UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
FORM 10-Q
|
|||||
[X]
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
||||
For Quarterly period ended June 30, 2013
|
|||||
Or
|
|||||
[ ]
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
||||
Commission File No. 0-13888
|
|||||
CHEMUNG FINANCIAL CORPORATION
|
|||||
(Exact name of registrant as specified in its charter)
|
|||||
New York
|
16-1237038
|
||||
(State or other jurisdiction of incorporation or organization)
|
I.R.S. Employer Identification No.
|
||||
One Chemung Canal Plaza, P.O. Box 1522, Elmira, NY
|
14902
|
||||
(Address of principal executive offices)
|
(Zip Code)
|
||||
(607) 737-3711 or (800) 836-3711
|
|||||
(Registrant's telephone number, including area code)
|
|||||
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 whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of "large accelerated filer", "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.
|
|||||
Large accelerated filer
|
[ ]
|
Non-accelerated filer
|
[ ]
|
||
Accelerated filer
|
[X]
|
Smaller reporting company
|
[ ]
|
||
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act):
|
|||||
YES: NO: X
|
|||||
The number of shares of the registrant's common stock, $.01 par value, outstanding on August 7, 2013 was 4,596,112.
|
PART I.
|
FINANCIAL INFORMATION
|
PAGE
|
Item 1:
|
Financial Statements – Unaudited
|
|
Consolidated Balance Sheets
|
3
|
|
Consolidated Statements of Income
|
4
|
|
Consolidated Statements of Comprehensive Income
|
5
|
|
Consolidated Statements of Shareholders’ Equity
|
6
|
|
Consolidated Statements of Cash Flows
|
7
|
|
Notes to Unaudited Consolidated Financial Statements
|
9
|
|
Item 2:
|
Management's Discussion and Analysis of Financial Condition
and Results of Operations
|
36
|
Item 3:
|
Quantitative and Qualitative Disclosures About Market Risk
|
51
|
Item 4:
|
Controls and Procedures
|
51
|
PART II.
|
OTHER INFORMATION
|
51
|
Item 1:
|
Legal Proceedings
|
51
|
Item 1A:
|
Risk Factors
|
51
|
Item 2:
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
51
|
Item 6:
|
Exhibits
|
52
|
SIGNATURES
|
53
|
|
EXHIBIT INDEX
|
JUNE 30,
|
DECEMBER 31,
|
|||||||
2013
|
2012
|
|||||||
ASSETS
|
||||||||
Cash and due from financial institutions
|
$
|
23,812,069
|
$
|
29,239,309
|
||||
Interest-bearing deposits in other financial institutions
|
944,937
|
11,001,912
|
||||||
Total cash and cash equivalents
|
24,757,006
|
40,241,221
|
||||||
Trading assets, at fair value
|
388,714
|
348,241
|
||||||
Securities available for sale, at estimated fair value
|
225,361,952
|
239,685,763
|
||||||
Securities held to maturity, estimated fair value of $7,064,222
at June 30, 2013 and $6,421,486 at December 31, 2012
|
6,570,262
|
5,748,453
|
||||||
Federal Home Loan Bank and Federal Reserve Bank
Stock, at cost
|
4,579,250
|
4,710,300
|
||||||
Loans, net of deferred origination fees and costs,
and unearned income
|
934,039,585
|
893,516,941
|
||||||
Allowance for loan losses
|
(11,320,225
|
)
|
(10,432,650
|
)
|
||||
Loans, net
|
922,719,360
|
883,084,291
|
||||||
Loans held for sale
|
947,461
|
1,057,309
|
||||||
Premises and equipment, net
|
24,968,834
|
25,484,385
|
||||||
Goodwill
|
21,824,443
|
21,824,443
|
||||||
Other intangible assets, net
|
4,694,741
|
5,143,820
|
||||||
Bank owned life insurance
|
2,753,367
|
2,711,681
|
||||||
Accrued interest receivable and other assets
|
17,595,097
|
18,119,801
|
||||||
Total assets
|
$
|
1,257,160,487
|
$
|
1,248,159,708
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
Deposits:
|
||||||||
Non-interest-bearing
|
$
|
297,523,377
|
$
|
300,610,463
|
||||
Interest-bearing
|
757,445,108
|
744,123,551
|
||||||
Total deposits
|
1,054,968,485
|
1,044,734,014
|
||||||
Securities sold under agreements to repurchase
|
30,568,070
|
32,710,650
|
||||||
Federal Home Loan Bank term advances
|
26,101,230
|
27,225,363
|
||||||
Accrued interest payable and other liabilities
|
12,843,890
|
12,374,744
|
||||||
Total liabilities
|
1,124,481,675
|
1,117,044,771
|
||||||
Shareholders' equity:
|
||||||||
Common stock, $.01 par value per share, 10,000,000
shares authorized; 5,310,076 issued at June 30, 2013
and December 31, 2012
|
53,101
|
53,101
|
||||||
Additional-paid-in capital
|
45,450,561
|
45,357,073
|
||||||
Retained earnings
|
109,755,452
|
107,078,182
|
||||||
Treasury stock, at cost (713,964 shares at June 30, 2013,
728,680 shares at December 31, 2012)
|
(18,205,255
|
)
|
(18,566,490
|
)
|
||||
Accumulated other comprehensive loss
|
(4,375,047
|
)
|
(2,806,929
|
)
|
||||
Total shareholders' equity
|
132,678,812
|
131,114,937
|
||||||
Total liabilities and shareholders' equity
|
$
|
1,257,160,487
|
$
|
1,248,159,708
|
||||
See accompanying notes to unaudited consolidated financial statements.
|
Six Months Ended
|
Three Months Ended
|
||||||||||||
June 30,
|
June 30,
|
June 30,
|
June 30,
|
||||||||||
Interest and dividend income:
|
2013
|
2012
|
2013
|
2012
|
|||||||||
Loans, including fees
|
$
|
22,360,424
|
$
|
22,704,549
|
$
|
11,056,416
|
$
|
11,033,636
|
|||||
Taxable securities
|
2,117,054
|
2,863,084
|
986,001
|
1,362,315
|
|||||||||
Tax exempt securities
|
586,259
|
676,247
|
281,117
|
335,626
|
|||||||||
Interest-bearing deposits
|
17,691
|
60,777
|
9,708
|
33,413
|
|||||||||
Total interest and dividend income
|
25,081,428
|
26,304,657
|
12,333,242
|
12,764,990
|
|||||||||
Interest expense:
|
|||||||||||||
Deposits
|
1,218,610
|
1,726,994
|
594,529
|
814,345
|
|||||||||
Securities sold under agreements to repurchase
|
430,801
|
532,300
|
211,452
|
249,528
|
|||||||||
Borrowed funds
|
387,278
|
633,976
|
199,489
|
320,936
|
|||||||||
Total interest expense
|
2,036,689
|
2,893,270
|
1,005,470
|
1,384,809
|
|||||||||
Net interest income
|
23,044,739
|
23,411,387
|
11,327,772
|
11,380,181
|
|||||||||
Provision for loan losses
|
881,484
|
528,897
|
450,474
|
51,593
|
|||||||||
Net interest income after provision for loan losses
|
22,163,255
|
22,882,490
|
10,877,298
|
11,328,588
|
|||||||||
Other operating income:
|
|||||||||||||
Wealth management group fee income
|
3,635,127
|
3,502,388
|
1,884,949
|
1,726,812
|
|||||||||
Service charges on deposit accounts
|
2,155,044
|
2,032,165
|
1,186,272
|
1,040,285
|
|||||||||
Net gain on securities transactions
|
1,228
|
299,919
|
1,228
|
2,750
|
|||||||||
Net gain on sales of loans held for sale
|
291,169
|
144,380
|
179,253
|
79,041
|
|||||||||
Casualty gains
|
-
|
780,435
|
-
|
21,578
|
|||||||||
Net gains (losses) on sales of other real estate
owned
|
15,997
|
(4,502
|
)
|
15,997
|
1,958
|
||||||||
Income from bank owned life insurance
|
41,686
|
43,269
|
21,039
|
21,744
|
|||||||||
Other
|
2,356,464
|
2,204,498
|
1,186,400
|
1,217,987
|
|||||||||
Total other operating income
|
8,496,715
|
9,002,552
|
4,475,138
|
4,112,155
|
|||||||||
Other operating expenses:
|
|||||||||||||
Salaries and wages
|
9,416,991
|
9,048,726
|
4,598,762
|
4,556,051
|
|||||||||
Pension and other employee benefits
|
2,788,999
|
2,756,477
|
1,364,523
|
1,466,537
|
|||||||||
Net occupancy expenses
|
2,700,996
|
2,580,009
|
1,339,411
|
1,285,131
|
|||||||||
Furniture and equipment expenses
|
1,085,527
|
1,095,848
|
567,027
|
577,482
|
|||||||||
Data processing expense
|
2,240,737
|
2,309,227
|
1,127,804
|
1,230,296
|
|||||||||
Professional services
|
520,468
|
516,234
|
196,444
|
366,021
|
|||||||||
Amortization of intangible assets
|
449,079
|
548,190
|
214,478
|
264,050
|
|||||||||
Marketing and advertising expense
|
484,857
|
645,064
|
197,280
|
355,826
|
|||||||||
Other real estate owned expenses
|
62,368
|
131,899
|
26,696
|
88,420
|
|||||||||
FDIC insurance
|
419,371
|
410,043
|
202,511
|
183,412
|
|||||||||
Loan expense
|
335,118
|
325,045
|
192,017
|
144,898
|
|||||||||
Other
|
2,611,750
|
2,445,879
|
1,364,551
|
1,363,297
|
|||||||||
Total other operating expenses
|
23,116,261
|
22,812,641
|
11,391,504
|
11,881,421
|
|||||||||
Income before income tax expense
|
7,543,709
|
9,072,401
|
3,960,932
|
3,559,322
|
|||||||||
Income tax expense
|
2,477,334
|
3,013,828
|
1,306,325
|
1,115,282
|
|||||||||
Net income
|
$
|
5,066,375
|
$
|
6,058,573
|
$
|
2,654,607
|
$
|
2,444,040
|
|||||
Weighted average shares outstanding
|
4,657,131
|
4,639,204
|
4,658,400
|
4,636,395
|
|||||||||
Basic and diluted earnings per share
|
$
|
1.09
|
$
|
1.31
|
$
|
0.57
|
$
|
0.53
|
|||||
See accompanying notes to unaudited consolidated financial statements.
|
Six Months Ended
June 30,
|
Three Months Ended
June 30,
|
|||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||
Net income
|
$
|
5,066,375
|
$
|
6,058,573
|
$
|
2,654,607
|
$
|
2,444,040
|
||||||
Other comprehensive income
|
||||||||||||||
Unrealized holding (losses) gains on securities available for sale
|
(3,304,703
|
)
|
673,527
|
(3,234,540
|
)
|
159,166
|
||||||||
Reclassification adjustment gains realized in net income
|
(1,228
|
)
|
(299,919
|
)
|
(1,228
|
)
|
(2,750
|
)
|
||||||
Net unrealized (losses) gains
|
(3,305,931
|
)
|
373,608
|
(3,235,768
|
)
|
156,416
|
||||||||
Tax effect
|
(1,270,800
|
)
|
175,792
|
(1,243,830
|
)
|
60,126
|
||||||||
Net of tax amount
|
(2,035,131
|
)
|
197,816
|
(1,991,938
|
)
|
96,290
|
||||||||
Change in funded status of defined benefit pension plan and other benefit plans
|
||||||||||||||
Reclassification adjustment for amortization of prior service costs
|
(41,572
|
)
|
(41,572
|
)
|
(20,786
|
)
|
(20,786
|
)
|
||||||
Reclassification adjustment for amortization of net actuarial loss
|
801,086
|
671,096
|
400,984
|
335,548
|
||||||||||
Total before tax effect
|
759,514
|
629,524
|
380,198
|
314,762
|
||||||||||
Tax effect
|
292,501
|
241,988
|
140,109
|
120,994
|
||||||||||
Net of tax amount
|
467,013
|
387,536
|
240,089
|
193,768
|
||||||||||
Total other comprehensive (loss) income
|
(1,568,118
|
)
|
585,352
|
(1,751,849
|
)
|
290,058
|
||||||||
Comprehensive income
|
$
|
3,498,257
|
$
|
6,643,925
|
$
|
902,758
|
$
|
2,734,098
|
||||||
See accompanying notes to unaudited consolidated financial statements.
|
Common Stock
|
Additional Paid-in Capital
|
Retained Earnings
|
Treasury Stock
|
Accumulated Other Comprehensive Income (Loss)
|
Total
|
|||||||||||||||||||
Balances at December 31, 2011
|
$
|
53,101
|
$
|
45,582,861
|
$
|
100,628,900
|
$
|
(18,894,044
|
)
|
$
|
(1,441,378
|
)
|
$
|
125,929,440
|
||||||||||
Net income
|
-
|
-
|
6,058,573
|
-
|
-
|
6,058,573
|
||||||||||||||||||
Other comprehensive income
|
-
|
-
|
-
|
-
|
585,352
|
585,352
|
||||||||||||||||||
Restricted stock awards
|
-
|
44,743
|
-
|
-
|
-
|
44,743
|
||||||||||||||||||
Restricted stock units for directors' deferred compensation plan
|
-
|
42,982
|
-
|
-
|
-
|
42,982
|
||||||||||||||||||
Cash dividends declared ($.50 per share)
|
-
|
-
|
(2,286,005
|
)
|
-
|
-
|
(2,286,005
|
)
|
||||||||||||||||
Distribution of 10,238 shares of treasury stock for directors'
compensation
|
-
|
(28,121
|
)
|
-
|
261,069
|
-
|
232,948
|
|||||||||||||||||
Distribution of 3,453 shares of treasury stock for employee
compensation
|
-
|
(8,052
|
)
|
-
|
88,052
|
-
|
80,000
|
|||||||||||||||||
Distribution of 3,240 shares of treasury stock for deferred directors’
compensation
|
-
|
(81,747
|
)
|
-
|
82,588
|
-
|
841
|
|||||||||||||||||
Distribution of 1,079 shares of treasury stock for employee
restricted stock awards
|
-
|
(27,514
|
)
|
-
|
27,514
|
-
|
-
|
|||||||||||||||||
Purchase of 19,098 shares of treasury stock
|
-
|
-
|
-
|
(480,073
|
)
|
-
|
(480,073
|
)
|
||||||||||||||||
Balances at June 30, 2012
|
$
|
53,101
|
$
|
45,525,152
|
$
|
104,401,468
|
$
|
(18,914,894
|
)
|
$
|
(856,026
|
)
|
$
|
130,208,801
|
||||||||||
Balances at December 31, 2012
|
$
|
53,101
|
$
|
45,357,073
|
$
|
107,078,182
|
$
|
(18,566,490
|
)
|
$
|
(2,806,929
|
)
|
$
|
131,114,937
|
||||||||||
Net income
|
-
|
-
|
5,066,375
|
-
|
-
|
5,066,375
|
||||||||||||||||||
Other comprehensive loss
|
-
|
-
|
-
|
-
|
(1,568,118
|
)
|
(1,568,118
|
)
|
||||||||||||||||
Restricted stock awards
|
-
|
85,494
|
-
|
-
|
-
|
85,494
|
||||||||||||||||||
Restricted stock units for directors' deferred compensation plan
|
-
|
50,925
|
-
|
-
|
-
|
50,925
|
||||||||||||||||||
Cash dividends declared ($.52 per share)
|
-
|
-
|
(2,389,105
|
)
|
-
|
-
|
(2,389,105
|
)
|
||||||||||||||||
Distribution of 7,969 shares of treasury stock for directors'
compensation
|
-
|
13,896
|
-
|
203,050
|
-
|
216,946
|
||||||||||||||||||
Distribution of 3,356 shares of treasury stock for deferred directors’
compensation
|
-
|
(74,623
|
)
|
-
|
85,577
|
-
|
10,954
|
|||||||||||||||||
Distribution of 4,116 shares of treasury stock for employee
compensation
|
-
|
7,278
|
-
|
104,876
|
-
|
112,154
|
||||||||||||||||||
Purchase of 3,094 shares of treasury stock
|
-
|
-
|
-
|
(92,630
|
)
|
-
|
(92,630
|
)
|
||||||||||||||||
Sale of 2,369 shares of treasury stock
|
-
|
10,518
|
-
|
60,362
|
-
|
70,880
|
||||||||||||||||||
Balances at June 30, 2013
|
$
|
53,101
|
$
|
45,450,561
|
$
|
109,755,452
|
$
|
(18,205,255
|
)
|
$
|
(4,375,047
|
)
|
$
|
132,678,812
|
||||||||||
See accompanying notes to unaudited consolidated financial statements.
