LANDMARK BANCORP INC, 10-Q filed on 8/5/2016
Quarterly Report
v3.5.0.2
Document And Entity Information - shares
6 Months Ended
Jun. 30, 2016
Aug. 04, 2016
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
v3.5.0.2
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Jun. 30, 2016
Dec. 31, 2015
Assets    
Cash and cash equivalents $ 14,317 $ 13,569
Investment securities available-for-sale, at fair value 366,550 353,438
Bank Stocks, at cost 4,622 4,497
Loans, net of allowance for loans losses of $5,652 and $5,922 430,064 419,923
Loans held for sale, net 10,057 14,465
Premises and equipment, net 20,760 20,958
Bank owned life insurance 18,078 18,164
Goodwill 17,532 17,532
Other intangible assets, net 4,148 4,304
Real estate owned, net 718 1,000
Accrued interest and other assets 9,476 10,526
Total assets 896,322 878,376
Deposits:    
Non-interest-bearing demand 151,049 143,616
Money market and checking 328,816 346,106
Savings 87,106 81,062
Time 148,650 143,943
Total deposits 715,621 714,727
Federal Home Loan Bank borrowings 48,000 37,600
Subordinated debentures 21,184 21,084
Other borrowings 11,527 11,974
Accrued interest, taxes, and other liabilities 10,623 12,421
Total liabilities 806,955 797,806
Commitments and contingencies
Stockholders' equity:    
Preferred stock, $0.01 par value per share, 200,000 shares authorized; none issued 0 0
Common stock, $0.01 par value per share, 7,500,000 shares authorized; 3,620,669 and 3,531,036 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively 36 35
Additional paid-in capital 46,763 45,372
Retained earnings 36,073 32,988
Accumulated other comprehensive income 6,495 2,175
Total stockholders' equity 89,367 80,570
Total liabilities and stockholders' equity $ 896,322 $ 878,376
v3.5.0.2
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
v3.5.0.2
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
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
[1] Per share amounts for the periods ended June 30, 2015 have been adjusted to give effect to the 5% stock dividend paid during December 2015.
[2] 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.
v3.5.0.2
CONSOLIDATED STATEMENTS OF EARNINGS [Parenthetical]
12 Months Ended
Dec. 31, 2015
Percentage Of Stocks Dividend 5.00%
v3.5.0.2
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
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
v3.5.0.2
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
v3.5.0.2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY [Parenthetical] - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
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
[1] Per share amounts for the periods ended June 30, 2015 have been adjusted to give effect to the 5% stock dividend paid during December 2015.
v3.5.0.2
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Cash flows from operating activities:    
Net earnings $ 4,522 $ 5,393
Adjustments to reconcile net earnings to net cash provided by operating activities:    
Provision for loan losses 350 (800)
Amortization of investment security premiums, net 818 767
Amortization of purchase accounting adjustment on loans (57) (362)
Amortization of purchase accounting adjustment on subordinated debentures 100 100
Amortization of intangibles 668 681
Depreciation 581 577
Increase in cash surrender value of bank owned life insurance (265) (245)
Stock-based compensation 0 16
Deferred income taxes 229 215
Net (gains) losses on sales of investment securities (297) 254
Impairment of affordable housing investment 0 163
Net loss (gain) on sales of premises, equipment and real estate owned 72 (236)
Net gains on sales of loans (3,199) (4,194)
Proceeds from sales of loans 121,551 148,064
Origination of loans held for sale (113,944) (151,326)
Changes in assets and liabilities:    
Accrued interest and other assets (1,536) (1,534)
Accrued expenses, taxes, and other liabilities (2,538) (1,237)
Net cash provided by (used in) operating activities 7,055 (3,704)
Cash flows from investing activities:    
Net increase in loans (10,932) (3,659)
Maturities and prepayments of investment securities 23,429 34,411
Purchases of investment securities (43,815) (62,094)
Proceeds from sales of investment securities 13,617 19,069
Redemption of bank stocks 3,009 4,769
Purchase of bank stocks (3,134) (5,951)
Proceeds from sales of premises and equipment and foreclosed assets 749 219
Proceeds from bank owned life insurance 351 0
Purchases of premises and equipment, net (386) (509)
Net cash used in investing activities (17,112) (13,745)
Cash flows from financing activities:    
Net increase (decrease) in deposits 897 (5,005)
Federal Home Loan Bank advance borrowings 156,291 131,251
Federal Home Loan Bank advance repayments (145,891) (103,945)
Proceeds from other borrowings 0 1,400
Repayments on other borrowings (447) (2,688)
Proceeds from exercise of stock options, including excess tax benefit 1,392 79
Payment of dividends (1,437) (1,268)
Net cash provided by financing activities 10,805 19,824
Net increase in cash and cash equivalents 748 2,375
Cash and cash equivalents at beginning of period 13,569 12,760
Cash and cash equivalents at end of period 14,317 15,135
Supplemental disclosure of cash flow information:    
Cash payments for income taxes 500 1,890
Cash paid for interest 1,599 1,551
Supplemental schedule of noncash investing and financing activities:    
Transfer of loans to real estate owned 536 24
Investment securities purchases not yet settled $ 0 $ (2,817)
v3.5.0.2
Interim Financial Statements
6 Months Ended
Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]
 
1.
Interim Financial Statements
 
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.
v3.5.0.2
Investments
6 Months Ended
Jun. 30, 2016
Investments, Debt and Equity Securities [Abstract]  
Marketable Securities [Text Block]
2.
Investments
 
A summary of investment securities available-for-sale is as follows:
 
 
 
As of June 30, 2016
 
 
 
 
 
 
Gross
 
Gross
 
 
 
 
 
 
Amortized
 
unrealized
 
unrealized
 
Estimated
 
(Dollars in thousands)
 
cost
 
gains
 
losses
 
fair value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U. S. treasury securities
 
$
6,011
 
$
38
 
$
-
 
$
6,049
 
U. S. federal agency obligations
 
 
27,721
 
 
269
 
 
(5)
 
 
27,985
 
Municipal obligations, tax exempt
 
 
150,554
 
 
5,203
 
 
(22)
 
 
155,735
 
Municipal obligations, taxable
 
 
71,998
 
 
2,268
 
 
-
 
 
74,266
 
Agency mortgage-backed securities
 
 
89,731
 
 
1,781
 
 
(11)
 
 
91,501
 
Common stocks
 
 
562
 
 
752
 
 
-
 
 
1,314
 
Certificates of deposit
 
 
9,700
 
 
-
 
 
-
 
 
9,700
 
Total
 
$
356,277
 
$
10,311
 
$
(38)
 
$
366,550
 
 
 
 
As of December 31, 2015
 
 
 
 
 
 
Gross
 
Gross
 
 
 
 
 
 
Amortized
 
unrealized
 
unrealized
 
Estimated
 
(Dollars in thousands)
 
cost
 
gains
 
losses
 
fair value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U. S. treasury securities
 
$
6,517
 
$
1
 
$
(1)
 
$
6,517
 
U. S. federal agency obligations
 
 
30,064
 
 
43
 
 
(187)
 
 
29,920
 
Municipal obligations, tax exempt
 
 
135,341
 
 
2,671
 
 
(71)
 
 
137,941
 
Municipal obligations, taxable
 
 
81,999
 
 
472
 
 
(581)
 
 
81,890
 
Agency mortgage-backed securities
 
 
85,829
 
 
391
 
 
(235)
 
 
85,985
 
Common stocks
 
 
580
 
 
906
 
 
-
 
 
1,486
 
Certificates of deposit
 
 
9,699
 
 
-
 
 
-
 
 
9,699
 
Total
 
$
350,029
 
$
4,484
 
$
(1,075)
 
$
353,438
 
 
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.
 
 
 
 
 
 
As of June 30, 2016
 
(Dollars in thousands)
 
 
 
 
Less than 12 months
 
12 months or longer
 
Total
 
 
 
No. of
 
Fair
 
Unrealized
 
Fair
 
Unrealized
 
Fair
 
Unrealized
 
 
 
securities
 
value
 
losses
 
value
 
losses
 
value
 
losses
 
U.S. federal agency obligations
 
 
1
 
$
-
 
$
-
 
$
3,200
 
$
(5)
 
$
3,200
 
$
(5)
 
Municipal obligations, tax exempt
 
 
20
 
 
4,313
 
 
(20)
 
 
626
 
 
(2)
 
 
4,939
 
 
(22)
 
Agency mortgage-backed securities
 
 
12
 
 
645
 
 
(1)
 
 
1,907
 
 
(10)
 
 
2,552
 
 
(11)
 
Total
 
 
33
 
$
4,958
 
$
(21)
 
$
5,733
 
$
(17)
 
$
10,691
 
$
(38)
 
 
 
 
 
 
 
As of December 31, 2015
 
(Dollars in thousands)
 
 
 
 
Less than 12 months
 
12 months or longer
 
Total
 
 
 
No. of
 
Fair
 
Unrealized
 
Fair
 
Unrealized
 
Fair
 
Unrealized
 
 
 
securities
 
value
 
losses
 
value
 
losses
 
value
 
losses
 
U.S. treasury securities
 
 
2
 
$
3,542
 
$
(1)
 
$
-
 
$
-
 
$
3,542
 
$
(1)
 
U. S. federal agency obligations
 
 
18
 
 
23,015
 
 
(163)
 
 
1,976
 
 
(24)
 
 
24,991
 
 
(187)
 
Municipal obligations, tax exempt
 
 
47
 
 
11,328
 
 
(53)
 
 
2,132
 
 
(18)
 
 
13,460
 
 
(71)
 
Municipal obligations, taxable
 
 
105
 
 
38,605
 
 
(494)
 
 
5,068
 
 
(87)
 
 
43,673
 
 
(581)
 
Agency mortgage-backed securities
 
 
40
 
 
29,814
 
 
(166)
 
 
2,925
 
 
(69)
 
 
32,739
 
 
(235)
 
Total
 
 
212
 
$
106,304
 
$
(877)
 
$
12,101
 
$
(198)
 
$
118,405
 
$
(1,075)
 
 
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:
 
(Dollars in thousands)
 
Amortized
 
Estimated
 
 
 
cost
 
fair value
 
Due in less than one year
 
$
17,508
 
$
17,598
 
Due after one year but within five years
 
 
180,166
 
 
182,762
 
Due after five years but within ten years
 
 
88,657
 
 
92,255
 
Due after ten years
 
 
69,384
 
 
72,621
 
Common stocks
 
 
562
 
 
1,314
 
Total
 
$
356,277
 
$
366,550
 
  
Sales proceeds and gross realized gains and losses on sales of available-for-sale securities are as follows:
 
(Dollars in thousands)
 
Three months ended June 30,
 
Six months ended June 30,
 
 
 
2016
 
2015
 
2016
 
2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales proceeds
 
$
11,801
 
$
-
 
$
13,617
 
$
19,069
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Realized gains
 
$
296
 
$
-
 
$
312
 
$
24
 
Realized losses
 
 
(11)
 
 
-
 
 
(15)
 
 
(278)
 
Net realized losses
 
$
285
 
$
-
 
$
297
 
$
(254)
 
 
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.
v3.5.0.2
Loans and Allowance for Loan Losses
6 Months Ended
Jun. 30, 2016
Receivables [Abstract]  
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]
3.
Loans and Allowance for Loan Losses
 
Loans consisted of the following as of the dates indicated below:
 
 
 
June 30,
 
December 31,
 
(Dollars in thousands)
 
2016
 
2015
 
 
 
 
 
 
 
 
 
One-to-four family residential real estate
 
$
130,753
 
$
131,930
 
Construction and land
 
 
18,381
 
 
15,043
 
Commercial real estate
 
 
119,147
 
 
118,983
 
Commercial loans
 
 
62,120
 
 
61,300
 
Agriculture loans
 
 
78,817
 
 
71,030
 
Municipal loans
 
 
7,263
 
 
7,635
 
Consumer loans
 
 
19,203
 
 
19,895
 
Total gross loans
 
 
435,684
 
 
425,816
 
Net deferred loan costs and loans in process
 
 
32
 
 
29
 
Allowance for loan losses
 
 
(5,652)
 
 
(5,922)
 
Loans, net
 
$
430,064
 
$
419,923
 
 
The following tables provide information on the Company’s activity in the allowance for loan losses by loan class:
 
 
 
Three and six months ended June 30, 2016
 
(Dollars in thousands)
 
One-to-four
family
residential
real estate
 
Construction
and land
 
Commercial
real estate
 
Commercial
loans
 
Agriculture
loans
 
Municipal
loans
 
Consumer
loans
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at April 1, 2016
 
$
864
 
$
82
 
$
1,831
 
$
1,384
 
$
1,483
 
$
24
 
$
201
 
$
5,869
 
Charge-offs
 
 
-
 
 
-
 
 
-
 
 
(306)
 
 
(83)
 
 
-
 
 
(148)
 
 
(537)
 
Recoveries
 
 
3
 
 
-
 
 
-
 
 
1
 
 
-
 
 
6
 
 
10
 
 
20
 
Provision for loan losses
 
 
(283)
 
 
7
 
 
(55)
 
 
314
 
 
200
 
 
(7)
 
 
124
 
 
300
 
Balance at June 30, 2016
 
 
584
 
 
89
 
 
1,776
 
 
1,393
 
 
1,600
 
 
23
 
 
187
 
 
5,652
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at January 1, 2016
 
$
925
 
$
77
 
$
1,740
 
$
1,530
 
$
1,428
 
$
23
 
$
199
 
$
5,922
 
Charge-offs
 
 
-
 
 
-
 
 
-
 
 
(306)
 
 
(83)
 
 
-
 
 
(285)
 
 
(674)
 
Recoveries
 
 
5
 
 
-
 
 
-
 
 
20
 
 
-
 
 
6
 
 
23
 
 
54
 
Provision for loan losses
 
 
(346)
 
 
12
 
 
36
 
 
149
 
 
255
 
 
(6)
 
 
250
 
 
350
 
Balance at June 30, 2016
 
 
584
 
 
89
 
 
1,776
 
 
1,393
 
 
1,600
 
 
23
 
 
187
 
 
5,652
 
 
 
 
Three and six months ended June 30, 2015
 
(Dollars in thousands)
 
One-to-four
family
residential
real estate
 
Construction
and land
 
Commercial
real estate
 
Commercial
loans
 
Agriculture
loans
 
Municipal
loans
 
Consumer
loans
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at April 1, 2015
 
$
1,386
 
$
103
 
$
1,600
 
$
1,515
 
$
1,104
 
$
25
 
$
172
 
$
5,905
 
Charge-offs
 
 
(9)
 
 
-
 
 
-
 
 
(10)
 
 
-
 
 
-
 
 
(88)
 
 
(107)
 
Recoveries
 
 
3
 
 
4
 
 
2
 
 
2
 
 
-
 
 
-
 
 
8
 
 
19
 
Provision for loan losses
 
 
(55)
 
 
(9)
 
 
(63)
 
 
249
 
 
(2)
 
 
(4)
 
 
84
 
 
200
 
Balance at June 30, 2015
 
 
1,325
 
 
99
 
 
1,539
 
 
1,756
 
 
1,102
 
 
21
 
 
176
 
 
6,018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at January 1, 2015
 
$
755
 
$
762
 
$
1,832
 
$
836
 
$
915
 
$
51
 
$
169
 
$
5,320
 
Charge-offs
 
 
(9)
 
 
-
 
 
-
 
 
(10)
 
 
-
 
 
(88)
 
 
(142)
 
 
(249)
 
Recoveries
 
 
5
 
 
1,719
 
 
2
 
 
3
 
 
-
 
 
-
 
 
18
 
 
1,747
 
Provision for loan losses
 
 
574
 
 
(2,382)
 
 
(295)
 
 
927
 
 
187
 
 
58
 
 
131
 
 
(800)
 
