x
|
Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
For the quarterly period ended September 30, 2013
|
|
o
|
Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
For the transition period from _______________ to _______________
|
Michigan
|
38-2659066
|
|
(State or Other Jurisdiction of Incorporation or Organization)
|
(I.R.S. Employer Identification No.) | |
109 East Division
Sparta, Michigan |
49345
|
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
Large accelerated filer | o | Accelerated filer | o | ||
Non-accelerated filer | o | Smaller reporting company | x |
September 30,
|
December 31,
|
|||||||
(Dollars in thousands)
|
2013
|
2012
|
||||||
(Unaudited)
|
(Audited)
|
|||||||
Assets
|
||||||||
Cash and due from banks
|
$ | 13,694 | $ | 19,034 | ||||
Federal funds sold
|
- | - | ||||||
Cash and cash equivalents
|
13,694 | 19,034 | ||||||
Securities available for sale
|
127,442 | 134,492 | ||||||
Federal Home Loan Bank stock
|
2,478 | 2,478 | ||||||
Federal Reserve Bank stock
|
1,272 | 1,272 | ||||||
Loans held for sale
|
973 | 1,874 | ||||||
Loans
|
315,692 | 311,468 | ||||||
Allowance for loan losses
|
(5,712 | ) | (5,852 | ) | ||||
Loans, net
|
309,980 | 305,616 | ||||||
Premises and equipment, net
|
12,142 | 12,121 | ||||||
Other real estate owned, net
|
965 | 2,019 | ||||||
Cash value of life insurance policies
|
10,195 | 9,970 | ||||||
Intangible assets, net
|
1,388 | 1,724 | ||||||
Goodwill
|
13,728 | 13,728 | ||||||
Other assets
|
4,478 | 4,585 | ||||||
Total assets
|
$ | 498,735 | $ | 508,913 | ||||
Liabilities
|
||||||||
Deposits – noninterest-bearing
|
$ | 92,078 | $ | 101,861 | ||||
Deposits – interest-bearing
|
314,276 | 322,338 | ||||||
Total deposits
|
406,354 | 424,199 | ||||||
Repurchase agreements
|
19,218 | 19,572 | ||||||
Advances from Federal Home Loan Bank
|
9,399 | 420 | ||||||
Other liabilities
|
2,963 | 4,216 | ||||||
Total liabilities
|
437,934 | 448,407 | ||||||
Shareholders' Equity
|
||||||||
Preferred stock; shares authorized: 100,000; shares outstanding: none
|
- | - | ||||||
Common stock and paid in capital, no par value; shares authorized: 7,000,000; shares outstanding: 3,293,778 at September 30, 2013 and 3,298,081 at December 31, 2012
|
46,563 | 46,649 | ||||||
Retained earnings
|
13,929 | 11,501 | ||||||
Accumulated other comprehensive income, net
|
309 | 2,356 | ||||||
Total shareholders’ equity
|
60,801 | 60,506 | ||||||
Total liabilities and shareholders’ equity
|
$ | 498,735 | $ | 508,913 |
(Dollars in thousands, except per share data)
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
Interest income
|
||||||||||||||||
Loans, including fees
|
$ | 3,935 | $ | 4,272 | $ | 11,943 | $ | 12,783 | ||||||||
Securities:
|
||||||||||||||||
Taxable
|
448 | 474 | 1,365 | 1,009 | ||||||||||||
Tax exempt
|
349 | 349 | 1,042 | 1,471 | ||||||||||||
Other
|
3 | 8 | 8 | 19 | ||||||||||||
Total interest income
|
4,735 | 5,103 | 14,358 | 15,282 | ||||||||||||
Interest expense
|
||||||||||||||||
Deposits
|
317 | 499 | 1,031 | 1,643 | ||||||||||||
Advances from Federal Home Loan Bank
|
14 | 59 | 29 | 247 | ||||||||||||
Other
|
13 | 33 | 32 | 171 | ||||||||||||
Total interest expense
|
344 | 591 | 1,092 | 2,061 | ||||||||||||
Net interest income
|
4,391 | 4,512 | 13,266 | 13,221 | ||||||||||||
Provision for loan losses
|
- | 500 | 300 | 1,975 | ||||||||||||
Net interest income after provision for loan losses
|
4,391 | 4,012 | 12,966 | 11,246 | ||||||||||||
Noninterest income
|
||||||||||||||||
Customer service charges
|
963 | 875 | 2,735 | 2,461 | ||||||||||||
Insurance and investment commissions
|
288 | 164 | 631 | 546 | ||||||||||||
Gains on sales of loans
|
295 | 446 | 1,269 | 1,206 | ||||||||||||
Gains on sales of securities
|
13 | 21 | 89 | 307 | ||||||||||||
Losses on sales and write-downs of other assets
|
(520 | ) | (81 | ) | (820 | ) | (320 | ) | ||||||||
Earnings on life insurance policies
|
75 | 78 | 225 | 368 | ||||||||||||
Other
|
210 | 145 | 584 | 486 | ||||||||||||
Total noninterest income
|
1,324 | 1,648 | 4,713 | 5,054 | ||||||||||||
Noninterest expense
|
||||||||||||||||
Salaries and benefits
|
2,119 | 1,981 | 6,236 | 5,799 | ||||||||||||
Occupancy and equipment
|
580 | 574 | 1,742 | 1,711 | ||||||||||||
Data processing
|
472 | 503 | 1,485 | 1,379 | ||||||||||||
Professional fees
|
185 | 251 | 577 | 650 | ||||||||||||
Supplies and postage
|
100 | 118 | 344 | 369 | ||||||||||||
Advertising and promotional
|
44 | 47 | 156 | 128 | ||||||||||||
Intangible amortization
|
112 | 112 | 336 | 336 | ||||||||||||
Loan and collection expense
|
98 | 163 | 275 | 405 | ||||||||||||
FDIC insurance
|
68 | 80 | 247 | 290 | ||||||||||||
Other
|
350 | 338 | 1,234 | 1,126 | ||||||||||||
Total noninterest expense
