Virginia
|
|
54-1284688
|
(State of incorporation)
|
|
(I.R.S. Employer Identification No.)
|
628 Main Street, Danville, VA
|
|
24541
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Title of Each Class
|
|
Name of Exchange on Which Registered
|
Common Stock, $1 par value
|
|
NASDAQ Global Select Market
|
CROSS REFERENCE INDEX
|
||
|
|
|
PART I
|
|
PAGE
|
ITEM 1
|
||
ITEM 1A
|
||
ITEM 1B
|
Unresolved Staff Comments
|
None
|
ITEM 2
|
||
ITEM 3
|
||
ITEM 4
|
||
|
|
|
PART II
|
|
|
ITEM 5
|
||
ITEM 6
|
||
ITEM 7
|
||
ITEM 7A
|
||
ITEM 8
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
ITEM 9
|
Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
|
None
|
ITEM 9A
|
||
|
||
ITEM 9B
|
Other Information
|
None
|
|
|
|
PART III
|
|
|
ITEM 10
|
Directors, Executive Officers and Corporate Governance
|
*
|
ITEM 11
|
Executive Compensation
|
*
|
ITEM 12
|
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
|
*
|
ITEM 13
|
Certain Relationships and Related Transactions, and Director Independence
|
*
|
ITEM 14
|
Principal Accountant Fees and Services
|
*
|
|
|
|
PART IV
|
|
|
ITEM 15
|
||
ITEM 16
|
•
|
Financial market volatility including the level of interest rates could affect the values of financial instruments and the amount of net interest income earned;
|
•
|
General economic or business conditions, either nationally or in the market areas in which the Company does business, may be less favorable than expected, resulting in deteriorating credit quality, reduced demand for credit, or a weakened ability to generate deposits;
|
•
|
Competition among financial institutions may increase and competitors may have greater financial resources and develop products and technology that enable those competitors to compete more successfully than the Company;
|
•
|
Businesses that the Company is engaged in may be adversely affected by legislative or regulatory changes, including changes in accounting standards;
|
•
|
The ability to retain key personnel;
|
•
|
The failure of assumptions underlying the allowance for loan losses; and
|
•
|
Risks associated with mergers, acquisitions, and other expansion activities.
|
Name
|
|
Age
|
|
Position
|
Jeffrey V. Haley
|
|
56
|
|
President and Chief Executive Officer of the Company and Bank since January 2013; prior thereto, President of the Company and Chief Executive Officer of the Bank since January 2012; prior thereto, Executive Vice President of the Company from June 2010 to December 2011; prior thereto, Senior Vice President of the Company from July 2008 to May 2010; President of the Bank since June 2010; prior thereto, Executive Vice President of the Bank, as well as President of Trust and Financial Services from July 2008 to May 2010; prior thereto, Executive Vice President and Chief Operating Officer of the Bank from November 2005 to June 2007.
|
William W. Traynham
|
|
61
|
|
Executive Vice President, Chief Financial Officer, Treasurer and Secretary of the Company since January 2015. Executive Vice President, Chief Financial Officer, and Cashier of the Bank since April 2009.
|
H. Gregg Strader
|
|
58
|
|
Executive Vice President and Chief Banking Officer of the Company since January 2015. Executive Vice President and Chief Banking Officer of the Bank since January 2014. Executive Vice President of the Bank from June 2013 until December 2013. Executive Vice President and Chief Credit Officer of IBERIABANK Corporation from 2010 to June 2013.
|
R. Helm Dobbins
|
|
65
|
|
Executive Vice President and Chief Credit Officer of the Company since January 2015. Executive Vice President and Chief Credit Officer of the Bank since 2005.
|
Ramsey K. Hamadi
|
|
47
|
|
Executive Vice President of the Company since August 2016. Executive Vice President and Chief Administrative Officer of the Bank since January 2017. Executive Vice President of the Bank from July 2016 until December 2016. Executive Vice President and Chief Financial Officer for NewBridge Bancorp from April 2009 until March 2016.
|
|
|
Sales Price
|
|
Dividends
Declared
|
||||||||
2016
|
|
High
|
|
Low
|
|
Per Share
|
||||||
|
|
|
|
|
|
|
||||||
1st quarter
|
|
$
|
26.00
|
|
|
$
|
22.29
|
|
|
$
|
0.24
|
|
2nd quarter
|
|
27.69
|
|
|
24.36
|
|
|
0.24
|
|
|||
3rd quarter
|
|
28.50
|
|
|
24.87
|
|
|
0.24
|
|
|||
4th quarter
|
|
36.25
|
|
|
26.41
|
|
|
0.24
|
|
|||
|
|
|
|
|
|
|
|
$
|
0.96
|
|
||
|
|
|
|
|
|
|
||||||
|
|
Sales Price
|
|
Dividends
Declared
|
||||||||
2015
|
|
High
|
|
Low
|
|
Per Share
|
||||||
|
|
|
|
|
|
|
||||||
1st quarter
|
|
$
|
24.72
|
|
|
$
|
21.31
|
|
|
$
|
0.23
|
|
2nd quarter
|
|
24.31
|
|
|
21.68
|
|
|
0.23
|
|
|||
3rd quarter
|
|
24.28
|
|
|
21.88
|
|
|
0.23
|
|
|||
4th quarter
|
|
26.42
|
|
|
23.02
|
|
|
0.24
|
|
|||
|
|
|
|
|
|
|
|
$
|
0.93
|
|
|
December 31, 2016
|
||||||||
|
Number of Shares to be Issued Upon Exercise of Outstanding Options
|
|
Weighted-Average Per Share Exercise Price of Outstanding Options
|
|
Number of Shares Remaining Available for Future
Issuance Under Stock Compensation Plans
|
||||
Equity compensation plans approved by shareholders
|
58,411
|
|
|
$
|
24.37
|
|
|
120,568
|
|
Equity compensation plans not approved by shareholders
|
—
|
|
|
—
|
|
|
—
|
|
|
Total
|
58,411
|
|
|
$
|
24.37
|
|
|
120,568
|
|
American National Bankshares Inc.
|
|
Period Ending
|
||||||||||||||||||||||
Index
|
12/31/11
|
|
|
12/31/12
|
|
|
12/31/13
|
|
|
12/31/14
|
|
|
12/31/15
|
|
|
12/31/16
|
|
||||||
American National Bankshares Inc.
|
$
|
100.00
|
|
|
$
|
108.15
|
|
|
$
|
146.51
|
|
|
$
|
144.21
|
|
|
$
|
154.85
|
|
|
$
|
217.83
|
|
NASDAQ Composite
|
100.00
|
|
|
117.45
|
|
|
164.57
|
|
|
188.84
|
|
|
201.98
|
|
|
219.89
|
|
||||||
SNL Bank $1B-$5B
|
100.00
|
|
|
123.31
|
|
|
179.31
|
|
|
187.48
|
|
|
209.86
|
|
|
301.92
|
|
(1)
|
Return on average common equity is calculated by dividing net income available to common shareholders by average common equity.
|
(2)
|
Return on average tangible common equity is calculated by dividing net income available to common shareholders plus amortization of intangibles tax effected by average common equity less average intangibles.
|
(3)
|
The efficiency ratio is calculated by dividing noninterest expense excluding gains or losses on the sale of other real estate owned by net interest income including tax equivalent income on nontaxable loans and securities and excluding (a) gains or losses on securities and (b) gains or losses on sale of premises and equipment.
|
(4)
|
Tangible equity to tangible assets ratio is calculated by dividing period-end common equity less period-end intangibles by period-end assets less period-end intangibles.
|
•
|
The present value of expected future cash flows discounted at the loan's effective interest rate. The effective interest rate on a loan is the rate of return implicit in the loan (that is, the contractual interest rate adjusted for any net
deferred loan fees or costs and any premium or discount existing at the origination or acquisition of the loan);
|
•
|
The loan's observable market price, or
|
•
|
The fair value of the collateral, net of estimated costs to dispose, if the loan is collateral dependent.
|
|
Year Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Efficiency Ratio
|
|
|
|
|
|
||||||
Noninterest expense
|
$
|
39,801
|
|
|
$
|
40,543
|
|
|
$
|
34,558
|
|
Add/Subtract: loss/(gain) on sale OREO
|
(228
|
)
|
|
99
|
|
|
(2
|
)
|
|||
|
$
|
39,573
|
|
|
$
|
40,642
|
|
|
$
|
34,556
|
|
|
|
|
|
|
|
||||||
Net interest income
|
$
|
49,854
|
|
|
$
|
49,265
|
|
|
$
|
41,725
|
|
Tax equivalent adjustment
|
1,846
|
|
|
2,014
|
|
|
2,088
|
|
|||
Noninterest income
|
13,505
|
|
|
13,287
|
|
|
11,176
|
|
|||
Subtract: gain on securities
|
(836
|
)
|
|
(867
|
)
|
|
(505
|
)
|
|||
Add/Subtract: (gain)/loss on sale of fixed assets
|
9
|
|
|
(11
|
)
|
|
10
|
|
|||
|
$
|
64,378
|
|
|
$
|
63,688
|
|
|
$
|
54,494
|
|
|
|
|
|
|
|
||||||
Efficiency ratio
|
61.47
|
%
|
|
63.81
|
%
|
|
63.41
|
%
|
|
Year Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Reconciliation of Net Interest Income to Tax-Equivalent Net Interest Income
|
|
|
|
|
|
||||||
Non-GAAP measures:
|
|
|
|
|
|
||||||
Interest income - loans
|
$
|
48,224
|
|
|
$
|
46,985
|
|
|
$
|
39,298
|
|
Interest income - investments and other
|
9,792
|
|
|
10,198
|
|
|
10,245
|
|
|||
Interest expense - deposits
|
(5,103
|
)
|
|
(4,811
|
)
|
|
(4,654
|
)
|
|||
Interest expense - customer repurchase agreements
|
(5
|
)
|
|
(9
|
)
|
|
(7
|
)
|
|||
Interest expense - other short-term borrowings
|
(5
|
)
|
|
—
|
|
|
(2
|
)
|
|||
Interest expense - long-term borrowings
|
(1,203
|
)
|
|
(1,084
|
)
|
|
(1,067
|
)
|
|||
Total net interest income
|
$
|
51,700
|
|
|
$
|
51,279
|
|
|
$
|
43,813
|
|
Less non-GAAP measures:
|
|
|
|
|
|
||||||
Tax benefit realized on non-taxable interest income - loans
|
$
|
(253
|
)
|
|
$
|
(125
|
)
|
|
$
|
(41
|
)
|
Tax benefit realized on non-taxable interest income - municipal securities
|
(1,593
|
)
|
|
(1,889
|
)
|
|
(2,047
|
)
|
|||
GAAP measures
|
$
|
49,854
|
|
|
$
|
49,265
|
|
|
$
|
41,725
|
|
|
Average Balance
|
|
Interest Income/Expense
|
|
Average Yield/Rate
|
|||||||||||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2016
|
|
2015
|
|
2014
|
|
2016
|
|
2015
|
|
2014
|
|||||||||||||||
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial
|
$
|
198,326
|
|
|
$
|
156,646
|
|
|
$
|
122,434
|
|
|
$
|
7,856
|
|
|
$
|
6,893
|
|
|
$
|
5,436
|
|
|
3.96
|
%
|
|
4.40
|
%
|
|
4.44
|
%
|
Real estate
|
859,721
|
|
|
809,545
|
|
|
677,633
|
|
|
39,763
|
|
|
39,362
|
|
|
33,508
|
|
|
4.63
|
|
|
4.86
|
|
|
4.94
|
|
||||||
Consumer
|
5,230
|
|
|
9,669
|
|
|
4,792
|
|
|
605
|
|
|
730
|
|
|
354
|
|
|
11.57
|
|
|
7.55
|
|
|
7.39
|
|
||||||
Total loans
|
1,063,277
|
|
|
975,860
|
|
|
804,859
|
|
|
48,224
|
|
|
46,985
|
|
|
39,298
|
|
|
4.54
|
|
|
4.81
|
|
|
4.88
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Federal agencies and GSEs
|
96,009
|
|
|
88,384
|
|
|
74,390
|
|
|
1,674
|
|
|
1,364
|
|
|
852
|
|
|
1.74
|
|
|
1.54
|
|
|
1.15
|
|
||||||
Mortgage-backed and CMOs
|
79,720
|
|
|
61,741
|
|
|
61,377
|
|
|
1,635
|
|
|
1,346
|
|
|
1,453
|
|
|
2.05
|
|
|
2.18
|
|
|
2.37
|
|
||||||
State and municipal
|
160,279
|
|
|
183,208
|
|
|
187,595
|
|
|
5,647
|
|
|
6,746
|
|
|
7,307
|
|
|
3.52
|
|
|
3.68
|
|
|
3.90
|
|
||||||
Other securities
|
15,953
|
|
|
15,783
|
|
|
15,106
|
|
|
560
|
|
|
532
|
|
|
477
|
|
|
3.51
|
|
|
3.37
|
|
|
3.16
|
|
||||||
Total securities
|
351,961
|
|
|
349,116
|
|
|
338,468
|
|
|
9,516
|
|
|
9,988
|
|
|
10,089
|
|
|
2.70
|
|
|
2.86
|
|
|
2.98
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Federal funds sold
|
—
|
|
|
5,230
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
0.11
|
|
|
—
|
|
||||||
Deposits in other banks
|
55,410
|
|
|
61,280
|
|
|
52,768
|
|
|
276
|
|
|
204
|
|
|
156
|
|
|
0.50
|
|
|
0.33
|
|
|
0.30
|
|
||||||
Total interest earning assets
|
1,470,648
|
|
|
1,391,486
|
|
|
1,196,095
|
|
|
58,016
|
|
|
57,183
|
|
|
49,543
|
|
|
3.94
|
|
|
4.11
|
|
|
4.14
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Nonearning assets
|
127,501
|
|
|
132,280
|
|
|
116,377
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total assets
|
$
|
1,598,149
|
|
|
$
|
1,523,766
|
|
|
$
|
1,312,472
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Demand
|
$
|
216,521
|
|
|
$
|
223,825
|
|
|
$
|
183,994
|
|
|
99
|
|
|
82
|
|
|
71
|
|
|
0.05
|
|
|
0.04
|
|
|
0.04
|
|
|||
Money market
|
239,262
|
|
|
196,828
|
|
|
177,046
|
|
|
432
|
|
|
260
|
|
|
232
|
|
|
0.18
|
|
|
0.13
|
|
|
0.13
|
|
||||||
Savings
|
118,144
|
|
|
109,697
|
|
|
88,629
|
|
|
47
|
|
|
53
|
|
|
47
|
|
|
0.04
|
|
|
0.05
|
|
|
0.05
|
|
||||||
Time
|
396,801
|
|
|
404,366
|
|
|
368,712
|
|
|
4,525
|
|
|
4,416
|
|
|
4,304
|
|
|
1.14
|
|
|
1.09
|
|
|
1.17
|
|
||||||
Total deposits
|
970,728
|
|
|
934,716
|
|
|
818,381
|
|
|
5,103
|
|
|
4,811
|
|
|
4,654
|
|
|
0.53
|
|
|
0.51
|
|
|
0.57
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Customer repurchase agreements
|
46,832
|
|
|
48,105
|
|
|
43,724
|
|
|
5
|
|
|
9
|
|
|
7
|
|
|
0.01
|
|
|
0.02
|
|
|
0.02
|
|
||||||
Other short-term borrowings
|
656
|
|
|
14
|
|
|
701
|
|
|
5
|
|
|
—
|
|
|
2
|
|
|
0.76
|
|
|
0.36
|
|
|
0.29
|
|
||||||
Long-term borrowings
|
37,640
|
|
|
37,515
|
|
|
37,398
|
|
|
1,203
|
|
|
1,084
|
|
|
1,067
|
|
|
3.20
|
|
|
2.89
|
|
|
2.85
|
|
||||||
Total interest bearing liabilities
|
1,055,856
|
|
|
1,020,350
|
|
|
900,204
|
|
|
6,316
|
|
|
5,904
|
|
|
5,730
|
|
|
0.60
|
|
|
0.58
|
|
|
0.64
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Noninterest bearing demand deposits
|
330,315
|
|
|
297,483
|
|
|
234,149
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other liabilities
|
9,904
|
|
|
9,415
|
|
|
5,912
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Shareholders' equity
|
202,074
|
|
|
196,518
|
|
|
172,207
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total liabilities and shareholders' equity
|
$
|
1,598,149
|
|
|
$
|
1,523,766
|
|
|
$
|
1,312,472
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest rate spread
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.34
|
%
|
|
3.53
|
%
|
|
3.50
|
%
|
||||||
Net interest margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.52
|
%
|
|
3.69
|
%
|
|
3.66
|
%
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net interest income (taxable equivalent basis)
|
|
|
|
|
51,700
|
|
|
51,279
|
|
|
43,813
|
|
|
|
|
|
|
|
|
|||||||||||||
Less: Taxable equivalent adjustment
|
|
|
|
|
1,846
|
|
|
2,014
|
|
|
2,088
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
|
|
|
|
|
|
|
$
|
49,854
|
|
|
$
|
49,265
|
|
|
$
|
41,725
|
|
|
|
|
|
|
|
|
|
|
2016 vs. 2015
|
|
2015 vs. 2014
|
||||||||||||||||||||
|
Increase
|
|
Change
Attributable to
|
|
Increase
|
|
Change
Attributable to |
||||||||||||||||
Interest income
|
(Decrease)
|
|
Rate
|
|
Volume
|
|
(Decrease)
|
|
Rate
|
|
Volume
|
||||||||||||
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
$
|
963
|
|
|
$
|
(738
|
)
|
|
$
|
1,701
|
|
|
$
|
1,457
|
|
|
$
|
(49
|
)
|
|
$
|
1,506
|
|
Real estate
|
401
|
|
|
(1,972
|
)
|
|
2,373
|
|
|
5,854
|
|
|
(568
|
)
|
|
6,422
|
|
||||||
Consumer
|
(125
|
)
|
|
293
|
|
|
(418
|
)
|
|
376
|
|
|
8
|
|
|
368
|
|
||||||
Total loans
|
1,239
|
|
|
(2,417
|
)
|
|
3,656
|
|
|
7,687
|
|
|
(609
|
)
|
|
8,296
|
|
||||||
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Federal agencies and GSEs
|
310
|
|
|
186
|
|
|
124
|
|
|
512
|
|
|
332
|
|
|
180
|
|
||||||
Mortgage-backed and CMOs
|
289
|
|
|
(84
|
)
|
|
373
|
|
|
(107
|
)
|
|
(116
|
)
|
|
9
|
|
||||||
State and municipal
|
(1,099
|
)
|
|
(282
|
)
|
|
(817
|
)
|
|
(561
|
)
|
|
(393
|
)
|
|
(168
|
)
|
||||||
Other securities
|
28
|
|
|
22
|
|
|
6
|
|
|
55
|
|
|
33
|
|
|
22
|
|
||||||
Total securities
|
(472
|
)
|
|
(158
|
)
|
|
(314
|
)
|
|
(101
|
)
|
|
(144
|
)
|
|
43
|
|
||||||
Federal funds sold
|
(6
|
)
|
|
6
|
|
|
(12
|
)
|
|
6
|
|
|
6
|
|
|
—
|
|
||||||
Deposits in other banks
|
72
|
|
|
93
|
|
|
(21
|
)
|
|
48
|
|
|
21
|
|
|
27
|
|
||||||