|
SIX MONTHS ENDED
JUNE 30,
|
||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
2013
|
2012
|
||||||
Net income
|
$
|
5,066,375
|
$
|
6,058,573
|
||||
Adjustments to reconcile net income to net cash provided
by operating activities:
|
||||||||
Amortization of intangible assets
|
449,079
|
548,190
|
||||||
Provision for loan losses
|
881,484
|
528,897
|
||||||
Depreciation and amortization of fixed assets
|
1,513,066
|
1,497,490
|
||||||
Amortization of premiums on securities, net
|
1,125,431
|
894,292
|
||||||
Gains on sales of loans held for sale, net
|
(291,169
|
)
|
(144,380
|
)
|
||||
Proceeds from sales of loans held for sale
|
9,470,394
|
5,360,780
|
||||||
Loans originated and held for sale
|
(9,069,377
|
)
|
(5,303,317
|
)
|
||||
Net gains on trading assets
|
(13,098
|
)
|
(17,369
|
)
|
||||
Net gains on securities transactions
|
(1,228
|
)
|
(299,919
|
)
|
||||
Proceeds from sales of trading assets
|
4,938
|
92,584
|
||||||
Purchase of trading assets
|
(32,313
|
)
|
(32,939
|
)
|
||||
Net (gains) losses on sale of other real estate owned
|
(15,997
|
)
|
4,502
|
|||||
(Increase) decrease in other assets
|
(1,421,591
|
)
|
4,919,260
|
|||||
Decrease in prepaid FDIC assessment
|
1,969,526
|
372,601
|
||||||
Decrease in accrued interest payable
|
(48,142
|
)
|
(144,225
|
)
|
||||
Expense related to restricted stock units for directors'
deferred compensation plan
|
50,925
|
42,982
|
||||||
Expense related to employee stock compensation
|
112,154
|
80,000
|
||||||
Expense related to employee stock awards
|
85,494
|
44,743
|
||||||
Increase (decrease) in other liabilities
|
1,298,530
|
(104,425
|
)
|
|||||
Income from bank owned life insurance
|
(41,686
|
)
|
(43,269
|
)
|
||||
Net cash provided by operating activities
|
11,092,795
|
14,355,051
|
||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Proceeds from sales and calls of securities available for sale
|
10,533,633
|
69,367,438
|
||||||
Proceeds from maturities and principal collected on securities available for sale
|
31,120,375
|
14,616,579
|
||||||
Proceeds from maturities and principal collected on securities held to maturity
|
3,908,091
|
3,518,840
|
||||||
Purchases of securities available for sale
|
(31,760,331
|
)
|
(64,276,418
|
)
|
||||
Purchases of securities held to maturity
|
(4,729,900
|
)
|
(1,541,250
|
)
|
||||
Purchase of Federal Home Loan Bank and Federal Reserve Bank stock
|
(2,930,350
|
)
|
(26,250
|
)
|
||||
Redemption of Federal Home Loan Bank and Federal Reserve Bank stock
|
3,061,400
|
176,900
|
||||||
Purchases of premises and equipment
|
(997,515
|
)
|
(1,452,526
|
)
|
||||
Proceeds from sales of other real estate owned
|
87,737
|
132,273
|
||||||
Net increase in loans
|
(40,611,523
|
)
|
(58,445,477
|
)
|
||||
Net cash used by investing activities
|
(32,318,383
|
)
|
(37,929,891
|
)
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Net increase in demand deposits, interest-bearing demand accounts,
savings accounts, and insured money market accounts
|
21,959,430
|
72,097,856
|
||||||
Net decrease in time deposits
|
(11,724,959
|
)
|
(16,911,987
|
)
|
||||
Net decrease in securities sold under agreements to repurchase
|
(2,142,580
|
)
|
(5,356,414
|
)
|
||||
Repayments of Federal Home Loan Bank long term advances
|
(1,124,133
|
)
|
(2,216,124
|
)
|
||||
Purchase of treasury stock
|
(92,630
|
)
|
(480,073
|
)
|
||||
Sale of treasury stock
|
60,362
|
-
|
||||||
Cash dividends paid
|
(1,194,117
|
)
|
(2,285,005
|
)
|
||||
Net cash provided by financing activities
|
5,741,373
|
44,848,253
|
||||||
Net (decrease) increase in cash and cash equivalents
|
(15,484,215
|
)
|
21,273,413
|
|||||
Cash and cash equivalents, beginning of period
|
40,241,221
|
|
52,901,853
|
|||||
Cash and cash equivalents, end of period
|
$
|
24,757,006
|
$
|
74,175,266
|
Supplemental disclosure of cash flow information:
|
||||||||
Cash paid during the year for:
|
||||||||
Interest
|
$
|
2,084,831
|
$
|
3,068,390
|
||||
Income Taxes
|
$
|
2,591,049
|
$
|
3,500
|
||||
Supplemental disclosure of non-cash activity:
|
||||||||
Transfer of loans to other real estate owned
|
$
|
94,970
|
$
|
223,071
|
||||
Dividends declared, not yet paid
|
$
|
1,194,988
|
$
|
1,142,082
|
||||
See accompanying notes to unaudited consolidated financial statements.
|
FASB: Financial Accounting Standards Board
|
OTTI: Other-than-temporary impairment
|
FDIC: Federal Deposit Insurance Corporation
|
PCI: Purchased credit impaired
|
FHLB: Federal Home Loan Bank
|
SEC: Securities and Exchange Commission
|
GAAP: U.S. generally accepted accounting principles
|
CDO: Collateralized Debt Obligation
|
June 30, 2013
|
||||||||||||||||
Amortized
Cost
|
Unrealized Gains
|
Unrealized Losses
|
Estimated Fair Value
|
|||||||||||||
Obligations of U.S. Government and U.S.
Government sponsored enterprises
|
$
|
143,415,030
|
$
|
1,854,458
|
$
|
819,118
|
$
|
144,450,370
|
||||||||
Mortgage-backed securities, residential
|
21,869,811
|
1,109,754
|
173
|
22,979,392
|
||||||||||||
Collateralized mortgage obligations
|
2,166,314
|
22,661
|
-
|
2,188,975
|
||||||||||||
Obligations of states and political subdivisions
|
36,005,029
|
1,006,738
|
8,204
|
37,003,563
|
||||||||||||
Corporate bonds and notes
|
7,401,318
|
119,787
|
5,532
|
7,515,573
|
||||||||||||
SBA loan pools
|
1,554,691
|
37,220
|
-
|
1,591,911
|
||||||||||||
Trust Preferred securities
|
2,523,193
|
107,238
|
114,725
|
2,515,706
|
||||||||||||
Corporate stocks
|
700,024
|
6,418,407
|
1,969
|
7,116,462
|
|
|||||||||||
Total
|
$
|
215,635,410
|
$
|
10,676,263
|
$
|
949,721
|
$
|
225,361,952
|
December 31, 2012
|
||||||||||||||||
Amortized Cost
|
Unrealized Gains
|
Unrealized Losses
|
Estimated Fair Value
|
|||||||||||||
Obligations of U.S. Government and U.S.
Government sponsored enterprises
|
$
|
138,041,393
|
$
|
3,549,821
|
$
|
-
|
$
|
141,591,214
|
||||||||
Mortgage-backed securities, residential
|
29,591,883
|
1,923,366
|
-
|
31,515,249
|
||||||||||||
Collateralized mortgage obligations
|
3,494,642
|
48,718
|
-
|
3,543,360
|
||||||||||||
Obligations of states and political subdivisions
|
39,174,595
|
1,641,510
|
1,383
|
40,814,722
|
||||||||||||
Corporate bonds and notes
|
11,412,167
|
239,468
|
-
|
11,651,635
|
||||||||||||
SBA loan pools
|
1,682,736
|
41,404
|
-
|
1,724,140
|
||||||||||||
Trust preferred securities
|
2,519,379
|
134,959
|
183,425
|
2,470,913
|
||||||||||||
Corporate stocks
|
736,495
|
5,645,753
|
7,718
|
6,374,530
|
||||||||||||
Total
|
$
|
226,653,290
|
$
|
13,224,999
|
$
|
192,526
|
$
|
239,685,763
|
June 30, 2013
|
||||||||||||||||
Amortized Cost
|
Unrealized Gains
|
Unrealized Losses
|
Estimated Fair Value
|
|||||||||||||
Obligations of states and political subdivisions
|
$
|
4,289,745
|
$
|
469,783
|
$
|
-
|
$
|
4,759,528
|
||||||||
Time deposits with other financial institutions
|
2,280,517
|
24,177
|
-
|
2,304,694
|
||||||||||||
Total
|
$
|
6,570,262
|
$
|
493,960
|
$
|
-
|
$
|
7,064,222
|
|
December 31, 2012
|
|||||||||||||||
Amortized Cost
|
Unrealized Gains
|
Unrealized Losses
|
Estimated Fair Value
|
|||||||||||||
Obligations of states and political subdivisions
|
$
|
5,748,453
|
$
|
673,033
|
$
|
-
|
$
|
6,421,486
|
June 30, 2013
|
||||||||||||||||
Available for Sale
|
Held to Maturity
|
|||||||||||||||
Amortized
|
Fair
|
Amortized
|
Fair
|
|||||||||||||
Cost
|
Value
|
Cost
|
Value
|
|||||||||||||
Within One Year
|
$
|
19,976,974
|
$
|
20,169,545
|
$
|
2,126,042
|
$
|
2,147,424
|
||||||||
After One, But Within Five Years
|
151,074,813
|
153,060,997
|
3,037,881
|
3,266,532
|
||||||||||||
After Five, But Within Ten Years
|
16,717,345
|
16,756,465
|
1,406,339
|
1,650,266
|
||||||||||||
After Ten Years
|
1,575,438
|
1,498,205
|
-
|
-
|
||||||||||||
189,344,570
|
191,485,212
|
6,570,262
|
7,064.222
|
|||||||||||||
Mortgage-backed securities, residential
|
21,869,811
|
22,979,392
|
-
|
-
|
||||||||||||
Collateralized mortgage obligations
|
2,166,314
|
2,188,975
|
-
|
-
|
||||||||||||
SBA loan pools
|
1,554,691
|
1,591,911
|
-
|
-
|
||||||||||||
Total
|
$
|
214,935,386
|
$
|
218,245,490
|
$
|
6,570,262
|
$
|
7,064,222
|
2013
|
2012
|
||||
Proceeds
|
$
|
10,533,633
|
$
|
69,367,438
|
|
Gross gains
|
$
|
1,228
|
$
|
299,919
|
|
Gross losses
|
$
|
-
|
$
|
-
|
|
Tax expense
|
$
|
472
|
$
|
115,289
|
Less than 12 months
|
12 months or longer
|
Total
|
||||||||||||||||||||||
June 30, 2013
|
Fair Value
|
Unrealized
Losses
|
Fair Value
|
Unrealized
Losses
|
Fair Value
|
Unrealized
Losses
|
||||||||||||||||||
Obligations of U.S.
Government and U.S.
Government sponsored enterprises
|
$
|
61,720,950
|
$
|
819,118
|
$
|
-
|
$
|
-
|
$
|
61,720,950
|
$
|
819,118
|
||||||||||||
Mortgage-backed securities, residential
|
114,557
|
173
|
-
|
-
|
114,557
|
173
|
||||||||||||||||||
Obligations of states and political subdivisions
|
946,089
|
7,630
|
250,673
|
574
|
1,196,762
|
8,204
|
||||||||||||||||||
Corporate bonds
|
240,667
|
5,532
|
-
|
-
|
240,667
|
5,532
|
||||||||||||||||||
Trust preferred securities
|
-
|
-
|
514,300
|
114,725
|
514,300
|
114,725
|
||||||||||||||||||
Corporate stocks
|
-
|
-
|
1,668
|
1,969
|
1,668
|
1,969
|
||||||||||||||||||
Total temporarily
impaired securities
|
$
|
63,022,263
|
$
|
832,453
|
$
|
766,641
|
$
|
117,268
|
$
|
63,788,904
|
$
|
949,721
|
Less than 12 months
|
12 months or longer
|
Total
|
||||||||||||||||||||||
Fair Value
|
Unrealized
Losses
|
Fair Value
|
Unrealized
Losses
|
Fair Value
|
Unrealized
Losses
|
|||||||||||||||||||
December 31, 2012
|
||||||||||||||||||||||||
Obligations of states and
political subdivisions
|
$
|
-
|
$
|
-
|
$
|
430,166
|
$
|
1,383
|
$
|
430,166
|
$
|
1,383
|
||||||||||||
Trust preferred securities
|
-
|
-
|
445,600
|
183,425
|
445,600
|
183,425
|
||||||||||||||||||
Corporate stocks
|
-
|
-
|
45,912
|
7,718
|
45,912
|
7,718
|
||||||||||||||||||
Total temporarily
impaired securities
|
$
|
-
|
$
|
-
|
$
|
921,678
|
$
|
192,526
|
$
|
921,678
|
$
|
192,526
|
2013
|
2012
|
|||||||
Beginning balance, January 1,
|
$
|
3,506,073
|
$
|
3,506,073
|
||||
Amounts related to credit loss for which an other-than-temporary
impairment was not previously recognized
|
-
|
-
|
||||||
Additions/Subtractions:
|
||||||||
Amounts realized for securities sold during the period
|
-
|
-
|
||||||
Amounts related to securities for which the company intends to sell
or that it will be more likely than not that the company will be required to
sell prior to recovery of amortized cost basis
|
-
|
-
|
||||||
Reductions for increase in cash flows expected to be collected that are
recognized over the remaining life of the security
|
-
|
-
|
||||||
Increases to the amount related to the credit loss for which other-than-temporary
impairment was previously recognized
|
-
|
-
|
||||||
Ending balance, June 30,
|
$
|
3,506,073
|
$
|
3,506,073
|
Beginning balance, April 1,
|
$
|
3,506,073
|
$
|
3,506,073
|
||||
Amounts related to credit loss for which an other-than-temporary
impairment was not previously recognized
|
-
|
-
|
||||||
Additions/Subtractions:
|
||||||||
Amounts realized for securities sold during the period
|
-
|
-
|
||||||
Amounts related to securities for which the company intends to sell
or that it will be more likely than not that the company will be required to
sell prior to recovery of amortized cost basis
|
-
|
-
|
||||||
Reductions for increase in cash flows expected to be collected that are
recognized over the remaining life of the security
|
-
|
-
|
||||||
Increases to the amount related to the credit loss for which other-than-temporary
impairment was previously recognized
|
-
|
-
|
||||||
Ending balance, June 30,
|
$
|
3,506,073
|
$
|
3,506,073
|
June 30, 2013
|
December 31, 2012
|
|||||||
Commercial and agricultural:
|
||||||||
Commercial and industrial
|
$
|
134,617,505
|
$
|
133,154,615
|
||||
Agricultural
|
711,904
|
696,666
|
||||||
Commercial mortgages:
|
||||||||
Construction
|
19,275,080
|
43,269,303
|
||||||
Other
|
323,413,353
|
276,928,123
|
||||||
Residential mortgages
|
198,071,941
|
200,475,097
|
||||||
Consumer loans:
|
||||||||
Credit cards
|
1,680,116
|
1,851,145
|
||||||
Home equity lines and loans
|
90,494,092
|
87,045,421
|
||||||
Indirect consumer loans
|
146,624,572
|
130,573,200
|
||||||
Direct consumer loans
|
19,151,022
|
19,523,371
|
||||||
Total loans, net of deferred origination
fees and costs, and unearned income
|
934,039,585
|
$
|
893,516,941
|
|||||
Interest receivable on loans
|
2,389,020
|
2,383,998
|
||||||
Total recorded investment in loans
|
$
|
936,428,605
|
$
|
895,900,939
|
Six Months Ended
|
||||||||||||||||||||||||
June 30, 2013
|
||||||||||||||||||||||||
Allowance for loan losses
|
Commercial and Agricultural
|
Commercial Mortgages
|
Residential Mortgages
|
Consumer Loans
|
Unallocated
|
Total
|
||||||||||||||||||
Beginning balance:
|
$
|
1,707,596
|
$
|
4,427,698
|
$
|
1,565,571
|
$
|
2,705,639
|
$
|
26,146
|
$
|
10,432,650
|
||||||||||||
Charge Offs:
|
(18,475
|
)
|
-
|
(53,753
|
)
|
(397,783
|
)
|
-
|
(470,011
|
)
|
||||||||||||||
Recoveries:
|
294,696
|
19,276
|
38,610
|
123,520
|
-
|
476,102
|
||||||||||||||||||
Net recoveries (charge offs)
|
276,221
|
19,276
|
(15,143
|
)
|
(274,263
|
)
|
-
|
6,091
|
||||||||||||||||
Provision
|
(105,120
|
)
|
687,436
|
(35,004
|
)
|
360,318
|
(26,146
|
)
|
881,484
|
|||||||||||||||
Ending balance
|
$
|
1,878,697
|
$
|
5,134,410
|
$
|
1,515,424
|
$
|
2,791,694
|
$
|
-
|
$
|
11,320,225
|
Six Months Ended
|
||||||||||||||||||||||||||
June 30, 2012
|
||||||||||||||||||||||||||
Allowance for loan losses
|
Commercial and Agricultural
|
Commercial Mortgages
|
Residential Mortgages
|
Consumer Loans
|
Unallocated
|
Total
|
||||||||||||||||||||
Beginning balance:
|
$
|
3,143,372
|
$
|
2,570,149
|
$
|
1,309,649
|
$