|
4,128 | 4,167 | 12,632 | 12,193 | ||||||||||||
Income before income tax
|
1,587 | 1,493 | 5,047 | 4,107 | ||||||||||||
Income tax expense
|
386 | 371 | 1,299 | 949 | ||||||||||||
Net income
|
$ | 1,201 | $ | 1,122 | $ | 3,748 | $ | 3,158 | ||||||||
Basic earnings per share
|
$ | 0.37 | $ | 0.34 | $ | 1.14 | $ | 0.96 | ||||||||
Diluted earnings per share
|
$ | 0.36 | $ | 0.34 | $ | 1.13 | $ | 0.96 | ||||||||
Dividends declared per share
|
$ | 0.14 | $ | 0.13 | $ | 0.40 | $ | 0.37 |
(Dollars in thousands)
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
Net income
|
$ | 1,201 | $ | 1,122 | $ | 3,748 | $ | 3,158 | ||||||||
Other comprehensive income, net of tax:
|
||||||||||||||||
Unrealized holding gains/(loss) on available for sale securities
|
(486 | ) | 243 | (1,989 | ) | 591 | ||||||||||
Less: Reclassification adjustment for gain recognized in earnings, net of tax
|
(8 | ) | 13 | (58 | ) | 202 | ||||||||||
Total other comprehensive income/(loss), net of tax
|
(494 | ) | 230 | (2,047 | ) | 389 | ||||||||||
Comprehensive income
|
$ | 707 | $ | 1,352 | $ | 1,701 | $ | 3,547 |
Common
|
Accumulated
Other |
|||||||||||||||||||
Stock and
|
Comprehensive
|
|||||||||||||||||||
Number of
|
Paid in
|
Retained
|
Income,
|
|||||||||||||||||
(Dollars in thousands)
|
Shares
|
Capital
|
Earnings
|
Net
|
Total
|
|||||||||||||||
Balance, January 1, 2012
|
3,293,269 | $ | 46,602 | $ | 8,887 | $ | 2,415 | $ | 57,904 | |||||||||||
Net income
|
3,158 | 3,158 | ||||||||||||||||||
Other comprehensive income
|
389 | 389 | ||||||||||||||||||
Shares issued
|
7,701 | 97 | 97 | |||||||||||||||||
Effect of employee stock purchases
|
8 | 8 | ||||||||||||||||||
Cash dividends declared ($0.37 per share)
|
(1,220 | ) | (1,220 | ) | ||||||||||||||||
Balance, September 30, 2012
|
3,300,970 | $ | 46,707 | $ | 10,825 | $ | 2,804 | $ | 60,336 | |||||||||||
Balance, January 1, 2013
|
3,298,081 | $ | 46,649 | $ | 11,501 | $ | 2,356 | $ | 60,506 | |||||||||||
Net income
|
3,748 | 3,748 | ||||||||||||||||||
Other comprehensive loss
|
(2,047 | ) | (2,047 | ) | ||||||||||||||||
Change in ESOP repurchase obligation
|
(13 | ) | (13 | ) | ||||||||||||||||
Shared repurchased
|
(11,468 | ) | (192 | ) | (192 | ) | ||||||||||||||
Shares issued
|
7,165 | 104 | 104 | |||||||||||||||||
Effect of employee stock purchases
|
9 | 9 | ||||||||||||||||||
Issuance of restricted stock units
|
6 | 6 | ||||||||||||||||||
Cash dividends declared ($0.40 per share)
|
(1,320 | ) | (1,320 | ) | ||||||||||||||||
Balance, September 30, 2013
|
3,293,778 | $ | 46,563 | $ | 13,929 | $ | 309 | $ | 60,801 |
(Dollars in thousands)
|
Nine Months Ended
September 30,
|
|||||||
2013
|
2012
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$ | 3,748 | $ | 3,158 | ||||
Adjustments to reconcile net income to net cash from operating activities:
|
||||||||
Provision for loan losses
|
300 | 1,975 | ||||||
Depreciation
|
686 | 679 | ||||||
Amortization
|
1,240 | 1,150 | ||||||
Compensation expense on employee stock purchases and restricted stock units
|
15 | 8 | ||||||
Gains on sales of securities
|
(89 | ) | (307 | ) | ||||
Gains on sales of loans
|
(1,269 | ) | (1,206 | ) | ||||
Loans originated for sale
|
(34,442 | ) | (33,649 | ) | ||||
Proceeds from loan sales
|
36,437 | 35,004 | ||||||
Earnings on bank-owned life insurance
|
(225 | ) | (368 | ) | ||||
Proceeds from life insurance
|
— | 311 | ||||||
Net gains on sales of other real estate owned
|
(11 | ) | (18 | ) | ||||
Write-downs of other real estate owned
|
831 | 346 | ||||||
Proceeds from sales of other real estate owned
|
701 | 763 | ||||||
Deferred federal income tax benefit
|
(317 | ) | (105 | ) | ||||
Net changes in other assets
|
150 | 395 | ||||||
Net changes in other liabilities
|
104 | (178 | ) | |||||
Net cash from operating activities
|
7,859 | 7,958 | ||||||
Cash flows from investing activities:
|
||||||||
Securities available for sale:
|
||||||||
Sales
|
4,371 | 6,799 | ||||||
Maturities, prepayments and calls
|
19,978 | 27,592 | ||||||
Purchases
|
(21,082 | ) | (58,409 | ) | ||||
Purchase of Federal Reserve Bank stock
|
— | (1 | ) | |||||
Loan originations and payments, net
|
(5,131 | ) | 15,291 | |||||
Additions to premises and equipment
|
(707 | ) | (315 | ) | ||||
Net cash from investing activities
|
(2,571 | ) | (9,043 | ) | ||||
Cash flows from financing activities:
|
||||||||
Net change in deposits
|
(17,845 | ) | 16,675 | |||||
Net change in repurchase agreements
|
(354 | ) | (1,606 | ) | ||||
Proceeds from Federal Home Loan Bank advances
|
18,000 | — | ||||||
Payments on Federal Home Loan Bank advances
|
(9,021 | ) | (3,020 | ) | ||||
Issuance of common stock
|
104 | 97 | ||||||
Repurchase of common stock
|
(192 | ) | — | |||||
