Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 07, 2017 | |
Document And Entity Information Abstract | ||
Entity Registrant Name | HAWTHORN BANCSHARES, INC. | |
Entity Central Index Key | 893,847 | |
Trading Symbol | hwbk | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 5,800,688 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 |
Consolidated Balance Sheets (un
Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and due from banks | $ 19,200 | $ 25,589 |
Federal funds sold and other overnight interest-bearing deposits | 41,227 | 1,406 |
Cash and cash equivalents | 60,427 | 26,995 |
Investment in available-for-sale securities, at fair value | 212,650 | 214,512 |
Other investments and securities, at cost | 9,760 | 9,796 |
Total investment securities | 222,410 | 224,308 |
Loans | 1,045,047 | 974,029 |
Allowances for loan losses | (11,000) | (9,886) |
Net loans | 1,034,047 | 964,143 |
Premises and equipment - net | 34,996 | 35,522 |
Mortgage servicing rights | 2,688 | 2,584 |
Other real estate and repossessed assets - net | 13,177 | 14,162 |
Accrued interest receivable | 4,879 | 5,183 |
Cash surrender value - life insurance | 2,464 | 2,409 |
Other assets | 11,444 | 11,742 |
Total assets | 1,386,532 | 1,287,048 |
Deposits | ||
Non-interest bearing demand | 259,457 | 235,975 |
Savings, interest checking and money market | 539,575 | 468,731 |
Time deposits $250,000 and over | 68,605 | 73,523 |
Other time deposits | 240,323 | 232,437 |
Total deposits | 1,107,960 | 1,010,666 |
Federal funds purchased and securities sold under agreements to repurchase | 32,555 | 31,015 |
Subordinated notes | 49,486 | 49,486 |
Federal Home Loan Bank advances | 89,408 | 93,392 |
Accrued interest payable | 486 | 498 |
Other liabilities | 10,565 | 10,974 |
Total liabilities | 1,290,460 | 1,196,031 |
Stockholders' equity: | ||
Common stock, $1 par value, authorized 15,000,000 shares; issued 6,046,907 and 5,822,357 shares, respectively | 6,047 | 5,822 |
Surplus | 45,441 | 41,498 |
Retained earnings | 52,155 | 51,671 |
Accumulated other comprehensive loss, net of tax | (2,775) | (3,801) |
Treasury stock; 236,465 and 205,750 shares, at cost | (4,796) | (4,173) |
Total stockholders' equity | 96,072 | 91,017 |
Total liabilities and stockholders' equity | $ 1,386,532 | $ 1,287,048 |
Consolidated Balance Sheets (u3
Consolidated Balance Sheets (unaudited) (Parentheticals) - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized | 15,000,000 | 15,000,000 |
Common stock, shares issued | 6,046,907 | 5,822,357 |
Treasury stock, shares | 236,465 | 205,750 |
Consolidated Statements of Inco
Consolidated Statements of Income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
INTEREST INCOME | ||||
Interest and fees on loans | $ 11,856 | $ 10,634 | $ 34,577 | $ 30,929 |
Interest on investment securities: | ||||
Taxable | 726 | 754 | 2,217 | 2,523 |
Nontaxable | 169 | 119 | 494 | 381 |
Federal funds sold and other overnight interest-bearing deposits | 84 | 19 | 144 | 69 |
Dividends on other securities | 101 | 80 | 285 | 231 |
Total interest income | 12,936 | 11,606 | 37,717 | 34,133 |
Interest on deposits: | ||||
Savings, interest checking and money market | 682 | 291 | 1,546 | 874 |
Time deposit accounts $250,000 and over | 119 | 107 | 309 | 235 |
Other time deposits | 463 | 391 | 1,252 | 1,180 |
Interest on federal funds purchased and securities sold under agreements to repurchase | 29 | 13 | 78 | 51 |
Interest on subordinated notes | 450 | 375 | 1,290 | 1,095 |
Interest on Federal Home Loan Bank advances | 440 | 282 | 1,182 | 732 |
Total interest expense | 2,183 | 1,459 | 5,657 | 4,167 |
Net interest income | 10,753 | 10,147 | 32,060 | 29,966 |
Provision for loan losses | 555 | 300 | 1,235 | 975 |
Net interest income after provision for loan losses | 10,198 | 9,847 | 30,825 | 28,991 |
NON-INTEREST INCOME | ||||
Service charges and other fees | 878 | 882 | 2,565 | 2,544 |
Bank card income and fees | 664 | 593 | 1,941 | 1,875 |
Trust department income | 288 | 216 | 828 | 699 |
Real estate servicing fees, net | 70 | (4) | 557 | (36) |
Gain on sale of mortgage loans, net | 225 | 266 | 599 | 653 |
Gain on sale of investment securities | 0 | 111 | 0 | 602 |
Other | 56 | 61 | 197 | 185 |
Total non-interest income | 2,181 | 2,125 | 6,687 | 6,522 |
NON-INTEREST EXPENSE | ||||
Salaries and employee benefits | 5,515 | 5,063 | 16,321 | 15,718 |
Occupancy expense, net | 719 | 730 | 2,027 | 2,037 |
Furniture and equipment expense | 764 | 438 | 1,996 | 1,288 |
Processing, network, and bank card expense | 831 | 878 | 2,803 | 2,490 |
Legal, examination, and professional fees | 331 | 277 | 928 | 939 |
FDIC insurance assessment | 106 | 196 | 322 | 560 |
Advertising and promotion | 342 | 283 | 845 | 734 |
Postage, printing, and supplies | 234 | 244 | 729 | 771 |
Real estate foreclosure expense, net | 78 | 49 | 330 | 232 |
Other | 846 | 927 | 2,502 | 2,753 |
Total non-interest expense | 9,766 | 9,085 | 28,803 | 27,522 |
Income before income taxes | 2,613 | 2,887 | 8,709 | 7,991 |
Income tax expense | 847 | 1,003 | 2,923 | 2,697 |
Net income | $ 1,766 | $ 1,884 | $ 5,786 | $ 5,294 |
Basic earnings per share (in dollars per share) | $ 0.30 | $ 0.32 | $ 0.99 | $ 0.90 |
Diluted earnings per share (in dollars per share) | $ 0.30 | $ 0.32 | $ 0.99 | $ 0.90 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Consolidated Statements of Comprehensive Income | ||||
Net income | $ 1,766 | $ 1,884 | $ 5,786 | $ 5,294 |
Investment securities available-for-sale: | ||||
Unrealized gain (loss) on investment securities available-for-sale, net of tax | 84 | (294) | 984 | 1,788 |
Adjustment for gain on sale of investment securities, net of tax | 0 | (69) | 0 | (373) |
Defined benefit pension plans: | ||||
Amortization of prior service cost included in net periodic pension cost, net of tax | 15 | 12 | 42 | 36 |
Total other comprehensive income (loss) | 99 | (351) | 1,026 | 1,451 |
Total comprehensive income | $ 1,865 | $ 1,533 | $ 6,812 | $ 6,745 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (unaudited) - USD ($) $ in Thousands | Common Stock | Surplus | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total |
Balance at Dec. 31, 2015 | $ 5,605 | $ 38,549 | $ 48,700 | $ (2,018) | $ (3,550) | $ 87,286 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 0 | 0 | 5,294 | 0 | 0 | 5,294 |
Other comprehensive income | 0 | 0 | 0 | 1,451 | 0 | 1,451 |
Stock based compensation expense | 0 | 16 | 0 | 0 | 0 | 16 |
Purchase of treasury stock | 0 | 0 | 0 | 0 | (435) | (435) |
Stock dividend | 217 | 2,932 | (3,149) | 0 | 0 | 0 |
Cash dividends declared, common stock | 0 | 0 | (824) | 0 | 0 | (824) |
Balance at Sep. 30, 2016 | 5,822 | 41,497 | 50,021 | (567) | (3,985) | 92,788 |
Balance at Dec. 31, 2016 | 5,822 | 41,498 | 51,671 | (3,801) | (4,173) | 91,017 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 0 | 0 | 5,786 | 0 | 0 | 5,786 |
Other comprehensive income | 0 | 0 | 0 | 1,026 | 0 | 1,026 |
Stock based compensation expense | 0 | 3 | 0 | 0 | 0 | 3 |
Purchase of treasury stock | 0 | 0 | 0 | 0 | (623) | (623) |
Stock dividend | 225 | 3,940 | (4,165) | 0 | 0 | 0 |
Cash dividends declared, common stock | 0 | 0 | (1,137) | 0 | 0 | (1,137) |
Balance at Sep. 30, 2017 | $ 6,047 | $ 45,441 | $ 52,155 | $ (2,775) | $ (4,796) | $ 96,072 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 5,786 | $ 5,294 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 1,235 | 975 |
Depreciation expense | 1,399 | 1,432 |
Net amortization of investment securities, premiums, and discounts | 1,257 | 1,418 |
Stock based compensation expense | 3 | 16 |
Change in fair value of mortgage servicing rights | 72 | 690 |
Gain on sale of investment securities | 0 | (602) |
Loss (gain) on sales and dispositions of premises and equipment | 123 | (9) |
Gain on sales and dispositions of other real estate and repossessed assets | (42) | (215) |
Provision for other real estate owned | 243 | 176 |
Decrease in accrued interest receivable | 304 | 229 |
Increase in cash surrender value - life insurance | (55) | (48) |
Increase in other assets | (269) | (135) |
(Decrease) increase in accrued interest payable | (12) | 26 |
Decrease in other liabilities | (479) | (243) |
Origination of mortgage loans for sale | (26,446) | (27,849) |
Proceeds from the sale of mortgage loans | 26,261 | 28,769 |
Gain on sale of mortgage loans, net | (599) | (653) |
Other, net | (162) | (155) |
Net cash provided by operating activities | 8,619 | 9,116 |
Cash flows from investing activities: | ||
Net increase in loans | (70,572) | (85,087) |
Purchase of available-for-sale debt securities | (32,330) | (102,000) |
Proceeds from maturities of available-for-sale debt securities | 24,192 | 42,441 |
Proceeds from calls of available-for-sale debt securities | 7,675 | 13,535 |
Proceeds from sales of available-for-sale debt securities | 2,656 | 60,720 |
Proceeds from sales of FHLB stock | 1,239 | 0 |
Purchases of FHLB stock | (1,203) | (1,203) |
Purchases of premises and equipment | (1,017) | (881) |
Proceeds from sales of premises and equipment | 12 | 9 |
Proceeds from sales of other real estate and foreclosed assets | 1,001 | 3,613 |
Net cash used in investing activities | (68,347) | (68,853) |
Cash flows from financing activities: | ||
Net increase in demand deposits | 23,482 | 21,952 |
Net increase in interest-bearing transaction accounts | 70,844 | 36,865 |
Net increase in time deposits | 2,968 | 12,017 |
Net increase (decrease) in federal funds purchased and securities sold under agreements to repurchase | 1,048 | (28,330) |
Repayment of FHLB advances and other borrowings | (183,132) | (16,000) |
FHLB advances | 179,640 | 45,000 |
Purchase of treasury stock | (623) | (435) |
Cash dividends paid - common stock | (1,067) | (815) |
Net cash provided by financing activities | 93,160 | 70,254 |
Net increase in cash and cash equivalents | 33,432 | 10,517 |
Cash and cash equivalents, beginning of period | 26,995 | 28,377 |
Cash and cash equivalents, end of period | 60,427 | 38,894 |
Cash paid during the year for: | ||
Interest | 5,669 | 4,141 |
Income taxes | 2,940 | 2,705 |
Noncash investing activities: | ||
Other real estate and repossessed assets acquired in settlement of loans | $ 217 | $ 2,020 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (1) Summary of Significant Accounting Policies Hawthorn Bancshares, Inc. (the Company) through its subsidiary, Hawthorn Bank (the Bank), provides a broad range of banking services to individual and corporate customers located within the communities in and surrounding Jefferson City, Columbia, Clinton, Warsaw, Springfield, Branson, and the greater Kansas City metropolitan area. The Company is subject to competition from other financial and nonfinancial institutions providing financial products. Additionally, the Company and its subsidiaries are subject to the regulations of certain regulatory agencies and undergo periodic examinations by those regulatory agencies. The accompanying unaudited consolidated financial statements of the Company have been prepared in conformity with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q, and Rule 10-01 of Regulation S-X. Accordingly, the unaudited consolidated financial statements do not include all of the information and disclosures required by U.S. GAAP for complete financial statements and should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. The preparation of the consolidated financial statements includes all adjustments that, in the opinion of management, are necessary in order to make those statements not misleading. Management is required to make estimates and assumptions, including the determination of the allowance for loan losses, real estate acquired in connection with foreclosure or in satisfaction of loans, and fair values of investment securities available-for-sale that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company’s management has evaluated and did not identify any subsequent events or transactions requiring recognition or disclosure in the consolidated financial statements. Stock Dividend The following represents significant new accounting principles adopted in 2017: Stock Compensation Improvements to Employee Share-Based Payment Accounting |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2017 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans and Allowance for Loan Losses | (2) Loans and Allowance for Loan Losses Loans A summary of loans, by major class within the Company’s loan portfolio, at September 30, 2017 and December 31, 2016 is as follows: September 30, December 31, (in thousands) 2017 2016 Commercial, financial, and agricultural $ 184,868 $ 182,881 Real estate construction - residential 22,723 18,907 Real estate construction - commercial 91,102 55,653 Real estate mortgage - residential 250,736 259,900 Real estate mortgage - commercial 461,988 426,470 Installment and other consumer 33,630 30,218 Total loans $ 1,045,047 $ 974,029 The Bank grants real estate, commercial, installment, and other consumer loans to customers located within the communities surrounding Jefferson City, Columbia, Clinton, Warsaw, Springfield, Branson and the greater Kansas City metropolitan area. As such, the Bank is susceptible to changes in the economic environment in these communities. The Bank does not have a concentration of credit in any one economic sector. Installment and other consumer loans consist primarily of the financing of automotive vehicles. At September 30, 2017, $490.8 million of loans were pledged to the Federal Home Loan Bank as collateral for borrowings and letters of credit. Allowance for Loan Losses The following is a summary of the allowance for loan losses during the periods indicated. Three Months Ended September 30, 2017 Commercial, Real Estate Real Estate Real Estate Real Estate Installment Financial, & Construction - Construction - Mortgage - Mortgage - and Other Un- (in thousands) Agricultural Residential Commercial Residential Commercial Consumer allocated Total Balance at beginning of period $ 2,578 $ 70 $ 615 $ 1,854 $ 4,882 $ 376 $ 170 $ 10,545 Additions: Provision for loan losses 853 64 91 100 (426 ) 32 (159 ) 555 Deductions: Loans charged off 37 0 0 68 4 56 0 165 Less recoveries on loans (12 ) (12 ) 0 (11 ) (5 ) (25 ) 0 (65 ) Net loan charge-offs (recoveries) 25 (12 ) 0 57 (1 ) 31 0 100 Balance at end of period $ 3,406 $ 146 $ 706 $ 1,897 $ 4,457 $ 377 $ 11 $ 11,000 Nine Months Ended September 30, 2017 Commercial, Real Estate Real Estate Real Estate Real Estate Installment Financial, & Construction - Construction - Mortgage - Mortgage - and Other Un- (in thousands) Agricultural Residential Commercial Residential Commercial Consumer allocated Total Balance at beginning of period $ 2,753 $ 108 $ 413 $ 2,385 $ 3,793 274 $ 160 $ 9,886 Additions: Provision for loan losses 695 (49 ) 293 (407 ) 658 194 (149 ) 1,235 Deductions: Loans charged off 97 0 0 149 20 167 0 433 Less recoveries on loans (55 ) (87 ) 0 (68 ) (26 ) (76 ) 0 (312 ) Net loan charge-offs (recoveries) 42 (87 ) 0 81 (6 ) 91 0 121 Balance at end of period $ 3,406 $ 146 $ 706 $ 1,897 $ 4,457 $ 377 $ 11 $ 11,000 Three Months Ended September 30, 2016 Commercial, Real Estate Real Estate Real Estate Real Estate Installment Financial, & Construction - Construction - Mortgage - Mortgage - Loans to Un- (in thousands) Agricultural Residential Commercial Residential Commercial Individuals allocated Total Balance at beginning of period $ 2,996 $ 63 $ 249 $ 2,293 $ 3,411 $ 284 $ 96 $ 9,392 Additions: Provision for loan losses (94 ) (4 ) 44 (152 ) 450 50 6 300 Deductions: Loans charged off 157 0 0 92 27 86 0 362 Less recoveries on loans (26 ) 0 0 (31 ) (36 ) (47 ) 0 (140 ) Net loans charged off 131 0 0 61 (9 ) 39 0 222 Balance at end of period $ 2,771 $ 59 $ 293 $ 2,080 $ 3,870 $ 295 $ 102 $ 9,470 Nine Months Ended September 30, 2016 Commercial, Real Estate Real Estate Real Estate Real Estate Installment Financial, & Construction - Construction - Mortgage - Mortgage - Loans to Un- (in thousands) Agricultural Residential Commercial Residential Commercial Individuals allocated Total Balance at beginning of period $ 2,153 $ 59 $ 644 $ 2,439 $ 2,935 $ 273 $ 101 $ 8,604 Additions: Provision for loan losses 710 0 (852 ) 66 944 106 1 975 Deductions: Loans charged off 295 0 1 474 137 209 0 1,116 Less recoveries on loans (203 ) 0 (502 ) (49 ) (128 ) (125 ) 0 (1,007 ) Net loans charged off 92 0 (501 ) 425 9 84 0 109 Balance at end of period $ 2,771 $ 59 $ 293 $ 2,080 $ 3,870 $ 295 $ 102 $ 9,470 Loans, or portions of loans, are charged off to the extent deemed uncollectible or a loss is confirmed. Loan charge-offs reduce the allowance for loan losses, and recoveries of loans previously charged off are added back to the allowance. If management determines that it is probable that all amounts due on a loan will not be collected under the original terms of the loan agreement, the loan is considered to be impaired. These loans are evaluated individually for impairment, and in conjunction with current economic conditions and loss experience, specific reserves are estimated as further discussed below. Loans not individually evaluated are aggregated by risk characteristics and reserves are recorded using a consistent methodology that considers historical loan loss experience by loan type, delinquencies, current economic conditions, loan risk ratings and industry concentration. Beginning in the first quarter of 2016, the Company began to lengthen its look-back period with the intent to increase such period from three to five years over the next two years. The Company believes that the five-year look-back period, which is consistent with the Company’s practices prior to the start of the economic recession in 2008, provides a representative historical loss period in the current economic environment. The following table provides the balance in the allowance for loan losses at September 30, 2017 and December 31, 2016, and the related loan balance by impairment methodology. Commercial, Real Estate Real Estate Real Estate Real Estate Installment Financial, and Construction - Construction - Mortgage - Mortgage - and Other Un- (in thousands) Agricultural Residential Commercial Residential Commercial Consumer allocated Total September 30, 2017 Allowance for loan losses: Individually evaluated for impairment $ 929 $ 0 $ 0 $ 528 $ 258 $ 23 $ 0 $ 1,738 Collectively evaluated for impairment 2,477 146 706 1,369 4,199 354 11 9,262 Total $ 3,406 $ 146 $ 706 $ 1,897 $ 4,457 $ 377 $ 11 $ 11,000 Loans outstanding: Individually evaluated for impairment $ 3,522 $ 0 $ 0 $ 5,173 $ 2,023 $ 168 $ 0 $ 10,886 Collectively evaluated for impairment 181,346 22,723 91,102 245,563 459,965 33,462 0 1,034,161 Total $ 184,868 $ 22,723 $ 91,102 $ 250,736 $ 461,988 $ 33,630 $ 0 $ 1,045,047 December 31, 2016 Allowance for loan losses: Individually evaluated for impairment $ 469 $ 0 $ 7 $ 319 $ 277 $ 8 $ 0 $ 1,080 Collectively evaluated for impairment 2,284 108 406 2,066 3,516 266 160 8,806 Total $ 2,753 $ 108 $ 413 $ 2,385 $ 3,793 $ 274 $ 160 $ 9,886 Loans outstanding: Individually evaluated for impairment $ 1,617 $ 0 $ 49 $ 5,471 $ 1,918 $ 89 $ 0 $ 9,144 Collectively evaluated for impairment 181,264 18,907 55,604 254,429 424,552 30,129 0 964,885 Total $ 182,881 $ 18,907 $ 55,653 $ 259,900 $ 426,470 $ 30,218 $ 0 $ 974,029 Impaired Loans Loans evaluated under ASC 310-10-35 include loans which are individually evaluated for impairment. All other loans are collectively evaluated for impairment under ASC 450-20. Impaired loans individually evaluated for impairment totaled $10.9 million and $9.1 million at September 30, 2017 and December 31, 2016, respectively, and are comprised of loans on non-accrual status and loans which have been classified as troubled debt restructurings (TDRs). The net carrying value of impaired loans is based on the fair values of collateral obtained through independent appraisals or internal evaluations, or by discounting the total expected future cash flows. At September 30, 2017 and December 31, 2016, $7.1 million and $4.5 million, respectively, of impaired loans were evaluated based on the fair value less estimated selling costs of the loan’s collateral. Once the impairment amount is calculated, a specific reserve allocation is recorded. At September 30, 2017, $1.7 million of the Company’s allowance for loan losses was allocated to impaired loans totaling $10.9 million compared to $1.1 million of the Company's allowance for loan losses allocated to impaired loans totaling approximately $9.1 million at December 31, 2016. Management determined that $2.8 million, or 26%, of total impaired loans required no reserve allocation at September 30, 2017 compared to $2.1 million, or 23%, at December 31, 2016 primarily due to adequate collateral values , The categories of impaired loans at September 30, 2017 and December 31, 2016 are as follows: September 30, December 31, (in thousands) 2017 2016 Non-accrual loans $ 6,210 $ 3,429 Performing TDRs 4,676 5,715 Total impaired loans $ 10,886 $ 9,144 The following tables provide additional information about impaired loans at September 30, 2017 and December 31, 2016, respectively, segregated between loans for which an allowance has been provided and loans for which no allowance has been provided. Unpaid Recorded Principal Specific (in thousands) Investment Balance Reserves September 30, 2017 With no related allowance recorded: Commercial, financial and agricultural $ 1,442 $ 1,473 $ 0 Real estate - residential 1,024 1,049 0 Real estate - commercial 366 529 0 Total $ 2,832 $ 3,051 $ 0 With an allowance recorded: Commercial, financial and agricultural $ 2,080 $ 2,288 $ 929 Real estate - residential 4,149 4,220 528 Real estate - commercial 1,657 1,887 258 Installment and other consumer 168 185 23 Total $ 8,054 $ 8,580 $ 1,738 Total impaired loans $ 10,886 $ 11,631 $ 1,738 Unpaid Recorded Principal Specific (in thousands) Investment Balance Reserves December 31, 2016 With no related allowance recorded: Commercial, financial and agricultural $ 564 $ 706 $ 0 Real estate - residential 1,550 1,557 0 Total $ 2,114 $ 2,263 $ 0 With an allowance recorded: Commercial, financial and agricultural $ 1,053 $ 1,078 $ 469 Real estate - construction commercial 49 56 7 Real estate - residential 3,921 3,990 319 Real estate - commercial 1,918 1,988 277 Installment and other consumer 89 116 8 Total $ 7,030 $ 7,228 $ 1,080 Total impaired loans $ 9,144 $ 9,491 $ 1,080 The following table presents by class, information related to the average recorded investment and interest income recognized on impaired loans during the periods indicated. Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Interest Interest Interest Interest Average Recognized Average Recognized Average Recognized Average Recognized Recorded For the Recorded For the Recorded For the Recorded For the (in thousands) Investment Period Ended Investment Period Ended Investment Period Ended Investment Period Ended With no related allowance recorded: Commercial, financial and agricultural $ 481 $ 0 $ 460 $ -9 $ 478 $ 0 $ 491 $ 18 Real estate - residential 341 0 2,050 27 1,412 0 1,640 63 Real estate - commercial 77 3 1,167 17 221 9 1,769 17 Installment and other consumer 0 0 0 0 22 0 0 0 Total $ 899 $ 3 $ 3,677 $ 35 $ 2,133 $ 9 $ 3,900 $ 98 With an allowance recorded: Commercial, financial and agricultural $ 694 $ 8 $ 1,398 $ -13 $ 1,667 $ 24 $ 924 $ 9 Real estate - construction commercial 0 0 51 0 37 0 64 0 Real estate - residential 1,383 33 2,992 20 4,090 121 3,741 78 Real estate - commercial 597 17 811 14 1,772 46 717 61 Installment and other consumer 56 0 118 -1 70 0 123 0 Total $ 2,730 $ 58 $ 5,370 $ 20 $ 7,636 $ 191 $ 5,569 $ 148 Total impaired loans $ 3,629 $ 61 $ 9,047 $ 55 $ 9,769 $ 200 $ 9,469 $ 246 The recorded investment varies from the unpaid principal balance primarily due to partial charge-offs taken resulting from current appraisals received. The amount recognized as interest income on impaired loans continuing to accrue interest, primarily related to troubled debt restructurings, was $61,000 and $200,000, for the three months and nine months ended September 30, 2017, respectively, compared to $55,000 and $246,000 for the three and nine months ended September 30, 2016, respectively. The average recorded investment in impaired loans is calculated on a monthly basis during the periods reported. Delinquent and Non-Accrual Loans The delinquency status of loans is determined based on the contractual terms of the notes. Borrowers are generally classified as delinquent once payments become 30 days or more past due. The Company’s policy is to discontinue the accrual of interest income on any loan when, in the opinion of management, the ultimate collectability of interest or principal is no longer probable. In general, loans are placed on non-accrual when they become 90 days or more past due. However, management considers many factors before placing a loan on non-accrual, including the delinquency status of the loan, the overall financial condition of the borrower, the progress of management’s collection efforts and the value of the underlying collateral. Non-accrual loans are returned to accrual status when, in the opinion of management, the financial condition of the borrower indicates that the timely collectability of interest and principal is probable and the borrower demonstrates the ability to pay under the terms of the note through a sustained period of repayment performance, which is generally nine months. The following table provides aging information for the Company’s past due and non-accrual loans at September 30, 2017 and December 31, 2016. Current or 90 Days Less Than Past Due 30 Days 30 - 89 Days And Still (in thousands) Past Due Past Due Accruing Non-Accrual Total September 30, 2017 Commercial, Financial, and Agricultural $ 181,781 $ 82 $ 0 $ 3,005 $ 184,868 Real Estate Construction - Residential 22,723 0 0 0 22,723 Real Estate Construction - Commercial 91,005 97 0 0 91,102 Real Estate Mortgage - Residential 247,462 1,063 117 2,094 250,736 Real Estate Mortgage - Commercial 460,339 706 0 943 461,988 Installment and Other Consumer 33,224 177 61 168 33,630 Total $ 1,036,534 $ 2,125 $ 178 $ 6,210 $ 1,045,047 December 31, 2016 Commercial, Financial, and Agricultural $ 181,609 $ 290 $ 0 $ 982 $ 182,881 Real Estate Construction - Residential 18,681 226 0 0 18,907 Real Estate Construction - Commercial 55,603 0 0 50 55,653 Real Estate Mortgage - Residential 254,758 3,200 54 1,888 259,900 Real Estate Mortgage - Commercial 425,260 790 0 420 426,470 Installment and Other Consumer 29,920 198 11 89 30,218 Total $ 965,831 $ 4,704 $ 65 $ 3,429 $ 974,029 Credit Quality The Company categorizes loans into risk categories based upon an internal rating system reflecting management’s risk assessment. Loans are placed on watch substandard troubled debt restructuring TDR) non-accrual The following table presents the risk categories by class at September 30, 2017 and December 31, 2016. (in thousands) Commercial, Financial, & Agricultural Real Estate Construction - Residential Real Estate Construction - Commercial Real Estate Mortgage - Residential Real Estate Mortgage - Commercial Installment and Other Consumer Total At September 30, 2017 Watch $ 9,830 $ 1,236 $ 1,281 $ 10,330 $ 48,773 $ 0 $ 71,450 Substandard 900 462 97 2,296 728 20 4,503 Performing TDRs 517 0 0 3,080 1,079 0 4,676 Non-accrual 3,005 0 0 2,094 943 168 6,210 Total $ 14,252 $ 1,698 $ 1,378 $ 17,800 $ 51,523 $ 188 $ 86,839 At December 31, 2016 Watch $ 10,295 $ 665 $ 1,113 $ 16,577 $ 44,611 $ 0 $ 73,261 Substandard 798 640 0 2,159 426 24 4,047 Performing TDRs 635 0 0 3,582 1,498 0 5,715 Non-accrual 982 0 50 1,888 420 89 3,429 Total $ 12,710 $ 1,305 $ 1,163 $ 24,206 $ 46,955 $ 113 $ 86,452 Troubled Debt Restructurings At September 30, 2017, loans classified as TDRs totaled $5.7 million, of which $1.0 million were classified as nonperforming TDRs and included in non-accrual loans and $4.7 million were classified as performing TDRs. At December 31, 2016, loans classified as TDRs totaled $6.3 million, of which $619,000 were classified as nonperforming TDRs and included in non-accrual loans and $5.7 million were classified as performing TDRs. Both performing and nonperforming TDRs are considered impaired loans. When an individual loan is determined to be a TDR, the amount of impairment is based upon the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the underlying collateral less applicable selling costs. Accordingly, specific reserves of $531,000 and $410,000 related to TDRs were allocated to the allowance for loan losses at September 30, 2017 and December 31, 2016, respectively. The following table summarizes loans that were modified as TDRs during the periods indicated. Three Months Ended September 30, 2017 2016 Recorded Investment (1) Recorded Investment (1) (in thousands) Number of Pre- Post- Number of Pre- Post- Troubled Debt Restructurings Commercial, financial and agricultural 0 $ 0 $ 0 2 $ 32 $ 32 Real estate mortgage - residential 1 14 14 4 298 296 Total 1 $ 14 $ 14 6 $ 330 $ 328 Nine Months Ended September 30, 2017 2016 Recorded Investment (1) Recorded Investment (1) (in thousands) Number of Pre- Post- Number of Pre- Post- Troubled Debt Restructurings Commercial, financial and agricultural 1 $ 131 $ 130 2 $ 32 $ 32 Real estate mortgage - residential 1 14 14 5 376 374 Real estate mortgage - commercial 1 56 52 0 0 0 Total 3 $ 201 $ 196 7 $ 408 $ 406 (1) The amounts reported post-modification are inclusive of all partial pay-downs and charge-offs, and no portion of the debt was forgiven. Loans modified as a TDR that were fully paid down, charged-off or foreclosed upon during the period ended are not reported. The Company’s portfolio of loans classified as TDRs include concessions for the borrower given financial condition such as interest rates below the current market rate, deferring principal payments, and extending maturity dates. There was one loan and three loans meeting the TDR criteria during the three and nine months ended September 30, 2017, respectively, compared to six loans and seven loans during the three and nine months ended September 30, 2016, respectively. The Company considers a TDR to be in default when it is 90 days or more past due under the modified terms, a charge-off occurs, or it is the process of foreclosure. There were no loans modified as a TDR that defaulted during the three months ended September 30, 2017 and 2016, respectively, and within twelve months of their modification date. See Lending and Credit Management |
Other Real Estate and Repossess
Other Real Estate and Repossessed Assets | 9 Months Ended |
Sep. 30, 2017 | |
Other Real Estate [Abstract] | |
Other Real Estate and Repossessed Assets | (3) Other Real Estate and Repossessed Assets September 30, December 31, (in thousands) 2017 2016 Commercial $ 727 $ 809 Real estate construction - commercial 12,380 12,380 Real estate mortgage - residential 363 647 Real estate mortgage - commercial 2,909 3,439 Repossessed assets 0 16 Total $ 16,379 $ 17,291 Less valuation allowance for other real estate owned (3,202 ) (3,129 ) Total other real estate and repossessed assets $ 13,177 $ 14,162 Changes in the net carrying amount of other real estate and repossessed assets were as follows for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Balance at beginning of period $ 16,530 $ 18,462 $ 17,291 $ 19,225 Additions 62 386 217 2,020 Proceeds from sales (217 ) (1,214 ) (1,001 ) (3,613 ) Charge-offs against the valuation allowance for other real estate owned, net 0 (48 ) (170 ) (149 ) Net gain on sales 4 112 42 215 Total other real estate and repossessed assets $ 16,379 $ 17,698 $ 16,379 $ 17,698 Less valuation allowance for other real estate owned (3,202 ) (3,260 ) (3,202 ) (3,260 ) Balance at end of period $ 13,177 $ 14,438 $ 13,177 $ 14,438 At September 30, 2017 $101,000 of consumer mortgage loans secured by residential real estate properties were in the process of foreclosure compared to $162,000 at December 31, 2016. Activity in the valuation allowance for other real estate owned was as follows for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2017 2016 2017 2016 Balance, beginning of period $ 3,174 $ 3,208 $ 3,129 $ 3,233 Provision for other real estate owned 28 100 243 176 Charge-offs 0 (48 ) (170 ) (149 ) Balance, end of period $ 3,202 $ 3,260 $ 3,202 $ 3,260 |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2017 | |
Investments Debt And Equity Securities [Abstract] | |
Investment Securities | (4) Investment Securities The amortized cost and fair value of debt securities classified as available-for-sale at September 30, 2017 and December 31, 2016 were as follows: Total Amortized Gross Unrealized Fair ( in thousands) Cost Gains Losses Value September 30, 2017 U.S. government and federal agency obligations $ 12,653 $ 0 $ (180 ) $ 12,473 Government sponsored enterprises 32,854 0 (235 ) 32,619 Obligations of states and political subdivisions 47,730 246 (250 ) 47,726 Mortgage-backed securities: Residential - government agencies 119,961 140 (1,265 ) 118,836 Commercial - government agencies 987 9 0 996 Total mortgage-backed securities 120,948 149 (1,265 ) 119,832 Total available-for-sale securities $ 214,185 $ 395 $ (1,930 ) $ 212,650 December 31, 2016 U.S. government and federal agency obligations $ 13,667 $ 0 $ (303 ) $ 13,364 Government sponsored enterprises 32,786 2 (329 ) 32,459 Obligations of states and political subdivisions 42,666 123 (757 ) 42,032 Mortgage-backed securities: Residential - government agencies 127,527 124 (1,995 ) 125,656 Commercial - government agencies 989 12 0 1,001 Total mortgage-backed securities 128,516 136 (1,995 ) 126,657 Total available-for-sale securities $ 217,635 $ 261 $ (3,384 ) $ 214,512 All of the Company’s investment securities are classified as available for sale. Agency bonds and notes, small business administration guaranteed loan certificates (SBA), residential and commercial agency mortgage-backed securities, and agency collateralized mortgage obligations (CMO) include securities issued by the Government National Mortgage Association (GNMA), a U.S. government agency, and the Federal National Mortgage Association (FNMA), the Federal Home Loan Mortgage Corporation (FHLMC) and the Federal Home Loan Bank (FHLB), which are U.S. government-sponsored enterprises. Other Investments and securities primarily consist of Federal Home Loan Bank stock, subordinated debt equity securities, and the Company’s interest in statutory trusts. These securities are reported at cost in other assets in the amount of $9.8 million as of both September 30, 2017 and December 31, 2016, respectively. Debt securities with carrying values aggregating approximately $173.1 million and $167.6 million at September 30, 2017 and December 31, 2016, respectively, were pledged to secure public funds, securities sold under agreements to repurchase, and for other purposes as required or permitted by law. The amortized cost and fair value of debt securities classified as available-for-sale at September 30, 2017, by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers have the right to call or prepay obligations with or without prepayment penalties. Amortized Fair ( in thousands) Cost Value Due in one year or less $ 6,864 $ 6,858 Due after one year through five years 56,996 56,846 Due after five years through ten years 25,307 25,081 Due after ten years 4,070 4,033 Total 93,237 92,818 Mortgage-backed securities 120,948 119,832 Total available-for-sale securities $ 214,185 $ 212,650 Gross unrealized losses on debt securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2017 and December 31, 2016 were as follows: Less than 12 months 12 months or more Total Total Fair Unrealized Fair Unrealized Fair Unrealized (in thousands) Value Losses Value Losses Value Losses At September 30, 2017 U.S. government and federal agency obligations $ 486 $ 0 $ 11,987 $ (180 ) $ 12,473 $ (180 ) Government sponsored enterprises 16,278 (69 ) 16,041 (166 ) 32,319 (235 ) Obligations of states and political subdivisions 10,820 (35 ) 12,535 (215 ) 23,355 (250 ) Mortgage-backed securities: Residential - government agencies 48,651 (341 ) 51,735 (924 ) 100,386 (1,265 ) Total $ 76,235 $ (445 ) $ 92,298 $ (1,485 ) $ 168,533 $ (1,930 ) (in thousands) At December 31, 2016 U.S. government and federal agency obligations $ 13,365 $ (303 ) $ 0 $ 0 $ 13,365 $ (303 ) Government sponsored enterprises 29,432 (329 ) 0 0 29,432 (329 ) Obligations of states and political subdivisions 32,318 (757 ) 0 0 32,318 (757 ) Mortgage-backed securities: Residential - government agencies 109,772 (1,848 ) 3,742 (147 ) 113,514 (1,995 ) Total $ 184,887 $ (3,237 ) $ 3,742 $ (147 ) $ 188,629 $ (3,384 ) The total available for sale portfolio consisted of approximately 329 securities at September 30, 2017. The portfolio included 204 securities having an aggregate fair value of $168.5 million that were in a loss position at September 30, 2017. Securities identified as temporarily impaired which had been in a loss position for 12 months or longer totaled $92.3 million at fair value. The $1.9 million aggregate unrealized loss included in accumulated other comprehensive income at September 30, 2017 was caused by interest rate fluctuations The total available for sale portfolio consisted of approximately 298 securities at December 31, 2016. The portfolio included 216 securities having an aggregate fair value of $188.6 million that were in a loss position at December 31, 2016. Securities identified as temporarily impaired which had been in a loss position for 12 months or longer had a fair value of $3.7 million at December 31, 2016. The $3.4 million aggregate unrealized loss included in accumulated other comprehensive income at December 31, 2016 was caused by interest rate fluctuations. Because the decline in fair value is attributable to changes in interest rates and not credit quality, these investments were not considered other-than-temporarily impaired at September 30, 2017 and December 31, 2016, respectively. In the absence of changes in credit quality of these investments, the fair value is expected to recover on all debt securities as they approach their maturity date or re-pricing date, or if market yields for such investments decline. In addition, the Company does not have the intent to sell these investments over the period of recovery, and it is not more likely than not that the Company will be required to sell such investment securities. The table presents the components of investment securities gains and losses, which have been recognized in earnings: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2017 2016 2017 2016 Gains realized on sales $ 12 $ 132 $ 12 $ 623 Losses realized on sales (12 ) (21 ) (12 ) (21 ) Other-than-temporary impairment recognized 0 0 0 0 Investment securities gains $ 0 $ 111 $ 0 $ 602 |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2017 | |
Intangible Assets | |
Intangible Assets | (5) Intangible Assets Mortgage Servicing Rights At September 30, 2017, the Company was servicing approximately $288.7 million of loans sold to the secondary market compared to $294.4 million at December 31, 2016, and $299.7 million at September 30, 2016. Mortgage loan servicing fees, reported as non-interest income, earned on loans sold were $209,000 and $629,000 for the three and nine months ended September 30, 2017, respectively, compared to $233,000 and $654,000 for the three and nine months ended September 30, 2016, respectively. The table below presents changes in mortgage servicing rights (MSRs) for the periods indicated. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2017 2016 2017 2016 Balance at beginning of period $ 2,766 $ 2,511 $ 2,584 $ 2,847 Originated mortgage servicing rights 61 96 176 213 Changes in fair value: Due to change in model inputs and assumptions (1) (30 ) (52 ) 289 (197 ) Other changes in fair value (2) (109 ) (185 ) (361 ) (493 ) Balance at end of period $ 2,688 $ 2,370 $ 2,688 $ 2,370 (1) The change in fair value resulting from changes in valuation inputs or assumptions used in the valuation model reflects the change in discount rates and prepayment speed assumptions primarily due to changes in interest rates. (2) Other changes in fair value reflect changes due to customer payments and passage of time. The following key data and assumptions were used in estimating the fair value of the Company’s MSRs as of the nine months ended September 30, 2017 and 2016: Nine Months Ended September 30, 2017 2016 Weighted average constant prepayment rate 10.11 % 13.20 % Weighted average note rate 3.86 % 3.88 % Weighted average discount rate 9.78 % 9.20 % Weighted average expected life (in years) 5.80 4.80 |
Federal funds purchased and sec
Federal funds purchased and securities sold under agreements to repurchase | 9 Months Ended |
Sep. 30, 2017 | |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase [Abstract] | |
