Ohio
|
31-1359191
|
(State of Incorporation)
|
(I.R.S. Employer Identification No.)
|
420 Third Avenue
|
|
Gallipolis, Ohio
|
45631
|
(Address of principal executive offices)
|
(ZIP Code)
|
Large accelerated filer
|
o
|
Accelerated filer
|
x
|
|
Non-accelerated filer
|
o
|
Smaller reporting company
|
o
|
Page Number
|
||
PART I.
|
FINANCIAL INFORMATION
|
|
Item 1.
|
Financial Statements (Unaudited)
|
|
Consolidated Balance Sheets
|
3
|
|
Condensed Consolidated Statements of Income
|
4
|
|
Consolidated Statements of Comprehensive Income
|
5
|
|
Condensed Consolidated Statements of Changes in Shareholders’ Equity
|
6
|
|
Condensed Consolidated Statements of Cash Flows
|
7
|
|
Notes to the Consolidated Financial Statements
|
8
|
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
25
|
Item 3.
|
Quantitative and Qualitative Disclosure About Market Risk
|
42
|
Item 4.
|
Controls and Procedures
|
42
|
PART II.
|
OTHER INFORMATION
|
|
Item 1.
|
Legal Proceedings
|
43
|
Item 1A.
|
Risk Factors
|
43
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
43
|
Item 3.
|
Defaults Upon Securities
|
43
|
Item 4.
|
Mine Safety Disclosures
|
43
|
Item 5.
|
Other Information
|
44
|
Item 6.
|
Exhibits
|
44
|
Signatures
|
45
|
|
Exhibit Index
|
46
|
OHIO VALLEY BANC CORP.
CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except share data)
|
June 30,
2013
|
December 31,
2012
|
|||||||
UNAUDITED
|
||||||||
ASSETS
|
||||||||
Cash and noninterest-bearing deposits with banks
|
$ | 8,817 | $ | 10,617 | ||||
Interest-bearing deposits with banks
|
31,157 | 35,034 | ||||||
Total cash and cash equivalents
|
39,974 | 45,651 | ||||||
Securities available for sale
|
89,949 | 94,965 | ||||||
Securities held to maturity
(estimated fair value: 2013 - $23,920; 2012 - $24,624)
|
23,746 | 23,511 | ||||||
Federal Home Loan Bank and Federal Reserve Bank stock
|
7,776 | 6,281 | ||||||
Total loans
|
551,445 | 558,288 | ||||||
Less: Allowance for loan losses
|
(6,468 | ) | (6,905 | ) | ||||
Net loans
|
544,977 | 551,383 | ||||||
Premises and equipment, net
|
8,438 | 8,680 | ||||||
Other real estate owned
|
2,925 | 3,667 | ||||||
Accrued interest receivable
|
2,044 | 2,057 | ||||||
Goodwill
|
1,267 | 1,267 | ||||||
Bank owned life insurance and annuity assets
|
24,650 | 25,056 | ||||||
Other assets
|
6,366 | 6,705 | ||||||
Total assets
|
$ | 752,112 | $ | 769,223 | ||||
LIABILITIES
|
||||||||
Noninterest-bearing deposits
|
$ | 144,476 | $ | 139,526 | ||||
Interest-bearing deposits
|
490,081 | 515,538 | ||||||
Total deposits
|
634,557 | 655,064 | ||||||
Other borrowed funds
|
19,764 | 14,285 | ||||||
Subordinated debentures
|
8,500 | 13,500 | ||||||
Accrued liabilities
|
11,150 | 10,554 | ||||||
Total liabilities
|
673,971 | 693,403 | ||||||
COMMITMENTS AND CONTINGENT LIABILITIES (See Note 5)
|
---- | ---- | ||||||
SHAREHOLDERS’ EQUITY
|
||||||||
Common stock ($1.00 stated value per share, 10,000,000 shares
authorized; 4,721,943 shares issued)
|
4,722 | 4,722 | ||||||
Additional paid-in capital
|
34,109 | 34,109 | ||||||
Retained earnings
|
55,000 | 51,094 | ||||||
Accumulated other comprehensive income
|
22 | 1,607 | ||||||
Treasury stock, at cost (659,739 shares)
|
(15,712 | ) | (15,712 | ) | ||||
Total shareholders’ equity
|
78,141 | 75,820 | ||||||
Total liabilities and shareholders’ equity
|
$ | 752,112 | $ | 769,223 |
OHIO VALLEY BANC CORP.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(dollars in thousands, except per share data)
|
Three months ended
June 30,
|
Six months ended
June 30,
|
|||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
Interest and dividend income:
|
||||||||||||||||
Loans, including fees
|
$ | 8,169 | $ | 8,933 | $ | 17,086 | $ | 18,897 | ||||||||
Securities
|
||||||||||||||||
Taxable
|
315 | 446 | 615 | 872 | ||||||||||||
Tax exempt
|
145 | 148 | 289 | 293 | ||||||||||||
Dividends
|
81 | 67 | 148 | 138 | ||||||||||||
Other Interest
|
54 | 63 | 106 | 122 | ||||||||||||
8,764 | 9,657 | 18,244 | 20,322 | |||||||||||||
Interest expense:
|
||||||||||||||||
Deposits
|
789 | 1,302 | 1,628 | 2,676 | ||||||||||||
Other borrowed funds
|
92 | 123 | 173 | 248 | ||||||||||||
Subordinated debentures
|
42 | 179 | 181 | 433 | ||||||||||||
923 | 1,604 | 1,982 | 3,357 | |||||||||||||
Net interest income
|
7,841 | 8,053 | 16,262 | 16,965 | ||||||||||||
Provision for loan losses
|
(189 | ) | 524 | (158 | ) | 1,840 | ||||||||||
Net interest income after provision for loan losses
|
8,030 | 7,529 | 16,420 | 15,125 | ||||||||||||
Noninterest income:
|
||||||||||||||||
Service charges on deposit accounts
|
444 | 460 | 868 | 910 | ||||||||||||
Trust fees
|
51 | 51 | 102 | 100 | ||||||||||||
Income from bank owned life insurance and annuity assets
|
172 | 200 | 803 | 394 | ||||||||||||
Mortgage banking income
|
109 | 135 | 246 | 232 | ||||||||||||
Electronic refund check / deposit fees
|
406 | 226 | 2,511 | 2,264 | ||||||||||||
Debit / credit card interchange income
|
493 | 421 | 945 | 816 | ||||||||||||
Gain (loss) on other real estate owned
|
25 | 143 | (40 | ) | 151 | |||||||||||
Other
|
265 | 338 | 470 | 586 | ||||||||||||
1,965 | 1,974 | 5,905 | 5,453 | |||||||||||||
Noninterest expense:
|
||||||||||||||||
Salaries and employee benefits
|
4,367 | 4,185 | 8,806 | 8,453 | ||||||||||||
Occupancy
|
387 | 383 | 781 | 785 | ||||||||||||
Furniture and equipment
|
208 | 235 | 434 | 472 | ||||||||||||
FDIC insurance
|
117 | 275 | 261 | 566 | ||||||||||||
Data processing
|
281 | 229 | 562 | 508 | ||||||||||||
Foreclosed assets
|
44 | 65 | 339 | 175 | ||||||||||||
Other
|
1,913 | 1,790 | 4,082 | 3,535 | ||||||||||||
7,317 | 7,162 | 15,265 | 14,494 | |||||||||||||
Income before income taxes
|
2,678 | 2,341 | 7,060 | 6,084 | ||||||||||||
Provision for income taxes
|
736 | 622 | 1,895 | 1,743 | ||||||||||||
NET INCOME
|
$ | 1,942 | $ | 1,719 | $ | 5,165 | $ | 4,341 | ||||||||
Earnings per share
|
$ | .48 | $ | .43 | $ | 1.27 | $ | 1.08 |
OHIO VALLEY BANC CORP.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
(dollars in thousands)
|
||||||||||||||||
Three months ended
June 30,
|
Six months ended
June 30,
|
|||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
Net Income
|
$ | 1,942 | $ | 1,719 | $ | 5,165 | $ | 4,341 | ||||||||
Other comprehensive income (loss):
|
||||||||||||||||
Change in unrealized gain on available for sale securities
|
(2,275 | ) | 486 | (2,401 | ) | 644 | ||||||||||
Related tax (expense) benefit
|
773 | (165 | ) | 816 | (219 | ) | ||||||||||
Total other comprehensive income (loss), net of tax
|
(1,502 | ) | 321 | (1,585 | ) | 425 | ||||||||||
Total comprehensive income
|
$ | 440 | $ | 2,040 | $ | 3,580 | $ | 4,766 |
OHIO VALLEY BANC CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES
IN SHAREHOLDERS’ EQUITY (UNAUDITED)
(dollars in thousands, except share and per share data)
|
||||||||||||||||
Three months ended
June 30,
|
Six months ended
June 30,
|
|||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
Balance at beginning of period
|
$ | 78,554 | $ | 73,779 | $ | 75,820 | $ | 71,843 | ||||||||
Net income
|
1,942 | 1,719 | 5,165 | 4,341 | ||||||||||||
Other comprehensive income (loss), net of tax
|
(1,502 | ) | 321 | (1,585 | ) | 425 | ||||||||||
Proceeds from issuance of common stock through dividend
reinvestment plan
|
---- | ---- | ---- | 55 | ||||||||||||
Cash dividends
|
(853 | ) | (1,008 | ) | (1,259 | ) | (1,853 | ) | ||||||||
Balance at end of period
|
$ | 78,141 | $ | 74,811 | $ | 78,141 | $ | 74,811 | ||||||||
Cash dividends per share
|
$ | .21 | $ | .25 | $ | .31 | $ | .46 |
OHIO VALLEY BANC CORP.
CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS (UNAUDITED)
(dollars in thousands)
|
||||||||
Six months ended
June 30,
|
||||||||
2013
|
2012
|
|||||||
Net cash provided by operating activities:
|
$ | 7,212 | $ | 6,116 | ||||
Investing activities:
|
||||||||
Proceeds from maturities of securities available for sale
|
14,893 | 17,755 | ||||||
Purchases of securities available for sale
|
(13,089 | ) | (25,814 | ) | ||||
Proceeds from maturities of securities held to maturity
|
467 | 989 | ||||||
Purchases of securities held to maturity
|
(735 | ) | (2,435 | ) | ||||
Purchase of Federal Reserve Bank stock
|
(1,495 | ) | ---- | |||||
Net change in loans
|
6,345 | 32,242 | ||||||
Proceeds from sale of other real estate owned
|
922 | 1,450 | ||||||
Purchases of premises and equipment
|
(159 | ) | (227 | ) | ||||
Purchases of bank owned life insurance
|
---- | (1,271 | ) | |||||
Proceeds from bank owned life insurance
|
1,249 | ---- | ||||||
Net cash provided by investing activities
|
8,398 | 22,689 | ||||||
Financing activities:
|
||||||||
Change in deposits
|
(20,507 | ) | (4,707 | ) | ||||
Proceeds from common stock through dividend reinvestment plan
|
---- | 55 | ||||||
Cash dividends
|
(1,259 | ) | (1,853 | ) | ||||
Repayment of subordinated debentures
|
(5,000 | ) | ---- | |||||
Proceeds from Federal Home Loan Bank borrowings
|
5,853 | 500 | ||||||
Repayment of Federal Home Loan Bank borrowings
|
(377 | ) | (407 | ) | ||||
Change in other short-term borrowings
|
3 | (300 | ) | |||||
Net cash provided by financing activities
|
(21,287 | ) | (6,712 | ) | ||||
Change in cash and cash equivalents
|
(5,677 | ) | 22,093 | |||||
Cash and cash equivalents at beginning of period
|
45,651 | 51,630 | ||||||
Cash and cash equivalents at end of period
|
$ | 39,974 | $ | 73,723 | ||||
Supplemental disclosure:
|
||||||||
Cash paid for interest
|
$ | 2,273 | $ | 3,530 | ||||
Cash paid for income taxes
|
1,920 | 2,790 | ||||||
Transfers from loans to other real estate owned
|
219 | 335 | ||||||
Other real estate owned sales financed by the Bank
|
256 | 930 |
Fair Value Measurements at June 30, 2013, Using
|
||||||||||||
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
Significant Other Observable
Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
|||||||||
Assets:
|
||||||||||||
U.S. Government sponsored entity securities
|
---- | $ | 8,788 | ---- | ||||||||
Agency mortgage-backed securities, residential
|
---- | 81,161 | ---- |
Fair Value Measurements at December 31, 2012, Using
|
||||||||||||
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
Significant Other Observable
Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
||||||||||
Assets:
|
||||||||||||
U.S. Government sponsored entity securities
|
---- | $ | 1,012 | ---- | ||||||||
Agency mortgage-backed securities, residential
|
---- | 93,953 | ---- |
Fair Value Measurements at June 30, 2013, Using
|
||||||||||||
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
Significant Other Observable
Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
|||||||||
Assets:
|
||||||||||||
Impaired loans:
|
||||||||||||
Commercial and industrial
|
---- | ---- | $ | 3,282 | ||||||||
Other real estate owned:
|
||||||||||||
Commercial and industrial
|
---- | ---- | 982 |
Fair Value Measurements at December 31, 2012, Using
|
||||||||||||
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
Significant Other Observable
Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
|||||||||
Assets:
|
||||||||||||
Other real estate owned:
|
||||||||||||
Commercial real estate:
|
||||||||||||
Construction
|
---- | ---- | $ | 1,562 | ||||||||
Commercial and industrial
|
---- | ---- | 1,055 |
June 30, 2013
|
Fair Value
|
Valuation Technique(s)
|
Unobservable Input(s)
|
Range
|
(Weighted Average)
|
||||||
Impaired loans:
|
|||||||||||
Commercial and industrial
|
$ | 3,282 |
Sales approach
|
Adjustment to comparables
|
From 10% to 80%
|
35% | |||||
Other real estate owned:
|
|||||||||||
Commercial and industrial
|
982 |
Sales approach
|
Adjustment to comparables
|
10%
|
10% |
December 31, 2012
|
Fair Value
|
Valuation Technique(s)
|
Unobservable Input(s)
|
Range
|
(Weighted Average)
|
|||||||
Other real estate owned:
|
||||||||||||
Commercial real estate:
|
||||||||||||
Construction
|
$ | 1,562 |
Sales approach
|
Adjustment to comparables
|
15% | 15% | ||||||
Commercial and industrial
|
1,055 |
Sales approach
|
Adjustment to comparables
|
15% | 15% |
Fair Value Measurements at June 30, 2013 Using:
|
Carrying
Value
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||
Financial Assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 39,974 | $ | 39,974 | $ | ---- | $ | ---- | $ | 39,974 | ||||||||||
Securities available for sale
|
89,949 | ---- | 89,949 | ---- | 89,949 | |||||||||||||||
Securities held to maturity
|
23,746 | ---- | 11,172 | 12,748 | 23,920 | |||||||||||||||
Federal Home Loan Bank and
|
||||||||||||||||||||
Federal Reserve Bank stock
|
7,776 | N/A | N/A | N/A | N/A | |||||||||||||||
Loans, net
|
544,977 | ---- | ---- | 548,093 | 548,093 | |||||||||||||||
Accrued interest receivable
|
2,044 | ---- | 304 | 1,740 | 2,044 | |||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Deposits
|
634,557 | 144,116 | 491,413 | ---- | 635,529 | |||||||||||||||
Other borrowed funds
|
19,764 | ---- | 19,131 | ---- | 19,131 | |||||||||||||||
Subordinated debentures
|
8,500 | ---- | 4,892 | ---- | 4,892 | |||||||||||||||
Accrued interest payable
|
1,086 | 3 | 1,083 | ---- | 1,086 |
Fair Value Measurements at December 31, 2012 Using:
|
||||||||||||||||||||
Carrying
Value
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||
Financial Assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 45,651 | $ | 45,651 | $ | ---- | $ | ---- | $ | 45,651 | ||||||||||
Securities available for sale
|
94,965 | ---- | 94,965 | ---- | 94,965 | |||||||||||||||
Securities held to maturity
|
23,511 | ---- | 11,569 | 13,055 | 24,624 | |||||||||||||||
Federal Home Loan Bank stock
|
6,281 | N/A | N/A | N/A | N/A | |||||||||||||||
Loans, net
|
551,383 | ---- | ---- | 564,059 | 564,059 | |||||||||||||||
Accrued interest receivable
|
2,057 | ---- | 283 | 1,774 | 2,057 | |||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Deposits
|
655,064 | 139,526 | 517,680 | ---- | 657,206 | |||||||||||||||
Other borrowed funds
|
14,285 | ---- | 14,536 | ---- | 14,536 | |||||||||||||||
Subordinated debentures
|
13,500 | ---- | 10,146 | ---- | 10,146 | |||||||||||||||
Accrued interest payable
|
1,377 | 2 | 1,375 | ---- | 1,377 |
Securities Available for Sale
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Estimated
Fair Value
|
||||||||||||
June 30, 2013
|
||||||||||||||||
U.S. Government sponsored entity securities
|
$ | 9,031 | $ | ---- | $ | (243 | ) | $ | 8,788 | |||||||
Agency mortgage-backed securities, residential
|
80,884 | 1,109 | (832 | ) | 81,161 | |||||||||||
Total securities
|
$ | 89,915 | $ | 1,109 | $ | (1,075 | ) | $ | 89,949 | |||||||
December 31, 2012
|
||||||||||||||||
U.S. Government sponsored entity securities
|
$ | 1,009 | $ | 3 | $ | ---- | $ | 1,012 | ||||||||
Agency mortgage-backed securities, residential
|
91,521 | 2,432 | ---- | 93,953 | ||||||||||||
Total securities
|
$ | 92,530 | $ | 2,435 | $ | ---- | $ | 94,965 |
Securities Held to Maturity
|
Amortized
Cost
|
Gross Unrecognized Gains
|
Gross Unrecognized Losses
|
Estimated
Fair Value
|
||||||||||||
June 30, 2013
|
||||||||||||||||
Obligations of states and political subdivisions
|
$ | 23,732 | $ | 599 | $ | (425 | ) | $ | 23,906 | |||||||
Agency mortgage-backed securities, residential
|
14 | ---- | ---- | 14 | ||||||||||||
Total securities
|
$ | 23,746 | $ | 599 | $ | (425 | ) | $ | 23,920 | |||||||
December 31, 2012
|
||||||||||||||||
Obligations of states and political subdivisions
|
$ | 23,494 | $ | 1,178 | $ | (65 | ) | $ | 24,607 | |||||||
Agency mortgage-backed securities, residential
|
17 | ---- | ---- | 17 | ||||||||||||
Total securities
|
$ | 23,511 | $ | 1,178 | $ | (65 | ) | $ | 24,624 |
Available for Sale
|
Held to Maturity
|
|||||||||||||||
Debt Securities:
|
Amortized
Cost
|
Estimated
Fair Value
|
Amortized
Cost
|
Estimated
Fair Value
|
||||||||||||
Due in one year or less
|
$ | ---- | $ | ---- | $ | ---- | $ | ---- | ||||||||
Due in over one to five years
|
9,031 | 8,788 | 6,322 | 6,625 | ||||||||||||
Due in over five to ten years
|
---- | ---- | 9,425 | 9,353 | ||||||||||||
Due after ten years
|
---- | ---- | 7,985 | 7,928 | ||||||||||||
Agency mortgage-backed securities, residential
|
80,884 | 81,161 | 14 | 14 | ||||||||||||
Total debt securities
|
$ | 89,915 | $ | 89,949 | $ | 23,746 | $ | 23,920 |
Less Than 12 Months
|
12 Months or More
|
Total
|
June 30, 2013
|
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
||||||||||||||||||
Securities Available for Sale
|
