10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K

x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2014

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission file number 001- 36192

First Citizens Banc Corp

(Exact name of registrant as specified in its charter)

Ohio	34-1558688
State or other jurisdiction of incorporation or organization	(IRS Employer Identification No.)

100 East Water Street, Sandusky, Ohio	44870
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code (419) 625-4121

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Name of each exchange on which registered
Common shares, no par value	The NASDAQ Stock Market LLC (NASDAQ Capital Market)
Depositary Shares, each representing 1/40th of a 6.50% Noncumulative Redeemable Convertible Perpetual Preferred share, Series B, no par value	The NASDAQ Stock Market LLC (NASDAQ Capital Market)

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes  ¨    No  x

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    Yes  ¨    No  x

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (Section 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.    ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer”, and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (check one):

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	¨  (Do not check if smaller reporting company)	Smaller reporting company	x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).    Yes  ¨    No  x

The aggregate market value of the voting and non-voting common equity stock held by non-affiliates of the registrant based upon the closing market price as of June 30, 2014 was $60,305,367. For this purpose, shares held by non-affiliates include all outstanding shares except those held by the directors and executive officers of the registrant.

As of February 28, 2015, there were 7,800,494 common shares, no par value, of the registrant issued and outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant’s Annual Report to Shareholders for the fiscal year ended December 31, 2014 (the “2014 Annual Report”) are incorporated by reference into Parts I and II of this Form 10-K. Portions of the registrant’s Proxy Statement for the registrant’s 2015 Annual Meeting of Shareholders to be held on April 21, 2015 (the “2015 Proxy Statement”) are incorporated by reference into Part III of this Form 10-K.

INDEX

Part I
Item 1.	Business	2
Item 1A.	Risk Factors	22
Item 1B.	Unresolved Staff Comments	35
Item 2.	Properties	35
Item 3.	Legal Proceedings	35
Item 4.	Mine Safety Disclosures	35
Part II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	36
Item 6.	Selected Financial Data	36
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	36
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	36
Item 8.	Financial Statements and Supplementary Data	37
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	38
Item 9A.	Controls and Procedures	38
Item 9B.	Other Information	38
Part III
Item 10.	Directors, Executive Officers and Corporate Governance	39
Item 11.	Executive Compensation	39
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	39
Item 13.	Certain Relationships and Related Transactions, and Director Independence	39
Item 14.	Principal Accountant Fees and Services	39
Part IV
Item 15.	Exhibits and Financial Statement Schedules	40
Signatures		44

PART I

Item 1. Business

(a) General Development of Business

FIRST CITIZENS BANC CORP (FCBC) was organized under the laws of the State of Ohio on February 19, 1987 and is a registered financial holding company under the Gramm-Leach-Bliley Act of 1999, as amended. FCBC’s office is located at 100 East Water Street, Sandusky, Ohio. FCBC and its subsidiaries are sometimes referred to together as the Company. The Company had total consolidated assets of $1,213,191 at December 31, 2014.

THE CITIZENS BANKING COMPANY (Citizens), owned by FCBC since 1987, opened for business in 1884 as The Citizens National Bank. In 1898, Citizens was reorganized under Ohio banking law and was known as The Citizens Bank and Trust Company. In 1908, Citizens surrendered its trust charter and began operation as The Citizens Banking Company. Citizens is an insured bank under the Federal Deposit Insurance Act. Citizens maintains its main office at 100 East Water Street, Sandusky, Ohio and operates branch banking offices in the following Ohio communities: Sandusky (2), Norwalk (2), Berlin Heights, Huron, Port Clinton, Castalia, New Washington, Shelby (2), Willard, Greenwich, Plymouth, Shiloh, Akron, Dublin, Plain City, Russells Point, Urbana (2), West Liberty and Quincy. Citizens accounted for 99.8% of the Company’s consolidated assets at December 31, 2014.

A new name for the bank is being introduced during the first quarter of 2015. The new name, Civista Bank, fulfills our strategic direction to solidify our dual Citizens/Champaign brand and distinguish ourselves from the many other Citizens’ Banks in existing and prospective markets. Created from the words, “civic” and “vista”, Civista uniquely reflects our commitment to the community, our Citizens heritage and our view toward the future. Our commitment to community banking and our shareholders remains at the heart of all we do.

FIRST CITIZENS INSURANCE AGENCY, INC. (Insurance Agency) was formed in 2001 to allow the Company to participate in commission revenue generated through its third party insurance agreement. Assets of the Insurance Agency were not significant as of December 31, 2014.

WATER STREET PROPERTIES (Water St.) was formed in 2003 to hold properties repossessed by FCBC subsidiaries. Assets of Water St. were not significant as of December 31, 2014.

FC REFUND SOLUTIONS, INC. (FCRS) was formed in 2012 and remained inactive for the periods presented. Assets of FCRS were not significant as of December 31, 2014.

FIRST CITIZENS INVESTMENTS, INC. (FCI) was formed in the fourth quarter of 2007 as a wholly-owned subsidiary of Citizens to hold and manage its securities portfolio. The operations of FCI are located in Wilmington, Delaware.

FIRST CITIZENS CAPITAL LLC (FCC) was also formed in the fourth quarter of 2007 as a wholly-owned subsidiary of Citizens to hold inter-company debt that is eliminated in consolidation. The operations of FCC are located in Wilmington, Delaware.

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(b) Industry Segments

FCBC is a financial holding company. Through its subsidiary bank, the Company is primarily engaged in the business of community banking, which accounts for substantially all of its revenue, operating income and assets.

(c) Narrative Description of Business

General

The Company’s primary business is incidental to the subsidiary bank. Citizens, located in Erie, Crawford, Champaign, Franklin, Logan, Madison, Summit, Huron, Ottawa and Richland Counties, Ohio, conducts a general banking business that involves collecting customer deposits, making loans, purchasing securities, and offering Trust services.

Interest and fees on loans accounted for 67% of total revenue for 2014, 68% of total revenue for 2013, and 69% of total revenue for 2012. The Company’s primary focus of lending continues to be real estate loans, both residential and commercial in nature. Residential real estate mortgages comprised 30% of the total loan portfolio in 2014, 29% of the total loan portfolio in 2013 and 31% of the total loan portfolio in 2012. Commercial real estate loans comprised 49% of the total loan portfolio in 2014, 52% in 2013, and 53% in 2012. Commercial and agriculture loans comprised 12% of the total loan portfolio in 2014, 13% in 2013, and 12% in 2012. Citizens’ loan portfolio does not include any foreign-based loans, loans to lesser-developed countries or loans to FCBC.

On a parent company only basis, FCBC’s primary source of funds is the receipt of dividends paid by its subsidiaries, principally Citizens. The ability of Citizens to pay dividends is subject to limitations under various laws and regulations and to prudent and sound banking principles. Generally, subject to certain minimum capital requirements, Citizens may declare a dividend without the approval of the State of Ohio Division of Financial Institutions unless the total of the dividends in a calendar year exceeds the total net profits of the bank for the year combined with the retained profits of the bank for the two preceding years. At December 31, 2014, Citizens had available net profits to pay anticipated dividends.

The Company’s business is not seasonal, nor is it dependent on a single or small group of customers.

In the opinion of management, the Company does not have exposure to material costs associated with environmental hazardous waste mitigation or cleanup.

Competition

The market area for Citizens is Erie, Crawford, Champaign, Franklin, Logan, Summit, Huron, Ottawa, Madison and Richland Counties in Ohio. Traditional financial service competition for Citizens consists of large regional financial institutions, community banks, thrifts and credit unions operating within Citizens’ market area. Nontraditional sources of competition for loan and deposit dollars come from captive auto finance companies, mortgage banking companies, internet banks, brokerage companies, insurance companies and direct mutual funds.

Citizens experiences intense competition within several of its markets due to the presence of several national, regional and local financial institutions and other service providers. Citizens primarily competes based on client service, convenience and responsiveness to customer needs, availability and selection of products, and rates of interest on loans and deposits. However, some of Citizens’ competitors have greater resources and, as such, higher lending limits, which may adversely affect the ability of Citizens to compete.

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Employees

FCBC has no employees. Citizens employs approximately 303 full-time equivalent employees to whom a variety of benefits are provided. FCBC and its subsidiaries are not parties to any collective bargaining agreements. Management considers its relationship with its employees to be good.

Supervision and Regulation

The Bank Holding Company Act: As a financial holding company, FCBC is subject to regulation under the Bank Holding Company Act of 1956, as amended (the BHCA), and the examination and reporting requirements of the Board of Governors of the Federal Reserve System (Federal Reserve Board). Under the BHCA, FCBC is subject to periodic examination by the Federal Reserve Board and is required to file periodic reports regarding its operations and any additional information that the Federal Reserve Board may require. The Federal Reserve Board also has extensive enforcement authority over financial and bank holding companies, including the ability to assess civil money penalties, issue cease and desist and removal orders, and require that a financial or bank holding company divest subsidiaries, including its subsidiary banks.

Under Federal Reserve Board policy, a financial or bank holding company is expected to act as a source of strength to each of its subsidiary banks. In accordance with this policy, the Federal Reserve Board may require a financial or bank holding company to contribute additional capital to an undercapitalized subsidiary bank and may disapprove of the payment of dividends to shareholders if the Federal Reserve Board believes the payment of such dividends would be an unsafe or unsound practice.

The BHCA generally limits the activities of a bank holding company to banking, managing or controlling banks, furnishing services to or performing services for its subsidiaries and engaging in any other activities that the Federal Reserve Board has determined to be so closely related to banking or to managing or controlling banks as to be a proper incident to those activities. In addition, the BHCA requires every bank holding company to obtain the approval of the Federal Reserve Board prior to acquiring all or substantially all of the assets of any bank or another financial or bank holding company, acquiring direct or indirect ownership or control of more than 5% of the voting shares of any bank not already majority-owned by it, or merging or consolidating with another financial or bank holding company.

Gramm-Leach-Bliley Act: The Gramm-Leach-Bliley Act of 1999 (GLBA) permits qualifying bank holding companies to become financial holding companies and thereby affiliate with securities firms and insurance companies and engage in other activities that are financial in nature. A bank holding company may become a financial holding company if each of its subsidiary banks is well capitalized under the FDIC’s Deposit Insurance Corporation Act of 1991 prompt corrective action provisions, is well managed, and has at least a satisfactory rating under the Community Reinvestment Act, by filing a declaration that the bank holding company wishes to become a financial holding company. In March, 2000, FCBC became a financial holding company. No regulatory approval is required for a financial holding company to acquire a company, other than a bank or a savings association, engaged in activities that are financial in nature or incidental to activities that are financial in nature, as determined by the Federal Reserve Board.

The GLBA defines “financial in nature” to include:

• securities underwriting, dealing and market making;

• sponsoring mutual funds and investment companies;

• insurance underwriting and agency;

• merchant banking; and

• activities that the Federal Reserve Board has determined to be closely related to banking.

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Transactions with Affiliates, Directors, Executive Officers and Shareholders: Transactions between Citizens and its affiliates, including FCBC, are subject to Sections 23A and 23B of the Federal Reserve Act, and Federal Reserve Board Regulation W, which generally limit the extent to which Citizens may engage in “covered transactions” with affiliates and require that the terms of such transactions be the same, or at least as favorable, to Citizens as the terms provided in a similar transaction between Citizens and an unrelated party. The term “covered transaction” includes the making of loans to an affiliate, the purchase of assets from an affiliate, the issuance of a guarantee on behalf of an affiliate, the purchase of securities issued by an affiliate and other similar types of transactions.

A bank’s authority to extend credit to executive officers, directors and greater than 10% shareholders, as well as entities such persons control, is subject to Sections 22(g) and 22(h) of the Federal Reserve Act and Regulation O promulgated thereunder by the Federal Reserve Board. Among other things, these loans must be made on terms (including interest rates charged and collateral required) substantially the same as those offered to unaffiliated individuals or be made as part of a benefit or compensation program and on terms widely available to employees, and must not involve a greater than normal risk of repayment. In addition, the amount of loans a bank may make to these affiliated persons is based, in part, on the bank’s capital position, and specified approval procedures must be followed in making loans which exceed specified amounts.

Banking subsidiaries of financial and bank holding companies are also subject to federal regulation regarding such matters as reserves, limitations on the nature and amount of loans and investments, issuance or retirement of its own securities, limitations on the payment of dividends and other aspects of banking operations.

Privacy Provisions of Gramm-Leach-Bliley Act: Under the GLBA, federal banking regulators adopted rules that limit the ability of banks and other financial institutions to disclose non-public information about consumers to non-affiliated third parties. These rules contain extensive provisions on a customer’s right to privacy of non-public personal information. Except in certain cases, an institution may not provide personal information to unaffiliated third parties unless the institution discloses that such information may be disclosed and the customer is given the opportunity to opt out of such disclosure. The privacy provisions of the GLBA affect how consumer information is conveyed to outside vendors. FCBC and its subsidiaries are also subject to certain state laws that deal with the use and distribution of non-public personal information.

Federal Deposit Insurance Corporation (FDIC): The FDIC is an independent federal agency which insures the deposits of federally-insured banks and savings associations up to certain prescribed limits and safeguards the safety and soundness of financial institutions. The deposits of Citizens are subject to the deposit insurance assessments of the FDIC. Under the FDIC’s deposit insurance assessment system, the assessment rate for any insured institution may vary according to regulatory capital levels of the institution and other factors such as supervisory evaluations.

The FDIC is authorized to prohibit any insured institution from engaging in any activity that poses a serious threat to the insurance fund and may initiate enforcement actions against a bank, after first giving the institution’s primary regulatory authority an opportunity to take such action. The FDIC may also terminate the deposit insurance of any institution that has engaged in or is engaging in unsafe or unsound practices, is in an unsafe or unsound condition to continue operations or has violated any applicable law, order or condition imposed by the FDIC.

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Consumer Financial Protection Bureau: The Dodd-Frank Act established the Consumer Financial Protection Bureau (the “CFPB”), which regulates consumer financial products and services and certain financial services providers. The CFPB is authorized to prevent unfair, deceptive and abusive acts or practices and seeks to ensure consistent enforcement of laws so that consumers have access to fair, transparent and competitive markets for consumer financial products and services. The CFPB has rulemaking and interpretive authority.

Community Reinvestment Act: The Community Reinvestment Act requires depository institutions to assist in meeting the credit needs of their market areas, including low- and moderate-income areas, consistent with safe and sound banking practice. Under this Act, each institution is required to adopt a statement for each of its market areas describing the depositary institution’s efforts to assist in its community’s credit needs. Depositary institutions are periodically examined for compliance and assigned ratings. Banking regulators consider these ratings when considering approval of a proposed transaction by an institution.

USA Patriot Act of 2001: The Uniting and Strengthening of America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (the USA Patriot Act) gives the United States Government greater powers over financial institutions to combat money laundering and terrorist access to the financial system in our country. The USA Patriot Act requires the Company to establish a program for obtaining identifying information from customers seeking to open new accounts and establish enhanced due diligence policies, procedures and controls designed to detect and report suspicious activity.

Sarbanes-Oxley Act of 2002: As mandated by the Sarbanes-Oxley Act of 2002, the SEC has adopted rules and regulations governing, among other matters, corporate governance, auditing and accounting, executive compensation and enhanced and timely disclosure of corporate information. The NASDAQ Stock Market LLC (Nasdaq) has also adopted corporate governance rules. The Board of Directors of the Company has taken a series of actions to strengthen and improve the Company’s governance practices in light of the rules of the SEC and Nasdaq. The Board of Directors has adopted charters for the Audit Committee, the Compensation Committee and the Nominating Committee, as well as a Code of Conduct (Ethics) applicable to all directors, officers and employees of the Company. In addition, in accordance with Section 302(a) of the Sarbanes-Oxley Act, written certifications by FCBC’s Chief Executive Officer and Chief Financial Officer are required. These certifications attest that FCBC’s quarterly and annual reports filed with the SEC do not contain any untrue statement of a material fact. See Item 9A “Controls and Procedures” in Part II of this Form 10-K for FCBC’s evaluation of its disclosure controls and procedures.

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Regulation of Bank Subsidiary: As an Ohio chartered bank, Citizens is subject to supervision and regulation by the State of Ohio Department of Commerce, Division of Financial Institutions (ODFI). In addition, Citizens is a member of the Federal Reserve System and, therefore, is subject to supervision and regulation by the Federal Reserve Board. Citizens is subject to periodic examinations by the ODFI, and Citizens is additionally subject to periodic examinations by the Federal Reserve Board. These examinations are designed primarily for the protection of the depositors of the bank and not shareholders.

Regulatory Capital Requirements: Prior to January 1, 2015, the guidelines included a minimum for the ratio of total capital to risk-weighted assets of 8%, with at least half of the ratio composed of common shareholders’ equity, minority interests in certain equity accounts of consolidated subsidiaries and a limited amount of qualifying preferred stock and qualified trust preferred securities, less goodwill and certain other intangible assets (known as “Tier 1” risk-based capital). The guidelines also provided for a minimum ratio of Tier 1 capital to average assets, or “leverage ratio,” of 3% for financial holding companies and bank holding companies that met certain criteria, including having the highest regulatory rating, and 4% for all other financial holding companies and bank holding companies.

The risk-based capital guidelines adopted by the federal banking agencies are based on the “International Convergence of Capital Measurement and Capital Standard” (Basel I), published by the Basel Committee on Banking Supervision (the “Basel Committee”) in 1988. In 2004, the Basel Committee published a new capital adequacy framework (Basel II) for large, internationally active banking organizations, and in December 2010 and January 2011, the Basel Committee issued an update to Basel II (“Basel III”). The Basel Committee frameworks did not become applicable to banks supervised in the United States until adopted into United States law or regulations. Although the United States banking regulators imposed some of the Basel II and Basel III rules on banks with $250 billion or more in assets or $10 billion of on-balance sheet foreign exposure, it was not until July 2013 that the United States banking regulators issued final (or, in the case of the FDIC, interim final) new capital rules applicable to smaller banking organizations which also implement certain of the provisions of the Dodd-Frank Act (the “Basel III Capital Rules”). Community banking organizations, including FCBC and Citizens, began transitioning to the new rules on January 1, 2015. The new minimum capital requirements became effective on January 1, 2015, whereas a new capital conservation buffer and deductions from common equity capital phase in from January 1, 2016 through January 1, 2019, and most deductions from common equity tier 1 capital will phase in from January 1, 2015 through January 1, 2019.

The new rules include (a) a new common equity tier 1 capital ratio of at least 4.5%, (b) a Tier 1 capital ratio of at least 6.0%, rather than the former 4.0%, (c) a minimum total capital ratio that remains at 8.0%, and (d) a minimum leverage ratio of 4.0%.

Common equity for the common equity tier 1 capital ratio includes common stock (plus related surplus) and retained earnings, plus limited amounts of minority interests in the form of common stock, less the majority of certain regulatory deductions.

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Tier 1 capital includes common equity as defined for the common equity tier 1 capital ratio, plus certain non-cumulative preferred stock and related surplus, cumulative preferred stock and related surplus and trust preferred securities that have been grandfathered (but which are not permitted going forward), and limited amounts of minority interests in the form of additional Tier 1 capital instruments, less certain deductions.

Tier 2 capital, which can be included in the total capital ratio, includes certain capital instruments (such as subordinated debt) and limited amounts of the allowance for loan and lease losses, subject to new eligibility criteria, less applicable deductions.

The deductions from common equity tier 1 capital include goodwill and other intangibles, certain deferred tax assets, mortgage-servicing assets above certain levels, gains on sale in connection with a securitization, investments in a banking organization’s own capital instruments and investments in the capital of unconsolidated financial institutions (above certain levels). The deductions phase in from 2015 through 2019.

Under the guidelines, capital is compared to the relative risk related to the balance sheet. To derive the risk included in the balance sheet, one of several risk weights is applied to different balance sheet and off-balance sheet assets, primarily based on the relative credit risk of the counterparty. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Some of the risk weightings have been changed effective January 1, 2015.

The new rules also place restrictions on the payment of capital distributions, including dividends, and certain discretionary bonus payments to executive officers if the company does not hold a capital conservation buffer of greater than 2.5 percent composed of common equity tier 1 capital above its minimum risk-based capital requirements, or if its eligible retained income is negative in that quarter and its capital conservation buffer ratio was less than 2.5 percent at the beginning of the quarter. The capital conservation buffer phases in starting on January 1, 2016, at 0.625%. The implementation of Basel III is not expected to have a material impact on FCBC’s or Citizens’ capital ratios.

At December 31, 2014, both FCBC and Citizens were in compliance with these capital requirements. For FCBC’s capital ratios, see Note 18 to the Company’s 2014 Consolidated Financial Statements.

The Federal Reserve Board has adopted regulations governing prompt corrective action to resolve the problems of capital deficient and otherwise troubled state-chartered member banks. At each successively lower defined capital category, a bank is subject to more restrictive and numerous mandatory or discretionary regulatory actions or limits, and the Federal Reserve Board has less flexibility in determining how to resolve the problems of the institution. In addition, the Federal Reserve Board generally can downgrade a bank’s capital category, notwithstanding its capital level, if, after notice and opportunity for hearings, the bank is deemed to be engaged in an unsafe or unsound practice, because it has not corrected deficiencies that resulted in it receiving a less than satisfactory examination rating on matters other than capital or it is deemed to be in an unsafe or unsound condition. Citizens’ capital at December 31, 2014, met the standards for the highest capital category, a “well-capitalized” bank.

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Federal Reserve Board regulations also limit the payment of dividends by Citizens to FCBC. Citizens may not pay a dividend if it would cause Citizens not to meet its capital requirements. In addition, the dividends that Citizens may pay to FCBC without prior approval of the Federal Reserve Board is limited to net income for the year plus its retained net income for the preceding two years.

TARP Capital Purchase Program: On January 23, 2009, the Corporation issued and sold to the U.S. Treasury of 23,184 of newly-issued non-voting preferred shares in conjunction with the Corporation’s participation in the Troubled Asset Relief Program (TARP). The Corporation and the U.S. Treasury entered into a Letter Agreement, dated January 23, 2009, including the Securities Purchase Agreement – Standard Terms attached thereto, pursuant to which the Corporation issued and sold to the U.S. Treasury (1) 23,184 Fixed Rate Cumulative Perpetual Preferred Shares, Series A (the “Series A Preferred Shares”), each without par value and having a liquidation preference of $1,000 per share (Preferred Shares), and (2) a Warrant to purchase 469,312 common shares of the Corporation, each without par value, at an exercise price of $7.41 per share. The Warrant had a ten-year term. Under the standardized terms of the preferred shares, cumulative dividends on the Preferred Shares accrued on the liquidation preference at a rate of 5% per annum for the first five years, and at a rate of 9% per annum thereafter. The Preferred Shares had no maturity date and ranked senior to the common shares with respect to the payment of dividends and distributions and amounts payable upon liquidation, dissolution and winding up of the Corporation. The Preferred Shares qualified as Tier 1 capital for regulatory purposes.

On July 3, 2012, the U.S. Treasury completed the sale of all 23,184 of the Series A Preferred Shares to various investors pursuant to a modified “Dutch auction” process. On September 5, 2012, the Corporation completed the repurchase of the Warrant for an aggregate purchase price of $563.

On December 19, 2013, the Company completed the sale of 1,000,000 depositary shares, each representing a 1/40th ownership interest in a 6.50% Noncumulative Redeemable Convertible Perpetual Preferred Share, Series B, of the Company, with a liquidation preference of $1,000 per share (equivalent to $25.00 per depositary share). The Company sold the maximum of 1,000,000 depositary shares in the offering, resulting in gross proceeds to the Company of $25,000.

Using proceeds from the sale of the depositary shares, the Company redeemed all of the Series A Preferred Shares for an aggregate purchase price of $22,857, which redemption was completed as of February 15, 2014.

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Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010: Federal regulators continue to implement many provisions of the Dodd-Frank Act, which was signed into law by President Obama on July 21, 2010. The Dodd-Frank Act created many new restrictions and an expanded framework of regulatory oversight for financial institutions, including depository institutions. Currently, federal regulators are still in the process of drafting the implementing regulations for many portions of the Dodd-Frank Act. FCBC is closely monitoring all relevant sections of the Dodd-Frank Act to ensure continued compliance with these regulatory requirements.

The Volcker Rule: In December 2013, five federal agencies adopted a final regulation implementing the Volcker Rule provision of the Dodd-Frank Act (the “Volcker Rule”). The Volcker Rule places limits on the trading activity of insured depository institutions and entities affiliated with a depository institution, subject to certain exceptions. The trading activity includes a purchase or sale as principal of a security, derivative, commodity future or option on any such instrument in order to benefit from short-term price movements or to realize short-term profits. The Volcker Rule exempts specified U.S. Government, agency and/or municipal obligations, and it excepts trading conducted in certain capacities, including as a broker or other agent, through a deferred compensation or pension plan, as a fiduciary on behalf of customers, to satisfy a debt previously contracted, repurchase and securities lending agreements and risk-mitigating hedging activities.

The Volcker Rule also prohibits a banking entity from having an ownership interest in, or certain relationships with, a hedge fund or private equity fund, with a number of exceptions. The Company does not engage in any of the trading activities or have any ownership interest in or relationship with any of the types of funds regulated by the Volcker Rule.

Many aspects of the Dodd-Frank Act are still subject to rulemaking and will take effect over several years, making it difficult to anticipate the overall financial impact on FCBC, its subsidiaries, their respective customers or the financial services industry more generally.

Executive and Incentive Compensation

In June 2010, the Federal Reserve Board, the OCC and the FDIC issued joint interagency guidance on incentive compensation policies (Joint Guidance) intended to ensure that the incentive compensation policies of banking organizations do not undermine the safety and soundness of such organizations by encouraging excessive risk-taking. This principles-based guidance, which covers all employees that have the ability to materially affect the risk profile of an organization, either individually or as part of a group, is based upon the key principles that a banking organization’s incentive compensation arrangements should (a) provide incentives that do not encourage risk-taking beyond the organization’s ability to effectively identify and manage risks, (b) be compatible with effective internal controls and risk management and (c) be supported by strong corporate governance, including active and effective oversight by the organization’s board of directors.

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Pursuant to the Joint Guidance, the Federal Reserve Board will review as part of a regular, risk-focused examination process, the incentive compensation arrangements of financial institutions such as FCBC. Such reviews will be tailored to each organization based on the scope and complexity of the organization’s activities and the prevalence of incentive compensation arrangements. The findings of the supervisory initiatives will be included in reports of examination and deficiencies will be incorporated into the institution’s supervisory ratings, which can affect the institution’s ability to make acquisitions and take other actions. Enforcement actions may be taken against an institution if its incentive compensation arrangements, or related risk-management control or governance processes, pose a risk to the organization’s safety and soundness and prompt and effective measures are not being taken to correct the deficiencies.

On February 7, 2011, federal banking regulatory agencies jointly issued proposed rules on incentive-based compensation arrangements under applicable provisions of the Dodd-Frank Act (Proposed Rules). The Proposed Rules generally apply to financial institutions with $1.0 billion or more in assets that maintain incentive-based compensation arrangements for certain covered employees. The Proposed Rules (i) prohibit covered financial institutions from maintaining incentive-based compensation arrangements that encourage covered persons to expose the institution to inappropriate risk by providing the covered person with “excessive” compensation, (ii) prohibit covered financial institutions from establishing or maintaining incentive-based compensation arrangements for covered persons that encourage inappropriate risks that could lead to a material financial loss, (iii) require covered financial institutions to maintain policies and procedures appropriate to their size, complexity and use of incentive-based compensation to help ensure compliance with the Proposed Rules and (iv) require covered financial institutions to provide enhanced disclosure to regulators regarding their incentive-based compensation arrangements for covered persons within 90 days following the end of the fiscal year.

Pursuant to rules adopted by the stock exchanges and approved by the SEC in January 2013 under the Dodd-Frank Act, public companies are required to implement “clawback” procedures for incentive compensation payments and to disclose the details of the procedures which allow recovery of incentive compensation that was paid on the basis of erroneous financial information necessitating a restatement due to material noncompliance with financial reporting requirements. This clawback policy is intended to apply to compensation paid within a three-year look-back window of the restatement and would cover all executives who received incentive awards. Public company compensation committee members are also required to meet heightened independence requirements and to consider the independence of compensation consultants, legal counsel and other advisors to the compensation committee. The compensation committees must have the authority to hire advisors and to have the company fund reasonable compensation of such advisors.

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Effects of Government Monetary Policy

The earnings of the Company are affected by general and local economic conditions and by the policies of various governmental regulatory authorities. In particular, the Federal Reserve Board regulates money and credit conditions and interest rates to influence general economic conditions, primarily through open market acquisitions or dispositions of United States Government securities, varying the discount rate on member bank borrowings and setting reserve requirements against member and nonmember bank deposits. Federal Reserve Board monetary policies have had a significant effect on the interest income and interest expense of commercial banks, including Citizens, and are expected to continue to do so in the future.

Available Information

FCBC’s maintains an Internet website at www.fcza.com (this uniform resource locator, or URL, is an inactive textual reference only and is not intended to incorporate FCBC’s website into this Annual Report on Form 10-K). FCBC makes available free of charge on or through its Internet website its annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the Exchange Act), as well as FCBC’s definitive proxy statements filed pursuant to Section 14 of the Exchange Act, as soon as reasonably practicable after FCBC electronically files such material with, or furnishes it to, the SEC.

Statistical Information

The following section contains certain financial disclosures related to the Company as required under the Securities and Exchange Commission’s Industry Guide 3, “Statistical Disclosures by Bank Holding Companies”, or a specific reference as to the location of the required disclosures in the Registrant’s 2014 Annual Report to Shareholders, portions of which are incorporated in this Form 10-K by reference.

I. Distribution of Assets, Liabilities and Shareholders’ Equity, Interest Rates and Interest Differential

Average balance sheet information and the related analysis of net interest income for the years ended December 31, 2014, 2013 and 2012 is included on pages 11 through 13 - “Distribution of Assets, Liabilities and Shareholders’ Equity, Interest Rates and Interest Differential” and “Changes in Interest Income and Interest Expense Resulting from Changes in Volume and Changes in Rates”, within Management’s Discussion and Analysis of Financial Condition and Results of Operations of the Company’s 2014 Annual Report to Shareholders and is incorporated into this Item I by reference.

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II. Investment Portfolio

The following table sets forth the carrying amount of securities at December 31.

	2014		2013		2012
	(Dollars in thousands)
Available for sale (1)
U.S. Treasury securities and obligations of U.S. Government agencies	$	42,902	$	51,560	$	54,286
Obligations of states and political subdivisions		88,021		80,625		79,806
Mortgage-backed securities in government sponsored entities		66,442		66,979		69,435
Total debt securities		197,365		199,164		203,527
Equity securities in financial institutions		540		449		434
Total	$	197,905	$	199,613	$	203,961

(1) The Corporation had no securitites of an “issuer” where the aggregate carrying value of such securitites exceeded ten percent of shareholders’ equity.

The following tables set forth the maturities of securities at December 31, 2014 and the weighted average yields of such debt securities. Maturities are reported based on stated maturities and do not reflect principal prepayment assumptions.

	Within one year					After one but within five years					After five but within ten years					After ten years
	Amount		Yield			Amount		Yield			Amount		Yield			Amount		Yield
	(Dollars in thousands)
Available for Sale (2)
U.S. Treasury securities and obligations of U.S. government agencies	$	—		—		$	22,740		0.98	%	$	14,800		1.32	%	$	5,362		1.35	%
Obligations of states and political subdivisions (1)		629		1.25			4,983		2.39			21,391		4.15			61,018		4.15
Mortgage-backed securities in government sponsored entities		—		—			19,729		1.42			13,532		1.80			33,181		2.79
Total	$	629		1.25	%	$	47,452		1.36	%	$	49,723		3.08	%	$	99,561		3.43	%

(1) Weighted average yields on nontaxable obligations have been computed based on actual yields stated on the security.

(2) The weighted average yield has been computed using the historical amortized cost for available-for-sale securities.

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III. Loan Portfolio

Types of Loans

The amounts of gross loans outstanding at December 31 are shown in the following table according to types of loans.

	2014		2013		2012		2011		2010
	(Dollars in thousands)
Commercial and agriculture	$	114,186	$	115,875	$	100,661	$	86,395	$	84,913
Commercial real estate - owner occupied		143,014		161,014		156,509		185,140		187,164
Commercial real estate - non-owner occupied		308,666		282,832		278,299		186,712		149,087
Residential real estate		268,510		250,691		250,598		274,995		295,038
Real estate construction		65,452		39,964		19,677		39,790		39,341
Consumer and other		15,029		10,865		9,809		12,236		11,780
	$	914,857	$	861,241	$	815,553	$	785,268	$	767,323

Commercial loans are those made for commercial, industrial and professional purposes to individuals, sole proprietorships, partnerships, corporations and other business enterprises. Agriculture loans are for financing agricultural production, including all costs associated with growing crops or raising livestock. Commercial and agriculture loans may be secured, other than by real estate, or unsecured, requiring one single repayment or on an installment repayment schedule. The loans involve certain risks relating to changes in local and national economic conditions and the resulting effect on the borrowing entities. Secured loans not collateralized by real estate mortgages maintain a loan-to-value ratio ranging from 50% in the case of certain stocks, to 100% in the case of savings or time deposit accounts. Unsecured credits rely on the financial strength and previous credit experience of the borrower and in many cases the financial strength of the principals when such credit is extended to a corporation.

Commercial real estate mortgage loans are made predicated on having a security interest in real property and are secured wholly or substantially by that lien on real property. Commercial real estate mortgage loans are generally underwritten with a maximum loan-to-value ratio of 80%.

Residential real estate mortgage loans and home equity lines of credit are made predicated on security interests in real property and secured wholly or substantially by those liens on real property. Such real estate mortgage loans are primarily loans secured by one-to-four family real estate. Residential real estate mortgage loans generally pose less risk to the Company due to the nature of the collateral being less susceptible to sudden changes in value.

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Real estate construction loans are for the construction of residential homes, new buildings or additions to existing buildings. Generally, these loans are secured by one-to-four family real estate or commercial real estate. The Company controls disbursements in connection with construction loans.

Consumer loans are made to individuals for household, family and other personal expenditures. These expenditures include the purchase of vehicles or furniture, educational expenses, medical expenses, taxes or vacation expenses. Consumer loans may be secured, other than by real estate, or unsecured, generally requiring repayment on an installment repayment schedule. Consumer loans pose a relatively higher credit risk. This higher risk is moderated by the use of certain loan to value limits on secured credits and aggressive collection efforts. The collectability of consumer loans is influenced by local and national economic conditions.

Letters of credit represent extensions of credit granted in the normal course of business, which are not reflected in the Company’s consolidated financial statements. As of December 31, 2014 and 2013, the Company was contingently liable for $1,207 and $2,611, respectively, with respect to outstanding letters of credit. In addition, Citizens had issued lines of credit to customers. Borrowings under such lines of credit are usually for the working capital needs of the borrower. At December 31, 2014 and 2013, Citizens had commitments to extend credit, excluding letters of credit, in the aggregate amounts of approximately $192,249 and $184,300, respectively. Of these amounts, $170,123 and $163,198 represented lines of credit and construction loans, and $22,126 and $21,102 represented overdraft protection commitments at December 31, 2014 and 2013, respectively. Such amounts represent the portion of total commitments that had not been used by customers as of December 31, 2014 and 2013.

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Maturities and Sensitivity of Loans to Changes in Interest Rates

The following table shows the amount of commercial and agriculture, commercial real estate, and real estate construction loans outstanding as of December 31, 2014, which, based on the contract terms for repayments of principal, are due in the periods indicated. In addition, the amounts due after one year are classified according to their sensitivity to changes in interest rates.

	Maturing
	Within one year		After one but within five years		After five years		Total
	(Dollars in thousands)
Commercial and agriculture	$	37,041	$	51,558	$	25,587	$	114,186
Commercial real estate - owner occupied		4,384		25,457		113,173		143,014
Commercial real estate - non-owner occupied		10,435		69,642		228,589		308,666
Real estate construction		8,127		24,924		32,401		65,452
	$	59,987	$	171,581	$	399,750	$	631,318

	Interest Sensitivity
	Fixed rate		Variable rate
	(Dollars in thousands)
Due after one but within five years	$	83,851	$	87,730
Due after five years		42,389		357,361
	$	126,240	$	445,091

The preceding maturity information is based on contract terms at December 31, 2014 and does not include any possible “rollover” at maturity date. In the normal course of business, Citizens considers and acts on the borrowers’ requests for renewal of loans at maturity. Evaluation of such requests includes a review of the borrower’s credit history, the collateral securing the loan and the purpose for such request.

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Risk Elements

The following table presents information concerning the amount of loans at December 31 that contain certain risk elements.

	2014		2013		2012		2011		2010
	(Dollars in thousands)
Loans accounted for on a nonaccrual basis (1)	$	13,558	$	20,459	$	29,855	$	25,768	$	22,175
Loans contractually past due 90 days or more as to principal or interest payments (2)		—		—		80		1,301		2,241
Loans whose terms have been renegotiated to provide a reduction or deferral of interest or principal because of deterioration in the financial position of the borrower (3)		4,928		5,234		7,250		10,284		8,561
Total	$	18,486	$	25,693	$	37,185	$	37,353	$	32,977
Impaired loans included in above totals	$	7,101	$	12,458	$	19,302	$	15,472	$	8,784
Impaired loans not included in above totals		4,048		5,599		6,788		11,908		10,389
Total impaired loans	$	11,149	$	18,057	$	26,090	$	27,380	$	19,173

(1) A loan is placed on nonaccrual status when doubt exists as to the collectability of the loan, including any accrued interest. With a few immaterial exceptions, commercial and agriculture, commercial real estate, residential real estate and construction loans past due 90 days are placed on nonaccrual unless they are well collateralized and in the process of collection. Generally, consumer loans are charged-off within 30 days after becoming past due 90 days unless they are well collateralized and in the process of collection. Once a loan is placed on nonaccrual, interest is only recognized on a cash basis where future collections of principal is probable.

(2) Excludes loans accounted for on a nonaccrual basis.

(3) Excludes loans accounted for on a nonaccrual basis and loans contractually past due 90 days or more as to principal or interest payments.

There were no loans as of December 31, 2014, other than those disclosed above, where known information about probable credit problems of borrowers caused management to have serious doubts as to the ability of such borrowers to comply with the present loan repayment terms. There were no other interest-bearing assets that would be required to be disclosed in the table above, if such assets were loans as of December 31, 2014. The gross interest income that would have been recorded on nonaccrual loans and restructured loans in 2014 if the loans had been current in accordance with their original terms and had been outstanding throughout the period or since origination, if held for part of the period, was $758. The amount of interest income on such loans actually included in net income in 2014 was $761.

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Interest income recognition associated with impaired loans was as follows.

	2014		2013		2012		2011		2010
	(Dollars in thousands)
Interest income on impaired loans, all of which was recognized on a cash basis	$	570	$	989	$	1,818	$	2,028	$	654

At December 31, 2014 and 2013, Citizens’ loan portfolio included industry concentrations for: Lessors of Real Estate; Agriculture; Accommodations & Restaurants; Construction Services; and Manufacturing. Management determines such concentrations using NAICS codes and regulatory standards that define significant concentrations as greater than 25 percent of Citizens’ capital, inclusive of the allowance for loan losses. In addition, management believes that Citizens’ most significant loan portfolio concentration and exposure relates to loans secured by real estate. There were no foreign loans outstanding at December 31, 2014.

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IV. Summary of Loan Loss Experience

Analysis of the Allowance for Loan Losses

The following table shows the daily average loan balances and changes in the allowance for loan losses for the years indicated.

	2014			2013			2012			2011			2010
	(Dollars in thousands)
Daily average amount of loans net of unearned income	$	874,432		$	819,152		$	780,786		$	763,918		$	784,263
Allowance for loan losses at beginning of year	$	16,528		$	19,742		$	21,257		$	21,768		$	15,271
Loan charge-offs:
Commercial and agriculture		338			483			841			2,447			2,710
Commercial real estate - owner occupied		1,661			989			1,644			1,612			4,201
Commercial real estate - non-owner occupied		198			815			1,796			2,949			452
Real estate mortgage		2,449			2,907			4,506			3,748			4,029
Real estate construction		—			136			446			981			799
Consumer and other		135			220			246			193			460
		4,781			5,550			9,479			11,930			12,651
Recoveries of loans previously charged-off:
Commercial and agriculture		249			141			353			307			303
Commercial real estate - owner occupied		363			265			287			296			646
Commercial real estate - non-owner occupied		50			184			325			94			4
Real estate mortgage		292			458			397			429			99
Real estate construction		6			108			131			387			—
Consumer and other		61			80			71			106			156
		1,021			1,236			1,564			1,619			1,208
Net charge-offs (1)		(3,760	)		(4,314	)		(7,915	)		(10,311	)		(11,443	)
Provision for loan losses (2)		1,500			1,100			6,400			9,800			17,940
Allowance for loan losses at year end	$	14,268		$	16,528		$	19,742		$	21,257		$	21,768
Allowance for loan losses as a percent of loans at year-end		1.56	%		1.92	%		2.42	%		2.71	%		2.84	%
Ratio of net charge-offs during the year to average loans outstanding		0.43	%		0.53	%		1.01	%		1.35	%		1.46	%

(1) The amount of net charge-offs fluctuates from year to year due to factors relating to the condition of the general economy, decline in market values of collateral and deteriorization of specific businesses.

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Allocation of Allowance for Loan Losses

The following table allocates the allowance for loan losses at December 31 to each loan category. The allowance has been allocated according to the amount deemed to be reasonably necessary to provide for the probable losses estimated to be incurred within the following categories of loans at the dates indicated.

	2014					2013
	Allowance		Percentage of loans to total loans			Allowance		Percentage of loans to total loans
	(Dollars in thousands)
Commercial and agriculture	$	1,822		12.5	%	$	2,841		13.5	%
Commercial real estate - owner occupied		2,580		15.6			3,263		18.7
Commercial real estate - non-owner occupied		4,798		33.7			4,296		32.8
Real estate mortgage		3,747		29.3			5,224		29.1
Real estate construction		428		7.2			184		4.6
Consumer and other		196		1.6			214		1.3
Unallocated		697		—			506		—
	$	14,268		100.0	%	$	16,528		100.0	%

	2012					2011
	Allowance		Percentage of loans to total loans			Allowance		Percentage of loans to total loans
	(Dollars in thousands)
Commercial and agriculture	$	2,811		12.3	%	$	2,876		11.0	%
Commercial real estate - owner occupied		4,836		19.2			6,011		23.6
Commercial real estate - non-owner occupied		5,303		34.1			4,560		23.8
Real estate mortgage		5,780		30.7			5,796		35.0
Real estate construction		349		2.4			974		5.1
Consumer and other		246		1.3			719		1.5
Unallocated		417		—			321		—
	$	19,742		100.0	%	$	21,257		100.0	%

	2010
	Allowance		Percentage of loans to total loans
	(Dollars in thousands)
Commercial and agriculture	$	3,639		11.1	%
Commercial real estate - owner occupied		5,920		24.4
Commercial real estate - non-owner occupied		3,907		19.4
Real estate mortgage		4,569		38.5
Real estate construction		2,139		5.1
Consumer and other		726		1.5
Unallocated		868		—
	$	21,768		100.0	%

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Citizens measures the adequacy of the allowance for loan losses by using both specific and general components. The specific component relates to the evaluation of each loan identified as impaired. The general component consists of a pooling of commercial credits risk graded as special mention and substandard, based on portfolio experience, and general reserves, which are based on an eight quarter loss migration analysis, adjusted for current economic factors. Factors in the determination of the economic reserve include items such as changes in the economic and business conditions of its market, changes in lending policies and procedures, changes in loan concentrations, as well as a few others. The allowance for loan losses to total loans decreased from 1.92% in 2013 to 1.56% in 2014. The unallocated reserve of Citizens increased to $697 in 2014 from $506 in 2013. Management considers both the increase in unallocated and the end-of-period number to be insignificant and within the loan policy guidelines.

Deposits

The average daily amount of deposits (all in domestic offices) and average rates paid on such deposits is summarized for the years indicated.

	2014					2013					2012
	Average balance		Average rate paid			Average balance		Average rate paid			Average balance		Average rate paid
	(Dollars in thousands)
Noninterest-bearing demand deposits	$	297,003		N/A		$	233,592		N/A		$	194,418		N/A
Interest-bearing demand deposits		184,961		0.05	%		183,861		0.07	%		157,193		0.14	%
Savings, including Money Market deposit accounts		316,447		0.09	%		301,193		0.09	%		290,630		0.10	%
Certificates of deposit, including IRA’s		227,682		0.84	%		246,724		0.97	%		272,610		1.20	%
	$	1,026,093				$	965,370				$	914,851

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Maturities of certificates of deposits and individual retirement accounts of $100,000 or more outstanding at December 31, 2014 are summarized as follows.

	Certificates of Deposits		Individual Retirement Accounts		Total
	(Dollars in thousands)
3 months or less	$	12,995	$	751	$	13,746
Over 3 through 6 months		9,354		405		9,759
Over 6 through 12 months		13,338		1,102		14,440
Over 12 months		17,982		2,602		20,584
	$	53,669	$	4,860	$	58,529

Return on Equity and Assets

Information required by this section is incorporated herein by reference from the information appearing under the caption “Five-Year Selected Consolidated Financial Data” located on pages 1 and 2 of the 2014 Annual Report. The common share dividend payout ratio was 15.4% in 2014, 18.7% in 2013, 16.6% in 2012, 5.8% in 2011 and 0% in 2010.

Short-term Borrowings

See Note 9 to the consolidated financial statements (located on page 62 of the 2014 Annual Report) and “Distribution of Assets, Liabilities and Shareholders’ Equity, Interest Rates and Interest Differential” (located on pages 11 through 13 of the 2014 Annual Report) for the statistical disclosures for short-term borrowings for 2014 and 2013.

Item 1A. Risk Factors

FORWARD-LOOKING STATEMENTS

This Annual Report on Form 10-K may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), relating to such matters as financial condition, anticipated operating results, cash flows, business line results, credit quality expectations, prospects for new lines of business, economic trends (including interest rates) and similar matters. Forward-looking statements reflect our expectations, estimates or projections concerning future results or events. These statements are generally identified by the use of forward-looking words or phrases such as “believe,” “belief,” “expect,” “anticipate,” “may,” “could,” “intend,” “intent,” “estimate,” “plan,” “foresee,” “likely,” “will,” “should” or other similar words or phrases. Forward-looking statements are not guarantees

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of performance and are inherently subject to known and unknown risks, uncertainties and assumptions that are difficult to predict and could cause our actual results, performance or achievements to differ materially from those expressed in or implied by the forward-looking statements. Factors that could cause actual results, performance or achievements to differ from results discussed in the forward-looking statements include, but are not limited to, changes in financial markets or national or local economic conditions; sustained weakness or deterioration in the real estate market; volatility and direction of market interest rates; credit risks of lending activities; changes in the allowance for loan losses; legislation or regulatory changes or actions; increases in FDIC insurance premiums and assessments; changes in tax laws; failure of or breach in our information and data processing systems; unforeseen litigation; increased competition in our market area; failures to manage growth and/or effectively integrate acquisitions; and other risks identified from time-to-time in the Company’s other public documents on file with the Securities and Exchange Commission, including those risks set forth under Item 1A of Part 1 of this Annual Report on Form 10-K.

The forward-looking statements included in this report are only made as of the date of this report, and we disclaim any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances, except as required by law.

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements, and the purpose of this section is to secure the use of the safe harbor provisions.

OUR BUSINESS HAS BEEN AND MAY CONTINUE TO BE ADVERSELY AFFECTED BY CONDITIONS IN THE FINANCIAL MARKETS AND ECONOMIC CONDITIONS BOTH NATIONALLY AND IN OUR MARKET AREAS. OUR BUSINESS IS CONCENTRATED IN, AND DEPENDENT UPON THE PROSPERITY OF, NORTH AND NORTH CENTRAL OHIO, AND ANY CONTINUED WEAKNESS OR PROLONGED RECOVERY IN THE ECONOMIES OF THESE COMMUNITIES COULD RESULT IN DETERIORATION IN CREDIT QUALITY.

Our success depends to a significant extent upon local and national economic and political conditions, as well as governmental fiscal and monetary policies. Conditions such as inflation, recession, unemployment, changes in interest rates, money supply and other factors beyond our control can adversely affect our asset quality, deposit levels and loan demand and, therefore, our earnings and our capital. Moreover, our lending and deposit gathering activities are concentrated in Central and North Central Ohio, with approximately 71.8% of our loan portfolio and approximately 80.1% of our deposits as of December 31, 2014 concentrated in a seven county region in North Central Ohio and approximately 28.2% of our loan portfolio and approximately 19.9% of our deposits as of December 31, 2014 concentrated in a four county region in Central Ohio. Our success depends on the general economic conditions of these areas, particularly given that a significant portion of our lending relates to real estate located in these regions. Real estate values in these Ohio communities have been negatively impacted by the recent economic crisis. During the last several years, the U.S. economy has been marked by sluggish labor market improvements, limited GDP growth, low inflation, and, only recently, upward movement in housing prices, as well as uncertainty related to U.S. and European fiscal issues, political climates and global economic conditions. Continued uncertainty, sustained high unemployment, volatility or disruptions of global financial markets, or prolonged deterioration in global, national or local business

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or economic conditions could result in, among other things, a deterioration of credit quality, further impairment of real estate values, a decrease in the demand for our loans and other products and services, a further impairment of certain intangible assets, such as goodwill, and an increase in the number of clients who become delinquent, file for protection under bankruptcy laws or default on their loans or other obligations to us. An increase in the number of delinquencies, bankruptcies or defaults could result in a higher level of nonperforming assets, net charge-offs, an increase in our provision for loan losses, and valuation adjustments on loans held for sale, which could have a material adverse effect on our financial condition, results of operations and cash flows.

A SUBSTANTIAL AMOUNT OF OUR LOAN PORTFOLIO CONSISTS OF RESIDENTIAL AND COMMERCIAL REAL ESTATE LOANS. SUSTAINED WEAKNESS OR DETERIORATION IN THE REAL ESTATE MARKET COULD CAUSE INCREASES IN DELINQUENCIES AND NON-PERFORMING ASSETS, INCLUDING ADDITIONAL LOAN CHARGE-OFFS, AND COULD DEPRESS OUR INCOME, EARNINGS AND CAPITAL.

At December 31, 2014, approximately 29.3% and 49.4%, respectively, of our loan portfolio was comprised of residential and commercial real estate loans. The volume and credit quality of these loans has been volatile in the last several years. The commercial and residential real estate markets continue to experience challenges in our markets. Economic factors both nationally and in the communities we serve have and may continue to cause deterioration to the value of real estate Citizens uses to secure its loans. Continued weakness in the economy or a prolonged recovery, deterioration of our real estate portfolio, a decrease in real estate values, an increase in unemployment, decreased or nonexistent housing price appreciation or increases in interest rates could reduce our earnings and consequently our financial condition because borrowers may not be able to repay their loans. The value of the collateral securing our loans and the quality of our loan portfolio may decline and customers may not want or need our products and services.

Any of these scenarios could cause us to make fewer loans, increase delinquencies and non-performing assets, require us to charge off a higher percentage of our loans or result in additional increases to our provision for loan losses in future periods, which could adversely affect our business, financial condition and results of operations.

WE MAY BE UNABLE TO MANAGE INTEREST RATE RISKS, WHICH COULD REDUCE OUR NET INTEREST INCOME.

Our results of operations are affected principally by net interest income, which is the difference between interest earned on loans and investments and interest expense paid on deposits and other borrowings. The spread between the yield on our interest-earning assets and our overall cost of funds has been compressed in the recent low interest rate environment, and our net interest income may continue to be adversely impacted by an extended period of continued low rates. We cannot predict or control changes in interest rates. National, regional and local economic conditions and the policies of regulatory authorities, including monetary policies of the Board of Governors of the Federal Reserve System, affect the movement of interest rates and our interest income and interest expense. If the interest rates paid on deposits and other borrowed funds increase at a faster rate than the interest rates received on loans and other investments, our net interest income, and therefore earnings, could be adversely affected. Earnings could also be adversely affected if the interest rates received on loans and other investments fall more quickly than the interest rates paid on deposits and other borrowed funds.

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In addition, certain assets and liabilities may react in different degrees to changes in market interest rates. For example, interest rates on some types of assets and liabilities may fluctuate prior to changes in broader market interest rates, while interest rates on other types may lag behind. Some of our assets, such as adjustable rate mortgages, have features that restrict changes in their interest rates, including rate caps.

Interest rates are highly sensitive to many factors that are beyond our control. Some of these factors include:

• inflation;

• recession;

• unemployment;

• money supply;

• international disorders; and

• instability in domestic and foreign financial markets.

Changes in interest rates may affect the level of voluntary prepayments on our loans and may also affect the level of financing or refinancing by customers. We believe that the impact on our cost of funds from a rise in interest rates will depend on a number of factors, including but not limited to, the competitive environment in the banking sector for deposit pricing, opportunities for clients to invest in other markets such as fixed income and equity markets, and the propensity of customers to invest in their businesses. The effect on our net interest income from an increase in interest rates will ultimately depend on the extent to which the aggregate impact of loan re-pricings exceeds the impact of increases in our cost of funds.

WE MAY FAIL TO REALIZE ALL OF THE ANTICIPATED BENEFITS OF THE TCNB TRANSACTION

The success of our acquisition of TCNB and The Citizens National Bank of Southwestern Ohio (“TCNB Bank”) will depend, in part, on our ability to (i) realize the anticipated benefits and cost savings from combining the businesses of TCNB and TCNB Bank with the existing businesses of the Company and its subsidiaries and (ii) combine our respective businesses in a manner that permits growth opportunities and cost savings to be realized without materially disrupting existing customer relationships or decreasing revenues due to loss of customers. However, to realize these anticipated benefits and cost savings, we must successfully combine and integrate the businesses of TCNB and TCNB Bank. If we are not able to achieve these objectives, the anticipated synergies, cost savings and other benefits of the transaction may not be realized fully or at all or may take longer to realize than expected.

The Company and TCNB and their respective subsidiaries have operated and, until the completion of the merger, will continue to operate, independently. It is possible that the integration process could result in the loss of key employees, the disruption of each company’s ongoing businesses or inconsistencies in standards, controls, procedures and policies that adversely affect the combined company’s ability to maintain relationships with clients, customers, depositors and employees or to achieve the anticipated benefits of the merger. Integration efforts between the two companies will also require significant management attention and resources that will not be available for normal operations. In addition, the merger and integration will result in the Company entering markets where we do not currently have a meaningful presence and could result in deposit and other customer losses.

25

WE COULD EXPERIENCE DIFFICULTIES IN MANAGING OUR GROWTH AND EFFECTIVELY INTEGRATING THE OPERATIONS OF TCNB AND ITS SUBSIDIARY.

Our earnings, financial condition and prospects after the consummation of the TCNB merger transaction will depend in part on our ability to integrate successfully the operations of TCNB and TCNB Bank and to continue to implement our own business plan. We may not be able to achieve fully the strategic objectives and operating efficiencies in the merger. The costs or difficulties relating to the integration of TCNB and TCNB Bank within our organization may be greater than expected or the cost savings from any anticipated economies of scale of the combined organization may be lower or take longer to realize than expected. Inherent uncertainties exist in integrating the operations of any acquired entity. In addition, the markets and industries in which the Company and TCNB and their respective subsidiaries operate are highly competitive. We may lose our customers or customers of TCNB and TCNB Bank as a result of the merger. We may also lose key personnel, either from the Company or from TCNB and TCNB Bank, as a result of the merger. These factors could contribute to the Company not fully achieving the expected benefits from the merger.

STRONG COMPETITION WITHIN OUR MARKET AREA MAY REDUCE OUR ABILITY TO ATTRACT AND RETAIN DEPOSITS AND ORIGINATE LOANS.

We face competition both in originating loans and in attracting deposits within our market area, which includes Central and North Central Ohio. We compete for clients by offering personal service and competitive rates on our loans and deposit products. The type of institutions we compete with include large regional financial institutions, community banks, thrifts and credit unions operating within our market areas. Nontraditional sources of competition for loan and deposit dollars come from captive auto finance companies, mortgage banking companies, internet banks, brokerage companies, insurance companies and direct mutual funds. As a result of their size and ability to achieve economies of scale, certain of our competitors offer a broader range of products and services than we offer. We expect competition to remain intense in the future as a result of legislative, regulatory and technological changes and the continuing trend of consolidation in the financial services industry. In addition, to stay competitive in our markets we may need to adjust the interest rates on our products to match the rates offered by our competitors, which could adversely affect our net interest margin. As a result, our profitability depends upon our continued ability to successfully compete in our market areas while achieving our investment objectives.

26

LEGISLATIVE OR REGULATORY CHANGES OR ACTIONS COULD ADVERSELY IMPACT OUR BUSINESS.

The financial services industry is extensively regulated. We are subject to extensive state and federal regulation, supervision and legislation that govern almost all aspects of our operations. These laws and regulations are primarily intended for the protection of consumers, depositors, borrowers and the deposit insurance fund, not to benefit our shareholders. Changes to laws and regulations or other actions by regulatory agencies may negatively impact us, possibly limiting the services we provide, increasing the ability of non-banks to compete with us or requiring us to change the way we operate. Regulatory authorities have extensive discretion in connection with their supervisory and enforcement activities, including the ability to impose restrictions on the operation of an institution and the ability to determine the adequacy of an institution’s allowance for loan losses. Failure to comply with applicable laws, regulations and policies could result in sanctions being imposed by the regulatory agencies, including the imposition of civil money penalties, which could have a material adverse effect on our operations and financial condition.

In light of current conditions in the global financial markets and the global economy, regulators have increased their focus on the regulation of the financial services industry. In the last several years, Congress and the federal bank regulators have acted on an unprecedented scale in responding to the stresses experienced in the global financial markets. Some of the laws enacted by Congress and regulations promulgated by federal bank regulators subject us and other financial institutions to additional restrictions, oversight and costs that may have an adverse impact on our business and results of operations. In addition to laws, regulations and supervisory and enforcement actions directed at the operations of banks, proposals to reform the housing finance market contemplate winding down Fannie Mae and Freddie Mac, which could negatively affect our sales of loans.

The Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) was signed into law on July 21, 2010 and, although it became generally effective in July 2010, many of its provisions have extended implementation periods and delayed effective dates and have and will continue to require extensive rulemaking by regulatory authorities. In addition, we may be subjected to higher deposit insurance premiums to the FDIC. We may also be subject to additional regulations under the newly established Consumer Financial Protection Bureau, which was given broad authority to implement new consumer protection regulations. These and other provisions of the Dodd-Frank Act, including future rules implementing its provisions and the interpretation of those rules, may place significant additional costs on us, impede our growth opportunities and place us at a competitive disadvantage.

In July 2013, our primary federal regulator, the Federal Reserve, published final rules establishing a new comprehensive capital framework for U.S. banking organizations. The rules implement the Basel Committee’s December 2010 framework known as “Basel III” for strengthening international capital standards as well as certain provisions of the Dodd-Frank Act. The implementation of the final rules will lead to higher capital requirements and more restrictive leverage and liquidity ratios than those currently in place. In addition, in order to avoid limitations on capital distributions, such as dividend payments and certain bonus payments to executive officers, the rules require insured financial institutions to hold a capital conservation buffer of common equity tier 1 capital above the minimum risk-based capital requirements. The capital conservation buffer will be phased in over time, becoming effective on January 1, 2019, and will consist of an additional amount of common equity equal to 2.5% of risk-weighted assets. The rules will also revise the regulatory agencies’ prompt corrective action framework by incorporating the new regulatory capital minimums and updating the definition of common equity. The rules began to phase in on January 1, 2014 for larger institutions and January 1, 2015 for smaller, less complex banking organizations such as the Company, and will be fully phased in by January 1, 2019. Until the rules are fully phased in, we cannot predict the ultimate impact it will have upon the financial condition or results of operations of the Company.

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DEPOSIT INSURANCE PREMIUMS MAY INCREASE AND HAVE A NEGATIVE EFFECT ON THE COMPANY’S RESULTS OF OPERATIONS.