Total interest income
|
833
|
|
|
(2,476
|
)
|
|
3,309
|
|
|
7,640
|
|
|
(726
|
)
|
|
8,366
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Demand
|
17
|
|
|
20
|
|
|
(3
|
)
|
|
11
|
|
|
(4
|
)
|
|
15
|
|
||||||
Money market
|
172
|
|
|
108
|
|
|
64
|
|
|
28
|
|
|
2
|
|
|
26
|
|
||||||
Savings
|
(6
|
)
|
|
(10
|
)
|
|
4
|
|
|
6
|
|
|
(4
|
)
|
|
10
|
|
||||||
Time
|
109
|
|
|
193
|
|
|
(84
|
)
|
|
112
|
|
|
(288
|
)
|
|
400
|
|
||||||
Total deposits
|
292
|
|
|
311
|
|
|
(19
|
)
|
|
157
|
|
|
(294
|
)
|
|
451
|
|
||||||
Customer repurchase agreements
|
(4
|
)
|
|
(4
|
)
|
|
—
|
|
|
2
|
|
|
1
|
|
|
1
|
|
||||||
Other borrowings
|
124
|
|
|
101
|
|
|
23
|
|
|
15
|
|
|
31
|
|
|
(16
|
)
|
||||||
Total interest expense
|
412
|
|
|
408
|
|
|
4
|
|
|
174
|
|
|
(262
|
)
|
|
436
|
|
||||||
Net interest income
|
$
|
421
|
|
|
$
|
(2,884
|
)
|
|
$
|
3,305
|
|
|
$
|
7,466
|
|
|
$
|
(464
|
)
|
|
$
|
7,930
|
|
|
Years Ended December 31,
|
|||||||||||||
|
(Dollars in thousands)
|
|||||||||||||
|
2016
|
|
2015
|
|
$ Change
|
|
% Change
|
|||||||
Noninterest income:
|
|
|
|
|
|
|
|
|||||||
Trust fees
|
$
|
3,791
|
|
|
$
|
3,935
|
|
|
$
|
(144
|
)
|
|
(3.7
|
)%
|
Service charges on deposit accounts
|
2,048
|
|
|
2,066
|
|
|
(18
|
)
|
|
(0.9
|
)
|
|||
Other fees and commissions
|
2,680
|
|
|
2,377
|
|
|
303
|
|
|
12.7
|
|
|||
Mortgage banking income
|
1,713
|
|
|
1,320
|
|
|
393
|
|
|
29.8
|
|
|||
Securities gains, net
|
836
|
|
|
867
|
|
|
(31
|
)
|
|
(3.6
|
)
|
|||
Brokerage fees
|
843
|
|
|
946
|
|
|
(103
|
)
|
|
(10.9
|
)
|
|||
Income from Small Business Investment Companies
|
463
|
|
|
912
|
|
|
(449
|
)
|
|
(49.2
|
)
|
|||
Other
|
1,131
|
|
|
864
|
|
|
267
|
|
|
30.9
|
|
|||
Total noninterest income
|
$
|
13,505
|
|
|
$
|
13,287
|
|
|
$
|
218
|
|
|
1.6
|
%
|
|
Years Ended December 31,
|
|||||||||||||
|
(Dollars in thousands)
|
|||||||||||||
|
2015
|
|
2014
|
|
$ Change
|
|
% Change
|
|||||||
Noninterest income:
|
|
|
|
|
|
|
|
|||||||
Trust fees
|
$
|
3,935
|
|
|
$
|
4,196
|
|
|
$
|
(261
|
)
|
|
(6.2
|
)%
|
Service charges on deposit accounts
|
2,066
|
|
|
1,735
|
|
|
331
|
|
|
19.1
|
|
|||
Other fees and commissions
|
2,377
|
|
|
1,903
|
|
|
474
|
|
|
24.9
|
|
|||
Mortgage banking income
|
1,320
|
|
|
1,126
|
|
|
194
|
|
|
17.2
|
|
|||
Securities gains, net
|
867
|
|
|
505
|
|
|
362
|
|
|
71.7
|
|
|||
Brokerage fees
|
946
|
|
|
643
|
|
|
303
|
|
|
47.1
|
|
|||
Income from Small Business Investment Companies
|
912
|
|
|
176
|
|
|
736
|
|
|
418.2
|
|
|||
Other
|
864
|
|
|
892
|
|
|
(28
|
)
|
|
(3.1
|
)
|
|||
Total noninterest income
|
$
|
13,287
|
|
|
$
|
11,176
|
|
|
$
|
2,111
|
|
|
18.9
|
%
|
|
Years Ended December 31,
|
|||||||||||||
|
(Dollars in thousands)
|
|||||||||||||
|
2016
|
|
2015
|
|
$ Change
|
|
% Change
|
|||||||
Noninterest Expense:
|
|
|
|
|
|
|
|
|||||||
Salaries
|
$
|
17,568
|
|
|
$
|
16,554
|
|
|
$
|
1,014
|
|
|
6.1
|
%
|
Employee benefits
|
4,264
|
|
|
4,311
|
|
|
(47
|
)
|
|
(1.1
|
)
|
|||
Occupancy and equipment
|
4,246
|
|
|
4,425
|
|
|
(179
|
)
|
|
(4.0
|
)
|
|||
FDIC assessment
|
647
|
|
|
750
|
|
|
(103
|
)
|
|
(13.7
|
)
|
|||
Bank franchise tax
|
995
|
|
|
898
|
|
|
97
|
|
|
10.8
|
|
|||
Core deposit intangible amortization
|
964
|
|
|
1,201
|
|
|
(237
|
)
|
|
(19.7
|
)
|
|||
Data processing
|
1,828
|
|
|
1,725
|
|
|
103
|
|
|
6.0
|
|
|||
Software
|
1,143
|
|
|
1,158
|
|
|
(15
|
)
|
|
(1.3
|
)
|
|||
Other real estate owned, net
|
336
|
|
|
99
|
|
|
237
|
|
|
239.4
|
|
|||
Merger related expenses
|
—
|
|
|
1,998
|
|
|
(1,998
|
)
|
|
(100.0
|
)
|
|||
Other
|
7,810
|
|
|
7,424
|
|
|
386
|
|
|
5.2
|
|
|||
Total noninterest expense
|
$
|
39,801
|
|
|
$
|
40,543
|
|
|
$
|
(742
|
)
|
|
(1.8
|
)%
|
|
|
|
|
|
|
|
|
|
Years Ended December 31,
|
|||||||||||||
|
(Dollars in thousands)
|
|||||||||||||
|
2015
|
|
2014
|
|
$ Change
|
|
% Change
|
|||||||
Noninterest Expense:
|
|
|
|
|
|
|
|
|||||||
Salaries
|
$
|
16,554
|
|
|
$
|
14,688
|
|
|
$
|
1,866
|
|
|
12.7
|
%
|
Employee benefits
|
4,311
|
|
|
2,988
|
|
|
1,323
|
|
|
44.3
|
|
|||
Occupancy and equipment
|
4,425
|
|
|
3,727
|
|
|
698
|
|
|
18.7
|
|
|||
FDIC assessment
|
750
|
|
|
647
|
|
|
103
|
|
|
15.9
|
|
|||
Bank franchise tax
|
898
|
|
|
901
|
|
|
(3
|
)
|
|
NM
|
|
|||
Core deposit intangible amortization
|
1,201
|
|
|
1,114
|
|
|
87
|
|
|
7.8
|
|
|||
Data processing
|
1,725
|
|
|
1,448
|
|
|
277
|
|
|
19.1
|
|
|||
Software
|
1,158
|
|
|
1,019
|
|
|
139
|
|
|
13.6
|
|
|||
Other real estate owned, net
|
99
|
|
|
240
|
|
|
(141
|
)
|
|
(58.8
|
)
|
|||
Merger related expenses
|
1,998
|
|
|
780
|
|
|
1,218
|
|
|
156.2
|
|
|||
Other
|
7,424
|
|
|
7,006
|
|
|
418
|
|
|
6.0
|
|
|||
Total noninterest expense
|
$
|
40,543
|
|
|
$
|
34,558
|
|
|
$
|
5,985
|
|
|
17.3
|
%
|
NM - Not meaningful
|
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
(Gain) loss on sale of OREO
|
$
|
72
|
|
|
$
|
(185
|
)
|
|
$
|
(66
|
)
|
OREO valuation adjustments
|
156
|
|
|
86
|
|
|
68
|
|
|||
OREO related expense
|
108
|
|
|
198
|
|
|
238
|
|
|||
|
$
|
336
|
|
|
$
|
99
|
|
|
$
|
240
|
|
|
|
|
|
|
December 31, 2016
|
|
|
||||||||
|
Income Statement Effect
|
|
Premium/(Discount) Balance on December 31, 2015
|
|
Accretion (Amortization) For the year ended
|
|
Remaining Premium/ (Discount) Balance
|
|
|
||||||
Interest income/(expense):
|
|
|
|
|
|
|
|
|
|
||||||
Acquired performing loans
|
Income
|
|
$
|
(3,061
|
)
|
|
$
|
1,085
|
|
|
$
|
(1,976
|
)
|
|
|
Purchased impaired loans
|
Income
|
|
(7,066
|
)
|
|
1,357
|
|
|
(5,709
|
)
|
|
(1)
|
|||
FHLB advances
|
Expense
|
|
42
|
|
|
(22
|
)
|
|
20
|
|
|
|
|||
Junior subordinated debt
|
Expense
|
|
1,761
|
|
|
(102
|
)
|
|
1,659
|
|
|
|
|||
Net Interest Income
|
|
|
|
|
|
2,318
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
||||||
Non-interest (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Amortization of core deposit intangible
|
Expense
|
|
$
|
2,683
|
|
|
(964
|
)
|
|
$
|
1,719
|
|
|
|
|
Net non-interest expense
|
|
|
|
|
|
(964
|
)
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
||||||
Change in pretax income
|
|
|
|
|
|
$
|
1,354
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
||||||||||
|
Income Statement Effect
|
|
Premium/(Discount) Balance on December 31, 2014
|
|
Additions for the year ended
|
|
Accretion (Amortization) For the year ended
|
|
Remaining Premium/ (Discount) Balance
|
|
|
||||||||
Interest income/(expense):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Acquired performing loans
|
Income
|
|
$
|
(3,358
|
)
|
|
$
|
(1,279
|
)
|
|
$
|
1,576
|
|
|
$
|
(3,061
|
)
|
|
|
Purchased impaired loans
|
Income
|
|
(3,424
|
)
|
|
(5,097
|
)
|
|
1,455
|
|
|
(7,066
|
)
|
|
(1)
|
||||
Time deposits
|
Income
|
|
—
|
|
|
(288
|
)
|
|
288
|
|
|
—
|
|
|
|
||||
Time deposits - brokered
|
Income
|
|
—
|
|
|
(2
|
)
|
|
2
|
|
|
—
|
|
|
|
||||
FHLB advances
|
Expense
|
|
65
|
|
|
—
|
|
|
(23
|
)
|
|
42
|
|
|
|
||||
Junior subordinated debt
|
Expense
|
|
1,862
|
|
|
—
|
|
|
(101
|
)
|
|
1,761
|
|
|
|
||||
Net Interest Income
|
|
|
|
|
|
(6,666
|
)
|
|
3,197
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Non-interest (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortization of core deposit intangible
|
Expense
|
|
$
|
2,045
|
|
|
1,839
|
|
|
(1,201
|
)
|
|
$
|
2,683
|
|
|
|
||
Net non-interest expense
|
|
|
|
|
|
1,839
|
|
|
(1,201
|
)
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Change in pretax income
|
|
|
|
|
|
$
|
(4,827
|
)
|
|
$
|
1,996
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2014
|
|
|
||||||||
|
Income Statement Effect
|
|
Premium/(Discount) Balance on December 31, 2013
|
|
Accretion (Amortization) For the year ended
|
|
Remaining Premium/ (Discount) Balance
|
|
|
||||||
Interest income/(expense):
|
|
|
|
|
|
|
|
|
|
||||||
Acquired performing loans
|
Income
|
|
$
|
(5,010
|
)
|
|
$
|
1,608
|
|
|
$
|
(3,358
|
)
|
|
(1)
|
Purchased impaired loans
|
Income
|
|
(4,371
|
)
|
|
947
|
|
|
(3,424
|
)
|
|
(2)
|
|||
FHLB advances
|
Expense
|
|
87
|
|
|
(22
|
)
|
|
65
|
|
|
|
|||
Junior subordinated debt
|
Expense
|
|
1,964
|
|
|
(102
|
)
|
|
1,862
|
|
|
|
|||
Net Interest Income
|
|
|
|
|
|
2,431
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
||||||
Non-interest (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Amortization of core deposit intangible
|
Expense
|
|
$
|
2,969
|
|
|
(924
|
)
|
|
$
|
2,045
|
|
|
|
|
Net non-interest expense
|
|
|
|
|
|
(924
|
)
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
||||||
Change in pretax income
|
|
|
|
|
|
$
|
1,507
|
|
|
|
|
|
|
For the Years Ended December 31,
|
2016
|
|
2015
|
|
2014
|
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
MC
|
MS
|
Total
|
|
MC
|
MS
|
Total
|
|
MC
|
MS
|
Total
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net interest income
|
$
|
1,450
|
|
$
|
868
|
|
$
|
2,318
|
|
|
$
|
2,268
|
|
$
|
929
|
|
$
|
3,197
|
|
|
$
|
2,431
|
|
$
|
—
|
|
$
|
2,431
|
|
Core deposit amortization
|
(717
|
)
|
(247
|
)
|
(964
|
)
|
|
(906
|
)
|
(295
|
)
|
(1,201
|
)
|
|
(924
|
)
|
—
|
|
(924
|
)
|
|||||||||
Total pretax income
|
$
|
733
|
|
$
|
621
|
|
$
|
1,354
|
|
|
$
|
1,362
|
|
$
|
634
|
|
$
|
1,996
|
|
|
$
|
1,507
|
|
$
|
—
|
|
$
|
1,507
|
|
|
December 31, 2016
|
|||||
|
Change in net interest income
|
|||||
Change in interest rates
|
Amount
|
|
Percent
|
|||
|
|
|
|
|||
Up 4.0%
|
$
|
6,565
|
|
|
12.3
|
%
|
Up 3.0%
|
5,114
|
|
|
9.5
|
|
|
Up 2.0%
|
3,548
|
|
|
6.6
|
|
|
Up 1.0%
|
1,813
|
|
|
3.4
|
|
|
Flat
|
—
|
|
|
—
|
|
|
Down 0.25%
|
(716
|
)
|
|
(1.3
|
)
|
|
Down 0.50%
|
(1,730
|
)
|
|
(3.2
|
)
|
|
December 31, 2016
|
|||||||||
Change in interest rates
|
Amount
|
|
$ Change
|
|
% Change
|
|||||
|
|
|
|
|
|
|||||
Up 4%
|
$
|
272,633
|
|
|
$
|
40,063
|
|
|
17.2
|
%
|
Up 3%
|
271,710
|
|
|
39,140
|
|
|
16.8
|
|
||
Up 2%
|
267,298
|
|
|
34,728
|
|
|
14.9
|
|
||
Up 1%
|
255,244
|
|
|
22,674
|
|
|
9.7
|
|
||
Flat
|
232,570
|
|
|
—
|
|
|
—
|
|
||
Down 0.25%
|
224,551
|
|
|
(8,019
|
)
|
|
(3.4
|
)
|
||
Down 0.50%
|
215,626
|
|
|
(16,944
|
)
|
|
(7.3
|
)
|
|
As of December 31,
|
|||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|||||||||||||||
|
Amortized
Cost
|
|
Taxable
Equivalent
Yield
|
|
Amortized
Cost
|
|
Taxable
Equivalent
Yield
|
|
Amortized
Cost
|
|
Taxable
Equivalent
Yield
|
|||||||||
Federal Agencies:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Within 1 year
|
$
|
9,392
|
|
|
1.16
|
%
|
|
$
|
10,027
|
|
|
0.56
|
%
|
|
$
|
1,004
|
|
|
1.44
|
%
|
1 to 5 years
|
27,039
|
|
|
1.39
|
|
|
34,105
|
|
|
1.37
|
|
|
56,195
|
|
|
1.05
|
|
|||
5 to 10 years
|
57,467
|
|
|
1.97
|
|
|
29,958
|
|
|
2.05
|
|
|
19,718
|
|
|
1.72
|
|
|||
Over 10 years
|
12,481
|
|
|
2.02
|
|
|
7,511
|
|
|
2.70
|
|
|
5,041
|
|
|
2.63
|
|
|||
Total
|
106,379
|
|
|
1.76
|
|
|
81,601
|
|
|
1.64
|
|
|
81,958
|
|
|
1.32
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Mortgage-backed:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Within 1 year
|
1,919
|
|
|
4.57
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
1 to 5 years
|
4,040
|
|
|
2.67
|
|
|
6,442
|
|
|
3.40
|
|
|
3,471
|
|
|
4.18
|
|
|||
5 to 10 years
|
15,242
|
|
|
2.29
|
|
|
15,841
|
|
|
2.44
|
|
|
17,567
|
|
|
2.42
|
|
|||
Over 10 years
|
58,716
|
|
|
1.99
|
|
|
48,237
|
|
|
2.12
|
|
|
35,251
|
|
|
2.39
|
|
|||
Total
|
79,917
|
|
|
2.15
|
|
|
70,520
|
|
|
2.51
|
|
|
56,289
|
|
|
2.51
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
State and Municipal:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Within 1 year
|
11,637
|
|
|
2.80
|
|
|
17,769
|
|
|
2.46
|
|
|
10,673
|
|
|
2.07
|
|
|||
1 to 5 years
|
73,558
|
|
|
3.26
|
|
|
77,385
|
|
|
3.28
|
|
|
76,279
|
|
|
2.94
|
|
|||
5 to 10 years
|
47,977
|
|
|
3.76
|
|
|
59,031
|
|
|
3.97
|
|
|
80,468
|
|
|
4.23
|
|
|||
Over 10 years
|
12,585
|
|
|
3.36
|
|
|
16,083
|
|
|
3.87
|
|
|
20,640
|
|
|
3.97
|
|
|||
Total
|
145,757
|
|
|
3.39
|
|
|
170,268
|
|
|
3.56
|
|
|
188,060
|
|
|
3.56
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Corporate Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Within 1 year
|
2,313
|
|
|
1.72
|
|
|
249.00
|
|
|
0.92
|
|
|
—
|
|
|
—
|
|
|||
1 to 5 years
|
4,279
|
|
|
1.85
|
|
|
7,914
|
|
|
1.81
|
|
|
7,916
|
|
|
1.83
|
|
|||
5 to 10 years
|
500
|
|
|
2.42
|
|
|
2,456
|
|
|
3
|
|
|
500
|
|
|
2
|
|
|||
Over 10 years
|
6,300
|
|
|
5.41
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total
|
13,392
|
|
|
3.53
|
|
|
10,619
|
|
|
2.08
|
|
|
8,416
|
|
|
1.86
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Preferred Stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
No maturity
|
—
|
|
|
—
|
|
|
1,000
|
|
|
6.00
|
|
|
1,000
|
|
|
6.00
|
|
|||
Total
|
—
|
|
|
—
|
|
|
1,000
|
|
|
6.00
|
|
|
1,000
|
|
|
6.00
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Common Stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
No maturity
|
1,288
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total
|
1,288
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total portfolio
|
$
|
346,733
|
|
|
2.60
|
%
|
|
$
|
334,008
|
|
|
2.75
|
%
|
|
$
|
335,723
|
|
|
2.80
|
%
|
|
As of December 31,
|
||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction and land development
|
$
|
114,258
|
|
|
$
|
72,968
|
|
|
$
|
50,863
|
|
|
$
|
41,822
|
|
|
$
|
48,812
|
|
Commercial real estate
|
510,960
|
|
|
430,186
|
|
|
391,472
|
|
|
364,616
|
|
|
355,433
|
|
|||||
Residential real estate
|
215,104
|
|
|
220,434
|
|
|
175,293
|
|
|
171,917
|
|
|
161,033
|
|
|||||
Home equity
|
110,751
|
|
|
98,449
|
|
|
91,075
|
|
|
87,797
|
|
|
91,313
|
|
|||||
Total real estate
|
951,073
|
|
|
822,037
|
|
|
708,703
|
|
|
666,152
|
|
|
656,591
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
208,717
|
|
|
177,481
|
|
|
126,981
|
|
|
122,553
|
|
|
126,192
|
|
|||||
Consumer
|
5,031
|
|
|
6,007
|
|
|
5,241
|
|
|
5,966
|
|
|
5,922
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total loans
|
$
|
1,164,821
|
|
|
$
|
1,005,525
|
|
|
$
|
840,925
|
|
|
$
|
794,671
|
|
|
$
|
788,705
|
|
|
As of December 31, 2016
|
|
Percentage Change
in Balance Since
December 31, 2015
|
||||||
Balance
|
|
Percentage
of Portfolio
|
|
||||||
Danville region
|
$
|
227,392
|
|
|
19.5
|
%
|
|
10.3
|
%
|
Central region
|
150,432
|
|
|
12.9
|
|
|
(4.6
|
)
|
|
Southside region
|
84,486
|
|
|
7.3
|
|
|
4.3
|
|
|
Eastern region
|
87,029
|
|
|
7.5
|
|
|
12.0
|
|
|
Franklin region
|
111,162
|
|
|
9.5
|
|
|
(8.7
|
)
|
|
Roanoke region
|
41,142
|
|
|
3.5
|
|
|
N/A
|
|
|
Alamance region
|
230,391
|
|
|
19.8
|
|
|
7.2
|
|
|
Guilford region
|
227,988
|
|
|
19.6
|
|
|
55.6
|
|
|
Winston-Salem region
|
4,799
|
|
|
0.4
|
|
|
N/A
|
|
|
|
|
|
|
|
|
||||
Total loans
|
$
|
1,164,821
|
|
|
100.0
|
%
|
|
15.8
|
%
|
|
Commercial
and
Industrial (1)
|
|
Construction
and Land
Development
|
|
Total
|
||||||
1 year or less
|
$
|
47,940
|
|
|
$
|
26,657
|
|
|
$
|
74,597
|
|
1 to 5 years (2)
|
111,506
|
|
|
56,134
|
|
|
167,640
|
|
|||
After 5 years (2)
|
49,271
|
|
|
31,467
|
|
|
80,738
|
|
|||
Total
|
$
|
208,717
|
|
|
$
|
114,258
|
|
|
$
|
322,975
|
|
(1)
|
Includes agricultural loans.
