10-Q | 2018-09-30 | Quarter: 2018-09-30 |
10-Q | 2018-06-30 | Quarter: 2018-06-30 |
10-Q | 2018-03-31 | Quarter: 2018-03-31 |
10-K | 2017-12-31 | Annual: 2017-12-31 |
10-Q | 2017-09-30 | Quarter: 2017-09-30 |
10-Q | 2017-06-30 | Quarter: 2017-06-30 |
10-Q | 2017-03-31 | Quarter: 2017-03-31 |
10-K | 2016-12-31 | Annual: 2016-12-31 |
10-Q | 2016-09-30 | Quarter: 2016-09-30 |
10-Q | 2016-06-30 | Quarter: 2016-06-30 |
10-Q | 2016-03-31 | Quarter: 2016-03-31 |
10-K | 2015-12-31 | Annual: 2015-12-31 |
8-K | 2019-01-25 | Earnings, Exhibits |
8-K | 2019-01-25 | Earnings, Exhibits |
8-K | 2018-12-20 | Officers, Other Events |
8-K | 2018-10-23 | Earnings, Exhibits |
8-K | 2018-08-14 | Regulation FD, Exhibits |
8-K | 2018-07-25 | Earnings, Exhibits |
8-K | 2018-04-26 | Earnings, Exhibits |
8-K | 2018-04-19 | Shareholder Vote, Regulation FD, Other Events, Exhibits |
8-K | 2018-02-26 | Regulation FD, Exhibits |
8-K | 2018-01-30 | Earnings, Exhibits |
DTSS | Datasea |
DBA | Invesco DB Agriculture Fund |
SKVI | Skinvisible |
JRVS | Imine |
CTBO | Cantabio Pharmaceuticals |
AFOM | All For One Media |
CNCG | Concierge Technologies |
DWOG | Deep Well Oil & Gas |
OZSC | Ozop Surgical |
JAKRO | Jakroo |
Note 1 - Basis of Presentation |
Note 2 - Revenue Recognition |
Note 3 - Earnings per Share |
Note 4 - Investments |
Note 5 - Loans |
Note 6 - Goodwill and Other Intangible Assets |
Note 7 - Repurchase Agreements |
Note 8 - Employee Benefit Plans |
Note 9 - Accumulated Comprehensive Loss |
Note 10 - Fair Value Measurements |
Note 11 Legal and Regulatory Proceedings |
Note 12 - Recent Accounting Pronouncements |
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations |
Item 3-Quantitative and Qualitative Disclosure About Market Risk |
Item 4-Control and Procedures |
Part II ‑ Other Information |
Item 1 ‑ Legal Proceedings |
Item 1A - Risk Factors |
Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds |
Item 3 ‑ Defaults Upon Senior Securities |
Item 4 - Mine Safety Disclosure |
Item 5 ‑ Other Information |
Item 6 ‑ Exhibits |
EX-31.1 | ceocert.htm |
EX-31.2 | cfocert.htm |
EX-32.1 | certification.htm |
Balance Sheet | Income Statement | Cash Flow |
---|---|---|
PAGE | ||
Part I | FINANCIAL INFORMATION | |
Item 1. | Financial Statements (unaudited): | |
Consolidated Balance Sheet as of September 30,2018 and December 31, 2017 | 1 | |
Consolidated Statement of Income for the Three and Nine months Ended September 30, 2018 and 2017 | 2 | |
Consolidated Statement of Comprehensive Income for the Three and Nine months ended September 30, 2018 and 2017 | 3 | |
Consolidated Statement of Cash Flows for the Nine Months ended September 30, 2018 and 2017 | 4 | |
Notes to Consolidated Financial Statements | 5-29 | |
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations | 30-52 |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 52 |
Item 4. | Controls and Procedures | 52-53 |
Part II | OTHER INFORMATION | |
Item 1. | Legal Proceedings | 53 |
Item 1A. | Risk Factors | 53 |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 53 |
Item 3. | Defaults Upon Senior Securities | 53 |
Item 4. | Mine Safety Disclosures | 53 |
Item 5. | Other Information | 53 |
Item 6. | Exhibits | 54 |
Signatures | 55 |
CITIZENS FINANCIAL SERVICES, INC. | ||||||||
CONSOLIDATED BALANCE SHEET | ||||||||
(UNAUDITED) | ||||||||
| ||||||||
| September 30, | December 31, | ||||||
(in thousands except share data) | 2018 | 2017 | ||||||
ASSETS: | ||||||||
Cash and due from banks: | ||||||||
Noninterest-bearing | $ | 15,496 | $ | 16,347 | ||||
Interest-bearing | 1,004 | 2,170 | ||||||
Total cash and cash equivalents | 16,500 | 18,517 | ||||||
Interest bearing time deposits with other banks | 14,754 | 10,283 | ||||||
Equity Securities | 291 | - | ||||||
Available-for-sale securities | 240,426 | 254,782 | ||||||
Loans held for sale | 960 | 1,439 | ||||||
Loans (net of allowance for loan losses: | ||||||||
2018, $12,383 and 2017, $11,190) | 1,047,948 | 989,335 | ||||||