The Deposit Insurance Fund (the “DIF”) maintained by the FDIC to resolve bank failures is funded by fees assessed on insured depository institutions. The costs of resolving bank failures has increased during the last few years and decreased the DIF. The FDIC collected a special assessment in 2009 to replenish the DIF and also required a prepayment of an estimated amount of future deposit insurance premiums. If the costs of future bank failures increase, the deposit insurance premiums required to be paid by Citizens may also increase.

OUR ALLOWANCE FOR LOAN LOSSES MAY PROVE TO BE INSUFFICIENT TO ABSORB POTENTIAL LOSSES IN OUR LOAN PORTFOLIO.

We maintain an allowance for loan losses that we believe is a reasonable estimate of known and inherent losses within the loan portfolio. We make various assumptions and judgments about the collectability of our loan portfolio, including the creditworthiness of our borrowers and the value of the real estate and other assets serving as collateral for the repayment of loans. Through a periodic review and consideration of the loan portfolio, management determines the amount of the allowance for loan losses by considering general market conditions, the credit quality of the loan portfolio, the collateral supporting the loans and the performance of customers relative to their financial obligations with us. However, every loan we make carries a risk of non-payment. This risk is affected by, among other things, cash flow of the borrower and/or the project being financed, changes and uncertainties as to the future value of the collateral securing such loan, the credit history of the particular borrower, changes in economic and industry conditions, and the duration of the loan.

The amount of future losses is also susceptible to changes in economic, operating and other conditions, including changes in interest rates, which may be beyond our control, and these losses may exceed current estimates. We cannot fully predict the amount or timing of losses or whether the allowance for loan losses will be adequate in the future. If our assumptions prove to be incorrect, our allowance for loan losses may not be sufficient to cover losses inherent in our loan portfolio, resulting in additions to the allowance, which would adversely affect our earnings. Excessive loan losses and significant additions to our allowance for loan losses could have a material adverse impact on our financial condition and results of operations.

In addition, bank regulators periodically review our allowance for loan losses and may require us to increase our allowance for loan losses or recognize further loan charge-offs. Any increase in our allowance for loan losses or loan charge-offs as required by these regulatory authorities could have a material adverse effect on our financial condition and results of operations.

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WE ARE A HOLDING COMPANY AND DEPEND ON OUR SUBSIDIARY BANK FOR DIVIDENDS.

As a financial holding company, we are a legal entity separate and distinct from our subsidiaries and affiliates. Our principal source of funds to support our operations, pay dividends on our common and preferred shares and service our debt is dividends from our subsidiary bank, Citizens. In the event that Citizens is unable to pay dividends to us, we may not be able to service our debt, pay our other obligations or pay dividends on our common or preferred shares. Accordingly, our inability to receive dividends from Citizens could also have a material adverse effect on our business, financial condition and results of operations.

Various federal and state statutory provisions and regulations limit the amount of dividends that Citizens may pay to us without regulatory approval. Generally, subject to certain minimum capital requirements, Citizens may declare a dividend without the approval of the State of Ohio Division of Financial Institutions so long as the total amount of the dividends in a calendar year does not exceed Citizens’ total net income for that year combined with its retained net income for the two preceding years. In addition, the Federal Reserve has issued policy statements that provide that insured banks and bank holding companies should generally only pay dividends out of current operating earnings. Thus, the ability of Citizens to pay dividends in the future is currently influenced, and could be further influenced, by bank regulatory policies and capital guidelines and may restrict our ability to declare and pay dividends on our common or preferred shares.

THE TRADING VOLUMES FOR OUR COMMON SHARES MAY NOT PROVIDE ADEQUATE LIQUIDITY FOR INVESTORS.

Our common shares and our depositary shares are both listed on the NASDAQ Capital Market; however, the average daily trading volume in our common shares and our depositary shares is less than that of many larger financial services companies. A public trading market having the desired characteristics of depth, liquidity, and orderliness depends on the presence in the marketplace of a sufficient number of willing buyers and sellers of our shares at any given time. This presence depends on the individual decisions of investors and general economic and market conditions over which we have no control. Given the current daily average trading volume of our common and of our depositary shares, significant sales of our those in a brief period of time, or the expectation of these sales, could cause a material decline in the price of those shares.

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THE MARKET PRICE OF OUR COMMON SHARES MAY BE SUBJECT TO FLUCTUATIONS AND VOLATILITY.

The market price of our common shares may fluctuate significantly due to, among other things, changes in market sentiment regarding our operations or business prospects, the banking industry generally or the macroeconomic outlook. Factors that could impact our trading price include:

• our operating and financial results, including how those results vary from the expectations of management, securities analysts and investors;

• developments in our business or operations or in the financial sector generally;

• future offerings by us of debt or preferred shares, which would be senior to our common shares upon liquidation and for purposes of dividend distributions;

• legislative or regulatory changes affecting our industry generally or our business and operations specifically;

• the operating and stock price performance of companies that investors consider to be comparable to us;

• announcements of strategic developments, acquisitions and other material events by us or our competitors;

• actions by our current shareholders, including future sales of common shares by existing shareholders, including our directors and executive officers; and

• other changes in U.S. or global financial markets, global economies and general market conditions, such as interest or foreign exchange rates, stock, commodity, credit or asset valuations or volatility.

Equity markets in general and our common shares in particular have experienced considerable volatility over the past few years. The market price of our common shares may continue to be subject to volatility unrelated to our operating performance or business prospects. Increased volatility could result in a decline in the market price of our common shares.

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THE SALE OF SUBSTANTIAL AMOUNTS OF OUR COMMON SHARES OR SECURITIES CONVERTIBLE INTO OUR COMMON SHARES IN THE PUBLIC MARKET COULD DEPRESS THE PRICE OF OUR COMMON SHARES.

In recent years, the stock market has experienced a high level of price and volume volatility, and market prices for the stock of many companies have experienced wide fluctuations that have not necessarily been related to their operating performance. Therefore, our shareholders may not be able to sell their shares at the volumes, prices, or times that they desire. We cannot predict the effect, if any, that future sales of our common shares or securities convertible into our common shares in the market, or availability of shares of our common shares or securities convertible into our common shares for sale in the market, will have on the market price of our common shares. We can give no assurance that sales of substantial amounts of our common shares or securities convertible into our common shares in the market, or the potential for large amounts of sales in the market, would not cause the price of our securities to decline or impair our ability to raise capital through sales of our common shares.

CHANGES IN TAX LAWS COULD ADVERSELY AFFECT OUR PERFORMANCE

We are subject to extensive federal, state and local taxes, including income, excise, sales/use, payroll, franchise, withholding and ad valorem taxes. Changes to our taxes could have a material adverse effect on our results of operations. In addition, our customers are subject to a wide variety of federal, state and local taxes. Changes in taxes paid by our customers may adversely affect their ability to purchase homes or consumer products, which could adversely affect their demand for our loans and deposit products. In addition, such negative effects on our customers could result in defaults on the loans we have made and decrease the value of mortgage-backed securities in which we have invested.

WE RELY HEAVILY ON OUR MANAGEMENT TEAM, AND THE UNEXPECTED LOSS OF KEY MANAGEMENT MAY ADVERSELY AFFECT OUR OPERATIONS.

Our success to date has been strongly influenced by our ability to attract and to retain senior management experienced in banking in the markets we serve. Our ability to retain executive officers and the current management teams will continue to be important to successful implementation of our strategies. The unexpected loss of services of any key management personnel, or the inability to recruit and retain qualified personnel in the future, could have an adverse effect on our business and financial results.

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WE NEED TO CONSTANTLY UPDATE OUR TECHNOLOGY IN ORDER TO COMPETE AND MEET CUSTOMER DEMANDS.

The financial services market, including banking services, is undergoing rapid changes with frequent introductions of new technology-driven products and services. In addition to better serving customers, the effective use of technology increases efficiency and may enable us to reduce costs. Our future success will depend, in part, on our ability to use technology to provide products and services that provide convenience to customers and to create additional efficiencies in our operations. Some of our competitors have substantially greater resources to invest in technological improvements. We may not be able to effectively implement new technology-driven products and services or be successful in marketing these products and services to our customers.

OUR INFORMATION SYSTEMS MAY EXPERIENCE AN INTERRUPTION OR SECURITY BREACH.

We rely heavily on communications and information systems to conduct our business. Any failure, interruption or breach in security of these systems could result in failures or disruptions in our customer relationship management, general ledger, deposit, loan and other systems. While we have policies and procedures designed to prevent or limit the effect of the possible failure, interruption or security breach of our information systems, there can be no assurance that any such failure, interruption or security breach will not occur or, if they do occur, that they will be adequately addressed. The occurrence of any failure, interruption or security breach of our information systems could damage our reputation, result in a loss of customer business, subject us to additional regulatory scrutiny, or expose us to civil litigation and possible financial liability.

WE MAY ELECT OR NEED TO RAISE ADDITIONAL CAPITAL IN THE FUTURE, BUT CAPITAL MAY NOT BE AVAILABLE WHEN IT IS NEEDED.

We are required by federal and state regulatory authorities to maintain adequate levels of capital to support our operations. In addition, federal banking agencies have recently finalized extensive changes to their capital requirements, including the adoption of the final “Basel III” rules as discussed above, which will result in higher capital requirements and more restrictive leverage and liquidity ratios than those currently in place. The final impact on us is unknown at this time, but may require us to raise additional capital in the future. Our ability to raise additional capital, if needed, will depend on conditions in the capital markets, economic conditions and a number of other factors, many of which are outside our control, and are based on our financial performance. Accordingly, we cannot be assured of our ability to raise additional capital if needed or on terms acceptable to us. If we cannot raise additional capital when needed, it may have a material adverse effect on our financial condition, results of operations and prospects.

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WE MAY BE THE SUBJECT OF LITIGATION WHICH COULD RESULT IN LEGAL LIABILITY AND DAMAGE TO OUR BUSINESS AND REPUTATION.

From time to time, we may be subject to claims or legal action from customers, employees or others. Financial institutions like FCBC and Citizens are facing a growing number of significant class actions, including those based on the manner of calculation of interest on loans and the assessment of overdraft fees. Future litigation could include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. We are also involved from time to time in other reviews, investigations and proceedings (both formal and informal) by governmental and other agencies regarding our business. These matters also could result in adverse judgments, settlements, fines, penalties, injunctions or other relief. Like other large financial institutions, we are also subject to risk from potential employee misconduct, including non-compliance with policies and improper use or disclosure of confidential information. Substantial legal liability or significant regulatory action against us could materially adversely affect our business, financial condition or results of operations and/or cause significant reputational harm to our business.

WE DEPEND UPON THE ACCURACY AND COMPLETENESS OF INFORMATION ABOUT CUSTOMERS AND OTHER PARTIES.

In deciding whether to extend credit or enter into other transactions with customers and counterparties, we may rely on information provided to us by customers and other parties, including financial statements and other financial information. We may also rely on representations of customers and counterparties as to the accuracy and completeness of that information and, with respect to financial statements, on reports of independent auditors. For example, in deciding whether to extend credit to a business, we may assume that the customer’s audited financial statements conform with accounting principles generally accepted in the United States and present fairly, in all material respects, the financial condition, results of operations and cash flows of the customer. We may also rely on the audit report covering those financial statements. Our financial condition and results of operations could be negatively impacted to the extent we rely on financial statements that do not comply with generally accepted accounting principles or that are materially misleading, or on other financial information that is inaccurate or incomplete.

WE HAVE IMPLEMENTED ANTI-TAKEOVER DEVICES THAT COULD MAKE IT MORE DIFFICULT FOR ANOTHER COMPANY TO PURCHASE US, EVEN THOUGH SUCH A PURCHASE MAY INCREASE SHAREHOLDER VALUE.

In many cases, shareholders may receive a premium for their shares if we were purchased by another company. State law and our Articles and Amended and Restated Code of Regulations (“Code of Regulations”) make it difficult for anyone to purchase us without the approval of our board of directors. Consequently, a takeover attempt may prove difficult, and shareholders may not realize the highest possible price for their securities.

INVESTORS COULD BECOME SUBJECT TO REGULATORY RESTRICTIONS UPON OWNERSHIP OF OUR COMMON SHARES.

Under the federal Change in Bank Control Act, a person may be required to obtain prior approval from the Federal Reserve before acquiring the power to directly or indirectly control our management, operations, or policy or before acquiring 10% or more of our common shares.

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OUR BUSINESS AND FINANCIAL RESULTS ARE SUBJECT TO RISKS ASSOCIATED WITH THE CREDITWORTHINESS OF OUR CUSTOMERS AND COUNTERPARTIES.

Credit risk is inherent in the financial services business and results from, among other things, extending credit to customers, purchasing securities, and entering into financial derivative transactions and certain guarantee contracts. Credit risk is one of our most significant risks, particularly given the high percentage of our assets represented directly or indirectly by loans, and the importance of lending to our overall business. We manage credit risk by assessing and monitoring the creditworthiness of our customers and counterparties and by diversifying our loan portfolio. Many factors impact credit risk.

A borrower’s ability to repay a loan can be adversely affected by individual factors, such as business performance, job losses or health issues. A weak or deteriorating economy and changes in the United States or global markets also could adversely impact the ability of our borrowers to repay outstanding loans. Any decrease in our borrowers’ ability to repay loans would result in higher levels of nonperforming loans, net charge-offs, and provision for loan losses.

Despite maintaining a diversified loan portfolio, in the ordinary course of business, we may have concentrated credit exposure to a particular person or entity, industry, region or counterparty. Events adversely affecting specific customers, industries, regions or markets, a decrease in the credit quality of a customer base or an adverse change in the risk profile of a market, industry, or group of customers could adversely affect us.

Our credit risk may be exacerbated when collateral held by us to secure obligations to us cannot be realized upon or is liquidated at prices that are not sufficient to recover the full amount of the loan or derivative exposure due us.

WE COULD FACE LEGAL AND REGULATORY RISK ARISING OUT OF OUR RESIDENTIAL MORTGAGE BUSINESS.

Numerous federal and state governmental, legislative and regulatory authorities are investigating practices in the business of mortgage and home equity loan lending and servicing and in the mortgage-related insurance and reinsurance industries. We could face the risk of class actions, other litigation and claims from: the owners of or purchasers of such loans originated or serviced by us, homeowners involved in foreclosure proceedings or various mortgage-related insurance programs, downstream purchasers of homes sold after foreclosure, title insurers, and other potential claimants. Included among these claims are claims from purchasers of mortgage and home equity loans seeking the repurchase of loans where the loans allegedly breached origination covenants and representations and warranties made to the purchasers in the purchase and sale agreements. The CFPB has issued new rules for mortgage origination and mortgage servicing. Both the origination and servicing rules create new private rights of action for consumers against lenders and servicers in the event of certain violations.

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Item 1B. Unresolved Staff Comments

None.

Item 2. Properties

FCBC neither owns nor leases any properties. Citizens owns its main office at 100 East Water Street, Sandusky, Ohio, which is also the office of FCBC. Citizens also owns branch banking offices in the following Ohio communities: Sandusky (2), Norwalk, Berlin Heights, Castalia, Port Clinton, New Washington, Shelby (2), Greenwich, Plymouth, Shiloh, Dublin, Plain City, Russells Point, Urbana (2), and Quincy. Citizens leases branch banking offices in the Ohio communities of Akron, Huron, Norwalk, West Liberty and Willard.

Item 3. Legal Proceedings

The Corporation has previously disclosed pending litigation related to a proposed sale of real estate that it owns near one of its branches. The litigation involves allegations that the Corporation breached an agreement to sell the real estate. The Corporation has presented a number of defenses and has filed a counterclaim in the litigation. As a result of responses to discovery in the litigation, the Corporation has obtained information that the amount of the damages claimed by the plaintiff is approximately $330,000.00. The Corporation continues to vigorously defend the litigation and to dispute the claims made against it, including that it has any liability in the litigation, that plaintiff has suffered the damages claimed, and that any of the damages claimed can be recovered from the Corporation.

The Corporation has been named as a third party defendant in a legal action involving a former borrower. The borrower’s loan was included in a pool of loans sold by the Corporation. The purchaser of the loan initiated the legal action to collect the loan. The borrower responded with claims that both the purchaser and the Corporation breached agreements. The Corporation intends to vigorously defend against the claims. While the amount of damage claimed by the borrower has not been specified, the Corporation does not believe that the amount would have a material impact on its financial condition.

There were no other new material legal proceedings or material changes to existing legal proceedings during the current period.

Item 4. Mine Safety Disclosures

Not Applicable

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PART II

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Information regarding the market in which FCBC’s common shares are traded, the prices at which such shares have traded and dividend information is incorporated herein by reference from the information appearing under the caption “Common Stock and Shareholder Matters” located on page 3 of the 2014 Annual Report.

As of February 20, 2015, there were approximately 1,229 shareholders of record (not including the number of persons or entities holding stock in nominee or street name through various brokerage firms) of the Company’s common shares.

Information regarding the restrictions on the Company’s payment of dividends is included under Item 1 of this Annual Report on Form 10-K and is incorporated herein by reference.

The Company did not repurchase any of its common shares during 2014.

Item 6. Selected Financial Data

Information required by this item is incorporated herein by reference from the information appearing under the caption “Five-Year Selected Consolidated Financial Data” located on pages 1 and 2 of the 2014 Annual Report.

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operation

Information required by this item is incorporated herein by reference from the information appearing under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations” located on pages 4 through 17 of the 2014 Annual Report.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Information required by this item is incorporated herein by reference from the disclosures included under the caption “Quantitative and Qualitative Disclosures About Market Risk” on pages 18 through 19 of the 2014 Annual Report.

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Item 8. Financial Statements and Supplementary Financial Data

First Citizens Banc Corp’s Report of Independent Auditors and Consolidated Financial Statements and accompanying notes are listed below and are incorporated herein by reference from pages 30 through 86 of the 2014 Annual Report (included as Exhibit 13.1 hereto). The supplementary financial information specified by Item 302 of Regulation S-K, is included in Note 21 - “Quarterly Financial Data (Unaudited)” to the consolidated financial statements found on page 82 of the 2014 Annual Report.

Report of Independent Registered Public Accounting Firm on Financial Statements

Consolidated Balance Sheets

December 31, 2014 and 2013

Consolidated Statements of Operations

For the years ended December 31, 2014 and 2013

Consolidated Comprehensive Income Statements

For the years ended December 31, 2014 and 2013

Consolidated Statements of Changes in Shareholders’ Equity

For the years ended December 31, 2014 and 2013

Consolidated Statements of Cash Flows

For the years ended December 31, 2014 and 2013

Notes to Consolidated Financial Statements

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Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

The Company has had no disagreements with its independent accountants on matters of accounting principles or financial statement disclosure required to be reported under this Item.

Item 9A. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including our Chief Executive Officer and our Principal Accounting Officer, we evaluated the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rule 13a-15 under the Exchange Act, as of the end of the fiscal year covered by this Annual Report on Form 10-K. Based upon that evaluation, our Chief Executive Officer and Principal Accounting Officer concluded that our disclosure controls and procedures as of December 31, 2014, were effective.

Report on Internal Control over Financial Reporting

The “Management’s Report on Internal Control over Financial Reporting” and the “Report of Independent Registered Public Accounting Firm on Internal Control Over Financial Reporting” located on pages 21 through 23 of the 2014 Annual Report are incorporated herein by reference.

Changes in Internal Control over Financial Reporting

There were no changes in the Company’s internal control over financial reporting that occurred during the Company’s most recent fiscal quarter ended December 31, 2014 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Item 9B. Other Information

There was no information the Company was required to disclose in a current report on Form 8-K during the fourth quarter of 2014 that was not reported.

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PART III

Item 10. Directors, Executive Officers, and Corporate Governance

The information contained under the captions “Proposal 1 - Election of Directors”, “Executive Officers of the Company”, “Beneficial Ownership of Common Shares of the Company - Section 16(a) Beneficial Ownership Reporting Compliance”, “Board of Director Meetings and Committees - Audit Committee”, “Corporate Governance - Code of Ethics” and “Corporate Governance - Nominating Procedure” in the 2015 Proxy Statement is incorporated herein by reference in response to this item.

Item 11. Executive Compensation.

The information contained under the captions “Executive Compensation” and “2014 Compensation of Directors” in the 2015 Proxy Statement is incorporated herein by reference in response to this Item.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

The information contained under the caption “Beneficial Ownership of Common Shares of the Company” in the 2015 Proxy Statement is incorporated herein by reference in response to this Item.

Item 13. Certain Relationships and Related Transactions, and Director Independence.

The information contained under the caption “Corporate Governance - Transactions with Directors, Officers and Associates” in the 2015 Proxy Statement is incorporated herein by reference in response to this item.

Item 14. Principal Accountant Fees and Services.

The information contained under the caption “Audit Committee Matters” of the 2015 Proxy Statement is incorporated herein by reference in response to this item.

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PART IV

Item 15. Exhibit and Financial Statement Schedules

(a) Documents filed as a Part of the Report

1 Financial Statements. First Citizens Banc Corp’s Report of Independent Auditors and Consolidated Financial Statements and accompanying notes are listed below and are incorporated herein by reference from pages 30 through 86 of the 2014 Annual Report (included as Exhibit 13.1 hereto).

Report of Independent Registered Public Accounting Firm on Financial Statements

Consolidated Balance Sheets

December 31, 2014 and 2013

Consolidated Statements of Operations

For the years ended December 31, 2014 and 2013

Consolidated Comprehensive Income Statements

For the years ended December 31, 2014 and 2013

Consolidated Statements of Changes in Shareholders’ Equity

For the years ended December 31, 2014 and 2013

Consolidated Statements of Cash Flows

For the years ended December 31, 2014 and 2013

Notes to Consolidated Financial Statements

2 Financial Statement Schedules. All schedules are omitted because they are not applicable or the required information is shown in the financial statements or notes thereto.

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3 Exhibits

Exhibit	Description	Location
2.1	Agreement and Plan of Merger, dated as September 10, 2014, by and among First Citizens Banc Corp, FC Merger Corp. and TCNB Financial Corp.	Filed as Exhibit 2.1 to First Citizens Banc Corp’s Current Report on Form 8-K dated and filed September 11, 2014, and incorporated herein by reference. (File No. 1-36192)
3.1(a)	Articles of Incorporation, as amended, of First Citizens Banc Corp.	Filed as Exhibit 3.1 to First Citizens Banc Corp’s Annual Report on Form 10-K for the year ended December 31, 2005, filed on March 16, 2006 and incorporated herein by reference. (File No. 0-25980)
3.1(b)	Certificate of Amendment by Shareholders or Members as filed with the Ohio Secretary of State on January 12, 2009, evidencing the adoption by the shareholders of First Citizens Banc Corp on January 5, 2009 of an amendment to Article FOURTH to authorize the issuance of up to 200,000 preferred shares, without par value.	Filed as Exhibit 3.1(B) to First Citizens Banc Corp’s Annual Report on Form 10-K for the year ended December 31, 2008, filed on March 16, 2009 and incorporated herein by reference. (File No. 0-25980)
3.1(c)	Certificate of Amendment by Directors or Incorporators to Articles, filed with the Ohio Secretary of State on January 21, 2009, evidencing adoption of an amendment by the Board of Directors of First Citizens Banc Corp to Article FOURTH to establish the express terms of the Fixed Rate Cumulative Perpetual Preferred Shares, Series A, of First Citizens Banc Corp.	Filed as Exhibit 3.1 to First Citizens Banc Corp’s Current Report on Form 8-K dated and filed January 26, 2009, and incorporated herein by reference. (File No. 0-25980)
3.1(d)	Certificate of Amendment by Directors or Incorporators to Articles, filed with the Ohio Secretary of State on November 1, 2013, evidencing adoption of an amendment by the Board of Directors of First Citizens Banc Corp to Article FOURTH to establish the express terms of the 6.50% Noncumulative Redeemable Convertible Perpetual Preferred Shares, Series B, of First Citizens Banc Corp.	Filed as Exhibit 3.4 to First Citizens Banc Corp’s Pre-Effective Amendment No.1 to Form S-1 Registration Statement dated and filed November 1, 2013, and incorporated herein by reference. (File No. 333-191169)
3.2	Amended and Restated Code of Regulations of First Citizens Banc Corp (adopted April 15, 2008).	Filed as Exhibit 3.2 to First Citizens Banc Corp’s Annual Report on Form 10-Q for the period ended September 30, 2014, filed on November 7, 2014 and incorporated herein by reference. (File No. 001-36192)
4.1	Form of Certificate for Registrant’s Common Stock	Filed as Exhibit 4.1 to First Citizens Banc Corp’s Annual Report on Form 10-K for the year ended December 31, 2005, filed on March 16, 2006 and incorporated herein by reference. (File No. 0-25980)

41

4.2	Form of Certificate for Fixed Rate Cumulative Perpetual Preferred Shares, Series A	Filed as Exhibit 4.2 to First Citizens Banc Corp’s Registration Statement on Form S-1 filed May 22, 2012, and incorporated herein by reference. (File No. 333-181579)
4.3	Letter Agreement, dated January 20, 2009, including the Securities Purchase Agreement — Standard Terms attached thereto as Exhibit A, between First Citizens Banc Corp and the U.S. Department of the Treasury.	Filed as Exhibit 10.1 to First Citizens Banc Corp’s Current Report on Form 8-K dated and filed January 26, 2009, and incorporated herein by reference (File No. 0-25980).
4.4	Form of Certificate for 6.50% Noncumulative Redeemable Convertible Perpetual Preferred Shares, Series B, of First Citizens Banc Corp	Filed as Exhibit 4.2 to First Citizens Banc Corp’s Pre-Effective Amendment No.1 to Form S-1 Registration Statement filed November 1, 2013, and incorporated herein by reference. (File No. 333-191169)
4.5	Form of Depositary Receipt for Depositary Shares, each representing 1/40th of a 6.50% Noncumulative Redeemable Convertible Perpetual Preferred Share, Series B, of First Citizens Banc Corp.	Filed as Exhibit 4.2 to First Citizens Banc Corp’s Pre-Effective Amendment No.1 to Form S-1 Registration Statement filed November 1, 2013, and incorporated herein by reference. (File No. 333-191169)
4.6	Deposit Agreement dated December 1, 2013, among First Citizens Banc Corp, Illinois Stock Transfer Company, as Depositary, and the holders from time to time of Depositary Receipts thereunder.	Filed as Exhibit 4.2 to First Citizens Banc Corp’s Pre-Effective Amendment No.1 to Form S-1 Registration Statement filed November 1, 2013, and incorporated herein by reference. (File No. 333-191169)
4.7	Agreement to furnish instrument and agreements defining rights of holders of long-term debt.	Included herewith.
10.1*	Change in Control Agreement - James O. Miller.	Filed as Exhibit 10.6 to First Citizens Banc Corp’s Annual Report on Form 10-K for the year ended December 31, 2004, filed on March 16, 2005 and incorporated herein by reference (File No. 0-25980).
10.2*	Change in Control Agreement - Todd A. Michel.	Filed as Exhibit 10.8 to First Citizens Banc Corp’s Annual Report on Form 10-K for the year ended December 31, 2004, filed on March 16, 2005 and incorporated herein by reference (File No. 0-25980).
10.3	Supplemental Nonqualified Executive Retirement Plan	Filed as Exhibit 10.12to First Citizens Banc Corp’s Annual Report on Form 10-K for the year ended December 31, 2011, filed on March 15, 2012 and incorporated herein by reference (File No. 0-25980).

42

10.4	Amendment to Supplemental Nonqualified Executive Retirement Plan	Filed as Exhibit 10.13 to First Citizens Banc Corp’s Annual Report on Form 10-K for the year ended December 31, 2011, filed on March 15, 2012 and incorporated herein by reference (File No. 0-25980).
10.6	First Citizens Banc Corp 2014 Incentive Plan	Filed as Exhibit 10.1 to First Citizens Banc Corp’s Registration Statement Form S-8 filed on February 26, 2015 and incorporated herein by reference (File No. 333-202316).
11.1	Statement regarding earnings per share	Included in Note 20 to the Consolidated Financial Statements filed as Exhibit 13.1 of this Annual Report on Form 10-K.
13.1	First Citizens Banc Corp 2014 Annual Report to Shareholders (not deemed filed except for portions which are specifically incorporated by reference in this Annual Report on Form 10-K)	Included herewith
21.1	Subsidiaries of FCBC	Included herewith
23.1	Consent of S.R. Snodgrass, P.C.	Included herewith
31.1	Rule 13a-14(a)/15-d-14(a) Certification of Chief Executive Officer	Included herewith
31.2	Rule 13a-14(a)/15-d-14(a) Certification of Principal Accounting Officer	Included herewith
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	Included herewith
32.2	Certification of Principal Accounting Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	Included herewith
101	The following materials from First Citizens Banc Corp’s Annual Report on Form 10-K for the year ended December 31, 2014, formatted in XBRL (eXtensible Business Reporting Language) pursuant to Rule 405 of Regulation S-T: (i) Consolidated Balance Sheets as of December 31, 2014 and 2013; (ii) Consolidated Statements of Operations for each of the two years ended December 31, 2014 and 2013; (iii) Consolidated Comprehensive Income Statements for each of the two years ended December 31, 2014 and 2013; (iv) Consolidated Statements of Changes in Shareholders’ Equity for each of the two years ended December 31, 2014 and 2013; (v) Consolidated Statement of Cash Flows for each of the two years ended December 31, 2014 and 2013; and (vi) Notes to Consolidated Financial Statements.

* Management contract or compensatory plan or arrangement

43

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) First Citizens Banc Corp

By	/s/ James O. Miller
	James O. Miller, President (Principal Executive Officer)
By	/s/ Todd A. Michel
	Todd A. Michel, Senior Vice President (Principal Financial Officer)

Date: March 13, 2015

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed on March 13, 2015 by the following persons (including a majority of the Board of Directors of the Registrant) in the capacities indicated:

/s/ Thomas A. Depler Thomas A. Depler, Director	/s/ Allen R. Nickles, CPA, CFE, FCPA, CFF, CICA Allen R. Nickles, CPA, CFE, FCPA, CFF, CICA, Director
/s/ Allen R. Maurice Allen R. Maurice, Director	/s/ David A. Voight David A. Voight, Former Chairman of the Board
/s/ James O. Miller James O. Miller, President & CEO, Chairman of the Board	/s/ Daniel J. White Daniel J. White, Director
/s/ W. Patrick Murray W. Patrick Murray, Director

44

FIRST CITIZENS BANC CORP

ANNUAL REPORT ON FORM 10-K

FOR THE FISCAL YEAR ENDED DECEMBER 31, 2014

INDEX TO EXHIBITS

Exhibit	Description	Location
2.1	Agreement and Plan of Merger, dated as September 10, 2014, by and among First Citizens Banc Corp, FC Merger Corp. and TCNB Financial Corp.	Filed as Exhibit 2.1 to First Citizens Banc Corp’s Current Report on Form 8-K dated and filed September 11, 2014, and incorporated herein by reference. (File No. 1-36192)
3.1(a)	Articles of Incorporation, as amended, of First Citizens Banc Corp.	Filed as Exhibit 3.1 to First Citizens Banc Corp’s Annual Report on Form 10-K for the year ended December 31, 2005, filed on March 16, 2006 and incorporated herein by reference. (File No. 0-25980)
3.1(b)	Certificate of Amendment by Shareholders or Members as filed with the Ohio Secretary of State on January 12, 2009, evidencing the adoption by the shareholders of First Citizens Banc Corp on January 5, 2009 of an amendment to Article FOURTH to authorize the issuance of up to 200,000 preferred shares, without par value.	Filed as Exhibit 3.1(B) to First Citizens Banc Corp’s Annual Report on Form 10-K for the year ended December 31, 2008, filed on March 16, 2009 and incorporated herein by reference. (File No. 0-25980)
3.1(c)	Certificate of Amendment by Directors or Incorporators to Articles, filed with the Ohio Secretary of State on January 21, 2009, evidencing adoption of an amendment by the Board of Directors of First Citizens Banc Corp to Article FOURTH to establish the express terms of the Fixed Rate Cumulative Perpetual Preferred Shares, Series A, of First Citizens Banc Corp.	Filed as Exhibit 3.1 to First Citizens Banc Corp’s Current Report on Form 8-K dated and filed January 26, 2009, and incorporated herein by reference. (File No. 0-25980)
3.1(d)	Certificate of Amendment by Directors or Incorporators to Articles, filed with the Ohio Secretary of State on November 1, 2013, evidencing adoption of an amendment by the Board of Directors of First Citizens Banc Corp to Article FOURTH to establish the express terms of the 6.50% Noncumulative Redeemable Convertible Perpetual Preferred Shares, Series B, of First Citizens Banc Corp.	Filed as Exhibit 3.4 to First Citizens Banc Corp’s Pre-Effective Amendment No.1 to Form S-1 Registration Statement dated and filed November 1, 2013, and incorporated herein by reference. (File No. 333-191169)
3.2	Amended and Restated Code of Regulations of First Citizens Banc Corp (adopted April 15, 2008).	Filed as Exhibit 3.2 to First Citizens Banc Corp’s Annual Report on Form 10-Q for the period ended September 30, 2014, filed on November 7, 2014 and incorporated herein by reference. (File No. 001-36192)

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4.1	Form of Certificate for Registrant’s Common Stock	Filed as Exhibit 4.1 to First Citizens Banc Corp’s Annual Report on Form 10-K for the year ended December 31, 2005, filed on March 16, 2006 and incorporated herein by reference. (File No. 0-25980)
4.2	Form of Certificate for Fixed Rate Cumulative Perpetual Preferred Shares, Series A	Filed as Exhibit 4.2 to First Citizens Banc Corp’s Registration Statement on Form S-1 filed May 22, 2012, and incorporated herein by reference. (File No. 333-181579)
4.3	Letter Agreement, dated January 20, 2009, including the Securities Purchase Agreement — Standard Terms attached thereto as Exhibit A, between First Citizens Banc Corp and the U.S. Department of the Treasury.	Filed as Exhibit 10.1 to First Citizens Banc Corp’s Current Report on Form 8-K dated and filed January 26, 2009, and incorporated herein by reference (File No. 0-25980).
4.4	Form of Certificate for 6.50% Noncumulative Redeemable Convertible Perpetual Preferred Shares, Series B, of First Citizens Banc Corp	Filed as Exhibit 4.2 to First Citizens Banc Corp’s Pre-Effective Amendment No.1 to Form S-1 Registration Statement filed November 1, 2013, and incorporated herein by reference. (File No. 333-191169)
4.5	Form of Depositary Receipt for Depositary Shares, each representing 1/40th of a 6.50% Noncumulative Redeemable Convertible Perpetual Preferred Share, Series B, of First Citizens Banc Corp.	Filed as Exhibit 4.2 to First Citizens Banc Corp’s Pre-Effective Amendment No.1 to Form S-1 Registration Statement filed November 1, 2013, and incorporated herein by reference. (File No. 333-191169)
4.6	Deposit Agreement dated December 1, 2013, among First Citizens Banc Corp, Illinois Stock Transfer Company, as Depositary, and the holders from time to time of Depositary Receipts thereunder.	Filed as Exhibit 4.2 to First Citizens Banc Corp’s Pre-Effective Amendment No.1 to Form S-1 Registration Statement filed November 1, 2013, and incorporated herein by reference. (File No. 333-191169)
4.7	Agreement to furnish instrument and agreements defining rights of holders of long-term debt.	Included herewith.
10.1*	Change in Control Agreement - James O. Miller.	Filed as Exhibit 10.6 to First Citizens Banc Corp’s Annual Report on Form 10-K for the year ended December 31, 2004, filed on March 16, 2005 and incorporated herein by reference (File No. 0-25980).
10.2*	Change in Control Agreement - Todd A. Michel.	Filed as Exhibit 10.8 to First Citizens Banc Corp’s Annual Report on Form 10-K for the year ended December 31, 2004, filed on March 16, 2005 and incorporated herein by reference (File No. 0-25980).

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10.3	Supplemental Nonqualified Executive Retirement Plan	Filed as Exhibit 10.12 to First Citizens Banc Corp’s Annual Report on Form 10-K for the year ended December 31, 2011, filed on March 15, 2012 and incorporated herein by reference (File No. 0-25980).
10.4	Amendment to Supplemental Nonqualified Executive Retirement Plan	Filed as Exhibit 10.13 to First Citizens Banc Corp’s Annual Report on Form 10-K for the year ended December 31, 2011, filed on March 15, 2012 and incorporated herein by reference (File No. 0-25980).
10.6	First Citizens Banc Corp 2014 Incentive Plan	Filed as Exhibit 10.1 to First Citizens Banc Corp’s Registration Statement Form S-8 filed on February 26, 2015 and incorporated herein by reference (File No. 333-202316).
11.1	Statement regarding earnings per share	Included in Note 20 to the Consolidated Financial Statements filed as Exhibit 13.1 of this Annual Report on Form 10-K.
13.1	First Citizens Banc Corp 2014 Annual Report to Shareholders (not deemed filed except for portions which are specifically incorporated by reference in this Annual Report on Form 10-K)	Included herewith
21.1	Subsidiaries of FCBC	Included herewith
23.1	Consent of S.R. Snodgrass, P.C.	Included herewith
31.1	Rule 13a-14(a)/15-d-14(a) Certification of Chief Executive Officer	Included herewith
31.2	Rule 13a-14(a)/15-d-14(a) Certification of Principal Accounting Officer	Included herewith
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	Included herewith
32.2	Certification of Principal Accounting Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	Included herewith
101	The following materials from First Citizens Banc Corp’s Annual Report on Form 10-K for the year ended December 31, 2014, formatted in XBRL (eXtensible Business Reporting Language) pursuant to Rule 405 of Regulation S-T: (i) Consolidated Balance Sheets as of December 31, 2014 and 2013; (ii) Consolidated Statements of Operations for each of the two years ended December 31, 2014 and 2013; (iii) Consolidated Comprehensive Income Statements for each of the two years ended December 31, 2014 and 2013; (iv) Consolidated Statements of Changes in Shareholders’ Equity for each of the two years ended December 31, 2014 and 2013; (v) Consolidated Statement of Cash Flows for each of the two years ended December 31, 2014 and 2013; and (vi) Notes to Consolidated Financial Statements.

* Management contract or compensatory plan or arrangement

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EX-4.7

Exhibit 4.7

[FIRST CITIZENS BANC CORP. LETTERHEAD]

March 13, 2015

Securities and Exchange Commission

100 F Street, NE

Washington, DC 20549

Re: First Citizens Banc Corp. Form 10-K for the fiscal year ended December 31, 2014

Ladies and Gentlemen:

First Citizens Banc Corp., an Ohio corporation (FCBC), is today filing an Annual Report on Form 10-K for the fiscal year ended December 31, 2014 (the Form 10-K), as executed on March 13, 2015.

Pursuant to the instructions relating to the Exhibits in Item 601(b)(4)(iii) of Regulation S-K, FCBC hereby agrees to furnish the Commission, upon request, copies of instruments and agreements defining the rights of holders of its long-term debt and of the long-term debt of its consolidated subsidiaries, which are not being filed as exhibits to the Form 10-K. None of such long-term debt exceeds 10% of the total assets of FCBC and its subsidiaries on a consolidated basis.

Very truly yours,

/s/ James O. Miller

James O. Miller

President, Chief Executive Officer and Chairman of the Board

EX-13.1

Exhibit 13.1

Dear Shareholders:

We are pleased to report that 2014 was a good year for First Citizens Banc Corp. To summarize the 2014 performance, we have been able to prudently grow loans, increase net interest income, increase non-interest income, keep loan loss provisions reasonable, hold non-interest expenses stable, and dramatically improve bottom line. Net earnings (before preferred dividend) were $9,528,000. This was a 54% increase over 2013’s earnings of $6,179,000. Even adding back the non-cash pension adjustment made in 2013, there was a 24% increase in basic earnings.

Highlighting major accomplishments for 2014, in December 2013 we completed the issuance of $25,000,000 in convertible preferred stock and in January 2014 we used the proceeds from the preferred stock offering to pay off the Capital Preservation Program preferred stock sold to the US Treasury in 2009. We have successfully negotiated the acquisition of TCNB Financial Corp. We expect to close this acquisition on March 6, 2015, at which time TCNB’s bank, the Citizens National Bank of Southwest Ohio, will be integrated into our operation. This acquisition will add $100,000,000 in assets and will provide a presence in the Dayton, Ohio marketplace complimenting and providing opportunity to expand business we already enjoy in that market. In late 2014, we began a search for a loan production location in the greater Cleveland, Ohio area to support existing business and expand growth in that market. This resulted in establishing an office at Landerbrook Point in Mayfield Heights, Ohio in January 2015. This office will be staffed by existing personnel and the addition of two seasoned commercial lenders from that market.

Loan Growth

Our loan growth for 2014 was $53,616,000 or 6.2%. Median loan growth in the State of Ohio through the first three quarters of 2014 was 3.9%. Additionally we sold $29,234,000 in one-to-four family real estate mortgages. The chart below shows our steady loan growth as the economy recovered. This has been the result of having experienced lenders providing very personal service. This is what differentiates us from the “big” banks. More importantly, this growth was achieved by lending in our markets (where we know the customer), and not altering our lending standards or our pricing expectations. At the end of the third quarter 2014, our yield on loans was 4.61%. The median of all banks in Ohio was 5.00%. We are less than the median because we are not making long-term rate commitments. With this extremely low rate environment, we believe it’s more prudent to stay with variable- or short-term rate commitments rather than a long-term fixed rate at perhaps 0.5% higher rate. We do not believe the premium is worth the rate risk when interest markets move.

(In thousands)	2014		2013		2012		2011		2010
Gross Loans	$	914,857	$	861,241	$	815,553	$	785,268	$	767,323

Deposit Growth

To fund our loan growth, we need deposits. Our focus continues on noninterest bearing deposits (checking accounts), which have increased nicely to $250,701,000 or 25.9% of total deposits as of December 31, 2014. Much of this checking account growth has come from providing deposit and cash management services to our expanding commercial loan customer base. These accounts provide low cost funding and opportunity for non-interest income through service fees. Of the $718,217,000 in interest bearing deposits, approximately 2/3 are interest bearing checking and savings. While interest bearing, they are also relatively low cost accounts and provide core funding for loans. At the end of the third quarter our cost of funds was 0.38% compared to the state of Ohio median of 0.53%. This differential is a big contributor to our better than peer interest margin and provides us the flexibility to keep our loan rate commitments short, which helps to control interest rate risk.

(In thousands)	2014		2013		2012		2011		2010
Noninterest bearing deposits	$	250,701	$	234,976	$	202,416	$	189,382	$	157,529
Interest bearing deposits		718,217		707,499		723,973		711,864		734,934
Total	$	968,918	$	942,475	$	926,389	$	901,246	$	892,463

Net Interest Income

Our net interest income, shown below as a per share amount, is the amount that we generate by taking deposits and making loans and investments. This has increased approximately 4.6% from 2013 to 2014 as a result of increased loan volume, increased loan fee income, and continued decreases in interest costs. Expressed as a percentage, our interest margin at the end of the third quarter was 3.73% and remains above a peer group of 16 mid-west banks we follow that have a median margin of 3.46%.

	2014		2013		2012		2011		2010
Net interest income per share (basic)	$	5.43	$	5.19	$	5.26	$	5.37	$	5.38

Noninterest Income

For 2014, we enjoyed a 15.4% increase in our noninterest income shown below as per share contribution. The primary drivers of this increase are revenues from wealth management and our tax refund processing service.

	2014		2013		2012		2011		2010
Noninterest income per share (basic)	$	1.80	$	1.56	$	1.45	$	1.29	$	1.26

Noninterest Expense

Noninterest expenses, shown as per share below, decreased approximately 4.3% from 2013. The decrease was primarily the result of the non-cash pension adjustment in 2013. If we remove the 2013 adjustment from the calculation, the non-interest expenses for 2014 were up approximately 1%. Areas of increase were attributed to technology costs and marketing costs. The marketing costs were a result of our company rebranding efforts that will be introduced in the first quarter of 2015. Occupancy costs were up in 2014, but largely a result of snow removal and salt. Even when removing the 2013 pension adjustment, salary and benefit costs were down slightly in 2014.

	2014		2013		2012		2011		2010
Noninterest expense per share (basic)	$	5.39	$	5.63	$	4.94	$	4.76	$	4.64

Provision for Loan Loss

The provision for loan loss was up slightly for 2014 compared to 2013. The increase was a result of loan growth as opposed to increased challenged loans. Our year-end total past due loans were 0.36% of the portfolio. Peer at the end of the third quarter was 0.45%. Our non-performing loans decreased from 2.98% of the portfolio at year end 2013 to 2.02% at the end of 2014. Third quarter peer was 2.28%.

	2014		2013		2012		2011		2010
Loan loss provision per share (basic)	$	0.19	$	0.14	$	0.83	$	1.27	$	2.33

Earnings Per Share

Looking at our earnings per share before the preferred dividend, we have enjoyed a 55% improvement from 2013 to 2014, and continued steady improvement since the depth of the recession in 2010.

	2014		2013		2012		2011		2010
Net earnings per share (basic)	$	1.24	$	0.80	$	0.72	$	0.51	$	(0.16	)

Stock Performance

We are very pleased with the market recognition of the company’s performance and, in turn, the increasing value of our stock. An article released January 14, 2015, by SNL securities indicates that the performance return on banks with less than $100,000,000 in market capitalization was 9.77% for the year. The article went on to comment that the group was led by First Citizens Banc Corp with a return of 61.15%. We believed that our financial performance, the retirement of the CPP preferred stock, and a demonstrated return to active acquisition would reflect in our stock’s performance.

Looking Ahead

We believe in our business model – gathering deposits in our legacy markets, putting those deposits to work in loans and investments in those legacy markets, and with limited loan demand in the legacy markets, using the remaining funding in more vibrant markets where there are greater loan opportunities. The results of this model show in our better than peer interest margin. We also believe we have the infrastructure in place to grow the company without material increases in fixed operating costs. This was demonstrated in 2014 with increased revenue and virtually flat operating expense.

In this post-recession economy, growth is the key to success. Our efforts have focused on attracting, servicing, and retaining loan, deposit, and wealth management customers in our markets. Where we see opportunity we will consider loan production offices, such as the new office in Mayfield Heights, but only when we can acquire seasoned, connected lending talent to serve the office. We are actively looking at urban and rural acquisition potentials. Urban acquisitions, such as the pending TCNB Dayton transaction, allow us to expand our lending in more economically vibrant areas of the state. Rural acquisitions, in the right locations, can provide deposit gathering opportunities with loyal customer bases.

A recent Wall Street Journal article noted that 38% of individuals aged 18-34 would consider a bank with no branches. This is confirmed by our experience where we have seen decreased teller traffic and increased electronic banking. To that end we closed four branches in 2014 and transferred accounts to other offices, with very little customer impact. To serve this fast changing financial service landscape, we offer internet banking, electronic statements, remote deposit capture, and through one’s smart phone – mobile deposits, person to person payments, and bank to bank payments. New products, such as Apple Pay, are rapidly coming to the marketplace and we must be prepared to offer these products to our customers.

You should have received information by now about our identity change to Civista Bank. A number of other institutions in our marketplaces operate under the “Citizens” name, all with different styles and levels of service. The time has come to separate ourselves from all the other Citizens and unify our brand under a new identity where our brand and level of service can shine. While our heritage will always be Citizens Bank and the partners who have joined us through the years, Castalia Bank, Farmers State Bank of New Washington, Citizens National Bank of Norwalk, First National Bank of Shelby, Champaign Bank, and recently Citizens National of Southwestern Ohio, our new name recognizes our continued community commitment and view toward the future with the merging of “Civic” and “Vista” to form Civista.

Finally, you will find a number of issues on the proxy requiring your vote. Many of the issues have been presented before and received majority support of the votes cast, but not enough shareholders cast their ballots. Since, for passage, many of these issues require that a majority of all of the outstanding shares vote in favor, your vote is important – this is your company. We ask you to read the material and cast your ballot.

Very truly yours,

James O. Miller

President & C.E.O.

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ANNUAL REPORT

CONTENTS

Five-Year Selected Consolidated Financial Data	1
Common Stock and Shareholder Matters	3
General Development of Business	3
Management’s Discussion and Analysis of Financial Condition and Results of Operations	4
Quantitative and Qualitative Disclosures about Market Risk	18
Financial Statements
Management’s Report on Internal Control over Financial Reporting	21
Report of Independent Registered Public Accounting Firm on Internal Control Over Financial Statements	22
Report of Independent Registered Public Accounting Firm on Financial Statements	23
Consolidated Balance Sheets	24
Consolidated Statements of Operations	25
Consolidated Comprehensive Income Statements	26
Consolidated Statements of Changes in Shareholders’ Equity	27
Consolidated Statements of Cash Flow	28
Notes to Consolidated Financial Statements	30

Five-Year Selected Consolidated Financial Data

(Amounts in thousands, except per share data)

	Year ended December 31,
	2014		2013		2012		2011			2010
Statements of income:
Total interest and dividend income	$	45,970	$	44,881	$	46,762	$	48,861		$	51,925
Total interest expense		4,104		4,907		6,184		7,500			10,464
Net interest income		41,866		39,974		40,578		41,361			41,461
Provision for loan losses		1,500		1,100		6,400		9,800			17,940
Net interest income after provision for loan losses		40,366		38,874		34,178		31,561			23,521
Security gains/(losses)		113		204		40		(8	)		212
Other noninterest income		13,761		11,858		11,160		9,979			8,942
Total noninterest income		13,874		12,062		11,200		9,971			9,154
Total noninterest expense		41,550		43,384		38,074		36,727			35,774
Income (loss) before federal income taxes		12,690		7,552		7,304		4,805			(3,099	)
Federal income tax expense (benefit)		3,162		1,373		1,725		847			(1,831	)
Net income (loss)	$	9,528	$	6,179	$	5,579	$	3,958		$	(1,268	)
Preferred stock dividends and discount accretion		1,873		1,159		1,193		1,176			1,176
Net income (loss) available to common shareholders	$	7,655	$	5,020	$	4,386	$	2,782		$	(2,444	)
Per common share earnings/(loss):
Before preferred dividends (basic)	$	1.24	$	0.80	$	0.72	$	0.51		$	(0.16	)
Before preferred dividends (diluted)		0.87		0.79		0.72		0.51			(0.16	)
Available to common shareholders (basic)		0.99		0.65		0.57		0.36			(0.32	)
Available to common shareholders (diluted)		0.85		0.64		0.57		0.36			(0.32	)
Dividends		0.19		0.15		0.12		0.03			—
Book value		12.04		10.65		10.48		10.30			9.58
Average common shares outstanding:
Basic		7,707,917		7,707,917		7,707,917		7,707,917			7,707,917
Diluted		10,904,848		7,821,780		7,707,917		7,707,917			7,707,917
Year-end balances:
Loans, net	$	900,589	$	844,713	$	795,811	$	764,011		$	745,555
Securities		210,491		215,037		219,528		220,021			200,296
Total assets		1,213,191		1,167,546		1,136,971		1,112,977			1,100,622
Deposits		968,918		942,475		926,389		901,246			892,463
Borrowings		116,240		87,206		92,907		98,751			103,604
Shareholders’ equity		115,909		128,376		103,980		102,528			96,950
Average balances:
Loans, net	$	858,532	$	800,063	$	759,105	$	741,383		$	765,821
Securities		214,123		216,848		224,566		216,549			212,038
Total assets		1,234,406		1,172,819		1,127,989		1,124,553			1,121,105
Deposits		1,026,093		965,370		914,851		910,315			892,773
Borrowings		83,058		89,496		95,973		105,071			117,280
Shareholders’ equity		114,266		103,563		104,114		99,848			99,648

See accompanying notes to consolidated financial statements.

1

Five-Year Selected Ratios

	Year ended December 31,
	2014			2013			2012			2011			2010
Net interest margin		3.79	%		3.79	%		3.98	%		4.00	%		3.94	%
Return on average total assets		0.77			0.53			0.49			0.35			(0.11	)
Return on average shareholders’ equity		8.34			5.97			5.36			3.96			(1.27	)
Average shareholders’ equity as a percent of average total assets		9.26			8.83			9.23			8.88			8.89
Net loan charge-offs as a percent of average total loans		0.43			0.53			1.01			1.35			1.46
Allowance for loan losses as a percent of loans at year-end		1.56			1.92			2.42			2.71			2.84
Shareholders’ equity as a percent of total year-end assets		9.55			11.00			9.15			9.21			8.81

A copy of the Company’s Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, will be furnished, free of charge, to shareholders, upon written request to the Secretary of First Citizens Banc Corp, 100 East Water Street, Sandusky, Ohio 44870.

See accompanying notes to consolidated financial statements.

2

Common Stock and Shareholder Matters

The common shares of First Citizens Banc Corp (FCBC) trade on The NASDAQ Capital Market under the symbol “FCZA”. As of February 20, 2015, there were 7,799,344 shares outstanding held by approximately 1,229 shareholders of record (not including the number of persons or entities holding stock in nominee or street name through various brokerage firms). Information below is the range of sales prices of our common shares for each quarter for the last two years.

2014
First Quarter	Second Quarter	Third Quarter	Fourth Quarter
$6.52 to $9.70	$8.34 to $9.47	$8.70 to $10.00	$9.14 to $10.70
2013
First Quarter	Second Quarter	Third Quarter	Fourth Quarter
$5.15 to $7.00	$6.84 to $7.71	$6.37 to $7.44	$5.94 to $6.99

Dividends per share declared on common shares by FCBC were as follows:

	2014		2013
First quarter	$	0.04	$	0.03
Second quarter		0.05		0.04
Third quarter		0.05		0.04
Fourth quarter		0.05		0.04
	$	0.19	$	0.15

Information regarding potential restrictions on dividends paid can be found in Note 18 to the Consolidated Financial Statements.

On December 19, 2013, FCBC completed a public offering of 1,000,000 depositary shares, each representing a 1/40th ownership interest in a Noncumulative Redeemable Convertible Perpetual Preferred Share, Series B (the “Series B Preferred Shares”), of FCBC. The depositary shares trade on The NASDAQ Capital Market under the symbol “FCZAP.” The terms of the Series B Preferred Shares provide for the payment of quarterly dividends on the Series B Preferred Shares (and, therefore, the depositary shares) at the rate of 6.50% per annum of the liquidation preference of $1,000 per Series B Preferred Share (or $25.00 per depositary share). Dividends are noncumulative and are payable if, when and as declared by the board of directors. However, no dividends may be declared or paid on the common shares of FCBC during any calendar quarter unless full dividends on the Series B Preferred Shares (and, therefore, the depositary shares) have been declared for that quarter and all dividends previously declared on the Series B Preferred Shares (and, therefore, the depositary shares) have been paid in full.

General Development of Business

(Amounts in thousands)

FIRST CITIZENS BANC CORP (FCBC) was organized under the laws of the State of Ohio on February 19, 1987 and is a registered financial holding company under the Gramm-Leach-Bliley Financial Modernization Act of 1999, as amended. FCBC and its subsidiaries are sometimes referred to together as the Company. The Company’s office is located at 100 East Water Street, Sandusky, Ohio. The Company had total consolidated assets of $1,213,191 at December 31, 2014.

See accompanying notes to consolidated financial statements.

3

THE CITIZENS BANKING COMPANY (Citizens), owned by the Company since 1987, opened for business in 1884 as The Citizens National Bank. In 1898, Citizens was reorganized under Ohio banking law and was known as The Citizens Bank and Trust Company. In 1908, Citizens surrendered its trust charter and began operation under its current name. Citizens maintains its main office at 100 East Water Street, Sandusky, Ohio and operates branch banking offices in the following Ohio communities: Sandusky (2), Norwalk (2), Berlin Heights, Huron, Port Clinton, Castalia, New Washington, Shelby (2), Willard, Greenwich, Plymouth, Shiloh, Akron, Dublin, Plain City, Russells Point, Urbana (2), West Liberty and Quincy. In January 2015, we added a loan production office in Mayfield Heights, Ohio. Citizens accounted for 99.8% of the Company’s consolidated assets at December 31, 2014.

A new name for the bank is being introduced during the first quarter of 2015. The new name, Civista Bank, fulfills our strategic direction to solidify our dual Citizens/Champaign brand and distinguish ourselves from the many other Citizens’ Banks in existing and prospective markets. Created from the words, “civic” and “vista”, Civista uniquely reflects our commitment to the community, our Citizens heritage and our view toward the future. Our commitment to community banking and our shareholders remains at the heart of all we do.

FIRST CITIZENS INSURANCE AGENCY INC. (Insurance Agency) was formed to allow the Company to participate in commission revenue generated through its third party insurance agreement. Assets of the Insurance Agency were less than one percent of the Company’s consolidated assets as of December 31, 2014.

WATER STREET PROPERTIES, INC. (Water St.) was formed to hold properties repossessed by FCBC subsidiaries. Water St. accounted for less than one percent of the Company’s consolidated assets as of December 31, 2014.

FC REFUND SOLUTIONS, INC. (FCRS) was formed during 2012 and remained inactive for the periods presented.

FIRST CITIZENS INVESTMENTS, INC. (FCI) is wholly-owned by Citizens and holds and manages its securities portfolio. The operations of FCI are located in Wilmington, Delaware.

FIRST CITIZENS CAPITAL LLC (FCC) is wholly-owned by Citizens and holds inter-company debt that is eliminated in consolidation. The operations of FCC are located in Wilmington, Delaware.

Management’s Discussion and Analysis of Financial Condition and Results of Operations – As of December 31, 2014 and December 31, 2013 and for the Years Ended December 31, 2014 and 2013

(Amounts in thousands, except per share data)

General

The following paragraphs more fully discuss the significant highlights, changes and trends as they relate to the Company’s financial condition, results of operations, liquidity and capital resources as of December 31, 2014 and 2013, and during the two-year period ended December 31, 2014. This discussion should be read in conjunction with the Consolidated Financial Statements and notes to the Consolidated Financial Statements, which are included elsewhere in this report.

Forward-Looking Statements

This report may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), relating to such matters as financial condition, anticipated

See accompanying notes to consolidated financial statements.

4

operating results, cash flows, business line results, credit quality expectations, prospects for new lines of business, economic trends (including interest rates) and similar matters. Forward-looking statements reflect our expectations, estimates or projections concerning future results or events. These statements are generally identified by the use of forward-looking words or phrases such as “believe,” “belief,” “expect,” “anticipate,” “may,” “could,” “intend,” “intent,” “estimate,” “plan,” “foresee,” “likely,” “will,” “should” or other similar words or phrases. Forward-looking statements are not guarantees of performance and are inherently subject to known and unknown risks, uncertainties and assumptions that are difficult to predict and could cause our actual results, performance or achievements to differ materially from those expressed in or implied by the forward-looking statements. Factors that could cause actual results, performance or achievements to differ from results discussed in the forward-looking statements include, but are not limited to, changes in financial markets or national or local economic conditions; sustained weakness or deterioration in the real estate market; volatility and direction of market interest rates; credit risks of lending activities; changes in the allowance for loan losses; legislation or regulatory changes or actions; increases in FDIC insurance premiums and assessments; changes in tax laws; failure of or breach in our information and data processing systems; unforeseen litigation; increased competition in our market area; failures to manage growth and/or effectively integrate acquisitions; and other risks identified from time-to-time in the Company’s other public documents on file with the Securities and Exchange Commission.

The forward-looking statements included in this report are only made as of the date of this report, and we disclaim any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances, except as required by law.

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements, and the purpose of this section is to secure the use of the safe harbor provisions.

Financial Condition

At December 31, 2014, total assets were $1,213,191, compared to $1,167,546 at December 31, 2013. The increase in assets is primarily the result of an increase in the loan portfolio. Other factors contributing to the change in assets are discussed in the following sections.

At $900,589, net loans have increased from December 31, 2013 by 6.6%. The increases were primarily in Commercial Real Estate—Non-Owner Occupied, Residential Real Estate, Real Estate Construction and Consumer and Other loans. Commercial Real Estate—Non-Owner Occupied loans increased by $25,834 to $308,666 at December 31, 2014 from $282,832 at December 31, 2013. Residential Real Estate loans increased by $17,819, to $268,510 at December 31, 2014, from $250,691 at December 31, 2013. Real Estate Construction loans increased by $25,488, to $65,452 at December 31, 2014, from $39,964 at December 31, 2013. Consumer and Other loans increased by $4,164, to $15,029 at December 31, 2014, from $10,865 at December 31, 2013.