||||||||||||||||||||||||
U.S. Government sponsored
|
||||||||||||||||||||||||
entity securities
|
$ | 7,780 | $ | (243 | ) | $ | ---- | $ | ---- | $ | 7,780 | $ | (243 | ) | ||||||||||
Agency mortgage-backed
|
||||||||||||||||||||||||
securities, residential
|
36,815 | (832 | ) | ---- | ---- | 36,815 | (832 | ) | ||||||||||||||||
Total available for sale
|
$ | 44,595 | $ | (1,075 | ) | $ | ---- | $ | ---- | $ | 44,595 | $ | (1,075 | ) |
Less Than 12 Months
|
12 Months or More
|
Total
|
Fair
Value
|
Unrecognized Loss
|
Fair
Value
|
Unrecognized Loss
|
Fair
Value
|
Unrecognized Loss
|
|||||||||||||||||||
Securities Held to Maturity
|
||||||||||||||||||||||||
Obligations of states and
|
||||||||||||||||||||||||
political subdivisions
|
$ | 8,427 | $ | (404 | ) | $ | 242 | $ | (21 | ) | $ | 8,669 | $ | (425 | ) | |||||||||
Total held to maturity
|
$ | 8,427 | $ | (404 | ) | $ | 242 | $ | (21 | ) | $ | 8,669 | $ | (425 | ) |
Less Than 12 Months
|
12 Months or More
|
Total
|
December 31, 2012
|
Fair
Value
|
Unrecognized Loss
|
Fair
Value
|
Unrecognized Loss
|
Fair
Value
|
Unrecognized Loss
|
||||||||||||||||||
Securities Held to Maturity
|
||||||||||||||||||||||||
Obligations of states and
|
||||||||||||||||||||||||
political subdivisions
|
$ | 2,018 | $ | (63 | ) | $ | 260 | $ | (2 | ) | $ | 2,278 | $ | (65 | ) | |||||||||
Total held to maturity
|
$ | 2,018 | $ | (63 | ) | $ | 260 | $ | (2 | ) | $ | 2,278 | $ | (65 | ) |
Loans are comprised of the following:
|
June 30,
|
December 31,
|
||||||
2013
|
2012
|
|||||||
Residential real estate
|
$ | 220,290 | $ | 226,022 | ||||
Commercial real estate:
|
||||||||
Owner-occupied
|
99,232 | 104,842 | ||||||
Nonowner-occupied
|
53,759 | 52,792 | ||||||
Construction
|
21,308 | 17,376 | ||||||
Commercial and industrial
|
58,299 | 57,239 | ||||||
Consumer:
|
||||||||
Automobile
|
40,104 | 41,168 | ||||||
Home equity
|
18,223 | 18,332 | ||||||
Other
|
40,230 | 40,517 | ||||||
551,445 | 558,288 | |||||||
Less: Allowance for loan losses
|
6,468 | 6,905 | ||||||
Loans, net
|
$ | 544,977 | $ | 551,383 |
June 30, 2013
|
Residential
Real Estate
|
Commercial
Real Estate
|
Commercial
and Industrial
|
Consumer
|
Total
|
|||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||
Beginning balance
|
$ | 1,314 | $ | 3,744 | $ | 761 | $ | 853 | $ | 6,672 | ||||||||||
Provision for loan losses
|
(182 | ) | (715 | ) | 565 | 143 | (189 | ) | ||||||||||||
Loans charged off
|
(100 | ) | ---- | ---- | (284 | ) | (384 | ) | ||||||||||||
Recoveries
|
160 | 5 | 16 | 188 | 369 | |||||||||||||||
Total ending allowance balance
|
$ | 1,192 | $ | 3,034 | $ | 1,342 | $ | 900 | $ | 6,468 |
June 30, 2012
|
Residential
Real Estate
|
Commercial
Real Estate
|
Commercial
and Industrial
|
Consumer
|
Total
|
|||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||
Beginning balance
|
$ | 1,491 | $ | 3,423 | $ | 623 | $ | 1,310 | $ | 6,847 | ||||||||||
Provision for loan losses
|
18 | 1,004 | (319 | ) | (179 | ) | 524 | |||||||||||||
Loans charged-off
|
(85 | ) | (62 | ) | ---- | (298 | ) | (445 | ) | |||||||||||
Recoveries
|
19 | 4 | 349 | 229 | 601 | |||||||||||||||
Total ending allowance balance
|
$ | 1,443 | $ | 4,369 | $ | 653 | $ | 1,062 | $ | 7,527 |
June 30, 2013
|
Residential
Real Estate
|
Commercial
Real Estate
|
Commercial
and Industrial
|
Consumer
|
Total
|
|||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||
Beginning balance
|
$ | 1,329 | $ | 3,946 | $ | 783 | $ | 847 | $ | 6,905 | ||||||||||
Provision for loan losses
|
145 | (1,193 | ) | 532 | 358 | (158 | ) | |||||||||||||
Loans charged off
|
(457 | ) | (2 | ) | ---- | (721 | ) | (1,180 | ) | |||||||||||
Recoveries
|
175 | 283 | 27 | 416 | 901 | |||||||||||||||
Total ending allowance balance
|
$ | 1,192 | $ | 3,034 | $ | 1,342 | $ | 900 | $ | 6,468 |
June 30, 2012
|
Residential
Real Estate
|
Commercial
Real Estate
|
Commercial
and Industrial
|
Consumer
|
Total
|
|||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||
Beginning balance
|
$ | 1,730 | $ | 3,623 | $ | 636 | $ | 1,355 | $ | 7,344 | ||||||||||
Provision for loan losses
|
295 | 1,896 | (407 | ) | 56 | 1,840 | ||||||||||||||
Loans charged-off
|
(678 | ) | (1,158 | ) | (70 | ) | (817 | ) | (2,723 | ) | ||||||||||
Recoveries
|
96 | 8 | 494 | 468 | 1,066 | |||||||||||||||
Total ending allowance balance
|
$ | 1,443 | $ | 4,369 | $ | 653 | $ | 1,062 | $ | 7,527 |
June 30, 2013
|
Residential
Real Estate
|
Commercial
Real Estate
|
Commercial
and Industrial
|
Consumer
|
Total
|
|||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||
Ending allowance balance attributable to loans:
|
||||||||||||||||||||
Individually evaluated for impairment
|
$ | 123 | $ | 1,476 | $ | 878 | $ | ---- | $ | 2,477 | ||||||||||
Collectively evaluated for impairment
|
1,069 | 1,558 | 464 | 900 | 3,991 | |||||||||||||||
Total ending allowance balance
|
$ | 1,192 | $ | 3,034 | $ | 1,342 | $ | 900 | $ | 6,468 | ||||||||||
Loans:
|
||||||||||||||||||||
Loans individually evaluated for impairment
|
$ | 916 | $ | 10,968 | $ | 3,518 | $ | ---- | $ | 15,402 | ||||||||||
Loans collectively evaluated for impairment
|
219,374 | 163,331 | 54,781 | 98,557 | 536,043 | |||||||||||||||
Total ending loans balance
|
$ | 220,290 | $ | 174,299 | $ | 58,299 | $ | 98,557 | $ | 551,445 |
December 31, 2012
|
Residential
Real Estate
|
Commercial
Real Estate
|
Commercial
and Industrial
|
Consumer
|
Total
|
|||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||
Ending allowance balance attributable to loans:
|
||||||||||||||||||||
Individually evaluated for impairment
|
$ | 128 | $ | 1,979 | $ | ---- | $ | ---- | $ | 2,107 | ||||||||||
Collectively evaluated for impairment
|
1,201 | 1,967 | 783 | 847 | 4,798 | |||||||||||||||
Total ending allowance balance
|
$ | 1,329 | $ | 3,946 | $ | 783 | $ | 847 | $ | 6,905 | ||||||||||
Loans:
|
||||||||||||||||||||
Loans individually evaluated for impairment
|
$ | 827 | $ | 16,354 | $ | ---- | $ | 220 | $ | 17,401 | ||||||||||
Loans collectively evaluated for impairment
|
225,195 | 158,656 | 57,239 | 99,797 | 540,887 | |||||||||||||||
Total ending loans balance
|
$ | 226,022 | $ | 175,010 | $ | 57,239 | $ | 100,017 | $ | 558,288 |
Six months ended June 30, 2013
|
Unpaid Principal Balance
|
Recorded
Investment
|
Allowance for Loan Losses Allocated
|
Average Impaired Loans
|
Interest Income Recognized
|
Cash Basis Interest Recognized
|
||||||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||||||
Residential real estate
|
$ | 490 | $ | 490 | $ | ---- | $ | 481 | $ | 13 | $ | 13 | ||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||
Owner-occupied
|
1,485 | 1,483 | ---- | 1,362 | 22 | 22 | ||||||||||||||||||
Nonowner-occupied
|
6,849 | 6,049 | ---- | 6,717 | 186 | 186 | ||||||||||||||||||
Commercial and industrial
|
2,376 | 2,376 | ---- | 792 | 23 | 23 | ||||||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||||||
Residential real estate
|
426 | 426 | 123 | 424 | 8 | 8 | ||||||||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||
Nonowner-occupied
|
3,436 | 3,436 | 1,476 | 3,450 | 53 | 53 | ||||||||||||||||||
Commercial and industrial
|
1,142 | 1,142 | 878 | 381 | 45 | 45 | ||||||||||||||||||
Total
|
$ | 16,204 | $ | 15,402 | $ | 2,477 | $ | 13,607 | $ | 350 | $ | 350 |
Six months ended June 30, 2012
|
Unpaid Principal Balance
|
Recorded
Investment
|
Allowance for Loan Losses Allocated
|
Average Impaired Loans
|
Interest Income Recognized
|
Cash Basis Interest Recognized
|
||||||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||||||
Residential real estate
|
$ | 1,174 | $ | 1,034 | $ | ---- | $ | 886 | $ | 18 | $ | 13 | ||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||
Owner-occupied
|
7,410 | 7,159 | ---- | 5,631 | 264 | 244 | ||||||||||||||||||
Nonowner-occupied
|
1,790 | 889 | ---- | 934 | 24 | 23 | ||||||||||||||||||
Construction
|
675 | 395 | ---- | 488 | 6 | 6 | ||||||||||||||||||
Consumer:
|
||||||||||||||||||||||||
Automobile
|
22 | 22 | ---- | 15 | 1 | 1 | ||||||||||||||||||
Home equity
|
220 | 220 | ---- | 147 | 5 | 5 | ||||||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||||||
Residential real estate
|
420 | 420 | 128 | 420 | 17 | 13 | ||||||||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||
Owner-occupied
|
3,614 | 3,614 | 1,207 | 3,529 | 77 | 69 | ||||||||||||||||||
Nonowner-occupied
|
1,298 | 1,047 | 638 | 1,198 | 18 | 17 | ||||||||||||||||||
Total
|
$ | 16,623 | $ | 14,800 | $ | 1,973 | $ | 13,248 | $ | 430 | $ | 391 |
Year ended December 31, 2012
|
Unpaid Principal Balance
|
Recorded
Investment
|
Allowance for Loan Losses Allocated
|
Average Impaired Loans
|
Interest Income Recognized
|
Cash Basis Interest Recognized
|
||||||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||||||
Residential real estate
|
$ | 619 | $ | 407 | $ | ---- | $ | 493 | $ | ---- | $ | ---- | ||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||