|
(2)
|
Of the loans due after one year, $147,520 have predetermined interest rates and $100,858 have floating or adjustable interest rates.
|
|
|
Year Ended December 31,
|
||||||||||||||||||
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||
Balance at beginning of period
|
|
$
|
12,601
|
|
|
$
|
12,427
|
|
|
$
|
12,600
|
|
|
$
|
12,118
|
|
|
$
|
10,529
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Charge-offs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Construction and land development
|
|
—
|
|
|
20
|
|
|
—
|
|
|
—
|
|
|
202
|
|
|||||
Commercial real estate
|
|
10
|
|
|
462
|
|
|
510
|
|
|
164
|
|
|
370
|
|
|||||
Residential real estate
|
|
21
|
|
|
15
|
|
|
121
|
|
|
213
|
|
|
579
|
|
|||||
Home equity
|
|
66
|
|
|
308
|
|
|
137
|
|
|
156
|
|
|
115
|
|
|||||
Total real estate
|
|
97
|
|
|
805
|
|
|
768
|
|
|
533
|
|
|
1,266
|
|
|||||
Commercial and industrial
|
|
40
|
|
|
175
|
|
|
101
|
|
|
129
|
|
|
748
|
|
|||||
Consumer
|
|
189
|
|
|
220
|
|
|
95
|
|
|
175
|
|
|
72
|
|
|||||
Total charge-offs
|
|
326
|
|
|
1,200
|
|
|
964
|
|
|
837
|
|
|
2,086
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Construction and land development
|
|
11
|
|
|
81
|
|
|
28
|
|
|
227
|
|
|
87
|
|
|||||
Commercial real estate
|
|
21
|
|
|
43
|
|
|
38
|
|
|
96
|
|
|
388
|
|
|||||
Residential real estate
|
|
53
|
|
|
121
|
|
|
126
|
|
|
179
|
|
|
252
|
|
|||||
Home equity
|
|
15
|
|
|
18
|
|
|
65
|
|
|
65
|
|
|
27
|
|
|||||
Total real estate
|
|
100
|
|
|
263
|
|
|
257
|
|
|
567
|
|
|
754
|
|
|||||
Commercial and industrial
|
|
40
|
|
|
32
|
|
|
51
|
|
|
335
|
|
|
707
|
|
|||||
Consumer
|
|
136
|
|
|
129
|
|
|
83
|
|
|
123
|
|
|
81
|
|
|||||
Total recoveries
|
|
276
|
|
|
424
|
|
|
391
|
|
|
1,025
|
|
|
1,542
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net charge-offs (recoveries)
|
|
50
|
|
|
776
|
|
|
573
|
|
|
(188
|
)
|
|
544
|
|
|||||
Provision for loan losses
|
|
250
|
|
|
950
|
|
|
400
|
|
|
294
|
|
|
2,133
|
|
|||||
Balance at end of period
|
|
$
|
12,801
|
|
|
$
|
12,601
|
|
|
$
|
12,427
|
|
|
$
|
12,600
|
|
|
$
|
12,118
|
|
|
Year Ended December 31,
|
|||||||||||||||||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|||||||||||||||||||||||||
|
Amount
|
|
%
|
|
Amount
|
|
%
|
|
Amount
|
|
%
|
|
Amount
|
|
%
|
|
Amount
|
|
%
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial
|
$
|
2,095
|
|
|
16.4
|
%
|
|
$
|
2,065
|
|
|
17.4
|
%
|
|
$
|
1,818
|
|
|
15.1
|
%
|
|
$
|
1,810
|
|
|
15.4
|
%
|
|
$
|
1,450
|
|
|
16.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial real estate
|
7,355
|
|
|
57.4
|
|
|
6,930
|
|
|
50.0
|
|
|
6,814
|
|
|
52.6
|
|
|
6,819
|
|
|
51.1
|
|
|
6,822
|
|
|
51.2
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Residential real estate
|
3,303
|
|
|
25.8
|
|
|
3,546
|
|
|
28.1
|
|
|
3,715
|
|
|
31.7
|
|
|
3,690
|
|
|
32.7
|
|
|
3,638
|
|
|
32.0
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Consumer
|
48
|
|
|
0.4
|
|
|
60
|
|
|
0.5
|
|
|
80
|
|
|
0.6
|
|
|
99
|
|
|
0.8
|
|
|
208
|
|
|
0.8
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Unallocated
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
182
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total
|
$
|
12,801
|
|
|
100.0
|
%
|
|
$
|
12,601
|
|
|
100.0
|
%
|
|
$
|
12,427
|
|
|
100.0
|
%
|
|
$
|
12,600
|
|
|
100.0
|
%
|
|
$
|
12,118
|
|
|
100.0
|
%
|
Asset Quality Ratios
|
||||||||||||||
|
As of or for the Years Ended December 31,
|
|||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|||||
Allowance to loans*
|
1.10
|
%
|
|
1.25
|
%
|
|
1.48
|
%
|
|
1.59
|
%
|
|
1.54
|
%
|
ASC 450/general allowance
|
1.17
|
|
|
1.40
|
|
|
1.55
|
|
|
1.75
|
|
|
1.98
|
|
Net charge-offs (recoveries) to year-end allowance
|
0.39
|
|
|
6.16
|
|
|
4.61
|
|
|
(1.49
|
)
|
|
4.49
|
|
Net charge-offs (recoveries) to average loans
|
0.00
|
|
|
0.08
|
|
|
0.07
|
|
|
(0.02
|
)
|
|
0.07
|
|
Nonperforming assets to total assets*
|
0.29
|
|
|
0.48
|
|
|
0.46
|
|
|
0.65
|
|
|
0.90
|
|
Nonperforming loans to loans*
|
0.30
|
|
|
0.52
|
|
|
0.49
|
|
|
0.64
|
|
|
0.67
|
|
Provision to net charge-offs (recoveries)
|
500.00
|
|
|
122.42
|
|
|
69.81
|
|
|
(156.38
|
)
|
|
392.10
|
|
Provision to average loans
|
0.02
|
|
|
0.10
|
|
|
0.05
|
|
|
0.04
|
|
|
0.26
|
|
Allowance to nonperforming loans*
|
360.39
|
|
|
242.09
|
|
|
302.21
|
|
|
248.47
|
|
|
227.95
|
|
|
As of December 31,
|
||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||
Nonaccrual loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate
|
$
|
2,928
|
|
|
$
|
5,022
|
|
|
$
|
4,111
|
|
|
$
|
5,060
|
|
|
$
|
5,261
|
|
Commercial
|
19
|
|
|
90
|
|
|
—
|
|
|
11
|
|
|
52
|
|
|||||
Agricultural
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Consumer
|
18
|
|
|
2
|
|
|
1
|
|
|
—
|
|
|
3
|
|
|||||
Total nonaccrual loans
|
2,965
|
|
|
5,114
|
|
|
4,112
|
|
|
5,071
|
|
|
5,316
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans past due 90 days and accruing interest:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Real estate
|
587
|
|
|
84
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Agricultural
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Consumer
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total past due loans
|
587
|
|
|
91
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total nonperforming loans
|
3,552
|
|
|
5,205
|
|
|
4,112
|
|
|
5,071
|
|
|
5,316
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Other real estate owned, net
|
1,328
|
|
|
2,184
|
|
|
2,119
|
|
|
3,422
|
|
|
6,193
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total nonperforming assets
|
$
|
4,880
|
|
|
$
|
7,389
|
|
|
$
|
6,231
|
|
|
$
|
8,493
|
|
|
$
|
11,509
|
|
|
As of December 31,
|
||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||
Accruing
|
$
|
2,059
|
|
|
$
|
1,171
|
|
|
$
|
989
|
|
|
$
|
958
|
|
|
$
|
499
|
|
On nonaccrual status
|
2,785
|
|
|
3,536
|
|
|
3,548
|
|
|
5,071
|
|
|
2,548
|
|
|||||
Total impaired loans
|
$
|
4,844
|
|
|
$
|
4,707
|
|
|
$
|
4,537
|
|
|
$
|
6,029
|
|
|
$
|
3,047
|
|
|
As of December 31,
|
||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||
Construction and land development
|
$
|
139
|
|
|
$
|
886
|
|
|
$
|
1,577
|
|
|
$
|
1,683
|
|
|
$
|
3,290
|
|
Farmland
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
236
|
|
|||||
1-4 family residential
|
653
|
|
|
643
|
|
|
382
|
|
|
1,400
|
|
|
1,090
|
|
|||||
Multifamily (5 or more) residential
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,012
|
|
|||||
Commercial real estate
|
536
|
|
|
655
|
|
|
160
|
|
|
339
|
|
|
565
|
|
|||||
|
$
|
1,328
|
|
|
$
|
2,184
|
|
|
$
|
2,119
|
|
|
$
|
3,422
|
|
|
$
|
6,193
|
|
|
Year Ended December 31,
|
|||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|||||||||||||||
|
Average
Balance
|
|
Rate
|
|
Average
Balance |
|
Rate
|
|
Average
Balance |
|
Rate
|
|||||||||
Noninterest bearing deposits
|
$
|
330,315
|
|
|
—
|
%
|
|
$
|
297,483
|
|
|
—
|
%
|
|
$
|
234,149
|
|
|
—
|
%
|
Interest bearing accounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
NOW accounts
|
$
|
216,521
|
|
|
0.05
|
%
|
|
$
|
223,825
|
|
|
0.04
|
%
|
|
$
|
183,994
|
|
|
0.04
|
%
|
Money market
|
239,262
|
|
|
0.18
|
|
|
196,828
|
|
|
0.13
|
|
|
177,046
|
|
|
0.13
|
|
|||
Savings
|
118,144
|
|
|
0.04
|
|
|
109,697
|
|
|
0.05
|
|
|
88,629
|
|
|
0.05
|
|
|||
Time
|
396,801
|
|
|
1.14
|
|
|
404,366
|
|
|
1.09
|
|
|
368,712
|
|
|
1.17
|
|
|||
Total interest bearing deposits
|
$
|
970,728
|
|
|
0.53
|
%
|
|
$
|
934,716
|
|
|
0.51
|
%
|
|
$
|
818,381
|
|
|
0.57
|
%
|
Average total deposits
|
$
|
1,301,043
|
|
|
0.40
|
%
|
|
$
|
1,232,199
|
|
|
0.39
|
%
|
|
$
|
1,052,530
|
|
|
0.44
|
%
|
|
December 31, 2016
|
||
3 months or less
|
$
|
50,256
|
|
Over 3 through 6 months
|
12,636
|
|
|
Over 6 through 12 months
|
29,221
|
|
|
Over 12 months
|
152,271
|
|
|
Total
|
$
|
244,384
|
|
|
December 31, 2016
|
||
3 months or less
|
$
|
18,704
|
|
Over 3 through 6 months
|
4,653
|
|
|
Over 6 through 12 months
|
12,391
|
|
|
Over 12 months
|
106,779
|
|
|
Total
|
$
|
142,527
|
|
|
|
As of December 31,
|
||||||
|
|
2016
|
|
2015
|
||||
|
|
|
|
|
||||
Customer repurchase agreements
|
|
$
|
39,166
|
|
|
$
|
40,611
|
|
FHLB overnight borrowings
|
|
20,000
|
|
|
—
|
|
||
Total
|
|
$
|
59,166
|
|
|
$
|
40,611
|
|
|
|
|
|
|
||||
Weighted interest rate
|
|
0.29
|
%
|
|
0.02
|
%
|
||
|
|
|
|
|
||||
Average for the year ended:
|
|
|
|
|
|
|
||
Outstanding
|
|
$
|
47,488
|
|
|
$
|
48,119
|
|
Interest rate
|
|
0.02
|
%
|
|
0.02
|
%
|
||
|
|
|
|
|
||||
Maximum month-end outstanding
|
|
$
|
59,166
|
|
|
$
|
53,664
|
|
|
As of December 31,
|
|||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|||||
Risk-Based Capital Ratios:
|
|
|
|
|
|
|
|
|
|
|||||
Common equity tier 1 capital ratio
|
11.77
|
%
|
|
12.88
|
%
|
|
NA
|
|
|
NA
|
|
|
NA
|
|
Tier 1 capital ratio
|
13.83
|
%
|
|
15.23
|
%
|
|
16.59
|
%
|
|
16.88
|
%
|
|
15.75
|
%
|
Total capital ratio
|
14.81
|
%
|
|
16.34
|
%
|
|
17.86
|
%
|
|
18.14
|
%
|
|
17.00
|
%
|
|
|
|
|
|
|
|
|
|
|
|||||
Leverage Capital Ratios:
|
|
|
|
|
|
|
|
|
|
|||||
Tier 1 leverage ratio
|
11.67
|
%
|
|
12.05
|
%
|
|
12.16
|
%
|
|
11.81
|
%
|
|
11.27
|
%
|
|
Payments Due By Period
|
||||||||||||||||||
|
Total
|
|
Under 1 Year
|
|
1-3 Years
|
|
3-5 Years
|
|
More than
5 years
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Time deposits
|
$
|
378,855
|
|
|
$
|
160,219
|
|
|
$
|
89,170
|
|
|
$
|
124,759
|
|
|
$
|
4,707
|
|
Repurchase agreements
|
39,166
|
|
|
39,166
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
FHLB borrowings
|
29,980
|
|
|
20,000
|
|
|
9,980
|
|
|
—
|
|
|
—
|
|
|||||
Operating leases
|
1,755
|
|
|
878
|
|
|
806
|
|
|
49
|
|
|
22
|
|
|||||
Junior subordinated debt
|
27,724
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27,724
|
|
|
December 31,
|
||||||
Off-Balance Sheet Commitments
|
2016
|
|
2015
|
||||
|
|
|
|
||||
Commitments to extend credit
|
$
|
345,803
|
|
|
$
|
301,360
|
|
Standby letters of credit
|
4,088
|
|
|
4,286
|
|
||
Mortgage loan rate-lock commitments
|
12,839
|
|
|
5,365
|
|
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
|
|
||||||||||
2016
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Total
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest income
|
$
|
14,171
|
|
|
$
|
13,769
|
|
|
$
|
14,063
|
|
|
$
|
14,167
|
|
|
$
|
56,170
|
|
Interest expense
|
1,587
|
|
|
1,609
|
|
|
1,599
|
|
|
1,521
|
|
|
6,316
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income
|
12,584
|
|
|
12,160
|
|
|
12,464
|
|
|
12,646
|
|
|
49,854
|
|
|||||
Provision for loan losses
|
50
|
|
|
50
|
|
|
100
|
|
|
50
|
|
|
250
|
|
|||||
Net interest income after provision
for loan losses
|
12,534
|
|
|
12,110
|
|
|
12,364
|
|
|
12,596
|
|
|
49,604
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest income
|
3,297
|
|
|
3,367
|
|
|
3,120
|
|
|
3,721
|
|
|
13,505
|
|
|||||
Noninterest expense
|
9,918
|
|
|
9,656
|
|
|
9,867
|
|
|
10,360
|
|
|
39,801
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Income before income taxes
|
5,913
|
|
|
5,821
|
|
|
5,617
|
|
|
5,957
|
|
|
23,308
|
|
|||||
Income taxes
|
1,785
|
|
|
1,733
|
|
|
1,654
|
|
|
1,835
|
|
|
7,007
|
|
|||||
Net income
|
$
|
4,128
|
|
|
$
|
4,088
|
|
|
$
|
3,963
|
|
|
$
|
4,122
|
|
|
$
|
16,301
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income - basic
|
$
|
0.48
|
|
|
$
|
0.47
|
|
|
$
|
0.46
|
|
|
$
|
0.48
|
|
|
$
|
1.89
|
|
Net income - diluted
|
0.48
|
|
|
0.47
|
|
|
0.46
|
|
|
0.48
|
|
|
1.89
|
|
|||||
Cash dividends
|
0.24
|
|
|
0.24
|
|
|
0.24
|
|
|
0.24
|
|
|
0.96
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
|
|
|
|||||||||
2015
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Total
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest income
|
$
|
13,839
|
|
|
$
|
13,837
|
|
|
$
|
13,542
|
|
|
$
|
13,951
|
|
|
$
|
55,169
|
|
Interest expense
|
1,461
|
|
|
1,455
|
|
|
1,481
|
|
|
1,507
|
|
|
5,904
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income
|
12,378
|
|
|
12,382
|
|
|
12,061
|
|
|
12,444
|
|
|
49,265
|
|
|||||
Provision for loan losses
|
600
|
|
|
100
|
|
|
—
|
|
|
250
|
|
|
950
|
|
|||||
Net interest income after provision
for loan losses
|
11,778
|
|
|
12,282
|
|
|
12,061
|
|
|
12,194
|
|
|
48,315
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest income
|
3,156
|
|
|
3,258
|
|
|
3,055
|
|
|
3,818
|
|
|
13,287
|
|
|||||
Noninterest expense
|
10,047
|
|
|
11,642
|
|
|
9,388
|
|
|
9,466
|
|
|
40,543
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Income before income taxes
|
4,887
|
|
|
3,898
|
|
|
5,728
|
|
|
6,546
|
|
|
21,059
|
|
|||||
Income taxes
|
1,372
|
|
|
1,018
|
|
|
1,691
|
|
|
1,939
|
|
|
6,020
|
|
|||||
Net income
|
$
|
3,515
|
|
|
$
|
2,880
|
|
|
$
|
4,037
|
|
|
$
|
4,607
|
|
|
$
|
15,039
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income - basic
|
$
|
0.40
|
|
|
$
|
0.33
|
|
|
$
|
0.47
|
|
|
$
|
0.53
|
|
|
$
|
1.73
|
|
Net income - diluted
|
0.40
|
|
|
0.33
|
|
|
0.47
|
|
|
0.53
|
|
|
1.73
|
|
|||||
Cash dividends
|
0.23
|
|
|
0.23
|
|
|
0.23
|
|
|
0.24
|
|
|
0.93
|
|
ASSETS
|
2016
|
|
2015
|
||||
Cash and due from banks
|
$
|
20,268
|
|
|
$
|
19,352
|
|
Interest-bearing deposits in other banks
|
32,939
|
|
|
75,985
|
|
||
|
|
|
|
