Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Mar. 03, 2014 | Jun. 28, 2013 |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Entity Registrant Name | 'NORWOOD FINANCIAL CORP | ' | ' |
Entity Central Index Key | '0001013272 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 3,644,090 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $99.40 |
Entity Voluntary Filers | 'No | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and due from banks | $7,528 | $10,867 |
Interest bearing deposits with banks | 335 | 1,428 |
Cash and cash equivalents | 7,863 | 12,295 |
Securities available for sale | 158,132 | 145,390 |
Securities held to maturity, fair value 2013: $177, 2012: $177 | 174 | 173 |
Loans receivable (net of allowance for loan losses 2013: $5,708; 2012: $5,502) | 497,389 | 471,208 |
Regulatory stock, at cost | 2,877 | 2,630 |
Premises and equipment, net | 7,125 | 7,326 |
Bank owned life insurance | 17,790 | 15,357 |
Accrued interest receivable | 2,422 | 2,393 |
Foreclosed real estate owned | 1,009 | 852 |
Goodwill | 9,715 | 9,715 |
Other intangibles | 510 | 647 |
Deferred tax asset | 4,819 | 2,179 |
Other assets | 1,409 | 2,134 |
Total Assets | 711,234 | 672,299 |
LIABILITIES | ' | ' |
Deposits: Non-interest bearing demand | 92,684 | 82,075 |
Deposits: Interest-bearing | 45,444 | 45,616 |
Deposits: Money market deposit accounts | 122,423 | 116,841 |
Deposits: Savings | 69,202 | 68,633 |
Deposits: Time | 211,429 | 211,260 |
Total deposits | 541,182 | 524,425 |
Short-term borrowings | 49,914 | 28,697 |
Other borrowings | 23,761 | 22,487 |
Accrued interest payable | 1,022 | 1,242 |
Other liabilities | 3,491 | 3,027 |
Total Liabilities | 619,370 | 579,878 |
STOCKHOLDERS' EQUITY | ' | ' |
Common stock, $.10 par value per share, authorized 10,000,000; shares issued 2013: 3,708,718 shares, 2012: 3,371,849 shares | 371 | 337 |
Surplus | 35,010 | 24,737 |
Retained earnings | 60,798 | 66,742 |
Treasury stock at cost: 2013: 64,628 shares, 2012: 75,426 shares | -1,713 | -2,192 |
Accumulated other comprehensive income | -2,602 | 2,797 |
Total Stockholders' Equity | 91,864 | 92,421 |
Total Liabilities and Stockholders' Equity | $711,234 | $672,299 |
Consolidated_Balance_Sheets_pa
Consolidated Balance Sheets (parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Consolidated Balance Sheets [Abstract] | ' | ' |
Held-to-maturity Securities, Fair Value | $177 | $177 |
Financing Receivable, Allowance for Credit Losses | $5,708 | $5,502 |
Common Stock, Par or Stated Value Per Share | $0.10 | $0.10 |
Common Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Common Stock, Shares, Issued | 3,708,718 | 3,371,849 |
Treasury Stock, Shares | 64,628 | 75,426 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
INTEREST INCOME | ' | ' | ' |
Loans receivable, including fees | $24,576 | $25,494 | $23,289 |
Securities: Taxable | 1,662 | 1,950 | 2,527 |
Securities: Tax exempt | 1,995 | 1,938 | 1,901 |
Other | 26 | 32 | 53 |
Total interest income | 28,259 | 29,414 | 27,770 |
INTEREST EXPENSE | ' | ' | ' |
Deposits | 2,848 | 3,660 | 3,851 |
Short-term borrowings | 66 | 53 | 92 |
Other borrowings | 684 | 937 | 1,239 |
Total Interest Expense | 3,598 | 4,650 | 5,182 |
Net Interest Income | 24,661 | 24,764 | 22,588 |
PROVISION FOR LOAN LOSSES | 2,400 | 2,450 | 1,575 |
Net Interest Income after Provision for Loan Losses | 22,261 | 22,314 | 21,013 |
OTHER INCOME | ' | ' | ' |
Service charges and fees | 2,412 | 2,237 | 2,255 |
Income from fiduciary activities | 379 | 355 | 409 |
Net realized gains on sales of securities | 881 | 1,419 | 973 |
Net gain on sale of loans and servicing rights | 112 | 211 | 271 |
Earnings and proceeds on life insurance policies | 1,386 | 539 | 463 |
Other | 445 | 445 | 364 |
Total Other Income | 5,615 | 5,206 | 4,735 |
OTHER EXPENSES | ' | ' | ' |
Salaries and employee benefits | 8,447 | 8,403 | 7,848 |
Occupancy | 1,598 | 1,539 | 1,402 |
Furniture and equipment | 538 | 456 | 435 |
Data processing related operations | 891 | 897 | 855 |