Cash dividends
|
(1,320 | ) | (1,220 | ) | ||||
Net cash from financing activities
|
(10,628 | ) | 10,926 | |||||
Net change in cash and cash equivalents
|
(5,340 | ) | 9,841 | |||||
Beginning cash and cash equivalents
|
19,034 | 17,125 | ||||||
Ending cash and cash equivalents
|
$ | 13,694 | $ | 26,966 | ||||
Supplemental disclosures of cash flow information:
|
||||||||
Cash paid for interest
|
$ | 1,092 | $ | 2,136 | ||||
Cash paid for income taxes
|
$ | 1,025 | $ | 1,225 | ||||
Loans transferred to other real estate owned
|
$ | 472 | $ | 938 | ||||
Securities transferred to other assets
|
$ | — | $ | 330 | ||||
Other real estate owned transferred to premises and equipment
|
$ | — | $ | 20 |
September 30, 2013
|
||||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
(Dollars in thousands)
|
Cost
|
Gains
|
Losses
|
Value
|
||||||||||||
U.S. Government and federal agency
|
$ | 36,977 | $ | 178 | $ | (429 | ) | $ | 36,726 | |||||||
U.S. Treasury
|
7,305 | 17 | (86 | ) | 7,236 | |||||||||||
State and municipal
|
65,145 | 1,634 | (1,024 | ) | 65,755 | |||||||||||
Mortgage-backed
|
8,161 | 121 | (66 | ) | 8,216 | |||||||||||
Corporate
|
6,958 | 61 | (31 | ) | 6,988 | |||||||||||
Foreign debt
|
1,000 | - | (18 | ) | 982 | |||||||||||
Equity securities
|
1,651 | 4 | (116 | ) | 1,539 | |||||||||||
Total
|
$ | 127,197 | $ | 2,015 | $ | (1,770 | ) | $ | 127,442 |
December 31, 2012
|
||||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
(Dollars in thousands)
|
Cost
|
Gains
|
Losses
|
Value
|
||||||||||||
U.S. Government and federal agency
|
$ | 39,815 | $ | 455 | $ | (2 | ) | $ | 40,268 | |||||||
U.S. Treasury
|
7,362 | 45 | (9 | ) | 7,398 | |||||||||||
State and municipal
|
62,248 | 2,668 | (238 | ) | 64,678 | |||||||||||
Mortgage-backed
|
12,218 | 308 | - | 12,526 | ||||||||||||
Corporate
|
6,600 | 113 | (1 | ) | 6,712 | |||||||||||
Foreign debt
|
1,000 | 1 | - | 1,001 | ||||||||||||
Equity securities
|
1,902 | 12 | (5 | ) | 1,909 | |||||||||||
Total
|
$ | 131,145 | $ | 3,602 | $ | (255 | ) | $ | 134,492 |
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||
Commercial
|
||||||||||||||||||||||||||||||||
and
|
Commercial
|
Construction
|
Residential
|
|||||||||||||||||||||||||||||
Agricultural
|
Industrial
|
Consumer
|
Real Estate
|
Real Estate
|
Real Estate
|
Unallocated
|
Total
|
|||||||||||||||||||||||||
Allowance for Loan Losses
|
||||||||||||||||||||||||||||||||
Three Months Ended
|
||||||||||||||||||||||||||||||||
September 30, 2013
|
||||||||||||||||||||||||||||||||
Beginning balance
|
$ | 140 | $ | 810 | $ | 215 | $ | 2,450 | $ | 20 | $ | 1,671 | $ | 558 | $ | 5,864 | ||||||||||||||||
Charge-offs
|
(88 | ) | (5 | ) | (102 | ) | — | — | (148 | ) | — | (343 | ) | |||||||||||||||||||
Recoveries
|
3 | 19 | 41 | 24 | — | 104 | — | 191 | ||||||||||||||||||||||||
Provision
|
83 | (203 | ) | 51 | 74 | (7 | ) | 126 | (124 | ) | — | |||||||||||||||||||||
Ending balance
|
$ | 138 | $ | 621 | $ | 205 | $ | 2,548 | $ | 13 | $ | 1,753 | $ | 434 | $ | 5,712 |
Nine Months Ended
|
||||||||||||||||||||||||||||||||
September 30, 2013
|
||||||||||||||||||||||||||||||||
Beginning balance
|
$ | 140 | $ | 381 | $ | 250 | $ | 2,596 | $ | 15 | $ | 1,923 | $ | 547 | $ | 5,852 | ||||||||||||||||
Charge-offs
|
(88 | ) | (54 | ) | (286 | ) | (166 | ) | — | (431 | ) | — | (1,025 | ) | ||||||||||||||||||
Recoveries
|
5 | 258 | 145 | 55 | — | 122 | — | 585 | ||||||||||||||||||||||||
Provision
|
81 | 36 | 96 | 63 | (2 | ) | 139 | (113 | ) | 300 | ||||||||||||||||||||||
Ending balance
|
$ | 138 | $ | 621 | $ | 205 | $ | 2,548 | $ | 13 | $ | 1,753 | $ | 434 | $ | 5,712 | ||||||||||||||||
Individually evaluated for impairment
|
$ | — | $ | 174 | $ | 4 | $ | 1,145 | $ | — | $ | 492 | $ | — | $ | 1,815 | ||||||||||||||||
Collectively evaluated for impairment
|
$ | 138 | $ | 490 | $ | 201 | $ | 1,360 | $ | 13 | $ | 1,261 | $ | 434 | $ | 3,897 |
Three Months Ended
|
||||||||||||||||||||||||||||||||
September 30, 2012
|
||||||||||||||||||||||||||||||||
Beginning balance
|
$ | 121 | $ | 690 | $ | 236 | $ | 2,611 | $ | 15 | $ | 1,674 | $ | 262 | $ | 5,609 | ||||||||||||||||
Charge-offs
|
— | (347 | ) | (128 | ) | (84 | ) | — | (44 | ) | — | (603 | ) | |||||||||||||||||||
Recoveries
|
1 | 15 | 52 | 192 | — | 7 | — | 267 | ||||||||||||||||||||||||
Provision
|
18 | 313 | 70 | (378 | ) | (3 | ) | 215 | 265 | 500 | ||||||||||||||||||||||
Ending balance
|
$ | 140 | $ | 671 | $ | 230 | $ | 2,341 | $ | 12 | $ | 1,852 | $ | 527 | $ | 5,773 |
Nine Months Ended
|
||||||||||||||||||||||||||||||||
September 30, 2012
|
||||||||||||||||||||||||||||||||
Beginning balance
|
$ | 55 | $ | 609 | $ | 197 | $ | 2,300 | $ | 34 | $ | 1,846 | $ | 172 | $ | 5,213 | ||||||||||||||||
Charge-offs