||||
Securities available for sale, at fair value
|
346,502
|
|
|
340,349
|
|
||
Restricted stock, at cost
|
6,224
|
|
|
5,312
|
|
||
Loans held for sale
|
5,996
|
|
|
3,266
|
|
||
|
|
|
|
||||
Loans, net of unearned income
|
1,164,821
|
|
|
1,005,525
|
|
||
Less allowance for loan losses
|
(12,801
|
)
|
|
(12,601
|
)
|
||
Net loans
|
1,152,020
|
|
|
992,924
|
|
||
|
|
|
|
||||
Premises and equipment, net
|
25,439
|
|
|
23,567
|
|
||
Other real estate owned, net of valuation allowance of $192 in 2016 and $329 in 2015
|
1,328
|
|
|
2,184
|
|
||
Goodwill
|
43,872
|
|
|
43,872
|
|
||
Core deposit intangibles, net
|
1,719
|
|
|
2,683
|
|
||
Bank owned life insurance
|
18,163
|
|
|
17,658
|
|
||
Accrued interest receivable and other assets
|
24,168
|
|
|
20,447
|
|
||
Total assets
|
$
|
1,678,638
|
|
|
$
|
1,547,599
|
|
|
|
|
|
||||
LIABILITIES and SHAREHOLDERS' EQUITY
|
|
|
|
|
|
||
Liabilities:
|
|
|
|
|
|
||
Demand deposits -- noninterest bearing
|
$
|
378,600
|
|
|
$
|
322,442
|
|
Demand deposits -- interest bearing
|
209,430
|
|
|
227,030
|
|
||
Money market deposits
|
283,035
|
|
|
200,495
|
|
||
Savings deposits
|
120,720
|
|
|
115,383
|
|
||
Time deposits
|
378,855
|
|
|
397,310
|
|
||
Total deposits
|
1,370,640
|
|
|
1,262,660
|
|
||
|
|
|
|
||||
Short-term borrowings:
|
|
|
|
||||
Customer repurchase agreements
|
39,166
|
|
|
40,611
|
|
||
Other short-term borrowings
|
20,000
|
|
|
—
|
|
||
Long-term borrowings
|
9,980
|
|
|
9,958
|
|
||
Junior subordinated debt
|
27,724
|
|
|
27,622
|
|
||
Accrued interest payable and other liabilities
|
9,748
|
|
|
8,913
|
|
||
Total liabilities
|
1,477,258
|
|
|
1,349,764
|
|
||
|
|
|
|
||||
Commitments and contingencies
|
|
|
|
|
|
||
|
|
|
|
||||
Shareholders' equity:
|
|
|
|
|
|
||
Preferred stock, $5 par, 2,000,000 shares authorized, none outstanding
|
—
|
|
|
—
|
|
||
Common stock, $1 par, 20,000,000 shares authorized 8,618,051 shares outstanding at December 31, 2016 and 8,622,007 shares outstanding at December 31, 2015
|
8,578
|
|
|
8,605
|
|
||
Capital in excess of par value
|
75,076
|
|
|
75,375
|
|
||
Retained earnings
|
119,600
|
|
|
111,565
|
|
||
Accumulated other comprehensive income (loss), net
|
(1,874
|
)
|
|
2,290
|
|
||
Total shareholders' equity
|
201,380
|
|
|
197,835
|
|
||
Total liabilities and shareholders' equity
|
$
|
1,678,638
|
|
|
$
|
1,547,599
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
Interest and Dividend Income:
|
|
|
|
|
|
||||||
Interest and fees on loans
|
$
|
47,971
|
|
|
$
|
46,860
|
|
|
$
|
39,257
|
|
Interest on federal funds sold
|
—
|
|
|
6
|
|
|
—
|
|
|||
Interest and dividends on securities:
|
|
|
|
|
|
|
|
|
|||
Taxable
|
4,454
|
|
|
4,072
|
|
|
3,775
|
|
|||
Tax-exempt
|
3,135
|
|
|
3,681
|
|
|
3,971
|
|
|||
Dividends
|
334
|
|
|
346
|
|
|
296
|
|
|||
Other interest income
|
276
|
|
|
204
|
|
|
156
|
|
|||
Total interest and dividend income
|
56,170
|
|
|
55,169
|
|
|
47,455
|
|
|||
Interest Expense:
|
|
|
|
|
|
|
|
|
|||
Interest on deposits
|
5,103
|
|
|
4,811
|
|
|
4,654
|
|
|||
Interest on short-term borrowings
|
10
|
|
|
9
|
|
|
9
|
|
|||
Interest on long-term borrowings
|
325
|
|
|
324
|
|
|
325
|
|
|||
Interest on junior subordinated debt
|
878
|
|
|
760
|
|
|
742
|
|
|||
Total interest expense
|
6,316
|
|
|
5,904
|
|
|
5,730
|
|
|||
Net Interest Income
|
49,854
|
|
|
49,265
|
|
|
41,725
|
|
|||
Provision for Loan Losses
|
250
|
|
|
950
|
|
|
400
|
|
|||
Net Interest Income after Provision for Loan Losses
|
49,604
|
|
|
48,315
|
|
|
41,325
|
|
|||
Noninterest Income:
|
|
|
|
|
|
|
|
|
|||
Trust fees
|
3,791
|
|
|
3,935
|
|
|
4,196
|
|
|||
Service charges on deposit accounts
|
2,048
|
|
|
2,066
|
|
|
1,735
|
|
|||
Other fees and commissions
|
2,680
|
|
|
2,377
|
|
|
1,903
|
|
|||
Mortgage banking income
|
1,713
|
|
|
1,320
|
|
|
1,126
|
|
|||
Securities gains, net
|
836
|
|
|
867
|
|
|
505
|
|
|||
Brokerage fees
|
843
|
|
|
946
|
|
|
643
|
|
|||
Income from Small Business Investment Companies
|
463
|
|
|
912
|
|
|
176
|
|
|||
Other
|
1,131
|
|
|
864
|
|
|
892
|
|
|||
Total noninterest income
|
13,505
|
|
|
13,287
|
|
|
11,176
|
|
|||
Noninterest Expense:
|
|
|
|
|
|
|
|
|
|||
Salaries
|
17,568
|
|
|
16,554
|
|
|
14,688
|
|
|||
Employee benefits
|
4,264
|
|
|
4,311
|
|
|
2,988
|
|
|||
Occupancy and equipment
|
4,246
|
|
|
4,425
|
|
|
3,727
|
|
|||
FDIC assessment
|
647
|
|
|
750
|
|
|
647
|
|
|||
Bank franchise tax
|
995
|
|
|
898
|
|
|
901
|
|
|||
Core deposit intangible amortization
|
964
|
|
|
1,201
|
|
|
1,114
|
|
|||
Data processing
|
1,828
|
|
|
1,725
|
|
|
1,448
|
|
|||
Software
|
1,143
|
|
|
1,158
|
|
|
1,019
|
|
|||
Other real estate owned, net
|
336
|
|
|
99
|
|
|
240
|
|
|||
Merger related expenses
|
—
|
|
|
1,998
|
|
|
780
|
|
|||
Other
|
7,810
|
|
|
7,424
|
|
|
7,006
|
|
|||
Total noninterest expense
|
39,801
|
|
|
40,543
|
|
|
34,558
|
|
|||
Income Before Income Taxes
|
23,308
|
|
|
21,059
|
|
|
17,943
|
|
|||
Income Taxes
|
7,007
|
|
|
6,020
|
|
|
5,202
|
|
|||
Net Income
|
$
|
16,301
|
|
|
$
|
15,039
|
|
|
$
|
12,741
|
|
Net Income Per Common Share:
|
|
|
|
|
|
|
|
|
|||
Basic
|
$
|
1.89
|
|
|
$
|
1.73
|
|
|
$
|
1.62
|
|
Diluted
|
$
|
1.89
|
|
|
$
|
1.73
|
|
|
$
|
1.62
|
|
Average Common Shares Outstanding:
|
|
|
|
|
|
|
|
|
|||
Basic
|
8,611,507
|
|
|
8,680,502
|
|
|
7,867,198
|
|
|||
Diluted
|
8,621,241
|
|
|
8,688,450
|
|
|
7,877,576
|
|
|
Year Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Net income
|
$
|
16,301
|
|
|
$
|
15,039
|
|
|
$
|
12,741
|
|
|
|
|
|
|
|
||||||
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
||||||
Unrealized gains (losses) on securities available for sale
|
(5,736
|
)
|
|
(1,785
|
)
|
|
3,993
|
|
|||
Tax effect
|
2,007
|
|
|
626
|
|
|
(1,398
|
)
|
|||
|
|
|
|
|
|
||||||
Reclassification adjustment for realized gains on securities
|
(836
|
)
|
|
(867
|
)
|
|
(505
|
)
|
|||
Tax effect
|
293
|
|
|
303
|
|
|
177
|
|
|||
|
|
|
|
|
|
||||||
Change in unfunded pension liability
|
166
|
|
|
538
|
|
|
(1,728
|
)
|
|||
Tax effect
|
(58
|
)
|
|
(189
|
)
|
|
605
|
|
|||
|
|
|
|
|
|
||||||
Other comprehensive income (loss)
|
(4,164
|
)
|
|
(1,374
|
)
|
|
1,144
|
|
|||
|
|
|
|
|
|
||||||
Comprehensive income
|
$
|
12,137
|
|
|
$
|
13,665
|
|
|
$
|
13,885
|
|
|
Common
Stock |
|
Capital in
Excess of Par Value |
|
Retained
Earnings |
|
Accumulated
Other Comprehensive Income (Loss) |
|
Total
Shareholders' Equity |
||||||||||
Balance, December 31, 2013
|
$
|
7,891
|
|
|
$
|
58,050
|
|
|
$
|
99,090
|
|
|
$
|
2,520
|
|
|
$
|
167,551
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
—
|
|
|
—
|
|
|
12,741
|
|
|
—
|
|
|
12,741
|
|
|||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
1,144
|
|
|
1,144
|
|
|||||
Stock repurchased (70,184 shares)
|
(70
|
)
|
|
(1,438
|
)
|
|
—
|
|
|
—
|
|
|
(1,508
|
)
|
|||||
Stock options exercised (26,000 shares)
|
26
|
|
|
416
|
|
|
—
|
|
|
—
|
|
|
442
|
|
|||||
Equity based compensation (25,849 shares)
|
25
|
|
|
622
|
|
|
—
|
|
|
—
|
|
|
647
|
|
|||||
Cash dividends paid, $0.92 per share
|
—
|
|
|
—
|
|
|
(7,237
|
)
|
|
—
|
|
|
(7,237
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance, December 31, 2014
|
7,872
|
|
|
57,650
|
|
|
104,594
|
|
|
3,664
|
|
|
173,780
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
—
|
|
|
—
|
|
|
15,039
|
|
|
—
|
|
|
15,039
|
|
|||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,374
|
)
|
|
(1,374
|
)
|
|||||
Issuance of common stock (825,586 shares)
|
826
|
|
|
19,657
|
|
|
—
|
|
|
—
|
|
|
20,483
|
|
|||||
Stock repurchased (150,656 shares)
|
(151
|
)
|
|
(3,355
|
)
|
|
—
|
|
|
—
|
|
|
(3,506
|
)
|
|||||
Stock options exercised (42,680 shares)
|
43
|
|
|
746
|
|
|
—
|
|
|
—
|
|
|
789
|
|
|||||
Equity based compensation (15,386 shares)
|
15
|
|
|
677
|
|
|
—
|
|
|
—
|
|
|
692
|
|
|||||
Cash dividends paid, $0.93 per share
|
—
|
|
|
—
|
|
|
(8,068
|
)
|
|
—
|
|
|
(8,068
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance, December 31, 2015
|
8,605
|
|
|
75,375
|
|
|
111,565
|
|
|
2,290
|
|
|
197,835
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
—
|
|
|
—
|
|
|
16,301
|
|
|
—
|
|
|
16,301
|
|
|||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,164
|
)
|
|
(4,164
|
)
|
|||||
Stock repurchased (51,384 shares)
|
(51
|
)
|
|
(1,241
|
)
|
|
—
|
|
|
—
|
|
|
(1,292
|
)
|
|||||
Stock options exercised (5,784 shares)
|
6
|
|
|
136
|
|
|
—
|
|
|
—
|
|
|
142
|
|
|||||
Vesting of restricted stock
|
5
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Equity based compensation (41,644 shares)
|
13
|
|
|
811
|
|
|
—
|
|
|
—
|
|
|
824
|
|
|||||
Cash dividends paid, $0.96 per share
|
—
|
|
|
—
|
|
|
(8,266
|
)
|
|
—
|
|
|
(8,266
|
)
|
|||||
Balance, December 31, 2016
|
$
|
8,578
|
|
|
$
|
75,076
|
|
|
$
|
119,600
|
|
|
$
|
(1,874
|
)
|
|
$
|
201,380
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
Cash Flows from Operating Activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
16,301
|
|
|
$
|
15,039
|
|
|
$
|
12,741
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|||
Provision for loan losses
|
250
|
|
|
950
|
|
|
400
|
|
|||
Depreciation
|
1,892
|
|
|
1,833
|
|
|
1,688
|
|
|||
Net accretion of acquisition accounting adjustments
|
(2,318
|
)
|
|
(3,197
|
)
|
|
(2,431
|
)
|
|||
Core deposit intangible amortization
|
964
|
|
|
1,201
|
|
|
1,114
|
|
|||
Net amortization of securities
|
2,678
|
|
|
2,720
|
|
|
2,535
|
|
|||
Net gain on sale or call of securities
|
(836
|
)
|
|
(867
|
)
|
|
(505
|
)
|
|||
Gain on sale of loans held for sale
|
(1,328
|
)
|
|
(1,041
|
)
|
|
(883
|
)
|
|||
Proceeds from sales of loans held for sale
|
76,928
|
|
|
57,421
|
|
|
52,592
|
|
|||
Originations of loans held for sale
|
(78,330
|
)
|
|
(59,030
|
)
|
|
(49,565
|
)
|
|||
Net loss (gain) on other real estate owned
|
72
|
|
|
(185
|
)
|
|
(66
|
)
|
|||
Valuation allowance on other real estate owned
|
156
|
|
|
86
|
|
|
68
|
|
|||
Net loss on sale of premises and equipment
|
9
|
|
|
(11
|
)
|
|
10
|
|
|||
Equity-based compensation expense
|
824
|
|
|
692
|
|
|
647
|
|
|||
Net change in bank owned life insurance
|
(505
|
)
|
|
(510
|
)
|
|
(447
|
)
|
|||
Deferred income tax expense
|
882
|
|
|
1,741
|
|
|
49
|
|
|||
Net change in interest receivable
|
(967
|
)
|
|
744
|
|
|
207
|
|
|||
Net change in other assets
|
(1,390
|
)
|
|
1,778
|
|
|
(2,057
|
)
|
|||
Net change in interest payable
|
(32
|
)
|
|
16
|
|
|
(23
|
)
|
|||
Net change in other liabilities
|
867
|
|
|
(118
|
)
|
|
524
|
|
|||
Net cash provided by operating activities
|
16,117
|
|
|
19,262
|
|
|
16,598
|
|
|||
|
|
|
|
|
|
||||||
Cash Flows from Investing Activities:
|
|
|
|
|
|
|
|
|
|||
Proceeds from sales of securities available for sale
|
13,019
|
|
|
15,425
|
|
|
13,667
|
|
|||
Proceeds from maturities, calls and paydowns of securities available for sale
|
140,483
|
|
|
122,984
|
|
|
78,350
|
|
|||
Purchases of securities available for sale
|
(168,069
|
)
|
|
(120,040
|
)
|
|
(89,151
|
)
|
|||
Net change in restricted stock
|
(912
|
)
|
|
(358
|
)
|
|
355
|
|
|||
Net increase in loans
|
(157,198
|
)
|
|
(48,318
|
)
|
|
(44,658
|
)
|
|||
Proceeds from sale of premises and equipment
|
1
|
|
|
44
|
|
|
—
|
|
|||
Purchases of premises and equipment
|
(3,613
|
)
|
|
(1,474
|
)
|
|
(1,049
|
)
|
|||
Proceeds from sales of other real estate owned
|
923
|
|
|
2,135
|
|
|
1,687
|
|
|||
Cash paid in bank acquisition
|
—
|
|
|
(5,935
|
)
|
|
—
|
|
|||
Cash acquired in bank acquisition
|
—
|
|
|
18,173
|
|
|
—
|
|
|||
Net cash used in investing activities
|
(175,366
|
)
|
|
(17,364
|
)
|
|
(40,799
|
)
|
|||
|
|
|
|
|
|
||||||
Cash Flows from Financing Activities:
|
|
|
|
|
|
|
|
|
|||
Net change in demand, money market, and savings deposits
|
126,435
|
|
|
70,879
|
|
|
43,943
|
|
|||
Net change in time deposits
|
(18,455
|
)
|
|
(21,089
|
)
|
|
(25,781
|
)
|
|||
Net change in customer repurchase agreements
|
(1,445
|
)
|
|
(12,869
|
)
|
|
14,002
|
|
|||
Net change in other short-term borrowings
|
20,000
|
|
|
—
|
|
|
—
|
|
|||
Net change in long-term borrowings
|
—
|
|
|
—
|
|
|
(38
|
)
|
|||
Common stock dividends paid
|
(8,266
|
)
|
|
(8,068
|
)
|
|
(7,237
|
)
|
|||
Repurchase of common stock
|
(1,292
|
)
|
|
(3,506
|
)
|
|
(1,508
|
)
|
|||
Proceeds from exercise of stock options
|
142
|
|
|
789
|
|
|
442
|
|
|||
Net cash provided by financing activities
|
117,119
|
|
|
26,136
|
|
|
23,823
|
|
|||
|
|
|
|
|
|
||||||
Net Increase (Decrease) in Cash and Cash Equivalents
|
(42,130
|
)
|
|
28,034
|
|
|
(378
|
)
|
|||
|
|
|
|
|
|
||||||
Cash and Cash Equivalents at Beginning of Period
|
95,337
|
|
|
67,303
|
|
|
67,681
|
|
|||
|
|
|
|
|
|
||||||
Cash and Cash Equivalents at End of Period
|
$
|
53,207
|
|
|
$
|
95,337
|
|
|
$
|
67,303
|
|
•
|
The present value of expected future cash flows discounted at the loan's effective interest rate. The effective interest rate on a loan is the rate of return implicit in the loan (that is, the contractual interest rate adjusted for any net deferred loan fees or costs and any premium or discount existing at the origination or acquisition of the loan);
|
•
|
The loan's observable market price, or
|
•
|
The fair value of the collateral, net of estimated costs to dispose, if the loan is collateral dependent.