|
2,192,729
|
$
|
443,420
|
$
|
9,659,319
|
||||||||||||||
Reclassification of acquired
loan discount
|
73,227
|
50,332
|
-
|
-
|
-
|
123,559
|
||||||||||||||||||||
Charge Offs:
|
(5,792
|
)
|
(57,352
|
)
|
(72,613
|
)
|
(273,428
|
)
|
-
|
(409,185
|
)
|
|||||||||||||||
Recoveries:
|
351,763
|
30,496
|
-
|
107,723
|
-
|
489,982
|
||||||||||||||||||||
Net recoveries (charge-offs)
|
345,971
|
(26,856
|
)
|
(72,613
|
)
|
(165,705
|
)
|
-
|
)
|
80,797
|
||||||||||||||||
Provision
|
(558,359
|
)
|
482,087
|
187,780
|
447,161
|
$
|
(29,772)
|
528,897
|
||||||||||||||||||
Ending balance
|
$
|
3,004,211
|
$
|
3,075,712
|
$
|
1,424,816
|
$
|
2,474,185
|
$
|
413,648
|
$
|
10,392,572
|
Three Months Ended
June 30, 2013
|
||||||||||||||||||||||||
Allowance for loan losses
|
Commercial and Agricultural
|
Commercial Mortgages
|
Residential Mortgages
|
Consumer Loans
|
Unallocated
|
Total
|
||||||||||||||||||
Beginning balance:
|
$
|
1,992,884
|
$
|
4,672,637
|
$
|
1,557,098
|
$
|
2,602,074
|
$
|
-
|
$
|
10,824,693
|
||||||||||||
Charge Offs:
|
(1,863
|
)
|
-
|
(9,393
|
)
|
(200,419
|
)
|
-
|
(211,675
|
)
|
||||||||||||||
Recoveries:
|
152,271
|
10,301
|
38,610
|
55,551
|
-
|
256,733
|
||||||||||||||||||
Net recoveries (charge offs)
|
150,408
|
10,301
|
29,217
|
(144,868
|
)
|
-
|
45,058
|
|||||||||||||||||
Provision
|
(264,595
|
)
|
451,472
|
(70,891
|
)
|
334,488
|
-
|
450,474
|
||||||||||||||||
Ending balance
|
$
|
1,878,697
|
$
|
5,134,410
|
$
|
1,515,424
|
$
|
2,791,694
|
$
|
-
|
$
|
11,320,225
|
Three Months Ended
June 30, 2012
|
||||||||||||||||||||||||
Allowance for loan losses
|
Commercial and Agricultural
|
Commercial Mortgages
|
Residential Mortgages
|
Consumer Loans
|
Unallocated
|
Total
|
||||||||||||||||||
Beginning balance:
|
$
|
3,361,393
|
$
|
3,030,504
|
$
|
1,417,252
|
$
|
2,100,433
|
$
|
373,708
|
$
|
10,283,290
|
||||||||||||
Charge Offs:
|
(5,792
|
)
|
(8,295
|
)
|
(58,273
|
)
|
(115,109
|
)
|
-
|
(187,469
|
)
|
|||||||||||||
Recoveries:
|
179,156
|
20,261
|
-
|
45,741
|
-
|
245,158
|
||||||||||||||||||
Net recoveries (charge offs)
|
173,364
|
11,966
|
(58,273
|
)
|
(69,368
|
)
|
-
|
57,689
|
||||||||||||||||
Provision
|
(530,546
|
)
|
33,242
|
65,837
|
443,120
|
39,940
|
51,593
|
|||||||||||||||||
Ending balance
|
$
|
3,004,211
|
$
|
3,075,712
|
$
|
1,424,816
|
$
|
2,474,185
|
$
|
413,648
|
$
|
10,392,572
|
June 30, 2013
|
||||||||||||||||||||||||
Allowance for loan losses
|
Commercial and Agricultural
|
Commercial Mortgages
|
Residential Mortgages
|
Consumer Loans
|
Unallocated
|
Total
|
||||||||||||||||||
Ending allowance balance
attributable to loans:
|
||||||||||||||||||||||||
Individually evaluated for
Impairment
|
$
|
315,962
|
$
|
450,245
|
$
|
-
|
$
|
4,020
|
$
|
-
|
$
|
770,227
|
||||||||||||
Collectively evaluated for
impairment
|
1,395,165
|
3,828,486
|
1,495,747
|
2,787,674
|
-
|
9,507,072
|
||||||||||||||||||
Acquired with deteriorated
credit quality
|
167,570
|
855,679
|
19,677
|
-
|
-
|
1,042,926
|
||||||||||||||||||
Total ending allowance balance
|
$
|
1,878,697
|
$
|
5,134,410
|
$
|
1,515,424
|
$
|
2,791,694
|
$
|
-
|
$
|
11,320,225
|
December 31, 2012
|
||||||||||||||||||||||||
Allowance for loan losses
|
Commercial and Agricultural
|
Commercial Mortgages
|
Residential Mortgages
|
Consumer Loans
|
Unallocated
|
Total
|
||||||||||||||||||
Ending allowance balance attributable to loans:
|
||||||||||||||||||||||||
Individually evaluated for
impairment
|
$
|
133,437
|
$
|
59,201
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
192,638
|
||||||||||||
Collectively evaluated for
impairment
|
1,459,432
|
3,533,365
|
1,565,571
|
2,705,639
|
26,146
|
9,290,153
|
||||||||||||||||||
Acquired with deteriorated
credit quality
|
114,727
|
835,132
|
-
|
-
|
-
|
949,859
|
||||||||||||||||||
Total ending allowance balance
|
$
|
1,707,596
|
$
|
4,427,698
|
$
|
1,565,571
|
$
|
2,705,639
|
$
|
26,146
|
$
|
10,432,650
|
June 30, 2013
|
||||||||||||||||||||
Loans:
|
Commercial
and
Agricultural
|
Commercial Mortgages
|
Residential Mortgages
|
Consumer Loans
|
Total
|
|||||||||||||||
Loans individually
evaluated for impairment
|
$
|
2,227,900
|
$
|
9,945,029
|
$
|
125,420
|
$
|
102,914
|
$
|
12,401,263
|
||||||||||
Loans collectively
evaluated for impairment
|
132,554,915
|
324,521,166
|
198,223,145
|
258,518,832
|
913,818,058
|
|||||||||||||||
Loans acquired with deteriorated
credit quality
|
882,814
|
9,073,632
|
252,838
|
-
|
10,209,284
|
|||||||||||||||
Total ending loans balance
|
$
|
135,665,629
|
$
|
343,539,827
|
$
|
198,601,403
|
$
|
258,621,746
|
$
|
936,428,605
|
December 31, 2012
|
||||||||||||||||||||
Loans:
|
Commercial
and
Agricultural
|
Commercial Mortgages
|
Residential Mortgages
|
Consumer Loans
|
Total
|
|||||||||||||||
Loans individually
evaluated for impairment
|
$
|
1,907,395
|
$
|
10,620,274
|
$
|
131,909
|
$
|
-
|
$
|
12,659,578
|
||||||||||
Loans collectively
evaluated for impairment
|
131,045,609
|
301,172,164
|
200,622,600
|
239,689,455
|
872,529,828
|
|||||||||||||||
Loans acquired with deteriorated
credit quality
|
1,241,418
|
9,225,847
|
244,268
|
-
|
10,711,533
|
|||||||||||||||
Total ending loans balance
|
$
|
134,194,422
|
$
|
321,018,285
|
$
|
200,998,777
|
$
|
239,689,455
|
$
|
895,900,939
|
June 30, 2013
|
December 31, 2012
|
|||||||||||||||||||||||
With no related allowance recorded:
|
Unpaid Principal Balance
|
Recorded Investment
|
Allowance for Loan Losses Allocated
|
Unpaid Principal Balance
|
Recorded Investment
|
Allowance for Loan Losses Allocated
|
||||||||||||||||||
Commercial and agricultural:
|
||||||||||||||||||||||||
Commercial & industrial
|
$
|
1,852,772
|
$
|
1,655,206
|
$
|
-
|
$
|
2,059,027
|
|
$
|
1,462,157
|
$
|
-
|
|||||||||||
Commercial mortgages:
|
||||||||||||||||||||||||
Construction
|
3,177,618
|
3,154,238
|
-
|
5,168,353
|
5,166,853
|
-
|
||||||||||||||||||
Other
|
6,031,853
|
5,669,704
|
-
|
5,678,565
|
5,090,399
|
-
|
||||||||||||||||||
Residential mortgages
|
125,420
|
125,420
|
-
|
131,909
|
131,909
|
-
|
||||||||||||||||||
Consumer loans:
|
||||||||||||||||||||||||
Home equity lines & loans
|
43,975
|
44,772
|
-
|
-
|
-
|
-
|
||||||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||||||
Commercial and agricultural:
|
||||||||||||||||||||||||
Commercial & industrial
|
972,894
|
572,694
|
315,962
|
446,330
|
445,238
|
133,437
|
||||||||||||||||||
Commercial mortgages:
|
||||||||||||||||||||||||
Other
|
1,130,969
|
1,121,087
|
450,245
|
364,423
|
363,022
|
59,201
|
||||||||||||||||||
Consumer loans:
|
||||||||||||||||||||||||
Home equity lines & loans
|
57,876
|
58,142
|
4,020
|
-
|
-
|
-
|
||||||||||||||||||
Total
|
$
|
13,393,377
|
$
|
12,401,263
|
$
|
770,227
|
$
|
13,848,607
|
|
$
|
12,659,578
|
$
|
192,638
|
Six-Months Ended
June 30, 2013
|
Six-Months Ended
June 30, 2012
|
Three Months Ended
June 30, 2013
|
Three Months Ended
June 30, 2012
|
||||||||||||||||||||||||||||
Average Recorded Investment
|
Interest Income Recognized
|
Average Recorded Investment
|
Interest Income Recognized
|
Average Recorded Investment
|
Interest Income Recognized
|
Average Recorded Investment
|
Interest Income Recognized
|
||||||||||||||||||||||||
With no related allowance recorded:
|
|||||||||||||||||||||||||||||||
Commercial and agricultural:
|
|||||||||||||||||||||||||||||||
Commercial & industrial
|
$
|
1,523,566
|
$
|
34,558
|
$
|
1,067,170
|
$
|
-
|
$
|
1,554,270
|
$
|
17,407
|
$
|
143,367
|
$
|
-
|
|||||||||||||||
Commercial mortgages:
|
|||||||||||||||||||||||||||||||
Construction
|
4,168,038
|
63,924
|
10,454
|
-
|
3,668,630
|
32,132
|
10,454
|
-
|
|||||||||||||||||||||||
Other
|
5,685,324
|
118,310
|
1
|
827,553
|
-
|
5,982,787
|
65,768
|
811,005
|
-
|
||||||||||||||||||||||
Residential mortgages
|
128,559
|
-
|
111,368
|
-
|
126,884
|
-
|
77,384
|
-
|
|||||||||||||||||||||||
Consumer loans:
|
|||||||||||||||||||||||||||||||
Home equity lines & loans
|
30,104
|
681
|
19,856
|
2,289
|
45,156
|
428
|
29,784
|
1,123
|
|||||||||||||||||||||||
With an allowance recorded:
|
|||||||||||||||||||||||||||||||
Commercial and agricultural:
|
|||||||||||||||||||||||||||||||
Commercial & industrial
|
498,852
|
-
|
2,347,963
|
-
|
525,660
|
-
|
2,341,810
|
-
|
|||||||||||||||||||||||
Commercial mortgages:
|
|||||||||||||||||||||||||||||||
Construction
|
-
|
-
|
5,530
|
-
|
-
|
-
|
4,148
|
-
|
|||||||||||||||||||||||
Other
|
614,402
|
-
|
2,109,919
|
-
|
740,092
|
-
|
1,302,796
|
-
|
|||||||||||||||||||||||
Residential mortgages
|
-
|
-
|
42,668
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||
Consumer loans:
|
|||||||||||||||||||||||||||||||
Home equity lines & loans
|
38,730
|
1,249
|
-
|
-
|
58,094
|
1,082
|
-
|
-
|
|||||||||||||||||||||||
Direct consumer loans
|
5,083
|
-
|
-
|
-
|
7,625
|
-
|
-
|
-
|
|||||||||||||||||||||||
Total
|
$
|
12,692,658
|
$
|
218,722
|
$
|
6,542,481
|
$
|
2,289
|
$
|
12,709,198
|
$
|
116,817
|
$
|
4,720,748
|
$
|
1,123
|
(1)
|
Cash basis interest income approximates interest income recognized.
|
June 30, 2013
|
Current
|
30-89 Days Past Due
|
90 Days or more Past Due and accruing
|
Loans acquired with deteriorated credit quality
|
Non-Accrual (1)
|
Total
|
|||||||||||||||||||
Commercial and agricultural:
|
|||||||||||||||||||||||||
Commercial & industrial
|
$
|
132,448,955
|
$
|
679,194
|
$
|
-
|
$
|
882,814
|
$
|
940,993
|
$
|
134,951,956
|
|||||||||||||
Agricultural
|
713,673
|
-
|
-
|
-
|
-
|
713,673
|
|||||||||||||||||||
Commercial mortgages:
|
|||||||||||||||||||||||||
Construction
|
15,076,034
|
-
|
2,183,858
|
1,092,697
|
970,380
|
19,322,969
|
|||||||||||||||||||
Other
|
313,754,610
|
545,878
|
-
|
7,980,935
|
1,935,435
|
324,216,858
|
|||||||||||||||||||
Residential mortgages
|
193,556,426
|
1,987,955
|
-
|
252,838
|
2,804,184
|
198,601,403
|
|||||||||||||||||||
Consumer loans:
|
|||||||||||||||||||||||||
Credit cards
|
1,653,581
|
10,798
|
15,737
|
-
|
-
|
1,680,116
|
|||||||||||||||||||
Home equity lines & loans
|
89,954,325
|
296,430
|
-
|
-
|
475,671
|
90,726,426
|
|||||||||||||||||||
Indirect consumer loans
|
145,819,447
|
896,746
|
-
|
-
|
280,817
|
146,997,010
|
|||||||||||||||||||
Direct consumer loans
|
19,093,867
|
63,451
|
-
|
-
|
60,876
|
19,218,194
|
|||||||||||||||||||
Total
|
$
|
912,070,918
|
$
|
4,480,452
|
$
|
2,199,595
|
$
|
10,209,284
|
$
|
7,468,356
|
$
|
936,428,605
|
December 31, 2012
|
Current
|
30-89 Days Past Due
|
90 Days or more Past Due and accruing
|
Loans acquired with deteriorated credit quality
|
Non-Accrual (1)
|
Total
|
|||||||||||||||||||
Commercial and agricultural:
|
|||||||||||||||||||||||||
Commercial & industrial
|
$
|
131,404,371
|
$
|
183,269
|
$
|
-
|
$
|
1,241,418
|
$
|
666,912
|
$
|
133,495,970
|
|||||||||||||
Agricultural
|
698,452
|
-
|
-
|
-
|
-
|
698,452
|
|||||||||||||||||||
Commercial mortgages:
|
|||||||||||||||||||||||||
Construction
|
36,988,222
|
294,565
|
4,481,066
|
1,182,037
|
434,338
|
43,380,228
|
|||||||||||||||||||
Other
|
266,261,798
|
1,750,806
|
-
|
8,043,810
|
1,581,643
|
277,638,057
|
|||||||||||||||||||
Residential mortgages
|
194,185,616
|
4,145,868
|
-
|
`
|
244,268
|
2,423,024
|
200,998,776
|
||||||||||||||||||
Consumer loans:
|
|||||||||||||||||||||||||
Credit cards
|
1,847,837
|
-
|
3,308
|
-
|
-
|
1,851,145
|
|||||||||||||||||||
Home equity lines & loans
|
86,486,782
|
211,739
|
-
|
-
|
571,365
|
87,269,886
|
|||||||||||||||||||
Indirect consumer loans
|
129,789,672
|
852,818
|
-
|
-
|
335,285
|
130,977,775
|
|||||||||||||||||||
Direct consumer loans
|
19,481,693
|
89,619
|
-
|
-
|
19,338
|
19,590,650
|
|||||||||||||||||||
Total
|
$
|
867,144,443
|
$
|
7,528,684
|
$
|
4,484,374
|
$
|
10,711,533
|
$
|
6,031,905
|
$
|
895,900,939
|
Six months ended June 30, 2013
|
Number of Loans
|
Pre-Modification Outstanding Recorded Investment
|
Post-Modification Outstanding Recorded Investment
|
||||||||||
Troubled debt restructurings:
|
|||||||||||||
Commercial and agricultural:
|
|||||||||||||
Commercial & industrial
|
4
|
$
|
841,162
|
$
|
841,162
|
||||||||
Commercial mortgages:
|
|||||||||||||
Other
|
1
|
133,000
|
133,000
|
||||||||||
Consumer loans:
|
|||||||||||||
Home equity lines & loans
|
2
|
103,587
|
103,587
|
||||||||||
Total
|
7
|
$
|
1,077,749
|
$
|
1,077,749
|
||||||||
Six months ended
June 30, 2012
|
|||||||||||||
Troubled debt restructurings:
|
|||||||||||||
Consumer loans:
|
|||||||||||||
Home equity lines & loans
|
1
|
$ |
58,823
|
$ |
58,823
|
||||||||
Total
|
1
|
$
|
58,823
|
$
|
58,823
|
Three months ended June 30, 2013
|
Number of Loans
|
Pre-Modification Outstanding Recorded Investment
|
Post-Modification Outstanding Recorded Investment
|
||||||||||
Troubled debt restructurings:
|
|||||||||||||
Commercial and agricultural:
|
|||||||||||||
Commercial & industrial
|
2
|
$
|
409,869
|
$
|
409,869
|
||||||||
Commercial mortgages:
|
|||||||||||||
Other
|
1
|
133,000
|
133,000
|
||||||||||
Total
|
1
|
$
|
542,869
|
$
|
542,869
|
June 30, 2013
|
||||||||||||||||||||||||||||
Not Rated
|
Pass
|
Loans acquired with deteriorated credit quality
|
Special Mention
|
Substandard
|
Doubtful
|
|||||||||||||||||||||||
Commercial and agricultural:
|
||||||||||||||||||||||||||||
Commercial & industrial
|
$
|
-
|
$
|
120,052,546
|
$
|
882,814
|
$
|
10,577,534
|
$
|
2,973,687
|
$
|
465,375
|
||||||||||||||||
Agricultural
|
-
|
713,673
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||
Commercial mortgages:
|
||||||||||||||||||||||||||||
Construction
|
-
|
13,124,675
|
1,092,697
|
3,809,440
|
1,296,157
|
-
|
||||||||||||||||||||||
Other
|
-
|
292,560,550
|
7,980,935
|
13,797,377
|
9,877,996
|
-
|
||||||||||||||||||||||
Residential mortgages
|
195,544,381
|
-
|
252,838
|
-
|
2,804,184
|
-
|
||||||||||||||||||||||
Consumer loans
|
||||||||||||||||||||||||||||