Federal Deposit Insurance Corporation insurance assessment | 444 | 398 | 393 |
Advertising | 208 | 222 | 205 |
Professional fees | 626 | 811 | 1,283 |
Postage and telephone | 435 | 424 | 510 |
Taxes, other than income | 710 | 599 | 535 |
Foreclosed real estate | 567 | 217 | 578 |
Amortization of intangible assets | 137 | 153 | 108 |
Other | 2,104 | 1,962 | 1,661 |
Total other expenses | 16,705 | 16,081 | 15,813 |
Income before Income Taxes | 11,171 | 11,439 | 9,935 |
INCOME TAX EXPENSE | 2,706 | 3,036 | 2,579 |
Net Income | $8,465 | $8,403 | $7,356 |
EARNINGS PER SHARE | ' | ' | ' |
BASIC EARNINGS PER SHARE | $2.33 | $2.33 | $2.17 |
DILUTED EARNINGS PER SHARE | $2.33 | $2.33 | $2.17 |
Consolidated_Statement_of_Comp
Consolidated Statement of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Consolidated Statement of Comprehensive Income [Abstract] | ' | ' | ' |
NET INCOME | $8,465 | $8,403 | $7,356 |
Other comprehensive (loss) income: | ' | ' | ' |
Investment securities available for sale: Unrealized holding gains (losses) | -7,299 | 628 | 4,276 |
Investment securities available for sale: Tax effect | 2,481 | -209 | -1,456 |
Reclassification of gains recognized in net income | -881 | -1,419 | -973 |
Reclassification of gains recognized in net income: Tax effect | 300 | 482 | 331 |
Other comprehensive (loss) income | -5,399 | -518 | 2,178 |
COMPREHENSIVE INCOME | $3,066 | $7,885 | $9,534 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Equity (USD $) | Common Stock [Member] | Surplus [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income [Member] | Total |
In Thousands, except Share data | ||||||
Balance, at Dec. 31, 2010 | $284 | $9,826 | $58,648 | ($2,197) | $1,137 | $67,698 |
Shares, Issued, Beginning Balance at Dec. 31, 2010 | 2,840,872 | ' | ' | 72,068 | ' | ' |
Net Income | ' | ' | 7,356 | ' | ' | 7,356 |
Other comprehensive income (loss) | ' | ' | ' | ' | 2,178 | 2,178 |
Cash dividends declared per share | ' | ' | -3,696 | ' | ' | -3,696 |
Acquisition of treasury stock | ' | ' | ' | -602 | ' | -602 |
Acquisition of treasury stock, shares | ' | ' | ' | 23,431 | ' | ' |
Stock options exercised | ' | -26 | ' | 77 | ' | 51 |
Stock options exercised, shares | ' | ' | ' | -2,576 | ' | -2,833 |
Tax benefit on stock options exercised | ' | 5 | ' | ' | ' | 5 |
Sale of treasury stock for ESOP | ' | -10 | ' | 163 | ' | 153 |
Sale of treasury stock for ESOP, shares | ' | ' | ' | -5,553 | ' | ' |
Compensation expense related to stock options | ' | 170 | ' | ' | ' | 170 |
North Penn acquisition | 53 | 14,695 | ' | ' | ' | 14,748 |
North Penn exchange adjustment, shares | 530,994 | ' | ' | ' | ' | ' |
Balance, at Dec. 31, 2011 | 337 | 24,660 | 62,308 | -2,559 | 3,315 | 88,061 |
Shares, Issued, Ending Balance at Dec. 31, 2011 | 3,371,866 | ' | ' | 87,370 | ' | ' |
Net Income | ' | ' | 8,403 | ' | ' | 8,403 |
Other comprehensive income (loss) | ' | ' | ' | ' | -518 | -518 |
Cash dividends declared per share | ' | ' | -3,969 | ' | ' | -3,969 |
Acquisition of treasury stock | ' | ' | ' | -320 | ' | -320 |
Acquisition of treasury stock, shares | ' | ' | ' | 11,647 | ' | ' |
Stock options exercised | ' | -86 | ' | 541 | ' | 455 |
Stock options exercised, shares | ' | ' | ' | -18,577 | ' | -20,435 |
Tax benefit on stock options exercised | ' | 30 | ' | ' | ' | 30 |
Sale of treasury stock for ESOP | ' | 3 | ' | 146 | ' | 149 |
Sale of treasury stock for ESOP, shares | ' | ' | ' | -5,014 | ' | ' |
Compensation expense related to stock options | ' | 130 | ' | ' | ' | 130 |
North Penn exchange adjustment, shares | -17 | ' | ' | ' | ' | ' |
Balance, at Dec. 31, 2012 | 337 | 24,737 | 66,742 | -2,192 | 2,797 | 92,421 |
Shares, Issued, Ending Balance at Dec. 31, 2012 | 3,371,849 | ' | ' | 75,426 | ' | ' |
Net Income | ' | ' | 8,465 | ' | ' | 8,465 |
Other comprehensive income (loss) | ' | ' | ' | ' | -5,399 | -5,399 |
Cash dividends declared per share | ' | ' | -4,216 | ' | ' | -4,216 |
Acquisition of treasury stock | ' | ' | ' | -319 | ' | -319 |
Acquisition of treasury stock, shares | ' | ' | ' | 10,712 | ' | ' |