|
|
Amounts Previously Recognized as of September 30, 2015
|
|
Measurement Period Adjustments
|
|
Adjusted Amounts Recognized as of December 31, 2015
|
||||||
Consideration Paid:
|
|
|
|
|
|
||||||
Common shares issued (825,586)
|
$
|
20,483
|
|
|
$
|
—
|
|
|
$
|
20,483
|
|
Cash paid to Shareholders
|
5,935
|
|
|
—
|
|
|
5,935
|
|
|||
Value of consideration
|
26,418
|
|
|
—
|
|
|
26,418
|
|
|||
|
|
|
|
|
|
|
|||||
Assets acquired:
|
|
|
|
|
|
|
|||||
Cash and cash equivalents
|
18,173
|
|
|
—
|
|
|
18,173
|
|
|||
Investment securities
|
18,507
|
|
|
—
|
|
|
18,507
|
|
|||
Restricted stock
|
587
|
|
|
—
|
|
|
587
|
|
|||
Loans
|
115,237
|
|
|
(723
|
)
|
|
115,960
|
|
|||
Premises and equipment
|
956
|
|
|
—
|
|
|
956
|
|
|||
Deferred income taxes
|
3,056
|
|
|
262
|
|
|
2,794
|
|
|||
Core deposit intangible
|
1,839
|
|
|
—
|
|
|
1,839
|
|
|||
Other real estate owned
|
168
|
|
|
—
|
|
|
168
|
|
|||
Bank owned life insurance
|
1,955
|
|
|
—
|
|
|
1,955
|
|
|||
Accrued interest receivable and other assets
|
1,049
|
|
|
—
|
|
|
1,049
|
|
|||
Total assets
|
161,527
|
|
|
(461
|
)
|
|
161,988
|
|
|||
|
|
|
|
|
|
|
|||||
Liabilities assumed:
|
|
|
|
|
|
|
|||||
Deposits
|
137,323
|
|
|
—
|
|
|
137,323
|
|
|||
Accrued interest payable and other liabilities
|
3,076
|
|
|
—
|
|
|
3,076
|
|
|||
Total liabilities
|
140,399
|
|
|
—
|
|
|
140,399
|
|
|||
Net assets acquired
|
21,128
|
|
|
(461
|
)
|
|
21,589
|
|
|||
Goodwill resulting from merger with MainStreet
|
$
|
5,290
|
|
|
|
|
$
|
4,829
|
|
|
December 31, 2016
|
||||||||||||||
|
Amortized
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair Value
|
||||||||
Securities available for sale:
|
|
|
|
|
|
|
|
||||||||
Federal agencies and GSEs
|
$
|
106,379
|
|
|
$
|
62
|
|
|
$
|
2,387
|
|
|
$
|
104,054
|
|
Mortgage-backed and CMOs
|
79,917
|
|
|
514
|
|
|
938
|
|
|
79,493
|
|
||||
State and municipal
|
145,757
|
|
|
2,540
|
|
|
782
|
|
|
147,515
|
|
||||
Corporate
|
13,392
|
|
|
123
|
|
|
23
|
|
|
13,492
|
|
||||
Equity securities
|
1,288
|
|
|
660
|
|
|
—
|
|
|
1,948
|
|
||||
Total securities available for sale
|
$
|
346,733
|
|
|
$
|
3,899
|
|
|
$
|
4,130
|
|
|
$
|
346,502
|
|
|
December 31, 2015
|
||||||||||||||
|
Amortized Cost
|
|
Unrealized Gains
|
|
Unrealized Losses
|
|
Fair Value
|
||||||||
Securities available for sale:
|
|
|
|
|
|
|
|
||||||||
Federal agencies and GSEs
|
$
|
81,601
|
|
|
$
|
170
|
|
|
$
|
319
|
|
|
$
|
81,452
|
|
Mortgage-backed and CMOs
|
70,520
|
|
|
799
|
|
|
389
|
|
|
70,930
|
|
||||
State and municipal
|
170,268
|
|
|
5,659
|
|
|
36
|
|
|
175,891
|
|
||||
Corporate
|
10,619
|
|
|
28
|
|
|
57
|
|
|
10,590
|
|
||||
Equity securities
|
1,000
|
|
|
486
|
|
|
—
|
|
|
1,486
|
|
||||
Total securities available for sale
|
$
|
334,008
|
|
|
$
|
7,142
|
|
|
$
|
801
|
|
|
$
|
340,349
|
|
|
Available for Sale
|
||||||
|
Amortized
Cost
|
|
Fair Value
|
||||
Due in one year or less
|
$
|
23,342
|
|
|
$
|
23,422
|
|
Due after one year through five years
|
104,876
|
|
|
106,028
|
|
||
Due after five years through ten years
|
105,944
|
|
|
104,973
|
|
||
Due after ten years
|
31,366
|
|
|
30,639
|
|
||
Mortgage-backed and CMOs
|
79,917
|
|
|
79,492
|
|
||
Equity securities
|
1,288
|
|
|
1,948
|
|
||
|
$
|
346,733
|
|
|
$
|
346,502
|
|
|
For the Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Realized gains
|
$
|
844
|
|
|
$
|
871
|
|
|
$
|
507
|
|
Realized losses
|
(8
|
)
|
|
(4
|
)
|
|
(2
|
)
|
|||
Other-than-temporary impairment
|
—
|
|
|
—
|
|
|
—
|
|
|
Total
|
|
Less than 12 Months
|
|
12 Months or More
|
||||||||||||||||||
|
Fair Value
|
|
Unrealized
Loss
|
|
Fair Value
|
|
Unrealized
Loss
|
|
Fair Value
|
|
Unrealized
Loss
|
||||||||||||
Federal agencies and GSEs
|
$
|
89,597
|
|
|
$
|
2,387
|
|
|
$
|
89,597
|
|
|
$
|
2,387
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Mortgage-backed and CMOs
|
57,762
|
|
|
938
|
|
|
56,076
|
|
|
911
|
|
|
1,686
|
|
|
27
|
|
||||||
State and municipal
|
47,221
|
|
|
782
|
|
|
47,221
|
|
|
782
|
|
|
—
|
|
|
—
|
|
||||||
Corporate
|
2,895
|
|
|
23
|
|
|
2,895
|
|
|
23
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
$
|
197,475
|
|
|
$
|
4,130
|
|
|
$
|
195,789
|
|
|
$
|
4,103
|
|
|
$
|
1,686
|
|
|
$
|
27
|
|
|
Total
|
|
Less than 12 Months
|
|
12 Months or More
|
||||||||||||||||||
|
Fair
Value
|
|
Unrealized
Loss
|
|
Fair
Value
|
|
Unrealized
Loss
|
|
Fair
Value
|
|
Unrealized
Loss
|
||||||||||||
Federal agencies and GSEs
|
$
|
57,711
|
|
|
$
|
319
|
|
|
$
|
57,711
|
|
|
$
|
319
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Mortgage-backed and CMOs
|
37,368
|
|
|
389
|
|
|
35,424
|
|
|
346
|
|
|
1,944
|
|
|
43
|
|
||||||
State and municipal
|
13,540
|
|
|
36
|
|
|
12,716
|
|
|
34
|
|
|
824
|
|
|
2
|
|
||||||
Corporate
|
5,107
|
|
|
57
|
|
|
3,530
|
|
|
29
|
|
|
1,577
|
|
|
28
|
|
||||||
Total
|
$
|
113,726
|
|
|
$
|
801
|
|
|
$
|
109,381
|
|
|
$
|
728
|
|
|
$
|
4,345
|
|
|
$
|
73
|
|
|
December 31,
|
||||||
|
2016
|
|
2015
|
||||
Commercial
|
$
|
208,717
|
|
|
$
|
177,481
|
|
Commercial real estate:
|
|
|
|
|
|
||
Construction and land development
|
114,258
|
|
|
72,968
|
|
||
Commercial real estate
|
510,960
|
|
|
430,186
|
|
||
Residential real estate:
|
|
|
|
|
|
||
Residential
|
215,104
|
|
|
220,434
|
|
||
Home equity
|
110,751
|
|
|
98,449
|
|
||
Consumer
|
5,031
|
|
|
6,007
|
|
||
Total loans
|
$
|
1,164,821
|
|
|
$
|
1,005,525
|
|
|
2016
|
|
2015
|
||||
Outstanding principal balance
|
$
|
104,172
|
|
|
$
|
145,380
|
|
Carrying amount
|
96,487
|
|
|
135,254
|
|
|
December 31, 2016
|
|
December 31, 2015
|
||||
Outstanding principal balance
|
$
|
34,378
|
|
|
$
|
40,951
|
|
Carrying amount
|
28,669
|
|
|
33,885
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
Balance at January 1
|
$
|
7,299
|
|
|
$
|
1,440
|
|
|
$
|
2,046
|
|
Additions from merger with MainStreet
|
—
|
|
|
7,140
|
|
|
—
|
|
|||
Accretion
|
(3,232
|
)
|
|
(4,313
|
)
|
|
(1,185
|
)
|
|||
Reclassification from nonaccretable difference
|
2,197
|
|
|
238
|
|
|
579
|
|
|||
Other changes, net
|
(161
|
)
|
|
2,794
|
|
|
—
|
|
|||
Balance at December 31
|
$
|
6,103
|
|
|
$
|
7,299
|
|
|
$
|
1,440
|
|
|
30- 59 Days
Past Due
|
|
60-89 Days
Past Due
|
|
90 Days +
Past Due
and Still
Accruing
|
|
Non-
Accrual
Loans
|
|
Total
Past
Due
|
|
Current
|
|
Total
Loans
|
||||||||||||||
Commercial
|
$
|
50
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
19
|
|
|
$
|
69
|
|
|
$
|
208,648
|
|
|
$
|
208,717
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Construction and land development
|
60
|
|
|
12
|
|
|
—
|
|
|
64
|
|
|
136
|
|
|
114,122
|
|
|
114,258
|
|
|||||||
Commercial real estate
|
—
|
|
|
127
|
|
|
339
|
|
|
773
|
|
|
1,239
|
|
|
509,721
|
|
|
510,960
|
|
|||||||
Residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Residential
|
1,280
|
|
|
117
|
|
|
248
|
|
|
1,802
|
|
|
3,447
|
|
|
211,657
|
|
|
215,104
|
|
|||||||
Home equity
|
229
|
|
|
—
|
|
|
—
|
|
|
289
|
|
|
518
|
|
|
110,233
|
|
|
110,751
|
|
|||||||
Consumer
|
6
|
|
|
5
|
|
|
—
|
|
|
18
|
|
|
29
|
|
|
5,002
|
|
|
5,031
|
|
|||||||
Total
|
$
|
1,625
|
|
|
$
|
261
|
|
|
$
|
587
|
|
|
$
|
2,965
|
|
|
$
|
5,438
|
|
|
$
|
1,159,383
|
|
|
$
|
1,164,821
|
|
|
30- 59 Days
Past Due
|
|
60-89 Days
Past Due
|
|
90 Days +
Past Due
and Still
Accruing
|
|
Non-
Accrual
Loans
|
|
Total
Past
Due
|
|
Current
|
|
Total
Loans
|
||||||||||||||
Commercial
|
$
|
137
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
90
|
|
|
$
|
227
|
|
|
$
|
177,254
|
|
|
$
|
177,481
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Construction and land development
|
—
|
|
|
—
|
|
|
—
|
|
|
258
|
|
|
258
|
|
|
72,710
|
|
|
72,968
|
|
|||||||
Commercial real estate
|
135
|
|
|
182
|
|
|
—
|
|
|
2,497
|
|
|
2,814
|
|
|
427,372
|
|
|
430,186
|
|
|||||||
Residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Residential
|
913
|
|
|
398
|
|
|
84
|
|
|
1,647
|
|
|
3,042
|
|
|
217,392
|
|
|
220,434
|
|
|||||||
Home equity
|
140
|
|
|
12
|
|
|
—
|
|
|
620
|
|
|
772
|
|
|
97,677
|
|
|
98,449
|
|
|||||||
Consumer
|
53
|
|
|
1
|
|
|
7
|
|
|
2
|
|
|
63
|
|
|
5,944
|
|
|
6,007
|
|
|||||||
Total
|
$
|
1,378
|
|
|
$
|
593
|
|
|
$
|
91
|
|
|
$
|
5,114
|
|
|
$
|
7,176
|
|
|
$
|
998,349
|
|
|
$
|
1,005,525
|
|
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
$
|
24
|
|
|
$
|
24
|
|
|
$
|
—
|
|
|
$
|
12
|
|
|
$
|
2
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Construction and land development
|
158
|
|
|
157
|
|
|
—
|
|
|
198
|
|
|
16
|
|
|||||
Commercial real estate
|
1,916
|
|
|
1,917
|
|
|
—
|
|
|
1,409
|
|
|
107
|
|
|||||
Residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential
|
557
|
|
|
567
|
|
|
—
|
|
|
318
|
|
|
38
|
|
|||||
Home equity
|
6
|
|
|
6
|
|
|
—
|
|
|
153
|
|
|
16
|
|
|||||
Consumer
|
9
|
|
|
9
|
|
|
—
|
|
|
10
|
|
|
1
|
|
|||||
|
$
|
2,670
|
|
|
$
|
2,680
|
|
|
$
|
—
|
|
|
$
|
2,100
|
|
|
$
|
180
|
|
With a related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial*
|
$
|
19
|
|
|
$
|
19
|
|
|
$
|
—
|
|
|
$
|
78
|
|
|
$
|
1
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Construction and land development*
|
64
|
|
|
65
|
|
|
—
|
|
|
272
|
|
|
10
|
|
|||||
Commercial real estate*
|
48
|
|
|
48
|
|
|
—
|
|
|
286
|
|
|
7
|
|
|||||
Residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential
|
1,639
|
|
|
1,639
|
|
|
22
|
|
|
1,593
|
|
|
32
|
|
|||||
Home equity
|
386
|
|
|
385
|
|
|
1
|
|
|
345
|
|
|
4
|
|
|||||
Consumer*
|
18
|
|
|
18
|
|
|
—
|
|
|
14
|
|
|
—
|
|
|||||
|
$
|
2,174
|
|
|
$
|
2,174
|
|
|
$
|
23
|
|
|
$
|
2,588
|
|
|
$
|
54
|
|
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial
|
$
|
43
|
|
|
$
|
43
|
|
|
$
|
—
|
|
|
$
|
90
|
|
|
$
|
3
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Construction and land development
|
222
|
|
|
222
|
|
|
—
|
|
|
470
|
|
|
26
|
|
|||||
Commercial real estate
|
1,964
|
|
|
1,965
|
|
|
—
|
|
|
1,695
|
|
|
114
|
|
|||||
Residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential
|
2,196
|
|
|
2,206
|
|
|
22
|
|
|
1,911
|
|
|
70
|
|
|||||
Home equity
|
392
|
|
|
391
|
|
|
1
|
|
|
498
|
|
|
20
|
|
|||||
Consumer
|
27
|
|
|
27
|
|
|
—
|
|
|
24
|
|
|
1
|
|
|||||
|
$
|
4,844
|
|
|
$
|
4,854
|
|
|
$
|
23
|
|
|
$
|
4,688
|
|
|
$
|
234
|
|
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
$
|
4
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
47
|
|
|
$
|
—
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Construction and land development
|
205
|
|
|
205
|
|
|
—
|
|
|
220
|
|
|
—
|
|
|||||
Commercial real estate
|
1,202
|
|
|
1,206
|
|
|
—
|
|
|
1,504
|
|
|
1
|
|
|||||
Residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential
|
127
|
|
|
124
|
|
|
—
|
|
|
126
|
|
|
—
|
|
|||||
Home equity
|
173
|
|
|
173
|
|
|
—
|
|
|
305
|
|
|
—
|
|
|||||
Consumer
|
13
|
|
|
13
|
|
|
—
|
|
|
14
|
|
|
—
|
|
|||||
|
$
|
1,724
|
|
|
$
|
1,725
|
|
|
$
|
—
|
|
|
$
|
2,216
|
|
|
$
|
1
|
|
With a related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial*
|
$
|
91
|
|
|
$
|
91
|
|
|
$
|
—
|
|
|
$
|
99
|
|
|
$
|
—
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Construction and land development
|
448
|
|
|
449
|
|
|
6
|
|
|
563
|
|
|
26
|
|
|||||
Commercial real estate
|
390
|
|
|
391
|
|
|
3
|
|
|
353
|
|
|
17
|
|
|||||
Residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential*
|
1,649
|
|
|
1,690
|
|
|
—
|
|
|
1,034
|
|
|
22
|
|
|||||
Home equity
|
397
|
|
|
396
|
|
|
25
|
|
|
327
|
|
|
—
|
|
|||||
Consumer
|
8
|
|
|
9
|
|
|
1
|
|
|
11
|
|
|
—
|
|
|||||
|
$
|
2,983
|
|
|
$
|
3,026
|
|
|
$
|
35
|
|
|
$
|
2,387
|
|
|
$
|
65
|
|
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial
|
$
|
95
|
|
|
$
|
95
|
|
|
$
|
—
|
|
|
$
|
146
|
|
|
$
|
—
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Construction and land development
|
653
|
|
|
654
|
|
|
6
|
|
|
783
|
|
|
26
|
|
|||||
Commercial real estate
|
1,592
|
|
|
1,597
|
|
|
3
|
|
|
1,857
|
|
|
18
|
|
|||||
Residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential
|
1,776
|
|
|
1,814
|
|
|
—
|
|
|
1,160
|
|
|
22
|
|
|||||
Home equity
|
570
|
|
|
569
|
|
|
25
|
|
|
632
|
|
|
—
|
|
|||||
Consumer
|
21
|
|
|
22
|
|
|
1
|
|
|
25
|
|
|
—
|
|
|||||
|
$
|
4,707
|
|
|
$
|
4,751
|
|
|
$
|
35
|
|
|
$
|
4,603
|
|
|
$
|
66
|
|
|
Loans Modified as a TDR for the Year Ended December 31, 2016
|
|||||||||
|
Number of
Contracts
|
|
Pre-Modification
Outstanding Recorded
Investment
|
|
Post-Modification
Outstanding Recorded
Investment
|
|||||
Commercial
|
2
|
|
|
$
|
24
|
|
|
$
|
24
|
|
Commercial real estate
|
2
|
|
|
1,005
|
|
|
1,003
|
|
||
Equity
|
—
|
|
|
—
|
|
|
—
|
|
||
Residential real estate
|
4
|
|
|
322
|
|
|
312
|
|
||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
||
Total
|
8
|
|
|
$
|
1,351
|
|
|
$
|
1,339
|
|
|
Loans Modified as a TDR for the Year Ended December 31, 2015
|
|||||||||
|
Number of
Contracts
|
|
Pre-Modification
Outstanding Recorded
Investment
|
|
Post-Modification
Outstanding Recorded
Investment
|
|||||
Commercial
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Commercial real estate
|
3
|
|
|
394
|
|
|
394
|
|
||
Equity
|
1
|
|
|
107
|
|
|
105
|
|
||
Residential real estate
|
4
|
|
|
596
|
|
|
583
|
|
||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
||
Total
|
8
|
|
|
$
|
1,097
|
|
|
$
|
1,082
|
|
|
Loans Modified as a TDR for the Year Ended December 31, 2014
|
|||||||||
|
Number of
Contracts
|
|
Pre-Modification
Outstanding Recorded
Investment
|
|
Post-Modification
Outstanding Recorded
Investment
|
|||||
Commercial
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Commercial real estate
|
2
|
|
|
743
|
|
|
737
|
|
||
Equity
|
1
|
|
|
8
|
|
|
8
|
|
||
Residential real estate
|
2
|
|
|
121
|
|
|
124
|
|
||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
||
Total
|
5
|
|
|
$
|
872
|
|
|
$
|
869
|
|
|
Year Ended December 31,
|
||||||||||||||||||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||||||||||||||||||||||||||
|
Type of Modification
|
|
ALLL
|
|
Type of Modification
|