Securities available for sale decreased by $1,708, or 0.9%, from $199,613 at December 31, 2013 to $197,905 at December 31, 2014. U.S. Treasury securities and obligations of U.S. government agencies decreased $8,658, from $51,560 at December 31, 2013 to $42,902 at December 31, 2014. Obligations of states and political subdivisions available for sale increased $7,396 from 2013 to 2014. Mortgage-backed securities decreased by $537 to total $66,442 at December 31, 2014. The Company continues to utilize letters of credit from the Federal Home Loan Bank (FHLB) to replace maturing securities that were pledged for public entities. As of December 31, 2014, the Company was in compliance with all pledging requirements.

Mortgage-backed securities totaled $66,442 at December 31, 2014 and none were considered unusual or “high risk” securities as defined by regulatory authorities. Of this total, $50,683 was pass-through securities issued by the Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage

See accompanying notes to consolidated financial statements.

5

Corporation (FHLMC) and Government National Mortgage Association (GNMA), and $15,759 was collateralized by mortgage-backed securities issued or guaranteed by FNMA, FHLMC, or GNMA. The average interest rate of the mortgage-backed portfolio at December 31, 2014 was 3.1%. The average maturity at December 31, 2014 was approximately 3.8 years. The Company has not invested in any derivative securities.

Securities available for sale had a fair value at December 31, 2014 of $197,905. This fair value includes unrealized gains of approximately $6,262 and unrealized losses of approximately $609. Net unrealized gains totaled $5,653 on December 31, 2014 compared to net unrealized gains of $519 on December 31, 2013. The change in unrealized gains is primarily due to changes in market interest rates. Note 2 to the Consolidated Financial Statements provides additional information on unrealized gains and losses.

Premises and equipment, net of accumulated depreciation, decreased $1,913 from December 31, 2013 to December 31, 2014. The decrease in office premises and equipment is attributed to new purchases of $485, depreciation of $1,176 and disposals of $1,222.

Other assets decreased $1,141 from December 31, 2013 to December 31, 2014. The decrease is primarily the result of a decrease in the Company’s deferred taxes, offset by an increase in the notional value of interest rate swap assets.

Year-end deposit balances totaled $968,918 in 2014 compared to $942,475 in 2013, an increase of $26,443, or 2.8%. Overall, the increase in deposits at December 31, 2014 compared to December 31, 2013 included increases in noninterest bearing demand deposits of $15,725, or 6.7%, statement and passbook savings accounts of $15,822, or 5.2%, interest bearing demand accounts of $11,275, or 6.7%, offset in part by declines in individual retirement accounts of $3,432, or 11.4%, and certificate of deposit accounts of $12,947, or 6.3%. A primary factor of the increase in deposits, especially savings and money market deposits, can be attributed to the prolonged, dampened state of the economy and low interest rates on time deposits. Customers seem to be staying out of the market, spending less, saving more and shifting their investments to more liquid accounts while waiting for interest rates to begin climbing. Average deposit balances for 2014 were $1,026,093 compared to $965,370 for 2013, an increase of 6.3%. Noninterest bearing deposits averaged $297,003 for 2014, compared to $233,592 for 2013, increasing $63,411, or 27.2%. Savings, NOW, and MMDA accounts averaged $501,408 for 2014 compared to $485,054 for 2013. Average certificates of deposit decreased $19,042 to total an average balance of $227,682 for 2014.

Borrowings from the Federal Home Loan Bank (FHLB) of Cincinnati were $65,200 at December 31, 2014. The detail of these borrowings can be found in Note 10 to the Consolidated Financial Statements. The balance increased $27,474 from $37,726 at year-end 2013. The change in balance is mainly the result of a short term advance used as overnight funding to support loan growth.

Citizens offers repurchase agreements in the form of sweep accounts to commercial checking account customers. These repurchase agreements totaled $21,613 at December 31, 2014 compared to $20,053 at December 31, 2013. Obligations of U.S. government agencies maintained under Citizens’ control are pledged as collateral for the repurchase agreements.

Other liabilities increased $2,635 from December 31, 2013 to December 31, 2014. The increase is primarily the result of increases in the notional value of interest rate swap liabilities, clearing accounts associated with the tax refund processing program and accrued compensation and deferred compensation accounts. The increase was offset by a decrease in the Company’s accrued pension liability resulting from the hard freeze implemented during 2014.

See accompanying notes to consolidated financial statements.

6

Total shareholders’ equity decreased $12,467, or 9.7% during 2014 to $115,909. The change in shareholders’ equity resulted from net income of $9,528, offset by preferred dividends and common dividends of $1,873 and $1,465, respectively, and the redemption of Series A Preferred Shares of $22,857, increased market value of securities available for sale, net of tax, of $3,389 and a decrease in the Company’s pension liability, net of tax of $811. For further explanation of these items, see Note 1, Note 14 and Note 23 to the Consolidated Financial Statements. The Company paid $0.19 per common share in dividends in 2014 compared to $0.15 per common share in dividends in 2013. Total outstanding shares at December 31, 2014 and 2013 were 7,707,917. The ratio of total shareholders’ equity to total assets was 9.6% and 11.0%, respectively, at December 31, 2014 and December 31, 2013. The ratio for 2013 was higher because of the timing of the issuance of the Series B Preferred Shares and the repayment of the Series A Preferred Shares. If the Series B issuance and Series A repayment had both occurred in December of 2013, the ratio for 2013 would have been 9.2%.

Results of Operations

The operating results of the Company are affected by general economic conditions, the monetary and fiscal policies of federal agencies and the regulatory policies of agencies that regulate financial institutions. The Company’s cost of funds is influenced by interest rates on competing investments and general market rates of interest. Lending activities are influenced by the demand for real estate loans and other types of loans, which in turn is affected by the interest rates at which such loans are made, general economic conditions and the availability of funds for lending activities.

The Company’s net income primarily depends on its net interest income, which is the difference between the interest income earned on interest-earning assets, such as loans and securities, and interest expense incurred on interest-bearing liabilities, such as deposits and borrowings. The level of net interest income is dependent on the interest rate environment and the volume and composition of interest-earning assets and interest-bearing liabilities. Net income is also affected by provisions for loan losses, service charges, gains on the sale of assets, other income, noninterest expense and income taxes.

Comparison of Results of Operations for the Years Ended December 31, 2014 and December 31, 2013

Net Income

The Company’s net income for the year ended December 31, 2014 was $9,528, compared to $6,179 for the year ended December 31, 2013. The change in net income was the result of the items discussed in the following sections.

Net Interest Income

Net interest income for 2014 was $41,866, an increase of $1,892, or 4.7%, from 2013. Average earning assets increased 4.7% from 2013. Although market rates in 2014 continued to decline, interest income increased $1,089, primarily due to increased loan volume. In addition, interest expense on interest-bearing liabilities decreased $803. The Company continually examines its rate structure to ensure that its interest rates are competitive and reflective of the current rate environment in which it competes. A change in the mix of deposits from certificates of deposit to non-maturing deposits also contributed to the decline in interest expense.

Total interest income increased $1,089, or 2.4%, from 2013. The increase was mainly a result of an increase in loan volume. Average loans increased $55,280 from 2013 to 2014. The yield on the Company’s loan portfolio declined 16 basis points from 2013. While the average balance of the securities portfolio for 2014 compared to 2013 decreased $2,725, this was primarily due to the Company not replacing matured securities. Interest earned on the security portfolio, including bank stocks, decreased mainly due to decreases in yield. Average balances in interest-bearing deposits in other banks decreased in 2014 by $1,780.

See accompanying notes to consolidated financial statements.

7

Total interest expense decreased $803, or 16.4%, for 2014 compared to 2013. The decrease in interest expense can be attributed to declines in market rates and the corresponding repricing of deposits and other sources of funding. The total average balance of interest-bearing liabilities decreased $9,126 while the average rate decreased 9 basis points in 2014. Average interest-bearing deposits decreased $2,688 from 2013 to 2014. The decrease in average interest-bearing deposits, mainly in time deposit accounts, coupled by a decline in rate on time deposits of approximately 13 basis points, caused interest expense on deposits to decrease by $496. Interest expense on FHLB borrowings decreased $343 due to a decrease in average balance of $5,462. The average balance in subordinated debentures did not change from 2013 to 2014, but the rate on these securities increased 13 basis points, resulting in an increase in interest expense of $37. Repurchase agreements decreased $990 in average balance from 2013 to 2014.

Refer to “Distribution of Assets, Liabilities and Shareholders’ Equity, Interest Rates and Interest Differential” and “Changes in Interest Income and Interest Expense Resulting from Changes in Volume and Changes in Rate” on pages 11 through 13 for further analysis of the impact of changes in interest-bearing assets and liabilities on the Company’s net interest income.

Provision and Allowance for Loan Losses

The following table contains information relating to the provision for loan losses, activity in and analysis of the allowance for loan losses as of and for each of the two years in the period ended December 31.

	As of and for year ended December 31,
	2014			2013
Net loan charge-offs	$	3,760		$	4,314
Provision for loan losses charged to expense		1,500			1,100
Net loan charge-offs as a percent of average outstanding loans		0.43	%		0.53	%
Allowance for loan losses	$	14,268		$	16,528
Allowance for loan losses as a percent of year-end outstanding loans		1.56	%		1.92	%
Impaired loans	$	11,149		$	18,057
Impaired loans as a percent of gross year-end loans (1)		1.22	%		2.10	%
Nonaccrual and 90 days or more past due loans	$	13,558		$	20,459
Nonaccrual and 90 days or more past due loans as a percent of gross year-end loans (1)		1.48	%		2.38	%

(1) Nonperforming loans and impaired loans are defined differently. Some loans may be included in both categories, whereas other loans may only be included in one category. A loan is considered nonaccrual if it is maintained on a cash basis because of deterioration in the borrower’s financial condition, where payment in full of principal or interest is not expected and where the principal and interest have been in default for 90 days, unless the asset is both well-secured and in process of collection. A loan is considered impaired when it is probable that all of the interest and principal due will not be collected according to the terms of the original contractual agreement.

See accompanying notes to consolidated financial statements.

8

The Company’s policy is to maintain the allowance for loan losses at a level sufficient to provide for probable losses incurred in the current portfolio. The Company provides for loan losses through regular provisions to the allowance for loan losses. The amount of the provision is affected by loan charge-offs, recoveries and changes in specific and general allocations required for the allowance for loan losses. Provisions for loan losses totaled $1,500 and $1,100 in 2014 and 2013, respectively. Management believes the analysis of the allowance for loan losses supported a reserve of $14,268 at December 31, 2014.

The Company’s provision for loan losses increased $400 during 2014 to support the final resolutions in certain problem loans, coupled with solid loan growth of 6.2%. A number of factors impact the provisions for loan losses, such as the level of higher risk loans in the portfolio, changes in practices related to loans, changes in collateral values and other factors. We continue to actively manage this process and have provided to maintain the reserve at a level that assures adequate coverage ratios.

Efforts are continually made to analyze each segment of the loan portfolio and quantify risk to assure that reserves are appropriate for each segment and the overall portfolio. Management specifically evaluates loans that are impaired, which includes restructured loans, to estimate potential loss. This analysis includes a review of the loss migration calculation for all loan categories as well as fluctuations and trends in various risk factors that have occurred within the portfolios’ economic life cycle. The analysis also includes assessment of qualitative factors such as credit trends, unemployment trends, vacancy trends and loan growth. The composition and overall level of the loan portfolio and charge-off activity are also factors used to determine the amount of the allowance for loan losses.

Management analyzes each impaired commercial and commercial real estate loan with a balance of $350 or larger, on an individual basis and when it is in nonaccrual status or when an analysis of the borrower’s operating results and financial condition indicates that underlying cash flows are not adequate to meet its debt service requirements. In addition, loans held for sale and leases are excluded from consideration as impaired. Loans are generally moved to nonaccrual status when 90 days or more past due. Impaired loans or portions thereof, are charged-off when deemed uncollectible.

Noninterest Income

Noninterest income increased $1,812, or 15.0%, to $13,874 for the year ended December 31, 2014, from $12,062 for the comparable 2013 period. The increase was primarily due to increases in earnings on gain on sale of loans of $198, Trust fees of $503 and tax refund processing fees of $1,894 which were partially offset by decreases in service charge income of $82, gain on sale of securities of $91, income on Bank Owned Life Insurance (BOLI) of $63 and other income of $475.

Gain on sale of loans increased primarily from the addition of investors and loan volume. Trust fees increased due to both an increase in assets valuations as well as an increase in accounts. Tax refund processing fees primarily increased due to added volume from the addition of vendors to the tax processing program. The decrease in service charges was the result of a decrease in overdraft fees. The decrease in gain on sale of securities was due to a recovery of a security previously written off. This recovery was posted in 2013. The decrease in BOLI income is due to lower yields received in the current year. The decrease in other income was primarily the result of lower fees related to our customer derivative program and lower gains recognized on the sale of fixed assets.

Sales of other real estate owned resulted in recognized gains of $44 on the sale of 16 properties in 2014 compared to gains of $120 on the sale of 25 properties in 2013.

See accompanying notes to consolidated financial statements.

9

Noninterest Expense

Noninterest expense decreased $1,834, or 4.2%, to $41,550 for the year ended December 31, 2014, from $43,384 for the comparable 2013 period. The decrease was primarily due to decreases in salaries, wages and benefits of $2,465, FDIC assessment of $103, state franchise tax of $242, amortization of intangible assets of $78 and repossession expense of $291 which were partially offset by increases in contracted data processing of $254, professional services of $178, equipment expense of $148, ATM expense of $156 and marketing expense of $525.

Salaries, wages and benefits decreased primarily due to a decrease in pension costs. As of April 2014, the Company has frozen its pension plan. Several large pension disbursements were made in 2013, triggering settlement expense of $2,251. While the plan still exists, no new participants will be added and no additional benefits will accrue. FDIC assessments decreased due to a decrease in assessment rates. State franchise taxes decreased due to a change made by the State of Ohio. In 2014, the state replaced its corporate franchise tax with the financial institutions tax (FIT). The new tax is based on equity capital, whereas, the corporate franchise tax was based on net worth. In addition, the new law lowered tax rates. The decrease in amortization of intangible assets is the result of a decline in scheduled amortization of intangible assets associated with mergers. The decrease in repossession expense is the result of a general decrease in expenses related to repossessions. Contracted data processing increased due to increases in cost of technology services. Professional services increased primarily due to merger expenses and a general increase in consulting fees. Equipment expenses increased due to a change in the Company’s capitalization policy in 2014. ATM expense increased due to increased vendor charges. Marketing expenses increased as a result of our efforts to unify our marketing approach in order to improve the impact of marketing dollars spent.

Income Tax Expense

Federal income tax expense was $3,162 in 2014 compared to $1,373 in 2013. Federal income tax expense as a percentage of income was 24.9% in 2014 compared to 18.2% in 2013. A lower federal effective tax rate than the statutory rate of 34% is primarily due to tax-exempt interest income from state and municipal investments, municipal loans, income from BOLI and low income housing credits. Federal income tax expense increased in 2014 primarily due to an increase in pretax income, which also led to the increase in the effective tax rate in 2014.

See accompanying notes to consolidated financial statements.

10

Distribution of Assets, Liabilities and Shareholders’ Equity,

Interest Rates and Interest Differential

The following table sets forth, for the years ended December 31, 2014, 2013 and 2012, the distribution of assets, including interest amounts and average rates of major categories of interest-earning assets and interest-bearing liabilities (Amounts in thousands):

	2014								2013								2012
Assets	Average balance			Interest		Yield/ rate			Average balance			Interest		Yield/ rate			Average balance			Interest		Yield/ rate
Interest-earning assets:
Loans (1)(2)(3)(5)	$	874,432		$	40,032		4.58	%	$	819,152		$	38,776		4.74	%	$	780,786		$	40,048		5.13	%
Taxable securities (4)		150,510			3,443		2.31	%		157,930			3,763		2.42	%		172,560			4,710		2.81	%
Non-taxable securities (4)(5)		63,613			2,356		5.80	%		58,918			2,211		5.90	%		52,006			1,895		6.01	%
Interest-bearing deposits in other banks		53,829			139		0.26	%		55,609			131		0.24	%		46,980			109		0.23	%
Total interest income assets		1,142,384			45,970		4.15	%		1,091,609			44,881		4.24	%		1,052,332			46,762		4.58	%
Noninterest-earning assets:
Cash and due from financial institutions		35,784								25,203								21,934
Premises and equipment, net		15,262								16,862								17,588
Accrued interest receivable		4,242								4,288								4,456
Intangible assets		24,122								24,464								25,363
Other assets		9,133								10,626								9,737
Bank owned life insurance		19,379								18,856								18,260
Less allowance for loan losses		(15,900	)							(19,089	)							(21,681	)
Total	$	1,234,406							$	1,172,819							$	1,127,989

(1) For purposes of these computations, the daily average loan amounts outstanding are net of unearned income and include loans held for sale.

(2) Included in loan interest income are loan fees of $387 in 2014, $368 in 2013 and $325 in 2012.

(3) Non-accrual loans are included in loan totals and do not have a material impact on the analysis presented.

(4) Average balance is computed using the carrying value of securities. The average yield has been computed using the historical amortized cost average balance for available-for-sale securities.

(5) Interest yield is calculated using the tax-equivalent adjustment.

See accompanying notes to consolidated financial statements.

11

Distribution of Assets, Liabilities and Shareholders’ Equity,

Interest Rates and Interest Differential (Continued)

The following table sets forth, for the years ended December 31, 2014, 2013 and 2012, the distribution of liabilities and shareholders’ equity, including interest amounts and average rates of major categories of interest-earning assets and interest-bearing liabilities (Amounts in thousands):

	2014							2013							2012
Liabilities and Shareholders’ Equity	Average balance		Interest		Yield/ rate			Average balance		Interest		Yield/ rate			Average balance		Interest		Yield/ rate
Interest-bearing liabilities:
Savings and interest-bearing demand accounts	$	501,408	$	376		0.07	%	$	485,054	$	401		0.08	%	$	447,823	$	520		0.12	%
Certificates of deposit		227,682		1,916		0.84	%		246,724		2,387		0.97	%		272,610		3,280		1.20	%
Federal Home Loan Bank advances		33,831		1,015		3.00	%		39,293		1,358		3.46	%		47,629		1,530		3.21	%
Securities sold under repurchase agreements		19,759		20		0.10	%		20,749		21		0.10	%		18,912		21		0.11	%
Federal funds purchased		41		—		0.00	%		27		—		0.00	%		5		—		0.00	%
Subordinated debentures		29,427		777		2.64	%		29,427		740		2.51	%		29,427		833		2.83	%
Total interest-bearing liabilities		812,148		4,104		0.51	%		821,274		4,907		0.60	%		816,406		6,184		0.76	%
Noninterest-bearing liabilities:
Demand deposits		297,003							233,592							194,418
Other liabilities		10,989							14,390							13,051
		307,992							247,982							207,469
Shareholders’ equity		114,266							103,563							104,114
Total	$	1,234,406						$	1,172,819						$	1,127,989
Net interest income and interest rate spread (1)			$	41,866		3.64	%			$	39,974		3.64	%			$	40,578		3.82	%
Net interest margin (2)						3.79	%						3.79	%						3.98	%

(1) Interest rate spread is calculated by subtracting the rate on average interest-bearing liabilities from the yield on average interest-earning assets.

(2) Net interest margin is calculated by dividing tax-equivalent adjusted net interest income by average interest-earning assets.

See accompanying notes to consolidated financial statements.

12

Changes in Interest Income and Interest Expense

Resulting from Changes in Volume and Changes in Rate

The following table sets forth, for the periods indicated, a summary of the changes in interest income and interest expense resulting from changes in volume and changes in rate. (Amounts in thousands)

	Increase (decrease) due to:
	Volume(1)			Rate(1)			Net
2014 compared to 2013
Interest income:
Loans	$	2,562		$	(1,306	)	$	1,256
Taxable securities		(176	)		(144	)		(320	)
Nontaxable securities		273			(128	)		145
Interest-bearing deposits in other banks		(4	)		12			8
Total interest income	$	2,655		$	(1,566	)	$	1,089
Interest expense:
Savings and interest-bearing demand accounts		13			(38	)		(25	)
Certificates of deposit		(175	)		(296	)		(471	)
Federal Home Loan Bank advances		(176	)		(167	)		(343	)
Securities sold under repurchase agreements		(1	)		—			(1	)
Subordinated debentures		—			37			37
Total interest expense	$	(339	)	$	(464	)	$	(803	)
Net interest income	$	2,994		$	(1,102	)	$	1,892
2013 compared to 2012
Interest income:
Loans	$	1,909		$	(3,181	)	$	(1,272	)
Taxable securities		(390	)		(557	)		(947	)
Nontaxable securities		270			46			316
Interest-bearing deposits in other banks		20			2			22
Total interest income	$	1,809		$	(3,690	)	$	(1,881	)
Interest expense:
Savings and interest-bearing demand accounts		40			(159	)		(119	)
Certificates of deposit		(292	)		(601	)		(893	)
Federal Home Loan Bank advances		(282	)		110			(172	)
Securities sold under repurchase agreements		2			(2	)		—
Subordinated debentures		—			(93	)		(93	)
Total interest expense	$	(532	)	$	(745	)	$	(1,277	)
Net interest income	$	2,341		$	(2,945	)	$	(604	)

(1) The change in interest income and interest expense due to changes in both volume and rate, which cannot be segregated, has been allocated proportionately to the change due to volume and the change due to rate.

See accompanying notes to consolidated financial statements.

13

Liquidity and Capital Resources

Citizens maintains a conservative liquidity position. All securities are classified as available for sale. At December 31, 2014, securities with maturities of one year or less, totaled $629, or 0.3%, of the total security portfolio. The available for sale portfolio helps to provide Citizens with the ability to meet its funding needs. The Consolidated Statements of Cash Flows contained in the Consolidated Financial Statements detail the Company’s cash flows from operating activities resulting from net earnings.

Cash from operations for 2014 was $14,886. The primary additions to cash from operating activities are from changes in amortization of intangible assets, amortization of securities net of accretion, the provision for loan losses, depreciation, proceeds from sale of loans and changes in other assets and liabilities, net. The primary use of cash from operating activities is from loans originated for sale. Cash used for investing activities was $48,496 in 2014. Security and property and equipment purchases along with loans to customers and purchased loans were offset by security maturities and sales and proceeds from the sale property and equipment and the redemption of Federal Home Loan Bank “FHLB” stock. Cash from financing activities in 2014 totaled $29,282. A major source of cash for financing activities is the net change in deposits. Cash provided by the net change in deposits was $26,443 in 2014. The large increase in deposits was primarily due to increases in noninterest-bearing deposits, statement and passbook savings accounts and interest-bearing demand accounts, which added $15,725, $15,822 and $11,275, respectively, in deposits during 2014. These increases were offset by decreases in individual retirement accounts and certificate of deposits of $3,432 and $12,947, respectively. In addition, the Company borrowed additional funds from the FHLB in overnight funds of $42,700 and long term advances of $15,000. The primary uses of cash in financing activities include payment of dividends, repayment of a FHLB advances and repurchase of the Company’s Series A Preferred Shares. Cash and cash equivalents decreased from $34,186 at December 31, 2013 to $29,858 at December 31, 2014.

Future loan demand of Citizens can be funded by increases in deposit accounts, proceeds from payments on existing loans, the maturity of securities, the issuances of trust preferred obligations, and the sale of securities classified as available for sale. Additional sources of funds may also come from borrowing in the Federal Funds market and/or borrowing from the FHLB. As of December 31, 2014, Citizens had total credit availability with the FHLB of $124,741 of which $65,200 was outstanding.

On a separate entity basis, FCBC’s primary source of funds is dividends paid primarily by Citizens. Generally, subject to applicable minimum capital requirements, Citizens may declare a dividend without the approval of the Federal Reserve Bank of Cleveland and the State of Ohio Department of Commerce, Division of Financial Institutions, provided the total dividends in a calendar year do not exceed the total of its profits for that year combined with its retained profits for the two preceding years. At December 31, 2014, Citizens was able to pay dividends to FCBC without obtaining regulatory approval. During 2014, Citizens paid dividends totaling $7,339 to FCBC. This represented approximately 66 percent of the Citizens’ earnings for the year, thereby accumulating cash at FCBC for general corporate purposes, while also preserving capital at Citizens.

In addition to the restrictions placed on dividends by banking regulations, the Company is subject to restrictions on the payment of dividends as a result of the Company’s issuance of 1,000,000 depositary shares, each representing a 1/40th ownership interest in a Series B Preferred Share, of the Company on December 19, 2013. Under the terms of the Series B Preferred Shares, no dividends may be declared or paid on the common shares of the Company during any calendar quarter unless full dividends on the Series B Preferred Shares (and, therefore, the depositary shares) have been declared for that quarter and all dividends previously declared on the Series B Preferred Shares (and, therefore, the depositary shares) have been paid in full.

See accompanying notes to consolidated financial statements.

14

The Company manages its liquidity and capital through quarterly Asset/Liability Management Committee (ALCO) meetings. The ALCO discusses issues like those in the above paragraphs as well as others that will affect the future liquidity and capital position of the Company. The ALCO also examines interest rate risk and the effect that changes in rates will have on the Company. For more information about interest rate risk, please refer to the “Quantitative and Qualitative Disclosures about Market Risk” section.

Capital Adequacy

The Company’s policy is, and always has been, to maintain its capital levels above the well capitalized regulatory standards. Under the regulatory capital standards, total capital has been defined as Tier I (core) capital and Tier II (supplementary) capital. The Company’s Tier I capital includes shareholders’ equity (net of unrealized security gains and losses) and subordinated debentures (subject to certain limits) while Tier II capital also includes the allowance for loan losses. The definition of risk-adjusted assets has also been modified to include items both on and off the balance sheet. Each item is then assigned a risk weight or risk adjustment factor to determine ratios of capital to risk adjusted assets.

Prior to January 1, 2015, the guidelines included a minimum for the ratio of total capital to risk-weighted assets of 8%, with at least half of the ratio composed of common shareholders’ equity, minority interests in certain equity accounts of consolidated subsidiaries and a limited amount of qualifying preferred stock and qualified trust preferred securities, less goodwill and certain other intangible assets (known as “Tier 1” risk-based capital). The guidelines also provided for a minimum ratio of Tier 1 capital to average assets, or “leverage ratio,” of 3% for financial holding companies and bank holding companies that met certain criteria, including having the highest regulatory rating, and 4% for all other financial holding companies and bank holding companies.

The risk-based capital guidelines adopted by the federal banking agencies are based on the “International Convergence of Capital Measurement and Capital Standard” (Basel I), published by the Basel Committee on Banking Supervision (the “Basel Committee”) in 1988. In 2004, the Basel Committee published a new capital adequacy framework (Basel II) for large, internationally active banking organizations and in December 2010 and January 2011, the Basel Committee issued an update to Basel II (“Basel III”). The Basel Committee frameworks did not become applicable to banks supervised in the United States until adopted into United States law or regulations. Although the United States banking regulators imposed some of the Basel II and Basel III rules on banks with $250 billion or more in assets or $10 billion of on-balance sheet foreign exposure, it was not until July 2013 that the United States banking regulators issued final (or, in the case of the FDIC, interim final) new capital rules applicable to smaller banking organizations which also implement certain of the provisions of the Dodd-Frank Act (the “Basel III Capital Rules”). Community banking organizations, including FCBC and Citizens, began transitioning to the new rules on January 1, 2015. The new minimum capital requirements became effective on January 1, 2015, whereas a new capital conservation buffer and deductions from common equity capital phase in from January 1, 2016 through January 1, 2019, and most deductions from common equity tier 1 capital will phase in from January 1, 2015 through January 1, 2019.

The new rules include (a) a new common equity tier 1 capital ratio of at least 4.5%, (b) a Tier 1 capital ratio of at least 6.0%, rather than the former 4.0%, (c) a minimum total capital ratio that remains at 8.0%, and (d) a minimum leverage ratio of 4.0%.

Common equity for the common equity tier 1 capital ratio includes common stock (plus related surplus) and retained earnings, plus limited amounts of minority interests in the form of common stock, less the majority of certain regulatory deductions.

Tier 1 capital includes common equity as defined for the common equity tier 1 capital ratio, plus certain non-cumulative preferred stock and related surplus, cumulative preferred stock and related surplus and trust preferred securities that have been grandfathered (but which are not permitted going forward), and limited amounts of minority interests in the form of additional Tier 1 capital instruments, less certain deductions.

See accompanying notes to consolidated financial statements.

15

Tier 2 capital, which can be included in the total capital ratio, includes certain capital instruments (such as subordinated debt) and limited amounts of the allowance for loan and lease losses, subject to new eligibility criteria, less applicable deductions.

The deductions from common equity tier 1 capital include goodwill and other intangibles, certain deferred tax assets, mortgage-servicing assets above certain levels, gains on sale in connection with a securitization, investments in a banking organization’s own capital instruments and investments in the capital of unconsolidated financial institutions (above certain levels). The deductions phase in from 2015 through 2019.

Under the guidelines, capital is compared to the relative risk related to the balance sheet. To derive the risk included in the balance sheet, one of several risk weights is applied to different balance sheet and off-balance sheet assets, primarily based on the relative credit risk of the counterparty. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Some of the risk weightings have been changed effective January 1, 2015.

The new rules also place restrictions on the payment of capital distributions, including dividends, and certain discretionary bonus payments to executive officers if the company does not hold a capital conservation buffer of greater than 2.5 percent composed of common equity tier 1 capital above its minimum risk-based capital requirements, or if its eligible retained income is negative in that quarter and its capital conservation buffer ratio was less than 2.5 percent at the beginning of the quarter. The capital conservation buffer phases in starting on January 1, 2016, at 0.625%. The implementation of Basel III is not expected to have a material impact on FCBC’s or Citizens’ capital ratios.

See accompanying notes to consolidated financial statements.

16

Effects of Inflation

The Company’s balance sheet is typical of financial institutions and reflects a net positive monetary position whereby monetary assets exceed monetary liabilities. Monetary assets and liabilities are those which can be converted to a fixed number of dollars and include cash assets, securities, loans, money market instruments, deposits and borrowed funds.

During periods of inflation, a net positive monetary position may result in an overall decline in purchasing power of an entity. No clear evidence exists of a relationship between the purchasing power of an entity’s net positive monetary position and its future earnings. Moreover, the Company’s ability to preserve the purchasing power of its net positive monetary position will be partly influenced by the effectiveness of its asset/liability management program. As part of the asset/liability management process, management reviews and monitors information and projections on inflation as published by the Federal Reserve Board and other sources. This information speaks to inflation as determined by its impact on consumer prices and also the correlation of inflation and interest rates. This information is but one component in an asset liability process designed to limit the impact of inflation on the Company. Management does not believe that the effect of inflation on its nonmonetary assets (primarily bank premises and equipment) is material as such assets are not held for resale and significant disposals are not anticipated.

Fair Value of Financial Instruments

The Company has disclosed the fair value of its financial instruments at December 31, 2014 and 2013 in Note 16 to the Consolidated Financial Statements. The fair value of loans at December 31, 2014 was 100.8% of the carrying value compared to 102.0% at December 31, 2013. The fair value of deposits at December 31, 2014 was 100.1% of the carrying value compared to 100.2% at December 31, 2013.

Contractual Obligations

The following table represents significant fixed and determinable contractual obligations of the Company as of December 31, 2014.

Contractual Obligations	One year or less		One to three years		Three to five years		Over five years		Total
Deposits without a stated maturity	$	748,948	$	—	$	—	$	—	$	748,948
Certificates of deposit and IRAs		115,336		83,746		15,564		5,324		219,970
FHLB advances, securities sold under agreements to repurchase and U.S. Treasury interest-bearing demand note		47,700		2,500		15,000		—		65,200
Subordinated debentures (1)		—		—		—		29,427		29,427
Operating leases		335		529		205		—		1,069

(1) The subordinated debentures consist of $2,000, $2,500, $5,000, $7,500, and $12,500 debentures.

The Company has retail repurchase agreements with clients within its local market areas. These borrowings are collateralized with securities owned by the Company. See Note 11 to the Consolidated Financial Statements for further detail. The Company also has a cash management advance line of credit and outstanding letters of credit with the FHLB. For further discussion, refer to Note 10 to the Consolidated Financial Statements.

See accompanying notes to consolidated financial statements.

17

Quantitative and Qualitative Disclosures about Market Risk

The Company’s primary market risk exposure is interest-rate risk and, to a lesser extent, liquidity risk. All of the Company’s transactions are denominated in U.S. dollars with no specific foreign exchange exposure.

Interest-rate risk is the exposure of a banking organization’s financial condition to adverse movements in interest rates. Accepting this risk can be an important source of profitability and shareholder value. However, excessive levels of interest-rate risk can pose a significant threat to the Company’s earnings and capital base. Accordingly, effective risk management that maintains interest-rate risk at prudent levels is essential to the Company’s safety and soundness.

Evaluating a financial institution’s exposure to changes in interest rates includes assessing both the adequacy of the management process used to control interest-rate risk and the organization’s quantitative level of exposure. When assessing the interest-rate risk management process, the Company seeks to ensure that appropriate policies, procedures, management information systems and internal controls are in place to maintain interest-rate risk at prudent levels with consistency and continuity. Evaluating the quantitative level of interest rate risk exposure requires the Company to assess the existing and potential future effects of changes in interest rates on its consolidated financial condition, including capital adequacy, earnings, liquidity and, where appropriate, asset quality.

The Federal Reserve Board, together with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, adopted a Joint Agency Policy Statement on interest-rate risk, effective June 26, 1996. The policy statement provides guidance to examiners and bankers on sound practices for managing interest-rate risk, which will form the basis for ongoing evaluation of the adequacy of interest-rate risk management at supervised institutions. The policy statement also outlines fundamental elements of sound management that have been identified in prior Federal Reserve guidance and discusses the importance of these elements in the context of managing interest-rate risk. Specifically, the guidance emphasizes the need for active board of director and senior management oversight and a comprehensive risk-management process that effectively identifies, measures, and controls interest-rate risk. Financial institutions derive their income primarily from the excess of interest collected over interest paid. The rates of interest an institution earns on its assets and owes on its liabilities generally are established contractually for a period of time. Since market interest rates change over time, an institution is exposed to lower profit margins (or losses) if it cannot adapt to interest-rate changes. For example, assume that an institution’s assets carry intermediate- or long-term fixed rates and that those assets were funded with short-term liabilities. If market interest rates rise by the time the short-term liabilities must be refinanced, the increase in the institution’s interest expense on its liabilities may not be sufficiently offset if assets continue to earn at the long-term fixed rates. Accordingly, an institution’s profits could decrease on existing assets because the institution will have either lower net interest income or, possibly, net interest expense. Similar risks exist when assets are subject to contractual interest-rate ceilings, or rate sensitive assets are funded by longer-term, fixed-rate liabilities in a decreasing-rate environment.

Several techniques may be used by an institution to minimize interest-rate risk. One approach used by the Company is to periodically analyze its assets and liabilities and make future financing and investment decisions based on payment streams, interest rates, contractual maturities, and estimated sensitivity to actual or potential changes in market interest rates. Such activities fall under the broad definition of asset/liability management. The Company’s primary asset/liability management technique is the measurement of the Company’s asset/liability gap, that is, the difference between the cash flow amounts of interest sensitive assets and liabilities that will be refinanced (or repriced) during a given period. For example, if the asset amount to be repriced exceeds the corresponding liability amount for a certain day, month, year, or longer period, the institution is in an asset sensitive gap position. In this situation, net interest income would increase if market interest rates rose or decrease if market interest rates fell. If,

See accompanying notes to consolidated financial statements.

18

alternatively, more liabilities than assets will reprice, the institution is in a liability sensitive position. Accordingly, net interest income would decline when rates rose and increase when rates fell. Also, these examples assume that interest rate changes for assets and liabilities are of the same magnitude, whereas actual interest rate changes generally differ in magnitude for assets and liabilities.

Several ways an institution can manage interest-rate risk include selling existing assets or repaying certain liabilities; matching repricing periods for new assets and liabilities, for example, by shortening terms of new loans or securities. Financial institutions are also subject to prepayment risk in falling rate

environments. For example, mortgage loans and other financial assets may be prepaid by a debtor so that the debtor may refund its obligations at new, lower rates. The Company does not have significant derivative financial instruments and does not intend to purchase a significant amount of such instruments in the near future. Prepayments of assets carrying higher rates reduce the Company’s interest income and overall asset yields. A large portion of an institution’s liabilities may be short term or due on demand, while most of its assets may be invested in long term loans or securities. Accordingly, the Company seeks to have in place sources of cash to meet short-term demands. These funds can be obtained by increasing deposits, borrowing, or selling assets. Also, FHLB advances and wholesale borrowings may be used as important sources of liquidity for the Company.

The following table provides information about the Company’s financial instruments that are sensitive to changes in interest rates as of December 31, 2014 and 2013, based on certain prepayment and account decay assumptions that management believes are reasonable. The Company had derivative financial instruments as of December 31, 2014 and 2013. The changes in fair value of the assets and liabilities of the underlying contracts offset each other. For more information about derivative financial instruments see Note 22 to the Consolidated Financial Statements. Expected maturity date values for interest-bearing core deposits were calculated based on estimates of the period over which the deposits would be outstanding. The Company’s borrowings were tabulated by contractual maturity dates and without regard to any conversion or repricing dates.

Net Portfolio Value
	December 31, 2014							December 31, 2013
Change in Rates	Dollar Amount		Dollar Change		Percent Change			Dollar Amount		Dollar Change		Percent Change
+200bp	$	160,744	$	14,829		10	%	$	154,501	$	8,613		6	%
+100bp		155,452		9,537		7	%		151,871		5,983		4	%
Base		145,915		—		—			145,888		—		—
-100bp		151,829		5,914		4	%		160,141		14,253		10	%

The change in net portfolio value from December 31, 2013 to December 31, 2014, can be attributed to two factors. The yield curve has seen a downward, nearly parallel, shift since the end of 2013, although the shorter end of the curve shifted less. Additionally, both the mix of assets and funding sources has changed. The mix of assets has shifted toward loans and away from cash and securities, which leads to less volatility. The funding mix shifted from CDs to deposits and borrowed money, which tends to increase volatility. Although the shifts in mixes were such that the base remained nearly unchanged, projected movements in rates, up or down, would also lead to changes in market values. The change in the rates up scenarios for both the 100 and 200 basis point movements would lead to a faster decrease in the fair value of liabilities, compared to assets. Accordingly we would see an increase in the net portfolio value. A downward change in rates would lead to an increase in the net portfolio value as the fair value of assets would increase more quickly than the fair value of liabilities.

See accompanying notes to consolidated financial statements.

19

Critical Accounting Policies

Allowance for Loan Losses: The allowance for loan losses is regularly reviewed by management to determine that the amount is considered adequate to absorb probable losses in the loan portfolio. If not, an additional provision is made to increase the allowance. This evaluation includes specific loss estimates on certain individually reviewed impaired loans, the pooling of commercial credits risk graded as special mention and substandard that are not individually analyzed, and general loss estimates that are based upon the size, quality, and concentration characteristics of the various loan portfolios, adverse situations that may affect a borrower’s ability to repay, and current economic and industry conditions, among other items.

Those judgments and assumptions that are most critical to the application of this accounting policy are assessing the initial and on-going credit-worthiness of the borrower, the amount and timing of future cash flows of the borrower that are available for repayment of the loan, the sufficiency of underlying collateral, the enforceability of third-party guarantees, the frequency and subjectivity of loan reviews and risk ratings, emerging or changing trends that might not be fully captured in the historical loss experience, and charges against the allowance for actual losses that are greater than previously estimated. These judgments and assumptions are dependent upon or can be influenced by a variety of factors, including the breadth and depth of experience of lending officers, credit administration and the corporate loan review staff that periodically review the status of the loan, changing economic and industry conditions, changes in the financial condition of the borrower and changes in the value and availability of the underlying collateral and guarantees.

Note 1 and Note 4 to the Consolidated Financial Statements provide additional information regarding Allowance for Loan Losses.

Goodwill: The Company performs an annual evaluation of goodwill for impairment, or more frequently if events or changes in circumstances indicate that the asset might be impaired. Management performed an evaluation of the Company’s goodwill during the fourth quarter of 2014. In performing its evaluation, management obtained several commonly used financial ratios from pending and completed purchase transactions for banks based in the Midwest. Management used these ratios to determine an implied fair value for the Company. The implied fair value exceeded the carrying value including goodwill. Therefore management concluded that goodwill was not impaired and made no adjustment in 2014.

Other-Than-Temporary Impairment of Investment Securities: The Company performs a quarterly valuation to determine if a decline in the value of an investment security is other than temporary. Although the term “other than temporary” is not intended to indicate that the decline is permanent, it does indicate that the prospects for a near-term recovery of value are not necessarily favorable, or that there is lack of evidence to support fair values equal to or greater than the carrying value of the investment. Once a decline in value is determined to be other than temporary, the value of the security is reduced and a corresponding charge to earnings is recognized. Management utilizes criteria such as the magnitude and duration of the decline, in addition to the reasons underlying the decline, to determine whether the loss in value is other than temporary.

Pension Benefits: Pension costs and liabilities are dependent on assumptions used in calculating such amounts. These assumptions include discount rates, benefits earned, interest costs, expected return on plan assets, mortality rates, and other factors. In accordance with GAAP, actual results that differ from the assumptions are accumulated and amortized over future periods and, therefore, generally affect recognized expense and the recorded obligation of future periods. While management believes that the assumptions used are appropriate, differences in actual experience or changes in assumptions may affect the Company’s pension obligations and future expense. Our pension benefits are described further in Note 14 of the “Notes to Consolidated Financial Statements.”

See accompanying notes to consolidated financial statements.

20

Management’s Report on Internal Control over Financial Reporting

We, as management of First Citizens Banc Corp, are responsible for establishing and maintaining effective internal control over financial reporting that is designed to produce reliable financial statements in conformity with United States generally accepted accounting principles. The system of internal control over financial reporting as it relates to the financial statements is evaluated for effectiveness by management and tested for reliability through a program of internal audits. Actions are taken to correct potential deficiencies as they are identified. Any system of internal control, no matter how well designed, has inherent limitations, including the possibility that a control can be circumvented or overridden and misstatements due to error or fraud may occur and not be detected. Also, because of changes in conditions, internal control effectiveness may vary over time. Accordingly, even an effective system of internal control will provide only reasonable assurance with respect to financial statement preparation.

Management assessed the Company’s system of internal control over financial reporting as of December 31, 2014, in relation to criteria for effective internal control over financial reporting as described in “2013 Internal Control – Integrated Framework,” issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this assessment, management concludes that, as of December 31, 2014, its system of internal control over financial reporting is effective and meets the criteria of the “2013 Internal Control – Integrated Framework”. S.R. Snodgrass, P.C., independent registered public accounting firm, has issued an audit report on the effectiveness of the Company’s internal control over financial reporting as of December 31, 2014.

Management is responsible for compliance with the federal and state laws and regulations concerning dividend restrictions and federal laws and regulations concerning loans to insiders designated by the FDIC as safety and soundness laws and regulations.

Management has assessed compliance by the Company with the designated laws and regulations relating to safety and soundness. Based on the assessment, management believes that the Company complied, in all significant respects, with the designated laws and regulations related to safety and soundness for the year ended December 31, 2014.

James O. Miller	Todd A. Michel
President, Chief Executive Officer, Chairman of the Board	Senior Vice President, Controller

Sandusky, Ohio

March 13, 2015

See accompanying notes to consolidated financial statements.

21

Report of Independent Registered Public Accounting Firm on Internal Control Over Financial Reporting

Board of Directors and Stockholders

First Citizens Banc Corp

Sandusky, Ohio

We have audited First Citizens Banc Corp and subsidiaries’ internal control over financial reporting as of December 31, 2014, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013. First Citizens Banc Corp and subsidiaries’ management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the company’s internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (a) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (b) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (c) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, First Citizens Banc Corp and subsidiaries maintained, in all material respects, effective internal control over financial reporting as of December 31, 2014, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of First Citizens Banc Corp and subsidiaries as of December 31, 2014 and 2013, and the related consolidated statements of operations, comprehensive income, changes in shareholders’ equity, and cash flows for each of the two years in the period ended December 31, 2014, and our report dated March 13, 2015, expressed an unqualified opinion.

Wexford, Pennsylvania

March 13, 2015

See accompanying notes to consolidated financial statements.

22

Report of Independent Registered Public Accounting Firm on Financial Statements

Board of Directors and Stockholders

First Citizens Banc Corp

Sandusky, Ohio

We have audited the accompanying consolidated balance sheets of First Citizens Banc Corp and subsidiaries as of December 31, 2014 and 2013, and the related consolidated statements of operations, comprehensive income, changes in shareholders’ equity, and cash flows for each of the two years in the period ended December 31, 2014. These consolidated financial statements are the responsibility of First Citizens Banc Corp’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of First Citizens Banc Corp and subsidiaries as of December 31, 2014 and 2013, and the results of their operations and their cash flows for each of the two years in the period ended December 31, 2014, in conformity with U.S. generally accepted accounting principles.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), First Citizens Banc Corp and subsidiaries’ internal control over financial reporting as of December 31, 2014, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013, and our report dated March 13, 2015 expressed an unqualified opinion on the effectiveness of First Citizens Banc Corp and subsidiaries’ internal control over financial reporting.

Wexford, Pennsylvania

March 13, 2015

See accompanying notes to consolidated financial statements.

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FIRST CITIZENS BANC CORP

CONSOLIDATED BALANCE SHEETS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

	2014			2013
ASSETS
Cash and due from financial institutions	$	29,858		$	34,186
Securities available for sale		197,905			199,613
Loans held for sale		2,410			438
Loans, net of allowance of $14,268 and $16,528		900,589			844,713
Other securities		12,586			15,424
Premises and equipment, net		14,400			16,313
Accrued interest receivable		3,852			3,881
Goodwill		21,720			21,720
Other intangible assets		2,025			2,763
Bank owned life insurance		19,637			19,145
Other assets		8,209			9,350
Total assets	$	1,213,191		$	1,167,546
LIABILITIES
Deposits
Noninterest-bearing	$	250,701		$	234,976
Interest-bearing		718,217			707,499
Total deposits		968,918			942,475
Federal Home Loan Bank advances		65,200			37,726
Securities sold under agreements to repurchase		21,613			20,053
Subordinated debentures		29,427			29,427
Accrued expenses and other liabilities		12,124			9,489
Total liabilities		1,097,282			1,039,170
SHAREHOLDERS’ EQUITY
Preferred stock, no par value, 200,000 shares authorized
Series A Preferred stock, $1,000 liquidation preference, 23,184 shares issued		—			23,184
Series B Preferred stock, $1,000 liquidation preference, 25,000 shares issued		23,132			23,132
Common stock, no par value, 20,000,000 shares authorized, 8,455,881 shares issued		114,365			114,365
Accumulated deficit		(4,306	)		(10,823	)
Treasury stock, 747,964 shares at cost		(17,235	)		(17,235	)
Accumulated other comprehensive loss		(47	)		(4,247	)
Total shareholders’ equity		115,909			128,376
Total liabilities and shareholders’ equity	$	1,213,191		$	1,167,546

See accompanying notes to consolidated financial statements.

24

FIRST CITIZENS BANC CORP

CONSOLIDATED STATEMENTS OF OPERATIONS

Years ended December 31, 2014 and 2013

(Amounts in thousands, except per share data)

	2014		2013
Interest and dividend income
Loans, including fees	$	40,032	$	38,776
Taxable securities		3,443		3,763
Tax-exempt securities		2,356		2,211
Federal funds sold and other		139		131
Total interest and dividend income		45,970		44,881
Interest expense
Deposits		2,292		2,788
Federal Home Loan Bank advances		1,015		1,358
Subordinated debentures		777		740
Securities sold under agreements to repurchase		20		21
Total interest expense		4,104		4,907
Net interest income		41,866		39,974
Provision for loan losses		1,500		1,100
Net interest income after provision for loan losses		40,366		38,874
Noninterest income
Service charges		4,119		4,201
Net gain on sale of securities		113		204
Net gain on sale of loans		659		461
ATM fees		1,988		1,996
Trust fees		3,130		2,627
Bank owned life insurance		492		555
Tax refund processing fees		2,324		430
Computer center item processing fees		260		248
Net gain on sale of other real estate owned		44		120
Other		745		1,220
Total noninterest income		13,874		12,062
Noninterest expense
Salaries, wages and benefits		22,293		24,758
Net occupancy expense		2,256		2,209
Equipment expense		1,421		1,273
Contracted data processing		1,560		1,306
FDIC Assessment		905		1,008
State franchise tax		888		1,130
Professional services		1,855		1,677
Amortization of intangible assets		769		846
ATM expense		806		650
Marketing expense		1,159		634
Repossession expense		673		964
Other operating expenses		6,965		6,929
Total noninterest expense		41,550		43,384
Income before income taxes		12,690		7,552
Income taxes		3,162		1,373
Net income		9,528		6,179
Preferred stock dividends and discount accretion		1,873		1,159
Net income available to common shareholders	$	7,655	$	5,020
Earnings per common share, basic	$	0.99	$	0.65
Earnings per common share, diluted	$	0.85	$	0.64

See accompanying notes to consolidated financial statements.

25

FIRST CITIZENS BANC CORP

CONSOLIDATED COMPREHENSIVE INCOME STATEMENTS

Years ended December 31, 2014 and 2013

(Amounts in thousands, except per share data)

	2014			2013
Net income	$	9,528		$	6,179
Other comprehensive income (loss):
Unrealized holding gains (loss) on available for sale securities		5,134			(8,344	)
Tax effect		(1,745	)		2,836
Pension liability adjustment		1,228			4,406
Tax effect		(417	)		(1,498	)
Total other comprehensive income (loss)		4,200			(2,600	)
Comprehensive income	$	13,728		$	3,579

See accompanying notes to consolidated financial statements.

26

FIRST CITIZENS BANC CORP

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

Years ended December 31, 2014 and 2013

(Amounts in thousands, except share data)

	Preferred Stock						Common Stock				Accumulated deficit			Treasury Stock			Accumulated Other Comprehensive Loss			Total Shareholders’ Equity
	Shares			Amount			Shares		Amount
Balance, December 31, 2012		23,184		$	23,184			7,707,917	$	114,365	$	(14,687	)	$	(17,235	)	$	(1,647	)	$	103,980
Net income												6,179									6,179
Other comprehensive loss																		(2,600	)		(2,600	)
Issuance of Series B preferred shares, net of issuance costs		25,000			23,132																23,132
Cash dividends ($0.15 per share)												(1,156	)								(1,156	)
Preferred stock dividends												(1,159	)								(1,159	)
Balance, December 31, 2013		48,184		$	46,316			7,707,917	$	114,365	$	(10,823	)	$	(17,235	)	$	(4,247	)	$	128,376
Net income												9,528									9,528
Other comprehensive income																		4,200			4,200
Cash dividends ($0.19 per share)												(1,465	)								(1,465	)
Preferred stock dividends												(1,873	)								(1,873	)
Redemption of Series A preferred stock		(23,184	)		(23,184	)						327									(22,857	)
Balance, December 31, 2014		25,000		$	23,132			7,707,917	$	114,365	$	(4,306	)	$	(17,235	)	$	(47	)	$	115,909

See accompanying notes to consolidated financial statements.

27

FIRST CITIZENS BANC CORP

CONSOLIDATED STATEMENTS OF CASH FLOWS

Years ended December 31, 2014 and 2013

(Amounts in thousands)

	2014			2013
Cash flows from operating activities:
Net income	$	9,528		$	6,179
Adjustments to reconcile net income to net cash from operating activities
Security amortization, net		1,491			1,633
Depreciation		1,176			1,334
Amortization of intangible assets		769			846
Amortization of net deferred loan fees		(123	)		(112	)
Gain on sale of securities		(113	)		(204	)
Provision for loan losses		1,500			1,100
Loans originated for sale		(31,206	)		(49,978	)
Proceeds from sale of loans		29,893			51,874
Net gain on sale of loans		(659	)		(461	)
Net gain on sale of other real estate owned		(44	)		(120	)
Gain on sale of fixed assets		(60	)		(107	)
Increase in cash surrender value of bank owned life insurance		(492	)		(555	)
Decrease in prepaid FDIC Premium		—			1,775
Change in
Accrued interest payable		(30	)		(29	)
Accrued interest receivable		29			(172	)
Deferred taxes		11			1,362
Other, net		3,216			(1,554	)
Net cash from operating activities		14,886			12,811
Cash flows used for investing activities:
Securities available for sale
Maturities, prepayments and calls		45,743			50,184
Sales		18,088			8,686
Purchases		(58,367	)		(64,295	)
Redemption of Federal Reserve stock		—			143
Purchases of Federal Reserve stock		(171	)		—
Redemption of FHLB stock		3,009			—
Net loan originations		(53,562	)		(48,272	)
Loans purchased, installment		(4,382	)		(1,898	)
Proceeds from sale of OREO properties		349			699
Property and equipment purchases		(485	)		(1,155	)
Proceeds from sale of property and equipment		1,282			118
Net cash used for investing activities		(48,496	)		(55,790	)

See accompanying notes to consolidated financial statements.

28

FIRST CITIZENS BANC CORP

CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

Years ended December 31, 2014 and 2013

(Amounts in thousands)

	2014			2013
Cash flows from financing activities:
Increase in deposits		26,443			16,086
Net proceeds from short-term FHLB advances		42,700			—
Repayment of long-term FHLB advances		(30,226	)		(2,535	)
Proceeds from long-term FHLB advances		15,000			—
Increase (decrease) in securities sold under repurchase agreements		1,560			(3,166	)
Repayment of series A preferred stock		(22,857	)		—
Common dividends paid		(1,465	)		(1,156	)
Preferred dividends paid		(1,873	)		(1,159	)
Net proceeds from issuance of preferred stock		—			23,132
Net cash provided by financing activities		29,282			31,202
Decrease in cash and due from financial institutions		(4,328	)		(11,777	)
Cash and due from financial institutions at beginning of year		34,186			45,963
Cash and due from financial institutions at end of year	$	29,858		$	34,186
Supplemental cash flow information:
Interest paid	$	4,134		$	4,936
Income taxes paid	$	1,745		$	1,010
Supplemental non-cash disclosures:
Transfer of loans from portfolio to other real estate owned	$	692		$	280
Transfer of loans from portfolio to held for sale	$	—		$	4,756

See accompanying notes to consolidated financial statements.

29

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of the accounting policies adopted by First Citizens Banc Corp, which have a significant effect on the financial statements.

Nature of Operations and Principles of Consolidation: The Consolidated Financial Statements include the accounts of First Citizens Banc Corp (FCBC) and its wholly-owned subsidiaries: The Citizens Banking Company (Citizens), First Citizens Insurance Agency, Inc., Water Street Properties, Inc. (Water St.) and FC Refund Solutions, Inc. (FCRS). First Citizens Capital LLC (FCC) is wholly-owned by Citizens and holds inter-company debt. First Citizens Investments, Inc. (FCI) is wholly-owned by Citizens and holds and manages its securities portfolio. The operations of FCI and FCC are located in Wilmington, Delaware. The above companies together are sometimes referred to as the Company. Intercompany balances and transactions are eliminated in consolidation.

The Company provides financial services through its offices in the Ohio counties of Erie, Crawford, Champaign, Franklin, Logan, Summit, Huron, Ottawa, Madison and Richland. Its primary deposit products are checking, savings, and term certificate accounts, and its primary lending products are residential mortgage, commercial, and installment loans. Substantially all loans are secured by specific items of collateral including business assets, consumer assets and commercial and residential real estate. Commercial loans are expected to be repaid from cash flow from operations of businesses. There are no significant concentrations of loans to any one industry or customer. However, the customer’s ability to repay their loans is dependent on the real estate and general economic conditions in the area. Other financial instruments that potentially represent concentrations of credit risk include deposit accounts in other financial institutions.

First Citizens Insurance Agency Inc. was formed to allow the Company to participate in commission revenue generated through its third party insurance agreement. Insurance commission revenue was less than 1.0% of total revenue for the years ended December 31, 2014 and 2013. Water St. was formed to hold repossessed assets of FCBC’s subsidiaries. Water St. revenue was less than 1% of total revenue for the years ended December 31, 2014 and 2013. FCRS was formed in 2012 and remained inactive for the periods presented.

Use of Estimates: To prepare financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and future results could differ. The allowance for loan losses, determination of goodwill impairment, fair values of financial instruments, valuation of deferred tax assets, pension obligations and other-than-temporary-impairment of securities are considered material estimates that are particularly susceptible to significant change in the near term.

Cash Flows: Cash and cash equivalents include cash on hand and demand deposits with financial institutions with original maturities fewer than 90 days. Net cash flows are reported for customer loan and deposit transactions, interest bearing deposits in other financial institutions, and federal funds purchased or sold and repurchase agreements.

(Continued)

30

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Securities: Debt securities are classified as available-for-sale when they might be sold before maturity. Equity securities with readily determinable fair values are also classified as available for sale. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax.

Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage backed securities where prepayments are anticipated. Gains and losses on sales are based on the amortized cost of the security sold using the specific identification method.

The recent guidance specifies that if (a) a company does not have the intent to sell a debt security prior to recovery and (b) it is more-likely-than-not that it will not have to sell the debt security prior to recovery; the security would not be considered other-than-temporarily impaired unless there is a credit loss. When an entity does not intend to sell the security, and it is more-likely-than-not the entity will not have to sell the security before recovery of its cost basis, it will recognize the credit component of other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. For held-to-maturity debt securities, the amount of other-than-temporary impairment recorded in other comprehensive income for the noncredit portion of a previous other-than-temporary impairment should be amortized prospectively over the remaining life of the security on the basis of the timing of future estimated cash flows of the security.

For available-for-sale debt securities that management has no intent to sell and believes that it more-likely-than-not will not be required to sell prior to recovery, only the credit loss component of the impairment is recognized in earnings, while the non-credit loss is recognized in accumulated other comprehensive income. The credit loss component recognized in earnings is identified as the amount of principal cash flows not expected to be received over the remaining term of the security as projected based on cash flow projections.

Other securities which include Federal Home Loan Bank (FHLB) stock, Federal Reserve Bank (FRB) stock, Farmer Mac stock (FMS), Bankers’ Bancshares Inc. (BB) stock, and Norwalk Community Development Corp (NCDC) stock are carried at cost.

Loans Held for Sale: Mortgage loans originated and intended for sale in the secondary market and loans that management no longer intends to hold for the foreseeable future, are carried at the lower of aggregate cost or market, as determined by outstanding commitments from investors. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings.

Loans: Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of deferred loan fees and costs, and an allowance for loan losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments.

(Continued)

31

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Interest income on mortgage and commercial loans is discontinued at the time the loan is 90 days delinquent unless the credit is well-secured and in process of collection. Interest income on consumer loans is discontinued when management determines future collection is unlikely. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful.

All interest accrued, but not received, for loans placed on nonaccrual, is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Purchased Loans: The Company purchases individual loans and groups of loans. Purchased loans that show evidence of credit deterioration since origination are recorded at the amount paid (or allocated fair value in a purchase business combination), such that there is no carryover of the seller’s allowance for loan losses. After acquisition, incurred losses are recognized by an increase in the allowance for loan losses.

Purchased loans are accounted for individually or aggregated into pools of loans based on common risk characteristics (e.g., credit score, loan type, and date of origination). The Company estimates the amount and timing of expected cash flows for each purchased loan or pool, and the expected cash flows in excess of amount paid is recorded as interest income over the remaining life of the loan or pool (accretable yield). The excess of the loan’s, or pool’s, contractual principal and interest over expected cash flows is not recorded (nonaccretable difference).

Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded. If the present value of expected future cash flows is greater than the carrying amount, it is recognized as part of future interest income.