Premises and equipment | 16,189 | 16,523 | ||||||
Accrued interest receivable | 4,480 | 4,196 | ||||||
Goodwill | 23,296 | 23,296 | ||||||
Bank owned life insurance | 27,350 | 26,883 | ||||||
Other intangibles | 1,703 | 1,953 | ||||||
Other assets | 13,983 | 14,679 | ||||||
| ||||||||
TOTAL ASSETS | $ | 1,407,880 | $ | 1,361,886 | ||||
| ||||||||
LIABILITIES: | ||||||||
Deposits: | ||||||||
Noninterest-bearing | $ | 173,379 | $ | 171,840 | ||||
Interest-bearing | 1,001,464 | 933,103 | ||||||
Total deposits | 1,174,843 | 1,104,943 | ||||||
Borrowed funds | 86,097 | 114,664 | ||||||
Accrued interest payable | 979 | 897 | ||||||
Other liabilities | 11,561 | 12,371 | ||||||
TOTAL LIABILITIES | 1,273,480 | 1,232,875 | ||||||
STOCKHOLDERS' EQUITY: | ||||||||
Preferred Stock | ||||||||
$1.00 par value; authorized 3,000,000 shares at September 30, 2018 and | ||||||||
December 31, 2017; none issued in 2018 or 2017 | - | - | ||||||
Common stock | ||||||||
$1.00 par value; authorized 25,000,000 shares at September 30 2018 and 15,000,000 | ||||||||
at December 31, 2017; issued 3,904,212 at September 30, 2018 and 3,869,939 | ||||||||
at December 31, 2017 | 3,904 | 3,870 | ||||||
Additional paid-in capital | 53,122 | 51,108 | ||||||
Retained earnings | 96,754 | 89,982 | ||||||
Accumulated other comprehensive loss | (6,081 | ) | (3,398 | ) | ||||
Treasury stock, at cost: 395,070 shares at September 30, 2018 | ||||||||
and 383,065 shares at December 31, 2017 | (13,299 | ) | (12,551 | ) | ||||
TOTAL STOCKHOLDERS' EQUITY | 134,400 | 129,011 | ||||||
TOTAL LIABILITIES AND | ||||||||
STOCKHOLDERS' EQUITY | $ | 1,407,880 | $ | 1,361,886 | ||||
| ||||||||
The accompanying notes are an integral part of these unaudited consolidated financial statements. |
CITIZENS FINANCIAL SERVICES, INC. | ||||||||||||||||
CONSOLIDATED STATEMENT OF INCOME | ||||||||||||||||
(UNAUDITED) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | |||||||||||||||
(in thousands, except share and per share data) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
INTEREST INCOME: | ||||||||||||||||
Interest and fees on loans | $ | 12,666 | $ | 10,659 | $ | 36,988 | $ | 30,680 | ||||||||
Interest-bearing deposits with banks | 94 | 49 | 218 | 129 | ||||||||||||
Investment securities: | ||||||||||||||||
Taxable | 967 | 762 | 2,683 | 2,341 | ||||||||||||
Nontaxable | 425 | 588 | 1,426 | 1,857 | ||||||||||||
Dividends | 107 | 62 | 355 | 191 | ||||||||||||
TOTAL INTEREST INCOME | 14,259 | 12,120 | 41,670 | 35,198 | ||||||||||||
INTEREST EXPENSE: | ||||||||||||||||
Deposits | 1,794 | 1,210 | 4,695 | 3,398 | ||||||||||||
Borrowed funds | 695 | 293 | 2,034 | 782 | ||||||||||||
TOTAL INTEREST EXPENSE | 2,489 | 1,503 | 6,729 | 4,180 | ||||||||||||
NET INTEREST INCOME | 11,770 | 10,617 | 34,941 | 31,018 | ||||||||||||
Provision for loan losses | 475 | 500 | 1,300 | 1,740 | ||||||||||||
NET INTEREST INCOME AFTER | ||||||||||||||||
PROVISION FOR LOAN LOSSES | 11,295 | 10,117 | 33,641 | 29,278 | ||||||||||||
NON-INTEREST INCOME: | ||||||||||||||||
Service charges | 1,181 | 1,145 | 3,455 | 3,323 | ||||||||||||
Trust | 147 | 187 | 548 | 596 | ||||||||||||
Brokerage and insurance | 222 | 154 | 571 | 459 | ||||||||||||
Gains on loans sold | 170 | 134 | 302 | 383 | ||||||||||||
Equity security gains (losses), net | (4 | ) | - | 9 | - | |||||||||||
Available for sale security gains (losses), net | (8 | ) | 9 | (8 | ) | 204 | ||||||||||
Earnings on bank owned life insurance | 161 | 166 | 467 | 499 | ||||||||||||
Other | 141 | 126 | 414 | 380 | ||||||||||||
TOTAL NON-INTEREST INCOME | 2,010 | 1,921 | 5,758 | 5,844 | ||||||||||||
NON-INTEREST EXPENSES: | ||||||||||||||||
Salaries and employee benefits | 4,679 | 4,287 | 14,251 | 13,030 | ||||||||||||
Occupancy | 500 | 475 | 1,606 | 1,479 | ||||||||||||
Furniture and equipment | 130 | 159 | 394 | 444 | ||||||||||||
Professional fees | 507 | 318 | 1,273 | 942 | ||||||||||||
FDIC insurance | 120 | 95 | 327 | 295 | ||||||||||||
Pennsylvania shares tax | 250 | 243 | 850 | 767 | ||||||||||||