|
— | (377 | ) | (261 | ) | (518 | ) | — | (784 | ) | — | (1,940 | ) | |||||||||||||||||||
Recoveries
|
4 | 45 | 177 | 213 | — | 86 | — | 525 | ||||||||||||||||||||||||
Provision
|
81 | 394 | 117 | 346 | (22 | ) | 704 | 355 | 1,975 | |||||||||||||||||||||||
Ending balance
|
$ | 140 | $ | 671 | $ | 230 | $ | 2,341 | $ | 12 | $ | 1,852 | $ | 527 | $ | 5,773 | ||||||||||||||||
Individually evaluated for impairment
|
$ | — | $ | 159 | $ | — | $ | 101 | $ | — | $ | — | $ | — | $ | 260 | ||||||||||||||||
Collectively evaluated for impairment
|
$ | 140 | $ | 512 | $ | 230 | $ | 2,240 | $ | 12 | $ | 1,852 | $ | 527 | $ | 5,513 |
September 30, 2013
|
||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 307 | $ | 585 | $ | 42 | $ | 5,811 | $ | — | $ | 2,759 | $ | — | $ | 9,504 | ||||||||||||||||
Collectively evaluated for impairment
|
34,227 | 69,039 | 20,012 | 90,159 | 959 | 91,792 | — | 306,188 | ||||||||||||||||||||||||
Ending balance
|
$ | 34,534 | $ | 69,624 | $ | 20,054 | $ | 95,970 | $ | 959 | $ | 94,551 | $ | — | $ | 315,692 |
December 31, 2012
|
||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 166 | $ | 198 | $ | 32 | $ | 3,723 | $ | — | $ | 1,820 | $ | — | $ | 5,939 | ||||||||||||||||
Collectively evaluated for impairment
|
31,624 | 67,167 | 19,335 | 89,589 | 1,056 | 96,758 | — | 305,529 | ||||||||||||||||||||||||
Ending balance
|
$ | 31,790 | $ | 67,365 | $ | 19,367 | $ | 93,312 | $ | 1,056 | $ | 98,578 | $ | — | $ | 311,468 |
Agricultural
|
Commercial and Industrial
|
Commercial Real Estate
|
||||||||||||||||||||||
September 30,
|
December 31,
|
September 30,
|
December 31,
|
September 30,
|
December 31,
|
|||||||||||||||||||
2013
|
2012
|
2013
|
2012
|
2013
|
2012
|
|||||||||||||||||||
Risk ratings 1 and 2
|
$ | 10,795 | $ | 8,615 | $ | 10,046 | $ | 9,040 | $ | 3,100 | $ | 2,711 | ||||||||||||
Risk rating 3
|
17,019 | 16,173 | 45,230 | 43,549 | 47,888 | 45,295 | ||||||||||||||||||
Risk rating 4
|
5,543 | 5,040 | 12,879 | 13,417 | 30,132 | 30,223 | ||||||||||||||||||
Risk rating 5
|
1,177 | 1,939 | 963 | 855 | 7,284 | 7,847 | ||||||||||||||||||
Risk rating 6
|
— | 19 | 418 | 361 | 7,140 | 6,960 | ||||||||||||||||||
Risk rating 7
|
— | 4 | 88 | 143 | 426 | 276 | ||||||||||||||||||
$ | 34,534 | $ | 31,790 | $ | 69,624 | $ | 67,365 | $ | 95,970 | $ | 93,312 |
Corporate Credit Exposure - Credit Risk Profile Based On Payment Activity
|
||||||||||||||||||||||||
Consumer
|
Construction Real Estate
|
Residential Real Estate
|
||||||||||||||||||||||
September 30,
|
December 31,
|
September 30,
|
December 31,
|
September 30,
|
December 31,
|
|||||||||||||||||||
2013
|
2012
|
2013
|
2012
|
2013
|
2012
|
|||||||||||||||||||
Performing
|
$ | 20,043 | $ | 19,334 | $ | 959 | $ | 1,056 | $ | 94,467 | $ | 98,018 | ||||||||||||
Nonperforming
|
11 | 33 | — | — | 84 | 560 | ||||||||||||||||||
$ | 20,054 | $ | 19,367 | $ | 959 | $ | 1,056 | $ | 94,551 | $ | 98,578 |
Three Months Ended
September 30, 2013 |
Nine Months Ended
September 30, 2013 |
|||||||||||||||||||||||
Pre-
|
Post-
|
Pre-
|
Post-
|
|||||||||||||||||||||
Modification
|
Modification
|
Modification
|
Modification
|
|||||||||||||||||||||
Outstanding
|
Outstanding
|
Outstanding
|
Outstanding
|
|||||||||||||||||||||
Number of
|
Recorded
|
Recorded
|
Number of
|
Recorded
|
Recorded
|
|||||||||||||||||||
(Dollars in thousands)
|
Loans
|
Investment
|
Investment
|
Loans
|
Investment
|
Investment
|
||||||||||||||||||
Commercial real estate
|
1 | $ | 214 | $ | 214 | 1 | $ | 214 | $ | 214 |
Nine Months Ended September 30, 2012
|
||||||||||||
Pre-
|
Post-
|
|||||||||||
Modification
|
Modification
|
|||||||||||
Outstanding
|
Outstanding
|
|||||||||||
Number of
|
Recorded
|
Recorded
|
||||||||||
(Dollars in thousands)
|
Loans
|
Investment
|
Investment
|
|||||||||
Agricultural
|
1 | $ | 73 | $ | 73 | |||||||
Commercial and industrial
|
2 | 158 | 149 | |||||||||
Consumer
|
1 | 33 | 33 | |||||||||
Commercial real estate
|
2 | 145 | 145 | |||||||||
Residential real estate
|
3 | 355 | 355 | |||||||||
9 | $ | 764 | $ | 755 |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30, 2013
|
September 30, 2013
|
|||||||||||||||
Number
|
Recorded
|
Number
|
Recorded
|
|||||||||||||
(Dollars in thousands)
|
of Loans
|
Investment
|
of Loans
|
Investment
|
||||||||||||
Commercial and industrial
|
— | $ | — | 1 | $ | 88 | ||||||||||
Commercial real estate
|
1 | 246 | 2 | 368 | ||||||||||||
Consumer
|
— | — | 1 | 29 | ||||||||||||
1 | $ | 246 | 4 | $ | 485 |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30, 2012
|
September 30, 2012
|
|||||||||||||||
Number
|
Recorded
|
Number
|
Recorded
|
|||||||||||||
(Dollars in thousands)
|
of Loans
|
Investment
|
of Loans
|
Investment
|
||||||||||||
Commercial and industrial