Allowance for Loan Losses: The allowance for loan losses (allowance) is calculated with the objective of maintaining a reserve sufficient to absorb inherent loan losses in the loan portfolio. Management establishes the allowance for loan losses based upon its evaluation of the pertinent factors underlying the types and quality of loans in the portfolio. In determining the allowance and the related provision for loan losses, the Company considers three principal elements: (i) specific impairment reserve allocations (valuation allowances) based upon probable losses identified during the review of impaired loans in the Commercial loan portfolio, (ii) allocations established for adversely-rated loans in the Commercial loan portfolio and nonaccrual Real Estate Residential, Consumer installment and Home Equity loans, (iii) allocations on all other loans based principally on a two-year historical loan loss experience and loan loss trends. These allocations are adjusted for consideration of general economic and business conditions, credit quality and delinquency trends, collateral values, and recent loss experience for these similar pools of loans. The Company analyzes its loan portfolio each quarter to determine the appropriateness of its allowance for loan losses.

(Continued)

32

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

All commercial loans and commercial real estate loans are monitored on a regular basis with a detailed loan review completed for all loans greater than $500. All commercial loans and commercial real estate loans that are 90 days past due or in nonaccrual status, are analyzed to determine if they are “impaired”, which means that it is probable that all amounts will not be collected according to the contractual terms of the loan agreement. All loans that are delinquent 90 days are classified as substandard and placed on nonaccrual status unless they are well-secured and in the process of collection. The remaining loans are evaluated and segmented with loans with similar risk characteristics. The Company allocates reserves based on risk categories and portfolio segments described below, which conform to the Company’s asset classification policy. In reviewing risk within Citizens’ loan portfolio, management has identified specific segments to categorize loan portfolio risk: (i) Commercial & Agriculture loans; (ii) Commercial Real Estate loans; (iii) Residential Real Estate loans; (iv) Real Estate Construction loans; (vi) Home Equity Lines of Credit (HELOC); (vii) Indirect Auto loans; and (vii) Consumer and Other loans. Additional information related to economic factors can be found in Note 4.

Loan Charge-off Policies: All unsecured open- and closed-ended retail loans that become past due 90 days from the contractual due date are charged off in full. In lieu of charging off the entire loan balance, loans with non real estate collateral may be written down to the net realizable value of the collateral, if repossession of collateral is assured and in process. For open- and closed-ended loans secured by residential real estate, a current assessment of value is made no later than 180 days past due. Any outstanding loan balance in excess of the net realizable value of the property is charged off. All other loans are generally charged down to the net realizable value when Citizens recognizes the loan is permanently impaired, which is generally after the loan is 90 days past due.

Troubled Debt Restructurings: In certain situations based on economic or legal reasons related to a borrower’s financial difficulties, management may grant a concession for other than an insignificant period of time to the borrower that would not otherwise be considered. The related loan is classified as a troubled debt restructuring (TDR). Management strives to identify borrowers in financial difficulty early and work with them to modify to more affordable terms before their loan reaches nonaccrual status. These modified terms may include rate reductions, principal forgiveness, payment forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. In cases where borrowers are granted new terms that provide for a reduction of either interest or principal, management measures any impairment on the restructuring as noted above for impaired loans. In addition to the allowance for the pooled portfolios, management has developed a separate reserve for loans that are identified as impaired through a TDR. These loans are excluded from pooled loss forecasts and a separate reserve is provided under the accounting guidance for loan impairment. Consumer loans whose terms have been modified in a TDR are also individually analyzed for estimated impairment.

Other Real Estate: Other real estate acquired through or instead of loan foreclosure is initially recorded at fair value less costs to sell when acquired, establishing a new cost basis and any deficiency in the value is charged off through the allowance. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. Operating costs after acquisition are expensed. Other real estate owned included in other assets totaled approximately $560 at December 31, 2014 and $173 at December 31, 2013.

(Continued)

33

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Premises and Equipment: Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed using both accelerated and straight-line methods over the estimated useful life of the asset, ranging from three to seven years for furniture and equipment and seven to fifty years for buildings and improvements.

Federal Home Loan Bank (FHLB) Stock: Citizens is a member of the FHLB of Cincinnati and as such, is required to maintain a minimum investment in stock of the FHLB that varies with the level of advances outstanding with the FHLB. The stock is bought from and sold to the FHLB based upon its $100 par value. The stock does not have a readily determinable fair value and as such is classified as restricted stock, carried at cost and evaluated for impairment by management. The stock’s value is determined by the ultimate recoverability of the par value rather than by recognizing temporary declines. The determination of whether the par value will ultimately be recovered is influenced by criteria such as the following: (a) the significance of the decline in net assets of the FHLB as compared to the capital stock amount and the length of time this situation has persisted (b) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance (c) the impact of legislative and regulatory changes on the customer base of the FHLB and (d) the liquidity position of the FHLB. With consideration given to these factors, management concluded that the stock was not impaired at December 31, 2014 or 2013.

Federal Reserve Bank (FRB) Stock: Citizens is a member of the Federal Reserve System. FRB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value.

Bank Owned Life Insurance (BOLI): Citizens has purchased BOLI policies on certain key executives. BOLI is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement.

Goodwill and Other Intangible Assets: Goodwill results from prior business acquisitions and represents the excess of the purchase price over the fair value of acquired tangible assets and liabilities and identifiable intangible assets. Goodwill is assessed at least annually for impairment and any such impairment will be recognized in the period identified.

Other intangible assets consist of core deposit intangibles arising from whole bank and branch acquisitions. These intangible assets are measured at fair value and then amortized on an accelerated method over their estimated useful lives, which range from five to twelve years.

Servicing Rights: Servicing rights are recognized as assets for the allocated value of retained servicing rights on loans sold. Servicing rights are initially recorded at fair value at the date of transfer. The valuation technique used is the present value of estimated future cash flows using current market discount rates. Servicing rights are amortized in proportion to, and over the period of, estimated net servicing revenues. Impairment is evaluated based on the fair value of the rights, using groupings of the underlying loans as to interest rates and then, secondarily, prepayment characteristics. Fair value is determined using prices for similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. Any impairment of a grouping is reported as a valuation allowance to the extent that fair value is less than the capitalized asset for the grouping.

(Continued)

34

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Long-term Assets: Premises and equipment, core deposit and other intangible assets, and other long-term assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value.

Repurchase Agreements: Substantially all repurchase agreement liabilities represent amounts advanced by various customers. Securities are pledged to cover these liabilities, which are not covered by federal deposit insurance.

Loan Commitments and Related Financial Instruments: Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay.

Income Taxes: Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax basis of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized.

The Company prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Benefits from tax positions should be recognized in the financial statements only when it is more likely than not that the tax position will be sustained upon examination by the appropriate taxing authority that would have full knowledge of all relevant information.

A tax position that meets the more-likely-than-not recognition threshold is measured at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not recognition threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. The Company recognizes interest and/or penalties related to income tax matters in income tax expense.

Retirement Plans: Pension expense is the net of service and interest cost, expected return on plan assets and amortization of gains and losses not immediately recognized. Employee 401(k) and profit sharing plan expense is the amount of matching contributions. Deferred compensation allocates the benefits over the years of service.

Earnings per Common Share: Basic earnings per share are net income available to common shareholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share include the dilutive effect of additional potential common shares issuable related to convertible preferred shares. Treasury shares are not deemed outstanding for earnings per share calculations.

(Continued)

35

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Comprehensive Income: Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available for sale and changes in the funded status of the pension plan.

Loss Contingencies: Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there now are such matters that will have a material effect on the financial statements.

Restrictions on Cash: Cash on hand or on deposit with the Federal Reserve Bank was required to meet regulatory reserve and clearing requirements. These balances do not earn interest.

Dividend Restriction: Banking regulations require maintaining certain capital levels and may limit the dividends paid by Citizens to FCBC or by FCBC to shareholders. Additional information related to dividend restrictions can be found in Note 18.

Fair Value of Financial Instruments: Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect these estimates.

Operating Segments: While the Company’s chief decision makers monitor the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Operating segments are aggregated into one as operating results for all segments are similar. Accordingly, all of the Company’s financial service operations are considered by management to be aggregated in one reportable operating segment.

Reclassifications: Some items in the prior year financial statements were reclassified to conform to the current presentation. Such reclassifications had no effect on net income or shareholders’ equity.

Derivative Instruments and Hedging Activities: The Company enters into interest rate swap agreements to facilitate the risk management strategies of a small number of commercial banking customers. All derivatives are accounted for in accordance with ASC-815, Derivatives and Hedging. The Company mitigates the risk of entering into these agreements by entering into equal and offsetting swap agreements with highly rated third party financial institutions. The swap agreements are free-standing derivatives and are recorded at fair value in the Company’s consolidated balance sheets. The Company is party to master netting arrangements with its financial institution counterparties; however, the Company does not offset assets and liabilities under these arrangements for financial statement presentation purposes because the Company does not currently intend to execute a setoff with its’ counterparties. The master netting arrangements provide for a single net settlement of all swap agreements, as well as collateral, in the event of default on, or termination of, any one contract. Collateral, usually in the form of marketable securities, is posted by the counterparty with net liability positions in accordance with contract thresholds.

(Continued)

36

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Effect of Newly Issued but Not Yet Effective Accounting Standards:

In January 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-01, Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects. The amendments in this Update permit reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). The amendments in this Update should be applied retrospectively to all periods presented. A reporting entity that uses the effective yield method to account for its investments in qualified affordable housing projects before the date of adoption may continue to apply the effective yield method for those preexisting investments. The amendments in this Update are effective for public business entities for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. Adoption of this Update is not expected to have a significant impact on the Company’s financial statements.

In January 2014, the FASB issued ASU 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The amendments in this Update clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this Update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. An entity can elect to adopt the amendments in this Update using either a modified retrospective transition method or a prospective transition method. This Update is not expected to have a significant impact on the Company’s financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (a new revenue recognition standard). The Update’s core principle is that a company will recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this Update specifies the accounting for certain costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. This Update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is evaluating the effect of adopting this new accounting Update.

(Continued)

37

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

In June 2014, the FASB issued ASU 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. The amendments in this Update change the accounting for repurchase-to-maturity transactions to secured borrowing accounting. For repurchase financing arrangements, the amendments require separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in secured borrowing accounting for the repurchase agreement. The amendments also require enhanced disclosures. The accounting changes in this Update are effective for the first interim or annual period beginning after December 15, 2014. An entity is required to present changes in accounting for transactions outstanding on the effective date as a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. Earlier application is prohibited. The disclosure for certain transactions accounted for as a sale is required to be presented for interim and annual periods beginning after December 15, 2014, and the disclosure for repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions accounted for as secured borrowings is required to be presented for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015. The disclosures are not required to be presented for comparative periods before the effective date. This Update is not expected to have a significant impact on the Company’s financial statements.

In June 2014, the FASB issued ASU 2014-12, Compensation-Stock Compensation (Topic 718): Accounting for Share-Based Payments when the Terms of an Award Provide that a Performance Target Could Be Achieved After the Requisite Service Period. The amendments require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The amendments in this Update are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. Entities may apply the amendments in this Update either (a) prospectively to all awards granted or modified after the effective date or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. If retrospective transition is adopted, the cumulative effect of applying this Update as of the beginning of the earliest annual period presented in the financial statements should be recognized as an adjustment to the opening retained earnings balance at that date. Additionally, if retrospective transition is adopted, an entity may use hindsight in measuring and recognizing the compensation cost. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations.

In August 2014, the FASB issued ASU 2014-14, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40). The amendments in this Update require that a mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if the following conditions are met: (1) the loan has a government guarantee that is not separable from the loan before foreclosure, (2) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim, and (3) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The amendments in this Update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. This Update is not expected to have a significant impact on the Company’s financial statements.

(Continued)

38

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40). The amendments in this Update provide guidance in accounting principles generally accepted in the United States of America about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The amendments in this Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. This Update is not expected to have a significant impact on the Company’s financial statements.

In November 2014, the FASB issued ASU 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity (a consensus of the FASB Emerging Issues Task Force). This Update clarifies how current U.S. GAAP should be interpreted in subjectively evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. Public business entities are required to implement the new requirements in fiscal years and interim periods within those fiscal years beginning after December 15, 2015. This Update is not expected to have a significant impact on the Company’s financial statements.

In November 2014, the FASB issued ASU 2014-17, Business Combinations (Topic 805): Pushdown Accounting. The amendments in this Update apply to the separate financial statements of an acquired entity and its subsidiaries that are a business or nonprofit activity (either public or nonpublic) upon the occurrence of an event in which an acquirer (an individual or an entity) obtains control of the acquired entity. An acquired entity may elect the option to apply pushdown accounting in the reporting period in which the change-in-control event occurs. If pushdown accounting is not applied in the reporting period in which the change-in-control event occurs, an acquired entity will have the option to elect to apply pushdown accounting in a subsequent reporting period to the acquired entity’s most recent change-in-control event. The amendments in this Update are effective on November 18, 2014. After the effective date, an acquired entity can make an election to apply the guidance to future change-in-control events or to its most recent change-in-control event. This Update is not expected to have a significant impact on the Company’s financial statements.

In January 2015, the FASB issued ASU 2015-01, Income Statement – Extraordinary and Unusual Items, as part of its initiative to reduce complexity in accounting standards. This Update eliminates from GAAP the concept of extraordinary items. The amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. This Update is not expected to have a significant impact on the Company’s financial statements.

(Continued)

39

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 2—SECURITIES

The amortized cost and fair value of available for sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive loss were as follows.

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
2014
U.S. Treasury securities and obligations of U.S. government agencies	$	42,910	$	115	$	(123	)	$	42,902
Obligations of states and political subdivisions		83,215		5,112		(306	)		88,021
Mortgage-back securities in government sponsored entities		65,646		976		(180	)		66,442
Total debt securities		191,771		6,203		(609	)		197,365
Equity securities in financial institutions		481		59		—			540
Total	$	192,252	$	6,262	$	(609	)	$	197,905

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
2013
U.S. Treasury securities and obligations of U.S. government agencies	$	52,229	$	95	$	(764	)	$	51,560
Obligations of states and political subdivisions		79,975		2,327		(1,677	)		80,625
Mortgage-back securities in government sponsored entities		66,409		1,127		(557	)		66,979
Total debt securities		198,613		3,549		(2,998	)		199,164
Equity securities in financial institutions		481		—		(32	)		449
Total	$	199,094	$	3,549	$	(3,030	)	$	199,613

(Continued)

40

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 2—SECURITIES (Continued)

The amortized cost and fair value of securities at year end 2014 by contractual maturity were as follows. Securities not due at a single maturity date, primarily mortgage-backed securities, are shown separately.

	Available for sale
	Amortized Cost		Fair Value
Due in one year or less	$	628	$	629
Due from one to five years		27,702		27,723
Due from five to ten years		34,718		36,191
Due after ten years		63,077		66,380
Mortgage-backed securities in government sponsored entities		65,646		66,442
Equity securities in financial institutions		481		540
Total	$	192,252	$	197,905

Securities with a carrying value of $137,898 and $147,625 were pledged as of December 31, 2014 and 2013, respectively, to secure public deposits, other deposits and liabilities as required or permitted by law.

Proceeds from sales of securities, gross realized gains and gross realized losses were as follows.

	2014			2013
Sale proceeds	$	18,088		$	8,686
Gross realized gains		113			144
Gross realized losses		(1	)		(89	)
Gains from securities called or settled by the issuer		1			149

(Continued)

41

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 2—SECURITIES (Continued)

Debt securities with unrealized losses at year end 2014 and 2013 not recognized in income are as follows.

2014	12 Months or less					More than 12 months					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Treasury securities and obligations of U.S. government agencies	$	7,664	$	(17	)	$	11,888	$	(106	)	$	19,552	$	(123	)
Obligations of states and political subdivisions		853		(11	)		5,647		(295	)		6,500		(306	)
Mortgage-backed securities in gov’t sponsored entities		12,289		(29	)		11,492		(151	)		23,781		(180	)
Total temporarily impaired	$	20,806	$	(57	)	$	29,027	$	(552	)	$	49,833	$	(609	)
2013	12 Months or less					More than 12 months					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Treasury securities and obligations of U.S. government agencies	$	30,800	$	(764	)	$	—	$	—		$	30,800	$	(764	)
Obligations of states and political subdivisions		28,428		(1,556	)		968		(121	)		29,396		(1,677	)
Mortgage-backed securities in gov’t sponsored entities		32,557		(553	)		279		(4	)		32,836		(557	)
Equity securities in financial institutions		449		(32	)		—		—			449		(32	)
Total temporarily impaired	$	92,234	$	(2,905	)	$	1,247	$	(125	)	$	93,481	$	(3,030	)

The Company periodically evaluates securities for other-than-temporary impairment. An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis. Unrealized losses that are determined to be temporary in nature are recorded, net of tax, in accumulated other comprehensive income.

(Continued)

42

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 2—SECURITIES (Continued)

The Company has assessed each available-for-sale security position for credit impairment. Factors considered in determining whether a loss is temporary include:

• The length of time and the extent to which fair value has been below cost;

• The severity of impairment;

• The cause of the impairment and the financial condition and near-term prospects of the issuer;

• If the Company intends to sell the investment;

• If it’s more-likely-than-not the Company will be required to sell the investment before recovering its amortized cost basis; and

• If the Company does not expect to recover the investment’s entire amortized cost basis (even if the Company does not intend to sell the investment).

The Company’s review for impairment generally entails:

• Identification and evaluation of investments that have indications of impairment;

• Analysis of individual investments that have fair values less than amortized cost, including consideration of length of time each investment has been in unrealized loss position and the expected recovery period;

• Evaluation of factors or triggers that could cause individual investments to qualify as having other-than-temporary impairment; and

• Documentation of these analyses, as required by policy.

At December 31, 2014, the Company owned 41 securities that were considered temporarily impaired. The unrealized losses on these securities have not been recognized into income because the issuers’ bonds are of high credit quality, management has the intent and ability to hold these securities for the foreseeable future, and the decline in fair value is largely due to changes in market interest rates. The Company also considers sector specific credit rating changes in its analysis. The fair value is expected to recover as the securities approach their maturity date or reset date. The Company does not intend to sell until recovery and does not believe selling will be required before recovery.

NOTE 3—LOANS

Loans at year-end were as follows.

	2014			2013
Commercial and Agriculture	$	114,186		$	115,875
Commercial Real Estate—owner occupied		143,014			161,014
Commercial Real Estate—non-owner occupied		308,666			282,832
Residential Real Estate		268,510			250,691
Real Estate Construction		65,452			39,964
Consumer and Other		15,029			10,865
Total Loans		914,857			861,241
Allowance for loan losses		(14,268	)		(16,528	)
Net loans	$	900,589		$	844,713

(Continued)

43

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 3—LOANS (Continued)

Included in total loans above are deferred loan fees of $237 at December 31, 2014 and $365 at December 31, 2013.

Loans to principal officers, directors, and their affiliates at year-end 2014 and 2013 were as follows.

	2014			2013
Balance—Beginning of year	$	9,294		$	9,997
New loans and advances		2,700			3,262
Repayments		(2,792	)		(3,157	)
Effect of changes to related parties		(2,171	)		(808	)
Balance—End of year	$	7,031		$	9,294

NOTE 4—ALLOWANCE FOR LOAN LOSSES

Management has an established methodology to determine the adequacy of the allowance for loan losses that assesses the risks and losses inherent in the loan portfolio. For purposes of determining the allowance for loan losses, the Company has segmented certain loans in the portfolio by product type. Loans are segmented into the following pools: Commercial and Agriculture loans, Commercial Real Estate – Owner Occupied loans, Commercial Real Estate – Non-owner Occupied loans, Residential Real Estate loans, Real Estate Construction loans and Consumer and Other loans. Historical loss percentages for each risk category are calculated and used as the basis for calculating allowance allocations. These historical loss percentages are calculated over a three year period for all portfolio segments. Certain economic factors are also considered for trends which management uses to establish the directionality of changes to the unallocated portion of the reserve. The following economic factors are analyzed:

• Changes in lending policies and procedures

• Changes in experience and depth of lending and management staff

• Changes in quality of Citizens’ credit review system

• Changes in the nature and volume of the loan portfolio

• Changes in past due, classified and nonaccrual loans and TDRs

• Changes in economic and business conditions

• Changes in competition or legal and regulatory requirements

• Changes in concentrations within the loan portfolio

• Changes in the underlying collateral for collateral dependent loans

The total allowance reflects management’s estimate of loan losses inherent in the loan portfolio at the consolidated balance sheet date. The Company considers the allowance for loan losses of $14,268 adequate to cover loan losses inherent in the loan portfolio, at December 31, 2014. The following tables present by portfolio segment, the changes in the allowance for loan losses, the ending allocation of the allowance for loan losses and the loan balances outstanding for the period ended December 31, 2014 and December 31, 2013. The changes can be impacted by overall loan volume, adversely graded loans, historical charge-offs and economic factors.

(Continued)

44

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 4—ALLOWANCE FOR LOAN LOSSES (Continued)

	Commercial & Agriculture			Commercial Real Estate— Owner Occupied			Commercial Real Estate— Non-Owner Occupied			Residential Real Estate			Real Estate Construction		Consumer and Other			Unallocated		Total
December 31, 2014
Allowance for loan losses:
Beginning balance	$	2,841		$	3,263		$	4,296		$	5,224		$	184	$	214		$	506	$	16,528
Charge-offs		(338	)		(1,661	)		(198	)		(2,449	)		—		(135	)		—		(4,781	)
Recoveries		249			363			50			292			6		61			—		1,021
Provision		(930	)		615			650			680			238		56			191		1,500
Ending Balance	$	1,822		$	2,580		$	4,798		$	3,747		$	428	$	196		$	697	$	14,268

For the year ended December 31, 2014, the allowance for Commercial and Agriculture loans was reduced not only by charge-offs, but also due to a decrease in both the loan balances outstanding and the specific reserve required for this type, which was driven by a decrease in the volume of impaired loans and classified loans. The net result of these changes was represented as a decrease in the provision. The decrease in the allowance for Commercial Real Estate—Owner Occupied loans was the result of eleven charge-offs, but also due to a decrease in loan balances outstanding and a decline in nonaccrual loans. The result of these changes was represented as a decrease in the allowance. The increase in the allowance for Commercial Real Estate—Non-Owner Occupied loans was the result of increasing loan balances and increased past-due balances. The allowance for Real Estate Construction loans increased as a result of a significant increase in loan balances. The ending reserve balance for Residential Real Estate loans declined from the end of the previous year due to charge-offs of loans that had a specific reserve previously applied. Additionally, a single relationship resulted in losses of $1,436 related to protecting the Company’s collateral. The net result of the changes was represented as a decrease in the allowance. The allowance for Consumer and Other loans decreased slightly during the year. While loan balances are up, loss rates continue to decrease resulting in the allowance being slightly lower. While we have seen improvement in asset quality, given the uncertainty in the economy, management determined that it was appropriate to maintain unallocated reserves at a slightly higher level at this time.

(Continued)

45

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 4—ALLOWANCE FOR LOAN LOSSES (Continued)

	Commercial & Agriculture			Commercial Real Estate— Owner Occupied			Commercial Real Estate— Non-Owner Occupied			Residential Real Estate			Real Estate Construction			Consumer and Other			Unallocated		Total
December 31, 2013
Allowance for loan losses:
Beginning balance	$	2,811		$	4,836		$	5,303		$	5,780		$	349		$	246		$	417	$	19,742
Charge-offs		(483	)		(989	)		(815	)		(2,907	)		(136	)		(220	)		—		(5,550	)
Recoveries		141			265			184			458			108			80			—		1,236
Provision		372			(849	)		(376	)		1,893			(137	)		108			89		1,100
Ending Balance	$	2,841		$	3,263		$	4,296		$	5,224		$	184		$	214		$	506	$	16,528

For the year ended December 31, 2013, the allowance for Commercial Real Estate loans was reduced not only by charge-offs, but also due to the specific reserve required for impaired loans within this segment. The net result of these changes was represented as a decrease in the provision. The allowance for Real Estate Construction loans was reduced as a result of changes to specific reserves required for impaired loans and a reduction in the historical charge-offs for this segment. The result of these changes was represented as a decrease in the provision. The ending reserve balance for Residential Real Estate loans declined from the end of the previous year due to charge-offs during the period. Since these charged-off loans already had specific reserves assigned to them, we no longer need to carry as large a reserve for this segment. While we have seen improvement in asset quality, given the uncertainty in the economy, management determined that it was appropriate to maintain unallocated reserves at a higher level at this time.

(Continued)

46

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 4—ALLOWANCE FOR LOAN LOSSES (Continued)

	Commercial & Agriculture		Commercial Real Estate— Owner Occupied		Commercial Real Estate— Non-Owner Occupied		Residential Real Estate		Real Estate Construction		Consumer and Other		Unallocated		Total
December 31, 2014
Allowance for loan losses:
Ending balance:
Individually evaluated for impairment	$	641	$	57	$	20	$	305	$	—	$	—	$	—	$	1,023
Ending balance:
Collectively evaluated for impairment	$	1,181	$	2,523	$	4,778	$	3,442	$	428	$	196	$	697	$	13,245
Ending balance	$	1,822	$	2,580	$	4,798	$	3,747	$	428	$	196	$	697	$	14,268
Loan balances outstanding:
Ending balance:
Individually evaluated for impairment	$	2,304	$	3,557	$	2,175	$	3,108	$	—	$	5			$	11,149
Ending balance:
Collectively evaluated for impairment	$	111,882	$	139,457	$	306,491	$	265,402	$	65,452	$	15,024			$	903,708
Ending balance	$	114,186	$	143,014	$	308,666	$	268,510	$	65,452	$	15,029			$	914,857

(Continued)

47

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 4—ALLOWANCE FOR LOAN LOSSES (Continued)

	Commercial & Agriculture		Commercial Real Estate— Owner Occupied		Commercial Real Estate— Non-Owner Occupied		Residential Real Estate		Real Estate Construction		Consumer and Other		Unallocated		Total
December 31, 2013
Allowance for loan losses:
Ending balance:
Individually evaluated for impairment	$	1,262	$	390	$	55	$	802	$	—	$	—	$	—	$	2,509
Ending balance:
Collectively evaluated for impairment	$	1,579	$	2,873	$	4,241	$	4,422	$	184	$	214	$	506	$	14,019
Ending balance	$	2,841	$	3,263	$	4,296	$	5,224	$	184	$	214	$	506	$	16,528
Loan balances outstanding:
Ending balance:
Individually evaluated for impairment	$	3,869	$	6,792	$	3,383	$	4,005	$	—	$	8			$	18,057
Ending balance:
Collectively evaluated for impairment	$	112,006	$	154,222	$	279,449	$	246,686	$	39,964	$	10,857			$	843,184
Ending balance	$	115,875	$	161,014	$	282,832	$	250,691	$	39,964	$	10,865			$	861,241

(Continued)

48

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 4—ALLOWANCE FOR LOAN LOSSES (Continued)

The following table represents credit exposures by internally assigned risk ratings for the periods ended December 31, 2014 and 2013. The remaining loans in Residential Real Estate, Real Estate Construction and Consumer and Other loans that are not assigned a risk grade are presented in a separate table below. The risk rating analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled or at all. The Company’s internal credit risk rating system is based on experiences with similarly graded loans.

The Company’s internally assigned grades are as follows:

• Pass – loans which are protected by the current net worth and paying capacity of the obligor or by the value of the underlying collateral.

• Special Mention – loans where a potential weakness or risk exists, which could cause a more serious problem if not corrected.

• Substandard – loans that have a well-defined weakness based on objective evidence and are characterized by the distinct possibility that Citizens will sustain some loss if the deficiencies are not corrected.

• Doubtful – loans classified as doubtful have all the weaknesses inherent in a substandard asset. In addition, these weaknesses make collection or liquidation in full highly questionable and improbable, based on existing circumstances.

• Loss – loans classified as a loss are considered uncollectible, or of such value that continuance as an asset is not warranted.

• Unrated – Generally, consumer loans are not risk-graded, except when collateral is used for a business purpose.

(Continued)

49

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 4—ALLOWANCE FOR LOAN LOSSES (Continued)

December 31, 2014	Commercial & Agriculture		Commercial Real Estate— Owner Occupied		Commercial Real Estate— Non-Owner Occupied		Residential Real Estate		Real Estate Construction		Consumer and Other		Total
Pass	$	107,903	$	128,222	$	298,237	$	100,810	$	59,584	$	5,651	$	700,407
Special Mention		3,446		5,492		6,305		697		19		—		15,959
Substandard		2,837		9,300		4,124		8,834		41		46		25,182
Doubtful		—		—		—		—		—		—		—
Ending Balance	$	114,186	$	143,014	$	308,666	$	110,341	$	59,644	$	5,697	$	741,548

December 31, 2013	Commercial & Agriculture		Commercial Real Estate— Owner Occupied		Commercial Real Estate— Non-Owner Occupied		Residential Real Estate		Real Estate Construction		Consumer and Other		Total
Pass	$	107,923	$	143,531	$	272,407	$	98,700	$	35,495	$	2,252	$	660,308
Special Mention		2,038		4,334		4,811		986		21		—		12,190
Substandard		5,914		13,149		5,614		8,175		—		70		32,922
Doubtful		—		—		—		2,349		—		—		2,349
Ending Balance	$	115,875	$	161,014	$	282,832	$	110,210	$	35,516	$	2,322	$	707,769

(Continued)

50

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 4—ALLOWANCE FOR LOAN LOSSES (Continued)

The following tables present performing and nonperforming loans based solely on payment activity for the periods ended December 31, 2014 and December 31, 2013 that have not been assigned an internal risk grade. The types of loans presented here are not assigned a risk grade unless there is evidence of a problem. Payment activity is reviewed by management on a monthly basis to evaluate performance. Loans are considered to be nonperforming when they become 90 days past due or if management thinks that we may not collect all of our principal and interest. Nonperforming loans also include certain loans that have been modified in Troubled Debt Restructurings (TDRs) where economic concessions have been granted to borrowers who have experienced or are expected to experience financial difficulties. These concessions typically result from the Company’s loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions due to economic status. Certain TDRs are classified as nonperforming at the time of restructure and may only be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months.

	Residential Real Estate		Real Estate Construction		Consumer and Other		Total
December 31, 2014
Performing	$	158,169	$	5,808	$	9,332	$	173,309
Nonperforming		—		—		—		—
Total	$	158,169	$	5,808	$	9,332	$	173,309

	Residential Real Estate		Real Estate Construction		Consumer and Other		Total
December 31, 2013
Performing	$	140,481	$	4,448	$	8,543	$	153,472
Nonperforming		—		—		—		—
Total	$	140,481	$	4,448	$	8,543	$	153,472

(Continued)

51

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 4—ALLOWANCE FOR LOAN LOSSES (Continued)

Following tables include an aging analysis of the recorded investment of past due loans outstanding as of December 31, 2014 and 2013.

December 31, 2014	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater		Total Past Due		Current		Total Loans		Past Due 90 Days and Accruing
Commercial & Agriculture	$	58	$	—	$	187	$	245	$	113,941	$	114,186	$	—
Commercial Real Estate—Owner Occupied		622		251		657		1,530		141,484		143,014		—
Commercial Real Estate—Non-Owner Occupied		521		5		2,103		2,629		306,037		308,666		—
Residential Real Estate		1,923		721		2,347		4,991		263,519		268,510		—
Real Estate Construction		33		—		8		41		65,411		65,452		—
Consumer and Other		131		8		19		158		14,871		15,029		—
Total	$	3,288	$	985	$	5,321	$	9,594	$	905,263	$	914,857	$	—

December 31, 2013	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater		Total Past Due		Current		Total Loans		Past Due 90 Days and Accruing
Commercial & Agriculture	$	105	$	—	$	443	$	548	$	115,327	$	115,875	$	—
Commercial Real Estate—Owner Occupied		253		188		1,643		2,084		158,930		161,014		—
Commercial Real Estate—Non-Owner Occupied		208		13		455		676		282,156		282,832		—
Residential Real Estate		3,140		1,084		5,531		9,755		240,936		250,691		—
Real Estate Construction		—		—		—		—		39,964		39,964		—
Consumer and Other		170		20		—		190		10,675		10,865		—
Total	$	3,876	$	1,305	$	8,072	$	13,253	$	847,988	$	861,241	$	—

(Continued)

52

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 4—ALLOWANCE FOR LOAN LOSSES (Continued)

The following table presents loans on nonaccrual status as of December 31, 2014 and 2013.

	2014		2013
Commercial & Agriculture	$	1,264	$	1,590
Commercial Real Estate—Owner Occupied		3,403		6,360
Commercial Real Estate—Non-Owner Occupied		2,134		3,249
Residential Real Estate		6,674		9,210
Real Estate Construction		41		—
Consumer and Other		42		50
Total	$	13,558	$	20,459

Nonaccrual Loans: Loans are considered for nonaccrual status upon reaching 90 days delinquency, unless the loan is well secured and in the process of collection, although the Company may be receiving partial payments of interest and partial repayments of principal on such loans. When a loan is placed on nonaccrual status, previously accrued but unpaid interest is deducted from interest income. A loan may be returned to accruing status only if one of three conditions are met: the loan is well-secured and none of the principal and interest has been past due for a minimum of 90 days; the loan is a TDR and has made a minimum of six months payments; or the principal and interest payments are reasonably assured and a sustained period of performance has occurred, generally six months.

Modifications: A modification of a loan constitutes a troubled debt restructuring (“TDR”) when the Company for economic or legal reasons related to a borrower’s financial difficulties grants a concession to the borrower that it would not otherwise consider. The Company offers various types of concessions when modifying a loan, however, forgiveness of principal is rarely granted. Commercial Real Estate loans modified in a TDR often involve reducing the interest rate lower than the current market rate for new debt with similar risk. Real Estate loans modified in a TDR were primarily comprised of interest rate reductions where monthly payments were lowered to accommodate the borrowers’ financial needs.

Loans modified in a TDR are typically already on non-accrual status and partial charge-offs have in some cases already been taken against the outstanding loan balance. As a result, loans modified in a TDR may have the financial effect of increasing the specific allowance associated with the loan. An allowance for impaired loans that have been modified in a TDR are measured based on the present value of expected future cash flows

(Continued)

53

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 4—ALLOWANCE FOR LOAN LOSSES (Continued)

discounted at the loan’s effective interest rate or the estimated fair value of the collateral, less any selling costs, if the loan is collateral dependent. Management exercises significant judgment in developing these estimates. As of December 31, 2014, TDRs accounted for $895 of the allowance for loan losses.

Loan modifications that are considered TDRs completed during the twelve month periods ended December 31, 2014 and December 31, 2013 were as follows:

	For the Twelve Month Period Ended December 31, 2014						For the Twelve Month Period Ended December 31, 2013
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial & Agriculture		—	$	—	$	—		—	$	—	$	—
Commercial Real Estate—Owner Occupied		—		—		—		2		547		547
Commercial Real Estate—Non-Owner Occupied		—		—		—		—		—		—
Residential Real Estate		9		619		554		—		—		—
Real Estate Construction		1		35		35		—		—		—
Consumer and Other		—		—		—		—		—		—
Total Loan Modifications		10	$	654	$	589		2	$	547	$	547

Recidivism, or the borrower defaulting on its obligation pursuant to a modified loan, results in the loan once again becoming a non-accrual loan. Recidivism occurs at a notably higher rate than do defaults on new originations loans, so modified loans present a higher risk of loss than do new origination loans. During both the twelve month period ended December 31, 2014 and December 31, 2013, there were no defaults on loans that were modified and considered TDRs during the respective twelve previous months.

(Continued)

54

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 4—ALLOWANCE FOR LOAN LOSSES (Continued)

Impaired Loans: Larger (greater than $500) commercial loans and commercial real estate loans, all TDRs and residential real estate and consumer loans that are part of a larger relationship are tested for impairment. These loans are analyzed to determine if it is probable that all amounts will not be collected according to the contractual terms of the loan agreement. If management determines that the value of the impaired loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized through an allowance estimate or a charge-off to the allowance.

(Continued)

55

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 4—ALLOWANCE FOR LOAN LOSSES (Continued)

The following tables include the recorded investment and unpaid principal balances for impaired financing receivables with the associated allowance amount, if applicable as of December 31, 2014 and 2013.

	December 31, 2014						December 31, 2013
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded:
Commercial & Agriculture	$	1,377	$	1,504			$	1,525	$	1,657
Commercial Real Estate—Owner Occupied		2,961		3,327				2,891		3,027
Commercial Real Estate—Non-Owner Occupied		92		140				3,092		3,187
Residential Real Estate		1,893		3,487				1,202		2,263
Consumer and Other		5		5				8		8
Total		6,328		8,463				8,718		10,142
With an allowance recorded:
Commercial & Agriculture		927		1,056	$	641		2,344		2,437	$	1,262
Commercial Real Estate—Owner Occupied		596		643		57		3,901		4,201		390
Commercial Real Estate—Non-Owner Occupied		2,083		2,287		20		291		295		55
Residential Real Estate		1,215		1,223		305		2,803		4,021		802
Total		4,821		5,209		1,023		9,339		10,954		2,509
Total:
Commercial & Agriculture		2,304		2,560		641		3,869		4,094		1,262
Commercial Real Estate—Owner Occupied		3,557		3,970		57		6,792		7,228		390
Commercial Real Estate—Non-Owner Occupied		2,175		2,427		20		3,383		3,482		55
Residential Real Estate		3,108		4,710		305		4,005		6,284		802
Consumer and Other		5		5		—		8		8		—
Total	$	11,149	$	13,672	$	1,023	$	18,057	$	21,096	$	2,509

(Continued)

56

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 4—ALLOWANCE FOR LOAN LOSSES (Continued)

For the year ended:	December 31, 2014				December 31, 2013
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial & Agriculture	$	3,316	$	104	$	4,761	$	186
Commercial Real Estate—Owner Occupied		5,720		219		6,064		436
Commercial Real Estate—Non-Owner Occupied		2,767		40		5,855		85
Residential Real Estate		3,510		207		5,038		282
Real Estate Construction		—		—		302		—
Consumer and Other		6		—		31		—
Total	$	15,319	$	570	$	22,051	$	989

(Continued)

57

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 5—OTHER COMPREHENSIVE INCOME

The following table presents the changes in each component of accumulated other comprehensive loss, net of tax, as of December 31, 2014 and December 31, 2013.

	For the Year Ended December 31, 2014									For the Year Ended December 31, 2013
	Unrealized Gains and Losses on Available for Sale Securities			Defined Benefit Pension Items			Total			Unrealized Gains and Losses on Available for Sale Securities			Defined Benefit Pension Items			Total
Beginning balance	$	341		$	(4,588	)	$	(4,247	)	$	5,849		$	(7,496	)	$	(1,647	)
Other comprehensive income (loss) before reclassifications		3,464			591			4,055			(5,373	)		—			(5,373	)
Amounts reclassified from accumulated other comprehensive loss		(75	)		220			145			(135	)		2,908			2,773
Net current-period other comprehensive income (loss)		3,389			811			4,200			(5,508	)		2,908			(2,600	)
Ending balance	$	3,730		$	(3,777	)	$	(47	)	$	341		$	(4,588	)	$	(4,247	)

Amounts in parentheses indicate increases in shareholders’ equity.

(Continued)

58

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 5—OTHER COMPREHENSIVE INCOME (Continued)

The following table presents the amounts reclassified out of each component of accumulated other comprehensive loss as of December 31, 2014 and December 31, 2013:

	Amount Reclassified from Accumulated Other Comprehensive Loss (a)
Details about Accumulated Other Comprehensive Loss Components	For the year ended December 31, 2014			For the year ended December 31, 2013			Affected Line Item in the Statement Where Net Income is Presented
Unrealized gains on available-for-sale securities	$	113		$	204		Net gain on sale of securities
Tax effect		(38	)		(69	)	Income taxes
		75			135		Net of tax
Amortization of defined benefit pension items
Actuarial losses		(334	)(b)		(4,406	)(b)	Salaries, wages and benefits
Tax effect		114			1,498		Income taxes
		(220	)		(2,908	)	Net of tax
Total reclassifications for the period	$	(145	)	$	(2,773	)	Net of tax

(a) Amounts in parentheses indicate expenses and other amounts indicate income.

(b) These accumulated other comprehensive income components are included in the computation of net periodic pension cost.

NOTE 6—PREMISES AND EQUIPMENT

Year-end premises and equipment were as follows.

	2014			2013
Land and improvements	$	3,770		$	4,083
Buildings and improvements		17,373			19,681
Furniture and equipment		13,942			16,751
Total		35,085			40,515
Accumulated depreciation		(20,685	)		(24,202	)
Premises and equipment, net	$	14,400		$	16,313

Depreciation expense was $1,176 and $1,334 for 2014 and 2013, respectively.

(Continued)

59

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 6—PREMISES AND EQUIPMENT (Continued)

Rent expense was $377 and $367 for 2014 and 2013, respectively. Rent commitments under non-cancelable operating leases at December 31, 2014 were as follows, before considering renewal options that generally are present.

2015	$	335
2016		273
2017		256
2018		117
2019		88
Thereafter		—
Total	$	1,069

The rent commitments listed above are primarily for the leasing of five financial services branches.

NOTE 7—GOODWILL AND INTANGIBLE ASSETS

There has been no change in the carrying amount of goodwill of $21,720 for the years ended December 31, 2014 and December 31, 2013.

Management performs an annual evaluation of goodwill for impairment, or more frequently if events or changes in circumstances indicate that the asset might be impaired. Management performed an evaluation of the Company’s goodwill during the fourth quarter of 2014. In performing its evaluation, management obtained several commonly used financial ratios from pending and completed purchase transactions for banks based in the Midwest. Management used these ratios to determine an implied market value for the Company. The implied market value was then used to determine whether or not additional testing was required. Based on this test, management concluded that the Company’s goodwill was not impaired at December 31, 2014.

Acquired Intangible Assets
Acquired intangible assets were as follows as of year end.
	2014				2013
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Core deposit and other intangibles	$	6,688	$	5,165	$	11,619	$	9,326

Aggregate amortization expense was $769 and $846 for 2014 and 2013.

(Continued)

60

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 7—GOODWILL AND INTANGIBLE ASSETS (Continued)

Estimated amortization expense for each of the next three years and thereafter is as follows.

2015	$	554
2016		522
2017		447
Thereafter		—
	$	1,523

NOTE 8—INTEREST-BEARING DEPOSITS

Interest-bearing deposits as of December 31, 2014 and 2013 were as follows.

	2014		2013
Demand	$	179,388	$	168,113
Statement and Passbook Savings		318,859		303,037
Certificates of Deposit:
In excess of $100		53,669		66,561
Other		139,531		139,586
Individual Retirement Accounts		26,770		30,202
Total	$	718,217	$	707,499

Scheduled maturities of certificates of deposit, including IRA’s at December 31, 2014 were as follows.

2015	$	115,336
2016		52,031
2017		31,715
2018		4,814
2019		10,750
Thereafter		5,324
Total	$	219,970

Deposits from principal officers, directors, and their affiliates at year-end 2014 and 2013 were $6,882 and $8,606, respectively.

As of December 31, 20014, CDs and IRAs totaling $19,624 met or exceeded the FDIC’s insurance limit.

(Continued)

61

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 9 – SHORT-TERM BORROWINGS

Short-term borrowings, which consist of federal funds purchased and other short-term borrowings are summarized as follows:

	At December 31, 2014
	Federal Funds Purchased			Short-term Borrowings
Outstanding balance at year end	$	—		$	42,700
Maximum indebtedness during the year		—			42,700
Average balance during the year		41			1,951
Average rate paid during the year		0.54	%		0.19	%
Interest rate on year end balance		—			0.14	%

	At December 31, 2013
	Federal Funds Purchased			Short-term Borrowings
Outstanding balance at year end	$	—		$	—
Maximum indebtedness during the year		10,000			—
Average balance during the year		28			—
Average rate paid during the year		0.53	%		—
Interest rate on year end balance		—			—

Outstanding during the year represent daily averages. Average interest rates represent interest expense divided by the related average balances.

These borrowing transactions can range from overnight to six months in maturity. The average maturity was one day at December 31, 2014. There were no outstanding short-term borrowings at December 31, 2013.

(Continued)

62

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 10—FEDERAL HOME LOAN BANK ADVANCES

Long term advances from the FHLB were $22,500 at December 31, 2014 and $37,726 at December 31, 2013. Outstanding balances have maturity dates ranging March 2015 to October 2019 and fixed rates ranging from 1.50% to 4.25%. The average rate on outstanding advances was 2.24%.

Scheduled principal reductions of FHLB advances at December 31, 2014 were as follows.

2015	$	5,000
2017		2,500
2018		10,000
2019		5,000
Total	$	22,500

In addition to the borrowings, the Company has outstanding letters of credit with the FHLB totaling $22,700 at year-end 2014 and $23,300 at year-end 2013 used for pledging to secure public funds. FHLB borrowings and the letters of credit are collateralized by FHLB stock and by $131,850 and $91,540 of residential mortgage loans under a blanket lien arrangement at year-end 2014 and 2013, respectively.

The Company had a FHLB maximum borrowing capacity of $124,741 as of December 31, 2014, with remaining borrowing capacity of approximately $36,841. The borrowing arrangement with the FHLB is subject to annual renewal. The maximum borrowing capacity is recalculated at least quarterly.

NOTE 11—SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

Information concerning securities sold under agreements to repurchase was as follows.

	2014			2013
Outstanding balance at year end	$	21,613		$	20,053
Average balance during the year		19,759			20,749
Average interest rate during the year		0.10	%		0.10	%
Maximum month-end balance during the year	$	33,764		$	24,257
Weighted average interest rate at year end		0.10	%		0.10	%

Securities underlying repurchase agreements had a fair value of $21,613 at December 31, 2014 and $20,053 at December 31, 2013.

(Continued)

63

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 12—SUBORDINATED DEBENTURES

Trusts formed by the Company issued floating rate trust preferred securities, in the amounts of $5,000 and $7,500, through special purpose entities as part of pooled offerings of such securities. The Company issued subordinated debentures to the trusts in exchange for the proceeds of the offerings, which debentures represent the sole assets of the trusts. The Company may redeem the subordinated debentures, in whole but not in part, at face value. In April 2007, the Company elected to redeem and refinance the $5,000 floating rate subordinated debenture. The refinancing was done at face value and resulted in a 2.00% reduction in the rate. The new subordinated debenture has a 30 year maturity and is redeemable, in whole or in part, anytime without penalty. The replacement subordinated debenture does not have any deferred issuance cost associated with it. The interest rate at December 31, 2014 on the $7,500 debenture is 3.39% and the $5,000 debenture is 1.83%.

Additionally, the Company formed an additional trust that issued $12,500 of 6.05% fixed rate trust preferred securities for five years, then becoming floating rate trust preferred securities, through a special purpose entity as part of a pooled offering of such securities. The Company issued subordinated debentures to the trusts in exchange for the proceeds of the offerings, which debentures represent the sole assets of the trusts. The Company may redeem the subordinated debentures at face value without penalty. The current rate on the $12,500 subordinated debenture is 2.48%.

Finally, the Company acquired two additional trust preferred securities as part of its acquisition of Futura Banc Corp (Futura) in December 2007. Futura TPF Trust I and Futura TPF Trust II were formed in June of 2005 in the amounts of $2,500 and $1,927, respectively. Futura had issued subordinated debentures to the trusts in exchange for ownership of all of the common security of the trusts and the proceeds of the preferred securities sold by the trusts. The Company may redeem the subordinated debentures, in whole or in part, in a principal amount with integral multiples of $1,000, on or after June 15, 2010 at 100% of the principal amount, plus accrued and unpaid interest. The subordinated debentures mature on June 15, 2035. The subordinated debentures are also redeemable in whole or in part from time to time, upon the occurrence of specific events defined within the trust indenture. The current rate on the $2,500 subordinated debenture is variable at 1.89%. In June 2010, the rate on the $1,927 subordinated debenture switched from a fixed rate to a floating rate. The current rate on the $1,927 subordinated debenture is 1.89%.

NOTE 13—INCOME TAXES

Income taxes were as follows.

	2014		2013
Current	$	3,151	$	11
Deferred		11		1,362
Income taxes	$	3,162	$	1,373

(Continued)

64

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 13—INCOME TAXES (Continued)

Effective tax rates differ from the statutory federal income tax rate of 34% due to the following.

	2014			2013
Income taxes computed at the statutory federal tax rate	$	4,315		$	2,568
Add (subtract) tax effect of:
Nontaxable interest income, net of nondeductible interest expense		(824	)		(781	)
Low income housing tax credit		(303	)		(280	)
Cash surrender value of BOLI		(167	)		(189	)
Other		141			55
Income tax expense	$	3,162		$	1,373

There were no tax benefits attributable to security losses in 2014 and 2013.

Year-end deferred tax assets and liabilities were due to the following.

	2014			2013
Deferred tax assets
Allowance for loan losses	$	4,851		$	5,620
Deferred compensation		1,386			1,223
Intangible assets		—			50
Pension costs		198			996
Impairment losses		—			146
Other		122			133
Deferred tax asset		6,557			8,168
Deferred tax liabilities
Tax depreciation in excess of book depreciation		(351	)		(466	)
Discount accretion on securities		(63	)		(77	)
Purchase accounting adjustments		(1,189	)		(1,465	)
FHLB stock dividends		(1,687	)		(2,249	)
Unrealized gain on securities available for sale		(1,922	)		(176	)
Other		(196	)		(174	)
Deferred tax liability		(5,408	)		(4,607	)
Net deferred tax asset	$	1,149		$	3,561

The Company and its subsidiaries are subject to U.S. federal income tax as well as income tax of the State of Ohio for all affiliates other than Citizens. Citizens is subject to tax in Ohio based upon its net worth.

There is currently no liability for uncertain tax positions and no known unrecognized tax benefits. The Company’s federal tax returns for taxable years through 2010 have been closed for purposes of examination by the Internal Revenue Service.

(Continued)

65

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 14—RETIREMENT PLANS

The Company sponsors a savings and retirement 401(k) plan, which covers all employees who meet certain eligibility requirements and who choose to participate in the plan. The matching contribution to the 401(k) plan was $394 in 2014 and $204 in 2013. In conjunction with freezing the pension plan, the Company changed the matching contribution calculation from twenty-five percent of the first six percent of an employee’s contribution to 100% of an employee’s first three percent contributed and 50% of the next two percent contributed. This change took place on July 1, 2014.

The Company also sponsors a pension plan which is a noncontributory defined benefit retirement plan for all employees who have attained the age of 20 ¹⁄₂, completed six months of service and work 1,000 or more hours per year. Annual payments, subject to the maximum amount deductible for federal income tax purposes, are made to a pension trust fund. In 2006, the Company amended the pension plan to provide that no employee could be added as a participant to the pension plan after December 31, 2006. In April 2014, the Company amended the pension plan again to provide that no additional benefits would accrue beyond April 30, 2014. This curtailment resulted in a reduction to the projected benefit obligation of $4,039. Also, the curtailment resulted in an increase in accumulated other comprehensive loss of $2,666.

Information about the pension plan is as follows.

	2014			2013
Change in benefit obligation:
Beginning benefit obligation	$	18,456		$	21,604
Service cost		306			1,204
Interest cost		639			884
Curtailment gain		(4,039	)		—
Settlement loss		55			821
Actuarial (gain)/loss		3,007			(1,272	)
Benefits paid		(1,471	)		(4,785	)
Ending benefit obligation		16,953			18,456
Change in plan assets, at fair value:
Beginning plan assets		15,466			13,441
Actual return		703			1,943
Employer contribution		1,515			4,900
Benefits paid		(1,471	)		(4,785	)
Administrative expenses		(29	)		(33	)
Ending plan assets		16,184			15,466
Funded status at end of year	$	(769	)	$	(2,990	)

(Continued)

66

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 14—RETIREMENT PLANS (Continued)

Amounts recognized in accumulated other comprehensive income at December 31, consist of unrecognized actuarial loss of $3,777, net of $1,946 tax in 2014 and $4,588, net of $2,364 tax in 2013.

The accumulated benefit obligation for the defined benefit pension plan was $16,953 at December 31, 2014 and $14,537 at December 31, 2013.

The components of net periodic pension expense were as follows.

	2014			2013
Service cost	$	306		$	1,204
Interest cost		639			884
Expected return on plan assets		(1,021	)		(965	)
Net amortization and deferral		334			698
Net periodic benefit cost	$	258		$	1,821
Net loss (gain) recognized in other comprehensive income		(1,228	)		(4,406	)
Total recognized in net periodic benefit cost and other comprehensive income (before tax)	$	(970	)	$	(2,585	)

The estimated net loss and prior service costs for the defined benefit pension plan that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year is $265.

The weighted average assumptions used to determine benefit obligations at year-end were as follows.

	2014			2013
Discount rate on benefit obligation		3.69	%		4.38	%
Long-term rate of return on plan assets		7.00	%		7.00	%
Rate of compensation increase		0.00	%		3.00	%

The weighted average assumptions used to determine net periodic pension cost were as follows.

	2014			2013
Discount rate on benefit obligation		4.38	%		3.72	%
Long-term rate of return on plan assets		7.00	%		7.00	%
Rate of compensation increase		3.00	%		3.00	%

The Company uses long-term market rates to determine the discount rate on the benefit obligation. Declines in the discount rate lead to increases in the actuarial loss related to the benefit obligation.

(Continued)

67

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 14—RETIREMENT PLANS (Continued)

The expectation for long-term rate of return on the pension assets and the expected rate of compensation increases are reviewed periodically by management in consultation with outside actuaries and primary investment consultants. Factors considered in setting and adjusting these rates are historic and projected rates of return on the portfolio and historic and estimated rates of increases of compensation. Since the pension plan is frozen, the rate of compensation increase used to determine the benefit obligation for 2014 was zero.

The Company’s pension plan asset allocation at year-end 2013 and 2014 and target allocation for 2015 by asset category are as follows.

	Target Allocation			Percentage of Plan Assets at Year- end
Asset Category	2015			2014			2013
Equity securities		20-50	%		46.7	%		46.5	%
Debt securities		30-60			48.3			53.0
Money market funds		20-30			5.0			0.5
Total					100.0	%		100.0	%

The Company developed the pension plan investment policies and strategies for plan assets with its pension management firm. The assets are currently invested in five diversified investment funds, which include three equity funds, one money market fund and one bond fund. The long-term guidelines from above were created to maximize the return on portfolio assets while reducing the risk of the portfolio. The management firm may allocate assets among the separate accounts within the established long-term guidelines. Transfers among these accounts will be at the management firm’s discretion based on their investment outlook and the investment strategies that are outlined at periodic meetings with the Company. The expected long-term rate of return on the plan assets was 7.00% in 2014 and 2013. This return is based on the expected return for each of the asset categories, weighted based on the target allocation for each class.

Since the plan is frozen, the Company does not expect to make a contribution to its pension plan in 2015. Employer contributions totaled $1,515 in 2014. The decrease in the benefit obligation, contributions and the increase in plan assets led to a change in funded status from $(2,990) to $(769).

(Continued)

68

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 14—RETIREMENT PLANS (Continued)

The following tables set forth by level, within the fair value hierarchy, the Pension Plan’s assets at fair value as of December 31, 2014 and 2013:

	December 31, 2014
	Level 1		Level 2		Level 3		Total
Assets:
Cash	$	3	$	—	$	—	$	3
Money market funds		91		—		—		91
Bond mutual funds		23		—		—		23
Common/collective trust:
Bonds		7,802		—		—		7,802
Equities		6,383		—		—		6,383
Equity market funds:
Commodity mutual funds		19		—		—		19
International		342		—		—		342
Large cap		1,150		—		—		1,150
Mid cap		253		—		—		253
Small cap		118		—		—		118
Total assets at fair value	$	16,184	$	—	$	—	$	16,184

	December 31, 2013
	Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	79	$	—	$	—	$	79
Bond mutual funds		48		—		—		48
Common/collective trust:
Bonds		8,140		—		—		8,140
Equities		5,439		—		—		5,439
Equity market funds:
Commodity mutual funds		21		—		—		21
International		337		—		—		337
Large cap		1,093		—		—		1,093
Mid cap		181		—		—		181
Small cap		128		—		—		128
Total assets at fair value	$	15,466	$	—	$	—	$	15,466

Investment in equity securities, debt securities, and money market funds are valued at the closing price reported on the active market on which the individual securities are traded.

(Continued)

69

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 14—RETIREMENT PLANS (Continued)

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Pension Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

Expected benefit payments, which reflect expected future service, are as follows.

2015	$	234
2016		297
2017		457
2018		481
2019		581
2020 through 2024		3,843
Total	$	5,893

Supplemental Retirement Plan

Citizens established a supplemental retirement plan (“SERP”) in 2013, which covers key members of management. Participants will receive annually a percentage of their base compensations at the time of their retirement for a maximum of ten years. The SERP liability recorded at December 31, 2014, was $1,498, compared to $1,111 at December 31, 2013. The expense related to the SERP was $398 for 2014 and $412 for 2013. Distributions to participants made in 2014 totaled $11. No SERP distributions to participants were made in 2013.

NOTE 15—STOCK OPTIONS

Options to buy stock were previously granted to directors, officers and employees under the Company’s stock option plan, which was approved by shareholders on April 18, 2000 and authorized the Company to issue up to 225,000 options. The exercise price of the stock options was the market price at date of grant. The maximum option term was ten years, and options vested after three years. The Company’s 2000 stock option plan expired in 2010, and no further stock options may be granted under the plan. Additionally, all options outstanding under the 2000 plan expired on April 12, 2013.

At the Company’s annual meeting of shareholders held on April 15, 2014, the shareholders of the Company approved the First Citizens Banc Corp 2014 Incentive Plan (“2014 Incentive Plan” and together with the 2000 Stock Option Plan, the “Plans”). The 2014 Incentive Plan authorizes the Company to grant options, stock awards, stock units and other awards for up to 375,000 common shares of the Company. No options or awards have been granted under the 2014 Incentive Plan.

(Continued)

70

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 15—STOCK OPTIONS (Continued)

A summary of the activity in the stock option plan is as follows.

	2013
	Shares			Weighted Average Exercise Price
Outstanding at beginning of year		10,000		$	35.00
Granted		—			—
Exercised		—			—
Forfeited		—			—
Expired		(10,000	)		35.00
Outstanding at end of year	$	—		$	—
Options exercisable at year-end	$	—		$	—

The intrinsic value for stock options is calculated based on the exercise price of the underlying awards and the market price of the common stock as of the reporting date. As of December 31, 2014 and December 31, 2013, there were no options outstanding.

NOTE 16—FAIR VALUE MEASUREMENT

U.S. generally accepted accounting principles establish a hierarchal disclosure framework associated with the level of observable pricing utilized in measuring assets and liabilities at fair value. The three broad levels defined by the hierarchy are as follows: Level 1: Quoted prices for identical assets in active markets that are identifiable on the measurement date; Level 2: Significant other observable inputs, such as quoted prices for similar assets, quoted prices in markets that are not active and other inputs that are observable or can be corroborated by observable market data; Level 3: Significant unobservable inputs that reflect the Company’s own view about the assumptions that market participants would use in pricing an asset.

Securities: The fair values of securities available for sale are determined by matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs).

Equity securities: The Company’s equity securities are not actively traded in an open market. The fair values of these equity securities available for sale are determined by using market data inputs for similar securities that are observable. (Level 2 inputs).

(Continued)

71

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 16—FAIR VALUE MEASUREMENT (Continued)

Fair value swap asset/liability: The fair value of the swap asset and liability is based on an external derivative model using data inputs as of the valuation date and classified Level 2.

Impaired loans: The fair values of impaired loans are determined using the fair values of collateral for collateral dependent loans, or discounted cash flows. The Company uses independent appraisals, discounted cash flow models and other available data to estimate the fair value of collateral (Level 3 inputs).

Other real estate owned: The fair value of other real estate owned is determined using the fair value of collateral. The Company uses appraisals and other available data to estimate the fair value of collateral (Level 3 inputs). The appraised values are discounted to represent an estimated value in a distressed sale. Additionally, estimated costs to sell the property are used to further adjust the value.

Assets measured at fair value are summarized below.