Credit cards
|
1,680,116
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||
Home equity lines & loans
|
90,067,828
|
-
|
-
|
-
|
658,598
|
-
|
||||||||||||||||||||||
Indirect consumer loans
|
146,716,193
|
-
|
-
|
-
|
280,817
|
-
|
||||||||||||||||||||||
Direct consumer loans
|
19,157,318
|
-
|
-
|
-
|
60,876
|
-
|
||||||||||||||||||||||
Total
|
$
|
453,165,836
|
$
|
426,451,444
|
$
|
10,209,284
|
$
|
28,184,351
|
$
|
17,952,315
|
$
|
465,375
|
December 31, 2012
|
||||||||||||||||||||||||||||
Not Rated
|
Pass
|
Loans acquired with deteriorated credit quality
|
Special Mention
|
Substandard
|
Doubtful
|
|||||||||||||||||||||||
Commercial and agricultural:
|
||||||||||||||||||||||||||||
Commercial & industrial
|
$
|
-
|
$
|
121,145,761
|
$
|
1,241,418
|
$
|
8,008,002
|
$
|
2,606,529
|
$
|
494,260
|
||||||||||||||||
Agricultural
|
-
|
698,452
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||
Commercial mortgages:
|
||||||||||||||||||||||||||||
Construction
|
-
|
34,882,896
|
1,182,037
|
5,153,918
|
2,161,377
|
-
|
||||||||||||||||||||||
Other
|
-
|
247,793,150
|
8,043,810
|
11,974,716
|
9,826,381
|
-
|
||||||||||||||||||||||
Residential mortgages
|
198,336,641
|
-
|
244,268
|
-
|
2,417,868
|
-
|
||||||||||||||||||||||
Consumer loans
|
||||||||||||||||||||||||||||
Credit cards
|
1,851,145
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||
Home equity lines & loans
|
86,615,392
|
-
|
-
|
-
|
654,493
|
-
|
||||||||||||||||||||||
Indirect consumer loans
|
130,642,490
|
-
|
-
|
-
|
335,285
|
-
|
||||||||||||||||||||||
Direct consumer loans
|
19,571,312
|
-
|
-
|
-
|
19,338
|
-
|
||||||||||||||||||||||
Total
|
$
|
437,016,980
|
$
|
404,520,259
|
$
|
10,711,533
|
$
|
25,136,636
|
$
|
18,021,271
|
$
|
494,260
|
June 30, 2013
|
||||||||||||||||||||
Consumer Loans
|
||||||||||||||||||||
Residential Mortgages
|
Credit Card
|
Home Equity Lines & Loans
|
Indirect Consumer Loans
|
Other Direct Consumer Loans
|
||||||||||||||||
Performing
|
$
|
195,797,219
|
$
|
1,664,379
|
$
|
90,250,755
|
$
|
146,716,193
|
$
|
19,157,318
|
||||||||||
Non-Performing
|
2,804,184
|
15,737
|
475,671
|
280,817
|
60,876
|
|||||||||||||||
Total
|
$
|
198,601,403
|
$
|
1,680,116
|
$
|
90,726,426
|
$
|
146,997,010
|
$
|
19,218,194
|
December 31, 2012
|
||||||||||||||||||||
Consumer Loans
|
||||||||||||||||||||
Residential Mortgages
|
Credit Card
|
Home Equity Lines & Loans
|
Indirect Consumer Loans
|
Other Direct Consumer Loans
|
||||||||||||||||
Performing
|
$
|
198,575,753
|
$
|
1,847,838
|
$
|
86,698,520
|
$
|
130,642,490
|
$
|
19,571,312
|
||||||||||
Non-Performing
|
2,423,024
|
3,307
|
571,365
|
335,285
|
19,338
|
|||||||||||||||
$
|
200,998,777
|
$
|
1,851,145
|
$
|
87,269,885
|
$
|
130,977,775
|
$
|
19,590,650
|
Six months ended June 30, 2013
|
Balance at December 31, 2012
|
Income Accretion
|
All Other Adjustments
|
Balance at
June 30,
2013
|
||||||||||||
Contractually required principal and interest
|
$
|
16,896,078
|
$
|
-
|
$
|
(2,195,740
|
)
|
$
|
14,700,338
|
|||||||
Contractual cash flows not expected to be collected
(nonaccretable discount)
|
(3,655,500
|
)
|
-
|
1,716,743
|
(1,938,757
|
)
|
||||||||||
Cash flows expected to be collected
|
13,240,578
|
-
|
(478,997
|
)
|
12,761,581
|
|||||||||||
Interest component of expected cash flows (accretable yield)
|
(2,529,045
|
)
|
663,861
|
(687,113
|
)
|
(2,552,297
|
)
|
|||||||||
Fair value of loans acquired with deteriorating credit quality
|
$
|
10,711,533
|
$
|
663,861
|
$
|
(1,166,110
|
)
|
$
|
10,209,284
|
Three months ended June 30, 2013
|
Balance at
March 31,
2013
|
Income Accretion
|
All Other Adjustments
|
Balance at
June 30,
2013
|
||||||||||||
Contractually required principal and interest
|
$
|
15,255,412
|
$
|
-
|
$
|
(555,074
|
)
|
$
|
14,700,338
|
|||||||
Contractual cash flows not expected to be collected
(nonaccretable discount)
|
(2,276,866
|
)
|
-
|
338,109
|
(1,938,757
|
)
|
||||||||||
Cash flows expected to be collected
|
12,978,546
|
-
|
(216,965
|
)
|
12,761,581
|
|||||||||||
Interest component of expected cash flows (accretable yield)
|
(2,376,643
|
)
|
170,041
|
(345,695
|
)
|
(2,552,297
|
)
|
|||||||||
Fair value of loans acquired with deteriorating credit quality
|
$
|
10,601,903
|
$
|
170,041
|
$
|
(562,660
|
)
|
$
|
10,209,284
|
Fair Value Measurement at June 30, 2013 Using
|
||||||||||||||||
Financial Assets:
|
Fair Value
|
Quoted Prices
in Active Markets for Identical Assets
(Level 1)
|
Significant
Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
||||||||||||
Obligations of U.S. Government and U.S.
Government sponsored enterprises
|
$
|
144,450,370
|
$
|
31,526,000
|
$
|
112,924,370
|
$
|
-
|
||||||||
Mortgage-backed securities, residential
|
22,979,392
|
-
|
22,979,392
|
-
|
||||||||||||
Obligations of states and political subdivisions
|
37,003,563
|
-
|
37,003,563
|
-
|
||||||||||||
Collateralized mortgage obligations
|
2,188,975
|
-
|
2,188,975
|
-
|
||||||||||||
Corporate bonds and notes
|
7,515,573
|
-
|
7,515,573
|
-
|
||||||||||||
SBA loan pools
|
1,591,911
|
-
|
1,591,911
|
-
|
||||||||||||
Trust Preferred securities
|
2,515,706
|
-
|
2,001,406
|
514,300
|
||||||||||||
Corporate stocks
|
7,116,462
|
6,473,329
|
643,133
|
-
|
||||||||||||
Total available for sale securities
|
$
|
225,361,952
|
$
|
37,999,329
|
$
|
186,848,323
|
$
|
514,300
|
||||||||
Trading assets
|
$
|
388,714
|
$
|
388,714
|
$
|
-
|
$
|
-
|
Fair Value Measurement at December 31, 2012 Using
|
||||||||||||||||
Financial Assets:
|
Fair Value
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
||||||||||||
Obligations of U.S. Government and U.S.
Government sponsored enterprises
|
$
|
141,591,214
|
$
|
37,698,000
|
$
|
103,893,214
|
$
|
-
|
||||||||
Mortgage-backed securities, residential
|
31,515,249
|
-
|
31,515,249
|
-
|
||||||||||||
Obligations of states and political subdivisions
|
40,814,722
|
-
|
40,814,722
|
-
|
||||||||||||
Collateralized mortgage obligations
|
3,543,360
|
-
|
3,543,360
|
-
|
||||||||||||
Corporate bonds and notes
|
11,651,635
|
-
|
11,651,635
|
-
|
||||||||||||
SBA loan pools
|
1,724,140
|
-
|
1,724,140
|
-
|
||||||||||||
Trust Preferred securities
|
2,470,913
|
-
|
2,025,313
|
445,600
|
||||||||||||
Corporate stocks
|
6,374,530
|
5,720,533
|
653,997
|
-
|
||||||||||||
Total available for sale securities
|
$
|
239,685,763
|
$
|
43,418,533
|
$
|
195,821,630
|
$
|
445,600
|
||||||||
Trading assets
|
$
|
348,241
|
$
|
348,241
|
$
|
-
|
$
|
-
|
Fair Value Measurement for
Six-Months Ended June 30, 2013 Using Significant Unobservable Inputs (Level 3)
|
Fair Value Measurement for
Six-Months Ended June 30, 2012 Using Significant Unobservable Inputs (Level 3)
|
|||||||
Trust Preferred Securities Available for Sale
|
||||||||
Beginning balance
|
$
|
445,600
|
$
|
294,910
|
||||
Total gains/losses (realized/unrealized):
|
||||||||
Included in earnings:
|
||||||||
Income on securities
|
-
|
-
|
||||||
Impairment charge on investment securities
|
-
|
-
|
||||||
Included in other comprehensive income
|
68,700
|
48,125
|
||||||
Transfers in and/or out of Level 3
|
-
|
-
|
||||||
Ending balance June 30
|
$
|
514,300
|
$
|
343,035
|
Fair Value Measurement for Three-Months Ended June 30, 2013 Using Significant Unobservable Inputs (Level 3)
|
Fair Value Measurement for Three-Months Ended June 30, 2012 Using Significant Unobservable Inputs (Level 3)
|
|||||||
Trust Preferred Securities Available for Sale
|
||||||||
Beginning balance
|
$
|
496,825
|
$
|
346,210
|
||||
Total gains/losses (realized/unrealized):
|
||||||||
Included in earnings:
|
||||||||
Income on securities
|
-
|
-
|
||||||
Impairment charge on investment securities
|
-
|
-
|
||||||
Included in other comprehensive income
|
17,475
|
(3,175)
|
||||||
Transfers in and/or out of Level 3
|
-
|
-
|
||||||
Ending balance March 31
|
$
|
514,300
|
$
|
343,035
|
Fair Value Measurement at June 30, 2013 Using
|
||||||||||||||||
Financial Assets:
|
Fair Value
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
||||||||||||
Impaired Loans:
|
||||||||||||||||
Commercial and agricultural:
|
||||||||||||||||
Commercial &industrial
|
$
|
257,146
|
$
|
-
|
$
|
-
|
$
|
257,146
|
||||||||
Commercial mortgages:
|
-
|
-
|
||||||||||||||
Other
|
680,723
|
-
|
-
|
680,723
|
||||||||||||
Consumer loans:
|
||||||||||||||||
Home equity lines & loans
|
53,856
|
-
|
-
|
53,856
|
||||||||||||
Total Impaired Loans
|
$
|
991,725
|
$
|
-
|
$
|
-
|
$
|
991,725
|
||||||||
Other real estate owned:
|
||||||||||||||||
Commercial and agricultural:
|
||||||||||||||||
Commercial and industrial
|
$
|
101,200
|
$
|
-
|
$
|
-
|
$
|
101,200
|
||||||||
Commercial mortgages:
|
||||||||||||||||
Other
|
257,702
|
-
|
-
|
257,702
|
||||||||||||
Residential mortgages
|
161,950
|
-
|
-
|
161,950
|
||||||||||||
Consumer loans:
|
||||||||||||||||
Home equity lines & loans
|
66,959
|
-
|
-
|
66,959
|
||||||||||||
Total Other real estate owned, net
|
$
|
587,811
|
$
|
-
|
$
|
-
|
$
|
587,811
|
Fair Value Measurement at December 31, 2012 Using
|
||||||||||||||||
Financial Assets:
|
Fair Value
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
||||||||||||
Impaired Loans:
|
||||||||||||||||
Commercial and agricultural:
|
||||||||||||||||
Commercial & industrial
|
$
|
235,501
|
$
|
-
|
$
|
-
|
$
|
235,501
|
||||||||
Commercial mortgages:
|
-
|
-
|
||||||||||||||
Other
|
305,222
|
-
|
-
|
305,222
|
||||||||||||
Total Impaired Loans
|
$
|
540,723
|
$
|
-
|
$
|
-
|
$
|
540,723
|
||||||||
Other real estate owned:
|
||||||||||||||||
Commercial and agricultural:
|
||||||||||||||||
Commercial and industrial
|
$
|
101,200
|
$
|
-
|
$
|
-
|
$
|
101,200
|
||||||||
Commercial mortgages:
|
||||||||||||||||
Other
|
257,702
|
-
|
-
|
257,702
|
||||||||||||
Residential mortgages
|
201,679
|
-
|
-
|
201,679
|
||||||||||||
Consumer loans:
|
||||||||||||||||
Home equity lines & loans
|
4,000
|
-
|
-
|
4,000
|
||||||||||||
Total Other real estate owned, net
|
$
|
564,581
|
$
|
-
|
$
|
-
|
$
|
564,581
|
Description
|
Fair Value
at June 30, 2013
|
Technique
|
Unobservable Inputs
|
||||||||
Impaired loans
|
$
|
991,725
|
Third party real estate and a 100% discount of personal property
|
1
|
Management discount based on underlying collateral characteristics and market conditions
|
||||||
Other real estate owned
|
$
|
587,811
|
Third party appraisals
|
1
|
Estimated holding period
|
||||||
2
|
Estimated closing costs
|
Description
|
Fair Value at December 31, 2012
|
Technique
|
Unobservable Inputs
|
||||||||
Impaired loans
|
$
|
540,723
|
Third party real estate and a 100% discount of personal property
|
1
|
Management discount based on underlying collateral characteristics and market conditions
|
||||||
Other real estate owned
|
$
|
564,581
|
Third party appraisals
|
1
|
Estimated holding period
|
||||||
2
|
Estimated closing costs
|
Fair Value Measurements at June 30, 2013 Using
|
||||||||||||||||
Financial assets:
|
Carrying Amount
|
Quoted Prices
in Active Markets for Identical Assets (Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
Estimated Fair Value (1)
|
|||||||||||
Cash and due from financial
institutions
|
$
|
23,812
|
$
|
23,812
|
$
|
-
|
$
|
-
|
$
|
23,812
|
||||||
Interest-bearing deposits in other
financial institutions
|
945
|
945
|
-
|
-
|
945
|
|||||||||||
Trading assets
|
389
|
389
|
-
|
-
|
389
|
|||||||||||
Securities available for sale
|
225,362
|
37,999
|
186,849
|
514
|
225,362
|
|||||||||||
Securities held to maturity
|
6,570
|
-
|
7,064
|
-
|
7,064
|
|||||||||||
Federal Home Loan and Federal
Reserve Bank stock
|
4,579
|
-
|
-
|
-
|
N/A
|
|||||||||||
Net loans
|
922,719
|
-
|
-
|
952,305
|
952,305
|
|||||||||||
Loans held for sale
|
947
|
-
|
947
|
-
|
947
|
|||||||||||
Accrued interest receivable
|
3,742
|
143
|
1,234
|
2,365
|
3,742
|
|||||||||||
Financial liabilities:
|
||||||||||||||||
Deposits:
|
||||||||||||||||
Demand, savings, and insured
money market accounts
|
830,003
|
830,003
|
-
|
-
|
830,003
|
|||||||||||
Time deposits
|
224,965
|
-
|
226,038
|
-
|
226,038
|
|||||||||||
Securities sold under agreements
to repurchase
|
30,568
|
-
|
32,014
|
-
|
32,014
|
|||||||||||
Federal Home Loan Bank
advances
|
26,101
|
-
|
27,476
|
-
|
27,476
|
|||||||||||
Accrued interest payable
|
405
|
16
|
224
|
165
|
405
|
Fair Value Measurements at December 31, 2012
|
||||||||||||||||
Financial Assets:
|
Carrying Amount
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
Estimated Fair Value (1)
|
|||||||||||
Cash and due from financial institutions
|
$
|
29,239
|
$
|
29,239
|
$
|
-
|
|
-
|
$
|
29,239
|
||||||
Interest-bearing deposits in other
financial institutions
|
11,002
|
8,645
|
2,357
|
-
|
11,002
|
|||||||||||
Trading assets
|
348
|
348
|
-
|
-
|
348
|
|||||||||||
Securities available for sale
|
239,686
|
43,419
|
195,822
|
445
|
239,686
|
|||||||||||
Securities held to maturity
|
5,748
|
-
|
6,421
|
-
|
6,421
|
|||||||||||
Federal Home Loan and Federal
Reserve Bank stock
|
4,710
|
-
|
-
|
-
|
N/A
|
|||||||||||
Net loans
|
883,084
|
-
|
-
|
916,289
|
916,289
|
|||||||||||
Loans held for sale
|
1,057
|
-
|
1,057
|
-
|
1,057
|
|||||||||||
Accrued interest receivable
|
3,788
|
175
|
1,257
|
2,356
|
3,788
|
|||||||||||
Financial liabilities:
|
||||||||||||||||
Deposits:
|
||||||||||||||||
Demand, savings, and insured money market accounts
|
$
|
808,044
|
$
|
808,044
|
$
|
-
|
$
|
-
|
$
|
808,044
|
||||||
Time deposits
|
236,690
|
-
|
238,245
|
-
|
238,245
|
|||||||||||
Securities sold under agreements
to repurchase
|
32,711
|
-
|
35,260
|
-
|
35,260
|
|||||||||||
Federal Home Loan Bank
advances
|
27,225
|
-
|
29,688
|
-
|
29,688
|
|||||||||||
Accrued interest payable
|
453
|
12
|
279
|
162
|
453
|
|||||||||||
(1) Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.
