bank | 24,500 | 18,500 |
Trust preferred securities | 10,310 | 10,310 |
Accrued interest payable | 891 | 592 |
Other liabilities | 11,405 | 8,543 |
Total liabilities | 852,071 | 782,627 |
Commitments & Contingent Liabilities | ||
Stockholder's Equity | ||
Preferred stock, Series A | 13,979 | 13,983 |
Common stock | 40,485 | 12,569 |
Additional paid-in capital | 15,160 | 15,405 |
Retained earnings | 61,854 | 55,439 |
Accumulated other comprehensive loss | (1,654) | (141) |
Treasury stock, at cost | (2,715) | (3,255) |
Total stockholder's equity | 127,109 | 94,000 |
Total liabilities and stockholder's equity | $ 979,180 | $ 876,627 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Loans | ||||
Taxable | $ 9,499 | $ 7,653 | $ 26,607 | $ 21,696 |
Tax exempt | 42 | 21 | 99 | 62 |
Securities | ||||
Taxable | 610 | 532 | 1,795 | 1,562 |
Tax exempt | 107 | 132 | 339 | 398 |
Total interest income | 10,258 | 8,338 | 28,840 | 23,718 |
Interest expense | ||||
Deposits | 1,472 | 907 | 3,538 | 2,518 |
Repurchase agreements & other | 11 | 4 | 27 | 10 |
Federal Home Loan Bank advances | 140 | 86 | 329 | 235 |
Trust preferred securities | 106 | 78 | 293 | 223 |
Total interest expense | 1,729 | 1,075 | 4,187 | 2,986 |
Net interest income | 8,529 | 7,263 | 24,653 | 20,732 |
Provision for loan losses | 600 | 200 | ||
Net interest income after provision for loan losses | 8,529 | 7,263 | 24,053 | 20,532 |
Noninterest income | ||||
Wealth management fees | 705 | 688 | 2,155 | 2,059 |
Customer service fees | 672 | 674 | 1,991 | 1,981 |
Gain on sale of mortgage loans & OMSR's | 2,066 | 2,211 | 5,224 | 5,524 |
Mortgage loan servicing fees, net | 273 | 227 | 991 | 851 |
Gain on sale of non-mortgage loans | 125 | 294 | 935 | 1,093 |
Data service fees | 182 | 559 | ||
Net gain on sale of securities | 70 | 119 | 70 | 119 |
Gain/(loss) on sale/disposal of assets | 8 | 21 | 10 | |
Other income | 291 | 458 | 1,308 | 929 |
Total noninterest income | 4,202 | 4,861 | 12,695 | 13,125 |
Noninterest expense | ||||
Salaries and employee benefits | 5,372 | 4,844 | 15,513 | 13,897 |
Net occupancy expense | 588 | 566 | 1,797 | 1,678 |
Equipment expense | 667 | 688 | 2,133 | 2,012 |
Data processing fees | 489 | 429 | 1,345 | 1,195 |
Professional fees | 393 | 502 | 1,316 | 1,282 |
Marketing expense | 197 | 180 | 622 | 581 |
Telephone and communications | 124 | 120 | 374 | 349 |
Postage and delivery expense | 83 | 103 | 221 | 336 |
State, local and other taxes | 177 | 198 | 538 | 535 |
Employee expense | 243 | 242 | 629 | 570 |
Other expenses | 456 | 412 | 1,507 | 1,037 |
Total noninterest expense | 8,789 | 8,284 | 25,995 | 23,472 |
Income before income tax expense | 3,942 | 3,840 | 10,753 | 10,185 |
Income tax expense | 824 | 1,117 | 2,074 | 3,152 |
Net income | 3,118 | 2,723 | 8,679 | 7,033 |
Preferred Stock Dividends | 244 | 244 | 732 | 731 |
Net income available to common shareholders | $ 2,874 | $ 2,479 | $ 7,947 | $ 6,302 |
Common share data: | ||||
Basic earnings per common share | $ 0.45 | $ 0.52 | $ 1.3 | $ 1.31 |
Diluted earnings per common share | $ 0.39 | $ 0.43 | $ 1.14 | $ 1.11 |
Average common shares outstanding (in thousands): | ||||
Basic: | 6,503 | 4,797 | 6,106 | 4,825 |
Diluted: | 8,022 | 6,326 | 7,626 | 6,356 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statements of Comprehensive Income [Abstract] | ||||
Net income | $ 3,118 | $ 2,723 | $ 8,679 | $ 7,033 |
Available for sale investment securities: | ||||
Unrealized holding gain (loss) arising in the period | (524) | 112 | (1,914) | 550 |
Related tax (expense) benefit | 110 | (38) | 401 | (187) |
Less: Reclassification for gain realized in income | (70) | (119) | (70) | (119) |
Related tax expense | 15 | 40 | 15 | 40 |
Net effect on other comprehensive income | (469) | (5) | (1,568) | 284 |
Total comprehensive income | $ 2,649 | $ 2,718 | $ 7,111 | $ 7,317 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Treasury Stock |
Balance at Dec. 31, 2016 | $ 86,548 | $ 13,983 | $ 12,569 | $ 15,362 | $ 46,688 | $ 51 | $ (2,105) |
Net income | 7,033 | 7,033 | |||||
Other comprehensive income (loss) | 284 | 284 | |||||
Dividends on common stock | (998) | (998) | |||||
Dividends on preferred, $0.4875 per share | (732) | (732) | |||||
Restricted stock vesting | (163) | 163 | |||||
Stock options exercised | 339 | (77) | 416 | ||||
Stock buyback | (1,778) | (1,778) | |||||
Stock based compensation expense | 213 | 213 | |||||
Balance at Sep. 30, 2017 | 90,909 | 13,983 | 12,569 | 15,335 | 51,991 | 335 | (3,304) |
Balance at Dec. 31, 2017 | 94,000 | 13,983 | 12,569 | 15,405 | 55,439 | (141) | (3,255) |
Net income | 8,679 | 8,679 | |||||
Common stock issuance (1,666,666 shares) | 27,912 | 27,912 | |||||
Conversion of preferred to common | (4) | 4 | |||||
Other comprehensive income (loss) | (1,513) | (1,513) | |||||
Dividends on common stock | (1,532) | (1,532) | |||||
Dividends on preferred, $0.4875 per share | (732) | (732) | |||||
Restricted stock vesting | (257) | 257 | |||||
Stock options exercised | 192 | (200) | 392 | ||||
Repurchased stock | (109) | (109) | |||||
Stock based compensation expense | 212 | 212 | |||||
Balance at Sep. 30, 2018 | $ 127,109 | $ 13,979 | $ 40,485 | $ 15,160 | $ 61,854 | $ (1,654) | $ (2,715) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares shares in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Common stock issuance, shares | 1,666,666 | |
Dividend common stock, per share amount | $ 0.235 | $ 0.205 |
Dividend preferred stock, per share amount | $ 0.4875 | $ 0.4875 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Operating Activities | ||
Net Income | $ 8,679 | $ 7,033 |
Items providing/(using) cash | ||
Depreciation and amortization | 1,261 | 1,152 |
Provision for loan losses | 600 | 200 |
Expense of share-based compensation plan | 212 | 213 |
Amortization of premiums and discounts on securities | 275 | 437 |
Amortization of intangible assets | 7 | 8 |
Amortization of originated mortgage servicing rights | 931 | 863 |
Impairment (recovery) of mortgage servicing rights | (8) | 40 |
Proceeds from sale of loans held for sale | 200,306 | 203,999 |
Originations of loans held for sale | (200,364) | (202,652) |
Gain from sale of loans | (6,159) | (6,617) |
(Gain)/loss on sale of assets | (21) | 47 |
Changes in | ||
Interest receivable | (608) | 368 |
Other assets | (1,367) | (2,726) |
Interest payable and other liabilities | 3,161 | 1,551 |
Net cash provided by operating activities | 6,905 | 3,916 |
Investing Activities | ||
Purchases of available-for-sale securities | (16,248) | (25,785) |
Proceeds from maturities of available-for-sale securities | 10,619 | 16,234 |
Proceeds from sales of availabe-for-sale-securities | 2,115 | 14,369 |
Purchase of FRB stock | (375) | |
Proceeds from bank owned life insurance | 386 | |
Net change in loans | (75,034) | (30,901) |
Purchase of premises and equipment and software | (1,383) | (3,294) |
Proceeds from sale of equipment | 134 | |
Proceeds from sale of foreclosed assets | 152 | 945 |
Net cash used in investing activities | (80,020) | (28,046) |
Financing Activities | ||
Net increase in demand deposits, money market, interest checking and savings accounts | 38,265 | 19,561 |
Net increase in certificates of deposit | 21,561 | 24,173 |
Net increase in securities sold under agreements to repurchase | 457 | 811 |
Proceeds from Federal Home Loan Bank advances | 13,000 | 5,000 |
Repayment of Federal Home Loan Bank advances | (7,000) | (11,000) |
Share repurchase | (109) | (1,778) |
Exercise of Stock Options | 192 | 339 |
Issuance of Common Stock | 27,912 | |
Dividends on Common Stock | (1,532) | (998) |
Dividends on Preferred Stock | (732) | (732) |
Net cash provided by financing activities | 92,014 | 35,376 |
Increase in Cash and Cash Equivalents | 18,899 | 11,246 |
Cash and Cash Equivalents, Beginning of Year | 26,616 | 17,012 |
Cash and Cash Equivalents, End of Period | 45,515 | 28,258 |
Supplemental Cash Flows Information | ||
Interest paid | 3,888 | 2,783 |
Income taxes paid | 2,290 | 2,863 |
Transfer of loans to foreclosed assets | $ 175 | $ 94 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2018 | |
Basis of Presentation [Abstract] | |
BASIS OF PRESENTATION | NOTE 1 – BASIS OF PRESENTATION SB Financial Group, Inc., an Ohio corporation (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”). In addition, State Bank owns all of the outstanding stock of Rurban Mortgage Company (“RMC”) and State Bank Insurance, LLC (“SBI”). 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. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions for Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The financial statements reflect all adjustments that are, in the opinion of management, necessary to fairly present the financial position, results of operations and cash flows of the Company. Those adjustments consist only of normal recurring adjustments. Results of operations for the nine months ended September 30, 2018, are not necessarily indicative of results for the complete year. The condensed consolidated balance sheet of the Company as of December 31, 2017 has been derived from the audited consolidated balance sheet of the Company as of that date. For further information, refer to the consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. The following paragraphs summarize the impact of new accounting pronouncements: Accounting Standards Update (ASU) No. 2018-07: Compensation – Stock Compensation (Topic 718) This ASU expands scope of Topic 718, to include share-based payments issued to nonemployees for goods or services. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially aligned. This ASU supersedes Subtopic 505-50, Equity-Based Payments to Non-Employees. The amendments in this ASU are effective for periods beginning after December 15, 2018. At this time, the Company does not recognize the existence of any nonemployee relationships involving share-based payments. ASU No. 2018-02: Income Statement – Reporting Comprehensive Income (Topic 220) This ASU provides for the reclassification of stranded tax effects in accumulated other comprehensive income (AOCI) an option rather than a requirement; however, disclosure is required if not elected. The reclassification from accumulated other comprehensive income to retained earnings results from the newly elected federal corporate income tax rate resulting from the Tax Cuts and Jobs Acts enacted in December 2017. The Company has adopted this ASU on December 31, 2017 and reclassified approximately $23 thousand into retained earnings. ASU No. 2017-04: Intangibles – Goodwill and Other (Topic 350) This ASU simplifies the test for goodwill impairment. Specifically, these amendments eliminate Step 2 from the goodwill impairment test, and also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. The amendments in this ASU are effective for annual goodwill impairment tests in fiscal years beginning after December 15, 2019, and management does not believe the changes will have a material effect on the Company’s accounting and disclosures. ASU No. 2016-15: Statement of Cash Flows (Topic 230) This ASU provides specific guidance for eight cash flow classifications. The intention is to ensure that this ASU will eliminate any current or future diversity in classification and reporting. The amendments in this ASU were effective for the Company for reporting periods beginning after December 15, 2017 and did not have a significant impact on the consolidated financial statements. ASU No. 2016-13: Financial Instruments – Credit Losses (Topic 326) This ASU replaces the current GAAP incurred impairment methodology regarding credit losses with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments in this update affect an entity to varying degrees depending on the credit quality of the assets held by the entity, their duration, and how the entity applies current GAAP. 