Fair Value Measurements at December 31, 2014 Using:
	(Level 1)		(Level 2)		(Level 3)
Assets measured at fair value on a recurring basis:
U.S. Treasury securities and obligations of U.S. Government agencies	$	—	$	42,902	$	—
Obligations of states and political subdivisions		—		88,021		—
Mortgage-backed securities in government sponsored entities		—		66,442		—
Equity securities in financial institutions		—		540		—
Fair value swap asset		—		1,721		—
Fair value swap liability		—		1,721		—
Assets measured at fair value on a nonrecurring basis:
Impaired Loans	$	—	$	—	$	10,126
Other Real Estate Owned		—		—		560

(Continued)

72

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 16—FAIR VALUE MEASUREMENT (Continued)

Fair Value Measurements at December 31, 2013 Using:
	(Level 1)		(Level 2)		(Level 3)
Assets measured at fair value on a recurring basis:
U.S. Treasury securities and obligations of U.S. Government agencies	$	—	$	51,560	$	—
Obligations of states and political subdivisions		—		80,625		—
Mortgage-backed securities in government sponsored entities		—		66,979		—
Equity securities in financial institutions		—		449		—
Fair value of swap asset		—		286		—
Fair value of swap liability		—		286		—
Assets measured at fair value on a nonrecurring basis:
Impaired Loans	$	—	$	—	$	15,548
Other Real Estate Owned		—		—		173

The following tables presents quantitative information about the Level 3 significant unobservable inputs for assets and liabilities measured at fair value on a nonrecurring basis at December 31, 2014 and 2013.

	Quantitative Information about Level 3 Fair Value Measurements
December 31, 2014	Fair Value		Valuation Technique	Unobservable Input	Range
Impaired loans	$	10,126	Appraisal of collateral	Appraisal adjustments	10% -30%
				Liquidation expense	0% - 10%
				Holding period	0 -30 months
			Discounted cash flows	Discount rates	3.8% - 8.0%
Other real estate owned	$	560	Appraisal of collateral	Appraisal adjustments	10% - 30%
				Liquidation expense	0% - 10%

(Continued)

73

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 16—FAIR VALUE MEASUREMENT (Continued)

	Quantitative Information about Level 3 Fair Value Measurements
December 31, 2013	Fair Value		Valuation Technique	Unobservable Input	Range
Impaired loans	$	15,548	Appraisal of collateral	Appraisal adjustments	10% - 30%
				Liquidation expense	0% - 10%
				Holding period	0 - 30 months
			Discounted cash flows	Discount rates	2% - 8.5%
Other real estate owned	$	173	Appraisal of collateral	Appraisal adjustments	10% - 30%
				Liquidation expense	0% - 10%

(Continued)

74

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 16—FAIR VALUE MEASUREMENT (Continued)

The carrying amount and fair value of financial instruments were as follows.

December 31, 2014	Carrying Amount		Total Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from financial institutions	$	29,858	$	29,858	$	29,858	$	—	$	—
Securities available for sale		197,905		197,905		—		197,905		—
Loans, held for sale		2,410		2,410		2,410		—		—
Loans, net of allowance for loan losses		900,589		908,118		—		—		908,118
Other securities		12,586		12,586		12,586		—		—
Bank owned life insurance		19,637		19,637		19,637		—		—
Accrued interest receivable		3,852		3,852		3,852		—		—
Swap asset		1,721		1,721		—		1,721		—
Financial Liabilities:
Nonmaturing deposits		748,948		748,948		748,948		—		—
Time deposits		219,970		221,263		—		—		221,263
Federal Home Loan Bank advances		65,200		65,399		—		—		65,399
Securities sold under agreement to repurchase		21,613		21,613		21,613		—		—
Subordinated debentures		29,427		24,688		—		—		24,688
Accrued interest payable		126		126		126		—		—
Swap liability		1,721		1,721		—		1,721		—

(Continued)

75

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 16—FAIR VALUE MEASUREMENT (Continued)

December 31, 2013	Carrying Amount		Total Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from financial institutions	$	34,186	$	34,186	$	34,186	$	—	$	—
Securities available for sale		199,613		199,613		—		199,613		—
Loans, held for sale		438		438		438		—		—
Loans, net of allowance for loan losses		844,713		861,252		—		—		861,252
Other securities		15,424		15,424		15,424		—		—
Bank owned life insurance		19,145		19,145		19,145		—		—
Accrued interest receivable		3,881		3,881		3,881		—		—
Fair value swap asset		286		286		—		286		—
Financial Liabilities:
Nonmaturing deposits		706,126		706,126		706,126		—		—
Time deposits		236,349		237,837		—		—		237,837
Federal Home Loan Bank advances		37,726		38,767		—		—		38,767
Securities sold under agreement to repurchase		20,053		20,053		20,053		—		—
Subordinated debentures		29,427		20,605		—		—		20,605
Accrued interest payable		156		156		156		—		—
Fair value swap liability		286		286		—		286		—

The estimated fair value approximates carrying amount for all items except those described below. Estimated fair value for securities is based on quoted market values for the individual securities or for equivalent securities. For fixed rate loans or deposits and for variable rate loans or deposits with infrequent repricing or repricing limits, fair value is based on discounted cash flows using current market rates applied to the cash flow analysis or underlying collateral values. Fair value of debt is based on current rates for similar financing. The fair value of off-balance-sheet items is based on the current fees or cost that would be charged to enter into or terminate such arrangements and are considered nominal.

For certain homogeneous categories of loans, such as some residential mortgages, credit card receivables, and other consumer loans, fair value is estimated using the quoted market prices for securities backed by similar loans, adjusted for differences in loan characteristics. The fair value of other types of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities.

(Continued)

76

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 17—COMMITMENTS, CONTINGENCIES AND OFF-BALANCE-SHEET RISK

Some financial instruments, such as loan commitments, credit lines, letters of credit, and overdraft protection are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used. Off-balance-sheet risk to credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment.

The contractual amount of financial instruments with off-balance-sheet risk was as follows at year-end.

	2014				2013
	Fixed Rate		Variable Rate		Fixed Rate		Variable Rate
Commitments to extend credit:
Lines of credit and construction loans	$	9,405	$	160,718	$	11,866	$	151,332
Overdraft protection		4		22,122		18		21,084
Letters of credit		200		1,007		200		2,411
	$	9,609	$	183,847	$	12,084	$	174,827

Commitments to make loans are generally made for a period of one year or less. Fixed-rate loan commitments included above had interest rates ranging from 3.05% to 8.75% at December 31, 2014 and 3.05% to 13.75% at December 31, 2013, respectively. Maturities extend up to 30 years.

Citizens is required to maintain certain reserve balances on hand in accordance with the Federal Reserve Board requirements. The average reserve balance maintained in accordance with such requirements was $3,259 on December 31, 2014 and $2,959 on December 31, 2013.

NOTE 18—CAPITAL REQUIREMENTS AND RESTRICTION ON RETAINED EARNINGS

The Company and Citizens are subject to regulatory capital requirements administered by the federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations involve quantitative measures of assets, liabilities and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classification are also subject to qualitative judgments by the regulators. Failure to meet capital requirements can initiate regulatory action.

Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At year-end 2014 and 2013, the most recent regulatory notifications categorized Citizens as well capitalized under the regulatory framework

(Continued)

77

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 18—CAPITAL REQUIREMENTS AND RESTRICTION ON RETAINED EARNINGS (Continued)

for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category.

The Company’s and Citizens’ actual capital levels and minimum required levels at December 31, 2014 and 2013 were as follows.

	Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective Action Purposes
	Amount		Ratio			Amount		Ratio			Amount		Ratio
2014
Total Capital to risk-weighted assets
Consolidated	$	131,581		14.7	%	$	71,609		8.0	%		n/a		n/a
Citizens		111,470		12.5			71,341		8.0		$	89,176		10.0	%
Tier I (Core) Capital to risk-weighted assets
Consolidated		120,334		13.4			35,921		4.0			n/a		n/a
Citizens		100,259		11.2			35,807		4.0			53,710		6.0
Tier I (Core) Capital to average assets
Consolidated		120,334		10.3			46,732		4.0			n/a		n/a
Citizens		100,259		8.6			46,632		4.0			58,290		5.0
2013
Total Capital to risk-weighted assets
Consolidated	$	143,628		17.1	%	$	67,194		8.0	%		n/a		n/a
Citizens		104,884		12.5			67,126		8.0		$	83,907		10.0	%
Tier I (Core) Capital to risk-weighted assets
Consolidated		133,041		15.8			33,681		4.0			n/a		n/a
Citizens		94,302		11.2			33,679		4.0			50,519		6.0
Tier I (Core) Capital to average assets
Consolidated		133,041		11.6			45,876		4.0			n/a		n/a
Citizens		94,302		8.3			45,447		4.0			56,808		5.0

(Continued)

78

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 18—CAPITAL REQUIREMENTS AND RESTRICTION ON RETAINED EARNINGS (Continued)

The Company’s primary source of funds for paying dividends to its shareholders and for operating expense is the cash accumulated from dividends received from Citizens. Payment of dividends by Citizens to the Company is subject to restrictions by Citizens’ regulatory agencies. These restrictions generally limit dividends to the current and prior two years retained earnings as defined by the regulations. In addition, dividends may not reduce capital levels below minimum regulatory requirements.

NOTE 19—PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION

Condensed financial information of FCBC follows.

	December 31,
Condensed Balance Sheets	2014			2013
Assets:
Cash	$	13,663		$	32,572
Securities available for sale		540			449
Investment in bank subsidiary		117,364			111,121
Investment in nonbank subsidiaries		12,605			12,595
Other assets		3,003			5,210
Total assets	$	147,175		$	161,947
Liabilities and Shareholders’ Equity:
Deferred income taxes and other liabilities	$	1,839		$	4,144
Subordinated debentures		29,427			29,427
Preferred stock		23,132			46,316
Common stock		114,365			114,365
Accumulated deficit		(4,306	)		(10,823	)
Treasury Stock		(17,235	)		(17,235	)
Accumulated other comprehensive loss		(47	)		(4,247	)
Total liabilities and shareholders’ equity	$	147,175		$	161,947

(Continued)

79

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 19—PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (Continued)

	For the years ended December 31,
Condensed Statements of Operations	2014			2013
Dividends from bank subsidiaries	$	7,339		$	7,888
Interest expense		(777	)		(740	)
Pension expense		(236	)		(1,821	)
Pension settlement expense		(161	)		(2,251	)
Other expense, net		(1,150	)		(952	)
Income before equity in undistributed net earnings of subsidiaries		5,015			2,124
Income tax benefit		763			1,960
Equity in undistributed net earnings of subsidiaries		3,750			2,095
Net income	$	9,528		$	6,179

	For the years ended December 31,
Condensed Statements of Cash Flows	2014			2013
Operating activities:
Net income	$	9,528		$	6,179
Adjustment to reconcile net income to net cash provided by operating activities:
Change in other assets and other liabilities		1,508			(1,620	)
Equity in undistributed net earnings of subsidiaries		(3,750	)		(2,095	)
Net cash from operating activities		7,286			2,464
Financing activities:
Payment to repurchase preferred stock		(22,857	)		—
Proceeds from issuance of preferred stock		—			23,132
Cash dividends paid		(3,338	)		(2,315	)
Net cash provided by (used for) financing activities		(26,195	)		20,817
Net change in cash and cash equivalents		(18,909	)		23,281
Cash and cash equivalents at beginning of year		32,572			9,291
Cash and cash equivalents at end of year	$	13,663		$	32,572

(Continued)

80

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 20—EARNINGS PER COMMON SHARE

The factors used in the earnings per share computation follow.

	2014		2013
Basic
Net income	$	9,528	$	6,179
Preferred stock dividends		1,873		1,159
Net income available to common shareholders—basic	$	7,655	$	5,020
Weighted average common shares outstanding—basic		7,707,917		7,707,917
Basic earnings per share	$	0.99	$	0.65
Diluted
Net income available to common shareholders—basic	$	7,655	$	5,020
Preferred stock dividends on convertible preferred stock		1,606		—
Net income available to common shareholders—diluted	$	9,261	$	5,020
Weighted average common shares outstanding for earnings per common share basic		7,707,917		7,707,917
Add: dilutive effects of convertible preferred shares		3,196,931		113,863
Average shares and dilutive potential common shares outstanding—diluted		10,904,848		7,821,780
Diluted earnings per share	$	0.85	$	0.64

Basic earnings per common share are calculated by dividing net income by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share takes into consideration the pro forma dilution of unexercised stock option awards, computed using the treasury stock method.

(Continued)

81

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 21—QUARTERLY FINANCIAL DATA (UNAUDITED)

	Interest Income		Net Interest Income		Net Income		Basic Earnings per Common Share		Diluted Earnings per Common Share
2014
First quarter (2)(4)	$	11,315	$	10,165	$	2,712	$	0.27	$	0.22
Second quarter (1)(2)		11,365		10,266		2,240		0.24		0.21
Third quarter (1)(2)		11,667		10,684		2,306		0.25		0.21
Fourth quarter (1)(2)		11,623		10,751		2,270		0.23		0.21
2013
First quarter (2)(3)(4)	$	11,286	$	9,987	$	1,913	$	0.21	$	0.21
Second quarter (2)(3)(5)		11,025		9,781		1,657		0.18		0.18
Third quarter (2)(3)		11,127		9,917		1,566		0.17		0.17
Fourth quarter (2)(3)(6)(7)		11,443		10,289		1,043		0.09		0.08

(1) Interest income and net interest income increased due to loan volume.

(2) Interest expense decreased as deposits repriced downward and the deposit mix shifted toward cheaper funding sources.

(3) Interest income decreased as loans repriced downward.

(4) Net income increased due to fees on tax refund program.

(5) Net interest income and net income decreased due to reversed late charges.

(6) Interest income and net interest income increased due to increased loan volume.

(7) Net income decreased due to non cash charge to pension plan.

(Continued)

82

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 22—DERIVATIVE HEDGING INSTRUMENTS

To accommodate customer need and to support the Company’s asset/liability positioning, on occasion we enter into interest rate swaps with a customer and a bank counterparty. The Company enters into a floating rate loan and a fixed rate swap with our customer. Simultaneously, the Company enters into an offsetting fixed rate swap with a bank counterparty. In connection with each swap transaction, the Company agrees to pay interest to the customer on a notional amount at a variable interest rate and receive interest from the customer on the same notional amount at a fixed interest rate. At the same time, the Company agrees to pay a bank counterparty the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. These transactions allow the Company’s customer to effectively convert variable rate loans to fixed rate loans. Since the Company acts as an intermediary for its customer, changes in the fair value of the underlying derivative contracts offset each other and do not significantly impact the Company’s results of operations.

The following table summarizes the Company’s interest rate swap positions and the impact of a 1 basis point change in interest rates as of December 31, 2014

	Notional Amount			Weighted Average Rate Received/(Paid)			Impact of a 1 basis point change in interest rates			Repricing Frequency
Derivative Assets	$	29,060			5.47	%	$	19			Monthly
Derivative Liabilities		(29,060	)		-5.47	%		(19	)		Monthly
Net Exposure	$	—					$	—

The Company monitors and controls all derivative products with a comprehensive Board of Director approved commercial loan swap policy. All hedge transactions must be approved in advance by the Lenders Loan Committee or the Directors Loan Committee of the Board of Directors.

NOTE 23—PARTICIPATION IN THE TREASURY CAPITAL PURCHASE PROGRAM

On January 23, 2009, the Company completed the sale to the U.S. Treasury of $23,184 of newly-issued non-voting preferred shares as part of the Capital Purchase Program (CPP) enacted by the U.S. Treasury as part of the Troubled Assets Relief Program (TARP) under the Emergency Economic Stabilization Act of 2008 (EESA). To finalize the Company’s participation in the CPP, the Company and the Treasury entered into a Letter Agreement, dated January 23, 2009, including the Securities Purchase Agreement – Standard Terms attached thereto. Pursuant to the terms of the Securities Purchase Agreement, the Company issued and sold to Treasury (1) 23,184 shares of Fixed Rate Cumulative Perpetual Preferred Shares, Series A, each without par value and having a liquidation preference of $1,000 per share (Series A Preferred Shares), and (2) a Warrant to purchase 469,312 common shares of the Company, each without par value, at an exercise price of $7.41 per share. The Warrant had a ten-year term. All of the proceeds from the sale of the Series A Preferred Shares and the Warrant by the Company to the U.S. Treasury under the CPP qualified as Tier 1 capital for regulatory purposes. Under the standardized CPP terms, cumulative dividends on the Series A Preferred Shares accrued on the liquidation preference at a rate of 5% per annum for the first five years, and at a rate of 9% per annum thereafter. The Series A Preferred Shares

(Continued)

83

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 23—PARTICIPATION IN THE TREASURY CAPITAL PURCHASE PROGRAM (Continued)

had no maturity date and ranked senior to the common shares with respect to the payment of dividends and distributions and amounts payable upon liquidation, dissolution and winding up of the Company.

On July 3, 2012, the U.S. Treasury completed the sale of all 23,184 of the Preferred Shares to various investors pursuant to a modified “Dutch auction” process. On September 5, 2012, the Company completed the repurchase of the Warrant from the U.S. Treasury in accordance with the terms of the Securities Purchase Agreement for an aggregate purchase price of $563,174.

On December 19, 2013, the Company announced the completion of its public offering of 1,000,000 depositary shares, each representing a 1/40th ownership interest in a Noncumulative Redeemable Convertible Perpetual Preferred Share, Series B, of the Company with a liquidation preference of $1,000 per share (equivalent to $25.00 per depositary share). The Company sold the maximum of 1,000,000 depositary shares in the offering at $25.00 per depositary share, resulting in proceeds, net of $1,868 issuance costs, to the Company of $23,132.

Using proceeds from the sale of the depositary shares, the Company redeemed all of the Series A Preferred Shares for an aggregate purchase price of $22,857, which redemption was completed as of February 15, 2014.

NOTE 24—SUBSEQUENT EVENTS

On September 11, 2014, FCBC and TCNB Financial Corp. (“TCNB”) issued a press release announcing the signing of an Agreement and Plan of Merger (the “Merger Agreement”) by and among FCBC, FC Merger Corp. (“Merger Corp.”), a newly-formed Ohio corporation and wholly-owned subsidiary of FCBC, and TCNB pursuant to which FCBC will acquire TCNB and its wholly-owned subsidiary, The Citizens National Bank of Southwestern Ohio (“Citizens National”).

Under the terms of the Merger Agreement, FCBC has agreed to pay $23.50 in cash for each of the 733,000 outstanding TCNB common shares. In addition, FCBC has agreed to cash out all of the 3,500 outstanding TCNB stock options for an amount equal to the difference between $23.50 per share and the exercise price of the stock options. The aggregate cash consideration to be paid by FCBC in respect of the outstanding TCNB common shares and the cash-out of outstanding TCNB stock options is approximately $17.2 million.

It is anticipated that Citizens National will be merged with and into Citizens upon completion of the transaction. At that time, Citizens National’s three banking offices located in Dayton, Ohio will become branches of Citizens. As of December 31, 2014, TCNB and Citizens National had total consolidated assets of $102.5 million, total loans of $78.2 million and total deposits of $90.4 million.

(Continued)

84

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 24—SUBSEQUENT EVENTS (Continued)

First Citizens has received regulatory approval of the merger from the Board of Governors of the Federal Reserve System and the Ohio Department of Financial Institutions and the shareholders of TCNB have also approved the merger. The transaction closed at the close of business of March 6, 2015. Management is still in the process of determining the fair value adjustments that will be applied as part of the business combination accounting. As such, neither the selected pro forma balance sheet information nor the selected pro forma income statement information presented as follows includes the impact of fair value adjustments.

First Citizens Banc Corp and TCNB Financial Corp

Pro Forma Selected Balance Sheet Items (unaudited)

	2014		2013
ASSETS
Cash and due from financial institutions	$	22,898	$	27,481
Securities available for sale		205,819		208,082
Loans, net of allowance		978,802		921,597
Premises and equipment, net		16,285		18,317
LIABILITIES
Total deposits		1,059,286		1,032,755
Federal Home Loan Bank advances		62,589		37,726
Securities sold under agreements to repurchase		21,613		20,053
Subordinated debentures		29,427		29,427
SHAREHOLDERS’ EQUITY
Total shareholders’ equity		114,548		126,294

(Continued)

85

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2014 and 2013

(Amounts in thousands, except share data)

NOTE 24—SUBSEQUENT EVENTS (Continued)

First Citizens Banc Corp and TCNB Financial Corp

Pro Forma Condensed Income Statement (unaudited)

	2014		2013
Total interest and dividend income		50,597		49,668
Total interest expense		4,440		5,280
Net interest income		46,157		44,388
Provision for loan losses		1,535		1,180
Net interest income after provision for loan losses		44,622		43,208
Total noninterest income		14,316		12,506
Total noninterest expense		45,220		46,833
Income before income taxes		13,718		8,881
Income taxes		3,483		1,710
Net income		10,235		7,171
Preferred stock dividends and discount accretion		1,873		1,159
Net income available to common shareholders	$	8,362	$	6,012
Earnings per common share, basic	$	1.08	$	0.78
Earnings per common share, diluted	$	0.91	$	0.77

(Continued)

86

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EX-21.1

Exhibit 21.1

SUBSIDIARIES OF REGISTRANT

Subsidiary	Jurisdiction of Organization
The Citizens Banking Company	Ohio
First Citizens Insurance Agency, Inc.	Ohio
Water Street Properties, Inc.	Ohio
FC Refund Solutions, Inc.	Ohio
First Citizens Investments, Inc.	Delaware
First Citizens Capital LLC	Delaware
First Citizens Statutory Trust II	Connecticut
First Citizens Statutory Trust III	Delaware
First Citizens Statutory Trust IV	Delaware
Futura TPF Trust I	Delaware
Futura TPF Trust II	Delaware

EX-23.1

Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors of First Citizens Banc Corp

We consent to the incorporation by reference in Registration Statement No. 333-99089 on Form S-8 of First Citizens Banc Corp of our report dated March 13, 2015, relating to our audit of the consolidated financial statements and the effectiveness of internal control over financial reporting, which is incorporated by reference in the Annual Report on Form 10-K of First Citizens Banc Corp for the year ended December 31, 2014.

/s/ S.R. Snodgrass, P.C.

Wexford, Pennsylvania

March 13, 2015

EX-31.1

Exhibit 31.1

Certification of Principal Executive Officer

CERTIFICATIONS FOR ANNUAL REPORT ON FORM 10-K

I, James O. Miller, certify that:

1. I have reviewed this Annual Report on Form 10-K of First Citizens Banc Corp;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

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 purposes in accordance with generally accepted accounting 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 (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

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.

Signature and Title: /s/ James O. Miller, President, CEO, Chairman of the Board Date: March 13, 2015

EX-31.2

Exhibit 31.2

Certification of Principal Financial Officer

CERTIFICATIONS FOR ANNUAL REPORT ON FORM 10-K

I, Todd A. Michel, certify that:

1. I have reviewed this Annual Report on Form 10-K of First Citizens Banc Corp;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

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 purposes in accordance with generally accepted accounting 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 (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

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.

Signature and Title: /s/ Todd A. Michel, Senior Vice President, Controller Date: March 13, 2015

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of First Citizens Banc Corp (the “Company”) on Form 10-K for the period ending December 31, 2014, as filed with the Securities and Exchange Commission on the date of this certification (the Report), I, James O. Miller, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ James O. Miller

James O. Miller

Chief Executive Officer

March 13, 2015

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of First Citizens Banc Corp (the “Company”) on Form 10-K for the period ending December 31, 2014, as filed with the Securities and Exchange Commission on the date of this certification (the Report), I, Todd A. Michel, Senior Vice President and Controller of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Todd A. Michel

Todd A. Michel

Senior Vice President, Controller

March 13, 2015

XML

Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Acquired Intangible Assets

Acquired intangible assets were as follows as of year end.
	2014				2013
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Core deposit and other intangibles	$	6,688	$	5,165	$	11,619	$	9,326

Schedule of Estimated Amortization Expense

Estimated amortization expense for each of the next three years and thereafter is as follows.

2015	$	554
2016		522
2017		447
Thereafter		—
	$	1,523

XML

Parent Company Only Condensed Financial Information - Schedule of Condensed Statements of Operations (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Condensed Financial Statements, Captions [Line Items]
Interest expense									$ (4,104)	$ (4,907)
Pension settlement expense									(55)	(821)
Income before equity in undistributed net earnings of subsidiaries									12,690	7,552
Income tax benefit									3,162	1,373
Net income	2,270	2,306	2,240	2,712	1,043	1,566	1,657	1,913	9,528	6,179
FCBC [Member]
Condensed Financial Statements, Captions [Line Items]
Dividends from bank subsidiaries									7,339	7,888
Interest expense									(777)	(740)
Pension expense									(236)	(1,821)
Pension settlement expense									(161)	(2,251)
Other expense, net									(1,150)	(952)
Income before equity in undistributed net earnings of subsidiaries									5,015	2,124
Income tax benefit									763	1,960
Equity in undistributed net earnings of subsidiaries									3,750	2,095
Net income									$ 9,528	$ 6,179

XML

Subsequent Events (Tables)

12 Months Ended

Dec. 31, 2014

Subsequent Events [Abstract]

Schedule of Proforma Information

First Citizens Banc Corp and TCNB Financial Corp

Pro Forma Selected Balance Sheet Items (unaudited)

	2014		2013
ASSETS
Cash and due from financial institutions	$	22,898	$	27,481
Securities available for sale		205,819		208,082
Loans, net of allowance		978,802		921,597
Premises and equipment, net		16,285		18,317
LIABILITIES
Total deposits		1,059,286		1,032,755
Federal Home Loan Bank advances		62,589		37,726
Securities sold under agreements to repurchase		21,613		20,053
Subordinated debentures		29,427		29,427
SHAREHOLDERS’ EQUITY
Total shareholders’ equity		114,548		126,294

First Citizens Banc Corp and TCNB Financial Corp

Pro Forma Condensed Income Statement (unaudited)

	2014		2013
Total interest and dividend income		50,597		49,668
Total interest expense		4,440		5,280
Net interest income		46,157		44,388
Provision for loan losses		1,535		1,180
Net interest income after provision for loan losses		44,622		43,208
Total noninterest income		14,316		12,506
Total noninterest expense		45,220		46,833
Income before income taxes		13,718		8,881
Income taxes		3,483		1,710
Net income		10,235		7,171
Preferred stock dividends and discount accretion		1,873		1,159
Net income available to common shareholders	$	8,362	$	6,012
Earnings per common share, basic	$	1.08	$	0.78
Earnings per common share, diluted	$	0.91	$	0.77

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Commitments, Contingencies and Off-Balance Sheet Risk (Tables)

12 Months Ended

Dec. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

Contractual Amount of Financial Instruments with Off-Balance-Sheet Risk

The contractual amount of financial instruments with off-balance-sheet risk was as follows at year-end.

	2014				2013
	Fixed Rate		Variable Rate		Fixed Rate		Variable Rate
Commitments to extend credit:
Lines of credit and construction loans	$	9,405	$	160,718	$	11,866	$	151,332
Overdraft protection		4		22,122		18		21,084
Letters of credit		200		1,007		200		2,411
	$	9,609	$	183,847	$	12,084	$	174,827

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Allowance for Loan Losses - Summary of Nonaccrual Loans (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Financing Receivable, Recorded Investment [Line Items]
Total, Non-Accrual Status	$ 13,558	$ 20,459
Commercial and Agriculture [Member]
Financing Receivable, Recorded Investment [Line Items]
Total, Non-Accrual Status	1,264	1,590
Commercial Real Estate Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Total, Non-Accrual Status	3,403	6,360
Commercial Real Estate Non Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Total, Non-Accrual Status	2,134	3,249
Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total, Non-Accrual Status	6,674	9,210
Real Estate Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Total, Non-Accrual Status	41
Consumer and Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Total, Non-Accrual Status	$ 42	$ 50

XML

Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Significant Accounting Policies [Line Items]
Allowance for loan losses related to commercial loans and real estate loans	500
Number of days reaching which loans are considered for nonaccrual status	90 days
Other assets	8,209	9,350
Federal Home Loan Bank par value	100
Number of operating segments	1
Other Real Estate Owned [Member]
Significant Accounting Policies [Line Items]
Other assets	560	173
Unsecured Debt [Member]
Significant Accounting Policies [Line Items]
Retail loans past due charge off period	90 days
Secured Debt [Member]
Significant Accounting Policies [Line Items]
Residential real estate loans past due assessment of value period	180 days
Other Debt [Member]
Significant Accounting Policies [Line Items]
Loans past due charged down to the net realizable value period	90 days
Maximum [Member]
Significant Accounting Policies [Line Items]
Percentage of insurance commission revenue of total revenue	1.00%	1.00%
Original maturities for cash and cash equivalents	90 days
Estimated useful life of intangible assets	12 years
Maximum [Member] | Furniture and equipment [Member]
Significant Accounting Policies [Line Items]
Estimated useful life of asset	7 years
Maximum [Member] | Buildings and improvements [Member]
Significant Accounting Policies [Line Items]
Estimated useful life of asset	50 years
Minimum [Member]
Significant Accounting Policies [Line Items]
Estimated useful life of intangible assets	5 years
Minimum [Member] | Furniture and equipment [Member]
Significant Accounting Policies [Line Items]
Estimated useful life of asset	3 years
Minimum [Member] | Buildings and improvements [Member]
Significant Accounting Policies [Line Items]
Estimated useful life of asset	7 years
Water St. [Member] | Maximum [Member]
Significant Accounting Policies [Line Items]
Percentage of insurance commission revenue of total revenue	1.00%	1.00%

XML

Premises and Equipment - Rent Commitments Under Non-cancelable Operating Leases (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014
Leases [Abstract]
2015	$ 335
2016	273
2017	256
2018	117
2019	88
Thereafter	0
Total	$ 1,069

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Stock Options - Summary of Activity in Stock Option Plan (Detail) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Shares, Outstanding at beginning of year	10,000	0
Shares, Granted	0
Shares, Exercised	0
Shares, Forfeited	0
Shares, Expired	(10,000)
Shares, Options outstanding, end of period	0	0
Shares, Options exercisable, end of period	0
Weighted Average Exercise Price, Outstanding at beginning of period	$ 35.00
Weighted Average Exercise Price, Granted	$ 0
Weighted Average Exercise Price, Exercised	$ 0
Weighted Average Exercise Price, Forfeited	$ 0
Weighted Average Exercise Price, Expired	$ 35.00
Weighted Average Exercise Price, Options outstanding, end of period	$ 0
Weighted Average Exercise Price, Options exercisable, end of period	$ 0

XML

Stock Options (Tables)

12 Months Ended

Dec. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary of Activity in Stock Option Plan

A summary of the activity in the stock option plan is as follows.

	2013
	Shares			Weighted Average Exercise Price
Outstanding at beginning of year		10,000		$	35.00
Granted		—			—
Exercised		—			—
Forfeited		—			—
Expired		(10,000	)		35.00
Outstanding at end of year	$	—		$	—
Options exercisable at year-end	$	—		$	—

XML

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2014

Accounting Policies [Abstract]

Nature of Operations and Principles of Consolidation

Nature of Operations and Principles of Consolidation: The Consolidated Financial Statements include the accounts of First Citizens Banc Corp (FCBC) and its wholly-owned subsidiaries: The Citizens Banking Company (Citizens), First Citizens Insurance Agency, Inc., Water Street Properties, Inc. (Water St.) and FC Refund Solutions, Inc. (FCRS). First Citizens Capital LLC (FCC) is wholly-owned by Citizens and holds inter-company debt. First Citizens Investments, Inc. (FCI) is wholly-owned by Citizens and holds and manages its securities portfolio. The operations of FCI and FCC are located in Wilmington, Delaware. The above companies together are sometimes referred to as the Company. Intercompany balances and transactions are eliminated in consolidation.

The Company provides financial services through its offices in the Ohio counties of Erie, Crawford, Champaign, Franklin, Logan, Summit, Huron, Ottawa, Madison and Richland. Its primary deposit products are checking, savings, and term certificate accounts, and its primary lending products are residential mortgage, commercial, and installment loans. Substantially all loans are secured by specific items of collateral including business assets, consumer assets and commercial and residential real estate. Commercial loans are expected to be repaid from cash flow from operations of businesses. There are no significant concentrations of loans to any one industry or customer. However, the customer’s ability to repay their loans is dependent on the real estate and general economic conditions in the area. Other financial instruments that potentially represent concentrations of credit risk include deposit accounts in other financial institutions.

First Citizens Insurance Agency Inc. was formed to allow the Company to participate in commission revenue generated through its third party insurance agreement. Insurance commission revenue was less than 1.0% of total revenue for the years ended December 31, 2014 and 2013. Water St. was formed to hold repossessed assets of FCBC’s subsidiaries. Water St. revenue was less than 1% of total revenue for the years ended December 31, 2014 and 2013. FCRS was formed in 2012 and remained inactive for the periods presented.

Use of Estimates

Use of Estimates: To prepare financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and future results could differ. The allowance for loan losses, determination of goodwill impairment, fair values of financial instruments, valuation of deferred tax assets, pension obligations and other-than-temporary-impairment of securities are considered material estimates that are particularly susceptible to significant change in the near term.

Cash Flows

Cash Flows: Cash and cash equivalents include cash on hand and demand deposits with financial institutions with original maturities fewer than 90 days. Net cash flows are reported for customer loan and deposit transactions, interest bearing deposits in other financial institutions, and federal funds purchased or sold and repurchase agreements.

Securities

Securities: Debt securities are classified as available-for-sale when they might be sold before maturity. Equity securities with readily determinable fair values are also classified as available for sale. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax.

Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage backed securities where prepayments are anticipated. Gains and losses on sales are based on the amortized cost of the security sold using the specific identification method.

The recent guidance specifies that if (a) a company does not have the intent to sell a debt security prior to recovery and (b) it is more-likely-than-not that it will not have to sell the debt security prior to recovery; the security would not be considered other-than-temporarily impaired unless there is a credit loss. When an entity does not intend to sell the security, and it is more-likely-than-not the entity will not have to sell the security before recovery of its cost basis, it will recognize the credit component of other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. For held-to-maturity debt securities, the amount of other-than-temporary impairment recorded in other comprehensive income for the noncredit portion of a previous other-than-temporary impairment should be amortized prospectively over the remaining life of the security on the basis of the timing of future estimated cash flows of the security.

For available-for-sale debt securities that management has no intent to sell and believes that it more-likely-than-not will not be required to sell prior to recovery, only the credit loss component of the impairment is recognized in earnings, while the non-credit loss is recognized in accumulated other comprehensive income. The credit loss component recognized in earnings is identified as the amount of principal cash flows not expected to be received over the remaining term of the security as projected based on cash flow projections.

Other securities which include Federal Home Loan Bank (FHLB) stock, Federal Reserve Bank (FRB) stock, Farmer Mac stock (FMS), Bankers’ Bancshares Inc. (BB) stock, and Norwalk Community Development Corp (NCDC) stock are carried at cost.

Loans Held for Sale

Loans Held for Sale: Mortgage loans originated and intended for sale in the secondary market and loans that management no longer intends to hold for the foreseeable future, are carried at the lower of aggregate cost or market, as determined by outstanding commitments from investors. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings.

Loans

Loans: Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of deferred loan fees and costs, and an allowance for loan losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments.

Interest income on mortgage and commercial loans is discontinued at the time the loan is 90 days delinquent unless the credit is well-secured and in process of collection. Interest income on consumer loans is discontinued when management determines future collection is unlikely. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful.

All interest accrued, but not received, for loans placed on nonaccrual, is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Purchased Loans

Purchased Loans: The Company purchases individual loans and groups of loans. Purchased loans that show evidence of credit deterioration since origination are recorded at the amount paid (or allocated fair value in a purchase business combination), such that there is no carryover of the seller’s allowance for loan losses. After acquisition, incurred losses are recognized by an increase in the allowance for loan losses.

Purchased loans are accounted for individually or aggregated into pools of loans based on common risk characteristics (e.g., credit score, loan type, and date of origination). The Company estimates the amount and timing of expected cash flows for each purchased loan or pool, and the expected cash flows in excess of amount paid is recorded as interest income over the remaining life of the loan or pool (accretable yield). The excess of the loan’s, or pool’s, contractual principal and interest over expected cash flows is not recorded (nonaccretable difference).

Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded. If the present value of expected future cash flows is greater than the carrying amount, it is recognized as part of future interest income.

Allowance for Loan Losses

Allowance for Loan Losses: The allowance for loan losses (allowance) is calculated with the objective of maintaining a reserve sufficient to absorb inherent loan losses in the loan portfolio. Management establishes the allowance for loan losses based upon its evaluation of the pertinent factors underlying the types and quality of loans in the portfolio. In determining the allowance and the related provision for loan losses, the Company considers three principal elements: (i) specific impairment reserve allocations (valuation allowances) based upon probable losses identified during the review of impaired loans in the Commercial loan portfolio, (ii) allocations established for adversely-rated loans in the Commercial loan portfolio and nonaccrual Real Estate Residential, Consumer installment and Home Equity loans, (iii) allocations on all other loans based principally on a two-year historical loan loss experience and loan loss trends. These allocations are adjusted for consideration of general economic and business conditions, credit quality and delinquency trends, collateral values, and recent loss experience for these similar pools of loans. The Company analyzes its loan portfolio each quarter to determine the appropriateness of its allowance for loan losses.

All commercial loans and commercial real estate loans are monitored on a regular basis with a detailed loan review completed for all loans greater than $500. All commercial loans and commercial real estate loans that are 90 days past due or in nonaccrual status, are analyzed to determine if they are “impaired”, which means that it is probable that all amounts will not be collected according to the contractual terms of the loan agreement. All loans that are delinquent 90 days are classified as substandard and placed on nonaccrual status unless they are well-secured and in the process of collection. The remaining loans are evaluated and segmented with loans with similar risk characteristics. The Company allocates reserves based on risk categories and portfolio segments described below, which conform to the Company’s asset classification policy. In reviewing risk within Citizens’ loan portfolio, management has identified specific segments to categorize loan portfolio risk: (i) Commercial & Agriculture loans; (ii) Commercial Real Estate loans; (iii) Residential Real Estate loans; (iv) Real Estate Construction loans; (vi) Home Equity Lines of Credit (HELOC); (vii) Indirect Auto loans; and (vii) Consumer and Other loans. Additional information related to economic factors can be found in Note 4.

Loan Charge-off Policies

Loan Charge-off Policies: All unsecured open- and closed-ended retail loans that become past due 90 days from the contractual due date are charged off in full. In lieu of charging off the entire loan balance, loans with non real estate collateral may be written down to the net realizable value of the collateral, if repossession of collateral is assured and in process. For open- and closed-ended loans secured by residential real estate, a current assessment of value is made no later than 180 days past due. Any outstanding loan balance in excess of the net realizable value of the property is charged off. All other loans are generally charged down to the net realizable value when Citizens recognizes the loan is permanently impaired, which is generally after the loan is 90 days past due.

Troubled Debt Restructurings

Troubled Debt Restructurings: In certain situations based on economic or legal reasons related to a borrower’s financial difficulties, management may grant a concession for other than an insignificant period of time to the borrower that would not otherwise be considered. The related loan is classified as a troubled debt restructuring (TDR). Management strives to identify borrowers in financial difficulty early and work with them to modify to more affordable terms before their loan reaches nonaccrual status. These modified terms may include rate reductions, principal forgiveness, payment forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. In cases where borrowers are granted new terms that provide for a reduction of either interest or principal, management measures any impairment on the restructuring as noted above for impaired loans. In addition to the allowance for the pooled portfolios, management has developed a separate reserve for loans that are identified as impaired through a TDR. These loans are excluded from pooled loss forecasts and a separate reserve is provided under the accounting guidance for loan impairment. Consumer loans whose terms have been modified in a TDR are also individually analyzed for estimated impairment.

Other Real Estate

Other Real Estate: Other real estate acquired through or instead of loan foreclosure is initially recorded at fair value less costs to sell when acquired, establishing a new cost basis and any deficiency in the value is charged off through the allowance. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. Operating costs after acquisition are expensed. Other real estate owned included in other assets totaled approximately $560 at December 31, 2014 and $173 at December 31, 2013.

Premises and Equipment

Premises and Equipment: Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed using both accelerated and straight-line methods over the estimated useful life of the asset, ranging from three to seven years for furniture and equipment and seven to fifty years for buildings and improvements.

Federal Home Loan Bank (FHLB) Stock

Federal Home Loan Bank (FHLB) Stock: Citizens is a member of the FHLB of Cincinnati and as such, is required to maintain a minimum investment in stock of the FHLB that varies with the level of advances outstanding with the FHLB. The stock is bought from and sold to the FHLB based upon its $100 par value. The stock does not have a readily determinable fair value and as such is classified as restricted stock, carried at cost and evaluated for impairment by management. The stock’s value is determined by the ultimate recoverability of the par value rather than by recognizing temporary declines. The determination of whether the par value will ultimately be recovered is influenced by criteria such as the following: (a) the significance of the decline in net assets of the FHLB as compared to the capital stock amount and the length of time this situation has persisted (b) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance (c) the impact of legislative and regulatory changes on the customer base of the FHLB and (d) the liquidity position of the FHLB. With consideration given to these factors, management concluded that the stock was not impaired at December 31, 2014 or 2013.

Federal Reserve Bank (FRB) Stock

Federal Reserve Bank (FRB) Stock: Citizens is a member of the Federal Reserve System. FRB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value.

Bank Owned Life Insurance (BOLI)

Bank Owned Life Insurance (BOLI): Citizens has purchased BOLI policies on certain key executives. BOLI is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement.

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets: Goodwill results from prior business acquisitions and represents the excess of the purchase price over the fair value of acquired tangible assets and liabilities and identifiable intangible assets. Goodwill is assessed at least annually for impairment and any such impairment will be recognized in the period identified.

Other intangible assets consist of core deposit intangibles arising from whole bank and branch acquisitions. These intangible assets are measured at fair value and then amortized on an accelerated method over their estimated useful lives, which range from five to twelve years.

Servicing Rights

Servicing Rights: Servicing rights are recognized as assets for the allocated value of retained servicing rights on loans sold. Servicing rights are initially recorded at fair value at the date of transfer. The valuation technique used is the present value of estimated future cash flows using current market discount rates. Servicing rights are amortized in proportion to, and over the period of, estimated net servicing revenues. Impairment is evaluated based on the fair value of the rights, using groupings of the underlying loans as to interest rates and then, secondarily, prepayment characteristics. Fair value is determined using prices for similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. Any impairment of a grouping is reported as a valuation allowance to the extent that fair value is less than the capitalized asset for the grouping.

Long-term Assets

Long-term Assets: Premises and equipment, core deposit and other intangible assets, and other long-term assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value.

Repurchase Agreements

Repurchase Agreements: Substantially all repurchase agreement liabilities represent amounts advanced by various customers. Securities are pledged to cover these liabilities, which are not covered by federal deposit insurance.

Loan Commitments and Related Financial Instruments

Loan Commitments and Related Financial Instruments: Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay.

Income Taxes

Income Taxes: Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax basis of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized.

The Company prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Benefits from tax positions should be recognized in the financial statements only when it is more likely than not that the tax position will be sustained upon examination by the appropriate taxing authority that would have full knowledge of all relevant information.

A tax position that meets the more-likely-than-not recognition threshold is measured at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not recognition threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. The Company recognizes interest and/or penalties related to income tax matters in income tax expense.

Retirement Plans

Retirement Plans: Pension expense is the net of service and interest cost, expected return on plan assets and amortization of gains and losses not immediately recognized. Employee 401(k) and profit sharing plan expense is the amount of matching contributions. Deferred compensation allocates the benefits over the years of service.

Earnings per Common Share

Earnings per Common Share: Basic earnings per share are net income available to common shareholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share include the dilutive effect of additional potential common shares issuable related to convertible preferred shares. Treasury shares are not deemed outstanding for earnings per share calculations.

Comprehensive Income

Comprehensive Income: Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available for sale and changes in the funded status of the pension plan.

Loss Contingencies

Loss Contingencies: Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there now are such matters that will have a material effect on the financial statements.

Restrictions on Cash

Restrictions on Cash: Cash on hand or on deposit with the Federal Reserve Bank was required to meet regulatory reserve and clearing requirements. These balances do not earn interest.

Dividend Restriction

Dividend Restriction: Banking regulations require maintaining certain capital levels and may limit the dividends paid by Citizens to FCBC or by FCBC to shareholders. Additional information related to dividend restrictions can be found in Note 18.

Fair Value of Financial Instruments

Fair Value of Financial Instruments: Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect these estimates.

Operating Segments

Operating Segments: While the Company’s chief decision makers monitor the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Operating segments are aggregated into one as operating results for all segments are similar. Accordingly, all of the Company’s financial service operations are considered by management to be aggregated in one reportable operating segment.

Reclassifications

Reclassifications: Some items in the prior year financial statements were reclassified to conform to the current presentation. Such reclassifications had no effect on net income or shareholders’ equity.

Derivative Instruments and Hedging Activities

Derivative Instruments and Hedging Activities: The Company enters into interest rate swap agreements to facilitate the risk management strategies of a small number of commercial banking customers. All derivatives are accounted for in accordance with ASC-815,Derivatives and Hedging. The Company mitigates the risk of entering into these agreements by entering into equal and offsetting swap agreements with highly rated third party financial institutions. The swap agreements are free-standing derivatives and are recorded at fair value in the Company’s consolidated balance sheets. The Company is party to master netting arrangements with its financial institution counterparties; however, the Company does not offset assets and liabilities under these arrangements for financial statement presentation purposes because the Company does not currently intend to execute a setoff with its’ counterparties. The master netting arrangements provide for a single net settlement of all swap agreements, as well as collateral, in the event of default on, or termination of, any one contract. Collateral, usually in the form of marketable securities, is posted by the counterparty with net liability positions in accordance with contract thresholds.

Effect of Newly Issued but Not Yet Effective Accounting Standards

Effect of Newly Issued but Not Yet Effective Accounting Standards:

In January 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-01, Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects. The amendments in this Update permit reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). The amendments in this Update should be applied retrospectively to all periods presented. A reporting entity that uses the effective yield method to account for its investments in qualified affordable housing projects before the date of adoption may continue to apply the effective yield method for those preexisting investments. The amendments in this Update are effective for public business entities for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. Adoption of this Update is not expected to have a significant impact on the Company’s financial statements.

In January 2014, the FASB issued ASU 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The amendments in this Update clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this Update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. An entity can elect to adopt the amendments in this Update using either a modified retrospective transition method or a prospective transition method. This Update is not expected to have a significant impact on the Company’s financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (a new revenue recognition standard). The Update’s core principle is that a company will recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this Update specifies the accounting for certain costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. This Update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is evaluating the effect of adopting this new accounting Update.

In June 2014, the FASB issued ASU 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. The amendments in this Update change the accounting for repurchase-to-maturity transactions to secured borrowing accounting. For repurchase financing arrangements, the amendments require separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in secured borrowing accounting for the repurchase agreement. The amendments also require enhanced disclosures. The accounting changes in this Update are effective for the first interim or annual period beginning after December 15, 2014. An entity is required to present changes in accounting for transactions outstanding on the effective date as a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. Earlier application is prohibited. The disclosure for certain transactions accounted for as a sale is required to be presented for interim and annual periods beginning after December 15, 2014, and the disclosure for repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions accounted for as secured borrowings is required to be presented for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015. The disclosures are not required to be presented for comparative periods before the effective date. This Update is not expected to have a significant impact on the Company’s financial statements.

In June 2014, the FASB issued ASU 2014-12, Compensation-Stock Compensation (Topic 718): Accounting for Share-Based Payments when the Terms of an Award Provide that a Performance Target Could Be Achieved After the Requisite Service Period. The amendments require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The amendments in this Update are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. Entities may apply the amendments in this Update either (a) prospectively to all awards granted or modified after the effective date or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. If retrospective transition is adopted, the cumulative effect of applying this Update as of the beginning of the earliest annual period presented in the financial statements should be recognized as an adjustment to the opening retained earnings balance at that date. Additionally, if retrospective transition is adopted, an entity may use hindsight in measuring and recognizing the compensation cost. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations.

In August 2014, the FASB issued ASU 2014-14, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40). The amendments in this Update require that a mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if the following conditions are met: (1) the loan has a government guarantee that is not separable from the loan before foreclosure, (2) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim, and (3) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The amendments in this Update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. This Update is not expected to have a significant impact on the Company’s financial statements.

In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40). The amendments in this Update provide guidance in accounting principles generally accepted in the United States of America about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The amendments in this Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. This Update is not expected to have a significant impact on the Company’s financial statements.

In November 2014, the FASB issued ASU 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity (a consensus of the FASB Emerging Issues Task Force). This Update clarifies how current U.S. GAAP should be interpreted in subjectively evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. Public business entities are required to implement the new requirements in fiscal years and interim periods within those fiscal years beginning after December 15, 2015. This Update is not expected to have a significant impact on the Company’s financial statements.

In November 2014, the FASB issued ASU 2014-17, Business Combinations (Topic 805): Pushdown Accounting. The amendments in this Update apply to the separate financial statements of an acquired entity and its subsidiaries that are a business or nonprofit activity (either public or nonpublic) upon the occurrence of an event in which an acquirer (an individual or an entity) obtains control of the acquired entity. An acquired entity may elect the option to apply pushdown accounting in the reporting period in which the change-in-control event occurs. If pushdown accounting is not applied in the reporting period in which the change-in-control event occurs, an acquired entity will have the option to elect to apply pushdown accounting in a subsequent reporting period to the acquired entity’s most recent change-in-control event. The amendments in this Update are effective on November 18, 2014. After the effective date, an acquired entity can make an election to apply the guidance to future change-in-control events or to its most recent change-in-control event. This Update is not expected to have a significant impact on the Company’s financial statements.

In January 2015, the FASB issued ASU 2015-01, Income Statement – Extraordinary and Unusual Items, as part of its initiative to reduce complexity in accounting standards. This Update eliminates from GAAP the concept of extraordinary items. The amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. This Update is not expected to have a significant impact on the Company’s financial statements.

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Goodwill and Intangible Assets - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 21,720	$ 21,720
Amortization of intangible assets	$ 769	$ 846

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Subsequent Events - Additional Information (Detail) (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014
FCBC Financial Corp [Member]
Subsequent Event [Line Items]
Amount payable in cash	$ 23.50
TCNB Financial Corp [Member]
Subsequent Event [Line Items]
Common shares outstanding	733,000
Other common shares agreed to be cashed out	3,500
Aggregate cash consideration to be paid	$ 17.2
Total consolidated assets	102.5
Total loan	78.2
Total deposits	$ 90.4

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Allowance for Loan Losses - Impaired Financing Receivables - Average Recorded Investment and Interest Income Recognized (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Financing Receivable, Impaired [Line Items]
Impaired financing receivables, Average Recorded Investment, Total	$ 15,319	$ 22,051
Impaired financing receivables, Interest Income Recognized, Total	570	989
Commercial and Agriculture [Member]
Financing Receivable, Impaired [Line Items]
Impaired financing receivables, Average Recorded Investment, Total	3,316	4,761
Impaired financing receivables, Interest Income Recognized, Total	104	186
Commercial Real Estate Owner Occupied [Member]
Financing Receivable, Impaired [Line Items]
Impaired financing receivables, Average Recorded Investment, Total	5,720	6,064
Impaired financing receivables, Interest Income Recognized, Total	219	436
Commercial Real Estate Non Owner Occupied [Member]
Financing Receivable, Impaired [Line Items]
Impaired financing receivables, Average Recorded Investment, Total	2,767	5,855
Impaired financing receivables, Interest Income Recognized, Total	40	85
Residential Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Impaired financing receivables, Average Recorded Investment, Total	3,510	5,038
Impaired financing receivables, Interest Income Recognized, Total	207	282
Real Estate Construction [Member]
Financing Receivable, Impaired [Line Items]
Impaired financing receivables, Average Recorded Investment, Total		302
Consumer and Other [Member]
Financing Receivable, Impaired [Line Items]
Impaired financing receivables, Average Recorded Investment, Total	$ 6	$ 31

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Securities Sold Under Agreements to Repurchase - Schedule of Securities Sold Under Agreements to Repurchase (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Debt Disclosure [Abstract]
Outstanding balance at year end	$ 21,613	$ 20,053
Average balance during the year	19,759	20,749
Average interest rate during the year	0.10%	0.10%
Maximum month-end balance during the year	$ 33,764	$ 24,257
Weighted average interest rate at year end	0.10%	0.10%

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Securities - Amortized Cost and Fair Value of Securities by Contractual Maturity (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Investments, Debt and Equity Securities [Abstract]
Due in one year or less, Amortized Cost	$ 628
Due from one to five years, Amortized Cost	27,702
Due from five to ten years, Amortized Cost	34,718
Due after ten years, Amortized Cost	63,077
Mortgage-backed securities in government sponsored entities, Amortized Cost	65,646
Equity securities in financial institutions, Amortized Cost	481
Amortized Cost	192,252	199,094
Due in one year or less, Fair Value	629
Due from one to five years, Fair Value	27,723
Due from five to ten years, Fair Value	36,191
Due after ten years, Fair Value	66,380
Mortgage-backed securities in government sponsored entities, Fair Value	66,442
Equity securities in financial institutions, Fair Value	540
Total securities available for sale, Fair Value	$ 197,905	$ 199,613

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Commitments, Contingencies and Off-Balance-Sheet Risk - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Maximum period of commitments to make loans	1 year
Maximum time period of maturities	30 years
Average reserve balance under Federal Reserve Board requirements	$ 3,259	$ 2,959
Minimum [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Range of fixed interest rate loan commitments	3.05%	3.05%
Maximum [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Range of fixed interest rate loan commitments	8.75%	13.75%

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Premises and Equipment - Year-End Premises and Equipment (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	$ 35,085	$ 40,515
Accumulated depreciation	(20,685)	(24,202)
Premises and equipment, net	14,400	16,313
Land and Improvements [Member]
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	3,770	4,083
Buildings and Improvements [Member]
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	17,373	19,681
Furniture and equipment [Member]
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	$ 13,942	$ 16,751

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Short-Term Borrowings - Additional Information (Detail) (USD $)	Dec. 31, 2013
Equity Method Investments And Cost Method Investments [Abstract]
Outstanding short-term borrowings	$ 0

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Goodwill and Intangible Assets - Schedule of Estimated Amortization Expense (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
2015	$ 554
2016	522
2017	447
Thereafter	0
Estimated amortization expense	$ 1,523

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Federal Home Loan Bank Advances - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Banking and Thrift [Abstract]
Advances from FHLB	$ 22,500	$ 37,726
Maturities from June 2014through January 2017, fixed rates, minimum	1.50%
Maturities from June 2014through January 2017, fixed rates, maximum	4.25%
Maturities from June 2014through January 2017, fixed rates, averaging	2.24%
Maturities, year from	2015
Maturities, year to	2019
Outstanding letters of credit with FHLB	22,700	23,300
FHLB borrowings collateralized by residential mortgage loans	131,850	91,540
FHLB maximum borrowing capacity	124,741
FHLB remaining borrowing capacity	$ 36,841

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Premises and Equipment - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Property, Plant and Equipment [Abstract]
Depreciation	$ 1,176	$ 1,334
Rent expense	$ 377	$ 367

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Allowance for Loan Losses - Schedule of Troubled Debt Restructurings (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014 Contract	Dec. 31, 2013 Contract
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number of Contracts	10	2
Pre-Modification Outstanding Recorded Investment	$ 654	$ 547
Post-Modification Outstanding Recorded Investment	589	547
Commercial Real Estate Owner Occupied [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number of Contracts		2
Pre-Modification Outstanding Recorded Investment		547
Post-Modification Outstanding Recorded Investment		547
Residential Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number of Contracts	9
Pre-Modification Outstanding Recorded Investment	619
Post-Modification Outstanding Recorded Investment	554
Real Estate Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number of Contracts	1
Pre-Modification Outstanding Recorded Investment	35
Post-Modification Outstanding Recorded Investment	$ 35

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Commitments, Contingencies and Off-Balance Sheet Risk

12 Months Ended

Dec. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments, Contingencies and Off-Balance Sheet Risk

NOTE 17—COMMITMENTS, CONTINGENCIES AND OFF-BALANCE-SHEET RISK

Some financial instruments, such as loan commitments, credit lines, letters of credit, and overdraft protection are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used. Off-balance-sheet risk to credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment.

The contractual amount of financial instruments with off-balance-sheet risk was as follows at year-end.

	2014				2013
	Fixed Rate		Variable Rate		Fixed Rate		Variable Rate
Commitments to extend credit:
Lines of credit and construction loans	$	9,405	$	160,718	$	11,866	$	151,332
Overdraft protection		4		22,122		18		21,084
Letters of credit		200		1,007		200		2,411
	$	9,609	$	183,847	$	12,084	$	174,827

Commitments to make loans are generally made for a period of one year or less. Fixed-rate loan commitments included above had interest rates ranging from 3.05% to 8.75% at December 31, 2014 and 3.05% to 13.75% at December 31, 2013, respectively. Maturities extend up to 30 years.

Citizens is required to maintain certain reserve balances on hand in accordance with the Federal Reserve Board requirements. The average reserve balance maintained in accordance with such requirements was $3,259 on December 31, 2014 and $2,959 on December 31, 2013.

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Parent Company Only Condensed Financial Information (Tables)

12 Months Ended

Dec. 31, 2014

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Schedule of Condensed Balance Sheets

Condensed Balance Sheets	2014			2013
Assets:
Cash	$	13,663		$	32,572
Securities available for sale		540			449
Investment in bank subsidiary		117,364			111,121
Investment in nonbank subsidiaries		12,605			12,595
Other assets		3,003			5,210
Total assets	$	147,175		$	161,947
Liabilities and Shareholders’ Equity:
Deferred income taxes and other liabilities	$	1,839		$	4,144
Subordinated debentures		29,427			29,427
Preferred stock		23,132			46,316
Common stock		114,365			114,365
Accumulated deficit		(4,306	)		(10,823	)
Treasury Stock		(17,235	)		(17,235	)
Accumulated other comprehensive loss		(47	)		(4,247	)
Total liabilities and shareholders’ equity	$	147,175		$	161,947

Schedule of Condensed Statements of Operations

	For the years ended December 31,
Condensed Statements of Operations	2014			2013
Dividends from bank subsidiaries	$	7,339		$	7,888
Interest expense		(777	)		(740	)
Pension expense		(236	)		(1,821	)
Pension settlement expense		(161	)		(2,251	)
Other expense, net		(1,150	)		(952	)
Income before equity in undistributed net earnings of subsidiaries		5,015			2,124
Income tax benefit		763			1,960
Equity in undistributed net earnings of subsidiaries		3,750			2,095
Net income	$	9,528		$	6,179

Schedule of Condensed Statements of Cash Flows

For the years ended December 31,
Condensed Statements of Cash Flows	2014			2013
Operating activities:
Net income	$	9,528		$	6,179
Adjustment to reconcile net income to net cash provided by operating activities:
Change in other assets and other liabilities		1,508			(1,620	)
Equity in undistributed net earnings of subsidiaries		(3,750	)		(2,095	)
Net cash from operating activities		7,286			2,464
Financing activities:
Payment to repurchase preferred stock		(22,857	)		—
Proceeds from issuance of preferred stock		—			23,132
Cash dividends paid		(3,338	)		(2,315	)
Net cash provided by (used for) financing activities		(26,195	)		20,817
Net change in cash and cash equivalents		(18,909	)		23,281
Cash and cash equivalents at beginning of year		32,572			9,291
Cash and cash equivalents at end of year	$	13,663		$	32,572

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Federal Home Loan Bank Advances (Tables)

12 Months Ended

Dec. 31, 2014

Banking and Thrift [Abstract]

Scheduled Principal Reductions of Federal Home Loan Bank Advances

Scheduled principal reductions of FHLB advances at December 31, 2014 were as follows.

