2015 Annual Report - Henry County Bank

Transcription

2015 Comunibanc Corp.
Annual Report
NAPOLEON • HOLGATE • MALINTA
LIBERTY CENTER • BOWLING GREEN
Comunibanc Corp.
ANNUAL REPORT
COMUNIBANC CORP.
December 31, 2015 and 2014
TABLE OF CONTENTS
“DEAR SHAREHOLDERS AND FRIENDS”.......................................... 2
INDEPENDENT AUDITORS’ REPORT................................................. 3
FINANCIAL STATEMENTS
Consolidated Balance Sheets............................................................ 4
Consolidated Statements of Operations............................................ 5
Consolidated Statements of Comprehensive Income........................ 6
Consolidated Statements of Shareholders’ Equity............................. 7
Consolidated Statements of Cash Flows........................................... 8
Notes to Consolidated Financial Statements..................................... 9
FIVE YEAR SUMMARY OF SELECTED FINANCIAL DATA................ 34
DIRECTORS AND MANAGEMENT TEAM......................................... 35
CONTINUING TO BUILD OUR FINANCIAL FUTURE........................ 36
Page 1
Comunibanc Corp.
Page 2
Dear Shareholders & Friends:
Dear
Shareholders
& has
Friends:
The Federal
Reserve
implemented programs to stabilize, strengthen and expand the
economy; however, the economy has continued to flounder with the ripple effect to the
The
Federal
implemented
programs
to stabilize,
and
expand the
markets
and Reserve
likewise has
to our
local economy.
Several
problemstrengthen
commercial
and
economy;
however,
thecredits
economy
has
continued
to flounder
the ripple
to the
commercial
real estate
from
2014
proceeded
throughwith
foreclosure
andeffect
liquidation
markets
and
likewise
to
our
local
economy.
Several
problem
commercial
and
of business assets to fully complete the process of recovery during 2015.
commercial real estate credits from 2014 proceeded through foreclosure and liquidation
of
business
to fully
complete
thewe
process
of recovery
duringbanking
2015. products
2015
was a assets
busy year
for the
Bank as
introduced
new internet
known as NetTeller On-line Banking, electronic statements, iPay consumer bill pay and
2015
was a busy
forBank
the Bank
as we introduced
new process
internet of
banking
iPay business
pay.year
The
also completed
the lengthy
interiorproducts
and exterior
known
as
NetTeller
On-line
Banking,
electronic
statements,
iPay
consumer
bill
pay and
building renovations, as well as the hiring and training of staff for our new full service
iPay
business
pay. The
BankEast
alsoCourt
completed
lengthy process
of interior
branch
office located
at 124
Street the
in downtown
Bowling
Green. and
Theexterior
office
building
renovations,
as
well
as
the
hiring
and
training
of
staff
for
our
new
full
service
opened in December and we are pleased with the initial new customer base.
branch office located at 124 East Court Street in downtown Bowling Green. The office
opened
and we expand
are pleased
with the products
initial new
base. enhance the
In 2016 in
weDecember
intend to further
our banking
forcustomer
our customers,
Bank’s service to all of its market areas, and add value to our shareholders’ investment.
In 2016 we intend to further expand our banking products for our customers, enhance the
Bank’s
service
to allinof1936,
its market
areas, and add
value
to our
Since our
founding
our shareholders
have
earned
ourshareholders’
gratitude and investment.
esteem. We
thank our customers and shareholders for your continued trust, confidence and patronage.
Since our founding in 1936, our shareholders have earned our gratitude and esteem. We
thank
our customers and shareholders for your continued trust, confidence and patronage.
Sincerely,
Sincerely,
COMUNIBANC CORP.
COMUNIBANC CORP.
William L. Wendt
President/C.E.O.
William L. Wendt
President/C.E.O.
Comunibanc Corp.
Page 3
CliftonLarsonAllen LLP
CLAconnect.com
INDEPENDENT AUDITORS’ REPORT
Shareholders and Board of Directors
Comunibanc Corp. and Subsidiary
Napoleon, Ohio
Report
on Consolidated Financial Statements
We have audited the accompanying consolidated financial statements of Comunibanc Corp. and its
subsidiary, which comprise the consolidated balance sheets as of December 31, 2015 and 2014,
and the related consolidated statements of operations, comprehensive income (loss), changes in
shareholders' equity, and cash flows for the years then ended, and the related notes to the
consolidated financial statements.
Management’s Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial
statements in accordance with accounting principles generally accepted in the United States of
America; this includes the design, implementation, and maintenance of internal control relevant to
the preparation and fair presentation of consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our
audits. We conducted our audits in accordance with auditing standards generally accepted in the
United States of America. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the consolidated financial statements are free of material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditors’ judgment,
including the assessment of the risks of material misstatement of the consolidated financial
statements, whether due to fraud or error. In making those risk assessments, the auditor considers
internal control relevant to the entity's preparation and fair presentation of the consolidated financial
statements in order to design audit procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on the effectiveness of the entity's internal control.
Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall presentation of the consolidated financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
Opinion
In our opinion, the consolidated financial statements referred to above present fairly, in all material
respects, the financial position of Comunibanc Corp. and its subsidiary as of December 31, 2015
and 2014, and the results of their operations and their cash flows for the years then ended in
conformity with accounting principles generally accepted in the United States of America.
a
CliftonLarsonAllen LLP
Toledo, Ohio
March 3, 2016
An independent member of Nexia International
Page 4
Comunibanc Corp.
COMUNIBANC
CORP. AND SUBSIDIARY
COMUNIBANC
CORP.
AND SUBSIDIARY
CONSOLIDATED
BALANCE
SHEETS
CONSOLIDATED
DECEMBER 31,BALANCE
2015 ANDSHEETS
2014
DECEMBER
31,
2015
AND
2014
COMUNIBANC CORP. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2015 AND 2014
ASSETS
ASSETS
CASH AND CASH EQUIVALENTS
CASH
CASH
EQUIVALENTS
CashAND
and due
from
banks
ASSETS
Cash and due from
banksin other
Interest-bearing
deposits
banks
Interest-bearing
deposits
in
other
CASH AND CASH EQUIVALENTS banks
Total cash and cash equivalents
Cash
andcash
due from
banks
Total
and cash
equivalents
Interest-bearing
deposits
in other banks
Securities, available-for-sale
Securities,
available-for-sale
Restricted
stock,
atcash
cost equivalents
Total cash
and
Restricted
at cost for loan losses of $2,039,779 in 2015
Loans,
net stock,
of allowance
Loans,
net of
allowance
for loan losses of $2,039,779 in 2015
Securities,
available-for-sale
and $1,984,345
in 2014
and
$1,984,345
in
2014
Restrictedand
stock,
at cost net
Premises
equipment,
Premises
equipment,
Loans, netand
of allowance
fornet
loan losses of $2,039,779 in 2015
OTHER
ASSETS
and $1,984,345 in 2014
OTHER
ASSETS
Cash value
of life
insurance
Premises
and
equipment,
net
Cash
value
of
life
insurance
Accrued interest receivable
Accrued
interest
OTHER
ASSETS
Other real
estate receivable
owned, net of valuation allowance of
Other
real
owned,
net ofinvaluation
Cash
value
of life and
insurance
$6,700
inestate
2015
$14,200
2014 allowance of
$6,700 interest
in 2015 receivable
and $14,200 in 2014
Accrued
Other
Other
Other real estate owned, net of valuation allowance of
Total other assets
$6,700
2015
and $14,200 in 2014
Total in
other
assets
Other ASSETS
TOTAL
TOTAL ASSETS
Total other
assets AND SHAREHOLDERS’ EQUITY
LIABILITIES
LIABILITIES AND SHAREHOLDERS’ EQUITY
TOTAL ASSETS
LIABILITIES
LIABILITIES
Deposits:LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Demand accounts
Demandaccounts
accounts
LIABILITIES
Savings
Savings accounts
Deposits:
Certificates
of deposit and other time accounts
Certificates
of deposit and other time accounts
Demand
accounts
Total deposits
Total
deposits
Savings accounts
Federal
HomeofLoan
Bank
borrowings
Certificates
deposit
and
other time accounts
Federal
Home Loan Bank borrowings
Other
liabilities
Total deposits
Other liabilities
Total liabilities
Federal
Loan Bank borrowings
TotalHome
liabilities
Other
liabilities
SHAREHOLDERS’ EQUITY
SHAREHOLDERS’
Common
stock, noEQUITY
par value. Authorized 2,000,000 shares;
Total liabilities
Common
stock,
no par value.
Authorized
shares;
issued and
outstanding
828,504
shares,2,000,000
at stated value
issued
and
outstanding
828,504
shares,
at
stated
value
SHAREHOLDERS’
EQUITY
Surplus
Surplus
Common
Undividedstock,
profitsno par value. Authorized 2,000,000 shares;
Undivided
profits
issued and
outstanding
828,504 shares,
Accumulated
other comprehensive
incomeat stated value
Accumulated other comprehensive income
Surplus
Total shareholders’
equity
Undivided
profits
Total shareholders’ equity
Accumulated other comprehensive income
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
Total shareholders’ equity
See accompanying Notes to Consolidated Financial Statements.
2015
2015
2015
1,861,818
1,861,818
9,915,190
9,915,190
11,777,008
$ 11,777,008
1,861,818
9,915,190
134,348,543
134,348,543
1,553,375
11,777,008
1,553,375
$
$
2014
2014
2014
1,713,665
1,713,665
7,059,242
7,059,242
8,772,907
$
1,713,665
8,772,907
7,059,242
126,569,249
126,569,249
1,553,375
8,772,907
1,553,375
$
$
134,348,543
114,364,531
114,364,531
1,553,375
5,710,852
5,710,852
126,569,249
113,162,300
113,162,300
1,553,375
5,626,217
5,626,217
114,364,531
5,724,289
5,710,852
5,724,289
783,873
783,873
113,162,300
5,600,753
5,626,217
5,600,753
799,024
799,024
5,724,289
326,646
326,646
783,873
2,048,275
2,048,275
8,883,083
326,646
8,883,083
2,048,275
$ 276,637,392
$ 276,637,392
8,883,083
5,600,753
394,146
394,146
799,024
1,774,782
1,774,782
8,568,705
394,146
8,568,705
1,774,782
$ 264,252,753
$ 264,252,753
8,568,705
$ 276,637,392
$ 264,252,753
$
$
74,128,188
74,128,188
51,481,462
51,481,462
100,373,439
100,373,439
$ 225,983,089
74,128,188
225,983,089
51,481,462
20,165,932
100,373,439
20,165,932
3,180,753
225,983,089
3,180,753
249,329,774
20,165,932
249,329,774
3,180,753
$
$
249,329,774
2,071,260
2,071,260
1,288,478
1,288,478
23,036,683
23,036,683
2,071,260
911,197
911,197
1,288,478
27,307,618
23,036,683
27,307,618
911,197
$ 276,637,392
$ 276,637,392
27,307,618
237,385,475
2,071,260
2,071,260
1,288,478
1,288,478
22,200,812
22,200,812
2,071,260
1,306,728
1,306,728
1,288,478
26,867,278
22,200,812
26,867,278
1,306,728
$ 264,252,753
$ 264,252,753
26,867,278
$ 276,637,392
$ 264,252,753
62,841,343
62,841,343
43,378,378
43,378,378
107,829,455
107,829,455
$ 214,049,176
62,841,343
214,049,176
43,378,378
20,382,420
107,829,455
20,382,420
2,953,879
214,049,176
2,953,879
237,385,475
20,382,420
237,385,475
2,953,879
Comunibanc Corp.
COMUNIBANC
CONSOLIDATED STATEMENTS OF OPERATIONS
COMUNIBANC
CORP. AND
YEARS
ENDED DECEMBER
31,SUBSIDIARY
2015 AND 2014
CONSOLIDATED
STATEMENTS
OF
OPERATIONS
YEARS
ENDED
DECEMBER
31,
2015
AND 2014
CONSOLIDATED STATEMENTS OF OPERATIONS
YEARS ENDED DECEMBER 31, 2015 AND 2014
2015
INTEREST INCOME
Interest and fees on loans
INTEREST
Securities:INCOME
Interest
and
fees
on loans
Obligations
of U.S.
Government Agencies and corporations
INTEREST
INCOME
Securities:
Obligations
of
states
and political subdivisions
Interest and fees on loans
Obligations
of
U.S.
Government
Agencies and corporations
Mortgage-backed
Securities:
Obligations
of
states
and
political
subdivisions
Dividends
on
restricted
stock
Obligations of U.S. Government Agencies
and corporations
Mortgage-backed
Other
Obligations of states and political subdivisions
Dividends on restricted stock
Mortgage-backed
Total interest income
Other
Dividends on restricted stock
$
$
$
INTEREST
EXPENSE
Other
Total interest
income
Deposits
Total
interest
income
INTEREST
EXPENSE
Other
borrowings
Deposits EXPENSE
INTEREST
Total interest expense
Other borrowings
Deposits
Net
interest
Other
borrowings
Total
interestincome
expense
Page 5
2014
2015
5,558,649
2015
5,558,649
404,926
1,438,715
5,558,649
404,926
1,760,389
1,438,715
62,218
404,926
1,760,389
59,994
1,438,715
62,218
1,760,389
9,284,891
59,994
62,218
$
$
$
59,994
9,284,891
760,361
9,284,891
486,138
760,361
1,246,499
486,138
760,361
8,038,392
486,138
1,246,499
2014
5,744,956
2014
5,744,956
741,236
1,525,945
5,744,956
741,236
1,344,887
1,525,945
62,178
741,236
1,344,887
55,240
1,525,945
62,178
1,344,887
9,474,442
55,240
62,178
55,240
9,474,442
804,694
9,474,442
499,600
804,694
1,304,294
499,600
804,694
8,170,148
499,600
1,304,294
PROVISION
FORincome
LOAN
LOSSES
Total
interest
expense
Net interest
1,020,000
1,246,499
8,038,392
3,750,000
1,304,294
8,170,148
Net interest
after provision
PROVISION
FORincome
LOAN LOSSES
for loan losses
PROVISION
FORincome
LOAN LOSSES
Net interest
after provision
NON-INTEREST
INCOME
for
loan
losses
Net interest
afteraccounts
provision
Service
chargesincome
on deposit
for loan losses
NON-INTEREST
INCOME
Net securities
gains
Service
charges
on
Net
gains
on sale
ofdeposit
loans accounts
NON-INTEREST
INCOME
Net
securities
gains
Other
operating
income
Service charges on deposit accounts
Net securities
gains on sale
of loans
Net
gains
Total
non-interest
income
Other
operating
income
Net gains on sale of loans
8,038,392
1,020,000
7,018,392
1,020,000
7,018,392
257,156
7,018,392
376,466
257,156
151,510
376,466
668,456
257,156
151,510
376,466
1,453,588
668,456
151,510
8,170,148
3,750,000
4,420,148
3,750,000
4,420,148
264,273
4,420,148
381,517
264,273
96,192
381,517
683,560
264,273
96,192
381,517
1,425,542
683,560
96,192
NON-INTEREST
EXPENSES
Other
operating
income
Total
non-interest
income
Salaries and wages
Total non-interest
income
NON-INTEREST
EXPENSES
Employee
benefits
Salaries
and
wages
Occupancy expense
NON-INTEREST
EXPENSES
Employee
benefits
Data
services
Salaries
and
wages
Occupancybenefits
expense
Professional
fees, including collection and examinations
Employee
Data
services
Committee
and
director fees
Occupancy expense
Professional
fees,
including collection and examinations
Advertising
Data services
Committee
and
director
feescollection and examinations
FDIC
premium
assessments
Professional fees, including
Advertising
Ohio
financial
institution
tax
Committee and director fees
FDIC
premium
assessments
Other
operating
expenses
Advertising
Ohio financial
institution
tax
FDIC
premium
assessments
Total
non-interest
expenses
Other
operating
expenses
Ohio financial institution tax
Other
operating
expenses
Earnings
(loss)
before
federal income taxes
Total
non-interest
expenses
668,456
1,453,588
2,949,742
1,453,588
847,935
2,949,742
623,054
847,935
479,130
2,949,742
623,054
475,473
847,935
479,130
159,100
623,054
475,473
146,367
479,130
159,100
310,435
475,473
146,367
184,980
159,100
310,435
828,860
146,367
184,980
310,435
7,005,076
828,860
184,980
683,560
1,425,542
2,822,955
1,425,542
838,951
2,822,955
528,226
838,951
440,121
2,822,955
528,226
373,147
838,951
440,121
148,550
528,226
373,147
134,316
440,121
148,550
218,498
373,147
134,316
164,367
148,550
218,498
911,606
134,316
164,367
218,498
6,580,737
911,606
164,367
CREDIT
FOR
FEDERAL
INCOME
Total
non-interest
expenses
Earnings
(loss) before
federal TAXES
income taxes
NET
EARNINGS
Earnings
(loss) before
federal TAXES
income taxes
CREDIT
FOR FEDERAL
INCOME
$
(15,200)
7,005,076
1,466,904
1,482,104
1,466,904
(15,200)
$
(798,300)
6,580,737
(735,047)
63,253
(735,047)
(798,300)
CREDIT
FOR FEDERAL
INCOME
TAXES
NET EARNINGS
EARNINGS
PER SHARE,
based
on 828,504 shares
NET
$
$
1.79
(15,200)
1,482,104
$
$
0.08
(798,300)
63,253
NET
NET EARNINGS
EARNINGS PER SHARE, based on 828,504 shares
$
$
1,482,104
1.79
$
$
63,253
0.08
NET EARNINGS PER SHARE, based on 828,504 shares
$
1.79
$
0.08
828,860
1,466,904
7,005,076
911,606
(735,047)
6,580,737
Comunibanc Corp.
Page 6
COMUNIBANC
CORP.OF
AND
SUBSIDIARY INCOME
CONSOLIDATED
STATEMENTS
COMPREHENSIVE
CONSOLIDATED
STATEMENTS
OF
COMPREHENSIVE
COMUNIBANC
CORP. AND
YEARS
ENDED DECEMBER
31,SUBSIDIARY
2015 AND 2014INCOME
YEARS
ENDED
DECEMBER
31,
2015 AND 2014INCOME
CONSOLIDATED STATEMENTS OF COMPREHENSIVE
NET EARNINGS
NET EARNINGS
$
$
2015
2015
1,482,104
2015
1,482,104
NET
EARNINGS
OTHER
COMPREHENSIVE INCOME (LOSS)
OTHER
COMPREHENSIVE
(LOSS)
Change
in unrealized gainsINCOME
(losses) on
Change
in
unrealized
gains
(losses)
on
OTHER
COMPREHENSIVE
INCOME (LOSS)
available-for-sale
securities
available-for-sale
securities
Change
in
unrealized
gains
on
Reclassification adjustment (losses)
for net securities
gains included
Reclassification
adjustment
for
net
securities
gains included
available-for-sale
securities
in
earnings
in
earnings
Reclassification adjustment for net securities gains included
unrealized gains (losses)
in Net
earnings
Net unrealized gains (losses)
Income
tax effect gains (losses)
Net unrealized
Income
tax effect
Other
income (loss)
Income
taxcomprehensive
effect
Other
comprehensive
income (loss)
TOTAL COMPREHENSIVE INCOME
Other
comprehensive income
(loss)
TOTAL
COMPREHENSIVE
INCOME
$
1,482,104
TOTAL COMPREHENSIVE INCOME
$
$
2014
2014
201463,253
63,253
$
63,253
(222,823)
(222,823)
5,507,822
5,507,822
$
$
(222,823)
(376,466)
(376,466)
(599,289)
(376,466)
(599,289)
(203,758)
(599,289)
(203,758)
(395,531)
(203,758)
(395,531)
1,086,573
(395,531)
1,086,573
$
$
5,507,822
(381,517)
(381,517)
5,126,305
(381,517)
5,126,305
1,742,944
5,126,305
1,742,944
3,383,361
1,742,944
3,383,361
3,446,614
3,383,361
3,446,614
$
1,086,573
$
3,446,614
Comunibanc Corp.
Page 7
COMUNIBANCOF
CORP.
AND SUBSIDIARY
CONSOLIDATED STATEMENTS
CHANGES
IN STOCKHOLDERS’ EQUITY
CONSOLIDATED
STATEMENTS
OF
CHANGES
IN STOCKHOLDERS’
EQUITY
COMUNIBANC
CORP. AND
YEARS
ENDED DECEMBER
31,SUBSIDIARY
2015
AND 2014
YEARS
ENDED
DECEMBER
31,
2015
AND
2014
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
Accumulated
Accumulated
Other
Other
Comprehensive
Accumulated
Comprehensive
Income
(Loss)
Other
Income (Loss)
Comprehensive
Income (Loss)
$
(2,076,633)
$
(2,076,633)
Total
Total
Shareholders’
Shareholders’
Equity
Total
Equity
Shareholders’
Equity
$ 24,066,897
$ 24,066,897
(2,076,633)
3,383,3613,383,3613,383,361
1,306,7281,306,728
63,253
$ 24,066,897
63,253
3,383,361
3,383,361
(646,233)
63,253
(646,233)
3,383,361
26,867,278
(646,233)
26,867,278
1,482,104
26,867,278
1,482,104
(395,531)
(395,531)
(646,233)
1,482,104
(646,233)
(395,531)
$ 27,307,618
(646,233)
$ 27,307,618
$ 27,307,618
BALANCE, DECEMBER 31, 2013
Common
Common
Stock
Stock
Common
Stock
$ 2,071,260
$ 2,071,260
Surplus
$ 1,288,478
$ 1,288,478
Undivided
Undivided
Profits
Profits
Undivided
Profits
$ 22,783,792
$ 22,783,792
Net earnings
BALANCE,
DECEMBER 31, 2013
Net earnings
Other
Other dividends
Cash
Net earnings paid, $.78 per share
Cash dividends paid, $.78 per share
Other comprehensive income
BALANCE,
DECEMBER
31,per
2014
Cash dividends
paid, $.78
share
$ 2,071,260---2,071,2602,071,260
$ 1,288,478---1,288,4781,288,478
63,253
$ 22,783,792
63,253(646,233)
63,253
(646,233)
22,200,812
(646,233)
22,200,812
Net earnings
BALANCE,
DECEMBER 31, 2014
Net earnings
Other
comprehensive loss
Other
comprehensive
loss per share
Cash
dividends
paid, $.78
Net earnings
Cash dividends paid, $.78 per share
Other comprehensive loss
BALANCE,
DECEMBER
31,per
2015
Cash dividends
paid, $.78
share
2,071,260---$ 2,071,260$ 2,071,260
1,288,478---$ 1,288,478$ 1,288,478
1,482,104
22,200,812
1,482,104(646,233)
1,482,104
(646,233)
$ 23,036,683
(646,233)
$ 23,036,683
$
$
1,306,728(395,531)
(395,531)
-(395,531)
911,197911,197
$ 2,071,260
$ 1,288,478
$ 23,036,683
$
911,197
Surplus
Surplus
$
Comunibanc Corp.