Federal funds purchased and securities sold under agreements to repurchase | (6) Federal funds purchased and securities sold under agreements to repurchase September 30, December 31, 2017 2016 Federal funds purchased $ 0 $ 992 Repurchase agreements 32,555 30,023 Total $ 32,555 $ 31,015 The Company offers a sweep account program whereby amounts in excess of an established limit are “swept” from the customer’s demand deposit account on a daily basis into retail repurchase agreements pursuant to individual repurchase agreements between the Company and its customers . . Repurchase Agreements Remaining Contractual Maturity of the Agreements Overnight Less Greater and than than (in thousands) continuous 90 days 90 days Total At September 30, 2017 U.S. government and federal agency obligations $ 3,225 $ 0 $ 0 $ 3,225 Government sponsored enterprises 9,134 0 0 9,134 Asset-backed securities 20,196 0 0 20,196 Total $ 32,555 $ 0 $ 0 $ 32,555 At December 31, 2016 U.S. government and federal agency obligations $ 3,489 $ 0 $ 0 $ 3,489 Government sponsored enterprises 7,324 0 0 7,324 Asset-backed securities 19,210 0 0 19,210 Total $ 30,023 $ 0 $ 0 $ 30,023 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (7) Income Taxes Income taxes as a percentage of earnings before income taxes as reported in the consolidated financial statements were 32.4% for the three months ended September 30, 2017 compared to 34.7% for the three months ended September 30, 2016. Income taxes as a percentage of earnings before income taxes as reported in the consolidated financial statements were 33.6% for the nine months ended September 30, 2017 compared to 33.8% for the nine months ended September 30, 2016. The decrease in the tax rate for the quarter ended September 30, 2017 in comparison to the quarter ended September 30, 2016, is primarily due to an immaterial 2016 return to provision adjustment made in the third quarter of 2017, as opposed to an immaterial 2015 return to provision adjustment made in the first quarter of 2016. The tax rate was consistent for both the nine months ended September 30, 2017 and 2016. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income of the appropriate character during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, taxable income available in carryback years, and tax planning strategies in making this assessment. With the exception of certain capital losses generated during 2013 and 2014, it is management’s opinion that the Company will more likely than not realize the benefits of these temporary differences as of September 30, 2017 and, therefore, only established a valuation reserve against the Company’s capital loss carry forward. Management arrived at this conclusion based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible. As indicated above, the Company generated approximately $219,000 of capital losses during 2013 and 2014 as a result of disposing of certain limited partnership interests. The capital losses will expire between 2018 and 2019, and it is management’s opinion that the Company will not more likely than not generate the capital gain income necessary to utilize the capital loss carry forwards before the capital losses expire. As such, the Company has established an $83,000 valuation reserve against its capital loss carry forward deferred tax asset. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | (8) Stockholders’ Equity Accumulated Other Comprehensive Loss The following details the change in the components of the Company’s accumulated other comprehensive loss for the nine months ended September 30, 2017 and 2016: Nine months ended September 30, 2017 Unrecognized Net Accumulated Unrealized Pension and Other Gain (Loss) Postretirement Comprehensive (in thousands) on Securities (1) Costs (2) Loss Balance at beginning of period $ (1,936 ) $ (1,865 ) $ (3,801 ) Other comprehensive income, before reclassifications 1,588 67 1,655 Amounts reclassified from accumulated other comprehensive income (loss) 0 0 0 Current period other comprehensive income, before tax 1,588 67 1,655 Income tax expense (604 ) (25 ) (629 ) Current period other comprehensive income, net of tax 984 42 1,026 Balance at end of period $ (952 ) $ (1,823 ) $ (2,775 ) Nine months ended September 30, 2016 Unrecognized Net Accumulated Unrealized Pension and Other Gain (Loss) Postretirement Comprehensive (in thousands) on Securities (1) Costs (2) Loss Balance at beginning of period $ (591 ) $ (1,427 ) $ (2,018 ) Other comprehensive income, before reclassifications 2,884 59 2,943 Amounts reclassified from accumulated other comprehensive income (loss) (602 ) 0 (602 ) Current period other comprehensive income, before tax 2,282 59 2,341 Income tax expense (867 ) (23 ) (890 ) Current period other comprehensive income, net of tax 1,415 36 1,451 Balance at end of period $ 824 $ (1,391 ) $ (567 ) (1) The pre-tax amounts reclassified from accumulated other comprehensive loss are included in gain on sale of investment securities (2) The pre-tax amounts reclassified from accumulated other comprehensive loss are included in the computation of net periodic pension cost. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | (9) Employee Benefit Plans Employee Benefits Employee benefits charged to operating expenses are summarized in the table below for the periods indicated. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2017 2016 2017 2016 Payroll taxes $ 267 $ 251 $ 911 $ 883 Medical plans 595 415 1,489 1,414 401k match and profit sharing 218 201 694 585 Pension plan 349 307 1,052 920 Other 17 56 42 118 Total employee benefits $ 1,446 $ 1,230 $ 4,188 $ 3,920 The Company’s profit-sharing plan includes a matching 401k portion, in which the Company matches the first 3% of eligible employee contributions. The Company made annual contributions in an amount up to 6% of income before income taxes and before contributions to the profit-sharing and pension plans for all participants, limited to the maximum amount deductible for federal income tax purposes, for each of the periods shown. In addition, employees were able to make additional tax-deferred contributions. Pension The Company provides a noncontributory defined benefit pension plan for all full-time employees. An employer is required to recognize the funded status of a defined benefit postretirement plan as an asset or liability in its balance sheet and to recognize changes in that funded status in the year in which the changes occur through comprehensive income. Under the Company’s funding policy for the defined benefit pension plan, contributions are made to a trust as necessary to provide for current service and for any unfunded accrued actuarial liabilities over a reasonable period. To the extent that these requirements are fully covered by assets in the trust, a contribution might not be made in a particular year. The Company made a pension contribution in the amount of $1.2 million on September 11, 2017. The minimum required contribution for 2017 is $842,000. Effective July 1, 2017, the Company amended the pension plan to effectuate a “soft freeze” such that no individual hired (or rehired in the case of a former employee) by the Company after September 30, 2017, whether or not such individual is or was a vested member in the plan, will be eligible to be an active member and be entitled to accrue any benefits under the plan. Certain individuals hired by the Company before July 1, 2017 are also not eligible to participate in the plan. Beginning in 2019, the Company anticipates that there may be a small reduction in the overall liability and service cost resulting from the closure of the plan to new entrants. Components of Net Pension Cost and Other Amounts Recognized in Accumulated Other Comprehensive Income The following items are components of net pension cost for the periods indicated: Estimated Actual (in thousands) 2017 2016 Service cost - benefits earned during the year $ 1,343 $ 1,179 Interest costs on projected benefit obligations 1,008 956 Expected return on plan assets (1,126 ) (1,057 ) Expected administrative expenses 88 70 Amortization of prior service cost 79 79 Amortization of unrecognized net loss 11 0 Net periodic pension expense $ 1,403 $ 1,227 Pension expense - three months ended September 30, (actual) $ 349 $ 307 Pension expense - nine months ended September 30, (actual) $ 1,052 $ 920 |
Stock Compensation
Stock Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Compensation | (10) Stock Compensation The Company’s stock option plan provides for the grant of options to purchase up to 601,627 shares of the Company’s common stock to officers and other key employees of the Company and its subsidiaries. All options have been granted at exercise prices equal to fair value and vest over periods ranging from four to five years. The following table summarizes the Company’s stock option activity: Weighted Weighted Average Aggregate Number Average Contractual Intrinsic of Exercise Term Value Shares Price (in years) ($000) Outstanding, December 31, 2016 46,244 $ 19.33 Granted 0 0.00 Exercised 0 0.00 Forfeited or expired (26,141 ) 22.84 Outstanding, September 30, 2017 20,103 $ 14.77 0.98 $ 119,226 Exercisable, September 30, 2017 20,103 $ 14.77 0.98 $ 119,226 Options have been adjusted to reflect a 4% stock dividend paid on July 1, 2017. Total stock-based compensation expense was $1,000 and $3,000 for the three and nine months ended September 30, 2017, respectively, compared to $5,000 and $16,000 for the three and nine months ended September 30, 2016, respectively. As of September 30, 2017, there was no remaining unrecognized compensation expense related to non-vested stock awards. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per Share | (11) Earnings per Share Stock Dividend Basic earnings per share is computed by dividing income available to shareholders by the weighted average number of shares outstanding during the year. Diluted earnings per share gives effect to all dilutive potential shares that were outstanding during the year. The calculations of basic and diluted earnings per share are as follows for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, (dollars in thousands, except per share data) 2017 2016 2017 2016 Basic earnings per share: Net income available to shareholders $ 1,766 $ 1,884 $ 5,786 $ 5,294 Basic earnings per share $ 0.30 $ 0.32 $ 0.99 $ 0.90 Diluted earnings per share: Net income available to shareholders $ 1,766 $ 1,884 $ 5,786 $ 5,294 Average shares outstanding 5,825,825 5,859,415 5,834,679 5,869,569 Effect of dilutive stock options 5,561 0 5,198 0 Average shares outstanding including dilutive stock options 5,831,386 5,859,415 5,839,877 5,869,569 Diluted earnings per share $ 0.30 $ 0.32 $ 0.99 $ 0.90 Under the treasury stock method, outstanding stock options are dilutive when the average market price of the Company’s common stock, when combined with the effect of any unamortized compensation expense, exceeds the option price during the period, except when the Company has a loss from continuing operations available to shareholders. In addition, proceeds from the assumed exercise of dilutive options along with the related tax benefit are assumed to be used to repurchase common shares at the average market price of such stock during the period. Options to purchase 46,244 shares during the three and nine months ended September 30, 2016, respectively, were not included in the respective computations of diluted earnings per share because the exercise price of the option, when combined with the effect of the unamortized compensation expense, was greater than the average market price of the common shares and were considered anti-dilutive. There were no anti-dilutive shares for the three and nine months ended September 30, 2017. Repurchase Program On August 6, 2015, the Board of Directors authorized a share repurchase plan to purchase through open market transactions $2.0 million market value of the Company’s common stock. On August 8, 2017 the Board authorized the repurchase of an additional $1.5 million market value of the Company’s common stock. As of September 30, 2017, the Company had repurchased a total of 74,608 shares of common stock pursuant to the plan at an average price of $17.15 per share, including 30,715 shares of common stock repurchased pursuant to the plan during the nine months ended September 30, 2017 at an average price of $20.30 per share. At September 30, 2017, approximately $2.2 million remained available for the purchase of shares under the plan. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (12) Fair Value Measurements The Company uses fair value measurements to record fair value adjustments to certain financial and nonfinancial assets and liabilities. The FASB ASC Topic 820, Fair Value Measurements and Disclosures, The fair value hierarchy is as follows: Level 1 – Inputs are unadjusted quoted prices for identical assets or liabilities in active markets. Level 2 – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets and liabilities in active markets, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 – Inputs are unobservable inputs for the asset or liability and significant to the fair value. These may be internally developed using the Company’s best information and assumptions that a market participant would consider. ASC Topic 820 also provides guidance on determining fair value when the volume and level of activity for the asset or liability have significantly decreased and on identifying circumstances when a transaction may not be considered orderly. The Company is required to disclose assets and liabilities measured at fair value on a recurring basis separate from those measured at fair value on a nonrecurring basis. Nonfinancial assets measured at fair value on a nonrecurring basis would include foreclosed real estate, long-lived assets, and core deposit intangible assets, which are reviewed when circumstances or other events indicate that impairment may have occurred. Valuation Methods for Instruments Measured at Fair Value on a Recurring Basis Following is a description of the Company’s valuation methodologies used for assets and liabilities recorded at fair value on a recurring basis: Available-for-Sale Securities The fair value measurements of the Company’s investment securities are determined by a third party pricing service which considers observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. The fair value measurements are subject to independent verification to another pricing source by management each quarter for reasonableness. Securities classified as available-for-sale are reported at fair value utilizing Level 2 inputs. Mortgage Servicing Rights The fair value of mortgage servicing rights is based on the discounted value of estimated future cash flows utilizing contractual cash flows, servicing rate, constant prepayment rate, servicing cost, and discount rate factors. Accordingly, the fair value is estimated based on a valuation model that calculates the present value of estimated future net servicing income. The model incorporates assumptions that market participants use in estimating future net servicing income, including estimates of prepayment speeds, market discount rates, cost to service, float earnings rates, and other ancillary income, including late fees. The valuation models estimate the present value of estimated future net servicing income. The Company classifies its servicing rights as Level 3. Fair Value Measurements Quoted Prices in Active Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs (in thousands) Fair Value (Level 1) (Level 2) (Level 3) September 30, 2017 Assets: U.S. government and federal agency obligations $ 12,473 $ 0 $ 12,473 $ 0 Government sponsored enterprises 32,619 0 32,619 0 Obligations of states and political subdivisions 47,726 0 47,726 0 Mortgage-backed securities 119,832 0 119,832 0 Mortgage servicing rights 2,688 0 0 2,688 Total $ 215,338 $ 0 $ 212,650 $ 2,688 December 31, 2016 Assets: U.S. government and federal agency obligations $ 13,364 $ 0 $ 13,364 $ 0 Government sponsored enterprises 32,459 0 32,459 0 Obligations of states and political subdivisions 42,032 0 42,032 0 Mortgage-backed securities 126,657 0 126,657 0 Mortgage servicing rights 2,584 0 0 2,584 Total $ 217,096 $ 0 $ 214,512 $ 2,584 The changes in Level 3 assets and liabilities measured at fair value on a recurring basis are summarized as follows: Fair Value Measurements Using Fair Value Measurements Using Significant Unobservable Inputs Significant Unobservable Inputs (Level 3) (Level 3) Mortgage Servicing Rights Mortgage Servicing Rights (in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Balance at beginning of period $ 2,766 $ 2,511 $ 2,584 $ 2,847 Total gains or losses (realized/unrealized): Included in earnings (139 ) (237 ) (72 ) (690 ) Included in other comprehensive income 0 0 0 0 Purchases 0 0 0 0 Sales 0 0 0 0 Issues 61 96 176 213 Settlements 0 0 0 0 Balance at end of period $ 2,688 $ 2,370 $ 2,688 $ 2,370 The change in valuation of mortgage servicing rights arising from inputs and assumptions decreased $30,000 and increased $289,000 for the three and nine months ended September 30, 2017, respectively, compared to decreases of $52,000 and $197,000 for the three and nine months ended September 30, 2016, respectively. Quantitative Information about Level 3 Fair Value Measurements Valuation Technique Unobservable Inputs Input Value Nine Months Ended September 30, 2017 2016 Mortgage servicing rights Discounted cash flows Weighted average constant prepayment rate 10.11 % 13.20 % Weighted average note rate 3.86 % 3.88 % Weighted average discount rate 9.78 % 9.20 % Weighted average expected life (in years) 5.80 4.80 Valuation methods for instruments measured at fair value on a nonrecurring basis Following is a description of the Company’s valuation methodologies used for assets and liabilities recorded at fair value on a nonrecurring basis: Impaired Loans The Company does not record loans at fair value on a recurring basis other than loans that are considered impaired. The net carrying value of impaired loans is generally based on fair values of the underlying collateral obtained through independent appraisals or internal evaluations, or by discounting the total expected future cash flows. Once the fair value of the collateral has been determined and any impairment amount calculated, a specific reserve allocation is made. Because many of these inputs are not observable, the measurements are classified as Level 3. As of September 30, 2017, the Company identified $8.0 million in impaired loans that had specific allowances for losses aggregating $1.7 million. Related to these loans, there was $64,000 and $147,000 in charge-offs recorded during the three and nine months ended September 30, 2017, respectively. As of September 30, 2016, the Company identified $7.1 million in impaired loans that had specific allowances for losses aggregating $1.3 million. Related to these loans, there was $153,000 and $920,000 in charge-offs recorded during the three and nine months ended September 30, 2016, respectively. Other Real Estate and Foreclosed Assets Other real estate and foreclosed assets consisted of loan collateral that has been repossessed through foreclosure. This collateral is comprised of commercial and residential real estate and other non-real estate property, including autos, manufactured homes, and construction equipment. Other real estate assets are recorded as held for sale initially at the lower of the loan balance or fair value of the collateral less estimated selling costs. The Company relies on external appraisals and assessment of property values by internal staff. In the case of non-real estate collateral, reliance is placed on a variety of sources, including external estimates of value and judgment based on experience and expertise of internal specialists. Subsequent to foreclosure, valuations are updated periodically, and the assets may be written down to reflect a new cost basis. Because many of these inputs are not observable, the measurements are classified as Level 3. Fair Value Measurements Using Quoted Prices Three Nine in Active Months Months Markets for Other Significant Ended Ended Identical Observable Unobservable September 30, September 30, Total Assets Inputs Inputs Total Gains Total Gains (in thousands) Fair Value (Level 1) (Level 2) (Level 3) (Losses)* (Losses)* September 30, 2017 Assets: Impaired loans: Commercial, financial, & agricultural $ 1,151 $ 0 $ 0 $ 1,151 $ 0 $ (1 ) Real estate mortgage - residential 3,621 0 0 3,621 (57 ) (122 ) Real estate mortgage - commercial 1,399 0 0 1,399 0 (4 ) Consumer 145 0 0 145 (7 ) (20 ) Total $ 6,316 $ 0 $ 0 $ 6,316 $ (64 ) $ (147 ) Other real estate and foreclosed assets $ 13,177 $ 0 $ 0 $ 13,177 $ (26 ) $ (206 ) September 30, 2016 Assets: Impaired loans: Commercial, financial, & agricultural $ 392 $ 0 $ 0 $ 392 $ 0 $ (359 ) Real estate construction - commercial 43 0 0 43 0 0 Real estate mortgage - residential 3,464 0 0 3,464 (80 ) (295 ) Real estate mortgage - commercial 1,806 0 0 1,806 (71 ) (248 ) Consumer 103 0 0 103 (2 ) (18 ) Total $ 5,808 $ 0 $ 0 $ 5,808 $ (153 ) $ (920 ) Other real estate and foreclosed assets $ 14,438 $ 0 $ 0 $ 14,438 $ 21 $ 70 * Total gains (losses) reported for other real estate and foreclosed assets includes charge-offs, valuation write downs, and net losses taken during the periods reported. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2017 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