|
ALLL
|
|
Type of Modification
|
|
ALLL
|
||||||||||||||||||||||||
|
Rate
|
|
Structure
|
|
Impact
|
|
Rate
|
|
Structure
|
|
Impact
|
|
Rate
|
|
Structure
|
|
Impact
|
||||||||||||||||||
Commercial
|
$
|
—
|
|
|
$
|
24
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Commercial real estate
|
—
|
|
|
1,003
|
|
|
—
|
|
|
—
|
|
|
394
|
|
|
—
|
|
|
—
|
|
|
737
|
|
|
—
|
|
|||||||||
Equity
|
—
|
|
|
—
|
|
|
—
|
|
|
105
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|||||||||
Residential real estate
|
—
|
|
|
312
|
|
|
1
|
|
|
—
|
|
|
583
|
|
|
19
|
|
|
—
|
|
|
124
|
|
|
1
|
|
|||||||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Total
|
$
|
—
|
|
|
$
|
1,339
|
|
|
$
|
1
|
|
|
$
|
105
|
|
|
$
|
977
|
|
|
$
|
20
|
|
|
$
|
—
|
|
|
$
|
869
|
|
|
$
|
1
|
|
|
Commercial
|
|
Construction and Land Development
|
|
Commercial
Real Estate
|
|
Residential Real Estate
|
|
Home
Equity
|
||||||||||
Pass
|
$
|
208,098
|
|
|
$
|
112,729
|
|
|
$
|
501,081
|
|
|
$
|
199,278
|
|
|
$
|
108,799
|
|
Special Mention
|
592
|
|
|
902
|
|
|
4,859
|
|
|
10,600
|
|
|
1,257
|
|
|||||
Substandard
|
27
|
|
|
627
|
|
|
5,020
|
|
|
5,226
|
|
|
695
|
|
|||||
Doubtful
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
$
|
208,717
|
|
|
$
|
114,258
|
|
|
$
|
510,960
|
|
|
$
|
215,104
|
|
|
$
|
110,751
|
|
|
Consumer
|
||
Performing
|
$
|
5,003
|
|
Nonperforming
|
28
|
|
|
Total
|
$
|
5,031
|
|
|
Commercial
|
|
Construction and Land Development
|
|
Commercial
Real Estate
|
|
Residential Real Estate
|
|
Home
Equity
|
||||||||||
Pass
|
$
|
175,963
|
|
|
$
|
68,853
|
|
|
$
|
418,719
|
|
|
$
|
200,008
|
|
|
$
|
96,142
|
|
Special Mention
|
1,364
|
|
|
1,210
|
|
|
5,860
|
|
|
14,638
|
|
|
1,314
|
|
|||||
Substandard
|
154
|
|
|
2,905
|
|
|
5,607
|
|
|
5,788
|
|
|
993
|
|
|||||
Doubtful
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
$
|
177,481
|
|
|
$
|
72,968
|
|
|
$
|
430,186
|
|
|
$
|
220,434
|
|
|
$
|
98,449
|
|
|
Consumer
|
||
Performing
|
$
|
5,999
|
|
Nonperforming
|
8
|
|
|
Total
|
$
|
6,007
|
|
|
Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Allowance for Loan Losses
|
|
|
|
|
|
||||||
Balance, beginning of year
|
$
|
12,601
|
|
|
$
|
12,427
|
|
|
$
|
12,600
|
|
Provision for loan losses
|
250
|
|
|
950
|
|
|
400
|
|
|||
Charge-offs
|
(326
|
)
|
|
(1,200
|
)
|
|
(964
|
)
|
|||
Recoveries
|
276
|
|
|
424
|
|
|
391
|
|
|||
Balance, end of year
|
$
|
12,801
|
|
|
$
|
12,601
|
|
|
$
|
12,427
|
|
|
|
|
|
|
|
||||||
|
Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Reserve for Unfunded Lending Commitments
|
|
|
|
|
|
|
|
|
|||
Balance, beginning of year
|
$
|
184
|
|
|
$
|
163
|
|
|
$
|
210
|
|
Provision for (recovery) unfunded commitments
|
19
|
|
|
21
|
|
|
(47
|
)
|
|||
Charge-offs (recovery of)
|
—
|
|
|
—
|
|
|
—
|
|
|||
Balance, end of year
|
$
|
203
|
|
|
$
|
184
|
|
|
$
|
163
|
|
|
Commercial
|
|
Commercial
Real Estate
|
|
Residential
Real Estate
|
|
Consumer
|
|
Unallocated
|
|
Total
|
||||||||||||
Allowance for Loan Losses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance at December 31, 2015
|
$
|
2,065
|
|
|
$
|
6,930
|
|
|
$
|
3,546
|
|
|
$
|
60
|
|
|
$
|
—
|
|
|
$
|
12,601
|
|
Charge-offs
|
(40
|
)
|
|
(10
|
)
|
|
(87
|
)
|
|
(189
|
)
|
|
—
|
|
|
(326
|
)
|
||||||
Recoveries
|
40
|
|
|
32
|
|
|
68
|
|
|
136
|
|
|
—
|
|
|
276
|
|
||||||
Provision
|
30
|
|
|
403
|
|
|
(224
|
)
|
|
41
|
|
|
—
|
|
|
250
|
|
||||||
Balance at December 31, 2016
|
$
|
2,095
|
|
|
$
|
7,355
|
|
|
$
|
3,303
|
|
|
$
|
48
|
|
|
$
|
—
|
|
|
$
|
12,801
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance at December 31, 2016:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Allowance for Loan Losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Individually evaluated for impairment
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
23
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
23
|
|
Collectively evaluated for impairment
|
2,087
|
|
|
7,248
|
|
|
3,046
|
|
|
48
|
|
|
—
|
|
|
12,429
|
|
||||||
Acquired impaired loans
|
8
|
|
|
107
|
|
|
234
|
|
|
—
|
|
|
—
|
|
|
349
|
|
||||||
Total
|
$
|
2,095
|
|
|
$
|
7,355
|
|
|
$
|
3,303
|
|
|
$
|
48
|
|
|
$
|
—
|
|
|
$
|
12,801
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Individually evaluated for impairment
|
$
|
43
|
|
|
$
|
2,186
|
|
|
$
|
2,588
|
|
|
$
|
27
|
|
|
$
|
—
|
|
|
$
|
4,844
|
|
Collectively evaluated for impairment
|
208,258
|
|
|
610,462
|
|
|
307,600
|
|
|
4,988
|
|
|
—
|
|
|
1,131,308
|
|
||||||
Acquired impaired loans
|
416
|
|
|
12,570
|
|
|
15,667
|
|
|
16
|
|
|
—
|
|
|
28,669
|
|
||||||
Total
|
$
|
208,717
|
|
|
$
|
625,218
|
|
|
$
|
325,855
|
|
|
$
|
5,031
|
|
|
$
|
—
|
|
|
$
|
1,164,821
|
|
|
Commercial
|
|
Commercial
Real Estate
|
|
Residential
Real Estate
|
|
Consumer
|
|
Unallocated
|
|
Total
|
||||||||||||
Allowance for Loan Losses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance at December 31, 2014
|
$
|
1,818
|
|
|
$
|
6,814
|
|
|
$
|
3,715
|
|
|
$
|
80
|
|
|
$
|
—
|
|
|
$
|
12,427
|
|
Charge-offs
|
(175
|
)
|
|
(482
|
)
|
|
(323
|
)
|
|
(220
|
)
|
|
—
|
|
|
(1,200
|
)
|
||||||
Recoveries
|
32
|
|
|
124
|
|
|
139
|
|
|
129
|
|
|
—
|
|
|
424
|
|
||||||
Provision
|
390
|
|
|
474
|
|
|
15
|
|
|
71
|
|
|
—
|
|
|
950
|
|
||||||
Balance at December 31, 2015
|
$
|
2,065
|
|
|
$
|
6,930
|
|
|
$
|
3,546
|
|
|
$
|
60
|
|
|
$
|
—
|
|
|
$
|
12,601
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance at December 31, 2015:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Allowance for Loan Losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Individually evaluated for impairment
|
$
|
—
|
|
|
$
|
9
|
|
|
$
|
26
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
35
|
|
Collectively evaluated for impairment
|
2,065
|
|
|
6,750
|
|
|
3,284
|
|
|
60
|
|
|
—
|
|
|
12,159
|
|
||||||
Acquired impaired loans
|
—
|
|
|
171
|
|
|
236
|
|
|
—
|
|
|
—
|
|
|
407
|
|
||||||
Total
|
$
|
2,065
|
|
|
$
|
6,930
|
|
|
$
|
3,546
|
|
|
$
|
60
|
|
|
$
|
—
|
|
|
$
|
12,601
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Individually evaluated for impairment
|
$
|
95
|
|
|
$
|
2,245
|
|
|
$
|
2,346
|
|
|
$
|
21
|
|
|
$
|
—
|
|
|
$
|
4,707
|
|
Collectively evaluated for impairment
|
176,798
|
|
|
487,177
|
|
|
297,281
|
|
|
5,684
|
|
|
—
|
|
|
966,940
|
|
||||||
Acquired impaired loans
|
588
|
|
|
13,732
|
|
|
19,256
|
|
|
302
|
|
|
—
|
|
|
33,878
|
|
||||||
Total
|
$
|
177,481
|
|
|
$
|
503,154
|
|
|
$
|
318,883
|
|
|
$
|
6,007
|
|
|
$
|
—
|
|
|
$
|
1,005,525
|
|
|
December 31,
|
||||||
|
2016
|
|
2015
|
||||
Land
|
$
|
6,891
|
|
|
$
|
6,077
|
|
Buildings
|
25,616
|
|
|
23,481
|
|
||
Leasehold improvements
|
1,078
|
|
|
1,399
|
|
||
Furniture and equipment
|
16,372
|
|
|
18,686
|
|
||
|
49,957
|
|
|
49,643
|
|
||
Accumulated depreciation
|
(24,518
|
)
|
|
(26,076
|
)
|
||
Premises and equipment, net
|
$
|
25,439
|
|
|
$
|
23,567
|
|
|
Minimum Lease
|
||
Year
|
Payments
|
||
2017
|
$
|
878
|
|
2018
|
650
|
|
|
2019
|
155
|
|
|
2020
|
36
|
|
|
2021
|
13
|
|
|
2022 and after
|
23
|
|
|
|
$
|
1,755
|
|
|
Goodwill
|
|
Intangibles
|
||||
Balance at December 31, 2015
|
$
|
43,872
|
|
|
$
|
2,683
|
|
Amortization
|
—
|
|
|
(964
|
)
|
||
Balance at December 31, 2016
|
$
|
43,872
|
|
|
$
|
1,719
|
|
|
Gross Carrying
Value
|
|
Accumulated
Amortization
|
|
Net Carrying
Value
|
||||||
December 31, 2016
|
|
|
|
|
|
||||||
Core deposit intangibles
|
$
|
11,508
|
|
|
$
|
(9,789
|
)
|
|
$
|
1,719
|
|
Goodwill
|
43,872
|
|
|
—
|
|
|
43,872
|
|
|||
|
|
|
|
|
|
||||||
December 31, 2015
|
|
|
|
|
|
|
|
|
|||
Core deposit intangibles
|
$
|
11,508
|
|
|
$
|
(8,825
|
)
|
|
$
|
2,683
|
|
Goodwill
|
43,872
|
|
|
—
|
|
|
43,872
|
|
Year
|
Amount
|
||
2017
|
$
|
528
|
|
2018
|
265
|
|
|
2019
|
219
|
|
|
2020
|
207
|
|
|
2021
|
197
|
|
|
2022 and after
|
303
|
|
|
Total
|
$
|
1,719
|
|
Year
|
Amount
|
||
2017
|
$
|
160,218
|
|
2018
|
57,268
|
|
|
2019
|
31,902
|
|
|
2020
|
30,640
|
|
|
2021
|
94,119
|
|
|
2022 and after
|
4,708
|
|
|
Total
|
$
|
378,855
|
|
|
December 31, 2016
|
|
December 31, 2015
|
||||||||||
|
Amount
|
|
Weighted
Average
Rate
|
|
Amount
|
|
Weighted
Average
Rate
|
||||||
Customer repurchase agreements
|
$
|
39,166
|
|
|
0.01
|
%
|
|
$
|
40,611
|
|
|
0.02
|
%
|
Other short-term borrowings
|
20,000
|
|
|
0.80
|
%
|
|
—
|
|
|
—
|
%
|
||
|
$
|
59,166
|
|
|
|
|
$
|
40,611
|
|
|
|
|
2016
|
|
|
2015
|
||||||||||
Due by
|
Advance
Amount
|
|
Weighted
Average
Rate
|
|
Due by
|
Advance Amount
|
|
Weighted
Average
Rate
|
||||||
November 30, 2017
|
$
|
9,980
|
|
|
2.98
|
%
|
|
November 30, 2017
|
$
|
9,958
|
|
|
2.98
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal Amount
|
||||||
|
|
|
|
|
|
|
|
December 31,
|
||||||
Issuing Entity
|
|
Date
Issued
|
|
Interest
Rate
|
|
Maturity
Date
|
|
2016
|
|
2015
|
||||
AMNB Trust I
|
|
4/7/2006
|
|
Libor plus 1.35%
|
|
6/30/2036
|
|
$
|
20,619
|
|
|
$
|
20,619
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
MidCarolina Trust I
|
|
10/29/2002
|
|
Libor plus 3.45%
|
|
11/7/2032
|
|
4,265
|
|
|
4,209
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
MidCarolina Trust II
|
|
12/3/2003
|
|
Libor plus 2.95%
|
|
10/7/2033
|
|
2,840
|
|
|
2,794
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
$
|
27,724
|
|
|
$
|
27,622
|
|
Restricted Stock
|
Shares
|
|
Weighted
Average Grant
Date Value
|
|||
Nonvested at December 31, 2015
|
41,563
|
|
|
$
|
22.15
|
|
Granted
|
29,025
|
|
|
23.55
|
|
|
Vested
|
(19,219
|
)
|
|
21.47
|
|
|
Forfeited
|
(547
|
)
|
|
21.98
|
|
|
Nonvested at December 31, 2016
|
50,822
|
|
|
23.21
|
|
|
December 31,
|
||||||
|
2016
|
|
2015
|
||||
Deferred tax assets:
|
|
|
|
||||
Allowance for loan losses
|
$
|
4,480
|
|
|
$
|
4,410
|
|
Nonaccrual loan interest
|
610
|
|
|
576
|
|
||
Other real estate owned valuation allowance
|
199
|
|
|
360
|
|
||
Deferred compensation
|
1,335
|
|
|
1,353
|
|
||
Net unrealized losses on securities
|
81
|
|
|
—
|
|
||
Acquisition accounting adjustments
|
3,215
|
|
|
4,641
|
|
||
Accrued pension liability
|
100
|
|
|
—
|
|
||
Other
|
796
|
|
|
840
|
|
||
Total deferred tax assets
|
10,816
|
|
|
12,180
|
|
||
|
|
|
|
||||
Deferred tax liabilities:
|
|
|
|
||||
Depreciation
|
1,030
|
|
|
951
|
|
||
Accretion of discounts on securities
|
113
|
|
|
320
|
|
||
Core deposit intangibles
|
602
|
|
|
939
|
|
||
Net unrealized gains on securities
|
—
|
|
|
2,219
|
|
||
Prepaid pension expense
|
—
|
|
|
9
|
|
||
Trust preferred fair value adjustment
|
581
|
|
|
616
|
|
||
Other
|
243
|
|
|
239
|
|
||
Total deferred tax liabilities
|
2,569
|
|
|
5,293
|
|
||
Net deferred tax assets
|
$
|
8,247
|
|
|
$
|
6,887
|
|
|
Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Current tax expense
|
$
|
6,125
|
|
|
$
|
4,279
|
|
|
$
|
5,153
|
|
Deferred tax expense
|
882
|
|
|
1,741
|
|
|
49
|
|
|||
Total income tax expense
|
$
|
7,007
|
|
|
$
|
6,020
|
|
|
$
|
5,202
|
|
|
Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Expected federal tax expense
|
$
|
8,158
|
|
|
$
|
7,371
|
|
|
$
|
6,280
|
|
Nondeductible interest expense
|
94
|
|
|
78
|
|
|
63
|
|
|||
Tax-exempt interest
|
(1,265
|
)
|
|
(1,338
|
)
|
|
(1,370
|
)
|
|||
State income taxes
|
296
|
|
|
222
|
|
|
405
|
|
|||
Other, net
|
(276
|
)
|
|
(313
|
)
|
|
(176
|
)
|
|||
Total income tax expense
|
$
|
7,007
|
|
|
$
|
6,020
|
|
|
$
|
5,202
|
|
|
Years Ended December 31,
|
|||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|||||||||||||||
|
Shares
|
|
Per Share
Amount
|
|
Shares
|
|
Per Share
Amount
|
|
Shares
|
|
Per Share
Amount
|
|||||||||
Basic earnings per share
|
8,611,507
|
|
|
$
|
1.89
|
|
|
8,680,502
|
|
|
$
|
1.73
|
|
|
7,867,198
|
|
|
$
|
1.62
|
|
Effect of dilutive securities - stock options
|
9,734
|
|
|
—
|
|
|
7,948
|
|
|
—
|
|
|
10,378
|
|
|
—
|
|
|||
Diluted earnings per share
|
8,621,241
|
|
|
$
|
1.89
|
|
|
8,688,450
|
|
|
$
|
1.73
|
|
|
7,877,576
|
|
|
$
|
1.62
|
|
|
December 31,
|
||||||
|
2016
|
|
2015
|
||||
Commitments to extend credit
|
$
|
345,803
|
|
|
$
|
301,360
|
|
Standby letters of credit
|
4,088
|
|
|
4,286
|
|
||
Mortgage loan rate lock commitments
|
12,839
|
|
|
5,365
|
|
Balance at December 31, 2015
|
$
|
16,338
|
|
Additions
|
21,676
|
|
|
Repayments
|
(15,846
|
)
|
|
Reclassifications
(1)
|
(90
|
)
|
|
Balance at December 31, 2016
|
$
|
22,078
|
|
|
As of and for the Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Change in Benefit Obligation:
|
|
|
|
|
|
||||||
Projected benefit obligation at beginning of year
|
$
|
8,453
|
|
|
$
|
10,710
|
|
|
$
|
8,996
|
|
Service cost
|
—
|
|
|
—
|
|
|
—
|
|
|||
Interest cost
|
269
|
|
|
297
|
|
|
304
|
|
|||
Actuarial (gain) loss
|
352
|
|
|
(100
|
)
|
|
1,606
|
|
|||
Settlement gain
|
(51
|
)
|
|
—
|
|
|
—
|
|
|||
Benefits paid
|
(1,091
|
)
|
|
(2,454
|
)
|
|
(196
|
)
|
|||
Projected benefit obligation at end of year
|
7,932
|
|
|
8,453
|
|
|
10,710
|
|
|||
|
|
|
|
|
|
||||||
Change in Plan Assets:
|
|
|
|
|
|
|
|
|
|||
Fair value of plan assets at beginning of year
|
8,428
|
|
|
10,949
|
|
|
10,870
|
|
|||
Actual return on plan assets
|
310
|
|
|
(67
|
)
|
|
275
|
|
|||
Benefits paid
|
(1,091
|
)
|
|
(2,454
|
)
|
|
(196
|
)
|
|||
Fair value of plan assets at end of year
|
7,647
|
|
|
8,428
|
|
|
10,949
|
|
|||
|
|
|
|
|
|
||||||
Funded Status at End of Year
|
$
|
(285
|
)
|
|
$
|
(25
|
)
|
|
$
|
239
|
|
|
|
|
|
|
|
||||||
Amounts Recognized in the Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
|||
Other (liabilities) assets
|
$
|
(285
|
)
|
|
$
|
(25
|
)
|
|
$
|
239
|
|
|
|
|
|
|
|
||||||
Amounts Recognized in Accumulated Other Comprehensive Loss
|
|
|
|
|
|
|
|
|
|||
Net actuarial loss
|
$
|
2,652
|
|
|
$
|
2,818
|
|
|
$
|
3,356
|
|
Deferred income taxes
|
(928
|
)
|
|
(986
|
)
|
|
(1,175
|
)
|
|||
Amount recognized
|
$
|
1,724
|
|
|
$
|
1,832
|
|
|
$
|
2,181
|
|
|
|
|
|
|
|
||||||
|
As of and for the Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Components of Net Periodic Benefit Cost
|
|
|
|
|
|
|
|
|
|||
