California
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77-0539125
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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7100 N. Financial Dr., Suite 101, Fresno, California
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93720
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(Address of principal executive offices)
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(Zip code)
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Large accelerated filer
o
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Accelerated filer
ý
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Non-accelerated filer
o
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Small reporting company
o
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(Do not check if a smaller reporting company)
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(In thousands, except share amounts)
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March 31, 2016
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December 31, 2015
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ASSETS
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Cash and due from banks
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$
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22,525
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$
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23,339
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Interest-earning deposits in other banks
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55,824
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70,988
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Federal funds sold
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307
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290
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Total cash and cash equivalents
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78,656
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94,617
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Available-for-sale investment securities (Amortized cost of $488,425 at March 31, 2016 and $470,080 at December 31, 2015)
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501,978
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477,554
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Held-to-maturity investment securities (Fair value of $35,142 at December 31, 2015)
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—
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31,712
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Loans, less allowance for credit losses of $10,136 at March 31, 2016 and $9,610 at December 31, 2015
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598,864
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588,501
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Bank premises and equipment, net
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9,002
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9,292
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Bank owned life insurance
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20,847
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20,702
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Federal Home Loan Bank stock
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4,823
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4,823
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Goodwill
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29,917
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29,917
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Core deposit intangibles
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990
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1,024
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Accrued interest receivable and other assets
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26,466
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18,594
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Total assets
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$
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1,271,543
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$
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1,276,736
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LIABILITIES AND SHAREHOLDERS’ EQUITY
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Deposits:
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Non-interest bearing
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$
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408,080
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$
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428,773
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Interest bearing
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695,399
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687,494
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Total deposits
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1,103,479
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1,116,267
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Junior subordinated deferrable interest debentures
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5,155
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5,155
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Accrued interest payable and other liabilities
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17,130
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15,991
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Total liabilities
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1,125,764
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1,137,413
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Commitments and contingencies (Note 8)
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Shareholders’ equity:
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Preferred stock, no par value, $1,000 per share liquidation preference; 10,000,000 shares authorized, none issued and outstanding
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—
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—
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Common stock, no par value; 80,000,000 shares authorized; issued and outstanding: 11,026,229 at March 31, 2016 and 10,996,773 at December 31, 2015
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54,624
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54,424
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Retained earnings
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83,180
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80,437
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Accumulated other comprehensive income, net of tax
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7,975
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4,462
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Total shareholders’ equity
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145,779
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139,323
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Total liabilities and shareholders’ equity
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$
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1,271,543
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$
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1,276,736
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For the Quarter
Ended March 31, |
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(In thousands, except share and per share amounts)
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2016
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2015
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INTEREST INCOME:
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Interest and fees on loans
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$
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7,733
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$
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7,286
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Interest on deposits in other banks
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74
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46
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Interest and dividends on investment securities:
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Taxable
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1,523
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1,107
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Exempt from Federal income taxes
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1,523
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1,538
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Total interest income
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10,853
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9,977
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INTEREST EXPENSE:
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Interest on deposits
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221
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233
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Interest on junior subordinated deferrable interest debentures
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29
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24
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Total interest expense
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250
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257
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Net interest income before provision for credit losses
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10,603