2015	$	5,000
2017		2,500
2018		10,000
2019		5,000
Total	$	22,500

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Other Comprehensive Income - Amounts Reclassified Out of Each Component of Accumulated Other Comprehensive Income Loss (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income taxes	$ (3,162)	$ (1,373)
Net income available to common shareholders	7,655	5,020
Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net income available to common shareholders	(145)	(2,773)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gains and Losses on Available-for-Sale Securities [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Unrealized gains on available-for-sale securities	113	204
Income taxes	(38)	(69)
Net income available to common shareholders	75	135
Reclassification out of Accumulated Other Comprehensive Income [Member] | Defined Benefit Pension Items [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Actuarial losses	(334)	(4,406)
Income taxes	114	1,498
Net income available to common shareholders	$ (220)	$ (2,908)

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Retirement Plans - Information about Pension Plan (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Change in benefit obligation:
Beginning benefit obligation	$ 18,456	$ 21,604
Service cost	306	1,204
Interest cost	639	884
Curtailment gain	(4,039)
Settlement loss	55	821
Actuarial (gain)/loss	3,007	(1,272)
Benefits paid	(1,471)	(4,785)
Ending benefit obligation	16,953	18,456
Change in plan assets, at fair value:
Beginning plan assets	15,466	13,441
Actual return	703	1,943
Employer contribution	1,515	4,900
Benefits paid	(1,471)	(4,785)
Administrative expenses	(29)	(33)
Ending plan assets	16,184	15,466
Funded status at end of year	$ (769)	$ (2,990)

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Other Comprehensive Income (Tables)

12 Months Ended

Dec. 31, 2014

Equity [Abstract]

Changes in Each Component of Accumulated Other Comprehensive Income Loss, Net of Tax

The following table presents the changes in each component of accumulated other comprehensive loss, net of tax, as of December 31, 2014 and December 31, 2013.

	For the Year Ended December 31, 2014									For the Year Ended December 31, 2013
	Unrealized Gains and Losses on Available for Sale Securities			Defined Benefit Pension Items			Total			Unrealized Gains and Losses on Available for Sale Securities			Defined Benefit Pension Items			Total
Beginning balance	$	341		$	(4,588	)	$	(4,247	)	$	5,849		$	(7,496	)	$	(1,647	)
Other comprehensive income (loss) before reclassifications		3,464			591			4,055			(5,373	)		—			(5,373	)
Amounts reclassified from accumulated other comprehensive loss		(75	)		220			145			(135	)		2,908			2,773
Net current-period other comprehensive income (loss)		3,389			811			4,200			(5,508	)		2,908			(2,600	)
Ending balance	$	3,730		$	(3,777	)	$	(47	)	$	341		$	(4,588	)	$	(4,247	)

Amounts Reclassified Out of Each Component of Accumulated Other Comprehensive Loss

The following table presents the amounts reclassified out of each component of accumulated other comprehensive loss as of December 31, 2014 and December 31, 2013:

	Amount Reclassified from Accumulated Other Comprehensive Loss (a)
Details about Accumulated Other Comprehensive Loss Components	For the year ended December 31, 2014			For the year ended December 31, 2013			Affected Line Item in the Statement Where Net Income is Presented
Unrealized gains on available-for-sale securities	$	113		$	204		Net gain on sale of securities
Tax effect		(38	)		(69	)	Income taxes
		75			135		Net of tax
Amortization of defined benefit pension items
Actuarial losses		(334	)(b)		(4,406	)(b)	Salaries, wages and benefits
Tax effect		114			1,498		Income taxes
		(220	)		(2,908	)	Net of tax
Total reclassifications for the period	$	(145	)	$	(2,773	)	Net of tax

(a) Amounts in parentheses indicate expenses and other amounts indicate income.

(b) These accumulated other comprehensive income components are included in the computation of net periodic pension cost.

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Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2014

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Financial Data

	Interest Income		Net Interest Income		Net Income		Basic Earnings per Common Share		Diluted Earnings per Common Share
2014
First quarter (2)(4)	$	11,315	$	10,165	$	2,712	$	0.27	$	0.22
Second quarter (1)(2)		11,365		10,266		2,240		0.24		0.21
Third quarter (1)(2)		11,667		10,684		2,306		0.25		0.21
Fourth quarter (1)(2)		11,623		10,751		2,270		0.23		0.21
2013
First quarter (2)(3)(4)	$	11,286	$	9,987	$	1,913	$	0.21	$	0.21
Second quarter (2)(3)(5)		11,025		9,781		1,657		0.18		0.18
Third quarter (2)(3)		11,127		9,917		1,566		0.17		0.17
Fourth quarter (2)(3)(6)(7)		11,443		10,289		1,043		0.09		0.08

(1) Interest income and net interest income increased due to loan volume.

(2) Interest expense decreased as deposits repriced downward and the deposit mix shifted toward cheaper funding sources.

(3) Interest income decreased as loans repriced downward.

(4) Net income increased due to fees on tax refund program.

(5) Net interest income and net income decreased due to reversed late charges.

(6) Interest income and net interest income increased due to increased loan volume.

(7) Net income decreased due to non cash charge to pension plan.

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Allowance for Loan Losses - Credit Exposures by Internally Assigned Grades (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	$ 741,548	$ 707,769
Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	700,407	660,308
Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	15,959	12,190
Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	25,182	32,922
Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade		2,349
Commercial and Agriculture [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	114,186	115,875
Commercial and Agriculture [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	107,903	107,923
Commercial and Agriculture [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	3,446	2,038
Commercial and Agriculture [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	2,837	5,914
Commercial Real Estate Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	143,014	161,014
Commercial Real Estate Owner Occupied [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	128,222	143,531
Commercial Real Estate Owner Occupied [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	5,492	4,334
Commercial Real Estate Owner Occupied [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	9,300	13,149
Commercial Real Estate Non Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	308,666	282,832
Commercial Real Estate Non Owner Occupied [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	298,237	272,407
Commercial Real Estate Non Owner Occupied [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	6,305	4,811
Commercial Real Estate Non Owner Occupied [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	4,124	5,614
Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	110,341	110,210
Residential Real Estate [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	100,810	98,700
Residential Real Estate [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	697	986
Residential Real Estate [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	8,834	8,175
Residential Real Estate [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade		2,349
Real Estate Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	59,644	35,516
Real Estate Construction [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	59,584	35,495
Real Estate Construction [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	19	21
Real Estate Construction [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	41
Consumer and Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	5,697	2,322
Consumer and Other [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	5,651	2,252
Consumer and Other [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	$ 46	$ 70

XML

Parent Company Only Condensed Financial Information - Schedule of Condensed Balance Sheets (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Assets:
Securities available for sale	$ 197,905	$ 199,613
Other assets	8,209	9,350
Total assets	1,213,191	1,167,546
Liabilities and Shareholders' Equity:
Subordinated debentures	29,427	29,427
Common stock	114,365	114,365
Accumulated deficit	(4,306)	(10,823)
Treasury Stock	(17,235)	(17,235)
Accumulated other comprehensive loss	(47)	(4,247)	(1,647)
Total liabilities and shareholders' equity	1,213,191	1,167,546
FCBC [Member]
Assets:
Cash	13,663	32,572	9,291
Securities available for sale	540	449
Investment in bank subsidiary	117,364	111,121
Investment in nonbank subsidiaries	12,605	12,595
Other assets	3,003	5,210
Total assets	147,175	161,947
Liabilities and Shareholders' Equity:
Deferred income taxes and other liabilities	1,839	4,144
Subordinated debentures	29,427	29,427
Preferred stock	23,132	46,316
Common stock	114,365	114,365
Accumulated deficit	(4,306)	(10,823)
Treasury Stock	(17,235)	(17,235)
Accumulated other comprehensive loss	(47)	(4,247)
Total liabilities and shareholders' equity	$ 147,175	$ 161,947

XML

Loans - Loans at Year-End (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	$ 914,857	$ 861,241
Allowance for loan losses	(14,268)	(16,528)
Net loans	900,589	844,713
Commercial and Agriculture [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	114,186	115,875
Commercial Real Estate Owner Occupied [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	143,014	161,014
Commercial Real Estate Non Owner Occupied [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	308,666	282,832
Residential Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	268,510	250,691
Real Estate Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	65,452	39,964
Consumer and Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	$ 15,029	$ 10,865

XML

Fair Value Measurement (Tables)

12 Months Ended

Dec. 31, 2014

Fair Value Disclosures [Abstract]

Assets Measured at Fair Value

Assets measured at fair value are summarized below.

Fair Value Measurements at December 31, 2014 Using:
	(Level 1)		(Level 2)		(Level 3)
Assets measured at fair value on a recurring basis:
U.S. Treasury securities and obligations of U.S. Government agencies	$	—	$	42,902	$	—
Obligations of states and political subdivisions		—		88,021		—
Mortgage-backed securities in government sponsored entities		—		66,442		—
Equity securities in financial institutions		—		540		—
Fair value swap asset		—		1,721		—
Fair value swap liability		—		1,721		—
Assets measured at fair value on a nonrecurring basis:
Impaired Loans	$	—	$	—	$	10,126
Other Real Estate Owned		—		—		560

Fair Value Measurements at December 31, 2013 Using:
	(Level 1)		(Level 2)		(Level 3)
Assets measured at fair value on a recurring basis:
U.S. Treasury securities and obligations of U.S. Government agencies	$	—	$	51,560	$	—
Obligations of states and political subdivisions		—		80,625		—
Mortgage-backed securities in government sponsored entities		—		66,979		—
Equity securities in financial institutions		—		449		—
Fair value of swap asset		—		286		—
Fair value of swap liability		—		286		—
Assets measured at fair value on a nonrecurring basis:
Impaired Loans	$	—	$	—	$	15,548
Other Real Estate Owned		—		—		173

Quantitative Information about Level 3 Fair Value Measurements

The following tables presents quantitative information about the Level 3 significant unobservable inputs for assets and liabilities measured at fair value on a nonrecurring basis at December 31, 2014 and 2013.

	Quantitative Information about Level 3 Fair Value Measurements
December 31, 2014	Fair Value		Valuation Technique	Unobservable Input	Range
Impaired loans	$	10,126	Appraisal of collateral	Appraisal adjustments	10% -30%
				Liquidation expense	0% - 10%
				Holding period	0 -30 months
			Discounted cash flows	Discount rates	3.8% - 8.0%
Other real estate owned	$	560	Appraisal of collateral	Appraisal adjustments	10% - 30%
				Liquidation expense	0% - 10%

	Quantitative Information about Level 3 Fair Value Measurements
December 31, 2013	Fair Value		Valuation Technique	Unobservable Input	Range
Impaired loans	$	15,548	Appraisal of collateral	Appraisal adjustments	10% - 30%
				Liquidation expense	0% - 10%
				Holding period	0 - 30 months
			Discounted cash flows	Discount rates	2% - 8.5%
Other real estate owned	$	173	Appraisal of collateral	Appraisal adjustments	10% - 30%
				Liquidation expense	0% - 10%

Carrying Amount and Fair Values of Financial Instruments

The carrying amount and fair value of financial instruments were as follows.

December 31, 2014	Carrying Amount		Total Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from financial institutions	$	29,858	$	29,858	$	29,858	$	—	$	—
Securities available for sale		197,905		197,905		—		197,905		—
Loans, held for sale		2,410		2,410		2,410		—		—
Loans, net of allowance for loan losses		900,589		908,118		—		—		908,118
Other securities		12,586		12,586		12,586		—		—
Bank owned life insurance		19,637		19,637		19,637		—		—
Accrued interest receivable		3,852		3,852		3,852		—		—
Swap asset		1,721		1,721		—		1,721		—
Financial Liabilities:
Nonmaturing deposits		748,948		748,948		748,948		—		—
Time deposits		219,970		221,263		—		—		221,263
Federal Home Loan Bank advances		65,200		65,399		—		—		65,399
Securities sold under agreement to repurchase		21,613		21,613		21,613		—		—
Subordinated debentures		29,427		24,688		—		—		24,688
Accrued interest payable		126		126		126		—		—
Swap liability		1,721		1,721		—		1,721		—

December 31, 2013	Carrying Amount		Total Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from financial institutions	$	34,186	$	34,186	$	34,186	$	—	$	—
Securities available for sale		199,613		199,613		—		199,613		—
Loans, held for sale		438		438		438		—		—
Loans, net of allowance for loan losses		844,713		861,252		—		—		861,252
Other securities		15,424		15,424		15,424		—		—
Bank owned life insurance		19,145		19,145		19,145		—		—
Accrued interest receivable		3,881		3,881		3,881		—		—
Fair value swap asset		286		286		—		286		—
Financial Liabilities:
Nonmaturing deposits		706,126		706,126		706,126		—		—
Time deposits		236,349		237,837		—		—		237,837
Federal Home Loan Bank advances		37,726		38,767		—		—		38,767
Securities sold under agreement to repurchase		20,053		20,053		20,053		—		—
Subordinated debentures		29,427		20,605		—		—		20,605
Accrued interest payable		156		156		156		—		—
Fair value swap liability		286		286		—		286		—

XML

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2014

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of the accounting policies adopted by First Citizens Banc Corp, which have a significant effect on the financial statements.

Nature of Operations and Principles of Consolidation: The Consolidated Financial Statements include the accounts of First Citizens Banc Corp (FCBC) and its wholly-owned subsidiaries: The Citizens Banking Company (Citizens), First Citizens Insurance Agency, Inc., Water Street Properties, Inc. (Water St.) and FC Refund Solutions, Inc. (FCRS). First Citizens Capital LLC (FCC) is wholly-owned by Citizens and holds inter-company debt. First Citizens Investments, Inc. (FCI) is wholly-owned by Citizens and holds and manages its securities portfolio. The operations of FCI and FCC are located in Wilmington, Delaware. The above companies together are sometimes referred to as the Company. Intercompany balances and transactions are eliminated in consolidation.

The Company provides financial services through its offices in the Ohio counties of Erie, Crawford, Champaign, Franklin, Logan, Summit, Huron, Ottawa, Madison and Richland. Its primary deposit products are checking, savings, and term certificate accounts, and its primary lending products are residential mortgage, commercial, and installment loans. Substantially all loans are secured by specific items of collateral including business assets, consumer assets and commercial and residential real estate. Commercial loans are expected to be repaid from cash flow from operations of businesses. There are no significant concentrations of loans to any one industry or customer. However, the customer’s ability to repay their loans is dependent on the real estate and general economic conditions in the area. Other financial instruments that potentially represent concentrations of credit risk include deposit accounts in other financial institutions.

First Citizens Insurance Agency Inc. was formed to allow the Company to participate in commission revenue generated through its third party insurance agreement. Insurance commission revenue was less than 1.0% of total revenue for the years ended December 31, 2014 and 2013. Water St. was formed to hold repossessed assets of FCBC’s subsidiaries. Water St. revenue was less than 1% of total revenue for the years ended December 31, 2014 and 2013. FCRS was formed in 2012 and remained inactive for the periods presented.

Use of Estimates: To prepare financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and future results could differ. The allowance for loan losses, determination of goodwill impairment, fair values of financial instruments, valuation of deferred tax assets, pension obligations and other-than-temporary-impairment of securities are considered material estimates that are particularly susceptible to significant change in the near term.

Cash Flows: Cash and cash equivalents include cash on hand and demand deposits with financial institutions with original maturities fewer than 90 days. Net cash flows are reported for customer loan and deposit transactions, interest bearing deposits in other financial institutions, and federal funds purchased or sold and repurchase agreements.

Securities: Debt securities are classified as available-for-sale when they might be sold before maturity. Equity securities with readily determinable fair values are also classified as available for sale. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax.

Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage backed securities where prepayments are anticipated. Gains and losses on sales are based on the amortized cost of the security sold using the specific identification method.

The recent guidance specifies that if (a) a company does not have the intent to sell a debt security prior to recovery and (b) it is more-likely-than-not that it will not have to sell the debt security prior to recovery; the security would not be considered other-than-temporarily impaired unless there is a credit loss. When an entity does not intend to sell the security, and it is more-likely-than-not the entity will not have to sell the security before recovery of its cost basis, it will recognize the credit component of other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. For held-to-maturity debt securities, the amount of other-than-temporary impairment recorded in other comprehensive income for the noncredit portion of a previous other-than-temporary impairment should be amortized prospectively over the remaining life of the security on the basis of the timing of future estimated cash flows of the security.

For available-for-sale debt securities that management has no intent to sell and believes that it more-likely-than-not will not be required to sell prior to recovery, only the credit loss component of the impairment is recognized in earnings, while the non-credit loss is recognized in accumulated other comprehensive income. The credit loss component recognized in earnings is identified as the amount of principal cash flows not expected to be received over the remaining term of the security as projected based on cash flow projections.

Other securities which include Federal Home Loan Bank (FHLB) stock, Federal Reserve Bank (FRB) stock, Farmer Mac stock (FMS), Bankers’ Bancshares Inc. (BB) stock, and Norwalk Community Development Corp (NCDC) stock are carried at cost.

Loans Held for Sale: Mortgage loans originated and intended for sale in the secondary market and loans that management no longer intends to hold for the foreseeable future, are carried at the lower of aggregate cost or market, as determined by outstanding commitments from investors. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings.

Loans: Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of deferred loan fees and costs, and an allowance for loan losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments.

Interest income on mortgage and commercial loans is discontinued at the time the loan is 90 days delinquent unless the credit is well-secured and in process of collection. Interest income on consumer loans is discontinued when management determines future collection is unlikely. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful.

All interest accrued, but not received, for loans placed on nonaccrual, is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Purchased Loans: The Company purchases individual loans and groups of loans. Purchased loans that show evidence of credit deterioration since origination are recorded at the amount paid (or allocated fair value in a purchase business combination), such that there is no carryover of the seller’s allowance for loan losses. After acquisition, incurred losses are recognized by an increase in the allowance for loan losses.

Purchased loans are accounted for individually or aggregated into pools of loans based on common risk characteristics (e.g., credit score, loan type, and date of origination). The Company estimates the amount and timing of expected cash flows for each purchased loan or pool, and the expected cash flows in excess of amount paid is recorded as interest income over the remaining life of the loan or pool (accretable yield). The excess of the loan’s, or pool’s, contractual principal and interest over expected cash flows is not recorded (nonaccretable difference).

Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded. If the present value of expected future cash flows is greater than the carrying amount, it is recognized as part of future interest income.

Allowance for Loan Losses: The allowance for loan losses (allowance) is calculated with the objective of maintaining a reserve sufficient to absorb inherent loan losses in the loan portfolio. Management establishes the allowance for loan losses based upon its evaluation of the pertinent factors underlying the types and quality of loans in the portfolio. In determining the allowance and the related provision for loan losses, the Company considers three principal elements: (i) specific impairment reserve allocations (valuation allowances) based upon probable losses identified during the review of impaired loans in the Commercial loan portfolio, (ii) allocations established for adversely-rated loans in the Commercial loan portfolio and nonaccrual Real Estate Residential, Consumer installment and Home Equity loans, (iii) allocations on all other loans based principally on a two-year historical loan loss experience and loan loss trends. These allocations are adjusted for consideration of general economic and business conditions, credit quality and delinquency trends, collateral values, and recent loss experience for these similar pools of loans. The Company analyzes its loan portfolio each quarter to determine the appropriateness of its allowance for loan losses.

All commercial loans and commercial real estate loans are monitored on a regular basis with a detailed loan review completed for all loans greater than $500. All commercial loans and commercial real estate loans that are 90 days past due or in nonaccrual status, are analyzed to determine if they are “impaired”, which means that it is probable that all amounts will not be collected according to the contractual terms of the loan agreement. All loans that are delinquent 90 days are classified as substandard and placed on nonaccrual status unless they are well-secured and in the process of collection. The remaining loans are evaluated and segmented with loans with similar risk characteristics. The Company allocates reserves based on risk categories and portfolio segments described below, which conform to the Company’s asset classification policy. In reviewing risk within Citizens’ loan portfolio, management has identified specific segments to categorize loan portfolio risk: (i) Commercial & Agriculture loans; (ii) Commercial Real Estate loans; (iii) Residential Real Estate loans; (iv) Real Estate Construction loans; (vi) Home Equity Lines of Credit (HELOC); (vii) Indirect Auto loans; and (vii) Consumer and Other loans. Additional information related to economic factors can be found in Note 4.

Loan Charge-off Policies: All unsecured open- and closed-ended retail loans that become past due 90 days from the contractual due date are charged off in full. In lieu of charging off the entire loan balance, loans with non real estate collateral may be written down to the net realizable value of the collateral, if repossession of collateral is assured and in process. For open- and closed-ended loans secured by residential real estate, a current assessment of value is made no later than 180 days past due. Any outstanding loan balance in excess of the net realizable value of the property is charged off. All other loans are generally charged down to the net realizable value when Citizens recognizes the loan is permanently impaired, which is generally after the loan is 90 days past due.

Troubled Debt Restructurings: In certain situations based on economic or legal reasons related to a borrower’s financial difficulties, management may grant a concession for other than an insignificant period of time to the borrower that would not otherwise be considered. The related loan is classified as a troubled debt restructuring (TDR). Management strives to identify borrowers in financial difficulty early and work with them to modify to more affordable terms before their loan reaches nonaccrual status. These modified terms may include rate reductions, principal forgiveness, payment forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. In cases where borrowers are granted new terms that provide for a reduction of either interest or principal, management measures any impairment on the restructuring as noted above for impaired loans. In addition to the allowance for the pooled portfolios, management has developed a separate reserve for loans that are identified as impaired through a TDR. These loans are excluded from pooled loss forecasts and a separate reserve is provided under the accounting guidance for loan impairment. Consumer loans whose terms have been modified in a TDR are also individually analyzed for estimated impairment.

Other Real Estate: Other real estate acquired through or instead of loan foreclosure is initially recorded at fair value less costs to sell when acquired, establishing a new cost basis and any deficiency in the value is charged off through the allowance. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. Operating costs after acquisition are expensed. Other real estate owned included in other assets totaled approximately $560 at December 31, 2014 and $173 at December 31, 2013.

Premises and Equipment: Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed using both accelerated and straight-line methods over the estimated useful life of the asset, ranging from three to seven years for furniture and equipment and seven to fifty years for buildings and improvements.

Federal Home Loan Bank (FHLB) Stock: Citizens is a member of the FHLB of Cincinnati and as such, is required to maintain a minimum investment in stock of the FHLB that varies with the level of advances outstanding with the FHLB. The stock is bought from and sold to the FHLB based upon its $100 par value. The stock does not have a readily determinable fair value and as such is classified as restricted stock, carried at cost and evaluated for impairment by management. The stock’s value is determined by the ultimate recoverability of the par value rather than by recognizing temporary declines. The determination of whether the par value will ultimately be recovered is influenced by criteria such as the following: (a) the significance of the decline in net assets of the FHLB as compared to the capital stock amount and the length of time this situation has persisted (b) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance (c) the impact of legislative and regulatory changes on the customer base of the FHLB and (d) the liquidity position of the FHLB. With consideration given to these factors, management concluded that the stock was not impaired at December 31, 2014 or 2013.

Federal Reserve Bank (FRB) Stock: Citizens is a member of the Federal Reserve System. FRB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value.

Bank Owned Life Insurance (BOLI): Citizens has purchased BOLI policies on certain key executives. BOLI is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement.

Goodwill and Other Intangible Assets: Goodwill results from prior business acquisitions and represents the excess of the purchase price over the fair value of acquired tangible assets and liabilities and identifiable intangible assets. Goodwill is assessed at least annually for impairment and any such impairment will be recognized in the period identified.

Other intangible assets consist of core deposit intangibles arising from whole bank and branch acquisitions. These intangible assets are measured at fair value and then amortized on an accelerated method over their estimated useful lives, which range from five to twelve years.

Servicing Rights: Servicing rights are recognized as assets for the allocated value of retained servicing rights on loans sold. Servicing rights are initially recorded at fair value at the date of transfer. The valuation technique used is the present value of estimated future cash flows using current market discount rates. Servicing rights are amortized in proportion to, and over the period of, estimated net servicing revenues. Impairment is evaluated based on the fair value of the rights, using groupings of the underlying loans as to interest rates and then, secondarily, prepayment characteristics. Fair value is determined using prices for similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. Any impairment of a grouping is reported as a valuation allowance to the extent that fair value is less than the capitalized asset for the grouping.

Long-term Assets: Premises and equipment, core deposit and other intangible assets, and other long-term assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value.

Repurchase Agreements: Substantially all repurchase agreement liabilities represent amounts advanced by various customers. Securities are pledged to cover these liabilities, which are not covered by federal deposit insurance.

Loan Commitments and Related Financial Instruments: Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay.

Income Taxes: Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax basis of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized.

The Company prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Benefits from tax positions should be recognized in the financial statements only when it is more likely than not that the tax position will be sustained upon examination by the appropriate taxing authority that would have full knowledge of all relevant information.

A tax position that meets the more-likely-than-not recognition threshold is measured at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not recognition threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. The Company recognizes interest and/or penalties related to income tax matters in income tax expense.

Retirement Plans: Pension expense is the net of service and interest cost, expected return on plan assets and amortization of gains and losses not immediately recognized. Employee 401(k) and profit sharing plan expense is the amount of matching contributions. Deferred compensation allocates the benefits over the years of service.

Earnings per Common Share: Basic earnings per share are net income available to common shareholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share include the dilutive effect of additional potential common shares issuable related to convertible preferred shares. Treasury shares are not deemed outstanding for earnings per share calculations.

Comprehensive Income: Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available for sale and changes in the funded status of the pension plan.

Loss Contingencies: Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there now are such matters that will have a material effect on the financial statements.

Restrictions on Cash: Cash on hand or on deposit with the Federal Reserve Bank was required to meet regulatory reserve and clearing requirements. These balances do not earn interest.

Dividend Restriction: Banking regulations require maintaining certain capital levels and may limit the dividends paid by Citizens to FCBC or by FCBC to shareholders. Additional information related to dividend restrictions can be found in Note 18.

Fair Value of Financial Instruments: Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect these estimates.

Operating Segments: While the Company’s chief decision makers monitor the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Operating segments are aggregated into one as operating results for all segments are similar. Accordingly, all of the Company’s financial service operations are considered by management to be aggregated in one reportable operating segment.

Reclassifications: Some items in the prior year financial statements were reclassified to conform to the current presentation. Such reclassifications had no effect on net income or shareholders’ equity.

Derivative Instruments and Hedging Activities: The Company enters into interest rate swap agreements to facilitate the risk management strategies of a small number of commercial banking customers. All derivatives are accounted for in accordance with ASC-815,Derivatives and Hedging. The Company mitigates the risk of entering into these agreements by entering into equal and offsetting swap agreements with highly rated third party financial institutions. The swap agreements are free-standing derivatives and are recorded at fair value in the Company’s consolidated balance sheets. The Company is party to master netting arrangements with its financial institution counterparties; however, the Company does not offset assets and liabilities under these arrangements for financial statement presentation purposes because the Company does not currently intend to execute a setoff with its’ counterparties. The master netting arrangements provide for a single net settlement of all swap agreements, as well as collateral, in the event of default on, or termination of, any one contract. Collateral, usually in the form of marketable securities, is posted by the counterparty with net liability positions in accordance with contract thresholds.

Effect of Newly Issued but Not Yet Effective Accounting Standards:

In January 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-01, Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects. The amendments in this Update permit reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). The amendments in this Update should be applied retrospectively to all periods presented. A reporting entity that uses the effective yield method to account for its investments in qualified affordable housing projects before the date of adoption may continue to apply the effective yield method for those preexisting investments. The amendments in this Update are effective for public business entities for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. Adoption of this Update is not expected to have a significant impact on the Company’s financial statements.

In January 2014, the FASB issued ASU 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The amendments in this Update clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this Update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. An entity can elect to adopt the amendments in this Update using either a modified retrospective transition method or a prospective transition method. This Update is not expected to have a significant impact on the Company’s financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (a new revenue recognition standard). The Update’s core principle is that a company will recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this Update specifies the accounting for certain costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. This Update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is evaluating the effect of adopting this new accounting Update.

In June 2014, the FASB issued ASU 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. The amendments in this Update change the accounting for repurchase-to-maturity transactions to secured borrowing accounting. For repurchase financing arrangements, the amendments require separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in secured borrowing accounting for the repurchase agreement. The amendments also require enhanced disclosures. The accounting changes in this Update are effective for the first interim or annual period beginning after December 15, 2014. An entity is required to present changes in accounting for transactions outstanding on the effective date as a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. Earlier application is prohibited. The disclosure for certain transactions accounted for as a sale is required to be presented for interim and annual periods beginning after December 15, 2014, and the disclosure for repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions accounted for as secured borrowings is required to be presented for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015. The disclosures are not required to be presented for comparative periods before the effective date. This Update is not expected to have a significant impact on the Company’s financial statements.

In June 2014, the FASB issued ASU 2014-12, Compensation-Stock Compensation (Topic 718): Accounting for Share-Based Payments when the Terms of an Award Provide that a Performance Target Could Be Achieved After the Requisite Service Period. The amendments require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The amendments in this Update are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. Entities may apply the amendments in this Update either (a) prospectively to all awards granted or modified after the effective date or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. If retrospective transition is adopted, the cumulative effect of applying this Update as of the beginning of the earliest annual period presented in the financial statements should be recognized as an adjustment to the opening retained earnings balance at that date. Additionally, if retrospective transition is adopted, an entity may use hindsight in measuring and recognizing the compensation cost. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations.

In August 2014, the FASB issued ASU 2014-14, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40). The amendments in this Update require that a mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if the following conditions are met: (1) the loan has a government guarantee that is not separable from the loan before foreclosure, (2) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim, and (3) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The amendments in this Update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. This Update is not expected to have a significant impact on the Company’s financial statements.

In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40). The amendments in this Update provide guidance in accounting principles generally accepted in the United States of America about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The amendments in this Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. This Update is not expected to have a significant impact on the Company’s financial statements.

In November 2014, the FASB issued ASU 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity (a consensus of the FASB Emerging Issues Task Force). This Update clarifies how current U.S. GAAP should be interpreted in subjectively evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. Public business entities are required to implement the new requirements in fiscal years and interim periods within those fiscal years beginning after December 15, 2015. This Update is not expected to have a significant impact on the Company’s financial statements.

In November 2014, the FASB issued ASU 2014-17, Business Combinations (Topic 805): Pushdown Accounting. The amendments in this Update apply to the separate financial statements of an acquired entity and its subsidiaries that are a business or nonprofit activity (either public or nonpublic) upon the occurrence of an event in which an acquirer (an individual or an entity) obtains control of the acquired entity. An acquired entity may elect the option to apply pushdown accounting in the reporting period in which the change-in-control event occurs. If pushdown accounting is not applied in the reporting period in which the change-in-control event occurs, an acquired entity will have the option to elect to apply pushdown accounting in a subsequent reporting period to the acquired entity’s most recent change-in-control event. The amendments in this Update are effective on November 18, 2014. After the effective date, an acquired entity can make an election to apply the guidance to future change-in-control events or to its most recent change-in-control event. This Update is not expected to have a significant impact on the Company’s financial statements.

In January 2015, the FASB issued ASU 2015-01, Income Statement – Extraordinary and Unusual Items, as part of its initiative to reduce complexity in accounting standards. This Update eliminates from GAAP the concept of extraordinary items. The amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. This Update is not expected to have a significant impact on the Company’s financial statements.

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Derivative Hedging Instruments - Summary of Interest Rate Swap Transactions (Detail) (USD $)	12 Months Ended
	Dec. 31, 2014
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Net Exposure, Notional Amount	$ 0
Net Exposure, Impact of a 1 basis point change in interest rates	0.00%
Derivative Financial Instruments, Assets [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Net Exposure, Notional Amount	29,060,000
Weighted Average Rate Received(Paid)	5.47%
Net Exposure, Impact of a 1 basis point change in interest rates	19.00%
Repricing Frequency	Monthly
Derivative Financial Instruments, Liabilities [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Net Exposure, Notional Amount	$ (29,060,000)
Weighted Average Rate Received(Paid)	(5.47%)
Net Exposure, Impact of a 1 basis point change in interest rates	(19.00%)
Repricing Frequency	Monthly

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Loans - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Receivables [Abstract]
Deferred loan fees	$ 237	$ 365

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Securities Sold Under Agreements to Repurchase (Tables)

12 Months Ended

Dec. 31, 2014

Banking and Thrift [Abstract]

Schedule of Securities Sold Under Agreements to Repurchase

Information concerning securities sold under agreements to repurchase was as follows.

	2014			2013
Outstanding balance at year end	$	21,613		$	20,053
Average balance during the year		19,759			20,749
Average interest rate during the year		0.10	%		0.10	%
Maximum month-end balance during the year	$	33,764		$	24,257
Weighted average interest rate at year end		0.10	%		0.10	%

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Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2014

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Data (Unaudited)

NOTE 21—QUARTERLY FINANCIAL DATA (UNAUDITED)

	Interest Income		Net Interest Income		Net Income		Basic Earnings per Common Share		Diluted Earnings per Common Share
2014
First quarter (2)(4)	$	11,315	$	10,165	$	2,712	$	0.27	$	0.22
Second quarter (1)(2)		11,365		10,266		2,240		0.24		0.21
Third quarter (1)(2)		11,667		10,684		2,306		0.25		0.21
Fourth quarter (1)(2)		11,623		10,751		2,270		0.23		0.21
2013
First quarter (2)(3)(4)	$	11,286	$	9,987	$	1,913	$	0.21	$	0.21
Second quarter (2)(3)(5)		11,025		9,781		1,657		0.18		0.18
Third quarter (2)(3)		11,127		9,917		1,566		0.17		0.17
Fourth quarter (2)(3)(6)(7)		11,443		10,289		1,043		0.09		0.08

(1) Interest income and net interest income increased due to loan volume.

(2) Interest expense decreased as deposits repriced downward and the deposit mix shifted toward cheaper funding sources.

(3) Interest income decreased as loans repriced downward.

(4) Net income increased due to fees on tax refund program.

(5) Net interest income and net income decreased due to reversed late charges.

(6) Interest income and net interest income increased due to increased loan volume.

(7) Net income decreased due to non cash charge to pension plan.

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Earnings per Common Share

12 Months Ended

Dec. 31, 2014

Earnings Per Share [Abstract]

Earnings per Common Share

NOTE 20—EARNINGS PER COMMON SHARE

The factors used in the earnings per share computation follow.

	2014		2013
Basic
Net income	$	9,528	$	6,179
Preferred stock dividends		1,873		1,159
Net income available to common shareholders—basic	$	7,655	$	5,020
Weighted average common shares outstanding—basic		7,707,917		7,707,917
Basic earnings per share	$	0.99	$	0.65
Diluted
Net income available to common shareholders—basic	$	7,655	$	5,020
Preferred stock dividends on convertible preferred stock		1,606		—
Net income available to common shareholders—diluted	$	9,261	$	5,020
Weighted average common shares outstanding for earnings per common share basic		7,707,917		7,707,917
Add: dilutive effects of convertible preferred shares		3,196,931		113,863
Average shares and dilutive potential common shares outstanding—diluted		10,904,848		7,821,780
Diluted earnings per share	$	0.85	$	0.64

Basic earnings per common share are calculated by dividing net income by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share takes into consideration the pro forma dilution of unexercised stock option awards, computed using the treasury stock method.

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Retirement Plans - Schedule of Target Allocation and Expected Long-Term Rate of Return by Asset Category (Detail)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Defined Benefit Plan Disclosure [Line Items]
Percentage of Plan Assets at Year-end	100.00%	100.00%
Equity Securities in Financial Institutions [Member]
Defined Benefit Plan Disclosure [Line Items]
Target Allocation, minimum	20.00%
Target Allocation, maximum	50.00%
Percentage of Plan Assets at Year-end	46.70%	46.50%
Total Debt Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Target Allocation, minimum	30.00%
Target Allocation, maximum	60.00%
Percentage of Plan Assets at Year-end	48.30%	53.00%
Money Market Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Target Allocation, minimum	20.00%
Target Allocation, maximum	30.00%
Percentage of Plan Assets at Year-end	5.00%	0.50%

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Securities - Available for Sale Securities (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 192,252	$ 199,094
Gross Unrealized Gains	6,262	3,549
Gross Unrealized Losses	(609)	(3,030)
Total securities available for sale, Fair Value	197,905	199,613
U.S. Treasury Securities and Obligations of U.S. Government Agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	42,910	52,229
Gross Unrealized Gains	115	95
Gross Unrealized Losses	(123)	(764)
Total securities available for sale, Fair Value	42,902	51,560
Obligations of States and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	83,215	79,975
Gross Unrealized Gains	5,112	2,327
Gross Unrealized Losses	(306)	(1,677)
Total securities available for sale, Fair Value	88,021	80,625
Mortgage-backed Securities in Government Sponsored Entities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	65,646	66,409
Gross Unrealized Gains	976	1,127
Gross Unrealized Losses	(180)	(557)
Total securities available for sale, Fair Value	66,442	66,979
Total Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	191,771	198,613
Gross Unrealized Gains	6,203	3,549
Gross Unrealized Losses	(609)	(2,998)
Total securities available for sale, Fair Value	197,365	199,164
Equity Securities in Financial Institutions [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	481	481
Gross Unrealized Gains	59
Gross Unrealized Losses		(32)
Total securities available for sale, Fair Value	$ 540	$ 449

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Schedule of Income Tax

Income taxes were as follows.

	2014		2013
Current	$	3,151	$	11
Deferred		11		1,362
Income taxes	$	3,162	$	1,373

Effective Tax Rates Differ from Statutory Federal Income Tax Rate

Effective tax rates differ from the statutory federal income tax rate of 34% due to the following.

	2014			2013
Income taxes computed at the statutory federal tax rate	$	4,315		$	2,568
Add (subtract) tax effect of:
Nontaxable interest income, net of nondeductible interest expense		(824	)		(781	)
Low income housing tax credit		(303	)		(280	)
Cash surrender value of BOLI		(167	)		(189	)
Other		141			55
Income tax expense	$	3,162		$	1,373

Summary of Deferred Tax Assets and Liabilities

Year-end deferred tax assets and liabilities were due to the following.

	2014			2013
Deferred tax assets
Allowance for loan losses	$	4,851		$	5,620
Deferred compensation		1,386			1,223
Intangible assets		—			50
Pension costs		198			996
Impairment losses		—			146
Other		122			133
Deferred tax asset		6,557			8,168
Deferred tax liabilities
Tax depreciation in excess of book depreciation		(351	)		(466	)
Discount accretion on securities		(63	)		(77	)
Purchase accounting adjustments		(1,189	)		(1,465	)
FHLB stock dividends		(1,687	)		(2,249	)
Unrealized gain on securities available for sale		(1,922	)		(176	)
Other		(196	)		(174	)
Deferred tax liability		(5,408	)		(4,607	)
Net deferred tax asset	$	1,149		$	3,561

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Derivative Hedging Instruments

12 Months Ended

Dec. 31, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Hedging Instruments

NOTE 22—DERIVATIVE HEDGING INSTRUMENTS

To accommodate customer need and to support the Company’s asset/liability positioning, on occasion we enter into interest rate swaps with a customer and a bank counterparty. The Company enters into a floating rate loan and a fixed rate swap with our customer. Simultaneously, the Company enters into an offsetting fixed rate swap with a bank counterparty. In connection with each swap transaction, the Company agrees to pay interest to the customer on a notional amount at a variable interest rate and receive interest from the customer on the same notional amount at a fixed interest rate. At the same time, the Company agrees to pay a bank counterparty the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. These transactions allow the Company’s customer to effectively convert variable rate loans to fixed rate loans. Since the Company acts as an intermediary for its customer, changes in the fair value of the underlying derivative contracts offset each other and do not significantly impact the Company’s results of operations.

The following table summarizes the Company’s interest rate swap positions and the impact of a 1 basis point change in interest rates as of December 31, 2014

	Notional Amount			Weighted Average Rate Received/(Paid)			Impact of a 1 basis point change in interest rates			Repricing Frequency
Derivative Assets	$	29,060			5.47	%	$	19			Monthly
Derivative Liabilities		(29,060	)		-5.47	%		(19	)		Monthly
Net Exposure	$	—					$	—

The Company monitors and controls all derivative products with a comprehensive Board of Director approved commercial loan swap policy. All hedge transactions must be approved in advance by the Lenders Loan Committee or the Directors Loan Committee of the Board of Directors.

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Participation in the Treasury Capital Purchase Program

12 Months Ended

Dec. 31, 2014

Equity [Abstract]

Participation in the Treasury Capital Purchase Program

NOTE 23—PARTICIPATION IN THE TREASURY CAPITAL PURCHASE PROGRAM

On January 23, 2009, the Company completed the sale to the U.S. Treasury of $23,184 of newly-issued non-voting preferred shares as part of the Capital Purchase Program (CPP) enacted by the U.S. Treasury as part of the Troubled Assets Relief Program (TARP) under the Emergency Economic Stabilization Act of 2008 (EESA). To finalize the Company’s participation in the CPP, the Company and the Treasury entered into a Letter Agreement, dated January 23, 2009, including the Securities Purchase Agreement – Standard Terms attached thereto. Pursuant to the terms of the Securities Purchase Agreement, the Company issued and sold to Treasury (1) 23,184 shares of Fixed Rate Cumulative Perpetual Preferred Shares, Series A, each without par value and having a liquidation preference of $1,000 per share (Series A Preferred Shares), and (2) a Warrant to purchase 469,312 common shares of the Company, each without par value, at an exercise price of $7.41 per share. The Warrant had a ten-year term. All of the proceeds from the sale of the Series A Preferred Shares and the Warrant by the Company to the U.S. Treasury under the CPP qualified as Tier 1 capital for regulatory purposes. Under the standardized CPP terms, cumulative dividends on the Series A Preferred Shares accrued on the liquidation preference at a rate of 5% per annum for the first five years, and at a rate of 9% per annum thereafter. The Series A Preferred Shares had no maturity date and ranked senior to the common shares with respect to the payment of dividends and distributions and amounts payable upon liquidation, dissolution and winding up of the Company.

On July 3, 2012, the U.S. Treasury completed the sale of all 23,184 of the Preferred Shares to various investors pursuant to a modified “Dutch auction” process. On September 5, 2012, the Company completed the repurchase of the Warrant from the U.S. Treasury in accordance with the terms of the Securities Purchase Agreement for an aggregate purchase price of $563,174.

On December 19, 2013, the Company announced the completion of its public offering of 1,000,000 depositary shares, each representing a 1/40th ownership interest in a Noncumulative Redeemable Convertible Perpetual Preferred Share, Series B, of the Company with a liquidation preference of $1,000 per share (equivalent to $25.00 per depositary share). The Company sold the maximum of 1,000,000 depositary shares in the offering at $25.00 per depositary share, resulting in proceeds, net of $1,868 issuance costs, to the Company of $23,132.

Using proceeds from the sale of the depositary shares, the Company redeemed all of the Series A Preferred Shares for an aggregate purchase price of $22,857, which redemption was completed as of February 15, 2014.

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Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Cash flows from operating activities:
Net income	$ 9,528	$ 6,179
Adjustments to reconcile net income to net cash from operating activities
Security amortization, net	1,491	1,633
Depreciation	1,176	1,334
Amortization of intangible assets	769	846
Amortization of net deferred loan fees	(123)	(112)
Gain on sale of securities	(113)	(204)
Provision for loan losses	1,500	1,100
Loans originated for sale	(31,206)	(49,978)
Proceeds from sale of loans	29,893	51,874
Net gain on sale of loans	(659)	(461)
Net gain on sale of other real estate owned	(44)	(120)
Gain on sale of fixed assets	(60)	(107)
Increase in cash surrender value of bank owned life insurance	(492)	(555)
Decrease in prepaid FDIC Premium		1,775
Accrued interest payable	(30)	(29)
Accrued interest receivable	29	(172)
Deferred taxes	11	1,362
Other, net	3,216	(1,554)
Net cash from operating activities	14,886	12,811
Securities available for sale
Maturities, prepayments and calls	45,743	50,184
Sales	18,088	8,686
Purchases	(58,367)	(64,295)
Redemption of Federal Reserve stock		143
Purchases of Federal Reserve stock	(171)
Redemption of FHLB stock	3,009
Net loan originations	(53,562)	(48,272)
Loans purchased, installment	(4,382)	(1,898)
Proceeds from sale of OREO properties	349	699
Property and equipment purchases	(485)	(1,155)
Proceeds from sale of property and equipment	1,282	118
Net cash used for investing activities	(48,496)	(55,790)
Cash flows from financing activities:
Increase in deposits	26,443	16,086
Net proceeds from short-term FHLB advances	42,700
Repayment of long-term FHLB advances	(30,226)	(2,535)
Proceeds from long-term FHLB advances	15,000
Increase (decrease) in securities sold under repurchase agreements	1,560	(3,166)
Repayment of series A preferred stock	(22,857)
Common dividends paid	(1,465)	(1,156)
Preferred dividends paid	(1,873)	(1,159)
Net proceeds from issuance of preferred stock		23,132
Net cash provided by (used for) financing activities	29,282	31,202
Decrease in cash and due from financial institutions	(4,328)	(11,777)
Cash and due from financial institutions at beginning of year	34,186	45,963
Cash and due from financial institutions at end of year	29,858	34,186
Supplemental cash flow information:
Interest paid	4,134	4,936
Income taxes paid	1,745	1,010
Supplemental non-cash disclosures:
Transfer of loans from portfolio to other real estate owned	692	280
Transfer of loans from portfolio to held for sale		$ 4,756

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Subsequent Events

12 Months Ended

Dec. 31, 2014

Subsequent Events [Abstract]

Subsequent Events

NOTE 24—SUBSEQUENT EVENTS

On September 11, 2014, FCBC and TCNB Financial Corp. (“TCNB”) issued a press release announcing the signing of an Agreement and Plan of Merger (the “Merger Agreement”) by and among FCBC, FC Merger Corp. (“Merger Corp.”), a newly-formed Ohio corporation and wholly-owned subsidiary of FCBC, and TCNB pursuant to which FCBC will acquire TCNB and its wholly-owned subsidiary, The Citizens National Bank of Southwestern Ohio (“Citizens National”).

Under the terms of the Merger Agreement, FCBC has agreed to pay $23.50 in cash for each of the 733,000 outstanding TCNB common shares. In addition, FCBC has agreed to cash out all of the 3,500 outstanding TCNB stock options for an amount equal to the difference between $23.50 per share and the exercise price of the stock options. The aggregate cash consideration to be paid by FCBC in respect of the outstanding TCNB common shares and the cash-out of outstanding TCNB stock options is approximately $17.2 million.

It is anticipated that Citizens National will be merged with and into Citizens upon completion of the transaction. At that time, Citizens National’s three banking offices located in Dayton, Ohio will become branches of Citizens. As of December 31, 2014, TCNB and Citizens National had total consolidated assets of $102.5 million, total loans of $78.2 million and total deposits of $90.4 million.

First Citizens has received regulatory approval of the merger from the Board of Governors of the Federal Reserve System and the Ohio Department of Financial Institutions and the shareholders of TCNB have also approved the merger. The transaction closed at the close of business of March 6, 2015. Management is still in the process of determining the fair value adjustments that will be applied as part of the business combination accounting. As such, neither the selected pro forma balance sheet information nor the selected pro forma income statement information presented as follows includes the impact of fair value adjustments.

First Citizens Banc Corp and TCNB Financial Corp

Pro Forma Selected Balance Sheet Items (unaudited)

	2014		2013
ASSETS
Cash and due from financial institutions	$	22,898	$	27,481
Securities available for sale		205,819		208,082
Loans, net of allowance		978,802		921,597
Premises and equipment, net		16,285		18,317
LIABILITIES
Total deposits		1,059,286		1,032,755
Federal Home Loan Bank advances		62,589		37,726
Securities sold under agreements to repurchase		21,613		20,053
Subordinated debentures		29,427		29,427
SHAREHOLDERS’ EQUITY
Total shareholders’ equity		114,548		126,294

First Citizens Banc Corp and TCNB Financial Corp

Pro Forma Condensed Income Statement (unaudited)

	2014		2013
Total interest and dividend income		50,597		49,668
Total interest expense		4,440		5,280
Net interest income		46,157		44,388
Provision for loan losses		1,535		1,180
Net interest income after provision for loan losses		44,622		43,208
Total noninterest income		14,316		12,506
Total noninterest expense		45,220		46,833
Income before income taxes		13,718		8,881
Income taxes		3,483		1,710
Net income		10,235		7,171
Preferred stock dividends and discount accretion		1,873		1,159
Net income available to common shareholders	$	8,362	$	6,012
Earnings per common share, basic	$	1.08	$	0.78
Earnings per common share, diluted	$	0.91	$	0.77

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Interest-Bearing Deposits - Scheduled Maturities of Certificates of Deposit (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Banking and Thrift [Abstract]
2015	$ 115,336
2016	52,031
2017	31,715
2018	4,814
2019	10,750
Thereafter	5,324
Total	$ 219,970	$ 236,349

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Earnings per Common Share - Factors Used in Earnings Per Share Computation (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Basic
Net income	$ 2,270	$ 2,306	$ 2,240	$ 2,712	$ 1,043	$ 1,566	$ 1,657	$ 1,913	$ 9,528	$ 6,179
Preferred stock dividends									1,873	1,159
Net income available to common shareholders-basic									7,655	5,020
Weighted average common shares outstanding-basic									7,707,917	7,707,917
Basic earnings per share	$ 0.23	$ 0.25	$ 0.24	$ 0.27	$ 0.09	$ 0.17	$ 0.18	$ 0.21	$ 0.99	$ 0.65
Diluted
Net income available to common shareholders-basic									7,655	5,020
Preferred stock dividends on convertible preferred stock									1,606
Net income available to common shareholders-diluted									$ 9,261	$ 5,020
Weighted average common shares outstanding for earnings per common share basic									7,707,917	7,707,917
Add: dilutive effects of convertible preferred shares									3,196,931	113,863
Average shares and dilutive potential common shares outstanding-diluted									10,904,848	7,821,780
Diluted earnings per share	$ 0.21	$ 0.21	$ 0.21	$ 0.22	$ 0.08	$ 0.17	$ 0.18	$ 0.21	$ 0.85	$ 0.64

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Interest-Bearing Deposits (Tables)

12 Months Ended

Dec. 31, 2014

Text Block [Abstract]

Summary of Interest-Bearing Deposits

Interest-bearing deposits as of December 31, 2014 and 2013 were as follows.

	2014		2013
Demand	$	179,388	$	168,113
Statement and Passbook Savings		318,859		303,037
Certificates of Deposit:
In excess of $100		53,669		66,561
Other		139,531		139,586
Individual Retirement Accounts		26,770		30,202
Total	$	718,217	$	707,499

Scheduled Maturities of Certificates of Deposit

Scheduled maturities of certificates of deposit, including IRA’s at December 31, 2014 were as follows.

2015	$	115,336
2016		52,031
2017		31,715
2018		4,814
2019		10,750
Thereafter		5,324
Total	$	219,970

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Derivative Hedging Instruments (Tables)

12 Months Ended

Dec. 31, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Interest Rate Swap Transactions

The following table summarizes the Company’s interest rate swap positions and the impact of a 1 basis point change in interest rates as of December 31, 2014

	Notional Amount			Weighted Average Rate Received/(Paid)			Impact of a 1 basis point change in interest rates			Repricing Frequency
Derivative Assets	$	29,060			5.47	%	$	19			Monthly
Derivative Liabilities		(29,060	)		-5.47	%		(19	)		Monthly
Net Exposure	$	—					$	—

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Allowance for Loan Losses - Impaired Financing Receivables - Recorded Investment and Unpaid Principal Balances (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Financing Receivable, Impaired [Line Items]
Impaired financing receivables, with no related allowance recorded, Recorded Investment	$ 6,328	$ 8,718
Impaired financing receivables, with no related allowance recorded, Unpaid Principal Balance	8,463	10,142
Impaired financing receivables, with no related allowance recorded, Related Allowance	0	0
Impaired financing receivables, with an allowance recorded, Recorded Investment	4,821	9,339
Impaired financing receivables, with an allowance recorded, Unpaid Principal Balance	5,209	10,954
Impaired financing receivables, with an allowance recorded, Related Allowance	1,023	2,509
Impaired financing receivables, Recorded Investment, Total	11,149	18,057
Impaired financing receivables, Unpaid Principal Balance, Total	13,672	21,096
Impaired financing receivables, Related Allowance, Total	1,023	2,509
Commercial and Agriculture [Member]
Financing Receivable, Impaired [Line Items]
Impaired financing receivables, with no related allowance recorded, Recorded Investment	1,377	1,525
Impaired financing receivables, with no related allowance recorded, Unpaid Principal Balance	1,504	1,657
Impaired financing receivables, with no related allowance recorded, Related Allowance	0	0
Impaired financing receivables, with an allowance recorded, Recorded Investment	927	2,344
Impaired financing receivables, with an allowance recorded, Unpaid Principal Balance	1,056	2,437
Impaired financing receivables, with an allowance recorded, Related Allowance	641	1,262
Impaired financing receivables, Recorded Investment, Total	2,304	3,869
Impaired financing receivables, Unpaid Principal Balance, Total	2,560	4,094
Impaired financing receivables, Related Allowance, Total	641	1,262
Commercial Real Estate Owner Occupied [Member]
Financing Receivable, Impaired [Line Items]
Impaired financing receivables, with no related allowance recorded, Recorded Investment	2,961	2,891
Impaired financing receivables, with no related allowance recorded, Unpaid Principal Balance	3,327	3,027
Impaired financing receivables, with no related allowance recorded, Related Allowance	0	0
Impaired financing receivables, with an allowance recorded, Recorded Investment	596	3,901
Impaired financing receivables, with an allowance recorded, Unpaid Principal Balance	643	4,201
Impaired financing receivables, with an allowance recorded, Related Allowance	57	390
Impaired financing receivables, Recorded Investment, Total	3,557	6,792
Impaired financing receivables, Unpaid Principal Balance, Total	3,970	7,228
Impaired financing receivables, Related Allowance, Total	57	390
Commercial Real Estate Non Owner Occupied [Member]
Financing Receivable, Impaired [Line Items]
Impaired financing receivables, with no related allowance recorded, Recorded Investment	92	3,092
Impaired financing receivables, with no related allowance recorded, Unpaid Principal Balance	140	3,187
Impaired financing receivables, with no related allowance recorded, Related Allowance	0	0
Impaired financing receivables, with an allowance recorded, Recorded Investment	2,083	291
Impaired financing receivables, with an allowance recorded, Unpaid Principal Balance	2,287	295
Impaired financing receivables, with an allowance recorded, Related Allowance	20	55
Impaired financing receivables, Recorded Investment, Total	2,175	3,383
Impaired financing receivables, Unpaid Principal Balance, Total	2,427	3,482
Impaired financing receivables, Related Allowance, Total	20	55
Residential Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Impaired financing receivables, with no related allowance recorded, Recorded Investment	1,893	1,202
Impaired financing receivables, with no related allowance recorded, Unpaid Principal Balance	3,487	2,263
Impaired financing receivables, with no related allowance recorded, Related Allowance	0	0
Impaired financing receivables, with an allowance recorded, Recorded Investment	1,215	2,803
Impaired financing receivables, with an allowance recorded, Unpaid Principal Balance	1,223	4,021
Impaired financing receivables, with an allowance recorded, Related Allowance	305	802
Impaired financing receivables, Recorded Investment, Total	3,108	4,005
Impaired financing receivables, Unpaid Principal Balance, Total	4,710	6,284
Impaired financing receivables, Related Allowance, Total	305	802
Consumer and Other [Member]
Financing Receivable, Impaired [Line Items]
Impaired financing receivables, with no related allowance recorded, Recorded Investment	5	8
Impaired financing receivables, with no related allowance recorded, Unpaid Principal Balance	5	8
Impaired financing receivables, with no related allowance recorded, Related Allowance	0	0
Impaired financing receivables, Recorded Investment, Total	5	8
Impaired financing receivables, Unpaid Principal Balance, Total	$ 5	$ 8

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
ASSETS
Cash and due from financial institutions	$ 29,858	$ 34,186
Securities available for sale	197,905	199,613
Loans held for sale	2,410	438
Loans, net of allowance of $14,268 and $16,528	900,589	844,713
Other securities	12,586	15,424
Premises and equipment, net	14,400	16,313
Accrued interest receivable	3,852	3,881
Goodwill	21,720	21,720
Other intangible assets	2,025	2,763
Bank owned life insurance	19,637	19,145
Other assets	8,209	9,350
Total assets	1,213,191	1,167,546
Deposits
Noninterest-bearing	250,701	234,976
Interest-bearing	718,217	707,499
Total deposits	968,918	942,475
Federal Home Loan Bank advances	65,200	37,726
Securities sold under agreements to repurchase	21,613	20,053
Subordinated debentures	29,427	29,427
Accrued expenses and other liabilities	12,124	9,489
Total liabilities	1,097,282	1,039,170
SHAREHOLDERS' EQUITY
Common stock, no par value, 20,000,000 shares authorized, 8,455,881 shares issued	114,365	114,365
Accumulated deficit	(4,306)	(10,823)
Treasury stock, 747,964 shares at cost	(17,235)	(17,235)
Accumulated other comprehensive loss	(47)	(4,247)
Total shareholders' equity	115,909	128,376
Total liabilities and shareholders' equity	1,213,191	1,167,546
Series A Preferred Stock [Member]
SHAREHOLDERS' EQUITY
Preferred shares		23,184
Series B Preferred Stock [Member]
SHAREHOLDERS' EQUITY
Preferred shares	$ 23,132	$ 23,132

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Retirement Plans (Tables)

12 Months Ended

Dec. 31, 2014

Information about Pension Plan

Information about the pension plan is as follows.

	2014			2013
Change in benefit obligation:
Beginning benefit obligation	$	18,456		$	21,604
Service cost		306			1,204
Interest cost		639			884
Curtailment gain		(4,039	)		—
Settlement loss		55			821
Actuarial (gain)/loss		3,007			(1,272	)
Benefits paid		(1,471	)		(4,785	)
Ending benefit obligation		16,953			18,456
Change in plan assets, at fair value:
Beginning plan assets		15,466			13,441
Actual return		703			1,943
Employer contribution		1,515			4,900
Benefits paid		(1,471	)		(4,785	)
Administrative expenses		(29	)		(33	)
Ending plan assets		16,184			15,466
Funded status at end of year	$	(769	)	$	(2,990	)

Components of Net Periodic Pension Expense

The components of net periodic pension expense were as follows.

	2014			2013
Service cost	$	306		$	1,204
Interest cost		639			884
Expected return on plan assets		(1,021	)		(965	)
Net amortization and deferral		334			698
Net periodic benefit cost	$	258		$	1,821
Net loss (gain) recognized in other comprehensive income		(1,228	)		(4,406	)
Total recognized in net periodic benefit cost and other comprehensive income (before tax)	$	(970	)	$	(2,585	)

Schedule of Target Allocation and Expected Long-Term Rate of Return by Asset Category

The Company’s pension plan asset allocation at year-end 2013 and 2014 and target allocation for 2015 by asset category are as follows.

	Target Allocation			Percentage of Plan Assets at Year- end
Asset Category	2015			2014			2013
Equity securities		20-50	%		46.7	%		46.5	%
Debt securities		30-60			48.3			53.0
Money market funds		20-30			5.0			0.5
Total					100.0	%		100.0	%

Plan's Assets at Fair Value Hierarchy

The following tables set forth by level, within the fair value hierarchy, the Pension Plan’s assets at fair value as of December 31, 2014 and 2013:

	December 31, 2014
	Level 1		Level 2		Level 3		Total
Assets:
Cash	$	3	$	—	$	—	$	3
Money market funds		91		—		—		91
Bond mutual funds		23		—		—		23
Common/collective trust:
Bonds		7,802		—		—		7,802
Equities		6,383		—		—		6,383
Equity market funds:
Commodity mutual funds		19		—		—		19
International		342		—		—		342
Large cap		1,150		—		—		1,150
Mid cap		253		—		—		253
Small cap		118		—		—		118
Total assets at fair value	$	16,184	$	—	$	—	$	16,184

	December 31, 2013
	Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	79	$	—	$	—	$	79
Bond mutual funds		48		—		—		48
Common/collective trust:
Bonds		8,140		—		—		8,140
Equities		5,439		—		—		5,439
Equity market funds:
Commodity mutual funds		21		—		—		21
International		337		—		—		337
Large cap		1,093		—		—		1,093
Mid cap		181		—		—		181
Small cap		128		—		—		128
Total assets at fair value	$	15,466	$	—	$	—	$	15,466

Summary of Expected Benefit Payments

Expected benefit payments, which reflect expected future service, are as follows.

2015	$	234
2016		297
2017		457
2018		481
2019		581
2020 through 2024		3,843
Total	$	5,893

Benefit Obligations [Member]

Weighted Average Assumptions Used to Determine Benefit Obligations

The weighted average assumptions used to determine benefit obligations at year-end were as follows.