|
3 | $ | 198 | 3 | $ | 198 | ||||||||||
Commercial real estate
|
3 | 757 | 5 | 1,341 | ||||||||||||
Consumer
|
1 | 32 | 1 | 32 | ||||||||||||
Residential real estate
|
— | — | 5 | 642 | ||||||||||||
7 | $ | 987 | 14 | $ | 2,213 |
Unpaid
|
Average
|
Interest
|
||||||||||||||||||
Recorded
|
Principal
|
Related
|
Recorded
|
Income
|
||||||||||||||||
Investment
|
Balance
|
Allowance
|
Investment
|
Recognized
|
||||||||||||||||
September 30, 2013
|
||||||||||||||||||||
With no related allowance recorded
|
||||||||||||||||||||
Agricultural
|
$ | —— | $ | — | $ | — | $ | 142 | $ | 7 | ||||||||||
Commercial and industrial
|
11 | 14 | — | 49 | — | |||||||||||||||
Consumer
|
2 | 2 | — | 3 | — | |||||||||||||||
Commercial real estate
|
750 | 1,162 | — | 670 | (1 | ) | ||||||||||||||
Residential real estate
|
483 | 689 | — | 348 | 3 | |||||||||||||||
Subtotal
|
1,246 | 1,867 | — | 1,212 | 9 | |||||||||||||||
With an allowance recorded
|
||||||||||||||||||||
Agricultural
|
307 | 307 | — | 140 | 1 | |||||||||||||||
Commercial and industrial
|
574 | 621 | 174 | 334 | 7 | |||||||||||||||
Consumer
|
40 | 40 | 4 | 45 | 3 | |||||||||||||||
Commercial real estate
|
5,061 | 4,883 | 1,145 | 4,305 | 200 | |||||||||||||||
Residential real estate
|
2,276 | 2,282 | 492 | 2,275 | 61 | |||||||||||||||
Subtotal
|
8,258 | 8,133 | 1,815 | 7,099 | 272 | |||||||||||||||
Total
|
||||||||||||||||||||
Agricultural
|
307 | 307 | — | 282 | 8 | |||||||||||||||
Commercial and industrial
|
585 | 635 | 174 | 383 | 7 | |||||||||||||||
Consumer
|
42 | 42 | 4 | 48 | 3 | |||||||||||||||
Commercial real estate
|
5,811 | 6,045 | 1,145 | 4,975 | 199 | |||||||||||||||
Residential real estate
|
2,759 | 2,971 | 492 | 2,623 | 64 | |||||||||||||||
Total
|
$ | 9,504 | $ | 10,000 | $ | 1,815 | $ | 8,311 | $ | 281 |
December 31, 2012
|
||||||||||||||||||||
With no related allowance recorded
|
||||||||||||||||||||
Agricultural
|
$ | 94 | $ | 441 | $ | — | $ | 19 | $ | — | ||||||||||
Commercial and industrial
|
49 | 49 | — | 223 | 6 | |||||||||||||||
Consumer
|
— | — | — | — | — | |||||||||||||||
Commercial real estate
|
577 | 848 | — | 1,586 | — | |||||||||||||||
Residential real estate
|
— | — | — | 1,366 | 48 | |||||||||||||||
Subtotal
|
720 | 1,338 | — | 3,194 | 54 | |||||||||||||||
With an allowance recorded
|
||||||||||||||||||||
Agricultural
|
72 | 72 | 1 | 14 | 1 | |||||||||||||||
Commercial and industrial
|
149 | 169 | 112 | 112 | — | |||||||||||||||
Consumer
|
32 | 32 | — | 6 | — | |||||||||||||||
Commercial real estate
|
3,146 | 3,193 | 449 | 1,576 | 24 | |||||||||||||||
Residential real estate
|
1,820 | 1,820 | 138 | 364 | 20 | |||||||||||||||
Subtotal
|
5,219 | 5,286 | 700 | 2,072 | 45 | |||||||||||||||
Total
|
||||||||||||||||||||
Agricultural
|
166 | 513 | 1 | 33 | 1 | |||||||||||||||
Commercial and industrial
|
198 | 218 | 112 | 335 | 6 | |||||||||||||||
Consumer
|
32 | 32 | — | 6 | — | |||||||||||||||
Commercial real estate
|
3,723 | 4,041 | 449 | 3,162 | 24 | |||||||||||||||
Residential real estate
|
1,820 | 1,820 | 138 | 1,730 | 68 | |||||||||||||||
Total
|
$ | 5,939 | $ | 6,624 | $ | 700 | $ | 5,266 | $ | 99 |
30 to 59
|
60 to 89
|
Greater
Than 90 |
Loans Not
|
90 Days Past
Due and |
||||||||||||||||||||||||
Days
|
Days
|
Days (1)
|
Total
|
Past Due
|
Total Loans
|
Accruing
|
||||||||||||||||||||||
September 30, 2013
|
||||||||||||||||||||||||||||
Agricultural
|
$ | 5 | $ | 150 | $ | 307 | $ | 462 | $ | 34,072 | $ | 34,534 | $ | — | ||||||||||||||
Commercial and industrial
|
280 | 5 | 88 | 373 | 69,251 | 69,624 | — | |||||||||||||||||||||
Consumer
|
41 | 11 | 13 | 65 | 19,989 | 20,054 | 11 | |||||||||||||||||||||
Commercial real estate
|
1,961 | 206 | 630 | 2,797 | 93,173 | 95,970 | — | |||||||||||||||||||||
Construction real estate
|
— | — | — | — | 959 | 959 | — | |||||||||||||||||||||
Residential real estate
|
1,230 | 249 | 354 | 1,833 | 92,718 | 94,551 | 84 | |||||||||||||||||||||
$ | 3,517 | $ | 621 | $ | 1,392 | $ | 5,530 | $ | 310,162 | $ | 315,692 | $ | 95 |
December 31, 2012
|
||||||||||||||||||||||||||||
Agricultural
|
$ | 262 | $ | — | $ | — | $ | 262 | $ | 31,528 | $ | 31,790 | $ | — | ||||||||||||||
Commercial and industrial
|
102 | 4 | 198 | 304 | 67,061 | 67,365 | — | |||||||||||||||||||||
Consumer
|
173 | 28 | 33 | 234 | 19,133 | 19,367 | 1 | |||||||||||||||||||||
Commercial real estate
|
64 | 68 | 339 | 471 | 92,841 | 93,312 | — | |||||||||||||||||||||
Construction real estate
|
— | — | — | — | 1,056 | 1,056 | — | |||||||||||||||||||||
Residential real estate
|
1,438 | 691 | 559 | 2,688 | 95,890 | 98,578 | 29 | |||||||||||||||||||||
$ | 2,039 | $ | 791 | $ | 1,129 | $ | 3,959 | $ | 307,509 | $ | 311,468 | $ | 30 |
(1)
|
Includes nonaccrual loans.