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9,720
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(REVERSAL OF) PROVISION FOR CREDIT LOSSES
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(250
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)
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—
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Net interest income after provision for credit losses
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10,853
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9,720
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NON-INTEREST INCOME:
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Service charges
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749
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871
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Appreciation in cash surrender value of bank owned life insurance
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145
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154
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Interchange fees
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279
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278
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Net realized gains on sales of investment securities
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1,130
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726
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Other-than-temporary impairment loss on investment securities
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(136
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)
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—
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Federal Home Loan Bank dividends
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97
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86
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Loan placement fees
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191
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298
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Other income
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249
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278
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Total non-interest income
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2,704
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2,691
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NON-INTEREST EXPENSES:
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Salaries and employee benefits
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5,254
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5,163
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Occupancy and equipment
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1,207
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1,150
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Professional services
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336
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481
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Data processing
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347
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281
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Regulatory assessments
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143
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336
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ATM/Debit card expenses
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122
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137
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License and maintenance contracts
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132
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138
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Directors’ expenses
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171
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128
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Advertising
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159
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159
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Internet banking expense
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161
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203
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Amortization of core deposit intangibles
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34
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84
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Other
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910
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1,028
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Total non-interest expenses
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8,976
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9,288
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Income before provision for income taxes
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4,581
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3,123
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Provision for income taxes
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1,178
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657
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Net income available to common shareholders
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$
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3,403
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$
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2,466
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Earnings per common share:
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Basic earnings per share
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$
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0.31
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$
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0.23
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Weighted average common shares used in basic computation
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10,953,845
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10,923,590
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Diluted earnings per share
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$
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0.31
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$
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0.22
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Weighted average common shares used in diluted computation
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11,040,790
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11,002,976
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Cash dividend per common share
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$
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0.06
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$
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—
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For the Quarter
Ended March 31, |
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(In thousands)
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2016
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2015
|
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Net income
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$
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3,403
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$
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2,466
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Other Comprehensive Income:
|
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||||
Unrealized gains on securities:
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Unrealized holdings gains arising during the period
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4,002
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2,384
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Less: reclassification for net gains included in net income
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434
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726
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Less: reclassification for other-than-temporary impairment loss included in net income
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(136
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)
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—
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Transfer of investment securities from held-to-maturity to available-for-sale
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2,647
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—
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|
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Amortization of net unrealized gains transferred
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(64
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)
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(1
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)
|
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Other comprehensive income, before tax
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|
6,015
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1,657
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Tax (expense) benefit related to items of other comprehensive income
|
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(2,502
|
)
|
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(682
|
)
|
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Total other comprehensive income
|
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3,513
|
|
|
975
|
|
||
Comprehensive income
|
|
$
|
6,916