Amortization of intangibles | 74 | 74 | 224 | 223 | ||||||||||||
OREO expenses | 6 | 139 | 92 | 255 | ||||||||||||
Other | 1,522 | 1,457 | 4,305 | 4,169 | ||||||||||||
TOTAL NON-INTEREST EXPENSES | 7,788 | 7,247 | 23,322 | 21,604 | ||||||||||||
Income before provision for income taxes | 5,517 | 4,791 | 16,077 | 13,518 | ||||||||||||
Provision for income taxes | 936 | 1,141 | 2,558 | 3,097 | ||||||||||||
NET INCOME | $ | 4,581 | $ | 3,650 | $ | 13,519 | $ | 10,421 | ||||||||
PER COMMON SHARE DATA: | ||||||||||||||||
Net Income - Basic | $ | 1.31 | $ | 1.04 | $ | 3.85 | $ | 2.96 | ||||||||
Net Income - Diluted | $ | 1.31 | $ | 1.04 | $ | 3.85 | $ | 2.96 | ||||||||
Cash Dividends Paid | $ | 0.440 | $ | 0.426 | $ | 1.302 | $ | 1.228 | ||||||||
| ||||||||||||||||
Number of shares used in computation - basic | 3,502,859 | 3,517,208 | 3,507,515 | 3,515,032 | ||||||||||||
Number of shares used in computation - diluted | 3,503,020 | 3,519,493 | 3,509,676 | 3,516,906 | ||||||||||||
| ||||||||||||||||
The accompanying notes are an integral part of these unaudited consolidated financial statements. |
CITIZENS FINANCIAL SERVICES, INC. | ||||||||||||||||||||||||||||||||
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | ||||||||||||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||||||||||
(in thousands) | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||||||||||
Net income | $ | 4,581 | $ | 3,650 | $ | 13,519 | $ | 10,421 | ||||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Change in unrealized gains (losses) on available | ||||||||||||||||||||||||||||||||
For sale securities | (971 | ) | (288 | ) | (3,544 | ) | 437 | |||||||||||||||||||||||||
Income tax effect | 205 | 98 | 744 | (149 | ) | |||||||||||||||||||||||||||
Change in unrecognized pension cost | 47 | 56 | 140 | 168 | ||||||||||||||||||||||||||||
Income tax effect | (11 | ) | (19 | ) | (30 | ) | (57 | ) | ||||||||||||||||||||||||
Less: Reclassification adjustment for investment | ||||||||||||||||||||||||||||||||
security (gains) losses included in net income | 8 | (9 | ) | 8 | (204 | ) | ||||||||||||||||||||||||||
Income tax effect | (2 | ) | 3 | (2 | ) | 69 | ||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | (724 | ) | (159 | ) | (2,684 | ) | 264 | |||||||||||||||||||||||||
Comprehensive income | $ | 3,857 | $ | 3,491 | $ | 10,835 | $ | 10,685 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these unaudited consolidated financial statements. |
CITIZENS FINANCIAL SERVICES, INC. | ||||||||
CONSOLIDATED STATEMENT OF CASH FLOWS | ||||||||
(UNAUDITED) | Nine Months Ended | |||||||
| September 30, | |||||||
(in thousands) | 2018 | 2017 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 13,519 | $ | 10,421 | ||||
Adjustments to reconcile net income to net | ||||||||
cash provided by operating activities: | ||||||||
Provision for loan losses | 1,300 | 1,740 | ||||||
Depreciation and amortization | 301 | 321 | ||||||
Amortization and accretion of investment securities | 813 | 1,089 | ||||||
Deferred income taxes | (260 | ) | (381 | ) | ||||
Investment securities (gains) losses, net | 1 | (204 | ) | |||||
Earnings on bank owned life insurance | (467 | ) | (499 | ) | ||||
Originations of loans held for sale | (14,709 | ) | (17,144 | ) | ||||
Proceeds from sales of loans held for sale | 15,374 | 17,789 | ||||||
Realized gains on loans sold | (302 | ) | (383 | ) | ||||
(Increase) decrease in accrued interest receivable | (284 | ) | 303 | |||||
Increase in accrued interest payable | 82 | 11 | ||||||
Other, net | (435 | ) | (360 | ) | ||||
Net cash provided by operating activities | 14,933 | 12,703 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Available-for-sale securities: | ||||||||
Proceeds from sales | 25,168 | 30,393 | ||||||
Proceeds from maturity and principal repayments | 41,027 | 47,677 | ||||||
Purchase of securities | (56,289 | ) | (20,548 | ) | ||||
Purchase of equity securities | (191 | ) | - | |||||