Owner-occupied
|
5,528 | 5,528 | ---- | 4,729 | 338 | 338 | ||||||||||||||||||
Nonowner-occupied
|
10,085 | 8,847 | ---- | 4,767 | 456 | 456 | ||||||||||||||||||
Commercial and industrial
|
426 | ---- | ---- | ---- | ---- | ---- | ||||||||||||||||||
Consumer:
|
||||||||||||||||||||||||
Home equity
|
220 | 220 | ---- | 176 | 9 | 9 | ||||||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||||||
Residential real estate
|
420 | 420 | 128 | 420 | 23 | 23 | ||||||||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||
Nonowner-occupied
|
1,979 | 1,979 | 1,979 | 1,132 | 38 | 38 | ||||||||||||||||||
Total
|
$ | 19,277 | $ | 17,401 | $ | 2,107 | $ | 11,717 | $ | 864 | $ | 864 |
June 30, 2013
|
Loans Past Due
90 Days And
Still Accruing
|
Nonaccrual
|
||||||
Residential real estate
|
$ | 381 | $ | 2,632 | ||||
Commercial real estate:
|
||||||||
Owner-occupied
|
---- | 1,085 | ||||||
Nonowner-occupied
|
---- | 52 | ||||||
Consumer:
|
||||||||
Automobile
|
8 | 4 | ||||||
Home equity
|
58 | ---- | ||||||
Other
|
1 | 3 | ||||||
Total
|
$ | 448 | $ | 3,776 |
December 31, 2012
|
Loans Past Due
90 Days And
Still Accruing
|
Nonaccrual
|
||||||
Residential real estate
|
$ | 341 | $ | 2,533 | ||||
Commercial real estate:
|
||||||||
Owner-occupied
|
---- | 675 | ||||||
Nonowner-occupied
|
---- | 352 | ||||||
Consumer:
|
||||||||
Automobile
|
11 | 4 | ||||||
Home equity
|
---- | 62 | ||||||
Other
|
7 | ---- | ||||||
Total
|
$ | 359 | $ | 3,626 |
June 30, 2013
|
30-59
Days
Past Due
|
60-89
Days
Past Due
|
90 Days
Or More
Past Due
|
Total
Past Due
|
Loans Not
Past Due
|
Total
|
||||||||||||||||||
Residential real estate
|
$ | 4,420 | $ | 1,179 | $ | 3,003 | $ | 8,602 | $ | 211,688 | $ | 220,290 | ||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||
Owner-occupied
|
38 | ---- | 1,085 | 1,123 | 98,109 | 99,232 | ||||||||||||||||||
Nonowner-occupied
|
---- | ---- | 52 | 52 | 53,707 | 53,759 | ||||||||||||||||||
Construction
|
---- | ---- | ---- | ---- | 21,308 | 21,308 | ||||||||||||||||||
Commercial and industrial
|
61 | ---- | ---- | 61 | 58,238 | 58,299 | ||||||||||||||||||
Consumer:
|
||||||||||||||||||||||||
Automobile
|
540 | 139 | 9 | 688 | 39,416 | 40,104 | ||||||||||||||||||
Home equity
|
116 | 33 | 58 | 207 | 18,016 | 18,223 | ||||||||||||||||||
Other
|
491 | 61 | 4 | 556 | 39,674 | 40,230 | ||||||||||||||||||
Total
|
$ | 5,666 | $ | 1,412 | $ | 4,211 | $ | 11,289 | $ | 540,156 | $ | 551,445 |
December 31, 2012
|
30-59
Days
Past Due
|
60-89
Days
Past Due
|
90 Days
Or More
Past Due
|
Total
Past Due
|
Loans Not
Past Due
|
Total
|
||||||||||||||||||
Residential real estate
|
$ | 5,525 | $ | 1,033 | $ | 2,797 | $ | 9,355 | $ | 216,667 | $ | 226,022 | ||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||
Owner-occupied
|
753 | 111 | 675 | 1,539 | 103,303 | 104,842 | ||||||||||||||||||
Nonowner-occupied
|
---- | ---- | 352 | 352 | 52,440 | 52,792 | ||||||||||||||||||
Construction
|
---- | ---- | ---- | ---- | 17,376 | 17,376 | ||||||||||||||||||
Commercial and industrial
|
202 | ---- | ---- | 202 | 57,037 | 57,239 | ||||||||||||||||||
Consumer:
|
||||||||||||||||||||||||
Automobile
|
905 | 138 | 13 | 1,056 | 40,112 | 41,168 | ||||||||||||||||||
Home equity
|
112 | 37 | 62 | 211 | 18,121 | 18,332 | ||||||||||||||||||
Other
|
1,066 | 162 | 7 | 1,235 | 39,282 | 40,517 | ||||||||||||||||||
Total
|
$ | 8,563 | $ | 1,481 | $ | 3,906 | $ | 13,950 | $ | 544,338 | $ | 558,288 |
TDR’s
Performing to Modified Terms
|
TDR’s Not
Performing to Modified Terms
|
Total
TDR’s
|
||||||||||
June 30, 2013
|
||||||||||||
Residential real estate
|
||||||||||||
Interest only payments
|
$ | 249 | $ | ---- | $ | 249 | ||||||
Rate reduction
|
---- | 426 | 426 | |||||||||
Commercial real estate:
|
||||||||||||
Owner-occupied
|
||||||||||||
Interest only payments
|
---- | 580 | 580 | |||||||||
Rate reduction
|
---- | 262 | 262 | |||||||||
Maturity extension at lower stated rate
than market rate
|
176 | ---- | 176 | |||||||||
Nonowner-occupied
|
||||||||||||
Interest only payments
|
8,825 | ---- | 8,825 | |||||||||
Reduction of principal and interest payments
|
660 | ---- | 660 | |||||||||
Total TDR’s
|
$ | 9,910 | $ | 1,268 | $ | 11,178 |
TDR’s
Performing to Modified Terms
|
TDR’s Not
Performing to Modified Terms
|
Total
TDR’s
|
||||||||||
December 31, 2012
|
||||||||||||
Residential real estate
|
||||||||||||
Interest only payments
|
$ | ---- | $ | 180 | $ | 180 | ||||||
Rate reduction
|
420 | ---- | 420 | |||||||||
Commercial real estate:
|
||||||||||||
Owner-occupied
|
||||||||||||
Interest only payments
|
---- | 675 | 675 | |||||||||
Rate reduction
|
440 | ---- | 440 | |||||||||
Maturity extension at lower stated rate
than market rate
|
191 | ---- | 191 | |||||||||
Reduction of principal and interest payments
|
4,222 | ---- | 4,222 | |||||||||
Nonowner-occupied
|
||||||||||||
Interest only payments
|
9,856 | 300 | 10,156 | |||||||||
Reduction of principal and interest payments
|
670 | ---- | 670 | |||||||||
Total TDR’s
|
$ | 15,799 | $ | 1,155 | $ | 16,954 |
TDR’s
Performing to Modified Terms
|
TDR’s Not
Performing to Modified Terms
|
|||||||||||||||
Six months ended June 30, 2013
|
Pre-Modification Recorded Investment
|
Post-Modification Recorded Investment
|
Pre-Modification Recorded Investment
|
Post-Modification Recorded Investment
|
||||||||||||
Residential real estate
|
||||||||||||||||
Interest only payments
|
$ | 249 | $ | 249 | $ | ---- | $ | ---- | ||||||||
Total TDR’s
|
$ | 249 | $ | 249 | $ | ---- | $ | ---- |
TDR’s
Performing to Modified Terms
|
TDR’s Not
Performing to Modified Terms
|
|||||||||||||||
Six months ended June 30, 2012
|
Pre-Modification Recorded Investment
|
Post-Modification Recorded Investment
|
Pre-Modification Recorded Investment
|
Post-Modification Recorded Investment
|
||||||||||||
Commercial real estate:
|
||||||||||||||||
Owner-occupied
|
||||||||||||||||
Reduction of principal and interest payments
|
$ | 4,308 | $ | 4,308 | $ | ---- | $ | ---- | ||||||||
Total TDR’s
|
$ | 4,308 | $ | 4,308 | $ | ---- | $ | ---- |
Special Mention (Loan Grade 8). Loans classified as special mention indicate considerable risk due to deterioration of repayment (in the earliest stages) due to potential weak primary repayment source, or payment delinquency. These loans will be under constant supervision, are not classified and do not expose the institution to sufficient risks to warrant classification. These deficiencies should be correctable within the normal course of business, although significant changes in company structure or policy may be necessary to correct the deficiencies. These loans are considered bankable assets with no apparent loss of principal or interest envisioned. The perceived risk in continued lending is considered to have increased beyond the level where such loans would normally be granted. Credits that are defined as a troubled debt restructuring should be graded no higher than special mention until they have been reported as performing over one year after restructuring.
|
Substandard (Loan Grade 9). Loans classified as substandard represent very high risk, serious delinquency, nonaccrual, or unacceptable credit. Repayment through the primary source of repayment is in jeopardy due to the existence of one or more well defined weaknesses and the collateral pledged may inadequately protect collection of the loans. Loss of principal is not likely if weaknesses are corrected, although financial statements normally reveal significant weakness. Loans are still considered collectible, although loss of principal is more likely than with special mention loan grade 8 loans. Collateral liquidation is considered likely to satisfy debt.
|
Doubtful (Loan Grade 10). Loans classified as doubtful display a high probability of loss, although the amount of actual loss at the time of classification is undetermined. This should be a temporary category until such time that actual loss can be identified, or improvements made to reduce the seriousness of the classification. These loans exhibit all substandard characteristics with the addition that weaknesses make collection or liquidation in full highly questionable and improbable. This classification consists of loans where the possibility of loss is high after collateral liquidation based upon existing facts, market conditions, and value. Loss is deferred until certain important and reasonable specific pending factors which may strengthen the credit can be more accurately determined. These factors may include proposed acquisitions, liquidation procedures, capital injection, receipt of additional collateral, mergers, or refinancing plans. A doubtful classification for an entire credit should be avoided when collection of a specific portion appears highly probable with the adequately secured portion graded substandard.
