Document And Entity Information - shares |
6 Months Ended | |
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Jun. 30, 2016 |
Aug. 04, 2016 |
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Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | LANDMARK BANCORP INC | |
Entity Central Index Key | 0001141688 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | LARK | |
Entity Common Stock, Shares Outstanding | 3,638,060 |
CONSOLIDATED BALANCE SHEETS [Parenthetical] - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Allowance for loan losses | $ 5,652 | $ 5,922 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 200,000 | 200,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 7,500,000 | 7,500,000 |
Common stock, shares issued | 3,620,669 | 3,531,036 |
Common stock, shares, outstanding | 3,620,669 | 3,531,036 |
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||||||
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Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
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Loans: | |||||||||
Taxable | $ 5,285 | $ 5,436 | $ 10,420 | $ 10,556 | |||||
Tax-exempt | 60 | 75 | 127 | 143 | |||||
Investment securities: | |||||||||
Taxable | 1,171 | 1,146 | 2,335 | 2,343 | |||||
Tax-exempt | 856 | 736 | 1,664 | 1,414 | |||||
Total interest income | 7,372 | 7,393 | 14,546 | 14,456 | |||||
Interest expense: | |||||||||
Deposits | 287 | 272 | 564 | 550 | |||||
Borrowings | 523 | 497 | 1,016 | 988 | |||||
Total interest expense | 810 | 769 | 1,580 | 1,538 | |||||
Net interest income | 6,562 | 6,624 | 12,966 | 12,918 | |||||
Provision for loan losses | 300 | 200 | 350 | (800) | |||||
Net interest income after provision for loan losses | 6,262 | 6,424 | 12,616 | 13,718 | |||||
Non-interest income: | |||||||||
Fees and service charges | 1,847 | 1,813 | 3,576 | 3,495 | |||||
Gains on sales of loans, net | 1,405 | 2,251 | 3,199 | 4,194 | |||||
Bank owned life insurance | 145 | 123 | 265 | 245 | |||||
Gains (losses) on sales of investment securities, net | 285 | 0 | 297 | (254) | |||||
Other | 266 | 495 | 505 | 765 | |||||
Total non-interest income | 3,948 | 4,682 | 7,842 | 8,445 | |||||
Non-interest expense: | |||||||||
Compensation and benefits | 3,777 | 3,845 | 7,578 | 7,566 | |||||
Occupancy and equipment | 1,055 | 1,059 | 2,111 | 2,130 | |||||
Amortization of intangibles | 331 | 346 | 668 | 681 | |||||
Data processing | 346 | 342 | 657 | 689 | |||||
Professional fees | 282 | 259 | 501 | 493 | |||||
Advertising | 166 | 125 | 332 | 249 | |||||
Federal deposit insurance premiums | 110 | 105 | 220 | 224 | |||||
Foreclosure and real estate owned expense | 51 | 20 | 116 | 45 | |||||
Other | 1,093 | 1,342 | 2,190 | 2,477 | |||||
Total non-interest expense | 7,211 | 7,443 | 14,373 | 14,554 | |||||
Earnings before income taxes | 2,999 | 3,663 | 6,085 | 7,609 | |||||
Income tax expense | 754 | 1,047 | 1,563 | 2,216 | |||||
Net earnings | $ 2,245 | $ 2,616 | $ 4,522 | $ 5,393 | |||||
Earnings per share: | |||||||||
Basic (1) | [1],[2] | $ 0.62 | $ 0.75 | $ 1.26 | $ 1.54 | ||||
Diluted (1) | [1],[2] | 0.61 | 0.72 | 1.24 | 1.5 | ||||
Dividends per share (1) | [1] | $ 0.2 | $ 0.18 | $ 0.4 | $ 0.36 | ||||
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CONSOLIDATED STATEMENTS OF EARNINGS [Parenthetical] |
12 Months Ended |
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Dec. 31, 2015 | |
Percentage Of Stocks Dividend | 5.00% |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
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Net earnings | $ 2,245 | $ 2,616 | $ 4,522 | $ 5,393 |
Net unrealized holding gains (losses) on available-for-sale securities | 3,771 | (3,235) | 7,161 | (1,322) |
Reclassification adjustment for net (gains) losses included in earnings | (285) | 0 | (297) | 254 |
Net unrealized gains (losses) | 3,486 | (3,235) | 6,864 | (1,068) |
Income tax effect on net (gains) losses included in earnings | 105 | 0 | 110 | (94) |
Income tax effect on net unrealized holding (gains) losses | (1,396) | 1,201 | (2,654) | 493 |
Other comprehensive income (loss) | 2,195 | (2,034) | 4,320 | (669) |
Total comprehensive income | $ 4,440 | $ 582 | $ 8,842 | $ 4,724 |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands |
Total |
Common stock [Member] |
Additional paid-in capital [Member] |
Retained earnings [Member] |
Accumulated other comprehensive income (loss) [Member] |
---|---|---|---|---|---|
Balance at Dec. 31, 2014 | $ 71,645 | $ 33 | $ 40,473 | $ 29,321 | $ 1,818 |
Net earnings | 5,393 | 0 | 0 | 5,393 | 0 |
Other comprehensive income | (669) | 0 | 0 | 0 | (669) |
Dividends paid | (1,268) | 0 | 0 | (1,268) | 0 |
Stock-based compensation | 16 | 0 | 16 | 0 | 0 |
Exercise of stock options shares including excess tax benefit | 79 | 0 | 79 | 0 | 0 |
Balance at Jun. 30, 2015 | 75,196 | 33 | 40,568 | 33,446 | 1,149 |
Balance at Dec. 31, 2015 | 80,570 | 35 | 45,372 | 32,988 | 2,175 |
Net earnings | 4,522 | 0 | 0 | 4,522 | 0 |
Other comprehensive income | 4,320 | 0 | 0 | 0 | 4,320 |
Dividends paid | (1,437) | 0 | 0 | (1,437) | 0 |
Exercise of stock options shares including excess tax benefit | 1,392 | 1 | 1,391 | 0 | 0 |
Balance at Jun. 30, 2016 | $ 89,367 | $ 36 | $ 46,763 | $ 36,073 | $ 6,495 |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY [Parenthetical] - USD ($) $ in Thousands |
6 Months Ended | |||
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Jun. 30, 2016 |
Jun. 30, 2015 |
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Dividends per share (in dollars per shares) | [1] | $ 0.4 | $ 0.36 | |
Exercise of stock options (in shares) | 89,633 | 4,181 | ||
Excess tax benefit related to stock option plans (in dollars) | $ 197 | $ 5 | ||
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Interim Financial Statements |
6 Months Ended | ||||
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Jun. 30, 2016 | |||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] |
The unaudited consolidated financial statements of Landmark Bancorp, Inc. (the “Company”) and subsidiary have been prepared in accordance with the instructions to Form 10-Q. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles ("GAAP") for complete financial statements and should be read in conjunction with the Company’s most recent annual report on Form 10-K, containing the latest audited consolidated financial statements and notes thereto. The consolidated financial statements in this report have not been audited by an independent registered public accounting firm, but in the opinion of management, all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation of financial statements have been reflected herein. The results of the six months ended June 30, 2016 are not necessarily indicative of the results expected for the year ending December 31, 2016 or for any other period. The Company has evaluated subsequent events for recognition and disclosure up to the date the financial statements were issued. |
Investments |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable Securities [Text Block] |
A summary of investment securities available-for-sale is as follows:
The tables above show that some of the securities in the available-for-sale investment portfolio had unrealized losses, or were temporarily impaired, as of June 30, 2016 and December 31, 2015. This temporary impairment represents the estimated amount of loss that would be realized if the securities were sold on the valuation date. Securities which were temporarily impaired are shown below, along with the length of time in a continuous unrealized loss position.