Page 8
COMUNIBANC
CONSOLIDATED
STATEMENTS
OF CASH FLOWS
CONSOLIDATED
STATEMENTS
OF
CASH
COMUNIBANC
CORP. AND
YEARS
ENDED DECEMBER
31,SUBSIDIARY
2015
ANDFLOWS
2014
YEARS
ENDED
DECEMBER
31,
2015
ANDFLOWS
2014
CONSOLIDATED STATEMENTS OF CASH
CASH FLOWS FROM OPERATING ACTIVITIES
CASH
FLOWS FROM OPERATING ACTIVITIES
Net earnings
Net
earnings
CASH
FLOWS to
FROM
OPERATING
ACTIVITIES
Adjustments
reconcile
net earnings
to net cash provided
Adjustments
to
reconcile
net
earnings
to
net cash provided
Net
earnings
by operating activities:
by
operating
activities:
Adjustments
to and
reconcile
net earnings to net cash provided
Depreciation
amortization
and amortization
byDepreciation
operatingfor
activities:
Provision
loan
losses
Provision
for loan
losses taxes
Depreciation
andincome
amortization
Deferred
federal
Deferred
federal
income
taxes
Provision
for loanoflosses
Net
amortization
securities
Net
amortization
of
securities
Deferred
federal
Increase in
cash income
value oftaxes
life insurance
Increase
in cash
value
of life insurance
Net
amortization
of
securities
securities
gains
Net
securities
gains
Increase
value
of life insurance
Net
gainsinoncash
sale
of loans
Net
gains
on
sale
of
loans
Net securities
gainsor write-down of other real estate owned
loss from sale
Net
lossoffrom
saleof
or
write-down
of other
real
estate owned
Net
gains
on sale
Effects
changes
inloans
operating assets
and
liabilities:
Effects
of
changes
in
operating
assets
and
liabilities:
Net
loss from
sale or
write-down of other real estate owned
Accrued
interest
receivable
Accrued
interest receivable
Effects
changes
in operating assets and liabilities:
Otherofassets
Other
assets
Accrued
interest receivable
Other liabilities
Other
liabilities
Other
assets
Proceeds
from sales of loans held-for-sale
Proceeds
from
salesheld-for-sale
of loans held-for-sale
Other
liabilities
Origination of loans
Origination
of
loans
held-for-sale
Proceeds
sales by
of loans
held-for-sale
Net cashfrom
provided
operating
activities
Net cash of
provided
by operating activities
Origination
loans held-for-sale
CASH FLOWS
FROM
INVESTING
ACTIVITIES
Net cash
provided
by operating
activities
CASH
FLOWSfrom
FROM
INVESTING
ACTIVITIES
Proceeds
sales
and maturities
of securities
Proceeds
from
sales
and
maturities
of
securities
CASH
FLOWS
FROM
INVESTING
ACTIVITIES
Proceeds from sales of other real estate
owned
Proceeds
from
sales
of
other
real
estate
owned
Proceeds
sales and maturities of securities
Purchasesfrom
of securities
Purchases
of in
securities
Proceeds
from
sales
Net
increase
loans of other real estate owned
Net
increase
in
loans
Purchases
of securities
Capital
expenditures
Capital
Net increase
loans
Netexpenditures
cash in
used
by investing activities
Netexpenditures
cash used by investing activities
Capital
CASH FLOWS
FROM
ACTIVITIES
Net cash
used FINANCING
by investing activities
CASH
FROM
FINANCING ACTIVITIES
NetFLOWS
increase
in deposits
Net
increase
inLoan
deposits
CASH
FLOWS
FROM
FINANCING
ACTIVITIES
Federal
Home
Bank borrowings:
Federal
Home
Loan
Bank borrowings:
Net
increase in deposits
Proceeds
Proceeds
Federal
Home Loan Bank borrowings:
Repayments
Repayments
Proceeds
Cash
dividends paid
Cash
dividends
paid by financing activities
Repayments
Net
cash provided
Net
cash
provided
Cash dividends paid by financing activities
NET CHANGE
IN provided
CASH AND
CASH EQUIVALENTS
Net cash
by financing
activities
NET CHANGE IN CASH AND CASH EQUIVALENTS
CASH
AND CASH
EQUIVALENTS
NET CHANGE
IN CASH
AND CASH EQUIVALENTS
CASH
AND CASH
At beginning
of EQUIVALENTS
Year
At beginning
of EQUIVALENTS
Year
CASH
AND CASH
At
end
of
year
At beginning of Year
At end of year
At end of year
2015
2015
2014
2014
$
$
2015
1,482,104
1,482,104
$
$
2014
63,253
63,253
$
1,482,104
346,823
346,823
1,020,000
1,020,000
346,823
(92,342)
(92,342)
1,020,000
1,002,235
1,002,235
(92,342)
(123,536)
(123,536)
1,002,235
(376,466)
(376,466)
(123,536)
(151,510)
(151,510)
(376,466)
53,140
53,140
(151,510)
53,140
15,151
15,151
16,111
16,111
15,151
226,874
226,874
16,111
6,602,467
6,602,467
226,874
(6,499,050)
(6,499,050)
6,602,467
3,522,001
3,522,001
(6,499,050)
3,522,001
47,842,399
47,842,399
121,456
121,456
47,842,399
(56,846,751)
(56,846,751)
121,456
(2,329,327)
(2,329,327)
(56,846,751)
(376,869)
(376,869)
(2,329,327)
(11,589,092)
(11,589,092)
(376,869)
(11,589,092)
11,933,913
11,933,913
$
63,253
290,559
290,559
3,750,000
3,750,000
290,559
(837,844)
(837,844)
3,750,000
710,331
710,331
(837,844)
(136,152)
(136,152)
710,331
(381,517)
(381,517)
(136,152)
(96,192)
(96,192)
(381,517)
62,264
62,264
(96,192)
62,264
33,044
33,044
(218,683)
(218,683)
33,044
163,768
163,768
(218,683)
3,522,374
3,522,374
163,768
(3,451,725)
(3,451,725)
3,522,374
3,473,480
3,473,480
(3,451,725)
3,473,480
24,663,521
24,663,521
507,836
507,836
24,663,521
(33,796,635)
(33,796,635)
507,836
(451,494)
(451,494)
(33,796,635)
(160,904)
(160,904)
(451,494)
(9,237,676)
(9,237,676)
(160,904)
(9,237,676)
4,233,358
4,233,358
11,933,913
43,800,000
43,800,000
(44,016,488)
(44,016,488)
43,800,000
(646,233)
(646,233)
(44,016,488)
11,071,192
11,071,192
(646,233)
3,004,101
11,071,192
3,004,101
4,233,358
31,500,000
31,500,000
(30,063,781)
(30,063,781)
31,500,000
(646,233)
(646,233)
(30,063,781)
5,023,344
5,023,344
(646,233)
(740,852)
5,023,344
(740,852)
$
$
3,004,101
8,772,907
8,772,907
11,777,008
8,772,907
11,777,008
$
$
(740,852)
9,513,759
9,513,759
8,772,907
9,513,759
8,772,907
$
11,777,008
$
8,772,907
Comunibanc Corp.
Page 9
NOTESCOMUNIBANC
TO CONSOLIDATED
STATEMENTS
CORP.FINANCIAL
AND SUBSIDIARY
DECEMBER
31,
2015
AND
2014
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Operations
Comunibanc
Corp. (the Company) was incorporated on August 27, 1996 in the state of Ohio. The
Nature of Operations
Company
is
a
bank(the
holding
company
has one on
wholly-owned
subsidiary,
The Henry
County
Comunibanc Corp.
Company)
was and
incorporated
August 27, 1996
in the state
of Ohio.
The
Bank
(the
Bank).
The
Bank,
an
Ohio
chartered
bank
organized
in
1936,
operates
in
the
commercial
Company is a bank holding company and has one wholly-owned subsidiary, The Henry County
banking
has itsanmain
and bank
two branch
offices
in Napoleon,
Ohio,
as well as
Bank (theindustry
Bank). and
The Bank,
Ohiooffice
chartered
organized
in 1936,
operates in
the commercial
branches
in
Bowling
Green,
Holgate,
Liberty
Center,
and
Malinta,
Ohio.
The
Bank’s
primary
source
banking industry and has its main office and two branch offices in Napoleon, Ohio, as well
as
of
revenue
is
providing
loans
to
customers
located
principally
in
the
Henry
and
Wood
County
areas.
branches in Bowling Green, Holgate, Liberty Center, and Malinta, Ohio. The Bank’s primary source
Such
customers
are predominantly
small and
middle-market
and County
individuals.
of revenue
is providing
loans to customers
located
principallybusinesses,
in the Henryfarmers
and Wood
areas.
Such customers are predominantly small and middle-market businesses, farmers and individuals.
Significant accounting policies followed by the Company are presented below.
Significant accounting policies followed by the Company are presented below.
Use of Estimates in Preparing Financial Statements
In
preparing
consolidated
financial
statements
in conformity with generally accepted accounting
Use
of Estimates
in Preparing
Financial
Statements
principles,
management
is
required
to
make
estimates
and assumptions
thataccepted
affect the
reported
In preparing consolidated financial statements in conformity
with generally
accounting
amounts
of
assets
and
liabilities
as
of
the
date
of
the
balance
sheet
and
reported
amounts
of
principles, management is required to make estimates and assumptions that affect the reported
revenues
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
amounts of assets and liabilities as of the date of the balance sheet and reported amounts of
estimates.
Theexpenses
most significant
susceptible
changeresults
in the could
near term
the
revenues and
during estimates
the reporting
period. toActual
differ relate
from to
those
valuation of the
for loan estimates
losses, fairsusceptible
value of available-for-sale
securities,
andrelate
fair value
of
estimates.
Theallowance
most significant
to change in the
near term
to the
financial
instruments.
valuation of the allowance for loan losses, fair value of available-for-sale securities, and fair value of
financial instruments.
Principles of Consolidation
The
consolidated
financial statements include the accounts of the Company and the Bank. All
Principles
of Consolidation
significant
intercompany
balances
and transactions
been of
eliminated
in consolidation.
The consolidated financial
statements
include the have
accounts
the Company
and the Bank. All
significant intercompany balances and transactions have been eliminated in consolidation.
Cash and Cash Equivalents
For
purposes
of the
consolidated statements of cash flows, cash and cash equivalents include cash
Cash
and Cash
Equivalents
on
hand,
due
from
banks,
and federal
funds sold
which
mature
overnight
orequivalents
within four days.
For purposes of the consolidated
statements
of cash
flows,
cash
and cash
include cash
on hand, due from banks, and federal funds sold which mature overnight or within four days.
Securities
Securities
Securitiesare classified as available-for-sale and recorded at fair value, with unrealized gains and
losses
excluded
from earnings
and reported asand
accumulated
other
incomegains
or loss.
Securities
are classified
as available-for-sale
recorded at
fair comprehensive
value, with unrealized
and
losses excluded from earnings and reported as accumulated other comprehensive income or loss.
The cost of available-for-sale debt securities is adjusted for amortization of premiums and accretion
of
Purchase premiums
and discounts
are for
recognized
in interest
income
the
Thediscounts.
cost of available-for-sale
debt securities
is adjusted
amortization
of premiums
and using
accretion
interest
method
over
the
terms
of
the
securities.
Declines
in
fair
value
of
securities
below
their
cost
of discounts. Purchase premiums and discounts are recognized in interest income using the
that
aremethod
deemed
to the
be terms
other ofthan
temporary are
reflected
income
as realized
losses.
In
interest
over
the securities.
Declines
in fairinvalue
of securities
below
their cost
estimating
other-than-temporary
impairment
losses,
management
considers
(1)
the
intent
to
sell
the
that are deemed to be other than temporary are reflected in income as realized losses. In
securities and
the more likely than
not requirement
for the Company
will (1)
be the
required
the
estimating
other-than-temporary
impairment
losses, management
considers
intentto
to sell
sell the
securities
prior
to
recovery,
(2)
the
length
of
time
and
the
extent
to
which
the
fair
value
has
been
securities and the more likely than not requirement for the Company will be required to sell the
less
than cost,
and
(3) the financial
condition
andand
near-term
proposals
of the
the fair
issuer.
and
securities
prior to
recovery,
(2) the length
of time
the extent
to which
valueGains
has been
losses
on
the
sale
of
securities
are
recorded
on
the
trade
date,
using
the
specific
identification
less than cost, and (3) the financial condition and near-term proposals of the issuer. Gains and
method,
and
included
in non-interest
income.on the trade date, using the specific identification
losses on
theare
sale
of securities
are recorded
method, and are included in non-interest income.
Restricted Stock
Restricted
Restrictedstock
Stockis carried at cost and evaluated for impairment. Restricted stock at December 31,
2015
and
2014
principally
Federal for
Home
Loan Bank
of Cincinnati
(FHLB)
stock31,
of
Restricted stock is
carried atconsists
cost andofevaluated
impairment.
Restricted
stock at
December
$1,547,700.
2015 and 2014 principally consists of Federal Home Loan Bank of Cincinnati (FHLB) stock of
$1,547,700.
Page 10
Comunibanc Corp.
NOTESCOMUNIBANC
TO CONSOLIDATED
STATEMENTS
CORP.FINANCIAL
AND SUBSIDIARY
DECEMBER
31,
2015
AND
2014
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Loans Held for Sale
Loans
and intended for sale in the secondary market are carried at the lower of cost or
Loans originated
Held for Sale
estimated
fair
value
the aggregate.
if any,
are at
recognized
a
Loans originated and inintended
for sale inNet
the unrealized
secondary losses,
market are
carried
the lower through
of cost or
valuation
allowance
by
charges
to
earnings.
The
Bank
had
no
loans
held
for
sale
at
December
31,
estimated fair value in the aggregate. Net unrealized losses, if any, are recognized through a
2015
and allowance
2014.
valuation
by charges to earnings. The Bank had no loans held for sale at December 31,
2015 and 2014.
Loans
The
Bank makes real estate, commercial and consumer loans to customers. Loans that
Loans
management
has the
intent
and ability
to hold and
for the
foreseeable
future
until maturityLoans
or pay-off
The Bank makes
real
estate,
commercial
consumer
loans
to or
customers.
that
are
reported
at
their
outstanding
unpaid
principal
balances
adjusted
for
charge-offs,
the
allowance
management has the intent and ability to hold for the foreseeable future or until maturity or pay-off
for
losses,
and outstanding
any deferred
fees or
costs on
originated
loans.
is accrued
on the
are loan
reported
at their
unpaid
principal
balances
adjusted
for Interest
charge-offs,
the allowance
unpaid
principal
balance.
Loan
origination
fees
and
direct
origination
costs
are
capitalized
for loan losses, and any deferred fees or costs on originated loans. Interest is accrued on and
the
recognized
as an balance.
adjustmentLoan
of the
yield of the
related
using
the interest
method.
unpaid principal
origination
fees
and loan
direct
origination
costs
are capitalized and
recognized as an adjustment of the yield of the related loan using the interest method.
The accrual of interest on mortgage and commercial loans is generally discontinued at the time the
loan
is 90 days
past due
the and
credit
is well-secured
in process
of collection.
Consumer
The accrual
of interest
onunless
mortgage
commercial
loans and
is generally
discontinued
at the
time the
loans
charged-off
nothe
later
thaniswhen
they become
days past
due. Past due
status
loan isare
90typically
days past
due unless
credit
well-secured
and 150
in process
of collection.
Consumer
is
based
on
contractual
terms
of
the
loan.
In
all
cases,
loans
are
placed
on
non-accrual
or
chargedloans are typically charged-off no later than when they become 150 days past due. Past due status
off
at an earlier
date if collection
considered
doubtful.
is based
on contractual
terms of of
theprincipal
loan. Inorallinterest
cases, is
loans
are placed
on non-accrual or chargedoff at an earlier date if collection of principal or interest is considered doubtful.
All interest accrued but not collected for loans that are placed on nonaccrual or charged-off is
reversed
against
interest
income.
Interest
on these
is accounted
for on the
cash-basis or
All interest
accrued
but not
collected
for loans
that loans
are placed
on nonaccrual
or charged-off
is
cost-recovery
method,
until
qualifying
for
return
to
accrual.
Loans
are
returned
to
accrual
status
reversed against interest income. Interest on these loans is accounted for on the cash-basis
or
when
all principal
and interest
amountsfor
contractually
due are Loans
broughtare
current
andto
future
payments
cost-recovery
method,
until qualifying
return to accrual.
returned
accrual
status
are
reasonably
assured.
when all principal and interest amounts contractually due are brought current and future payments
are reasonably assured.
Allowance for Loan Losses
The
allowance
for loan
losses is established as losses are estimated to have occurred through a
Allowance
for Loan
Losses
provision
for
loan
losses
charged
to earnings.
Loan losses
are charged
against
the allowance
The allowance for loan losses
is established
as losses
are estimated
to have
occurred
through a
when
management
believes
the
uncollectibility
of
a
loan
balance
is
confirmed.
provision for loan losses charged to earnings. Loan losses are charged against theSubsequent
allowance
recoveries,
if any, arebelieves
credited to
allowance. of a loan balance is confirmed. Subsequent
when management
thetheuncollectibility
recoveries, if any, are credited to the allowance.
The allowance for loan losses is evaluated on a regular basis by management and is based upon
management’s
collectibility
loans basis
in lightbyofmanagement
historical experience,
the nature
The allowance periodic
for loan review
losses of
is the
evaluated
on a of
regular
and is based
upon
and
volume
of
the
loan
portfolio,
adverse
situations
that
may
affect
the
borrower’s
ability
to
repay,
management’s periodic review of the collectibility of loans in light of historical experience, the nature
estimated
value
of any
collateral
and prevailing
economic
conditions.
This
evaluation
is
and volume
of the
loan underlying
portfolio, adverse
situations
that may
affect the
borrower’s
ability
to repay,
inherently
subjective
as
it
requires
estimates
that
are
susceptible
to
significant
revision
as
more
estimated value of any underlying collateral and prevailing economic conditions. This evaluation is
information
becomes as
available.
Due
to potential
in conditions,
it is at revision
least reasonably
inherently subjective
it requires
estimates
that changes
are susceptible
to significant
as more
possible
that
changes
in
estimates
will
occur
in
the
near
term
and
that
such
changes
could be
information becomes available. Due to potential changes in conditions, it is at least reasonably
material
thechanges
amountsin
reported
in the
consolidated
possible to
that
estimates
willCompany’s
occur in the
near termfinancial
and thatstatements.
such changes could be
material to the amounts reported in the Company’s consolidated financial statements.
The allowance consists of specific, general and unallocated components. The specific component
relates
to impaired
loansof when
the general
discounted
flows, collateral
value,
or specific
observable
market
The allowance
consists
specific,
and cash
unallocated
components.
The
component
price
of
the
impaired
loan
is
lower
than
the
carrying
value.
The
general
component
covers
relates to impaired loans when the discounted cash flows, collateral value, or observable market
classified
loans
(substandard
or
special
mention)
without
specific
reserves,
as
well
as
nonprice of the impaired loan is lower than the carrying value. The general component covers
classified
loans,
and
is
based
on
historical
loss
experience
adjusted
for
qualitative
factors.
An
classified loans (substandard or special mention) without specific reserves, as well as nonunallocated
component
is
maintained
to
cover
uncertainties
that
could
affect
management’s
classified loans, and is based on historical loss experience adjusted for qualitative factors. An
estimate
of probable
losses.
The unallocated
component
of thethat
allowance
the margin of
unallocated
component
is maintained
to cover
uncertainties
could reflects
affect management’s
imprecision
inherent
in
the
underlying
assumptions
used
in
the
methodologies
for
estimate of probable losses. The unallocated component of the allowance reflects the estimating
margin of
specific
and general
the portfolio.assumptions used in the methodologies for estimating
imprecision
inherentlosses
in thein underlying
specific and general losses in the portfolio.
Comunibanc Corp.
Page 11
NOTESCOMUNIBANC
TO CONSOLIDATED
STATEMENTS
CORP.FINANCIAL
AND SUBSIDIARY
DECEMBER
31,
2015
AND
2014
Allowance for Loan Losses, Continued
A
loan is considered
based on current information and events, it is probable that the
Allowance
for Loan impaired
Losses, when,
Continued
Bank
will
be
unable
to
collect
the
scheduled
payments
of principal or
interest
due according
to
A loan is considered impaired when, based on
current information
and
events,when
it is probable
that the
the
contractual
terms
of
the
loan
agreement.