	2014			2013
Discount rate on benefit obligation		3.69	%		4.38	%
Long-term rate of return on plan assets		7.00	%		7.00	%
Rate of compensation increase		0.00	%		3.00	%

Net Periodic Pension Cost [Member]

Weighted Average Assumptions Used to Determine Benefit Obligations

The weighted average assumptions used to determine net periodic pension cost were as follows.

	2014			2013
Discount rate on benefit obligation		4.38	%		3.72	%
Long-term rate of return on plan assets		7.00	%		7.00	%
Rate of compensation increase		3.00	%		3.00	%

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Retirement Plans - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Defined Benefit Plan Disclosure [Line Items]
Matching contribution to 401(k) plan	$ 394,000	$ 204,000
Employer matching contribution description	In conjunction with freezing the pension plan, the Company changed the matching contribution calculation from twenty-five percent of the first six percent of an employee's contribution to 100% of an employee's first three percent contributed and 50% of the next two percent contributed.
Pension plan eligibility age of employees	20 years 6 months
Pension plan eligibility service period of employees	6 months
Pension plan eligibility service hours of employees	1000 hours
Additional benefits under pension plan	0
Effect of curtailment on projected benefit obligation	4,039,000
Accumulated other comprehensive loss	2,666,000
Unrecognized actuarial loss	3,777,000	4,588,000
Unrecognized actuarial net of tax	1,946,000	2,364,000
Accumulated benefit obligation for defined benefit pension plan	16,953,000	14,537,000
Net periodic benefit cost over the next fiscal year	265,000
Rate of compensation increase used to determine the benefit obligation	0.00%
Long-term rate of return on plan assets	7.00%	7.00%
Employer contribution	1,515,000	4,900,000
Fund status	(769,000)	(2,990,000)
Total distribution to participant	1,471,000	4,785,000
Supplemental Retirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Maximum retirement year for participants	10 years
Liability recorded for supplemental retirement plan	1,498,000	1,111,000
Expenses recorded for supplemental retirement plan	398,000	412,000
Total distribution to participant	$ 11,000	$ 0

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Parent Company Only Condensed Financial Information - Schedule of Condensed Statements of Cash Flows (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Operating activities:
Net income	$ 9,528	$ 6,179
Adjustment to reconcile net income to net cash provided by operating activities:
Net cash from operating activities	14,886	12,811
Financing activities:
Payment to repurchase preferred stock	(22,857)
Proceeds from issuance of preferred stock		23,132
Cash dividends paid	(1,873)	(1,159)
Net cash provided by (used for) financing activities	29,282	31,202
Decrease in cash and due from financial institutions	(4,328)	(11,777)
FCBC [Member]
Operating activities:
Net income	9,528	6,179
Adjustment to reconcile net income to net cash provided by operating activities:
Change in other assets and other liabilities	1,508	(1,620)
Equity in undistributed net earnings of subsidiaries	(3,750)	(2,095)
Net cash from operating activities	7,286	2,464
Financing activities:
Payment to repurchase preferred stock	(22,857)
Proceeds from issuance of preferred stock		23,132
Cash dividends paid	(3,338)	(2,315)
Net cash provided by (used for) financing activities	(26,195)	20,817
Decrease in cash and due from financial institutions	(18,909)	23,281
Cash and cash equivalents at beginning of year	32,572	9,291
Cash and cash equivalents at end of year	$ 13,663	$ 32,572

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Consolidated Statements of Changes in Shareholders' Equity (USD $) In Thousands, except Share data	Total	Series A Preferred Stock [Member]	Preferred Shares [Member]	Preferred Shares [Member] Series A Preferred Stock [Member]	Common Shares [Member]	Accumulated Deficit [Member]	Accumulated Deficit [Member] Series A Preferred Stock [Member]	Treasury Shares [Member]	Accumulated Other Comprehensive Loss [Member]
Balance at Dec. 31, 2012	$ 103,980		$ 23,184		$ 114,365	$ (14,687)		$ (17,235)	$ (1,647)
Balance, shares at Dec. 31, 2012			23,184		7,707,917
Net income	6,179					6,179
Other comprehensive income (loss)	(2,600)								(2,600)
Issuance of Series B preferred shares, net of issuance costs	23,132		23,132
Issuance of Series B preferred shares, net of issuance costs, shares			25,000
Cash dividends ($0.15 per share)	(1,156)					(1,156)
Preferred stock dividends	(1,159)					(1,159)
Balance at Dec. 31, 2013	128,376		46,316		114,365	(10,823)		(17,235)	(4,247)
Balance, shares at Dec. 31, 2013			48,184		7,707,917
Net income	9,528					9,528
Other comprehensive income (loss)	4,200								4,200
Cash dividends ($0.15 per share)	(1,465)					(1,465)
Preferred stock dividends	(1,873)					(1,873)
Redemption of Series A preferred stock		(22,857)		(23,184)			327
Redemption of Series A preferred shares				(23,184)
Balance at Dec. 31, 2014	$ 115,909		$ 23,132		$ 114,365	$ (4,306)		$ (17,235)	$ (47)
Balance, shares at Dec. 31, 2014			25,000		7,707,917

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Income Taxes - Effective Tax Rates Differ from Statutory Federal Income Tax Rate (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Income taxes computed at the statutory federal tax rate	$ 4,315	$ 2,568
Add (subtract) tax effect of:
Nontaxable interest income, net of nondeductible interest expense	(824)	(781)
Low income housing tax credit	(303)	(280)
Cash surrender value of BOLI	(167)	(189)
Other	141	55
Income tax expense	$ 3,162	$ 1,373

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Securities - Proceeds from Sales of Securities, Gross Realized Gains and Losses (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Amortized Cost and Fair Value Debt Securities [Abstract]
Sale proceeds	$ 18,088	$ 8,686
Gross realized gains	113	144
Gross realized losses	(1)	(89)
Gains from securities called or settled by the issuer	$ 1	$ 149

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Retirement Plans - Weighted Average Assumptions Used to Determine Benefit Obligations (Detail)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Defined Benefit Plan Disclosure [Line Items]
Rate of compensation increase	0.00%
Long-term rate of return on plan assets	7.00%	7.00%
Benefit Obligations [Member]
Defined Benefit Plan Disclosure [Line Items]
Discount rate on benefit obligation	3.69%	4.38%
Long-term rate of return on plan assets	7.00%	7.00%
Rate of compensation increase	0.00%	3.00%
Net Periodic Pension Cost [Member]
Defined Benefit Plan Disclosure [Line Items]
Discount rate on benefit obligation	4.38%	3.72%
Long-term rate of return on plan assets	7.00%	7.00%
Rate of compensation increase	3.00%	3.00%

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Loans (Tables)

12 Months Ended

Dec. 31, 2014

Receivables [Abstract]

Loans at Year-End

Loans at year-end were as follows.

	2014			2013
Commercial and Agriculture	$	114,186		$	115,875
Commercial Real Estate—owner occupied		143,014			161,014
Commercial Real Estate—non-owner occupied		308,666			282,832
Residential Real Estate		268,510			250,691
Real Estate Construction		65,452			39,964
Consumer and Other		15,029			10,865
Total Loans		914,857			861,241
Allowance for loan losses		(14,268	)		(16,528	)
Net loans	$	900,589		$	844,713

Loans to Directors and Executive Officers Including Immediate Families

Loans to principal officers, directors, and their affiliates at year-end 2014 and 2013 were as follows.

	2014			2013
Balance—Beginning of year	$	9,294		$	9,997
New loans and advances		2,700			3,262
Repayments		(2,792	)		(3,157	)
Effect of changes to related parties		(2,171	)		(808	)
Balance—End of year	$	7,031		$	9,294

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Allowance for Loan Losses - Changes in Allowance for Loan Losses (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Allowance for loan losses:
Beginning balance	$ 16,528	$ 19,742
Charge-offs	(4,781)	(5,550)
Recoveries	1,021	1,236
Provision	1,500	1,100
Ending Balance	14,268	16,528
Commercial and Agriculture [Member]
Allowance for loan losses:
Beginning balance	2,841	2,811
Charge-offs	(338)	(483)
Recoveries	249	141
Provision	(930)	372
Ending Balance	1,822	2,841
Commercial Real Estate Owner Occupied [Member]
Allowance for loan losses:
Beginning balance	3,263	4,836
Charge-offs	(1,661)	(989)
Recoveries	363	265
Provision	615	(849)
Ending Balance	2,580	3,263
Commercial Real Estate Non Owner Occupied [Member]
Allowance for loan losses:
Beginning balance	4,296	5,303
Charge-offs	(198)	(815)
Recoveries	50	184
Provision	650	(376)
Ending Balance	4,798	4,296
Residential Real Estate [Member]
Allowance for loan losses:
Beginning balance	5,224	5,780
Charge-offs	(2,449)	(2,907)
Recoveries	292	458
Provision	680	1,893
Ending Balance	3,747	5,224
Real Estate Construction [Member]
Allowance for loan losses:
Beginning balance	184	349
Charge-offs		(136)
Recoveries	6	108
Provision	238	(137)
Ending Balance	428	184
Consumer and Other [Member]
Allowance for loan losses:
Beginning balance	214	246
Charge-offs	(135)	(220)
Recoveries	61	80
Provision	56	108
Ending Balance	196	214
Unallocated [Member]
Allowance for loan losses:
Beginning balance	506	417
Provision	191	89
Ending Balance	$ 697	$ 506

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Retirement Plans

12 Months Ended

Dec. 31, 2014

Compensation and Retirement Disclosure [Abstract]

Retirement Plans

NOTE 14—RETIREMENT PLANS

The Company sponsors a savings and retirement 401(k) plan, which covers all employees who meet certain eligibility requirements and who choose to participate in the plan. The matching contribution to the 401(k) plan was $394 in 2014 and $204 in 2013. In conjunction with freezing the pension plan, the Company changed the matching contribution calculation from twenty-five percent of the first six percent of an employee’s contribution to 100% of an employee’s first three percent contributed and 50% of the next two percent contributed. This change took place on July 1, 2014.

The Company also sponsors a pension plan which is a noncontributory defined benefit retirement plan for all employees who have attained the age of 20 ¹⁄₂, completed six months of service and work 1,000 or more hours per year. Annual payments, subject to the maximum amount deductible for federal income tax purposes, are made to a pension trust fund. In 2006, the Company amended the pension plan to provide that no employee could be added as a participant to the pension plan after December 31, 2006. In April 2014, the Company amended the pension plan again to provide that no additional benefits would accrue beyond April 30, 2014. This curtailment resulted in a reduction to the projected benefit obligation of $4,039. Also, the curtailment resulted in an increase in accumulated other comprehensive loss of $2,666.

Information about the pension plan is as follows.

	2014			2013
Change in benefit obligation:
Beginning benefit obligation	$	18,456		$	21,604
Service cost		306			1,204
Interest cost		639			884
Curtailment gain		(4,039	)		—
Settlement loss		55			821
Actuarial (gain)/loss		3,007			(1,272	)
Benefits paid		(1,471	)		(4,785	)
Ending benefit obligation		16,953			18,456
Change in plan assets, at fair value:
Beginning plan assets		15,466			13,441
Actual return		703			1,943
Employer contribution		1,515			4,900
Benefits paid		(1,471	)		(4,785	)
Administrative expenses		(29	)		(33	)
Ending plan assets		16,184			15,466
Funded status at end of year	$	(769	)	$	(2,990	)

Amounts recognized in accumulated other comprehensive income at December 31, consist of unrecognized actuarial loss of $3,777, net of $1,946 tax in 2014 and $4,588, net of $2,364 tax in 2013.

The accumulated benefit obligation for the defined benefit pension plan was $16,953 at December 31, 2014 and $14,537 at December 31, 2013.

The components of net periodic pension expense were as follows.

	2014			2013
Service cost	$	306		$	1,204
Interest cost		639			884
Expected return on plan assets		(1,021	)		(965	)
Net amortization and deferral		334			698
Net periodic benefit cost	$	258		$	1,821
Net loss (gain) recognized in other comprehensive income		(1,228	)		(4,406	)
Total recognized in net periodic benefit cost and other comprehensive income (before tax)	$	(970	)	$	(2,585	)

The estimated net loss and prior service costs for the defined benefit pension plan that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year is $265.

The weighted average assumptions used to determine benefit obligations at year-end were as follows.

	2014			2013
Discount rate on benefit obligation		3.69	%		4.38	%
Long-term rate of return on plan assets		7.00	%		7.00	%
Rate of compensation increase		0.00	%		3.00	%

The weighted average assumptions used to determine net periodic pension cost were as follows.

	2014			2013
Discount rate on benefit obligation		4.38	%		3.72	%
Long-term rate of return on plan assets		7.00	%		7.00	%
Rate of compensation increase		3.00	%		3.00	%

The Company uses long-term market rates to determine the discount rate on the benefit obligation. Declines in the discount rate lead to increases in the actuarial loss related to the benefit obligation.

The expectation for long-term rate of return on the pension assets and the expected rate of compensation increases are reviewed periodically by management in consultation with outside actuaries and primary investment consultants. Factors considered in setting and adjusting these rates are historic and projected rates of return on the portfolio and historic and estimated rates of increases of compensation. Since the pension plan is frozen, the rate of compensation increase used to determine the benefit obligation for 2014 was zero.

The Company’s pension plan asset allocation at year-end 2013 and 2014 and target allocation for 2015 by asset category are as follows.

	Target Allocation			Percentage of Plan Assets at Year- end
Asset Category	2015			2014			2013
Equity securities		20-50	%		46.7	%		46.5	%
Debt securities		30-60			48.3			53.0
Money market funds		20-30			5.0			0.5
Total					100.0	%		100.0	%

The Company developed the pension plan investment policies and strategies for plan assets with its pension management firm. The assets are currently invested in five diversified investment funds, which include three equity funds, one money market fund and one bond fund. The long-term guidelines from above were created to maximize the return on portfolio assets while reducing the risk of the portfolio. The management firm may allocate assets among the separate accounts within the established long-term guidelines. Transfers among these accounts will be at the management firm’s discretion based on their investment outlook and the investment strategies that are outlined at periodic meetings with the Company. The expected long-term rate of return on the plan assets was 7.00% in 2014 and 2013. This return is based on the expected return for each of the asset categories, weighted based on the target allocation for each class.

Since the plan is frozen, the Company does not expect to make a contribution to its pension plan in 2015. Employer contributions totaled $1,515 in 2014. The decrease in the benefit obligation, contributions and the increase in plan assets led to a change in funded status from $(2,990) to $(769).

The following tables set forth by level, within the fair value hierarchy, the Pension Plan’s assets at fair value as of December 31, 2014 and 2013:

	December 31, 2014
	Level 1		Level 2		Level 3		Total
Assets:
Cash	$	3	$	—	$	—	$	3
Money market funds		91		—		—		91
Bond mutual funds		23		—		—		23
Common/collective trust:
Bonds		7,802		—		—		7,802
Equities		6,383		—		—		6,383
Equity market funds:
Commodity mutual funds		19		—		—		19
International		342		—		—		342
Large cap		1,150		—		—		1,150
Mid cap		253		—		—		253
Small cap		118		—		—		118
Total assets at fair value	$	16,184	$	—	$	—	$	16,184

	December 31, 2013
	Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	79	$	—	$	—	$	79
Bond mutual funds		48		—		—		48
Common/collective trust:
Bonds		8,140		—		—		8,140
Equities		5,439		—		—		5,439
Equity market funds:
Commodity mutual funds		21		—		—		21
International		337		—		—		337
Large cap		1,093		—		—		1,093
Mid cap		181		—		—		181
Small cap		128		—		—		128
Total assets at fair value	$	15,466	$	—	$	—	$	15,466

Investment in equity securities, debt securities, and money market funds are valued at the closing price reported on the active market on which the individual securities are traded.

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Pension Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

Expected benefit payments, which reflect expected future service, are as follows.

2015	$	234
2016		297
2017		457
2018		481
2019		581
2020 through 2024		3,843
Total	$	5,893

Supplemental Retirement Plan

Citizens established a supplemental retirement plan (“SERP”) in 2013, which covers key members of management. Participants will receive annually a percentage of their base compensations at the time of their retirement for a maximum of ten years. The SERP liability recorded at December 31, 2014, was $1,498, compared to $1,111 at December 31, 2013. The expense related to the SERP was $398 for 2014 and $412 for 2013. Distributions to participants made in 2014 totaled $11. No SERP distributions to participants were made in 2013.

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Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2014

Text Block [Abstract]

Allowance Related to Unallocated Segment

The following tables present by portfolio segment, the changes in the allowance for loan losses, the ending allocation of the allowance for loan losses and the loan balances outstanding for the period ended December 31, 2014 and December 31, 2013. The changes can be impacted by overall loan volume, adversely graded loans, historical charge-offs and economic factors.

	Commercial & Agriculture			Commercial Real Estate— Owner Occupied			Commercial Real Estate— Non-Owner Occupied			Residential Real Estate			Real Estate Construction		Consumer and Other			Unallocated		Total
December 31, 2014
Allowance for loan losses:
Beginning balance	$	2,841		$	3,263		$	4,296		$	5,224		$	184	$	214		$	506	$	16,528
Charge-offs		(338	)		(1,661	)		(198	)		(2,449	)		—		(135	)		—		(4,781	)
Recoveries		249			363			50			292			6		61			—		1,021
Provision		(930	)		615			650			680			238		56			191		1,500
Ending Balance	$	1,822		$	2,580		$	4,798		$	3,747		$	428	$	196		$	697	$	14,268

	Commercial & Agriculture			Commercial Real Estate— Owner Occupied			Commercial Real Estate— Non-Owner Occupied			Residential Real Estate			Real Estate Construction			Consumer and Other			Unallocated		Total
December 31, 2013
Allowance for loan losses:
Beginning balance	$	2,811		$	4,836		$	5,303		$	5,780		$	349		$	246		$	417	$	19,742
Charge-offs		(483	)		(989	)		(815	)		(2,907	)		(136	)		(220	)		—		(5,550	)
Recoveries		141			265			184			458			108			80			—		1,236
Provision		372			(849	)		(376	)		1,893			(137	)		108			89		1,100
Ending Balance	$	2,841		$	3,263		$	4,296		$	5,224		$	184		$	214		$	506	$	16,528

 

	Commercial & Agriculture		Commercial Real Estate— Owner Occupied		Commercial Real Estate— Non-Owner Occupied		Residential Real Estate		Real Estate Construction		Consumer and Other		Unallocated		Total
December 31, 2014
Allowance for loan losses:
Ending balance:
Individually evaluated for impairment	$	641	$	57	$	20	$	305	$	—	$	—	$	—	$	1,023
Ending balance:
Collectively evaluated for impairment	$	1,181	$	2,523	$	4,778	$	3,442	$	428	$	196	$	697	$	13,245
Ending balance	$	1,822	$	2,580	$	4,798	$	3,747	$	428	$	196	$	697	$	14,268
Loan balances outstanding:
Ending balance:
Individually evaluated for impairment	$	2,304	$	3,557	$	2,175	$	3,108	$	—	$	5			$	11,149
Ending balance:
Collectively evaluated for impairment	$	111,882	$	139,457	$	306,491	$	265,402	$	65,452	$	15,024			$	903,708
Ending balance	$	114,186	$	143,014	$	308,666	$	268,510	$	65,452	$	15,029			$	914,857

	Commercial & Agriculture		Commercial Real Estate— Owner Occupied		Commercial Real Estate— Non-Owner Occupied		Residential Real Estate		Real Estate Construction		Consumer and Other		Unallocated		Total
December 31, 2013
Allowance for loan losses:
Ending balance:
Individually evaluated for impairment	$	1,262	$	390	$	55	$	802	$	—	$	—	$	—	$	2,509
Ending balance:
Collectively evaluated for impairment	$	1,579	$	2,873	$	4,241	$	4,422	$	184	$	214	$	506	$	14,019
Ending balance	$	2,841	$	3,263	$	4,296	$	5,224	$	184	$	214	$	506	$	16,528
Loan balances outstanding:
Ending balance:
Individually evaluated for impairment	$	3,869	$	6,792	$	3,383	$	4,005	$	—	$	8			$	18,057
Ending balance:
Collectively evaluated for impairment	$	112,006	$	154,222	$	279,449	$	246,686	$	39,964	$	10,857			$	843,184
Ending balance	$	115,875	$	161,014	$	282,832	$	250,691	$	39,964	$	10,865			$	861,241

Credit Exposures by Internally Assigned Grades

December 31, 2014	Commercial & Agriculture		Commercial Real Estate— Owner Occupied		Commercial Real Estate— Non-Owner Occupied		Residential Real Estate		Real Estate Construction		Consumer and Other		Total
Pass	$	107,903	$	128,222	$	298,237	$	100,810	$	59,584	$	5,651	$	700,407
Special Mention		3,446		5,492		6,305		697		19		—		15,959
Substandard		2,837		9,300		4,124		8,834		41		46		25,182
Doubtful		—		—		—		—		—		—		—
Ending Balance	$	114,186	$	143,014	$	308,666	$	110,341	$	59,644	$	5,697	$	741,548

December 31, 2013	Commercial & Agriculture		Commercial Real Estate— Owner Occupied		Commercial Real Estate— Non-Owner Occupied		Residential Real Estate		Real Estate Construction		Consumer and Other		Total
Pass	$	107,923	$	143,531	$	272,407	$	98,700	$	35,495	$	2,252	$	660,308
Special Mention		2,038		4,334		4,811		986		21		—		12,190
Substandard		5,914		13,149		5,614		8,175		—		70		32,922
Doubtful		—		—		—		2,349		—		—		2,349
Ending Balance	$	115,875	$	161,014	$	282,832	$	110,210	$	35,516	$	2,322	$	707,769

Performing and Nonperforming Loans

Certain TDRs are classified as nonperforming at the time of restructure and may only be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months.

	Residential Real Estate		Real Estate Construction		Consumer and Other		Total
December 31, 2014
Performing	$	158,169	$	5,808	$	9,332	$	173,309
Nonperforming		—		—		—		—
Total	$	158,169	$	5,808	$	9,332	$	173,309

	Residential Real Estate		Real Estate Construction		Consumer and Other		Total
December 31, 2013
Performing	$	140,481	$	4,448	$	8,543	$	153,472
Nonperforming		—		—		—		—
Total	$	140,481	$	4,448	$	8,543	$	153,472

Aging Analysis of Past Due Loans

Following tables include an aging analysis of the recorded investment of past due loans outstanding as of December 31, 2014 and 2013.

December 31, 2014	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater		Total Past Due		Current		Total Loans		Past Due 90 Days and Accruing
Commercial & Agriculture	$	58	$	—	$	187	$	245	$	113,941	$	114,186	$	—
Commercial Real Estate—Owner Occupied		622		251		657		1,530		141,484		143,014		—
Commercial Real Estate—Non-Owner Occupied		521		5		2,103		2,629		306,037		308,666		—
Residential Real Estate		1,923		721		2,347		4,991		263,519		268,510		—
Real Estate Construction		33		—		8		41		65,411		65,452		—
Consumer and Other		131		8		19		158		14,871		15,029		—
Total	$	3,288	$	985	$	5,321	$	9,594	$	905,263	$	914,857	$	—

December 31, 2013	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater		Total Past Due		Current		Total Loans		Past Due 90 Days and Accruing
Commercial & Agriculture	$	105	$	—	$	443	$	548	$	115,327	$	115,875	$	—
Commercial Real Estate—Owner Occupied		253		188		1,643		2,084		158,930		161,014		—
Commercial Real Estate—Non-Owner Occupied		208		13		455		676		282,156		282,832		—
Residential Real Estate		3,140		1,084		5,531		9,755		240,936		250,691		—
Real Estate Construction		—		—		—		—		39,964		39,964		—
Consumer and Other		170		20		—		190		10,675		10,865		—
Total	$	3,876	$	1,305	$	8,072	$	13,253	$	847,988	$	861,241	$	—

Summary of Nonaccrual Loans

The following table presents loans on nonaccrual status as of December 31, 2014 and 2013.

	2014		2013
Commercial & Agriculture	$	1,264	$	1,590
Commercial Real Estate—Owner Occupied		3,403		6,360
Commercial Real Estate—Non-Owner Occupied		2,134		3,249
Residential Real Estate		6,674		9,210
Real Estate Construction		41		—
Consumer and Other		42		50
Total	$	13,558	$	20,459

Schedule of Troubled Debt Restructurings

Loan modifications that are considered TDRs completed during the twelve month periods ended December 31, 2014 and December 31, 2013 were as follows:

	For the Twelve Month Period Ended December 31, 2014						For the Twelve Month Period Ended December 31, 2013
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial & Agriculture		—	$	—	$	—		—	$	—	$	—
Commercial Real Estate—Owner Occupied		—		—		—		2		547		547
Commercial Real Estate—Non-Owner Occupied		—		—		—		—		—		—
Residential Real Estate		9		619		554		—		—		—
Real Estate Construction		1		35		35		—		—		—
Consumer and Other		—		—		—		—		—		—
Total Loan Modifications		10	$	654	$	589		2	$	547	$	547

Impaired Financing Receivables

The following tables include the recorded investment and unpaid principal balances for impaired financing receivables with the associated allowance amount, if applicable as of December 31, 2014 and 2013.

	December 31, 2014						December 31, 2013
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded:
Commercial & Agriculture	$	1,377	$	1,504			$	1,525	$	1,657
Commercial Real Estate—Owner Occupied		2,961		3,327				2,891		3,027
Commercial Real Estate—Non-Owner Occupied		92		140				3,092		3,187
Residential Real Estate		1,893		3,487				1,202		2,263
Consumer and Other		5		5				8		8
Total		6,328		8,463				8,718		10,142
With an allowance recorded:
Commercial & Agriculture		927		1,056	$	641		2,344		2,437	$	1,262
Commercial Real Estate—Owner Occupied		596		643		57		3,901		4,201		390
Commercial Real Estate—Non-Owner Occupied		2,083		2,287		20		291		295		55
Residential Real Estate		1,215		1,223		305		2,803		4,021		802
Total		4,821		5,209		1,023		9,339		10,954		2,509
Total:
Commercial & Agriculture		2,304		2,560		641		3,869		4,094		1,262
Commercial Real Estate—Owner Occupied		3,557		3,970		57		6,792		7,228		390
Commercial Real Estate—Non-Owner Occupied		2,175		2,427		20		3,383		3,482		55
Residential Real Estate		3,108		4,710		305		4,005		6,284		802
Consumer and Other		5		5		—		8		8		—
Total	$	11,149	$	13,672	$	1,023	$	18,057	$	21,096	$	2,509

For the year ended:	December 31, 2014				December 31, 2013
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial & Agriculture	$	3,316	$	104	$	4,761	$	186
Commercial Real Estate—Owner Occupied		5,720		219		6,064		436
Commercial Real Estate—Non-Owner Occupied		2,767		40		5,855		85
Residential Real Estate		3,510		207		5,038		282
Real Estate Construction		—		—		302		—
Consumer and Other		6		—		31		—
Total	$	15,319	$	570	$	22,051	$	989

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Retirement Plans - Components of Net Periodic Pension Expense (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Compensation and Retirement Disclosure [Abstract]
Service cost	$ 306	$ 1,204
Interest cost	639	884
Expected return on plan assets	(1,021)	(965)
Net amortization and deferral	334	698
Net periodic benefit cost	258	1,821
Net loss (gain) recognized in other comprehensive income	(1,228)	(4,406)
Total recognized in net periodic benefit cost and other comprehensive income (before tax)	$ (970)	$ (2,585)

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Fair Value Measurement

12 Months Ended

Dec. 31, 2014

Fair Value Disclosures [Abstract]

Fair Value Measurement

NOTE 16—FAIR VALUE MEASUREMENT

U.S. generally accepted accounting principles establish a hierarchal disclosure framework associated with the level of observable pricing utilized in measuring assets and liabilities at fair value. The three broad levels defined by the hierarchy are as follows: Level 1: Quoted prices for identical assets in active markets that are identifiable on the measurement date; Level 2: Significant other observable inputs, such as quoted prices for similar assets, quoted prices in markets that are not active and other inputs that are observable or can be corroborated by observable market data; Level 3: Significant unobservable inputs that reflect the Company’s own view about the assumptions that market participants would use in pricing an asset.

Securities: The fair values of securities available for sale are determined by matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs).

Equity securities: The Company’s equity securities are not actively traded in an open market. The fair values of these equity securities available for sale are determined by using market data inputs for similar securities that are observable. (Level 2 inputs).

Fair value swap asset/liability: The fair value of the swap asset and liability is based on an external derivative model using data inputs as of the valuation date and classified Level 2.

Impaired loans: The fair values of impaired loans are determined using the fair values of collateral for collateral dependent loans, or discounted cash flows. The Company uses independent appraisals, discounted cash flow models and other available data to estimate the fair value of collateral (Level 3 inputs).

Other real estate owned: The fair value of other real estate owned is determined using the fair value of collateral. The Company uses appraisals and other available data to estimate the fair value of collateral (Level 3 inputs). The appraised values are discounted to represent an estimated value in a distressed sale. Additionally, estimated costs to sell the property are used to further adjust the value.

Assets measured at fair value are summarized below.

Fair Value Measurements at December 31, 2014 Using:
	(Level 1)		(Level 2)		(Level 3)
Assets measured at fair value on a recurring basis:
U.S. Treasury securities and obligations of U.S. Government agencies	$	—	$	42,902	$	—
Obligations of states and political subdivisions		—		88,021		—
Mortgage-backed securities in government sponsored entities		—		66,442		—
Equity securities in financial institutions		—		540		—
Fair value swap asset		—		1,721		—
Fair value swap liability		—		1,721		—
Assets measured at fair value on a nonrecurring basis:
Impaired Loans	$	—	$	—	$	10,126
Other Real Estate Owned		—		—		560

Fair Value Measurements at December 31, 2013 Using:
	(Level 1)		(Level 2)		(Level 3)
Assets measured at fair value on a recurring basis:
U.S. Treasury securities and obligations of U.S. Government agencies	$	—	$	51,560	$	—
Obligations of states and political subdivisions		—		80,625		—
Mortgage-backed securities in government sponsored entities		—		66,979		—
Equity securities in financial institutions		—		449		—
Fair value of swap asset		—		286		—
Fair value of swap liability		—		286		—
Assets measured at fair value on a nonrecurring basis:
Impaired Loans	$	—	$	—	$	15,548
Other Real Estate Owned		—		—		173

The following tables presents quantitative information about the Level 3 significant unobservable inputs for assets and liabilities measured at fair value on a nonrecurring basis at December 31, 2014 and 2013.

	Quantitative Information about Level 3 Fair Value Measurements
December 31, 2014	Fair Value		Valuation Technique	Unobservable Input	Range
Impaired loans	$	10,126	Appraisal of collateral	Appraisal adjustments	10% -30%
				Liquidation expense	0% - 10%
				Holding period	0 -30 months
			Discounted cash flows	Discount rates	3.8% - 8.0%
Other real estate owned	$	560	Appraisal of collateral	Appraisal adjustments	10% - 30%
				Liquidation expense	0% - 10%

	Quantitative Information about Level 3 Fair Value Measurements
December 31, 2013	Fair Value		Valuation Technique	Unobservable Input	Range
Impaired loans	$	15,548	Appraisal of collateral	Appraisal adjustments	10% - 30%
				Liquidation expense	0% - 10%
				Holding period	0 - 30 months
			Discounted cash flows	Discount rates	2% - 8.5%
Other real estate owned	$	173	Appraisal of collateral	Appraisal adjustments	10% - 30%
				Liquidation expense	0% - 10%

The carrying amount and fair value of financial instruments were as follows.

December 31, 2014	Carrying Amount		Total Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from financial institutions	$	29,858	$	29,858	$	29,858	$	—	$	—
Securities available for sale		197,905		197,905		—		197,905		—
Loans, held for sale		2,410		2,410		2,410		—		—
Loans, net of allowance for loan losses		900,589		908,118		—		—		908,118
Other securities		12,586		12,586		12,586		—		—
Bank owned life insurance		19,637		19,637		19,637		—		—
Accrued interest receivable		3,852		3,852		3,852		—		—
Swap asset		1,721		1,721		—		1,721		—
Financial Liabilities:
Nonmaturing deposits		748,948		748,948		748,948		—		—
Time deposits		219,970		221,263		—		—		221,263
Federal Home Loan Bank advances		65,200		65,399		—		—		65,399
Securities sold under agreement to repurchase		21,613		21,613		21,613		—		—
Subordinated debentures		29,427		24,688		—		—		24,688
Accrued interest payable		126		126		126		—		—
Swap liability		1,721		1,721		—		1,721		—

December 31, 2013	Carrying Amount		Total Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from financial institutions	$	34,186	$	34,186	$	34,186	$	—	$	—
Securities available for sale		199,613		199,613		—		199,613		—
Loans, held for sale		438		438		438		—		—
Loans, net of allowance for loan losses		844,713		861,252		—		—		861,252
Other securities		15,424		15,424		15,424		—		—
Bank owned life insurance		19,145		19,145		19,145		—		—
Accrued interest receivable		3,881		3,881		3,881		—		—
Fair value swap asset		286		286		—		286		—
Financial Liabilities:
Nonmaturing deposits		706,126		706,126		706,126		—		—
Time deposits		236,349		237,837		—		—		237,837
Federal Home Loan Bank advances		37,726		38,767		—		—		38,767
Securities sold under agreement to repurchase		20,053		20,053		20,053		—		—
Subordinated debentures		29,427		20,605		—		—		20,605
Accrued interest payable		156		156		156		—		—
Fair value swap liability		286		286		—		286		—

The estimated fair value approximates carrying amount for all items except those described below. Estimated fair value for securities is based on quoted market values for the individual securities or for equivalent securities. For fixed rate loans or deposits and for variable rate loans or deposits with infrequent repricing or repricing limits, fair value is based on discounted cash flows using current market rates applied to the cash flow analysis or underlying collateral values. Fair value of debt is based on current rates for similar financing. The fair value of off-balance-sheet items is based on the current fees or cost that would be charged to enter into or terminate such arrangements and are considered nominal.

For certain homogeneous categories of loans, such as some residential mortgages, credit card receivables, and other consumer loans, fair value is estimated using the quoted market prices for securities backed by similar loans, adjusted for differences in loan characteristics. The fair value of other types of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities.

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Allowance for Loan Losses - Performing and Nonperforming Loans (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Financing Receivable, Recorded Investment [Line Items]
Performing	$ 173,309	$ 153,472
Nonperforming	0	0
Total	173,309	153,472
Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Performing	158,169	140,481
Nonperforming	0	0
Total	158,169	140,481
Real Estate Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Performing	5,808	4,448
Nonperforming	0	0
Total	5,808	4,448
Consumer and Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Performing	9,332	8,543
Nonperforming	0	0
Total	$ 9,332	$ 8,543

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Commitments, Contingencies and Off-Balance-Sheet Risk - Contractual Amount of Financial Instruments with Off-Balance-Sheet Risk (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fixed Rate	$ 9,609	$ 12,084
Variable Rate	183,847	174,827
Lines of Credit and Construction Loans [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fixed Rate	9,405	11,866
Variable Rate	160,718	151,332
Overdraft Protection [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fixed Rate	4	18
Variable Rate	22,122	21,084
Letters of Credit [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fixed Rate	200	200
Variable Rate	$ 1,007	$ 2,411

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Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Cash dividends per share	$ 0.19	$ 0.15
Accumulated Deficit [Member]
Cash dividends per share	$ 0.19	$ 0.15

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Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Allowance for loan losses	$ 14,268	$ 16,528
Preferred shares, par value
Preferred shares, shares authorized	200,000	200,000
Common stock, par value
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	8,455,881	8,455,881
Treasury stock, shares	747,964	747,964
Series A Preferred Stock [Member]
Preferred shares, liquidation preference	$ 1,000	$ 1,000
Preferred shares, shares issued	23,184	23,184
Series B Preferred Stock [Member]
Preferred shares, liquidation preference	$ 1,000	$ 1,000
Preferred shares, shares issued	25,000	25,000

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Short-Term Borrowings

12 Months Ended

Dec. 31, 2014

Debt Disclosure [Abstract]

Short-Term Borrowings

NOTE 9 – SHORT-TERM BORROWINGS

Short-term borrowings, which consist of federal funds purchased and other short-term borrowings are summarized as follows:

	At December 31, 2014
	Federal Funds Purchased			Short-term Borrowings
Outstanding balance at year end	$	—		$	42,700
Maximum indebtedness during the year		—			42,700
Average balance during the year		41			1,951
Average rate paid during the year		0.54	%		0.19	%
Interest rate on year end balance		—			0.14	%

	At December 31, 2013
	Federal Funds Purchased			Short-term Borrowings
Outstanding balance at year end	$	—		$	—
Maximum indebtedness during the year		10,000			—
Average balance during the year		28			—
Average rate paid during the year		0.53	%		—
Interest rate on year end balance		—			—

Outstanding during the year represent daily averages. Average interest rates represent interest expense divided by the related average balances.

These borrowing transactions can range from overnight to six months in maturity. The average maturity was one day at December 31, 2014. There were no outstanding short-term borrowings at December 31, 2013.

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Stock Options - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted	0
Option outstanding	0	0	10,000
2000 Stock Option Plan and Stock Appreciation Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares under stock option plan authorized for issuance		225,000
Stock options, vesting period		3 years
Options outstanding under the plan expired		April 12, 2013
Options granted		0
2000 Stock Option Plan and Stock Appreciation Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options, expiration period		10 years
2014 Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares under stock option plan authorized for issuance		375,000
Options granted		0

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Income Taxes - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Statutory federal income tax rate	34.00%
Tax benefit attributable to security gains (losses)	$ 0	$ 0
Liability for uncertain tax positions, current	0
Unrecognized tax benefits	$ 0

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Subordinated Debentures - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	1 Months Ended	12 Months Ended
	Apr. 30, 2007	Dec. 31, 2014	Dec. 31, 2007 Trust_Preferred_Securities	Dec. 31, 2011
Subordinated Borrowing [Line Items]
Redeem and refinance of floating rate subordinated debenture	$ 5,000
Refinancing at face value, reduction rate		2.00%
Subordinated debenture, maturity period		30 years
Subordinated debentures, principal amount percentage		100.00%
Minimum [Member]
Subordinated Borrowing [Line Items]
Subordinated debentures may redeem part of principal amount		1,000
Futura Ban Corp [Member]
Subordinated Borrowing [Line Items]
Number of additional trust preferred securities acquired			2
2.48% Debenture [Member]
Subordinated Borrowing [Line Items]
Debt, face amount		12,500
Debt, interest rate		2.48%
Redemption of subordinated debentures description		The Company may redeem the subordinated debentures, in whole or in part, in a principal amount with integral multiples of $1,000, on or after June 15, 2010 at 100% of the principal amount, plus accrued and unpaid interest.
Subordinated Debentures [Member]
Subordinated Borrowing [Line Items]
Subordinated debenture, maturity date		Jun. 15, 2035
3.39% Debenture [Member]
Subordinated Borrowing [Line Items]
Debt, face amount		7,500
Debt, interest rate		3.39%
1.83% Debenture [Member]
Subordinated Borrowing [Line Items]
Debt, face amount		5,000
Debt, interest rate		1.83%
6.05% Fixed Rate Trust Preferred Securities [Member]
Subordinated Borrowing [Line Items]
Debt, face amount		12,500
Debt, interest rate		6.05%
Subordinated debenture, maturity term		5 years
1.89% Debenture [Member] | Futura TPF Trust I [Member]
Subordinated Borrowing [Line Items]
Debt, face amount		2,500
Debt instrument, variable interest rate percentage		1.89%
1.89% Debenture [Member] | Futura TPF Trust II [Member]
Subordinated Borrowing [Line Items]
Debt, face amount				1,927
Debt instrument, variable interest rate percentage				1.89%
Subordinated Debenture [Member]
Subordinated Borrowing [Line Items]
Issuance of Trust Preferred Securities in exchange for Subordinated Debentures		5,000
Trust Preferred Securities [Member]
Subordinated Borrowing [Line Items]
Issuance of Trust Preferred Securities in exchange for Subordinated Debentures		7,500
Trust Preferred Securities [Member] | Futura TPF Trust I [Member]
Subordinated Borrowing [Line Items]
Acquired trust preferred securities		2,500
Trust Preferred Securities [Member] | Futura TPF Trust II [Member]
Subordinated Borrowing [Line Items]
Acquired trust preferred securities		1,927

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Subsequent Events - Schedule of Pro Forma Information - Balance Sheet (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
ASSETS
Cash and due from financial institutions	$ 29,858	$ 34,186	$ 45,963
Securities available for sale	197,905	199,613
Loans, net of allowance	14,268	16,528
Premises and equipment, net	14,400	16,313
LIABILITIES
Total deposits	968,918	942,475
Federal Home Loan Bank advances	65,200	37,726
Securities sold under agreements to repurchase	21,613	20,053
Subordinated debentures	29,427	29,427
SHAREHOLDERS' EQUITY
Total shareholders' equity	115,909	128,376	103,980
Pro Forma [Member] | TCNB Financial Corp [Member] | FCBC Financial Corp [Member]
ASSETS
Cash and due from financial institutions	22,898	27,481
Securities available for sale	205,819	208,082
Loans, net of allowance	978,802	921,597
Premises and equipment, net	16,285	18,317
LIABILITIES
Total deposits	1,059,286	1,032,755
Federal Home Loan Bank advances	62,589	37,726
Securities sold under agreements to repurchase	21,613	20,053
Subordinated debentures	29,427	29,427
SHAREHOLDERS' EQUITY
Total shareholders' equity	$ 114,548	$ 126,294

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Document and Entity Information (USD $)	12 Months Ended
	Dec. 31, 2014	Feb. 28, 2015	Jun. 30, 2014
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	FY
Trading Symbol	FCZA
Entity Registrant Name	FIRST CITIZENS BANC CORP /OH
Entity Central Index Key	0000944745
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		7,800,494
Entity Public Float			$ 60,305,367

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Federal Home Loan Bank Advances

12 Months Ended

Dec. 31, 2014

Banking and Thrift [Abstract]

Federal Home Loan Bank Advances

NOTE 10—FEDERAL HOME LOAN BANK ADVANCES

Long term advances from the FHLB were $22,500 at December 31, 2014 and $37,726 at December 31, 2013. Outstanding balances have maturity dates ranging March 2015 to October 2019 and fixed rates ranging from 1.50% to 4.25%. The average rate on outstanding advances was 2.24%.

Scheduled principal reductions of FHLB advances at December 31, 2014 were as follows.

2015	$	5,000
2017		2,500
2018		10,000
2019		5,000
Total	$	22,500

In addition to the borrowings, the Company has outstanding letters of credit with the FHLB totaling $22,700 at year-end 2014 and $23,300 at year-end 2013 used for pledging to secure public funds. FHLB borrowings and the letters of credit are collateralized by FHLB stock and by $131,850 and $91,540 of residential mortgage loans under a blanket lien arrangement at year-end 2014 and 2013, respectively.

The Company had a FHLB maximum borrowing capacity of $124,741 as of December 31, 2014, with remaining borrowing capacity of approximately $36,841. The borrowing arrangement with the FHLB is subject to annual renewal. The maximum borrowing capacity is recalculated at least quarterly.

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Goodwill and Intangible Assets - Schedule of Acquired Intangible Assets (Detail) (Core Deposit and Other Intangibles [Member], USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Core Deposit and Other Intangibles [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 6,688	$ 11,619
Accumulated Amortization	$ 5,165	$ 9,326

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Securities Sold Under Agreements to Repurchase - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Debt Disclosure [Abstract]
Securities underlying repurchase agreements	$ 21,613	$ 20,053

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Consolidated Statements of Operations (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Interest and dividend income
Loans, including fees	$ 40,032	$ 38,776
Taxable securities	3,443	3,763
Tax-exempt securities	2,356	2,211
Federal funds sold and other	139	131
Total interest and dividend income	45,970	44,881
Interest expense
Deposits	2,292	2,788
Federal Home Loan Bank advances	1,015	1,358
Subordinated debentures	777	740
Securities sold under agreements to repurchase	20	21
Total interest expense	4,104	4,907
Net interest income	41,866	39,974
Provision for loan losses	1,500	1,100
Net interest income after provision for loan losses	40,366	38,874
Noninterest income
Service charges	4,119	4,201
Net gain on sale of securities	113	204
Net gain on sale of loans	659	461
ATM fees	1,988	1,996
Trust fees	3,130	2,627
Bank owned life insurance	492	555
Tax refund processing fees	2,324	430
Computer center item processing fees	260	248
Net gain on sale of other real estate owned	44	120
Other	745	1,220
Total noninterest income	13,874	12,062
Noninterest expense
Salaries, wages and benefits	22,293	24,758
Net occupancy expense	2,256	2,209
Equipment expense	1,421	1,273
Contracted data processing	1,560	1,306
FDIC Assessment	905	1,008
State franchise tax	888	1,130
Professional services	1,855	1,677
Amortization of intangible assets	769	846
ATM expense	806	650
Marketing expense	1,159	634
Repossession expense	673	964
Other operating expenses	6,965	6,929
Total noninterest expense	41,550	43,384
Income before income taxes	12,690	7,552
Income taxes	3,162	1,373
Net income	9,528	6,179
Preferred stock dividends and discount accretion	1,873	1,159
Net income available to common shareholders	$ 7,655	$ 5,020
Earnings per common share, basic	$ 0.99	$ 0.65
Earnings per common share, diluted	$ 0.85	$ 0.64

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Allowance for Loan Losses

12 Months Ended

Dec. 31, 2014

Text Block [Abstract]

Allowance for Loan Losses

NOTE 4—ALLOWANCE FOR LOAN LOSSES

Management has an established methodology to determine the adequacy of the allowance for loan losses that assesses the risks and losses inherent in the loan portfolio. For purposes of determining the allowance for loan losses, the Company has segmented certain loans in the portfolio by product type. Loans are segmented into the following pools: Commercial and Agriculture loans, Commercial Real Estate – Owner Occupied loans, Commercial Real Estate – Non-owner Occupied loans, Residential Real Estate loans, Real Estate Construction loans and Consumer and Other loans. Historical loss percentages for each risk category are calculated and used as the basis for calculating allowance allocations. These historical loss percentages are calculated over a three year period for all portfolio segments. Certain economic factors are also considered for trends which management uses to establish the directionality of changes to the unallocated portion of the reserve. The following economic factors are analyzed:

• Changes in lending policies and procedures

• Changes in experience and depth of lending and management staff

• Changes in quality of Citizens’ credit review system

• Changes in the nature and volume of the loan portfolio

• Changes in past due, classified and nonaccrual loans and TDRs

• Changes in economic and business conditions

• Changes in competition or legal and regulatory requirements

• Changes in concentrations within the loan portfolio

• Changes in the underlying collateral for collateral dependent loans

The total allowance reflects management’s estimate of loan losses inherent in the loan portfolio at the consolidated balance sheet date. The Company considers the allowance for loan losses of $14,268 adequate to cover loan losses inherent in the loan portfolio, at December 31, 2014. The following tables present by portfolio segment, the changes in the allowance for loan losses, the ending allocation of the allowance for loan losses and the loan balances outstanding for the period ended December 31, 2014 and December 31, 2013. The changes can be impacted by overall loan volume, adversely graded loans, historical charge-offs and economic factors.

	Commercial & Agriculture			Commercial Real Estate— Owner Occupied			Commercial Real Estate— Non-Owner Occupied			Residential Real Estate			Real Estate Construction		Consumer and Other			Unallocated		Total
December 31, 2014
Allowance for loan losses:
Beginning balance	$	2,841		$	3,263		$	4,296		$	5,224		$	184	$	214		$	506	$	16,528
Charge-offs		(338	)		(1,661	)		(198	)		(2,449	)		—		(135	)		—		(4,781	)
Recoveries		249			363			50			292			6		61			—		1,021
Provision		(930	)		615			650			680			238		56			191		1,500
Ending Balance	$	1,822		$	2,580		$	4,798		$	3,747		$	428	$	196		$	697	$	14,268

For the year ended December 31, 2014, the allowance for Commercial and Agriculture loans was reduced not only by charge-offs, but also due to a decrease in both the loan balances outstanding and the specific reserve required for this type, which was driven by a decrease in the volume of impaired loans and classified loans. The net result of these changes was represented as a decrease in the provision. The decrease in the allowance for Commercial Real Estate—Owner Occupied loans was the result of eleven charge-offs, but also due to a decrease in loan balances outstanding and a decline in nonaccrual loans. The result of these changes was represented as a decrease in the allowance. The increase in the allowance for Commercial Real Estate—Non-Owner Occupied loans was the result of increasing loan balances and increased past-due balances. The allowance for Real Estate Construction loans increased as a result of a significant increase in loan balances. The ending reserve balance for Residential Real Estate loans declined from the end of the previous year due to charge-offs of loans that had a specific reserve previously applied. Additionally, a single relationship resulted in losses of $1,436 related to protecting the Company’s collateral. The net result of the changes was represented as a decrease in the allowance. The allowance for Consumer and Other loans decreased slightly during the year. While loan balances are up, loss rates continue to decrease resulting in the allowance being slightly lower. While we have seen improvement in asset quality, given the uncertainty in the economy, management determined that it was appropriate to maintain unallocated reserves at a slightly higher level at this time.

	Commercial & Agriculture			Commercial Real Estate— Owner Occupied			Commercial Real Estate— Non-Owner Occupied			Residential Real Estate			Real Estate Construction			Consumer and Other			Unallocated		Total
December 31, 2013
Allowance for loan losses:
Beginning balance	$	2,811		$	4,836		$	5,303		$	5,780		$	349		$	246		$	417	$	19,742
Charge-offs		(483	)		(989	)		(815	)		(2,907	)		(136	)		(220	)		—		(5,550	)
Recoveries		141			265			184			458			108			80			—		1,236
Provision		372			(849	)		(376	)		1,893			(137	)		108			89		1,100
Ending Balance	$	2,841		$	3,263		$	4,296		$	5,224		$	184		$	214		$	506	$	16,528

For the year ended December 31, 2013, the allowance for Commercial Real Estate loans was reduced not only by charge-offs, but also due to the specific reserve required for impaired loans within this segment. The net result of these changes was represented as a decrease in the provision. The allowance for Real Estate Construction loans was reduced as a result of changes to specific reserves required for impaired loans and a reduction in the historical charge-offs for this segment. The result of these changes was represented as a decrease in the provision. The ending reserve balance for Residential Real Estate loans declined from the end of the previous year due to charge-offs during the period. Since these charged-off loans already had specific reserves assigned to them, we no longer need to carry as large a reserve for this segment. While we have seen improvement in asset quality, given the uncertainty in the economy, management determined that it was appropriate to maintain unallocated reserves at a higher level at this time.

	Commercial & Agriculture		Commercial Real Estate— Owner Occupied		Commercial Real Estate— Non-Owner Occupied		Residential Real Estate		Real Estate Construction		Consumer and Other		Unallocated		Total
December 31, 2014
Allowance for loan losses:
Ending balance:
Individually evaluated for impairment	$	641	$	57	$	20	$	305	$	—	$	—	$	—	$	1,023
Ending balance:
Collectively evaluated for impairment	$	1,181	$	2,523	$	4,778	$	3,442	$	428	$	196	$	697	$	13,245
Ending balance	$	1,822	$	2,580	$	4,798	$	3,747	$	428	$	196	$	697	$	14,268
Loan balances outstanding:
Ending balance:
Individually evaluated for impairment	$	2,304	$	3,557	$	2,175	$	3,108	$	—	$	5			$	11,149
Ending balance:
Collectively evaluated for impairment	$	111,882	$	139,457	$	306,491	$	265,402	$	65,452	$	15,024			$	903,708
Ending balance	$	114,186	$	143,014	$	308,666	$	268,510	$	65,452	$	15,029			$	914,857

	Commercial & Agriculture		Commercial Real Estate— Owner Occupied		Commercial Real Estate— Non-Owner Occupied		Residential Real Estate		Real Estate Construction		Consumer and Other		Unallocated		Total
December 31, 2013
Allowance for loan losses:
Ending balance:
Individually evaluated for impairment	$	1,262	$	390	$	55	$	802	$	—	$	—	$	—	$	2,509
Ending balance:
Collectively evaluated for impairment	$	1,579	$	2,873	$	4,241	$	4,422	$	184	$	214	$	506	$	14,019
Ending balance	$	2,841	$	3,263	$	4,296	$	5,224	$	184	$	214	$	506	$	16,528
Loan balances outstanding:
Ending balance:
Individually evaluated for impairment	$	3,869	$	6,792	$	3,383	$	4,005	$	—	$	8			$	18,057
Ending balance:
Collectively evaluated for impairment	$	112,006	$	154,222	$	279,449	$	246,686	$	39,964	$	10,857			$	843,184
Ending balance	$	115,875	$	161,014	$	282,832	$	250,691	$	39,964	$	10,865			$	861,241

The following table represents credit exposures by internally assigned risk ratings for the periods ended December 31, 2014 and 2013. The remaining loans in Residential Real Estate, Real Estate Construction and Consumer and Other loans that are not assigned a risk grade are presented in a separate table below. The risk rating analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled or at all. The Company’s internal credit risk rating system is based on experiences with similarly graded loans.

The Company’s internally assigned grades are as follows:

• Pass – loans which are protected by the current net worth and paying capacity of the obligor or by the value of the underlying collateral.

• Special Mention – loans where a potential weakness or risk exists, which could cause a more serious problem if not corrected.

• Substandard – loans that have a well-defined weakness based on objective evidence and are characterized by the distinct possibility that Citizens will sustain some loss if the deficiencies are not corrected.

• Doubtful – loans classified as doubtful have all the weaknesses inherent in a substandard asset. In addition, these weaknesses make collection or liquidation in full highly questionable and improbable, based on existing circumstances.

• Loss – loans classified as a loss are considered uncollectible, or of such value that continuance as an asset is not warranted.

• Unrated – Generally, consumer loans are not risk-graded, except when collateral is used for a business purpose.

December 31, 2014	Commercial & Agriculture		Commercial Real Estate— Owner Occupied		Commercial Real Estate— Non-Owner Occupied		Residential Real Estate		Real Estate Construction		Consumer and Other		Total
Pass	$	107,903	$	128,222	$	298,237	$	100,810	$	59,584	$	5,651	$	700,407
Special Mention		3,446		5,492		6,305		697		19		—		15,959
Substandard		2,837		9,300		4,124		8,834		41		46		25,182
Doubtful		—		—		—		—		—		—		—
Ending Balance	$	114,186	$	143,014	$	308,666	$	110,341	$	59,644	$	5,697	$	741,548

December 31, 2013	Commercial & Agriculture		Commercial Real Estate— Owner Occupied		Commercial Real Estate— Non-Owner Occupied		Residential Real Estate		Real Estate Construction		Consumer and Other		Total
Pass	$	107,923	$	143,531	$	272,407	$	98,700	$	35,495	$	2,252	$	660,308
Special Mention		2,038		4,334		4,811		986		21		—		12,190
Substandard		5,914		13,149		5,614		8,175		—		70		32,922
Doubtful		—		—		—		2,349		—		—		2,349
Ending Balance	$	115,875	$	161,014	$	282,832	$	110,210	$	35,516	$	2,322	$	707,769

The following tables present performing and nonperforming loans based solely on payment activity for the periods ended December 31, 2014 and December 31, 2013 that have not been assigned an internal risk grade. The types of loans presented here are not assigned a risk grade unless there is evidence of a problem. Payment activity is reviewed by management on a monthly basis to evaluate performance. Loans are considered to be nonperforming when they become 90 days past due or if management thinks that we may not collect all of our principal and interest. Nonperforming loans also include certain loans that have been modified in Troubled Debt Restructurings (TDRs) where economic concessions have been granted to borrowers who have experienced or are expected to experience financial difficulties. These concessions typically result from the Company’s loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions due to economic status. Certain TDRs are classified as nonperforming at the time of restructure and may only be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months.

	Residential Real Estate		Real Estate Construction		Consumer and Other		Total
December 31, 2014
Performing	$	158,169	$	5,808	$	9,332	$	173,309
Nonperforming		—		—		—		—
Total	$	158,169	$	5,808	$	9,332	$	173,309

	Residential Real Estate		Real Estate Construction		Consumer and Other		Total
December 31, 2013
Performing	$	140,481	$	4,448	$	8,543	$	153,472
Nonperforming		—		—		—		—
Total	$	140,481	$	4,448	$	8,543	$	153,472

Following tables include an aging analysis of the recorded investment of past due loans outstanding as of December 31, 2014 and 2013.

December 31, 2014	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater		Total Past Due		Current		Total Loans		Past Due 90 Days and Accruing
Commercial & Agriculture	$	58	$	—	$	187	$	245	$	113,941	$	114,186	$	—
Commercial Real Estate—Owner Occupied		622		251		657		1,530		141,484		143,014		—
Commercial Real Estate—Non-Owner Occupied		521		5		2,103		2,629		306,037		308,666		—
Residential Real Estate		1,923		721		2,347		4,991		263,519		268,510		—
Real Estate Construction		33		—		8		41		65,411		65,452		—
Consumer and Other		131		8		19		158		14,871		15,029		—
Total	$	3,288	$	985	$	5,321	$	9,594	$	905,263	$	914,857	$	—

December 31, 2013	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater		Total Past Due		Current		Total Loans		Past Due 90 Days and Accruing
Commercial & Agriculture	$	105	$	—	$	443	$	548	$	115,327	$	115,875	$	—
Commercial Real Estate—Owner Occupied		253		188		1,643		2,084		158,930		161,014		—
Commercial Real Estate—Non-Owner Occupied		208		13		455		676		282,156		282,832		—
Residential Real Estate		3,140		1,084		5,531		9,755		240,936		250,691		—
Real Estate Construction		—		—		—		—		39,964		39,964		—
Consumer and Other		170		20		—		190		10,675		10,865		—
Total	$	3,876	$	1,305	$	8,072	$	13,253	$	847,988	$	861,241	$	—

The following table presents loans on nonaccrual status as of December 31, 2014 and 2013.

	2014		2013
Commercial & Agriculture	$	1,264	$	1,590
Commercial Real Estate—Owner Occupied		3,403		6,360
Commercial Real Estate—Non-Owner Occupied		2,134		3,249
Residential Real Estate		6,674		9,210
Real Estate Construction		41		—
Consumer and Other		42		50
Total	$	13,558	$	20,459

Nonaccrual Loans: Loans are considered for nonaccrual status upon reaching 90 days delinquency, unless the loan is well secured and in the process of collection, although the Company may be receiving partial payments of interest and partial repayments of principal on such loans. When a loan is placed on nonaccrual status, previously accrued but unpaid interest is deducted from interest income. A loan may be returned to accruing status only if one of three conditions are met: the loan is well-secured and none of the principal and interest has been past due for a minimum of 90 days; the loan is a TDR and has made a minimum of six months payments; or the principal and interest payments are reasonably assured and a sustained period of performance has occurred, generally six months.

Modifications: A modification of a loan constitutes a troubled debt restructuring (“TDR”) when the Company for economic or legal reasons related to a borrower’s financial difficulties grants a concession to the borrower that it would not otherwise consider. The Company offers various types of concessions when modifying a loan, however, forgiveness of principal is rarely granted. Commercial Real Estate loans modified in a TDR often involve reducing the interest rate lower than the current market rate for new debt with similar risk. Real Estate loans modified in a TDR were primarily comprised of interest rate reductions where monthly payments were lowered to accommodate the borrowers’ financial needs.

Loans modified in a TDR are typically already on non-accrual status and partial charge-offs have in some cases already been taken against the outstanding loan balance. As a result, loans modified in a TDR may have the financial effect of increasing the specific allowance associated with the loan. An allowance for impaired loans that have been modified in a TDR are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or the estimated fair value of the collateral, less any selling costs, if the loan is collateral dependent. Management exercises significant judgment in developing these estimates. As of December 31, 2014, TDRs accounted for $895 of the allowance for loan losses.