Purchase of interest bearing time deposits with other banks | (5,713 | ) | (6,301 | ) | ||||
Proceeds from sale of interest bearing time deposits with other banks | 1,239 | 2,741 | ||||||
Proceeds from matured interest bearing time deposits with other banks | - | 496 | ||||||
Proceeds from redemption of regulatory stock | 7,874 | 6,090 | ||||||
Purchase of regulatory stock | (6,751 | ) | (5,668 | ) | ||||
Net increase in loans | (59,646 | ) | (107,864 | ) | ||||
Purchase of premises and equipment | (228 | ) | (179 | ) | ||||
Proceeds from sale of foreclosed assets held for sale | 899 | 312 | ||||||
Net cash used in investing activities | (52,611 | ) | (52,851 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Net increase in deposits | 69,900 | 46,602 | ||||||
Proceeds from long-term borrowings | 7 | 7 | ||||||
Repayments of long-term borrowings | (1,000 | ) | - | |||||
Net decrease in short-term borrowed funds | (27,574 | ) | (6,041 | ) | ||||
Purchase of treasury and restricted stock | (1,098 | ) | (645 | ) | ||||
Dividends paid | (4,574 | ) | (3,714 | ) | ||||
Net cash provided by financing activities | 35,661 | 36,209 | ||||||
Net decrease in cash and cash equivalents | (2,017 | ) | (3,939 | ) | ||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 18,517 | 17,754 | ||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 16,500 | $ | 13,815 | ||||
| ||||||||
Supplemental Disclosures of Cash Flow Information: | ||||||||
Interest paid | $ | 6,647 | $ | 4,169 | ||||
Income taxes paid | $ | 1,900 | $ | 2,950 | ||||
Loans transferred to foreclosed property | $ | 381 | $ | 785 | ||||
| ||||||||
The accompanying notes are an integral part of these unaudited consolidated financial statements. |
· | Service charges on deposit accounts – The Company has contracts with its deposit customers where fees are charged if certain parameters are not met. These agreements can be cancelled at any time by either the Company or the deposit customer. Revenue from these transactions is recognized on a monthly basis as the Company has an unconditional right to the fee consideration. The Company also has transaction fees related to specific transactions or activities resulting from a customer request or activity that include overdraft fees, online banking fees, interchange fees, ATM fees and other transaction fees. All of these fees are attributable to specific performance obligations of the Company where the revenue is recognized at a defined point in time upon the completion of the requested service/transaction. |
· | Trust fees – Typical contracts for trust services are based on a fixed percentage of the assets earned ratably over a defined period and billed on a monthly basis. Fees charged to customers' accounts are recognized as revenue over the period during which the Company fulfills its performance obligation under the contract (i.e., holding client asset in a managed fiduciary trust account). For these accounts, the performance obligation of the Company is typically satisfied by holding and managing the customer's assets over time. Other fees related to specific customer requests are attributable to specific performance obligations of the Company where the revenue is recognized at a defined point in time, upon completion of the requested service/transaction. |
· | Gains (losses) on sale of other real estate owned – Gains and losses are recognized at the completion of the property sale when the buyer obtains control of the real estate and all of the performance obligations of the Company have been satisfied. Evidence of the buyer obtaining control of the asset include transfer of the property title, physical possession of the asset, and the buyer obtaining control of the risks and rewards related to the asset. In situations where the Company agrees to provide financing to facilitate the sale, additional analysis is performed to ensure that the contract for sale identifies the buyer and seller, the asset to be transferred, payment terms, and that the contract has a true commercial substance and that collection of amounts due from the buyer are reasonable. In situations where financing terms are not reflective of current market terms, the transaction price is discounted impacting the gain/loss and the carrying value of the asset. |