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. The Company implemented a process to track required data by utilizing accounting software in preparation for compliance. The adoption of ASU 2016-13 is likely to result in an increase in the allowance for loan losses as a result of changing from an “incurred loss” model, which encompasses allowances for current known and inherent losses within the portfolio, to an “expected loss” model, which encompasses allowances for losses expected to be incurred over the life of the portfolio. Furthermore, ASU 2016-13 will necessitate that we establish an allowance for expected credit losses on debt securities. While we are currently unable to reasonably estimate the impact of adopting ASU 2016-13, we expect that the impact of adoption will be significantly influenced by the composition, characteristics and quality of our loan and securities portfolios as well as the prevailing economic conditions and forecasts as of the adoption date. We anticipate being fully prepared for implementation by December 15, 2019. ASU No. 2016-02: Leases (Topic 842) This ASU is intended to increase transparency and comparability 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, 2018. The Company has little leasing activity and management has determined that the impact on the Company’s consolidated financial statements will be immaterial. ASU No. 2016-01: Recognition and Measurement of Financial Assets and Liabilities (Topic 825) This ASU has a number of provisions including the requirements that public business entities use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, a separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e. securities or loans receivables), and eliminating the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. The amendment was effective for the Company in the first quarter of 2018 and did not have a significant impact on the consolidated financial statements or on fair value and other required disclosures. ASU No. 2014-09: Revenue from Contracts with Customers (Topic 606) This ASU implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of the amendment is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. ASU 2014-09 establishes a five-step model, which entities must follow to recognize revenue and removes inconsistencies and weaknesses in existing guidance. The majority of our revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as our loans, letters of credit, derivatives and investment securities, as well as revenue related to our mortgage servicing activities, as these activities are subject to other GAAP discussed elsewhere within our disclosures. ASU 2014-09 became effective on January 1, 2018 and had no material effect on how we recognize revenue or to our consolidated financial statements and disclosures. Interest Income – Noninterest Income – |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 2 – EARNINGS PER SHARE Earnings per share (EPS) have been computed based on the weighted average number of common shares outstanding during the periods presented. There were no anti-dilutive shares in 2018 or 2017. Included in the diluted EPS for September 30, 2018 is the impact of the full conversion of the Company’s depository shares. Based upon the current conversion price of $10.2059, the 1,499,500 outstanding depository shares are convertible into an aggregate of 1,469,247 common shares. The average number of common shares used in the computation of basic and diluted earnings per share were: Three Months Ended ($ and outstanding shares in thousands - except per share data) 2018 2017 Distributed earnings allocated to common shares $ 524 $ 340 Undistributed earnings allocated to common shares 2,346 2,136 Net earnings allocated to common shares 2,870 2,476 Net earnings allocated to participating securities 4 3 Dividends on convertible preferred shares 244 244 Net Income allocated to common shares and participating securities $ 3,118 $ 2,723 Weighted average shares outstanding for basic earnings per share 6,503 4,797 Dilutive effect of stock compensation 58 70 Dilutive effect of convertible shares 1,461 1,459 Weighted average shares outstanding for diluted earnings per share 8,022 6,326 Basic earnings per common share $ 0.45 $ 0.52 Diluted earnings per common share $ 0.39 $ 0.43 Nine Months Ended September 30, ($ and outstanding shares in thousands - except per share data) 2018 2017 Distributed earnings allocated to common shares $ 1,532 $ 999 Undistributed earnings allocated to common shares 6,404 5,294 Net earnings allocated to common shares 7,936 6,293 Net earnings allocated to participating securities 11 9 Dividends on convertible preferred shares 732 731 Net Income allocated to common shares and participating securities $ 8,679 $ 7,033 Weighted average shares outstanding for basic earnings per share 6,106 4,825 Dilutive effect of stock compensation 63 73 Dilutive effect of convertible shares 1,457 1,458 Weighted average shares outstanding for diluted earnings per share 7,626 6,356 Basic earnings per common share $ 1.30 $ 1.31 Diluted earnings per common share $ 1.14 $ 1.11 |
Securities
Securities | 9 Months Ended |
Sep. 30, 2018 | |
Securities [Abstract] | |
SECURITIES | NOTE 3 – SECURITIES The amortized cost and appropriate fair values, together with gross unrealized gains and losses, of securities at September 30, 2018 and December 31, 2017 were as follows: Gross Gross Amortized Unrealized Unrealized ($ in thousands) Cost Gains Losses Fair Value Available for Sale Securities: September 30, 2018 U.S. Treasury and Government agencies $ 11,897 $ 5 $ (326 ) $ 11,576 Mortgage-backed securities 63,312 34 (1,876 ) 61,470 State and political subdivisions 10,998 127 (57 ) 11,068 $ 86,207 $ 166 $ (2,259 ) $ 84,114 Gross Gross Amortized Unrealized Unrealized ($ in thousands) Cost Gains Losses Fair Value Available for Sale Securities: December 31, 2017: U.S. Treasury and Government agencies $ 12,715 $ 62 $ (69 ) $ 12,708 Mortgage-backed securities 57,355 97 (690 ) 56,762 State and political subdivisions 12,829 439 (18 ) 13,250 Equity securities 70 - - 70 $ 82,969 $ 598 $ (777 ) $ 82,790 The amortized cost and fair value of securities available for sale at September 30, 2018, by contractual maturity, are shown below. Expected maturities will 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 $ 2,118 $ 2,135 Due after one year through five years 7,516 7,444 Due after five years through ten years 9,692 9,486 Due after ten years 3,569 3,579 22,895 22,644 Mortgage-backed securities 63,312 61,470 Totals $ 86,207 $ 84,114 The fair value of securities pledged as collateral, to secure public deposits and for other purposes, was $44.0 million at September 30, 2018 and $38.9 million at December 31, 2017. The fair value of securities delivered for repurchase agreements was $18.7 million at September 30, 2018 and $19.1 million at December 31, 2017. For the nine months ended September 30, 2018, there were gross gains of $0.07 million resulting from sales of available-for-sale securities, which was a reclassification from accumulated other comprehensive income (OCI) and was included in the net gain on sale of securities. The related $0.02 million in tax expense was a reclassification from OCI and was included in the income tax expense line item in the income statement. For the nine months ended September 30, 2017, there were gross gains of $0.12 million resulting from sales of available-for-sale securities, which was a reclassification from accumulated other comprehensive income (OCI) and was included in the net gain on sale of securities. The related $0.04 million in tax expense was a reclassification from OCI and was included in the income tax expense line item 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 was $74.4 million at September 30, 2018, and $59.3 million at December 31, 2017, which was approximately 88 and 72 percent, respectively, of the Company’s available-for-sale investment portfolio at such dates. Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these securities are temporary. Should the impairment of any of these securities become other than temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified. Securities with unrealized losses, aggregated by investment class and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2018 and December 31, 2017 are as follows: Less than 12 Months 12 Months or Longer Total ($ in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Securities: U.S. Treasury and Government agencies $ 7,409 $ (224 ) $ 3,660 $ (103 ) $ 11,069 $ (327 ) Mortgage-backed securities 31,685 (701 ) 28,312 (1,174 ) 59,997 (1,875 ) State and Political subdivisions 2,942 (32 ) 440 (25 ) 3,382 (57 ) $ 42,036 $ (957 ) $ 32,412 $ (1,302 ) $ 74,448 $ (2,259 ) Less than 12 Months 12 Months or Longer Total ($ in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Securities: U.S. Treasury and Government agencies $ 5,675 $ (27 ) $ 2,559 $ (42 ) $ 8,234 $ (69 ) Mortgage-backed securities 35,205 (319 ) 14,673 (371 ) 49,878 (690 ) State and political subdivisions 905 (4 ) 326 (14 ) 1,231 (18 ) $ 41,785 $ (350 ) $ 17,558 $ (427 ) $ 59,343 $ (777 ) The total potential unrealized loss as of September 30, 2018 in the securities portfolio was $2.3 million, compared to a $0.78 million unrealized loss at December 31, 2017. 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. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent of the Company to not sell the investment and whether it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost. Management has determined there is no other-than-temporary-impairment on these securities. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2018 | |
Loans and Allowance for Loan Losses [Abstract] | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | NOTE 4 – LOANS AND ALLOWANCE FOR LOAN LOSSES 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, all loan classes are placed on non-accrual status not later than 90 days past due, unless the loan is well-secured and in the process of collection. 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. 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. Categories of loans at September 30, 2018 and December 31, 2017 include: Total Loans Non-Accrual Loans ($ in thousands) September December September December Commercial & Industrial $ 119,242 $ 101,554 360 121 Commercial RE & Construction 356,563 332,154 228 1,322 Agricultural & Farmland 52,814 51,947 - - Residential Real Estate 178,033 150,854 1,541 1,123 Consumer & Other 64,478 59,619 252 138 Total Loans $ 771,130 $ 696,128 $ 2,381 $ 2,704 Net deferred costs $ 568 $ 487 Total Loans, net deferred costs $ 771,698 $ 696,615 Allowance for loan losses $ (8,489 ) $ (7,930 ) The following tables present the activity in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method as of September 30, 2018, December 31, 2017 and September 30, 2017. Commercial Commercial RE Agricultural Residential Consumer ($ in thousands) & Industrial & Construction & Farmland Real Estate & Other Total ALLOWANCE FOR LOAN AND LEASE LOSSES For the Three Months Ended - September 30, 2018 Beginning balance $ 1,061 $ 3,720 $ 488 $ 2,550 $ 675 $ 8,494 Charge Offs - - - - (11 ) $ (11 ) Recoveries - - - - 6 6 Provision 13 5 (9 ) (39 ) 30 - Ending Balance $ 1,074 $ 3,725 $ 479 $ 2,511 $ 700 $ 8,489 For the Nine Months Ended -September 30, 2018 Beginning balance $ 823 $ 3,779 $ 505 $ 2,129 $ 694 $ 7,930 Charge Offs - (36 ) - (26 ) (23 ) $ (85 ) Recoveries - 29 - 2 13 44 Provision 251 (47 ) (26 ) 406 16 600 Ending Balance $ 1,074 $ 3,725 $ 479 $ 2,511 $ 700 $ 8,489 Commercial Commercial RE Agricultural Residential Consumer ($ in thousands) & Industrial & Construction & Farmland Real Estate & Other Total Loans Receivable at September 30, 2018 Allowance: Ending balance: individually evaluated for impairment $ - $ - $ - $ 77 $ 4 $ 81 Ending balance: collectively evaluated for impairment $ 1,074 $ 3,725 $ 479 $ 2,434 $ 696 $ 8,408 Loans: Ending balance: individually evaluated for impairment $ 329 $ 287 $ - $ 1,889 $ 177 $ 2,682 Ending balance: collectively evaluated for impairment $ 118,913 $ 356,276 $ 52,814 $ 176,144 $ 64,301 $ 768,448 Commercial Commercial RE Agricultural Residential Consumer ($ in thousands) & Industrial & Construction & Farmland Real Estate & Other Total Loans Receivable at December 31, 2017 Allowance: Ending balance: individually evaluated for impairment $ - $ 146 $ - $ 178 $ 5 $ 329 Ending balance: collectively evaluated for impairment $ 823 $ 3,633 $ 505 $ 1,951 $ 689 $ 7,601 Loans: Ending balance: individually evaluated for impairment $ - $ 1,385 $ - $ 1,830 $ 197 $ 3,412 Ending balance: collectively evaluated for impairment $ 101,554 $ 330,769 $ 51,947 $ 149,024 $ 59,422 $ 692,716 Commercial Commercial RE Agricultural Residential Consumer ($ in thousands) & Industrial & Construction & Farmland Real Estate & Other Total ALLOWANCE FOR LOAN AND LEASE LOSSES For the Three Months Ended - September 30, 2017 Beginning balance $ 995 $ 3,452 $ 512 $ 1,988 $ 878 $ 7,825 Charge Offs - (26 ) - (20 ) (29 ) $ (75 ) Recoveries - - 1 2 7 10 Provision (138 ) 195 (17 ) 44 (84 ) - Ending Balance $ 857 $ 3,621 $ 496 $ 2,014 $ 772 $ 7,760 Commercial Commercial RE Agricultural Residential Consumer ($ in thousands) & Industrial & Construction & Farmland Real Estate & Other Total ALLOWANCE FOR LOAN AND LEASE LOSSES For the Nine Months Ended - September 30, 2017 Beginning balance $ 1,204 $ 3,321 $ 347 $ 1,963 $ 890 $ 7,725 Charge Offs (50 ) (26 ) - (42 ) (77 ) $ (195 ) Recoveries 6 2 3 6 13 30 Provision (303 ) 324 146 87 (54 ) 200 Ending Balance $ 857 $ 3,621 $ 496 $ 2,014 $ 772 $ 7,760 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 non-owner-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 credit risk profile of the Company’s loan portfolio based on rating category and payment activity as of September 30, 2018 and December 31, 2017. September 30, 2018 Commercial Commercial RE Agricultural Residential Consumer ($ in thousands) & Industrial & Construction & Farmland Real Estate & Other Total 1-2 $ - $ - $ - $ - $ - $ - 3 17,929 99,297 7,564 134,491 62,095 321,376 4 97,591 255,261 44,747 41,564 1,982 441,145 Total Pass (1 - 4) 115,520 354,558 52,311 176,055 64,077 762,521 Special Mention (5) 737 1,056 503 - 62 2,358 Substandard (6) 2,625 683 - 1,978 339 5,625 Doubtful (7) 360 266 - - - 626 Loss (8) - - - - - - Total Loans $ 119,242 $ 356,563 $ 52,814 $ 178,033 $ 64,478 $ 771,130 December 31, 2017 Commercial Commercial RE Agricultural Residential Consumer ($ in thousands) & Industrial & Construction & Farmland Real Estate & Other Total 1-2 $ 96 $ 13 $ - $ 832 $ 1 $ 942 3 19,883 93,222 8,080 114,130 57,204 292,519 4 80,448 236,217 43,735 34,271 2,151 396,822 Total Pass (1 - 4) 100,427 329,452 51,815 149,233 59,356 690,283 Special Mention (5) 512 1,100 132 - 66 1,810 Substandard (6) 7 580 - 1,583 197 2,367 Doubtful (7) 608 1,022 - 38 - 1,668 Loss (8) - - - - - - Total Loans $ 101,554 $ 332,154 $ 51,947 $ 150,854 $ 59,619 $ 696,128 The Company evaluates the loan risk grading system definitions and allowance for loan loss methodology on an ongoing basis. Credit Risk Profile The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis includes loans with an outstanding balance greater than $100 thousand and non-homogeneous loans, such as commercial and commercial real estate loans. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings: Pass (grades 1 – 4): Special Mention (5): Substandard (6): Doubtful (7): Loss (8): The following tables present the Company’s loan portfolio aging analysis as of September 30, 2018 and December 31, 2017. Loan Portfolio Aging Analysis As of September 30, 2018 and December 31, 2017 ($ in thousands) 30-59 Days 60-89 Days Greater Than Total Past Total Loans September 30, 2018 Past Due Past Due 90 Days Due Current Receivable Commercial & Industrial $ - $ 125 $ 329 $ 454 $ 118,788 $ 119,242 Commercial RE & Construction 75 - 7 82 356,481 356,563 Agricultural & Farmland - - - - 52,814 52,814 Residential Real Estate 215 310 471 996 177,037 178,033 Consumer & Other 146 46 141 333 64,145 64,478 Total Loans $ 436 $ 481 $ 948 $ 1,865 $ 769,265 $ 771,130 ($ in thousands) 30-59 Days 60-89 Days Greater Than Total Past Total Loans December 31, 2017 Past Due Past Due 90 Days Due Current Receivable Commercial & Industrial $ 85 $ - $ 88 $ 173 $ 101,381 $ 101,554 Commercial RE & Construction 110 - 1,086 1,196 330,958 332,154 Agricultural & Farmland - - - - 51,947 51,947 Residential Real Estate 484 379 433 1,296 149,558 150,854 Consumer & Other 182 21 103 306 59,313 59,619 Total Loans $ 861 $ 400 $ 1,710 $ 2,971 $ 693,157 $ 696,128 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 nonperforming 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 information as of and for the three and nine months ended September 30, 2018 and 2017, and for the twelve months ended December 31, 2017: Nine Months Ended September 30, 2018 Recorded Unpaid Principal Related Average Recorded Interest ($ in thousands) Investment Balance Allowance Investment Recognized With no related allowance recorded: Commercial & Industrial $ 329 $ 329 $ - $ 777 $ 19 Commercial RE & Construction 287 287 - 336 17 Agricultural & Farmland - - - - - Residential Real Estate 1,021 1,064 - 1,745 57 Consumer & Other 97 97 - 106 5 With a specific allowance recorded: Commercial & Industrial - - - - - Commercial RE & Construction - - - - - Agricultural & Farmland - - - - - Residential Real Estate 868 894 77 428 15 Consumer & Other 80 80 4 92 4 Totals: Commercial & Industrial 329 329 - 777 19 Commercial RE & Construction 287 287 - 336 17 Agricultural & Farmland - - - - - Residential Real Estate 1,889 1,958 77 2,173 72 Consumer & Other $ 177 $ 177 $ 4 $ 198 $ 9 Three Months Ended September 30, 2018 Average Recorded Interest ($ in thousands) Investment Recognized With no related allowance recorded: Commercial & Industrial $ 763 $ (9 ) Commercial RE & Construction 336 5 Agricultural & Farmland - - Residential Real Estate 1,733 16 Consumer & Other 102 2 With a specific allowance recorded: Commercial & Industrial - - Commercial RE & Construction - - Agricultural & Farmland - - Residential Real Estate 424 5 Consumer & Other 90 1 Totals: Commercial & Industrial 763 (9 ) Commercial RE & Construction 336 5 Agricultural & Farmland - - Residential Real Estate 2,157 21 Consumer & Other $ 192 $ 3 Twelve Months Ended December 31, 2017 Recorded Unpaid Principal Related Average Recorded Interest ($ in thousands) Investment Balance Allowance Investment Recognized With no related allowance recorded: Commercial & Industrial $ - $ - $ - $ - $ - Commercial RE & Construction 696 722 - 756 34 Agricultural & Farmland - - - - - Residential Real Estate 752 795 - 1,460 67 Consumer & Other 110 110 - 128 9 With a specific allowance recorded: Commercial & Industrial - - - - - Commercial RE & Construction 689 689 146 713 - Agricultural & Farmland - - - - - Residential Real Estate 1,078 1,097 178 628 25 Consumer & Other 87 87 5 91 5 Totals: Commercial & Industrial - - - - - Commercial RE & Construction 1,385 1,411 146 1,469 34 Agricultural & Farmland - - - - - Residential Real Estate 1,830 1,892 178 2,088 92 Consumer & Other $ 197 $ 197 $ 5 $ 219 $ 14 Nine Months Ended Three Months Ended September 30, 2017 Average Recorded Unpaid Principal Average Recorded Interest ($ in thousands) Investment Balance Investment Recognized With no related allowance recorded: Commercial & Industrial $ - $ - $ - $ - Commercial RE & Construction 757 29 754 7 Agricultural & Farmland - - - - Residential Real Estate 539 20 535 5 Consumer & Other 130 7 126 2 With a specific allowance recorded: Commercial & Industrial - - - - Commercial RE & Construction 721 (2 ) 689 - Agricultural & Farmland - - - - Residential Real Estate 631 20 625 7 Consumer & Other 95 4 92 1 Totals: Commercial & Industrial $ - $ - $ - $ - Commercial RE & Construction $ 1,478 $ 27 $ 1,443 $ 7 Agricultural & Farmland $ - $ - $ - $ - Residential Real Estate $ 1,170 $ 40 $ 1,160 $ 12 Consumer & Other $ 225 $ 11 $ 218 $ 3 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 by the Senior Lender. 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 loan. The Company also may grant interest rate concessions for a limited timeframe on a case by case basis. ● Amortization or maturity date change: A change in the amortization or maturity date beyond what the collateral supports, including a concession 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. During the three and nine months ended September 30, 2018 and 2017, the Company had no new TDR activity. The Company had one TDR, a consumer loan with a recorded balance of $8,000 that during the last 12-month period defaulted on its new contractual agreement. |
Mortgage Servicing Rights
Mortgage Servicing Rights | 9 Months Ended |
Sep. 30, 2018 | |
Mortgage Servicing Rights [Abstract] | |
MORTGAGE SERVICING RIGHTS | NOTE 5 – MORTGAGE SERVICING RIGHTS Mortgage loans serviced for others are not included in the accompanying balance sheets. The unpaid principal balance of mortgage loans serviced for others approximated $1.07 billion at September 30, 2018 and $0.99 billion at December 31, 2017. Contractually specified servicing fees of approximately, $1.9 million and $1.8 million were included in mortgage loan servicing fees in the income statement for the periods ending September 30, 2018 and 2017, respectively. The following table summarizes mortgage servicing rights capitalized and related amortization, along with activity in the related valuation allowance: ($ in thousands) 2018 2017 Carrying amount, January 1 $ 9,907 $ 8,422 Mortgage servicing rights capitalized during the year 2,288 2,042 Mortgage servicing rights amortization during the year (931 ) (864 ) Net change in valuation allowance 8 (40 ) Carrying amount, September 30 $ 11,272 $ 9,560 Valuation allowance: January 1 $ 151 $ 228 Increase/(reduction) (8 ) 40 September 30 $ 143 $ 268 |
Derivative Financial Instrument
Derivative Financial Instruments and Repurchase Agreements | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Financial Instruments and Repurchase Agreements [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS AND REPURCHASE AGREEMENTS | NOTE 6 – DERIVATIVE FINANCIAL INSTRUMENTS AND REPURCHASE AGREEMENTS Risk Management Objective of Using Derivatives 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. Non-designated Hedges 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 offset by 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 September 30, 2018 and December 31, 2017, the notional amount of customer-facing swaps was approximately $50.7 million and $39.3 million, respectively. The same amounts were offset with third party counterparties, as described above. The Company has minimum collateral posting thresholds with its derivative counterparties. As of September 30, 2018 and December 31, 2017, the Company had no posted cash as collateral with correspondents. At September 30, 2018, the Company held cash from counterparties as collateral in the amount of $1.3 million. The table below presents the fair value of the Company’s derivative financial instruments, as well as their classification on the balance sheet, as of September 30, 2018 and December 31, 2017. Asset Derivatives Liability Derivatives September 30, 2018 September 30, 2018 Balance Sheet Fair Balance Sheet Fair ($ in thousands) Location Value Location Value Derivatives not designated as hedging instruments: Interest rate contracts Other Assets $ 1,455 Other Liabilities $ 1,455 Asset Derivatives Liability Derivatives December 31, 2017 December 31, 2017 Balance Sheet Fair Balance Sheet Fair ($ in thousands) Location Value Location Value Derivatives not designated as hedging instruments: Interest rate contracts Other Assets $ 698 Other Liabilities $ 698 The Company’s derivative financial instruments had no net effect on the income statements for the three and nine months ended September 30, 2018 and 2017. Securities Sold Under Repurchase Agreements 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 agreements mature within one month. These repurchase agreements are secured by agency and mortgage-backed securities with a fair value of $18.7 million. These securities have various maturity dates beyond 2018. |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value of Assets and Liabilities [Abstract] | |
FAIR VALUE OF ASSETS AND LIABILITIES | NOTE 7 – FAIR VALUE OF ASSETS AND LIABILITIES Fair value is 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. A fair value measurement must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value: Level 1 Quoted prices in active markets for identical assets or liabilities Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a recurring basis, recognized in the accompanying balance sheets, as well as the general classifications of such assets pursuant to the valuation hierarchy. Available-for-Sale Securities The fair values 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. treasury and government agencies, mortgage-backed securities, obligations of political and state subdivisions and equity securities. 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 assets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2018 and December 31, 2017. Fair Value Measurements Using: ($ in thousands) Available for Sale Securities: September 30, (Level 1) (Level 2) (Level 3) U.S. Treasury and Government Agencies $ 11,576 $ - $ 11,576 $ - Mortgage-backed securities 61,470 - 61,470 - State and political subdivisions 11,068 - 11,068 - Interest rate contracts - assets 1,455 - 1,455 - Interest rate contracts - liabilities (1,455 ) - (1,455 ) - Fair Value Measurements Using: ($ in thousands) Available for Sale Securities: December 31, (Level 1) (Level 2) (Level 3) U.S. Treasury and Government Agencies $ 12,708 $ - $ 12,708 $ - Mortgage-backed securities 56,762 - 56,762 - State and political subdivisions 13,250 - 13,250 - Equity securities 70 - 70 - Interest rate contracts - assets 698 - 698 - Interest rate contracts - liabilities (698 ) - (698 ) - 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 an independent appraisal of the collateral, which is 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 September 30, 2018 and December 31, 2017. 