Service cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest cost
|
269
|
|
|
297
|
|
|
304
|
|
|||
Expected return on plan assets
|
(385
|
)
|
|
(459
|
)
|
|
(469
|
)
|
|||
Recognized net loss due to settlement
|
315
|
|
|
671
|
|
|
—
|
|
|||
Recognized net actuarial loss
|
228
|
|
|
293
|
|
|
73
|
|
|||
Net periodic benefit cost
|
$
|
427
|
|
|
$
|
802
|
|
|
$
|
(92
|
)
|
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Income) Loss
|
|
|
|
|
|
||||||
Net actuarial (gain) loss
|
$
|
(166
|
)
|
|
$
|
(538
|
)
|
|
$
|
1,728
|
|
Amortization of prior service cost
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total recognized in other comprehensive (income) loss
|
$
|
(166
|
)
|
|
$
|
(538
|
)
|
|
$
|
1,728
|
|
|
|
|
|
|
|
||||||
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive (Income) Loss
|
$
|
262
|
|
|
$
|
264
|
|
|
$
|
1,636
|
|
Asset Category
|
December 31,
|
||||
|
2016
|
|
2015
|
||
Fixed Income
|
51.3
|
%
|
|
59.5
|
%
|
Equity
|
38.0
|
%
|
|
32.0
|
%
|
Cash and Accrued Income
|
10.7
|
%
|
|
8.5
|
%
|
Total
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
Fair Value Measurements at December 31, 2016 using
|
||||||||||||
|
Balance at December 31,
|
|
Quoted Prices
in Active
Markets for
Identical Assets
|
|
Significant
Other
Observable
Inputs
|
|
Significant
Unobservable
Inputs
|
||||||||
Asset Category
|
2016
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Cash
|
$
|
780
|
|
|
$
|
780
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Fixed income securities
|
|
|
|
|
|
|
|
|
|
|
|
||||
Government sponsored entities
|
1,496
|
|
|
—
|
|
|
1,496
|
|
|
—
|
|
||||
Municipal bonds and notes
|
1,453
|
|
|
—
|
|
|
1,453
|
|
|
—
|
|
||||
Corporate bonds and notes
|
973
|
|
|
—
|
|
|
973
|
|
|
—
|
|
||||
Equity securities
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. companies
|
2,505
|
|
|
2,505
|
|
|
—
|
|
|
—
|
|
||||
Foreign companies
|
440
|
|
|
440
|
|
|
—
|
|
|
—
|
|
||||
|
$
|
7,647
|
|
|
$
|
3,725
|
|
|
$
|
3,922
|
|
|
$
|
—
|
|
|
|
|
Fair Value Measurements at December 31, 2015 using
|
||||||||||||
|
Balance at December 31,
|
|
Quoted Prices
in Active
Markets for
Identical Assets
|
|
Significant
Other
Observable
Inputs
|
|
Significant
Unobservable
Inputs
|
||||||||
Asset Category
|
2015
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Cash
|
$
|
675
|
|
|
$
|
675
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Fixed income securities
|
|
|
|
|
|
|
|
|
|
|
|
||||
Government sponsored entities
|
2,287
|
|
|
—
|
|
|
2,287
|
|
|
—
|
|
||||
Municipal bonds and notes
|
1,084
|
|
|
—
|
|
|
1,084
|
|
|
—
|
|
||||
Corporate bonds and notes
|
1,641
|
|
|
—
|
|
|
1,641
|
|
|
—
|
|
||||
Equity securities
|
|
|
|
|
|
|
|
|
|
|
|||||
U.S. companies
|
2,481
|
|
|
2,481
|
|
|
—
|
|
|
—
|
|
||||
Foreign companies
|
260
|
|
|
260
|
|
|
—
|
|
|
—
|
|
||||
|
$
|
8,428
|
|
|
$
|
3,416
|
|
|
$
|
5,012
|
|
|
$
|
—
|
|
Year
|
Amount
|
||
2017
|
$
|
1,033
|
|
2018
|
514
|
|
|
2019
|
1,053
|
|
|
2020
|
423
|
|
|
2021
|
624
|
|
|
2022-2026
|
3,151
|
|
Level 1 –
|
Valuation is based on quoted prices in active markets for identical assets and liabilities.
|
Level 2 –
|
Valuation is based on observable inputs including quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets and liabilities in less active markets, and model-based valuation techniques for which significant assumptions can be derived primarily from or corroborated by observable data in the market.
|
Level 3 –
|
Valuation is based on model-based techniques that use one or more significant inputs or assumptions that are unobservable in the market.
|
|
|
|
Fair Value Measurements at December 31, 2016 Using
|
||||||||||||
|
Balance as of December 31,
|
|
Quoted Prices
in Active
Markets for
Identical Assets
|
|
Significant
Other
Observable
Inputs
|
|
Significant
Unobservable Inputs
|
||||||||
Description
|
2016
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Securities available for sale:
|
|
|
|
|
|
|
|
||||||||
Federal agencies and GSEs
|
$
|
104,054
|
|
|
$
|
—
|
|
|
$
|
104,054
|
|
|
$
|
—
|
|
Mortgage-backed and CMOs
|
79,493
|
|
|
—
|
|
|
79,493
|
|
|
—
|
|
||||
State and municipal
|
147,515
|
|
|
—
|
|
|
147,515
|
|
|
—
|
|
||||
Corporate
|
13,492
|
|
|
—
|
|
|
13,492
|
|
|
—
|
|
||||
Equity securities
|
1,948
|
|
|
—
|
|
|
1,948
|
|
|
—
|
|
||||
Total
|
$
|
346,502
|
|
|
$
|
—
|
|
|
$
|
346,502
|
|
|
$
|
—
|
|
|
|
|
Fair Value Measurements at December 31, 2015 Using
|
||||||||||||
|
Balance as of December 31,
|
|
Quoted Prices
in Active
Markets for
Identical Assets
|
|
Significant
Other
Observable
Inputs
|
|
Significant
Unobservable
Inputs
|
||||||||
Description
|
2015
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Securities available for sale:
|
|
|
|
|
|
|
|
||||||||
Federal agencies and GSEs
|
$
|
81,452
|
|
|
$
|
—
|
|
|
$
|
81,452
|
|
|
$
|
—
|
|
Mortgage-backed and CMOs
|
70,930
|
|
|
—
|
|
|
70,930
|
|
|
—
|
|
||||
State and municipal
|
175,891
|
|
|
—
|
|
|
175,891
|
|
|
—
|
|
||||
Corporate
|
10,590
|
|
|
—
|
|
|
10,590
|
|
|
—
|
|
||||
Equity Securities
|
1,486
|
|
|
—
|
|
|
—
|
|
|
1,486
|
|
||||
Total
|
$
|
340,349
|
|
|
$
|
—
|
|
|
$
|
338,863
|
|
|
$
|
1,486
|
|
|
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
|
||||||||||||||||||||||
|
Balances as of January 1, 2016
|
|
Total Realized / Unrealized Gains
(Losses) Included in
|
|
Purchases, Sales, Issuances and Settlements, Net
|
|
Transfer In (Out) of Level 3
|
|
Balances as of December 31, 2016
|
||||||||||||||
Net Income
|
|
Other Comprehensive Income
|
|
||||||||||||||||||||
Securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity
|
$
|
1,486
|
|
|
$
|
—
|
|
|
$
|
93
|
|
|
$
|
—
|
|
|
$
|
(1,579
|
)
|
|
$
|
—
|
|
Total assets
|
$
|
1,486
|
|
|
$
|
—
|
|
|
$
|
93
|
|
|
$
|
—
|
|
|
$
|
(1,579
|
)
|
|
$
|
—
|
|
|
|
|
Fair Value Measurements at December 31, 2016 Using
|
||||||||||||
|
Balance as of December 31,
|
|
Quoted Prices in
Active Markets
for Identical
Assets
|
|
Significant
Other
Observable
Inputs
|
|
Significant
Unobservable
Inputs
|
||||||||
Description
|
2016
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Loans held for sale
|
$
|
5,996
|
|
|
$
|
—
|
|
|
$
|
5,996
|
|
|
$
|
—
|
|
Impaired loans, net of valuation allowance
|
2,151
|
|
|
—
|
|
|
—
|
|
|
2,151
|
|
||||
Other real estate owned, net
|
1,328
|
|
|
—
|
|
|
—
|
|
|
1,328
|
|
|
|
|
Fair Value Measurements at December 31, 2015 Using
|
||||||||||||
|
Balance as of December 31,
|
|
Quoted Prices in
Active Markets
for Identical
Assets
|
|
Significant
Other
Observable
Inputs
|
|
Significant
Unobservable
Inputs
|
||||||||
Description
|
2015
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Loans held for sale
|
$
|
3,266
|
|
|
$
|
—
|
|
|
$
|
3,266
|
|
|
$
|
—
|
|
Impaired loans, net of valuation allowance
|
2,948
|
|
|
—
|
|
|
—
|
|
|
2,948
|
|
||||
Other real estate owned, net
|
2,184
|
|
|
—
|
|
|
—
|
|
|
2,184
|
|
Assets
|
|
Valuation Technique
|
|
Unobservable Input
|
|
Weighted
Rate
|
|
|
|
|
|
|
|
|
|
Impaired loans
|
|
Discounted appraised value
|
|
Selling cost
|
|
8
|
%
|
|
|
|
|
|
|
|
|
Other real estate owned
|
|
Discounted appraised value
|
|
Selling cost
|
|
6
|
%
|
Assets
|
|
Valuation Technique
|
|
Unobservable Input
|
|
Weighted
Rate
|
|
|
|
|
|
|
|
|
|
Securities available for sale
|
|
Third party model based techniques
|
|
Stock price in different rate environments
|
|
49
|
%
|
|
|
|
|
|
|
|
|
Impaired loans
|
|
Discounted appraised value
|
|
Selling cost
|
|
6
|
%
|
|
|
Discounted cash flow analysis
|
|
Market rate for borrower (discount rate)
|
|
4
|
%
|
|
|
|
|
|
|
|
|
Other real estate owned
|
|
Discounted appraised value
|
|
Selling cost
|
|
6
|
%
|
|
Fair Value Measurements at December 31, 2016 Using
|
||||||||||||||||||
|
Carrying Value
|
|
Quoted Prices in Active Markets for Identical Assets
|
|
Significant Other Observable Inputs
|
|
Significant Unobservable Inputs
|
|
Fair Value
Balance
|
||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|||||||||||||
Financial Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
53,207
|
|
|
$
|
53,207
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
53,207
|
|
Securities available for sale
|
346,502
|
|
|
—
|
|
|
346,502
|
|
|
—
|
|
|
346,502
|
|
|||||
Restricted stock
|
6,224
|
|
|
—
|
|
|
6,224
|
|
|
—
|
|
|
6,224
|
|
|||||
Loans held for sale
|
5,996
|
|
|
—
|
|
|
5,996
|
|
|
—
|
|
|
5,996
|
|
|||||
Loans, net of allowance
|
1,152,020
|
|
|
—
|
|
|
—
|
|
|
1,136,961
|
|
|
1,136,961
|
|
|||||
Bank owned life insurance
|
18,163
|
|
|
—
|
|
|
18,163
|
|
|
—
|
|
|
18,163
|
|
|||||
Accrued interest receivable
|
5,083
|
|
|
—
|
|
|
5,083
|
|
|
—
|
|
|
5,083
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Deposits
|
$
|
1,370,640
|
|
|
$
|
—
|
|
|
$
|
991,785
|
|
|
$
|
374,774
|
|
|
$
|
1,366,559
|
|
Repurchase agreements
|
39,166
|
|
|
—
|
|
|
39,166
|
|
|
—
|
|
|
39,166
|
|
|||||
Other short-term borrowings
|
20,000
|
|
|
—
|
|
|
20,000
|
|
|
—
|
|
|
20,000
|
|
|||||
Long-term borrowings
|
9,980
|
|
|
—
|
|
|
—
|
|
|
10,156
|
|
|
10,156
|
|
|||||
Junior subordinated debt
|
27,724
|
|
|
—
|
|
|
—
|
|
|
24,932
|
|
|
24,932
|
|
|||||
Accrued interest payable
|
623
|
|
|
—
|
|
|
623
|
|
|
—
|
|
|
623
|
|
|
Fair Value Measurements at December 31, 2015 Using
|
||||||||||||||||||
|
Carrying Value
|
|
Quoted Prices in Active Markets for Identical Assets
|
|
Significant Other Observable Inputs
|
|
Significant Unobservable Inputs
|
|
Fair Value
Balance
|
||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|||||||||||||
Financial Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
95,337
|
|
|
$
|
95,337
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
95,337
|
|
Securities available for sale
|
340,349
|
|
|
—
|
|
|
338,863
|
|
|
1,486
|
|
|
340,349
|
|
|||||
Restricted stock
|
5,312
|
|
|
—
|
|
|
5,312
|
|
|
—
|
|
|
5,312
|
|
|||||
Loans held for sale
|
3,266
|
|
|
—
|
|
|
3,266
|
|
|
—
|
|
|
3,266
|
|
|||||
Loans, net of allowance
|
992,924
|
|
|
—
|
|
|
—
|
|
|
994,808
|
|
|
994,808
|
|
|||||
Bank owned life insurance
|
17,658
|
|
|
—
|
|
|
17,658
|
|
|
—
|
|
|
17,658
|
|
|||||
Accrued interest receivable
|
4,116
|
|
|
—
|
|
|
4,116
|
|
|
—
|
|
|
4,116
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Deposits
|
$
|
1,262,660
|
|
|
$
|
—
|
|
|
$
|
865,350
|
|
|
$
|
396,551
|
|
|
$
|
1,261,901
|
|
Repurchase agreements
|
40,611
|
|
|
—
|
|
|
40,611
|
|
|
—
|
|
|
40,611
|
|
|||||
Other borrowings
|
9,958
|
|
|
—
|
|
|
—
|
|
|
10,293
|
|
|
10,293
|
|
|||||
Junior subordinated debt
|
27,622
|
|
|
—
|
|
|
—
|
|
|
22,940
|
|
|
22,940
|
|
|||||
Accrued interest payable
|
655
|
|
|
—
|
|
|
655
|
|
|
—
|
|
|
655
|
|
|
Actual
|
|
Required for Capital Adequacy Purposes*
|
|
To Be Well
Capitalized Under Prompt Corrective Action Provisions |
|||||||||||||||
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
|
Ratio
|
||||||||
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Common Equity Tier 1
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
$
|
158,350
|
|
|
11.77
|
%
|
|
$
|
60,561
|
|
|
>5.125
|
%
|
|
|
|
|
|||
Bank
|
172,927
|
|
|
12.92
|
|
|
60,216
|
|
|
>5.125
|
|
|
$
|
86,979
|
|
|
>6.50
|
%
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Tier 1 Capital
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
186,074
|
|
|
13.83
|
|
|
80,748
|
|
|
>6.625
|
|
|
|
|
|
|||||
Bank
|
172,927
|
|
|
12.92
|
|
|
80,288
|
|
|
>6.625
|
|
|
107,051
|
|
|
>8.00
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total Capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Company
|
199,375
|
|
|
14.81
|
|
|
107,664
|
|
|
>8.625
|
|
|
|
|
|
|||||
Bank
|
185,931
|
|
|
13.89
|
|
|
107,051
|
|
|
>8.625
|
|
|
133,814
|
|
|
>10.00
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Leverage Capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Company
|
186,074
|
|
|
11.67
|
|
|
63,761
|
|
|
>4.00
|
|
|
|
|
|
|||||
Bank
|
172,927
|
|
|
10.88
|
|
|
63,571
|
|
|
>4.00
|
|
|
79,464
|
|
|
>5.00
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Common Equity Tier 1
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
$
|
150,916
|
|
|
12.88
|
%
|
|
$
|
52,739
|
|
|
>4.50
|
%
|
|
|
|
|
|||
Bank
|
170,741
|
|
|
14.58
|
|
|
52,691
|
|
|
>4.50
|
|
|
$
|
76,109
|
|
|
>6.50
|
%
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Tier 1 Capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Company
|
178,538
|
|
|
15.23
|
|
|
70,319
|
|
|
>6.00
|
|
|
|
|
|
|||||
Bank
|
170,741
|
|
|
14.58
|
|
|
70,255
|
|
|
>6.00
|
|
|
93,673
|
|
|
>8.00
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total Capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Company
|
191,542
|
|
|
16.34
|
|
|
93,758
|
|
|
>8.00
|
|
|
|
|
|
|||||
Bank
|
183,526
|
|
|
15.67
|
|
|
93,673
|
|
|
>8.00
|
|
|
117,091
|
|
|
>10.00
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Leverage Capital
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
178,538
|
|
|
12.05
|
|
|
59,260
|
|
|
>4.00
|
|
|
|
|
|
|||||
Bank
|
170,741
|
|
|
11.54
|
|
|
59,187
|
|
|
>4.00
|
|
|
73,984
|
|
|
>5.00
|
|
*
|
Except with regard to the Company's and the Bank's leverage capital ratio, includes the current phased-in portion of the Basel III Capital Rules capital conservation buffer (0.625%) which is added to the minimum capital requirements for capital adequacy purposes. The capital conservation buffer requirement began being phased in effective January 1, 2016, at 0.625% of risk-weighted assets, increasing by the same amount each year until fully implemented at 2.5% on January 1, 2019. The capital conservation buffer is designed to absorb losses during periods of economic stress. Banking institutions with a ratio of common equity Tier 1 to risk-weighted assets above the minimum but below the conservation buffer will face constraints on dividends, equity repurchases, and compensation based on the amount of the shortfall.