· | Brokerage and insurance – Fees includes commissions from the sales of investments and insurance products recognized on a trade date basis as the performance obligation is satisfied at the point in time in which the trade is processed. Additional fees are based on a percentage of the market value of customer accounts and billed on a monthly or quarterly basis. The Company's performance obligation under the contracts with certain customers is generally satisfied through the passage of time as the Company monitors and manages the assets in the customer's portfolio and is not dependent on certain return or performance level of the customer's portfolio. Fees for these services are billed monthly and are recorded as revenue at the end of the month for which the wealth management service has been performed. Other performance obligations (such as the delivery of account statements to customers) are generally considered immaterial to the overall transaction price. |
| September 30, 2018 | |||||||
Revenue stream | Three Months Ended | Nine Months Ended | ||||||
Service charges on deposit accounts | ||||||||
Overdraft fees | $ | 395 | $ | 1,143 | ||||
Statement fees | 50 | 155 | ||||||
Interchange revenue | 566 | 1,671 | ||||||
ATM income | 104 | 301 | ||||||
Other service charges | 66 | 185 | ||||||
Total Service Charges | 1,181 | 3,455 | ||||||
Trust | 147 | 548 | ||||||
Brokerage and insurance | 222 | 571 | ||||||
Other | 84 | 245 | ||||||
Total | $ | 1,634 | $ | 4,819 |
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Net income applicable to common stock | $ | 4,581,000 | $ | 3,650,000 | $ | 13,519,000 | $ | 10,421,000 | ||||||||
Basic earnings per share computation | ||||||||||||||||
Weighted average common shares outstanding | 3,502,859 | 3,517,208 | 3,507,515 | 3,515,032 | ||||||||||||
Earnings per share - basic | $ | 1.31 | $ | 1.04 | $ | 3.85 | $ | 2.96 | ||||||||
Diluted earnings per share computation | ||||||||||||||||
Weighted average common shares outstanding for basic earnings per share | 3,502,859 | 3,517,208 | 3,507,515 | 3,515,032 | ||||||||||||
Add: Dilutive effects of restricted stock | 161 | 2,285 | 2,161 | 1,874 | ||||||||||||
Weighted average common shares outstanding for dilutive earnings per share | 3,503,020 | 3,519,493 | 3,509,676 | 3,516,906 | ||||||||||||
Earnings per share - diluted | $ | 1.31 | $ | 1.04 | $ | 3.85 | $ | 2.96 |
Gross | Gross | |||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
September 30, 2018 | Cost | Gains | Losses | Value | ||||||||||||
Available-for-sale securities: | ||||||||||||||||
U.S. agency securities | $ | 109,612 | $ | - | $ | (1,343 | ) | $ | 108,269 | |||||||
U.S. treasury securities | 33,798 | - | (961 | ) | 32,837 | |||||||||||
Obligations of state and | ||||||||||||||||
political subdivisions | 51,941 | 116 | (459 | ) | 51,598 | |||||||||||
Corporate obligations | 3,000 | - | - | 3,000 | ||||||||||||
Mortgage-backed securities in | ||||||||||||||||
government sponsored entities | 45,951 | 2 | (1,231 | ) | 44,722 | |||||||||||
Total available-for-sale securities | $ | 244,302 | $ | 118 | $ | (3,994 | ) | $ | 240,426 | |||||||
December 31, 2017 | ||||||||||||||||
Available-for-sale securities: | ||||||||||||||||
U.S. agency securities | $ | 99,454 | $ | 26 | $ | (593 | ) | $ | 98,887 | |||||||
U.S. treasury securities | 28,782 | - | (178 | ) | 28,604 | |||||||||||
Obligations of state and | ||||||||||||||||
political subdivisions | 78,409 | 820 | (139 | ) | 79,090 | |||||||||||
Corporate obligations | 3,000 | 83 | - | 3,083 | ||||||||||||
Mortgage-backed securities in | ||||||||||||||||
government sponsored entities | 45,385 | 19 | (377 | ) | 45,027 | |||||||||||
Equity securities in financial institutions | 92 | - | (1 | ) | 91 | |||||||||||