Factors
considered
by
management
in
determining
Bank will be unable to collect the scheduled payments of principal or interest when due according to
impairment
include
status,
collateral Factors
value, and
the probability
of collecting
scheduled
the contractual
termspayment
of the loan
agreement.
considered
by management
in determining
principal
and
interest
payments
when
due.
Loans
that
experience
insignificant
payment
delays
and
impairment include payment status, collateral value, and the probability of collecting scheduled
payment
shortfalls
generally
are
not
classified
as
impaired.
Management
determines
the
principal and interest payments when due. Loans that experience insignificant payment delays and
significance
of
payment
delays
and
payment
shortfalls
on
a
case-by-case
basis,
taking
into
payment shortfalls generally are not classified as impaired. Management determines the
consideration
of the circumstances
the loanon
anda the
borrower, including
the length
significance ofallpayment
delays and surrounding
payment shortfalls
case-by-case
basis, taking
into
of
the
delay,
the
reasons
for
the
delay,
prior
payment
record,
and
the
amount
of
the
shortfall
in
consideration all of the circumstances surrounding the loan and the borrower, including the length
relation
to
the
principal
and
interest
owed.
Impairment
is
measured
on
a
loan
by
loan
basis
for
of the delay, the reasons for the delay, prior payment record, and the amount of the shortfall in
commercial
and
construction
loans owed.
by either
the present
value of expected
cash
flows
relation to the
principal
and interest
Impairment
is measured
on a loan future
by loan
basis
for
discounted
at
the
loan’s
effective
interest
rate,
the
loan’s
obtainable
market
price,
or
the
fair
value
of
commercial and construction loans by either the present value of expected future cash flows
the
collateral
if
the
loan
is
collateral
dependent.
discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of
the collateral if the loan is collateral dependent.
Under certain circumstances, the Bank may provide borrowers relief through loan restructurings. A
restructuring
debt constitutes
troubled
restructuring
(TDR)through
if the Bank,
for economic or
Under certainofcircumstances,
the aBank
may debt
provide
borrowers relief
loan restructurings.
A
legal
reasons
related
to
the
borrower’s
financial
difficulties,
grants
a
concession
to
the
restructuring of debt constitutes a troubled debt restructuring (TDR) if the Bank, for borrower
economicthat
or
it
would
not otherwise
Concessions
includegrants
reduction
of interesttorates,
extension
of
legal
reasons
related toconsider.
the borrower’s
financialmay
difficulties,
a concession
the borrower
that
maturity
dates,
forgiveness
of
principal
or
interest
due,
or
acceptance
of
other
assets
in
full
or
it would not otherwise consider. Concessions may include reduction of interest rates, extension of
partial
of the debt.
TDR loans
present
an elevated of
level
of credit
maturitysatisfaction
dates, forgiveness
of principal
or typically
interest due,
or acceptance
other
assetsrisk
in as
fullthe
or
borrowers
are
not
able
to
perform
according
to
the
original
contractual
terms.
Loans
that
partial satisfaction of the debt. TDR loans typically present an elevated level of credit risk as are
the
reported
TDRs
considered
impaired
and measured
for impairment,
previously
described.
borrowersasare
notare
able
to perform
according
to the original
contractualasterms.
Loans
that are
reported as TDRs are considered impaired and measured for impairment, as previously described.
Large groups of smaller balance homogeneous loans are collectively evaluated for impairment.
Accordingly,
Bank does
not homogeneous
separately identify
consumer
loans for
for impairment.
impairment
Large groupsthe
of smaller
balance
loansindividual
are collectively
evaluated
disclosures.
Accordingly, the Bank does not separately identify individual consumer loans for impairment
disclosures.
Other Real Estate Owned
Assets
acquired
through
or in lieu of foreclosure are initially recorded at fair value, less estimated
Other Real
Estate
Owned
costs
to
sell,
and
any
loan
excess of are
suchinitially
value recorded
is charged
allowance
for loan
Assets acquired through or balance
in lieu ofinforeclosure
at to
fairthe
value,
less estimated
losses.
Subsequent
to
foreclosure,
valuations
are
periodically
performed
and
any
further
costs to sell, and any loan balance in excess of such value is charged to the allowance forwriteloan
downs
included intoother
operatingvaluations
expenses,are
as periodically
are gains orperformed
losses upon
expenses
losses. are
Subsequent
foreclosure,
andsale
anyand
further
writerelated
to maintenance
of the operating
properties.expenses, as are gains or losses upon sale and expenses
downs are
included in other
related to maintenance of the properties.
Premises and Equipment
Premises
and Equipment
equipment are stated at cost, less accumulated depreciation. Depreciation is
Premises and
determined
based
on the estimated
useful
lives ofless
the accumulated
individual assets,
which generally
range from
Premises and equipment
are stated
at cost,
depreciation.
Depreciation
is
15
to
40
years
for
buildings
and
improvements
and
5
to
10
years
for
other
depreciable
assets,
and
determined based on the estimated useful lives of the individual assets, which generally range from
is
primarily
using the
method.
15computed
to 40 years
for buildings
andstraight-line
improvements
and 5 to 10 years for other depreciable assets, and
is computed primarily using the straight-line method.
Premises and equipment are reviewed for impairment when events indicate their carrying amount
may
not be
recoverable
undiscounted
cash when
flows.events
If impaired,
thetheir
assets
are recorded
Premises
and
equipmentfrom
are future
reviewed
for impairment
indicate
carrying
amount
at
fair
value.
may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded
at fair value.
Bank Owned Life Insurance
The
hasLife
purchased
life insurance policies on certain directors and officers. Bank owned life
BankBank
Owned
Insurance
insurance
is
recorded
at
the insurance
amount that
can be
realizeddirectors
at the balance
sheet Bank
date owned
under the
The Bank has purchased life
policies
on certain
and officers.
life
insurance
contracts,
which
is
the
cash
surrender
value
adjusted
for
any
charges
or
other
amounts
insurance is recorded at the amount that can be realized at the balance sheet date under
the
at
settlement.
insurance
contracts, which is the cash surrender value adjusted for any charges or other amounts
at settlement.
Page 12
Comunibanc Corp.
NOTESCOMUNIBANC
TO CONSOLIDATED
STATEMENTS
CORP.FINANCIAL
AND SUBSIDIARY
DECEMBER
31,
2015
AND
2014
Servicing
Mortgage
Servicing loans sold are generally sold with the mortgage servicing rights retained by the Bank.
The
carrying
value
mortgage
by servicing
the cost rights
allocated
to the
Mortgage
loans
soldofare
generallyloans
sold sold
with is
thereduced
mortgage
retained
byassociated
the Bank.
mortgage
servicing
rights.
Gains
or
losses
on
sales
of
mortgage
loans
are
recognized
based
on the
The carrying value of mortgage loans sold is reduced by the cost allocated to the
associated
difference
between
the
selling
price
and
the
carrying
value
of
the
related
mortgages
sold.
mortgage servicing rights. Gains or losses on sales of mortgage loans are recognized based on the
difference between the selling price and the carrying value of the related mortgages sold.
Mortgage servicing rights are recognized as an asset when acquired through sale of loans, reported
in
other assets,
andrights
amortized
to expense
and over
the period
of,loans,
the estimated
Mortgage
servicing
are recognized
as in
anproportion
asset whento,acquired
through
sale of
reported
future
net
servicing
income
of
the
underlying
loans.
Mortgage
servicing
rights
are
evaluated
for
in other assets, and amortized to expense in proportion to, and over the period of, the
estimated
impairment
based
upon
the
estimated
fair
value
of
the
rights
as
compared
to
amortized
cost.
Fair
future net servicing income of the underlying loans. Mortgage servicing rights are evaluated for
value
is determined
based
estimated
discounted
flows
using market-based
assumptions.
impairment
based upon
theupon
estimated
fair value
of thecash
rights
as compared
to amortized
cost. Fair
Impairment
is
recognized
through
a
valuation
allowance
to
the
extent
that
fair
value
is
less than the
value is determined based upon estimated discounted cash flows using market-based assumptions.
capitalized
Impairmentamount.
is recognized through a valuation allowance to the extent that fair value is less than the
capitalized amount.
Servicing fee income is recorded for fees earned for servicing loans and is included in other
operating
net ofisamortization
mortgage
servicing
rights. loans and is included in other
Servicing income,
fee income
recorded forof fees
earned
for servicing
operating income, net of amortization of mortgage servicing rights.
Supplemental Retirement Benefits
Annual
provisions
are made
for the estimated liability for accumulated supplemental retirement
Supplemental
Retirement
Benefits
benefits
under
agreements
with
officers liability
and directors.
These provisions
are determined
Annual provisions are made for certain
the estimated
for accumulated
supplemental
retirement
based
on
the
terms
of
the
agreements,
as
well
as
certain
assumptions
including
estimated
service
benefits under agreements with certain officers and directors. These provisions are determined
periods
and
discount
rates.
based on the terms of the agreements, as well as certain assumptions including estimated service
periods and discount rates.
Rate Lock Commitments
Loan Lock
commitments
related to the origination or acquisition of mortgage loans that will be held for
Rate
Commitments
sale
are
accounted
for as derivative
instruments.
The Bankof enters
into loans
commitments
Loan commitments related
to the origination
or acquisition
mortgage
that will to
beoriginate
held for
loans
whereby
the
interest
rate
on
the
loan
is
determined
prior
to
funding
(rate
lock
commitments).
sale are accounted for as derivative instruments. The Bank enters into commitments to originate
Rate
commitments
mortgage
loansis that
are intended
be sold
arelock
considered
to be
loans lock
whereby
the interestonrate
on the loan
determined
prior totofunding
(rate
commitments).
derivatives.
Accordingly,
such
commitments,
along
with
any
related
fees
received
from
potential
Rate lock commitments on mortgage loans that are intended to be sold are considered to be
borrowers,
to be recorded
fair value asalong
derivative
assets
or liabilities,
with changes
in fair
derivatives. are
Accordingly,
such at
commitments,
with any
related
fees received
from potential
value
recorded
in
the
net
gain
or
loss
on
sale
of
mortgage
loans.
Fair
value
is
based
on
borrowers, are to be recorded at fair value as derivative assets or liabilities, with changes infees
fair
currently
charged
and for fixed-rate
also considers
value
recorded
in to
theenter
net into
gain similar
or lossagreements,
on sale of mortgage
loans. commitments
Fair value is based
on fees
the
difference
between
current
levels of
interest rates
committed
rates. At also
December
31,
currently
charged
to enter
into similar
agreements,
andand
for the
fixed-rate
commitments
considers
2015
and
2014,
derivative
assets
and
liabilities
relating
to
rate
lock
commitments
were
not
material
the difference between current levels of interest rates and the committed rates. At December 31,
to
the and
consolidated
financialassets
statements.
2015
2014, derivative
and liabilities relating to rate lock commitments were not material
to the consolidated financial statements.
Comprehensive Income (Loss)
Recognized
revenue,
expenses,
Comprehensive
Income
(Loss) gains and losses are included in net earnings. Although certain
changes
in
assets
and
liabilities,
such
unrealized
gains in
and
on available-for-sale
Recognized revenue, expenses,
gains
andaslosses
are included
netlosses
earnings.
Although certain
securities,inareassets
reported
a separate
component
of the equity
of the consolidated
balance
changes
andasliabilities,
such
as unrealized
gainssection
and losses
sheet,
such
items,
along
with
net
earnings,
are
components
of
comprehensive
income
(loss).
securities, are reported as a separate component of the equity section of the consolidated balance
sheet, such items, along with net earnings, are components of comprehensive income (loss).
Off-Balance Sheet Credit Related Financial Instruments
In
the ordinary
course
of business,
the Bank Instruments
enters into commitments to extend credit, including
Off-Balance
Sheet
Credit
Related Financial
commitments
under
loan
arrangements,
commercial
of credit, andtostandby
letters including
of credit.
In the ordinary course of business, the Bank enters letters
into commitments
extend credit,
The
face
amount
for
these
items
represents
the
exposure
to
loss,
before
considering
customer
commitments under loan arrangements, commercial letters of credit, and standby letters of credit.
collateral
ability for
to repay.
Such financial
instruments
are recorded
are funded.
The face on
amount
these items
represents
the exposure
to loss, when
beforethey
considering
customer
collateral on ability to repay. Such financial instruments are recorded when they are funded.
Comunibanc Corp.
Page 13
NOTESCOMUNIBANC
TO CONSOLIDATED
STATEMENTS
CORP.FINANCIAL
AND SUBSIDIARY
DECEMBER
31,
2015
AND
2014
Transfers of Financial Assets
Transfers
are accounted for as sales, when control over the assets has been
Transfers of
of financial
Financialassets
Assets
surrendered.
Control
over
transferred
assets
deemed
to be control
surrendered
when
(1) the
Transfers of financial assets are accounted
forisas
sales, when
over the
assets
hasassets
been
have
been
isolated
from
the
Bank,
(2)
the
transferee
obtains
the
right
(free
of
conditions
that
surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets
constrain
it
from
taking
advantage
of
that
right)
to
pledge
or
exchange
the
transferred
assets,
and
have been isolated from the Bank, (2) the transferee obtains the right (free of conditions that
(3)
the
Bank
does
not
maintain
effective
control
over
the
transferred
assets
through
an
agreement
constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and
to
themnot
before
their maturity.
(3)repurchase
the Bank does
maintain
effective control over the transferred assets through an agreement
to repurchase them before their maturity.
The transfer of a participating interest in a financial asset must have all of the following
characteristics:
the date of
transfer,
represent
a proportionate
in
The transfer of(1)
a from
participating
interest
in it amust
financial
asset
must have ownership
all of the interest
following
the
financial
asset,
(2)
from
the
date
of
transfer,
all
cash
flows
received,
except
cash
flows
allocated
characteristics: (1) from the date of transfer, it must represent a proportionate ownership interest in
as
other
services all
performed,
must
be divided
proportionately
among
thecompensation
financial asset,for
(2)servicing
from theor
date
of transfer,
cash flows
received,
except
cash flows allocated
participating
interest
holders
in
the
amount
equal
to
their
share
ownership,
(3)
the
rights
of
each
as compensation for servicing or other services performed, must be divided proportionately among
participating
interest
holder
must
have
the
same
priority,
and
(4)
no
party
has
the
right
to
pledge
or
participating interest holders in the amount equal to their share ownership, (3) the rights of each
change the entire
financial
all participating
agree
so. to pledge or
participating
interest
holderasset
must unless
have the
same priority,interest
and (4)holders
no party
has to
thedoright
change the entire financial asset unless all participating interest holders agree to do so.
Income Taxes
The
Company
Income
Taxesand Bank are currently subject only to federal income taxes. Deferred income taxes
are
provided
differences
between
financial
and Deferred
income tax
reporting.
The Company on
andtemporary
Bank are currently
subject
only to
federal statement
income taxes.
income
taxes
Temporary
differences
are
differences
between
the
amounts
of
assets
and
liabilities
reported
for
are provided on temporary differences between financial statement and income tax reporting.
financial
statement
purposes
and
their
tax
bases.
Temporary differences are differences between the amounts of assets and liabilities reported for
financial statement purposes and their tax bases.
Deferred tax assets are recognized for temporary differences that will be deductible in future years’
tax
returns
for operating
loss and
credit carryforwards.
Deferred
tax assets are
recognized
Deferred
taxand
assets
are recognized
fortax
temporary
differences that
will be deductible
in future
years’
onlyreturns
if it is more-likely-than-not
thatand
a tax
will be realizedDeferred
or sustained
upon examination
by
tax
and for operating loss
taxposition
credit carryforwards.
tax assets
are recognized
the
relevant
taxing
authority.
A
tax
position
that
meets
the
more-likely-than-not
recognition
only if it is more-likely-than-not that a tax position will be realized or sustained upon examination by
threshold
is initially
subsequently
as the
largest
of tax benefit recognition
that has a
the relevant
taxing and
authority.
A tax measured
position that
meets
the amount
greater
than
50%
likelihood
of
being
realized
upon
settlement
with
a
taxing
authority
that
threshold is initially and subsequently measured as the largest amount of tax benefit thathas
hasfull
a
knowledge
of
all
relevant
information.
greater than 50% likelihood of being realized upon settlement with a taxing authority that has full
knowledge of all relevant information.
Deferred tax assets are reduced by a valuation allowance if it is deemed more-likely-than-not that
some
or all
the deferred
tax assets
not be allowance
realized. Deferred
tax liabilities
are recognizedthat
for
Deferred
taxofassets
are reduced
by awill
valuation
if it is deemed
temporary
differences
that
will
be
taxable
in
future
years.
some or all of the deferred tax assets will not be realized. Deferred tax liabilities are recognized for
temporary differences that will be taxable in future years.
Management does not believe it has any significant uncertain tax positions at December 31, 2015.
Tax
years thatdoes
remain
open and
subject
to examination
at December
31, 2015
are years
Management
not believe
it has
any significant
uncertain
tax positions
at December
31,2012
2015.2015.
Tax years that remain open and subject to examination at December 31, 2015 are years 2012 2015.
Advertising
Expenditures
Advertising for advertising and promotions are expensed as incurred.
Expenditures for advertising and promotions are expensed as incurred.
Per Share Data
Net Share
earnings
per share is computed based on the weighted average number of shares of common
Per
Data
stock
outstanding
duringiseach
year, after
restatement
for anyaverage
stock dividends.
share
Net earnings per share
computed
based
on the weighted
number ofDividends
shares ofper
common
are
based
on
the
number
of
shares
outstanding
on
the
declaration
date.
stock outstanding during each year, after restatement for any stock dividends. Dividends per share
are based on the number of shares outstanding on the declaration date.
Subsequent Events
Management
evaluated subsequent events through March 3, 2016, the date the consolidated
Subsequent Events
financial
statements
weresubsequent
available to be
issued.
Management evaluated
events
through March 3, 2016, the date the consolidated
financial statements were available to be issued.
Comunibanc Corp.
Page 14
NOTESCOMUNIBANC
TO CONSOLIDATED
STATEMENTS
CORP.FINANCIAL
AND SUBSIDIARY
DECEMBER
31,
2015
AND
2014
NOTE 2 - NEW ACCOUNTING PRONOUNCEMENTS
NOTE
2 - NEW
ACCOUNTING
PRONOUNCEMENTS
In
January
2014,
the FASB issued
ASU 2014-04, Receivables - Troubled Debt Restructurings by
Creditors
reducethe
diversity
clarifying
an in-substance
or foreclosure
occurs.
In
Januaryto2014,
FASB by
issued
ASU when
2014-04,
Receivablesrepossession
- Troubled Debt
Restructurings
by
That
is,
when
a
creditor
should
be
considered
to
have
received
physical
possession
of
residential
Creditors to reduce diversity by clarifying when an in-substance repossession or foreclosure occurs.
real
property
collateralizing
consumer mortgage
loan such
that the
loan receivable
should
Thatestate
is, when
a creditor
should beaconsidered
to have received
physical
possession
of residential
be
derecognized
and
the
real
property
recognized.
The
amendments
in
ASU
2014-04,
which
were
real estate property collateralizing a consumer mortgage loan such that the loan receivable should
effective
for
the
year
ended
December
31,
2015,
did
not
have
a
material
impact
on
the
2015
be derecognized and the real property recognized. The amendments in ASU 2014-04, which were
consolidated
effective for financial
the year statements.
ended December 31, 2015, did not have a material impact on the 2015
consolidated
financial
statements.
In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall to address certain
aspects
of recognition,
measurement,
presentation,
and disclosure
of financial
instruments.
In January
2016, the FASB
issued ASU
2016-01, Financial
Instruments
- Overall
to address Among
certain
other
provisions
not
applicable
to
the
Company,
the
amendments
eliminate
the
requirement
to
aspects of recognition, measurement, presentation, and disclosure of financial instruments.
Among
disclose
the
fair
value
of
financial
instruments
measured
at
amortized
cost
for
entities
that
are
not
other provisions not applicable to the Company, the amendments eliminate the requirement to
public
business
the requirement
PBEs to cost
disclose
the method(s)
disclose
the fair entities
value of(PBEs),
financialeliminate
instruments
measured atfor
amortized
for entities
that are and
not
significant
assumptions
used
to
estimate
the
fair
value
that
is
required
to
be
disclosed
for financial
public business entities (PBEs), eliminate the requirement for PBEs to disclose the method(s)
and
instruments
for disclosure
purposes,
and require
use
exit price
whenfor
measuring
significant assumptions
used
to estimate
the fair PBEs
value to
that
is the
required
to benotion
disclosed
financial
the fair valueforofdisclosure
financial instruments
for require
disclosure
purposes.
in ASU
2016-01
instruments
purposes, and
PBEs
to use theThe
exitamendments
price notion when
measuring
are
effective
for
fiscal
years
beginning
after
December
15,
2016
with
early
adoption
permitted
for
the fair value of financial instruments for disclosure purposes. The amendments in ASU 2016-01
certain
provisions
of
the
amendment.
The
Company
does
not
expect
the
provisions
of
ASU
2016are effective for fiscal years beginning after December 15, 2016 with early adoption permitted for
01
to have
a material
impact
on the consolidated
financial
certain
provisions
of the
amendment.
The Company
doesstatements.
not expect the provisions of ASU 201601 to have a material impact on the consolidated financial statements.