Balance at June 30, 2015
 
 
1,325
 
 
99
 
 
1,539
 
 
1,756
 
 
1,102
 
 
21
 
 
176
 
 
6,018
 
 
The following tables provide information on the Company’s activity in the allowance for loan losses by loan class and allowance methodology:
 
 
 
As of June 30, 2016
 
(Dollars in thousands)
 
One-to-four
family
residential
real estate
 
Construction
and land
 
Commercial
real estate
 
Commercial
loans
 
Agriculture
loans
 
Municipal
loans
 
Consumer
loans
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for loss
 
 
19
 
 
-
 
 
-
 
 
13
 
 
206
 
 
-
 
 
7
 
 
245
 
Collectively evaluated for loss
 
 
565
 
 
89
 
 
1,776
 
 
1,380
 
 
1,394
 
 
23
 
 
180
 
 
5,407
 
Total
 
 
584
 
 
89
 
 
1,776
 
 
1,393
 
 
1,600
 
 
23
 
 
187
 
 
5,652
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loan balances:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for loss
 
 
1,106
 
 
2,061
 
 
2,417
 
 
127
 
 
879
 
 
393
 
 
102
 
 
7,085
 
Collectively evaluated for loss
 
 
129,647
 
 
16,320
 
 
116,730
 
 
61,993
 
 
77,938
 
 
6,870
 
 
19,101
 
 
428,599
 
Total
 
$
130,753
 
$
18,381
 
$
119,147
 
$
62,120
 
$
78,817
 
$
7,263
 
$
19,203
 
$
435,684
 
 
 
 
As of December 31, 2015
 
(Dollars in thousands)
 
One-to-four
family
residential
real estate
 
Construction
and land
 
Commercial
real estate
 
Commercial
loans
 
Agriculture
loans
 
Municipal
loans
 
Consumer
loans
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for loss
 
 
78
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
10
 
 
88
 
Collectively evaluated for loss
 
 
847
 
 
77
 
 
1,740
 
 
1,530
 
 
1,428
 
 
23
 
 
189
 
 
5,834
 
Total
 
 
925
 
 
77
 
 
1,740
 
 
1,530
 
 
1,428
 
 
23
 
 
199
 
 
5,922
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loan balances:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for loss
 
 
752
 
 
2,220
 
 
2,429
 
 
620
 
 
189
 
 
591
 
 
36
 
 
6,837
 
Collectively evaluated for loss
 
 
131,178
 
 
12,823
 
 
116,554
 
 
60,680
 
 
70,841
 
 
7,044
 
 
19,859
 
 
418,979
 
Total
 
$
131,930
 
$
15,043
 
$
118,983
 
$
61,300
 
$
71,030
 
$
7,635
 
$
19,895
 
$
425,816
 
 
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:
 
(Dollars in thousands)
 
As of June 30, 2016
 
 
 
Unpaid
contractual
principal
 
Impaired
loan balance
 
Impaired
loans
without an
allowance
 
Impaired
loans with
an
allowance
 
Related
allowance
recorded
 
Year-to-
date average
loan balance
 
Year-to-
date interest
income
recognized
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One-to-four family residential real estate
 
$
1,106
 
$
1,106
 
$
502
 
$
604
 
$
19
 
$
1,117
 
$
4
 
Construction and land
 
 
3,796
 
 
2,061
 
 
2,061
 
 
-
 
 
-
 
 
2,137
 
 
38
 
Commercial real estate
 
 
2,417
 
 
2,417
 
 
2,417
 
 
-
 
 
-
 
 
2,426
 
 
253
 
Commercial loans
 
 
127
 
 
127
 
 
75
 
 
52
 
 
13
 
 
148
 
 
1
 
Agriculture loans
 
 
879
 
 
879
 
 
225
 
 
654
 
 
206
 
 
918
 
 
1
 
Municipal loans
 
 
393
 
 
393
 
 
393
 
 
-
 
 
-
 
 
514
 
 
8
 
Consumer loans
 
 
102
 
 
102
 
 
86
 
 
16
 
 
7
 
 
106
 
 
-
 
Total impaired loans
 
$
8,820
 
$
7,085
 
$
5,759
 
$
1,326
 
$
245
 
$
7,366
 
$
305
 
 
(Dollars in thousands)
 
As of December 31, 2015
 
 
 
Unpaid
contractual
principal
 
Impaired
loan balance
 
Impaired
loans
without an
allowance
 
Impaired
loans with
an
allowance
 
Related
allowance
recorded
 
Year-to-
date average
loan balance
 
Year-to-
date interest
income
recognized
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One-to-four family residential real estate
 
$
752
 
$
752
 
$
408
 
$
344
 
$
78
 
$
1,041
 
$
-
 
Construction and land
 
 
3,955
 
 
2,220
 
 
2,220
 
 
-
 
 
-
 
 
2,389
 
 
88
 
Commercial real estate
 
 
2,429
 
 
2,429
 
 
2,429
 
 
-
 
 
-
 
 
2,484
 
 
175
 
Commercial loans
 
 
637
 
 
620
 
 
620
 
 
-
 
 
-
 
 
634
 
 
3
 
Agriculture loans
 
 
189
 
 
189
 
 
189
 
 
-
 
 
-
 
 
188
 
 
3
 
Municipal loans
 
 
591
 
 
591
 
 
591
 
 
-
 
 
-
 
 
631
 
 
19
 
Consumer loans
 
 
36
 
 
36
 
 
10
 
 
26
 
 
10
 
 
41
 
 
-
 
Total impaired loans
 
$
8,589
 
$
6,837
 
$
6,467
 
$
370
 
$
88
 
$
7,408
 
$
288
 
 
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:
 
(Dollars in thousands)
 
As of June 30, 2016
 
 
 
30-59 days
delinquent
and
accruing
 
 
60-89 days
delinquent
and
accruing
 
 
90 days or
more
delinquent
and accruing
 
 
Total past
due loans
accruing
 
 
Non-accrual
loans
 
 
Total past
due and non-
accrual loans
 
 
Total loans
not past due
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One-to-four family residential real estate
 
$
140
 
 
$
512
 
 
$
-
 
 
$
652
 
 
$
916
 
 
$
1,568
 
 
$
129,185
 
Construction and land
 
 
5
 
 
 
-
 
 
 
-
 
 
 
5
 
 
 
607
 
 
 
612
 
 
 
17,769
 
Commercial real estate
 
 
10
 
 
 
237
 
 
 
-
 
 
 
247
 
 
 
39
 
 
 
286
 
 
 
118,861
 
Commercial loans
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
96
 
 
 
96
 
 
 
62,024
 
Agriculture loans
 
 
174
 
 
 
30
 
 
 
218
 
 
 
422
 
 
 
834
 
 
 
1,256
 
 
 
77,561
 
Municipal loans
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
7,263
 
Consumer loans
 
 
82
 
 
 
23
 
 
 
-
 
 
 
105
 
 
 
102
 
 
 
207
 
 
 
18,996
 
Total
 
$
411
 
 
$
802
 
 
$
218
 
 
$
1,431
 
 
$
2,594
 
 
$
4,025
 
 
$
431,659
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percent of gross loans
 
 
0.09
%
 
 
0.18
%
 
 
0.05
%
 
 
0.32
%
 
 
0.60
%
 
 
0.92
%
 
 
99.08
%
 
(Dollars in thousands)
 
As of December 31, 2015
 
 
 
30-59 days
delinquent
and
accruing
 
 
60-89 days
delinquent
and
accruing
 
 
90 days or
more
delinquent
and accruing
 
 
Total past
due loans
accruing
 
 
Non-accrual
loans
 
 
Total past
due and non-
accrual loans
 
 
Total loans
not past due
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One-to-four family residential real estate
 
$
70
 
 
$
712
 
 
$
-
 
 
$
782
 
 
$
749
 
 
$
1,531
 
 
$
130,399
 
Construction and land
 
 
4
 
 
 
-
 
 
 
-
 
 
 
4
 
 
 
614
 
 
 
618
 
 
 
14,425
 
Commercial real estate
 
 
240
 
 
 
-
 
 
 
-
 
 
 
240
 
 
 
47
 
 
 
287
 
 
 
118,696
 
Commercial loans
 
 
90
 
 
 
40
 
 
 
-
 
 
 
130
 
 
 
583
 
 
 
713
 
 
 
60,587
 
Agriculture loans
 
 
174
 
 
 
5
 
 
 
-
 
 
 
179
 
 
 
139
 
 
 
318
 
 
 
70,712
 
Municipal loans
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
7,635
 
Consumer loans
 
 
65
 
 
 
2
 
 
 
-
 
 
 
67
 
 
 
36
 
 
 
103
 
 
 
19,792
 
Total
 
$
643
 
 
$
759
 
 
$
-
 
 
$
1,402
 
 
$
2,168
 
 
$
3,570
 
 
$
422,246
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percent of gross loans
 
 
0.15
%
 
 
0.18
%
 
 
0.00
%
 
 
0.33
%
 
 
0.51
%
 
 
0.84
%
 
 
99.16
%
 
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:
 
 
 
As of June 30, 2016
 
As of December 31, 2015
 
(Dollars in thousands)
 
Nonclassified
 
Classified
 
Nonclassified
 
Classified
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One-to-four family residential real estate
 
$
129,286
 
$
1,467
 
$
130,575
 
$
1,355
 
Construction and land
 
 
17,638
 
 
743
 
 
14,429
 
 
614
 
Commercial real estate
 
 
109,454
 
 
9,693
 
 
111,016
 
 
7,967
 
Commercial loans
 
 
58,875
 
 
3,245
 
 
58,862
 
 
2,438
 
Agriculture loans
 
 
72,179
 
 
6,638
 
 
68,186
 
 
2,844
 
Municipal loans
 
 
7,263
 
 
-
 
 
7,635
 
 
-
 
Consumer loans
 
 
19,084
 
 
119
 
 
19,839
 
 
56
 
Total
 
 
413,779
 
 
21,905
 
 
410,542
 
 
15,274
 
 
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:
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of June 30, 2016
 
As of December 31, 2015
 
 
 
Number of
loans
 
Non-accrual
balance
 
Accruing
balance
 
Number of
loans
 
Non-accrual
balance
 
Accruing
balance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One-to-four family residential real estate
 
 
2
 
$
-
 
$
190
 
 
2
 
$
55
 
$
3
 
Construction and land
 
 
4
 
 
594
 
 
1,454
 
 
4
 
 
600
 
 
1,606
 
Commercial real estate
 
 
3
 
 
-
 
 
2,378
 
 
3
 
 
-
 
 
2,382
 
Commercial loans
 
 
2
 
 
-
 
 
31
 
 
1
 
 
-
 
 
37
 
Agriculture
 
 
1
 
 
-
 
 
45
 
 
2
 
 
-
 
 
50
 
Municipal loans
 
 
2
 
 
-
 
 
393
 
 
2
 
 
-
 
 
591
 
Total troubled debt restructurings
 
 
14
 
$
594
 
$
4,491
 
 
14
 
$
655
 
$
4,669
 
v3.5.0.2
Goodwill and Other Intangible Assets
6 Months Ended
Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure [Text Block]
4.
Goodwill and Other Intangible Assets
 
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:
 
(Dollars in thousands)
 
As of June 30, 2016
 
 
 
Gross carrying
amount
 
Accumulated
amortization
 
Net carrying
amount
 
Core deposit intangible assets
 
$
2,067
 
$
(1,000)
 
$
1,067
 
Lease intangible asset
 
 
350
 
 
(120)
 
 
230
 
Mortgage servicing rights
 
 
5,580
 
 
(2,729)
 
 
2,851
 
Total other intangible assets
 
$
7,997
 
$
(3,849)
 
$
4,148
 
 
(Dollars in thousands)
 
As of December 31, 2015
 
 
 
Gross carrying
amount
 
Accumulated
amortization
 
Net carrying
amount
 
Core deposit intangible assets
 
$
2,067
 
$
(855)
 
$
1,212
 
Lease intangible asset
 
 
350
 
 
(98)
 
 
252
 
Mortgage servicing rights
 
 
5,322
 
 
(2,482)
 
 
2,840
 
Total other intangible assets
 
$
7,739
 
$
(3,435)
 
$
4,304
 
 
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:
 
(Dollars in thousands)
 
Amortization
 
 
 
expense
 
Remainder of 2016
 
$
160
 
2017
 
 
289
 
2018
 
 
252
 
2019
 
 
214
 
2020
 
 
177
 
Thereafter
 
 
205
 
Total
 
$
1,297
 
 
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:
 
(Dollars in thousands)
 
June 30,
 
December 31,
 
 
 
2016
 
2015
 
FHLMC
 
$
467,663
 
$
444,714
 
FHLB
 
 
12,685
 
 
14,039
 
 
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:
 
(Dollars in thousands)
 
Three months ended June 30,
 
Six months ended June 30,
 
 
 
2016
 
2015
 
2016
 
2015
 
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
 
 
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.
v3.5.0.2
Earnings per Share
6 Months Ended
Jun. 30, 2016
Earnings Per Share [Abstract]  
Earnings Per Share [Text Block]
5.
Earnings per Share
 
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:
 
 
 
Three months ended
 
Six months ended
 
(Dollars in thousands, except per share amounts)
 
June 30
 
June 30
 
 
 
2016
 
2015
 
2016
 
2015
 
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 (1):
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
$
0.62
 
$
0.75
 
$
1.26
 
$
1.54
 
Diluted
 
$
0.61
 
$
0.72
 
$
1.24
 
$
1.50
 
 
(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.
v3.5.0.2
Repurchase Agreements
6 Months Ended
Jun. 30, 2016
Banking and Thrift [Abstract]  
Repurchase Agreements, Resale Agreements, Securities Borrowed, and Securities Loaned Disclosure [Text Block]
6.
Repurchase Agreements
 
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:
 
 
 
As of June 30, 2016
 
 
 
Overnight and
 
 
 
 
 
 
 
Greater
 
 
 
 
 
 
Continuous
 
Up to 30 days
 
30-90 days
 
than 90 days
 
Total
 
Repurchase agreements:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. federal agency obligations
 
$
5,063
 
$
-
 
$
-
 
$
-
 
$
5,063
 
Agency mortgage-backed securities
 
 
6,464
 
 
-
 
 
-
 
 
-
 
 
6,464
 
Total
 
$
11,527
 
$
-
 
$
-
 
$
-
 
$
11,527
 
 
 
 
As of December 31, 2015
 
 
 
Overnight and
 
Up to
 
 
 
 
Greater
 
 
 
 
 
 
Continuous
 
30 days
 
30-90 days
 
than 90 days
 
Total
 
Repurchase agreements:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. federal agency obligations
 
$
5,810
 
$
-
 
$
-
 
$
-
 
$
5,810
 
Agency mortgage-backed securities
 
 
6,164
 
 
-
 
 
-
 
 
-
 
 
6,164
 
Total
 
$
11,974
 
$
-
 
$
-
 
$
-
 
$
11,974
 
 
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.
v3.5.0.2
Fair Value of Financial Instruments and Fair Value Measurements
6 Months Ended
Jun. 30, 2016
Fair Value Disclosures [Abstract]  
Fair Value Disclosures [Text Block]
7.
Fair Value of Financial Instruments and Fair Value Measurements
 
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:
 
(Dollars in thousands)
 
As of June 30, 2016
 
 
 
Carrying
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
amount
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Financial assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
14,317
 
$
14,317
 
$
-
 
$
-
 
$
14,317
 
Investment securities available-for-sale
 
 
366,550
 
 
7,363
 
 
359,187
 
 
-
 
 
366,550
 
Bank stocks, at cost
 
 
4,622
 
 
n/a
 
 
n/a
 
 
n/a
 
 
n/a
 
Loans, net
 
 
430,064
 
 
-
 
 
-
 
 
431,483
 
 
431,483
 
Loans held for sale, net
 
 
10,057
 
 
-
 
 
10,062
 
 
-
 
 
10,062
 
Derivative financial instruments
 
 
615
 
 
-
 
 
615
 
 
-
 
 
615
 
Accrued interest receivable
 
 
3,927
 
 
22
 
 
1,979
 
 
1,926
 
 
3,927
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-maturity deposits
 
$
(566,971)
 