Stock options exercised | ' | -79 | ' | 654 | ' | 575 |
Stock options exercised, shares | ' | ' | ' | -24,127 | ' | -24,127 |
Tax benefit on stock options exercised | ' | 39 | ' | ' | ' | 39 |
Sale of treasury stock for ESOP | ' | 2 | ' | 144 | ' | 146 |
Sale of treasury stock for ESOP, shares | ' | ' | ' | -5,426 | ' | ' |
Compensation expense related to stock options | ' | 162 | ' | ' | ' | 162 |
North Penn exchange adjustment, shares | 336,869 | ' | ' | ' | ' | ' |
10% stock dividend | 34 | 10,149 | -10,193 | ' | ' | -10 |
10% stock dividend, shares | ' | ' | ' | 8,043 | ' | ' |
Balance, at Dec. 31, 2013 | $371 | $35,010 | $60,798 | ($1,713) | ($2,602) | $91,864 |
Shares, Issued, Ending Balance at Dec. 31, 2013 | 3,708,718 | ' | ' | 64,628 | ' | ' |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Stockholders' Equity (parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Consolidated Statements of Changes in Stockholders' Equity [Abstract] | ' | ' | ' |
Common Stock, Dividends, Per Share, Declared | $1.16 | $1.10 | $1.06 |
Common Stock, Dividend Rate, Percentage | 10.00% | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' | ' |
Net Income | $8,465 | $8,403 | $7,356 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Provision for loan losses | 2,400 | 2,450 | 1,575 |
Depreciation | 594 | 570 | 531 |
Amortization of intangible assets | 137 | 153 | 108 |
Deferred income taxes | 140 | 424 | -104 |
Net amortization of securities premiums and discounts | 1,057 | 1,210 | 811 |
Net realized gains on sales of securities | -881 | -1,419 | -973 |
Net increase in value of life insurance | -617 | -539 | -463 |
Loss (gain) on sale of bank premises and equipment and foreclosed real estate | 347 | -5 | 173 |
Net gain on sale of mortgage loans and servicing rights | -112 | -211 | -271 |
Mortgage loans originated for sale | -3,986 | -6,964 | -8,677 |
Proceeds from sale of mortgage loans originated for sale | 4,053 | 7,175 | 8,948 |
Compensation expense related to stock options | 162 | 130 | 170 |
Decrease in accrued interest receivable and other assets | 759 | 1,274 | 2,272 |
Increase (decrease) in accrued interest payable and other liabilities | 173 | -1,290 | -663 |
Net Cash Provided by Operating Activities | 12,691 | 11,361 | 10,793 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' | ' |
Securities available for sale: Proceeds from sales | 42,348 | 40,914 | 32,146 |
Securities available for sale: Proceeds from maturities and principal reductions on mortgage-backed securities | 21,142 | 30,607 | 34,752 |
Securities available for sale: Purchases | -84,589 | -67,312 | -54,107 |
Purchase of FHLB Stock | -741 | ' | ' |
Redemption of FHLB Stock | 494 | 1,045 | 716 |
Net decrease (increase) in loans | -29,515 | -22,507 | 12,405 |
Proceeds from life insurance | 1,089 | ' | ' |
Acquisition, net of cash acquired | ' | ' | -4,544 |
Purchase of life insurance policy | -3,000 | -3,000 | ' |
Purchase of bank premises and equipment | -393 | -417 | -175 |
Proceeds from sale of bank premises and equipment and foreclosed real estate | 508 | 3,421 | 784 |
Net Cash (Used In) Provided by Investing Activities | -52,657 | -17,249 | 31,065 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' | ' |
Net increase (decrease) in deposits | 16,757 | -1,342 | -3,532 |
Net increase (decrease) in short-term borrowings | 21,217 | 6,903 | -11,515 |
Repayments of other borrowings | -5,726 | -5,183 | -18,106 |
Proceeds from other borrowings | 7,000 | 0 | ' |
Stock options exercised | 575 | 455 | 51 |
Tax benefit of stock options exercised | 39 | 30 | 5 |
ESOP purchase of shares from treasury stock | 146 | 149 | 153 |
Purchase of treasury stock | -319 | -320 | -602 |
Cash dividends paid | -4,155 | -3,932 | -3,514 |
Net Cash Provided by (Used in) Financing Activities | 35,534 | -3,240 | -37,060 |
Net (Decrease) Increase In Cash and Cash Equivalents | -4,432 | -9,128 | 4,798 |
CASH AND CASH EQUIVALENTS, BEGINNING | 12,295 | 21,423 | 16,625 |
CASH AND CASH EQUIVALENTS, ENDING | 7,863 | 12,295 | 21,423 |