Fair Value of Financial Instruments | (13) Fair Value of Financial Instruments The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate such value: Loans The fair values of loans are estimated by discounting the expected future cash flows using the current rates at which similar loans could be made to borrowers with similar credit ratings and for the same remaining maturities Investment Securities A detailed description of the fair value measurement of the debt instruments in the available-for-sale sections of the investment security portfolio is provided in the Fair Value Measurement Investment Securities Federal Home Loan Bank (FHLB) Stock Ownership of equity securities of FHLB is restricted and there is no established market for their resale. The carrying amount is a reasonable estimate of fair value. Federal Funds Sold, Cash, and Due from Banks The carrying amounts of short-term federal funds sold and securities purchased under agreements to resell, interest earning deposits with banks, and cash and due from banks approximate fair value. Federal funds sold and securities purchased under agreements to resell classified as short-term generally mature in 90 days or less. Mortgage Servicing Rights The fair value of mortgage servicing rights is based on the discounted value of estimated future cash flows utilizing contractual cash flows, servicing rate, constant prepayment rate, servicing cost, and discount rate factors. Accordingly, the fair value is estimated based on a valuation model that calculates the present value of estimated future net servicing income. The model incorporates assumptions that market participants use in estimating future net servicing income, including estimates of prepayment speeds, market discount rates, cost to service, float earnings rates, and other ancillary income, including late fees. Cash Surrender Value - Life Insurance The fair value of Bank owned life insurance (BOLI) approximates the carrying amount. Upon liquidation of these investments, the Company would receive the cash surrender value which equals the carrying amount. Accrued Interest Receivable and Payable For accrued interest receivable and payable, the carrying amount is a reasonable estimate of fair value because of the short maturity for these financial instruments. Deposits The fair value of deposits with no stated maturity, such as noninterest-bearing demand, NOW accounts, savings, and money market, is equal to the amount payable on demand. The fair value of time deposits is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. Securities Sold under Agreements to Repurchase and Interest-bearing Demand Notes to U.S. Treasury For securities sold under agreements to repurchase and interest-bearing demand notes to U.S. Treasury, the carrying amount is a reasonable estimate of fair value, as such instruments reprice in a short time period. Subordinated Notes and Other Borrowings The fair value of subordinated notes and other borrowings is based on the discounted value of contractual cashflows. The discount rate is estimated using the rates currently offered for other borrowed money of similar remaining maturities. A summary of the carrying amounts and fair values of the Company’s financial instruments at September 30, 2017 and December 31, 2016 is as follows: September 30, 2017 Fair Value Measurements Quoted Prices in Active Net Markets for Other Significant September 30, 2017 Identical Observable Unobservable Carrying Fair Assets Inputs Inputs (in thousands) Amount Value (Level 1) (Level 2) (Level 3) Assets: Cash and due from banks $ 19,200 $ 19,200 $ 19,200 $ 0 $ 0 Federal funds sold and overnight interest-bearing deposits 41,227 41,227 41,227 0 0 Investment in available-for-sale securities 212,650 212,650 0 212,650 0 Loans, net 1,034,047 1,020,755 0 0 1,020,755 Investment in FHLB stock 5,113 5,113 0 5,113 0 Mortgage servicing rights 2,688 2,688 0 0 2,688 Cash surrender value - life insurance 2,464 2,464 0 2,464 0 Accrued interest receivable 4,879 4,879 4,879 0 0 $ 1,322,268 $ 1,308,976 $ 65,306 $ 220,227 $ 1,023,443 Liabilities: Deposits: Non-interest bearing demand $ 259,457 $ 259,457 $ 259,457 $ 0 $ 0 Savings, interest checking and money market 539,575 539,575 539,575 0 0 Time deposits 308,928 308,696 0 0 308,696 Federal funds purchased and securities sold under agreements to repurchase 32,555 32,555 32,555 0 0 Subordinated notes 49,486 36,228 0 36,228 0 Federal Home Loan Bank advances 89,408 89,827 0 89,827 0 Accrued interest payable 486 486 486 0 0 $ 1,279,895 $ 1,266,824 $ 832,073 $ 126,055 $ 308,696 December 31, 2016 Fair Value Measurements Quoted Prices in Active Net Markets for Other Significant December 31, 2016 Identical Observable Unobservable Carrying Fair Assets Inputs Inputs (in thousands) amount value (Level 1) (Level 2) (Level 3) Assets: Cash and due from banks $ 25,589 $ 25,589 $ 25,589 $ 0 $ 0 Federal funds sold and overnight interest-bearing deposits 1,406 1,406 1,406 0 0 Investment in available-for-sale securities 214,512 214,512 0 214,512 0 Loans, net 964,143 959,929 0 0 959,929 Investment in FHLB stock 5,149 5,149 0 5,149 0 Mortgage servicing rights 2,584 2,584 0 0 2,584 Cash surrender value - life insurance 2,409 2,409 0 2,409 0 Accrued interest receivable 5,183 5,183 5,183 0 0 $ 1,220,975 $ 1,216,761 $ 32,178 $ 222,070 $ 962,513 Liabilities: Deposits: Non-interest bearing demand $ 235,975 $ 235,975 $ 235,975 $ 0 $ 0 Savings, interest checking and money market 468,731 468,731 468,731 0 0 Time deposits 305,960 304,334 0 0 304,334 Federal funds purchased and securities sold under agreements to repurchase 31,015 31,015 31,015 0 0 Subordinated notes 49,486 33,712 0 33,712 0 Other borrowings 93,392 93,209 0 93,209 0 Accrued interest payable 498 498 498 0 0 $ 1,185,057 $ 1,167,474 $ 736,219 $ 126,921 $ 304,334 Off-Balance Sheet Financial Instruments The fair value of commitments to extend credit and standby letters of credit is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements, the likelihood of the counterparties drawing on such financial instruments, and the present creditworthiness of such counterparties. The Company believes such commitments have been made on terms that are competitive in the markets in which it operates. Limitations The fair value estimates provided are made at a point in time based on market information and information about the financial instruments. Because no market exists for a portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the fair value estimates. |
Repurchase Reserve Liability
Repurchase Reserve Liability | 9 Months Ended |
Sep. 30, 2017 | |
Repurchase Reserve Liability [Abstract] | |
Repurchase Reserve Liability | (14) Repurchase Reserve Liability The Company’s repurchase reserve liability for estimated losses incurred on sold loans was $160,000 at both September 30, 2017 and December 31, 2016. This liability represents management’s estimate of the potential repurchase or make-whole liability for residential mortgage loans originated for sale that may arise from representation and warranty claims that could relate to a variety of issues, including but not limited to, misrepresentation of facts, appraisal issues, or program requirements that may not meet investor guidelines. At September 30, 2017, the Company was servicing 2,777 loans sold to the secondary market with a balance of approximately $288.7 million compared to 2,877 loans sold with a balance of approximately $294.4 million at December 31, 2016. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2017 2016 2017 2016 Balance at beginning of year $ 160 $ 160 $ 160 $ 160 Provision for repurchase liability 0 2 0 2 Reimbursement of expenses 0 (2 ) 0 (2 ) Balance at end of year $ 160 $ 160 $ 160 $ 160 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (15) Commitments and Contingencies The Company issues financial instruments with off-balance-sheet risk in the normal course of business of meeting the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments may involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the consolidated balance sheets. The Company’s extent of involvement and maximum potential exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of these instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for financial instruments included on its consolidated balance sheets. At September 30, 2017, no amounts have been accrued for any estimated losses for these financial instruments. The contractual amount of off-balance-sheet financial instruments were as follows as of the dates indicated: September 30, December 31, (in thousands) 2017 2016 Commitments to extend credit $ 212,420 $ 253,375 Commitments to originate residential first and second mortgage loans 2,597 2,626 Standby letters of credit 29,123 2,745 Total $ 244,140 $ 258,746 Commitments Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since certain of the commitments and letters of credit are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the customer. Collateral held varies, but may include accounts receivable, inventory, furniture and equipment, and real estate. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. These standby letters of credit are primarily issued to support contractual obligations of the Company’s customers. The approximate remaining term of standby letters of credit range from one month to five years at September 30, 2017. Pending Litigation The Company and its subsidiaries are defendants in various legal actions incidental to the Company’s past and current business activities. Based on the Company’s analysis, and considering the inherent uncertainties associated with litigation, management does not believe that it is reasonably possible that these legal actions will materially adversely affect the Company’s consolidated financial condition or results of operations in the near term. The Company records a loss accrual for all legal matters for which it deems a loss is probable and can be reasonably estimated. Some legal matters, which are at early stages in the legal process, have not yet progressed to the point where a loss is deemed probable or an amount can be estimated. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Stock Dividend | Stock Dividend |
New accounting principles adopted in 2017 | The following represents significant new accounting principles adopted in 2017: Stock Compensation Improvements to Employee Share-Based Payment Accounting |
Loans and Allowance for Loan 24
Loans and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Schedule of summary of loans, by major class within the Company's loan portfolio | September 30, December 31, (in thousands) 2017 2016 Commercial, financial, and agricultural $ 184,868 $ 182,881 Real estate construction - residential 22,723 18,907 Real estate construction - commercial 91,102 55,653 Real estate mortgage - residential 250,736 259,900 Real estate mortgage - commercial 461,988 426,470 Installment and other consumer 33,630 30,218 Total loans $ 1,045,047 $ 974,029 |
Schedule of summary of the allowance for loan losses | Three Months Ended September 30, 2017 Commercial, Real Estate Real Estate Real Estate Real Estate Installment Financial, & Construction - Construction - Mortgage - Mortgage - and Other Un- (in thousands) Agricultural Residential Commercial Residential Commercial Consumer allocated Total Balance at beginning of period $ 2,578 $ 70 $ 615 $ 1,854 $ 4,882 $ 376 $ 170 $ 10,545 Additions: Provision for loan losses 853 64 91 100 (426 ) 32 (159 ) 555 Deductions: Loans charged off 37 0 0 68 4 56 0 165 Less recoveries on loans (12 ) (12 ) 0 (11 ) (5 ) (25 ) 0 (65 ) Net loan charge-offs (recoveries) 25 (12 ) 0 57 (1 ) 31 0 100 Balance at end of period $ 3,406 $ 146 $ 706 $ 1,897 $ 4,457 $ 377 $ 11 $ 11,000 Nine Months Ended September 30, 2017 Commercial, Real Estate Real Estate Real Estate Real Estate Installment Financial, & Construction - Construction - Mortgage - Mortgage - and Other Un- (in thousands) Agricultural Residential Commercial Residential Commercial Consumer allocated Total Balance at beginning of period $ 2,753 $ 108 $ 413 $ 2,385 $ 3,793 274 $ 160 $ 9,886 Additions: Provision for loan losses 695 (49 ) 293 (407 ) 658 194 (149 ) 1,235 Deductions: Loans charged off 97 0 0 149 20 167 0 433 Less recoveries on loans (55 ) (87 ) 0 (68 ) (26 ) (76 ) 0 (312 ) Net loan charge-offs (recoveries) 42 (87 ) 0 81 (6 ) 91 0 121 Balance at end of period $ 3,406 $ 146 $ 706 $ 1,897 $ 4,457 $ 377 $ 11 $ 11,000 Three Months Ended September 30, 2016 Commercial, Real Estate Real Estate Real Estate Real Estate Installment Financial, & Construction - Construction - Mortgage - Mortgage - Loans to Un- (in thousands) Agricultural Residential Commercial Residential Commercial Individuals allocated Total Balance at beginning of period $ 2,996 $ 63 $ 249 $ 2,293 $ 3,411 $ 284 $ 96 $ 9,392 Additions: Provision for loan losses (94 ) (4 ) 44 (152 ) 450 50 6 300 Deductions: Loans charged off 157 0 0 92 27 86 0 362 Less recoveries on loans (26 ) 0 0 (31 ) (36 ) (47 ) 0 (140 ) Net loans charged off 131 0 0 61 (9 ) 39 0 222 Balance at end of period $ 2,771 $ 59 $ 293 $ 2,080 $ 3,870 $ 295 $ 102 $ 9,470 Nine Months Ended September 30, 2016 Commercial, Real Estate Real Estate Real Estate Real Estate Installment Financial, & Construction - Construction - Mortgage - Mortgage - Loans to Un- (in thousands) Agricultural Residential Commercial Residential Commercial Individuals allocated Total Balance at beginning of period $ 2,153 $ 59 $ 644 $ 2,439 $ 2,935 $ 273 $ 101 $ 8,604 Additions: Provision for loan losses 710 0 (852 ) 66 944 106 1 975 Deductions: Loans charged off 295 0 1 474 137 209 0 1,116 Less recoveries on loans (203 ) 0 (502 ) (49 ) (128 ) (125 ) 0 (1,007 ) Net loans charged off 92 0 (501 ) 425 9 84 0 109 Balance at end of period $ 2,771 $ 59 $ 293 $ 2,080 $ 3,870 $ 295 $ 102 $ 9,470 Commercial, Real Estate Real Estate Real Estate Real Estate Installment Financial, and Construction - Construction - Mortgage - Mortgage - and Other Un- (in thousands) Agricultural Residential Commercial Residential Commercial Consumer allocated Total September 30, 2017 Allowance for loan losses: Individually evaluated for impairment $ 929 $ 0 $ 0 $ 528 $ 258 $ 23 $ 0 $ 1,738 Collectively evaluated for impairment 2,477 146 706 1,369 4,199 354 11 9,262 Total $ 3,406 $ 146 $ 706 $ 1,897 $ 4,457 $ 377 $ 11 $ 11,000 Loans outstanding: Individually evaluated for impairment $ 3,522 $ 0 $ 0 $ 5,173 $ 2,023 $ 168 $ 0 $ 10,886 Collectively evaluated for impairment 181,346 22,723 91,102 245,563 459,965 33,462 0 1,034,161 Total $ 184,868 $ 22,723 $ 91,102 $ 250,736 $ 461,988 $ 33,630 $ 0 $ 1,045,047 December 31, 2016 Allowance for loan losses: Individually evaluated for impairment $ 469 $ 0 $ 7 $ 319 $ 277 $ 8 $ 0 $ 1,080 Collectively evaluated for impairment 2,284 108 406 2,066 3,516 266 160 8,806 Total $ 2,753 $ 108 $ 413 $ 2,385 $ 3,793 $ 274 $ 160 $ 9,886 Loans outstanding: Individually evaluated for impairment $ 1,617 $ 0 $ 49 $ 5,471 $ 1,918 $ 89 $ 0 $ 9,144 Collectively evaluated for impairment 181,264 18,907 55,604 254,429 424,552 30,129 0 964,885 Total $ 182,881 $ 18,907 $ 55,653 $ 259,900 $ 426,470 $ 30,218 $ 0 $ 974,029 |
Schedule of impaired loans | September 30, December 31, (in thousands) 2017 2016 Non-accrual loans $ 6,210 $ 3,429 Performing TDRs 4,676 5,715 Total impaired loans $ 10,886 $ 9,144 Unpaid Recorded Principal Specific (in thousands) Investment Balance Reserves September 30, 2017 With no related allowance recorded: Commercial, financial and agricultural $ 1,442 $ 1,473 $ 0 Real estate - residential 1,024 1,049 0 Real estate - commercial 366 529 0 Total $ 2,832 $ 3,051 $ 0 With an allowance recorded: Commercial, financial and agricultural $ 2,080 $ 2,288 $ 929 Real estate - residential 4,149 4,220 528 Real estate - commercial 1,657 1,887 258 Installment and other consumer 168 185 23 Total $ 8,054 $ 8,580 $ 1,738 Total impaired loans $ 10,886 $ 11,631 $ 1,738 Unpaid Recorded Principal Specific (in thousands) Investment Balance Reserves December 31, 2016 With no related allowance recorded: Commercial, financial and agricultural $ 564 $ 706 $ 0 Real estate - residential 1,550 1,557 0 Total $ 2,114 $ 2,263 $ 0 With an allowance recorded: Commercial, financial and agricultural $ 1,053 $ 1,078 $ 469 Real estate - construction commercial 49 56 7 Real estate - residential 3,921 3,990 319 Real estate - commercial 1,918 1,988 277 Installment and other consumer 89 116 8 Total $ 7,030 $ 7,228 $ 1,080 Total impaired loans $ 9,144 $ 9,491 $ 1,080 Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Interest Interest Interest Interest Average Recognized Average Recognized Average Recognized Average Recognized Recorded For the Recorded For the Recorded For the Recorded For the (in thousands) Investment Period Ended Investment Period Ended Investment Period Ended Investment Period Ended With no related allowance recorded: Commercial, financial and agricultural $ 481 $ 0 $ 460 $ -9 $ 478 $ 0 $ 491 $ 18 Real estate - residential 341 0 2,050 27 1,412 0 1,640 63 Real estate - commercial 77 3 1,167 17 221 9 1,769 17 Installment and other consumer 0 0 0 0 22 0 0 0 Total $ 899 $ 3 $ 3,677 $ 35 $ 2,133 $ 9 $ 3,900 $ 98 With an allowance recorded: Commercial, financial and agricultural $ 694 $ 8 $ 1,398 $ -13 $ 1,667 $ 24 $ 924 $ 9 Real estate - construction commercial 0 0 51 0 37 0 64 0 Real estate - residential 1,383 33 2,992 20 4,090 121 3,741 78 Real estate - commercial 597 17 811 14 1,772 46 717 61 Installment and other consumer 56 0 118 -1 70 0 123 0 Total $ 2,730 $ 58 $ 5,370 $ 20 $ 7,636 $ 191 $ 5,569 $ 148 Total impaired loans $ 3,629 $ 61 $ 9,047 $ 55 $ 9,769 $ 200 $ 9,469 $ 246 |
Schedule of aging information for the Company's past due and non-accrual loans | Current or 90 Days Less Than Past Due 30 Days 30 - 89 Days And Still (in thousands) Past Due Past Due Accruing Non-Accrual Total September 30, 2017 Commercial, Financial, and Agricultural $ 181,781 $ 82 $ 0 $ 3,005 $ 184,868 Real Estate Construction - Residential 22,723 0 0 0 22,723 Real Estate Construction - Commercial 91,005 97 0 0 91,102 Real Estate Mortgage - Residential 247,462 1,063 117 2,094 250,736 Real Estate Mortgage - Commercial 460,339 706 0 943 461,988 Installment and Other Consumer 33,224 177 61 168 33,630 Total $ 1,036,534 $ 2,125 $ 178 $ 6,210 $ 1,045,047 December 31, 2016 Commercial, Financial, and Agricultural $ 181,609 $ 290 $ 0 $ 982 $ 182,881 Real Estate Construction - Residential 18,681 226 0 0 18,907 Real Estate Construction - Commercial 55,603 0 0 50 55,653 Real Estate Mortgage - Residential 254,758 3,200 54 1,888 259,900 Real Estate Mortgage - Commercial 425,260 790 0 420 426,470 Installment and Other Consumer 29,920 198 11 89 30,218 Total $ 965,831 $ 4,704 $ 65 $ 3,429 $ 974,029 |
Schedule of risk categories by class | (in thousands) Commercial, Financial, & Agricultural Real Estate Construction - Residential Real Estate Construction - Commercial Real Estate Mortgage - Residential Real Estate Mortgage - Commercial Installment and Other Consumer Total At September 30, 2017 Watch $ 9,830 $ 1,236 $ 1,281 $ 10,330 $ 48,773 $ 0 $ 71,450 Substandard 900 462 97 2,296 728 20 4,503 Performing TDRs 517 0 0 3,080 1,079 0 4,676 Non-accrual 3,005 0 0 2,094 943 168 6,210 Total $ 14,252 $ 1,698 $ 1,378 $ 17,800 $ 51,523 $ 188 $ 86,839 At December 31, 2016 Watch $ 10,295 $ 665 $ 1,113 $ 16,577 $ 44,611 $ 0 $ 73,261 Substandard 798 640 0 2,159 426 24 4,047 Performing TDRs 635 0 0 3,582 1,498 0 5,715 Non-accrual 982 0 50 1,888 420 89 3,429 Total $ 12,710 $ 1,305 $ 1,163 $ 24,206 $ 46,955 $ 113 $ 86,452 |