$
(566,971)
 
$
-
 
$
-
 
 
(566,971)
 
Time deposits
 
 
(148,650)
 
 
-
 
 
(148,116)
 
 
-
 
 
(148,116)
 
FHLB borrowings
 
 
(48,000)
 
 
-
 
 
(49,247)
 
 
-
 
 
(49,247)
 
Subordinated debentures
 
 
(21,184)
 
 
-
 
 
(18,812)
 
 
-
 
 
(18,812)
 
Other borrowings
 
 
(11,527)
 
 
-
 
 
(11,527)
 
 
-
 
 
(11,527)
 
Accrued interest payable
 
 
(271)
 
 
-
 
 
(271)
 
 
-
 
 
(271)
 
 
 
 
As of December 31, 2015
 
 
 
Carrying
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
amount
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Financial assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
13,569
 
$
13,569
 
$
-
 
$
-
 
$
13,569
 
Investment securities available-for-sale
 
 
353,438
 
 
8,003
 
 
345,435
 
 
-
 
 
353,438
 
Bank stocks, at cost
 
 
4,497
 
 
n/a
 
 
n/a
 
 
n/a
 
 
n/a
 
Loans, net
 
 
419,923
 
 
-
 
 
-
 
 
420,061
 
 
420,061
 
Derivative financial instruments
 
 
797
 
 
-
 
 
797
 
 
-
 
 
797
 
Accrued interest receivable
 
 
4,002
 
 
22
 
 
2,117
 
 
1,863
 
 
4,002
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-maturity deposits
 
$
(570,784)
 
$
(570,784)
 
$
-
 
$
-
 
$
(570,784)
 
Time deposits
 
 
(143,943)
 
 
-
 
 
(142,924)
 
 
-
 
 
(142,924)
 
FHLB borrowings
 
 
(37,600)
 
 
-
 
 
(38,215)
 
 
-
 
 
(38,215)
 
Subordinated debentures
 
 
(2,184)
 
 
-
 
 
(19,051)
 
 
-
 
 
(19,051)
 
Other borrowings
 
 
(11,974)
 
 
-
 
 
(11,974)
 
 
-
 
 
(11,974)
 
Accrued interest payable
 
 
(287)
 
 
-
 
 
(287)
 
 
-
 
 
(287)
 
 
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:
 
(Dollars in thousands)
 
 
 
 
As of June 30, 2016
 
 
 
 
 
 
Fair value hierarchy
 
 
 
Total
 
Level 1
 
Level 2
 
Level 3
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Available-for-sale investment securities
 
 
 
 
 
 
 
 
 
 
 
 
 
U. S. treasury securities
 
$
6,049
 
$
6,049
 
$
-
 
$
-
 
U. S. federal agency obligations
 
 
27,985
 
 
-
 
 
27,985
 
 
-
 
Municipal obligations, tax exempt
 
 
155,735
 
 
-
 
 
155,735
 
 
-
 
Municipal obligations, taxable
 
 
74,266
 
 
-
 
 
74,266
 
 
-
 
Agency mortgage-backed securities
 
 
91,501
 
 
-
 
 
91,501
 
 
-
 
Common stocks
 
 
1,314
 
 
1,314
 
 
-
 
 
-
 
Certificates of deposit
 
 
9,700
 
 
-
 
 
9,700
 
 
-
 
Derivative financial instruments
 
$
615
 
$
-
 
$
615
 
$
-
 
 
(Dollars in thousands)
 
 
 
 
As of December 31, 2015
 
 
 
 
 
 
Fair value hierarchy
 
 
 
Total
 
Level 1
 
Level 2
 
Level 3
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Available-for-sale investment securities
 
 
 
 
 
 
 
 
 
 
 
 
 
U. S. treasury securities
 
$
6,517
 
$
6,517
 
$
-
 
$
-
 
U. S. federal agency obligations
 
 
29,920
 
 
-
 
 
29,920
 
 
-
 
Municipal obligations, tax exempt
 
 
137,941
 
 
-
 
 
137,941
 
 
-
 
Municipal obligations, taxable
 
 
81,890
 
 
-
 
 
81,890
 
 
-
 
Agency mortgage-backed securities
 
 
85,985
 
 
-
 
 
85,985
 
 
-
 
Common stocks
 
 
1,486
 
 
1,486
 
 
-
 
 
-
 
Certificates of deposit
 
 
9,699
 
 
-
 
 
9,699
 
 
-
 
Derivative financial instruments
 
 
797
 
 
-
 
 
797
 
 
-
 
 
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:
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of June 30, 2016
 
Total
 
 
 
 
 
 
Fair value hierarchy
 
gains/
 
 
 
Total
 
Level 1
 
Level 2
 
Level 3
 
(losses)
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Impaired loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One-to-four family residential real estate
 
$
585
 
$
-
 
$
-
 
$
585
 
$
3
 
Commercial loans
 
 
39
 
 
-
 
 
-
 
 
39
 
 
(13)
 
Agriculture loans
 
 
448
 
 
-
 
 
-
 
 
448
 
 
(206)
 
Consumer loans
 
 
9
 
 
-
 
 
-
 
 
9
 
 
2
 
 
 
 
 
 
 
As of December 31, 2015
 
Total
 
 
 
 
 
 
Fair value hierarchy
 
(losses)/
 
 
 
Total
 
Level 1
 
Level 2
 
Level 3
 
gains
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Impaired loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One-to-four family residential real estate
 
$
266
 
$
-
 
$
-
 
$
266
 
$
(137)
 
Consumer loans
 
 
16
 
 
-
 
 
-
 
 
16
 
 
6
 
Loans held for sale
 
 
14,465
 
 
-
 
 
14,465
 
 
-
 
 
(10)
 
 
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.
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value
 
Valuation technique
 
Unobservable inputs
 
Range
 
As of June 30, 2016
 
 
 
 
 
 
 
 
 
 
 
Impaired loans:
 
 
 
 
 
 
 
 
 
 
 
One-to-four family residential real estate
 
$
585
 
Sales comparison
 
Adjustment to appraised value
 
 
6%-40
%
Commercial loans
 
 
39
 
Sales comparison
 
Adjustment to appraised value
 
 
15
%
Agriculture loans
 
 
448
 
Sales comparison
 
Adjustment to appraised value
 
 
20%-50
%
Consumer loans
 
 
9
 
Sales comparison
 
Adjustment to appraised value
 
 
0
%
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
Impaired loans:
 
 
 
 
 
 
 
 
 
 
 
One-to-four family residential real estate
 
$
266
 
Sales comparison
 
Adjustment to appraised value
 
 
0%-40
%
Consumer loans
 
 
16
 
Sales comparison
 
Adjustment to comparable sales
 
 
0
%
v3.5.0.2
Regulatory Capital Requirements
6 Months Ended
Jun. 30, 2016
Banking and Thrift [Abstract]  
Regulatory Capital Requirements under Banking Regulations [Text Block]
8.
Regulatory Capital Requirements
 
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:
 
(Dollars in thousands)
 
 
 
 
 
 
 
For capital
 
 
 
Actual
 
adequacy purposes*
 
 
 
Amount
 
Ratio
 
Amount
 
Ratio
 
As of June 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
Leverage
 
$
85,237
 
 
9.66
%
$
35,286
 
 
4.0
%
Common Equity Tier 1 Capital
 
 
64,736
 
 
11.93
%
 
27,811
 
 
5.1
%
Tier 1 Capital
 
 
85,237
 
 
15.71
%
 
35,950
 
 
6.6
%
Total Risk Based Capital
 
 
91,378
 
 
16.84
%
 
46,803
 
 
8.6
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
Leverage
 
$
80,401
 
 
9.43
%
$
34,092
 
 
4.0
%
Common Equity Tier 1 Capital
 
 
60,375
 
 
11.05
%
 
24,584
 
 
4.5
%
Tier 1 Capital
 
 
80,401
 
 
14.72
%
 
32,779
 
 
6.0
%
Total Risk Based Capital
 
 
87,214
 
 
15.96
%
 
43,706
 
 
8.0
%
 
*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:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
To be well-capitalized
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
under prompt
 
(Dollars in thousands)
 
 
 
 
 
 
 
For capital
 
corrective
 
 
 
Actual
 
adequacy purposes*
 
action provisions
 
 
 
Amount
 
Ratio
 
Amount
 
Ratio
 
Amount
 
Ratio
 
As of June 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Leverage
 
$
83,830
 
 
9.53
%
$
35,198
 
 
4.0
%
$
43,998
 
 
5.0
%
Common Equity Tier 1 Capital
 
 
83,830
 
 
15.50
%
 
27,716
 
 
5.1
%
 
35,153
 
 
6.5
%
Tier 1 Capital
 
 
83,830
 
 
15.50
%
 
35,829
 
 
6.6
%
 
43,265
 
 
8.0
%
Total Risk Based Capital
 
 
89,632
 
 
16.57
%
 
46,645
 
 
8.6
%
 
54,081
 
 
10.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Leverage
 
$
79,857
 
 
9.40
%
$
33,993
 
 
4.0
%
$
42,491
 
 
5.0
%
Common Equity Tier 1 Capital
 
 
79,857
 
 
14.66
%
 
24,519
 
 
4.5
%
 
35,416
 
 
6.5
%
Tier 1 Capital
 
 
79,857
 
 
14.66
%
 
32,692
 
 
6.0
%
 
43,589
 
 
8.0
%
Total Risk Based Capital
 
 
85,929
 
 
15.77
%
 
43,589
 
 
8.0
%
 
54,486
 
 
10.0
%
 
*The ratios for June 30, 2016 include a capital conservation buffer of 0.625%.
v3.5.0.2
Impact of Recent Accounting Pronouncements
6 Months Ended
Jun. 30, 2016
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]  
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]
9.
Impact of Recent Accounting Pronouncements
 
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.
v3.5.0.2
Investments (Tables)
6 Months Ended
Jun. 30, 2016
Investments, Debt and Equity Securities [Abstract]  
Available-for-sale Securities [Table Text Block]
A summary of investment securities available-for-sale is as follows:
 
 
 
As of June 30, 2016
 
 
 
 
 
 
Gross
 
Gross
 
 
 
 
 
 
Amortized
 
unrealized
 
unrealized
 
Estimated
 
(Dollars in thousands)
 
cost
 
gains
 
losses
 
fair value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U. S. treasury securities
 
$
6,011
 
$
38
 
$
-
 
$
6,049
 
U. S. federal agency obligations
 
 
27,721
 
 
269
 
 
(5)
 
 
27,985
 
Municipal obligations, tax exempt
 
 
150,554
 
 
5,203
 
 
(22)
 
 
155,735
 
Municipal obligations, taxable
 
 
71,998
 
 
2,268
 
 
-
 
 
74,266
 
Agency mortgage-backed securities
 
 
89,731
 
 
1,781
 
 
(11)
 
 
91,501
 
Common stocks
 
 
562
 
 
752
 
 
-
 
 
1,314
 
Certificates of deposit
 
 
9,700
 
 
-
 
 
-
 
 
9,700
 
Total
 
$
356,277
 
$
10,311
 
$
(38)
 
$
366,550
 
 
 
 
As of December 31, 2015
 
 
 
 
 
 
Gross
 
Gross
 
 
 
 
 
 
Amortized
 
unrealized
 
unrealized
 
Estimated
 
(Dollars in thousands)
 
cost
 
gains
 
losses
 
fair value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U. S. treasury securities
 
$
6,517
 
$
1
 
$
(1)
 
$
6,517
 
U. S. federal agency obligations
 
 
30,064
 
 
43
 
 
(187)
 
 
29,920
 
Municipal obligations, tax exempt
 
 
135,341
 
 
2,671
 
 
(71)
 
 
137,941
 
Municipal obligations, taxable
 
 
81,999
 
 
472
 
 
(581)
 
 
81,890
 
Agency mortgage-backed securities
 
 
85,829
 
 
391
 
 
(235)
 
 
85,985
 
Common stocks
 
 
580
 
 
906
 
 
-
 
 
1,486
 
Certificates of deposit
 
 
9,699
 
 
-
 
 
-
 
 
9,699
 
Total
 
$
350,029
 
$
4,484
 
$
(1,075)
 
$
353,438
 
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.
 
 
 
 
 
 
As of June 30, 2016
 
(Dollars in thousands)
 
 
 
 
Less than 12 months
 
12 months or longer
 
Total
 
 
 
No. of
 
Fair
 
Unrealized
 
Fair
 
Unrealized
 
Fair
 
Unrealized
 
 
 
securities
 
value
 
losses
 
value
 
losses
 
value
 
losses
 
U.S. federal agency obligations
 
 
1
 
$
-
 
$
-
 
$
3,200
 
$
(5)
 
$
3,200
 
$
(5)
 
Municipal obligations, tax exempt
 
 
20
 
 
4,313
 
 
(20)
 
 
626
 
 
(2)
 
 
4,939
 
 
(22)
 
Agency mortgage-backed securities
 
 
12
 
 
645
 
 
(1)
 
 
1,907
 
 
(10)
 
 
2,552
 
 
(11)
 
Total
 
 
33
 
$
4,958
 
$
(21)
 
$
5,733
 
$
(17)
 
$
10,691
 
$
(38)
 
 
 
 
 
 
 
As of December 31, 2015
 
(Dollars in thousands)
 
 
 
 
Less than 12 months
 
12 months or longer
 
Total
 
 
 
No. of
 
Fair
 
Unrealized
 
Fair
 
Unrealized
 
Fair
 
Unrealized
 
 
 
securities
 
value
 
losses
 
value
 
losses
 
value
 
losses
 
U.S. treasury securities
 
 
2
 
$
3,542
 
$
(1)
 
$
-
 
$
-
 
$
3,542
 
$
(1)
 
U. S. federal agency obligations
 
 
18
 
 
23,015
 
 
(163)
 
 
1,976
 
 
(24)
 
 
24,991
 
 
(187)
 
Municipal obligations, tax exempt
 
 
47
 
 
11,328
 
 
(53)
 
 
2,132
 
 
(18)
 
 
13,460
 
 
(71)
 
Municipal obligations, taxable
 
 
105
 
 
38,605
 
 
(494)
 
 
5,068
 
 
(87)
 
 
43,673
 
 
(581)
 
Agency mortgage-backed securities
 
 
40
 
 
29,814
 
 
(166)
 
 
2,925
 
 
(69)
 
 
32,739
 
 
(235)
 
Total
 
 
212
 
$
106,304
 
$
(877)
 
$
12,101
 
$
(198)
 
$
118,405
 
$
(1,075)
 
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:
 
(Dollars in thousands)
 
Amortized
 
Estimated
 
 
 
cost
 
fair value
 
Due in less than one year
 
$
17,508
 
$
17,598
 
Due after one year but within five years
 
 
180,166
 
 
182,762
 
Due after five years but within ten years
 
 
88,657
 
 
92,255
 
Due after ten years
 
 
69,384
 
 
72,621
 
Common stocks
 
 
562
 
 
1,314
 
Total
 
$
356,277
 
$
366,550
 
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:
 
(Dollars in thousands)
 
Three months ended June 30,
 
Six months ended June 30,
 
 
 
2016
 
2015
 
2016
 
2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales proceeds
 
$
11,801
 
$
-
 
$
13,617
 
$
19,069
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Realized gains
 
$
296
 
$
-
 
$
312
 
$
24
 
Realized losses
 
 
(11)
 
 
-
 
 
(15)
 
 
(278)
 
Net realized losses
 
$
285
 
$
-
 
$
297
 
$
(254)
 
v3.5.0.2
Loans and Allowance for Loan Losses (Tables)
6 Months Ended
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:
 