Supplemental Disclosure of Cash Flow Information | ' | ' | ' |
Cash payments for: Interest on deposits and borrowings | 3,818 | 4,728 | 5,398 |
Cash payments for: Income taxes paid, net of refunds | 2,417 | 2,010 | 2,363 |
Supplemental Schedule of Noncash Investing Activities | ' | ' | ' |
Investment purchases | ' | ' | 1,067 |
Transfers of loans to foreclosed real estate and repossession of other assets | 1,012 | 1,358 | 3,172 |
Merger with North Penn Bancorp, Inc. | ' | ' | ' |
Noncash assets acquired: Securities available for sale | ' | ' | 12,671 |
Noncash assets acquired: Restricted investments | ' | ' | 985 |
Noncash assets acquired: Loans | ' | ' | 118,336 |
Noncash assets acquired: Accrued interest receivable | ' | ' | 566 |
Noncash assets acquired: Premises and equipment | ' | ' | 2,931 |
Noncash assets acquired: Core deposit intangibles | ' | ' | 895 |
Noncash assets acquired: Deferred tax assets | ' | ' | 2,715 |
Noncash assets acquired: Other assets | ' | ' | 5,403 |
Noncash assets acquired: Goodwill | ' | ' | 9,715 |
Total Noncash assets acquired | ' | ' | 154,217 |
Liabilities assumed: | ' | ' | ' |
Time deposits | ' | ' | 51,936 |
Deposits other than time deposits | ' | ' | 83,498 |
Borrowings | ' | ' | 7,776 |
Accrued interest payable | ' | ' | 203 |
Other liabilities | ' | ' | 600 |
Total Liabilities assumed | ' | ' | 144,013 |
Net Noncash Assets Acquired | ' | ' | 10,204 |
Cash Acquired | ' | ' | $15,192 |
Nature_of_Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2013 | |
Nature of Operations [Abstract] | ' |
NATURE OF OPERATIONS | ' |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
NOTE 1 - NATURE OF OPERATIONS | |
Norwood Financial Corp (Company) is a one bank holding company. Wayne Bank (Bank) is a | |
wholly-owned subsidiary of the Company. The Bank is a state-chartered bank located in Honesdale, Pennsylvania. The Company derives substantially all of its income from the bank related services which include interest earnings on commercial mortgages, residential real estate mortgages, commercial and consumer loans, as well as interest earnings on investment securities and fees from deposit services to its customers. The Company is subject to regulation and supervision by the Federal Reserve Board while the Bank is subject to regulation and supervision by the Federal Deposit Insurance Corporation and the Pennsylvania Department of Banking and Securities. | |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Summary of Significant Accounting Policies [Abstract] | ' | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | |||
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Principles of Consolidation | ||||
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, the Bank, and the Bank’s wholly-owned subsidiaries, WCB Realty Corp., Norwood Investment Corp., Norwood Settlement Services, LLC and WTRO Properties. All significant intercompany accounts and transactions have been eliminated in consolidation. | ||||
Estimates | ||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuation of deferred tax assets, the determination of other-than-temporary impairment on securities, the determination of goodwill impairment and the fair value of financial instruments. | ||||
Significant Group Concentrations of Credit Risk | ||||
Most of the Company’s activities are with customers located within northeastern Pennsylvania. Note 3 discusses the types of securities that the Company invests in. Note 4 discusses the types of lending that the Company engages in. The Company does not have any significant concentrations to any one industry or customer. | ||||
Concentrations of Credit Risk | ||||
The Bank operates primarily in Wayne, Pike, Lackawanna and Monroe Counties, Pennsylvania and, accordingly, has extended credit primarily to commercial entities and individuals in this area whose ability to honor their contracts is influenced by the region’s economy. These customers are also the primary depositors of the Bank. The Bank is limited in extending credit by legal lending limits to any single borrower or group of borrowers. | ||||