|
|
|
$
|
3,441
|
|
|
|
For the Quarter
Ended March 31, |
||||||
(In thousands)
|
|
2016
|
|
2015
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
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Net income
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$
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3,403
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$
|
2,466
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
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Net decrease in deferred loan fees
|
|
(293
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)
|
|
(117
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)
|
||
Depreciation
|
|
349
|
|
|
339
|
|
||
Accretion
|
|
(301
|
)
|
|
(248
|
)
|
||
Amortization
|
|
1,995
|
|
|
2,054
|
|
||
Stock-based compensation
|
|
52
|
|
|
61
|
|
||
Excess tax benefit from exercise of stock options
|
|
(5
|
)
|
|
—
|
|
||
(Reversal of) provision for credit losses
|
|
(250
|
)
|
|
—
|
|
||
Other than temporary impairment losses on investment securities
|
|
136
|
|
|
—
|
|
||
Net realized gains on sales of available-for-sale investment securities
|
|
(434
|
)
|
|
(726
|
)
|
||
Net realized gains on sales of held-to-maturity securities
|
|
(696
|
)
|
|
—
|
|
||
Net loss on disposal of premises and equipment
|
|
—
|
|
|
2
|
|
||
Increase in bank owned life insurance, net of expenses
|
|
(145
|
)
|
|
(154
|
)
|
||
Net decrease (increase) in accrued interest receivable and other assets
|
|
54
|
|
|
1,471
|
|
||
Net (decrease) increase in accrued interest payable and other liabilities
|
|
1,139
|
|
|
(108
|
)
|
||
Provision for deferred income taxes
|
|
(723
|
)
|
|
(33
|
)
|
||
Net cash provided by operating activities
|
|
4,281
|
|
|
5,007
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
||
Purchases of available-for-sale investment securities
|
|
(34,357
|
)
|
|
(45,842
|
)
|
||
Proceeds from sales or calls of available-for-sale investment securities
|
|
15,654
|
|
|
38,933
|
|
||
Proceeds from sales or calls of held-to-maturity investment securities
|
|
9,257
|
|
|
—
|
|
||
Proceeds from maturity and principal repayments of available-for-sale investment securities
|
|
12,384
|
|
|
12,161
|
|
||
Net increase in loans
|
|
(9,821
|
)
|
|
(4,424
|
)
|
||
Purchases of premises and equipment
|
|
(59
|
)
|
|
(178
|
)
|
||
Purchases of bank owned life insurance
|
|
—
|
|
|
(325
|
)
|
||
Net cash (used in) provided by investing activities
|
|
(6,942
|
)
|
|
325
|
|
||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
||
Net increase (decrease) in demand, interest bearing and savings deposits
|
|
(6,461
|
)
|
|
4,772
|
|
||
Net decrease in time deposits
|
|
(6,327
|
)
|
|
(2,061
|
)
|
||
Proceeds from exercise of stock options
|
|
143
|
|
|
—
|
|
||
Excess tax benefit from exercise of stock options
|
|
5
|
|
|
—
|
|
||
Cash dividend payments on common stock
|
|
(660
|
)
|
|
—
|
|
||
Net cash (used in) provided by financing activities
|
|
(13,300
|
)
|
|
2,711
|
|
||
(Decrease) increase in cash and cash equivalents
|
|
(15,961
|
)
|
|
8,043
|
|
||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
|
94,617
|
|
|
77,328
|
|
||
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
|
$
|
78,656
|
|
|
$
|
85,371
|
|
|
|
For the Quarter
Ended March 31, |
||||||
(In thousands)
|
|
2016
|
|
2015
|
||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION:
|
|
|
|
|
|
|
||
Cash paid during the period for
:
|
|
|
|
|
|
|
||
Interest
|
|
$
|
249
|
|
|
$
|
260
|
|
Income taxes
|
|
$
|
690
|
|
|
$
|
—
|
|
Non-cash investing and financing activities:
|
|
|
|
|
|
|
||
Foreclosure of loan collateral and recognition of other real estate owned
|
|
$
|
—
|
|
|
$
|
227
|
|
Assumption of other real estate owned liabilities
|
|
$
|
—
|
|
|
$
|
121
|
|
Transfer of securities from held-to-maturity to available-for-sale
|
|
$
|
23,131
|
|
|
$
|
—
|
|
Unrealized gain on transfer of securities from held-to-maturity to available-for-sale
|
|
$
|
526
|
|
|
$
|
—
|
|
Sale of available-for-sale investment securities, not yet settled
|
|
$
|
9,699
|
|
|
$
|
—
|
|
|
|
March 31, 2016
|
||||||||||||||||||
|
|
Carrying
Amount
|
|
Fair Value
|
||||||||||||||||
(In thousands)
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash and due from banks
|
|
$
|
22,525
|
|
|
$
|
22,525
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
22,525
|
|
Interest-earning deposits in other banks
|
|
55,824
|
|
|
55,824
|
|
|
—
|
|
|
—
|
|
|
55,824
|
|
|||||
Federal funds sold
|
|
307
|
|
|
307
|
|
|
—
|
|
|
—
|
|
|
307
|
|
|||||
Available-for-sale investment securities
|
|
501,978
|
|
|
7,648
|
|
|
494,330
|
|
|
—
|
|
|
501,978
|
|
|||||
Loans, net
|
|
598,864
|
|
|
—
|
|
|
—
|
|
|
594,624
|
|
|
594,624
|
|
|||||
Federal Home Loan Bank stock
|
|
4,823
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|||||
Accrued interest receivable
|
|
5,634
|
|
|
23
|
|
|
3,047
|
|
|
2,564
|
|
|
5,634
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deposits
|
|
1,103,479
|
|
|
971,439
|
|
|
134,236
|
|
|
—
|
|
|
1,105,675
|
|
|||||
Junior subordinated deferrable interest debentures
|
|
5,155
|
|
|
—
|
|
|
—
|
|
|
3,100
|
|
|
3,100
|
|
|||||
Accrued interest payable
|
|
102
|
|
|
—
|
|
|
73
|
|
|
29
|
|
|
102
|
|
|
|
December 31, 2015
|
||||||||||||||||||
|
|
Carrying
Amount
|
|
Fair Value
|
||||||||||||||||
(In thousands)
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks
|
|
$
|
23,339
|
|
|
$
|
23,339
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
23,339
|
|
Interest-earning deposits in other banks
|
|
70,988
|
|
|
70,988
|
|
|
—
|
|
|
—
|
|
|
70,988
|
|
|||||
Federal funds sold
|
|
290
|
|
|
290
|
|
|
—
|
|
|
—
|
|
|
290
|
|
|||||
Available-for-sale investment securities
|
|
477,554
|
|
|
7,536
|
|
|
470,018
|
|
|
—
|
|
|
477,554
|
|
|||||
Held-to-maturity investment securities
|
|
31,712
|
|
|
—
|
|
|
35,142
|
|
|
—
|
|
|
35,142
|
|
|||||
Loans, net
|
|
588,501
|
|
|
—
|
|
|
—
|
|
|
585,737
|
|
|
585,737
|
|
|||||
Federal Home Loan Bank stock
|
|
4,823
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|||||
Accrued interest receivable
|
|
6,355
|
|
|
27
|
|
|
3,414
|
|
|
2,914
|
|
|
6,355
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
|
1,116,267
|
|
|
976,433
|
|
|
139,353
|
|
|
—
|
|
|
1,115,786
|
|
|||||
Junior subordinated deferrable interest debentures
|
|
5,155
|
|
|
—
|
|
|
—
|
|
|
3,200
|
|
|
3,200
|
|
|||||
Accrued interest payable
|
|
101
|
|
|
—
|
|
|
76
|
|
|
25
|
|
|
101
|
|
Description
|
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Debt Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Government agencies
|
|
$
|
51,558
|
|
|
$
|
—
|
|
|
$
|
51,558
|
|
|
$
|
—
|
|
Obligations of states and political subdivisions
|
|
214,757
|
|
|
—
|
|
|
214,757
|
|
|
—
|
|
||||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations
|
|
224,641
|
|
|
—
|
|
|
224,641
|
|
|
—
|
|
||||
Private label residential mortgage backed securities
|
|
3,374
|
|
|
—
|
|
|
3,374
|
|
|
—
|
|
||||
Other equity securities
|
|
7,648
|
|
|
7,648
|
|
|
—
|
|
|
—
|
|
||||
Total assets measured at fair value on a recurring basis
|
|
$
|
501,978
|
|
|
$
|
7,648
|
|
|
$
|
494,330
|
|
|
$
|
—
|
|
Description
|
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Impaired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial and industrial
|
|
$
|
482
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
482
|
|
Total commercial
|
|
482
|
|
|
—
|
|
|
—
|
|
|
482
|
|
||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Equity loans and lines of credit
|
|
$
|
120
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
120
|
|
Total impaired loans
|
|
602
|
|
|
—
|
|
|
—
|
|
|
602
|
|
||||
Other real estate owned
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total assets measured at fair value on a non-recurring basis
|
|
$
|
602
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
602
|
|
Description
|
|
Fair Value
|
|
Valuation Technique(s)
|
|
Significant Unobservable Input(s)
|
|
Range (Weighted Average)
|
||
Commercial and industrial
|
|
$
|
482
|
|
|
Sales comparison
|
|
Appraiser adjustments on sales comparable data
|
|
0%-20%
|
|
|
|
|
Management estimates
|
|
Management adjustments for depreciation in values depending on property types
|
|
65%
|
||
Equity loans and lines of credit
|
|
$
|
120
|
|
|
Sales comparison
|
|
Appraiser adjustments on sales comparable data
|
|
3%-22%
|
|
|
|
|
Management estimates
|
|
Management adjustments for depreciation in values depending on property types
|
|
58%
|
Description
|
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Debt Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Government agencies
|
|
$
|
52,901
|
|
|
$
|
—
|
|
|
$
|
52,901
|
|
|
$
|
—
|
|
Obligations of states and political subdivisions
|
|
188,268
|
|
|
—
|
|
|
188,268
|
|
|
—
|
|
||||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations
|
|
225,259
|
|
|
—
|
|
|
225,259
|
|
|
—
|
|
||||
Private label residential mortgage backed securities
|
|
3,590
|
|
|
—
|
|
|
3,590
|
|
|
—
|
|
||||
Other equity securities
|
|
7,536
|
|
|
7,536
|
|
|
—
|
|
|
—
|
|
||||
Total assets measured at fair value on a recurring basis
|
|
$
|
477,554
|
|
|
$
|
7,536
|
|
|
$
|
470,018
|
|
|
$
|
—
|
|
Description
|
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Impaired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial and industrial
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Total commercial
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Equity loans and lines of credit
|
|
$
|
132
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
132
|
|
Total consumer
|
|
132
|
|
|
—
|
|
|
—
|
|
|
132
|
|
||||
Total impaired loans
|
|
132
|
|
|
—
|
|
|
—
|
|
|
132
|
|
||||
Total assets measured at fair value on a non-recurring basis
|
|
$
|
132
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
132
|
|
|
|
March 31, 2016
|
||||||||||||||
Available-for-Sale Securities
|
|
Amortized Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Estimated
Fair Value
|
||||||||
Debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Government agencies
|
|
$
|
51,194
|
|
|
$
|
499
|
|
|
$
|
(135
|
)
|
|
$
|
51,558
|
|
Obligations of states and political subdivisions
|
|
204,242
|
|
|
10,611
|
|
|
(96
|
)
|
|
214,757
|
|
||||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations
|
|
223,234
|
|
|
1,990
|
|
|
(583
|
)
|
|
224,641
|
|
||||
Private label residential mortgage backed securities
|
|
2,255
|
|
|
1,119
|
|
|
—
|
|
|
3,374
|
|
||||
Other equity securities
|
|
7,500
|
|
|
148
|
|
|
—
|
|
|
7,648
|
|
||||
Total available-for-sale
|
|
$
|
488,425
|
|
|
$
|
14,367
|
|
|
$
|
(814
|
)
|
|
$
|
501,978
|
|
|
|
December 31, 2015
|
||||||||||||||
Available-for-Sale Securities
|
|
Amortized Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Estimated
Fair Value
|
||||||||
Debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Government agencies
|
|
$
|
52,803
|
|
|
$
|
315
|
|
|
$
|
(217
|
)
|
|
$
|
52,901
|
|
Obligations of states and political subdivisions
|
|
181,785
|
|
|
6,779
|
|
|
(296
|
)
|
|
188,268
|
|
||||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations
|
|
225,636
|
|
|
1,042
|
|
|
(1,419
|
)
|
|
225,259
|
|
||||
Private label residential mortgage backed securities
|
|
2,356
|
|
|
1,234
|
|
|
—
|
|
|
3,590
|
|
||||
Other equity securities
|
|
7,500
|
|
|
36
|
|
|
—
|
|
|
7,536
|
|
||||
Total available-for-sale
|
|
$
|
470,080
|
|
|
$
|
9,406
|
|
|
$
|
(1,932
|
)
|
|
$
|
477,554
|
|
|
|
December 31, 2015
|
||||||||||||||
Held-to-Maturity Securities
|
|
Amortized Cost
|
|
Gross
Unrecognized
Gains
|
|
Gross
Unrecognized
Losses
|
|
Estimated
Fair Value
|
||||||||
Debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Obligations of states and political subdivisions
|
|
$
|
31,712
|
|
|
$
|
3,431
|
|
|
$
|
(1
|
)
|
|
$
|
35,142
|
|
|
|
For the Quarter
Ended March 31, |
||||||
Available-for-Sale Securities
|
|
2016
|
|
2015
|
||||
Proceeds from sales or calls
|
|
$
|
25,353
|
|
|
$
|
38,933
|
|
Gross realized gains from sales or calls
|
|
545
|
|
|
765
|
|
||
Gross realized losses from sales or calls
|
|
(111
|
)
|
|
(39
|
)
|
|
|
For the Quarter
Ended March 31, |
||||||
Held-to-Maturity Securities
|
|
2016
|
|
2015
|
||||
Proceeds from sales or calls
|
|
$
|
9,257
|
|
|
$
|
—
|
|
Gross realized gains from sales or calls
|
|
696
|
|
|
—
|
|
||
Gross realized losses from sales or calls
|
|
—
|
|
|
—
|
|
|
|
March 31, 2016
|
||||||||||||||||||||||
|
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||
|
|
Fair
|
|
Unrealized
|
|
Fair
|
|
Unrealized
|
|
Fair
|
|
Unrealized
|
||||||||||||
Available-for-Sale Securities
|
|
Value
|
|
Losses
|
|
Value
|
|
Losses
|
|
Value
|
|
Losses
|
||||||||||||
Debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. Government agencies
|
|
$
|
10,899
|
|
|
$
|
(56
|
)
|
|
$
|
3,785
|
|
|
$
|
(79
|
)
|
|
$
|
14,684
|
|
|
$
|
(135
|
)
|
Obligations of states and political subdivisions
|
|
9,791
|
|
|
(82
|
)
|
|
4,319
|
|
|
(14
|
)
|
|
14,110
|
|
|
(96
|
)
|
||||||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations
|
|
79,876
|
|
|
(366
|
)
|
|
12,531
|
|
|
(217
|
)
|
|
92,407
|
|
|
(583
|
)
|
||||||
Total available-for-sale
|
|
$
|
100,566
|
|
|
$
|
(504
|
)
|
|
$
|
20,635
|
|
|
$
|
(310
|
)
|
|
$
|
121,201
|
|
|
$
|
(814
|
)
|
|
|
December 31, 2015
|
||||||||||||||||||||||
|
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||
|
|
Fair
|
|
Unrealized
|
|
Fair
|
|
Unrealized
|
|
Fair
|
|
Unrealized
|
||||||||||||
Available-for-Sale Securities
|
|
Value
|
|
Losses
|
|
Value
|
|
Losses
|
|
Value
|
|
Losses
|
||||||||||||
Debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. Government agencies
|
|
$
|
21,348
|
|
|
$
|
(125
|
)
|
|
$
|
3,954
|
|
|
$
|
(92
|
)
|
|
$
|
25,302
|
|
|
$
|
(217
|
)
|
Obligations of states and political subdivisions
|
|
40,016
|
|
|
(296
|
)
|
|
—
|
|
|
—
|
|
|
40,016
|
|
|
(296
|
)
|
||||||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations
|
|
124,688
|
|
|
(1,109
|
)
|
|
16,234
|
|
|
(310
|
)
|
|
140,922
|
|
|
(1,419
|
)
|
||||||
Total available-for-sale
|
|
$
|
186,052
|
|
|
$
|
(1,530
|
)
|
|
$
|
20,188
|
|
|
$
|
(402
|
)
|
|
$
|
206,240
|
|
|
$
|
(1,932
|
)
|
|
|
December 31, 2015
|
||||||||||||||||||||||
|
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||
|
|
Fair
|
|
Unrecognized
|
|
Fair
|
|
Unrecognized
|
|
Fair
|
|
Unrecognized
|
||||||||||||
Held-to-Maturity Securities
|
|
Value
|
|
Losses
|
|
Value
|
|
Losses
|
|
Value
|
|
Losses
|
||||||||||||
Debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Obligations of states and political subdivisions
|
|
$
|
1,053
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,053
|
|
|
$
|
(1
|
)
|
|
|
For the Quarter
Ended March 31, |
||||||
(In thousands)
|
|
2016
|
|
2015
|
||||
Beginning balance
|
|
$
|
747
|
|
|
$
|
747
|
|
Amounts related to credit loss for which an OTTI charge was not previously recognized
|
|
136
|
|
|
—
|
|
||
Increases to the amount related to credit loss for which OTTI was previously recognized
|
|
—
|
|
|
—
|
|
||
Realized losses for securities sold
|
|
—
|
|
|
—
|
|
||
Ending balance
|
|
$
|
883
|
|
|
$
|
747
|
|
|
|
March 31, 2016
|
||||||
Available-for-Sale Securities
|
|
Amortized Cost
|
|
Estimated Fair
Value
|
||||
Within one year
|
|
$
|
—
|
|
|
$
|
—
|
|
After one year through five years
|
|
13,635
|
|
|
14,185
|
|
||
After five years through ten years
|
|
38,100
|
|
|
39,642
|
|
||
After ten years
|
|
152,507
|
|
|
160,930
|
|
||
|
|
204,242
|
|
|
214,757
|
|
||
Investment securities not due at a single maturity date:
|
|
|
|
|
|
|
||
U.S. Government agencies
|
|
51,194
|
|
|
51,558
|
|
||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations
|
|
223,234
|
|
|
224,641
|
|
||
Private label residential mortgage backed securities
|
|
2,255
|
|
|
3,374
|
|
||
Other equity securities
|
|
7,500
|
|
|
7,648
|
|
||
Total available-for-sale
|
|
$
|
488,425
|
|
|
$
|
501,978
|
|
Loan Type (Dollars in thousands)
|
|
March 31, 2016
|
|
% of Total
Loans
|
|
December 31, 2015
|
|
% of Total
Loans
|
||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Commercial and industrial
|
|
$
|
98,996
|
|
|
16.3
|
%
|
|
$
|
102,197
|
|
|
17.1
|
%
|
Agricultural land and production
|
|
23,736
|
|
|
3.9
|
%
|
|
30,472
|
|
|
5.1
|
%
|
||
Total commercial
|
|
122,732
|
|
|
20.2
|
%
|
|
132,669
|
|
|
22.2
|
%
|
||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Owner occupied
|
|
168,671
|
|
|
27.8
|
%
|
|
168,910
|
|
|
28.2
|
%
|
||
Real estate construction and other land loans
|
|
42,165
|
|
|
6.9
|
%
|
|
38,685
|
|
|
6.5
|
%
|
||
Commercial real estate
|
|
118,611
|
|
|
19.5
|
%
|
|
117,244
|
|
|
19.6
|
%
|
||
Agricultural real estate
|
|
87,354
|
|
|
14.3
|
%
|
|
74,867
|
|
|
12.5
|
%
|
||
Other real estate
|
|
10,593
|
|
|
1.7
|
%
|
|
10,520
|
|
|
1.8
|
%
|
||
Total real estate
|
|
427,394
|
|
|
70.2
|
%
|
|
410,226
|
|
|
68.6
|
%
|
||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Equity loans and lines of credit
|
|
42,103
|
|
|
7.0
|
%
|
|
42,296
|
|
|
7.1
|
%
|
||
Consumer and installment
|
|
16,062
|
|
|
2.6
|
%
|
|
12,503
|
|
|
2.1
|
%
|
||
Total consumer
|
|
58,165
|
|
|
9.6
|
%
|
|
54,799
|
|
|
9.2
|
%
|
||
Net deferred origination costs
|
|
709
|
|
|
|
|
|
417
|
|
|
|
|
||
Total gross loans
|
|
609,000
|
|
|
100.0
|
%
|
|
598,111
|
|
|
100.0
|
%
|
||
Allowance for credit losses
|
|
(10,136
|
)
|
|
|
|
|
(9,610
|
)
|
|
|
|
||
Total loans
|
|
$
|
598,864
|
|
|
|
|
|
$
|
588,501
|
|
|
|
|
|
|
Commercial
|
|
Real Estate
|
|
Consumer
|
|
Unallocated
|
|
Total
|
||||||||||
Allowance for credit losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Beginning balance, January 1, 2016
|
|
$
|
3,562
|
|
|
$
|
5,204
|
|
|
$
|
734
|
|
|
$
|
110
|
|
|
$
|
9,610
|
|
(Reversal) Provision charged to operations
|
|
(152
|
)
|
|
(340
|
)
|
|
134
|
|
|
108
|
|
|
(250
|
)
|
|||||
Losses charged to allowance
|
|
(4
|
)
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
(13
|
)
|
|||||
Recoveries
|
|
337
|
|
|
417
|
|
|
35
|
|
|
—
|
|
|
789
|
|
|||||
Ending balance, March 31, 2016
|
|
$
|
3,743
|
|
|
$
|
5,281
|
|
|
$
|
894
|
|
|
$
|
218
|
|
|
$
|
10,136
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for credit losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Beginning balance, January 1, 2015
|
|
$
|
3,130
|
|
|
$
|
4,058
|
|
|
$
|
1,078
|
|
|
$
|
42
|
|
|
$
|
8,308
|
|
(Reversal) Provision charged to operations
|
|
308
|
|
|
391
|
|
|
(705
|
)
|
|
6
|
|
|
—
|
|
|||||
Losses charged to allowance
|
|
(410
|
)
|
|
—
|
|
|
(31
|
)
|
|
—
|
|
|
(441
|
)
|
|||||
Recoveries
|
|
101
|
|
|
8
|
|
|
423
|
|
|
—
|
|
|
532
|
|
|||||
Ending balance, March 31, 2015
|
|
$
|
3,129
|
|
|
$
|
4,457
|
|
|
$
|
765
|
|
|
$
|
48
|
|
|
$
|
8,399
|
|
|
|
|
Commercial
|
|
Real Estate
|
|
Consumer
|
|
Unallocated
|
|
Total
|
||||||||||
Allowance for credit losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Ending balance, March 31, 2016
|
|
$
|
3,743
|
|
|
$
|
5,281
|
|
|
$
|
894
|
|
|
$
|
218
|
|
|
$
|
10,136
|
|
Ending balance: individually evaluated for impairment
|
|
$
|
565
|
|
|
$
|
124
|
|
|
$
|
106
|
|
|
$
|
—
|
|
|
$
|
795
|
|
Ending balance: collectively evaluated for impairment
|
|
$
|
3,178
|
|
|
$
|
5,157
|
|
|
$
|
788
|
|
|
$
|
218
|
|
|
$
|
9,341
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ending balance, December 31, 2015
|
|
$
|
3,562
|
|
|
$
|
5,204
|
|
|
$
|
734
|
|
|
$
|
110
|
|
|
$
|
9,610
|
|
Ending balance: individually evaluated for impairment
|
|
$
|
1
|
|
|
$
|
128
|
|
|
$
|
35
|
|
|
$
|
—
|
|
|
$
|
164
|
|
Ending balance: collectively evaluated for impairment
|
|
$
|
3,561
|
|
|
$
|
5,076
|
|
|
$
|
699
|
|
|
$
|
110
|
|
|
$
|
9,446
|
|
|
|
Commercial
|
|
Real Estate
|
|
Consumer
|
|
Total
|
||||||||
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Ending balance, March 31, 2016
|
|
$
|
122,732
|
|
|
$
|
427,394
|
|
|
$
|
58,165
|
|
|
$
|
608,291
|
|
Ending balance: individually evaluated for impairment
|
|
$
|
1,159
|
|
|
$
|
5,278
|
|
|
$
|
1,500
|
|
|
$
|
7,937
|
|
Ending balance: collectively evaluated for impairment