 
 
June 30,
 
December 31,
 
(Dollars in thousands)
 
2016
 
2015
 
 
 
 
 
 
 
 
 
One-to-four family residential real estate
 
$
130,753
 
$
131,930
 
Construction and land
 
 
18,381
 
 
15,043
 
Commercial real estate
 
 
119,147
 
 
118,983
 
Commercial loans
 
 
62,120
 
 
61,300
 
Agriculture loans
 
 
78,817
 
 
71,030
 
Municipal loans
 
 
7,263
 
 
7,635
 
Consumer loans
 
 
19,203
 
 
19,895
 
Total gross loans
 
 
435,684
 
 
425,816
 
Net deferred loan costs and loans in process
 
 
32
 
 
29
 
Allowance for loan losses
 
 
(5,652)
 
 
(5,922)
 
Loans, net
 
$
430,064
 
$
419,923
 
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:
 
 
 
Three and six months ended June 30, 2016
 
(Dollars in thousands)
 
One-to-four
family
residential
real estate
 
Construction
and land
 
Commercial
real estate
 
Commercial
loans
 
Agriculture
loans
 
Municipal
loans
 
Consumer
loans
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at April 1, 2016
 
$
864
 
$
82
 
$
1,831
 
$
1,384
 
$
1,483
 
$
24
 
$
201
 
$
5,869
 
Charge-offs
 
 
-
 
 
-
 
 
-
 
 
(306)
 
 
(83)
 
 
-
 
 
(148)
 
 
(537)
 
Recoveries
 
 
3
 
 
-
 
 
-
 
 
1
 
 
-
 
 
6
 
 
10
 
 
20
 
Provision for loan losses
 
 
(283)
 
 
7
 
 
(55)
 
 
314
 
 
200
 
 
(7)
 
 
124
 
 
300
 
Balance at June 30, 2016
 
 
584
 
 
89
 
 
1,776
 
 
1,393
 
 
1,600
 
 
23
 
 
187
 
 
5,652
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at January 1, 2016
 
$
925
 
$
77
 
$
1,740
 
$
1,530
 
$
1,428
 
$
23
 
$
199
 
$
5,922
 
Charge-offs
 
 
-
 
 
-
 
 
-
 
 
(306)
 
 
(83)
 
 
-
 
 
(285)
 
 
(674)
 
Recoveries
 
 
5
 
 
-
 
 
-
 
 
20
 
 
-
 
 
6
 
 
23
 
 
54
 
Provision for loan losses
 
 
(346)
 
 
12
 
 
36
 
 
149
 
 
255
 
 
(6)
 
 
250
 
 
350
 
Balance at June 30, 2016
 
 
584
 
 
89
 
 
1,776
 
 
1,393
 
 
1,600
 
 
23
 
 
187
 
 
5,652
 
 
 
 
Three and six months ended June 30, 2015
 
(Dollars in thousands)
 
One-to-four
family
residential
real estate
 
Construction
and land
 
Commercial
real estate
 
Commercial
loans
 
Agriculture
loans
 
Municipal
loans
 
Consumer
loans
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at April 1, 2015
 
$
1,386
 
$
103
 
$
1,600
 
$
1,515
 
$
1,104
 
$
25
 
$
172
 
$
5,905
 
Charge-offs
 
 
(9)
 
 
-
 
 
-
 
 
(10)
 
 
-
 
 
-
 
 
(88)
 
 
(107)
 
Recoveries
 
 
3
 
 
4
 
 
2
 
 
2
 
 
-
 
 
-
 
 
8
 
 
19
 
Provision for loan losses
 
 
(55)
 
 
(9)
 
 
(63)
 
 
249
 
 
(2)
 
 
(4)
 
 
84
 
 
200
 
Balance at June 30, 2015
 
 
1,325
 
 
99
 
 
1,539
 
 
1,756
 
 
1,102
 
 
21
 
 
176
 
 
6,018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at January 1, 2015
 
$
755
 
$
762
 
$
1,832
 
$
836
 
$
915
 
$
51
 
$
169
 
$
5,320
 
Charge-offs
 
 
(9)
 
 
-
 
 
-
 
 
(10)
 
 
-
 
 
(88)
 
 
(142)
 
 
(249)
 
Recoveries
 
 
5
 
 
1,719
 
 
2
 
 
3
 
 
-
 
 
-
 
 
18
 
 
1,747
 
Provision for loan losses
 
 
574
 
 
(2,382)
 
 
(295)
 
 
927
 
 
187
 
 
58
 
 
131
 
 
(800)
 
Balance at June 30, 2015
 
 
1,325
 
 
99
 
 
1,539
 
 
1,756
 
 
1,102
 
 
21
 
 
176
 
 
6,018
 
 
 
 
As of June 30, 2016
 
(Dollars in thousands)
 
One-to-four
family
residential
real estate
 
Construction
and land
 
Commercial
real estate
 
Commercial
loans
 
Agriculture
loans
 
Municipal
loans
 
Consumer
loans
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for loss
 
 
19
 
 
-
 
 
-
 
 
13
 
 
206
 
 
-
 
 
7
 
 
245
 
Collectively evaluated for loss
 
 
565
 
 
89
 
 
1,776
 
 
1,380
 
 
1,394
 
 
23
 
 
180
 
 
5,407
 
Total
 
 
584
 
 
89
 
 
1,776
 
 
1,393
 
 
1,600
 
 
23
 
 
187
 
 
5,652
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loan balances:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for loss
 
 
1,106
 
 
2,061
 
 
2,417
 
 
127
 
 
879
 
 
393
 
 
102
 
 
7,085
 
Collectively evaluated for loss
 
 
129,647
 
 
16,320
 
 
116,730
 
 
61,993
 
 
77,938
 
 
6,870
 
 
19,101
 
 
428,599
 
Total
 
$
130,753
 
$
18,381
 
$
119,147
 
$
62,120
 
$
78,817
 
$
7,263
 
$
19,203
 
$
435,684
 
 
 
 
As of December 31, 2015
 
(Dollars in thousands)
 
One-to-four
family
residential
real estate
 
Construction
and land
 
Commercial
real estate
 
Commercial
loans
 
Agriculture
loans
 
Municipal
loans
 
Consumer
loans
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for loss
 
 
78
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
10
 
 
88
 
Collectively evaluated for loss
 
 
847
 
 
77
 
 
1,740
 
 
1,530
 
 
1,428
 
 
23
 
 
189
 
 
5,834
 
Total
 
 
925
 
 
77
 
 
1,740
 
 
1,530
 
 
1,428
 
 
23
 
 
199
 
 
5,922
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loan balances:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for loss
 
 
752
 
 
2,220
 
 
2,429
 
 
620
 
 
189
 
 
591
 
 
36
 
 
6,837
 
Collectively evaluated for loss
 
 
131,178
 
 
12,823
 
 
116,554
 
 
60,680
 
 
70,841
 
 
7,044
 
 
19,859
 
 
418,979
 
Total
 
$
131,930
 
$
15,043
 
$
118,983
 
$
61,300
 
$
71,030
 
$
7,635
 
$
19,895
 
$
425,816
 
Impaired Financing Receivables [Table Text Block]
The following tables present information on impaired loans:
 
(Dollars in thousands)
 
As of June 30, 2016
 
 
 
Unpaid
contractual
principal
 
Impaired
loan balance
 
Impaired
loans
without an
allowance
 
Impaired
loans with
an
allowance
 
Related
allowance
recorded
 
Year-to-
date average
loan balance
 
Year-to-
date interest
income
recognized
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One-to-four family residential real estate
 
$
1,106
 
$
1,106
 
$
502
 
$
604
 
$
19
 
$
1,117
 
$
4
 
Construction and land
 
 
3,796
 
 
2,061
 
 
2,061
 
 
-
 
 
-
 
 
2,137
 
 
38
 
Commercial real estate
 
 
2,417
 
 
2,417
 
 
2,417
 
 
-
 
 
-
 
 
2,426
 
 
253
 
Commercial loans
 
 
127
 
 
127
 
 
75
 
 
52
 
 
13
 
 
148
 
 
1
 
Agriculture loans
 
 
879
 
 
879
 
 
225
 
 
654
 
 
206
 
 
918
 
 
1
 
Municipal loans
 
 
393
 
 
393
 
 
393
 
 
-
 
 
-
 
 
514
 
 
8
 
Consumer loans
 
 
102
 
 
102
 
 
86
 
 
16
 
 
7
 
 
106
 
 
-
 
Total impaired loans
 
$
8,820
 
$
7,085
 
$
5,759
 
$
1,326
 
$
245
 
$
7,366
 
$
305
 
 
(Dollars in thousands)
 
As of December 31, 2015
 
 
 
Unpaid
contractual
principal
 
Impaired
loan balance
 
Impaired
loans
without an
allowance
 
Impaired
loans with
an
allowance
 
Related
allowance
recorded
 
Year-to-
date average
loan balance
 
Year-to-
date interest
income
recognized
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One-to-four family residential real estate
 
$
752
 
$
752
 
$
408
 
$
344
 
$
78
 
$
1,041
 
$
-
 
Construction and land
 
 
3,955
 
 
2,220
 
 
2,220
 
 
-
 
 
-
 
 
2,389
 
 
88
 
Commercial real estate
 
 
2,429
 
 
2,429
 
 
2,429
 
 
-
 
 
-
 
 
2,484
 
 
175
 
Commercial loans
 
 
637
 
 
620
 
 
620
 
 
-
 
 
-
 
 
634
 
 
3
 
Agriculture loans
 
 
189
 
 
189
 
 
189
 
 
-
 
 
-
 
 
188
 
 
3
 
Municipal loans
 
 
591
 
 
591
 
 
591
 
 
-
 
 
-
 
 
631
 
 
19
 
Consumer loans
 
 
36
 
 
36
 
 
10
 
 
26
 
 
10
 
 
41
 
 
-
 
Total impaired loans
 
$
8,589
 
$
6,837
 
$
6,467
 
$
370
 
$
88
 
$
7,408
 
$
288
 
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:
 
(Dollars in thousands)
 
As of June 30, 2016
 
 
 
30-59 days
delinquent
and
accruing
 
 
60-89 days
delinquent
and
accruing
 
 
90 days or
more
delinquent
and accruing
 
 
Total past
due loans
accruing
 
 
Non-accrual
loans
 
 
Total past
due and non-
accrual loans
 
 
Total loans
not past due
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One-to-four family residential real estate
 
$
140
 
 
$
512
 
 
$
-
 
 
$
652
 
 
$
916
 
 
$
1,568
 
 
$
129,185
 
Construction and land
 
 
5
 
 
 
-
 
 
 
-
 
 
 
5
 
 
 
607
 
 
 
612
 
 
 
17,769
 
Commercial real estate
 
 
10
 
 
 
237
 
 
 
-
 
 
 
247
 
 
 
39
 
 
 
286
 
 
 
118,861
 
Commercial loans
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
96
 
 
 
96
 
 
 
62,024
 
Agriculture loans
 
 
174
 
 
 
30
 
 
 
218
 
 
 
422
 
 
 
834
 
 
 
1,256
 
 
 
77,561
 
Municipal loans
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
7,263
 
Consumer loans
 
 
82
 
 
 
23
 
 
 
-
 
 
 
105
 
 
 
102
 
 
 
207
 
 
 
18,996
 
Total
 
$
411
 
 
$
802
 
 
$
218
 
 
$
1,431
 
 
$
2,594
 
 
$
4,025
 
 
$
431,659
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percent of gross loans
 
 
0.09
%
 
 
0.18
%
 
 
0.05
%
 
 
0.32
%
 
 
0.60
%
 
 
0.92
%
 
 
99.08
%
 
(Dollars in thousands)
 
As of December 31, 2015
 
 
 
30-59 days
delinquent
and
accruing
 
 
60-89 days
delinquent
and
accruing
 
 
90 days or
more
delinquent
and accruing
 
 
Total past
due loans
accruing
 
 
Non-accrual
loans
 
 
Total past
due and non-
accrual loans
 
 
Total loans
not past due
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One-to-four family residential real estate
 
$
70
 
 
$
712
 
 
$
-
 
 
$
782
 
 
$
749
 
 
$
1,531
 
 
$
130,399
 
Construction and land
 
 
4
 
 
 
-
 
 
 
-
 
 
 
4
 
 
 
614
 
 
 
618
 
 
 
14,425
 
Commercial real estate
 
 
240
 
 
 
-
 
 
 
-
 
 
 
240
 
 
 
47
 
 
 
287
 
 
 
118,696
 
Commercial loans
 
 
90
 
 
 
40
 
 
 
-
 
 
 
130
 
 
 
583
 
 
 
713
 
 
 
60,587
 
Agriculture loans
 
 
174
 
 
 
5
 
 
 
-
 
 
 
179
 
 
 
139
 
 
 
318
 
 
 
70,712
 
Municipal loans
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
7,635
 
Consumer loans
 
 
65
 
 
 
2
 
 
 
-
 
 
 
67
 
 
 
36
 
 
 
103
 
 
 
19,792
 
Total
 
$
643
 
 
$
759
 
 
$
-
 
 
$
1,402
 
 
$
2,168
 
 
$
3,570
 
 
$
422,246
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percent of gross loans
 
 
0.15
%
 
 
0.18
%
 
 
0.00
%
 
 
0.33
%
 
 
0.51
%
 
 
0.84
%
 
 
99.16
%
Risk Categories By Loan Class [Table Text Block]
The following table provides information on the Company’s risk categories by loan class:
 
 
 
As of June 30, 2016
 
As of December 31, 2015
 
(Dollars in thousands)
 
Nonclassified
 
Classified
 
Nonclassified
 
Classified
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One-to-four family residential real estate
 
$
129,286
 
$
1,467
 
$
130,575
 
$
1,355
 
Construction and land
 
 
17,638
 
 
743
 
 
14,429
 
 
614
 
Commercial real estate
 
 
109,454
 
 
9,693
 
 
111,016
 
 
7,967
 
Commercial loans
 
 
58,875
 
 
3,245
 
 
58,862
 
 
2,438
 
Agriculture loans
 
 
72,179
 
 
6,638
 
 
68,186
 
 
2,844
 
Municipal loans
 
 
7,263
 
 
-
 
 
7,635
 
 
-
 
Consumer loans
 
 
19,084
 
 
119
 
 
19,839
 
 
56
 
Total
 
 
413,779
 
 
21,905
 
 
410,542
 
 
15,274
 
Troubled Debt Restructurings on Financing Receivables [Table Text Block]
The following table presents information on loans that are classified as TDRs:
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of June 30, 2016
 
As of December 31, 2015
 
 
 
Number of
loans
 
Non-accrual
balance
 
Accruing
balance
 
Number of
loans
 
Non-accrual
balance
 
Accruing
balance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One-to-four family residential real estate
 
 
2
 
$
-
 
$
190
 
 
2
 
$
55
 
$
3
 
Construction and land
 
 
4
 
 
594
 
 
1,454
 
 
4
 
 
600
 
 
1,606
 
Commercial real estate
 
 
3
 
 
-
 
 
2,378
 
 
3
 
 
-
 
 
2,382
 
Commercial loans
 
 
2
 
 
-
 
 
31
 
 
1
 
 
-
 
 
37
 
Agriculture
 
 
1
 
 
-
 
 
45
 
 
2
 
 
-
 
 
50
 
Municipal loans
 
 
2
 
 
-
 
 
393
 
 
2
 
 
-
 
 
591
 
Total troubled debt restructurings
 
 
14
 
$
594
 
$
4,491
 
 
14
 
$
655
 
$
4,669
 
v3.5.0.2
Goodwill and Other Intangible Assets (Tables)
6 Months Ended
Jun. 30, 2016
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:
 
(Dollars in thousands)
 
As of June 30, 2016
 
 
 
Gross carrying
amount
 
Accumulated
amortization
 
Net carrying
amount
 
Core deposit intangible assets
 
$
2,067
 
$
(1,000)
 