Schedule of summary of loans that were modified as TDRs | Three Months Ended September 30, 2017 2016 Recorded Investment (1) Recorded Investment (1) (in thousands) Number of Pre- Post- Number of Pre- Post- Troubled Debt Restructurings Commercial, financial and agricultural 0 $ 0 $ 0 2 $ 32 $ 32 Real estate mortgage - residential 1 14 14 4 298 296 Total 1 $ 14 $ 14 6 $ 330 $ 328 Nine Months Ended September 30, 2017 2016 Recorded Investment (1) Recorded Investment (1) (in thousands) Number of Pre- Post- Number of Pre- Post- Troubled Debt Restructurings Commercial, financial and agricultural 1 $ 131 $ 130 2 $ 32 $ 32 Real estate mortgage - residential 1 14 14 5 376 374 Real estate mortgage - commercial 1 56 52 0 0 0 Total 3 $ 201 $ 196 7 $ 408 $ 406 (1) The amounts reported post-modification are inclusive of all partial pay-downs and charge-offs, and no portion of the debt was forgiven. Loans modified as a TDR that were fully paid down, charged-off or foreclosed upon during the period ended are not reported. |
Other Real Estate and Reposse25
Other Real Estate and Repossessed Assets (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Other Real Estate [Abstract] | |
Schedule of summary of real estate and other assets acquired in settlement of loans | September 30, December 31, (in thousands) 2017 2016 Commercial $ 727 $ 809 Real estate construction - commercial 12,380 12,380 Real estate mortgage - residential 363 647 Real estate mortgage - commercial 2,909 3,439 Repossessed assets 0 16 Total $ 16,379 $ 17,291 Less valuation allowance for other real estate owned (3,202 ) (3,129 ) Total other real estate and repossessed assets $ 13,177 $ 14,162 |
Schedule of changes in the net carrying amount of other real estate owned and repossessed assets | Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Balance at beginning of period $ 16,530 $ 18,462 $ 17,291 $ 19,225 Additions 62 386 217 2,020 Proceeds from sales (217 ) (1,214 ) (1,001 ) (3,613 ) Charge-offs against the valuation allowance for other real estate owned, net 0 (48 ) (170 ) (149 ) Net gain on sales 4 112 42 215 Total other real estate and repossessed assets $ 16,379 $ 17,698 $ 16,379 $ 17,698 Less valuation allowance for other real estate owned (3,202 ) (3,260 ) (3,202 ) (3,260 ) Balance at end of period $ 13,177 $ 14,438 $ 13,177 $ 14,438 |
Schedule of summary of activity in valuation allowance for other real estate owned in settlement of loans | Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2017 2016 2017 2016 Balance, beginning of period $ 3,174 $ 3,208 $ 3,129 $ 3,233 Provision for other real estate owned 28 100 243 176 Charge-offs 0 (48 ) (170 ) (149 ) Balance, end of period $ 3,202 $ 3,260 $ 3,202 $ 3,260 |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of amortized cost, contractual maturity, gross unrealized gains and losses, and fair value of debt securities classified as available-for-sale | Total Amortized Gross Unrealized Fair ( in thousands) Cost Gains Losses Value September 30, 2017 U.S. government and federal agency obligations $ 12,653 $ 0 $ (180 ) $ 12,473 Government sponsored enterprises 32,854 0 (235 ) 32,619 Obligations of states and political subdivisions 47,730 246 (250 ) 47,726 Mortgage-backed securities: Residential - government agencies 119,961 140 (1,265 ) 118,836 Commercial - government agencies 987 9 0 996 Total mortgage-backed securities 120,948 149 (1,265 ) 119,832 Total available-for-sale securities $ 214,185 $ 395 $ (1,930 ) $ 212,650 December 31, 2016 U.S. government and federal agency obligations $ 13,667 $ 0 $ (303 ) $ 13,364 Government sponsored enterprises 32,786 2 (329 ) 32,459 Obligations of states and political subdivisions 42,666 123 (757 ) 42,032 Mortgage-backed securities: Residential - government agencies 127,527 124 (1,995 ) 125,656 Commercial - government agencies 989 12 0 1,001 Total mortgage-backed securities 128,516 136 (1,995 ) 126,657 Total available-for-sale securities $ 217,635 $ 261 $ (3,384 ) $ 214,512 |
Schedule of amortized cost and fair value of debt securities classified as available-for-sale by contractual maturity | Amortized Fair ( in thousands) Cost Value Due in one year or less $ 6,864 $ 6,858 Due after one year through five years 56,996 56,846 Due after five years through ten years 25,307 25,081 Due after ten years 4,070 4,033 Total 93,237 92,818 Mortgage-backed securities 120,948 119,832 Total available-for-sale securities $ 214,185 $ 212,650 |
Schedule of gross unrealized losses on debt securities and fair value of related securities aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position | Less than 12 months 12 months or more Total Total Fair Unrealized Fair Unrealized Fair Unrealized (in thousands) Value Losses Value Losses Value Losses At September 30, 2017 U.S. government and federal agency obligations $ 486 $ 0 $ 11,987 $ (180 ) $ 12,473 $ (180 ) Government sponsored enterprises 16,278 (69 ) 16,041 (166 ) 32,319 (235 ) Obligations of states and political subdivisions 10,820 (35 ) 12,535 (215 ) 23,355 (250 ) Mortgage-backed securities: Residential - government agencies 48,651 (341 ) 51,735 (924 ) 100,386 (1,265 ) Total $ 76,235 $ (445 ) $ 92,298 $ (1,485 ) $ 168,533 $ (1,930 ) (in thousands) At December 31, 2016 U.S. government and federal agency obligations $ 13,365 $ (303 ) $ 0 $ 0 $ 13,365 $ (303 ) Government sponsored enterprises 29,432 (329 ) 0 0 29,432 (329 ) Obligations of states and political subdivisions 32,318 (757 ) 0 0 32,318 (757 ) Mortgage-backed securities: Residential - government agencies 109,772 (1,848 ) 3,742 (147 ) 113,514 (1,995 ) Total $ 184,887 $ (3,237 ) $ 3,742 $ (147 ) $ 188,629 $ (3,384 ) |
Schedule of components of investment securities gains (losses), which are recognized in earnings | Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2017 2016 2017 2016 Gains realized on sales $ 12 $ 132 $ 12 $ 623 Losses realized on sales (12 ) (21 ) (12 ) (21 ) Other-than-temporary impairment recognized 0 0 0 0 Investment securities gains $ 0 $ 111 $ 0 $ 602 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Intangible Assets | |
Schedule of changes in mortgage servicing rights (MSRs) | Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2017 2016 2017 2016 Balance at beginning of period $ 2,766 $ 2,511 $ 2,584 $ 2,847 Originated mortgage servicing rights 61 96 176 213 Changes in fair value: Due to change in model inputs and assumptions (1) (30 ) (52 ) 289 (197 ) Other changes in fair value (2) (109 ) (185 ) (361 ) (493 ) Balance at end of period $ 2,688 $ 2,370 $ 2,688 $ 2,370 (1) The change in fair value resulting from changes in valuation inputs or assumptions used in the valuation model reflects the change in discount rates and prepayment speed assumptions primarily due to changes in interest rates. (2) Other changes in fair value reflect changes due to customer payments and passage of time. |
Schedule of key data and assumptions used in estimating the fair value of the Company's MSRs | Nine Months Ended September 30, 2017 2016 Weighted average constant prepayment rate 10.11 % 13.20 % Weighted average note rate 3.86 % 3.88 % Weighted average discount rate 9.78 % 9.20 % Weighted average expected life (in years) 5.80 4.80 |
Federal funds purchased and s28
Federal funds purchased and securities sold under agreements to repurchase (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase [Abstract] | |
Schedule of federal funds purchased and securities sold under agreements to repurchase | September 30, December 31, 2017 2016 Federal funds purchased $ 0 $ 992 Repurchase agreements 32,555 30,023 Total $ 32,555 $ 31,015 |
Schedule of repurchase agreements by remaining maturity of the agreements | Repurchase Agreements Remaining Contractual Maturity of the Agreements Overnight Less Greater and than than (in thousands) continuous 90 days 90 days Total At September 30, 2017 U.S. government and federal agency obligations $ 3,225 $ 0 $ 0 $ 3,225 Government sponsored enterprises 9,134 0 0 9,134 Asset-backed securities 20,196 0 0 20,196 Total $ 32,555 $ 0 $ 0 $ 32,555 At December 31, 2016 U.S. government and federal agency obligations $ 3,489 $ 0 $ 0 $ 3,489 Government sponsored enterprises 7,324 0 0 7,324 Asset-backed securities 19,210 0 0 19,210 Total $ 30,023 $ 0 $ 0 $ 30,023 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule of the change in the components of the accumulated other comprehensive income (loss) | Nine months ended September 30, 2017 Unrecognized Net Accumulated Unrealized Pension and Other Gain (Loss) Postretirement Comprehensive (in thousands) on Securities (1) Costs (2) Loss Balance at beginning of period $ (1,936 ) $ (1,865 ) $ (3,801 ) Other comprehensive income, before reclassifications 1,588 67 1,655 Amounts reclassified from accumulated other comprehensive income (loss) 0 0 0 Current period other comprehensive income, before tax 1,588 67 1,655 Income tax expense (604 ) (25 ) (629 ) Current period other comprehensive income, net of tax 984 42 1,026 Balance at end of period $ (952 ) $ (1,823 ) $ (2,775 ) Nine months ended September 30, 2016 Unrecognized Net Accumulated Unrealized Pension and Other Gain (Loss) Postretirement Comprehensive (in thousands) on Securities (1) Costs (2) Loss Balance at beginning of period $ (591 ) $ (1,427 ) $ (2,018 ) Other comprehensive income, before reclassifications 2,884 59 2,943 Amounts reclassified from accumulated other comprehensive income (loss) (602 ) 0 (602 ) Current period other comprehensive income, before tax 2,282 59 2,341 Income tax expense (867 ) (23 ) (890 ) Current period other comprehensive income, net of tax 1,415 36 1,451 Balance at end of period $ 824 $ (1,391 ) $ (567 ) (1) The pre-tax amounts reclassified from accumulated other comprehensive loss are included in gain on sale of investment securities (2) The pre-tax amounts reclassified from accumulated other comprehensive loss are included in the computation of net periodic pension cost. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of employee benefits charged to operating expenses | Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2017 2016 2017 2016 Payroll taxes $ 267 $ 251 $ 911 $ 883 Medical plans 595 415 1,489 1,414 401k match and profit sharing 218 201 694 585 Pension plan 349 307 1,052 920 Other 17 56 42 118 Total employee benefits $ 1,446 $ 1,230 $ 4,188 $ 3,920 |
Schedule of components of net pension cost | Estimated Actual (in thousands) 2017 2016 Service cost - benefits earned during the year $ 1,343 $ 1,179 Interest costs on projected benefit obligations 1,008 956 Expected return on plan assets (1,126 ) (1,057 ) Expected administrative expenses 88 70 Amortization of prior service cost 79 79 Amortization of unrecognized net loss 11 0 Net periodic pension expense $ 1,403 $ 1,227 Pension expense - three months ended September 30, (actual) $ 349 $ 307 Pension expense - nine months ended September 30, (actual) $ 1,052 $ 920 |
Stock Compensation (Tables)
Stock Compensation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of summary of Company's stock option activity | Weighted Weighted Average Aggregate Number Average Contractual Intrinsic of Exercise Term Value Shares Price (in years) ($000) Outstanding, December 31, 2016 46,244 $ 19.33 Granted 0 0.00 Exercised 0 0.00 Forfeited or expired (26,141 ) 22.84 Outstanding, September 30, 2017 20,103 $ 14.77 0.98 $ 119,226 Exercisable, September 30, 2017 20,103 $ 14.77 0.98 $ 119,226 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of calculations of basic and diluted earnings (loss) per share | Three Months Ended September 30, Nine Months Ended September 30, (dollars in thousands, except per share data) 2017 2016 2017 2016 Basic earnings per share: Net income available to shareholders $ 1,766 $ 1,884 $ 5,786 $ 5,294 Basic earnings per share $ 0.30 $ 0.32 $ 0.99 $ 0.90 Diluted earnings per share: Net income available to shareholders $ 1,766 $ 1,884 $ 5,786 $ 5,294 Average shares outstanding 5,825,825 5,859,415 5,834,679 5,869,569 Effect of dilutive stock options 5,561 0 5,198 0 Average shares outstanding including dilutive stock options 5,831,386 5,859,415 5,839,877 5,869,569 Diluted earnings per share $ 0.30 $ 0.32 $ 0.99 $ 0.90 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities recorded at fair value on a recurring basis | Fair Value Measurements Quoted Prices in Active Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs (in thousands) Fair Value (Level 1) (Level 2) (Level 3) September 30, 2017 Assets: U.S. government and federal agency obligations $ 12,473 $ 0 $ 12,473 $ 0 Government sponsored enterprises 32,619 0 32,619 0 Obligations of states and political subdivisions 47,726 0 47,726 0 Mortgage-backed securities 119,832 0 119,832 0 Mortgage servicing rights 2,688 0 0 2,688 Total $ 215,338 $ 0 $ 212,650 $ 2,688 December 31, 2016 Assets: U.S. government and federal agency obligations $ 13,364 $ 0 $ 13,364 $ 0 Government sponsored enterprises 32,459 0 32,459 0 Obligations of states and political subdivisions 42,032 0 42,032 0 Mortgage-backed securities 126,657 0 126,657 0 Mortgage servicing rights 2,584 0 0 2,584 Total $ 217,096 $ 0 $ 214,512 $ 2,584 |
Schedule of summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis | Fair Value Measurements Using Fair Value Measurements Using Significant Unobservable Inputs Significant Unobservable Inputs (Level 3) (Level 3) Mortgage Servicing Rights Mortgage Servicing Rights (in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Balance at beginning of period $ 2,766 $ 2,511 $ 2,584 $ 2,847 Total gains or losses (realized/unrealized): Included in earnings (139 ) (237 ) (72 ) (690 ) Included in other comprehensive income 0 0 0 0 Purchases 0 0 0 0 Sales 0 0 0 0 Issues 61 96 176 213 Settlements 0 0 0 0 Balance at end of period $ 2,688 $ 2,370 $ 2,688 $ 2,370 |
Schedule of quantitative Information about Level 3 Fair Value Measurements | Quantitative Information about Level 3 Fair Value Measurements Valuation Technique Unobservable Inputs Input Value Nine Months Ended September 30, 2017 2016 Mortgage servicing rights Discounted cash flows Weighted average constant prepayment rate 10.11 % 13.20 % Weighted average note rate 3.86 % 3.88 % Weighted average discount rate 9.78 % 9.20 % Weighted average expected life (in years) 5.80 4.80 |
Schedule of valuation methods for instruments measured at fair value on a nonrecurring basis | Fair Value Measurements Using Quoted Prices Three Nine in Active Months Months Markets for Other Significant Ended Ended Identical Observable Unobservable September 30, September 30, Total Assets Inputs Inputs Total Gains Total Gains (in thousands) Fair Value (Level 1) (Level 2) (Level 3) (Losses)* (Losses)* September 30, 2017 Assets: Impaired loans: Commercial, financial, & agricultural $ 1,151 $ 0 $ 0 $ 1,151 $ 0 $ (1 ) Real estate mortgage - residential 3,621 0 0 3,621 (57 ) (122 ) Real estate mortgage - commercial 1,399 0 0 1,399 0 (4 ) Consumer 145 0 0 145 (7 ) (20 ) Total $ 6,316 $ 0 $ 0 $ 6,316 $ (64 ) $ (147 ) Other real estate and foreclosed assets $ 13,177 $ 0 $ 0 $ 13,177 $ (26 ) $ (206 ) September 30, 2016 Assets: Impaired loans: Commercial, financial, & agricultural $ 392 $ 0 $ 0 $ 392 $ 0 $ (359 ) Real estate construction - commercial 43 0 0 43 0 0 Real estate mortgage - residential 3,464 0 0 3,464 (80 ) (295 ) Real estate mortgage - commercial 1,806 0 0 1,806 (71 ) (248 ) Consumer 103 0 0 103 (2 ) (18 ) Total $ 5,808 $ 0 $ 0 $ 5,808 $ (153 ) $ (920 ) Other real estate and foreclosed assets $ 14,438 $ 0 $ 0 $ 14,438 $ 21 $ 70 * Total gains (losses) reported for other real estate and foreclosed assets includes charge-offs, valuation write downs, and net losses taken during the periods reported. |
Fair Value of Financial Instr34
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
Schedule of summary of the carrying amounts and fair values of financial instruments | September 30, 2017 Fair Value Measurements Quoted Prices in Active Net Markets for Other Significant September 30, 2017 Identical Observable Unobservable Carrying Fair Assets Inputs Inputs (in thousands) Amount Value (Level 1) (Level 2) (Level 3) Assets: Cash and due from banks $ 19,200 $ 19,200 $ 19,200 $ 0 $ 0 Federal funds sold and overnight interest-bearing deposits 41,227 41,227 41,227 0 0 Investment in available-for-sale securities 212,650 212,650 0 212,650 0 Loans, net 1,034,047 1,020,755 0 0 1,020,755 Investment in FHLB stock 5,113 5,113 0 5,113 0 Mortgage servicing rights 2,688 2,688 0 0 2,688 Cash surrender value - life insurance 2,464 2,464 0 2,464 0 Accrued interest receivable 4,879 4,879 4,879 0 0 $ 1,322,268 $ 1,308,976 $ 65,306 $ 220,227 $ 1,023,443 Liabilities: Deposits: Non-interest bearing demand $ 259,457 $ 259,457 $ 259,457 $ 0 $ 0 Savings, interest checking and money market 539,575 539,575 539,575 0 0 Time deposits 308,928 308,696 0 0 308,696 Federal funds purchased and securities sold under agreements to repurchase 32,555 32,555 32,555 0 0 Subordinated notes 49,486 36,228 0 36,228 0 Federal Home Loan Bank advances 89,408 89,827 0 89,827 0 Accrued interest payable 486 486 486 0 0 $ 1,279,895 $ 1,266,824 $ 832,073 $ 126,055 $ 308,696 December 31, 2016 Fair Value Measurements Quoted Prices in Active Net Markets for Other Significant December 31, 2016 Identical Observable Unobservable Carrying Fair Assets Inputs Inputs (in thousands) amount value (Level 1) (Level 2) (Level 3) Assets: Cash and due from banks $ 25,589 $ 25,589 $ 25,589 $ 0 $ 0 Federal funds sold and overnight interest-bearing deposits 1,406 1,406 1,406 0 0 Investment in available-for-sale securities 214,512 214,512 0 214,512 0 Loans, net 964,143 959,929 0 0 959,929 Investment in FHLB stock 5,149 5,149 0 5,149 0 Mortgage servicing rights 2,584 2,584 0 0 2,584 Cash surrender value - life insurance 2,409 2,409 0 2,409 0 Accrued interest receivable 5,183 5,183 5,183 0 0 $ 1,220,975 $ 1,216,761 $ 32,178 $ 222,070 $ 962,513 Liabilities: Deposits: Non-interest bearing demand $ 235,975 $ 235,975 $ 235,975 $ 0 $ 0 Savings, interest checking and money market 468,731 468,731 468,731 0 0 Time deposits 305,960 304,334 0 0 304,334 Federal funds purchased and securities sold under agreements to repurchase 31,015 31,015 31,015 0 0 Subordinated notes 49,486 33,712 0 33,712 0 Other borrowings 93,392 93,209 0 93,209 0 Accrued interest payable 498 498 498 0 0 $ 1,185,057 $ 1,167,474 $ 736,219 $ 126,921 $ 304,334 |
Repurchase Reserve Liability (T
Repurchase Reserve Liability (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Repurchase Reserve Liability [Abstract] | |
Schedule of repurchase reserve liability | Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2017 2016 2017 2016 Balance at beginning of year $ 160 $ 160 $ 160 $ 160 Provision for repurchase liability 0 2 0 2 Reimbursement of expenses 0 (2 ) 0 (2 ) Balance at end of year $ 160 $ 160 $ 160 $ 160 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of contractual amount of off-balance-sheet financial instruments | September 30, December 31, (in thousands) 2017 2016 Commitments to extend credit $ 212,420 $ 253,375 Commitments to originate residential first and second mortgage loans 2,597 2,626 Standby letters of credit 29,123 2,745 Total $ 244,140 $ 258,746 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies (Detail Textuals) | 1 Months Ended |
Jul. 31, 2017 | |
Accounting Policies [Abstract] | |
Special stock dividend, payment date | Jul. 1, 2017 |
Special stock dividend, rate percent | 4.00% |
Special stock dividend, record date | Jun. 15, 2017 |
Loans and Allowance for Loan 38
Loans and Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | $ 1,045,047 | $ 974,029 |
Commercial, financial, and agricultural | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 184,868 | 182,881 |
Residential real estate | Construction | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 22,723 | 18,907 |
Residential real estate | Mortgage | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 250,736 | 259,900 |
Commercial real estate | Construction | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 91,102 | 55,653 |
Commercial real estate | Mortgage | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 461,988 | 426,470 |
Installment and other consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | $ 33,630 | $ 30,218 |