NOTE 3 - SECURITIES
NOTE 3 - SECURITIES
The amortized cost and fair value of securities as of December 31, 2015 and 2014 are as follows:
The amortized cost and fair value of securities2015
as of December 31, 2015 and 2014
are as follows:
2014
Amortized 2015
cost
Amortized
Fair
value
Fair
value
6,468,782
41,981,099
6,468,782
Amortized 2014
cost
Amortized
Fair
value
Fair
value
25,381,025
45,695,824
25,381,025
Obligations of U.S. Government
agenciesofand
Obligations
U.S.corporations
Government
Obligations
of
states
and
agencies and
corporations
political
subdivisions
Obligations of states and
Mortgage-backed
securities
political subdivisions
Bank certificates of deposit
Mortgage-backed securities
Total certificates
securities of deposit
Bank
40,510,905
84,009,398
2,000,000
84,009,398
$ 132,967,941
2,000,000
41,981,099
83,899,168
1,999,494
83,899,168
$ 134,348,543
1,999,494
43,981,093
54,967,104
54,967,104
$ 124,589,358-
45,695,824
55,492,400
55,492,400
$ 126,569,249-
Total securities
$ 132,967,941
$ 134,348,543
$ 124,589,358
$ 126,569,249
$
$
cost
6,447,638
40,510,905
6,447,638
$
$
$
$
cost
25,641,161
43,981,093
25,641,161
$
$
A summary of gross unrealized gains and losses on securities at December 31, 2015 and 2014
follows:
A summary of gross unrealized gains and losses on securities at December 31, 2015 and 2014
follows:
2015
2014
Total
Gross
Gross
2015
unrealized
unrealized
Gross
Gross
gains
losses
unrealized
unrealized
gains
losses
$
40,412
$
19,268
1,538,453
68,259
$
40,412
$
19,268
1,538,453
68,259
396,226
506,456
506
396,226
506,456
$
1,975,091-
$
506
594,489
Gross
Gross
2014
unrealized
unrealized
Gross
Gross
gains
losses
unrealized
unrealized
gains
losses
$
187,225
$
447,361
1,793,652
78,921
$
187,225
$
447,361
1,793,652
78,921
664,428
139,132
664,428139,132-
$
2,645,305-
$
665,414-
Total
$
1,975,091
$
594,489
$
2,645,305
$
665,414
agenciesofand
Obligations
U.S.corporations
Government
Obligations
of
states
and
agencies and corporations
political
subdivisions
Mortgage-backed
securities
Bank
certificates
of
deposit
Comunibanc Corp.
Page 15
NOTESCOMUNIBANC
TO CONSOLIDATED
STATEMENTS
CORP.FINANCIAL
AND SUBSIDIARY
DECEMBER
31,
2015
AND
2014
NOTE 3 - SECURITIES (CONTINUED)
The amortized cost and fair value of securities at December 31, 2015, by contractual maturity, are
shown
below. Actual
maturities
may
from at
contractual
maturities
because
borrowers
may have
The amortized
cost and
fair value
of differ
securities
December
31, 2015,
by contractual
maturity,
are
the
right
to
call
or
prepay
obligations
with
or
without
call
or
prepayment
penalties.
shown below. Actual maturities may differ from contractual maturities because borrowers may have
the right to call or prepay obligations with or without call or prepayment penalties.
Amortized
Cost
Amortized
Due in one year or less
Due
year
through five years
Due after
in oneone
year
or less
Due
after
five
years
throughfive
ten years
years
Due after one year through
Due
after
ten
years
Due after five years through ten years
$
$
Cost
2,369,922
54,626,599
2,369,922
47,608,770
54,626,599
28,362,650
47,608,770
Fair
Value
Fair
Value
2,434,920
$
54,922,351
2,434,920
47,913,160
54,922,351
29,078,112
47,913,160
$
Due after ten years
Total
28,362,650
$ 132,967,941
29,078,112
$ 134,348,543
Total
$ 132,967,941
$ 134,348,543
Securities with carrying values of $90,750,000 and $81,558,000 at December 31, 2015 and 2014,
respectively,
pledged
to ofsecure
public and
deposits,
and foratother
purposes
as required
or
Securities withwere
carrying
values
$90,750,000
$81,558,000
December
31, 2015
and 2014,
permitted
by
law.
respectively, were pledged to secure public deposits, and for other purposes as required or
permitted by law.
Sales and maturities (including calls) of available-for-sale securities resulted in gross realized gains
of $412,284
in 2015 and
$381,716
in of
2014,
with applicable
income taxes
amounting
$140,177
in
Sales
and maturities
(including
calls)
available-for-sale
securities
resulted
in gross to
realized
gains
2015
and
$129,783
in
2014,
and
gross
realized
losses
of
$35,818
in
2015
and
$199
in
2014,
with
of $412,284 in 2015 and $381,716 in 2014, with applicable income taxes amounting to $140,177 in
applicable
income taxes
amounting
to $12,178
in losses
2015 and
$68 in 2014.
2015 and $129,783
in 2014,
and gross
realized
of $35,818
in 2015 and $199 in 2014, with
applicable income taxes amounting to $12,178 in 2015 and $68 in 2014.
The following table presents gross unrealized losses and fair value of securities, aggregated by
investment
category
and length
time that losses
individual
been inaggregated
a continuous
The following
table presents
grossofunrealized
and securities
fair value have
of securities,
by
unrealized
loss
position,
at
December
31,
2015
and
2014:
investment category and length of time that individual securities have been in a continuous
unrealized loss position, at December 31, 2015 and 2014:
2015
2015
Total
Securities in a Continuous Unrealized Loss Position
Less than 12 Months
12 Months or more
Total
Securities in a Continuous Unrealized Loss Position
Unrealized
Fair
Unrealized
Fair
Unrealized
Less than 12 Months
12 Months or more
Total
losses
value
losses
value
losses
Unrealized
Fair
Unrealized
Fair
Unrealized
losses
value
losses
value
losses
Fair
value
Fair
value
$
9,014
$
2,483,206
$
10,254
$
1,984,900
$
19,268
$
4,468,106
9,014
63,741
403,213
63,741
506
403,213
506
$ 476,474
$
2,483,206
1,997,073
52,410,420
1,997,073
999,494
52,410,420
999,494
$ 57,890,193
$
$
$
19,268
68,259
506,456
68,259
506
506,456
506
594,489
$
$
1,984,900
934,446
6,059,216
934,446
6,059,216
8,978,562
$
$
10,254
4,518
103,243
4,518
103,243
118,015
$
4,468,106
2,931,519
58,469,636
2,931,519
999,494
58,469,636
999,494
66,868,755
Total
2014
2014
Mortgage-backed
securities
Total
$ 476,474
$ 57,890,193
$
118,015
$
8,978,562
$
594,489
$
66,868,755
$
29,568
$
1,972,769
$
417,793
$ 16,677,755
$
447,361
$
18,650,524
$
$
1,972,769
3,140,748
6,578,828
3,140,748
6,578,828
$ 11,692,345
$
$ 16,677,755
3,216,773
10,314,101
3,216,773
10,314,101
$ 30,208,629
$
447,361
78,921
139,132
78,921
139,132
665,414
$
$
417,793
58,739
128,092
58,739
128,092
604,624
$
$
29,568
20,182
11,040
20,182
11,040
60,790
$
18,650,524
6,357,521
16,892,929
6,357,521
16,892,929
41,900,974
Total
$
60,790
$ 11,692,345
$
604,624
$ 30,208,629
$
665,414
$
41,900,974
$
Comunibanc Corp.
Page 16
NOTESCOMUNIBANC
TO CONSOLIDATED
STATEMENTS
CORP.FINANCIAL
AND SUBSIDIARY
DECEMBER
31,
2015
AND
2014
At December 31, 2015, there were 61 securities in an unrealized loss position, 14 of which were in
a
loss position
12 months
or more.
At December
31, 2014,
there were
Atcontinuous
December unrealized
31, 2015, there
were 61for
securities
in an
unrealized
loss position,
14 of which
were59
in
securities
in
an
unrealized
loss
position,
41
of
which
were
in
a
continuous
loss
position
for 12
a continuous unrealized loss position for 12 months or more. At December 31, 2014, there were
59
months
or inmore.
Management
considered
industrywere
analyst
whether
by
securities
an unrealized
loss has
position,
41 of which
in areports,
continuous
loss downgrades
position for 12
bond
rating
agencies
have
occurred,
sector
credit
reports,
issuer’s
financial
condition,
and
volatility
months or more. Management has considered industry analyst reports, whether downgrades by
in
therating
bond agencies
market inhave
concluding
that
the unrealized
losses
as offinancial
December
31, 2015
2014
bond
occurred,
sector
credit reports,
issuer’s
condition,
andand
volatility
were
the result
of customary
andunrealized
expected losses
fluctuations
the bond31,
market
to
in the primarily
bond market
in concluding
that the
as of in
December
2015 related
and 2014
changes
in
interest
rates.
As
a
result,
all
security
impairments
as
of
December
31,
2015
and
2014
were primarily the result of customary and expected fluctuations in the bond market related to
are
considered
temporary.
changes
in interest
rates. As a result, all security impairments as of December 31, 2015 and 2014
are considered temporary.
NOTE 4 - LOANS AND ALLOWANCE FOR LOAN LOSSES
NOTE 4 - LOANS AND ALLOWANCE FOR LOAN LOSSES
Net loans at December 31, 2015 and 2014 consist of the following:
Net loans at December 31, 2015 and 2014 consist of the following:
Real estate
Consumer
Real
estate
Commercial
Consumer
Commercial
2015
2015
$ 95,517,805
8,428,333
$ 95,517,805
12,518,108
8,428,333
2014
$
$
2014
94,210,137
8,878,193
94,210,137
12,117,521
8,878,193
12,518,108
116,464,246
12,117,521
115,205,851
Deferred loan fees
Loans, net
116,464,246
(2,039,779)
(59,936)
(2,039,779)
115,205,851
(1,984,345)
(59,206)
(1,984,345)
(59,936)
$ 114,364,531
(59,206)
$ 113,162,300
Loans, net
$ 114,364,531
$ 113,162,300
Less:
Allowance for loan losses
Less:
Deferred
fees losses
Allowanceloan
for loan
Fixed rate loans approximated $29,918,000 and $32,251,000 at December 31, 2015 and 2014,
respectively.
Fixed rate loans approximated $29,918,000 and $32,251,000 at December 31, 2015 and 2014,
respectively.
Most of the Bank’s business activity is with customers located in the Henry County area. A
substantial
the loan
portfolio
is represented
by mortgage
and commercial
loans
Most of theportion
Bank’s of
business
activity
is with
customers located
in the Henry
County area.
A
throughout
the
Bank’s
primary
lending
area,
which
consists
of
Henry
and
Wood
Counties
and
the
substantial portion of the loan portfolio is represented by mortgage and commercial loans
surrounding
areas.
Theprimary
ability of
the Bank’s
to honor
their and
contracts
dependent
throughout the
Bank’s
lending
area, customers
which consists
of Henry
WoodisCounties
andupon
the
the real estate
and general
economic
in this area.
surrounding
areas.
The ability
of the conditions
Bank’s customers
to honor their contracts is dependent upon
the real estate and general economic conditions in this area.
Certain directors and executive officers, including their immediate families and companies in which
they
aredirectors
principaland
owners,
are loan
customers
of their
the Bank.
Suchfamilies
loans are
in the in
ordinary
Certain
executive
officers,
including
immediate
andmade
companies
which
course
of
business
in
accordance
with
the
Bank’s
normal
lending
policies,
including
the
interest
rate
they are principal owners, are loan customers of the Bank. Such loans are made in the ordinary
charged
and
collateralization,
and
do
not
represent
more
than
a
normal
collection
risk.
Such
loans
course of business in accordance with the Bank’s normal lending policies, including the interest rate
amounted
to $1,759,418
and $1,826,709
December
31,than
2015aand
2014,
respectively.
charged and
collateralization,
and do not at
represent
more
normal
collection
risk. Such loans
amounted to $1,759,418 and $1,826,709 at December 31, 2015 and 2014, respectively.
In evaluating the allowance for loan losses, loans are generally analyzed based on how loans are
categorized
financial
reporting
purposes.
In evaluatingfor
the
allowance
for loan
losses, loans are generally analyzed based on how loans are
categorized for financial reporting purposes.
Comunibanc Corp.
Page 17
NOTESCOMUNIBANC
TO CONSOLIDATED
STATEMENTS
CORP.FINANCIAL
AND SUBSIDIARY
DECEMBER
31,
2015
AND
2014
NOTE 4 - LOANS AND ALLOWANCE FOR LOAN LOSSES (CONTINUED)
Construction loans are underwritten utilizing independent appraisals, sensitivity analysis of
absorption,
rates andutilizing
financialindependent
analysis of the
developerssensitivity
and property
owners.
Constructionvacancy
loans and
are lease
underwritten
appraisals,
analysis
of
Constructionvacancy
loans are
based
upon estimates
and valueand
associated
the
absorption,
andgenerally
lease rates
and financial
analysisofof costs
the developers
property with
owners.
complete
project.
These
estimates
mayupon
be inaccurate.
loans
often involve
the
Construction
loans are
generally
based
estimates of Construction
costs and value
associated
with the
disbursement
of
funds
with
repayment
substantially
dependent
on
the
success
of
the
ultimate
complete project. These estimates may be inaccurate. Construction loans often involve the
project.
Theseof loans
monitored
by on-site
inspections
are considered
to have
disbursement
fundsare
withclosely
repayment
substantially
dependent
on and
the success
of the ultimate
higher
risks
than
other
real
estate
loans
due
to
their
ultimate
repayment
being
sensitive
to
interest
project. These loans are closely monitored by on-site inspections and are considered to
have
rate
changes,
general
economic
conditions
and
the
availability
of
long-term
financing.
The
Bank
higher risks than other real estate loans due to their ultimate repayment being sensitive to interest
may changes,
require guarantees
on theseconditions
loans. The
construction
loans are financing.
secured primarily
by
rate
general economic
andBank’s
the availability
of long-term
The Bank
properties
located
in
its
primary
market
area
and
are
included
in
the
real
estate
loan
portfolio.
may require guarantees on these loans. The Bank’s construction loans are secured primarily by
properties located in its primary market area and are included in the real estate loan portfolio.
The Bank originates 1 - 4 family real estate and consumer loans utilizing credit reports to
supplement
the underwriting
The
Bank’s
manual
underwriting
standards
for 1reports
- 4 family
The Bank originates
1 - 4 process.
family real
estate
and
consumer
loans utilizing
credit
to
loans
are
generally
in
accordance
with
FHLMC
manual
underwriting
guidelines.
Properties
supplement the underwriting process. The Bank’s manual underwriting standards for 1 - 4 family
securing
- 4 four in
family
real estate
are manual
appraised
by either staff
appraisers
or fee
loans are1 generally
accordance
withloans
FHLMC
underwriting
guidelines.
Properties
appraisers,
both
of
which
are
independent
of
the
loan
origination
function
and
have
been
approved
securing 1 - 4 four family real estate loans are appraised by either staff appraisers or fee
by
the Board
of of
Directors.
loan-to-value
normally dofunction
not exceed
80%been
without
credit
appraisers,
both
which areThe
independent
of theratios
loan origination
and have
approved
enhancements
as mortgage
insurance. The
Bank
will lend
100% of
thewithout
lesser of
the
by
the Board ofsuch
Directors.
The loan-to-value
ratios
normally
do up
nottoexceed
80%
credit
appraised
value
or
purchase
price
for
conventional
1
4
family
real
estate
loans,
provided
private
enhancements such as mortgage insurance. The Bank will lend up to 100% of the lesser of the
mortgage
is obtained.
appraised insurance
value or purchase
price for conventional 1 - 4 family real estate loans, provided private
mortgage insurance is obtained.
The underwriting standards for consumer loans include a determination of the applicant’s payment
history
on other debts
and an
of their
abilityatodetermination
meet existingofobligations
and payments
The underwriting
standards
forassessment
consumer loans
include
the applicant’s
payment
on
the
proposed
loan.
To
monitor
and
manage
loan
risk,
policies
and
procedures
are
history on other debts and an assessment of their ability to meet existing obligations and developed
payments
and
modified,
as needed
bymonitor
management.
This activity,
coupled
withand
smaller
loan amounts
that are
on the
proposed
loan. To
and manage
loan risk,
policies
procedures
are developed
spread
acrossasmany
individual
borrowers,This
minimizes
risk. Additionally,
conditions
and
modified,
needed
by management.
activity, coupled
with smallermarket
loan amounts
that are
are
reviewed
by
management
on
a
regular
basis.
The
Bank’s
1
4
family
real
estate
loans
are
secured
spread across many individual borrowers, minimizes risk. Additionally, market conditions are
primarily
located
its primary
area. 1 - 4 family real estate loans are secured
reviewed by
by properties
management
on ainregular
basis.market
The Bank’s
primarily by properties located in its primary market area.
Commercial and agricultural real estate loans are subject to underwriting standards and processes
similar
to commercial
and agricultural
to those
uniqueand
to real
estate
Commercial
and agricultural
real estateoperating
loans are loans,
subjectintoaddition
underwriting
standards
processes
loans.
These
loans
are
viewed
primarily
as
cash
flow
loans
and
secondarily
as
loans
secured
by
similar to commercial and agricultural operating loans, in addition to those unique to real estate
real
estate.
Commercial
and
agricultural
real
estate
lending
typically
involves
higher
loan
principal
loans. These loans are viewed primarily as cash flow loans and secondarily as loans secured by
amounts
andCommercial
the repayment
these loans
generally
dependent
the successful
operation
of
real estate.
and of
agricultural
realisestate
lending
typicallyoninvolves
higher loan
principal
the property
the loanoforthese
the business
conducteddependent
on the property
theoperation
loan. Loan
amounts
andsecuring
the repayment
loans is generally
on thesecuring
successful
of
to
value
is
generally
75%
of
the
cost
or
value
of
the
assets.
Appraisals
on
properties
securing
the property securing the loan or the business conducted on the property securing the loan. Loan
these
loans
are generally
byvalue
fee appraisers
approved
by the
of Directors.
to value
is generally
75% ofperformed
the cost or
of the assets.
Appraisals
on Board
properties
securing
Because
payments
on
commercial
and
agricultural
real
estate
loans
are
often
dependent
on the
these loans are generally performed by fee appraisers approved by the Board of Directors.
successful
operation
or
management
of
the
properties,
repayment
of
such
loans
may
be
subject
to
Because payments on commercial and agricultural real estate loans are often dependent on the
adverse
conditions
in
the
real
estate
market
or
the
economy.
Management
monitors
and
evaluates
successful operation or management of the properties, repayment of such loans may be subject to
commercial
and agricultural
estate
loansorbased
on collateral
and risk rating
criteria.
Bank
adverse
conditions
in the realreal
estate
market
the economy.
Management
monitors
and The
evaluates
may
require
guarantees
on
these
loans.
The
Bank’s
commercial
and
agricultural
real
estate
loans
commercial and agricultural real estate loans based on collateral and risk rating criteria. The Bank
are
by properties
locatedThe
in its
primary
market area.
maysecured
require primarily
guarantees
on these loans.
Bank’s
commercial
and agricultural real estate loans
are secured primarily by properties located in its primary market area.
Comunibanc Corp.
Page 18
NOTESCOMUNIBANC
TO CONSOLIDATED
STATEMENTS
CORP.FINANCIAL
AND SUBSIDIARY
DECEMBER
31,
2015
AND
2014
Commercial and agricultural operating loans are underwritten based on the Bank’s examination of
current
and projected
cash flows
to determine
theunderwritten
ability of thebased
borrower
to repay
obligations
Commercial
and agricultural
operating
loans are
on the
Bank’stheir
examination
of
as
agreed.
This
underwriting
includes
the
evaluation
of
cash
flows
of
the
borrower,
underlying
current and projected cash flows to determine the ability of the borrower to repay their obligations
collateral,
and the includes
borrower’s
to manage
its business
The cash
flows
as agreed.if applicable,
This underwriting
theability
evaluation
of cash
flows of activities.
the borrower,
underlying
of
borrowers
and
the
collateral
securing
these
loans
may
fluctuate
in
value
after
the
initial
collateral, if applicable, and the borrower’s ability to manage its business activities. The cash flows
evaluation.
A
first
priority
lien
on
the
general
assets
of
the
business
normally
secures
these
types
of borrowers and the collateral securing these loans may fluctuate in value after the initial
of
loans. Loan
to value
and
are dependent
the nature
and type
of thethese
underlying
evaluation.
A first
prioritylimits
lien vary
on the
general
assets of upon
the business
normally
secures
types
collateral
and
the
financial
strength
of
the
borrower.
Crop
and
hail
insurance
is
required
for
most
of loans. Loan to value limits vary and are dependent upon the nature and type of the underlying
agricultural
borrowers.
Loans
are
generally
guaranteed
by
the
individual
borrowers.
The
Bank’s
collateral and the financial strength of the borrower. Crop and hail insurance is required for most
commercial
and agricultural
operating
lending guaranteed
is principallyby
in the
its primary
market
area. The Bank’s
agricultural borrowers.
Loans
are generally
individual
borrowers.
commercial and agricultural operating lending is principally in its primary market area.
The Bank has an internal credit analyst who reviews and validates credit risk on a periodic basis, as
well
as anhas
external
loan review
performed
semi-annually.
the creditbasis,
analyst
The Bank
an internal
credit analyst
whoannually
reviews or
and
validates creditResults
risk onof
a periodic
as
and
external
loan reviews
are presented
management
and the Audit
Committee.
Theanalyst
credit
well as
an external
loan review
performed to
annually
or semi-annually.