$
1,067
 
Lease intangible asset
 
 
350
 
 
(120)
 
 
230
 
Mortgage servicing rights
 
 
5,580
 
 
(2,729)
 
 
2,851
 
Total other intangible assets
 
$
7,997
 
$
(3,849)
 
$
4,148
 
 
(Dollars in thousands)
 
As of December 31, 2015
 
 
 
Gross carrying
amount
 
Accumulated
amortization
 
Net carrying
amount
 
Core deposit intangible assets
 
$
2,067
 
$
(855)
 
$
1,212
 
Lease intangible asset
 
 
350
 
 
(98)
 
 
252
 
Mortgage servicing rights
 
 
5,322
 
 
(2,482)
 
 
2,840
 
Total other intangible assets
 
$
7,739
 
$
(3,435)
 
$
4,304
 
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:
 
(Dollars in thousands)
 
Amortization
 
 
 
expense
 
Remainder of 2016
 
$
160
 
2017
 
 
289
 
2018
 
 
252
 
2019
 
 
214
 
2020
 
 
177
 
Thereafter
 
 
205
 
Total
 
$
1,297
 
Schedule of Participating Mortgage Loans [Table Text Block]
The following table provides information on the principal balances of mortgage loans serviced for others:
 
(Dollars in thousands)
 
June 30,
 
December 31,
 
 
 
2016
 
2015
 
FHLMC
 
$
467,663
 
$
444,714
 
FHLB
 
 
12,685
 
 
14,039
 
Servicing Asset at Amortized Cost [Table Text Block]
Activity for mortgage servicing rights and the related valuation allowance follows:
 
(Dollars in thousands)
 
Three months ended June 30,
 
Six months ended June 30,
 
 
 
2016
 
2015
 
2016
 
2015
 
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
 
v3.5.0.2
Earnings per Share (Tables)
6 Months Ended
Jun. 30, 2016
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:
 
 
 
Three months ended
 
Six months ended
 
(Dollars in thousands, except per share amounts)
 
June 30
 
June 30
 
 
 
2016
 
2015
 
2016
 
2015
 
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 (1):
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
$
0.62
 
$
0.75
 
$
1.26
 
$
1.54
 
Diluted
 
$
0.61
 
$
0.72
 
$
1.24
 
$
1.50
 
 
(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.
v3.5.0.2
Repurchase Agreements (Tables)
6 Months Ended
Jun. 30, 2016
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:
 
 
 
As of June 30, 2016
 
 
 
Overnight and
 
 
 
 
 
 
 
Greater
 
 
 
 
 
 
Continuous
 
Up to 30 days
 
30-90 days
 
than 90 days
 
Total
 
Repurchase agreements:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. federal agency obligations
 
$
5,063
 
$
-
 
$
-
 
$
-
 
$
5,063
 
Agency mortgage-backed securities
 
 
6,464
 
 
-
 
 
-
 
 
-
 
 
6,464
 
Total
 
$
11,527
 
$
-
 
$
-
 
$
-
 
$
11,527
 
 
 
 
As of December 31, 2015
 
 
 
Overnight and
 
Up to
 
 
 
 
Greater
 
 
 
 
 
 
Continuous
 
30 days
 
30-90 days
 
than 90 days
 
Total
 
Repurchase agreements:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. federal agency obligations
 
$
5,810
 
$
-
 
$
-
 
$
-
 
$
5,810
 
Agency mortgage-backed securities
 
 
6,164
 
 
-
 
 
-
 
 
-
 
 
6,164
 
Total
 
$
11,974
 
$
-
 
$
-
 
$
-
 
$
11,974
 
v3.5.0.2
Fair Value of Financial Instruments and Fair Value Measurements (Tables)
6 Months Ended
Jun. 30, 2016
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:
 
(Dollars in thousands)
 
As of June 30, 2016
 
 
 
Carrying
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
amount
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Financial assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
14,317
 
$
14,317
 
$
-
 
$
-
 
$
14,317
 
Investment securities available-for-sale
 
 
366,550
 
 
7,363
 
 
359,187
 
 
-
 
 
366,550
 
Bank stocks, at cost
 
 
4,622
 
 
n/a
 
 
n/a
 
 
n/a
 
 
n/a
 
Loans, net
 
 
430,064
 
 
-
 
 
-
 
 
431,483
 
 
431,483
 
Loans held for sale, net
 
 
10,057
 
 
-
 
 
10,062
 
 
-
 
 
10,062
 
Derivative financial instruments
 
 
615
 
 
-
 
 
615
 
 
-
 
 
615
 
Accrued interest receivable
 
 
3,927
 
 
22
 
 
1,979
 
 
1,926
 
 
3,927
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-maturity deposits
 
$
(566,971)
 
$
(566,971)
 
$
-
 
$
-
 
 
(566,971)
 
Time deposits
 
 
(148,650)
 
 
-
 
 
(148,116)
 
 
-
 
 
(148,116)
 
FHLB borrowings
 
 
(48,000)
 
 
-
 
 
(49,247)
 
 
-
 
 
(49,247)
 
Subordinated debentures
 
 
(21,184)
 
 
-
 
 
(18,812)
 
 
-
 
 
(18,812)
 
Other borrowings
 
 
(11,527)
 
 
-
 
 
(11,527)
 
 
-
 
 
(11,527)
 
Accrued interest payable
 
 
(271)
 
 
-
 
 
(271)
 
 
-
 
 
(271)
 
 
 
 
As of December 31, 2015
 
 
 
Carrying
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
amount
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Financial assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
13,569
 
$
13,569
 
$
-
 
$
-
 
$
13,569
 
Investment securities available-for-sale
 
 
353,438
 
 
8,003
 
 
345,435
 
 
-
 
 
353,438
 
Bank stocks, at cost
 
 
4,497
 
 
n/a
 
 
n/a
 
 
n/a
 
 
n/a
 
Loans, net
 
 
419,923
 
 
-
 
 
-
 
 
420,061
 
 
420,061
 
Derivative financial instruments
 
 
797
 
 
-
 
 
797
 
 
-
 
 
797
 
Accrued interest receivable
 
 
4,002
 
 
22
 
 
2,117
 
 
1,863
 
 
4,002
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-maturity deposits
 
$
(570,784)
 
$
(570,784)
 
$
-
 
$
-
 
$
(570,784)
 
Time deposits
 
 
(143,943)
 
 
-
 
 
(142,924)
 
 
-
 
 
(142,924)
 
FHLB borrowings
 
 
(37,600)
 
 
-
 
 
(38,215)
 
 
-
 
 
(38,215)
 
Subordinated debentures
 
 
(2,184)
 
 
-
 
 
(19,051)
 
 
-
 
 
(19,051)
 
Other borrowings
 
 
(11,974)
 
 
-
 
 
(11,974)
 
 
-
 
 
(11,974)
 
Accrued interest payable
 
 
(287)
 
 
-
 
 
(287)
 
 
-
 
 
(287)
 
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:
 
(Dollars in thousands)
 
 
 
 
As of June 30, 2016
 
 
 
 
 
 
Fair value hierarchy
 
 
 
Total
 
Level 1
 
Level 2
 
Level 3
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Available-for-sale investment securities
 
 
 
 
 
 
 
 
 
 
 
 
 
U. S. treasury securities
 
$
6,049
 
$
6,049
 
$
-
 
$
-
 
U. S. federal agency obligations
 
 
27,985
 
 
-
 
 
27,985
 
 
-
 
Municipal obligations, tax exempt
 
 
155,735
 
 
-
 
 
155,735
 
 
-
 
Municipal obligations, taxable
 
 
74,266
 
 
-
 
 
74,266
 
 
-
 
Agency mortgage-backed securities
 
 
91,501
 
 
-
 
 
91,501
 
 
-
 
Common stocks
 
 
1,314
 
 
1,314
 
 
-
 
 
-
 
Certificates of deposit
 
 
9,700
 
 
-
 
 
9,700
 
 
-
 
Derivative financial instruments
 
$
615
 
$
-
 
$
615
 
$
-
 
 
(Dollars in thousands)
 
 
 
 
As of December 31, 2015
 
 
 
 
 
 
Fair value hierarchy
 
 
 
Total
 
Level 1
 
Level 2
 
Level 3
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Available-for-sale investment securities
 
 
 
 
 
 
 
 
 
 
 
 
 
U. S. treasury securities
 
$
6,517
 
$
6,517
 
$
-
 
$
-
 
U. S. federal agency obligations
 
 
29,920
 
 
-
 
 
29,920
 
 
-
 
Municipal obligations, tax exempt
 
 
137,941
 
 
-
 
 
137,941
 
 
-
 
Municipal obligations, taxable
 
 
81,890
 
 
-
 
 
81,890
 
 
-
 
Agency mortgage-backed securities
 
 
85,985
 
 
-
 
 
85,985
 
 
-
 
Common stocks
 
 
1,486
 
 
1,486
 
 
-
 
 
-
 
Certificates of deposit
 
 
9,699
 
 
-
 
 
9,699
 
 
-
 
Derivative financial instruments
 
 
797
 
 
-
 
 
797
 
 
-
 
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:
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of June 30, 2016
 
Total
 
 
 
 
 
 
Fair value hierarchy
 
gains/
 
 
 
Total
 
Level 1
 
Level 2
 
Level 3
 
(losses)
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Impaired loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One-to-four family residential real estate
 
$
585
 
$
-
 
$
-
 
$
585
 
$
3
 
Commercial loans
 
 
39
 
 
-
 
 
-
 
 
39
 
 
(13)
 
Agriculture loans
 
 
448
 
 
-
 
 
-
 
 
448
 
 
(206)
 
Consumer loans
 
 
9
 
 
-
 
 
-
 
 
9
 
 
2
 
 
 
 
 
 
 
As of December 31, 2015
 
Total
 
 
 
 
 
 
Fair value hierarchy
 
(losses)/
 
 
 
Total
 
Level 1
 
Level 2
 
Level 3
 
gains
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Impaired loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One-to-four family residential real estate
 
$
266
 
$
-
 
$
-
 
$
266
 
$
(137)
 
Consumer loans
 
 
16
 
 
-
 
 
-
 
 
16
 
 
6
 
Loans held for sale
 
 
14,465
 
 
-
 
 
14,465
 
 
-
 
 
(10)
 
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.
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value
 
Valuation technique
 
Unobservable inputs
 
Range
 
As of June 30, 2016
 
 
 
 
 
 
 
 
 
 
 
Impaired loans:
 
 
 
 
 
 
 
 
 
 
 
One-to-four family residential real estate
 
$
585
 
Sales comparison
 
Adjustment to appraised value
 
 
6%-40
%
Commercial loans
 
 
39
 
Sales comparison
 
Adjustment to appraised value
 
 
15
%
Agriculture loans
 
 
448
 
Sales comparison
 
Adjustment to appraised value
 
 
20%-50
%
Consumer loans
 
 
9
 
Sales comparison
 
Adjustment to appraised value
 
 
0
%
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
Impaired loans:
 
 
 
 
 
 
 
 
 
 
 
One-to-four family residential real estate
 
$
266
 
Sales comparison
 
Adjustment to appraised value
 
 
0%-40
%
Consumer loans
 
 
16
 
Sales comparison
 
Adjustment to comparable sales
 
 
0
%
v3.5.0.2
Regulatory Capital Requirements (Tables)
6 Months Ended
Jun. 30, 2016
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:
 
(Dollars in thousands)
 
 
 
 
 
 
 
For capital
 
 
 
Actual
 
adequacy purposes*
 
 
 
Amount
 
Ratio
 
Amount
 
Ratio
 
As of June 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
Leverage
 
$
85,237
 
 
9.66
%
$
35,286
 
 
4.0
%
Common Equity Tier 1 Capital
 
 
64,736
 
 
11.93
%
 
27,811
 
 
5.1
%
Tier 1 Capital
 
 
85,237
 
 
15.71
%
 
35,950
 
 
6.6
%
Total Risk Based Capital
 
 
91,378
 
 
16.84
%
 
46,803
 
 
8.6
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
Leverage
 
$
80,401
 
 
9.43
%
$
34,092
 
 
4.0
%
Common Equity Tier 1 Capital
 
 
60,375
 
 
11.05
%
 
24,584
 
 
4.5
%
Tier 1 Capital
 
 
80,401
 
 
14.72
%
 
32,779
 
 
6.0
%
Total Risk Based Capital
 
 
87,214
 
 
15.96
%
 
43,706
 
 
8.0
%
 
*The ratios for June 30, 2016 include a capital conservation buffer of 0.625%.
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:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
To be well-capitalized
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
under prompt
 
(Dollars in thousands)
 
 
 
 
 
 
 
For capital
 
corrective
 
 
 
Actual
 
adequacy purposes*
 
action provisions
 
 
 