|
|
$
|
121,573
|
|
|
$
|
422,116
|
|
|
$
|
56,665
|
|
|
$
|
600,354
|
|
|
|
|
|
|
|
|
|
|
||||||||
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Ending balance, December 31, 2015
|
|
$
|
132,669
|
|
|
$
|
410,226
|
|
|
$
|
54,799
|
|
|
$
|
597,694
|
|
Ending balance: individually evaluated for impairment
|
|
$
|
30
|
|
|
$
|
5,199
|
|
|
$
|
1,470
|
|
|
$
|
6,699
|
|
Ending balance: collectively evaluated for impairment
|
|
$
|
132,639
|
|
|
$
|
405,027
|
|
|
$
|
53,329
|
|
|
$
|
590,995
|
|
|
|
Pass
|
|
Special Mention
|
|
Sub-Standard
|
|
Doubtful
|
|
Total
|
||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
|
$
|
82,223
|
|
|
$
|
9,609
|
|
|
$
|
7,164
|
|
|
$
|
—
|
|
|
$
|
98,996
|
|
Agricultural land and production
|
|
20,368
|
|
|
1,900
|
|
|
1,468
|
|
|
—
|
|
|
23,736
|
|
|||||
Real Estate:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Owner occupied
|
|
162,727
|
|
|
4,007
|
|
|
1,937
|
|
|
—
|
|
|
168,671
|
|
|||||
Real estate construction and other land loans
|
|
39,101
|
|
|
—
|
|
|
3,064
|
|
|
—
|
|
|
42,165
|
|
|||||
Commercial real estate
|
|
114,613
|
|
|
1,668
|
|
|
2,330
|
|
|
—
|
|
|
118,611
|
|
|||||
Agricultural real estate
|
|
61,697
|
|
|
3,900
|
|
|
21,757
|
|
|
—
|
|
|
87,354
|
|
|||||
Other real estate
|
|
10,593
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,593
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity loans and lines of credit
|
|
39,961
|
|
|
—
|
|
|
2,142
|
|
|
—
|
|
|
42,103
|
|
|||||
Consumer and installment
|
|
16,052
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
16,062
|
|
|||||
Total
|
|
$
|
547,335
|
|
|
$
|
21,084
|
|
|
$
|
39,872
|
|
|
$
|
—
|
|
|
$
|
608,291
|
|
|
|
Pass
|
|
Special Mention
|
|
Sub-Standard
|
|
Doubtful
|
|
Total
|
||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
|
$
|
77,783
|
|
|
$
|
22,607
|
|
|
$
|
1,807
|
|
|
$
|
—
|
|
|
$
|
102,197
|
|
Agricultural land and production
|
|
20,422
|
|
|
—
|
|
|
10,050
|
|
|
—
|
|
|
30,472
|
|
|||||
Real Estate:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Owner occupied
|
|
163,570
|
|
|
3,785
|
|
|
1,555
|
|
|
—
|
|
|
168,910
|
|
|||||
Real estate construction and other land loans
|
|
34,916
|
|
|
644
|
|
|
3,125
|
|
|
—
|
|
|
38,685
|
|
|||||
Commercial real estate
|
|
110,833
|
|
|
1,683
|
|
|
4,728
|
|
|
—
|
|
|
117,244
|
|
|||||
Agricultural real estate
|
|
66,347
|
|
|
—
|
|
|
8,520
|
|
|
—
|
|
|
74,867
|
|
|||||
Other real estate
|
|
10,520
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,520
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity loans and lines of credit
|
|
40,332
|
|
|
—
|
|
|
1,964
|
|
|
—
|
|
|
42,296
|
|
|||||
Consumer and installment
|
|
12,488
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
12,503
|
|
|||||
Total
|
|
$
|
537,211
|
|
|
$
|
28,719
|
|
|
$
|
31,764
|
|
|
$
|
—
|
|
|
$
|
597,694
|
|
|
|
30-59 Days
Past Due
|
|
60-89
Days Past
Due
|
|
Greater
Than
90 Days
Past Due
|
|
Total Past
Due
|
|
Current
|
|
Total
Loans
|
|
Recorded
Investment
> 90 Days
Accruing
|
|
Non-accrual
|
||||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial and industrial
|
|
$
|
897
|
|
|
$
|
149
|
|
|
$
|
—
|
|
|
$
|
1,046
|
|
|
$
|
97,950
|
|
|
$
|
98,996
|
|
|
$
|
—
|
|
|
$
|
1,114
|
|
Agricultural land and production
|
|
48
|
|
|
—
|
|
|
—
|
|
|
48
|
|
|
23,688
|
|
|
23,736
|
|
|
—
|
|
|
—
|
|
||||||||
Real estate:
|
|
—
|
|
|
|
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|||||||||
Owner occupied
|
|
287
|
|
|
—
|
|
|
170
|
|
|
457
|
|
|
168,214
|
|
|
168,671
|
|
|
—
|
|
|
506
|
|
||||||||
Real estate construction and other land loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
42,165
|
|
|
42,165
|
|
|
—
|
|
|
—
|
|
||||||||
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
118,611
|
|
|
118,611
|
|
|
—
|
|
|
558
|
|
||||||||
Agricultural real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
87,354
|
|
|
87,354
|
|
|
—
|
|
|
—
|
|
||||||||
Other real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,593
|
|
|
10,593
|
|
|
—
|
|
|
—
|
|
||||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|||||||||
Equity loans and lines of credit
|
|
280
|
|
|
—
|
|
|
167
|
|
|
447
|
|
|
41,656
|
|
|
42,103
|
|
|
—
|
|
|
1,490
|
|
||||||||
Consumer and installment
|
|
17
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
16,045
|
|
|
16,062
|
|
|
—
|
|
|
11
|
|
||||||||
Total
|
|
$
|
1,529
|
|
|
$
|
149
|
|
|
$
|
337
|
|
|
$
|
2,015
|
|
|
$
|
606,276
|
|
|
$
|
608,291
|
|
|
$
|
—
|
|
|
$
|
3,679
|
|
|
|
30-59 Days
Past Due
|
|
60-89
Days Past
Due
|
|
Greater
Than
90 Days
Past Due
|
|
Total Past
Due
|
|
Current
|
|
Total
Loans
|
|
Recorded
Investment
> 90 Days
Accruing
|
|
Non-
accrual
|
||||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial and industrial
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
102,197
|
|
|
$
|
102,197
|
|
|
$
|
—
|
|
|
$
|
29
|
|
Agricultural land and production
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30,472
|
|
|
30,472
|
|
|
—
|
|
|
—
|
|
||||||||
Real estate:
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Owner occupied
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
168,910
|
|
|
168,910
|
|
|
—
|
|
|
347
|
|
||||||||
Real estate construction and other land loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38,685
|
|
|
38,685
|
|
|
—
|
|
|
—
|
|
||||||||
Commercial real estate
|
|
98
|
|
|
—
|
|
|
—
|
|
|
98
|
|
|
117,146
|
|
|
117,244
|
|
|
—
|
|
|
567
|
|
||||||||
Agricultural real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
74,867
|
|
|
74,867
|
|
|
—
|
|
|
—
|
|
||||||||
Other real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,520
|
|
|
10,520
|
|
|
—
|
|
|
—
|
|
||||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Equity loans and lines of credit
|
|
—
|
|
|
166
|
|
|
—
|
|
|
166
|
|
|
42,130
|
|
|
42,296
|
|
|
—
|
|
|
1,457
|
|
||||||||
Consumer and installment
|
|
38
|
|
|
—
|
|
|
—
|
|
|
38
|
|
|
12,465
|
|
|
12,503
|
|
|
—
|
|
|
13
|
|
||||||||
Total
|
|
$
|
136
|
|
|
$
|
166
|
|
|
$
|
—
|
|
|
$
|
302
|
|
|
$
|
597,392
|
|
|
$
|
597,694
|
|
|
$
|
—
|
|
|
$
|
2,413
|
|
|
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
|
||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|||
Commercial:
|
|
|
|
|
|
|
|
|
|
|||
Commercial and industrial
|
|
$
|
59
|
|
|
$
|
63
|
|
|
$
|
—
|
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|||
Owner occupied
|
|
331
|
|
|
415
|
|
|
—
|
|
|||
Real estate construction and other land loans
|
|
3,064
|
|
|
3,064
|
|
|
—
|
|
|||
Commercial real estate
|
|
1,149
|
|
|
1,289
|
|
|
—
|
|
|||
Total real estate
|
|
4,544
|
|
|
4,768
|
|
|
—
|
|
|||
Consumer:
|
|
|
|
|
|
|
|
|
|
|||
Equity loans and lines of credit
|
|
1,264
|
|
|
1,990
|
|
|
—
|
|
|||
Consumer and installment
|
|
10
|
|
|
13
|
|
|
—
|
|
|||
Total consumer
|
|
1,274
|
|
|
2,003
|
|
|
—
|
|
|||
Total with no related allowance recorded
|
|
5,877
|
|
|
6,834
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|||
Commercial:
|
|
|
|
|
|
|
|
|
|
|||
Commercial and industrial
|
|
1,100
|
|
|
1,102
|
|
|
565
|
|
|||
Real estate:
|
|
|
|
|
|
|
|
|
|
|||
Owner occupied
|
|
175
|
|
|
210
|
|
|
15
|
|
|||
Commercial real estate
|
|
559
|
|
|
584
|
|
|
109
|
|
|||
Total real estate
|
|
734
|
|
|
794
|
|
|
124
|
|
|||
Consumer:
|
|
|
|
|
|
|
|
|
|
|||
Equity loans and lines of credit
|
|
226
|
|
|
240
|
|
|
106
|
|
|||
Total with an allowance recorded
|
|
2,060
|
|
|
2,136
|
|
|
795
|
|
|||
Total
|
|
$
|
7,937
|
|
|
$
|
8,970
|
|
|
$
|
795
|
|
|
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
|
||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|||
Commercial:
|
|
|
|
|
|
|
|
|
|
|||
Commercial and industrial
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
—
|
|
Total commercial
|
|
—
|
|
|
1
|
|
|
—
|
|
|||
Real estate:
|
|
|
|
|
|
|
|
|
|
|||
Owner occupied
|
|
166
|
|
|
245
|
|
|
—
|
|
|||
Real estate construction and other land loans
|
|
3,125
|
|
|
3,125
|
|
|
—
|
|
|||
Commercial real estate
|
|
1,162
|
|
|
1,302
|
|
|
—
|
|
|||
Total real estate
|
|
4,453
|
|
|
4,672
|
|
|
—
|
|
|||
Consumer:
|
|
|
|
|
|
|
|
|
|
|||
Equity loans and lines of credit
|
|
1,291
|
|
|
1,991
|
|
|
—
|
|
|||
Total with no related allowance recorded
|
|
5,744
|
|
|
6,664
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|||
Commercial:
|
|
|
|
|
|
|
|
|
|
|||
Commercial and industrial
|
|
30
|
|
|
33
|
|
|
1
|
|
|||
Real estate:
|
|
|
|
|
|
|
|
|
|
|||
Owner occupied
|
|
180
|
|
|
212
|
|
|
18
|
|
|||
Commercial real estate
|
|
566
|
|
|
588
|
|
|
110
|
|
|||
Total real estate
|
|
746
|
|
|
800
|
|
|
128
|
|
|||
Consumer:
|
|
|
|
|
|
|
|
|
|
|||
Equity loans and lines of credit
|
|
166
|
|
|
179
|
|
|
33
|
|
|||
Consumer and installment
|
|
13
|
|
|
15
|
|
|
2
|
|
|||
Total consumer
|
|
179
|
|
|
194
|
|
|
35
|
|
|||
Total with an allowance recorded
|
|
955
|
|
|
1,027
|
|
|
164
|
|
|||
Total
|
|
$
|
6,699
|
|
|
$
|
7,691
|
|
|
$
|
164
|
|
|
|
Three Months Ended March 31, 2016
|
|
Three Months Ended March 31, 2015
|
||||||||||||
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial and industrial
|
|
$
|
243
|
|
|
$
|
—
|
|
|
$
|
6,191
|
|
|
$
|
—
|
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Owner occupied
|
|
291
|
|
|
54
|
|
|
1,184
|
|
|
—
|
|
||||
Real estate construction and other land loans
|
|
3,094
|
|
|
19
|
|
|
557
|
|
|
60
|
|
||||
Commercial real estate
|
|
1,156
|
|
|
—
|
|
|
1,965
|
|
|
—
|
|
||||
Agricultural real estate
|
|
—
|
|
|
—
|
|
|
360
|
|
|
—
|
|
||||
Total real estate
|
|
4,541
|
|
|
73
|
|
|
4,066
|
|
|
60
|
|
||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Equity loans and lines of credit
|
|
1,278
|
|
|
—
|
|
|
2,315
|
|
|
—
|
|
||||
Consumer and installment
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total consumer
|
|
1,281
|
|
|
—
|
|
|
2,315
|
|
|
—
|
|
||||
Total with no related allowance recorded
|
|
6,065
|
|
|
73
|
|
|
12,572
|
|
|
60
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial and industrial
|
|
360
|
|
|
1
|
|
|
668
|
|
|
—
|
|