|
2013
|
2012
|
|||||||
Beginning of year
|
$
|
21,824,443
|
$
|
21,983,617
|
||||
Acquired goodwill
|
-
|
|||||||
Adjustment of Acquired goodwill (1)
|
-
|
(159,174
|
)
|
|||||
Ending balance June 30,
|
$
|
21,824,443
|
$
|
21,824,443
|
||||
(1) Adjustment related to Fort Orange Financial Corp. acquisition.
|
At June 30, 2013
|
At December 31, 2012
|
|||||||||||||||
Balance Acquired
|
Accumulated Amortization
|
Balance Acquired
|
Accumulated Amortization
|
|||||||||||||
Core deposit intangibles
|
$
|
3,819,798
|
$
|
2,054,776
|
$
|
3,819,798
|
$
|
1,796,853
|
||||||||
Other customer relationship intangibles
|
6,063,423
|
3,133,704
|
6,063,423
|
2,942,548
|
||||||||||||
Total
|
$
|
9,883,221
|
$
|
5,188,480
|
$
|
9,883,221
|
$
|
4,739,401
|
Year
|
Estimated Expense
|
|||
2013
|
$
|
427,445
|
||
2014
|
777,801
|
|||
2015
|
681,176
|
|||
2016
|
607,713
|
|||
2017
|
557,893
|
|||
2018 and thereafter
|
1,642,713
|
|||
Total
|
$
|
4,694,741
|
Unrealized Gains and Losses on Securities Available for Sale
|
Defined Benefit and Other Benefit Plans
|
Total
|
||||||||||
Balance at December 31, 2012
|
$
|
8,022,790
|
$
|
(10,829,719
|
)
|
$
|
(2,806,929
|
)
|
||||
Other comprehensive income before
reclassification
|
(2,034,375
|
)
|
-
|
(2,034,375
|
)
|
|||||||
Amounts reclassified from accumulated other
comprehensive income
|
(756
|
)
|
467,013
|
466,257
|
||||||||
Net current period other comprehensive loss
|
(2,035,131
|
)
|
467,013
|
(1,568,118
|
)
|
|||||||
Balance at June 30, 2013
|
$
|
5,987,659
|
$
|
(10,362,706
|
)
|
$
|
(4,375,047
|
)
|
Unrealized Gains and Losses on Securities Available for Sale
|
Defined Benefit and Other Benefit Plans
|
Total
|
||||||||||
Balance at March 31, 2013
|
$
|
7,979,597
|
$
|
(10,602,795
|
)
|
$
|
(2,623,198
|
)
|
||||
Other comprehensive income before
Reclassification
|
(1,991,182
|
)
|
-
|
(1,991,182
|
)
|
|||||||
Amounts reclassified from accumulated other
comprehensive income
|
(756
|
)
|
240,089
|
239,333
|
||||||||
Net current period other comprehensive loss
|
(1,991,938
|
)
|
240,089
|
(1,751,849
|
)
|
|||||||
Balance at June 30, 2013
|
$
|
5,987,659
|
$
|
(10,362,706
|
)
|
$
|
(4,375,047
|
)
|
Unrealized Gains and Losses on Securities Available for Sale
|
Defined Benefit and Other Benefit Plans
|
Total
|
||||||||||
Balance at December 31, 2011
|
$
|
7,987,055
|
$
|
(9,428,433
|
)
|
$
|
(1,441,378
|
)
|
||||
Other comprehensive income before
reclassification
|
382,446
|
-
|
382,446
|
|||||||||
Amounts reclassified from accumulated other
comprehensive income
|
(184,630
|
)
|
387,536
|
202,906
|
||||||||
Net current period other comprehensive income
|
197,816
|
387,536
|
585,352
|
|||||||||
Balance at June 30, 2012
|
$
|
8,184,871
|
$
|
(9,040,897
|
)
|
$
|
(856,026
|
)
|
Unrealized Gains and Losses on Securities Available for Sale
|
Defined Benefit and Other Benefit Plans
|
Total
|
||||||||||
Balance at March 31, 2012
|
$
|
8,088,581
|
$
|
(9,234,665
|
)
|
$
|
(1,146,084
|
)
|
||||
Other comprehensive income before
reclassification
|
97,983
|
-
|
97,983
|
|||||||||
Amounts reclassified from accumulated other
comprehensive income
|
(1,693
|
)
|
193,768
|
192,075
|
||||||||
Net current period other comprehensive income
|
96,290
|
193,768
|
290,058
|
|||||||||
Balance at June 30, 2012
|
$
|
8,184,871
|
$
|
(9,040,897
|
)
|
$
|
(856,026
|
)
|
Details about Accumulated Other
Comprehensive Income Components
|
Six Months Ended June 30,
|
Affected Line Item
in the Statement Where
Net Income is Presented
|
|||||||||||
2013
|
2012
|
||||||||||||
Unrealized gains and losses on securities
available for sale:
|
|||||||||||||
Realized gains on securities available for sale
|
$
|
1,228
|
299,919
|
Net gains on securities transactions
|
|||||||||
Income tax expense
|
472
|
115,289
|
Income tax expense
|
||||||||||
Net of tax
|
756
|
184,630
|
|||||||||||
Amortization of defined pension plan
and other benefit plan items:
|
|||||||||||||
Prior service costs (a)
|
41,572
|
41,572
|
Pension and other employee benefits
|
||||||||||
Actuarial losses (a)
|
(801,086
|
)
|
(671,096
|
)
|
Pension and other employee benefits
|
||||||||
Income tax benefit
|
292,501
|
241,988
|
Income tax expense
|
||||||||||
Net of tax
|
(467,013
|
)
|
(387,536
|
)
|
|||||||||
Total reclassification for the period, net of tax
|
$
|
$
|
(466,257
|
)
|
$
|
(202,906
|
)
|
Details about Accumulated Other Comprehensive Income Components
|
Three Months Ended June 30,
|
Affected Line Item
in the Statement Where
Net Income is Presented
|
|||||||||||
2013
|
2012
|
||||||||||||
Unrealized gains and losses on securities
available for sale:
|
|||||||||||||
Realized gains on securities available for sale
|
$
|
1,228
|
2,750
|
Net gains on securities transactions
|
|||||||||
Income tax expense
|
472
|
1,057
|
Income tax expense
|
||||||||||
Net of tax
|
756
|
1,693
|
|||||||||||
Amortization of defined pension plan
and other benefit plan items:
|
|||||||||||||
Prior service costs (a)
|
20,786
|
20,786
|
Pension and other employee benefits
|
||||||||||
Actuarial losses (a)
|
(400,984
|
)
|
(335,548
|
)
|
Pension and other employee benefits
|
||||||||
Income tax benefit
|
140,109
|
120,994
|
Income tax expense
|
||||||||||
Net of tax
|
(240,089
|
)
|
(193,768
|
)
|
|||||||||
Total reclassification for the period, net of tax
|
$
|
$
|
(239,333
|
)
|
$
|
(192,075
|
)
|
NOTE 10
|
COMPONENTS OF QUARTERLY AND YEAR TO DATE NET PERIODIC BENEFIT COSTS
|
Six Months Ended
|
Three Months Ended
|
||||||||||||
June 30,
|
June 30,
|
June 30,
|
June 30,
|
||||||||||
2013
|
2012
|
2013
|
2012
|
||||||||||
Qualified Pension
|
|||||||||||||
Service cost, benefits earned during the period
|
$
|
698,808
|
$
|
646,702
|
$
|
349,404
|
$
|
323,351
|
|||||
Interest cost on projected benefit obligation
|
817,242
|
812,220
|
408,621
|
406,110
|
|||||||||
Expected return on plan assets
|
(1,454,344
|
)
|
(1,326,986
|
)
|
(727,172
|
)
|
(663,493
|
)
|
|||||
Amortization of unrecognized transition obligation
|
-
|
-
|
-
|
-
|
|||||||||
Amortization of unrecognized prior service cost
|
6,928
|
6,928
|
3,464
|
3,464
|
|||||||||
Amortization of unrecognized net loss
|
781,366
|
661,136
|
390,683
|
330,568
|
|||||||||
Net periodic pension expense
|
$
|
850,000
|
$
|
800,000
|
$
|
425,000
|
$
|
400,000
|
|||||
Supplemental Pension
|
|||||||||||||
Service cost, benefits earned during the period
|
$
|
20,008
|
$
|
17,384
|
$
|
10,390
|
$
|
8,692
|
|||||
Interest cost on projected benefit obligation
|
23,950
|
25,546
|
12,436
|
12,773
|
|||||||||
Expected return on plan assets
|
-
|
-
|
-
|
-
|
|||||||||
Amortization of unrecognized prior service cost
|
-
|
-
|
-
|
-
|
|||||||||
Amortization of unrecognized net loss
|
17,150
|
9,960
|
8,906
|
4,980
|
|||||||||
Net periodic supplemental pension expense
|
$
|
61,108
|
$
|
52,890
|
$
|
31,732
|
$
|
26,445
|
|||||
Postretirement, Medical and Life
|
|||||||||||||
Service cost, benefits earned during the period
|
$
|
24,061
|
$
|
17,500
|
$
|
13,059
|
$
|
8,750
|
|||||
Interest cost on projected benefit obligation
|
31,869
|
36,000
|
17,296
|
18,000
|
|||||||||
Expected return on plan assets
|
-
|
-
|
-
|
-
|
|||||||||
Amortization of unrecognized prior service cost
|
(48,500
|
)
|
(48,500
|
)
|
(24,250
|
)
|
(24,250
|
)
|
|||||
Amortization of unrecognized net gain
|
2,570
|
-
|
1,395
|
-
|
|||||||||
Net periodic postretirement, medical and life expense
|
$
|
10,000
|
$
|
5,000
|
$
|
7,500
|
$
|
2,500
|
Three Months Ended June 30, 2013
|
Six Months Ended June 30, 2013
|
||||||||||||||||||||||||||||
Core Banking
|
Wealth Management Group Services
|
Holding Company And Other
|
Consolidated Totals
|
Core Banking
|
Wealth Management Group Services
|
Holding Company And Other
|
Consolidated Totals
|
||||||||||||||||||||||
Net interest income
|
$
|
11,323,855
|
$
|
-
|
$
|
3,917
|
$
|
11,327,772
|
$
|
23,039,183
|
$
|
-
|
$
|
5,556
|
$
|
23,044,739
|
|||||||||||||
Provision for loan losses
|
450,474
|
-
|
-
|
450,474
|
881,484
|
-
|
-
|
881,484
|
|||||||||||||||||||||
Net interest income after provision for loan losses
|
10,873,381
|
-
|
3,917
|
10,877,298
|
22,157,699
|
-
|
5,556
|
22,163,255
|
|||||||||||||||||||||
Other operating income
|
2,318,089
|
1,884,949
|
272,100
|
4,475,138
|
4,312,660
|
3,635,127
|
548,928
|
8,496,715
|
|||||||||||||||||||||
Other operating expenses
|
9,924,092
|
1,276,345
|
191,067
|
11,391,504
|
19,862,144
|
2,802,901
|
451,216
|
23,116,261
|
|||||||||||||||||||||
Income before income tax expense
|
3,267,378
|
608,604
|
84,950
|
3,960,932
|
6,608,215
|
832,226
|
103,268
|
7,543,709
|
|||||||||||||||||||||
Income tax expense
|
1,057,703
|
233,947
|
14,675
|
1,306,325
|
2,135,217
|
319,908
|
22,209
|
2,477,334
|
|||||||||||||||||||||
Segment net income
|
$
|
2,209,675
|
$
|
374,657
|
$
|
70,275
|
$
|
2,654,607
|
$
|
4,472,998
|
$
|
512,318
|
$
|
81,059
|
$
|
5,066,375
|
|||||||||||||
Segment assets
|
$
|
1,249,985,668
|
$
|
5,044,818
|
$
|
2,130,001
|
$
|
1,257,160,487
|
Three Months Ended June 30, 2012
|
Six Months Ended June 30, 2012
|
||||||||||||||||||||||||||||
Core Banking
|
Wealth Management Group Services
|
Holding Company And Other
|
Consolidated Totals
|
Core Banking
|
Wealth Management Group Services
|
Holding Company And Other
|
Consolidated Totals
|
||||||||||||||||||||||
Net interest income
|
$
|
11,378,763
|
$
|
-
|
$
|
1,418
|
$
|
11,380,181
|
$
|
23,406,293
|
$
|
-
|
$
|
5,094
|
$
|
23,411,387
|
|||||||||||||
Provision for loan losses
|
51,593
|
-
|
-
|
51,593
|
528,897
|
-
|
-
|
528,897
|
|||||||||||||||||||||
Net interest income after provision for loan losses
|
11,327,170
|
-
|
1,418
|
11,328,588
|
22,877,396
|
-
|
5,094
|
22,882,490
|
|||||||||||||||||||||
Other operating income
|
2,121,404
|
1,726,812
|
263,939
|
4,112,155
|
5,191,434
|
3,502,388
|
308,730
|
9,002,552
|
|||||||||||||||||||||
Other operating expenses
|
10,255,351
|
1,407,501
|
218,569
|
11,881,421
|
19,568,445
|
2,842,537
|
401,659
|
22,812,641
|
|||||||||||||||||||||
Income or (loss) before income tax expense
|
3,193,223
|
319,311
|
46,788
|
3,559,322
|
8,500,385
|
659,851
|
(87,835
|
)
|
9,072,401
|
||||||||||||||||||||
Income tax expense (benefit)
|
991,882
|
122,743
|
657
|
1,115,282
|
2,829,753
|
253,647
|
(69,572
|
)
|
3,013,828
|
||||||||||||||||||||
Segment net income (loss)
|
$
|
2,201,341
|
$
|
196,568
|
$
|
46,131
|
$
|
2,444,040
|
$
|
5,670,632
|
$
|
406,204
|
$
|
(18,263
|
)
|
$
|
6,058,573
|
||||||||||||
Segment assets
|
$
|
1,259,535,663
|
$
|
5,355,782
|
$
|
2,567,652
|
$
|
1,267,459,097
|
Shares
|
Weighted–Average Grant Date Fair Value
|
|||
Nonvested at December 31, 2012
|
20,009
|
|
$
|
23.84
|
Granted
|
-
|
-
|
||
Vested
|
1,794
|
22.33
|
||
Forfeited or Cancelled
|
-
|
-
|
||
Nonvested at June 30, 2013
|
18,215
|
$
|
23.98
|
CDO: Collateralized Debt Obligation
|
OTTI: Other-than-temporary Impairment
|
FASB: Financial Accounting Standards Board
|
PCI: Purchased Credit Impaired
|
FDIC: Federal Deposit Insurance Corporation
|
SEC: Securities and Exchange Commission
|
FHLB: Federal Home Loan Bank
|
TDR: Troubled Debt Restructurings
|
GAAP: U.S. generally accepted accounting principles
|
June 30, 2013
|
December 31, 2012
|
|||||||||||||||||||||||
Securities Available for Sale
|
Amortized Cost
|
Estimated Fair Value
|
Unrealized Gains (Losses)
|
Amortized Cost
|
Estimated Fair Value
|
Unrealized Gains (Losses)
|
||||||||||||||||||
Obligations of U.S. Government and
U.S Government sponsored enterprises
|
$
|
143,415
|
$
|
144,450
|
$
|
1,035
|
$
|
138,041
|
$
|
141,591
|
$
|
3,550
|
||||||||||||
Mortgage-backed securities, residential
|
21,870
|
22,979
|
1,109
|
29,592
|
31,515
|
1,923
|
||||||||||||||||||
Collateralized mortgage obligations
|
2,166
|
2,189
|
23
|
3,495
|
3,543
|
48
|
||||||||||||||||||
Obligations of states and political
subdivisions
|
36,005
|
37,004
|
999
|
39,175
|
40,815
|
1,640
|
||||||||||||||||||
Corporate bonds and notes
|
7,401
|
7,516
|
115
|
11,412
|
11,652
|
240
|
||||||||||||||||||
SBA loan pools
|
1,555
|
1,592
|
37
|
1,683
|
1,724
|
41
|
||||||||||||||||||
Trust preferred securities
|
2,523
|
2,516
|
(7
|
)
|
2,519
|
2,471
|
(48
|
)
|
||||||||||||||||
Corporate stocks
|
700
|
7,116
|
6,416
|
736
|
6,375
|
5,639
|
||||||||||||||||||
Totals
|
$
|
215,635
|
$
|
225,362
|
$
|
9,727
|
$
|
226,653
|
$
|
239,686
|
$
|
13,033
|