|
June 30, 2013
|
Pass
|
Criticized
|
Classified
|
Total
|
||||||||||||
Commercial real estate:
|
||||||||||||||||
Owner-occupied
|
$ | 88,357 | $ | 7,981 | $ | 2,894 | $ | 99,232 | ||||||||
Nonowner-occupied
|
43,530 | 601 | 9,628 | 53,759 | ||||||||||||
Construction
|
20,273 | ---- | 1,035 | 21,308 | ||||||||||||
Commercial and industrial
|
53,539 | 557 | 4,203 | 58,299 | ||||||||||||
Total
|
$ | 205,699 | $ | 9,139 | $ | 17,760 | $ | 232,598 |
December 31, 2012
|
Pass
|
Criticized
|
Classified
|
Total
|
||||||||||||
Commercial real estate:
|
||||||||||||||||
Owner-occupied
|
$ | 87,614 | $ | 14,057 | $ | 3,171 | $ | 104,842 | ||||||||
Nonowner-occupied
|
39,627 | 2,171 | 10,994 | 52,792 | ||||||||||||
Construction
|
16,276 | ---- | 1,100 | 17,376 | ||||||||||||
Commercial and industrial
|
47,226 | 4,793 | 5,220 | 57,239 | ||||||||||||
Total
|
$ | 190,743 | $ | 21,021 | $ | 20,485 | $ | 232,249 |
June 30, 2013
|
Consumer
|
|||||||||||||||||||
Automobile
|
Home
Equity
|
Other
|
Residential
Real Estate
|
Total
|
||||||||||||||||
Performing
|
$ | 40,092 | $ | 18,165 | $ | 40,226 | $ | 217,277 | $ | 315,760 | ||||||||||
Nonperforming
|
12 | 58 | 4 | 3,013 | 3,087 | |||||||||||||||
Total
|
$ | 40,104 | $ | 18,223 | $ | 40,230 | $ | 220,290 | $ | 318,847 |
December 31, 2012
|
Consumer
|
|||||||||||||||||||
Automobile
|
Home
Equity
|
Other
|
Residential
Real Estate
|
Total
|
||||||||||||||||
Performing
|
$ | 41,153 | $ | 18,270 | $ | 40,510 | $ | 223,148 | $ | 323,081 | ||||||||||
Nonperforming
|
15 | 62 | 7 | 2,874 | 2,958 | |||||||||||||||
Total
|
$ | 41,168 | $ | 18,332 | $ | 40,517 | $ | 226,022 | $ | 326,039 |
FHLB Borrowings
|
Promissory Notes
|
Totals
|
||||||||||
June 30, 2013
|
$ | 16,235 | $ | 3,529 | $ | 19,764 | ||||||
December 31, 2012
|
$ | 10,759 | $ | 3,526 | $ | 14,285 |
FHLB
Borrowings
|
Promissory
Notes
|
Totals
|
||||||||||
2013
|
$ | 1,096 | $ | 1,743 | $ | 2,839 | ||||||
2014
|
1,398 | 1,786 | 3,184 | |||||||||
2015
|
1,307 | ---- | 1,307 | |||||||||
2016
|
1,228 | ---- | 1,228 | |||||||||
2017
|
1,161 | ---- | 1,161 | |||||||||
Thereafter
|
10,045 | ---- | 10,045 | |||||||||
$ | 16,235 | $ | 3,529 | $ | 19,764 |
Three Months Ended June 30, 2013
|
||||||||||||
Banking
|
Consumer
Finance
|
Total Company
|
||||||||||
Net interest income
|
$ | 7,198 | $ | 643 | $ | 7,841 | ||||||
Provision expense
|
$ | (200 | ) | $ | 11 | $ | (189 | ) | ||||
Noninterest income
|
$ | 1,792 | $ | 173 | $ | 1,965 | ||||||
Noninterest expense
|
$ | 6,706 | $ | 611 | $ | 7,317 | ||||||
Tax expense
|
$ | 671 | $ | 65 | $ | 736 | ||||||
Net income
|
$ | 1,813 | $ | 129 | $ | 1,942 | ||||||
Assets
|
$ | 738,236 | $ | 13,876 | $ | 752,112 |
Three Months Ended June 30, 2012
|
||||||||||||
Banking
|
Consumer
Finance
|
Total Company
|
||||||||||
Net interest income
|
$ | 7,426 | $ | 627 | $ | 8,053 | ||||||
Provision expense
|
$ | 576 | $ | (52 | ) | $ | 524 | |||||
Noninterest income
|
$ | 1,823 | $ | 151 | $ | 1,974 | ||||||
Noninterest expense
|
$ | 6,588 | $ | 574 | $ | 7,162 | ||||||
Tax expense
|
$ | 536 | $ | 86 | $ | 622 | ||||||
Net income
|
$ | 1,549 | $ | 170 | $ | 1,719 | ||||||
Assets
|
$ | 787,885 | $ | 13,487 | $ | 801,372 |
Six Months Ended June 30, 2013
|
||||||||||||
Banking
|
Consumer
Finance
|
Total Company
|
||||||||||
Net interest income
|
$ | 14,347 | $ | 1,915 | $ | 16,262 | ||||||
Provision expense
|
$ | (265 | ) | $ | 107 | $ | (158 | ) | ||||
Noninterest income
|
$ | 5,285 | $ | 620 | $ | 5,905 | ||||||
Noninterest expense
|
$ | 14,002 | $ | 1,263 | $ | 15,265 | ||||||
Tax expense
|
$ | 1,501 | $ | 394 | $ | 1,895 | ||||||
Net income
|
$ | 4,394 | $ | 771 | $ | 5,165 | ||||||
Assets
|
$ | 738,236 | $ | 13,876 | $ | 752,112 |
Six Months Ended June 30, 2012
|
||||||||||||
Banking
|
Consumer
Finance
|
Total Company
|
||||||||||
Net interest income
|
$ | 15,083 | $ | 1,882 | $ | 16,965 | ||||||
Provision expense
|
$ | 1,787 | $ | 53 | $ | 1,840 | ||||||
Noninterest income
|
$ | 4,888 | $ | 565 | $ | 5,453 | ||||||
Noninterest expense
|
$ | 13,315 | $ | 1,179 | $ | 14,494 | ||||||
Tax expense
|
$ | 1,332 | $ | 411 | $ | 1,743 | ||||||
Net income
|
$ | 3,537 | $ | 804 | $ | 4,341 | ||||||
Assets
|
$ | 787,885 | $ | 13,487 | $ | 801,372 |
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
Company Ratios
|
Regulatory
Minimum
|
||
6/30/13
|
12/31/12
|
||
Tier 1 risk-based capital
|
15.9%
|
16.0%
|
4.00%
|
Total risk-based capital ratio
|
17.1%
|
17.2%
|
8.00%
|
Leverage ratio
|
10.9%
|
10.9%
|
4.00%
|
Change in Interest Rates
in Basis Points
|
June 30, 2013
Percentage Change in
Net Interest Income
|
December 31, 2012
Percentage Change in
Net Interest Income
|
+300
|
(3.02%)
|
(3.20%)
|
+200
|
(1.76%)
|
(1.87%)
|
+100
|
(.71%)
|
(.80%)
|
-100
|
(2.56%)
|
(2.32%)
|
OHIO VALLEY BANC CORP.
|
|||
Date:
|
August 9, 2013
|
By:
|
/s/Thomas E. Wiseman |
Thomas E. Wiseman
|
|||
President and Chief Executive Officer
|
|||
Date:
|
August 9, 2013
|
By:
|
/s/Scott W. Shockey |
Scott W. Shockey
|
|||
Vice President and Chief Financial Officer
|
Exhibit Number
|
Exhibit Description
|
|
3(a)
|
Amended Articles of Incorporation of Ohio Valley (reflects amendments through April 7, 1999) [for SEC reporting compliance only - - not filed with the Ohio Secretary of State]. Incorporated herein by reference to Exhibit 3(a) to Ohio Valley’s Annual Report on Form 10-K for fiscal year ended December 31, 2007 (SEC File No. 0-20914).
|
|
3(b)
|
Code of Regulations of Ohio Valley (as amended by the shareholders on May 12, 2010): Incorporated herein by reference to Exhibit 3(b) to Ohio Valley’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2010 (SEC File No. 0-20914).
|
|
4
|
Agreement to furnish instruments and agreements defining rights of holders of long-term debt: Filed herewith.
|
|
31.1
|
Rule 13a-14(a)/15d-14(a) Certification (Principal Executive Officer): Filed herewith.
|
|
31.2
|
Rule 13a-14(a)/15d-14(a) Certification (Principal Financial Officer): Filed herewith.
|
|
32
|
Section 1350 Certifications (Principal Executive Officer and Principal Accounting Officer): Filed herewith.
|
|
101.INS*
|
XBRL Instance Document: Filed herewith.*
|
|
101.SCH*
|
XBRL Taxonomy Extension Schema: Filed herewith.*
|
|
101.CAL*
|
XBRL Taxonomy Extension Calculation Linkbase: Filed herewith.*
|
|
101.DEF*
|
XBRL Taxonomy Extension Definition Linkbase: Filed herewith.*
|
|
101.LAB*
|
XBRL Taxonomy Extension Label Linkbase: Filed herewith.*
|
|
101.PRE*
|
XBRL Taxonomy Extension Presentation Linkbase: Filed herewith.*
|
/s/Thomas E. Wiseman |
Thomas E. Wiseman
|
President and Chief Executive Officer
|
Ohio Valley Banc Corp.
|
|
(a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external puposes in accordance with generally accepted accouting principles;
|
|
(c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
(a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
(b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: August 9, 2013
|
By:
|
/s/Thomas E. Wiseman |
Thomas E. Wiseman, President and CEO
|
||
(Principal Executive Officer)
|
|
(a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external puposes in accordance with generally accepted accouting principles;
|
|
(c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
(a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
(b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.
|
Date: August 9, 2013
|
By:
|
/s/Scott W. Shockey |
Scott W. Shockey, Vice President and CFO
|
||
(Principal Financial Officer)
|
*/s/Thomas E. Wiseman
|
*/s/Scott W. Shockey
|
|
Thomas E. Wiseman
|
Scott W. Shockey
|
|
President and Chief Executive Officer
|
Vice President Chief Financial Officer
|
|
Dated: August 9, 2013
|
Dated: August 9, 2013
|
*
|
This certification is being furnished as required by Rule 13a-14(b) under the Securities Exchange Act of 1934 (the “Exchange Act”) and Section 1350 of Chapter 63 of Title 18 of the United States Code, and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of that Section. This certification shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the Corporation specifically incorporates it by reference in any such filing.
|
Note 3 - Securities (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
|
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Note 3 - Securities (Tables) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale Securities [Table Text Block] |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Held-to-maturity Securities [Table Text Block] |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments Classified by Contractual Maturity Date [Table Text Block] |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Unrealized Loss on Investments [Table Text Block] |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available for Sale (Member)
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note 3 - Securities (Tables) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Unrealized Loss on Investments [Table Text Block] |
|
Consolidated Statements of Income (Unaudited) (USD $)
In Thousands, except Per Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Interest and dividend income: | ||||
Loans, including fees | $ 8,169 | $ 8,933 | $ 17,086 | $ 18,897 |
Securities | ||||
Taxable | 315 | 446 | 615 | 872 |
Tax exempt | 145 | 148 | 289 | 293 |
Dividends | 81 | 67 | 148 | 138 |
Other Interest | 54 | 63 | 106 | 122 |
8,764 | 9,657 | 18,244 | 20,322 | |
Interest expense: | ||||
Deposits | 789 | 1,302 | 1,628 | 2,676 |
Other borrowed funds | 92 | 123 | 173 | 248 |
Subordinated debentures | 42 | 179 | 181 | 433 |
923 | 1,604 | 1,982 | 3,357 | |
Net interest income | 7,841 | 8,053 | 16,262 | 16,965 |
Provision for loan losses | (189) | 524 | (158) | 1,840 |
Net interest income after provision for loan losses | 8,030 | 7,529 | 16,420 | 15,125 |
Noninterest income: | ||||
Service charges on deposit accounts | 444 | 460 | 868 | 910 |
Trust fees | 51 | 51 | 102 | 100 |
Income from bank owned life insurance and annuity assets | 172 | 200 | 803 | 394 |
Mortgage banking income | 109 | 135 | 246 | 232 |
Electronic refund check / deposit fees | 406 | 226 | 2,511 | 2,264 |
Debit / credit card interchange income | 493 | 421 | 945 | 816 |
Gain (loss) on other real estate owned | 25 | 143 | (40) | 151 |
Other | 265 | 338 | 470 | 586 |
1,965 | 1,974 | 5,905 | 5,453 | |
Noninterest expense: | ||||
Salaries and employee benefits | 4,367 | 4,185 | 8,806 | 8,453 |
Occupancy | 387 | 383 | 781 | 785 |
Furniture and equipment | 208 | 235 | 434 | 472 |
FDIC insurance | 117 | 275 | 261 | 566 |
Data processing | 281 | 229 | 562 | 508 |
Foreclosed assets | 44 | 65 | 339 | 175 |
Other | 1,913 | 1,790 | 4,082 | 3,535 |
7,317 | 7,162 | 15,265 | 14,494 | |
Income before income taxes | 2,678 | 2,341 | 7,060 | 6,084 |
Provision for income taxes | 736 | 622 | 1,895 | 1,743 |
NET INCOME | $ 1,942 | $ 1,719 | $ 5,165 | $ 4,341 |
Earnings per share (in Dollars per share) | $ 0.48 | $ 0.43 | $ 1.27 | $ 1.08 |
Note 3 - Securities
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | NOTE 3 – SECURITIES The following table summarizes the amortized cost and estimated fair value of the available for sale and held to maturity securities portfolios at June 30, 2013 and December 31, 2012 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income for available for sale securities and gross unrecognized gains and losses for held to maturity securities:
The amortized cost and estimated fair value of the securities portfolio at June 30, 2013, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because certain issuers may have the right to call or prepay the debt obligations prior to their contractual maturities. Securities not due at a single maturity are shown separately.