Total available-for-sale securities | $ | 255,122 | $ | 948 | $ | (1,288 | ) | $ | 254,782 |
September 30, 2018 | Less than Twelve Months | Twelve Months or Greater | Total | |||||||||||||||||||||
Gross | Gross | Gross | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
| Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||
U.S. agency securities | $ | 54,399 | $ | (656 | ) | $ | 40,554 | $ | (687 | ) | $ | 94,953 | $ | (1,343 | ) | |||||||||
U.S. treasury securities | 32,837 | (961 | ) | - | - | | 32,837 | | (961 | ) | ||||||||||||||
Obligations of state and | ||||||||||||||||||||||||
political subdivisions | 26,648 | (249 | ) | 8,381 | (210 | ) | 35,029 | (459 | ) | |||||||||||||||
Mortgage-backed securities in | ||||||||||||||||||||||||
government sponsored entities | 17,167 | (299 | ) | 24,056 | (932 | ) | 41,223 | (1,231 | ) | |||||||||||||||
Total securities | $ | 131,051 | $ | (2,165 | ) | $ | 72,991 | $ | (1,829 | ) | $ | 204,042 | $ | (3,994 | ) | |||||||||
December 31, 2017 | ||||||||||||||||||||||||
U.S. agency securities | $ | 74,952 | $ | (421 | ) | $ | 16,928 | $ | (172 | ) | $ | 91,880 | $ | (593 | ) | |||||||||
U.S. treasury securities | 28,604 | (178 | ) | - | - | 28,604 | (178 | ) | ||||||||||||||||
Obligations of states and | ||||||||||||||||||||||||
political subdivisions | 14,885 | (85 | ) | 5,958 | (54 | ) | 20,843 | (139 | ) | |||||||||||||||
Mortgage-backed securities in | ||||||||||||||||||||||||
government sponsored entities | 27,154 | (190 | ) | 13,822 | (187 | ) | 40,976 | (377 | ) | |||||||||||||||
Equity securities in financial institutions | 91 | (1 | ) | - | - | 91 | (1 | ) | ||||||||||||||||
Total securities | $ | 145,686 | $ | (875 | ) | $ | 36,708 | $ | (413 | ) | $ | 182,394 | $ | (1,288 | ) |
Three Months Ended | Nine Months Ended | |||||||||||||||
Sept. 30, | Sept. 30, | |||||||||||||||
| 2018 | 2017 | 2018 | 2017 | ||||||||||||
Gross gains on available for sale securities | $ | 161 | $ | 9 | $ | 161 | $ | 211 | ||||||||
Gross losses on available for sale securities | (169 | ) | - | (169 | ) | (7 | ) | |||||||||
Net gains | $ | (8 | ) | $ | 9 | $ | (8 | ) | $ | 204 |
Equity Securities | Three Months Ended September 30, 2018 | Nine Months Ended September 30, 2018 | ||||||
Net gains (losses) recognized in equity securities during the period | $ | (4 | ) | $ | 9 | |||
Less: Net gains realized on the sale of equity securities during the period | - | - | ||||||
Net unrealized gains (losses) | $ | (4 | ) | $ | 9 |
Amortized | ||||||||
| Cost | Fair Value | ||||||
Available-for-sale debt securities: | ||||||||
Due in one year or less | $ | 29,087 | $ | 29,035 | ||||
Due after one year through five years | 105,536 | 103,350 | ||||||
Due after five years through ten years | 59,609 | 58,574 | ||||||
Due after ten years | 50,070 | 49,467 | ||||||
Total | $ | 244,302 | $ | 240,426 |
September 30, 2018 | Total Loans | Individually evaluated for impairment | Loans acquired with deteriorated credit quality | Collectively evaluated for impairment | ||||||||||||
Real estate loans: | ||||||||||||||||
Residential | $ | 213,255 | $ | 915 | $ | 30 | $ | 212,310 | ||||||||
Commercial | 312,982 | 14,148 | 1,345 | 297,489 | ||||||||||||
Agricultural | 280,569 | 5,038 | 683 | 274,848 | ||||||||||||
Construction | 30,262 | - | - | 30,262 | ||||||||||||
Consumer | 9,702 | - | - | 9,702 | ||||||||||||
Other commercial loans | 72,219 | 3,368 | 518 | 68,333 | ||||||||||||
Other agricultural loans | 39,917 | 1,448 | - | 38,469 | ||||||||||||
State and political subdivision loans | 101,425 | - | - | 101,425 | ||||||||||||
Total | 1,060,331 | 24,917 | 2,576 | 1,032,838 | ||||||||||||
Allowance for loan losses | 12,383 | 654 | - | 11,729 | ||||||||||||
Net loans | $ | 1,047,948 | $ | 24,263 | $ | 2,576 | $ | 1,021,109 |
December 31, 2017 | Total Loans | Individually evaluated for mpairment | Loans acquired with deteriorated credit quality | Collectively evaluated for impairment | ||||||||||||