||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Owner occupied
|
|
178
|
|
|
—
|
|
|
198
|
|
|
—
|
|
||||
Real estate construction and other land loans
|
|
—
|
|
|
—
|
|
|
3,436
|
|
|
—
|
|
||||
Commercial real estate
|
|
564
|
|
|
—
|
|
|
992
|
|
|
19
|
|
||||
Total real estate
|
|
742
|
|
|
—
|
|
|
4,626
|
|
|
19
|
|
||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Equity loans and lines of credit
|
|
196
|
|
|
—
|
|
|
605
|
|
|
—
|
|
||||
Consumer and installment
|
|
8
|
|
|
—
|
|
|
19
|
|
|
—
|
|
||||
Total consumer
|
|
204
|
|
|
—
|
|
|
624
|
|
|
—
|
|
||||
Total with an allowance recorded
|
|
1,306
|
|
|
1
|
|
|
5,918
|
|
|
19
|
|
||||
Total
|
|
$
|
7,371
|
|
|
$
|
74
|
|
|
$
|
18,490
|
|
|
$
|
79
|
|
|
Troubled Debt Restructurings:
|
|
Number of Loans
|
|
Pre-Modification Outstanding Recorded Investment (1)
|
|
Principal Modification (2)
|
|
Post Modification Outstanding Recorded Investment (3)
|
|
Outstanding Recorded Investment
|
|||||||||
Commercial and Industrial
|
|
2
|
|
|
$
|
45
|
|
|
$
|
—
|
|
|
$
|
45
|
|
|
$
|
45
|
|
(1)
|
Amounts represent the recorded investment in loans before recognizing effects of the TDR, if any.
|
(2)
|
Principal Modification includes principal forgiveness at the time of modification, contingent principal forgiveness granted over the life of the loan based on borrower performance, and principal that has been legally separated and deferred to the end of the loan, with zero percent contractual interest rate.
|
(3)
|
Balance outstanding after principal modification, if any borrower reduction to recorded investment.
|
Troubled Debt Restructurings:
|
|
Number of Loans
|
|
Pre-Modification Outstanding Recorded Investment (1)
|
|
Principal Modification (2)
|
|
Post Modification Outstanding Recorded Investment (3)
|
|
Outstanding Recorded Investment
|
|||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial and Industrial
|
|
2
|
|
|
$
|
42
|
|
|
$
|
—
|
|
|
$
|
42
|
|
|
$
|
42
|
|
|
Basic Earnings Per Share
|
|
For the Quarter
Ended March 31, |
||||||
(In thousands, except share and per share amounts)
|
|
2016
|
|
2015
|
||||
Net income available to common shareholders
|
|
$
|
3,403
|
|
|
$
|
2,466
|
|
Weighted average shares outstanding
|
|
10,953,845
|
|
|
10,923,590
|
|
||
Basic earnings per share
|
|
$
|
0.31
|
|
|
$
|
0.23
|
|
Diluted Earnings Per Share
|
|
For the Quarter
Ended March 31, |
||||||
(In thousands, except share and per share amounts)
|
|
2016
|
|
2015
|
||||
Net income available to common shareholders
|
|
$
|
3,403
|
|
|
$
|
2,466
|
|
Weighted average shares outstanding
|
|
10,953,845
|
|
|
10,923,590
|
|
||
Effect of dilutive stock options
|
|
86,945
|
|
|
79,386
|
|
||
Weighted average shares of common stock and common stock equivalents
|
|
11,040,790
|
|
|
11,002,976
|
|
||
Diluted earnings per share
|
|
$
|
0.31
|
|
|
$
|
0.22
|
|
|
|
Shares
|
|
Weighted
Average
Exercise Price
|
|
Weighted
Average
Remaining
Contractual
Term (Years)
|
|
Aggregate
Intrinsic Value (In thousands)
|
|||||
Options outstanding at January 1, 2016
|
|
240,695
|
|
|
$
|
6.83
|
|
|
|
|
|
|
|
Options exercised
|
|
(21,590
|
)
|
|
$
|
6.64
|
|
|
|
|
|
|
|
Options forfeited
|
|
(1,260
|
)
|
|
$
|
8.02
|
|
|
|
|
|
|
|
Options outstanding at March 31, 2016
|
|
217,845
|
|
|
$
|
6.84
|
|
|
4.05
|
|
$
|
934
|
|
Options vested or expected to vest at March 31, 2016
|
|
216,023
|
|
|
$
|
6.83
|
|
|
4.03
|
|
$
|
928
|
|
Options exercisable at March 31, 2016
|
|
186,785
|
|
|
$
|
6.65
|
|
|
3.64
|
|
$
|
838
|
|
|
|
For the Quarter
Ended March 31, |
||||||
|
|
2016
|
|
2015
|
||||
Intrinsic value of options exercised
|
|
$
|
114
|
|
|
$
|
—
|
|
Cash received from options exercised
|
|
$
|
143
|
|
|
$
|
—
|
|
Excess tax benefit realized for option exercises
|
|
$
|
5
|
|
|
$
|
—
|
|
|
|
Shares
|
|
Weighted
Average
Grant Date Fair Value
|
|||
Nonvested outstanding shares at January 1, 2016
|
|
53,028
|
|
|
$
|
12.34
|
|
Granted
|
|
8,850
|
|
|
$
|
11.30
|
|
Vested
|
|
(3,635
|
)
|
|
$
|
11.01
|
|
Forfeited
|
|
(984
|
)
|
|
$
|
12.95
|
|
Nonvested outstanding shares at March 31, 2016
|
|
57,259
|
|
|
$
|
12.25
|
|
|
|
For the Three Months Ended March 31, 2016
|
|
For the Three Months Ended March 31, 2015
|
||||||||||||||||||
(Dollars in thousands)
|
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Average
Interest
Rate
|
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Average
Interest
Rate
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest-earning deposits in other banks
|
|
$
|
56,845
|
|
|
$
|
74
|
|
|
0.51
|
%
|
|
$
|
61,369
|
|
|
$
|
46
|
|
|
0.30
|
%
|
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Taxable securities
|
|
322,252
|
|
|
1,523
|
|
|
1.89
|
%
|
|
277,348
|
|
|
1,107
|
|
|
1.60
|
%
|
||||
Non-taxable securities (1)
|
|
180,149
|
|
|
2,308
|
|
|
5.12
|
%
|
|
174,877
|
|
|
2,330
|
|
|
5.33
|
%
|
||||
Total investment securities
|
|
502,401
|
|
|
3,831
|
|
|
3.05
|
%
|
|
452,225
|
|
|
3,437
|
|
|
3.04
|
%
|
||||
Federal funds sold
|
|
298
|
|
|
—
|
|
|
0.50
|
%
|
|
280
|
|
|
—
|
|
|
0.25
|
%
|
||||
Total securities and interest-earning deposits
|
|
559,544
|
|
|
3,905
|
|
|
2.79
|
%
|
|
513,874
|
|
|
3,483
|
|
|
2.71
|
%
|
||||
Loans (2) (3)
|
|
592,159
|
|
|
7,733
|
|
|
5.25
|
%
|
|
554,247
|
|
|
7,286
|
|
|
5.33
|
%
|
||||
Federal Home Loan Bank stock
|
|
4,823
|
|
|
97
|
|
|
8.09
|
%
|
|
4,791
|
|
|
86
|
|
|
7.18
|
%
|
||||
Total interest-earning assets
|
|
1,156,526
|
|
|
$
|
11,735
|
|
|
4.06
|
%
|
|
1,072,912
|
|
|
$
|
10,855
|
|
|
4.05
|
%
|
||
Allowance for credit losses
|
|
(9,892
|
)
|
|
|
|
|
|
|
|
(8,947
|
)
|
|
|
|
|
|
|
||||
Nonaccrual loans
|
|
3,317
|
|
|
|
|
|
|
|
|
13,779
|
|
|
|
|
|
|
|
||||
Other real estate owned
|
|
—
|
|
|
|
|
|
|
|
|
131
|
|
|
|
|
|
|
|
||||
Cash and due from banks
|
|
24,758
|
|
|
|
|
|
|
|
|
25,736
|
|
|
|
|
|
|
|
||||
Bank premises and equipment
|
|
9,193
|
|
|
|
|
|
|
|
|
9,930
|
|
|
|
|
|
|
|
||||
Other non-earning assets
|
|
79,660
|
|
|
|
|
|
|
|
|
78,979
|
|
|
|
|
|
|
|
||||
Total average assets
|
|
$
|
1,263,562
|
|
|
|
|
|
|
|
|
$
|
1,192,520
|
|
|
|
|
|
|
|
||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Savings and NOW accounts
|
|
$
|
313,775
|
|
|
$
|
65
|
|
|
0.08
|
%
|
|
$
|
294,301
|
|
|
$
|
59
|
|
|
0.08
|
%
|
Money market accounts
|
|
234,757
|
|
|
31
|
|
|
0.05
|
%
|
|
219,975
|
|
|
35
|
|
|
0.06
|
%
|
||||
Time certificates of deposit, under $100,000
|
|
46,733
|
|
|
38
|
|
|
0.33
|
%
|
|
50,431
|
|
|
43
|
|
|
0.35
|
%
|
||||
Time certificates of deposit, $100,000 and over
|
|
90,463
|
|
|
87
|
|
|
0.39
|
%
|
|
100,967
|
|
|
96
|
|
|
0.39
|
%
|
||||
Total interest-bearing deposits
|
|
685,728
|
|
|
221
|
|
|
0.13
|
%
|
|
665,674
|
|
|
233
|
|
|
0.14
|
%
|
||||
Other borrowed funds
|
|
5,155
|
|
|
29
|
|
|
2.23
|
%
|
|
5,159
|
|
|
24
|
|
|
1.85
|
%
|
||||
Total interest-bearing liabilities
|
|
690,883
|
|
|
$
|
250
|
|
|
0.15
|
%
|
|
670,833
|
|
|
$
|
257
|
|
|
0.16
|
%
|
||
Non-interest bearing demand deposits
|
|
412,867
|
|
|
|
|
|
|
|
|
372,570
|
|
|
|
|
|
|
|
||||
Other liabilities
|
|
16,063
|
|
|
|
|
|
|
|
|
16,037
|
|
|
|
|
|
|
|
||||
Shareholders’ equity
|
|
143,749
|
|
|
|
|
|
|
|
|
133,080
|
|
|
|
|
|
|
|
||||
Total average liabilities and shareholders’ equity
|
|
$
|
1,263,562
|
|
|
|
|
|
|
|
|
$
|
1,192,520
|
|
|
|
|
|
|
|
||
Interest income and rate earned on average earning assets
|
|
|
|
|
$
|
11,735
|
|
|
4.06
|
%
|
|
|
|
|
$
|
10,855
|
|
|
4.05
|
%
|
||
Interest expense and interest cost related to average interest-bearing liabilities
|
|
|
|
|
250
|
|
|
0.15
|
%
|
|
|
|
|
257
|
|
|
0.16
|
%
|
||||
Net interest income and net interest margin (4)
|
|
|
|
|
$
|
11,485
|
|
|
3.97
|
%
|
|
|
|
|
$
|
10,598
|
|
|
3.95
|
%
|
(1)
|
Calculated on a fully tax equivalent basis, which includes Federal tax benefits relating to income earned on municipal bonds totaling
$784
and
$792
in
2016
and
2015
, respectively.
|
(2)
|
Loan interest income includes loan fees of $
39
in
2016
and $
79
in
2015
|
(3)
|
Average loans do not include nonaccrual loans but do include interest income recovered from previously charged off loans.
|
(4)
|
Net interest margin is computed by dividing net interest income by total average interest-earning assets.
|
Changes in Volume/Rate
|
|
For the Three Months Ended March 31, 2016 and 2015
|
||||||||||
(In thousands)
|
|
Volume
|
|
Rate
|
|
Net
|
||||||
Increase (decrease) due to changes in:
|
|
|
|
|
|
|
|
|
|
|||
Interest income:
|
|
|
|
|
|
|
|
|
|
|||
Interest-earning deposits in other banks
|
|
$
|
(3
|
)
|
|
$
|
31
|
|
|
$
|
28
|
|
Investment securities:
|
|
|
|
|
|
|
||||||
Taxable
|
|
178
|
|
|
238
|
|
|
416
|
|
|||
Non-taxable (1)
|
|
71
|
|
|
(93
|
)
|
|
(22
|
)
|
|||
Total investment securities
|
|
249
|
|
|
145
|
|
|
394
|
|
|||
Federal funds sold
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Loans
|
|
498
|
|
|
(51
|
)
|
|
447
|
|
|||
FHLB Stock
|
|
—
|
|
|
11
|
|
|
11
|
|
|||
Total earning assets (1)
|
|
744
|
|
|
136
|
|
|
880
|
|
|||
Interest expense:
|
|
|
|
|
|
|
|
|
|
|||
Deposits:
|
|
|
|
|
|
|
|
|
|
|||
Savings, NOW and MMA
|
|
7
|
|
|
(5
|
)
|
|
2
|
|
|||
Certificates of deposit under $100,000
|
|
(4
|
)
|
|
(1
|
)
|
|
(5
|
)
|
|||
Certificates of deposit $100,000 and over
|
|
(9
|
)
|
|
—
|
|
|
(9
|
)
|
|||
Total interest-bearing deposits
|
|
(6
|
)
|
|
(6
|
)
|
|
(12
|
)
|
|||
Other borrowed funds
|
|
—
|
|
|
5
|
|
|
5
|
|
|||
Total interest bearing liabilities
|
|
(6
|
)
|
|
(1
|
)
|
|
(7
|
)
|
|||
Net interest income (1)
|
|
$
|
750
|
|
|
$
|
137
|
|
|
$
|
887
|
|
Loan Type (dollars in thousands)
|
|
March 31, 2016
|
|
December 31, 2015
|
||||
Commercial:
|
|
|
|
|
||||
Commercial and industrial
|
|
$
|
3,429
|
|
|
$
|
3,143
|
|
Agricultural land and production
|
|
314
|
|
|
419
|
|
||
Total commercial
|
|
3,743
|
|
|
3,562
|
|
||
Real estate:
|
|
|
|
|
||||
Owner occupied
|
|
1,475
|
|
|
1,556
|
|
||
Real estate construction and other land loans
|
|
709
|
|
|
694
|
|
||
Commercial real estate
|
|
1,661
|
|
|
1,686
|
|
||
Agricultural real estate
|
|
1,322
|
|
|
1,149