Securities | ||||
Securities classified as available for sale are those securities that the Company intends to hold for an indefinite period of time but not necessarily to maturity. Any decision to sell a security classified as available for sale would be based on various factors, including significant movement in interest rates, changes in maturity mix of the Company’s assets and liabilities, liquidity needs, regulatory capital considerations and other similar factors. Securities available for sale are carried at fair value. Unrealized gains and losses are reported in other comprehensive income, net of the related deferred tax effect. Realized gains or losses, determined on the basis of the cost of the specific securities sold, are included in earnings. Premiums and discounts are recognized in interest income using a method which approximates the interest method over the term of the security. | ||||
Bonds, notes and debentures for which the Company has the positive intent and ability to hold to maturity are reported at cost, adjusted for premiums and discounts that are recognized in interest income using the interest method over the term of the security. | ||||
Management determines the appropriate classification of debt securities at the time of purchase and re-evaluates such designation as of each Consolidated Balance Sheet date. | ||||
Declines in the fair value of held to maturity and available for sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In estimating other-than-temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent of the Company to not sell the securities and it is more likely than not that it will not have to sell the securities before recovery of their cost basis. | ||||
The Company, as a member of the Federal Home Loan Bank (FHLB) system is required to maintain an investment in capital stock of its district FHLB according to a predetermined formula. This regulatory stock has no quoted market value and is carried at cost. | ||||
Management evaluates the regulatory stock for impairment. Management’s determination of whether these investments are impaired is based on their assessment of the ultimate recoverability of their cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of their cost is influenced by criteria such as (1) the significance of the decline in net assets of the FHLB as compared to the capital stock amount for the FHLB and the length of time this situation has persisted, (2) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB, and (3) the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the FHLB. Management considered that the FHLB’s regulatory capital ratios have increased from the prior year, liquidity appears adequate, and the new shares of FHLB stock continue to change hands at the $100 par value. Management believes no impairment charge is necessary related to FHLB stock as of December 31, 2013. | ||||
Loans Receivable | ||||
Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at their outstanding unpaid principal balances, net of an allowance for loan losses and any deferred fees. Interest income is accrued on the unpaid principal balance. Loan origination fees are deferred and recognized as an adjustment of the yield (interest income) of the related loans. The Company is generally amortizing these amounts over the contractual life of the loan. | ||||
The accrual of interest is generally discontinued when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about further collectability of principal or interest, even though the loan is currently performing. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. When a loan is placed on nonaccrual status, unpaid interest credited to income in the current year is reversed and unpaid interest accrued in prior years is charged against the allowance for loan losses. Interest received on nonaccrual loans generally is either applied against principal or reported as interest income, according to management’s judgment as to the collectability of principal. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time and the ultimate collectability of the total contractual principal and interest is no longer in doubt. | ||||