Amount
 
Ratio
 
Amount
 
Ratio
 
Amount
 
Ratio
 
As of June 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Leverage
 
$
83,830
 
 
9.53
%
$
35,198
 
 
4.0
%
$
43,998
 
 
5.0
%
Common Equity Tier 1 Capital
 
 
83,830
 
 
15.50
%
 
27,716
 
 
5.1
%
 
35,153
 
 
6.5
%
Tier 1 Capital
 
 
83,830
 
 
15.50
%
 
35,829
 
 
6.6
%
 
43,265
 
 
8.0
%
Total Risk Based Capital
 
 
89,632
 
 
16.57
%
 
46,645
 
 
8.6
%
 
54,081
 
 
10.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Leverage
 
$
79,857
 
 
9.40
%
$
33,993
 
 
4.0
%
$
42,491
 
 
5.0
%
Common Equity Tier 1 Capital
 
 
79,857
 
 
14.66
%
 
24,519
 
 
4.5
%
 
35,416
 
 
6.5
%
Tier 1 Capital
 
 
79,857
 
 
14.66
%
 
32,692
 
 
6.0
%
 
43,589
 
 
8.0
%
Total Risk Based Capital
 
 
85,929
 
 
15.77
%
 
43,589
 
 
8.0
%
 
54,486
 
 
10.0
%
 
*The ratios for June 30, 2016 include a capital conservation buffer of 0.625%
v3.5.0.2
Investments (Details) - USD ($)
$ in Thousands
Jun. 30, 2016
Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]    
Amortized cost $ 356,277 $ 350,029
Gross unrealized gains 10,311 4,484
Gross unrealized losses (38) (1,075)
Estimated fair value 366,550 353,438
U. S. treasury securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized cost 6,011 6,517
Gross unrealized gains 38 1
Gross unrealized losses 0 (1)
Estimated fair value 6,049 6,517
Common stocks [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized cost 562 580
Gross unrealized gains 752 906
Gross unrealized losses 0 0
Estimated fair value 1,314 1,486
U. S. federal agency obligations [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized cost 27,721 30,064
Gross unrealized gains 269 43
Gross unrealized losses (5) (187)
Estimated fair value 27,985 29,920
Municipal obligations, tax exempt [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized cost 150,554 135,341
Gross unrealized gains 5,203 2,671
Gross unrealized losses (22) (71)
Estimated fair value 155,735 137,941
Municipal obligations, taxable [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized cost 71,998 81,999
Gross unrealized gains 2,268 472
Gross unrealized losses 0 (581)
Estimated fair value 74,266 81,890
Agency mortgage-backed securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized cost 89,731 85,829
Gross unrealized gains 1,781 391
Gross unrealized losses (11) (235)
Estimated fair value 91,501 85,985
Certificates of deposit [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized cost 9,700 9,699
Gross unrealized gains 0 0
Gross unrealized losses 0 0
Estimated fair value $ 9,700 $ 9,699
v3.5.0.2
Investments (Details 1)
$ in Thousands
Jun. 30, 2016
USD ($)
Number
Dec. 31, 2015
USD ($)
Number
Schedule of Available-for-sale Securities [Line Items]    
No. of securities | Number 33 212
Fair value, Less than 12 months $ 4,958 $ 106,304
Unrealized losses, Less than 12 months (21) (877)
Fair value, 12 months or longer 5,733 12,101
Unrealized losses, 12 months or longer (17) (198)
Total, Fair value 10,691 118,405
Total, Unrealized losses $ (38) $ (1,075)
U. S. treasury securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
No. of securities | Number   2
Fair value, Less than 12 months   $ 3,542
Unrealized losses, Less than 12 months   (1)
Fair value, 12 months or longer   0
Unrealized losses, 12 months or longer   0
Total, Fair value   3,542
Total, Unrealized losses   $ (1)
U.S. federal agency obligations [Member]    
Schedule of Available-for-sale Securities [Line Items]    
No. of securities | Number 1 18
Fair value, Less than 12 months $ 0 $ 23,015
Unrealized losses, Less than 12 months 0 (163)
Fair value, 12 months or longer 3,200 1,976
Unrealized losses, 12 months or longer (5) (24)
Total, Fair value 3,200 24,991
Total, Unrealized losses $ (5) $ (187)
Municipal obligations, tax exempt [Member]    
Schedule of Available-for-sale Securities [Line Items]    
No. of securities | Number 20 47
Fair value, Less than 12 months $ 4,313 $ 11,328
Unrealized losses, Less than 12 months (20) (53)
Fair value, 12 months or longer 626 2,132
Unrealized losses, 12 months or longer (2) (18)
Total, Fair value 4,939 13,460
Total, Unrealized losses $ (22) $ (71)
Municipal obligations, taxable [Member]    
Schedule of Available-for-sale Securities [Line Items]    
No. of securities | Number   105
Fair value, Less than 12 months   $ 38,605
Unrealized losses, Less than 12 months   (494)
Fair value, 12 months or longer   5,068
Unrealized losses, 12 months or longer   (87)
Total, Fair value   43,673
Total, Unrealized losses   $ (581)
Agency mortgage-backed securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
No. of securities | Number 12 40
Fair value, Less than 12 months $ 645 $ 29,814
Unrealized losses, Less than 12 months (1) (166)
Fair value, 12 months or longer 1,907 2,925
Unrealized losses, 12 months or longer (10) (69)
Total, Fair value 2,552 32,739
Total, Unrealized losses $ (11) $ (235)
v3.5.0.2
Investments (Details 2) - USD ($)
$ in Thousands
Jun. 30, 2016
Dec. 31, 2015
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
v3.5.0.2
Investments (Details 3) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
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)
v3.5.0.2
Investments (Details Textual) - USD ($)
$ in Millions
Jun. 30, 2016
Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]    
Security Owned and Pledged as Collateral, Fair Value, Total $ 201.8 $ 171.6
v3.5.0.2
Loans and Allowance for Loan Losses (Details) - USD ($)
$ in Thousands
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total gross loans $ 435,684   $ 425,816      
Net deferred loan costs and loans in process 32   29      
Allowance for loan losses (5,652) $ (5,869) (5,922) $ (6,018) $ (5,905) $ (5,320)
Loans, net 430,064   419,923      
Residential Real Estate [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total gross loans 130,753   131,930      
Allowance for loan losses (584) (864) (925) (1,325) (1,386) (755)
Loans, net 130,753   131,930      
Construction Loans [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total gross loans 18,381   15,043      
Allowance for loan losses (89) (82) (77) (99) (103) (762)
Loans, net 18,381   15,043      
Commercial Real Estate [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total gross loans 119,147   118,983      
Allowance for loan losses (1,776) (1,831) (1,740) (1,539) (1,600) (1,832)
Loans, net 119,147   118,983      
Commercial Loan [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total gross loans 62,120   61,300      
Allowance for loan losses (1,393) (1,384) (1,530) (1,756) (1,515) (836)
Loans, net 62,120   61,300      
Agriculture Loans [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total gross loans 78,817   71,030      
Allowance for loan losses (1,600) (1,483) (1,428) (1,102) (1,104) (915)
Loans, net 78,817   71,030      
Municipal Loans [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total gross loans 7,263   7,635      
Allowance for loan losses (23) (24) (23) (21) (25) (51)
Loans, net 7,263   7,635      
Consumer Loan [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total gross loans 19,203   19,895      
Allowance for loan losses (187) $ (201) (199) $ (176) $ (172) $ (169)
Loans, net $ 19,203   $ 19,895      
v3.5.0.2
Loans and Allowance for Loan Losses (Details 1) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Dec. 31, 2015
Allowance for loan losses:            
Balance $ 5,869 $ 5,905 $ 5,922 $ 5,320    
Charge-offs (537) (107) (674) (249)    
Recoveries 20 19 54 1,747    
Provision for loan losses 300 200 350 (800)    
Balance 5,652 6,018 5,652 6,018    
Allowance for loan losses:            
Individually evaluated for loss         $ 245 $ 88
Collectively evaluated for loss         5,407 5,834
Total 5,869 5,905 5,652 6,018 5,652 5,922
Loan balances:            
Individually evaluated for loss         7,085 6,837
Collectively evaluated for loss         428,599 418,979
Total         430,064 419,923
Residential Real Estate [Member]            
Allowance for loan losses:            
Balance 864 1,386 925 755    
Charge-offs 0 (9) 0 (9)    
Recoveries 3 3 5 5    
Provision for loan losses (283) (55) (346) 574    
Balance 584 1,325 584 1,325    
Allowance for loan losses:            
Individually evaluated for loss         19 78
Collectively evaluated for loss         565 847
Total 864 1,386 584 1,325 584 925
Loan balances:            
Individually evaluated for loss         1,106 752
Collectively evaluated for loss         129,647 131,178
Total         130,753 131,930
Construction Loans [Member]            
Allowance for loan losses:            
Balance 82 103 77 762    
Charge-offs 0 0 0 0    
Recoveries 0 4 0 1,719    
Provision for loan losses 7 (9) 12 (2,382)    
Balance 89 99 89 99    
Allowance for loan losses:            
Individually evaluated for loss         0 0
Collectively evaluated for loss         89 77
Total 82 103 89 99 89 77
Loan balances:            
Individually evaluated for loss         2,061 2,220
Collectively evaluated for loss         16,320 12,823
Total         18,381 15,043
Commercial Real Estate [Member]            
Allowance for loan losses:            
Balance 1,831 1,600 1,740 1,832    
Charge-offs 0 0 0 0    
Recoveries 0 2 0 2    
Provision for loan losses (55) (63) 36 (295)    
Balance 1,776 1,539 1,776 1,539    
Allowance for loan losses:            
Individually evaluated for loss         0 0
Collectively evaluated for loss         1,776 1,740
Total 1,831 1,600 1,776 1,539 1,776 1,740
Loan balances:            
Individually evaluated for loss         2,417 2,429
Collectively evaluated for loss         116,730 116,554
Total         119,147 118,983
Commercial Loan [Member]            
Allowance for loan losses:            
Balance 1,384 1,515 1,530 836    
Charge-offs (306) (10) (306) (10)    
Recoveries 1 2 20 3    
Provision for loan losses 314 249 149 927    
Balance 1,393 1,756 1,393 1,756    
Allowance for loan losses:            
Individually evaluated for loss         13 0
Collectively evaluated for loss         1,380 1,530
Total 1,384 1,515 1,393 1,756 1,393 1,530
Loan balances:            
Individually evaluated for loss         127 620
Collectively evaluated for loss         61,993 60,680
Total         62,120 61,300
Agriculture Loans [Member]            
Allowance for loan losses:            
Balance 1,483 1,104 1,428 915    
Charge-offs (83) 0 (83) 0    
Recoveries 0 0 0 0    
Provision for loan losses 200 (2) 255 187    
Balance 1,600 1,102 1,600 1,102    
Allowance for loan losses:            
Individually evaluated for loss         206 0
Collectively evaluated for loss         1,394 1,428
Total 1,483 1,104 1,600 1,102 1,600 1,428
Loan balances:            
Individually evaluated for loss         879 189
Collectively evaluated for loss         77,938 70,841
Total         78,817 71,030
Municipal Loans [Member]            
Allowance for loan losses:            
Balance 24 25 23 51    
Charge-offs 0 0 0 (88)    
Recoveries 6 0 6 0    
Provision for loan losses (7) (4) (6) 58    
Balance 23 21 23 21    
Allowance for loan losses:            
Individually evaluated for loss         0 0
Collectively evaluated for loss         23 23
Total 24 25 23 21 23 23
Loan balances:            
Individually evaluated for loss         393 591
Collectively evaluated for loss         6,870 7,044
Total         7,263 7,635
Consumer Loan [Member]            
Allowance for loan losses:            
Balance 201 172 199 169    
Charge-offs (148) (88) (285) (142)    
Recoveries 10 8 23 18    
Provision for loan losses 124 84 250 131    
Balance 187 176 187 176    
Allowance for loan losses:            
Individually evaluated for loss         7 10
Collectively evaluated for loss         180 189
Total $ 201 $ 172 $ 187 $ 176 187 199
Loan balances:            
Individually evaluated for loss         102 36
Collectively evaluated for loss         19,101 19,859
Total         $ 19,203 $ 19,895
v3.5.0.2
Loans and Allowance for Loan Losses (Details 2) - USD ($)
$ in Thousands
6 Months Ended 12 Months Ended
Jun. 30, 2016
Dec. 31, 2015
Financing Receivable, Impaired [Line Items]    
Unpaid contractual principal $ 8,820 $ 8,589
Impaired loan balance 7,085 6,837
Impaired loans without an allowance 5,759 6,467
Impaired loans with an allowance 1,326 370
Related allowance recorded 245 88
Year-to-date average loan balance 7,366 7,408
Year-to-date interest income recognized 305 288
Residential Real Estate [Member]    
Financing Receivable, Impaired [Line Items]    
Unpaid contractual principal 1,106 752
Impaired loan balance 1,106 752
Impaired loans without an allowance 502 408
Impaired loans with an allowance 604 344
Related allowance recorded 19 78
Year-to-date average loan balance 1,117 1,041
Year-to-date interest income recognized 4 0
Construction Loans [Member]    
Financing Receivable, Impaired [Line Items]    
Unpaid contractual principal 3,796 3,955
Impaired loan balance 2,061 2,220
Impaired loans without an allowance 2,061 2,220
Impaired loans with an allowance 0 0
Related allowance recorded 0 0
Year-to-date average loan balance 2,137 2,389
Year-to-date interest income recognized 38 88
Commercial Real Estate [Member]    
Financing Receivable, Impaired [Line Items]    
Unpaid contractual principal 2,417 2,429
Impaired loan balance 2,417 2,429
Impaired loans without an allowance 2,417 2,429
Impaired loans with an allowance 0 0
Related allowance recorded 0 0
Year-to-date average loan balance 2,426 2,484
Year-to-date interest income recognized 253 175
Commercial Loan [Member]    
Financing Receivable, Impaired [Line Items]    
Unpaid contractual principal 127 637
Impaired loan balance 127 620
Impaired loans without an allowance 75 620
Impaired loans with an allowance 52 0
Related allowance recorded 13 0
Year-to-date average loan balance 148 634
Year-to-date interest income recognized 1 3
Agriculture Loans [Member]    
Financing Receivable, Impaired [Line Items]    
Unpaid contractual principal 879 189
Impaired loan balance 879 189
Impaired loans without an allowance 225 189
Impaired loans with an allowance 654 0
Related allowance recorded 206 0
Year-to-date average loan balance 918 188
Year-to-date interest income recognized 1 3
Municipal Loans [Member]    
Financing Receivable, Impaired [Line Items]    
Unpaid contractual principal 393 591
Impaired loan balance 393 591
Impaired loans without an allowance 393 591
Impaired loans with an allowance 0 0
Related allowance recorded 0 0
Year-to-date average loan balance 514 631
Year-to-date interest income recognized 8 19
Consumer Loan [Member]    
Financing Receivable, Impaired [Line Items]    
Unpaid contractual principal 102 36
Impaired loan balance 102 36
Impaired loans without an allowance 86 10
Impaired loans with an allowance 16 26
Related allowance recorded 7 10
Year-to-date average loan balance 106 41
Year-to-date interest income recognized $ 0 $ 0
v3.5.0.2
Loans and Allowance for Loan Losses (Details 3) - USD ($)
$ in Thousands
6 Months Ended 12 Months Ended
Jun. 30, 2016
Dec. 31, 2015
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Loans, 90 days or more delinquent and accruing $ 218 $ 0
Loans, Total past due loans accruing 1,431 1,402
Loans, Non-accrual loans 2,594 2,168
Loans, Total past due and non-accrual loans 4,025 3,570
Loans, Total loans not past due $ 431,659 $ 422,246
Percent of gross loans, 30-59 days delinquent and accruing 0.09% 0.15%
Percent of gross loans, 60-89 days delinquent and accruing 0.18% 0.18%
Percent of gross loans, 90 days or more delinquent and accruing 0.05% 0.00%
Percentage of gross loans, Total past due loans accruing 0.32% 0.33%
Percent of gross loans, Non-accrual loans 0.60% 0.51%
Percentage of Total past due and non-accrual loans 0.92% 0.84%
Percentage of Total loans not past due 99.08% 99.16%
Financing Receivables, 30 to 59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due $ 411 $ 643
Financing Receivables, 60 to 89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 802 759
Residential Real Estate [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Loans, 90 days or more delinquent and accruing 0 0
Loans, Total past due loans accruing 652 782
Loans, Non-accrual loans 916 749
Loans, Total past due and non-accrual loans 1,568 1,531
Loans, Total loans not past due 129,185 130,399
Residential Real Estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 140 70
Residential Real Estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 512 712
Construction Loans [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Loans, 90 days or more delinquent and accruing 0 0
Loans, Total past due loans accruing 5 4
Loans, Non-accrual loans 607 614
Loans, Total past due and non-accrual loans 612 618
Loans, Total loans not past due 17,769 14,425
Construction Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 5 4
Construction Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 0
Commercial Real Estate [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Loans, 90 days or more delinquent and accruing 0 0