Results
of the credit
analyst
and loan
processes
complement
and reinforceand
the the
risk Audit
identification
and assessment
and external
loanreview
reviews
are presented
to management
Committee.
The credit
decisions
made
by
lenders
and
credit
personnel,
as
well
as
the
Bank’s
policies
and
procedures.
analyst and loan review processes complement and reinforce the risk identification and
assessment
decisions made by lenders and credit personnel, as well as the Bank’s policies and procedures.
The following is a summary of activity in the allowance for loan losses, as well as the Bank’s
recorded
investment
in loans, of
by activity
portfolioinsegment
and based
impairment
of and
for
The following
is a summary
the allowance
for on
loan
losses, asmethod,
well asasthe
Bank’s
the
years
ended
December
31,
2015
and
2014:
recorded investment in loans, by portfolio segment and based on impairment method, as of and for
the years ended December 31, 2015 and 2014:
2015
Commercial
Commercial
real estate
Commercial
real estate
$
$
Commercial
Allowance for Loan Losses:
Balance at January 1
Provision (credit) for loan losses
Loans charged-off
Recoveries
Loans charged-off
Recoveries
Balance at December 31
Ending balance individually
evaluated for impairment
Ending balance collectively
Loans:
Total loans:
Loans:
Ending Balance
Total loans:
Ending Balance
$
586,155
554,245
586,155
(579,116)
554,245
7,616
(579,116)
7,616
568,900
$
1,086,023
212,257
1,086,023
(284,000)
212,257
(284,000)
1,014,280
Real estate mortgage
2015
1st Lien
Junior Lien
1st Lien
Junior Lien
$
$
247,878
253,248
247,878
(90,438)
253,248
1,884
(90,438)
1,884
412,572
$
$
32,610
(11,303)
32,610
(11,303)
21,307
Consumer
Total
Consumer
Total
$
$
31,679
11,553
31,679
(39,902)
11,553
19,390
(39,902)
19,390
22,720
$
$
1,984,345
1,020,000
1,984,345
(993,456)
1,020,000
28,890
(993,456)
28,890
2,039,779
568,900
1,014,280
412,572
21,307
22,720
2,039,779
212,800
366,271
306,643
9,076
-
894,790
212,800
366,271
306,643
9,076
-
894,790
$
356,100
$
648,009
$
105,929
$
12,231
$
22,720
$
1,144,989
$
356,100
$
648,009
$
105,929
$
12,231
$
22,720
$
1,144,989
$ 12,518,108
$ 45,497,815
$ 42,085,038
$
7,934,952
$ 8,428,333
$116,464,246
$ 12,518,108
$ 45,497,815
$ 42,085,038
$
7,934,952
$ 8,428,333
$116,464,246
504,948
6,473,104
3,112,433
30,536
30,536
-
10,121,021
504,948
6,473,104
3,112,433
$ 12,013,160
$ 39,024,711
$ 38,972,605
$
7,904,416
$ 8,428,333
$106,343,225
10,121,021
$ 12,013,160
$ 39,024,711
$ 38,972,605
$
7,904,416
$ 8,428,333
$106,343,225
Comunibanc Corp.
Page 19
NOTESCOMUNIBANC
TO CONSOLIDATED
STATEMENTS
CORP.FINANCIAL
AND SUBSIDIARY
DECEMBER
31,
2015
AND
2014
2014
Commercial
Commercial
real estate
Commercial
real estate
$
$
Commercial
Loans charged-off
Provision
(credit) for loan losses
Recoveries
Loans charged-off
Recoveries
evaluated
for impairment
Ending
balance
collectively
Loans:
Total loans:
Loans:
Ending Balance
Total loans:
Ending Balance
457,408
1,410,988
$
457,408
(1,294,018)
1,410,988
11,777
(1,294,018)
11,777
586,155
1,405,515
2,431,927
$ 1,405,515
(2,751,767)
2,431,927
348
(2,751,767)
348
1,086,023
2014mortgage
Real estate
1st Lien
Junior Lien
1st Lien
Junior Lien
$
$
301,061
(42,776)
301,061
(10,407)
(42,776)
(10,407)
247,878
$
$
Consumer
Total
Consumer
65,640
(33,030)
65,640
(33,030)
32,610
$
$
Total
67,495
(17,109)
67,495
(38,319)
(17,109)
19,612
(38,319)
19,612
31,679
$
2,297,119
3,750,000
$ 2,297,119
(4,094,511)
3,750,000
31,737
(4,094,511)
31,737
1,984,345
586,155
1,086,023
247,878
32,610
31,679
1,984,345
250,000
473,397
32,392
4,053
-
759,842
250,000
473,397
32,392
4,053
-
759,842
$
336,155
$
612,626
$
215,486
$
28,557
$
31,679
$
1,224,503
$
336,155
$
612,626
$
215,486
$
28,557
$
31,679
$
1,224,503
$ 12,117,521
$ 43,821,072
$ 42,386,540
$
8,002,525
$ 8,878,193
$115,205,851
$ 12,117,521
$ 43,821,072
$ 42,386,540
$
8,002,525
$ 8,878,193
$115,205,851
255,632
2,893,380
515,154
71,447
15,497
3,751,110
255,632
2,893,380
515,154
71,447
15,497
3,751,110
$ 11,861,889
$ 40,927,692
$ 41,871,386
$
7,931,078
$ 8,862,696
$111,454,741
$ 11,861,889
$ 40,927,692
$ 41,871,386
$
7,931,078
$ 8,862,696
$111,454,741
The following represents the recorded investment and number of troubled debt restructurings by
class
of loan asrepresents
of December
2015 and
2014: and number of troubled debt restructurings by
The following
the 31,
recorded
investment
class of loan as of December 31, 2015 and 2014:
2015
2015
Amount
Number
Commercial
Real estate:
Commercial
Commercial
Real estate:
Mortgage - first lien
Commercial
Mortgage
- first lien
Total
Total
Number
5
$
5
9
5
9
5
19
$
19
Amount
328,118
Specific
reserve
Specific
reserve
$
67,654
$
$
328,118
5,896,589
1,191,921
5,896,589
1,191,921
7,416,628
$
7,416,628
2014
2014
Amount
Number
Number
$
67,654
351,755
156,356
351,755
156,356
575,765
5
3
5
3
8
$
575,765
8
-
$
-
$
Amount
Specific
reserve
Specific
reserve
-
$
2,353,723
239,902
2,353,723
239,902
$ 2,593,625
$
$
473,397
16,418
473,397
16,418
489,815
$ 2,593,625
$
489,815
During the year ended December 31, 2015, 13 loans were modified in troubled debt restructurings,
consisting
fiveended
commercial,
five commercial
estate,
three first
lien realdebt
estate
loans. The
During the of
year
December
31, 2015, 13real
loans
wereand
modified
in troubled
restructurings,
aggregate
outstanding
balance
of
these
loans
amounted
to
$5,444,739
with
specific
reserves
at
consisting of five commercial, five commercial real estate, and three first lien real estate loans. The
December
31,
2015
aggregating
$260,730.
The
modification
of
the
terms
of
the
loans
that
resulted
aggregate outstanding balance of these loans amounted to $5,444,739 with specific reserves at
in
a TDR included
the extension
of additional
borrowings
the extension
of that
the resulted
maturity
December
31, 2015either
aggregating
$260,730.
The modification
of theorterms
of the loans
date.
The
post-modification
balances
approximated
the
pre-modification
balances.
The
Bank
in a TDR included either the extension of additional borrowings or the extension of the maturity
intends
to
lend
no
additional
amounts
to
these
customers.
date. The post-modification balances approximated the pre-modification balances. The Bank
intends to lend no additional amounts to these customers.
-
Comunibanc Corp.
Page 20
NOTESCOMUNIBANC
TO CONSOLIDATED
STATEMENTS
CORP.FINANCIAL
AND SUBSIDIARY
DECEMBER
31,
2015
AND
2014
During the year ended December 31, 2014, two commercial real estate loans were modified in
troubled
debt
restructurings
with the31,
Bank
agreeing
to extend the
maturity
both loans.
During the
year
ended December
2014,
two commercial
real
estate date
loansofwere
modifiedThe
in
post-modification
balance
of
the
loans
aggregated
$1,580,236
with
a
specific
reserve
of
$45,197.
troubled debt restructurings with the Bank agreeing to extend the maturity date of both loans. The
post-modification balance of the loans aggregated $1,580,236 with a specific reserve of $45,197.
During 2012, the Bank entered into forbearance agreements with a loan customer experiencing
financial
difficulties
which,
among
things, extended
thewith
maturity
various loans
to the
During 2012,
the Bank
entered
intoother
forbearance
agreements
a loanofcustomer
experiencing
customer.
During 2014,
Bank other
lent approximately
$141,000
to the customer.
December
financial difficulties
which,the
among
things, extended
the maturity
of various In
loans
to the
2014,
the
Bank
charged
off
$2,941,990
of
loans
to
the
customer,
including
the
remaining
customer. During 2014, the Bank lent approximately $141,000 to the customer. In December
outstanding
balance
of its commercial
loans,ofas loans
well astoa the
significant
portion
of the commercial
real
2014, the Bank
charged
off $2,941,990
customer,
including
the remaining
estate
loan.
During
2015,
the
Bank
extended
additional
borrowings
to
the
customer
approximating
outstanding balance of its commercial loans, as well as a significant portion of the commercial real
$349,000.
December
2015,
the Bank
charged
off $327,000
of loans
customer.
estate loan.In During
2015,
the Bank
extended
additional
borrowings
to to
thethe
customer
approximating
$349,000. In December 2015, the Bank charged off $327,000 of loans to the customer.
The following table presents loans individually evaluated for impairment by class of loans as of
December
31, table
2015 and
2014:loans individually evaluated for impairment by class of loans as of
The following
presents
December 31, 2015 and 2014:
2015
Unpaid 2015 Allowance
principal
forAllowance
loan losses
Unpaid
allocated
balance
principal
for loan losses
With no related allowance recorded:
balance
allocated
Commercial
$
48,340
$
With no related allowance recorded:
Commercial
real
estate
3,944,714
Commercial
$
48,340
$
-Real
estate
(first
lien)
2,505,522
Commercial real estate
3,944,714
-Real
estate
(junior
lien)
11,440
-Real estate (first lien)
2,505,522
Consumer
Real
estate (junior lien)
11,440
-Consumer
With an allowance recorded:
Commercial
456,608
212,800
With
an allowance recorded:
Commercial
real
estate
2,528,390
366,271
Commercial
456,608
212,800
Real estate (first
606,911
306,643
Commercial
real lien)
estate
2,528,390
366,271
Real estate
estate (first
(junior
lien)
19,096
9,076
Real
lien)
606,911
306,643
2014
Unpaid 2014 Allowance
principal
forAllowance
loan losses
Unpaid
balance
allocated
principal
for loan losses
balance
allocated
$
5,632
$
1,530,705
$
5,632
$
-212,408
1,530,705
-67,394
212,408
-15,497
67,394
-15,497
-
250,000
1,362,675
250,000
302,746
1,362,675
4,053
302,746
250,000
473,397
250,000
32,392
473,397
4,053
32,392
Real estate (junior lien)
Total
19,096
$ 10,121,021
$
9,076
894,790
$
4,053
3,751,110
$
4,053
759,842
Total
$ 10,121,021
$
894,790
$
3,751,110
$
759,842
No additional funds are committed to be advanced in connection with impaired loans at
December
31, 2015
2014.
No additional
fundsand
are
committed to be advanced in connection with impaired loans at
December 31, 2015 and 2014.
The average balance of impaired loans for the years ended December 31, 2015 and 2014 was
approximately
$6,049,000
and $6,130,000,
Interest
income31,
recognized
impaired
The average balance
of impaired
loans for respectively.
the years ended
December
2015 andon2014
was
loans for the years
endedand
December
31, 2015
and 2014Interest
approximated
approximately
$6,049,000
$6,130,000,
respectively.
income $107,000
recognizedand
on $47,000,
impaired
respectively,
a cash
basis,
and $133,000
and $51,000,
respectively,
on an
accrual basis.
loans for theon
years
ended
December
31, 2015
and 2014
approximated
$107,000
and $47,000,
respectively, on a cash basis, and $133,000 and $51,000, respectively, on an accrual basis.
Comunibanc Corp.
Page 21
NOTESCOMUNIBANC
TO CONSOLIDATED
STATEMENTS
CORP.FINANCIAL
AND SUBSIDIARY
DECEMBER
31,
2015
AND
2014
The following table presents the aging of the recorded investment in past due and nonaccrual loans
as
December
31,presents
2015 andthe
2014
by of
class
loans: investment in past due and nonaccrual loans
Theoffollowing
table
aging
the of
recorded
as of December 31, 2015 and 2014 by class of loans:
2015
Commercial
2015
Commercial
Commercial
real estate
Commercial
Real estate:
real estate
First lien
Real estate:
Junior lien
First lien
Consumer
Junior lien
Consumer
Total
Total
2014
Commercial
2014
Commercial
Commercial
real estate
Commercial
Real estate:
real estate
First lien
Real estate:
Junior lien
First lien
Consumer
Junior lien
Consumer
Total
Total
Loans Past Due Accruing Interest
30 - 59
60 - 89
Over
Loans Past Due Accruing Interest
days
days
90
30 - 59
60 - 89
Over
days
days
90
$
55,261
$
134,086
$
$
$
55,261
758,542
758,542
1,686,508
93,871
1,686,508
71,530
93,871
71,530
$ 2,665,712
$
134,086
44,985
$
Total
Total
189,347
14,785
$
189,347
818,312
818,312
1,943,168
105,988
1,943,168
83,644
105,988
83,644
$ 3,140,459
Loans on
non-accrual
Loans on
non-accrual
$
201,378
Loans not past
due or on
Loans not past
non-accrual
due or on
non-accrual
$ 12,127,383
$
$
201,378
4,971,498
Total
Total
$ 12,518,108
12,127,383
39,708,005
$ 12,518,108
45,497,815
4,971,498
2,949,187
11,440
2,949,187
11,440
$ 8,133,503
39,708,005
37,192,683
7,817,524
37,192,683
8,344,689
7,817,524
8,344,689
$ 105,190,284
45,497,815
42,085,038
7,934,952
42,085,038
8,428,333
7,934,952
8,428,333
$ 116,464,246
$ 3,140,459
$ 8,133,503
$ 105,190,284
$ 116,464,246
$
44,985
256,660
12,117
256,660
12,114
12,117
12,114
459,962
$
14,785
14,785
$ 2,665,712
$
459,962
$
14,785
$
110,628
$
2,218
$
4,390
$
117,236
$
-
$
12,000,285
$ 12,117,521
$
110,628
622,212
$
2,218
197,759
$
4,390
-
$
117,236
819,971
$
593,455
$
12,000,285
42,407,646
$ 12,117,521
43,821,072
819,971
906,886
103,816
906,886
29,889
103,816
29,889
$ 1,977,798
$
593,455
374,069
21,815
374,069
21,815
989,339
42,407,646
41,105,585
7,876,894
41,105,585
8,848,304
7,876,894
8,848,304
$ 112,238,714
43,821,072
42,386,540
8,002,525
42,386,540
8,878,193
8,002,525
8,878,193
$ 115,205,851
$ 1,977,798
$
989,339
$ 112,238,714
$ 115,205,851
622,212
507,753
103,816
507,753
29,889
103,816
29,889
$ 1,374,298
$ 1,374,298
$
197,759
399,133
399,133
599,110
$
4,390
$
599,110
$
4,390
Credit Quality Indicators: The Company categorizes loans into risk categories based on relevant
information
about
the ability
borrowers
to service
their
such as: based
current
Credit Quality
Indicators:
TheofCompany
categorizes
loans
intodebt,
risk categories
on financial
relevant
information,
historical
payment
experience,
credit
documentation,
public
information,
and
current
information about the ability of borrowers to service their debt, such as: current financial
economic
trends,
among
other
factors.
The
Company
analyzes
loans
individually
by
classifying
the
information, historical payment experience, credit documentation, public information, and current
loans as totrends,
credit among
risk. This
analysis
includes
all loansanalyzes
from the loans
commercial
loan department.
economic
other
factors.
The Company
individually
by classifyingThis
the
analysis
is
performed
at
least
annually.
The
Company
uses
the
following
definitions
for
risk
ratings:
loans as to credit risk. This analysis includes all loans from the commercial loan department. This
analysis is performed at least annually. The Company uses the following definitions for risk ratings:
Pass: Loans classified as pass have no existing or known potential weakness deserving of
management’s
attention.
Pass: Loans close
classified
as pass have no existing or known potential weakness deserving of
management’s close attention.
Special Mention: Loans classified as special mention have a potential weakness that deserves
management’s
close
attention.
If left
uncorrected,
these
weaknesses
result in
Special
Mention:
Loans
classified
as special
mention
havepotential
a potential
weakness may
that deserves
deterioration
of
the
repayment
prospects
for
the
loan
or
of
the
Company’s
credit
position
at some
management’s close attention. If left uncorrected, these potential weaknesses may result
in
future
date.
deterioration of the repayment prospects for the loan or of the Company’s credit position at some
future date.
Substandard: Loans classified as substandard are inadequately protected by the current net worth
and paying capacity
the obligor
of the collateral
pledged, if protected
any. Loans
so classified
a
Substandard:
Loansofclassified
as or
substandard
are inadequately
by the
current nethave
worth
well-defined
weakness
or
weaknesses
that
jeopardize
the
liquidation
of
the
debt.
They
are
and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a
characterized
by the distinct
possibility that
Company the
will sustain
some
the deficiencies
well-defined weakness
or weaknesses
thatthejeopardize
liquidation
of loss
the ifdebt.
They are
are
not
corrected.
characterized by the distinct possibility that the Company will sustain some loss if the deficiencies
are not corrected.
Comunibanc Corp.
Page 22
NOTESCOMUNIBANC
TO CONSOLIDATED
STATEMENTS
CORP.FINANCIAL
AND SUBSIDIARY
DECEMBER
31,
2015
AND
2014
Doubtful: Loans classified as doubtful have all the weaknesses inherent in those classified as
substandard,
with the
addedas
characteristic
thatallthe
collection
or liquidation
in
Doubtful: Loans
classified
doubtful have
theweaknesses
weaknessesmake
inherent
in those
classified as
full,
on
the
basis
of
currently
existing
facts,
conditions,
and
values,
highly
questionable
and
substandard, with the added characteristic that the weaknesses make collection or liquidation in
improbable.
full, on the basis of currently existing facts, conditions, and values, highly questionable and
improbable.
Loans not meeting the criteria above that are analyzed individually as part of the above described
process
aremeeting
considered
to be pass
rated
Loans not
the criteria
above
thatloans.
are analyzed individually as part of the above described
process are considered to be pass rated loans.
As of December 31, 2015 and 2014, based on the most recent analysis performed, the risk
category
of loans by
of loans
was asbased
follows:
As of December
31,class
2015
and 2014,
on the most recent analysis performed, the risk
category of loans by class of loans was as follows:
2015
Commercial
2015
Commercial
Commercial
real estate
Commercial
Realreal
estate:
estate
First
lien
Real estate:
Junior
lien
First lien
Consumer
Junior lien
Special
mention
Special
Pass
Pass
$ 11,652,704
$ 11,652,704
37,089,986
37,089,986
37,133,413
7,904,416
37,133,413
7,904,416
$
$
mention
100,000
100,000
510,749
510,749
896,129
896,129
--
Substandard
Doubtful
Substandard
$
743,092
$
$
$
743,092
7,484,800
7,484,800
4,055,496
30,536
4,055,496
30,536
Doubtful
22,312
22,312
412,280
412,280
---
Not Rated
$
Not Rated
-
$
-8,428,333
-
Total
$
$
Total
12,518,108
12,518,108
45,497,815
45,497,815
42,085,038
7,934,952
42,085,038
8,428,333
7,934,952
Consumer
Total
$ 93,780,519
$ 1,506,878
$ 12,313,924
$
434,592
8,428,333
$ 8,428,333
8,428,333
$ 116,464,246
Total
2014
Commercial
2014
Commercial
Commercial
real estate
Commercial
Realreal
estate:
estate
First
lien
Real estate:
Junior
lien
First lien
Consumer
Junior lien
$ 93,780,519
$ 1,506,878
$ 12,313,924
$
434,592
$ 8,428,333
$ 116,464,246
$ 10,837,878
$
517,911
$
506,100
$
255,632
$
-
$
12,117,521
$ 10,837,878
38,457,154
$
517,911
1,895,192
$
506,100
2,875,271
$
255,632
593,455
$
-
$
12,117,521
43,821,072
38,457,154
40,179,264
7,751,856
40,179,264
7,751,856
1,895,192
152,012
111,346
152,012
1,396
111,346
2,875,271
1,569,107
67,876
1,569,107
67,876
593,455
486,157
71,447
486,157
15,497
71,447
-8,861,300
-
43,821,072
42,386,540
8,002,525
42,386,540
8,878,193
8,002,525
Consumer
Total
$ 97,226,152
1,396
$ 2,677,857
$ 5,018,354
15,497
$ 1,422,188
8,861,300
$ 8,861,300
8,878,193
$ 115,205,851
Total
$ 97,226,152
$ 2,677,857
$ 5,018,354
$ 1,422,188
$ 8,861,300
$ 115,205,851
NOTE 5 - LOAN SERVICING
NOTE 5 - LOAN SERVICING
Mortgage loans serviced for others are not included in the accompanying consolidated balance
sheets.
principal
balances
of included
mortgagein loans
serviced for consolidated
others approximated
Mortgage The
loansunpaid
serviced
for others
are not
the accompanying
balance
$41,540,000
$42,418,000
Decemberof31,mortgage
2015 andloans
2014, serviced
respectively.