Loans and Allowance for Loan 39
Loans and Allowance for Loan Losses (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Summary of the allowance for loan losses | ||||
Balance at beginning of period | $ 10,545 | $ 9,392 | $ 9,886 | $ 8,604 |
Additions: | ||||
Provision for loan losses | 555 | 300 | 1,235 | 975 |
Deductions: | ||||
Loans charged off | 165 | 362 | 433 | 1,116 |
Less recoveries on loans | (65) | (140) | (312) | (1,007) |
Net loan charge-offs (recoveries) | 100 | 222 | 121 | 109 |
Balance at end of period | 11,000 | 9,470 | 11,000 | 9,470 |
Commercial, financial, and agricultural | ||||
Summary of the allowance for loan losses | ||||
Balance at beginning of period | 2,578 | 2,996 | 2,753 | 2,153 |
Additions: | ||||
Provision for loan losses | 853 | (94) | 695 | 710 |
Deductions: | ||||
Loans charged off | 37 | 157 | 97 | 295 |
Less recoveries on loans | (12) | (26) | (55) | (203) |
Net loan charge-offs (recoveries) | 25 | 131 | 42 | 92 |
Balance at end of period | 3,406 | 2,771 | 3,406 | 2,771 |
Residential real estate | Construction | ||||
Summary of the allowance for loan losses | ||||
Balance at beginning of period | 70 | 63 | 108 | 59 |
Additions: | ||||
Provision for loan losses | 64 | (4) | (49) | 0 |
Deductions: | ||||
Loans charged off | 0 | 0 | 0 | 0 |
Less recoveries on loans | (12) | 0 | (87) | 0 |
Net loan charge-offs (recoveries) | (12) | 0 | (87) | 0 |
Balance at end of period | 146 | 59 | 146 | 59 |
Residential real estate | Mortgage | ||||
Summary of the allowance for loan losses | ||||
Balance at beginning of period | 1,854 | 2,293 | 2,385 | 2,439 |
Additions: | ||||
Provision for loan losses | 100 | (152) | (407) | 66 |
Deductions: | ||||
Loans charged off | 68 | 92 | 149 | 474 |
Less recoveries on loans | (11) | (31) | (68) | (49) |
Net loan charge-offs (recoveries) | 57 | 61 | 81 | 425 |
Balance at end of period | 1,897 | 2,080 | 1,897 | 2,080 |
Commercial real estate | Construction | ||||
Summary of the allowance for loan losses | ||||
Balance at beginning of period | 615 | 249 | 413 | 644 |
Additions: | ||||
Provision for loan losses | 91 | 44 | 293 | (852) |
Deductions: | ||||
Loans charged off | 0 | 0 | 0 | 1 |
Less recoveries on loans | 0 | 0 | 0 | (502) |
Net loan charge-offs (recoveries) | 0 | 0 | 0 | (501) |
Balance at end of period | 706 | 293 | 706 | 293 |
Commercial real estate | Mortgage | ||||
Summary of the allowance for loan losses | ||||
Balance at beginning of period | 4,882 | 3,411 | 3,793 | 2,935 |
Additions: | ||||
Provision for loan losses | (426) | 450 | 658 | 944 |
Deductions: | ||||
Loans charged off | 4 | 27 | 20 | 137 |
Less recoveries on loans | (5) | (36) | (26) | (128) |
Net loan charge-offs (recoveries) | (1) | (9) | (6) | 9 |
Balance at end of period | 4,457 | 3,870 | 4,457 | 3,870 |
Installment and other consumer | ||||
Summary of the allowance for loan losses | ||||
Balance at beginning of period | 376 | 284 | 274 | 273 |
Additions: | ||||
Provision for loan losses | 32 | 50 | 194 | 106 |
Deductions: | ||||
Loans charged off | 56 | 86 | 167 | 209 |
Less recoveries on loans | (25) | (47) | (76) | (125) |
Net loan charge-offs (recoveries) | 31 | 39 | 91 | 84 |
Balance at end of period | 377 | 295 | 377 | 295 |
Unallocated | ||||
Summary of the allowance for loan losses | ||||
Balance at beginning of period | 170 | 96 | 160 | 101 |
Additions: | ||||
Provision for loan losses | (159) | 6 | (149) | 1 |
Deductions: | ||||
Loans charged off | 0 | 0 | 0 | 0 |
Less recoveries on loans | 0 | 0 | 0 | 0 |
Net loan charge-offs (recoveries) | 0 | 0 | 0 | 0 |
Balance at end of period | $ 11 | $ 102 | $ 11 | $ 102 |
Loans and Allowance for Loan 40
Loans and Allowance for Loan Losses (Details 2) - USD ($) $ in Thousands | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Allowance for loan losses: | ||||||
Individually evaluated for impairment | $ 1,738 | $ 1,080 | ||||
Collectively evaluated for impairment | 9,262 | 8,806 | ||||
Total | 11,000 | $ 10,545 | 9,886 | $ 9,470 | $ 9,392 | $ 8,604 |
Loans outstanding: | ||||||
Individually evaluated for impairment | 10,886 | 9,144 | ||||
Collectively evaluated for impairment | 1,034,161 | 964,885 | ||||
Total | 1,045,047 | 974,029 | ||||
Commercial, financial, and agricultural | ||||||
Allowance for loan losses: | ||||||
Individually evaluated for impairment | 929 | 469 | ||||
Collectively evaluated for impairment | 2,477 | 2,284 | ||||
Total | 3,406 | 2,578 | 2,753 | 2,771 | 2,996 | 2,153 |
Loans outstanding: | ||||||
Individually evaluated for impairment | 3,522 | 1,617 | ||||
Collectively evaluated for impairment | 181,346 | 181,264 | ||||
Total | 184,868 | 182,881 | ||||
Residential real estate | Construction | ||||||
Allowance for loan losses: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 146 | 108 | ||||
Total | 146 | 70 | 108 | 59 | 63 | 59 |
Loans outstanding: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 22,723 | 18,907 | ||||
Total | 22,723 | 18,907 | ||||
Residential real estate | Mortgage | ||||||
Allowance for loan losses: | ||||||
Individually evaluated for impairment | 528 | 319 | ||||
Collectively evaluated for impairment | 1,369 | 2,066 | ||||
Total | 1,897 | 1,854 | 2,385 | 2,080 | 2,293 | 2,439 |
Loans outstanding: | ||||||
Individually evaluated for impairment | 5,173 | 5,471 | ||||
Collectively evaluated for impairment | 245,563 | 254,429 | ||||
Total | 250,736 | 259,900 | ||||
Commercial real estate | Construction | ||||||
Allowance for loan losses: | ||||||
Individually evaluated for impairment | 0 | 7 | ||||
Collectively evaluated for impairment | 706 | 406 | ||||
Total | 706 | 615 | 413 | 293 | 249 | 644 |
Loans outstanding: | ||||||
Individually evaluated for impairment | 0 | 49 | ||||
Collectively evaluated for impairment | 91,102 | 55,604 | ||||
Total | 91,102 | 55,653 | ||||
Commercial real estate | Mortgage | ||||||
Allowance for loan losses: | ||||||
Individually evaluated for impairment | 258 | 277 | ||||
Collectively evaluated for impairment | 4,199 | 3,516 | ||||
Total | 4,457 | 4,882 | 3,793 | 3,870 | 3,411 | 2,935 |
Loans outstanding: | ||||||
Individually evaluated for impairment | 2,023 | 1,918 | ||||
Collectively evaluated for impairment | 459,965 | 424,552 | ||||
Total | 461,988 | 426,470 | ||||
Installment and other consumer | ||||||
Allowance for loan losses: | ||||||
Individually evaluated for impairment | 23 | 8 | ||||
Collectively evaluated for impairment | 354 | 266 | ||||
Total | 377 | 376 | 274 | 295 | 284 | 273 |
Loans outstanding: | ||||||
Individually evaluated for impairment | 168 | 89 | ||||
Collectively evaluated for impairment | 33,462 | 30,129 | ||||
Total | 33,630 | 30,218 | ||||
Unallocated | ||||||
Allowance for loan losses: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 11 | 160 | ||||
Total | 11 | $ 170 | 160 | $ 102 | $ 96 | $ 101 |
Loans outstanding: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 0 | 0 | ||||
Total | $ 0 | $ 0 |
Loans and Allowance for Loan 41
Loans and Allowance for Loan Losses (Details 3) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Categories of impaired loans | ||
Non-accrual loans | $ 6,210 | $ 3,429 |
Performing TDRs | 4,676 | 5,715 |
Total impaired loans | $ 10,886 | $ 9,144 |
Loans and Allowance for Loan 42
Loans and Allowance for Loan Losses (Details 4) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment, With no related allowance recorded | $ 2,832 | $ 2,114 | |
Unpaid Principal Balance, With no related allowance recorded | 3,051 | 2,263 | |
Recorded Investment, With an allowance recorded | 8,054 | 7,030 | $ 7,100 |
Unpaid Principal Balance, With an allowance recorded | 8,580 | 7,228 | |
Specific Reserves, With an allowance recorded | 1,738 | 1,080 | $ 1,300 |
Total impaired loans, Recorded Investment | 10,886 | 9,144 | |
Total impaired loans, Unpaid Principal Balance | 11,631 | 9,491 | |
Commercial, financial, and agricultural | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment, With no related allowance recorded | 1,442 | 564 | |
Unpaid Principal Balance, With no related allowance recorded | 1,473 | 706 | |
Recorded Investment, With an allowance recorded | 2,080 | 1,053 | |
Unpaid Principal Balance, With an allowance recorded | 2,288 | 1,078 | |
Specific Reserves, With an allowance recorded | 929 | 469 | |
Real estate - residential | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment, With no related allowance recorded | 1,024 | 1,550 | |
Unpaid Principal Balance, With no related allowance recorded | 1,049 | 1,557 | |
Recorded Investment, With an allowance recorded | 4,149 | 3,921 | |
Unpaid Principal Balance, With an allowance recorded | 4,220 | 3,990 | |
Specific Reserves, With an allowance recorded | 528 | 319 | |
Real estate - commercial | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment, With no related allowance recorded | 366 | ||
Unpaid Principal Balance, With no related allowance recorded | 529 | ||
Recorded Investment, With an allowance recorded | 1,657 | 1,918 | |
Unpaid Principal Balance, With an allowance recorded | 1,887 | 1,988 | |
Specific Reserves, With an allowance recorded | 258 | 277 | |
Real estate - commercial | Construction | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment, With an allowance recorded | 49 | ||
Unpaid Principal Balance, With an allowance recorded | 56 | ||
Specific Reserves, With an allowance recorded | 7 | ||
Installment Loans to Individuals | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment, With an allowance recorded | 168 | 89 | |
Unpaid Principal Balance, With an allowance recorded | 185 | 116 | |
Specific Reserves, With an allowance recorded | $ 23 | $ 8 |
Loans and Allowance for Loan 43
Loans and Allowance for Loan Losses (Details 5) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
With no related allowance recorded: | ||||
With no related allowance recorded, Average Recorded Investment | $ 899 | $ 3,677 | $ 2,133 | $ 3,900 |
With no related allowance recorded, Interest Recognized For The Period Ended | 3 | 35 | 9 | 98 |
With an allowance recorded: | ||||
With an allowance recorded, Average Recorded Investment | 2,730 | 5,370 | 7,636 | 5,569 |
With an allowance recorded, Interest Recognized For The Period Ended | 58 | 20 | 191 | 148 |
Total average recorded investment | 3,629 | 9,047 | 9,769 | 9,469 |
Total interest income recognized during the period | 61 | 55 | 200 | 246 |
Commercial, financial, and agricultural | ||||
With no related allowance recorded: | ||||
With no related allowance recorded, Average Recorded Investment | 481 | 460 | 478 | 491 |
With no related allowance recorded, Interest Recognized For The Period Ended | 0 | (9) | 0 | 18 |
With an allowance recorded: | ||||
With an allowance recorded, Average Recorded Investment | 694 | 1,398 | 1,667 | 924 |
With an allowance recorded, Interest Recognized For The Period Ended | 8 | (13) | 24 | 9 |
Real estate - residential | ||||
With no related allowance recorded: | ||||
With no related allowance recorded, Average Recorded Investment | 341 | 2,050 | 1,412 | 1,640 |
With no related allowance recorded, Interest Recognized For The Period Ended | 0 | 27 | 0 | 63 |
With an allowance recorded: | ||||
With an allowance recorded, Average Recorded Investment | 1,383 | 2,992 | 4,090 | 3,741 |
With an allowance recorded, Interest Recognized For The Period Ended | 33 | 20 | 121 | 78 |
Real estate - commercial | ||||
With no related allowance recorded: | ||||
With no related allowance recorded, Average Recorded Investment | 77 | 1,167 | 221 | 1,769 |
With no related allowance recorded, Interest Recognized For The Period Ended | 3 | 17 | 9 | 17 |
With an allowance recorded: | ||||
With an allowance recorded, Average Recorded Investment | 597 | 811 | 1,772 | 717 |
With an allowance recorded, Interest Recognized For The Period Ended | 17 | 14 | 46 | 61 |
Real estate - commercial | Construction | ||||
With an allowance recorded: | ||||
With an allowance recorded, Average Recorded Investment | 0 | 51 | 37 | 64 |
With an allowance recorded, Interest Recognized For The Period Ended | 0 | 0 | 0 | 0 |
Installment and other consumer | ||||
With no related allowance recorded: | ||||
With no related allowance recorded, Average Recorded Investment | 0 | 0 | 22 | 0 |
With no related allowance recorded, Interest Recognized For The Period Ended | 0 | 0 | 0 | 0 |
With an allowance recorded: | ||||
With an allowance recorded, Average Recorded Investment | 56 | 118 | 70 | 123 |
With an allowance recorded, Interest Recognized For The Period Ended | $ 0 | $ (1) | $ 0 | $ 0 |
Loans and Allowance for Loan 44
Loans and Allowance for Loan Losses (Details 6) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Aging information for the Company's past due and non-accrual loans | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | $ 178 | $ 65 |
Financing Receivable, Recorded Investment, Nonaccrual | 6,210 | 3,429 |
Loans | 1,045,047 | 974,029 |
Current or Less Than 30 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 1,036,534 | 965,831 |
30 - 89 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 2,125 | 4,704 |
Commercial, financial, and agricultural | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 0 |
Financing Receivable, Recorded Investment, Nonaccrual | 3,005 | 982 |
Loans | 184,868 | 182,881 |
Commercial, financial, and agricultural | Current or Less Than 30 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 181,781 | 181,609 |
Commercial, financial, and agricultural | 30 - 89 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 82 | 290 |
Residential real estate | Construction | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 0 |
Financing Receivable, Recorded Investment, Nonaccrual | 0 | 0 |
Loans | 22,723 | 18,907 |
Residential real estate | Construction | Current or Less Than 30 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 22,723 | 18,681 |
Residential real estate | Construction | 30 - 89 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 0 | 226 |
Residential real estate | Mortgage | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 117 | 54 |
Financing Receivable, Recorded Investment, Nonaccrual | 2,094 | 1,888 |
Loans | 250,736 | 259,900 |
Residential real estate | Mortgage | Current or Less Than 30 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 247,462 | 254,758 |
Residential real estate | Mortgage | 30 - 89 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 1,063 | 3,200 |
Commercial real estate | Construction | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 0 |
Financing Receivable, Recorded Investment, Nonaccrual | 0 | 50 |
Loans | 91,102 | 55,653 |
Commercial real estate | Construction | Current or Less Than 30 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 91,005 | 55,603 |
Commercial real estate | Construction | 30 - 89 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 97 | 0 |
Commercial real estate | Mortgage | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 0 |
Financing Receivable, Recorded Investment, Nonaccrual | 943 | 420 |
Loans | 461,988 | 426,470 |
Commercial real estate | Mortgage | Current or Less Than 30 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 460,339 | 425,260 |
Commercial real estate | Mortgage | 30 - 89 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 706 | 790 |
Installment and other consumer | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 61 | 11 |
Financing Receivable, Recorded Investment, Nonaccrual | 168 | 89 |
Loans | 33,630 | 30,218 |
Installment and other consumer | Current or Less Than 30 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 33,224 | 29,920 |
Installment and other consumer | 30 - 89 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | $ 177 | $ 198 |
Loans and Allowance for Loan 45
Loans and Allowance for Loan Losses (Details 7) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | $ 1,045,047 | $ 974,029 |
Watch | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 71,450 | 73,261 |
Substandard | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 4,503 | 4,047 |
Performing TDRs | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 4,676 | 5,715 |
Non-accrual | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 6,210 | 3,429 |
Total | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 86,839 | 86,452 |
Commercial, financial, and agricultural | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 184,868 | 182,881 |
Commercial, financial, and agricultural | Watch | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 9,830 | 10,295 |
Commercial, financial, and agricultural | Substandard | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 900 | 798 |
Commercial, financial, and agricultural | Performing TDRs | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 517 | 635 |
Commercial, financial, and agricultural | Non-accrual | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 3,005 | 982 |
Commercial, financial, and agricultural | Total | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 14,252 | 12,710 |
Residential real estate | Construction | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 22,723 | 18,907 |
Residential real estate | Construction | Watch | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 1,236 | 665 |
Residential real estate | Construction | Substandard | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 462 | 640 |
Residential real estate | Construction | Performing TDRs | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 0 | 0 |
Residential real estate | Construction | Non-accrual | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 0 | 0 |
Residential real estate | Construction | Total | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 1,698 | 1,305 |
Residential real estate | Mortgage | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 250,736 | 259,900 |
Residential real estate | Mortgage | Watch | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 10,330 | 16,577 |
Residential real estate | Mortgage | Substandard | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 2,296 | 2,159 |
Residential real estate | Mortgage | Performing TDRs | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 3,080 | 3,582 |
Residential real estate | Mortgage | Non-accrual | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 2,094 | 1,888 |
Residential real estate | Mortgage | Total | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 17,800 | 24,206 |
Real estate - commercial | Construction | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 91,102 | 55,653 |
Real estate - commercial | Construction | Watch | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 1,281 | 1,113 |
Real estate - commercial | Construction | Substandard | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 97 | 0 |
Real estate - commercial | Construction | Performing TDRs | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 0 | 0 |
Real estate - commercial | Construction | Non-accrual | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 0 | 50 |
Real estate - commercial | Construction | Total | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 1,378 | 1,163 |
Real estate - commercial | Mortgage | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 461,988 | 426,470 |
Real estate - commercial | Mortgage | Watch | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 48,773 | 44,611 |
Real estate - commercial | Mortgage | Substandard | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 728 | 426 |
Real estate - commercial | Mortgage | Performing TDRs | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 1,079 | 1,498 |
Real estate - commercial | Mortgage | Non-accrual | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 943 | 420 |
Real estate - commercial | Mortgage | Total | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 51,523 | 46,955 |
Installment and other consumer | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 33,630 | 30,218 |
Installment and other consumer | Watch | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 0 | 0 |
Installment and other consumer | Substandard | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 20 | 24 |
Installment and other consumer | Performing TDRs | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 0 | 0 |
Installment and other consumer | Non-accrual | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 168 | 89 |
Installment and other consumer | Total | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | $ 188 | $ 113 |
Loans and Allowance for Loan 46