Loans, Total past due loans accruing 247 240
Loans, Non-accrual loans 39 47
Loans, Total past due and non-accrual loans 286 287
Loans, Total loans not past due 118,861 118,696
Commercial Real Estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 10 240
Commercial Real Estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 237 0
Commercial Loan [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Loans, 90 days or more delinquent and accruing 0 0
Loans, Total past due loans accruing 0 130
Loans, Non-accrual loans 96 583
Loans, Total past due and non-accrual loans 96 713
Loans, Total loans not past due 62,024 60,587
Commercial Loan [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 90
Commercial Loan [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 40
Agriculture Loans [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Loans, 90 days or more delinquent and accruing 218 0
Loans, Total past due loans accruing 422 179
Loans, Non-accrual loans 834 139
Loans, Total past due and non-accrual loans 1,256 318
Loans, Total loans not past due 77,561 70,712
Agriculture Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 174 174
Agriculture Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 30 5
Municipal Loans [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Loans, 90 days or more delinquent and accruing 0 0
Loans, Total past due loans accruing 0 0
Loans, Non-accrual loans 0 0
Loans, Total past due and non-accrual loans 0 0
Loans, Total loans not past due 7,263 7,635
Municipal Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 0
Municipal Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 0
Consumer Loan [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Loans, 90 days or more delinquent and accruing 0 0
Loans, Total past due loans accruing 105 67
Loans, Non-accrual loans 102 36
Loans, Total past due and non-accrual loans 207 103
Loans, Total loans not past due 18,996 19,792
Consumer Loan [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 82 65
Consumer Loan [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due $ 23 $ 2
v3.5.0.2
Loans and Allowance for Loan Losses (Details 4) - USD ($)
$ in Thousands
Jun. 30, 2016
Dec. 31, 2015
Financing Receivable, Modifications [Line Items]    
Loans and Leases Receivable, Gross, Total $ 435,684 $ 425,816
Loans Receivables Non Classified [Member]    
Financing Receivable, Modifications [Line Items]    
Loans and Leases Receivable, Gross, Total 413,779 410,542
Loans Receivables Classified [Member]    
Financing Receivable, Modifications [Line Items]    
Loans and Leases Receivable, Gross, Total 21,905 15,274
Residential Real Estate [Member]    
Financing Receivable, Modifications [Line Items]    
Loans and Leases Receivable, Gross, Total 130,753 131,930
Residential Real Estate [Member] | Loans Receivables Non Classified [Member]    
Financing Receivable, Modifications [Line Items]    
Loans and Leases Receivable, Gross, Total 129,286 130,575
Residential Real Estate [Member] | Loans Receivables Classified [Member]    
Financing Receivable, Modifications [Line Items]    
Loans and Leases Receivable, Gross, Total 1,467 1,355
Construction Loans [Member]    
Financing Receivable, Modifications [Line Items]    
Loans and Leases Receivable, Gross, Total 18,381 15,043
Construction Loans [Member] | Loans Receivables Non Classified [Member]    
Financing Receivable, Modifications [Line Items]    
Loans and Leases Receivable, Gross, Total 17,638 14,429
Construction Loans [Member] | Loans Receivables Classified [Member]    
Financing Receivable, Modifications [Line Items]    
Loans and Leases Receivable, Gross, Total 743 614
Commercial Real Estate [Member]    
Financing Receivable, Modifications [Line Items]    
Loans and Leases Receivable, Gross, Total 119,147 118,983
Commercial Real Estate [Member] | Loans Receivables Non Classified [Member]    
Financing Receivable, Modifications [Line Items]    
Loans and Leases Receivable, Gross, Total 109,454 111,016
Commercial Real Estate [Member] | Loans Receivables Classified [Member]    
Financing Receivable, Modifications [Line Items]    
Loans and Leases Receivable, Gross, Total 9,693 7,967
Commercial Loan [Member] | Loans Receivables Non Classified [Member]    
Financing Receivable, Modifications [Line Items]    
Loans and Leases Receivable, Gross, Total 58,875 58,862
Commercial Loan [Member] | Loans Receivables Classified [Member]    
Financing Receivable, Modifications [Line Items]    
Loans and Leases Receivable, Gross, Total 3,245 2,438
Municipal Loans [Member]    
Financing Receivable, Modifications [Line Items]    
Loans and Leases Receivable, Gross, Total 7,263 7,635
Municipal Loans [Member] | Loans Receivables Non Classified [Member]    
Financing Receivable, Modifications [Line Items]    
Loans and Leases Receivable, Gross, Total 7,263 7,635
Municipal Loans [Member] | Loans Receivables Classified [Member]    
Financing Receivable, Modifications [Line Items]    
Loans and Leases Receivable, Gross, Total 0 0
Agriculture Loans [Member]    
Financing Receivable, Modifications [Line Items]    
Loans and Leases Receivable, Gross, Total 78,817 71,030
Agriculture Loans [Member] | Loans Receivables Non Classified [Member]    
Financing Receivable, Modifications [Line Items]    
Loans and Leases Receivable, Gross, Total 72,179 68,186
Agriculture Loans [Member] | Loans Receivables Classified [Member]    
Financing Receivable, Modifications [Line Items]    
Loans and Leases Receivable, Gross, Total 6,638 2,844
Consumer Loan [Member]    
Financing Receivable, Modifications [Line Items]    
Loans and Leases Receivable, Gross, Total 19,203 19,895
Consumer Loan [Member] | Loans Receivables Non Classified [Member]    
Financing Receivable, Modifications [Line Items]    
Loans and Leases Receivable, Gross, Total 19,084 19,839
Consumer Loan [Member] | Loans Receivables Classified [Member]    
Financing Receivable, Modifications [Line Items]    
Loans and Leases Receivable, Gross, Total $ 119 $ 56
v3.5.0.2
Loans and Allowance for Loan Losses (Details 5)
$ in Thousands
6 Months Ended 12 Months Ended
Jun. 30, 2016
USD ($)
Number
Dec. 31, 2015
USD ($)
Number
Financing Receivable, Modifications, Recorded Investment, Non Accrual Balance $ 2,594 $ 2,168
Troubled Debt Restructurings [Member]    
Troubled debt restructurings, Number of loans | Number 14 14
Financing Receivable, Modifications, Recorded Investment, Non Accrual Balance $ 594 $ 655
Financing Receivable, Modifications, Recorded Investment, Accruing Balance $ 4,491 $ 4,669
Municipal Loans [Member] | Troubled Debt Restructurings [Member]    
Troubled debt restructurings, Number of loans | Number 2 2
Financing Receivable, Modifications, Recorded Investment, Non Accrual Balance $ 0 $ 0
Financing Receivable, Modifications, Recorded Investment, Accruing Balance 393 591
Commercial Loan [Member]    
Financing Receivable, Modifications, Recorded Investment, Non Accrual Balance $ 96 $ 583
Commercial Loan [Member] | Troubled Debt Restructurings [Member]    
Troubled debt restructurings, Number of loans | Number 2 1
Financing Receivable, Modifications, Recorded Investment, Non Accrual Balance $ 0 $ 0
Financing Receivable, Modifications, Recorded Investment, Accruing Balance $ 31 $ 37
Construction Loans [Member] | Troubled Debt Restructurings [Member]    
Troubled debt restructurings, Number of loans | Number 4 4
Financing Receivable, Modifications, Recorded Investment, Non Accrual Balance $ 594 $ 600
Financing Receivable, Modifications, Recorded Investment, Accruing Balance $ 1,454 $ 1,606
Agriculture loan [Member] | Troubled Debt Restructurings [Member]    
Troubled debt restructurings, Number of loans | Number 1 2
Financing Receivable, Modifications, Recorded Investment, Non Accrual Balance $ 0 $ 0
Financing Receivable, Modifications, Recorded Investment, Accruing Balance 45 50
Residential Real Estate [Member]    
Financing Receivable, Modifications, Recorded Investment, Non Accrual Balance $ 916 $ 749
Residential Real Estate [Member] | Troubled Debt Restructurings [Member]    
Troubled debt restructurings, Number of loans | Number 2 2
Financing Receivable, Modifications, Recorded Investment, Non Accrual Balance $ 0 $ 55
Financing Receivable, Modifications, Recorded Investment, Accruing Balance 190 3
Commercial Real Estate [Member]    
Financing Receivable, Modifications, Recorded Investment, Non Accrual Balance $ 39 $ 47
Commercial Real Estate [Member] | Troubled Debt Restructurings [Member]    
Troubled debt restructurings, Number of loans | Number 3 3
Financing Receivable, Modifications, Recorded Investment, Non Accrual Balance $ 0 $ 0
Financing Receivable, Modifications, Recorded Investment, Accruing Balance $ 2,378 $ 2,382
v3.5.0.2
Loans and Allowance for Loan Losses (Details Textual) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Mar. 31, 2016
Dec. 31, 2015
Mar. 31, 2015
Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]                
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans     $ 44,000 $ 237,000        
Impaired Financing Receivable, Recorded Investment, Total $ 7,085,000   7,085,000     $ 6,837,000    
Loans Receivable, Gross, Commercial, Agricultural             $ 44,000  
Proceeds from Loan Originations     2,400,000          
Allowance for loan losses 5,652,000 $ 6,018,000 5,652,000 6,018,000 $ 5,869,000 5,922,000 5,905,000 $ 5,320,000
Commercial Portfolio Segment [Member]                
Accounts, Notes, Loans and Financing Receivable [Line Items]                
Loan Restructuring, Trial Modifications, Amount 8,000 2,700,000            
Residential Portfolio Segment [Member]                
Accounts, Notes, Loans and Financing Receivable [Line Items]                
Loan Restructuring, Trial Modifications, Amount 188,000   56,000          
Agriculture Portfolio Segment [Member]                
Accounts, Notes, Loans and Financing Receivable [Line Items]                
Loan Restructuring, Trial Modifications, Amount     25,000          
Commercial Real Estate [Member]                
Accounts, Notes, Loans and Financing Receivable [Line Items]                
Impaired Financing Receivable, Recorded Investment, Total 2,417,000   2,417,000     2,429,000    
Allowance for loan losses 1,776,000 1,539,000 1,776,000 1,539,000 $ 1,831,000 $ 1,740,000 $ 1,600,000 $ 1,832,000
Construction Loans [Member]                
Accounts, Notes, Loans and Financing Receivable [Line Items]                
Allowance for loan losses 620,000,000 $ 4,300,000 620,000,000 $ 4,300,000        
Construction Loans [Member] | Trouble Debt Restructurings [Member]                
Accounts, Notes, Loans and Financing Receivable [Line Items]                
Loans and Leases Receivable, Impaired, Commitment to Lend $ 84,000   $ 84,000          
v3.5.0.2
Goodwill and Other Intangible Assets (Details) - USD ($)
$ in Thousands
Jun. 30, 2016
Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]    
Intangible assets, Gross carrying amount $ 7,997 $ 7,739
Intangible assets, Accumulated amortization (3,849) (3,435)
Intangible assets, Net carrying amount 4,148 4,304
Core deposit intangible assets [Member]    
Finite-Lived Intangible Assets [Line Items]    
Intangible assets, Gross carrying amount 2,067 2,067
Intangible assets, Accumulated amortization (1,000) (855)
Intangible assets, Net carrying amount 1,067 1,212
Lease intangible asset [Member]    
Finite-Lived Intangible Assets [Line Items]    
Intangible assets, Gross carrying amount 350 350
Intangible assets, Accumulated amortization (120) (98)
Intangible assets, Net carrying amount 230 252
Mortgage servicing rights [Member]    
Finite-Lived Intangible Assets [Line Items]    
Intangible assets, Gross carrying amount 5,580 5,322
Intangible assets, Accumulated amortization (2,729) (2,482)
Intangible assets, Net carrying amount $ 2,851 $ 2,840
v3.5.0.2
Goodwill and Other Intangible Assets (Details 1)
$ in Thousands
Jun. 30, 2016
USD ($)
Finite-Lived Intangible Assets [Line Items]  
Remainder of 2016 $ 160
2017 289
2018 252
2019 214
2020 177
Thereafter 205
Total $ 1,297
v3.5.0.2
Goodwill and Other Intangible Assets (Details 2) - USD ($)
$ in Thousands
Jun. 30, 2016
Dec. 31, 2015
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
v3.5.0.2
Goodwill and Other Intangible Assets (Details 3) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
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
v3.5.0.2
Goodwill and Other Intangible Assets (Details Textual) - USD ($)
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Dec. 31, 2015
Weighted Average [Member]          
Finite-Lived Intangible Assets [Line Items]          
Assumption For Fair Value Of Interests Continued To Be Held By Transferor Servicing Assets Or Liabilities Weighted Average Default Rate     2.16%   2.25%
Mortgage Loans Serviced [Member]          
Finite-Lived Intangible Assets [Line Items]          
Escrow Deposit $ 4,500,000   $ 4,500,000   $ 3,500,000
Interest and Fee Income, Other Loans 304,000 $ 268,000 604,000 $ 523,000  
Servicing Asset at Fair Value, Amount 4,100,000   $ 4,100,000   $ 4,600,000
Mortgage Loans Serviced [Member] | Minimum [Member]          
Finite-Lived Intangible Assets [Line Items]          
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Discount Rate     9.50%   9.50%
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Prepayment Speed     6.14%   5.15%
Mortgage Loans Serviced [Member] | Maximum [Member]          
Finite-Lived Intangible Assets [Line Items]          
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Discount Rate     9.52%   10.00%
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Prepayment Speed     14.98%   33.78%
Mortgage Repurchase Reserve [Member]          
Finite-Lived Intangible Assets [Line Items]          
Mortgage Loans on Real Estate, Write-down or Reserve, Amount 361,000   $ 361,000   $ 351,000
Financing Receivable, Allowance for Credit Losses, Recovery $ 3,000   $ 10,000    
v3.5.0.2
Earnings per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
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
[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.
[2] Per share amounts for the periods ended June 30, 2015 have been adjusted to give effect to the 5% stock dividend paid during December 2015.
v3.5.0.2
Earnings per Share (Details Textual)
12 Months Ended
Dec. 31, 2015
Percentage Of Stocks Dividend 5.00%
v3.5.0.2
Repurchase Agreements (Details) - USD ($)
Jun. 30, 2016
Dec. 31, 2015
Assets Sold under Agreements to Repurchase [Line Items]    
Assets Sold under Agreements to Repurchase, Carrying Amount $ 11,527 $ 11,974
U. S. federal agency obligations [Member]    
Assets Sold under Agreements to Repurchase [Line Items]    
Assets Sold under Agreements to Repurchase, Carrying Amount 5,063 5,810
Agency mortgage-backed securities [Member]    
Assets Sold under Agreements to Repurchase [Line Items]    
Assets Sold under Agreements to Repurchase, Carrying Amount 6,464 6,164
Overnight and Continuous [Member]    
Assets Sold under Agreements to Repurchase [Line Items]    
Assets Sold under Agreements to Repurchase, Carrying Amount 11,527 11,974
Overnight and Continuous [Member] | U. S. federal agency obligations [Member]    
Assets Sold under Agreements to Repurchase [Line Items]    
Assets Sold under Agreements to Repurchase, Carrying Amount 5,063 5,810
Overnight and Continuous [Member] | Agency mortgage-backed securities [Member]    
Assets Sold under Agreements to Repurchase [Line Items]    
Assets Sold under Agreements to Repurchase, Carrying Amount 6,464 6,164
Maturity Up to 30 Days [Member]    
Assets Sold under Agreements to Repurchase [Line Items]    
Assets Sold under Agreements to Repurchase, Carrying Amount 0 0
Maturity Up to 30 Days [Member] | U. S. federal agency obligations [Member]    
Assets Sold under Agreements to Repurchase [Line Items]    
Assets Sold under Agreements to Repurchase, Carrying Amount 0 0
Maturity Up to 30 Days [Member] | Agency mortgage-backed securities [Member]    
Assets Sold under Agreements to Repurchase [Line Items]    
Assets Sold under Agreements to Repurchase, Carrying Amount 0 0
Maturity 30 to 90 Days [Member]    
Assets Sold under Agreements to Repurchase [Line Items]    
Assets Sold under Agreements to Repurchase, Carrying Amount 0 0
Maturity 30 to 90 Days [Member] | U. S. federal agency obligations [Member]    
Assets Sold under Agreements to Repurchase [Line Items]    
Assets Sold under Agreements to Repurchase, Carrying Amount 0 0
Maturity 30 to 90 Days [Member] | Agency mortgage-backed securities [Member]    
Assets Sold under Agreements to Repurchase [Line Items]    
Assets Sold under Agreements to Repurchase, Carrying Amount 0 0
Maturity Greater than 90 Days [Member]    
Assets Sold under Agreements to Repurchase [Line Items]    
Assets Sold under Agreements to Repurchase, Carrying Amount 0 0
Maturity Greater than 90 Days [Member] | U. S. federal agency obligations [Member]    