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. ($ in thousands) Description Fair Values at (Level 1) (Level 2) (Level 3) Impaired loans $ 428 $ - $ - $ 428 Mortgage Servicing Rights 2,707 - - 2,707 ($ in thousands) Description Fair Values at (Level 1) (Level 2) (Level 3) Impaired loans $ 982 $ - $ - $ 982 Mortgage Servicing Rights 1,490 - - 1,490 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 table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements. Fair Values at Weighted ($ in thousands) September 30, Valuation Technique Unobservable Inputs Ave Collateral-dependent impaired loans $ 428 Market comparable properties Comparability adjustments (%) 20 % Mortgage servicing rights 2,707 Discounted cash flow Discount Rate 10.42 % Constant prepayment rate 6.59 % P&I earnings credit 2.23 % T&I earnings credit 2.94 % Inflation for cost of servicing 1.50 % Fair Value at ($ in thousands) December 31, Valuation Technique Unobservable Inputs Range Collateral-dependent impaired loans $ 982 Market comparable properties Comparability adjustments (%) Not available Mortgage servicing rights 1,490 Discounted cash flow Discount Rate 9.65 % Constant prepayment rate 7.51 % P&I earnings credit 1.56 % T&I earnings credit 2.13 % Inflation for cost of servicing 1.50 % There were no changes in the inputs or methodologies used to determine fair value at September 30, 2018 as compared to December 31, 2017. 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 Accrued Interest Receivable and Payable The carrying amount approximates the fair value. 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 is based on estimates of the rate State Bank would charge for similar loans at September 30, 2018 and December 31, 2017, 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, FHLB advances & Repurchase agreements 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 September 30, 2018 and December 31, 2017. 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 September 30, 2018 and December 31, 2017 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. The following table presents estimated fair values of the Company’s other financial instruments carried at other than fair value. The fair values of certain of these instruments were calculated by discounting expected cash flows, which involves significant judgments by management and uncertainties. Fair value is the estimated amount at which financial assets or liabilities could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Because no market exists for certain of these financial instruments, and because management does not intend to sell these financial instruments, the Company does not know whether the fair values shown below represent values at which the respective financial instruments could be sold individually or in the aggregate. September 30, 2018 Carrying Fair Value Measurements Using ($ in thousands) Amount (Level 1) (Level 2) (Level 3) Financial assets Cash and cash equivalents $ 45,515 $ 45,515 $ - $ - Loans held for sale 6,888 - 6,952 - Loans, net of allowance for loan losses 763,209 - - 750,037 Federal Reserve and FHLB Bank stock 4,123 - 4,123 - Accrued interest receivable 2,433 - 2,433 - Financial liabilities Deposits $ 789,426 $ 550,127 $ 237,191 $ - Repurchase agreements 15,539 - 15,539 - FHLB advances 24,500 - 24,220 - Trust preferred securities 10,310 - 10,511 - Accrued interest payable 891 - 891 - December 31, Carrying Fair Value Measurements Using ($ in thousands) Amount (Level 1) (Level 2) (Level 3) Financial assets Cash and due from banks $ 26,616 $ 26,616 $ - $ - Loans held for sale 3,940 - 4,041 - Loans, net of allowance for loan losses 688,685 - - 686,940 Federal Reserve and FHLB Bank stock, at cost 3,748 - 3,748 - Accrued interest receivable 1,825 - 1,825 - Financial liabilities Deposits $ 729,600 $ 511,782 $ 220,823 $ - Repurchase agreements 15,082 - 15,082 - FHLB advances 18,500 - 18,385 - Trust preferred securities 10,310 - 9,673 - Accrued interest payable 592 - 592 - |
Share Based Compensation
Share Based Compensation | 9 Months Ended |
Sep. 30, 2018 | |
Share Based Compensation [Abstract] | |
SHARE BASED COMPENSATION | NOTE 8 – SHARE BASED COMPENSATION In April 2017, the shareholders approved a new share-based incentive compensation plan, the SB Financial Group, Inc. 2017 Stock Incentive Plan (the “2017 Plan”), which replaced the Company’s 2008 Stock Incentive Plan. This plan permits the grant or award of incentive stock options, nonqualified stock options, stock appreciation rights (“SAR’s”), restricted stock, and restricted stock units (“RSU’s”) for up to 500,000 Common Shares of the Company. The 2008 Plan, which was approved by the shareholders in April 2008, 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 and 2017 Plans are 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 Plans permit 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 granted with an exercise price equal to the market price of the Company’s shares at the date of grant and those option awards 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 the first nine months of 2018. A summary of incentive option activity under the Company’s plans as of September 30, 2018 and changes during the period then ended, is presented below: ($ in thousands - except per share data) Shares Weighted Average Exercise Price Weighted Average Remaining Term Aggregate Intrinsic Value Outstanding, December 31, 2017 92,500 $ 6.97 Granted - - Exercised (28,500 ) 6.92 Forfeited - - Expired - - Outstanding, September 30, 2018 64,000 $ 6.99 1.36 $ 855 Exercisable, September 30, 2018 64,000 $ 6.99 1.36 $ 855 During 2018, the 28,500 option shares exercised had a total intrinsic value of $0.35 million and the cash received from these exercised options was $0.2 million. The tax benefit from these transactions was immaterial. As of September 30, 2018, there was no 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 2017, the Company met certain performance targets and restricted stock awards were approved and issued in February of 2018. The compensation cost charged against income for the Long Term Incentive (LTI) Plan was $0.2 million, with a total income tax benefit recognized in the income statement of $0.04 million. As of September 30, 2018, there was $0.59 million of total unrecognized compensation cost related to non-vested 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 2.7 years. A summary of restricted stock activity under the Company’s plans as of September 30, 2018 and changes during the period then ended, is presented below: Shares Weighted-Average Value per Share Nonvested, December 31, 2017 52,258 $ 14.91 Granted 16,268 17.66 Vested (21,632 ) 13.95 Forfeited - - Nonvested, September 30, 2018 46,894 $ 16.31 In April 2017, the Company’s shareholders approved a new equity-based incentive compensation plan, the 2017 Stock Incentive Plan (the “2017). The 2017 Plan permits the company to grant stock options, restricted stock and other equity-based awards and cash-based awards to employees and directors of the Company and its subsidiaries. A total of 500,000 common shares of the Company are available for grants of awards under the 2017 Plan. As of September 30, 2018, 16,268 shares had been granted under the 2017 Plan. |
Equity Capital
Equity Capital | 9 Months Ended |
Sep. 30, 2018 | |
Equity Capital [Abstract] | |
EQUITY CAPITAL | NOTE 9 – EQUITY CAPITAL On February 9, 2018, the Company closed a common share capital raise, pursuant to which the Company issued and sold an aggregate of 1,666,666 common shares in a public offering registered with the Securities and Exchange Commission at a price of $18.00 per share, resulting in gross proceeds of $30.0 million. After fees and transaction expenses, the Company realized net proceeds of $27.9 million. The Company intends to use the net proceeds from this offering for general corporate purposes, which may include (a) capital contributions to its bank subsidiary to increase regulatory capital and/or (b) investments at the holding company level. |
General Litigation
General Litigation | 9 Months Ended |
Sep. 30, 2018 | |
General Litigation [Abstract] | |
GENERAL LITIGATION | NOTE 10 – GENERAL LITIGATION The Company is subject to claims and lawsuits that arise primarily in the ordinary course of business. Additionally, the Company is subject to periodic examinations by various regulatory agencies. It is the opinion of management that the disposition or ultimate resolution of such claims, lawsuits and examinations will not have a material adverse effect on the consolidated financial position, results of operations and cash flow of the Company. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Summary of earnings per share | Three Months Ended ($ and outstanding shares in thousands - except per share data) 2018 2017 Distributed earnings allocated to common shares $ 524 $ 340 Undistributed earnings allocated to common shares 2,346 2,136 Net earnings allocated to common shares 2,870 2,476 Net earnings allocated to participating securities 4 3 Dividends on convertible preferred shares 244 244 Net Income allocated to common shares and participating securities $ 3,118 $ 2,723 Weighted average shares outstanding for basic earnings per share 6,503 4,797 Dilutive effect of stock compensation 58 70 Dilutive effect of convertible shares 1,461 1,459 Weighted average shares outstanding for diluted earnings per share 8,022 6,326 Basic earnings per common share $ 0.45 $ 0.52 Diluted earnings per common share $ 0.39 $ 0.43 Nine Months Ended September 30, ($ and outstanding shares in thousands - except per share data) 2018 2017 Distributed earnings allocated to common shares $ 1,532 $ 999 Undistributed earnings allocated to common shares 6,404 5,294 Net earnings allocated to common shares 7,936 6,293 Net earnings allocated to participating securities 11 9 Dividends on convertible preferred shares 732 731 Net Income allocated to common shares and participating securities $ 8,679 $ 7,033 Weighted average shares outstanding for basic earnings per share 6,106 4,825 Dilutive effect of stock compensation 63 73 Dilutive effect of convertible shares 1,457 1,458 Weighted average shares outstanding for diluted earnings per share 7,626 6,356 Basic earnings per common share $ 1.30 $ 1.31 Diluted earnings per common share $ 1.14 $ 1.11 |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Securities [Abstract] | |
Summary of amortized cost and appropriate fair values, together with gross unrealized gains and losses, of securities | Gross Gross Amortized Unrealized Unrealized ($ in thousands) Cost Gains Losses Fair Value Available for Sale Securities: September 30, 2018 U.S. Treasury and Government agencies $ 11,897 $ 5 $ (326 ) $ 11,576 Mortgage-backed securities 63,312 34 (1,876 ) 61,470 State and political subdivisions 10,998 127 (57 ) 11,068 $ 86,207 $ 166 $ (2,259 ) $ 84,114 Gross Gross Amortized Unrealized Unrealized ($ in thousands) Cost Gains Losses Fair Value Available for Sale Securities: December 31, 2017: U.S. Treasury and Government agencies $ 12,715 $ 62 $ (69 ) $ 12,708 Mortgage-backed securities 57,355 97 (690 ) 56,762 State and political subdivisions 12,829 439 (18 ) 13,250 Equity securities 70 - - 70 $ 82,969 $ 598 $ (777 ) $ 82,790 |
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 $ 2,118 $ 2,135 Due after one year through five years 7,516 7,444 Due after five years through ten years 9,692 9,486 Due after ten years 3,569 3,579 22,895 22,644 Mortgage-backed securities 63,312 61,470 Totals $ 86,207 $ 84,114 |
Summary of securities with unrealized losses | Less than 12 Months 12 Months or Longer Total ($ in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Securities: U.S. Treasury and Government agencies $ 7,409 $ (224 ) $ 3,660 $ (103 ) $ 11,069 $ (327 ) Mortgage-backed securities 31,685 (701 ) 28,312 (1,174 ) 59,997 (1,875 ) State and Political subdivisions 2,942 (32 ) 440 (25 ) 3,382 (57 ) $ 42,036 $ (957 ) $ 32,412 $ (1,302 ) $ 74,448 $ (2,259 ) Less than 12 Months 12 Months or Longer Total ($ in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Securities: U.S. Treasury and Government agencies $ 5,675 $ (27 ) $ 2,559 $ (42 ) $ 8,234 $ (69 ) Mortgage-backed securities 35,205 (319 ) 14,673 (371 ) 49,878 (690 ) State and political subdivisions 905 (4 ) 326 (14 ) 1,231 (18 ) $ 41,785 $ (350 ) $ 17,558 $ (427 ) $ 59,343 $ (777 ) |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Loans and Allowance for Loan Losses [Abstract] | |
Summary of categories of loans | Total Loans Non-Accrual Loans ($ in thousands) September December September December Commercial & Industrial $ 119,242 $ 101,554 360 121 Commercial RE & Construction 356,563 332,154 228 1,322 Agricultural & Farmland 52,814 51,947 - - Residential Real Estate 178,033 150,854 1,541 1,123 Consumer & Other 64,478 59,619 252 138 Total Loans $ 771,130 $ 696,128 $ 2,381 $ 2,704 Net deferred costs $ 568 $ 487 Total Loans, net deferred costs $ 771,698 $ 696,615 Allowance for loan losses $ (8,489 ) $ (7,930 ) |