The Company’s U.S. federal agency portfolio consists of securities issued by the government-sponsored agencies of Federal Home Loan Mortgage Corporation (“FHLMC”), Federal National Mortgage Association (“FNMA”) and Federal Home Loan Bank (“FHLB”). The receipt of principal and interest on U.S. federal agency obligations is guaranteed by the respective government-sponsored agency guarantor, such that the Company believes that its U.S. federal agency obligations do not expose the Company to credit-related losses. Based on these factors, along with the Company’s intent to not sell the securities and its belief that it was more likely than not that the Company will not be required to sell the securities before recovery of their cost basis, the Company believed that the U.S. federal agency obligations identified in the tables above were temporarily impaired as of the date of the respective table. The Company’s portfolio of municipal obligations consists of both tax-exempt and taxable general obligations securities issued by various municipalities. As of June 30, 2016, the Company did not intend to sell and it was more likely than not that the Company will not be required to sell its municipal obligations in an unrealized loss position until the recovery of their costs. Due to the issuers’ continued satisfaction of the securities’ obligations in accordance with their contractual terms and the expectation that they will continue to do so, the evaluation of the fundamentals of the issuers’ financial condition and other objective evidence, the Company believed that the municipal obligations identified in the tables above were temporarily impaired as of the date of the respective table. The Company’s agency mortgage-backed securities portfolio consists of securities underwritten to the standards of and guaranteed by the government-sponsored agencies of FHLMC, FNMA and the Government National Mortgage Association (“GNMA”). The receipt of principal, at par, and interest on agency mortgage-backed securities is guaranteed by the respective government-sponsored agency guarantor, such that the Company believed that its agency mortgage-backed securities did not expose the Company to credit-related losses. Based on these factors, along with the Company’s intent to not sell the securities and the Company’s belief that it was more likely than not that the Company will not be required to sell the securities before recovery of their cost basis, the Company believed that the agency mortgage-backed securities identified in the tables above were temporarily impaired as of the date of the respective table. The table below of the amortized cost and estimated fair value of investment securities includes scheduled principal payments and estimated prepayments, based on observable market inputs, for agency mortgage-backed securities. Actual maturities will differ from contractual maturities because borrowers have the right to prepay obligations with or without prepayment penalties. The amortized cost and fair value of investment securities at June 30, 2016 are as follows:
Sales proceeds and gross realized gains and losses on sales of available-for-sale securities are as follows:
Securities with carrying values of $201.8 million and $171.6 million were pledged to secure public funds on deposit, repurchase agreements and as collateral for borrowings at June 30, 2016 and December 31, 2015, respectively. Except for U.S. federal agency obligations, no investment in a single issuer exceeded 10% of consolidated stockholders’ equity. |
Loans and Allowance for Loan Losses |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] |
Loans consisted of the following as of the dates indicated below:
The following tables provide information on the Company’s activity in the allowance for loan losses by loan class:
The following tables provide information on the Company’s activity in the allowance for loan losses by loan class and allowance methodology:
The Company recorded net loan charge-offs of $620,000 during the first six months of 2016 compared to net loan recoveries of $1.5 million during the first six months of 2015. The net loan charge-offs during the first six months of 2016 were primarily related to the liquidation of the assets securing a previously identified and impaired commercial loan. The charge-off associated with this commercial loan exceeded the related allowance recorded at March 31, 2016, which contributed to provision for loan losses during the second quarter of 2016. The net loan recoveries during 2015 were primarily associated with the recovery of $1.7 million on a $4.3 million construction loan which was fully charged-off during 2010 and 2011. As of June 30, 2016, the Company has recovered approximately $2.4 million of the loan and continues to pursue collection of the remaining amount. The Company’s impaired loans increased from $6.8 million at December 31, 2015 to $7.1 million at June 30, 2016. The difference between the unpaid contractual principal and the impaired loan balance is a result of charge-offs recorded against impaired loans. The difference in the Company’s non-accrual loan balances and impaired loan balances at June 30, 2016 and December 31, 2015, was related to troubled debt restructurings (“TDR”) that are current and accruing interest, but still classified as impaired. Interest income recognized on a cash basis was immaterial during the six months ended June 30, 2016 and 2015. The following tables present information on impaired loans:
The Company’s key credit quality indicator is a loan’s performance status, defined as accruing or non-accruing. Performing loans are considered to have a lower risk of loss. Non-accrual loans are those which the Company believes have a higher risk of loss. The accrual of interest on non-performing loans is discontinued at the time the loan is ninety days delinquent, unless the credit is well secured and in process of collection. Loans are placed on non-accrual or are charged off at an earlier date if collection of principal or interest is considered doubtful. There were no loans ninety days delinquent and accruing interest at December 31, 2015. The following tables present information on the Company’s past due and non-accrual loans by loan class:
Under the original terms of the Company’s non-accrual loans, interest earned on such loans for the six months ended June 30, 2016 and 2015, would have increased interest income by $44,000 and $237,000, respectively. No interest income related to non-accrual loans was included in interest income for the six months ended June 30, 2016 and 2015. The Company also categorizes loans into risk categories based on relevant information about the ability of the borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on a quarterly basis. Non-classified loans generally include those loans that are expected to be repaid in accordance with contractual loan terms. Classified loans are those that are assigned a special mention, substandard or doubtful risk rating using the following definitions: Special Mention: Loans are currently protected by the current net worth and paying capacity of the obligor or of the collateral pledged but such protection is potentially weak. These loans constitute an undue and unwarranted credit risk, but not to the point of justifying a classification of substandard. The credit risk may be relatively minor, yet constitutes an unwarranted risk in light of the circumstances surrounding a specific asset. Substandard: Loans are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged. Loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. Loans are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful: Loans classified doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The following table provides information on the Company’s risk categories by loan class:
At June 30, 2016, the Company had ten loan relationships consisting of fourteen outstanding loans that were classified as TDRs. During the second quarter of 2016, the Company classified a $8,000 commercial loan as a TDR after modifying the payments to interest only. Also during the second quarter of 2016, the Company classified a $188,000 one-to-four family residential real estate loan as a TDR after agreeing to a loan modification which adjusted the payment schedule. Since all of the loans were adequately secured, no charge-offs or provisions for loan losses were recorded against the principal as of June 30, 2016. No loan modifications were classified as TDRs during the first quarter 2016. During the second quarter of 2015, the Company classified a commercial loan relationship consisting of $2.7 million in real estate and land loans as a TDR after agreeing to a bankruptcy plan with the borrower. The bankruptcy plan restarted the amortization period of the loans which extended the maturities of the loans. During the first quarter of 2015, the Company classified a $44,000 agriculture loan relationship consisting of two loans as a TDR after extending the maturity of the loans. During the first six months of 2016, a $56,000 one-to-four family residential real estate loan and a $25,000 agriculture loan, which were both classified as TDRs during 2015 were paid off. The Company evaluates each TDR individually and returns the loan to accrual status when a payment history is established after the restructuring and future payments are reasonably assured. There were no loans modified as TDRs for which there was a payment default within 12 months of modification as of June 30, 2016 and 2015. At June 30, 2016, there was a commitment of $84,000 to lend additional funds on one construction and land loan classified as a TDR. The Company had no allowance recorded against loans classified as TDRs at June 30, 2016 or December 31, 2015. The following table presents information on loans that are classified as TDRs:
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Goodwill and Other Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] |
The Company tests goodwill for impairment annually or more frequently if circumstances warrant. The Company’s annual step one impairment test as of December 31, 2015 concluded that its goodwill was not impaired. The Company concluded there were no triggering events during the first six months of 2016 that required an interim goodwill impairment test. Lease intangible assets are amortized over the life of the lease. Core deposit intangible assets are amortized over the estimated useful life of ten years on an accelerated basis. A summary of the other intangible assets that continue to be subject to amortization is as follows:
The following sets forth estimated amortization expense for core deposit and lease intangible assets for the remainder of 2016 and in successive years ending December 31:
Mortgage loans serviced for others are not reported as assets. The following table provides information on the principal balances of mortgage loans serviced for others:
Custodial escrow balances maintained in connection with serviced loans were $4.5 million and $3.5 million at June 30, 2016 and December 31, 2015, respectively. Gross service fee income related to such loans was $304,000 and $268,000 for the three months ended June 30, 2016 and 2015, respectively, and is included in fees and service charges in the consolidated statements of earnings. Gross service fee income related to such loans was $604,000 and $523,000 for the six months ended June 30, 2016 and 2015, respectively. Activity for mortgage servicing rights and the related valuation allowance follows:
The fair value of mortgage servicing rights was $4.1 million and $4.6 million at June 30, 2016 and December 31, 2015, respectively. Fair value at June 30, 2016 was determined using discount rates ranging from 9.50% to 9.52%; prepayment speeds ranging from 6.14% to 14.98%, depending on the stratification of the specific mortgage servicing right; and a weighted average default rate of 2.16%. Fair value at December 31, 2015 was determined using discount rates ranging from 9.50% to 10.00%; prepayment speeds ranging from 5.15% to 33.78%, depending on the stratification of the specific mortgage servicing right; and a weighted average default rate of 2.25%. The Company had a mortgage repurchase reserve of $361,000 and $351,000 at June 30, 2016 and December 31, 2015, respectively, which represents the Company’s best estimate of probable losses that the Company will incur related to the repurchase of one-to-four family residential real estate loans previously sold or to reimburse investors for credit losses incurred on loans previously sold where a breach of the contractual representations and warranties occurred. The Company did not incur any losses charged against the reserve or make any provisions to the reserve during the first six months of 2016 and 2015. The Company recovered $3,000 of losses during the three months ended June 30, 2016 and $10,000 of losses against the mortgage repurchase reserve during the six months ended June 30, 2016. As of June 30, 2016, the Company did not have any outstanding mortgage repurchase requests. |
Earnings per Share |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Text Block] |
Basic earnings per share have been computed based upon the weighted average number of common shares outstanding during each period. Diluted earnings per share include the effect of all potential common shares outstanding during each period. The shares used in the calculation of basic and diluted earnings per share are shown below:
(1) Share and per share values for the periods ended June 30, 2015 have been adjusted to give effect to the 5% stock dividend paid during December 2015. The diluted earnings per share computations for the three and six months ended June 30, 2016 and 2015 include all unexercised stock options because no stock options were anti-dilutive during such periods. |
Repurchase Agreements |
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Repurchase Agreements, Resale Agreements, Securities Borrowed, and Securities Loaned Disclosure [Text Block] |
The Company has overnight repurchase agreements with certain deposit customers whereby the Company uses investment securities as collateral for non-insured funds. These balances are accounted for as collateralized financing and included in other borrowings on the balance sheet. The following is a summary of the balances of and collateral for the Company’s repurchase agreements:
Repurchase agreements are comprised of non-insured customer funds, totaling $11.5 million at June 30, 2016, and $12.0 million at December 31, 2015, which were secured by $17.3 million and $15.7 million of the Company’s investment portfolio at the same dates, respectively. The investment securities are held by a third-party financial institution in the customer’s custodial account. The Company is required to maintain adequate collateral for each repurchase agreement. Changes in the fair value of the investment securities impact the amount of collateral required. If the Company were to default, the investment securities would be used to settle the repurchase agreement with the deposit customer. |
Fair Value of Financial Instruments and Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Text Block] |
Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Fair value estimates of the Company’s financial instruments as of June 30, 2016 and December 31, 2015, including methods and assumptions utilized, are set forth below:
Methods and Assumptions Utilized The carrying amount of cash and cash equivalents is considered to approximate fair value. The Company’s investment securities classified as available-for-sale include U.S. treasury securities, U.S. federal agency securities, municipal obligations, agency mortgage-backed securities, certificates of deposits and common stocks. Quoted exchange prices are available for the Company’s U.S treasury securities and common stock investments, which are classified as Level 1. U.S. federal agency securities and agency mortgage-backed obligations are priced utilizing industry-standard models that consider various assumptions, including time value, yield curves, volatility factors, prepayment speeds, default rates, loss severity, current market and contractual prices for the underlying financial instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace, can be derived from observable data, or are supported by observable levels at which transactions are executed in the marketplace. These measurements are classified as Level 2. Municipal securities are valued using a type of matrix, or grid, pricing in which securities are benchmarked against U.S. treasury rates based on credit rating. These model and matrix measurements are classified as Level 2 in the fair value hierarchy. It is not practical to determine the fair value of bank stocks due to restrictions placed on the transferability of FHLB and FRB stock. The estimated fair value of the Company’s loan portfolio is based on the segregation of loans by collateral type, interest terms, and maturities. The fair value is estimated based on discounting scheduled and estimated cash flows through maturity using an appropriate risk-adjusted yield curve to approximate current interest rates for each category. No adjustment was made to the interest rates for changes in credit risk of performing loans where there are no known credit concerns. Management segregates loans in appropriate risk categories. Management believes that the risk factor embedded in the interest rates along with the allowance for loan losses applicable to the performing loan portfolio results in a fair valuation of such loans. The fair values of impaired loans are generally based on market prices for similar assets determined through independent appraisals or discounted values of independent appraisals and brokers’ opinions of value. This method of estimating fair value does not incorporate the exit-price concept of fair value prescribed by ASC Topic 820 and is classified as Level 3. Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value, determined on an aggregate basis. The mortgage loan valuations are based on quoted secondary market prices for similar loans and are classified as Level 2. The carrying amounts of accrued interest receivable and payable are considered to approximate fair value. The estimated fair value of deposits with no stated maturity, such as non-interest-bearing demand deposits, savings, money market accounts, and checking accounts, is equal to the amount payable on demand. The fair value of interest-bearing time deposits is based on the discounted value of contractual cash flows of such deposits. The discount rate is tied to the FHLB yield curve plus an appropriate servicing spread. Fair value measurements based on discounted cash flows are classified as Level 2. These fair values do not incorporate the value of core deposit intangibles which may be associated with the deposit base. The fair value of advances from the FHLB, subordinated debentures, and other borrowings is estimated using current yield curves for similar borrowings adjusted for the Company’s current credit spread and classified as Level 2. The Company’s derivative financial instruments consist of interest rate lock commitments and corresponding forward sales contracts on mortgage loans held for sale. The fair values of these derivatives are based on quoted prices for similar loans in the secondary market. The market prices are adjusted by a factor, based on the Company’s historical data and management’s judgment about future economic trends, which considers the likelihood that a commitment will ultimately result in a closed loan. These instruments are classified as Level 2. The amounts are included in other assets or other liabilities on the consolidated balance sheets and gains on sale of loans, net in the consolidated statements of earnings. Off-Balance-Sheet Financial Instruments The fair value of letters of credit and commitments to extend credit is based on the fees currently charged to enter into similar agreements. The aggregate of these fees is not material. Transfers The Company did not transfer any assets or liabilities among levels during the six months ended June 30, 2016 or during the year ended December 31, 2015. Valuation Methods for Instruments Measured at Fair Value on a Recurring Basis The following table represents the Company’s financial instruments that are measured at fair value on a recurring basis at June 30, 2016 and December 31, 2015, allocated to the appropriate fair value hierarchy:
Changes in the fair value of available-for-sale securities are included in other comprehensive income to the extent the changes are not considered other-than-temporary impairments. Other-than-temporary impairment tests are performed on a quarterly basis and any decline in the fair value of an individual security below its cost that is deemed to be other-than-temporary results in a write-down of that security’s cost basis. Valuation Methods for Instruments Measured at Fair Value on a Non-recurring Basis The Company does not value its loan portfolio at fair value. Collateral-dependent impaired loans are generally carried at the lower of cost or fair value of the collateral, less estimated selling costs. Collateral values are determined based on appraisals performed by qualified licensed appraisers hired by the Company and then further adjusted if warranted based on relevant facts and circumstances. The appraisals may utilize a single valuation approach or a combination of approaches including the comparable sales and income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and result in a Level 3 classification of the inputs for determining fair value. Impaired loans are reviewed and evaluated at least quarterly for additional impairment and adjusted accordingly, based on the same factors identified above. The carrying value of the Company’s impaired loans was $7.1 million and $6.8 million, with an allocated allowance of $245,000 and $88,000, at June 30, 2016 and December 31, 2015, respectively. The following table represents the Company’s financial instruments that are measured at fair value on a non-recurring basis as of June 30, 2016 and December 31, 2015 allocated to the appropriate fair value hierarchy:
The following table presents quantitative information about Level 3 fair value measurements for impaired loans measured at fair value on a non-recurring basis as of June 30, 2016 and December 31, 2015.
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Regulatory Capital Requirements |
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Banking and Thrift [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Capital Requirements under Banking Regulations [Text Block] |
Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. Management believes as of June 30, 2016, the Company and its subsidiary, Landmark National Bank (“the Bank”) meet all capital adequacy requirements to which they were subject at that time. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. On January 1, 2015, the Company and the Bank became subject to new capital rules (the “Basel III Rules”) that implemented the Basel III regulatory capital reforms from the Basel Committee on Banking Supervision and certain changes required by the Dodd-Frank Wall Street Reform and Consumer Protection Act. The Basel III Rules are applicable to all U.S. banks that are subject to minimum capital requirements, as well as to bank and savings and loan holding companies other than “small bank holding companies” (generally, non-public bank holding companies with consolidated assets of less than $1.0 billion). The Basel III Rules have maintained the general structure of the prompt corrective action framework, while incorporating increased requirements. The Basel III Rules include a common equity Tier 1 capital to risk-weighted assets minimum ratio of 4.5%, raise the minimum ratio of Tier 1 capital to risk-weighted assets from 4.0% to 6.0%, require a minimum ratio of Total Capital to risk-weighted assets of 8.0%, and require a minimum Tier 1 leverage ratio of 4.0%. A capital conservation buffer, comprised of common equity Tier 1 capital, is also established above the regulatory minimum capital requirements. This capital conservation buffer began on January 1, 2016 at 0.625% of risk-weighted assets, and will increase each subsequent year by an additional 0.625% until reaching its final level of 2.5% on January 1, 2019. The capital conservation buffer increases the common equity Tier 1 capital ratio, Tier 1 capital and total risk based capital ratios as of March 31 of each year until the final level of 2.5% is reached. The Bank made the one-time accumulated other comprehensive income (“AOCI”) opt-out election on its first Call Report filed after January 1, 2015, which allowed banks under $250 billion a one-time opt-out election to remove the impact of certain unrealized capital gains and losses from the calculation of capital. As of June 30, 2016 and December 31, 2015, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action then in effect. There are no conditions or events since that notification that management believes have changed the institution’s category. The following is a comparison of the Company’s regulatory capital to minimum capital requirements at June 30, 2016 and December 31, 2015:
*The ratios for June 30, 2016 include a capital conservation buffer of 0.625%. The following is a comparison of the Bank’s regulatory capital to minimum capital requirements at June 30, 2016 and December 31, 2015:
*The ratios for June 30, 2016 include a capital conservation buffer of 0.625%. |
Impact of Recent Accounting Pronouncements |
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New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |||||
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The main provisions of the update require the identification of performance obligations within a contract and require the recognition of revenue based on a stand-alone allocation of contract revenue to each performance obligation. Performance obligations may be satisfied and revenue recognized over a period of time if: 1) the customer simultaneously receives and consumes the benefits provided by the entity’s performance as the entity performs, or 2) the entity’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced, or 3) the entity’s performance does not create an asset with an alternative use to the entity, and the entity has an enforceable right to payment for performance completed to date. For public entities the amendments of the update are effective for annual reporting periods beginning after December 15, 2017 including interim periods within that reporting period. Management is evaluating the impact of adopting ASU 2014-09. In January 2016, the FASB issued ASU 2016-01, Financial Instruments (Topic 825): Recognition and Measurement of Financial Assets and Liabilities. The main provisions of the update are to eliminate the available for sale classification of accounting for equity securities and to adjust the fair value disclosures for financial instruments carried at amortized costs such that the disclosed fair values represent an exit price as opposed to an entry price. The provisions of this update will require that equity securities be carried at fair market value on the balance sheet and any periodic changes in value will be adjustments to the income statement. A practical expedient is provided for equity securities without a readily determinable fair value, such that these securities can be carried at cost less any impairment. The provisions of this update become effective for interim and annual periods beginning after December 15, 2017. Upon the effective date of the update, changes in the value of the Company's common stock investments will be adjustments to the income statement. Management does not expect the remaining requirements of this update to have a material impact on the Company’s financial position, results of operations or cash flows. In February 2016, the FASB issued an update (ASU No. 2016-02, Leases) creating FASB Topic 842, Leases. The guidance is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and requiring more disclosures related to leasing transactions. The amendments in this update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the impact on the consolidated financial statements and related disclosures. In March 2016, the FASB issued an update (ASU No. 2016-09, Stock Compensation: Improvements to Employee Share-Based Payment Accounting.) The guidance in this update affects any entity that issues share-based payment awards including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flow. The amendments in this update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is permitted. The Company is currently evaluating the impact on the consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), commonly referred to as “CECL”. The provisions of the update eliminate the probable initial recognition threshold under current GAAP which requires reserves to be based on an incurred loss methodology. Under CECL reserves required for financial assets measured at amortized cost will reflect an organization’s estimate of all expected credit losses over the contractual term of the financial asset and thereby require the use of reasonable and supportable forecasts to estimate