|
September 30,
|
December 31,
|
|||||||
2013
|
2012
|
|||||||
Agricultural
|
$ | 307 | $ | 94 | ||||
Commercial and industrial
|
530 | 220 | ||||||
Consumer
|
4 | 33 | ||||||
Commercial real estate
|
1,090 | 1,230 | ||||||
Construction real estate
|
— | — | ||||||
Residential real estate
|
1,041 | 754 | ||||||
$ | 2,972 | $ | 2,331 |
(Dollars in thousands, except per share data)
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
Basic Earnings Per Share
|
||||||||||||||||
Net income available to common shareholders
|
$ | 1,201 | $ | 1,122 | $ | 3,748 | $ | 3,158 | ||||||||
Weighted average common shares outstanding
|
3,294,480 | 3,299,424 | 3,298,607 | 3,296,462 | ||||||||||||
Basic earnings per share
|
$ | 0.37 | $ | 0.34 | $ | 1.14 | $ | 0.96 | ||||||||
Diluted Earnings Per Share
|
||||||||||||||||
Net income available to common shareholders
|
$ | 1,201 | $ | 1,122 | $ | 3,748 | $ | 3,158 | ||||||||
Weighted average common shares outstanding
|
3,294,480 | 3,299,424 | 3,298,607 | 3,296,462 | ||||||||||||
Plus dilutive stock options and restricted stock units
|
6,135 | 1,100 | 5,850 | 436 | ||||||||||||
Weighted average common shares outstanding and potentially dilutive shares
|
3,300,615 | 3,300,524 | 3,304,457 | 3,296,898 | ||||||||||||
Diluted earnings per share
|
$ | 0.36 | $ | 0.34 | $ | 1.13 | $ | 0.96 |
Carrying
|
Estimated
|
Quoted Prices in
Active Markets for Identical Assets |
Significant Other
Observable Inputs |
Significant
Unobservable Inputs |
||||||||||||||||
Amount
|
Fair Value
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||||||
September 30, 2013
|
||||||||||||||||||||
Assets:
|
||||||||||||||||||||
Cash and due from banks
|
$ | 13,694 | $ | 13,694 | $ | 13,694 | $ | — | $ | — | ||||||||||
Securities available for sale
|
127,442 | 127,442 | 155 | 123,129 | 4,158 | |||||||||||||||
Federal Home Loan Bank and Federal
|
||||||||||||||||||||
Reserve Bank stock
|
3,750 | 3,750 | — | 3,750 | — | |||||||||||||||
Loans held for sale
|
973 | 999 | — | 999 | — | |||||||||||||||
Loans, net
|
309,980 | 312,825 | — | — | 312,825 | |||||||||||||||
Liabilities:
|
||||||||||||||||||||
Noninterest-bearing deposits
|
92,078 | 92,078 | — | 92,078 | — | |||||||||||||||
Interest-bearing deposits
|
314,276 | 314,276 | — | 314,276 | — | |||||||||||||||
Repurchase agreements
|
19,218 | 19,218 | — | 19,218 | — | |||||||||||||||
Federal Home Loan Bank advances
|
9,399 | 9,444 | — | 9,444 | — | |||||||||||||||
December 31, 2012
|
||||||||||||||||||||
Assets:
|
||||||||||||||||||||
Cash and due from banks
|
$ | 19,034 | $ | 19,034 | $ | 19,034 | $ | — | $ | — | ||||||||||
Securities available for sale
|
134,492 | 134,492 | — | 131,893 | 2,599 | |||||||||||||||
Federal Home Loan Bank and Federal
|
||||||||||||||||||||
Reserve Bank stock
|
3,750 | 3,750 | — | 3,750 | — | |||||||||||||||
Loans held for sale
|
1,874 | 1,933 | — | 1,933 | — | |||||||||||||||
Loans, net
|
305,616 | 310,175 | — | — | 310,175 | |||||||||||||||
Liabilities:
|
||||||||||||||||||||
Noninterest-bearing deposits
|
101,861 | 101,861 | — | 101,861 | — | |||||||||||||||
Interest-bearing deposits
|
322,338 | 323,457 | — | 323,457 | — | |||||||||||||||
Repurchase agreements
|
19,572 | 19,572 | — | 19,572 | — | |||||||||||||||
Federal Home Loan Bank advances
|
420 | 485 | — | 485 | — |
Quoted Prices
|
Significant
|
|||||||||||||||
in Active
|
Other
|
Significant
|
||||||||||||||
Markets for |
Observable
|
Unobservable
|
||||||||||||||
Identical
|
Inputs
|
Inputs
|
Balance at
|
|||||||||||||
Assets (Level 1)
|
(Level 2)
|
(Level 3)
|
Date Indicated
|
|||||||||||||
Investment Securities, Available for
|
||||||||||||||||
Sale – September 30, 2013
|
||||||||||||||||
U.S. Treasury
|
$ | — | $ | 7,236 | $ | — | $ | 7,236 | ||||||||
U.S. Government and federal agency
|
— | 36,726 | — | 36,726 | ||||||||||||
State and municipal
|
— | 62,097 | 3,658 | 65,755 | ||||||||||||
Mortgage-backed
|
— | 8,216 | — | 8,216 | ||||||||||||
Corporate
|
— | 6,988 | — | 6,988 | ||||||||||||
Foreign debt
|
— | 982 | — | 982 | ||||||||||||
Equity securities
|
155 | 884 | 500 | 1,539 | ||||||||||||
Total
|
$ | 155 | $ | 123,129 | $ | 4,158 | $ | 127,442 | ||||||||
Investment Securities, Available for
|
||||||||||||||||
Sale - December 31, 2012
|
||||||||||||||||
U.S. Treasury
|
$ | — | $ | 7,398 | $ | — | $ | 7,398 | ||||||||
U.S. Government and federal agency
|
— | 40,268 | — | 40,268 | ||||||||||||
State and municipal
|
— | 62,579 | 2,099 | 64,678 | ||||||||||||
Mortgage-backed
|
— | 12,526 | — | 12,526 | ||||||||||||
Corporate
|
— | 6,712 | — | 6,712 | ||||||||||||
Foreign debt
|
— | 1,001 | — | 1,001 | ||||||||||||
Equity securities
|
— | 1,409 | 500 | 1,909 | ||||||||||||
Total
|
$ | — | $ | 131,893 | $ | 2,599 | $ | 134,492 |
2013
|
2012
|
|||||||
Investment Securities, Available for Sale
|
||||||||
Balance, January 1
|
$ | 2,599 | $ | 2,771 | ||||
Total realized and unrealized gains included in income
|
— | — | ||||||
Total unrealized gains included in other comprehensive income
|
8 | 6 | ||||||
Purchases of securities
|
2,540 | 563 | ||||||