|
|
|
|
|
|
2016
|
|
|
|
|
||||||||||
|
Community
Banking
|
|
Trust and
Investment
Services
|
|
Other
|
|
Intersegment
Eliminations
|
|
Total
|
||||||||||
Interest income
|
$
|
56,076
|
|
|
$
|
—
|
|
|
$
|
94
|
|
|
$
|
—
|
|
|
$
|
56,170
|
|
Interest expense
|
5,438
|
|
|
—
|
|
|
878
|
|
|
—
|
|
|
6,316
|
|
|||||
Noninterest income
|
8,848
|
|
|
4,634
|
|
|
23
|
|
|
—
|
|
|
13,505
|
|
|||||
Income (loss) before income taxes
|
22,230
|
|
|
2,623
|
|
|
(1,545
|
)
|
|
—
|
|
|
23,308
|
|
|||||
Net income (loss)
|
15,486
|
|
|
1,835
|
|
|
(1,020
|
)
|
|
—
|
|
|
16,301
|
|
|||||
Depreciation and amortization
|
2,845
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
2,856
|
|
|||||
Total assets
|
1,669,629
|
|
|
—
|
|
|
229,241
|
|
|
(220,232
|
)
|
|
1,678,638
|
|
|||||
Goodwill
|
43,872
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
43,872
|
|
|||||
Capital expenditures
|
3,609
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
3,613
|
|
|
|
|
|
|
2015
|
|
|
|
|
||||||||||
|
Community
Banking
|
|
Trust and
Investment
Services
|
|
Other
|
|
Intersegment
Eliminations
|
|
Total
|
||||||||||
Interest income
|
$
|
55,109
|
|
|
$
|
—
|
|
|
$
|
60
|
|
|
$
|
—
|
|
|
$
|
55,169
|
|
Interest expense
|
5,144
|
|
|
—
|
|
|
760
|
|
|
—
|
|
|
5,904
|
|
|||||
Noninterest income
|
8,386
|
|
|
4,881
|
|
|
20
|
|
|
—
|
|
|
13,287
|
|
|||||
Income (loss) before income taxes
|
19,398
|
|
|
2,737
|
|
|
(1,076
|
)
|
|
—
|
|
|
21,059
|
|
|||||
Net income (loss)
|
13,793
|
|
|
1,956
|
|
|
(710
|
)
|
|
—
|
|
|
15,039
|
|
|||||
Depreciation and amortization
|
3,022
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
3,034
|
|
|||||
Total assets
|
1,545,377
|
|
|
—
|
|
|
225,533
|
|
|
(223,311
|
)
|
|
1,547,599
|
|
|||||
Goodwill
|
43,872
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
43,872
|
|
|||||
Capital expenditures
|
1,453
|
|
|
21
|
|
|
—
|
|
|
—
|
|
|
1,474
|
|
|
|
|
|
|
2014
|
|
|
|
|
||||||||||
|
Community
Banking
|
|
Trust and
Investment
Services
|
|
Other
|
|
Intersegment
Eliminations
|
|
Total
|
||||||||||
Interest income
|
$
|
47,395
|
|
|
$
|
—
|
|
|
$
|
60
|
|
|
$
|
—
|
|
|
$
|
47,455
|
|
Interest expense
|
4,988
|
|
|
—
|
|
|
742
|
|
|
—
|
|
|
5,730
|
|
|||||
Noninterest income
|
6,317
|
|
|
4,840
|
|
|
19
|
|
|
—
|
|
|
11,176
|
|
|||||
Income (loss) before income taxes
|
15,953
|
|
|
3,012
|
|
|
(1,022
|
)
|
|
—
|
|
|
17,943
|
|
|||||
Net income (loss)
|
11,277
|
|
|
2,138
|
|
|
(674
|
)
|
|
—
|
|
|
12,741
|
|
|||||
Depreciation and amortization
|
2,791
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
2,802
|
|
|||||
Total assets
|
1,338,465
|
|
|
—
|
|
|
201,482
|
|
|
(193,455
|
)
|
|
1,346,492
|
|
|||||
Goodwill
|
39,043
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
39,043
|
|
|||||
Capital expenditures
|
1,046
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
1,049
|
|
|
December 31,
|
||||||
Condensed Balance Sheets
|
2016
|
|
2015
|
||||
Cash
|
$
|
4,654
|
|
|
$
|
5,571
|
|
Securities available for sale, at fair value
|
8,355
|
|
|
1,486
|
|
||
Investment in subsidiaries
|
216,340
|
|
|
218,543
|
|
||
Due from subsidiaries
|
120
|
|
|
85
|
|
||
Other assets
|
40
|
|
|
18
|
|
||
Total Assets
|
$
|
229,509
|
|
|
$
|
225,703
|
|
|
|
|
|
||||
Junior subordinated debt
|
$
|
27,724
|
|
|
$
|
27,622
|
|
Other liabilities
|
405
|
|
|
246
|
|
||
Shareholders' equity
|
201,380
|
|
|
197,835
|
|
||
Total Liabilities and Shareholders' Equity
|
$
|
229,509
|
|
|
$
|
225,703
|
|
|
Years Ended December 31,
|
||||||||||
Condensed Statements of Income
|
2016
|
|
2015
|
|
2014
|
||||||
Dividends from subsidiary
|
$
|
16,000
|
|
|
$
|
11,000
|
|
|
$
|
17,000
|
|
Other income
|
117
|
|
|
80
|
|
|
79
|
|
|||
Expenses
|
1,662
|
|
|
1,156
|
|
|
1,100
|
|
|||
Income taxes (benefit)
|
(526
|
)
|
|
(366
|
)
|
|
(347
|
)
|
|||
Income before equity in undistributed earnings of subsidiary
|
14,981
|
|
|
10,290
|
|
|
16,326
|
|
|||
Equity in (distributed) undistributed earnings of subsidiary
|
1,320
|
|
|
4,749
|
|
|
(3,585
|
)
|
|||
Net Income
|
$
|
16,301
|
|
|
$
|
15,039
|
|
|
$
|
12,741
|
|
|
Years Ended December 31,
|
||||||||||
Condensed Statements of Cash Flows
|
2016
|
|
2015
|
|
2014
|
||||||
Cash Flows from Operating Activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
16,301
|
|
|
$
|
15,039
|
|
|
$
|
12,741
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Equity in (undistributed) distributions of subsidiary
|
(1,320
|
)
|
|
(4,749
|
)
|
|
3,585
|
|
|||
Net change in other assets
|
(57
|
)
|
|
257
|
|
|
(17
|
)
|
|||
Net change in other liabilities
|
163
|
|
|
106
|
|
|
102
|
|
|||
Net cash provided by operating activities
|
15,087
|
|
|
10,653
|
|
|
16,411
|
|
|||
Cash Flows from Investing Activities:
|
|
|
|
|
|
||||||
Purchases of securities available for sale
|
(6,588
|
)
|
|
—
|
|
|
—
|
|
|||
Investment in banking subsidiary
|
—
|
|
|
563
|
|
|
—
|
|
|||
Cash paid in bank acquisition
|
—
|
|
|
(5,935
|
)
|
|
—
|
|
|||
Net cash used in investing activities
|
(6,588
|
)
|
|
(5,372
|
)
|
|
—
|
|
|||
Cash Flows from Financing Activities:
|
|
|
|
|
|
||||||
Common stock dividends paid
|
(8,266
|
)
|
|
(8,068
|
)
|
|
(7,237
|
)
|
|||
Repurchase of common stock
|
(1,292
|
)
|
|
(3,506
|
)
|
|
(1,508
|
)
|
|||
Proceeds from exercise of stock options
|
142
|
|
|
789
|
|
|
442
|
|
|||
Proceeds from issuance of common stock
|
—
|
|
|
95
|
|
|
—
|
|
|||
Net cash used in financing activities
|
(9,416
|
)
|
|
(10,690
|
)
|
|
(8,303
|
)
|
|||
Net increase (decrease) in cash and cash equivalents
|
(917
|
)
|
|
(5,409
|
)
|
|
8,108
|
|
|||
Cash and cash equivalents at beginning of period
|
5,571
|
|
|
10,980
|
|
|
2,872
|
|
|||
Cash and cash equivalents at end of period
|
$
|
4,654
|
|
|
$
|
5,571
|
|
|
$
|
10,980
|
|
(dollars in thousands)
|
For the Years ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Supplemental Schedule of Cash and Cash Equivalents:
|
|
|
|
|
|
||||||
Cash and due from banks
|
$
|
20,268
|
|
|
$
|
19,352
|
|
|
$
|
29,272
|
|
Interest-bearing deposits in other banks
|
32,939
|
|
|
75,985
|
|
|
38,031
|
|
|||
|
$
|
53,207
|
|
|
$
|
95,337
|
|
|
$
|
67,303
|
|
|
|
|
|
|
|
||||||
Supplemental Disclosure of Cash Flow Information:
|
|
|
|
|
|
|
|
|
|||
Cash paid for:
|
|
|
|
|
|
|
|
|
|||
Interest on deposits and borrowed funds
|
$
|
6,348
|
|
|
$
|
5,836
|
|
|
$
|
5,753
|
|
Income taxes
|
6,477
|
|
|
3,090
|
|
|
4,371
|
|
|||
Noncash investing and financing activities:
|
|
|
|
|
|
|
|
|
|||
Transfer of loans to other real estate owned
|
295
|
|
|
2,101
|
|
|
386
|
|
|||
Unrealized gain (loss) on securities available for sale
|
(6,572
|
)
|
|
(2,652
|
)
|
|
3,488
|
|
|||
Change in unfunded pension liability
|
166
|
|
|
538
|
|
|
(1,728
|
)
|
|||
|
|
|
|
|
|
||||||
Non-cash transactions related to acquisitions:
|
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
Investment securities
|
—
|
|
|
18,507
|
|
|
—
|
|
|||
Restricted stock
|
—
|
|
|
587
|
|
|
—
|
|
|||
Loans
|
—
|
|
|
115,960
|
|
|
—
|
|
|||
Premises and equipment
|
—
|
|
|
956
|
|
|
—
|
|
|||
Deferred income taxes
|
—
|
|
|
2,794
|
|
|
—
|
|
|||
Core deposit intangible
|
—
|
|
|
1,839
|
|
|
—
|
|
|||
Other real estate owned, net
|
—
|
|
|
168
|
|
|
—
|
|
|||
Bank owned life insurance
|
—
|
|
|
1,955
|
|
|
—
|
|
|||
Other assets
|
—
|
|
|
1,049
|
|
|
—
|
|
|||
|
|
|
|
|
|
||||||
Liabilities assumed:
|
|
|
|
|
|
||||||
Demand, MMDA, and savings deposits
|
—
|
|
|
82,451
|
|
|
—
|
|
|||
Time deposits
|
—
|
|
|
54,872
|
|
|
—
|
|
|||
Other liabilities
|
—
|
|
|
3,076
|
|
|
—
|
|
|||
|
|
|
|
|
|
||||||
Consideration:
|
|
|
|
|
|
||||||
Issuance of common stock
|
—
|
|
|
20,483
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
Net Unrealized
Gains (Losses)
on Securities
|
|
Adjustments
Related to
Pension
Benefits
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
||||||
Balance at Balance at December 31, 2013
|
$
|
3,578
|
|
|
$
|
(1,058
|
)
|
|
$
|
2,520
|
|
|
|
|
|
|
|
||||||
Net unrealized gains on securities available for sale, net of tax, $1,398
|
2,595
|
|
|
—
|
|
|
2,595
|
|
|||
|
|
|
|
|
|
||||||
Reclassification adjustment for realized gains on securities, net of tax, $(177)
|
(328
|
)
|
|
—
|
|
|
(328
|
)
|
|||
|
|
|
|
|
|
||||||
Change in unfunded pension liability, net of tax, $(605)
|
—
|
|
|
(1,123
|
)
|
|
(1,123
|
)
|
|||
|
|
|
|
|
|
||||||
Balance at December 31, 2014
|
5,845
|
|
|
(2,181
|
)
|
|
3,664
|
|
|||
|
|
|
|
|
|
||||||
Net unrealized losses on securities available for sale, net of tax, $(626)
|
(1,159
|
)
|
|
—
|
|
|
(1,159
|
)
|
|||
|
|
|
|
|
|
||||||
Reclassification adjustment for realized gains on securities, net of tax, $(303)
|
(564
|
)
|
|
—
|
|
|
(564
|
)
|
|||
|
|
|
|
|
|
||||||
Change in unfunded pension liability, net of tax, $189
|
—
|
|
|
349
|
|
|
349
|
|
|||
|
|
|
|
|
|
||||||
Balance at December 31, 2015
|
4,122
|
|
|
(1,832
|
)
|
|
2,290
|
|
|||
|
|
|
|
|
|
||||||
Net unrealized losses on securities available for sale, net of tax, $(2,007)
|
(3,729
|
)
|
|
—
|
|
|
(3,729
|
)
|
|||
|
|
|
|
|
|
||||||
Reclassification adjustment for realized gains on securities, net of tax, $(293)
|
(543
|
)
|
|
—
|
|
|
(543
|
)
|
|||
|
|
|
|
|
|
||||||
Change in unfunded pension liability, net of tax, $58
|
—
|
|
|
108
|
|
|
108
|
|
|||
|
|
|
|
|
|
||||||
Balance at December 31, 2016
|
$
|
(150
|
)
|
|
$
|
(1,724
|
)
|
|
$
|
(1,874
|
)
|
Details about AOCI Components
|
Amount Reclassified from AOCI
|
|
Affected Line Item in
the Statement of Where
Net Income is Presented
|
||||||||||
|
Years Ended December 31,
|
|
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
|
|
||||||
Available for sale securities:
|
|
|
|
|
|
|
|
||||||
Realized gain on sale of securities
|
$
|
836
|
|
|
$
|
867
|
|
|
$
|
505
|
|
|
Securities gains (losses), net
|
|
(293
|
)
|
|
(303
|
)
|
|
(177
|
)
|
|
Income taxes
|
|||
Total reclassifications
|
$
|
543
|
|
|
$
|
564
|
|
|
$
|
328
|
|
|
Net of tax
|
/s/ Jeffrey V. Haley
|
|
Jeffrey V. Haley
|
|
President and Chief Executive Officer
|
|
|
|
/s/ William W. Traynham
|
|
William W. Traynham
|
|
Executive Vice President and
|
|
Chief Financial Officer
|
|
|
|
March 16, 2017
|
|
(a)(1)
|
Financial Statements. See Item 8 for reference.
|
(a)(2)
|
Financial Statement Schedules. All applicable financial statement schedules required under Regulation S-X have been included in the Notes to the Consolidated Financial Statements.
|
(a)(3)
|
Exhibits. The exhibits required by Item 601 of Regulation S-K are listed below.
|
|
EXHIBIT INDEX
|
|
Exhibit No.
|
Description
|
Location
|
10.10
|
American National Bankshares Inc. 2008 Stock Incentive Plan
|
Exhibit 99.0 on Form S-8 filed May 30, 2008
|
|
|
|
10.11
|
American National Bankshares Inc. 1997 Stock Option Plan
|
Exhibit 4.3 on Form S-8 filed September 17, 1997
|
|
|
|
10.12
|
Adoption Agreement for Virginia Bankers Association Non-Qualified Deferred Compensation Plan for Executives of American National Bank & Trust Company
|
Exhibit 10.11 on Form 10-K filed March 15, 2016
|
|
|
|
11.1
|
Refer to Earnings Per Share calculation in the Notes to Financial Statements
|
Filed herewith
|
|
|
|
21.1
|
Subsidiaries of the registrant
|
Filed herewith
|
|
|
|
23.1
|
Consent of Yount, Hyde & Barbour, P.C.
|
Filed herewith
|
|
|
|
31.1
|
Section 302 Certification of Jeffrey V. Haley, President and Chief Executive Officer
|
Filed herewith
|
|
|
|
31.2
|
Section 302 Certification of William W. Traynham, Executive Vice President and Chief Financial Officer
|
Filed herewith
|
|
|
|
32.1
|
Section 906 Certification of Jeffrey V. Haley, President and Chief Executive Officer
|
Filed herewith
|
|
|
|
32.2
|
Section 906 Certification of William W. Traynham, Executive Vice President and Chief Financial Officer
|
Filed herewith
|
|
|
|
101.INS
|
XBRL Instance Document
|
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
101.PRE
|
SBRL Taxonomy Presentation Linkbase Document
|
|
March 16, 2017
|
|
AMERICAN NATIONAL BANKSHARES INC.
|
|
|
|
|
|
By:
|
/s/ Jeffrey V. Haley
|
|
|
|
President and Chief Executive Officer
|
|
|
/s/ Jeffrey V. Haley
|
|
Director, President and
Chief Executive Officer
(principal executive officer)
|
|
|
|
|
Jeffrey V. Haley
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/ Charles H. Majors
|
|
Director and Chairman
|
|
/s/ John H. Love
|
|
Director
|
Charles H. Majors
|
|
|
|
John H. Love
|
|
|
|
|
|
|
|
|
|
/s/ Fred A. Blair
|
|
Director
|
|
/s/ Franklin W. Maddux
|
|
Director
|
Fred A. Blair
|
|
|
|
Franklin W. Maddux
|
|
|
|
|
|
|
|
|
|
/s/ Frank C. Crist, Jr.
|
|
Director
|
|
/s/ Claude B. Owen, Jr.
|
|
Director
|
Frank C. Crist, Jr.
|
|
|
|
Claude B. Owen, Jr.
|
|
|
|
|
|
|
|
|
|
/s/ Ben J. Davenport, Jr.
|
|
Director
|
|
/s/ Ronda Penn
|
|
Director
|
Ben J. Davenport, Jr.
|
|
|
|
Ronda Penn
|
|
|
|
|
|
|
|
|
|
/s/ Michael P. Haley
|
|
Director
|
|
/s/ Dan M. Pleasant
|
|
Director
|
Michael P. Haley
|
|
|
|
Dan M. Pleasant
|
|
|
|
|
|
|
|
|
|
/s/ Charles S. Harris
|
|
Director
|
|
/s/ Joel R. Shepherd
|
|
Director
|
Charles S. Harris
|
|
|
|
Joel R. Shepherd
|
|
|
|
|
|
|
|
|
|
/s/ F. D. Hornaday, III
|
|
Director
|
|
/s/ William W. Traynham
|
|
Executive Vice President and
Chief Financial Officer
(principal financial officer)
|
F. D. Hornaday, III
|
|
|
|
William W. Traynham
|
|
|
|
|
|
|
|
|
|
/s/ Cathy W. Liles
|
|
Senior Vice President and
Chief Accounting Officer (principal accounting officer) |
|
|
|
|
Cathy W. Liles
|
|
|
|
|
|