future credit losses. Because CECL encompasses all financial assets carried at amortized cost, the requirement that reserves be established based on an organization’s reasonable and supportable estimate of expected credit losses extends to held to maturity debt securities. Under the provisions of the update credit losses recognized on available for sale debt securities will be presented as an allowance as opposed to a write-down. In addition, CECL will modify the accounting for purchased loans, with credit deterioration since origination, so that reserves are established at the date of acquisition for purchased loans. Under current GAAP a purchased loan’s contractual balance is adjusted to fair value through a credit discount and no reserve is recorded on the purchased loan upon acquisition. Since under CECL reserves will be established for purchased loans at the time of acquisition the accounting for purchased loans is made more comparable to the accounting for originated loans. Finally, increased disclosure requirements under CECL oblige organizations to present the currently required credit quality disclosures disaggregated by the year of origination or vintage. FASB expects that the evaluation of underwriting standards and credit quality trends by financial statement users will be enhanced with the additional vintage disclosures. For public entities the amendments of the update are effective beginning January 1, 2020. Management is in the process of evaluating the impact of CECL on the Company’s financial position, results of operations and cash flows as well as its required disclosures. |
Investments (Tables) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale Securities [Table Text Block] | A summary of investment securities available-for-sale is as follows:
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Available For Sale Securities Continuous Unrealized Loss Position Fair Value [Table Text Block] | Securities which were temporarily impaired are shown below, along with the length of time in a continuous unrealized loss position.
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Investments Classified by Contractual Maturity Date [Table Text Block] | The table below of the amortized cost and estimated fair value of investment securities includes scheduled principal payments and estimated prepayments, based on observable market inputs, for agency mortgage-backed securities. Actual maturities will differ from contractual maturities because borrowers have the right to prepay obligations with or without prepayment penalties. The amortized cost and fair value of investment securities at June 30, 2016 are as follows:
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Schedule of Realized Gain (Loss) [Table Text Block] | Sales proceeds and gross realized gains and losses on sales of available-for-sale securities are as follows:
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Loans and Allowance for Loan Losses (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Loans consisted of the following as of the dates indicated below:
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Allowance for Credit Losses on Financing Receivables [Table Text Block] | The following tables provide information on the Company’s activity in the allowance for loan losses by loan class:
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Impaired Financing Receivables [Table Text Block] | The following tables present information on impaired loans:
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Past Due Financing Receivables [Table Text Block] | The following tables present information on the Company’s past due and non-accrual loans by loan class:
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Risk Categories By Loan Class [Table Text Block] | The following table provides information on the Company’s risk categories by loan class:
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Troubled Debt Restructurings on Financing Receivables [Table Text Block] | The following table presents information on loans that are classified as TDRs:
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Goodwill and Other Intangible Assets (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Intangible Assets and Goodwill [Table Text Block] | A summary of the other intangible assets that continue to be subject to amortization is as follows:
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Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The following sets forth estimated amortization expense for core deposit and lease intangible assets for the remainder of 2016 and in successive years ending December 31:
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Schedule of Participating Mortgage Loans [Table Text Block] | The following table provides information on the principal balances of mortgage loans serviced for others:
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Servicing Asset at Amortized Cost [Table Text Block] | Activity for mortgage servicing rights and the related valuation allowance follows:
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Earnings per Share (Tables) |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The shares used in the calculation of basic and diluted earnings per share are shown below:
(1) Share and per share values for the periods ended June 30, 2015 have been adjusted to give effect to the 5% stock dividend paid during December 2015. |
Repurchase Agreements (Tables) |
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Banking and Thrift [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Repurchase Agreements [Table Text Block] | The Company has overnight repurchase agreements with certain deposit customers whereby the Company uses investment securities as collateral for non-insured funds. These balances are accounted for as collateralized financing and included in other borrowings on the balance sheet. The following is a summary of the balances of and collateral for the Company’s repurchase agreements:
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Fair Value of Financial Instruments and Fair Value Measurements (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, by Balance Sheet Grouping [Table Text Block] | Fair value estimates of the Company’s financial instruments as of June 30, 2016 and December 31, 2015, including methods and assumptions utilized, are set forth below:
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Fair Value, Assets Measured On Recurring Basis [Table Text Block] | The following table represents the Company’s financial instruments that are measured at fair value on a recurring basis at June 30, 2016 and December 31, 2015, allocated to the appropriate fair value hierarchy:
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Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block] | The following table represents the Company’s financial instruments that are measured at fair value on a non-recurring basis as of June 30, 2016 and December 31, 2015 allocated to the appropriate fair value hierarchy:
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Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block] | The following table presents quantitative information about Level 3 fair value measurements for impaired loans measured at fair value on a non-recurring basis as of June 30, 2016 and December 31, 2015.