The following table summarizes the investment securities with unrealized losses at June 30, 2013 and December 31, 2012 by aggregated major security type and length of time in a continuous unrealized loss position:
Unrealized losses on the Company's debt securities have not been recognized into income because the issuers' securities are of high credit quality and management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery. Management does not believe any individual unrealized loss at June 30, 2013 represents an other-than-temporary impairment. |
Note 2 - Fair Value of Financial Instruments (Details) - Level 3 Fair Value Measurements June 2013 (Commercial and Industrial [Member], USD $)
In Thousands, unless otherwise specified |
6 Months Ended | 12 Months Ended | 6 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2013
Impaired Loans [Member]
|
Jun. 30, 2013
Other Real Estate Owned [Member]
|
Dec. 31, 2012
|
Jun. 30, 2013
Minimum [Member]
Impaired Loans [Member]
|
Jun. 30, 2013
Maximum [Member]
Impaired Loans [Member]
|
|
Impaired loans: | |||||
Fair Value (in Dollars) | $ 3,282 | $ 982 | $ 1,055 | ||
Valuation Techniques | Sales approach | Sales approach | Sales approach | ||
Unobservable Inputs | Adjustment to comparables | Adjustment to comparables | Adjustment to comparables | ||
Range | to | 10% | 15% | From 10 | 80% |
Weighted Average | 35.00% | 10.00% | 15.00% |
Note 4 - Loans and Allowance for Loan Losses (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] |
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Schedule of Credit Losses Related to Financing Receivables, Current and Noncurrent [Table Text Block] |
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Allowance for Loan Losses and the Recorded Investment of Loans [Table Text Block] |
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Schedule of Loans Individually Evaluated for Impairment [Table Text Block] |
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Schedule of Recorded Investment in Nonaccrual Loans [Table Text Block] |
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Past Due Financing Receivables [Table Text Block] |
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Troubled Debt Restructurings on Financing Receivables [Table Text Block] |
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Schedule of Post-Modifications Balances of TDR Loan Modifications [Table Text Block] |
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Financing Receivable Credit Quality Indicators [Table Text Block] |
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Performing and Nonperforming Loans [Table Text Block] |
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Note 7 - Segment Information (Details) - Segment Reporting (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | |||
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Jun. 30, 2013
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Jun. 30, 2012
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Jun. 30, 2013
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Jun. 30, 2012
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Dec. 31, 2012
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Segment Reporting Information [Line Items] | |||||
Net interest income | $ 7,841 | $ 8,053 | $ 16,262 | $ 16,965 | |
Provision expense | (189) | 524 | (158) | 1,840 | |
Noninterest income | 1,965 | 1,974 | 5,905 | 5,453 | |
Noninterest expense | 7,317 | 7,162 | 15,265 | 14,494 | |
Tax expense | 736 | 622 | 1,895 | 1,743 | |
Net income | 1,942 | 1,719 | 5,165 | 4,341 | |
Assets | 752,112 | 801,372 | 752,112 | 801,372 | 769,223 |
Banking [Member]
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Segment Reporting Information [Line Items] | |||||
Net interest income | 7,198 | 7,426 | 14,347 | 15,083 | |
Provision expense | (200) | 576 | (265) | 1,787 | |
Noninterest income | 1,792 | 1,823 | 5,285 | 4,888 | |
Noninterest expense | 6,706 | 6,588 | 14,002 | 13,315 | |
Tax expense | 671 | 536 | 1,501 | 1,332 | |
Net income | 1,813 | 1,549 | 4,394 | 3,537 | |
Assets | 738,236 | 787,885 | 738,236 | 787,885 | |
Consumer Finance [Member]
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Segment Reporting Information [Line Items] | |||||
Net interest income | 643 | 627 | 1,915 | 1,882 | |
Provision expense | 11 | (52) | 107 | 53 | |
Noninterest income | 173 | 151 | 620 | 565 | |
Noninterest expense | 611 | 574 | 1,263 | 1,179 | |
Tax expense | 65 | 86 | 394 | 411 | |
Net income | 129 | 170 | 771 | 804 | |
Assets | $ 13,876 | $ 13,487 | $ 13,876 | $ 13,487 |
Note 3 - Securities (Details) - Amortized Cost and Estimated Fair Value of Available-for-Sale Securities (USD $)
In Thousands, unless otherwise specified |
6 Months Ended | |
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Jun. 30, 2013
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Dec. 31, 2012
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Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 89,915 | |
Gross Unrealized Gains | 1,109 | |
Gross Unrealized Losses | (1,075) | |
Fair Value | 89,949 | 94,965 |
US Government-sponsored Enterprises Debt Securities [Member]
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Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 9,031 | |
Gross Unrealized Losses | (243) | |
Fair Value | 8,788 | |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
|
||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 80,884 | |
Gross Unrealized Gains | 1,109 | |
Gross Unrealized Losses | (832) | |
Fair Value | $ 81,161 |
Note 2 - Fair Value of Financial Instruments (Details) - Fair Value Measurements (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
Jun. 30, 2012
|
Dec. 31, 2011
|
---|---|---|---|---|
Financial Assets: | ||||
Carrying Value | $ 39,974 | $ 45,651 | $ 73,723 | $ 51,630 |
Fair Value | 39,974 | 45,651 | ||
Carrying Value | 89,949 | 94,965 | ||
Fair Value | 89,949 | 94,965 | ||
Carrying Value | 23,746 | 23,511 | ||
Fair Value | 23,920 | 24,624 | ||
Carrying Value | 7,776 | 6,281 | ||
Carrying Value | 544,977 | 551,383 | ||
Fair Value | 548,093 | 564,059 | ||
Carrying Value | 2,044 | 2,057 | ||
Fair Value | 2,044 | 2,057 | ||
Financial liabilities: | ||||
Carrying Value | 634,557 | 655,064 | ||
Fair Value | 635,529 | 657,206 | ||
Carrying Value | 19,764 | 14,285 | ||
Fair Value | 19,131 | 14,536 | ||
Carrying Value | 8,500 | 13,500 | ||
Fair Value | 4,892 | 10,146 | ||
Carrying Value | 1,086 | 1,377 | ||
Fair Value | 1,086 | 1,377 | ||
Fair Value, Inputs, Level 1 [Member]
|
||||
Financial Assets: | ||||
Fair Value | 39,974 | 45,651 | ||
Financial liabilities: | ||||
Fair Value | 144,116 | 139,526 | ||
Fair Value | 3 | 2 | ||
Fair Value, Inputs, Level 2 [Member]
|
||||
Financial Assets: | ||||
Carrying Value | 89,949 | 94,965 | ||
Fair Value | 89,949 | 94,965 | ||
Fair Value | 11,172 | 11,569 | ||
Fair Value | 304 | 283 | ||
Financial liabilities: | ||||
Fair Value | 491,413 | 517,680 | ||
Fair Value | 19,131 | 14,536 | ||
Fair Value | 4,892 | 10,146 | ||
Fair Value | 1,083 | 1,375 | ||
Fair Value, Inputs, Level 3 [Member]
|
||||
Financial Assets: | ||||
Fair Value | 12,748 | 13,055 | ||
Fair Value | 548,093 | 564,059 | ||
Fair Value | $ 1,740 | $ 1,774 |
Note 6 - Other Borrowed Funds (Details) - Scheduled Principal Payments (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Note 6 - Other Borrowed Funds (Details) - Scheduled Principal Payments [Line Items] | ||
2013 | $ 2,839 | |
2014 | 3,184 | |
2015 | 1,307 | |
2016 | 1,228 | |
2017 | 1,161 | |
Thereafter | 10,045 | |
19,764 | 14,285 | |
Federal Home Loan Bank Advances [Member]
|
||
Note 6 - Other Borrowed Funds (Details) - Scheduled Principal Payments [Line Items] | ||
2013 | 1,096 | |
2014 | 1,398 | |
2015 | 1,307 | |
2016 | 1,228 | |
2017 | 1,161 | |
Thereafter | 10,045 | |
16,235 | 10,759 | |
Promissory Notes [Member]
|
||
Note 6 - Other Borrowed Funds (Details) - Scheduled Principal Payments [Line Items] | ||
2013 | 1,743 | |
2014 | 1,786 | |
$ 3,529 | $ 3,526 |
Note 4 - Loans and Allowance for Loan Losses (Details) - Allowance for Loan Losses Activity (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Allowance for loan losses: | ||||
Beginning balance | $ 6,672 | $ 6,847 | $ 6,905 | $ 7,344 |
Provision for loan losses | (189) | 524 | (158) | 1,840 |
Loans charged off | (384) | (445) | (1,180) | (2,723) |
Recoveries | 369 | 601 | 901 | 1,066 |
Total ending allowance balance | 6,468 | 7,527 | 6,468 | 7,527 |
Residential Portfolio Segment [Member]
|
||||
Allowance for loan losses: | ||||
Beginning balance | 1,314 | 1,491 | 1,329 | 1,730 |
Provision for loan losses | (182) | 18 | 145 | 295 |
Loans charged off | (100) | (85) | (457) | (678) |
Recoveries | 160 | 19 | 175 | 96 |
Total ending allowance balance | 1,192 | 1,443 | 1,192 | 1,443 |
Commercial Real Estate Portfolio Segment [Member]
|
||||
Allowance for loan losses: | ||||
Beginning balance | 3,744 | 3,423 | 3,946 | 3,623 |
Provision for loan losses | (715) | 1,004 | (1,193) | 1,896 |
Loans charged off | 0 | (62) | (2) | (1,158) |
Recoveries | 5 | 4 | 283 | 8 |
Total ending allowance balance | 3,034 | 4,369 | 3,034 | 4,369 |
Commercial and Industrial [Member]
|
||||
Allowance for loan losses: | ||||
Beginning balance | 761 | 623 | 783 | 636 |
Provision for loan losses | 565 | (319) | 532 | (407) |
Loans charged off | 0 | 0 | 0 | (70) |
Recoveries | 16 | 349 | 27 | 494 |
Total ending allowance balance | 1,342 | 653 | 1,342 | 653 |
Consumer Portfolio Segment [Member]
|
||||
Allowance for loan losses: | ||||
Beginning balance | 853 | 1,310 | 847 | 1,355 |
Provision for loan losses | 143 | (179) | 358 | 56 |
Loans charged off | (284) | (298) | (721) | (817) |
Recoveries | 188 | 229 | 416 | 468 |
Total ending allowance balance | $ 900 | $ 1,062 | $ 900 | $ 1,062 |
Note 4 - Loans and Allowance for Loan Losses (Details) - Post-Modification Balances of TDR Loan Modifications (USD $)
In Thousands, unless otherwise specified |
3 Months Ended |
---|---|
Mar. 31, 2013
|
|
Performing to Modified Terms [Member]
|
|
Residential real estate | |
Pre-Modification Recorded Investment | $ 249 |
Post-Modification Recorded Investment | 249 |
Not Performing to Modified Terms [Member]
|
|
Residential real estate | |
Pre-Modification Recorded Investment | 0 |
Post-Modification Recorded Investment | $ 0 |
Note 3 - Securities (Details) - Securities Held to Maturity with Unrealized Losses (USD $)
In Thousands, unless otherwise specified |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2013
|
Dec. 31, 2012
|
|
Note 3 - Securities (Details) - Securities Held to Maturity with Unrealized Losses [Line Items] | ||
Less Than 12 Months - Fair Value | $ 8,427 | $ 2,018 |
Less Than 12 Months- Unrecognized Loss | (404) | (63) |
12 Months or More - Fair Value | 242 | 260 |
12 Months or More - Unrecognized Loss | (21) | (2) |
Total - Fair Value | 8,669 | 2,278 |
Total - Unrecognized Loss | (425) | (65) |
US States and Political Subdivisions Debt Securities [Member]
|
||
Note 3 - Securities (Details) - Securities Held to Maturity with Unrealized Losses [Line Items] | ||
Less Than 12 Months - Fair Value | 8,427 | 2,018 |
Less Than 12 Months- Unrecognized Loss | (404) | (63) |
12 Months or More - Fair Value | 242 | 260 |
12 Months or More - Unrecognized Loss | (21) | (2) |
Total - Fair Value | 8,669 | 2,278 |
Total - Unrecognized Loss | $ (425) | $ (65) |
Note 5 - Financial Instruments with Off-Balance Sheet Risk (Details) (USD $)
|