Servicing
fee income
sheets.
Theand
unpaid
principalat balances
for others
approximated
amounted
to $112,907
in 2015 at
and
to $113,356
2014
and
is included
in otherServicing
operatingfee
income.
$41,540,000
and $42,418,000
December
31, in
2015
and
2014,
respectively.
income
amounted to $112,907 in 2015 and to $113,356 in 2014 and is included in other operating income.
The Bank sells substantially all qualified fixed rate residential real estate loans which it originates.
During
2015
andsubstantially
2014, the Bank
sold $6,499,050
$3,451,725,
loansit resulting
in
The Bank
sells
all qualified
fixed rateand
residential
real respectively,
estate loans of
which
originates.
net
gains
of
$151,510
in
2015
and
$96,192
in
2014,
including
$48,093
in
2015
and
$25,543
in
2014
During 2015 and 2014, the Bank sold $6,499,050 and $3,451,725, respectively, of loans resulting in
resulting
capitalizing
mortgage
servicing
net gainsfrom
of $151,510
in 2015
and $96,192
in rights.
2014, including $48,093 in 2015 and $25,543 in 2014
resulting from capitalizing mortgage servicing rights.
Comunibanc Corp.
Page 23
NOTESCOMUNIBANC
TO CONSOLIDATED
STATEMENTS
CORP.FINANCIAL
AND SUBSIDIARY
DECEMBER
31,
2015
AND
2014
NOTE 5 - LOAN SERVICING (CONTINUED)
NOTE 5 - LOAN SERVICING (CONTINUED)
Amortization of mortgage servicing rights amounted to $54,589 in 2015 and $36,953 in 2014 and is
reported
as aofreduction
other operating
income. to
Mortgage
rights
are included
other
Amortization
mortgageofservicing
rights amounted
$54,589servicing
in 2015 and
$36,953
in 2014inand
is
assets
in
the
consolidated
balance
sheets
and
amounted
to
$307,400
and
$313,896
at
reported as a reduction of other operating income. Mortgage servicing rights are included in other
December
and 2014, balance
respectively.
assets in 31,
the2015
consolidated
sheets and amounted to $307,400 and $313,896 at
December 31, 2015 and 2014, respectively.
NOTE 6 - PREMISES AND EQUIPMENT
NOTE 6 - PREMISES AND EQUIPMENT
The following is a summary of premises and equipment at December 31, 2015 and 2014:
The following is a summary of premises and equipment at December 31, 2015 and 2014:
2015
Land
Buildings and improvements
Land
Furniture
Buildings and
and equipment
improvements
Transportation
equipment
Furniture and equipment
$
$
Transportation equipment
2015
337,175
7,758,438
337,175
2,058,005
7,758,438
175,922
2,058,005
2014
$
$
175,922
10,329,540
4,618,688
10,329,540
Less accumulated depreciation
2014
337,175
7,758,438
337,175
1,681,135
7,758,438
175,922
1,681,135
175,922
9,952,670
4,326,453
9,952,670
Less accumulated depreciation
Premises and equipment, net
$
4,618,688
5,710,852
$
4,326,453
5,626,217
Premises and equipment, net
$
5,710,852
$
5,626,217
Depreciation of premises and equipment amounted to $292,234 in 2015 and $253,606 in 2014.
Depreciation of premises and equipment amounted to $292,234 in 2015 and $253,606 in 2014.
In October 2014, the Bank entered into a 10-year facility lease for a branch in Bowling Green, Ohio.
Rent
expense
forthe
theBank
leaseentered
amounted
$80,640facility
in 2015
and
in 2014.
Future
minimum
In October
2014,
into ato10-year
lease
for$6,720
a branch
in Bowling
Green,
Ohio.
lease expense
payments
December
31, 2015
under inthe
lease,
in November
2024,
Rent
foras
theoflease
amounted
to $80,640
2015
andwhich
$6,720expires
in 2014.
Future minimum
aggregate
$719,040,
with
$80,640 due
years
2016the
through
2020,
andexpires
$315,840
thereafter.
lease payments
as of
December
31, in
2015
under
lease,
which
in due
November
2024,
aggregate $719,040, with $80,640 due in years 2016 through 2020, and $315,840 due thereafter.
NOTE 7 - TIME DEPOSITS
NOTE 7 - TIME DEPOSITS
Time deposits include individual deposits of $250,000 and over approximating $61,921,000 and
$64,791,000
of December
31,deposits
2015 and
respectively.
Interest expense
on these time
Time depositsasinclude
individual
of 2014,
$250,000
and over approximating
$61,921,000
and
deposits
approximated
$253,000
in
2015
and
$260,000
in
2014.
Time
deposits
include
$64,791,000 as of December 31, 2015 and 2014, respectively. Interest expense onalso
these
time
brokered
deposits of $10,149,000
2015 and
December
31,include
2014.
deposits approximated
$253,000 at
in December
2015 and 31,
$260,000
in $13,287,000
2014. Time atdeposits
also
Of
the
brokered
deposits
at
December
31,
2015,
$3,400,000
mature
in
2016,
$2,339,000
mature
in
brokered deposits of $10,149,000 at December 31, 2015 and $13,287,000 at December 31, 2014.
2017,
$1,410,000
mature
in
2018,
and
$3,000,000
mature
in
2019.
Of the brokered deposits at December 31, 2015, $3,400,000 mature in 2016, $2,339,000 mature in
2017, $1,410,000 mature in 2018, and $3,000,000 mature in 2019.
Future scheduled maturities of certificates of deposit and other time accounts at December 31,
2015
as follows:
2016, $71,129,989;
2017,
$11,949,255;
2018,time
$7,966,172;
$5,499,574;
Futureare
scheduled
maturities
of certificates
of deposit
and other
accounts2019,
at December
31,
2020,
$3,666,384;
and
thereafter,
$162,065.
2015 are as follows: 2016, $71,129,989; 2017, $11,949,255; 2018, $7,966,172; 2019, $5,499,574;
2020, $3,666,384; and thereafter, $162,065.
Page 24
Comunibanc Corp.
NOTESCOMUNIBANC
TO CONSOLIDATED
STATEMENTS
CORP.FINANCIAL
AND SUBSIDIARY
DECEMBER
31,
2015
AND
2014
NOTE 8 - FEDERAL HOME LOAN BANK BORROWINGS
NOTE
8 - FEDERAL
HOME
LOANsecured
BANK BORROWINGS
At
December
31, 2015
and 2014,
Federal Home Loan Bank (FHLB) borrowings consist of
the
following:
At December 31, 2015 and 2014, secured Federal Home Loan Bank (FHLB) borrowings consist of
2015
2014
the following:
Note with interest at .34%, due August 2015
Note
with interest
interest at
at .34%,
.76% due
2016
Note with
dueJune
August
2015
Note
with
interest
at
4.25%
due
January
Note with interest at .76% due June 20162017
Note with
with interest
interest at
at 4.25%
4.15% due
due January
April 2017
Note
2017
Note
with
interest
at
4.33%
due
May
Note with interest at 4.15% due April 2017
2017
Note with
with interest
interest at
at 4.33%
.4.04%due
dueMay
August
2017
Note
2017
Note
with
interest
at
3.08%
due
December
2017
Note with interest at .4.04% due August 2017
Note
with
interest
at
1.29%,
with
monthly
principal
Note with interest at 3.08% due December 2017 and interest
of $26,661,
plus
anmonthly
annual principal
prepayment
to 20% of
Notepayments
with interest
at 1.29%,
with
andequal
interest
the
then
outstanding
principal
balance,
final
payment
due
payments of $26,661, plus an annual prepayment equal toJuly
20%2023
of
Notethe
with
interest
at
1.25%,
with
monthly
principal
and
interest
then outstanding principal balance, final payment due July 2023
of $35,477,
plus
anmonthly
annual principal
prepayment
to 20% of
Notepayments
with interest
at 1.25%,
with
andequal
interest
the
then
outstanding
principal
balance,
final
payment
due
payments of $35,477, plus an annual prepayment equal toJuly
20%2024
of
Notethe
with
interest
at
1.18%,
with
monthly
principal
and
interest
then outstanding principal balance, final payment due July 2024
of $44,194,
plus
anmonthly
annual principal
prepayment
to 20% of
Notepayments
with interest
at 1.18%,
with
andequal
interest
the
then
outstanding
principal
balance,
final
payment
due
payments of $44,194, plus an annual prepayment equal toMay
20%2025
of
$
$
2015
2,000,0002,000,000
2,000,000
3,000,000
2,000,000
1,500,000
3,000,000
1,000,000
1,500,000
1,000,000
1,000,000
1,000,000
$
$
2014
3,000,000
2,000,000
3,000,000
2,000,000
2,000,000
3,000,000
2,000,000
1,500,000
3,000,000
1,000,000
1,500,000
1,000,000
1,000,000
1,000,000
1,478,426
2,078,520
1,478,426
2,078,520
3,463,259
4,803,900
3,463,259
4,803,900
4,724,247
-
the then outstanding principal balance, final payment due May 2025
Total
4,724,247
$ 20,165,932
$ 20,382,420
Total
$ 20,165,932
$ 20,382,420
Future scheduled maturities of FHLB borrowings at December 31, 2015 are as follows: 2016,
$4,772,045;
2017,maturities
$10,558,134;
2018,
$1,517,333;
2019, $1,109,254;
2020,
and
Future scheduled
of FHLB
borrowings
at December
31, 2015 are
as $802,681;
follows: 2016,
thereafter,
$1,406,485.
$4,772,045; 2017, $10,558,134; 2018, $1,517,333; 2019, $1,109,254; 2020, $802,681; and
thereafter, $1,406,485.
Average borrowings from the FHLB approximated $23,165,000 in 2015 and $18,882,000 in 2014,
with
an average
weighted
rateapproximated
of 2.10% and$23,165,000
2.65% in 2015
and 2014,
respectively. inEligible
Average
borrowings
from interest
the FHLB
in 2015
and $18,882,000
2014,
mortgage
loans
approximating
$58,649,000
at
December
31,
2015
and
stock
in the FHLB
are
with an average weighted interest rate of 2.10% and 2.65% in 2015 and 2014, respectively.
Eligible
pledged
as
collateral
on
the
borrowings.
mortgage loans approximating $58,649,000 at December 31, 2015 and stock in the FHLB are
pledged as collateral on the borrowings.
NOTE 9 - SUPPLEMENTAL RETIREMENT BENEFITS
NOTE 9 - SUPPLEMENTAL RETIREMENT BENEFITS
The Bank has entered into various agreements with certain officers and directors to provide for
supplemental
benefits.
benefits with
include
amounts
accumulated
under
salary and
The Bank hasretirement
entered into
variousSuch
agreements
certain
officers
and directors
to provide
for
board
of
director
fees
deferrals,
as
specified
by
the
individuals.
The
agreements
provide
for
supplemental retirement benefits. Such benefits include amounts accumulated under salary and
monthly
retirement
benefits
based
on
the
value
of
the
individual’s
deferred
compensation
account
board of director fees deferrals, as specified by the individuals. The agreements provide for
with
interest
credited
monthly.
As on
of the
December
and 2014,
the Bank’s
liability for
such
monthly
retirement
benefits
based
value of31,
the2015
individual’s
deferred
compensation
account
deferred
compensation
payments
amounted
to
$2,121,538
and
$1,989,012,
respectively,
and
such
with interest credited monthly. As of December 31, 2015 and 2014, the Bank’s liability for such
amounts
are
included
in
other
liabilities
in
the
consolidated
balance
sheets.
The
Bank
has
deferred compensation payments amounted to $2,121,538 and $1,989,012, respectively, and such
purchased
life
insurance
policies
on
such
individuals
to
assist
in
funding
future
deferred
amounts are included in other liabilities in the consolidated balance sheets. The Bank has
compensation
purchased lifepayments.
insurance policies on such individuals to assist in funding future deferred
compensation payments.
The Bank has also entered into supplemental retirement and split-dollar life insurance
arrangements
withalso
certain
officersinto
and directors
of the retirement
Bank to provide
supplemental
The Bank has
entered
supplemental
and for
split-dollar
life retirement
insurance
and
death
benefits.
The
Bank’s
liability
for
estimated
accumulated
supplemental
retirement
benefits
arrangements with certain officers and directors of the Bank to provide for supplemental retirement
amounted
to
$861,040
and
$830,212
at
December
31,
2015
and
2014,
respectively,
and
such
and death benefits. The Bank’s liability for estimated accumulated supplemental retirement benefits
amounts
are
included
in
other
liabilities
in
the
consolidated
balance
sheets.
The
Bank’s
provision
amounted to $861,040 and $830,212 at December 31, 2015 and 2014, respectively, and such
related
these
arrangements
$42,505
in 2015
and $58,366
in 2014
.
amountsto are
included
in other was
liabilities
in the
consolidated
balance
sheets.
The Bank’s provision
related to these arrangements was $42,505 in 2015 and $58,366 in 2014 .
Comunibanc Corp.
Page 25
NOTESCOMUNIBANC
TO CONSOLIDATED
STATEMENTS
CORP.FINANCIAL
AND SUBSIDIARY
DECEMBER
31,
2015
AND
2014
NOTE 10 - EMPLOYEE BENEFIT PLANS
NOTE 10 - EMPLOYEE BENEFIT PLANS
The Henry County Bank Employee Stock Ownership Plan (ESOP) is a noncontributory benefit plan
established
to acquire
stock
of the Company
for the benefit
of all eligible
employees. Contributions
The Henry County
Bank
Employee
Stock Ownership
Plan (ESOP)
is a noncontributory
benefit plan
to
the
ESOP,
which
may
be
made
in
either
cash
or
Company
stock,
are
discretionary
limited to
established to acquire stock of the Company for the benefit of all eligible employees. and
Contributions
the
maximum
allowable
deduction
under
the
Internal
Revenue
Code.
The
Board
of
Directors
of the
to the ESOP, which may be made in either cash or Company stock, are discretionary and limited
to
Bank
authorized
a
cash
contribution
to
the
ESOP
of
$20,000
in
2015
and
2014.
As
of
the maximum allowable deduction under the Internal Revenue Code. The Board of Directors of the
December
31, 2015
the ESOP
held ESOP
33,389 ofand
32,564inshares,
respectively,
Bank authorized
a and
cash2014,
contribution
to the
$20,000
2015 and
2014. of
As the
of
Company’s
common
stock.
December 31, 2015 and 2014, the ESOP held 33,389 and 32,564 shares, respectively, of the
Company’s common stock.
The Bank also has a 401(k) retirement plan which covers all employees who meet certain eligibility
requirements.
The aBank’s
to the all
plan
amountedwho
to $44,340
for 2015
and
The Bank also has
401(k)matching
retirementcontributions
plan which covers
employees
meet certain
eligibility
$41,572
for
2014.
requirements. The Bank’s matching contributions to the plan amounted to $44,340 for 2015 and
$41,572 for 2014.
NOTE 11 - FEDERAL INCOME TAXES
NOTE
11 -for
FEDERAL
INCOME
TAXES
The credit
federal income
taxes
consists of the following for 2015 and 2014:
The credit for federal income taxes consists of the following for 2015 and 2014:
2015
Current provision
Deferred
credit
Current provision
Deferred credit
Total credit for federal income taxes
$
$
2015
77,142
(92,342)
77,142
$
(92,342)
(15,200)
$
(15,200)
2014
$
$
2014
39,544
(837,844)
39,544
$
(837,844)
(798,300)
$
(798,300)
The deferred credit of $92,342 in 2015 and $837,844 in 2014 resulted from the tax effects of
temporary
differences.
wasinno2015
impact
changes in
laws
and rates.
The
deferred
credit of There
$92,342
andfor$837,844
in tax
2014
resulted
from the tax effects of
temporary differences. There was no impact for changes in tax laws and rates.
The credit for federal income taxes differed from the amounts computed by applying the U.S.
federal
income
tax rateincome
of 34%taxes
to earnings
federal computed
income taxes
as a result
the
The credit
for federal
differed(loss)
from before
the amounts
by applying
theofU.S.
following:
federal income tax rate of 34% to earnings (loss) before federal income taxes as a result of the
following:
2015
Computed "expected" tax provision (credit)
Increase
(decrease)
income
taxes(credit)
resulting from:
Computed
"expected"intax
provision
Tax-exempt
income
from
municipal
securities
and loans
Increase (decrease) in income taxes resulting
from:
Interest
expense
associated
with
carrying
certain
Tax-exempt income from municipal securities and loans
tax-exempt
municipal
securities
and loans
Interest
expense
associated
with carrying
certain
Increase
in cash
value ofsecurities
life insurance
policies, net
tax-exempt
municipal
and loans
of premiums
paid
Increase
in cash
value of life insurance policies, net
Other,
net
of premiums paid
$
$
2015
498,700
498,700
(489,200)
2014
$
2014
(249,900)
$
(249,900)
(521,200)
(489,200)
13,500
(521,200)
15,200
13,500
(40,000)
1,800
(40,000)
15,200
(44,300)
1,900
(44,300)
Other,
net for federal income taxes
Total
credit
$
1,800
(15,200)
$
1,900
(798,300)
$
(15,200)
$
(798,300)
Comunibanc Corp.
Page 26
NOTESCOMUNIBANC
TO CONSOLIDATED
STATEMENTS
CORP.FINANCIAL
AND SUBSIDIARY
DECEMBER
31,
2015
AND
2014
NOTE 11 - FEDERAL INCOME TAXES (CONTINUED)
NOTE
- FEDERAL
INCOME
TAXES that
(CONTINUED)
The
tax11
effects
of temporary
differences
give rise to deferred tax assets and deferred tax
liabilities
at
December
31,
2015
and
2014
are
presented
below: tax assets and deferred tax
The tax effects of temporary differences that give
rise to deferred
liabilities at December 31, 2015 and 2014 are presented below:
Deferred tax assets:
Net operating
loss carryforward
Deferred
tax assets:
Alternative
minimum
tax credit carryforward
Net operating loss carryforward
Municipal
bond
tax
credit
carryforward
Alternative minimum tax credit
carryforward
Allowance
for
loan
losses
Municipal bond tax credit carryforward
Deferred compensation
Allowance
for loan losses
Other
Deferred
compensation
2015
2015
1,048,200
107,400
1,048,200
81,800
107,400
262,000
81,800
1,014,100
262,000
73,778
1,014,100
$
$
Other
Total
deferred tax assets
$
$
73,778
2,587,278
Total
deferred
tax assets
Deferred
tax liabilities:
Unrealized
gains on available-for-sale securities
Deferred
tax liabilities:
Federal
Home
Loan
Bank stock dividends
Unrealized gains
securities
Mortgage
servicing
rights
Federal Home Loan Bank stock dividends
Premises
equipment
Mortgage and
servicing
rights
Discount
accretion
on investment securities and other
Premises and equipment
Discount
accretion
on investment securities and other
Total
deferred
tax liabilities
Total
deferredtax
tax assets
liabilities
Net deferred
2014
4,800
2,533,100
2,587,278
2,533,100
469,405
210,200
469,405
104,500
210,200
380,600
104,500
32,073
380,600
673,163
210,200
673,163
106,700
210,200
388,200
106,700
60,437
388,200
32,073
1,196,778
1,196,778
1,390,500
$
2014
1,103,700
96,700
1,103,700
43,100
96,700
326,300
43,100
958,500
326,300
4,800
958,500
60,437
1,438,700
$
1,438,700
1,094,400
Net deferred
$
1,390,500
$
1,094,400
Net
deferredtax
taxassets
assets are included in other assets in the accompanying
consolidated
balance
sheets.
Net deferred tax assets are included in other assets in the accompanying consolidated balance
sheets.
The net operating loss carryforward at December 31, 2015 approximated $3,083,000 and is
available
to reduce loss
future
taxable income
through 2034.
The
alternative minimum
tax and
credit
The net operating
carryforward
at December
31, 2015
approximated
$3,083,000
is
carryforward
of
$107,400
at
December
31,
2015
may
be
utilized
in
the
future
to
the
extent
available to reduce future taxable income through 2034. The alternative minimum tax credit
computed
regular
tax exceeds
the alternative
tax.be utilized in the future to the extent
carryforward
of $107,400
at December
31, minimum
2015 may
computed regular tax exceeds the alternative minimum tax.
Management believes it is more likely than not that the benefit of deferred tax assets will be
realized.
Therefore,
no itvaluation
assets
deemedtaxnecessary
as be
of
Management
believes
is more allowance
likely than for
notdeferred
that thetax
benefit
of is
deferred
assets will
December
31,
2015
and
2014.
realized. Therefore, no valuation allowance for deferred tax assets is deemed necessary as of
NOTE 12 - COMMITMENTS AND CONTINGENT LIABILITIES
NOTE
- COMMITMENTS
AND CONTINGENT
LIABILITIES
In
the 12
normal
course of business,
the Bank makes
various commitments and incurs certain
contingent
liabilities
under
financial
instruments
with
off-balance
risk that are
presented
in
In the normal course of business, the Bank makes various sheet
commitments
andnotincurs
certain
the
accompanying
consolidated
financial
statements.
These
financial
instruments
primarily
contingent liabilities under financial instruments with off-balance sheet risk that are not presented in
represent
commitments
to extendfinancial
credit and
letters of credit
approximated
the following
the accompanying
consolidated
statements.