Loans and Allowance for Loan Losses (Details 8) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017USD ($)Contract | Sep. 30, 2016USD ($)Contract | Sep. 30, 2017USD ($)Contract | Sep. 30, 2016USD ($)Contract | ||
Loans that were modified as TDRs | |||||
Number of Contracts | Contract | [1] | 1 | 6 | 3 | 7 |
Pre- Modification | [1] | $ 14 | $ 330 | $ 201 | $ 408 |
Post- Modification | [1] | $ 14 | $ 328 | $ 196 | $ 406 |
Commercial, financial, and agricultural | |||||
Loans that were modified as TDRs | |||||
Number of Contracts | Contract | [1] | 0 | 2 | 1 | 2 |
Pre- Modification | [1] | $ 0 | $ 32 | $ 131 | $ 32 |
Post- Modification | [1] | $ 0 | $ 32 | $ 130 | $ 32 |
Residential real estate | Mortgage | |||||
Loans that were modified as TDRs | |||||
Number of Contracts | Contract | [1] | 1 | 4 | 1 | 5 |
Pre- Modification | [1] | $ 14 | $ 298 | $ 14 | $ 376 |
Post- Modification | [1] | $ 14 | $ 296 | $ 14 | $ 374 |
Commercial real estate | Mortgage | |||||
Loans that were modified as TDRs | |||||
Number of Contracts | Contract | [1] | 1 | 0 | ||
Pre- Modification | [1] | $ 56 | $ 0 | ||
Post- Modification | [1] | $ 52 | $ 0 | ||
[1] | The amounts reported post-modification are inclusive of all partial pay-downs and charge-offs, and no portion of the debt was forgiven. Loans modified as a TDR that were fully paid down, charged-off or foreclosed upon during the period ended are not reported. |
Loans and Allowance for Loan 47
Loans and Allowance for Loan Losses (Detail Textuals) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017USD ($)Contract | Sep. 30, 2016USD ($)Contract | Sep. 30, 2017USD ($)Contract | Sep. 30, 2016USD ($)Contract | Dec. 31, 2016USD ($) | ||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Amount of loans pledged as collateral to the Federal Home Loan Bank | $ 490,800,000 | $ 490,800,000 | ||||
Impaired loans individually evaluated for impairment | 10,886,000 | 10,886,000 | $ 9,144,000 | |||
Impaired loans were evaluated based on the fair value of the loan's collateral | 7,100,000 | 7,100,000 | 4,500,000 | |||
Specific allowance related to impaired loans | 1,738,000 | $ 1,300,000 | 1,738,000 | $ 1,300,000 | 1,080,000 | |
Impaired loans with no reserve allocation | $ 2,832,000 | $ 2,832,000 | $ 2,114,000 | |||
Impaired loans required no reserve allocation, percentage | 26.00% | 26.00% | 23.00% | |||
Interest income recognized on impaired loans | $ 61,000 | $ 55,000 | $ 200,000 | $ 246,000 | ||
Troubled debt restructurings | 5,700,000 | 5,700,000 | $ 6,300,000 | |||
Amount of specific reserves related to TDRs which were allocated to the allowance for loan losses | $ 531,000 | $ 531,000 | 410,000 | |||
Number of contracts modified | Contract | [1] | 1 | 6 | 3 | 7 | |
Minimum | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Look back period | 3 years | |||||
Maximum | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Look back period | 5 years | |||||
Performing TDRs | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Troubled debt restructurings | $ 4,700,000 | $ 4,700,000 | 5,700,000 | |||
Nonperforming TDRs | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Troubled debt restructurings | $ 1,000,000 | $ 1,000,000 | $ 619,000 | |||
[1] | The amounts reported post-modification are inclusive of all partial pay-downs and charge-offs, and no portion of the debt was forgiven. Loans modified as a TDR that were fully paid down, charged-off or foreclosed upon during the period ended are not reported. |
Other Real Estate and Reposse48
Other Real Estate and Repossessed Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Summary of real estate and other assets acquired in settlement of loans | ||||||
Repossessed assets | $ 0 | $ 16 | ||||
Total | 16,379 | $ 16,530 | 17,291 | $ 17,698 | $ 18,462 | $ 19,225 |
Less valuation allowance for other real estate owned | (3,202) | $ (3,174) | (3,129) | (3,260) | $ (3,208) | $ (3,233) |
Total other real estate and repossessed assets | 13,177 | 14,162 | $ 14,438 | |||
Commercial | ||||||
Summary of real estate and other assets acquired in settlement of loans | ||||||
Real estate acquired through foreclosure | 727 | 809 | ||||
Commercial real estate | Construction | ||||||
Summary of real estate and other assets acquired in settlement of loans | ||||||
Real estate acquired through foreclosure | 12,380 | 12,380 | ||||
Commercial real estate | Mortgage | ||||||
Summary of real estate and other assets acquired in settlement of loans | ||||||
Real estate acquired through foreclosure | 2,909 | 3,439 | ||||
Residential real estate | Mortgage | ||||||
Summary of real estate and other assets acquired in settlement of loans | ||||||
Real estate acquired through foreclosure | $ 363 | $ 647 |
Other Real Estate and Reposse49
Other Real Estate and Repossessed Assets (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Schedule of real estate acquired in settlement of loans | ||||
Balance at beginning of period | $ 16,530 | $ 18,462 | $ 17,291 | $ 19,225 |
Additions | 62 | 386 | 217 | 2,020 |
Proceeds from sales | (217) | (1,214) | (1,001) | (3,613) |
Charge-offs against the valuation allowance for other real estate owned, net | 0 | (48) | (170) | (149) |
Net gain on sales | 4 | 112 | 42 | 215 |
Total other real estate and repossessed assets | 16,379 | 17,698 | 16,379 | 17,698 |
Less valuation allowance for other real estate owned | (3,202) | (3,260) | (3,202) | (3,260) |
Balance at end of period | $ 13,177 | $ 14,438 | $ 13,177 | $ 14,438 |
Other Real Estate and Reposse50
Other Real Estate and Repossessed Assets (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Summary of activity in valuation allowance for other real estate owned in settlement of loans | ||||
Balance, beginning of period | $ 3,174 | $ 3,208 | $ 3,129 | $ 3,233 |
Provision for other real estate owned | 28 | 100 | 243 | 176 |
Charge-offs | 0 | (48) | (170) | (149) |
Balance, end of period | $ 3,202 | $ 3,260 | $ 3,202 | $ 3,260 |
Other Real Estate and Reposse51
Other Real Estate and Repossessed Assets (Detail Textuals) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Other Real Estate [Abstract] | ||
Consumer mortgage loans in process of foreclosure | $ 101,000 | $ 162,000 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Amortized cost and fair value of debt securities available-for-sale | ||
Total Amortized Cost | $ 214,185 | $ 217,635 |
Gross Unrealized Gains | 395 | 261 |
Gross Unrealized Losses | (1,930) | (3,384) |
Fair value | 212,650 | 214,512 |
U.S. government and federal agency obligations | ||
Amortized cost and fair value of debt securities available-for-sale | ||
Total Amortized Cost | 12,653 | 13,667 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (180) | (303) |
Fair value | 12,473 | 13,364 |
Government sponsored enterprises | ||
Amortized cost and fair value of debt securities available-for-sale | ||
Total Amortized Cost | 32,854 | 32,786 |
Gross Unrealized Gains | 0 | 2 |
Gross Unrealized Losses | (235) | (329) |
Fair value | 32,619 | 32,459 |
Obligations of states and political subdivisions | ||
Amortized cost and fair value of debt securities available-for-sale | ||
Total Amortized Cost | 47,730 | 42,666 |
Gross Unrealized Gains | 246 | 123 |
Gross Unrealized Losses | (250) | (757) |
Fair value | 47,726 | 42,032 |
Mortgage-backed securities | ||
Amortized cost and fair value of debt securities available-for-sale | ||
Total Amortized Cost | 120,948 | 128,516 |
Gross Unrealized Gains | 149 | 136 |
Gross Unrealized Losses | (1,265) | (1,995) |
Fair value | 119,832 | 126,657 |
Mortgage-backed securities | Residential - government agencies | ||
Amortized cost and fair value of debt securities available-for-sale | ||
Total Amortized Cost | 119,961 | 127,527 |
Gross Unrealized Gains | 140 | 124 |
Gross Unrealized Losses | (1,265) | (1,995) |
Fair value | 118,836 | 125,656 |
Mortgage-backed securities | Commercial - government agencies | ||
Amortized cost and fair value of debt securities available-for-sale | ||
Total Amortized Cost | 987 | 989 |
Gross Unrealized Gains | 9 | 12 |
Gross Unrealized Losses | 0 | 0 |
Fair value | $ 996 | $ 1,001 |
Investment Securities (Details
Investment Securities (Details 1) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Amortized Cost | ||
Due in one year or less | $ 6,864 | |
Due after one year through five years | 56,996 | |
Due after five years through ten years | 25,307 | |
Due after ten years | 4,070 | |
Total | 93,237 | |
Mortgage-backed securities | 120,948 | |
Total available-for-sale securities | 214,185 | $ 217,635 |
Fair Value | ||
Due in one year or less | 6,858 | |
Due after one year through five years | 56,846 | |
Due after five year through ten years | 25,081 | |
Due after ten years | 4,033 | |
Total | 92,818 | |
Mortgage-backed securities | 119,832 | |
Total available-for-sale securities | $ 212,650 | $ 214,512 |
Investment Securities (Detail54
Investment Securities (Details 2) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value | ||
Less than 12 months | $ 76,235 | $ 184,887 |
12 months or more | 92,298 | 3,742 |
Total | 168,533 | 188,629 |
Unrealized Losses | ||
Less than 12 months | (445) | (3,237) |
12 months or more | (1,485) | (147) |
Total | (1,930) | (3,384) |
U.S. government and federal agency obligations | ||
Fair Value | ||
Less than 12 months | 486 | 13,365 |
12 months or more | 11,987 | 0 |
Total | 12,473 | 13,365 |
Unrealized Losses | ||
Less than 12 months | 0 | (303) |
12 months or more | (180) | 0 |
Total | (180) | (303) |
Government sponsored enterprises | ||
Fair Value | ||
Less than 12 months | 16,278 | 29,432 |
12 months or more | 16,041 | 0 |
Total | 32,319 | 29,432 |
Unrealized Losses | ||
Less than 12 months | (69) | (329) |
12 months or more | (166) | 0 |
Total | (235) | (329) |
Obligations of states and political subdivisions | ||
Fair Value | ||
Less than 12 months | 10,820 | 32,318 |
12 months or more | 12,535 | 0 |
Total | 23,355 | 32,318 |
Unrealized Losses | ||
Less than 12 months | (35) | (757) |
12 months or more | (215) | 0 |
Total | (250) | (757) |
Mortgage-backed securities | Residential - government agencies | ||
Fair Value | ||
Less than 12 months | 48,651 | 109,772 |
12 months or more | 51,735 | 3,742 |
Total | 100,386 | 113,514 |
Unrealized Losses | ||
Less than 12 months | (341) | (1,848) |
12 months or more | (924) | (147) |
Total | $ (1,265) | $ (1,995) |
Investment Securities (Detail55
Investment Securities (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Investments Debt And Equity Securities [Abstract] | ||||
Gains realized on sales | $ 12 | $ 132 | $ 12 | $ 623 |
Losses realized on sales | (12) | (21) | (12) | (21) |
Other-than-temporary impairment recognized | 0 | 0 | 0 | 0 |
Investment securities gains | $ 0 | $ 111 | $ 0 | $ 602 |
Investment Securities (Detail T
Investment Securities (Detail Textuals) $ in Thousands | Sep. 30, 2017USD ($)Security | Dec. 31, 2016USD ($)Security |
Investments Debt And Equity Securities [Abstract] | ||
Available for sale securities reported at cost in other assets | $ 9,800 | $ 9,800 |
Available for sale securities, pledged | $ 173,100 | $ 167,600 |
Number of securities consisted in portfolio | Security | 329 | 298 |
Number of securities in loss position | Security | 204 | 216 |
Aggregate fair value of securities in loss position | $ 168,533 | $ 188,629 |
Loss position for 12 months or longer | 92,298 | 3,742 |
Gross unrealized losses | $ 1,900 | $ 3,400 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Changes in mortgage servicing rights | |||||
Balance at beginning of period | $ 2,584 | ||||
Changes in fair value: | |||||
Balance at end of period | $ 2,688 | 2,688 | |||
Mortgage servicing rights (MSRs) | |||||
Changes in mortgage servicing rights | |||||
Balance at beginning of period | 2,766 | $ 2,511 | 2,584 | $ 2,847 | |
Originated mortgage servicing rights | 61 | 96 | 176 | 213 | |
Changes in fair value: | |||||
Due to change in model inputs and assumptions | [1] | (30) | (52) | 289 | (197) |
Other changes in fair value | [2] | (109) | (185) | (361) | (493) |
Balance at end of period | $ 2,688 | $ 2,370 | $ 2,688 | $ 2,370 | |
[1] | The change in fair value resulting from changes in valuation inputs or assumptions used in the valuation model reflects the change in discount rates and prepayment speed assumptions primarily due to changes in interest rates. | ||||
[2] | Other changes in fair value reflect changes due to customer payments and passage of time. |
Intangible Assets (Details 1)
Intangible Assets (Details 1) - Mortgage servicing rights (MSRs) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Assumptions used in estimating the fair value of mortgage service rights | ||
Weighted average constant prepayment rate | 10.11% | 13.20% |
Weighted average note rate | 3.86% | 3.88% |
Weighted average discount rate | 9.78% | 9.20% |
Weighted average expected life (in years) | 5 years 9 months 18 days | 4 years 9 months 18 days |
Intangible Assets (Detail Textu
Intangible Assets (Detail Textuals) - Mortgage servicing rights (MSRs) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Mortgage loans serviced for others | $ 288,700 | $ 299,700 | $ 288,700 | $ 299,700 | $ 294,400 |
Mortgage loan servicing fees reported as non-interest income | $ 209 | $ 233 | $ 629 | $ 654 |
Federal funds purchased and s60
Federal funds purchased and securities sold under agreements to repurchase (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase [Abstract] | ||
Federal funds purchased | $ 0 | $ 992 |
Repurchase agreements | 32,555 | 30,023 |
Total | $ 32,555 | $ 31,015 |
Federal funds purchased and s61
Federal funds purchased and securities sold under agreements to repurchase (Details 1) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | $ 32,555 | $ 30,023 |
U.S. government and federal agency obligations | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 3,225 | 3,489 |
Government sponsored enterprises | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 9,134 | 7,324 |
Asset-backed securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 20,196 | 19,210 |
Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 32,555 | 30,023 |
Overnight and continuous | U.S. government and federal agency obligations | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 3,225 | 3,489 |
Overnight and continuous | Government sponsored enterprises | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 9,134 | 7,324 |
Overnight and continuous | Asset-backed securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 20,196 | 19,210 |
Less than 90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Less than 90 days | U.S. government and federal agency obligations | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Less than 90 days | Government sponsored enterprises | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Less than 90 days | Asset-backed securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Greater than 90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Greater than 90 days | U.S. government and federal agency obligations | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Greater than 90 days | Government sponsored enterprises | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Greater than 90 days | Asset-backed securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | $ 0 | $ 0 |
Income Taxes (Detail Textuals)
Income Taxes (Detail Textuals) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate reconciliation, percent | 32.40% | 34.70% | 33.60% | 33.80% |
Capital losses carry forwards | $ 219,000 | $ 219,000 | ||
Deferred tax asset, valuation reserve | $ 83,000 | $ 83,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Accumulated Other Comprehensive Income (Loss) | |||||
Balance at beginning of period | $ (3,801) | ||||
Current period other comprehensive income, net of tax | $ 99 | $ (351) | 1,026 | $ 1,451 | |
Balance at end of period | (2,775) | (2,775) | |||
Unrealized Gain (Loss) on Securities | |||||
Accumulated Other Comprehensive Income (Loss) | |||||
Balance at beginning of period | [1] | (1,936) | (591) | ||
Other comprehensive income, before reclassifications | [1] | 1,588 | 2,884 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | [1] | 0 | (602) | ||
Current period other comprehensive income, before tax | [1] | 1,588 | 2,282 | ||
Income tax expense | [1] | (604) | (867) | ||
Current period other comprehensive income, net of tax | [1] | 984 | 1,415 | ||
Balance at end of period | [1] | (952) | 824 | (952) | 824 |
Unrecognized Net Pension and Postretirement Costs | |||||
Accumulated Other Comprehensive Income (Loss) | |||||
Balance at beginning of period | [2] | (1,865) | (1,427) | ||
Other comprehensive income, before reclassifications | [2] | 67 | 59 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | [2] | 0 | 0 | ||
Current period other comprehensive income, before tax | [2] | 67 | 59 | ||
Income tax expense | [2] | (25) | (23) | ||
Current period other comprehensive income, net of tax | [2] | 42 | 36 | ||
Balance at end of period | [2] | (1,823) | (1,391) | (1,823) | (1,391) |
Accumulated Other Comprehensive Loss | |||||
Accumulated Other Comprehensive Income (Loss) | |||||
Balance at beginning of period | (3,801) | (2,018) | |||
Other comprehensive income, before reclassifications | 1,655 | 2,943 | |||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | (602) | |||
Current period other comprehensive income, before tax | 1,655 | 2,341 | |||
Income tax expense | (629) | (890) | |||
Current period other comprehensive income, net of tax | 1,026 | 1,451 | |||
Balance at end of period | $ (2,775) | $ (567) | $ (2,775) | $ (567) | |
[1] | The pre-tax amounts reclassified from accumulated other comprehensive loss are included in gain on sale of investment securities in the consolidated statements of income. | ||||
[2] | The pre-tax amounts reclassified from accumulated other comprehensive loss are included in the computation of net periodic pension cost. |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Summary of employee benefits charged to operating expenses | ||||
Payroll taxes | $ 267 | $ 251 | $ 911 | $ 883 |
Medical plans | 595 | 415 | 1,489 | 1,414 |
401k match and profit sharing | 218 | 201 | 694 | 585 |
Pension plan | 349 | 307 | 1,052 | 920 |
Other | 17 | 56 | 42 | 118 |
Total employee benefits | $ 1,446 | $ 1,230 | $ 4,188 | $ 3,920 |
Employee Benefit Plans (Detai65
Employee Benefit Plans (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Components of net pension cost | ||||
Pension expense - three months ended and nine months ended September 30, (actual) | $ 349 | $ 307 | $ 1,052 | $ 920 |
Pension | ||||
Components of net pension cost | ||||
Service cost - benefits earned during the year | 1,343 | 1,179 | ||
Interest costs on projected benefit obligations | 1,008 | 956 | ||
Expected return on plan assets | (1,126) | (1,057) | ||
Expected administrative expenses | 88 | 70 | ||
Amortization of prior service cost | 79 | 79 | ||
Amortization of unrecognized net loss | 11 | 0 | ||
Net periodic pension expense | 1,403 | 1,227 | ||
Pension expense - three months ended and nine months ended September 30, (actual) | $ 349 | $ 307 | $ 1,052 | $ 920 |
Employee Benefit Plans (Detail
Employee Benefit Plans (Detail Textuals) - Pension - USD ($) | Sep. 11, 2017 | Sep. 30, 2017 |
Defined Benefit Plan Disclosure | ||
Percentage of employer match | 3.00% | |
Defined benefit plan contributions by employer percent | 6.00% | |
Contribution to the defined benefit plan for the current plan year | $ 1,200,000 | |
Defined benefit plan, minimum required contribution | $ 842,000 |
Stock Compensation (Details)
Stock Compensation (Details) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($)$ / sharesshares | |
Number of Shares | |
Outstanding, December 31, 2016 | shares | 46,244 |
Granted | shares | 0 |
Exercised | shares | 0 |
Forfeited or expired | shares | (26,141) |
Outstanding, September 30, 2017 | shares | 20,103 |
Exercisable, September 30, 2017 | shares | 20,103 |
Weighted average Exercise Price | |
Outstanding, December 31, 2016 | $ / shares | $ 19.33 |
Granted | $ / shares | 0 |
Exercised | $ / shares | 0 |
Forfeited or expired | $ / shares | 22.84 |
Outstanding, September 30, 2017 | $ / shares | 14.77 |
Exercisable, September 30, 2017 | $ / shares | $ 14.77 |
Weighted Average Contractual Term (in years) | |
Outstanding, September 30, 2017 | 11 months 23 days |
Exercisable, September 30, 2017 | 11 months 23 days |
Aggregate Intrinsic Value | |
Outstanding, September 30, 2017 | $ | $ 119,226 |
