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CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Interest income        
Loans $ 14,633 $ 13,426 $ 42,618 $ 39,007
Loans held for sale 482 390 1,177 1,025
Securities available for sale, nontaxable 339   752  
Securities available for sale, taxable 1,630 2,599 5,346 8,139
Securities held to maturity, nontaxable 66 33 183 45
Securities held to maturity, taxable 466 17 1,567 17
Federal Home Loan Bank stock dividends 180 181 542 541
Other interest earning assets 19 8 49 25
Total interest income 17,815 16,654 52,234 48,799
Interest expense        
Deposits 1,389 1,690 4,497 4,862
Federal Home Loan Bank advances 661 340 1,754 947
Repurchase agreements and other 5 323 16 958
Total interest expense 2,055 2,353 6,267 6,767
Net interest income 15,760 14,301 45,967 42,032
Provision for loan losses 1,344 673 3,894 1,242
Net interest income after provision for loan losses 14,416 13,628 42,073 40,790
Non-interest income        
Insurance agency income 451   1,269  
Brokerage income 337 259 1,033 799
Deposit related fees 1,418 1,405 4,106 3,811
Mortgage servicing fees 715 683 2,114 2,038
Mortgage servicing rights valuation 25 (138) (702) (92)
Mortgage servicing rights amortization (525) (449) (1,560) (1,355)
Other service fees 43 19 108 56
Net gains (losses):        
Securities available for sale (includes $218, $0, $604 and $11, respectively, accumulated other comprehensive income reclassifications for unrealized net gains on available for sale securities) 218   604 11
Mortgage banking income 1,957 1,709 5,208 5,303
Real estate owned and other repossessed assets, net   (119) (76) (311)
Debit/credit card fees 915 1,036 2,916 2,777
Other income 449 468 1,421 1,229
Total non-interest income 6,003 4,873 16,441 14,266
Non-interest expense        
Salaries and employee benefits (includes $(445), $0, $(1,001) and $0, respectively, accumulated other comprehensive income reclassifications from prior service credit on postretirement plan). 6,950 6,894 21,224 20,968
Occupancy 847 819 2,564 2,505
Equipment and data processing 1,926 1,714 5,648 5,105
Financial institutions tax 411 272 1,284 924
Advertising 290 183 638 546
Amortization of intangible assets 72 14 95 41
FDIC insurance premiums 155 313 768 946
Other insurance premiums 89 84 251 253
Legal and consulting fees 211 361 622 889
Other professional fees 341 469 762 1,231
Real estate owned and other repossessed asset expenses 41 134 190 293
Other expenses 1,645 1,028 4,256 3,473
Total non-interest expenses 12,978 12,285 38,302 37,174
Income before income taxes 7,441 6,216 20,212 17,882
Income tax expense (includes $232, $0, $561 and $4 income tax expense from reclassification items) 2,288 2,073 6,409 5,928
Net income 5,153 4,143 13,803 11,954
Other comprehensive income        
Unrealized gain (loss) on securities, available for sale, net of reclassifications and tax of $(737), $2,767, $5,117, and $1,664, respectively (1,369) 5,138 9,502 3,091
Accretion of unrealized losses on securities transferred from available for sale to held to maturity, net of tax of $25, $0, $63 and $0, respectively 47   118  
Accretion of unrecognized actuarial gains and amortization of prior service credit on postretirement plan, net of tax of $(156), $0, $(350) and $0, respectively recognized in net income (289)   (651)  
Total other comprehensive income (1,611) 5,138 8,969 3,091
Comprehensive income $ 3,542 $ 9,281 $ 22,772 $ 15,045
Earnings per share        
Basic $ 0.11 $ 0.09 $ 0.29 $ 0.25
Diluted $ 0.11 $ 0.09 $ 0.29 $ 0.24