|
|
||
Other real estate
|
|
114
|
|
|
119
|
|
||
Total real estate
|
|
5,281
|
|
|
5,204
|
|
||
Consumer:
|
|
|
|
|
||||
Equity loans and lines of credit
|
|
590
|
|
|
500
|
|
||
Consumer and installment
|
|
304
|
|
|
234
|
|
||
Total consumer
|
|
894
|
|
|
734
|
|
||
Unallocated reserves
|
|
218
|
|
|
110
|
|
||
Total allowance for credit losses
|
|
$
|
10,136
|
|
|
$
|
9,610
|
|
|
|
For the Quarter
Ended March 31, |
||||||||||||
|
|
2016
|
|
2015
|
||||||||||
(Dollars in thousands)
|
|
Other Expense
|
|
% Average
Assets
|
|
Other Expense
|
|
% Average
Assets
|
||||||
Stationery/supplies
|
|
$
|
66
|
|
|
0.02
|
%
|
|
$
|
71
|
|
|
0.02
|
%
|
Amortization of software
|
|
64
|
|
|
0.02
|
%
|
|
50
|
|
|
0.02
|
%
|
||
Postage
|
|
53
|
|
|
0.02
|
%
|
|
54
|
|
|
0.02
|
%
|
||
Risk management expense
|
|
34
|
|
|
0.01
|
%
|
|
39
|
|
|
0.01
|
%
|
||
Personnel other
|
|
88
|
|
|
0.03
|
%
|
|
57
|
|
|
0.02
|
%
|
||
Armored courier fees
|
|
56
|
|
|
0.02
|
%
|
|
54
|
|
|
0.02
|
%
|
||
Credit card expense
|
|
32
|
|
|
0.01
|
%
|
|
44
|
|
|
0.01
|
%
|
||
Telephone
|
|
105
|
|
|
0.03
|
%
|
|
64
|
|
|
0.02
|
%
|
||
Donations
|
|
49
|
|
|
0.02
|
%
|
|
63
|
|
|
0.02
|
%
|
||
Appraisal fees
|
|
17
|
|
|
0.01
|
%
|
|
29
|
|
|
0.01
|
%
|
||
Education/training
|
|
32
|
|
|
0.01
|
%
|
|
32
|
|
|
0.01
|
%
|
||
General insurance
|
|
37
|
|
|
0.01
|
%
|
|
37
|
|
|
0.01
|
%
|
||
Operating losses
|
|
11
|
|
|
—
|
%
|
|
22
|
|
|
0.01
|
%
|
||
Other
|
|
266
|
|
|
0.08
|
%
|
|
412
|
|
|
0.14
|
%
|
||
Total other non-interest expense
|
|
$
|
910
|
|
|
0.29
|
%
|
|
$
|
1,028
|
|
|
0.34
|
%
|
Loan Type (dollars in thousands)
|
|
March 31, 2016
|
|
% of Total
Loans
|
|
December 31, 2015
|
|
% of Total
Loans
|
||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Commercial and industrial
|
|
$
|
98,996
|
|
|
16.3
|
%
|
|
$
|
102,197
|
|
|
17.1
|
%
|
Agricultural land and production
|
|
23,736
|
|
|
3.9
|
%
|
|
30,472
|
|
|
5.1
|
%
|
||
Total commercial
|
|
122,732
|
|
|
20.2
|
%
|
|
132,669
|
|
|
22.2
|
%
|
||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Owner occupied
|
|
168,671
|
|
|
27.8
|
%
|
|
168,910
|
|
|
28.2
|
%
|
||
Real estate construction and other land loans
|
|
42,165
|
|
|
6.9
|
%
|
|
38,685
|
|
|
6.5
|
%
|
||
Commercial real estate
|
|
118,611
|
|
|
19.5
|
%
|
|
117,244
|
|
|
19.6
|
%
|
||
Agricultural real estate
|
|
87,354
|
|
|
14.3
|
%
|
|
74,867
|
|
|
12.5
|
%
|
||
Other real estate
|
|
10,593
|
|
|
1.7
|
%
|
|
10,520
|
|
|
1.8
|
%
|
||
Total real estate
|
|
427,394
|
|
|
70.2
|
%
|
|
410,226
|
|
|
68.6
|
%
|
||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Equity loans and lines of credit
|
|
42,103
|
|
|
7.0
|
%
|
|
42,296
|
|
|
7.1
|
%
|
||
Consumer and installment
|
|
16,062
|
|
|
2.6
|
%
|
|
12,503
|
|
|
2.1
|
%
|
||
Total consumer
|
|
58,165
|
|
|
9.6
|
%
|
|
54,799
|
|
|
9.2
|
%
|
||
Net deferred origination costs
|
|
709
|
|
|
|
|
|
417
|
|
|
|
|
||
Total gross loans
|
|
609,000
|
|
|
100.0
|
%
|
|
598,111
|
|
|
100.0
|
%
|
||
Allowance for credit losses
|
|
(10,136
|
)
|
|
|
|
|
(9,610
|
)
|
|
|
|
||
Total loans
|
|
$
|
598,864
|
|
|
|
|
|
$
|
588,501
|
|
|
|
|
(In thousands)
|
|
March 31, 2016
|
|
December 31, 2015
|
||||
Nonaccrual loans:
|
|
|
|
|
|
|
||
Commercial and industrial
|
|
$
|
1,089
|
|
|
$
|
—
|
|
Owner occupied
|
|
484
|
|
|
324
|
|
||
Commercial real estate
|
|
558
|
|
|
567
|
|
||
Equity loans and lines of credit
|
|
230
|
|
|
172
|
|
||
Consumer and installment
|
|
11
|
|
|
13
|
|
||
Troubled debt restructured loans (non-accruing):
|
|
|
|
|
|
|
||
Commercial and industrial
|
|
25
|
|
|
29
|
|
||
Owner occupied
|
|
22
|
|
|
23
|
|
||
Equity loans and lines of credit
|
|
1,260
|
|
|
1,285
|
|
||
Consumer and installment
|
|
—
|
|
|
—
|
|
||
Total nonaccrual
|
|
3,679
|
|
|
2,413
|
|
||
Accruing loans past due 90 days or more
|
|
—
|
|
|
—
|
|
||
Total nonperforming loans
|
|
$
|
3,679
|
|
|
$
|
2,413
|
|
Nonperforming loans to total loans
|
|
0.60
|
%
|
|
0.40
|
%
|
||
Ratio of nonperforming loans to allowance for credit losses
|
|
36.30
|
%
|
|
25.11
|
%
|
||
Loans considered to be impaired
|
|
$
|
7,937
|
|
|
$
|
6,699
|
|
Related allowance for credit losses on impaired loans
|
|
$
|
795
|
|
|
$
|
164
|
|
(In thousands)
|
|
Balance, December 31, 2015
|
|
Additions
to
Nonaccrual
Loans
|
|
Net Pay
Downs
|
|
Transfers
to
Foreclosed
Collateral
- OREO
|
|
Returns to
Accrual
Status
|
|
Charge-
Offs
|
|
Balance, March 31, 2016
|
||||||||||||||
Nonaccrual loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial and industrial
|
|
$
|
—
|
|
|
$
|
1,093
|
|
|
$
|
(4
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,089
|
|
Real estate
|
|
891
|
|
|
170
|
|
|
(19
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,042
|
|
|||||||
Equity loans and lines of credit
|
|
172
|
|
|
61
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
230
|
|
|||||||
Consumer
|
|
13
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|||||||
Restructured loans (non-accruing):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial and industrial
|
|
29
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25
|
|
|||||||
Real estate
|
|
23
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22
|
|
|||||||
Real estate construction and other land loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Equity loans and lines of credit
|
|
1,285
|
|
|
—
|
|
|
(25
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,260
|
|
|||||||
Total nonaccrual
|
|
$
|
2,413
|
|
|
$
|
1,324
|
|
|
$
|
(58
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,679
|
|
|
|
For the Quarter
Ended March 31, |
||||||
(In thousands)
|
|
2016
|
|
2015
|
||||
Beginning balance
|
|
$
|
—
|
|
|
$
|
—
|
|
Additions
|
|
—
|
|
|
227
|
|
||
1st lien assumed
|
|
—
|
|
|
121
|
|
||
Dispositions
|
|
—
|
|
|
—
|
|
||
Write-downs
|
|
—
|
|
|
—
|
|
||
Net gain on disposition
|
|
—
|
|
|
—
|
|
||
Ending balance
|
|
$
|
—
|
|
|
$
|
348
|
|
|
|
For the Quarter
Ended March 31, |
|
For the Year Ended
December 31,
|
|
For the Quarter
Ended March 31, |
||||||
(Dollars in thousands)
|
|
2016
|
|
2015
|
|
2015
|
||||||
Balance, beginning of period
|
|
$
|
9,610
|
|
|
$
|
8,308
|
|
|
$
|
8,308
|
|
(Reversal) Provision charged to operations
|
|
(250
|
)
|
|
600
|
|
|
—
|
|
|||
Losses charged to allowance
|
|
(13
|
)
|
|
(961
|
)
|
|
(441
|
)
|
|||
Recoveries
|
|
789
|
|
|
1,663
|
|
|
532
|
|
|||
Balance, end of period
|
|
$
|
10,136
|
|
|
$
|
9,610
|
|
|
$
|
8,399
|
|
Allowance for credit losses to total loans at end of period
|
|
1.66
|
%
|
|
1.61
|
%
|
|
1.46
|
%
|
|
|
March 31, 2016
|
|
December 31, 2015
|
|
March 31, 2015
|
|||||||||||||||
(Dollars in thousands)
|
|
Balance
|
|
% to Total Loans
|
|
Balance
|
|
% to Total Loans
|
|
Balance
|
|
% to Total Loans
|
|||||||||
Impaired loans with specific reserves
|
|
$
|
2,060
|
|
|
0.34
|
%
|
|
$
|
955
|
|
|
0.16
|
%
|
|
$
|
4,573
|
|
|
0.79
|
%
|
Past due loans
|
|
2,015
|
|
|
0.33
|
%
|
|
302
|
|
|
0.05
|
%
|
|
3,266
|
|
|
0.57
|
%
|
|||
Nonaccrual loans
|
|
3,679
|
|
|
0.60
|
%
|
|
2,413
|
|
|
0.40
|
%
|
|
13,696
|
|
|
2.37
|
%
|
(Dollars in thousands)
|
|
March 31, 2016
|
|
% of
Total
Deposits
|
|
Average Effective
Rate
|
|
December 31, 2015
|
|
% of
Total
Deposits
|
|
Average Effective
Rate
|
||||||||
NOW accounts
|
|
$
|
231,299
|
|
|
20.9
|
%
|
|
0.10
|
%
|
|
$
|
227,167
|
|
|
20.4
|
%
|
|
0.10
|
%
|
MMA accounts
|
|
243,634
|
|
|
22.1
|
%
|
|
0.05
|
%
|
|
239,241
|
|
|
21.4
|
%
|
|
0.06
|
%
|
||
Time deposits
|
|
133,376
|
|
|
12.1
|
%
|
|
0.37
|
%
|
|
139,703
|
|
|
12.5
|
%
|
|
0.37
|
%
|
||
Savings deposits
|
|
87,090
|
|
|
7.9
|
%
|
|
0.03
|
%
|
|
81,383
|
|
|
7.3
|
%
|
|
0.04
|
%
|
||
Total interest-bearing
|
|
695,399
|
|
|
63.0
|
%
|
|
0.13
|
%
|
|
687,494
|
|
|
61.6
|
%
|
|
0.14
|
%
|
||
Non-interest bearing
|
|
408,080
|
|
|
37.0
|
%
|
|
|
|
428,773
|
|
|
38.4
|
%
|
|
|
||||
Total deposits
|
|
$
|
1,103,479
|
|
|
100.0
|
%
|
|
|
|
$
|
1,116,267
|
|
|
100.0
|
%
|
|
|
•
|
introduces as a new capital measure, Common Equity Tier 1 (“CET1”), more commonly known in the United States as “Tier 1 Common,” and defines CET1 narrowly by requiring that most adjustments to regulatory capital measures be made to CET1 and not to the other components of capital, and expands the scope of the adjustments as compared to existing regulations;
|
•
|
when fully phased in, requires banks to maintain: (i) a newly adopted international standard, a minimum ratio of CET1 to risk-weighted assets of at least 4.5%, plus a 2.5% “capital conservation buffer” (which is added to the 4.5% CET1 ratio as that buffer is phased in, effectively resulting in a minimum ratio of CET1 to risk-weighted assets of at least 7%); (ii) an additional “SIFI buffer” for those large institutions deemed to be systemically important, ranging from 1.0% to 2.5%, and up to 3.5% under certain conditions; (iii) a minimum ratio of Tier 1 capital to risk-weighted assets of at least 6.0%, plus the capital conservation buffer (which is added to the 6.0% Tier 1 capital ratio as that buffer is phased in, effectively resulting in a minimum Tier 1 capital ratio of 8.5% upon full implementation); (iv) a minimum ratio of Total (that is, Tier 1 plus Tier 2) capital to risk-weighted assets of at least 8.0%, plus the capital conservation buffer (which is added to the 8.0% total capital ratio as that buffer is phased in, effectively resulting in a minimum total capital ratio of 10.5% upon full implementation); and (v) as a newly adopted international standard, a minimum leverage ratio of 3%, calculated as the ratio of Tier 1 capital to balance sheet exposures plus certain off-balance sheet exposures (as the average for each quarter of the month-end ratios for the quarter); and
|
•
|
an additional “countercyclical capital buffer,” generally to be imposed when national regulators determine that excess aggregate credit growth becomes associated with a buildup of systemic risk, that would be a CET1 add-on to the capital conservation buffer in the range of 0% to 2.5% when fully implemented.