Real estate loans: | ||||||||||||||||
Residential | $ | 214,479 | $ | 1,065 | $ | 33 | $ | 213,381 | ||||||||
Commercial | 308,084 | 13,864 | 1,460 | 292,760 | ||||||||||||
Agricultural | 239,957 | 3,901 | 702 | 235,354 | ||||||||||||
Construction | 13,502 | - | - | 13,502 | ||||||||||||
Consumer | 9,944 | 8 | - | 9,936 | ||||||||||||
Other commercial loans | 72,013 | 4,197 | 443 | 67,373 | ||||||||||||
Other agricultural loans | 37,809 | 1,363 | - | 36,446 | ||||||||||||
State and political subdivision loans | 104,737 | - | - | 104,737 | ||||||||||||
Total | 1,000,525 | 24,398 | 2,638 | 973,489 | ||||||||||||
Allowance for loan losses | 11,190 | 410 | - | 10,780 | ||||||||||||
Net loans | $ | 989,335 | $ | 23,988 | $ | 2,638 | $ | 962,709 |
| Three months ended | Nine months ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| 2018 | 2017 | 2018 | 2017 | ||||||||||||
Balance at beginning of period | $ | 59 | $ | 167 | $ | 106 | $ | 389 | ||||||||
Accretion | (24 | ) | (90 | ) | (71 | ) | (312 | ) | ||||||||
Reclassification of non-accretable discount | 93 | - | 93 | - | ||||||||||||
Balance at end of period | $ | 128 | $ | 77 | $ | 128 | $ | 77 |
September 30, 2018 | December 31, 2017 | |||||||
Outstanding balance | $ | 5,340 | $ | 5,295 | ||||
Carrying amount | 2,576 | 2,638 |
| Recorded | Recorded | ||||||||||||||||||
| Unpaid | Investment | Investment | Total | ||||||||||||||||
| Principal | With No | With | Recorded | Related | |||||||||||||||
September 30, 2018 | Balance | Allowance | Allowance | Investment | Allowance | |||||||||||||||
Real estate loans: | ||||||||||||||||||||
Mortgages | $ | 939 | $ | 360 | $ | 466 | $ | 826 | $ | 12 | ||||||||||
Home Equity | 108 | 12 | 77 | 89 | 15 | |||||||||||||||
Commercial | 17,043 | 12,595 | 1,553 | 14,148 | 224 | |||||||||||||||
Agricultural | 5,050 | 1,752 | 3,286 | 5,038 | 86 | |||||||||||||||
Construction | - | - | - | - | - | |||||||||||||||
Consumer | - | - | - | - | - | |||||||||||||||
Other commercial loans | 3,956 | 2,990 | 378 | 3,368 | 152 | |||||||||||||||
Other agricultural loans | 1,498 | 114 | 1,334 | 1,448 | 165 | |||||||||||||||
State and political subdivision loans | - | - | - | - | - | |||||||||||||||
Total | $ | 28,594 | $ | 17,823 | $ | 7,094 | $ | 24,917 | $ | 654 |
Recorded | Recorded | |||||||||||||||||||
Unpaid | Investment | Investment | Total | |||||||||||||||||
| Principal | With No | With | Recorded | Related | |||||||||||||||
December 31, 2017 | Balance | Allowance | Allowance | Investment | Allowance | |||||||||||||||
Real estate loans: | ||||||||||||||||||||
Mortgages | $ | 1,055 | $ | 273 | $ | 700 | $ | 973 | $ | 47 | ||||||||||
Home Equity | 92 | 40 | 52 | 92 | 9 | |||||||||||||||
Commercial | 16,363 | 13,154 | 710 | 13,864 | 94 | |||||||||||||||
Agricultural | 5,231 | 3,283 | 618 | 3,901 | 3 | |||||||||||||||
Construction | - | - | - | - | - | |||||||||||||||
Consumer | 10 | 2 | 6 | 8 | - | |||||||||||||||
Other commercial loans | 4,739 | 3,766 | 431 | 4,197 | 231 | |||||||||||||||
Other agricultural loans | 1,397 | 1,238 | 125 | 1,363 | 26 | |||||||||||||||
State and political subdivision loans | - | - | - | - | - | |||||||||||||||
Total | $ | 28,887 | $ | 21,756 | $ | 2,642 | $ | 24,398 | $ | 410 |
| For the Three Months Ended | |||||||||||||||||||||||
| September 30, 2018 | September 30, 2017 | ||||||||||||||||||||||
| Interest | Interest | ||||||||||||||||||||||
| Average | Interest | Income | Average | Interest | Income | ||||||||||||||||||
| Recorded | Income | Recognized | Recorded | Income | Recognized | ||||||||||||||||||
| Investment | Recognized | Cash Basis | Investment | Recognized | Cash Basis | ||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||
Mortgages | $ | 896 | $ | 3 | $ | - | $ | 741 | $ | 3 | $ | - | ||||||||||||
Home Equity | 92 | 2 | - | 70 | 1 | - | ||||||||||||||||||
Commercial | 14,116 | 130 | 6 | 13,663 | 122 | 2 | ||||||||||||||||||
Agricultural | 5,146 | 24 | - | 3,799 | 27 | - | ||||||||||||||||||