Exercisable, September 30, 2017 | $ | $ 119,226 |
Stock Compensation (Detail Text
Stock Compensation (Detail Textuals) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum number of options granted to purchase shares (in shares) | 601,627 | 601,627 | |||
Special stock dividend, rate percent | 4.00% | ||||
Date of dividend payment | Jul. 1, 2017 | ||||
Stock based compensation expense | $ 1,000 | $ 5,000 | $ 3,000 | $ 16,000 | |
Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options vesting period | 4 years | ||||
Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options vesting period | 5 years |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Basic earnings per share: | ||||
Net income available to shareholders | $ 1,766 | $ 1,884 | $ 5,786 | $ 5,294 |
Basic earnings per share (in dollars per share) | $ 0.30 | $ 0.32 | $ 0.99 | $ 0.90 |
Diluted earnings per share: | ||||
Net income available to shareholders | $ 1,766 | $ 1,884 | $ 5,786 | $ 5,294 |
Average shares outstanding | 5,825,825 | 5,859,415 | 5,834,679 | 5,869,569 |
Effect of dilutive stock options | 5,561 | 0 | 5,198 | 0 |
Average shares outstanding including dilutive stock options | 5,831,386 | 5,859,415 | 5,839,877 | 5,869,569 |
Diluted earnings per share (in dollars per share) | $ 0.30 | $ 0.32 | $ 0.99 | $ 0.90 |
Earnings per Share (Detail Text
Earnings per Share (Detail Textuals) | 1 Months Ended |
Jul. 31, 2017 | |
Earnings Per Share [Abstract] | |
Special stock dividend, payment date | Jul. 1, 2017 |
Special stock dividend, rate percent | 4.00% |
Special stock dividend, record date | Jun. 15, 2017 |
Earnings per Share (Detail Te71
Earnings per Share (Detail Textuals 1) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Aug. 08, 2017 | Aug. 06, 2015 | |
Earnings Per Share [Abstract] | |||||
Antidilutive securities excluded from computation of earnings per share, amount | 46,244 | 46,244 | |||
Value of shares repurchased through open market transactions | $ 1.5 | $ 2 | |||
Total number of common stock repurchased | 74,608 | ||||
Average price per share of total common stock repurchased | $ 17.15 | ||||
Number of common stock repurchased | 30,715 | ||||
Average price per share of common stock repurchased | $ 20.30 | ||||
Value remained available for the purchase of shares under the plan | $ 2.2 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Assets: | ||
Available for sale debt securities, fair value | $ 212,650 | $ 214,512 |
Mortgage servicing rights, fair value | 2,688 | 2,584 |
Government sponsored enterprises | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Mortgage servicing rights, fair value | 0 | 0 |
Assets, Total | 0 | 0 |
Other Observable Inputs (Level 2) | ||
Assets: | ||
Available for sale debt securities, fair value | 212,650 | 214,512 |
Mortgage servicing rights, fair value | 0 | 0 |
Assets, Total | 212,650 | 214,512 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Mortgage servicing rights, fair value | 2,688 | 2,584 |
Assets, Total | 2,688 | 2,584 |
Recurring | ||
Assets: | ||
Assets, Total | 215,338 | 217,096 |
Recurring | U.S. government and federal agency obligations | ||
Assets: | ||
Available for sale debt securities, fair value | 12,473 | 13,364 |
Recurring | Government sponsored enterprises | ||
Assets: | ||
Available for sale debt securities, fair value | 32,619 | 32,459 |
Recurring | Obligations of states and political subdivisions | ||
Assets: | ||
Available for sale debt securities, fair value | 47,726 | 42,032 |
Recurring | Mortgage-backed securities | ||
Assets: | ||
Mortgage servicing rights, fair value | 119,832 | 126,657 |
Recurring | Mortgage servicing rights | ||
Assets: | ||
Mortgage servicing rights, fair value | 2,688 | 2,584 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government and federal agency obligations | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Government sponsored enterprises | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Obligations of states and political subdivisions | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage-backed securities | ||
Assets: | ||
Mortgage servicing rights, fair value | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage servicing rights | ||
Assets: | ||
Mortgage servicing rights, fair value | 0 | 0 |
Recurring | Other Observable Inputs (Level 2) | ||
Assets: | ||
Assets, Total | 212,650 | 214,512 |
Recurring | Other Observable Inputs (Level 2) | U.S. government and federal agency obligations | ||
Assets: | ||
Available for sale debt securities, fair value | 12,473 | 13,364 |
Recurring | Other Observable Inputs (Level 2) | Government sponsored enterprises | ||
Assets: | ||
Available for sale debt securities, fair value | 32,619 | 32,459 |
Recurring | Other Observable Inputs (Level 2) | Obligations of states and political subdivisions | ||
Assets: | ||
Available for sale debt securities, fair value | 47,726 | 42,032 |
Recurring | Other Observable Inputs (Level 2) | Mortgage-backed securities | ||
Assets: | ||
Mortgage servicing rights, fair value | 119,832 | 126,657 |
Recurring | Other Observable Inputs (Level 2) | Mortgage servicing rights | ||
Assets: | ||
Mortgage servicing rights, fair value | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Assets, Total | 2,688 | 2,584 |
Recurring | Significant Unobservable Inputs (Level 3) | U.S. government and federal agency obligations | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Government sponsored enterprises | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Obligations of states and political subdivisions | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Mortgage-backed securities | ||
Assets: | ||
Mortgage servicing rights, fair value | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Mortgage servicing rights | ||
Assets: | ||
Mortgage servicing rights, fair value | $ 2,688 | $ 2,584 |
Fair Value Measurements (Deta73
Fair Value Measurements (Details 1) - Recurring - Significant Unobservable Inputs (Level 3) - Mortgage servicing rights - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Fair value of assets | ||||
Balance at beginning of period | $ 2,766 | $ 2,511 | $ 2,584 | $ 2,847 |
Total gains or losses (realized/unrealized): Included in earnings | (139) | (237) | (72) | (690) |
Total gains or losses (realized/unrealized): Included in other comprehensive income | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issues | 61 | 96 | 176 | 213 |
Settlements | 0 | 0 | 0 | 0 |
Balance at end of period | $ 2,688 | $ 2,370 | $ 2,688 | $ 2,370 |
Fair Value Measurements (Deta74
Fair Value Measurements (Details 2) - Recurring - Significant Unobservable Inputs (Level 3) - Mortgage servicing rights | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Quantitative Information | ||
Weighted average constant prepayment rate | 10.11% | 13.20% |
Weighted average note rate (as a percent) | 3.86% | 3.88% |
Weighted average discount rate | 9.78% | 9.20% |
Weighted average expected life (in years) | 5 years 9 months 18 days | 4 years 9 months 18 days |
Fair Value Measurements (Deta75
Fair Value Measurements (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Gains (losses) on impaired loans | $ 0 | $ 0 | |||
Nonrecurring | Total Fair Value | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 6,316 | $ 5,808 | 6,316 | $ 5,808 | |
Other real estate and foreclosed assets | 13,177 | 14,438 | 13,177 | 14,438 | |
Nonrecurring | Total Fair Value | Commercial, financial, and agricultural | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 1,151 | 392 | 1,151 | 392 | |
Nonrecurring | Total Fair Value | Commercial real estate | Construction | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 43 | 43 | |||
Nonrecurring | Total Fair Value | Commercial real estate | Mortgage | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 1,399 | 1,806 | 1,399 | 1,806 | |
Nonrecurring | Total Fair Value | Residential real estate | Mortgage | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 3,621 | 3,464 | 3,621 | 3,464 | |
Nonrecurring | Total Fair Value | Consumer | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 145 | 103 | 145 | 103 | |
Nonrecurring | Total Gains (Losses) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Gains (losses) on impaired loans | [1] | (64) | (153) | (147) | (920) |
Gains (losses) on other real estate owned and repossessed assets | [1] | (26) | 21 | (206) | 70 |
Nonrecurring | Total Gains (Losses) | Commercial, financial, and agricultural | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Gains (losses) on impaired loans | [1] | 0 | 0 | (1) | (359) |
Nonrecurring | Total Gains (Losses) | Commercial real estate | Construction | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Gains (losses) on impaired loans | [1] | 0 | 0 | 0 | |
Nonrecurring | Total Gains (Losses) | Commercial real estate | Mortgage | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Gains (losses) on impaired loans | [1] | 0 | (71) | (4) | (248) |
Nonrecurring | Total Gains (Losses) | Residential real estate | Construction | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Gains (losses) on impaired loans | [1] | 0 | 0 | ||
Nonrecurring | Total Gains (Losses) | Residential real estate | Mortgage | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Gains (losses) on impaired loans | [1] | (57) | (80) | (122) | (295) |
Nonrecurring | Total Gains (Losses) | Consumer | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Gains (losses) on impaired loans | [1] | (7) | (2) | (20) | (18) |
Nonrecurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 0 | 0 | 0 | 0 | |
Other real estate and foreclosed assets | 0 | 0 | 0 | 0 | |
Nonrecurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial, financial, and agricultural | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 0 | 0 | 0 | 0 | |
Nonrecurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial real estate | Construction | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 0 | 0 | 0 | 0 | |
Nonrecurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial real estate | Mortgage | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 0 | 0 | 0 | 0 | |
Nonrecurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential real estate | Mortgage | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 0 | 0 | 0 | 0 | |
Nonrecurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Consumer | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 0 | 0 | 0 | 0 | |
Nonrecurring | Other Observable Inputs (Level 2) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 0 | 0 | 0 | 0 | |
Other real estate and foreclosed assets | 0 | 0 | 0 | 0 | |
Nonrecurring | Other Observable Inputs (Level 2) | Commercial, financial, and agricultural | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 0 | 0 | 0 | 0 | |
Nonrecurring | Other Observable Inputs (Level 2) | Commercial real estate | Construction | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 0 | 0 | 0 | 0 | |
Nonrecurring | Other Observable Inputs (Level 2) | Commercial real estate | Mortgage | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 0 | 0 | 0 | 0 | |
Nonrecurring | Other Observable Inputs (Level 2) | Residential real estate | Mortgage | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 0 | 0 | 0 | 0 | |
Nonrecurring | Other Observable Inputs (Level 2) | Consumer | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 0 | 0 | 0 | 0 | |
Nonrecurring | Significant Unobservable Inputs (Level 3) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 6,316 | 5,808 | 6,316 | 5,808 | |
Other real estate and foreclosed assets | 13,177 | 14,438 | 13,177 | 14,438 | |
Nonrecurring | Significant Unobservable Inputs (Level 3) | Commercial, financial, and agricultural | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 1,151 | 392 | 1,151 | 392 | |
Nonrecurring | Significant Unobservable Inputs (Level 3) | Commercial real estate | Construction | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 0 | 43 | 0 | 43 | |
Nonrecurring | Significant Unobservable Inputs (Level 3) | Commercial real estate | Mortgage | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 1,399 | 1,806 | 1,399 | 1,806 | |
Nonrecurring | Significant Unobservable Inputs (Level 3) | Residential real estate | Mortgage | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 3,621 | 3,464 | 3,621 | 3,464 | |
Nonrecurring | Significant Unobservable Inputs (Level 3) | Consumer | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | $ 145 | $ 103 | $ 145 | $ 103 | |
[1] | Total gains (losses) reported for other real estate and foreclosed assets includes charge-offs, valuation write downs, and net losses taken during the periods reported. |
Fair Value Measurements (Deta76
Fair Value Measurements (Detail Textuals) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Impaired loans with a specific allowance | $ 8,054,000 | $ 7,100,000 | $ 8,054,000 | $ 7,100,000 | $ 7,030,000 |
Specific allowance related to impaired loans | 1,738,000 | 1,300,000 | 1,738,000 | 1,300,000 | $ 1,080,000 |
Impaired financing receivable charge offs | 64,000 | 153,000 | 147,000 | 920,000 | |
Mortgage servicing rights (MSRs) | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Increase (Decrease) in valuation of mortgage servicing rights arising from inputs and assumptions | $ 30,000 | $ 52,000 | $ 289,000 | $ 197,000 |
Fair Value of Financial Instr77
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Assets: | ||
Cash and due from banks | $ 19,200 | $ 25,589 |
Federal funds sold and overnight interest-bearing deposits | 41,227 | 1,406 |
Investment in available-for-sale securities | 212,650 | 214,512 |
Mortgage servicing rights | 2,688 | 2,584 |
Accrued interest receivable | 4,879 | 5,183 |
Deposits: | ||
Non-interest bearing demand | 259,457 | 235,975 |
Savings, interest checking and money market | 539,575 | 468,731 |
Accrued interest payable | 486 | 498 |
Carrying Amount | ||
Assets: | ||
Cash and due from banks | 19,200 | 25,589 |
Federal funds sold and overnight interest-bearing deposits | 41,227 | 1,406 |
Investment in available-for-sale securities | 212,650 | 214,512 |
Loans, net | 1,034,047 | 964,143 |
Investment in FHLB stock | 5,113 | 5,149 |
Mortgage servicing rights | 2,688 | 2,584 |
Cash surrender value - life insurance | 2,464 | 2,409 |
Accrued interest receivable | 4,879 | 5,183 |
Assets, Total | 1,322,268 | 1,220,975 |
Deposits: | ||
Non-interest bearing demand | 259,457 | 235,975 |
Savings, interest checking and money market | 539,575 | 468,731 |
Time deposits | 308,928 | 305,960 |
Federal funds purchased and securities sold under agreements to repurchase | 32,555 | 31,015 |
Subordinated notes | 49,486 | 49,486 |
Other borrowings | 93,392 | |
Federal Home Loan Bank advances | 89,408 | |
Accrued interest payable | 486 | 498 |
Liabilities, Total | 1,279,895 | 1,185,057 |
Fair Value | ||
Assets: | ||
Cash and due from banks | 19,200 | 25,589 |
Federal funds sold and overnight interest-bearing deposits | 41,227 | 1,406 |
Investment in available-for-sale securities | 212,650 | 214,512 |
Loans, net | 1,020,755 | 959,929 |
Investment in FHLB stock | 5,113 | 5,149 |
Mortgage servicing rights | 2,688 | 2,584 |
Cash surrender value - life insurance | 2,464 | 2,409 |
Accrued interest receivable | 4,879 | 5,183 |
Assets, Total | 1,308,976 | 1,216,761 |
Deposits: | ||
Non-interest bearing demand | 259,457 | 235,975 |
Savings, interest checking and money market | 539,575 | 468,731 |
Time deposits | 308,696 | 304,334 |
Federal funds purchased and securities sold under agreements to repurchase | 32,555 | 31,015 |
Subordinated notes | 36,228 | 33,712 |
Other borrowings | 93,209 | |
Federal Home Loan Bank advances | 89,827 | |
Accrued interest payable | 486 | 498 |
Liabilities, Total | 1,266,824 | 1,167,474 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Cash and due from banks | 19,200 | 25,589 |
Federal funds sold and overnight interest-bearing deposits | 41,227 | 1,406 |
Investment in available-for-sale securities | 0 | 0 |
Loans, net | 0 | 0 |
Investment in FHLB stock | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Cash surrender value - life insurance | 0 | 0 |
Accrued interest receivable | 4,879 | 5,183 |
Assets, Total | 65,306 | 32,178 |
Deposits: | ||
Non-interest bearing demand | 259,457 | 235,975 |
Savings, interest checking and money market | 539,575 | 468,731 |
Time deposits | 0 | 0 |
Federal funds purchased and securities sold under agreements to repurchase | 32,555 | 31,015 |
Subordinated notes | 0 | 0 |
Other borrowings | 0 | |
Federal Home Loan Bank advances | 0 | |
Accrued interest payable | 486 | 498 |
Liabilities, Total | 832,073 | 736,219 |
Other Observable Inputs (Level 2) | ||
Assets: | ||
Cash and due from banks | 0 | 0 |
Federal funds sold and overnight interest-bearing deposits | 0 | 0 |
Investment in available-for-sale securities | 212,650 | 214,512 |
Loans, net | 0 | 0 |
Investment in FHLB stock | 5,113 | 5,149 |
Mortgage servicing rights | 0 | 0 |
Cash surrender value - life insurance | 2,464 | 2,409 |
Accrued interest receivable | 0 | 0 |
Assets, Total | 220,227 | 222,070 |
Deposits: | ||
Non-interest bearing demand | 0 | 0 |
Savings, interest checking and money market | 0 | 0 |
Time deposits | 0 | 0 |
Federal funds purchased and securities sold under agreements to repurchase | 0 | 0 |
Subordinated notes | 36,228 | 33,712 |
Other borrowings | 93,209 | |
Federal Home Loan Bank advances | 89,827 | |
Accrued interest payable | 0 | 0 |
Liabilities, Total | 126,055 | 126,921 |
Net Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Cash and due from banks | 0 | 0 |
Federal funds sold and overnight interest-bearing deposits | 0 | 0 |
Investment in available-for-sale securities | 0 | 0 |
Loans, net | 1,020,755 | 959,929 |
Investment in FHLB stock | 0 | 0 |
Mortgage servicing rights | 2,688 | 2,584 |
Cash surrender value - life insurance | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Assets, Total | 1,023,443 | 962,513 |
Deposits: | ||
Non-interest bearing demand | 0 | 0 |
Savings, interest checking and money market | 0 | 0 |
Time deposits | 308,696 | 304,334 |
Federal funds purchased and securities sold under agreements to repurchase | 0 | 0 |
Subordinated notes | 0 | 0 |
Other borrowings | 0 | |
Federal Home Loan Bank advances | 0 | |
Accrued interest payable | 0 | 0 |
Liabilities, Total | $ 308,696 | $ 304,334 |
Repurchase Reserve Liability (D
Repurchase Reserve Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Assets Sold Under Agreements To Repurchase [Roll Forward] | ||||
Balance at beginning of year | $ 160 | $ 160 | $ 160 | $ 160 |
Provision for repurchase liability | 0 | 2 | 0 | 2 |
Reimbursement of expenses | 0 | (2) | 0 | (2) |
Balance at end of year | $ 160 | $ 160 | $ 160 | $ 160 |
Repurchase Reserve Liability 79
Repurchase Reserve Liability (Detail Textuals) $ in Thousands | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2017USD ($)Loan | Dec. 31, 2016USD ($)Loan | Jun. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) | |
Repurchase Reserve Liability [Abstract] | ||||||
Repurchase reserve liability | $ 160 | $ 160 | $ 160 | $ 160 | $ 160 | $ 160 |
Number of loans sold to the secondary market | Loan | 2,777 | 2,877 | ||||
Balance of loans sold to the secondary market | $ 288,700 | $ 294,400 |
Commitments and Contingencies80
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Contractual amount of off-balance-sheet financial instruments | ||
Total contractual amount of off-balance-sheet financial instruments | $ 244,140 | $ 258,746 |
Commitments to extend credit | ||
Contractual amount of off-balance-sheet financial instruments | ||
Total contractual amount of off-balance-sheet financial instruments | 212,420 | 253,375 |
Commitments to originate residential first and second mortgage loans | ||
Contractual amount of off-balance-sheet financial instruments | ||
Total contractual amount of off-balance-sheet financial instruments | 2,597 | 2,626 |
Standby letters of credit | ||
Contractual amount of off-balance-sheet financial instruments | ||
Total contractual amount of off-balance-sheet financial instruments | $ 29,123 | $ 2,745 |
Commitments and Contingencies81
Commitments and Contingencies (Detail Textuals) | 9 Months Ended |
Sep. 30, 2017 | |
Minimum | |
Contractual amount of off-balance-sheet financial instruments | |
Remaining term of standby letters of credit | 1 year |
Maximum | |
Contractual amount of off-balance-sheet financial instruments | |
Remaining term of standby letters of credit | 5 years |