June 30, 2013
|
December 31, 2012
|
|||||||
Commercial and agricultural
|
$
|
135,329
|
$
|
133,851
|
||||
Commercial mortgages
|
342,688
|
320,198
|
||||||
Residential mortgages
|
198,072
|
200,475
|
||||||
Consumer loans
|
257,951
|
238,993
|
||||||
Total loans, net
|
$
|
934,040
|
$
|
893,517
|
June 30, 2013
|
December 31, 2012
|
||||||||
Non-accrual loans
|
$
|
6,147
|
$
|
5,667
|
|||||
Non-accrual troubled debt restructurings
|
1,321
|
365
|
|||||||
Total non-performing loans
|
$
|
7,468
|
$
|
6,032
|
|||||
Other real estate owned
|
588
|
565
|
|||||||
Total non-performing assets
|
$
|
8,056
|
$
|
6,597
|
Ratio of non-performing loans to total loans
|
0.80
|
%
|
0.68
|
%
|
||||
Ratio of non-performing assets to total assets
|
0.64
|
%
|
0.53
|
%
|
||||
Ratio of allowance for loan losses to non-performing loans
|
151.58
|
%
|
172.96
|
%
|
||||
Accruing loans past due 90 days or more
|
$
|
2,200
|
$
|
4,484
|
||||
Accruing troubled debt restructurings
|
$
|
6,245
|
$
|
5,364
|
Six Months Ended
|
|||||||
June 30, 2013
|
June 30, 2012
|
||||||
Balance at beginning of period
|
$
|
10,433
|
$
|
9,659
|
|||
Reclassification of acquired loan discount
|
-
|
124
|
|||||
Charge-offs:
|
|||||||
Commercial and agricultural
|
18
|
6
|
|||||
Commercial mortgages
|
-
|
57
|
|||||
Residential mortgages
|
54
|
73
|
|||||
Consumer loans
|
398
|
273
|
|||||
Total charge-offs
|
470
|
409
|
|||||
Recoveries:
|
|||||||
Commercial and agricultural
|
294
|
352
|
|||||
Commercial mortgages
|
19
|
30
|
|||||
Residential mortgages
|
39
|
-
|
|||||
Consumer loans
|
124
|
108
|
|||||
Total recoveries
|
476
|
490
|
|||||
Net charge-offs (recoveries)
|
(6
|
)
|
(81
|
)
|
|||
Provision charged to operations
|
881
|
529
|
|||||
Balance at end of period
|
$
|
11,320
|
$
|
10,393
|
|||
Ratio of net charge-offs (recoveries) to
average loans outstanding
|
-
|
%
|
(0.01)
|
%
|
|||
Ratio of allowance for loan losses to
total loans outstanding
|
1.21
|
%
|
1.21
|
%
|
June 30, 2013
|
December 31, 2012
|
Dollar Change
|
Percent Change
|
|||||||||||||
Non-interest-bearing demand deposits
|
$
|
297,523
|
$
|
300,610
|
$
|
(3,087
|
)
|
(1.03
|
)%
|
|||||||
Interest-bearing demand deposits
|
89,027
|
90,730
|
(1,703
|
)
|
(1.88
|
)%
|
||||||||||
Insured money market accounts
|
261,060
|
243,115
|
17,945
|
7.38
|
%
|
|||||||||||
Savings deposits
|
182,393
|
173,589
|
8,804
|
5.07
|
%
|
|||||||||||
Time deposits
|
224,965
|
236,690
|
(11,725
|
)
|
(4.95
|
)%
|
||||||||||
Total
|
$
|
1,054,968
|
$
|
1,044,734
|
$
|
10,234
|
0.98
|
%
|
(in thousands of dollars)
|
Six Months Ended June 30, 2013
|
Six Months Ended June 30, 2012
|
Three Months Ended June 30, 2013
|
Three Months Ended June 30, 2012
|
||||||||||||||||||||||||||||||||||||||||||||
Assets
|
Average Balance
|
Interest
|
Yield/
Rate
|
Average Balance
|
Interest
|
Yield/
Rate
|
Average Balance
|
Interest
|
Yield/
Rate
|
Average Balance
|
Interest
|
Yield/
Rate
|
||||||||||||||||||||||||||||||||||||
Earning assets:
|
||||||||||||||||||||||||||||||||||||||||||||||||
Loans
|
$
|
919,358
|
$
|
22,361
|
4.90
|
%
|
$
|
809,894
|
$
|
22,705
|
5.64
|
%
|
$
|
929,439
|
$
|
11,056
|
4.77
|
%
|
$
|
823,754
|
$
|
11,034
|
5.39
|
%
|
||||||||||||||||||||||||
Taxable securities
|
191,836
|
2,117
|
2.23
|
%
|
228,926
|
2,863
|
2.52
|
%
|
185,728
|
986
|
2.13
|
%
|
222,104
|
1,362
|
2.47
|
%
|
||||||||||||||||||||||||||||||||
Tax-exempt securities
|
44,947
|
586
|
2.63
|
%
|
51,306
|
676
|
2.65
|
%
|
43,205
|
281
|
2.61
|
%
|
50,450
|
336
|
2.68
|
%
|
||||||||||||||||||||||||||||||||
Interest-bearing deposits
|
14,105
|
18
|
0.25
|
%
|
48,934
|
61
|
0.25
|
%
|
15,490
|
10
|
0.25
|
%
|
53,765
|
33
|
0.25
|
%
|
||||||||||||||||||||||||||||||||
Total earning assets
|
1,170,246
|
25,082
|
4.32
|
%
|
1,139,060
|
26,305
|
4.64
|
%
|
1,173,862
|
12,333
|
4.21
|
%
|
1,150,073
|
12,765
|
4.46
|
%
|
||||||||||||||||||||||||||||||||
Non-earning assets:
|
||||||||||||||||||||||||||||||||||||||||||||||||
Cash and due from banks
|
23,178
|
23,533
|
22,042
|
23,163
|
||||||||||||||||||||||||||||||||||||||||||||
Premises and equipment, net
|
25,213
|
24,851
|
24,934
|
24,976
|
||||||||||||||||||||||||||||||||||||||||||||
Other assets
|
47,151
|
52,998
|
46,803
|
51,100
|
||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses
|
(10,734
|
)
|
(10,124
|
)
|
(10,906
|
)
|
(10,394
|
)
|
||||||||||||||||||||||||||||||||||||||||
AFS valuation allowance
|
12,880
|
13,639
|
12,737
|
13,543
|
||||||||||||||||||||||||||||||||||||||||||||
Total
|
$
|
1,267,934
|
$
|
1,243,957
|
$
|
1,269,472
|
$
|
1,252,461
|
||||||||||||||||||||||||||||||||||||||||
Liabilities and Shareholders' Equity
|
||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing demand
deposits
|
$
|
98,452
|
$
|
49
|
0.10
|
%
|
$
|
85,630
|
$
|
45
|
0.11
|
%
|
$
|
93,210
|
$
|
23
|
0.10
|
%
|
$
|
90,269
|
$
|
24
|
0.11
|
%
|
||||||||||||||||||||||||
Savings and insured money
market deposits
|
441,152
|
407
|
0.19
|
%
|
405,903
|
416
|
0.21
|
%
|
449,434
|
208
|
0.19
|
%
|
410,518
|
195
|
0.21
|
%
|
||||||||||||||||||||||||||||||||
Time deposits
|
230,930
|
763
|
0.67
|
%
|
265,959
|
1,266
|
0.96
|
%
|
228,324
|
364
|
0.64
|
%
|
262,630
|
595
|
0.91
|
%
|
||||||||||||||||||||||||||||||||
FHLB, other advances and
securities sold under
agreements to repurchase
|
59,047
|
818
|
2.79
|
%
|
78,446
|
1,167
|
2.99
|
%
|
58,892
|
410
|
2.80
|
%
|
76,050
|
571
|
3.02
|
%
|
||||||||||||||||||||||||||||||||
Total interest-bearing
liabilities
|
829,581
|
2,037
|
0.49
|
%
|
835,938
|
2,894
|
0.70
|
%
|
829,860
|
1,005
|
0.49
|
%
|
839,467
|
1,385
|
0.66
|
%
|
||||||||||||||||||||||||||||||||
Non-interest-bearing
liabilities:
|
||||||||||||||||||||||||||||||||||||||||||||||||
Demand deposits
|
294,302
|
270,314
|
294,680
|
274,159
|
||||||||||||||||||||||||||||||||||||||||||||
Other liabilities
|
10,459
|
8,481
|
10,540
|
8,581
|
||||||||||||||||||||||||||||||||||||||||||||
Total liabilities
|
1,134,342
|
1,114,733
|
1,135,080
|
1,122,207
|
||||||||||||||||||||||||||||||||||||||||||||
Shareholders' equity
|
133,592
|
129,224
|
134,392
|
130,254
|
||||||||||||||||||||||||||||||||||||||||||||
Total
|
$
|
1,267,934
|
$
|
1,243,957
|
$
|
1,269,472
|
$
|
1,252,461
|
||||||||||||||||||||||||||||||||||||||||
Net interest income
|
$
|
23,045
|
$
|
23,411
|
$
|
11,328
|
$
|
11,380
|
||||||||||||||||||||||||||||||||||||||||
Net interest rate spread(1)
|
3.83
|
%
|
3.94
|
%
|
3.72
|
%
|
3.80
|
%
|
||||||||||||||||||||||||||||||||||||||||
Net interest margin(2)
|
3.97
|
%
|
4.13
|
%
|
3.87
|
%
|
3.98
|
%
|
(in thousands of dollars)
|
Six Months Ended June 30, 2013 vs. 2012
|
Three Months Ended June 30, 2013 vs. 2012
|
||||||||||||||||||||||
Increase (Decrease) Due to
|
Increase (Decrease) Due to
|
|||||||||||||||||||||||
Volume
|
Rate
|
Net
|
Volume
|
Rate
|
Net
|
|||||||||||||||||||
Interest and dividends earned on:
|
||||||||||||||||||||||||
Loans
|
$
|
2,825
|
$
|
(3,170
|
)
|
$
|
(345
|
)
|
$
|
1,350
|
$
|
(1,327
|
)
|
$
|
23
|
|||||||||
Taxable securities
|
(435
|
)
|
(310
|
)
|
(745
|
)
|
(205
|
)
|
(171
|
)
|
(376
|
)
|
||||||||||||
Tax-exempt securities
|
(85
|
)
|
(5
|
)
|
(90
|
)
|
(47
|
)
|
(8
|
)
|
(55
|
)
|
||||||||||||
Interest-bearing deposits
|
(44
|
)
|
1
|
(43
|
)
|
(24
|
)
|
-
|
(24
|
)
|
||||||||||||||
Total earning assets
|
$
|
2,261
|
$
|
(3,484
|
)
|
$
|
(1,223
|
)
|
$
|
1,074
|
$
|
(1,506
|
)
|
$
|
(432
|
)
|
||||||||
Interest paid on:
|
||||||||||||||||||||||||
Demand deposits
|
$
|
6
|
$
|
(2
|
)
|
$
|
4
|
$
|
1
|
$
|
(2
|
)
|
$
|
(1
|
)
|
|||||||||
Savings and insured money
market deposits
|
34
|
(43
|
)
|
(9
|
)
|
18
|
(5
|
)
|
13
|
|||||||||||||||
Time deposits
|
(152
|
)
|
(351
|
)
|
(503
|
)
|
(70
|
)
|
(161
|
)
|
(231
|
)
|
||||||||||||
FHLB, other advances and
securities sold under
agreements to repurchase
|
(276
|
)
|
(73
|
)
|
(349
|
)
|
(121
|
)
|
(40
|
)
|
(161
|
)
|
||||||||||||
Total interest-bearing liabilities
|
$
|
(388
|
)
|
$
|
(469
|
)
|
$
|
(857
|
)
|
$
|
(172
|
)
|
$
|
(208
|
)
|
$
|
(380
|
)
|
||||||
Net interest income
|
$
|
2,649
|
$
|
(3,015
|
)
|
$
|
(366
|
)
|
$
|
1,246
|
$
|
(1,298
|
)
|
$
|
(52
|
)
|
||||||||
PART II.
|
OTHER INFORMATION
|
||||||||||||||||
ITEM 1.
|
LEGAL PROCEEDINGS
|
||||||||||||||||
For information related to this item, please see Note 9 to the Corporation’s financial statements included herein.
|
|||||||||||||||||
ITEM 1A.
|
RISK FACTORS
|
||||||||||||||||
There have been no material changes in the risk factors set forth in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2012, filed with the Securities and Exchange Commission on March 15, 2013.
|
|||||||||||||||||
ITEM 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
||||||||||||||||
(c)
|
Issuer Purchases of Equity Securities (1)
|
||||||||||||||||
Period
|
Total number of shares purchased
|
Average price paid per share
|
Total number of shares purchased as part of publicly announced plans or programs
|
Maximum number of shares that may yet be purchased under the plans or programs
|
|||||||||||||
4/1/13-4/30/13
|
-
|
$
|
-
|
-
|
121,906
|
||||||||||||
5/1/13-5/31/13
|
-
|
$
|
-
|
-
|
121,906
|
||||||||||||
6/1/13-6/30/13
|
-
|
$
|
-
|
-
|
121,906
|
||||||||||||
Quarter ended 6/30/13
|
-
|
$
|
-
|
-
|
121,906
|
||||||||||||
(1) On December 19, 2012, the Corporation’s Board of Directors approved a stock repurchase plan authorizing the purchase of up to 125,000 shares of the Corporation's outstanding common stock. This plan replaces the plan approved on November 2009, which expired in November 2012. Purchases may be made from time to time on the open-market or in private negotiated transactions and will be at the discretion of management. For the period ending June 30, 2013, a total of 3,094 shares had been purchased under this plan.
|
|||||||||||||||||
ITEM 6.
|
EXHIBITS
|
The following exhibits are either filed with this Form 10-Q or are incorporated herein by reference. The Corporation’s Securities Exchange Act File number is 000-13888.
|
|
3.1 Certificate of Incorporation of Chemung Financial Corporation dated December 20, 1984. (Filed as Exhibit 3.1 to Registrant’s Form 10-K filed with the SEC on March 13, 2008 and incorporated herein by reference).
|
|
3.2 Certificate of Amendment to the Certificate of Incorporation of Chemung Financial Corporation, dated March 28, 1988. (Filed as Exhibit 3.2 to Registrant's Form 10-K filed with the SEC on March 13, 2008 and incorporated herein by reference).
|
|
3.3 Certificate of Amendment to the Certificate of Incorporation of Chemung Financial Corporation, dated May 13, 1998. (Filed as Exhibit 3.4 of the Registrant's Form 10-K for the year ended December 31, 2005 and incorporated herein by reference).
|
|
3.4 Amended and Restated Bylaws of the Registrant, as amended to May 16, 2012. (Filed as Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed with the SEC on May 18, 2012 and incorporated herein by reference).
|
|
31.1 Certification of President and Chief Executive Officer of the Registrant pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.*
|
|
31.2 Certification of Chief Financial Officer and Treasurer of the Registrant pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.*
|
|
32.1 Certification of President and Chief Executive Officer of the Registrant pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934 and 18 U.S.C. §1350.*
|
|
32.2 Certification of Chief Financial Officer and Treasurer of the Registrant pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934 and 18 U.S.C. §1350.*
|
|
101.INS Instance Document*
|
|
101.SCH XBRL Taxonomy Schema*
|
|
101.CAL XBRL Taxonomy Calculation Linkbase*
|
|
101.DEF XBRL Taxonomy Definition Linkbase*
|
|
101.LAB XBRL Taxonomy Label Linkbase*
|
|
101.PRE XBRL Taxonomy Presentation Linkbase*
|
|
*
|
Filed herewith.
|
DATED: August 8, 2013
|
By: /s/ Ronald M. Bentley
|
Ronald M. Bentley, President and Chief Executive Officer
(Principal Executive Officer)
|
DATED: August 8, 2013
|
By: /s/ Mark A. Severson
|
Mark A. Severson, Chief Financial Officer and Treasurer
(Principal Financial and Accounting Officer)
|
3.1 Certificate of Incorporation of Chemung Financial Corporation dated December 20, 1984. (Filed as Exhibit 3.1 to Registrant’s Form 10-K filed with the SEC on March 13, 2008 and incorporated herein by reference).