Summary of allowance for loan and lease losses and recorded investment in loans based on portfolio segment and impairment method | Commercial Commercial RE Agricultural Residential Consumer ($ in thousands) & Industrial & Construction & Farmland Real Estate & Other Total ALLOWANCE FOR LOAN AND LEASE LOSSES For the Three Months Ended - September 30, 2018 Beginning balance $ 1,061 $ 3,720 $ 488 $ 2,550 $ 675 $ 8,494 Charge Offs - - - - (11 ) $ (11 ) Recoveries - - - - 6 6 Provision 13 5 (9 ) (39 ) 30 - Ending Balance $ 1,074 $ 3,725 $ 479 $ 2,511 $ 700 $ 8,489 For the Nine Months Ended -September 30, 2018 Beginning balance $ 823 $ 3,779 $ 505 $ 2,129 $ 694 $ 7,930 Charge Offs - (36 ) - (26 ) (23 ) $ (85 ) Recoveries - 29 - 2 13 44 Provision 251 (47 ) (26 ) 406 16 600 Ending Balance $ 1,074 $ 3,725 $ 479 $ 2,511 $ 700 $ 8,489 Commercial Commercial RE Agricultural Residential Consumer ($ in thousands) & Industrial & Construction & Farmland Real Estate & Other Total Loans Receivable at September 30, 2018 Allowance: Ending balance: individually evaluated for impairment $ - $ - $ - $ 77 $ 4 $ 81 Ending balance: collectively evaluated for impairment $ 1,074 $ 3,725 $ 479 $ 2,434 $ 696 $ 8,408 Loans: Ending balance: individually evaluated for impairment $ 329 $ 287 $ - $ 1,889 $ 177 $ 2,682 Ending balance: collectively evaluated for impairment $ 118,913 $ 356,276 $ 52,814 $ 176,144 $ 64,301 $ 768,448 Commercial Commercial RE Agricultural Residential Consumer ($ in thousands) & Industrial & Construction & Farmland Real Estate & Other Total Loans Receivable at December 31, 2017 Allowance: Ending balance: individually evaluated for impairment $ - $ 146 $ - $ 178 $ 5 $ 329 Ending balance: collectively evaluated for impairment $ 823 $ 3,633 $ 505 $ 1,951 $ 689 $ 7,601 Loans: Ending balance: individually evaluated for impairment $ - $ 1,385 $ - $ 1,830 $ 197 $ 3,412 Ending balance: collectively evaluated for impairment $ 101,554 $ 330,769 $ 51,947 $ 149,024 $ 59,422 $ 692,716 Commercial Commercial RE Agricultural Residential Consumer ($ in thousands) & Industrial & Construction & Farmland Real Estate & Other Total ALLOWANCE FOR LOAN AND LEASE LOSSES For the Three Months Ended - September 30, 2017 Beginning balance $ 995 $ 3,452 $ 512 $ 1,988 $ 878 $ 7,825 Charge Offs - (26 ) - (20 ) (29 ) $ (75 ) Recoveries - - 1 2 7 10 Provision (138 ) 195 (17 ) 44 (84 ) - Ending Balance $ 857 $ 3,621 $ 496 $ 2,014 $ 772 $ 7,760 Commercial Commercial RE Agricultural Residential Consumer ($ in thousands) & Industrial & Construction & Farmland Real Estate & Other Total ALLOWANCE FOR LOAN AND LEASE LOSSES For the Nine Months Ended - September 30, 2017 Beginning balance $ 1,204 $ 3,321 $ 347 $ 1,963 $ 890 $ 7,725 Charge Offs (50 ) (26 ) - (42 ) (77 ) $ (195 ) Recoveries 6 2 3 6 13 30 Provision (303 ) 324 146 87 (54 ) 200 Ending Balance $ 857 $ 3,621 $ 496 $ 2,014 $ 772 $ 7,760 |
Summary of credit risk profile of the Company's loan portfolio based on rating category | September 30, 2018 Commercial Commercial RE Agricultural Residential Consumer ($ in thousands) & Industrial & Construction & Farmland Real Estate & Other Total 1-2 $ - $ - $ - $ - $ - $ - 3 17,929 99,297 7,564 134,491 62,095 321,376 4 97,591 255,261 44,747 41,564 1,982 441,145 Total Pass (1 - 4) 115,520 354,558 52,311 176,055 64,077 762,521 Special Mention (5) 737 1,056 503 - 62 2,358 Substandard (6) 2,625 683 - 1,978 339 5,625 Doubtful (7) 360 266 - - - 626 Loss (8) - - - - - - Total Loans $ 119,242 $ 356,563 $ 52,814 $ 178,033 $ 64,478 $ 771,130 December 31, 2017 Commercial Commercial RE Agricultural Residential Consumer ($ in thousands) & Industrial & Construction & Farmland Real Estate & Other Total 1-2 $ 96 $ 13 $ - $ 832 $ 1 $ 942 3 19,883 93,222 8,080 114,130 57,204 292,519 4 80,448 236,217 43,735 34,271 2,151 396,822 Total Pass (1 - 4) 100,427 329,452 51,815 149,233 59,356 690,283 Special Mention (5) 512 1,100 132 - 66 1,810 Substandard (6) 7 580 - 1,583 197 2,367 Doubtful (7) 608 1,022 - 38 - 1,668 Loss (8) - - - - - - Total Loans $ 101,554 $ 332,154 $ 51,947 $ 150,854 $ 59,619 $ 696,128 |
Summary of loan portfolio aging analysis | ($ in thousands) 30-59 Days 60-89 Days Greater Than Total Past Total Loans September 30, 2018 Past Due Past Due 90 Days Due Current Receivable Commercial & Industrial $ - $ 125 $ 329 $ 454 $ 118,788 $ 119,242 Commercial RE & Construction 75 - 7 82 356,481 356,563 Agricultural & Farmland - - - - 52,814 52,814 Residential Real Estate 215 310 471 996 177,037 178,033 Consumer & Other 146 46 141 333 64,145 64,478 Total Loans $ 436 $ 481 $ 948 $ 1,865 $ 769,265 $ 771,130 ($ in thousands) 30-59 Days 60-89 Days Greater Than Total Past Total Loans December 31, 2017 Past Due Past Due 90 Days Due Current Receivable Commercial & Industrial $ 85 $ - $ 88 $ 173 $ 101,381 $ 101,554 Commercial RE & Construction 110 - 1,086 1,196 330,958 332,154 Agricultural & Farmland - - - - 51,947 51,947 Residential Real Estate 484 379 433 1,296 149,558 150,854 Consumer & Other 182 21 103 306 59,313 59,619 Total Loans $ 861 $ 400 $ 1,710 $ 2,971 $ 693,157 $ 696,128 |
Summary of impaired loan activity | Nine Months Ended September 30, 2018 Recorded Unpaid Principal Related Average Recorded Interest ($ in thousands) Investment Balance Allowance Investment Recognized With no related allowance recorded: Commercial & Industrial $ 329 $ 329 $ - $ 777 $ 19 Commercial RE & Construction 287 287 - 336 17 Agricultural & Farmland - - - - - Residential Real Estate 1,021 1,064 - 1,745 57 Consumer & Other 97 97 - 106 5 With a specific allowance recorded: Commercial & Industrial - - - - - Commercial RE & Construction - - - - - Agricultural & Farmland - - - - - Residential Real Estate 868 894 77 428 15 Consumer & Other 80 80 4 92 4 Totals: Commercial & Industrial 329 329 - 777 19 Commercial RE & Construction 287 287 - 336 17 Agricultural & Farmland - - - - - Residential Real Estate 1,889 1,958 77 2,173 72 Consumer & Other $ 177 $ 177 $ 4 $ 198 $ 9 Three Months Ended September 30, 2018 Average Recorded Interest ($ in thousands) Investment Recognized With no related allowance recorded: Commercial & Industrial $ 763 $ (9 ) Commercial RE & Construction 336 5 Agricultural & Farmland - - Residential Real Estate 1,733 16 Consumer & Other 102 2 With a specific allowance recorded: Commercial & Industrial - - Commercial RE & Construction - - Agricultural & Farmland - - Residential Real Estate 424 5 Consumer & Other 90 1 Totals: Commercial & Industrial 763 (9 ) Commercial RE & Construction 336 5 Agricultural & Farmland - - Residential Real Estate 2,157 21 Consumer & Other $ 192 $ 3 Twelve Months Ended December 31, 2017 Recorded Unpaid Principal Related Average Recorded Interest ($ in thousands) Investment Balance Allowance Investment Recognized With no related allowance recorded: Commercial & Industrial $ - $ - $ - $ - $ - Commercial RE & Construction 696 722 - 756 34 Agricultural & Farmland - - - - - Residential Real Estate 752 795 - 1,460 67 Consumer & Other 110 110 - 128 9 With a specific allowance recorded: Commercial & Industrial - - - - - Commercial RE & Construction 689 689 146 713 - Agricultural & Farmland - - - - - Residential Real Estate 1,078 1,097 178 628 25 Consumer & Other 87 87 5 91 5 Totals: Commercial & Industrial - - - - - Commercial RE & Construction 1,385 1,411 146 1,469 34 Agricultural & Farmland - - - - - Residential Real Estate 1,830 1,892 178 2,088 92 Consumer & Other $ 197 $ 197 $ 5 $ 219 $ 14 Nine Months Ended Three Months Ended September 30, 2017 Average Recorded Unpaid Principal Average Recorded Interest ($ in thousands) Investment Balance Investment Recognized With no related allowance recorded: Commercial & Industrial $ - $ - $ - $ - Commercial RE & Construction 757 29 754 7 Agricultural & Farmland - - - - Residential Real Estate 539 20 535 5 Consumer & Other 130 7 126 2 With a specific allowance recorded: Commercial & Industrial - - - - Commercial RE & Construction 721 (2 ) 689 - Agricultural & Farmland - - - - Residential Real Estate 631 20 625 7 Consumer & Other 95 4 92 1 Totals: Commercial & Industrial $ - $ - $ - $ - Commercial RE & Construction $ 1,478 $ 27 $ 1,443 $ 7 Agricultural & Farmland $ - $ - $ - $ - Residential Real Estate $ 1,170 $ 40 $ 1,160 $ 12 Consumer & Other $ 225 $ 11 $ 218 $ 3 |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Mortgage Servicing Rights [Abstract] | |
Summary of mortgage servicing rights capitalized and related amortization | ($ in thousands) 2018 2017 Carrying amount, January 1 $ 9,907 $ 8,422 Mortgage servicing rights capitalized during the year 2,288 2,042 Mortgage servicing rights amortization during the year (931 ) (864 ) Net change in valuation allowance 8 (40 ) Carrying amount, September 30 $ 11,272 $ 9,560 Valuation allowance: January 1 $ 151 $ 228 Increase/(reduction) (8 ) 40 September 30 $ 143 $ 268 |
Derivative Financial Instrume_2
Derivative Financial Instruments and Repurchase Agreements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Financial Instruments and Repurchase Agreements [Abstract] | |
Schedule of fair values of derivative instruments on the balance sheet | Asset Derivatives Liability Derivatives September 30, 2018 September 30, 2018 Balance Sheet Fair Balance Sheet Fair ($ in thousands) Location Value Location Value Derivatives not designated as hedging instruments: Interest rate contracts Other Assets $ 1,455 Other Liabilities $ 1,455 Asset Derivatives Liability Derivatives December 31, 2017 December 31, 2017 Balance Sheet Fair Balance Sheet Fair ($ in thousands) Location Value Location Value Derivatives not designated as hedging instruments: Interest rate contracts Other Assets $ 698 Other Liabilities $ 698 |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value of Assets and Liabilities [Abstract] | |
Summary of fair value measurements of assets measured at fair value on a recurring basis | ($ in thousands) Available for Sale Securities: September 30, (Level 1) (Level 2) (Level 3) U.S. Treasury and Government Agencies $ 11,576 $ - $ 11,576 $ - Mortgage-backed securities 61,470 - 61,470 - State and political subdivisions 11,068 - 11,068 - Interest rate contracts - assets 1,455 - 1,455 - Interest rate contracts - liabilities (1,455 ) - (1,455 ) - ($ in thousands) Available for Sale Securities: December 31, (Level 1) (Level 2) (Level 3) U.S. Treasury and Government Agencies $ 12,708 $ - $ 12,708 $ - Mortgage-backed securities 56,762 - 56,762 - State and political subdivisions 13,250 - 13,250 - Equity securities 70 - 70 - Interest rate contracts - assets 698 - 698 - Interest rate contracts - liabilities (698 ) - (698 ) - |
Summary of fair value measurements of assets measured at fair value on a nonrecurring basis | ($ in thousands) Description Fair Values at (Level 1) (Level 2) (Level 3) Impaired loans $ 428 $ - $ - $ 428 Mortgage Servicing Rights 2,707 - - 2,707 ($ in thousands) Description Fair Values at (Level 1) (Level 2) (Level 3) Impaired loans $ 982 $ - $ - $ 982 Mortgage Servicing Rights 1,490 - - 1,490 |
Summary of quantitative information about unobservable inputs used in recurring and nonrecurring | Fair Values at Weighted ($ in thousands) September 30, Valuation Technique Unobservable Inputs Ave Collateral-dependent impaired loans $ 428 Market comparable properties Comparability adjustments (%) 20 % Mortgage servicing rights 2,707 Discounted cash flow Discount Rate 10.42 % Constant prepayment rate 6.59 % P&I earnings credit 2.23 % T&I earnings credit 2.94 % Inflation for cost of servicing 1.50 % Fair Value at ($ in thousands) December 31, Valuation Technique Unobservable Inputs Range Collateral-dependent impaired loans $ 982 Market comparable properties Comparability adjustments (%) Not available Mortgage servicing rights 1,490 Discounted cash flow Discount Rate 9.65 % Constant prepayment rate 7.51 % P&I earnings credit 1.56 % T&I earnings credit 2.13 % Inflation for cost of servicing 1.50 % |
Summary of estimated fair values of company's financial instruments | September 30, 2018 Carrying Fair Value Measurements Using ($ in thousands) Amount (Level 1) (Level 2) (Level 3) Financial assets Cash and cash equivalents $ 45,515 $ 45,515 $ - $ - Loans held for sale 6,888 - 6,952 - Loans, net of allowance for loan losses 763,209 - - 750,037 Federal Reserve and FHLB Bank stock 4,123 - 4,123 - Accrued interest receivable 2,433 - 2,433 - Financial liabilities Deposits $ 789,426 $ 550,127 $ 237,191 $ - Repurchase agreements 15,539 - 15,539 - FHLB advances 24,500 - 24,220 - Trust preferred securities 10,310 - 10,511 - Accrued interest payable 891 - 891 - December 31, Carrying Fair Value Measurements Using ($ in thousands) Amount (Level 1) (Level 2) (Level 3) Financial assets Cash and due from banks $ 26,616 $ 26,616 $ - $ - Loans held for sale 3,940 - 4,041 - Loans, net of allowance for loan losses 688,685 - - 686,940 Federal Reserve and FHLB Bank stock, at cost 3,748 - 3,748 - Accrued interest receivable 1,825 - 1,825 - Financial liabilities Deposits $ 729,600 $ 511,782 $ 220,823 $ - Repurchase agreements 15,082 - 15,082 - FHLB advances 18,500 - 18,385 - Trust preferred securities 10,310 - 9,673 - Accrued interest payable 592 - 592 - |
Share Based Compensation (Table
Share Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Share Based Compensation [Abstract] | |
Summary of incentive option activity under the Company's plans | ($ in thousands - except per share data) Shares Weighted Average Exercise Price Weighted Average Remaining Term Aggregate Intrinsic Value Outstanding, December 31, 2017 92,500 $ 6.97 Granted - - Exercised (28,500 ) 6.92 Forfeited - - Expired - - Outstanding, September 30, 2018 64,000 $ 6.99 1.36 $ 855 Exercisable, September 30, 2018 64,000 $ 6.99 1.36 $ 855 |