Troubled Debt Restructurings | ||||
A loan is considered to be a troubled debt restructuring (TDR) loan when the Company grants a concession to the borrower because of the borrower’s financial condition that it would not otherwise consider. Such concessions include the reduction of interest rates, forgiveness of principal or interest, or other modifications of interest rates that are less than the current market rate for new obligations with similar risk. | ||||
Loans Acquired | ||||
Loans acquired including loans that have evidence of deterioration of credit quality since origination and for which it is probable, at acquisition, that the Company will be unable to collect all contractually required payments receivable, are initially recorded at fair value (as determined by the present value of expected future cash flows) with no valuation allowance. Loans are evaluated individually to determine if there is evidence of deterioration of credit quality since origination. The difference between the undiscounted cash flows expected at acquisition and the investment in the loan, or the “accretable yield,” is recognized as interest income on a level-yield method over the life of the loan. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at acquisition, or the “non-accretable difference,” are not recognized as a yield adjustment or as a loss accrual or a valuation allowance. Increases in expected cash flows subsequent to the initial investment are recognized prospectively through adjustment of the yield on the loan over its remaining estimated life. Decreases in expected cash flows are recognized immediately as impairment. Any valuation allowances on these impaired loans reflect only losses incurred after the acquisition. | ||||
For purchased loans acquired that are not deemed impaired at acquisition, credit discounts representing the principal losses expected over the life of the loan are a component of the initial fair value. Loans may be aggregated and accounted for as a pool of loans if the loans being aggregated have common risk characteristics. Subsequent to the purchase date, the methods utilized to estimate the required allowance for credit losses for these loans is similar to originated loans; however, the Company records a provision for loan losses only when the required allowance exceeds any remaining credit discounts. The remaining differences between the purchase price and the unpaid principal balance at the date of acquisition are recorded in interest income over the life of the loans. | ||||
Mortgage Servicing Rights | ||||
Servicing assets are recognized as separate assets when rights are acquired through purchase or through the sale of financial assets. Capitalized servicing rights are reported in other assets and are amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Servicing assets are evaluated for impairment based upon a third party appraisal. Fair value is determined using prices for similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. Impairment is recognized through a valuation allowance to the extent that fair value is less than the capitalized amount. The Company’s loan servicing assets at December 31, 2013 and 2012, were not impaired. Total servicing assets included in other assets as of December 31, 2013 and 2012, were $289,000 and $243,000, respectively. | ||||
Allowance for Loan Losses | ||||
The allowance for loan losses is established through provisions for loan losses charged against income. Loans deemed to be uncollectible are charged against the allowance for loan losses, and subsequent recoveries, if any, are credited to the allowance. | ||||
The allowance for loan losses is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management’s periodic evaluation of the adequacy of the allowance is based on the Company’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available. | ||||