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Regulatory Capital Requirements (Tables) |
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Banking and Thrift [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Compliance with Regulatory Capital Requirements for Mortgage Companies [Table Text Block] | The following is a comparison of the Company’s regulatory capital to minimum capital requirements at June 30, 2016 and December 31, 2015:
*The ratios for June 30, 2016 include a capital conservation buffer of 0.625%. |
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Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | The following is a comparison of the Bank’s regulatory capital to minimum capital requirements at June 30, 2016 and December 31, 2015:
*The ratios for June 30, 2016 include a capital conservation buffer of 0.625% |
Investments (Details 2) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
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Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost, Due in less than one year | $ 17,508 | |
Amortized cost, Due after one year but within five years | 180,166 | |
Amortized cost, Due after five years but within ten years | 88,657 | |
Amortized cost, Due after ten years | 69,384 | |
Amortized cost | 356,277 | $ 350,029 |
Amortized cost, Total | 356,277 | |
Estimated fair value, Due in less than one year | 17,598 | |
Estimated fair value, Due after one year but within five years | 182,762 | |
Estimated fair value, Due after five years but within ten years | 92,255 | |
Estimated fair value, Due after ten years | 72,621 | |
Estimated fair value | 366,550 | 353,438 |
Securities available-for-sale, at fair value | 366,550 | 353,438 |
Common Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 562 | 580 |
Estimated fair value | 1,314 | 1,486 |
Securities available-for-sale, at fair value | $ 1,314 | $ 1,486 |
Investments (Details 3) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
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Schedule of Available-for-sale Securities [Line Items] | ||||
Sales proceeds | $ 11,801 | $ 0 | $ 13,617 | $ 19,069 |
Realized gains | 296 | 0 | 312 | 24 |
Realized losses | (11) | 0 | (15) | (278) |
Net realized gains (losses) | $ 285 | $ 0 | $ 297 | $ (254) |
Investments (Details Textual) - USD ($) $ in Millions |
Jun. 30, 2016 |
Dec. 31, 2015 |
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Schedule of Available-for-sale Securities [Line Items] | ||
Security Owned and Pledged as Collateral, Fair Value, Total | $ 201.8 | $ 171.6 |
Goodwill and Other Intangible Assets (Details 1) $ in Thousands |
Jun. 30, 2016
USD ($)
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Finite-Lived Intangible Assets [Line Items] | |
Remainder of 2016 | $ 160 |
2017 | 289 |
2018 | 252 |
2019 | 214 |
2020 | 177 |
Thereafter | 205 |
Total | $ 1,297 |
Goodwill and Other Intangible Assets (Details 2) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
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FHLMC [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage Loans on Real Estate, Face Amount of Mortgages | $ 467,663 | $ 444,714 |
FHLB [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage Loans on Real Estate, Face Amount of Mortgages | $ 12,685 | $ 14,039 |
Goodwill and Other Intangible Assets (Details 3) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
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Mortgage servicing rights: | ||||
Balance at beginning of period | $ 2,808 | $ 2,557 | $ 2,840 | $ 2,477 |
Additions | 291 | 408 | 512 | 710 |
Amortization | (248) | (236) | (501) | (458) |
Balance at end of period | $ 2,851 | $ 2,729 | $ 2,851 | $ 2,729 |
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | |||||||
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Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
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Net earnings | $ 2,245 | $ 2,616 | $ 4,522 | $ 5,393 | |||||
Weighted average common shares outstanding - basic | [1] | 3,613,671 | 3,504,295 | 3,585,235 | 3,503,495 | ||||
Assumed exercise of stock options | [1] | 76,324 | 109,128 | 75,064 | 103,749 | ||||
Weighted average common shares outstanding - diluted | [1] | 3,689,995 | 3,613,423 | 3,660,299 | 3,607,244 | ||||
Net earnings per share : | |||||||||
Basic | [1],[2] | $ 0.62 | $ 0.75 | $ 1.26 | $ 1.54 | ||||
Diluted | [1],[2] | $ 0.61 | $ 0.72 | $ 1.24 | $ 1.5 | ||||
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Earnings per Share (Details Textual) |
12 Months Ended |
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Dec. 31, 2015 | |
Percentage Of Stocks Dividend | 5.00% |
Repurchase Agreements (Details Textual) - USD ($) $ in Millions |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Assets Sold under Agreements to Repurchase [Line Items] | ||