Summary of restricted stock activity under the Company's plans | Shares Weighted-Average Value per Share Nonvested, December 31, 2017 52,258 $ 14.91 Granted 16,268 17.66 Vested (21,632 ) 13.95 Forfeited - - Nonvested, September 30, 2018 46,894 $ 16.31 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Distributed earnings allocated to common shares | $ 524 | $ 340 | $ 1,532 | $ 999 |
Undistributed earnings allocated to common shares | 2,346 | 2,136 | 6,404 | 5,294 |
Net earnings allocated to common shares | 2,870 | 2,476 | 7,939 | 6,293 |
Net earnings allocated to participating securities | 4 | 3 | 11 | 9 |
Dividends on convertible preferred shares | 244 | 244 | 732 | 731 |
Net Income allocated to common shares and participating securities | $ 3,118 | $ 2,723 | $ 8,679 | $ 7,033 |
Weighted average shares outstanding for basic earnings per share | 6,503 | 4,797 | 6,106 | 4,825 |
Dilutive effect of stock compensation | 58 | 70 | 63 | 73 |
Dilutive effect of convertible shares | 1,461 | 1,459 | 1,457 | 1,458 |
Weighted average shares outstanding for diluted earnings per share | 8,022 | 6,326 | 7,626 | 6,356 |
Basic earnings per common share | $ 0.45 | $ 0.52 | $ 1.3 | $ 1.31 |
Diluted earnings per common share | $ 0.39 | $ 0.43 | $ 1.14 | $ 1.11 |
Earnings Per Share (Details Tex
Earnings Per Share (Details Textual) | 9 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Earnings Per Share (Textual) | |
Conversion current price | $ / shares | $ 10.2059 |
Conversion of outstanding depository shares | 1,499,500 |
Conversion of common stock, shares | 1,469,247 |
Securities (Details)
Securities (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Summary of amortized cost and approximate fair values of securities | ||
Amortized Cost | $ 86,207 | $ 82,969 |
Gross Unrealized Gains | 166 | 598 |
Gross Unrealized Losses | (2,259) | (777) |
Fair Value | 84,114 | 82,790 |
U.S. Treasury and Government agencies [Member] | ||
Summary of amortized cost and approximate fair values of securities | ||
Amortized Cost | 11,897 | 12,715 |
Gross Unrealized Gains | 5 | 62 |
Gross Unrealized Losses | (326) | (69) |
Fair Value | 11,576 | 12,708 |
Mortgage-backed securities [Member] | ||
Summary of amortized cost and approximate fair values of securities | ||
Amortized Cost | 63,312 | 57,355 |
Gross Unrealized Gains | 34 | 97 |
Gross Unrealized Losses | (1,876) | (690) |
Fair Value | 61,470 | 56,762 |
State and political subdivisions [Member] | ||
Summary of amortized cost and approximate fair values of securities | ||
Amortized Cost | 10,998 | 12,829 |
Gross Unrealized Gains | 127 | 439 |
Gross Unrealized Losses | (57) | (18) |
Fair Value | $ 11,068 | 13,250 |
Equity securities [Member] | ||
Summary of amortized cost and approximate fair values of securities | ||
Amortized Cost | 70 | |
Gross Unrealized Gains | ||
Gross Unrealized Losses | ||
Fair Value | $ 70 |
Securities (Details 1)
Securities (Details 1) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Summary of amortized cost and fair value of securities available for sale by contractual maturity | ||
Available for Sale Amortized Cost, Within one year | $ 2,118 | |
Available for Sale Amortized Cost, Due after one year through five years | 7,516 | |
Available for Sale Amortized Cost, Due after five years through ten years | 9,692 | |
Available for Sale Amortized Cost, Due after ten years | 3,569 | |
Available for Sale Amortized Cost | 22,895 | |
Available for Sale, Amortized Cost, Mortgage-backed securities | 63,312 | |
Available for Sale, Amortized Cost, Totals | 86,207 | $ 82,969 |
Available for Sale Fair Value, Within one year | 2,135 | |
Available for Sale Fair Value, Due after one year through five years | 7,444 | |
Available for Sale Fair Value, Due after five years through ten years | 9,486 | |
Available for Sale Fair Value, Due after ten years | 3,579 | |
Available for Sale Fair Value | 22,644 | |
Available for Sale, Fair Value, Mortgage-backed securities | 61,470 | |
Available for Sale, Fair Value, Totals | $ 84,114 | $ 82,790 |
Securities (Details 2)
Securities (Details 2) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule of securities with unrealized losses | ||
Less than 12 Months, Fair Value | $ 42,036 | $ 41,785 |
Less than 12 Months, Unrealized Losses | (957) | (350) |
12 Months or Longer, Fair Value | 32,412 | 17,558 |
12 Months or Longer, Unrealized Losses | (1,302) | (427) |
Total, Fair Value | 74,448 | 59,343 |
Total, Unrealized Losses | (2,259) | (777) |
U.S. Treasury and Government Agencies [Member] | ||
Schedule of securities with unrealized losses | ||
Less than 12 Months, Fair Value | 7,409 | 5,675 |
Less than 12 Months, Unrealized Losses | (224) | (27) |
12 Months or Longer, Fair Value | 3,660 | 2,559 |
12 Months or Longer, Unrealized Losses | (103) | (42) |
Total, Fair Value | 11,069 | 8,234 |
Total, Unrealized Losses | (327) | (69) |
Mortgage-backed securities [Member] | ||
Schedule of securities with unrealized losses | ||
Less than 12 Months, Fair Value | 31,685 | 35,205 |
Less than 12 Months, Unrealized Losses | (701) | (319) |
12 Months or Longer, Fair Value | 28,312 | 14,673 |
12 Months or Longer, Unrealized Losses | (1,174) | (371) |
Total, Fair Value | 59,997 | 49,878 |
Total, Unrealized Losses | (1,875) | (690) |
State and political subdivisions [Member] | ||
Schedule of securities with unrealized losses | ||
Less than 12 Months, Fair Value | 2,942 | 905 |
Less than 12 Months, Unrealized Losses | (32) | (4) |
12 Months or Longer, Fair Value | 440 | 326 |
12 Months or Longer, Unrealized Losses | (25) | (14) |
Total, Fair Value | 3,382 | 1,231 |
Total, Unrealized Losses | $ (57) | $ (18) |
Securities (Details Textual)
Securities (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Securities (Textual) | |||||
Fair value of securities pledged as collateral | $ 44,000 | $ 44,000 | $ 38,900 | ||
Securities delivered for repurchase agreements | 18,700 | 18,700 | 19,100 | ||
Gross gains from sales of available-for-sale securities | 70 | $ 120 | |||
Tax expense | 20 | 40 | |||
Total fair value of investments | $ 74,448 | $ 74,448 | $ 59,343 | ||
Fair value as a percentage of available-for-sale investment portfolio | 88.00% | 88.00% | 72.00% | ||
Unrealized holding gain (loss) arising in the period | $ (524) | $ 112 | $ (1,914) | $ 550 | $ 780 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Summary of categories of loans | ||
Total Loans | $ 771,130 | $ 696,128 |
Non-Accrual Loans | 2,381 | 2,704 |
Net deferred costs | 568 | 487 |
Total Loans, net deferred costs | 771,698 | 696,615 |
Allowance for loan losses | (8,489) | (7,930) |
Commercial & Industrial [Member] | ||
Summary of categories of loans | ||
Total Loans | 119,242 | 101,554 |
Non-Accrual Loans | 360 | 121 |
Commercial RE & Construction [Member] | ||
Summary of categories of loans | ||
Total Loans | 356,563 | 332,154 |
Non-Accrual Loans | 228 | 1,322 |
Agricultural & Farmland [Member] | ||
Summary of categories of loans | ||
Total Loans | 52,814 | 51,947 |
Non-Accrual Loans | ||
Residential Real Estate [Member] | ||
Summary of categories of loans | ||
Total Loans | 178,033 | 150,854 |
Non-Accrual Loans | 1,541 | 1,123 |
Consumer & Other [Member] | ||
Summary of categories of loans | ||
Total Loans | 64,478 | 59,619 |
Non-Accrual Loans | $ 252 | $ 138 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Summary of balance of the allowance for loan losses and the recorded investment in loans | |||||
Beginning balance | $ 8,494 | $ 7,825 | $ 7,930 | $ 7,725 | |
Charge Offs | (11) | (75) | (85) | (195) | |
Recoveries | 6 | 10 | 44 | 30 | |
Provision | 600 | 200 | |||
Ending Balance | 8,489 | 7,760 | 8,489 | 7,760 | |
Allowance: Ending balance: individually evaluated for impairment | 81 | 81 | $ 329 | ||
Allowance: Ending balance: collectively evaluated for impairment | 8,408 | 8,408 | 7,601 | ||
Loans: Ending balance: individually evaluated for impairment | 2,682 | 2,682 | 3,412 | ||
Loans: Ending balance: collectively evaluated for impairment | 768,448 | 768,448 | 692,716 | ||
Commercial & Industrial [Member] | |||||
Summary of balance of the allowance for loan losses and the recorded investment in loans | |||||
Beginning balance | 1,061 | 995 | 823 | 1,204 | |
Charge Offs | (50) | ||||
Recoveries | 6 | ||||
Provision | 13 | (138) | 251 | (303) | |
Ending Balance | 1,074 | 857 | 1,074 | 857 | |
Allowance: Ending balance: individually evaluated for impairment | |||||
Allowance: Ending balance: collectively evaluated for impairment | 1,074 | 1,074 | 823 | ||
Loans: Ending balance: individually evaluated for impairment | 329 | 329 | |||
Loans: Ending balance: collectively evaluated for impairment | 118,913 | 118,913 | 101,554 | ||
Commercial RE & Construction [Member] | |||||
Summary of balance of the allowance for loan losses and the recorded investment in loans | |||||
Beginning balance | 3,720 | 3,452 | 3,779 | 3,321 | |
Charge Offs | (26) | (36) | (26) | ||
Recoveries | 29 | 2 | |||
Provision | 5 | 195 | (47) | 324 | |
Ending Balance | 3,725 | 3,725 | |||
Allowance: Ending balance: individually evaluated for impairment | 146 | ||||
Allowance: Ending balance: collectively evaluated for impairment | 3,725 | 3,725 | 3,633 | ||
Loans: Ending balance: individually evaluated for impairment | 287 | 287 | 1,385 | ||
Loans: Ending balance: collectively evaluated for impairment | 356,276 | 356,276 | 330,769 | ||
Agricultural & Farmland [Member] | |||||
Summary of balance of the allowance for loan losses and the recorded investment in loans | |||||
Beginning balance | 488 | 512 | 505 | 347 | |
Charge Offs | |||||
Recoveries | 1 | 3 | |||
Provision | (9) | (17) | (26) | 146 | |
Ending Balance | 479 | 496 | 479 | 496 | |
Allowance: Ending balance: individually evaluated for impairment | |||||
Allowance: Ending balance: collectively evaluated for impairment | 479 | 479 | 505 | ||
Loans: Ending balance: individually evaluated for impairment | |||||
Loans: Ending balance: collectively evaluated for impairment | 52,814 | 52,814 | 51,947 | ||
Residential Real Estate [Member] | |||||
Summary of balance of the allowance for loan losses and the recorded investment in loans | |||||
Beginning balance | 2,550 | 1,988 | 2,129 | 1,963 | |
Charge Offs | (20) | (26) | (42) | ||
Recoveries | 2 | 2 | 6 | ||
Provision | (39) | 44 | 406 | 87 | |
Ending Balance | 2,511 | 2,014 | 2,511 | 2,014 | |
Allowance: Ending balance: individually evaluated for impairment | 77 | 77 | 178 | ||
Allowance: Ending balance: collectively evaluated for impairment | 2,434 | 2,434 | 1,951 | ||
Loans: Ending balance: individually evaluated for impairment | 1,889 | 1,889 | 1,830 | ||
Loans: Ending balance: collectively evaluated for impairment | 176,144 | 176,144 | 149,024 | ||
Consumer & Other [Member] | |||||
Summary of balance of the allowance for loan losses and the recorded investment in loans | |||||
Beginning balance | 675 | 878 | 694 | 890 | |
Charge Offs | (11) | (29) | (23) | (77) | |
Recoveries | 6 | 7 | 13 | 13 | |
Provision | 30 | (84) | 16 | (54) | |
Ending Balance | 700 | $ 772 | 700 | $ 772 | |
Allowance: Ending balance: individually evaluated for impairment | 4 | 4 | 5 | ||
Allowance: Ending balance: collectively evaluated for impairment | 696 | 696 | 689 | ||
Loans: Ending balance: individually evaluated for impairment | 177 | 177 | 197 | ||
Loans: Ending balance: collectively evaluated for impairment | $ 64,301 | $ 64,301 | $ 59,422 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses (Details 2) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | $ 771,130 | $ 696,128 |
Loan Grade 1-2 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 942 | |
Loan Grade 3 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 321,376 | 292,519 |
Loan Grade 4 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 441,145 | 396,822 |
Total Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 762,521 | 690,283 |
Special Mention [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 2,358 | 1,810 |
Substandard [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 5,625 | 2,367 |
Doubtful [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 626 | 1,668 |
Loss [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | ||
Commercial & Industrial [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 119,242 | 101,554 |
Commercial & Industrial [Member] | Loan Grade 1-2 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 96 | |
Commercial & Industrial [Member] | Loan Grade 3 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 17,929 | 19,883 |
Commercial & Industrial [Member] | Loan Grade 4 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 97,591 | 80,448 |
Commercial & Industrial [Member] | Total Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 115,520 | 100,427 |