Calls, maturities, and payments
|
(989 | ) | (244 | ) | ||||
Transfers into Level 3
|
— | 291 | ||||||
Transfers out of Level 3
|
— | (311 | ) | |||||
Balance, September 30
|
$ | 4,158 | $ | 3,076 |
Quoted Prices
|
Significant
|
|||||||||||||||
in Active
|
Other
|
Significant
|
||||||||||||||
Markets for |
Observable
|
Unobservable
|
||||||||||||||
Balance at
|
Identical
|
Inputs
|
Inputs
|
|||||||||||||
Dates Indicated
|
Assets (Level 1)
|
(Level 2)
|
(Level 3)
|
|||||||||||||
Impaired Loans
|
||||||||||||||||
September 30, 2013
|
$ | 9,504 | $ | — | $ | — | $ | 9,504 | ||||||||
December 31, 2012
|
$ | 5,939 | $ | — | $ | — | $ | 5,939 | ||||||||
Other Real Estate
|
||||||||||||||||
September 30, 2013
|
$ | 965 | $ | — | $ | — | $ | 965 | ||||||||
December 31, 2012
|
$ | 2,019 | $ | — | $ | — | $ | 2,019 |
(Dollars in thousands)
|
Nine Months Ended September 30,
|
|||||||||||||||||||||||
2013
|
2012
|
|||||||||||||||||||||||
Average
|
Average
|
|||||||||||||||||||||||
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
|||||||||||||||||||
Assets:
|
||||||||||||||||||||||||
Loans (1)
|
$ | 312,528 | $ | 11,954 | 5.10 | % | $ | 308,141 | $ | 12,795 | 5.54 | % | ||||||||||||
Taxable securities (2) (3)
|
91,296 | 1,364 | 1.99 | 89,213 | 1,471 | 2.20 | ||||||||||||||||||
Nontaxable securities (1) (2)
|
42,290 | 1,575 | 4.97 | 37,569 | 1,523 | 5.41 | ||||||||||||||||||
Other
|
4,455 | 8 | 0.24 | 12,076 | 19 | 0.21 | ||||||||||||||||||
Interest-earning assets
|
450,569 | 14,901 | 4.41 | 446,999 | 15,808 | 4.72 | ||||||||||||||||||
Noninterest-earning assets
|
51,608 | 54,117 | ||||||||||||||||||||||
Total assets
|
$ | 502,177 | $ | 501,116 | ||||||||||||||||||||
Liabilities and Shareholders' Equity:
|
||||||||||||||||||||||||
Interest-bearing demand deposits
|
$ | 134,178 | $ | 200 | 0.20 | % | $ | 138,216 | $ | 300 | 0.29 | % | ||||||||||||
Savings deposits
|
65,739 | 30 | 0.06 | 49,166 | 27 | 0.07 | ||||||||||||||||||
Certificates of deposit
|
120,392 | 801 | 0.89 | 139,843 | 1,316 | 1.25 | ||||||||||||||||||
Advances from Federal Home Loan Bank
|
6,165 | 29 | 0.63 | 7,408 | 247 | 4.45 | ||||||||||||||||||
Other
|
18,175 | 32 | 0.23 | 22,287 | 171 | 1.02 | ||||||||||||||||||
Interest-bearing liabilities
|
344,649 | 1,092 | 0.42 | 356,920 | 2,061 | 0.77 | ||||||||||||||||||
Noninterest-bearing demand deposits
|
93,073 | 81,350 | ||||||||||||||||||||||
Other noninterest-bearing liabilities
|
3,387 | 3,749 | ||||||||||||||||||||||
Total liabilities
|
441,109 | 442,019 | ||||||||||||||||||||||
Shareholders' equity
|
61,068 | 59,097 | ||||||||||||||||||||||
Total liabilities and Shareholders' Equity
|
$ | 502,177 | $ | 501,116 | ||||||||||||||||||||
Net interest income (tax-equivalent basis)- interest spread
|
13,809 | 3.99 | % | 13,747 | 3.95 | % | ||||||||||||||||||
Tax-equivalent adjustment (1)
|
(543 | ) | (526 | ) | ||||||||||||||||||||
Net interest income
|
$ | 13,266 | $ | 13,221 | ||||||||||||||||||||
Net interest income as a percentage of earning assets (tax-equivalent basis)
|
4.09 | % | 4.10 | % |
(1)
|
Adjusted to a fully tax-equivalent basis to facilitate comparison to the taxable interest-earning assets. The adjustment uses an incremental tax rate of 34% for the periods presented.
|
|
(2)
|
Includes the effect of unrealized gains or losses on securities.
|
|
(3)
|
Taxable securities include dividend income from Federal Home Loan Bank and Federal Reserve Bank stock.
|
(Dollars in thousands)
|
Nine Months Ended September 30,
|
|||||||||||
2013 Over 2012
|
||||||||||||
Total
|
Volume
|
Rate
|
||||||||||
Increase (decrease) in interest income (1)
|
||||||||||||
Loans (2)
|
$ | (841 | ) | $ | 283 | $ | (1,124 | ) | ||||
Taxable securities
|
(107 | ) | 52 | (159 | ) | |||||||
Nontaxable securities (2)
|
52 | 232 | (180 | ) | ||||||||
Other
|
(11 | ) | (15 | ) | 4 | |||||||
Net change in tax-equivalent interest income
|
(907 | ) | 552 | (1,459 | ) | |||||||
Increase (decrease) in interest expense (1)
|
||||||||||||
Interest-bearing demand deposits
|
(105 | ) | (8 | ) | (97 | ) | ||||||
Savings deposits
|
3 | 10 | (7 | ) | ||||||||
Certificates of deposit
|
(515 | ) | (166 | ) | (349 | ) | ||||||
Advances from Federal Home Loan Bank
|
(218 | ) | (36 | ) | (182 | ) | ||||||
Other
|
(134 | ) | (27 | ) | (107 | ) | ||||||
Net change in interest expense
|
(969 | ) | (227 | ) | (742 | ) | ||||||
Net change in tax-equivalent net interest income
|
$ | 62 | $ | 779 | $ | (717 | ) |
(1)
|
The volume variance is computed as the change in volume (average balance) multiplied by the previous year's interest rate. The rate variance is computed as the change in interest rate multiplied by the previous year's volume (average balance). The change in interest due to both volume and rate has been allocated to the volume and rate changes in proportion to the relationship of the absolute dollar amounts of the change in each.
|
|
(2)
|
Interest on nontaxable investment securities and loans has been adjusted to a fully tax-equivalent basis using an incremental tax rate of 34% for the periods presented.