Customer Funds | $ 11.5 | $ 12.0 |
Repurchase Agreements [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Debt Instrument, Collateral Amount | $ 17.3 | $ 15.7 |
Fair Value of Financial Instruments and Fair Value Measurements (Details Textual) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Fair Value of Financial Instruments And Fair Value Measurements [Line Items] | ||
Impaired Financing Receivable, Related Allowance | $ 245 | $ 88 |
Impaired Financing Receivable, Recorded Investment, Total | $ 7,085 | $ 6,837 |
Regulatory Capital Requirements (Details 1) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
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Regulatory Capital Requirements [Line Items] | |||||
Leverage - For capital adequacy purposes Ratio | 4.00% | ||||
Common Equity Tier 1 Capital - For capital adequacy purposes Ratio | 4.50% | ||||
Total Risk Based Capital - For capital adequacy purposes Ratio | 8.00% | ||||
Banks Regulatory Capital Requirements [Member] | |||||
Regulatory Capital Requirements [Line Items] | |||||
Leverage - Actual Amount | $ 83,830 | $ 79,857 | |||
Common Equity Tier 1 Capital - Actual Amount | 83,830 | 79,857 | |||
Tier 1 Capital - Actual Amount | 83,830 | 79,857 | |||
Total Risk Based Capital - Actual Amount | $ 89,632 | $ 85,929 | |||
Leverage - Actual Ratio | 9.53% | 9.40% | |||
Common Equity Tier 1 Capital - Actual Ratio | 15.50% | 14.66% | |||
Tier 1 Capital - Actual Ratio | 15.50% | 14.66% | |||
Total Risk Based Capital - Actual Ratio | 16.57% | 15.77% | |||
Leverage - For capital adequacy purposes Amount | [1] | $ 35,198 | $ 33,993 | ||
Common Equity Tier 1 Capital - For capital adequacy purposes Amount | [1] | 27,716 | 24,519 | ||
Tier 1 Capital - For capital adequacy purposes Amount | [1] | 35,829 | 32,692 | ||
Total Risk Based Capital - For capital adequacy purposes Amount | [1] | $ 46,645 | $ 43,589 | ||
Leverage - For capital adequacy purposes Ratio | [1] | 4.00% | 4.00% | ||
Common Equity Tier 1 Capital - For capital adequacy purposes Ratio | [1] | 5.10% | 4.50% | ||
Tier 1 Capital - For capital adequacy purposes Ratio | [1] | 6.60% | 6.00% | ||
Total Risk Based Capital - For capital adequacy purposes Ratio | [1] | 8.60% | 8.00% | ||
Leverage - To be well-capitalized under prompt corrective action provisions Amount | $ 43,998 | $ 42,491 | |||
Common Equity Tier 1 Capital - To be well-capitalized under prompt corrective action provisions Amount | 35,153 | 35,416 | |||
Tier 1 Capital - To be well-capitalized under prompt corrective action provisions Amount | 43,265 | 43,589 | |||
Total Risk Based Capital - To be well-capitalized under prompt corrective action provisions Amount | $ 54,081 | $ 54,486 | |||
Leverage - To be well-capitalized under prompt corrective action provisions Ratio | 5.00% | 5.00% | |||
Common Equity Tier 1 Capital - To be well-capitalized under prompt corrective action provisions Ratio | 6.50% | 6.50% | |||
Tier 1 Capital - To be well-capitalized under prompt corrective action provisions Ratio | 8.00% | 8.00% | |||
Total Risk Based Capital - To be well-capitalized under prompt corrective action provisions Ratio | 10.00% | 10.00% | |||
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Regulatory Capital Requirements (Details Textual) - USD ($) $ in Thousands |
6 Months Ended | 37 Months Ended | |
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Jun. 30, 2016 |
Jan. 31, 2019 |
Dec. 31, 2015 |
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Regulatory Capital Requirements [Line Items] | |||
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | 4.00% | ||
Capital Required for Capital Adequacy to Risk Weighted Assets | 8.00% | ||
Assets, Total | $ 896,322 | $ 878,376 | |
Common Equity Tier One Risk Based Capital Required For Capital Adequacy To Risk Weighted Assets | 4.50% | ||
Scenario, Forecast [Member] | |||
Regulatory Capital Requirements [Line Items] | |||
Tier One Capital Conversation Buffer | 2.50% | ||
Maximum [Member] | |||
Regulatory Capital Requirements [Line Items] | |||
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 6.00% | ||
Small Bank Holding Companies [Member] | |||
Regulatory Capital Requirements [Line Items] | |||
Assets, Total | $ 1,000,000 | ||
Opt Out Election Description | The Bank made the one-time accumulated other comprehensive income (“AOCI”) opt-out election on its first Call Report filed after January 1, 2015, which allowed banks under $250 billion a one-time opt-out election to remove the impact of certain unrealized capital gains and losses from the calculation of capital. | ||
Capital Conservation Buffer [Member] | |||
Regulatory Capital Requirements [Line Items] | |||
Tier One Capital Conversation Buffer | 0.625% | ||
Tier One Capital Conversation Buffer, Increase | 0.625% |