Commercial & Industrial [Member] | Special Mention [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 737 | 512 |
Commercial & Industrial [Member] | Substandard [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 2,625 | 7 |
Commercial & Industrial [Member] | Doubtful [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 360 | 608 |
Commercial & Industrial [Member] | Loss [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | ||
Commercial RE & Construction [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 356,563 | 332,154 |
Commercial RE & Construction [Member] | Loan Grade 1-2 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 13 | |
Commercial RE & Construction [Member] | Loan Grade 3 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 99,297 | 93,222 |
Commercial RE & Construction [Member] | Loan Grade 4 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 255,261 | 236,217 |
Commercial RE & Construction [Member] | Total Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 354,558 | 329,452 |
Commercial RE & Construction [Member] | Special Mention [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 1,056 | 1,100 |
Commercial RE & Construction [Member] | Substandard [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 683 | 580 |
Commercial RE & Construction [Member] | Doubtful [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 266 | 1,022 |
Commercial RE & Construction [Member] | Loss [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | ||
Agricultural & Farmland [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 52,814 | 51,947 |
Agricultural & Farmland [Member] | Loan Grade 1-2 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | ||
Agricultural & Farmland [Member] | Loan Grade 3 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 7,564 | 8,080 |
Agricultural & Farmland [Member] | Loan Grade 4 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 44,747 | 43,735 |
Agricultural & Farmland [Member] | Total Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 52,311 | 51,815 |
Agricultural & Farmland [Member] | Special Mention [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 503 | 132 |
Agricultural & Farmland [Member] | Substandard [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | ||
Agricultural & Farmland [Member] | Doubtful [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | ||
Agricultural & Farmland [Member] | Loss [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | ||
Residential Real Estate [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 178,033 | 150,854 |
Residential Real Estate [Member] | Loan Grade 1-2 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 832 | |
Residential Real Estate [Member] | Loan Grade 3 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 134,491 | 114,130 |
Residential Real Estate [Member] | Loan Grade 4 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 41,564 | 34,271 |
Residential Real Estate [Member] | Total Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 176,055 | 149,233 |
Residential Real Estate [Member] | Special Mention [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | ||
Residential Real Estate [Member] | Substandard [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 1,978 | 1,583 |
Residential Real Estate [Member] | Doubtful [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 38 | |
Residential Real Estate [Member] | Loss [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | ||
Consumer & Other [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 64,478 | 59,619 |
Consumer & Other [Member] | Loan Grade 1-2 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 1 | |
Consumer & Other [Member] | Loan Grade 3 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 62,095 | 57,204 |
Consumer & Other [Member] | Loan Grade 4 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 19,825 | 2,151 |
Consumer & Other [Member] | Total Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 64,077 | 59,356 |
Consumer & Other [Member] | Special Mention [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 62 | 66 |
Consumer & Other [Member] | Substandard [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 339 | 197 |
Consumer & Other [Member] | Doubtful [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | ||
Consumer & Other [Member] | Loss [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses (Details 3) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Summary of loan portfolio aging analysis | ||
Total Past Due | $ 1,865 | $ 2,971 |
Current | 769,265 | 693,157 |
Total Loans Receivable | 771,130 | 696,128 |
30 to 59 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 436 | 861 |
60 to 89 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 481 | 400 |
Greater Than 90 Days [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 948 | 1,710 |
Commercial & Industrial [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 454 | 173 |
Current | 118,788 | 101,381 |
Total Loans Receivable | 119,242 | 101,554 |
Commercial & Industrial [Member] | 30 to 59 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 85 | |
Commercial & Industrial [Member] | 60 to 89 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 125 | |
Commercial & Industrial [Member] | Greater Than 90 Days [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 329 | 88 |
Commercial RE & Construction [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 82 | 1,196 |
Current | 356,481 | 330,958 |
Total Loans Receivable | 356,563 | 332,154 |
Commercial RE & Construction [Member] | 30 to 59 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 75 | 110 |
Commercial RE & Construction [Member] | 60 to 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 | 7 | 1,086 |
Agricultural & Farmland [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | ||
Current | 52,814 | 51,947 |
Total Loans Receivable | 52,814 | 51,947 |
Agricultural & Farmland [Member] | 30 to 59 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | ||
Agricultural & Farmland [Member] | 60 to 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 | 996 | 1,296 |
Current | 177,037 | 149,558 |
Total Loans Receivable | 178,033 | 150,854 |
Residential Real Estate [Member] | 30 to 59 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 215 | 484 |
Residential Real Estate [Member] | 60 to 89 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 310 | 379 |
Residential Real Estate [Member] | Greater Than 90 Days [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 471 | 433 |
Consumer & Other [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 333 | 306 |
Current | 64,145 | 59,313 |
Total Loans Receivable | 64,478 | 59,619 |
Consumer & Other [Member] | 30 to 59 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 146 | 182 |
Consumer & Other [Member] | 60 to 89 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 46 | 21 |
Consumer & Other [Member] | Greater Than 90 Days [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | $ 141 | $ 103 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses (Details 4) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Commercial & Industrial [Member] | |||||
Summary of Impaired loan activity | |||||
With no related allowance recorded, Recorded Investment | $ 329 | $ 329 | |||
With no related allowance recorded, Unpaid Principal Balance | 329 | 329 | |||
With no related allowance recorded, Related Allowance | |||||
With no related allowance recorded, Average Recorded Investment | 763 | 777 | |||
With no related allowance recorded, Interest Income Recognized | (9) | 19 | |||
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 | 329 | 329 | |||
Total Unpaid Principal Balance | 329 | 329 | |||
Total Related Allowance | |||||
Total Average Recorded Investment | 763 | 777 | |||
Total Interest Income Recognized | (9) | 19 | |||
Commercial RE & Construction [Member] | |||||
Summary of Impaired loan activity | |||||
With no related allowance recorded, Recorded Investment | 287 | 287 | 696 | ||
With no related allowance recorded, Unpaid Principal Balance | 287 | 29 | 287 | 29 | 722 |
With no related allowance recorded, Related Allowance | |||||
With no related allowance recorded, Average Recorded Investment | 336 | 754 | 336 | 757 | 756 |
With no related allowance recorded, Interest Income Recognized | 5 | 7 | 17 | 34 | |
With a specific allowance recorded, Recorded Investment | 689 | ||||
With a specific allowance recorded, Unpaid Principal Balance | (2) | (2) | 689 | ||
With a specific allowance recorded, Related Allowance | 146 | ||||
With a specific allowance recorded, Average Recorded Investment | 689 | 721 | 713 | ||
With a specific allowance recorded, Interest Income Recognized | |||||
Total Recorded Investment | 287 | 287 | 1,385 | ||
Total Unpaid Principal Balance | 287 | 27 | 287 | 27 | 1,411 |
Total Related Allowance | 146 | ||||
Total Average Recorded Investment | 336 | 1,443 | 336 | 1,478 | 1,469 |
Total Interest Income Recognized | 5 | 7 | 17 | 34 | |
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 | 1,021 | 1,021 | 752 | ||
With no related allowance recorded, Unpaid Principal Balance | 1,064 | 20 | 1,064 | 20 | 795 |
With no related allowance recorded, Related Allowance | |||||
With no related allowance recorded, Average Recorded Investment | 1,733 | 535 | 1,745 | 539 | 1,460 |
With no related allowance recorded, Interest Income Recognized | 16 | 5 | 57 | 67 | |
With a specific allowance recorded, Recorded Investment | 868 | 868 | 1,078 | ||
With a specific allowance recorded, Unpaid Principal Balance | 894 | 20 | 894 | 20 | 1,097 |
With a specific allowance recorded, Related Allowance | 77 | 77 | 178 | ||
With a specific allowance recorded, Average Recorded Investment | 424 | 625 | 428 | 631 | 628 |
With a specific allowance recorded, Interest Income Recognized | 5 | 7 | 15 | 25 | |
Total Recorded Investment | 1,889 | 1,889 | 1,830 | ||
Total Unpaid Principal Balance | 1,958 | 40 | 1,958 | 40 | 1,892 |
Total Related Allowance | 77 | 77 | 178 | ||
Total Average Recorded Investment | 2,157 | 1,160 | 2,173 | 1,170 | 2,088 |
Total Interest Income Recognized | 21 | 12 | 72 | 92 | |
Consumer & Other [Member] | |||||
Summary of Impaired loan activity | |||||
With no related allowance recorded, Recorded Investment | 97 | 97 | 110 | ||
With no related allowance recorded, Unpaid Principal Balance | 97 | 7 | 97 | 7 | 110 |
With no related allowance recorded, Related Allowance | |||||
With no related allowance recorded, Average Recorded Investment | 102 | 126 | 106 | 130 | 128 |
With no related allowance recorded, Interest Income Recognized | 2 | 2 | 5 | 9 | |
With a specific allowance recorded, Recorded Investment | 80 | 80 | 87 | ||
With a specific allowance recorded, Unpaid Principal Balance | 80 | 4 | 80 | 4 | 87 |
With a specific allowance recorded, Related Allowance | 4 | 4 | 5 | ||
With a specific allowance recorded, Average Recorded Investment | 90 | 92 | 92 | 95 | 91 |
With a specific allowance recorded, Interest Income Recognized | 1 | 1 | 4 | 5 | |
Total Recorded Investment | 177 | 177 | 197 | ||
Total Unpaid Principal Balance | 177 | 11 | 177 | 11 | 197 |
Total Related Allowance | 4 | 4 | 5 | ||
Total Average Recorded Investment | 192 | 218 | 198 | $ 225 | 219 |
Total Interest Income Recognized | $ 3 | $ 3 | $ 9 | $ 14 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses (Details Textual) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Loans and Allowance for Loan Losses (Textual) | |
Principal amount outstanding of loans held-in-portfolio | $ 100 |
Impaired loans which included in groups of homogenous loans, description | Impaired loans less than $100,000 are included in groups of homogenous loans. |
Residential real estate property value | $ 8,000 |
Mortgage Servicing Rights (Deta
Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Mortgage servicing rights capitalized and related amortization | ||
Carrying amount, January 1 | $ 9,907 | $ 8,422 |
Mortgage servicing rights capitalized during the year | 2,288 | 2,042 |
Mortgage servicing rights amortization during the year | (931) | (863) |
Net change in valuation allowance | 8 | (40) |
Carrying amount, September 30 | 11,272 | 9,560 |
Valuation allowance: | ||
January 1 | 151 | 228 |
Increase/(reduction) | (8) | 40 |
September 30 | $ 143 | $ 268 |
Mortgage Servicing Rights (De_2
Mortgage Servicing Rights (Details Textual) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Mortgage Servicing Rights (Textual) | |||
Unpaid principal balance of mortgage loans | $ 1,070 | $ 990 | |
Contractually specified servicing fees | $ 1.9 | $ 1.8 |
Derivative Financial Instrume_3
Derivative Financial Instruments and Repurchase Agreements (Details) - Derivatives not designated as hedging instruments [Member] - Interest rate contracts [Member] - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Other Assets [Member] | ||
Fair value of the Company's derivative financial instruments, as well as their classification on the balance sheet | ||
