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CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Interest income        
Loans $ 14,184 $ 12,890 $ 27,985 $ 25,581
Loans held for sale 363 341 695 635
Securities available for sale, nontaxable 290   413  
Securities available for sale, taxable 1,781 2,679 3,716 5,540
Securities held to maturity, nontaxable 62 12 117 12
Securities held to maturity, taxable 524   1,101  
Federal Home Loan Bank stock dividends 180 178 362 360
Other interest earning assets 15 11 30 17
Total interest income 17,399 16,111 34,419 32,145
Interest expense        
Deposits 1,496 1,639 3,108 3,172
Federal Home Loan Bank advances 563 302 1,093 607
Repurchase agreements and other 6 319 11 635
Total interest expense 2,065 2,260 4,212 4,414
Net interest income 15,334 13,851 30,207 27,731
Provision for loan losses 395 753 2,550 569
Net interest income after provision for loan losses 14,939 13,098 27,657 27,162
Non-interest income        
Insurance agency income 516   818  
Brokerage income 396 248 696 540
Deposit related fees 1,362 1,341 2,688 2,406
Mortgage servicing fees 701 681 1,399 1,355
Mortgage servicing rights valuation (292) 206 (727) 45
Mortgage servicing rights amortization (567) (462) (1,035) (905)
Other service fees 47 20 65 37
Net gains (losses):        
Securities available for sale (includes $233, $0, $386 and $11, respectively, accumulated other comprehensive income reclassifications for unrealized net gains on available for sale securities) 233   386 11
Mortgage banking income 1,869 2,041 3,251 3,594
Real estate owned and other repossessed assets, net (63) (102) (76) (192)
Debit/credit card fees 1,120 925 2,001 1,741
Other income 458 377 972 761
Total non-interest income 5,780 5,275 10,438 9,393
Non-interest expense        
Salaries and employee benefits (includes $(278), $0, $(556) and $0, respectively, accumulated other comprehensive income reclassifications from prior service credit on postretirement plan). 7,186 6,898 14,274 14,074
Occupancy 855 768 1,717 1,686
Equipment and data processing 1,887 1,719 3,722 3,391
Financial institutions tax 431 326 873 652
Advertising 221 221 348 363
Amortization of core deposit intangible 10 13 23 27
FDIC insurance premiums 287 307 613 633
Other insurance premiums 73 85 162 169
Legal and consulting fees 214 311 411 528
Other professional fees 351 386 421 762
Real estate owned and other repossessed asset expenses 77 18 149 159
Other expenses 1,268 1,156 2,611 2,445
Total non-interest expenses 12,860 12,208 25,324 24,889
Income before income taxes 7,859 6,165 12,771 11,666
Income tax expense (includes $179, $0, $329 and $4 income tax expense from reclassification items) 2,529 2,040 4,121 3,855
Net income 5,330 4,125 8,650 7,811
Other comprehensive income        
Unrealized gain (loss) on securities, available for sale, net of reclassifications and tax of $2,392, $(3,196), $5,852 and $(1,102), respectively 4,442 (5,937) 10,871 (2,047)
Accretion of unrealized losses on securities transferred from available for sale to held to maturity, net of tax of $20, $0, $38 and $0, respectively 37   71  
Accretion of unrecognized actuarial gains and amortization of prior service credit on postretirement plan, net of tax of $(97), $0, $(194) and $0, respectively recognized in net income (181)   (362)  
Total other comprehensive income 4,298 (5,937) 10,580 (2,047)
Comprehensive income $ 9,628 $ (1,812) $ 19,230 $ 5,764
Earnings per share        
Basic $ 0.11 $ 0.08 $ 0.18 $ 0.16
Diluted $ 0.11 $ 0.08 $ 0.18 $ 0.16