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2013
|
Dec. 31, 2012
|
|
Risks and Uncertainties [Abstract] | ||
Concentration Risk, Credit Risk, Financial Instrument, Maximum Exposure | $ 67,957 | $ 56,448 |
Note 2 - Fair Value of Financial Instruments (Details) - Level 3 Fair Value Measurements December 2012 (USD $)
In Thousands, unless otherwise specified |
12 Months Ended |
---|---|
Dec. 31, 2012
|
|
Commercial Real Estate Construction Financing Receivable [Member]
|
|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Fair Value (in Dollars) | $ 1,562 |
Valuation Techniques | Sales approach |
Unobservable Inputs | Adjustment to comparables |
Range | 15% |
Weighted Average | 15.00% |
Commercial and Industrial [Member]
|
|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Fair Value (in Dollars) | $ 1,055 |
Valuation Techniques | Sales approach |
Unobservable Inputs | Adjustment to comparables |
Range | 15% |
Weighted Average | 15.00% |
Condensed Consolidated Statements of Changes in Shareholders’ Equity (unaudited) (USD $)
In Thousands, except Per Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Balance at beginning of period | $ 78,554 | $ 73,779 | $ 75,820 | $ 71,843 |
Net income | 1,942 | 1,719 | 5,165 | 4,341 |
Other comprehensive income (loss), net of tax | (1,502) | 321 | (1,585) | 425 |
Proceeds from issuance of common stock through dividend reinvestment plan | 55 | |||
Cash dividends | (853) | (1,008) | (1,259) | (1,853) |
Balance at end of period | $ 78,141 | $ 74,811 | $ 78,141 | $ 74,811 |
Cash dividends per share (in Dollars per share) | $ 0.21 | $ 0.25 | $ 0.31 | $ 0.46 |
Note 1 - Summary of Significant Accounting Policies
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION: The accompanying consolidated financial statements include the accounts of Ohio Valley Banc Corp. (“Ohio Valley”) and its wholly-owned subsidiaries, The Ohio Valley Bank Company (the “Bank”), Loan Central, Inc. (“Loan Central”), a consumer finance company, and Ohio Valley Financial Services Agency, LLC (“Ohio Valley Financial Services”), an insurance agency. Ohio Valley and its subsidiaries are collectively referred to as the “Company”. All material intercompany accounts and transactions have been eliminated in consolidation. These interim financial statements are prepared by the Company without audit and reflect all adjustments of a normal recurring nature which, in the opinion of management, are necessary to present fairly the consolidated financial position of the Company at June 30, 2013, and its results of operations and cash flows for the periods presented. The results of operations for the six months ended June 30, 2013 are not necessarily indicative of the operating results to be anticipated for the full fiscal year ending December 31, 2013. The accompanying consolidated financial statements do not purport to contain all the necessary financial disclosures required by U.S. generally accepted accounting principles (“US GAAP”) that might otherwise be necessary in the circumstances. The Annual Report of the Company for the year ended December 31, 2012 contains consolidated financial statements and related notes which should be read in conjunction with the accompanying consolidated financial statements. The consolidated financial statements for 2012 have been reclassified to conform to the presentation for 2013. These reclassifications had no effect on the net results of operations or shareholders’ equity. USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS: The accounting and reporting policies followed by the Company conform to US GAAP. The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. Areas involving the use of management’s estimates and assumptions that are more susceptible to change in the near term involve the allowance for loan losses, mortgage servicing rights, deferred tax assets, the fair value of certain securities, the fair value of financial instruments and the determination and carrying value of impaired loans and other real estate owned. INDUSTRY SEGMENT INFORMATION: Internal financial information is primarily reported and aggregated in two lines of business, banking and consumer finance. EARNINGS PER SHARE: Earnings per share are computed based on net income divided by the weighted average number of common shares outstanding during the period. The weighted average common shares outstanding were 4,062,204 and 4,029,439 for the three months ended June 30, 2013 and 2012, respectively. Weighted average common shares outstanding were 4,062,204 and 4,028,694 for the six months ended June 30, 2013 and 2012, respectively. Ohio Valley had no dilutive effect and no potential common shares issuable under stock options or other agreements for any period presented. ADOPTION OF NEW ACCOUNTING PRONOUNCEMENTS: In February 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” (ASU 2013-02). ASU 2013-02 requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about these amounts. ASU 2013-02 is effective prospectively for reporting periods beginning after December 15, 2012. The effect of adopting ASU 2013-02 did not have a material effect on the Company’s financial statements. |
Note 4 - Loans and Allowance for Loan Losses
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | NOTE 4 – LOANS AND ALLOWANCE FOR LOAN LOSSES
The following table presents the activity in the allowance for loan losses by portfolio segment for the three months ended June 30, 2013 and 2012:
The following table presents the activity in the allowance for loan losses by portfolio segment for the six months ended June 30, 2013 and 2012:
The following table presents the balance in the allowance for loan losses and the recorded investment of loans by portfolio segment and based on impairment method as of June 30, 2013 and December 31, 2012:
The following table presents information related to loans individually evaluated for impairment by class of loans:
The recorded investment of a loan is its carrying value excluding accrued interest and deferred loan fees, as these amounts are immaterial. The following table presents the recorded investment of nonaccrual loans and loans past due 90 days or more and still accruing by class of loans:
Nonaccrual loans and loans past due 90 days or more and still accruing include both smaller balance homogenous loans that are collectively evaluated for impairment and individually classified as impaired loans. The following table presents the aging of the recorded investment of past due loans by class of loans:
Troubled Debt Restructurings: A troubled debt restructuring (“TDR”) occurs when the Company has agreed to a loan modification in the form of a concession for a borrower who is experiencing financial difficulty. All TDR's are considered to be impaired. The modification of the terms of such loans included one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; a reduction in the contractual principal and interest payments of the loan; or short-term interest-only payment terms. The Company has allocated reserves for a portion of its TDR's to reflect the fair values of the underlying collateral or the present value of the concessionary terms granted to the customer. The following table presents the types of TDR loan modifications by class of loans as of June 30, 2013 and December 31, 2012:
During the three and six months ended June 30, 2013, the TDR’s described above decreased the provision expense and the allowance for loan losses by $513 and $233, respectively, with no corresponding charge-offs. This was largely due to a $503 reduction in specific reserves on a commercial real estate loan based on an updated impairment analysis of collateral during the second quarter of 2013. This decrease in reserves was partially offset by a $275 recovery during the first quarter of 2013 on a previously charged-off commercial real estate loan that had been classified as a TDR at December 31, 2012. During the year ended December 31, 2012, the TDR’s described above increased the allowance for loan losses by $2,169, resulting in charge-offs of $536. At June 30, 2013, the balance in TDR loans decreased $5,776, or 34.1%, from year-end 2012. The decrease was largely due to the removal of one commercial real estate loan from TDR status during the second quarter of 2013. This previously reported TDR loan, for which there was no principal forgiveness, totaled $4,222 at December 31, 2012. The loan paid as agreed under the modified terms through maturity in April, 2013. During the three months ended June 30, 2013, the Bank re-underwrote and re-modified the loan at terms that were considered to be at market for loans with comparable risk. Management expects the borrower will continue to perform under the re-modified terms based on the borrower’s past history of performance and the overall cash flows of the borrower. Based on the terms of the re-modification, the loan no longer meets the criteria for a troubled debt restructuring and, as such, was removed from TDR status at June 30, 2013 and is no longer evaluated individually for impairment. During the three and six months ended June 30, 2013 and 2012, no other loans were removed from TDR status as a result of a re-modification. Further reducing the TDR balance from year-end 2012 were principal payments of $995 received on one commercial real estate loan during the first half of 2013 and a $300 payoff of another commercial real estate loan during the first quarter of 2013. At June 30, 2013 and December 31, 2012, a total of 89% and 93% of the Company’s TDR’s were performing according to their modified terms, respectively. The Company allocated $1,599 and $2,107 in reserves to customers whose loan terms have been modified in TDR’s as of June 30, 2013 and December 31, 2012, respectively. At June 30, 2013, the Company had $724 in commitments to lend additional amounts to customers with outstanding loans that are classified as TDR’s, as compared to $109 at December 31, 2012. The following table presents the pre- and post-modification balances of TDR loan modifications by class of loans that occurred during the six months ended June 30, 2013:
As of June 30, 2013, all of the Company’s loans that were restructured during the six months ended June 30, 2013 were performing in accordance with their modified terms. Furthermore, there were no TDR’s described above at June 30, 2013 that experienced any payment defaults within twelve months following their loan modification. A default is considered to have occurred once the TDR is past due 90 days or more or it has been placed on nonaccrual. TDR loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. The loans modified during the six months ended June 30, 2013 had no impact on the allowance for loan losses or charge-offs during those six months. As of June, 2013, the Company had no allocation of reserves to customers whose loan terms have been modified during the first six months of 2013. Credit Quality Indicators: The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. These risk categories are represented by a loan grading scale from 1 through 10. The Company analyzes loans individually with a higher credit risk rating and groups these loans into categories called “criticized” and “classified" assets. The Company considers its criticized assets to be loans that are graded 8 and its classified assets to be loans that are graded 9 through 10. The Company's risk categories are reviewed at least annually on loans that have aggregate borrowing amounts that meet or exceed $500. The Company uses the following definitions for its criticized loan risk ratings:
The Company uses the following definitions for its classified loan risk ratings:
Criticized and classified loans will mostly consist of commercial and industrial and commercial real estate loans. The Company considers its loans that do not meet the criteria for a criticized and classified asset rating as pass rated loans, which will include loans graded from 1 (Prime) to 7 (Watch). All commercial loans are categorized into a risk category either at the time of origination or reevaluation date. As of June 30, 2013 and December 31, 2012, and based on the most recent analysis performed, the risk category of commercial loans by class of loans is as follows:
The Company also obtains the credit scores of its borrowers upon origination (if available by the credit bureau), but the scores are not updated. The Company focuses mostly on the performance and repayment ability of the borrower as an indicator of credit risk and does not consider a borrower's credit score to be a significant influence in the determination of a loan's credit risk grading. The Company considers the performance of the loan portfolio and its impact on the allowance for loan losses. Nonperforming loans are defined as loans that are past due 90 days and still accruing or loans that have been placed on nonaccrual. For residential and consumer loan classes, the Company also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment of residential and consumer loans by class of loans based on repayment activity as of June 30, 2013 and December 31, 2012:
The Company, through its subsidiaries, grants residential, consumer, and commercial loans to customers located primarily in the southeastern areas of Ohio as well as the western counties of West Virginia. Approximately 5.14% of total loans were unsecured at June 30, 2013, up from 4.87% at December 31, 2012. |
Note 2 - Fair Value of Financial Instruments
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Jun. 30, 2013
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Text Block] | NOTE 2 – FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The following is a description of the Company’s valuation methodologies used to measure and disclose the fair values of its financial assets and liabilities on a recurring or nonrecurring basis: Securities: The fair values for securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). During times when trading is more liquid, broker quotes are used (if available) to validate the model. Rating agency and industry research reports as well as defaults and deferrals on individual securities are reviewed and incorporated into the calculations. Impaired Loans: At the time a loan is considered impaired, it is valued at the lower of cost or fair value. Impaired loans carried at fair value generally receive specific allocations of the allowance for loan losses. For collateral dependent loans, fair value is commonly based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly. Other Real Estate Owned: Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Appraisals for both collateral-dependent impaired loans and other real estate owned are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, a member of management reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with management’s own assumptions of fair value based on factors that include recent market data or industry-wide statistics. On an as-needed basis, the Company reviews the fair value of collateral, taking into consideration current market data, as well as all selling costs that typically approximate 10%. Assets and Liabilities Measured on a Recurring Basis Assets and liabilities measured at fair value on a recurring basis are summarized below:
There were no transfers between Level 1 and Level 2 during 2013 or 2012. Assets and Liabilities Measured on a Nonrecurring Basis
At June 30, 2013, the recorded investment of impaired loans measured for impairment using the fair value of collateral for collateral-dependent loans totaled $4,160, with a corresponding valuation allowance of $878. This caused an increase in impairment reserves of $878 during both the three and six months ended June 30, 2013, with no additional charge-offs recognized. At December 31, 2012, the recorded investment of impaired loans measured for impairment using the fair value of collateral for collateral-dependent loans totaled $1,979, with a corresponding valuation of $1,979. A net increase of $2,479 in fair value was recognized for partial charge-offs of loans and impairment reserves on loans during the year ended December 31, 2012. Other real estate owned that was measured at fair value less costs to sell at June 30, 2013 had a net carrying amount of $982, which is made up of the outstanding balance of $1,997, net of a valuation allowance of $1,015 at June 30, 2013, which resulted in a corresponding write-down of $73 during both the three and six months ended June 30, 2013. Other real estate owned that was measured at fair value less costs to sell at December 31, 2012 had a net carrying amount of $2,617, which is made up of the outstanding balance of $4,214, net of a valuation allowance of $1,597 at December 31, 2012, which resulted in a corresponding write-down of $331 for the year ended December 31, 2012. The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at June 30, 2013 and December 31, 2012:
The carrying amounts and estimated fair values of financial instruments at June 30, 2013 and December 31, 2012 are as follows:
The methods and assumptions, not previously presented, used to estimate fair values are described as follows: Cash and Cash Equivalents: The carrying amounts of cash and short-term instruments approximate fair values and are classified as Level 1. Securities Held to Maturity: The fair values for securities held to maturity are determined in the same manner as securities held for sale and discussed earlier in this note. Level 3 securities consist of nonrated municipal bonds and tax credit (“QZAB”) bonds. Federal Home Loan Bank stock: It is not practical to determine the fair value of Federal Home Loan Bank stock due to restrictions placed on its transferability. Loans: Fair values of loans are estimated as follows: The fair value of fixed rate loans is estimated by discounting future cash flows using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality resulting in a Level 3 classification. For variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values resulting in a Level 3 classification. Impaired loans are valued at the lower of cost or fair value as described previously. The methods utilized to estimate the fair value of loans do not necessarily represent an exit price. Deposit Liabilities: The fair values disclosed for noninterest-bearing deposits are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amount) resulting in a Level 1 classification. The carrying amounts of variable rate, fixed-term money market accounts and certificates of deposit approximate their fair values at the reporting date resulting in a Level 2 classification. Fair values for fixed rate certificates of deposit are estimated using a discounted cash flows calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits resulting in a Level 2 classification. Other Borrowed Funds: The carrying values of the Company’s short-term borrowings, generally maturing within ninety days, approximate their fair values resulting in a Level 2 classification. The fair values of the Company’s long-term borrowings are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements resulting in a Level 2 classification. Subordinated Debentures: The fair values of the Company’s Subordinated Debentures are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements resulting in a Level 2 classification. Accrued Interest Receivable and Payable: The carrying amount of accrued interest approximates fair value resulting in a classification that is consistent with the earning assets and interest-bearing liabilities with which it is associated. Off-balance Sheet Instruments: Fair values for off-balance sheet, credit-related financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The fair value of commitments is not material. Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. |
Note 4 - Loans and Allowance for Loan Losses (Details) - Risk Category of Commercial Loans (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Commercial real estate: | ||
Commercial Loans | $ 232,598 | $ 232,249 |
Owner Occupied [Member] | Pass [Member]
|
||
Commercial real estate: | ||
Commercial Loans | 88,357 | 87,614 |
Owner Occupied [Member] | Criticized [Member]
|
||
Commercial real estate: | ||
Commercial Loans | 7,981 | 14,057 |
Owner Occupied [Member] | Classified [Member]
|
||
Commercial real estate: | ||
Commercial Loans | 2,894 | 3,171 |
Owner Occupied [Member]
|
||
Commercial real estate: | ||
Commercial Loans | 99,232 | 104,842 |
Nonowner Occupied [Member] | Pass [Member]
|
||
Commercial real estate: | ||
Commercial Loans | 43,530 | 39,627 |
Nonowner Occupied [Member] | Criticized [Member]
|
||
Commercial real estate: | ||
Commercial Loans | 601 | 2,171 |
Nonowner Occupied [Member] | Classified [Member]
|
||
Commercial real estate: | ||
Commercial Loans | 9,628 | 10,994 |
Nonowner Occupied [Member]
|
||
Commercial real estate: | ||
Commercial Loans | 53,759 | 52,792 |
Construction [Member] | Pass [Member]
|
||
Commercial real estate: | ||
Commercial Loans | 20,273 | 16,276 |
Construction [Member] | Criticized [Member]
|
||
Commercial real estate: | ||
Commercial Loans | 0 | 0 |
Construction [Member] | Classified [Member]
|
||
Commercial real estate: | ||
Commercial Loans | 1,035 | 1,100 |
Construction [Member]
|
||
Commercial real estate: | ||
Commercial Loans | 21,308 | 17,376 |
Commercial and Industrial [Member] | Pass [Member]
|
||
Commercial real estate: | ||
Commercial Loans | 53,539 | 47,226 |
Commercial and Industrial [Member] | Criticized [Member]
|
||
Commercial real estate: | ||
Commercial Loans | 557 | 4,793 |
Commercial and Industrial [Member] | Classified [Member]
|
||
Commercial real estate: | ||
Commercial Loans | 4,203 | 5,220 |
Commercial and Industrial [Member]
|
||
Commercial real estate: | ||
Commercial Loans | 58,299 | 57,239 |
Pass [Member]
|
||
Commercial real estate: | ||
Commercial Loans | 205,699 | 190,743 |
Criticized [Member]
|
||
Commercial real estate: | ||
Commercial Loans | 9,139 | 21,021 |
Classified [Member]
|
||
Commercial real estate: | ||
Commercial Loans | $ 17,760 | $ 20,485 |
Note 3 - Securities (Details) - Amortized Cost and Estimated Fair Value of Held-to-Maturity Securities (USD $)
In Thousands, unless otherwise specified |
6 Months Ended | |
---|---|---|
Jun. 30, 2013
|
Dec. 31, 2012
|
|
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 23,746 | |
Gross Unrecognized Gains | 599 | |
Gross Unrecognized Losses | (425) | |
Estimated Fair Value | 23,920 | 24,624 |
US States and Political Subdivisions Debt Securities [Member]
|
||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 23,732 | |
Gross Unrecognized Gains | 599 | |
Gross Unrecognized Losses | (425) | |
Estimated Fair Value | 23,906 | |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
|
||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 14 | |
Estimated Fair Value | $ 14 |