|
(Dollars in thousands)
|
2013
|
2012
|
||||||||||||||
Charge-offs
|
Recoveries
|
Charge-offs
|
Recoveries
|
|||||||||||||
Agricultural
|
$ | 88 | $ | 5 | $ | — | $ | 4 | ||||||||
Commercial and industrial
|
54 | 258 | 377 | 45 | ||||||||||||
Consumer
|
286 | 145 | 261 | 177 | ||||||||||||
Real estate, commercial
|
166 | 55 | 518 | 213 | ||||||||||||
Real estate, residential
|
431 | 122 | 784 | 86 | ||||||||||||
$ | 1,025 | $ | 585 | $ | 1,940 | $ | 525 |
(Dollars in thousands)
|
||||||||
September 30,
|
December 31,
|
|||||||
2013
|
2012
|
|||||||
Loans accounted for on a nonaccrual basis
|
$ | 2,972 | $ | 2,331 | ||||
Accruing loans contractually past due 90 days or more as to principal or interest payments
|
95 | 30 | ||||||
Loans considered troubled debt restructurings
|
4,380 | 4,405 | ||||||
Total
|
$ | 7,447 | $ | 6,766 |
Total
|
||||||||||||
Risk-
|
||||||||||||
(Dollars in thousands)
|
Leverage
|
Tier 1
|
Based
|
|||||||||
Capital
|
Capital
|
Capital
|
||||||||||
Capital balances at September 30, 2013
|
$ | 44,415 | $ | 44,415 | $ | 48,418 | ||||||
Required regulatory capital to be considered "well capitalized"
|
24,405 | 20,390 | 33,983 | |||||||||
Capital in excess of "well capitalized" minimum
|
20,010 | 24,025 | 14,435 | |||||||||
Capital ratios at September 30, 2013
|
9.10 | % | 13.07 | % | 14.25 | % | ||||||
Regulatory capital ratios - minimum requirement to be considered "well capitalized"
|
5.00 | % | 6.00 | % | 10.00 | % |
Maximum
|
||||||||||||||||
Total Number of
|
Number of
|
|||||||||||||||
Shares Purchased
|
Shares that May
|
|||||||||||||||
Total Number
|
Average
|
as Part of a
|
Yet be
|
|||||||||||||
of Shares
|
Price Paid
|
Publicly
|
Purchased
|
|||||||||||||
Period
|
Purchased
|
per Share
|
Announced Plan
|
Under the Plan
|
||||||||||||
July 1 - July 31, 2013
|
— | $ | — | — | 88,920 | |||||||||||
August 1 - August 31, 2013(1)
|
4,000 | $ | 16.75 | 4,000 | 84,920 | |||||||||||
September 1 - September 30, 2013
|
— | $ | — | — | 84,920 | |||||||||||
Total for Quarter ended September 30, 2013
|
4,000 | $ | 16.75 | 4,000 | 84,920 |
(1) | On August 5, 2013, the Registrant purchased 4,000 shares of common stock for an aggregate cash price of $67,000. As of September 30, 2013, there are 84,920 shares remaining that may yet be purchased under approved plans or programs. The repurchase plan was adopted and announced on July 26, 2007. There is no stated expiration date. The plan authorized the repurchase of up to 100,000 shares. |
Exhibit
Number
|
Document
|
||
3.1
|
Amended and Restated Articles of Incorporation of the Registrant. Previously filed as an exhibit to the Registrant’s Form 10-Q Quarterly Report for the quarter ended June 30, 2008. Here incorporated by reference.
|
||
3.2
|
Bylaws of the Registrant as currently in effect and any amendments thereto. Previously filed as an exhibit to the Registrant’s Form 10-K Annual Report for the year ended December 31, 2008. Here incorporated by reference.
|
||
31.1
|
Certification of President and Chief Executive Officer under Section 302 of the Sarbanes-Oxley Act of 2002.
|
||
31.2
|
Certification of Treasurer under Section 302 of the Sarbanes-Oxley Act of 2002.
|
||
32.1
|
Certification pursuant to 18 U.S.C. § 1350.
|
||
101.1
|
Interactive Data File.
|
||
CHOICEONE FINANCIAL SERVICES, INC.
|
||
Date: November 13, 2013
|
/s/ James A. Bosserd
|
|
James A. Bosserd
|
||
President and Chief Executive Officer
|
||
(Principal Executive Officer)
|
||
Date: November 13, 2013
|
/s/ Thomas L. Lampen
|
|
Thomas L. Lampen
|
||
Treasurer
|
||
(Principal Financial and Accounting Officer)
|
Exhibit
Number
|
Document
|
||
3.1
|
Amended and Restated Articles of Incorporation of the Registrant. Previously filed as an exhibit to the Registrant’s Form 10-Q Quarterly Report for the quarter ended June 30, 2008. Here incorporated by reference.
|
||
3.2
|
Bylaws of the Registrant as currently in effect and any amendments thereto. Previously filed as an exhibit to the Registrant’s Form 10-K Annual Report for the year ended December 31, 2008. Here incorporated by reference.
|
||
31.1
|
|||
31.2
|
|||
32.1
|
|||
101.1
|
Interactive Data File.
|
1.
|
I have reviewed this quarterly report on Form 10-Q of ChoiceOne Financial Services, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;
|
4.
|
The Registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting or caused such internal control over financial reporting to be designed under our supervision to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and
|
5.
|
The Registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting.
|
Date: November 13, 2013
|
||
/s/ James A. Bosserd
|
||
James A. Bosserd
|
||
President and Chief Executive Officer
|
||
ChoiceOne Financial Services, Inc.
|
1.
|
I have reviewed this quarterly report on Form 10-Q of ChoiceOne Financial Services, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;
|
4.
|
The Registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting or caused such internal control over financial reporting to be designed under our supervision to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and
|
5.
|
The Registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting.
|
Date: November 13, 2013
|
||
/s/ Thomas L. Lampen
|
||
Thomas L. Lampen
|
||
Treasurer
|
||
ChoiceOne Financial Services, Inc.
|
Date: November 13, 2013
|
/s/ James A. Bosserd
|
|
James A. Bosserd
President and Chief Executive Officer
|
||
Date: November 13, 2013
|
/s/ Thomas L. Lampen
|
|
Thomas L. Lampen
Treasurer
|
Loans and Allowance for Loan Losses (Tables)
|
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans And Allowance For Loan Losses Tables | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of activity in the allowance for loan losses and balances in the loan portfolio | Activity in the allowance for loan losses and balances in the loan portfolio were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of the Bank's credit exposure | Information regarding the Bank’s credit exposure is as follows:
(Dollars in thousands)
Corporate Credit Exposure - Credit Risk Profile By Creditworthiness Category
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of troubled debt restructurings | The following schedule provides information on loans that were TDRs as of September 30, 2013 that were modified during the third quarter and nine months ended September 30, 2013:
There were no loans that were considered TDRs as of September 30, 2012 that were modified during the three months ended September 30, 2012. The following schedule provides information on loans that were TDRs as of September 30, 2012 that were modified during the nine months ended September 30, 2012:
The following schedule provides information on TDRs as of September 30, 2013 where the borrower was past due with respect to principal and/or interest for 30 days or more during the three months and nine months ended September 30, 2013 that had been modified during the year prior to the default:
The following schedule provides information on TDRs as of September 30, 2012 where the borrower was past due with respect to principal and/or interest for 30 days or more during the three months and nine months ended September 30, 2012 that had been modified during the year prior to the default:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of loans individually evaluated and considered impaired | Impaired loans by loan category follow:
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of aging analysis of loans by loan category | An aging analysis of loans by loan category follows:
(Dollars in thousands)
|
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Schedule of nonaccrual loans by loan category | Nonaccrual loans by loan category follow:
(Dollars in thousands)
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