|
|
|
March 31, 2016
|
|
December 31, 2015
|
||||||||||
(Dollars in thousands)
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
||||||
Tier 1 Leverage Ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Central Valley Community Bancorp and Subsidiary
|
|
$
|
108,948
|
|
|
8.91
|
%
|
|
$
|
105,825
|
|
|
8.65
|
%
|
Minimum regulatory requirement
|
|
$
|
48,897
|
|
|
4.00
|
%
|
|
$
|
48,950
|
|
|
4.00
|
%
|
Central Valley Community Bank
|
|
$
|
107,893
|
|
|
8.83
|
%
|
|
$
|
104,878
|
|
|
8.58
|
%
|
Minimum requirement for “Well-Capitalized” institution
|
|
$
|
61,102
|
|
|
5.00
|
%
|
|
$
|
61,148
|
|
|
5.00
|
%
|
Minimum regulatory requirement
|
|
$
|
48,881
|
|
|
4.00
|
%
|
|
$
|
48,918
|
|
|
4.00
|
%
|
Common Equity Tier 1 Ratio
|
|
|
|
|
|
|
|
|
||||||
Central Valley Community Bancorp and Subsidiary
|
|
$
|
105,384
|
|
|
13.45
|
%
|
|
103,152
|
|
|
13.44
|
%
|
|
Minimum regulatory requirement
|
|
$
|
35,338
|
|
|
4.50
|
%
|
|
34,650
|
|
|
4.50
|
%
|
|
Central Valley Community Bank
|
|
$
|
107,893
|
|
|
13.78
|
%
|
|
104,878
|
|
|
13.67
|
%
|
|
Minimum requirement for “Well-Capitalized” institution
|
|
$
|
51,019
|
|
|
6.50
|
%
|
|
50,017
|
|
|
6.50
|
%
|
|
Minimum regulatory requirement
|
|
$
|
35,321
|
|
|
4.50
|
%
|
|
34,627
|
|
|
4.50
|
%
|
|
Tier 1 Risk-Based Capital Ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Central Valley Community Bancorp and Subsidiary
|
|
$
|
108,948
|
|
|
13.91
|
%
|
|
$
|
105,825
|
|
|
13.79
|
%
|
Minimum regulatory requirement
|
|
$
|
47,118
|
|
|
6.00
|
%
|
|
$
|
46,200
|
|
|
6.00
|
%
|
Central Valley Community Bank
|
|
$
|
107,893
|
|
|
13.78
|
%
|
|
$
|
104,878
|
|
|
13.67
|
%
|
Minimum requirement for “Well-Capitalized” institution
|
|
$
|
62,793
|
|
|
8.00
|
%
|
|
$
|
61,560
|
|
|
8.00
|
%
|
Minimum regulatory requirement
|
|
$
|
47,095
|
|
|
6.00
|
%
|
|
$
|
46,170
|
|
|
6.00
|
%
|
Total Risk-Based Capital Ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Central Valley Community Bancorp and Subsidiary
|
|
$
|
118,831
|
|
|
15.17
|
%
|
|
$
|
115,466
|
|
|
15.04
|
%
|
Minimum regulatory requirement
|
|
$
|
62,823
|
|
|
8.00
|
%
|
|
$
|
61,601
|
|
|
8.00
|
%
|
Central Valley Community Bank
|
|
$
|
117,771
|
|
|
15.04
|
%
|
|
$
|
114,513
|
|
|
14.93
|
%
|
Minimum requirement for “Well-Capitalized” institution
|
|
$
|
78,491
|
|
|
10.00
|
%
|
|
$
|
76,949
|
|
|
10.00
|
%
|
Minimum regulatory requirement
|
|
$
|
62,793
|
|
|
8.00
|
%
|
|
$
|
61,560
|
|
|
8.00
|
%
|
Credit Lines (In thousands)
|
|
March 31, 2016
|
|
December 31, 2015
|
||||
Unsecured Credit Lines
|
|
|
|
|
|
|
||
(interest rate varies with market):
|
|
|
|
|
|
|
||
Credit limit
|
|
$
|
40,000
|
|
|
$
|
40,000
|
|
Balance outstanding
|
|
$
|
—
|
|
|
$
|
—
|
|
Federal Home Loan Bank
|
|
|
|
|
|
|
||
(interest rate at prevailing interest rate):
|
|
|
|
|
|
|
||
Credit limit
|
|
$
|
319,056
|
|
|
$
|
308,356
|
|
Balance outstanding
|
|
$
|
—
|
|
|
$
|
—
|
|
Collateral pledged
|
|
$
|
158,341
|
|
|
$
|
215,223
|
|
Fair value of collateral
|
|
$
|
158,417
|
|
|
$
|
215,307
|
|
Federal Reserve Bank
|
|
|
|
|
|
|
||
(interest rate at prevailing discount interest rate):
|
|
|
|
|
|
|
||
Credit limit
|
|
$
|
2,388
|
|
|
$
|
2,328
|
|
Balance outstanding
|
|
$
|
—
|
|
|
$
|
—
|
|
Collateral pledged
|
|
$
|
2,586
|
|
|
$
|
2,578
|
|
Fair value of collateral
|
|
$
|
2,622
|
|
|
$
|
2,598
|
|
|
Central Valley Community Bancorp
|
|
|
|
Date: May 6, 2016
|
/s/ James M. Ford
|
|
James M. Ford
|
|
President and Chief Executive Officer
|
|
|
Date: May 6, 2016
|
/s/ David A. Kinross
|
|
David A. Kinross
|
|
Executive Vice President and Chief Financial Officer
|
|
|
|
|
PAGE
|
ARTICLE I.
|
OFFICES
|
|
1
|
|
Section 1.
|
|
Principal Office
|
|
1
|
Section 2.
|
|
Other Offices
|
|
1
|
ARTICLE II.
|
MEETINGS OF SHAREHOLDERS
|
|
1
|
|
Section 3.
|
|
Place of Meetings
|
|
1
|
Section 4.
|
|
Annual Meetings
|
|
1
|
Section 5.
|
|
Special Meetings
|
|
2
|
Section 6.
|
|
Notice of Shareholders' Meetings
|
|
2
|
Section 7.
|
|
Quorum
|
|
2
|
Section 8.
|
|
Adjourned Meeting
|
|
3
|
Section 9.
|
|
Waiver or Consent by Shareholders
|
|
3
|
Section 10.
|
|
Action Without Meeting
|
|
3
|
Section 11.
|
|
Voting Rights; No Cumulative Voting
|
|
4
|
Section 12.
|
|
Proxies
|
|
4
|
Section 13.
|
|
Voting by Joint Holders or Proxies
|
|
4
|
Section 14.
|
|
Inspectors of Election
|
|
5
|
ARTICLE III.
|
DIRECTORS; MANAGEMENT
|
|
5
|
|
Section 15.
|
|
Powers
|
|
5
|
Section 16.
|
|
Number and Qualification of Directors
|
|
5
|
Section 17.
|
|
Election and Term of Office
|
|
6
|
Section 18.
|
|
Removal of Directors
|
|
6
|
Section 19.
|
|
Vacancies
|
|
6
|
Section 20.
|
|
Place of Meetings
|
|
7
|
Section 21.
|
|
Organizational Meetings
|
|
7
|
Section 22.
|
|
Other Regular Meetings
|
|
7
|
Section 23.
|
|
Special Meetings
|
|
7
|
Section 24.
|
|
Quorum
|
|
7
|
Section 25.
|
|
Contents of Notice and Waiver of Notice
|
|
8
|
Section 26.
|
|
Adjournment
|
|
8
|
Section 27.
|
|
Notice of Adjournment
|
|
8
|
Section 28.
|
|
Telephone Participation
|
|
8
|
Section 29.
|
|
Action Without Meeting
|
|
8
|
Section 30.
|
|
Fees and Compensation
|
|
8
|
ARTICLE IV.
|
OFFICERS
|
|
8
|
|
Section 31.
|
|
Officers
|
|
9
|
Section 32.
|
|
Election
|
|
9
|
Section 33.
|
|
Subordinate Officers
|
|
9
|
Section 34.
|
|
Removal and Resignation
|
|
9
|
Section 35.
|
|
Vacancies
|
|
9
|
Section 36.
|
|
Chairman of the Board
|
|
9
|
Section 36.5
|
|
Lead Independent Director
|
|
10
|
Section 37.
|
|
President
|
|
10
|
Section 38.
|
|
Vice Presidents
|
|
10
|
Section 39.
|
|
Secretary
|
|
10
|
Section 40.
|
|
Chief Financial Officer
|
|
11
|
ARTICLE V.
|
GENERAL CORPORATE MATTERS
|
|
11
|
|
Section 41.
|
|
Record Date and Closing of Stock Books
|
|
11
|
Section 42.
|
|
Corporate Records and Inspection by Shareholders
|
|
12
|
Section 43.
|
|
Checks, Drafts, Evidences of Indebtedness
|
|
12
|
Section 44.
|
|
Corporate Contracts and Instruments; How Executed
|
|
12
|
Section 45.
|
|
Stock Certificates
|
|
12
|
Section 46.
|
|
Lost Certificates
|
|
12
|
Section 47.
|
|
Reports to Shareholders
|
|
13
|
Section 48.
|
|
Indemnity of Officers, Directors, etc.
|
|
13
|
Section 49.
|
|
Fiscal Year
|
|
13
|
Section 50.
|
|
Construction and Definitions
|
|
13
|
ARTICLE VI.
|
AMENDMENTS
|
|
13
|
|
Section 51.
|
|
Amendments by Shareholders
|
|
13
|
Section 52.
|
|
Amendment by Directors
|
|
13
|
|
1
|
|
|
2
|
|
|
3
|
|
|
4
|
|
|
5
|
|
|
6
|
|
|
7
|
|
|
8
|
|
|
9
|
|
|
10
|
|
|
11
|
|
|
12
|
|
|
13
|
|
|
14
|
|
/s/ James M. Ford
|
|
Date: May 6, 2016
|
James M. Ford,
|
|
|
/s/ David A. Kinross
|
|
Date: May 6, 2016
|
David A. Kinross,
|
|
|
|
/s/ James M. Ford
|
|
JAMES M. FORD
|
|
President and Chief Executive Officer
|
|
/s/ David A. Kinross
|
|
DAVID A. KINROSS
|
|
Executive Vice President and Chief Financial Officer
|