Theseand
financial
instruments
primarily
amounts
at
December
31,
2015
and
2014,
the
following
financial
instruments
whose
contract
represent commitments to extend credit and letters of credit and approximated the following
amount
represents
credit
risk
were
approximately
as
follows:
amounts at December 31, 2015 and 2014, the following financial instruments whose contract
amount represents credit risk were approximately as follows:
$
Contract Amount
2015
2014
Contract Amount
2015
2014
15,148,000
$
13,978,000
Commitments to extend credit
Letters of credit
Commitments to extend credit
Letters of credit
Total
$
$
142,000
15,148,000
142,000
15,290,000
$
$
144,000
13,978,000
144,000
14,122,000
Total
$
15,290,000
$
14,122,000
Comunibanc Corp.
Page 27
NOTESCOMUNIBANC
TO CONSOLIDATED
STATEMENTS
CORP.FINANCIAL
AND SUBSIDIARY
DECEMBER
31,
2015
AND
2014
NOTE 12 - COMMITMENTS AND CONTINGENT LIABILITIES (CONTINUED)
NOTE 12 - COMMITMENTS
LIABILITIES
(CONTINUED)
Commitments
to extend creditAND
are CONTINGENT
agreements to lend
to a customer
as long as there is no violation
of
any
condition
established
in
the
contract.
Commitments
generally
have
expiration
dates or
Commitments to extend credit are agreements to lend to a customer as
longfixed
as there
is no violation
other
termination
clauses
and
generally
require
payment
of
a
fee.
Since
many
of
the
commitments
of any condition established in the contract. Commitments generally have fixed expiration dates or
are
expected
to expire
without
being drawn
upon
the totalofcommitment
necessarily
other
termination
clauses
and generally
require
payment
a fee. Sinceamounts
many ofdo
thenot
commitments
represent
future
cash
requirements.
The
Bank
evaluates
each
customer’s
credit-worthiness
on a
are expected to expire without being drawn upon the total commitment amounts do not necessarily
case-by-case
basis
and
the
amount
of
collateral
obtained,
if
deemed
necessary
by
the
Bank
upon
represent future cash requirements. The Bank evaluates each customer’s credit-worthiness on a
extension
of credit,
based
on management’s
evaluation
of thenecessary
customer.byCollateral
case-by-case
basis is
and
the amount
of collateralcredit
obtained,
if deemed
the Bankvaries
upon
but
generally
includes
real
property,
equipment,
and
income-producing
commercial
properties.
extension of credit, is based on management’s credit evaluation of the customer. Collateral varies
but generally includes real property, equipment, and income-producing commercial properties.
Stand-by letters of credit are conditional commitments issued to guarantee the performance of a
customer
to a third
party.areThose
guarantees
are primarily
to support
and private
Stand-by letters
of credit
conditional
commitments
issuedissued
to guarantee
the public
performance
of a
borrowing
arrangements,
including
commercial
paper,
bond
financing,
and
similar
transactions.
customer to a third party. Those guarantees are primarily issued to support public and private
The
credit arrangements,
risk involved inincluding
issuing commercial
letters of credit
is bond
essentially
the same
that istransactions.
involved in
borrowing
paper,
financing,
and similar
extending
loans
to
customers.
Collateral
to
support
the
commitment
may
be
required
if deemed
The credit risk involved in issuing letters of credit is essentially the same that is involved
in
necessary
by
management.
extending loans to customers. Collateral to support the commitment may be required if deemed
necessary by management.
In the normal course of business, the Company and Bank may be involved in various legal actions
but
in the
opinion
of management
andCompany
its legal counsel,
ultimate
disposition
of such
matters
is
In the
normal
course
of business, the
and Bankthe
may
be involved
in various
legal
actions
not
expected
to
have
a
material
adverse
effect
on
the
consolidated
financial
statements.
but in the opinion of management and its legal counsel, the ultimate disposition of such matters is
not expected to have a material adverse effect on the consolidated financial statements.
NOTE 13 - REGULATORY MATTERS
NOTE 13 - REGULATORY MATTERS
The Bank is subject to various regulatory capital requirements administered by federal and state
banking
to meet
minimum
capital
requirements
can initiate
The Bankagencies.
is subjectFailure
to various
regulatory
capital
requirements
administered
bycertain
federalmandatory
and state
and
possibly
additional
discretionary,
actions
by
regulators
that,
if
undertaken,
could
have
a direct
banking agencies. Failure to meet minimum capital requirements can initiate certain
mandatory
material
effect
on
the
Company’s
and
Bank’s
financial
statements.
These
capital
requirements
and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct
were
modified
the Basel
III Bank’s
capital rules
which
establish a These
new comprehensive
capital
material
effect inon2013
the with
Company’s
and
financial
statements.
capital requirements
framework
for
U.S.
banking
organizations.
The
Company
and
Bank
became
subject
to
the
new
were modified in 2013 with the Basel III capital rules which establish a new comprehensive capital
rules
on
January
1,
2015,
with
a
phase-in
period
for
many
of
the
new
provisions.
framework for U.S. banking organizations. The Company and Bank became subject to the new
rules on January 1, 2015, with a phase-in period for many of the new provisions.
Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the
Bank
specific
capital guidelines
that involve
quantitative
measures
of their
assets,
Under must
capitalmeet
adequacy
guidelines
and the regulatory
framework
for prompt
corrective
action,
the
liabilities,
and
certain
off-balance-sheet
items
as
calculated
under
regulatory
accounting
practices.
Bank must meet specific capital guidelines that involve quantitative measures of their assets,
The
capital
amounts
classification are
also
to qualitative
judgments
by the regulators
liabilities,
and
certain and
off-balance-sheet
items
as subject
calculated
under regulatory
accounting
practices.
about
components,
risk
weightings,
and
other
factors.
The capital amounts and classification are also subject to qualitative judgments by the regulators
about components, risk weightings, and other factors.
Quantitative measures established by regulation to ensure capital adequacy require the Bank to
maintain
minimum
amounts
and ratios
forth in to
theensure
table below)
Common require
Equity Tier
Tier to
1,
Quantitative
measures
established
by (set
regulation
capitalofadequacy
the I,Bank
and
total
capital
(as
defined
in
the
regulations)
to
risk-weighted
assets
(as
defined)
and
of
Tier
1
maintain minimum amounts and ratios (set forth in the table below) of Common Equity Tier I, Tier 1,
capital
to
average
assets
(as
defined).
Management
believes,
as
of
December
31,
2015
and
2014,
and total capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier 1
that
thetoBank
met all
capital
which it is
capital
average
assets
(asadequacy
defined). requirements
Managementtobelieves,
assubject.
of December 31, 2015 and 2014,
that the Bank met all capital adequacy requirements to which it is subject.
As of December 31, 2015, the most recent notification from federal and state banking agencies
categorized
the Bank
as “well
the regulatory
framework
for banking
prompt corrective
As of December
31, 2015,
the capitalized”
most recentunder
notification
from federal
and state
agencies
action.
To
be
categorized
as
“well
capitalized”,
an
institution
must
maintain
minimum
total riskcategorized the Bank as “well capitalized” under the regulatory framework for prompt corrective
based,
risk-based
and as
Tier“well
I leverage
ratios as
forth in must
the table.
There
are no conditions
action. Tier
To Ibe
categorized
capitalized”,
an set
institution
maintain
minimum
total riskor
events
since
the
notification
that
management
believes
have
changed
the
Bank’s
The
based, Tier I risk-based and Tier I leverage ratios as set forth in the table. There arecategory.
no conditions
Bank
also
believes
it
would
meet
all
of
the
new
Basel
III
capital
requirements
on
a
fully
phased-in
or events since the notification that management believes have changed the Bank’s category. The
basis
such
requirements
currently
effective.
Bank ifalso
believes
it wouldwere
meet
all of the
new Basel III capital requirements on a fully phased-in
basis if such requirements were currently effective.
Comunibanc Corp.
Page 28
NOTESCOMUNIBANC
TO CONSOLIDATED
STATEMENTS
CORP.FINANCIAL
AND SUBSIDIARY
DECEMBER
31,
2015
AND
2014
NOTE 13 - REGULATORY MATTERS (CONTINUED)
NOTE 13 - REGULATORY MATTERS (CONTINUED)
The actual capital amounts and ratios of the Bank as of December 31, 2015 and 2014 are
presented
the following
tableand
(thousands
dollars):
The actualincapital
amounts
ratios ofofthe
Bank as of December 31, 2015 and 2014 are
presented in the following table (thousands of dollars):
As of December 31, 2015
Total Capital (to RiskWeighted
Assets)
Total
Capital (to
RiskCommon
Equity
Tier I Capital
Weighted Assets)
(to
Risk-Weighted
Assets)
Common Equity Tier I Capital
Tier(to
I Capital
(to
RiskRisk-Weighted Assets)
Assets)
TierWeighted
I Capital (to
RiskTierWeighted
I Capital (to
Assets)
TierAverage
I CapitalAssets)
(to
Average Assets)
Total Capital (to RiskWeighted
Assets)
Total
Capital (to
RiskTierWeighted
I Capital (to
RiskAssets)
Weighted
Assets)
Tier I Capital (to RiskTierWeighted
I Capital (to
Assets)
Average
Tier I CapitalAssets)
(to
Average Assets)
Actual
Amount
ActualRatio
Amount
Ratio
Minimum
Capital
Minimum
Requirement
Capital
Amount
Ratio
Requirement
Amount
Ratio
Minimum to be
"well
capitalized"
Minimum
to be
under
prompt
"well capitalized"
corrective
under
prompt
action
provisions
corrective
Amount
Ratio
action provisions
Amount
Ratio
$ 28,015
20.4% $ 10,983
≥ 8.0% $ 13,729
≥ 10.0%
$ 28,015
$ 26,295
20.4% $ 10,983
19.1% $ 6,178
≥ 8.0% $ 13,729
≥ 4.5% $ 8,924
≥ 10.0%
≥ 6.5%
$ 26,295
$ 26,295
19.1% $ 6,178
19.1% $ 8,238
≥ 4.5% $ 8,924
≥ 6.0% $ 10,983
≥ 6.5%
≥ 8.0%
$ 26,295
$ 26,295
19.1% $ 8,238
9.6% $ 10,933
≥ 6.0% $ 10,983
≥ 4.0% $ 13,666
≥ 8.0%
≥ 5.0%
$ 26,295
9.6% $ 10,933
≥ 4.0% $ 13,666
≥ 5.0%
$ 27,277
18.8% $ 11,605
≥ 8.0% $ 14,506
≥ 10.0%
$ 27,277
$ 25,443
18.8% $ 11,605
17.5% $ 5,802
≥ 8.0% $ 14,506
≥ 4.0% $ 8,704
≥ 10.0%
≥ 6.0%
$ 25,443
$ 25,443
17.5% $ 5,802
9.7% $ 10,539
≥ 4.0% $ 8,704
≥ 4.0% $ 13,173
≥ 6.0%
≥ 5.0%
$ 25,443
9.7% $ 10,539
≥ 4.0% $ 13,173
≥ 5.0%
On a parent company only basis, the Company’s primary source of funds are dividends paid by the
Bank.
The ability
of the
pay
dividends primary
is subject
to limitations
under
variouspaid
laws
On a parent
company
onlyBank
basis,tothe
Company’s
source
of funds are
dividends
byand
the
regulations,
and
to
prudent
and
sound
banking
principles.
Generally,
subject
to
certain
minimum
Bank. The ability of the Bank to pay dividends is subject to limitations under various laws and
capital
requirements,
the Bank
declare
a dividend
without
the approval
Stateminimum
of Ohio,
regulations,
and to prudent
andmay
sound
banking
principles.
Generally,
subjectoftothe
certain
unless
the
total
dividends
in
a
calendar
year
exceed
the
total
of
its
net
profits
for
the
year
combined
capital requirements, the Bank may declare a dividend without the approval of the State of Ohio,
with itsthe
retained
profits ofinthe
two preceding
years.the Approximately
$233,000
wasyear
available
for
unless
total dividends
a calendar
year exceed
total of its net profits
for the
combined
dividends
on
January
1,
2016,
without
the
need
to
obtain
approval
from
the
State
of
Ohio
Division
of
with its retained profits of the two preceding years. Approximately $233,000 was available for
Financial
Institutions.
dividends on January 1, 2016, without the need to obtain approval from the State of Ohio Division of
Financial Institutions.
The Board of Governors of the Federal Reserve System generally considers it to be unsafe and
unsound
practiceoffor
bank holding
company
pay dividends
except
outunsafe
of current
The Boardbanking
of Governors
theaFederal
Reserve
System to
generally
considers
it to be
and
operating
income,
although
other
factors
such
as
overall
capital
adequacy
and
projected
unsound banking practice for a bank holding company to pay dividends except out of income
current
may also be
relevant
in determining
whether
dividends
should
be paid.
operating
income,
although
other factors
such
as overall
capital
adequacy and projected income
may also be relevant in determining whether dividends should be paid.
Comunibanc Corp.
Page 29
NOTESCOMUNIBANC
TO CONSOLIDATED
STATEMENTS
CORP.FINANCIAL
AND SUBSIDIARY
DECEMBER
31,
2015
AND
2014
NOTE 14 - SUPPLEMENTAL CASH FLOW DISCLOSURES
NOTE
14 - SUPPLEMENTAL
CASH
FLOW
DISCLOSURES
The
following
supplemental cash
flow
disclosures
are made for the years ended December 31,
2015
and
2014:
The following supplemental cash flow disclosures are made for the years ended December 31,
2015 and 2014:
Cash paid during the year for:
Interest
Cash
paid during the year for:
2015
2014
$
2015
1,247,201
$
2014
1,309,032
$
$
1,247,201
-
$
$
1,309,032
230,000
$
-
$
230,000
$
203,758
$
(1,742,944)
$
203,758
$
(1,742,944)
$
(599,289)
$
5,126,305
available-for-sale securities
Transfer of loans to other real estate owned
$
$
(599,289)
107,096
$
$
5,126,305
176,000
Transfer of loans to other real estate owned
$
107,096
$
176,000
Interest
Federal income taxes
Federal income taxes
Non-cash operating activities:
Deferredoperating
income taxes
on net unrealized losses
Non-cash
activities:
(gains)
on
available-for-sale
securities losses
Deferred income taxes on net unrealized
(gains)investing
Non-cash
activities: securities
Net
unrealized
gains
(losses) on
Non-cash investing activities:
available-for-sale
securities
Net unrealized gains (losses) on
NOTE 15 - FAIR VALUE MEASUREMENTS
NOTE
- FAIR
VALUE
FASB 15
ASC
820-10,
FairMEASUREMENTS
Value Measurements establishes a hierarchy prioritizing the inputs to
valuation
techniques,
giving
the Measurements
highest priority establishes
to quoted prices
in active
marketsthe
for inputs
identical
FASB ASC 820-10, Fair Value
a hierarchy
prioritizing
to
assets
and
liabilities
and
the
lowest
priority
to
unobservable
value
inputs.
valuation techniques, giving the highest priority to quoted prices in active markets for identical
assets and liabilities and the lowest priority to unobservable value inputs.
In determining fair value, the Company uses various valuation approaches within the FASB
ASC
820-10 fair fair
value
measurement
framework.
Fair value
measurements
are determined
In determining
value,
the Company
uses various
valuation
approaches
within the based
FASB
on
the
assumptions
that
market
participants
would
use
in
pricing
an
asset
or
liability. based
FASB
ASC 820-10 fair value measurement framework. Fair value measurements are determined
ASCthe
820-10
defines levels
hierarchy based
theinreliability
follows:
on
assumptions
that within
marketthe
participants
wouldon
use
pricing ofaninputs
assetasor
liability. FASB
ASC 820-10 defines levels within the hierarchy based on the reliability of inputs as follows:
 Level 1 - Quoted prices in active markets for identical assets or liabilities.
Level 2
1 -- Observable
Quoted prices
in active
for identical
or quoted
liabilities.
 Level
inputs
othermarkets
than Level
1 prices,assets
such as
prices for similar assets or
liabilities;
pricesinputs
in markets
that Level
are not
active; such
or other
inputs that
arefor
observable
or can
 Level
2 - quoted
Observable
other than
1 prices,
as quoted
prices
similar assets
or
be
corroborated
by
observable
market
data
for
substantially
the
full
term
of
the
assets
or
liabilities.
liabilities; quoted prices in markets that are not active; or other inputs that are observable or can
corroborated
by observable
datasupported
for substantially
of theactivity
assetsand
or liabilities.
 be
Level
3 - Unobservable
inputsmarket
that are
by littletheorfull
noterm
market
that are
significant
to
the
fair
value
of
the
assets
or
liabilities.
 Level 3 - Unobservable inputs that are supported by little or no market activity and that are
significant to the fair value of the assets or liabilities.
Certain financial assets and liabilities are measured at fair value on a recurring basis while others
are
measured
on assets
a nonrecurring
basis.are measured at fair value on a recurring basis while others
Certain
financial
and liabilities
are measured on a nonrecurring basis.
Certain financial assets and financial liabilities are measured at fair value on a nonrecurring basis;
that
is, the
instruments
measured
at fair
on an at
ongoing
basis
are subject basis;
to fair
Certain
financial
assets are
and not
financial
liabilities
arevalue
measured
fair value
on but
a nonrecurring
value
adjustments
in
certain
circumstances,
for
example,
when
there
is
evidence
of
impairment.
that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair
Financial
assets and
financialcircumstances,
liabilities, excluding
impaired
loans,
measured
at fair
value on a
value adjustments
in certain
for example,
when
there
is evidence
of impairment.
nonrecurring
basisand
were
not significant
at December
2015 and
2014.
Financial
assets
financial
liabilities,
excluding 31,
impaired
loans,
measured at fair value on a
nonrecurring basis were not significant at December 31, 2015 and 2014.
Comunibanc Corp.
Page 30
NOTESCOMUNIBANC
TO CONSOLIDATED
STATEMENTS
CORP.FINANCIAL
AND SUBSIDIARY
DECEMBER
31,
2015
AND
2014
NOTE 15 - FAIR VALUE MEASUREMENTS (CONTINUED)
NOTE were
15 - FAIR
VALUEinstruments
MEASUREMENTS
(CONTINUED)
There
no financial
measured
at fair value that moved to a lower level in the fair
value
hierarchy
due
to
the
lack
of
observable
quotes
in inactive
marketstofor
those level
instruments
at
There were no financial instruments measured at fair value
that moved
a lower
in the fair
December
31,
2015
and
2014.
value hierarchy due to the lack of observable quotes in inactive markets for those instruments at
The following table summarizes financial and nonfinancial assets (there were no financial liabilities)
measured
at fair
value
as of December
2015
and 2014,assets
segregated
theno
level
of the liabilities)
valuation
The following
table
summarizes
financial31,
and
nonfinancial
(there by
were
financial
inputs
within
the
fair
value
hierarchy
utilized
to
measure
fair
value:
measured at fair value as of December 31, 2015 and 2014, segregated by the level of the valuation
inputs within the fair value hierarchy utilized to measure fair value:
2015
Recurring
available-for-sale securities:
2015
Obligations
of U.S. government
Recurring available-for-sale
securities:
agencies
and
corporations
Obligations of U.S.
government
Obligations
of states
and political
agencies and
corporations
subdivisions
Obligations of states and political
Mortgage-backed
securities
subdivisions
Certificates
of
deposits
Certificates of deposits
Total Recurring
Total Recurring
Nonrecurring:
Impaired loans
Nonrecurring:
Other realloans
estate owned
Impaired
Other real estate owned
Total Nonrecurring
Total Nonrecurring
2014
Recurring
available-for-sale securities:
2014
Obligations
of U.S. government
Recurring available-for-sale
securities:
agencies
and
corporations
Obligations of U.S.
government
Obligations
of states
and political
agencies and
corporations
subdivisions
Obligations of states and political
Mortgage-backed
securities
subdivisions
Total Recurring
Total Recurring
Nonrecurring:
Impaired loans
Nonrecurring:
Other realloans
estate owned
Impaired
Other real estate owned
Total Nonrecurring
Total Nonrecurring
Level 1
Inputs1
Level
Level 2
Inputs2
Level
Inputs
Level 3
Inputs3
Level
Inputs
Total
Fair
Value
Total
Fair Value
Inputs
$
-
$
6,468,782
$
$
---
$
6,468,782
41,481,755
83,899,168
41,481,755
1,999,494
83,899,168
$
499,344
499,344
--
$
6,468,782
$
6,468,782
41,981,099
83,899,168
41,981,099
1,999,494
83,899,168
$
-
1,999,494
$ 133,849,199
$
499,344
1,999,494
$ 134,348,543
$
-
$ 133,849,199
$
499,344
$ 134,348,543
$
--
$
$
9,226,231
326,646
9,226,231
$
$
-
$
$
--
$
$
-
-
$
-
$
-
$ 25,381,025
$
$
--
$ 25,381,025
45,134,062
55,492,400
45,134,062
$
$
-
$
$
$
$
$
9,226,231
326,646
9,226,231
$
326,646
9,552,877
$
326,646
9,552,877
$
9,552,877
$
9,552,877
561,762
561,762
$ 25,381,025
$ 25,381,025
45,695,824
55,492,400
45,695,824
55,492,400
$ 126,007,487
$
561,762
55,492,400
$ 126,569,249
-
$ 126,007,487
$
561,762
$ 126,569,249
--
$
$
2,991,268
394,146
2,991,268
$
-
$
-
$
--
$
-
$
-
$
$
$
2,991,268
394,146
2,991,268
$
394,146
3,385,414
$
394,146
3,385,414
$
3,385,414
$
3,385,414
Impaired loans are reported net of an allowance for loan losses amounting to $894,790 in 2015 and
$759,842
in 2014.
Impaired loans
are reported net of an allowance for loan losses amounting to $894,790 in 2015 and
$759,842 in 2014.
Comunibanc Corp.