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3.2 Certificate of Amendment to the Certificate of Incorporation of Chemung Financial Corporation, dated March 28, 1988. (Filed as Exhibit 3.2 to Registrant's Form 10-K filed with the SEC on March 13, 2008 and incorporated herein by reference).
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3.3 Certificate of Amendment to the Certificate of Incorporation of Chemung Financial Corporation, dated May 13, 1998. (Filed as Exhibit 3.4 of the Registrant's Form 10-K for the year ended December 31, 2005 and incorporated herein by reference).
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3.4 Amended and Restated Bylaws of the Registrant, as amended to May 16, 2012. (Filed as Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed with the SEC on May 18, 2012 and incorporated herein by reference).
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31.1 Certification of President and Chief Executive Officer of the Registrant pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.*
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31.2 Certification of Chief Financial Officer and Treasurer of the Registrant pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.*
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32.1 Certification of President and Chief Executive Officer of the Registrant pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934 and 18 U.S.C. §1350.*
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32.2 Certification of Chief Financial Officer and Treasurer of the Registrant pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934 and 18 U.S.C. §1350.*
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101.INS Instance Document*
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101.SCH XBRL Taxonomy Schema*
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101.CAL XBRL Taxonomy Calculation Linkbase*
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101.DEF XBRL Taxonomy Definition Linkbase*
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101.LAB XBRL Taxonomy Label Linkbase*
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101.PRE XBRL Taxonomy Presentation Linkbase*
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COMMITMENTS AND CONTINGENCIES
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6 Months Ended |
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Jun. 30, 2013
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COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 9 COMMITMENTS AND CONTINGENCIES The Corporation is a party to certain financial instruments with off-balance sheet risk such as commitments under standby letters of credit, unused portions of lines of credit, overdraft protection and commitments to fund new loans. In accordance with U.S. GAAP, these financial instruments are not recorded in the financial statements. The Corporation's policy is to record such instruments when funded. These transactions involve, to varying degrees, elements of credit, interest rate and liquidity risk. Such transactions are generally used by the Corporation to manage clients' requests for funding and other client needs. The Bank is a party in two legal proceedings involving its Wealth Management Group Services. In both proceedings, the Bank, as trustee pursuant to written trust instruments, has sought judicial settlement of trust accounts in the New York Surrogate’s Court for Chemung County. Individuals who are beneficiaries under the trusts have filed formal objections and/or demand letters with the Court in both of these accounting proceedings, objecting to the final settlement of the trust accounts. The objectants primarily assert that the Bank acted imprudently by failing to diversify the trusts’ investments and they claim $9.6 million and $24.1 million, consisting of damages and disallowed trustee’s commissions, plus unspecified legal fees in the respective proceedings. These proceedings are pending in the Surrogate’s Court and are now in the discovery phase. While the outcome of litigation is not predictable the Bank believes that the claims are without merit and is vigorously defending them. As of June 30, 2013, no amount has been accrued for potential losses related to these proceedings as a potential loss is not considered probable or reasonably estimable in the opinion of management. In the normal course of business, there are various outstanding claims and legal proceedings involving the Corporation or its subsidiaries. Except for the above matter, we believe that we are not a party to any pending legal, arbitration, or regulatory proceedings that could have a material adverse impact on our financial results or liquidity. |
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (USD $)
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3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2013
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Jun. 30, 2012
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Jun. 30, 2013
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Jun. 30, 2012
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Interest and dividend income: | ||||
Loans, including fees | $ 11,056,416 | $ 11,033,636 | $ 22,360,424 | $ 22,704,549 |
Taxable securities | 986,001 | 1,362,315 | 2,117,054 | 2,863,084 |
Tax exempt securities | 281,117 | 335,626 | 586,259 | 676,247 |
Interest-bearing deposits | 9,708 | 33,413 | 17,691 | 60,777 |
Total interest and dividend income | 12,333,242 | 12,764,990 | 25,081,428 | 26,304,657 |
Interest expense: | ||||
Deposits | 594,529 | 814,345 | 1,218,610 | 1,726,994 |
Securities sold under agreements to repurchase | 211,452 | 249,528 | 430,801 | 532,300 |
Borrowed funds | 199,489 | 320,936 | 387,278 | 633,976 |
Total interest expense | 1,005,470 | 1,384,809 | 2,036,689 | 2,893,270 |
Net interest income | 11,327,772 | 11,380,181 | 23,044,739 | 23,411,387 |
Provision for loan losses | 450,474 | 51,593 | 881,484 | 528,897 |
Net interest income after provision for loan losses | 10,877,298 | 11,328,588 | 22,163,255 | 22,882,490 |
Other operating income: | ||||
Wealth management group fee income | 1,884,949 | 1,726,812 | 3,635,127 | 3,502,388 |
Service charges on deposit accounts | 1,186,272 | 1,040,285 | 2,155,044 | 2,032,165 |
Net gain on securities transactions | 1,228 | 2,750 | 1,228 | 299,919 |
Net gain on sales of loans held for sale | 179,253 | 79,041 | 291,169 | 144,380 |
Casualty gains | 0 | 21,578 | 0 | 780,435 |
Net gains (losses) on sales of other real estate owned | 15,997 | 1,958 | 15,997 | (4,502) |
Income from bank owned life insurance | 21,039 | 21,744 | 41,686 | 43,269 |
Other | 1,186,400 | 1,217,987 | 2,356,464 | 2,204,498 |
Total other operating income | 4,475,138 | 4,112,155 | 8,496,715 | 9,002,552 |
Other operating expenses: | ||||
Salaries and wages | 4,598,762 | 4,556,051 | 9,416,991 | 9,048,726 |
Pension and other employee benefits | 1,364,523 | 1,466,537 | 2,788,999 | 2,756,477 |
Net occupancy expenses | 1,339,411 | 1,285,131 | 2,700,996 | 2,580,009 |
Furniture and equipment expenses | 567,027 | 577,482 | 1,085,527 | 1,095,848 |
Data processing expense | 1,127,804 | 1,230,296 | 2,240,737 | 2,309,227 |
Professional services | 196,444 | 366,021 | 520,468 | 516,234 |
Amortization of intangible assets | 214,478 | 264,050 | 449,079 | 548,190 |
Marketing and advertising expense | 197,280 | 355,826 | 484,857 | 645,064 |
Other real estate owned expenses | 26,696 | 88,420 | 62,368 | 131,899 |
FDIC insurance | 202,511 | 183,412 | 419,371 | 410,043 |
Loan expense | 192,017 | 144,898 | 335,118 | 325,045 |
Other | 1,364,551 | 1,363,297 | 2,611,750 | 2,445,879 |
Total other operating expenses | 11,391,504 | 11,881,421 | 23,116,261 | 22,812,641 |
Income before income tax expense | 3,960,932 | 3,559,322 | 7,543,709 | 9,072,401 |
Income tax expense | 1,306,325 | 1,115,282 | 2,477,334 | 3,013,828 |
Net income | $ 2,654,607 | $ 2,444,040 | $ 5,066,375 | $ 6,058,573 |
Weighted average shares outstanding (in shares) | 4,658,400 | 4,636,395 | 4,657,131 | 4,639,204 |
Basic and diluted earnings per share (in dollars per share) | $ 0.57 | $ 0.53 | $ 1.09 | $ 1.31 |
EARNING PER COMMON SHARE
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6 Months Ended |
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Jun. 30, 2013
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EARNING PER COMMON SHARE [Abstract] | |
EARNING PER COMMON SHARE | NOTE 2 EARNING PER COMMON SHARE Basic earnings per share is net income divided by the weighted average number of common shares outstanding during the period. Issuable shares, including those related to directors’ restricted stock units and directors’ stock compensation, are considered outstanding and are included in the computation of basic earnings per share. All outstanding unvested share based payment awards that contain rights to nonforfeitable dividends are considered participating securities for this calculation. Restricted stock awards are grants of participating securities. The impact of the participating securities on earnings per share is not material. Earnings per share information is adjusted to present comparative results for stock splits and stock dividends that occur. Earnings per share were computed by dividing net income by 4,657,131 and 4,639,204 weighted average shares outstanding for the six-month periods ended June 30, 2013 and 2012, and 4,658,400 and 4,636,395 weighted average shares outstanding for the three-month periods ended June 30, 2013 and 2012, respectively. There were no dilutive common stock equivalents during the three or six-month periods ended June 30, 2013 or 2012. |
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)
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Jun. 30, 2013
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LOANS AND ALLOWANCE FOR LOAN LOSSES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Composition of the loan portfolio by type | The composition of the loan portfolio, net of deferred origination fees and cost, and unearned income is summarized as follows:
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Allowance for loan losses by portfolio segment | The following tables present the activity in the allowance for loan losses by portfolio segment for the three and six-month periods ending June 30, 2013 and 2012:
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Allowance for loan losses and the recorded investment in loans based on impairment method | The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of June 30, 2013 and December 31, 2012:
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Summary of impaired financing receivables | The following tables present loans individually evaluated for impairment recognized by class of loans as of June 30, 2013 and December 31, 2012, the average recorded investment and interest income recognized by class of loans as of the three and six-month periods ending June 30, 2013 and 2012:
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Recorded investment in past due and non-accrual status by class of loans | The following tables present the recorded investment in past due and non-accrual status by class of loans as of June 30, 2013 and December 31, 2012:
(1) Includes all loans on non-accrual status regardless of the number of days such loans were delinquent as of June 30, 2013.
(1) Includes all loans on non-accrual status regardless of the number of days such loans were delinquent as of December 31, 2012. |
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Loans by class modified as troubled debt restructurings | The following table presents loans by class modified as troubled debt restructurings that occurred during the six months ended June 30, 2013 and June 30, 2012:
The troubled debt restructurings described above increased the allowance for loan losses by $97,629 and resulted in no charge offs during the six months ended June 30, 2013. The troubled debt restructurings described above did not increase the allowance for loan losses and resulted in no charge offs during the six months ended June 30, 2012. The following table presents loans by class modified as troubled debt restructurings that occurred during the three months ended June 30, 2013 and June 30, 2012:
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Risk category of the recorded investment of loans by class of loans | Based on the analyses performed as of June 30, 2013 and December 31, 2012, the risk category of the recorded investment of loans by class of loans is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recorded investment in residential and consumer loans based on payment activity | The following table presents the recorded investment in residential and consumer loans based on payment activity as of June 30, 2013 and December 31, 2012:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of changes in contractually required principal and interest on loans acquired | The table below summarizes the changes in total contractually required principal and interest cash payments, management’s estimate of expected total cash payments and carrying value of the PCI loans from January 1, 2013 to June 30, 2013 and April 1, 2013 to June 30, 2013:
|
COMPONENTS OF QUARTERLY AND YEAR TO DATE NET PERIODIC BENEFIT COSTS
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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COMPONENTS OF QUARTERLY AND YEAR TO DATE NET PERIODIC BENEFIT COSTS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMPONENTS OF QUARTERLY AND YEAR TO DATE NET PERIODIC BENEFIT COSTS |
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ACCUMULATED OTHER COMPREHENSIVE INCOME OR LOSS (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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ACCUMULATED OTHER COMPREHENSIVE INCOME OR LOSS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of accumulated other comprehensive income (Loss) | The following is a summary of the changes in accumulated other comprehensive income or loss by component, net of tax, for the periods indicated:
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Reclassification out of accumulated other comprehensive income [Table Text Block] | The following is the reclassification out of accumulated other comprehensive income for the periods indicated:
(a) These accumulated other comprehensive income components are included in the computation of net periodic pension and other benefit plan costs (see Note 10 for additional information).
(a) These accumulated other comprehensive income components are included in the computation of net periodic pension and other benefit plan costs (see Note 10 for additional information). |
GOODWILL AND INTANGIBLE ASSETS (Tables)
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of changes in goodwill | The changes in goodwill included in the core banking segment during the periods ending June 30, 2013 and 2012 were as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of acquired finite-lived intangible assets by major class | Acquired intangible assets were as follows at June 30, 2013 and December 31, 2012:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of expected amortization expense | The remaining estimated aggregate amortization expense at June 30, 2013 is listed below:
|
FAIR VALUE (Details) (USD $)
|
3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
Level
|
Jun. 30, 2012
|
Dec. 31, 2012
|
Jun. 30, 2013
Carrying Amount [Member]
|
Dec. 31, 2012
Carrying Amount [Member]
|
Jun. 30, 2013
Estimated Fair Value [Member]
|
Dec. 31, 2012
Estimated Fair Value [Member]
|
Jun. 30, 2013
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
|
Dec. 31, 2012
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
|
Jun. 30, 2013
Significant Other Observable Inputs (Level 2) [Member]
|
Dec. 31, 2012
Significant Other Observable Inputs (Level 2) [Member]
|
Jun. 30, 2013
Significant Unobservable Inputs (Level 3) [Member]
|
Dec. 31, 2012
Significant Unobservable Inputs (Level 3) [Member]
|
Jun. 30, 2013
Impaired Loans [Member]
|
Jun. 30, 2013
Impaired Loans [Member]
|
Dec. 31, 2012
Impaired Loans [Member]
|
Jun. 30, 2013
Other real estate owned [Member]
|
Dec. 31, 2012
Other real estate owned [Member]
|
Jun. 30, 2013
Recurring [Member]
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
|
Dec. 31, 2012
Recurring [Member]
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
|
Jun. 30, 2013
Recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
|
Dec. 31, 2012
Recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
|
Jun. 30, 2013
Recurring [Member]
Significant Unobservable Inputs (Level 3) [Member]
|
Dec. 31, 2012
Recurring [Member]
Significant Unobservable Inputs (Level 3) [Member]
|
Jun. 30, 2013
Recurring [Member]
Fair Value [Member]
|
Dec. 31, 2012
Recurring [Member]
Fair Value [Member]
|
Jun. 30, 2013
Non-recurring [Member]
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Impaired Loans [Member]
|
Dec. 31, 2012
Non-recurring [Member]
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Impaired Loans [Member]
|
Jun. 30, 2013
Non-recurring [Member]
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Other real estate owned [Member]
|
Dec. 31, 2012
Non-recurring [Member]
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Other real estate owned [Member]
|
Jun. 30, 2013
Non-recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
Impaired Loans [Member]
|
Dec. 31, 2012
Non-recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
Impaired Loans [Member]
|
Jun. 30, 2013
Non-recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
Other real estate owned [Member]
|
Dec. 31, 2012
Non-recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
Other real estate owned [Member]
|
Jun. 30, 2013
Non-recurring [Member]
Significant Unobservable Inputs (Level 3) [Member]
Impaired Loans [Member]
|
Dec. 31, 2012
Non-recurring [Member]
Significant Unobservable Inputs (Level 3) [Member]
Impaired Loans [Member]
|
Jun. 30, 2013
Non-recurring [Member]
Significant Unobservable Inputs (Level 3) [Member]
Impaired Loans [Member]
Market Approach Valuation Technique [Member]
|
Dec. 31, 2012
Non-recurring [Member]
Significant Unobservable Inputs (Level 3) [Member]
Impaired Loans [Member]
Market Approach Valuation Technique [Member]
|
Jun. 30, 2013
Non-recurring [Member]
Significant Unobservable Inputs (Level 3) [Member]
Other real estate owned [Member]
|
Dec. 31, 2012
Non-recurring [Member]
Significant Unobservable Inputs (Level 3) [Member]
Other real estate owned [Member]
|
Jun. 30, 2013
Non-recurring [Member]
Significant Unobservable Inputs (Level 3) [Member]
Other real estate owned [Member]
Market Approach Valuation Technique [Member]
|
Dec. 31, 2012
Non-recurring [Member]
Significant Unobservable Inputs (Level 3) [Member]
Other real estate owned [Member]
Market Approach Valuation Technique [Member]
|
Jun. 30, 2013
Non-recurring [Member]
Fair Value [Member]