Construction | - | - | - | - | - | - | ||||||||||||||||||
Consumer | - | - | - | 4 | - | - | ||||||||||||||||||
Other commercial loans | 3,495 | 21 | - | 4,337 | 54 | 25 | ||||||||||||||||||
Other agricultural loans | 1,453 | 2 | - | 1,443 | 10 | - | ||||||||||||||||||
State and political subdivision loans | - | - | - | - | - | - | ||||||||||||||||||
Total | $ | 25,198 | $ | 182 | $ | 6 | $ | 24,057 | $ | 217 | $ | 27 |
| For the Nine Months ended | |||||||||||||||||||||||
| September 30, 2018 | September 30, 2017 | ||||||||||||||||||||||
| Interest | Interest | ||||||||||||||||||||||
| Average | Interest | Income | Average | Interest | Income | ||||||||||||||||||
| Recorded | Income | Recognized | Recorded | Income | Recognized | ||||||||||||||||||
| Investment | Recognized | Cash Basis | Investment | Recognized | Cash Basis | ||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||
Mortgages | $ | 988 | $ | 10 | $ | - | $ | 874 | $ | 9 | $ | - | ||||||||||||
Home Equity | 98 | 4 | - | 62 | 3 | - | ||||||||||||||||||
Commercial | 13,915 | 372 | 14 | 10,812 | 280 | 5 | ||||||||||||||||||
Agricultural | 4,472 | 124 | - | 3,609 | 90 | - | ||||||||||||||||||
Construction | - | - | - | - | - | - | ||||||||||||||||||
Consumer | 2 | - | - | 2 | - | - | ||||||||||||||||||
Other commercial loans | 3,906 | 73 | - | 4,988 | 131 | 52 | ||||||||||||||||||
Other agricultural loans | 1,388 | 21 | - | 1,528 | 55 | - | ||||||||||||||||||
State and political subdivision loans | - | - | - | - | - | - | ||||||||||||||||||
Total | $ | 24,769 | $ | 604 | $ | 14 | $ | 21,875 | $ | 568 | $ | 57 |
· | Pass (Grades 1-5) – These loans are to customers with credit quality ranging from an acceptable to very high quality and are protected by the current net worth and paying capacity of the obligor or by the value of the underlying collateral. |
· | Special Mention (Grade 6) – This loan grade is in accordance with regulatory guidance and includes loans where a potential weakness or risk exists, which could cause a more serious problem if not corrected. |
· | Substandard (Grade 7) – This loan grade is in accordance with regulatory guidance and includes loans that have a well-defined weakness based on objective evidence and be characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. |
· | Doubtful (Grade 8) – This loan grade is in accordance with regulatory guidance and includes loans that have all the weaknesses inherent in a substandard asset. In addition, these weaknesses make collection or liquidation in full highly questionable and improbable, based on existing circumstances. |
· | Loss (Grade 9) – This loan grade is in accordance with regulatory guidance and includes loans that are considered uncollectible, or of such value that continuance as an asset is not warranted. |
September 30, 2018 | Pass | Special Mention | Substandard | Doubtful | Loss | Ending Balance | ||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||
Commercial | $ | 289,909 | $ | 12,540 | $ | 10,415 | $ | 118 | $ | - | $ | 312,982 | ||||||||||||
Agricultural | 260,554 | 14,619 | 5,396 | - | - | 280,569 | ||||||||||||||||||
Construction | 30,262 | - | - | - | - | 30,262 | ||||||||||||||||||
Other commercial loans | 68,449 | 732 | 2,918 | 120 | - | 72,219 | ||||||||||||||||||
Other agricultural loans | 36,320 | 2,288 | 1,309 | - | - | 39,917 | ||||||||||||||||||
State and political | ||||||||||||||||||||||||
subdivision loans | 91,136 | 9,686 | 603 | - | - | 101,425 | ||||||||||||||||||
Total | $ | 776,630 | $ | 39,865 | $ | 20,641 | $ | 238 | $ | - | $ | 837,374 |
December 31, 2017 | Pass | Special Mention | Substandard | Doubtful | Loss | Ending Balance | ||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||
Commercial | $ | 281,742 | $ | 15,029 | $ | 11,271 | $ | 42 | $ | - | $ | 308,084 | ||||||||||||
Agricultural | 222,198 | 11,538 | 6,221 | - | - | 239,957 | ||||||||||||||||||
Construction | 13,364 | - | 138 | - | - | 13,502 | ||||||||||||||||||
Other commercial loans | 67,706 | 615 | 3,567 |