Asset Derivatives | $ 1,455 | $ 698 |
Other Liabilities [Member] | ||
Fair value of the Company's derivative financial instruments, as well as their classification on the balance sheet | ||
Liability Derivatives | $ 1,455 | $ 698 |
Derivative Financial Instrume_4
Derivative Financial Instruments and Repurchase Agreements (Details Textual) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Derivative Financial Instruments and Repurchase Agreements (Textual) | ||
Notional amount of customer-facing swaps | $ 50.7 | $ 39.3 |
Cash as collateral | 1.3 | |
Mortgage-backed securities | $ 18.7 | |
Securities maturity, description | These securities have various maturity dates beyond 2018. |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
U.S. Treasury and Government Agencies [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | $ 11,576 | $ 12,708 |
Mortgage-backed securities [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | 61,470 | 56,762 |
State and political subdivisions [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | 11,068 | 13,250 |
Equity securities [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | 70 | |
Interest rate contracts - assets [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | 1,455 | 698 |
Interest rate contracts - liabilities [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Liabilities, Fair Value, Recurring | (1,455) | (698) |
Level 1 [Member] | U.S. Treasury and Government Agencies [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | ||
Level 1 [Member] | Mortgage-backed securities [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | ||
Level 1 [Member] | State and political subdivisions [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | ||
Level 1 [Member] | Equity securities [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | ||
Level 1 [Member] | Interest rate contracts - assets [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | ||
Level 1 [Member] | Interest rate contracts - liabilities [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | ||
Liabilities, Fair Value, Recurring | ||
Level 2 [Member] | U.S. Treasury and Government Agencies [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | 11,576 | 12,708 |
Level 2 [Member] | Mortgage-backed securities [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | 61,470 | 56,762 |
Level 2 [Member] | State and political subdivisions [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | 11,068 | 13,250 |
Level 2 [Member] | Equity securities [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Liabilities, Fair Value, Recurring | (70) | |
Level 2 [Member] | Interest rate contracts - assets [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | 1,455 | 698 |
Level 2 [Member] | Interest rate contracts - liabilities [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Liabilities, Fair Value, Recurring | (1,415) | (698) |
Level 3 [Member] | U.S. Treasury and Government Agencies [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | ||
Level 3 [Member] | Mortgage-backed securities [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | ||
Level 3 [Member] | State and political subdivisions [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | ||
Level 3 [Member] | Equity securities [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | ||
Level 3 [Member] | Interest rate contracts - assets [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | ||
Liabilities, Fair Value, Recurring | ||
Level 3 [Member] | Interest rate contracts - liabilities [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Liabilities, Fair Value, Recurring |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities (Details 1) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Impaired Loans [Member] | ||
Summary of fair value measurements of assets measured at fair value on a non-recurring basis | ||
Assets, Fair value, Nonrecurring | $ 428 | $ 982 |
Impaired Loans [Member] | Level 1 [Member] | ||
Summary of fair value measurements of assets measured at fair value on a non-recurring basis | ||
Assets, Fair value, Nonrecurring | ||
Impaired Loans [Member] | Level 2 [Member] | ||
Summary of fair value measurements of assets measured at fair value on a non-recurring basis | ||
Assets, Fair value, Nonrecurring | ||
Impaired Loans [Member] | Level 3 [Member] | ||
Summary of fair value measurements of assets measured at fair value on a non-recurring basis | ||
Assets, Fair value, Nonrecurring | 428 | 982 |
Mortgage Servicing Rights [Member] | ||
Summary of fair value measurements of assets measured at fair value on a non-recurring basis | ||
Assets, Fair value, Nonrecurring | 2,707 | 1,490 |
Mortgage Servicing Rights [Member] | Level 1 [Member] | ||
Summary of fair value measurements of assets measured at fair value on a non-recurring basis | ||
Assets, Fair value, Nonrecurring | ||
Mortgage Servicing Rights [Member] | Level 2 [Member] | ||
Summary of 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] | ||
Summary of fair value measurements of assets measured at fair value on a non-recurring basis | ||
Assets, Fair value, Nonrecurring | $ 2,707 | $ 1,490 |
Fair Value of Assets and Liab_5
Fair Value of Assets and Liabilities (Details 2) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Collateral-dependent impaired loans [Member] | Comparability adjustments (%) [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 | $ 428 | $ 982 |
Fair Value Measurements, Valuation Technique | Market comparable properties | Market comparable properties |
Fair Value Measurements, Unobservable Inputs | Comparability adjustments (%) | Comparability adjustments (%) |
Fair Value Measurements, Weighted Ave Range | 20.00% | |
Mortgage servicing rights [Member] | Discount Rate [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 | $ 2,707 | $ 1,490 |
Fair Value Measurements, Valuation Technique | Discounted cash flow | Discounted cash flow |
Fair Value Measurements, Unobservable Inputs | Discount Rate | Discount Rate |
Fair Value Measurements, Weighted Ave Range | 10.42% | |
Fair Value Measurements, Range | 9.65% | |
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 Inputs | Constant prepayment rate | Constant prepayment rate |
Fair Value Measurements, Weighted Ave Range | 6.59% | |
Fair Value Measurements, Range | 7.51% | |
Mortgage servicing rights [Member] | P&I earnings credit [Member] | ||
Quantitative information about unobservable inputs used in recurring and nonrecurring fair value measurements | ||
Fair Value Measurements, Unobservable Inputs | P&I earnings credit | P&I earnings credit |
Fair Value Measurements, Weighted Ave Range | 2.23% | |
Fair Value Measurements, Range | 1.56% | |
Mortgage servicing rights [Member] | T&I earnings credit [Member] | ||
Quantitative information about unobservable inputs used in recurring and nonrecurring fair value measurements | ||
Fair Value Measurements, Unobservable Inputs | T&I earnings credit | T&I earnings credit |
Fair Value Measurements, Weighted Ave Range | 2.94% | |
Fair Value Measurements, Range | 2.13% | |
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 Inputs | Inflation for cost of servicing | Inflation for cost of servicing |
Fair Value Measurements, Weighted Ave Range | 1.50% | |
Fair Value Measurements, Range | 1.50% |
Fair Value of Assets and Liab_6
Fair Value of Assets and Liabilities (Details 3) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Financial assets | ||||
Cash and cash equivalents | $ 45,515 | $ 26,616 | $ 28,258 | $ 17,012 |
Loans held for sale | 6,888 | 3,940 | ||
Loans, net of allowance for loan losses | 763,209 | 688,685 | ||
Federal Reserve and FHLB Bank stock | 4,123 | 3,748 | ||
Accrued interest receivable | 2,433 | 1,825 | ||
Financial liabilities | ||||
Deposits | 789,426 | 729,600 | ||
Repurchase agreements | 15,539 | 15,082 | ||
FHLB advances | 24,500 | 18,500 | ||
Trust preferred securities | 10,310 | 10,310 | ||
Accrued interest payable | 891 | 592 | ||
Level 1 [Member] | ||||
Financial assets | ||||
Cash and cash equivalents | 45,515 | 26,616 | ||
Loans held for sale | ||||
Loans, net of allowance for loan losses | ||||
Federal Reserve and FHLB Bank stock | ||||
Accrued interest receivable | ||||
Financial liabilities | ||||
Deposits | 550,127 | 511,782 | ||
Repurchase agreements | ||||
FHLB advances | ||||
Trust preferred securities | ||||
Accrued interest payable | ||||
Level 2 [Member] | ||||
Financial assets | ||||
Cash and cash equivalents | ||||
Loans held for sale | 6,952 | 4,041 | ||
Loans, net of allowance for loan losses | ||||
Federal Reserve and FHLB Bank stock | 4,123 | 3,748 | ||
Accrued interest receivable | 2,433 | 1,825 | ||
Financial liabilities | ||||
Deposits | 237,191 | 220,823 | ||
Repurchase agreements | 15,539 | 15,082 | ||
FHLB advances | 24,220 | 18,385 | ||
Trust preferred securities | 10,511 | 9,673 | ||
Accrued interest payable | 891 | 592 | ||
Level 3 [Member] | ||||
Financial assets | ||||
Cash and cash equivalents | ||||
Loans held for sale | ||||
Loans, net of allowance for loan losses | 750,037 | 686,940 | ||
Federal Reserve and FHLB Bank stock | ||||
Accrued interest receivable | ||||
Financial liabilities | ||||
Deposits | ||||
Repurchase agreements | ||||
FHLB advances | ||||
Trust preferred securities | ||||
Accrued interest payable |
Share Based Compensation (Detai
Share Based Compensation (Details) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($)$ / sharesshares | |
Share Based Compensation [Abstract] | |
Shares Outstanding, December 31, 2017 | shares | 92,500 |
Shares Granted | shares | |
Shares Exercised | shares | (28,500) |
Shares Forfeited | shares | |
Shares Expired | shares | |
Shares Outstanding, September 30, 2018 | shares | 64,000 |
Shares Exercisable, September 30, 2018 | shares | 64,000 |
Weighted Average Exercise Price, Outstanding, December 31, 2017 | $ / shares | $ 6.97 |
Weighted Average Exercise Price Granted | $ / shares | |
Weighted Average Exercise Price Exercised | $ / shares | 6.92 |
Weighted Average Exercise Price Forfeited | $ / shares | |
Weighted Average Exercise Price Expired | $ / shares | |
Weighted Average Exercise Price, Outstanding, September 30, 2018 | $ / shares | 6.99 |
Weighted Average Exercise Price, Exercisable, September 30, 2018 | $ / shares | $ 6.99 |
Weighted Average Remaining Term, Outstanding, September 30, 2018 | 1 year 4 months 9 days |
Weighted Average Remaining Term, Exercisable, September 30, 2018 | 1 year 4 months 9 days |
Aggregate Intrinsic Value, Outstanding, September 30, 2018 | $ | $ 855 |
Aggregate Intrinsic Value, Exercisable, September 30, 2018 | $ | $ 855 |
Share Based Compensation (Det_2
Share Based Compensation (Details 1) - Restricted Stock [Member] | 9 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested, December 31, 2017 | shares | 52,258 |
Nonvested Shares Granted | shares | 16,268 |
Nonvested Shares, Vested | shares | (21,632) |
Nonvested Shares, Forfeited | shares | |
Nonvested Shares, September 30, 2018 | shares | 46,894 |
Nonvested Weighted-Average Value per Share, December 31, 2017 | $ / shares | $ 14.91 |
Nonvested Weighted-Average Value per Share, Granted | $ / shares | 17.66 |
Nonvested Weighted-Average Value per Share, Vested | $ / shares | 13.95 |
Nonvested Weighted-Average Value per Share, Forfeited | $ / shares | |
Nonvested Weighted-Average Value per Share, September 30, 2018 | $ / shares | $ 16.31 |
Share Based Compensation (Det_3
Share Based Compensation (Details Textual) - USD ($) $ in Thousands | Feb. 05, 2013 | Apr. 30, 2017 | Sep. 30, 2018 |
Share Based Compensation (Textual) | |||
Shares available for grants of awards | |||
Total intrinsic value | $ 350 | ||
Option exercised shares | 28,500 | ||
Cash received from exercised options | $ 200 | ||
2008 Stock Incentive Plan [Member] | |||
Share Based Compensation (Textual) | |||
SAR and common restricted stock, shares | 250,000 | ||
Option awards vesting period | 5 years | ||
Option awards contractual terms | 10 years | ||
2017 Stock Incentive Plan [Member] | |||
Share Based Compensation (Textual) | |||
SAR and common restricted stock, shares | 500,000 | ||
Shares available for grants of awards | 500,000 | 16,268 | |
Restricted Stock [Member] | |||
Share Based Compensation (Textual) | |||
Option awards vesting period | 4 years | ||
Compensation cost charged against income | $ 200 | ||
Total income tax benefit recognized in income statement for share-based compensation arrangements | $ 40 | ||
Weighted-average period term | 2 years 8 months 12 days | ||
Total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under plan | $ 590 |
Equity Capital (Details)
Equity Capital (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 09, 2018 | Sep. 30, 2018 | Sep. 30, 2017 |
Equity Capital (Textual) | |||
Shares issued and sold an aggregate | 1,666,666 | ||
Shares per price | $ 18 | ||
Gross proceeds amount | $ 30,000 | $ 27,912 | |
Realized net proceeds | $ 27,900 |