Impaired Loans [Member]
|
Dec. 31, 2012
Non-recurring [Member]
Fair Value [Member]
Impaired Loans [Member]
|
Jun. 30, 2013
Non-recurring [Member]
Fair Value [Member]
Other real estate owned [Member]
|
Dec. 31, 2012
Non-recurring [Member]
Fair Value [Member]
Other real estate owned [Member]
|
|||||
FAIR VALUE [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of levels | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Obligations of U.S. Government and U.S. Government sponsored enterprises | $ 31,526,000 | $ 37,698,000 | $ 112,924,370 | $ 103,893,214 | $ 0 | $ 0 | $ 144,450,370 | $ 141,591,214 | ||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities, residential | 0 | 0 | 22,979,392 | 31,515,249 | 0 | 0 | 22,979,392 | 31,515,249 | ||||||||||||||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | 0 | 0 | 37,003,563 | 40,814,722 | 0 | 0 | 37,003,563 | 40,814,722 | ||||||||||||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | 0 | 0 | 2,188,975 | 3,543,360 | 0 | 0 | 2,188,975 | 3,543,360 | ||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds and notes | 0 | 0 | 7,515,573 | 11,651,635 | 0 | 0 | 7,515,573 | 11,651,635 | ||||||||||||||||||||||||||||||||||||||||||||
SBA loan pools | 0 | 0 | 1,591,911 | 1,724,140 | 0 | 0 | 1,591,911 | 1,724,140 | ||||||||||||||||||||||||||||||||||||||||||||
Trust Preferred securities | 0 | 0 | 2,001,406 | 2,025,313 | 514,300 | 445,600 | 2,515,706 | 2,470,913 | ||||||||||||||||||||||||||||||||||||||||||||
Corporate stocks | 6,473,329 | 5,720,533 | 643,133 | 653,997 | 0 | 0 | 7,116,462 | 6,374,530 | ||||||||||||||||||||||||||||||||||||||||||||
Estimated Fair Value | 225,361,952 | 225,361,952 | 239,685,763 | 37,999,329 | 43,418,533 | 186,848,323 | 195,821,630 | 514,300 | 445,600 | 225,361,952 | 239,685,763 | |||||||||||||||||||||||||||||||||||||||||
Trading assets | 388,714 | 348,241 | 0 | 0 | 0 | 0 | 388,714 | 348,241 | ||||||||||||||||||||||||||||||||||||||||||||
Trust Preferred Securities Available for Sale [Rollforward] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | 496,825 | 346,210 | 445,600 | 294,910 | ||||||||||||||||||||||||||||||||||||||||||||||||
Included in earnings [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Income on securities | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Impairment charge on investment securities | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Included in other comprehensive income | 17,475 | (3,175) | 68,700 | 48,125 | ||||||||||||||||||||||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance | 514,300 | 343,035 | 514,300 | 343,035 | ||||||||||||||||||||||||||||||||||||||||||||||||
Impaired Loans [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial & industrial | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 257,146 | 235,501 | 101,200 | 101,200 | 257,146 | 235,501 | 101,200 | 101,200 | ||||||||||||||||||||||||||||||||||||
Commercial mortgage other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 680,723 | 305,222 | 257,702 | 257,702 | 680,723 | 305,222 | 257,702 | 257,702 | ||||||||||||||||||||||||||||||||||||
Residential mortgages | 0 | 0 | 0 | 0 | 161,950 | 201,679 | 161,950 | 201,679 | ||||||||||||||||||||||||||||||||||||||||||||
Consumer loans [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Home equity lines & loans | 0 | 0 | 0 | 0 | 0 | 0 | 53,856 | 66,959 | 4,000 | 53,856 | 66,959 | 4,000 | ||||||||||||||||||||||||||||||||||||||||
Total Impaired Loans | 0 | 0 | 0 | 0 | 991,725 | 540,723 | 991,725 | 540,723 | ||||||||||||||||||||||||||||||||||||||||||||
Total Other real estate owned, net | 780,178 | 756,948 | 0 | 0 | 0 | 0 | 587,811 | 564,581 | 587,811 | 564,581 | ||||||||||||||||||||||||||||||||||||||||||
Information related to Level 3 non-recurring fair value measurement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | 991,725 | 540,723 | 587,811 | 564,581 | ||||||||||||||||||||||||||||||||||||||||||||||||
Valuation Techniques | Third party real estate and a 100% discount of personal property | Third party real estate and a 100% discount of personal property | Third party appraisals | Third party appraisals | ||||||||||||||||||||||||||||||||||||||||||||||||
Unobservable Input 1 | Management discount based on underlying collateral characteristics and market conditions | Management discount based on underlying collateral characteristics and market conditions | Estimated holding period | Estimated holding period | ||||||||||||||||||||||||||||||||||||||||||||||||
Unobservable Input 2 | Estimated closing costs | Estimated closing costs | ||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying amount of impaired loans | 1,761,952 | 1,761,952 | 733,361 | |||||||||||||||||||||||||||||||||||||||||||||||||
Impaired loan valuation allowance | 770,227 | 770,227 | 192,638 | 770,227 | 770,227 | 192,638 | ||||||||||||||||||||||||||||||||||||||||||||||
Provision for loan losses | 450,474 | 51,593 | 881,484 | 528,897 | 494,350 | 577,589 | 0 | |||||||||||||||||||||||||||||||||||||||||||||
OREO - Other real estate owned carrying value, net | 587,811 | 564,581 | ||||||||||||||||||||||||||||||||||||||||||||||||||
OREO - Other real estate owned gross | 780,178 | 756,948 | 0 | 0 | 0 | 0 | 587,811 | 564,581 | 587,811 | 564,581 | ||||||||||||||||||||||||||||||||||||||||||
Other real estate owned valuation allowance | 192,367 | 192,367 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Write down of OREO | 0 | 116,840 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and due from financial institutions | 23,812,069 | 23,812,069 | 29,239,309 | 23,812,000 | 29,239,000 | 23,812,000 | [1] | 29,239,000 | [1] | 23,812,000 | 29,239,000 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
Interest-bearing deposits in other financial institutions | 944,937 | 944,937 | 11,001,912 | 945,000 | 11,002,000 | 945,000 | [1] | 11,002,000 | [1] | 945,000 | 8,645,000 | 0 | 2,357,000 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
Trading assets | 389,000 | 348,000 | 389,000 | [1] | 348,000 | [1] | 389,000 | 348,000 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||
Securities available for sale | 225,361,952 | 225,361,952 | 239,685,763 | 225,362,000 | 239,686,000 | 225,362,000 | [1] | 239,686,000 | [1] | 37,999,000 | 43,419,000 | 186,849,000 | 195,822,000 | 514,000 | 445,000 | |||||||||||||||||||||||||||||||||||||
Securities held to maturity | 6,570,262 | 6,570,262 | 5,748,453 | 6,570,000 | 5,748,000 | 7,064,000 | [1] | 6,421,000 | [1] | 0 | 0 | 7,064,000 | 6,421,000 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
Federal Home Loan and Federal Reserve Bank Stock | 4,579,000 | 4,710,000 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||
Net loans | 922,719,360 | 922,719,360 | 883,084,291 | 922,719,000 | 883,084,000 | 952,305,000 | 916,289,000 | [1] | 0 | 0 | 0 | 0 | 952,305,000 | 916,289,000 | ||||||||||||||||||||||||||||||||||||||
Loans held for sale | 947,461 | 947,461 | 1,057,309 | 947,000 | 1,057,000 | 947,000 | [1] | 1,057,000 | [1] | 0 | 0 | 947,000 | 1,057,000 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
Accrued interest receivable | 2,389,020 | 2,389,020 | 2,383,998 | 3,742,000 | 3,788,000 | 3,742,000 | [1] | 3,788,000 | [1] | 143,000 | 175,000 | 1,234,000 | 1,257,000 | 2,365,000 | 2,356,000 | |||||||||||||||||||||||||||||||||||||
Deposits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Demand, savings, and insured money market accounts | 830,003,000 | 808,044,000 | 830,003,000 | [1] | 808,044,000 | [1] | 830,003,000 | 808,044,000 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||
Time deposits | 226,038,000 | 226,038,000 | 224,965,000 | 236,690,000 | 238,245,000 | [1] | 0 | 0 | 238,245,000 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||
Securities sold under agreements to repurchase | 30,568,070 | 30,568,070 | 32,710,650 | 30,568,000 | 32,711,000 | 32,014,000 | 35,260,000 | [1] | 0 | 0 | 32,014,000 | 35,260,000 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||
Federal Home Loan Bank term Advances | 26,101,230 | 26,101,230 | 27,225,363 | 26,101,000 | 27,225,000 | 27,476,000 | 29,688,000 | [1] | 0 | 0 | 27,476,000 | 29,688,000 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||
Accrued interest payable | $ 405,000 | $ 453,000 | $ 405,000 | [1] | $ 453,000 | [1] | $ 16,000 | $ 12,000 | $ 224,000 | $ 279,000 | $ 165,000 | $ 162,000 | ||||||||||||||||||||||||||||||||||||||||
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EARNING PER COMMON SHARE (Details)
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3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
EARNING PER COMMON SHARE [Abstract] | ||||
Weighted average number of shares outstanding (in shares) | 4,658,400 | 4,636,395 | 4,657,131 | 4,639,204 |
COMMITMENTS AND CONTINGENCIES (Details) (Pending Litigation [Member], USD $)
In Millions, unless otherwise specified |
6 Months Ended |
---|---|
Jun. 30, 2013
Lawsuit
|
|
Loss Contingencies [Line Items] | |
Number of legal proceedings | 2 |
Objections to Final Settlement of Trust Account One [Member]
|
|
Loss Contingencies [Line Items] | |
Damages and disallowed trustee's commissions claimed | $ 9.6 |
Objections to Final Settlement of Trust Account Two [Member]
|
|
Loss Contingencies [Line Items] | |
Damages and disallowed trustee's commissions claimed | $ 24.1 |
FAIR VALUE (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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FAIR VALUE [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of assets and liabilities measured at fair value on a recurring basis | Assets and liabilities measured at fair value on a recurring basis are summarized below:
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Changes in unrealized gains and losses recorded in earnings | The tables below present a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six-month periods ending June 30, 2013 and 2012:
|
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Summary of assets and liabilities measured at fair value on a non-recurring basis | Assets and liabilities measured at fair value on a non-recurring basis are summarized below:
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Nonrecurring fair value measurement, valuation techniques | The following table presents information related to Level 3 non-recurring fair value measurement at June 30, 2013 and December 31, 2012:
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Carrying value and estimated fair value of financial instruments | The carrying amounts and estimated fair values of other financial instruments, at June 30, 2013 and December 31, 2012, are as follows (dollars in thousands):
|
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED) (USD $)
|
Common Stock [Member]
|
Additional Paid-in Capital [Member]
|
Retained Earnings [Member]
|
Treasury Stock [Member]
|
Accumulated Other Comprehensive Income (Loss) [Member]
|
Total
|
---|---|---|---|---|---|---|
Balances at Dec. 31, 2011 | $ 53,101 | $ 45,582,861 | $ 100,628,900 | $ (18,894,044) | $ (1,441,378) | $ 125,929,440 |
Net income | 0 | 0 | 6,058,573 | 0 | 0 | 6,058,573 |
Other comprehensive income | 0 | 0 | 0 | 0 | 585,352 | 585,352 |
Restricted stock awards | 0 | 44,743 | 0 | 0 | 0 | 44,743 |
Restricted stock units for directors' deferred compensation plan | 0 | 42,982 | 0 | 0 | 0 | 42,982 |
Cash dividends declared | 0 | 0 | (2,286,005) | 0 | 0 | (2,286,005) |
Distribution of shares of treasury stock for directors' compensation | 0 | (28,121) | 0 | 261,069 | 0 | 232,948 |
Distribution of shares of treasury stock for employee compensation | 0 | (8,052) | 0 | 88,052 | 0 | 80,000 |
Distribution of shares of treasury stock for deferred directors' compensation | 0 | (81,747) | 0 | 82,588 | 0 | 841 |
Distribution of shares of treasury stock granted for employee restricted stock awards | 0 | (27,514) | 0 | 27,514 | 0 | 0 |
Purchase of shares of treasury stock | 0 | 0 | 0 | (480,073) | 0 | (480,073) |
Balances at Jun. 30, 2012 | 53,101 | 45,525,152 | 104,401,468 | (18,914,894) | (856,026) | 130,208,801 |
Balances at Dec. 31, 2012 | 53,101 | 45,357,073 | 107,078,182 | (18,566,490) | (2,806,929) | 131,114,937 |
Net income | 0 | 0 | 5,066,375 | 0 | 0 | 5,066,375 |
Other comprehensive income | 0 | 0 | 0 | 0 | (1,568,118) | (1,568,118) |
Restricted stock awards | 0 | 85,494 | 0 | 0 | 0 | 85,494 |
Restricted stock units for directors' deferred compensation plan | 0 | 50,925 | 0 | 0 | 0 | 50,925 |
Cash dividends declared | 0 | 0 | (2,389,105) | 0 | 0 | (2,389,105) |
Distribution of shares of treasury stock for directors' compensation | 0 | 13,896 | 0 | 203,050 | 0 | 216,946 |
Distribution of shares of treasury stock for employee compensation | 0 | 7,278 | 0 | 104,876 | 0 | 112,154 |
Distribution of shares of treasury stock for deferred directors' compensation | 0 | (74,623) | 0 | 85,577 | 0 | 10,954 |
Purchase of shares of treasury stock | 0 | 0 | 0 | (92,630) | 0 | (92,630) |
Sale of treasury stock | 0 | 10,518 | 0 | 60,362 | 0 | 70,880 |
Balances at Jun. 30, 2013 | $ 53,101 | $ 45,450,561 | $ 109,755,452 | $ (18,205,255) | $ (4,375,047) | $ 132,678,812 |
ADOPTION OF NEW ACCOUNTING STANDARDS
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
ADOPTION OF NEW ACCOUNTING STANDARDS [Abstract] | |
ADOPTION OF NEW ACCOUNTING STANDARDS | NOTE 3 ADOPTION OF NEW ACCOUNTING STANDARDS In February 2013, the FASB issued Accounting Standards Update (“ASU”) No. 2013-02, “Comprehensive Income (Topic 220) – Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” ASU 2013-02 amends recent guidance related to the reporting of comprehensive income to enhance the transparency of the reporting of reclassifications out of accumulated other comprehensive income. ASU 2013-02 became effective for the Corporation on January 1, 2013 and did not have a material impact on the Corporation’s financial statements. The additional disclosures are included in Note 8 Accumulated Other Comprehensive Income or Loss. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES To assist the reader, the Corporation has provided the following list of commonly used acronyms and abbreviations included in the Notes to Unaudited Consolidated Financial Statements.
Organization and Principles of Consolidation Chemung Financial Corporation (the “Corporation”) is a bank holding company headquartered in Elmira, New York. The Corporation provides a wide range of financial and fiduciary services through its wholly-owned subsidiaries, Chemung Canal Trust Company (the “Bank”), a state chartered bank, and CFS Group, Inc., a non-bank financial services company. The Corporation and the Bank are subject to the regulation of certain federal and state agencies and undergo periodic examinations by those regulatory authorities. The unaudited consolidated financial statements include the accounts of the Corporation, the Bank and CFS Group, Inc. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain reclassifications of prior period amounts have been made to conform with the current period presentation. These reclassifications had no impact on previously reported net income. Basis of Presentation The unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC in Article 10 of Regulation S-X and in accordance with the instructions to Form 10-Q and GAAP for interim financial information. Certain information, accounting policies and footnote disclosures normally included in complete financial statements prepared in accordance with GAAP have been condensed or omitted in accordance with such rules and regulations. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Corporation’s annual report on Form 10-K for the year ended December 31, 2012. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the unaudited consolidated financial statements and accompanying notes. Primary areas involving the use of estimates and assumptions include the allowance for loan losses, other-than-temporary impairment of securities, the carrying amount of goodwill and the amortization of other intangible assets. Actual results could differ from those estimates. In the opinion of management, all adjustments considered necessary, consisting of normal recurring items, have been included for a fair presentation of the accompanying unaudited consolidated financial statements. Operating results for the three and six months ended June 30, 2013 are not necessarily indicative of the results that may be expected for the full year or future periods. Subsequent Events The Corporation has evaluated events and transactions through the time the unaudited consolidated financial statements were issued. Financial statements are considered issued when they are widely distributed to all shareholders and other financial statement users, or filed with the SEC. In conjunction with applicable accounting standards, all material subsequent events have been either recognized in the unaudited consolidated financial statements or disclosed in the notes to the unaudited consolidated financial statements. |
GOODWILL AND INTANGIBLE ASSETS (Details) (USD $)
|
3 Months Ended | 6 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
Dec. 31, 2012
|
|||||
Goodwill [Roll Forward] | |||||||||
Beginning of year | $ 21,824,443 | $ 21,983,617 | |||||||
Acquired goodwill | 0 | ||||||||
Adjustment of Acquired goodwill | 0 | [1] | (159,174) | [1] | |||||
Ending balance June 30, | 21,824,443 | 21,824,443 | 21,824,443 | 21,824,443 | |||||
Finite-lived intangible assets, net [Abstract] | |||||||||
Balance Acquired | 9,883,221 | 9,883,221 | 9,883,221 | ||||||
Accumulated Amortization | 5,188,480 | 5,188,480 | 4,739,401 | ||||||
Aggregate amortization expense | 214,478 | 264,050 | 449,079 | 548,190 | |||||
Finite-lived intangible assets, future amortization expense [Abstract] | |||||||||
2013 | 427,445 | 427,445 | |||||||
2014 | 777,801 | 777,801 | |||||||
2015 | 681,176 | 681,176 | |||||||
2016 | 607,713 | 607,713 | |||||||
2017 | 557,893 | 557,893 | |||||||
2018 and thereafter | 1,642,713 | 1,642,713 | |||||||
Total | 4,694,741 | 4,694,741 | |||||||
Core deposit intangibles [Member]
|
|||||||||
Finite-lived intangible assets, net [Abstract] | |||||||||
Balance Acquired | 3,819,798 | 3,819,798 | 3,819,798 | ||||||
Accumulated Amortization | 2,054,776 | 2,054,776 | 1,796,853 | ||||||
Other customer relationship intangibles [Member]
|
|||||||||
Finite-lived intangible assets, net [Abstract] | |||||||||
Balance Acquired | 6,063,423 | 6,063,423 | 6,063,423 | ||||||
Accumulated Amortization | $ 3,133,704 | $ 3,133,704 | $ 2,942,548 | ||||||
|
COMPONENTS OF QUARTERLY AND YEAR TO DATE NET PERIODIC BENEFIT COSTS (Tables)
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6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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COMPONENTS OF QUARTERLY AND YEAR TO DATE NET PERIODIC BENEFIT COSTS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of net periodic benefit costs |
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