Loan modifications that are considered TDRs completed during the twelve month periods ended December 31, 2014 and December 31, 2013 were as follows:

	For the Twelve Month Period Ended December 31, 2014						For the Twelve Month Period Ended December 31, 2013
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial & Agriculture		—	$	—	$	—		—	$	—	$	—
Commercial Real Estate—Owner Occupied		—		—		—		2		547		547
Commercial Real Estate—Non-Owner Occupied		—		—		—		—		—		—
Residential Real Estate		9		619		554		—		—		—
Real Estate Construction		1		35		35		—		—		—
Consumer and Other		—		—		—		—		—		—
Total Loan Modifications		10	$	654	$	589		2	$	547	$	547

Recidivism, or the borrower defaulting on its obligation pursuant to a modified loan, results in the loan once again becoming a non-accrual loan. Recidivism occurs at a notably higher rate than do defaults on new originations loans, so modified loans present a higher risk of loss than do new origination loans. During both the twelve month period ended December 31, 2014 and December 31, 2013, there were no defaults on loans that were modified and considered TDRs during the respective twelve previous months.

Impaired Loans: Larger (greater than $500) commercial loans and commercial real estate loans, all TDRs and residential real estate and consumer loans that are part of a larger relationship are tested for impairment. These loans are analyzed to determine if it is probable that all amounts will not be collected according to the contractual terms of the loan agreement. If management determines that the value of the impaired loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized through an allowance estimate or a charge-off to the allowance.

The following tables include the recorded investment and unpaid principal balances for impaired financing receivables with the associated allowance amount, if applicable as of December 31, 2014 and 2013.

	December 31, 2014						December 31, 2013
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded:
Commercial & Agriculture	$	1,377	$	1,504			$	1,525	$	1,657
Commercial Real Estate—Owner Occupied		2,961		3,327				2,891		3,027
Commercial Real Estate—Non-Owner Occupied		92		140				3,092		3,187
Residential Real Estate		1,893		3,487				1,202		2,263
Consumer and Other		5		5				8		8
Total		6,328		8,463				8,718		10,142
With an allowance recorded:
Commercial & Agriculture		927		1,056	$	641		2,344		2,437	$	1,262
Commercial Real Estate—Owner Occupied		596		643		57		3,901		4,201		390
Commercial Real Estate—Non-Owner Occupied		2,083		2,287		20		291		295		55
Residential Real Estate		1,215		1,223		305		2,803		4,021		802
Total		4,821		5,209		1,023		9,339		10,954		2,509
Total:
Commercial & Agriculture		2,304		2,560		641		3,869		4,094		1,262
Commercial Real Estate—Owner Occupied		3,557		3,970		57		6,792		7,228		390
Commercial Real Estate—Non-Owner Occupied		2,175		2,427		20		3,383		3,482		55
Residential Real Estate		3,108		4,710		305		4,005		6,284		802
Consumer and Other		5		5		—		8		8		—
Total	$	11,149	$	13,672	$	1,023	$	18,057	$	21,096	$	2,509

For the year ended:	December 31, 2014				December 31, 2013
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial & Agriculture	$	3,316	$	104	$	4,761	$	186
Commercial Real Estate—Owner Occupied		5,720		219		6,064		436
Commercial Real Estate—Non-Owner Occupied		2,767		40		5,855		85
Residential Real Estate		3,510		207		5,038		282
Real Estate Construction		—		—		302		—
Consumer and Other		6		—		31		—
Total	$	15,319	$	570	$	22,051	$	989

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Loans

12 Months Ended

Dec. 31, 2014

Receivables [Abstract]

Loans

NOTE 3—LOANS

Loans at year-end were as follows.

	2014			2013
Commercial and Agriculture	$	114,186		$	115,875
Commercial Real Estate—owner occupied		143,014			161,014
Commercial Real Estate—non-owner occupied		308,666			282,832
Residential Real Estate		268,510			250,691
Real Estate Construction		65,452			39,964
Consumer and Other		15,029			10,865
Total Loans		914,857			861,241
Allowance for loan losses		(14,268	)		(16,528	)
Net loans	$	900,589		$	844,713

Included in total loans above are deferred loan fees of $237 at December 31, 2014 and $365 at December 31, 2013.

Loans to principal officers, directors, and their affiliates at year-end 2014 and 2013 were as follows.

	2014			2013
Balance—Beginning of year	$	9,294		$	9,997
New loans and advances		2,700			3,262
Repayments		(2,792	)		(3,157	)
Effect of changes to related parties		(2,171	)		(808	)
Balance—End of year	$	7,031		$	9,294

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Stock Options

12 Months Ended

Dec. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Options

NOTE 15—STOCK OPTIONS

Options to buy stock were previously granted to directors, officers and employees under the Company’s stock option plan, which was approved by shareholders on April 18, 2000 and authorized the Company to issue up to 225,000 options. The exercise price of the stock options was the market price at date of grant. The maximum option term was ten years, and options vested after three years. The Company’s 2000 stock option plan expired in 2010, and no further stock options may be granted under the plan. Additionally, all options outstanding under the 2000 plan expired on April 12, 2013.

At the Company’s annual meeting of shareholders held on April 15, 2014, the shareholders of the Company approved the First Citizens Banc Corp 2014 Incentive Plan (“2014 Incentive Plan” and together with the 2000 Stock Option Plan, the “Plans”). The 2014 Incentive Plan authorizes the Company to grant options, stock awards, stock units and other awards for up to 375,000 common shares of the Company. No options or awards have been granted under the 2014 Incentive Plan.

A summary of the activity in the stock option plan is as follows.

	2013
	Shares			Weighted Average Exercise Price
Outstanding at beginning of year		10,000		$	35.00
Granted		—			—
Exercised		—			—
Forfeited		—			—
Expired		(10,000	)		35.00
Outstanding at end of year	$	—		$	—
Options exercisable at year-end	$	—		$	—

The intrinsic value for stock options is calculated based on the exercise price of the underlying awards and the market price of the common stock as of the reporting date. As of December 31, 2014 and December 31, 2013, there were no options outstanding.

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Securities Sold Under Agreements to Repurchase

12 Months Ended

Dec. 31, 2014

Banking and Thrift [Abstract]

Securities Sold Under Agreements to Repurchase

NOTE 11—SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

Information concerning securities sold under agreements to repurchase was as follows.

	2014			2013
Outstanding balance at year end	$	21,613		$	20,053
Average balance during the year		19,759			20,749
Average interest rate during the year		0.10	%		0.10	%
Maximum month-end balance during the year	$	33,764		$	24,257
Weighted average interest rate at year end		0.10	%		0.10	%

Securities underlying repurchase agreements had a fair value of $21,613 at December 31, 2014 and $20,053 at December 31, 2013.

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Interest-Bearing Deposits - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Deposits [Line Items]
Deposits from principal officers, directors, and their affiliates	$ 968,918	$ 942,475
Total of CDs and IRAs	19,624
Principal officers, directors, and their affiliates [Member]
Deposits [Line Items]
Deposits from principal officers, directors, and their affiliates	$ 6,882	$ 8,606

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Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

NOTE 7—GOODWILL AND INTANGIBLE ASSETS

There has been no change in the carrying amount of goodwill of $21,720 for the years ended December 31, 2014 and December 31, 2013.

Management performs an annual evaluation of goodwill for impairment, or more frequently if events or changes in circumstances indicate that the asset might be impaired. Management performed an evaluation of the Company’s goodwill during the fourth quarter of 2014. In performing its evaluation, management obtained several commonly used financial ratios from pending and completed purchase transactions for banks based in the Midwest. Management used these ratios to determine an implied market value for the Company. The implied market value was then used to determine whether or not additional testing was required. Based on this test, management concluded that the Company’s goodwill was not impaired at December 31, 2014.

Acquired Intangible Assets
Acquired intangible assets were as follows as of year end.
	2014				2013
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Core deposit and other intangibles	$	6,688	$	5,165	$	11,619	$	9,326

Aggregate amortization expense was $769 and $846 for 2014 and 2013.

Estimated amortization expense for each of the next three years and thereafter is as follows.

2015	$	554
2016		522
2017		447
Thereafter		—
	$	1,523

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Securities - Securities with Unrealized Losses Not Recognized in Income (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Schedule of Available-for-sale Securities [Line Items]
12 Months or less, Fair Value	$ 20,806	$ 92,234
12 Months or less, Unrealized Loss	(57)	(2,905)
More than 12 months, Fair Value	29,027	1,247
More than 12 months, Unrealized Loss	(552)	(125)
Total Fair Value	49,833	93,481
Total Unrealized Loss	(609)	(3,030)
U.S. Treasury Securities and Obligations of U.S. Government Agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
12 Months or less, Fair Value	7,664	30,800
12 Months or less, Unrealized Loss	(17)	(764)
More than 12 months, Fair Value	11,888
More than 12 months, Unrealized Loss	(106)
Total Fair Value	19,552	30,800
Total Unrealized Loss	(123)	(764)
Obligations of States and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
12 Months or less, Fair Value	853	28,428
12 Months or less, Unrealized Loss	(11)	(1,556)
More than 12 months, Fair Value	5,647	968
More than 12 months, Unrealized Loss	(295)	(121)
Total Fair Value	6,500	29,396
Total Unrealized Loss	(306)	(1,677)
Mortgage-backed Securities in Government Sponsored Entities [Member]
Schedule of Available-for-sale Securities [Line Items]
12 Months or less, Fair Value	12,289	32,557
12 Months or less, Unrealized Loss	(29)	(553)
More than 12 months, Fair Value	11,492	279
More than 12 months, Unrealized Loss	(151)	(4)
Total Fair Value	23,781	32,836
Total Unrealized Loss	(180)	(557)
Equity Securities in Financial Institutions [Member]
Schedule of Available-for-sale Securities [Line Items]
12 Months or less, Fair Value		449
12 Months or less, Unrealized Loss		(32)
Total Fair Value		449
Total Unrealized Loss		$ (32)

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Capital Requirements and Restriction on Retained Earnings - Actual Capital Levels and Minimum Required Levels (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Consolidated [Member]
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items]
Total Capital to risk-weighted assets, Actual, Amount	$ 131,581	$ 143,628
Tier I (Core) Capital to risk-weighted assets, Actual, Amount	120,334	133,041
Tier I (Core) Capital to average assets, Actual, Amount	120,334	133,041
Total Capital to risk-weighted assets, Actual, Ratio	14.70%	17.10%
Tier I (Core) Capital to risk-weighted assets, Actual, Ratio	13.40%	15.80%
Tier I (Core) Capital to average assets, Actual, Ratio	10.30%	11.60%
Total Capital to risk-weighted assets, For Capital Adequacy Purposes, Amount	71,609	67,194
Tier I (Core) Capital to risk-weighted assets, For Capital Adequacy Purposes, Amount	35,921	33,681
Tier I (Core) Capital to average assets, For Capital Adequacy Purposes, Amount	46,732	45,876
Total Capital to risk-weighted assets, For Capital Adequacy Purposes, Ratio	8.00%	8.00%
Tier I (Core) Capital to risk-weighted assets, For Capital Adequacy Purposes, Ratio	4.00%	4.00%
Tier I (Core) Capital to average assets, For Capital Adequacy Purposes, Ratio	4.00%	4.00%
Citizens [Member]
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items]
Total Capital to risk-weighted assets, Actual, Amount	111,470	104,884
Tier I (Core) Capital to risk-weighted assets, Actual, Amount	100,259	94,302
Tier I (Core) Capital to average assets, Actual, Amount	100,259	94,302
Total Capital to risk-weighted assets, Actual, Ratio	12.50%	12.50%
Tier I (Core) Capital to risk-weighted assets, Actual, Ratio	11.20%	11.20%
Tier I (Core) Capital to average assets, Actual, Ratio	8.60%	8.30%
Total Capital to risk-weighted assets, For Capital Adequacy Purposes, Amount	71,341	67,126
Tier I (Core) Capital to risk-weighted assets, For Capital Adequacy Purposes, Amount	35,807	33,679
Tier I (Core) Capital to average assets, For Capital Adequacy Purposes, Amount	46,632	45,447
Total Capital to risk-weighted assets, For Capital Adequacy Purposes, Ratio	8.00%	8.00%
Tier I (Core) Capital to risk-weighted assets, For Capital Adequacy Purposes, Ratio	4.00%	4.00%
Tier I (Core) Capital to average assets, For Capital Adequacy Purposes, Ratio	4.00%	4.00%
Total Capital to risk-weighted assets, To Be Well Capitalized Under Prompt Corrective Action Purposes, Amount	89,176	83,907
Tier I (Core) Capital to risk-weighted assets, To Be Well Capitalized Under Prompt Corrective Action Purposes, Amount	53,710	50,519
Tier I (Core) Capital to average assets, To Be Well Capitalized Under Prompt Corrective Action Purposes, Amount	$ 58,290	$ 56,808
Total Capital to risk-weighted assets, To Be Well Capitalized Under Prompt Corrective Action Purposes, Ratio	10.00%	10.00%
Tier I (Core) Capital to risk-weighted assets, To Be Well Capitalized Under Prompt Corrective Action Purposes, Ratio	6.00%	6.00%
Tier I (Core) Capital to average assets, To Be Well Capitalized Under Prompt Corrective Action Purposes, Ratio	5.00%	5.00%

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Other Comprehensive Income

12 Months Ended

Dec. 31, 2014

Equity [Abstract]

Other Comprehensive Income

NOTE 5—OTHER COMPREHENSIVE INCOME

The following table presents the changes in each component of accumulated other comprehensive loss, net of tax, as of December 31, 2014 and December 31, 2013.

	For the Year Ended December 31, 2014									For the Year Ended December 31, 2013
	Unrealized Gains and Losses on Available for Sale Securities			Defined Benefit Pension Items			Total			Unrealized Gains and Losses on Available for Sale Securities			Defined Benefit Pension Items			Total
Beginning balance	$	341		$	(4,588	)	$	(4,247	)	$	5,849		$	(7,496	)	$	(1,647	)
Other comprehensive income (loss) before reclassifications		3,464			591			4,055			(5,373	)		—			(5,373	)
Amounts reclassified from accumulated other comprehensive loss		(75	)		220			145			(135	)		2,908			2,773
Net current-period other comprehensive income (loss)		3,389			811			4,200			(5,508	)		2,908			(2,600	)
Ending balance	$	3,730		$	(3,777	)	$	(47	)	$	341		$	(4,588	)	$	(4,247	)

Amounts in parentheses indicate increases in shareholders’ equity.

The following table presents the amounts reclassified out of each component of accumulated other comprehensive loss as of December 31, 2014 and December 31, 2013:

	Amount Reclassified from Accumulated Other Comprehensive Loss (a)
Details about Accumulated Other Comprehensive Loss Components	For the year ended December 31, 2014			For the year ended December 31, 2013			Affected Line Item in the Statement Where Net Income is Presented
Unrealized gains on available-for-sale securities	$	113		$	204		Net gain on sale of securities
Tax effect		(38	)		(69	)	Income taxes
		75			135		Net of tax
Amortization of defined benefit pension items
Actuarial losses		(334	)(b)		(4,406	)(b)	Salaries, wages and benefits
Tax effect		114			1,498		Income taxes
		(220	)		(2,908	)	Net of tax
Total reclassifications for the period	$	(145	)	$	(2,773	)	Net of tax

(a) Amounts in parentheses indicate expenses and other amounts indicate income.

(b) These accumulated other comprehensive income components are included in the computation of net periodic pension cost.

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Premises and Equipment

12 Months Ended

Dec. 31, 2014

Property, Plant and Equipment [Abstract]

Premises and Equipment

NOTE 6—PREMISES AND EQUIPMENT

Year-end premises and equipment were as follows.

	2014			2013
Land and improvements	$	3,770		$	4,083
Buildings and improvements		17,373			19,681
Furniture and equipment		13,942			16,751
Total		35,085			40,515
Accumulated depreciation		(20,685	)		(24,202	)
Premises and equipment, net	$	14,400		$	16,313

Depreciation expense was $1,176 and $1,334 for 2014 and 2013, respectively.

Rent expense was $377 and $367 for 2014 and 2013, respectively. Rent commitments under non-cancelable operating leases at December 31, 2014 were as follows, before considering renewal options that generally are present.

2015	$	335
2016		273
2017		256
2018		117
2019		88
Thereafter		—
Total	$	1,069

The rent commitments listed above are primarily for the leasing of five financial services branches.

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Interest-Bearing Deposits

12 Months Ended

Dec. 31, 2014

Text Block [Abstract]

Interest-Bearing Deposits

NOTE 8—INTEREST-BEARING DEPOSITS

Interest-bearing deposits as of December 31, 2014 and 2013 were as follows.

	2014		2013
Demand	$	179,388	$	168,113
Statement and Passbook Savings		318,859		303,037
Certificates of Deposit:
In excess of $100		53,669		66,561
Other		139,531		139,586
Individual Retirement Accounts		26,770		30,202
Total	$	718,217	$	707,499

Scheduled maturities of certificates of deposit, including IRA’s at December 31, 2014 were as follows.

2015	$	115,336
2016		52,031
2017		31,715
2018		4,814
2019		10,750
Thereafter		5,324
Total	$	219,970

Deposits from principal officers, directors, and their affiliates at year-end 2014 and 2013 were $6,882 and $8,606, respectively.

As of December 31, 20014, CDs and IRAs totaling $19,624 met or exceeded the FDIC’s insurance limit.

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Allowance for Loan Losses - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014 Loans SecurityLoan	Dec. 31, 2013 SecurityLoan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Historical loss percentage period for portfolio segments	3 years
Allowance for loan losses	$ 14,268	$ 16,528
Number Of Loans Charged Off	11
Provision for loan losses	1,500	1,100
Number of days past due for loans to be considered as nonperforming	90 days
Reasonable period for nonperforming TDRs to be returned to performing status	6 months
Number of days reaching where loans are considered for nonaccrual status	90 days
Conditions where loans are considered for nonaccrual status	A loan may be returned to accruing status only if one of three conditions are met the loan is well-secured and none of the principal and interest has been past due for a minimum of 90 days; the loan is a TDR and has made a minimum of six months payments; or the principal and interest payments are reasonably assured and a sustained period of performance has occurred, generally six months.
Defaulted loans	0	0
Impaired loans	Greater than $500
Company Collateral [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Provision for loan losses	1,436
TDRs [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	$ 895

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Subsequent Events - Schedule of Pro Forma Information - Condensed Income Statement (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Condensed Financial Statements, Captions [Line Items]
Total interest and dividend income	$ 11,623	$ 11,667	$ 11,365	$ 11,315	$ 11,443	$ 11,127	$ 11,025	$ 11,286	$ 45,970	$ 44,881
Total interest expense									4,104	4,907
Net interest income	10,751	10,684	10,266	10,165	10,289	9,917	9,781	9,987	41,866	39,974
Net interest income after provision for loan losses									40,366	38,874
Total noninterest income									13,874	12,062
Total noninterest expense									41,550	43,384
Income taxes									3,162	1,373
Net income	2,270	2,306	2,240	2,712	1,043	1,566	1,657	1,913	9,528	6,179
Preferred stock dividends and discount accretion									1,873	1,159
Net income available to common shareholders									7,655	5,020
Earnings per common share, basic	$ 0.23	$ 0.25	$ 0.24	$ 0.27	$ 0.09	$ 0.17	$ 0.18	$ 0.21	$ 0.99	$ 0.65
Earnings per common share, diluted	$ 0.21	$ 0.21	$ 0.21	$ 0.22	$ 0.08	$ 0.17	$ 0.18	$ 0.21	$ 0.85	$ 0.64
Pro Forma [Member] | TCNB Financial Corp [Member] | FCBC Financial Corp [Member]
Condensed Financial Statements, Captions [Line Items]
Total interest and dividend income									50,597	49,668
Total interest expense									4,440	5,280
Net interest income									46,157	44,388
Provision for loan losses									1,535	1,180
Net interest income after provision for loan losses									44,622	43,208
Total noninterest income									14,316	12,506
Total noninterest expense									45,220	46,833
Income before income taxes									13,718	8,881
Income taxes									3,483	1,710
Net income									10,235	7,171
Preferred stock dividends and discount accretion									1,873	1,159
Net income available to common shareholders									$ 8,362	$ 6,012
Earnings per common share, basic									$ 1.08	$ 0.78
Earnings per common share, diluted									$ 0.91	$ 0.77

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Short-Term Borrowings - Summary of Federal Funds Purchased and Other Short-term Borrowings (Detail) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Letters Of Credit [Line Items]
Outstanding balance at year end		$ 0
Federal Funds Purchased [Member]
Letters Of Credit [Line Items]
Maximum indebtedness during the year		10,000,000
Average balance during the year	41,000	28,000
Average rate paid during the year	0.54%	0.53%
Federal Home Loan Bank Advances [Member]
Letters Of Credit [Line Items]
Outstanding balance at year end	42,700,000
Maximum indebtedness during the year	42,700,000
Average balance during the year	$ 1,951,000
Average rate paid during the year	0.19%
Interest rate on year end balance	0.14%

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Allowance for Loan Losses - Ending Allocation of Allowance for Loan Losses and Loan Balances Outstanding (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	$ 1,023	$ 2,509
Collectively evaluated for impairment	13,245	14,019
Ending Balance	14,268	16,528	19,742
Loan balances outstanding:
Individually evaluated for impairment	11,149	18,057
Collectively evaluated for impairment	903,708	843,184
Ending Balance	914,857	861,241
Commercial and Agriculture [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	641	1,262
Collectively evaluated for impairment	1,181	1,579
Ending Balance	1,822	2,841	2,811
Loan balances outstanding:
Individually evaluated for impairment	2,304	3,869
Collectively evaluated for impairment	111,882	112,006
Ending Balance	114,186	115,875
Commercial Real Estate Owner Occupied [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	57	390
Collectively evaluated for impairment	2,523	2,873
Ending Balance	2,580	3,263	4,836
Loan balances outstanding:
Individually evaluated for impairment	3,557	6,792
Collectively evaluated for impairment	139,457	154,222
Ending Balance	143,014	161,014
Commercial Real Estate Non Owner Occupied [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	20	55
Collectively evaluated for impairment	4,778	4,241
Ending Balance	4,798	4,296	5,303
Loan balances outstanding:
Individually evaluated for impairment	2,175	3,383
Collectively evaluated for impairment	306,491	279,449
Ending Balance	308,666	282,832
Residential Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	305	802
Collectively evaluated for impairment	3,442	4,422
Ending Balance	3,747	5,224	5,780
Loan balances outstanding:
Individually evaluated for impairment	3,108	4,005
Collectively evaluated for impairment	265,402	246,686
Ending Balance	268,510	250,691
Real Estate Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Collectively evaluated for impairment	428	184
Ending Balance	428	184	349
Loan balances outstanding:
Collectively evaluated for impairment	65,452	39,964
Ending Balance	65,452	39,964
Consumer and Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Collectively evaluated for impairment	196	214
Ending Balance	196	214	246
Loan balances outstanding:
Individually evaluated for impairment	5	8
Collectively evaluated for impairment	15,024	10,857
Ending Balance	15,029	10,865
Unallocated [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Collectively evaluated for impairment	697	506
Ending Balance	$ 697	$ 506	$ 417

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Retirement Plans - Summary of Expected Benefit Payments (Detail) (Supplemental Retirement Plan [Member], USD $) In Thousands, unless otherwise specified	Dec. 31, 2014
Supplemental Retirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
2015	$ 234
2016	297
2017	457
2018	481
2019	581
2020 through 2024	3,843
Total	$ 5,893

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Loans - Loans to Directors and Executive Officers Including Immediate Families (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Receivables, Other, Related Parties and Retainage [Abstract]
Balance - Beginning of year	$ 9,294	$ 9,997
New loans and advances	2,700	3,262
Repayments	(2,792)	(3,157)
Effect of changes to related parties	(2,171)	(808)
Balance - End of year	$ 7,031	$ 9,294

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Income Taxes - Schedule of Income Tax (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Income Tax Expense (Benefit), Continuing Operations [Abstract]
Current	$ 3,151	$ 11
Deferred	11	1,362
Income tax expense	$ 3,162	$ 1,373

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Securities (Tables)

12 Months Ended

Dec. 31, 2014

Investments, Debt and Equity Securities [Abstract]

Available for Sale Securities

The amortized cost and fair value of available for sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive loss were as follows.

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
2014
U.S. Treasury securities and obligations of U.S. government agencies	$	42,910	$	115	$	(123	)	$	42,902
Obligations of states and political subdivisions		83,215		5,112		(306	)		88,021
Mortgage-back securities in government sponsored entities		65,646		976		(180	)		66,442
Total debt securities		191,771		6,203		(609	)		197,365
Equity securities in financial institutions		481		59		—			540
Total	$	192,252	$	6,262	$	(609	)	$	197,905

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
2013
U.S. Treasury securities and obligations of U.S. government agencies	$	52,229	$	95	$	(764	)	$	51,560
Obligations of states and political subdivisions		79,975		2,327		(1,677	)		80,625
Mortgage-back securities in government sponsored entities		66,409		1,127		(557	)		66,979
Total debt securities		198,613		3,549		(2,998	)		199,164
Equity securities in financial institutions		481		—		(32	)		449
Total	$	199,094	$	3,549	$	(3,030	)	$	199,613

Fair Value of Securities by Contractual Maturity

The amortized cost and fair value of securities at year end 2014 by contractual maturity were as follows. Securities not due at a single maturity date, primarily mortgage-backed securities, are shown separately.

	Available for sale
	Amortized Cost		Fair Value
Due in one year or less	$	628	$	629
Due from one to five years		27,702		27,723
Due from five to ten years		34,718		36,191
Due after ten years		63,077		66,380
Mortgage-backed securities in government sponsored entities		65,646		66,442
Equity securities in financial institutions		481		540
Total	$	192,252	$	197,905

Proceeds from Sales of Securities, Gross Realized Gains and Losses

Proceeds from sales of securities, gross realized gains and gross realized losses were as follows.

	2014			2013
Sale proceeds	$	18,088		$	8,686
Gross realized gains		113			144
Gross realized losses		(1	)		(89	)
Gains from securities called or settled by the issuer		1			149

Securities with Unrealized Losses Not Recognized in Income

Debt securities with unrealized losses at year end 2014 and 2013 not recognized in income are as follows.

2014	12 Months or less					More than 12 months					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Treasury securities and obligations of U.S. government agencies	$	7,664	$	(17	)	$	11,888	$	(106	)	$	19,552	$	(123	)
Obligations of states and political subdivisions		853		(11	)		5,647		(295	)		6,500		(306	)
Mortgage-backed securities in gov’t sponsored entities		12,289		(29	)		11,492		(151	)		23,781		(180	)
Total temporarily impaired	$	20,806	$	(57	)	$	29,027	$	(552	)	$	49,833	$	(609	)
2013	12 Months or less					More than 12 months					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Treasury securities and obligations of U.S. government agencies	$	30,800	$	(764	)	$	—	$	—		$	30,800	$	(764	)
Obligations of states and political subdivisions		28,428		(1,556	)		968		(121	)		29,396		(1,677	)
Mortgage-backed securities in gov’t sponsored entities		32,557		(553	)		279		(4	)		32,836		(557	)
Equity securities in financial institutions		449		(32	)		—		—			449		(32	)
Total temporarily impaired	$	92,234	$	(2,905	)	$	1,247	$	(125	)	$	93,481	$	(3,030	)

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Earnings per Common Share (Tables)

12 Months Ended

Dec. 31, 2014

Earnings Per Share [Abstract]

Factors Used in Earnings Per Share Computation

The factors used in the earnings per share computation follow.

	2014		2013
Basic
Net income	$	9,528	$	6,179
Preferred stock dividends		1,873		1,159
Net income available to common shareholders—basic	$	7,655	$	5,020
Weighted average common shares outstanding—basic		7,707,917		7,707,917
Basic earnings per share	$	0.99	$	0.65
Diluted
Net income available to common shareholders—basic	$	7,655	$	5,020
Preferred stock dividends on convertible preferred stock		1,606		—
Net income available to common shareholders—diluted	$	9,261	$	5,020
Weighted average common shares outstanding for earnings per common share basic		7,707,917		7,707,917
Add: dilutive effects of convertible preferred shares		3,196,931		113,863
Average shares and dilutive potential common shares outstanding—diluted		10,904,848		7,821,780
Diluted earnings per share	$	0.85	$	0.64

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Income Taxes

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 13—INCOME TAXES

Income taxes were as follows.

	2014		2013
Current	$	3,151	$	11
Deferred		11		1,362
Income taxes	$	3,162	$	1,373

Effective tax rates differ from the statutory federal income tax rate of 34% due to the following.

	2014			2013
Income taxes computed at the statutory federal tax rate	$	4,315		$	2,568
Add (subtract) tax effect of:
Nontaxable interest income, net of nondeductible interest expense		(824	)		(781	)
Low income housing tax credit		(303	)		(280	)
Cash surrender value of BOLI		(167	)		(189	)
Other		141			55
Income tax expense	$	3,162		$	1,373

There were no tax benefits attributable to security losses in 2014 and 2013.

Year-end deferred tax assets and liabilities were due to the following.

	2014			2013
Deferred tax assets
Allowance for loan losses	$	4,851		$	5,620
Deferred compensation		1,386			1,223
Intangible assets		—			50
Pension costs		198			996
Impairment losses		—			146
Other		122			133
Deferred tax asset		6,557			8,168
Deferred tax liabilities
Tax depreciation in excess of book depreciation		(351	)		(466	)
Discount accretion on securities		(63	)		(77	)
Purchase accounting adjustments		(1,189	)		(1,465	)
FHLB stock dividends		(1,687	)		(2,249	)
Unrealized gain on securities available for sale		(1,922	)		(176	)
Other		(196	)		(174	)
Deferred tax liability		(5,408	)		(4,607	)
Net deferred tax asset	$	1,149		$	3,561

The Company and its subsidiaries are subject to U.S. federal income tax as well as income tax of the State of Ohio for all affiliates other than Citizens. Citizens is subject to tax in Ohio based upon its net worth.

There is currently no liability for uncertain tax positions and no known unrecognized tax benefits. The Company’s federal tax returns for taxable years through 2010 have been closed for purposes of examination by the Internal Revenue Service.

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Quarterly Financial Data (Unaudited) - Schedule of Quarterly Financial Data (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Income Statement [Abstract]
Interest Income	$ 11,623	$ 11,667	$ 11,365	$ 11,315	$ 11,443	$ 11,127	$ 11,025	$ 11,286	$ 45,970	$ 44,881
Net interest income	10,751	10,684	10,266	10,165	10,289	9,917	9,781	9,987	41,866	39,974
Net income	$ 2,270	$ 2,306	$ 2,240	$ 2,712	$ 1,043	$ 1,566	$ 1,657	$ 1,913	$ 9,528	$ 6,179
Basic Earnings per Common Share	$ 0.23	$ 0.25	$ 0.24	$ 0.27	$ 0.09	$ 0.17	$ 0.18	$ 0.21	$ 0.99	$ 0.65
Diluted Earnings per Common Share	$ 0.21	$ 0.21	$ 0.21	$ 0.22	$ 0.08	$ 0.17	$ 0.18	$ 0.21	$ 0.85	$ 0.64

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Capital Requirements and Restriction on Retained Earnings

12 Months Ended

Dec. 31, 2014

Text Block [Abstract]

Capital Requirements and Restriction on Retained Earnings

NOTE 18—CAPITAL REQUIREMENTS AND RESTRICTION ON RETAINED EARNINGS

The Company and Citizens are subject to regulatory capital requirements administered by the federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations involve quantitative measures of assets, liabilities and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classification are also subject to qualitative judgments by the regulators. Failure to meet capital requirements can initiate regulatory action.

Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At year-end 2014 and 2013, the most recent regulatory notifications categorized Citizens as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category.

The Company’s and Citizens’ actual capital levels and minimum required levels at December 31, 2014 and 2013 were as follows.

	Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective Action Purposes
	Amount		Ratio			Amount		Ratio			Amount		Ratio
2014
Total Capital to risk-weighted assets
Consolidated	$	131,581		14.7	%	$	71,609		8.0	%		n/a		n/a
Citizens		111,470		12.5			71,341		8.0		$	89,176		10.0	%
Tier I (Core) Capital to risk-weighted assets
Consolidated		120,334		13.4			35,921		4.0			n/a		n/a
Citizens		100,259		11.2			35,807		4.0			53,710		6.0
Tier I (Core) Capital to average assets
Consolidated		120,334		10.3			46,732		4.0			n/a		n/a
Citizens		100,259		8.6			46,632		4.0			58,290		5.0
2013
Total Capital to risk-weighted assets
Consolidated	$	143,628		17.1	%	$	67,194		8.0	%		n/a		n/a
Citizens		104,884		12.5			67,126		8.0		$	83,907		10.0	%
Tier I (Core) Capital to risk-weighted assets
Consolidated		133,041		15.8			33,681		4.0			n/a		n/a
Citizens		94,302		11.2			33,679		4.0			50,519		6.0
Tier I (Core) Capital to average assets
Consolidated		133,041		11.6			45,876		4.0			n/a		n/a
Citizens		94,302		8.3			45,447		4.0			56,808		5.0

The Company’s primary source of funds for paying dividends to its shareholders and for operating expense is the cash accumulated from dividends received from Citizens. Payment of dividends by Citizens to the Company is subject to restrictions by Citizens’ regulatory agencies. These restrictions generally limit dividends to the current and prior two years retained earnings as defined by the regulations. In addition, dividends may not reduce capital levels below minimum regulatory requirements.

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Income Taxes - Summary of Deferred Tax Assets and Liabilities (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Deferred tax assets
Allowance for loan losses	$ 4,851	$ 5,620
Deferred compensation	1,386	1,223
Intangible assets		50
Pension costs	198	996
Impairment losses		146
Other	122	133
Deferred tax asset	6,557	8,168
Deferred tax liabilities
Tax depreciation in excess of book depreciation	(351)	(466)
Discount accretion on securities	(63)	(77)
Purchase accounting adjustments	(1,189)	(1,465)
FHLB stock dividends	(1,687)	(2,249)
Unrealized gain on securities available for sale	(1,922)	(176)
Other	(196)	(174)
Deferred tax liability	(5,408)	(4,607)
Net deferred tax asset	$ 1,149	$ 3,561

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Capital Requirements and Restriction on Retained Earnings (Tables)

12 Months Ended

Dec. 31, 2014

Text Block [Abstract]

Actual Capital Levels and Minimum Required Levels

The Company’s and Citizens’ actual capital levels and minimum required levels at December 31, 2014 and 2013 were as follows.

	Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective Action Purposes
	Amount		Ratio			Amount		Ratio			Amount		Ratio
2014
Total Capital to risk-weighted assets
Consolidated	$	131,581		14.7	%	$	71,609		8.0	%		n/a		n/a
Citizens		111,470		12.5			71,341		8.0		$	89,176		10.0	%
Tier I (Core) Capital to risk-weighted assets
Consolidated		120,334		13.4			35,921		4.0			n/a		n/a
Citizens		100,259		11.2			35,807		4.0			53,710		6.0
Tier I (Core) Capital to average assets
Consolidated		120,334		10.3			46,732		4.0			n/a		n/a
Citizens		100,259		8.6			46,632		4.0			58,290		5.0
2013
Total Capital to risk-weighted assets
Consolidated	$	143,628		17.1	%	$	67,194		8.0	%		n/a		n/a
Citizens		104,884		12.5			67,126		8.0		$	83,907		10.0	%
Tier I (Core) Capital to risk-weighted assets
Consolidated		133,041		15.8			33,681		4.0			n/a		n/a
Citizens		94,302		11.2			33,679		4.0			50,519		6.0
Tier I (Core) Capital to average assets
Consolidated		133,041		11.6			45,876		4.0			n/a		n/a
Citizens		94,302		8.3			45,447		4.0			56,808		5.0

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Fair Value Measurement - Assets Measured at Fair Value (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of swap liability	$ 1,721	$ 286
Impaired Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	10,126	15,548
Other Real Estate Owned [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	560	173
(Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of swap liability	1,721	286
(Level 2) [Member] | Assets Measured at Fair Value on a Recurring Basis [Member] | Swap [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of swap asset	1,721	286
Fair value of swap liability	1,721	286
(Level 2) [Member] | Assets Measured at Fair Value on a Recurring Basis [Member] | U.S. Treasury Securities and Obligations of U.S. Government Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	42,902	51,560
(Level 2) [Member] | Assets Measured at Fair Value on a Recurring Basis [Member] | Obligations of States and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	88,021	80,625
(Level 2) [Member] | Assets Measured at Fair Value on a Recurring Basis [Member] | Mortgage-backed Securities in Government Sponsored Entities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	66,442	66,979
(Level 2) [Member] | Assets Measured at Fair Value on a Recurring Basis [Member] | Equity Securities in Financial Institutions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	540	449
(Level 3) [Member] | Assets Measured at Fair Value on a Nonrecurring Basis [Member] | Impaired Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	10,126	15,548
(Level 3) [Member] | Assets Measured at Fair Value on a Nonrecurring Basis [Member] | Other Real Estate Owned [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	$ 560	$ 173

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Short-Term Borrowings (Tables)

12 Months Ended

Dec. 31, 2014

Debt Disclosure [Abstract]

Summary of Federal Funds Purchased and Other Short-term Borrowings

Short-term borrowings, which consist of federal funds purchased and other short-term borrowings are summarized as follows:

	At December 31, 2014
	Federal Funds Purchased			Short-term Borrowings
Outstanding balance at year end	$	—		$	42,700
Maximum indebtedness during the year		—			42,700
Average balance during the year		41			1,951
Average rate paid during the year		0.54	%		0.19	%
Interest rate on year end balance		—			0.14	%

	At December 31, 2013
	Federal Funds Purchased			Short-term Borrowings
Outstanding balance at year end	$	—		$	—
Maximum indebtedness during the year		10,000			—
Average balance during the year		28			—
Average rate paid during the year		0.53	%		—
Interest rate on year end balance		—			—

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Fair Value Measurement - Carrying Amount and Fair Values of Financial Instruments (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and due from financial institutions, Carrying value	$ 29,858	$ 34,186	$ 45,963
Securities available for sale, Carrying value	197,905	199,613
Loans, held for sale, Carrying value	2,410	438
Loans, net of allowance for loan losses, Carrying value	900,589	844,713
Other securities, Carrying value	12,586	15,424
Bank owned life insurance, Carrying value	19,637	19,145
Accrued interest receivable, Carrying value	3,852	3,881
Fair value swap asset, Carrying value	1,721	286
Nonmaturing deposits, Carrying value	748,948	706,126
Time deposits, Carrying value	219,970	236,349
Federal Home Loan Bank advances, Carrying value	65,200	37,726
Securities sold under agreement to repurchase, Carrying value	21,613	20,053
Subordinated debentures, Carrying value	29,427	29,427
Accrued interest payable, Carrying value	126	156
Fair value swap liability, Carrying value	1,721	286
Cash and due from financial institutions, Fair value	29,858	34,186
Securities available for sale, Fair value	197,905	199,613
Loans, held for sale, Fair value	2,410	438
Loans, net of allowance for loan losses, Fair value	908,118	861,252
Other securities, Fair value	12,586	15,424
Bank owned life insurance, Fair value	19,637	19,145
Accrued interest receivable, Fair value	3,852	3,881
Fair value swap asset, Fair value	1,721	286
Nonmaturing deposits, Fair value	748,948	706,126
Time deposits, Fair value	221,263	237,837
Federal Home Loan Bank advances	65,399	38,767
Securities sold under agreement to repurchase, Fair value	21,613	20,053
Subordinated debentures, Fair value	24,688	20,605
Accrued interest payable, Fair value	126	156
Fair value swap liability, Fair value	1,721	286
(Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and due from financial institutions, Fair value	29,858	34,186
Loans, held for sale, Fair value	2,410	438
Other securities, Fair value	12,586	15,424
Bank owned life insurance, Fair value	19,637	19,145
Accrued interest receivable, Fair value	3,852	3,881
Nonmaturing deposits, Fair value	748,948	706,126
Securities sold under agreement to repurchase, Fair value	21,613	20,053
Accrued interest payable, Fair value	126	156
(Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, Carrying value	197,905	199,613
Fair value swap asset, Carrying value	1,721	286
Securities available for sale, Fair value	197,905	199,613
Fair value swap asset, Fair value	1,721	286
Fair value swap liability, Fair value	1,721	286
(Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, net of allowance for loan losses, Fair value	908,118	861,252
Time deposits, Fair value	221,263	237,837
Federal Home Loan Bank advances	65,399	38,767
Subordinated debentures, Fair value	$ 24,688	$ 20,605

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Consolidated Comprehensive Income Statements (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Statement of Comprehensive Income [Abstract]
Net income	$ 9,528	$ 6,179
Other comprehensive income (loss):
Unrealized holding gains (loss) on available for sale securities	5,134	(8,344)
Tax effect	(1,745)	2,836
Pension liability adjustment	1,228	4,406
Tax effect	(417)	(1,498)
Total other comprehensive income (loss)	4,200	(2,600)
Comprehensive income	$ 13,728	$ 3,579

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Federal Home Loan Bank Advances - Scheduled Principal Reductions of Federal Home Loan Bank Advances (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Banking and Thrift [Abstract]
2015	$ 5,000
2017	2,500
2018	10,000
2019	5,000
Total	$ 22,500	$ 37,726

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Securities

12 Months Ended

Dec. 31, 2014

Investments, Debt and Equity Securities [Abstract]

Securities

NOTE 2—SECURITIES

The amortized cost and fair value of available for sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive loss were as follows.

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
2014
U.S. Treasury securities and obligations of U.S. government agencies	$	42,910	$	115	$	(123	)	$	42,902
Obligations of states and political subdivisions		83,215		5,112		(306	)		88,021
Mortgage-back securities in government sponsored entities		65,646		976		(180	)		66,442
Total debt securities		191,771		6,203		(609	)		197,365
Equity securities in financial institutions		481		59		—			540
Total	$	192,252	$	6,262	$	(609	)	$	197,905

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
2013
U.S. Treasury securities and obligations of U.S. government agencies	$	52,229	$	95	$	(764	)	$	51,560
Obligations of states and political subdivisions		79,975		2,327		(1,677	)		80,625
Mortgage-back securities in government sponsored entities		66,409		1,127		(557	)		66,979
Total debt securities		198,613		3,549		(2,998	)		199,164
Equity securities in financial institutions		481		—		(32	)		449
Total	$	199,094	$	3,549	$	(3,030	)	$	199,613

The amortized cost and fair value of securities at year end 2014 by contractual maturity were as follows. Securities not due at a single maturity date, primarily mortgage-backed securities, are shown separately.

	Available for sale
	Amortized Cost		Fair Value
Due in one year or less	$	628	$	629
Due from one to five years		27,702		27,723
Due from five to ten years		34,718		36,191
Due after ten years		63,077		66,380
Mortgage-backed securities in government sponsored entities		65,646		66,442
Equity securities in financial institutions		481		540
Total	$	192,252	$	197,905

Securities with a carrying value of $137,898 and $147,625 were pledged as of December 31, 2014 and 2013, respectively, to secure public deposits, other deposits and liabilities as required or permitted by law.

Proceeds from sales of securities, gross realized gains and gross realized losses were as follows.

	2014			2013
Sale proceeds	$	18,088		$	8,686
Gross realized gains		113			144
Gross realized losses		(1	)		(89	)
Gains from securities called or settled by the issuer		1			149

Debt securities with unrealized losses at year end 2014 and 2013 not recognized in income are as follows.

2014	12 Months or less					More than 12 months					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Treasury securities and obligations of U.S. government agencies	$	7,664	$	(17	)	$	11,888	$	(106	)	$	19,552	$	(123	)
Obligations of states and political subdivisions		853		(11	)		5,647		(295	)		6,500		(306	)
Mortgage-backed securities in gov’t sponsored entities		12,289		(29	)		11,492		(151	)		23,781		(180	)
Total temporarily impaired	$	20,806	$	(57	)	$	29,027	$	(552	)	$	49,833	$	(609	)
2013	12 Months or less					More than 12 months					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Treasury securities and obligations of U.S. government agencies	$	30,800	$	(764	)	$	—	$	—		$	30,800	$	(764	)
Obligations of states and political subdivisions		28,428		(1,556	)		968		(121	)		29,396		(1,677	)
Mortgage-backed securities in gov’t sponsored entities		32,557		(553	)		279		(4	)		32,836		(557	)
Equity securities in financial institutions		449		(32	)		—		—			449		(32	)
Total temporarily impaired	$	92,234	$	(2,905	)	$	1,247	$	(125	)	$	93,481	$	(3,030	)

The Company periodically evaluates securities for other-than-temporary impairment. An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis. Unrealized losses that are determined to be temporary in nature are recorded, net of tax, in accumulated other comprehensive income.

The Company has assessed each available-for-sale security position for credit impairment. Factors considered in determining whether a loss is temporary include:

• The length of time and the extent to which fair value has been below cost;

• The severity of impairment;

• The cause of the impairment and the financial condition and near-term prospects of the issuer;

• If the Company intends to sell the investment;

• If it’s more-likely-than-not the Company will be required to sell the investment before recovering its amortized cost basis; and

• If the Company does not expect to recover the investment’s entire amortized cost basis (even if the Company does not intend to sell the investment).

The Company’s review for impairment generally entails:

• Identification and evaluation of investments that have indications of impairment;

• Analysis of individual investments that have fair values less than amortized cost, including consideration of length of time each investment has been in unrealized loss position and the expected recovery period;

• Evaluation of factors or triggers that could cause individual investments to qualify as having other-than-temporary impairment; and

• Documentation of these analyses, as required by policy.

At December 31, 2014, the Company owned 41 securities that were considered temporarily impaired. The unrealized losses on these securities have not been recognized into income because the issuers’ bonds are of high credit quality, management has the intent and ability to hold these securities for the foreseeable future, and the decline in fair value is largely due to changes in market interest rates. The Company also considers sector specific credit rating changes in its analysis. The fair value is expected to recover as the securities approach their maturity date or reset date. The Company does not intend to sell until recovery and does not believe selling will be required before recovery.

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Securities - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014 Security	Dec. 31, 2013
Amortized Cost and Fair Value Debt Securities [Abstract]
Carrying value of pledged securities	$ 137,898	$ 147,625
Number of securities in portfolio with unrealized losses	41

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Interest-Bearing Deposits - Summary of Interest-Bearing Deposits (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Banking and Thrift [Abstract]
Demand	$ 179,388	$ 168,113
Statement and Passbook Savings	318,859	303,037
Certificates of Deposit: In excess of $100	53,669	66,561
Certificates of Deposit : Other	139,531	139,586
Individual Retirement Accounts	26,770	30,202
Total	$ 718,217	$ 707,499

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Fair Value Measurement - Quantitative Information about Level 3 Fair Value Measurements (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Impaired Loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Estimate	10,126	15,548
Impaired Loans [Member] | Appraisal of Collateral [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Measurements, Valuation Technique	Appraisal of collateral
Impaired Loans [Member] | Discounted Cash Flows [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Measurements, Valuation Technique	Discounted cash flows
Other Real Estate Owned [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Estimate	560	173
Other Real Estate Owned [Member] | Appraisal of Collateral [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Measurements, Valuation Technique	Appraisal of collateral
Maximum [Member] | Impaired Loans [Member] | Appraisal of Collateral [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Assumptions, Appraisal adjustments	30.00%	30.00%
Fair Value Assumptions, Liquidation expense	10.00%	10.00%
Fair Value Assumptions, Holding period	30 months	30 months
Maximum [Member] | Impaired Loans [Member] | Discounted Cash Flows [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Assumptions, Discount rates	8.00%	8.50%
Maximum [Member] | Other Real Estate Owned [Member] | Appraisal of Collateral [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Assumptions, Appraisal adjustments	30.00%	30.00%
Fair Value Assumptions, Liquidation expense	10.00%	10.00%
Minimum [Member] | Impaired Loans [Member] | Appraisal of Collateral [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Assumptions, Appraisal adjustments	10.00%	10.00%
Fair Value Assumptions, Liquidation expense	0.00%	0.00%
Fair Value Assumptions, Holding period	0 months	0 months
Minimum [Member] | Impaired Loans [Member] | Discounted Cash Flows [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Assumptions, Discount rates	3.80%	2.00%
Minimum [Member] | Other Real Estate Owned [Member] | Appraisal of Collateral [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Assumptions, Appraisal adjustments	10.00%	10.00%
Fair Value Assumptions, Liquidation expense	0.00%	0.00%

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Allowance for Loan Losses - Aging Analysis of Past Due Loans (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	$ 3,288	$ 3,876
60-89 Days Past Due	985	1,305
90 Days or Greater	5,321	8,072
Total Past Due	9,594	13,253
Current	905,263	847,988
Ending Balance	914,857	861,241
Past Due 90 Days and Accruing	0	0
Commercial and Agriculture [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	58	105
90 Days or Greater	187	443
Total Past Due	245	548
Current	113,941	115,327
Ending Balance	114,186	115,875
Past Due 90 Days and Accruing	0	0
Commercial Real Estate Owner Occupied [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	622	253
60-89 Days Past Due	251	188
90 Days or Greater	657	1,643
Total Past Due	1,530	2,084
Current	141,484	158,930
Ending Balance	143,014	161,014
Past Due 90 Days and Accruing	0	0
Commercial Real Estate Non Owner Occupied [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	521	208
60-89 Days Past Due	5	13
90 Days or Greater	2,103	455
Total Past Due	2,629	676
Current	306,037	282,156
Ending Balance	308,666	282,832
Past Due 90 Days and Accruing	0	0
Residential Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	1,923	3,140
60-89 Days Past Due	721	1,084
90 Days or Greater	2,347	5,531
Total Past Due	4,991	9,755
Current	263,519	240,936
Ending Balance	268,510	250,691
Past Due 90 Days and Accruing	0	0
Real Estate Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	33
90 Days or Greater	8
Total Past Due	41
Current	65,411	39,964
Ending Balance	65,452	39,964
Past Due 90 Days and Accruing	0	0
Consumer and Other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	131	170
60-89 Days Past Due	8	20
90 Days or Greater	19
Total Past Due	158	190
Current	14,871	10,675
Ending Balance	15,029	10,865
Past Due 90 Days and Accruing	$ 0	$ 0

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Parent Company Only Condensed Financial Information

12 Months Ended

Dec. 31, 2014

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Parent Company Only Condensed Financial Information

NOTE 19—PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION

Condensed financial information of FCBC follows.

	December 31,
Condensed Balance Sheets	2014			2013
Assets:
Cash	$	13,663		$	32,572
Securities available for sale		540			449
Investment in bank subsidiary		117,364			111,121
Investment in nonbank subsidiaries		12,605			12,595
Other assets		3,003			5,210
Total assets	$	147,175		$	161,947
Liabilities and Shareholders’ Equity:
Deferred income taxes and other liabilities	$	1,839		$	4,144
Subordinated debentures		29,427			29,427
Preferred stock		23,132			46,316
Common stock		114,365			114,365
Accumulated deficit		(4,306	)		(10,823	)
Treasury Stock		(17,235	)		(17,235	)
Accumulated other comprehensive loss		(47	)		(4,247	)
Total liabilities and shareholders’ equity	$	147,175		$	161,947

	For the years ended December 31,
Condensed Statements of Operations	2014			2013
Dividends from bank subsidiaries	$	7,339		$	7,888
Interest expense		(777	)		(740	)
Pension expense		(236	)		(1,821	)
Pension settlement expense		(161	)		(2,251	)
Other expense, net		(1,150	)		(952	)
Income before equity in undistributed net earnings of subsidiaries		5,015			2,124
Income tax benefit		763			1,960
Equity in undistributed net earnings of subsidiaries		3,750			2,095
Net income	$	9,528		$	6,179

	For the years ended December 31,
Condensed Statements of Cash Flows	2014			2013
Operating activities:
Net income	$	9,528		$	6,179
Adjustment to reconcile net income to net cash provided by operating activities:
Change in other assets and other liabilities		1,508			(1,620	)
Equity in undistributed net earnings of subsidiaries		(3,750	)		(2,095	)
Net cash from operating activities		7,286			2,464
Financing activities:
Payment to repurchase preferred stock		(22,857	)		—
Proceeds from issuance of preferred stock		—			23,132
Cash dividends paid		(3,338	)		(2,315	)
Net cash provided by (used for) financing activities		(26,195	)		20,817
Net change in cash and cash equivalents		(18,909	)		23,281
Cash and cash equivalents at beginning of year		32,572			9,291
Cash and cash equivalents at end of year	$	13,663		$	32,572

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Participation in the Treasury Capital Purchase Program - Additional Information (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	0 Months Ended	12 Months Ended		0 Months Ended
	Jan. 23, 2009	Dec. 31, 2014	Dec. 31, 2013	Feb. 15, 2014	Jul. 03, 2012	Dec. 19, 2013	Sep. 05, 2012
Equity, Class of Treasury Stock [Line Items]
Newly issued shares	23,184
Warrant sold to purchase common shares as per securities purchase agreement	469,312
Warrant exercise price per common share	$ 7.41
Term of Warrant		10 years
Cumulative dividend rate per annum on liquidation preference, first five years		5.00%
Cumulative dividend rate per annum on liquidation preference, after five years		9.00%
Net proceeds from issuance of preferred stock			$ 23,132
Series A Preferred Stock [Member]
Equity, Class of Treasury Stock [Line Items]
Number of shares issued and sold to Treasury	23,184
Liquidation preference as per securities purchase agreement	$ 1,000	1,000	$ 1,000
Numbers of shares to redeem					23,184
Aggregate purchase price of warrant							563,174
Aggregate purchase price of Preferred stock		22,857		22,857
Preferred stock redemption date				Feb. 15, 2014
Depositary Shares [Member]
Equity, Class of Treasury Stock [Line Items]
Newly issued shares						1,000,000
Percentage of ownership Interest						2.50%
Share issued price per share						$ 25.00
Cost of Issuance, Public offering						1,868
Net proceeds from issuance of preferred stock						$ 23,132
Series B Preferred Stock [Member]
Equity, Class of Treasury Stock [Line Items]
Liquidation preference as per securities purchase agreement		1,000	$ 1,000			$ 1,000

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Other Comprehensive Income - Changes in Each Component of Accumulated Other Comprehensive Income Loss, Net of Tax (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ (4,247)	$ (1,647)
Other comprehensive income (loss) before reclassifications	4,055	(5,373)
Amounts reclassified from accumulated other comprehensive loss	145	2,773
Total other comprehensive income (loss)	4,200	(2,600)
Ending balance	(47)	(4,247)
Unrealized Gains and Losses on Available-for-Sale Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	341	5,849
Other comprehensive income (loss) before reclassifications	3,464	(5,373)
Amounts reclassified from accumulated other comprehensive loss	(75)	(135)
Total other comprehensive income (loss)	3,389	(5,508)
Ending balance	3,730	341
Defined Benefit Pension Items [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(4,588)	(7,496)
Other comprehensive income (loss) before reclassifications	591
Amounts reclassified from accumulated other comprehensive loss	220	2,908
Total other comprehensive income (loss)	811	2,908
Ending balance	$ (3,777)	$ (4,588)

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Premises and Equipment (Tables)

12 Months Ended

Dec. 31, 2014

Property, Plant and Equipment [Abstract]

Year-End Premises and Equipment

Year-end premises and equipment were as follows.

	2014			2013
Land and improvements	$	3,770		$	4,083
Buildings and improvements		17,373			19,681
Furniture and equipment		13,942			16,751
Total		35,085			40,515
Accumulated depreciation		(20,685	)		(24,202	)
Premises and equipment, net	$	14,400		$	16,313

Rent Commitments Under Non-Cancelable Operating Leases

Rent expense was $377 and $367 for 2014 and 2013, respectively. Rent commitments under non-cancelable operating leases at December 31, 2014 were as follows, before considering renewal options that generally are present.

2015	$	335
2016		273
2017		256
2018		117
2019		88
Thereafter		—
Total	$	1,069

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Subordinated Debentures

12 Months Ended

Dec. 31, 2014

Brokers and Dealers [Abstract]

Subordinated Debentures

NOTE 12—SUBORDINATED DEBENTURES

Trusts formed by the Company issued floating rate trust preferred securities, in the amounts of $5,000 and $7,500, through special purpose entities as part of pooled offerings of such securities. The Company issued subordinated debentures to the trusts in exchange for the proceeds of the offerings, which debentures represent the sole assets of the trusts. The Company may redeem the subordinated debentures, in whole but not in part, at face value. In April 2007, the Company elected to redeem and refinance the $5,000 floating rate subordinated debenture. The refinancing was done at face value and resulted in a 2.00% reduction in the rate. The new subordinated debenture has a 30 year maturity and is redeemable, in whole or in part, anytime without penalty. The replacement subordinated debenture does not have any deferred issuance cost associated with it. The interest rate at December 31, 2014 on the $7,500 debenture is 3.39% and the $5,000 debenture is 1.83%.

Additionally, the Company formed an additional trust that issued $12,500 of 6.05% fixed rate trust preferred securities for five years, then becoming floating rate trust preferred securities, through a special purpose entity as part of a pooled offering of such securities. The Company issued subordinated debentures to the trusts in exchange for the proceeds of the offerings, which debentures represent the sole assets of the trusts. The Company may redeem the subordinated debentures at face value without penalty. The current rate on the $12,500 subordinated debenture is 2.48%.

Finally, the Company acquired two additional trust preferred securities as part of its acquisition of Futura Banc Corp (Futura) in December 2007. Futura TPF Trust I and Futura TPF Trust II were formed in June of 2005 in the amounts of $2,500 and $1,927, respectively. Futura had issued subordinated debentures to the trusts in exchange for ownership of all of the common security of the trusts and the proceeds of the preferred securities sold by the trusts. The Company may redeem the subordinated debentures, in whole or in part, in a principal amount with integral multiples of $1,000, on or after June 15, 2010 at 100% of the principal amount, plus accrued and unpaid interest. The subordinated debentures mature on June 15, 2035. The subordinated debentures are also redeemable in whole or in part from time to time, upon the occurrence of specific events defined within the trust indenture. The current rate on the $2,500 subordinated debenture is variable at 1.89%. In June 2010, the rate on the $1,927 subordinated debenture switched from a fixed rate to a floating rate. The current rate on the $1,927 subordinated debenture is 1.89%.

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Retirement Plans - Plan's Assets at Fair Value Hierarchy (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	$ 16,184	$ 15,466	$ 13,441
Supplemental Retirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	16,184	15,466
Supplemental Retirement Plan [Member] | Cash [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	3
Supplemental Retirement Plan [Member] | Money Market Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	91	79
Supplemental Retirement Plan [Member] | Bond Mutual Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	23	48
Supplemental Retirement Plan [Member] | Common/Collective Trust, Bonds [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	7,802	8,140
Supplemental Retirement Plan [Member] | Common/Collective Trust, Equities [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	6,383	5,439
Supplemental Retirement Plan [Member] | Equity Market Funds, Commodity Mutual Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	19	21
Supplemental Retirement Plan [Member] | Equity Market Funds, International [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	342	337
Supplemental Retirement Plan [Member] | Equity Market Funds, Large Cap [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	1,150	1,093
Supplemental Retirement Plan [Member] | Equity Market Funds, Mid Cap [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	253	181
Supplemental Retirement Plan [Member] | Equity Market Funds, Small Cap [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	118	128
(Level 1) [Member] | Supplemental Retirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	16,184	15,466
(Level 1) [Member] | Supplemental Retirement Plan [Member] | Cash [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	3
(Level 1) [Member] | Supplemental Retirement Plan [Member] | Money Market Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	91	79
(Level 1) [Member] | Supplemental Retirement Plan [Member] | Bond Mutual Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	23	48
(Level 1) [Member] | Supplemental Retirement Plan [Member] | Common/Collective Trust, Bonds [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	7,802	8,140
(Level 1) [Member] | Supplemental Retirement Plan [Member] | Common/Collective Trust, Equities [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	6,383	5,439
(Level 1) [Member] | Supplemental Retirement Plan [Member] | Equity Market Funds, Commodity Mutual Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	19	21
(Level 1) [Member] | Supplemental Retirement Plan [Member] | Equity Market Funds, International [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	342	337
(Level 1) [Member] | Supplemental Retirement Plan [Member] | Equity Market Funds, Large Cap [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	1,150	1,093
(Level 1) [Member] | Supplemental Retirement Plan [Member] | Equity Market Funds, Mid Cap [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	253	181
(Level 1) [Member] | Supplemental Retirement Plan [Member] | Equity Market Funds, Small Cap [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	$ 118	$ 128