Page 31
NOTESCOMUNIBANC
TO CONSOLIDATED
STATEMENTS
CORP.FINANCIAL
AND SUBSIDIARY
DECEMBER
31,
2015
AND
2014
The only available-for-sale security classified as Level 3 on a recurring basis is a local school
district
taxavailable-for-sale
credit bond. Thesecurity
fair value
of the bond
has been
be itsispar
value.school
The
The only
classified
as Level
3 on determined
a recurringtobasis
a local
following
presents
in the
fairbond
valuehas
of the
bond
for the years
ended
December
31,
district taxtable
credit
bond. the
Thechanges
fair value
of the
been
determined
to be
its par
value. The
2015
and
2014:
following table presents the changes in the fair value of the bond for the years ended December 31,
2015
2014
2015 and 2014:
Balance at beginning of year
Principal
received
Balance payments
at beginning
of year
Principal payments
received
Balance
at end of year
Balance at end of year
$
$
2015
561,762
(62,418)
561,762
$
$
2014
624,180
(62,418)
624,180
$
(62,418)
499,344
$
(62,418)
561,762
$
499,344
$
561,762
The following is a description of the valuation methodologies used for significant instruments
measured
at fair
as well of
as the
the valuation
general classification
of such
pursuant
to the
The following
is value,
a description
methodologies
usedinstruments
for significant
instruments
valuation
hierarchy.
measured at fair value, as well as the general classification of such instruments pursuant to the
valuation hierarchy.
In general, fair value is based upon quoted market prices, where available. If such quoted market
prices
are not
fair value
is quoted
based upon
internally
modelsIfthat
primarily
as
In general,
fairavailable,
value is based
upon
market
prices, developed
where available.
such
quoted use,
market
inputs,
observable
market-based
parameters.
Valuation
adjustments
may
be
made
to
ensure
that
prices are not available, fair value is based upon internally developed models that primarily use, as
financialobservable
instruments
are recordedparameters.
at fair value. Valuation
These adjustments
may
include
amounts
to reflect
inputs,
market-based
adjustments
may
be made
to ensure
that
counterparty
credit
quality,
the
Company’s
credit
worthiness,
among
other
things,
as
well
as
financial instruments are recorded at fair value. These adjustments may include amounts to reflect
unobservable
parameters.
Any
such
valuation
adjustments
are
applied
consistently
over
time.
The
counterparty credit quality, the Company’s credit worthiness, among other things, as well as
Company’s
valuation
methodologies
produce
a fair value
that may not
betime.
indicative
unobservable
parameters.
Any suchmay
valuation
adjustments
arecalculation
applied consistently
over
The
of
net
realizable
value
or
reflective
of
future
fair
values.
While
management
believes
the
Company’s valuation methodologies may produce a fair value calculation that may not be indicative
Company’s
valuation
methodologies
are
appropriate
and
consistent
with
other
market
participants,
of net realizable value or reflective of future fair values. While management believes the
the
use of different
assumptions
determine
thewith
fair other
valuemarket
of certain
financial
Company’s
valuationmethodologies
methodologiesorare
appropriatetoand
consistent
participants,
instruments
could result
in a differentorestimate
of fair to
value
at the reporting
date. of certain financial
the
use of different
methodologies
assumptions
determine
the fair value
instruments could result in a different estimate of fair value at the reporting date.
Available-for-Sale Securities
Where
quoted prices
are available in an active market, securities are classified within Level 1 of the
Available-for-Sale
Securities
valuation
hierarchy.
Level
1 securities
would market,
typicallysecurities
include government
exchange
Where
quoted
prices are
available
in an active
are classifiedbonds
withinand
Level
1 of the
traded
equities.
If
quoted
market
prices
are
not
available,
then
fair
values
are
estimated
using
valuation hierarchy. Level 1 securities would typically include government bonds and exchange
pricing
models,
quoted
prices
of
securities
with
similar
characteristics,
or
discounted
cash
flows.
traded equities. If quoted market prices are not available, then fair values are estimated using
Examples
of such
instruments,
wouldwith
generally
classified within
2 of the
valuation
pricing models,
quoted
prices ofwhich
securities
similarbecharacteristics,
or Level
discounted
cash
flows.
hierarchy,
include
corporate
and
municipal
bonds,
mortgage-backed
securities,
and
asset-backed
Examples of such instruments, which would generally be classified within Level 2 of the valuation
securities.
In certain
cases where
there is limited
or less transparency
around
inputs to the
hierarchy, include
corporate
and municipal
bonds,activity
mortgage-backed
securities,
and asset-backed
valuation,
securities
are
classified
within
Level
3
of
the
valuation
hierarchy.
The
Company
does
not
securities. In certain cases where there is limited activity or less transparency around inputs
to the
have any securities
securitiesareclassified
Level
1. 3 of
The
security
classified
as Level 3
as not
of
valuation,
classified as
within
Level
the only
valuation
hierarchy.
The Company
does
December
31,
2015
and
2014
was
the
municipal
tax
credit
bond
for
which
fair
value
is
deemed
to
have any securities classified as Level 1. The only security classified as Level 3 as of
be
purchase
price
less
principal
payments.
December 31, 2015 and 2014 was the municipal tax credit bond for which fair value is deemed to
be purchase price less principal payments.
There were no gains or losses relating to securities available-for-sale included in earnings before
income
taxesnothat
wereorattributable
to changes
in fair values.
There were
gains
losses relating
to securities
available-for-sale included in earnings before
income taxes that were attributable to changes in fair values.
Impaired Loans
The Company
Impaired
Loansdoes not record impaired loans at fair value on a recurring basis. However,
periodically,
loans
arenot
considered
impairedloans
and are
reported
value basis.
of the underlying
The Company
does
record impaired
at fair
value atonthe
a fair
recurring
However,
collateral,
less
estimated
costs
to
sell,
if
repayment
is
expected
solely
from
the
collateral.
Collateral
periodically, loans are considered impaired and are reported at the fair value of the underlying
values
areless
estimated
using
Level
inputs,
includingisrecent
appraisals,
and the
Level
3 inputs Collateral
based on
collateral,
estimated
costs
to 2
sell,
if repayment
expected
solely from
collateral.
customized
discounting
criteria.
Due
to
the
significance
of
the
Level
3
inputs,
fair
values
values are estimated using Level 2 inputs, including recent appraisals, and Level 3 inputs based for
on
impaired
loans
have beencriteria.
classifiedDue
as Level
customized
discounting
to the3. significance of the Level 3 inputs, fair values for
impaired loans have been classified as Level 3.
Comunibanc Corp.
Page 32
NOTESCOMUNIBANC
TO CONSOLIDATED
STATEMENTS
CORP.FINANCIAL
AND SUBSIDIARY
DECEMBER
31,
2015
AND
2014
Other Real Estate Owned
The
Company
values
other real estate owned at the estimated fair value of the underlying collateral
Other
Real Estate
Owned
less
expected
selling
costs.real
Such
values
areat estimated
primarily
usingof appraisals
and collateral
reflect a
The Company values other
estate
owned
the estimated
fair value
the underlying
market
value
approach.
less expected selling costs. Such values are estimated primarily using appraisals and reflect a
market value approach.
NOTE 16 - FAIR VALUE OF FINANCIAL INSTRUMENTS
NOTE 16 - FAIR VALUE OF FINANCIAL INSTRUMENTS
The estimated fair values of recognized financial instruments at December 31, 2015 and 2014, are
as
Thefollows:
estimated fair values of recognized financial instruments at December 31, 2015 and 2014, are
as follows:
Financial Assets:
Cash and
cash equivalents
Financial
Assets:
Securities
and restricted
stock
Cash and cash
equivalents
Loans,
net
Securities and restricted stock
Loans, net
Financial Liabilities:
DepositsLiabilities:
Financial
Federal
DepositsHome Loan Bank borrowings
Federal Home Loan Bank borrowings
2015
Carrying 2015 Estimated
Amount
Value
Carrying
Estimated
Amount
Value
$ 11,777,008
$ 11,777,008
$135,901,918
11,777,008
$135,901,918
11,777,008
114,364,531
113,679,272
135,901,918
135,901,918
114,364,531
113,679,272
2014
Carrying 2014 Estimated
Amount
Value
Carrying
Estimated
Amount
Value
$ 8,772,907
$ 8,772,907
$128,122,624
8,772,907
$128,122,624
8,772,907
113,162,300
112,442,420
128,122,624
128,122,624
113,162,300
112,442,420
225,983,089
20,165,932
225,983,089
226,026,374
20,016,076
226,026,374
214,049,176
20,382,420
214,049,176
214,328,368
20,756,629
214,328,368
20,165,932
20,016,076
20,382,420
20,756,629
The above summary does not include accrued interest receivable and payable, cash value of life
insurance,
servicing
rights and
otherinterest
liabilities.
Thereand
are payable,
no significant
differences
The above mortgage
summary does
not include
accrued
receivable
cash value
of life
between themortgage
carrying value
and rights
fair value
theseliabilities.
of thedifferences
short-term
insurance,
servicing
andofother
There are because
no significant
nature
of the
the carrying
instruments.
between
value and fair value of these financial instruments because of the short-term
nature of the instruments.
The Bank also has unrecognized financial instruments at December 31, 2015 and 2014. These
financial
relate to commitments
to extend at
credit
and letters
of credit.
The contract
The Bankinstruments
also has unrecognized
December
31, 2015
and 2014.
These
amount
of
such
financial
instruments
total
approximately
$15,290,000
at
December
31,
and
financial instruments relate to commitments to extend credit and letters of credit. The2015
contract
$14,122,000
at December
31, 2014. Commitment
amounts
are considered
to be the 31,
estimated
fair
amount
of such
total approximately
$15,290,000
at December
2015 and
value
since
the
interest
rates
on
such
amounts
are
at
current
rates
or
are
considered
to
be
$14,122,000 at December 31, 2014. Commitment amounts are considered to be the estimated fair
reasonably
close
to
current
rates.
value since the interest rates on such amounts are at current rates or are considered to be
reasonably close to current rates.
The following methods and assumptions were used to estimate the fair value of financial
instruments
shown
above:and assumptions were used to estimate the fair value of financial
The following
methods
instruments shown above:
Cash and Cash Equivalents
Fair
determined
to be the carrying amount for these items.
Cashvalue
and is
Cash
Equivalents
Fair value is determined to be the carrying amount for these items.
Securities and FHLB Stock
Fair
value and
of securities,
excluding Federal Home Loan Bank of Cincinnati stock, is determined
Securities
FHLB Stock
based
on
quoted
market
prices
of the
individual
securities
whereofavailable.
market
prices
Fair value of securities, excluding
Federal
Home
Loan Bank
CincinnatiIf quoted
stock, is
determined
are noton
available,
fair values
areofobtained
by comparison
otheravailable.
known securities
with
similar
risk
based
quoted market
prices
the individual
securities to
where
If quoted
market
prices
and
maturity
characteristics.
Fair
value
does
not
consider
possible
tax
ramifications
or
estimated
are not available, fair values are obtained by comparison to other known securities with similar risk
transaction
The carrying
Federal
Loan
Bank tax
stock
approximates
fair value
and maturitycosts.
characteristics.
Fairvalue
valueofdoes
not Home
consider
possible
ramifications
or estimated
based
on
the
redemption
provisions
of
the
Federal
Home
Loan
Bank.
transaction costs. The carrying value of Federal Home Loan Bank stock approximates fair value
based on the redemption provisions of the Federal Home Loan Bank.
Comunibanc Corp.
Page 33
NOTESCOMUNIBANC
TO CONSOLIDATED
STATEMENTS
CORP.FINANCIAL
AND SUBSIDIARY
DECEMBER
31,
2015
AND
2014
NOTE 16 - FAIR VALUE OF FINANCIAL INSTRUMENTS (CONTINUED)
NOTE 16 - FAIR VALUE OF FINANCIAL INSTRUMENTS (CONTINUED)
Loans
Fair
value for loans is estimated for portfolios of loans with similar financial characteristics. For
Loans
adjustable
rate
loans,
which re-price
at least
annually
and generally
possess low risk
Fair value for
loans
is estimated
for portfolios
of loans
with similar
financial characteristics.
For
characteristics,
the
carrying
amount
is
a
reasonable
estimate
of
fair
value.
For
fixed
rate and
adjustable rate loans, which re-price at least annually and generally possess
low other
risk
loans,
the fair value
is estimated
based
on estimated
discounted
flows
interest
characteristics,
the carrying
amount
is a reasonable
estimate
of faircash
value.
Forusing
fixedcurrent
rate and
other
rates.
Such
computations
consider
weighted
average
rates
and
terms
of
the
portfolio,
and
are
loans, the fair value is estimated based on estimated discounted cash flows using current interest
adjusted
for credit
and interest
rate risk
inherentaverage
in the loans.
loansare
is
rates. Such
computations
consider
weighted
rates Fair
and value
termsfor
ofnonperforming
the portfolio, and
based
on
recent
appraisals
or
estimated
discounted
cash
flows.
adjusted for credit and interest rate risk inherent in the loans. Fair value for nonperforming loans is
based on recent appraisals or estimated discounted cash flows.
Deposit Liabilities
The
fair value
of core deposits, including demand deposits, savings accounts, and certain money
Deposit
Liabilities
market
deposits,
thedeposits,
amount payable
demand.
The fairsavings
value ofaccounts,
fixed-maturity
certificates
of
The fair value of is
core
includingondemand
deposits,
and certain
money
deposit
and otheristime
accounts
is estimated
using the
offered
at year end for
deposits of
market deposits,
the amount
payable
on demand.
Therates
fair value
of fixed-maturity
certificates
of
similar
remaining
maturities.
The
estimated
fair
value
does
not
include
the
benefit
that
results
from
deposit and other time accounts is estimated using the rates offered at year end for deposits of
the
low-cost
funding
providedThe
by the
depositfair
liabilities
compared
to thethe
cost
of borrowing
funds
in
similar
remaining
maturities.
estimated
value does
not include
benefit
that results
from
the
market.
the low-cost funding provided by the deposit liabilities compared to the cost of borrowing funds in
the market.
Other Borrowings
The
fair
value of federal funds purchased is determined to be the carrying value due to their shortOther
Borrowings
term
nature.
fair value
Federal Home
Loan Bank
borrowings
is determined
on a
The fair value The
of federal
fundsofpurchased
is determined
to be
the carrying
value due tobased
their shortdiscounted
cash
flow
analysis
using
current
interest
rates.
term nature. The fair value of Federal Home Loan Bank borrowings is determined based on a
discounted cash flow analysis using current interest rates.
The fair value estimates of financial instruments are made at a specific point in time based on
relevant
information.
These estimates
do are
not made
reflect atany
premiumpoint
or discount
could
The fair market
value estimates
of financial
instruments
a specific
in time that
based
on
result
from
offering
for
sale
at
one
time
the
entire
holdings
of
a
particular
financial
instrument
over
relevant market information. These estimates do not reflect any premium or discount that could
the
anticipated
value of
of aassets
andfinancial
liabilities
that are over
not
resultvalue
from of
offering
for salefuture
at onebusiness
time the and
entirethe
holdings
particular
instrument
considered
financial
instruments.
Since
no
ready
market
exists
for
a
significant
portion
of
the
the value of anticipated future business and the value of assets and liabilities that are not
financial
instruments,
fair
value
estimates
are
largely
based
on
judgments
after
considering
such
considered financial instruments. Since no ready market exists for a significant portion of the
factors
future expected
credit estimates
losses, current
economic
conditions,
risk characteristics
of various
financialasinstruments,
fair value
are largely
based
on judgments
after considering
such
financial
instruments,
and
other
factors.
These
estimates
are
subjective
in
nature
and
involve
factors as future expected credit losses, current economic conditions, risk characteristics of various
uncertainties
and matters
of significant
judgment
and therefore
cannot inbenature
determined
with
financial instruments,
and other
factors. These
estimates
are subjective
and involve
precision.
Changes
in
assumptions
could
significantly
affect
these
estimates.
uncertainties and matters of significant judgment and therefore cannot be determined with
precision. Changes in assumptions could significantly affect these estimates.
Comunibanc Corp.
Page 34
FIVE
COMUNIBANC CORP.
COMUNIBANC
CORP.
FIVE
YEAR
SUMMARY
OF SELECTED
SELECTED FINANCIAL
DATA DATA
YEAR SUMMARY OF
FINANCIAL
Year Ended December 31
2015
Statements of Operations
Total interest income
Total interest expense
$
9,285
1,247
2014
2013
2012
(Dollars in thousands, except per share data)
$
9,474
1,304
$
9,396
1,546
$
9,887
1,826
2011
$
10,448
2,402
Net interest income
8,038
8,170
7,850
8,061
8,046
Provision for loan losses
1,020
3,750
850
450
200
7,018
4,420
7,000
7,611
7,846
1,454
7,005
1,426
6,581
1,188
6,740
1,753
6,879
1,333
6,518
(735)
1,448
2,485
2,661
(798)
8
411
493
Net interest income after
provision for loan losses
Total non-interest income
Total non-interest expenses
Earnings (loss) before income taxes
1,467
Provision (credit) for federal income taxes
Net earnings
Per share of common stock
Net earnings
Dividends
Book value
(15)
$
1,482
$
63
$
1,440
$
2,074
$
2,168
$
1.79
0.78
32.96
$
0.08
0.78
32.43
$
1.74
0.78
29.05
$
2.50
0.74
33.06
$
2.62
0.71
31.54
Year-end balances
Loans, net
Total assets
Deposits
Shareholders' equity
$ 114,365
135,902
276,637
225,983
27,308
$ 113,162
128,123
264,253
214,049
26,867
$ 116,637
114,192
255,619
209,816
24,067
$ 123,177
103,782
246,389
197,809
27,387
$ 128,920
94,513
241,307
186,747
26,135
Average balances
Loans, net
Total assets
Deposits
Shareholders' equity
$ 115,105
135,636
273,697
221,048
27,514
$ 115,169
126,299
262,787
216,115
26,115
$ 119,268
112,936
253,076
205,431
26,313
$ 125,108
101,631
247,719
195,271
27,064
$ 126,423
90,884
237,525
183,955
24,903
Selected ratios
Net yield on average interest-earning assets
Return on average assets
Return on average shareholders' equity
Allowance for loan losses as a percentage
of year-end loans
Shareholders' equity as a percentage of
total year-end assets
3.08%
0.54%
5.39%
3.21%
0.02%
0.24%
3.27%
0.57%
5.47%
3.45%
0.84%
7.66%
3.59%
0.91%
8.71%
1.75%
1.72%
1.93%
1.50%
1.15%
9.87%
10.17%
9.42%
11.12%
10.83%
Comunibanc Corp.
Page 35
COMUNIBANC CORP.
BOARD OF DIRECTORS
Paul K. Chamberlin, Owner, George’s Furniture
and Bedding
Edmund G. Peper, Chairman
Attorney, Peper Law Office
Fred T. Freppel, Secretary
Certified Public Accountant
Victor W. Sonnenberg, Retired Farmer
Rick L. Fruth, President, Fruth, Inc.
Jeffrey L. Stober, Vice President, Holgate
Implement Sales
Anthony E. Grieser, Treasurer/Comunibanc Corp.
William L. Wendt, President/Comunibanc Corp.
THE HENRY COUNTY BANK
BOARD OF DIRECTORS
Paul K. Chamberlin, Owner, George’s Furniture
and Bedding
Edmund G. Peper, Chairman
Attorney, Peper Law Office
Fred T. Freppel, Certified Public Accountant
Victor W. Sonnenberg, Retired Farmer
Rick L. Fruth, President, Fruth, Inc.
Jeffrey L. Stober, Vice President, Holgate
Implement Sales
Anthony E. Grieser, Executive Vice President/Chief
Financial Officer, The Henry County Bank
William L. Wendt, President/Chief Executive
Officer, The Henry County Bank
YOUR MANAGEMENT TEAM
William L. Wendt, President/Chief Executive Officer
Karen S. Johnston, Branch Manager/N. Scott St.
Anthony E. Grieser, Executive Vice President/Chief
Financial Officer
Cindy L. Overmier, Branch Manager/Liberty Center
Sharon S. Mack, Senior Vice President/Chief Operations
Officer
Darlene R. Rohrbaugh, Branch Manager/Holgate
Tara J. Fredrick, Branch Manager/S. Perry St.
J. Kevin Yarnell, Vice President/Senior Loan Officer
Sarah E. Biederstedt, Branch Manager/Malinta
David L. Wills, Vice President/Consumer Lending
Deb S. Russell, Branch Manager/Bowling Green
Karen R. Houts, Asst. Vice President/Commercial
Loan Officer
Daniel E. Ruby, Collection/Consumer Loan Officer
Leslee A. Thompson, Asst. Vice President/Lending
Bradley E. Van De Bussche, Chief Credit Officer
Timothy P. Okuley, Real Estate Loan Officer
William J. Morey, Loan Officer
Megan R. Marihugh, Credit Analyst
Sandra K. Burgel, Manager/Main Office
Brian A. Yarnell, Consumer Loan Officer
Nancy K. Helmke, Asst. Cashier/Bookkeeping
Cindy C. Celani, Asst. Cashier/Loans
Deborah L. Phillips, Asst. Cashier/Bookkeeping
Linda J. Comadoll, Internal Auditor
Monica J. Nye, Administrative Assistant
Page 36
Comunibanc Corp.
Continuing to Build Our
Financial Future
BOWLING GREEN OFFICE
124 E. Court Street
Bowling Green, OH 43402
2015 Comunibanc Corp.
Annual Report
NAPOLEON • HOLGATE • MALINTA
LIBERTY CENTER • BOWLING GREEN

2015 Annual Report - Henry County Bank

Transcription

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