Assets Sold under Agreements to Repurchase [Line Items]    
Assets Sold under Agreements to Repurchase, Carrying Amount 0 0
Maturity Greater than 90 Days [Member] | Agency mortgage-backed securities [Member]    
Assets Sold under Agreements to Repurchase [Line Items]    
Assets Sold under Agreements to Repurchase, Carrying Amount $ 0 $ 0
v3.5.0.2
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
v3.5.0.2
Fair Value of Financial Instruments and Fair Value Measurements (Details) - USD ($)
$ in Thousands
Jun. 30, 2016
Dec. 31, 2015
Jun. 30, 2015
Dec. 31, 2014
Financial assets:        
Cash and cash equivalents, carrying amount $ 14,317 $ 13,569 $ 15,135 $ 12,760
Cash and cash equivalents 14,317 13,569    
Investment securities available-for-sale 366,550 353,438    
Bank stocks, at cost, carrying amount 4,622 4,497    
Loans, net 431,483 420,061    
Loans held for sale, net 10,062      
Loans, net, carrying amount 430,064 419,923    
Loans held for sale, net, carrying amount 10,057 14,465    
Derivative financial instruments 615 797    
Accrued interest receivable 3,927 4,002    
Financial liabilities:        
Non-maturity deposits (566,971) (570,784)    
Time deposits, carrying amount (148,650) (143,943)    
FHLB borrowings, carrying amount (48,000) (37,600)    
Subordinated debentures, carrying amount (21,184) (21,084)    
Other borrowings, carrying amount (11,527) (11,974)    
Time deposits (148,116) (142,924)    
FHLB borrowings (49,247) (38,215)    
Subordinated debentures (18,812) (19,051)    
Other borrowings (11,527) (11,974)    
Accrued interest payable (271) (287)    
Fair Value, Inputs, Level 1 [Member]        
Financial assets:        
Cash and cash equivalents 14,317 13,569    
Investment securities available-for-sale 7,363 8,003    
Loans, net 0 0    
Loans held for sale, net 0      
Derivative financial instruments 0 0    
Accrued interest receivable 22 22    
Financial liabilities:        
Non-maturity deposits (566,971) (570,784)    
Time deposits 0 0    
FHLB borrowings 0 0    
Subordinated debentures 0 0    
Other borrowings 0 0    
Accrued interest payable 0 0    
Fair Value, Inputs, Level 2 [Member]        
Financial assets:        
Cash and cash equivalents 0 0    
Investment securities available-for-sale 359,187 345,435    
Loans, net 0 0    
Loans held for sale, net 10,062      
Derivative financial instruments 615 797    
Accrued interest receivable 1,979 2,117    
Financial liabilities:        
Non-maturity deposits 0 0    
Time deposits (148,116) (142,924)    
FHLB borrowings (49,247) (38,215)    
Subordinated debentures (18,812) (19,051)    
Other borrowings (11,527) (11,974)    
Accrued interest payable (271) (287)    
Fair Value, Inputs, Level 3 [Member]        
Financial assets:        
Cash and cash equivalents 0 0    
Investment securities available-for-sale 0 0    
Loans, net 431,483 420,061    
Loans held for sale, net 0      
Derivative financial instruments 0 0    
Accrued interest receivable 1,926 1,863    
Financial liabilities:        
Non-maturity deposits 0 0    
Time deposits 0 0    
FHLB borrowings 0 0    
Subordinated debentures 0 0    
Other borrowings 0 0    
Accrued interest payable 0 0    
Carrying Amount, Fair Value Disclosure [Member]        
Financial assets:        
Cash and cash equivalents, carrying amount 14,317 13,569    
Investment securities available-for-sale 366,550 353,438    
Bank stocks, at cost, carrying amount 4,622 4,497    
Loans, net, carrying amount 430,064 419,923    
Loans held for sale, net, carrying amount 10,057      
Derivative financial instruments 615 797    
Accrued interest receivable, carrying amount 3,927 4,002    
Financial liabilities:        
Non-maturity deposits, carrying amount (566,971) (570,784)    
Time deposits, carrying amount (148,650) (143,943)    
FHLB borrowings, carrying amount (48,000) (37,600)    
Subordinated debentures, carrying amount (21,184) (2,184)    
Other borrowings, carrying amount (11,527) (11,974)    
Accrued interest payable, carrying amount $ (271) $ (287)    
v3.5.0.2
Fair Value of Financial Instruments and Fair Value Measurements (Details 1) - USD ($)
$ in Thousands
Jun. 30, 2016
Dec. 31, 2015
Assets:    
Estimated fair value $ 366,550 $ 353,438
Derivative financial instruments 615 797
Common stocks [Member]    
Assets:    
Estimated fair value 1,314 1,486
Fair Value, Measurements, Recurring [Member]    
Assets:    
Derivative financial instruments 615 797
Fair Value, Measurements, Recurring [Member] | Common stocks [Member]    
Assets:    
Estimated fair value 1,314 1,486
Fair Value, Measurements, Recurring [Member] | Mortgage-backed securities [Member]    
Assets:    
Estimated fair value 91,501 85,985
U. S. federal agency obligations [Member] | Fair Value, Measurements, Recurring [Member]    
Assets:    
Estimated fair value 27,985 29,920
Municipal obligations, tax exempt [Member]    
Assets:    
Estimated fair value 155,735 137,941
Municipal obligations, tax exempt [Member] | Fair Value, Measurements, Recurring [Member]    
Assets:    
Estimated fair value 155,735 137,941
Municipal obligations, taxable [Member]    
Assets:    
Estimated fair value 74,266 81,890
Municipal obligations, taxable [Member] | Fair Value, Measurements, Recurring [Member]    
Assets:    
Estimated fair value 74,266 81,890
U. S. treasury securities [Member]    
Assets:    
Estimated fair value 6,049 6,517
U. S. treasury securities [Member] | Fair Value, Measurements, Recurring [Member]    
Assets:    
Estimated fair value 6,049 6,517
Certificates of deposit [Member] | Fair Value, Measurements, Recurring [Member]    
Assets:    
Estimated fair value 9,700 9,699
Fair Value, Inputs, Level 1 [Member]    
Assets:    
Estimated fair value 7,363 8,003
Derivative financial instruments 0 0
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member]    
Assets:    
Derivative financial instruments 0 0
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Common stocks [Member]    
Assets:    
Estimated fair value 1,314 1,486
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Mortgage-backed securities [Member]    
Assets:    
Estimated fair value 0 0
Fair Value, Inputs, Level 1 [Member] | U. S. federal agency obligations [Member] | Fair Value, Measurements, Recurring [Member]    
Assets:    
Estimated fair value 0 0
Fair Value, Inputs, Level 1 [Member] | Municipal obligations, tax exempt [Member] | Fair Value, Measurements, Recurring [Member]    
Assets:    
Estimated fair value 0 0
Fair Value, Inputs, Level 1 [Member] | Municipal obligations, taxable [Member] | Fair Value, Measurements, Recurring [Member]    
Assets:    
Estimated fair value 0 0
Fair Value, Inputs, Level 1 [Member] | U. S. treasury securities [Member] | Fair Value, Measurements, Recurring [Member]    
Assets:    
Estimated fair value 6,049 6,517
Fair Value, Inputs, Level 1 [Member] | Certificates of deposit [Member] | Fair Value, Measurements, Recurring [Member]    
Assets:    
Estimated fair value 0 0
Fair Value, Inputs, Level 2 [Member]    
Assets:    
Estimated fair value 359,187 345,435
Derivative financial instruments 615 797
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member]    
Assets:    
Derivative financial instruments 615 797
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Common stocks [Member]    
Assets:    
Estimated fair value 0 0
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Mortgage-backed securities [Member]    
Assets:    
Estimated fair value 91,501 85,985
Fair Value, Inputs, Level 2 [Member] | U. S. federal agency obligations [Member] | Fair Value, Measurements, Recurring [Member]    
Assets:    
Estimated fair value 27,985 29,920
Fair Value, Inputs, Level 2 [Member] | Municipal obligations, tax exempt [Member] | Fair Value, Measurements, Recurring [Member]    
Assets:    
Estimated fair value 155,735 137,941
Fair Value, Inputs, Level 2 [Member] | Municipal obligations, taxable [Member] | Fair Value, Measurements, Recurring [Member]    
Assets:    
Estimated fair value 74,266 81,890
Fair Value, Inputs, Level 2 [Member] | U. S. treasury securities [Member] | Fair Value, Measurements, Recurring [Member]    
Assets:    
Estimated fair value 0 0
Fair Value, Inputs, Level 2 [Member] | Certificates of deposit [Member] | Fair Value, Measurements, Recurring [Member]    
Assets:    
Estimated fair value 9,700 9,699
Fair Value, Inputs, Level 3 [Member]    
Assets:    
Estimated fair value 0 0
Derivative financial instruments 0 0
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member]    
Assets:    
Derivative financial instruments 0 0
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Common stocks [Member]    
Assets:    
Estimated fair value 0 0
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Mortgage-backed securities [Member]    
Assets:    
Estimated fair value 0 0
Fair Value, Inputs, Level 3 [Member] | U. S. federal agency obligations [Member] | Fair Value, Measurements, Recurring [Member]    
Assets:    
Estimated fair value 0 0
Fair Value, Inputs, Level 3 [Member] | Municipal obligations, tax exempt [Member] | Fair Value, Measurements, Recurring [Member]    
Assets:    
Estimated fair value 0 0
Fair Value, Inputs, Level 3 [Member] | Municipal obligations, taxable [Member] | Fair Value, Measurements, Recurring [Member]    
Assets:    
Estimated fair value 0 0
Fair Value, Inputs, Level 3 [Member] | U. S. treasury securities [Member] | Fair Value, Measurements, Recurring [Member]    
Assets:    
Estimated fair value 0 0
Fair Value, Inputs, Level 3 [Member] | Certificates of deposit [Member] | Fair Value, Measurements, Recurring [Member]    
Assets:    
Estimated fair value $ 0 $ 0
v3.5.0.2
Fair Value of Financial Instruments and Fair Value Measurements (Details 2) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Dec. 31, 2015
Assets:          
Loans held for sale $ 10,062   $ 10,062    
Gain (Loss) on loans held for sale, net 1,405 $ 2,251 3,199 $ 4,194  
Fair Value, Measurements, Nonrecurring [Member]          
Assets:          
Loans held for sale         $ 14,465
Gain (Loss) on loans held for sale, net         (10)
Fair Value, Measurements, Nonrecurring [Member] | Commercial loans [Member]          
Assets:          
Impaired loans 39   39    
Total (losses)/gains On Impaired Loans Fair Value Disclosure     (13)    
Fair Value, Measurements, Nonrecurring [Member] | Agriculture loans [Member]          
Assets:          
Impaired loans 448   448    
Total (losses)/gains On Impaired Loans Fair Value Disclosure     (206)    
Fair Value, Measurements, Nonrecurring [Member] | Consumer loans [Member]          
Assets:          
Impaired loans 9   9   16
Total (losses)/gains On Impaired Loans Fair Value Disclosure     2   6
Fair Value, Measurements, Nonrecurring [Member] | One-to-four family residential real estate [Member]          
Assets:          
Impaired loans 585   585   266
Total (losses)/gains On Impaired Loans Fair Value Disclosure     3   (137)
Fair Value, Inputs, Level 1 [Member]          
Assets:          
Loans held for sale 0   0    
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Nonrecurring [Member]          
Assets:          
Loans held for sale         0
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Commercial loans [Member]          
Assets:          
Impaired loans 0   0    
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Agriculture loans [Member]          
Assets:          
Impaired loans 0   0    
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Consumer loans [Member]          
Assets:          
Impaired loans 0   0   0
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Nonrecurring [Member] | One-to-four family residential real estate [Member]          
Assets:          
Impaired loans 0   0   0
Fair Value, Inputs, Level 2 [Member]          
Assets:          
Loans held for sale 10,062   10,062    
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member]          
Assets:          
Loans held for sale         14,465
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Commercial loans [Member]          
Assets:          
Impaired loans 0   0    
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Agriculture loans [Member]          
Assets:          
Impaired loans 0   0    
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Consumer loans [Member]          
Assets:          
Impaired loans 0   0   0
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member] | One-to-four family residential real estate [Member]          
Assets:          
Impaired loans 0   0   0
Fair Value, Inputs, Level 3 [Member]          
Assets:          
Loans held for sale 0   0    
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member]          
Assets:          
Loans held for sale         0
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Commercial loans [Member]          
Assets:          
Impaired loans 39   39    
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Agriculture loans [Member]          
Assets:          
Impaired loans 448   448    
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Consumer loans [Member]          
Assets:          
Impaired loans 9   9   16
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | One-to-four family residential real estate [Member]          
Assets:          
Impaired loans $ 585   $ 585   $ 266
v3.5.0.2
Fair Value of Financial Instruments and Fair Value Measurements (Details 3) - USD ($)
$ in Thousands
6 Months Ended 12 Months Ended
Jun. 30, 2016
Dec. 31, 2015
One-to-four family residential real estate [Member] | Minimum [Member]    
Fair Value Measurements Sales Comparison Range 6.00% 0.00%
One-to-four family residential real estate [Member] | Maximum [Member]    
Fair Value Measurements Sales Comparison Range 40.00% 40.00%
Commercial loans [Member] | Minimum [Member]    
Fair Value Measurements Sales Comparison Range 15.00%  
Agriculture loans [Member] | Minimum [Member]    
Fair Value Measurements Sales Comparison Range 20.00%  
Agriculture loans [Member] | Maximum [Member]    
Fair Value Measurements Sales Comparison Range 50.00%  
Fair Value, Measurements, Nonrecurring [Member] | One-to-four family residential real estate [Member]    
Impaired Loans Fair Value Disclosure $ 585 $ 266
Fair Value Measurements, Valuation Techniques Sales comparison Sales comparison
Fair Value Measurements, Changes in Valuation Techniques Adjustment to appraised value Adjustment to appraised value
Fair Value, Measurements, Nonrecurring [Member] | Commercial loans [Member]    
Impaired Loans Fair Value Disclosure $ 39  
Fair Value Measurements, Valuation Techniques Sales comparison  
Fair Value Measurements, Changes in Valuation Techniques Adjustment to appraised value  
Fair Value, Measurements, Nonrecurring [Member] | Agriculture loans [Member]    
Impaired Loans Fair Value Disclosure $ 448  
Fair Value Measurements, Valuation Techniques Sales comparison  
Fair Value Measurements, Changes in Valuation Techniques Adjustment to appraised value  
Fair Value, Measurements, Nonrecurring [Member] | Consumer loans [Member]    
Impaired Loans Fair Value Disclosure $ 9 $ 16
Fair Value Measurements, Valuation Techniques Sales comparison Sales comparison
Fair Value Measurements, Changes in Valuation Techniques Adjustment to appraised value Adjustment to comparable sales
Fair Value Measurements Sales Comparison Range 0.00% 0.00%
v3.5.0.2
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
v3.5.0.2
Regulatory Capital Requirements (Details) - USD ($)
$ in Thousands
Jun. 30, 2016
Dec. 31, 2015
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%  
Companys Regulatory Capital Requirements [Member]    
Regulatory Capital Requirements [Line Items]    
Leverage - Actual Amount $ 85,237 $ 80,401
Common Equity Tier 1 Capital - Actual Amount 64,736 60,375
Tier 1 Capital - Actual Amount 85,237 80,401
Total Risk Based Capital - Actual Amount $ 91,378 $ 87,214
Leverage - Actual Ratio 9.66% 9.43%
Common Equity Tier 1 Capital - Actual Ratio 11.93% 11.05%
Tier 1 Capital - Actual Ratio 15.71% 14.72%
Total Risk Based Capital - Actual Ratio 16.84% 15.96%
Leverage - For capital adequacy purposes Amount [1] $ 35,286 $ 34,092
Common Equity Tier 1 Capital - For capital adequacy purposes Amount [1] 27,811 24,584
Tier 1 Capital - For capital adequacy purposes Amount [1] 35,950 32,779
Total Risk Based Capital - For capital adequacy purposes Amount [1] $ 46,803 $ 43,706
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%
[1] The ratios for June 30, 2016 include a capital conservation buffer of 0.625%.
v3.5.0.2
Regulatory Capital Requirements (Details 1) - USD ($)
$ in Thousands
Jun. 30, 2016
Dec. 31, 2015
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%
[1] The ratios for June 30, 2016 include a capital conservation buffer of 0.625%.
v3.5.0.2
Regulatory Capital Requirements (Details Textual) - USD ($)
$ in Thousands
6 Months Ended 37 Months Ended
Jun. 30, 2016
Jan. 31, 2019
Dec. 31, 2015
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%