The allowance consists of specific, general and unallocated components. The specific component relates to loans that are classified as either doubtful, substandard or special mention. For such loans that are also classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers non-classified loans and is based on historical loss experience adjusted for qualitative factors. An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. | ||||
A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and construction loans by either the present value of expected future cash flows 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. | ||||
Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer and residential real estate loans for impairment disclosures, unless such loans are the subject of a restructuring agreement. | ||||
Premises and Equipment | ||||
Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation expense is calculated principally on the straight-line method over the respective assets estimated useful lives as follows: | ||||
Years | ||||
Buildings and improvements | Oct-40 | |||
Furniture and equipment | 10-Mar | |||
Transfers of Financial Assets | ||||
Transfers of financial assets, including loan and loan participation sales, are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. | ||||
Foreclosed Real Estate | ||||
Real estate properties acquired through, or in lieu of, loan foreclosure are to be sold and are initially recorded at fair value less cost to sell at the date of foreclosure establishing a new cost basis. After foreclosure, valuations are periodically performed by management and the real estate is carried at the lower of its carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in other expenses. | ||||
Bank Owned Life Insurance | ||||
The Company invests in bank owned life insurance (BOLI) as a source of funding for employee benefit expenses. BOLI involves the purchasing of life insurance by the Bank on a chosen group of employees. The Company is the owner and beneficiary of the policies. This life insurance investment is carried at the cash surrender value of the underlying policies. Income from the increase in cash surrender value of the policies or from death benefits realized is included in other income on the Consolidated Statements of Income. | ||||
Goodwill | ||||
In connection with the acquisition of North Penn Bancorp, Inc. (North Penn), we recorded goodwill in the amount of $9.7 million, representing the excess of amounts paid over the fair value of net assets of the institutions acquired in purchase transactions, at its fair value at the date of acquisition. Goodwill is tested and deemed impaired when the carrying value of goodwill exceeds its implied fair value. The value of the goodwill can change in the future. We expect the value of the goodwill to decrease if there is a significant decrease in the franchise value of the Bank. If an impairment loss is determined in the future, we will reflect the loss as an expense for the period in which the impairrment is determined, leading to a reduction of our net income for that period by the amount of the impairment loss. No impairrment was recognized for the years ended December 31, 2013, 2012 and 2011. | ||||
Intangible Assets | ||||
At December 31, 2013, the Company had intangible assets of $510,000 as a result of the acquisition of North Penn which is net of accumulated amortization of $385,000. These intangible assets will continue to be amortized using the sum-of-the-years digits method of amortization over ten years. At December 31, 2012, the Company had intangible assets of $647,000 which is net of accumulated amortization of $248,000. Amortization expense related to intangible assets was $137,000, $153,000 and $108,000 for the years ended December 31, 2013, 2012 and 2011. | ||||
As of December 31, 2013, the estimated future amortization expense for the core deposit intangible was: | ||||
2014 | $ | 121,000 | ||
2015 | 104,000 | |||
2016 | 88,000 | |||
2017 | 72,000 | |||
2018 | 56,000 | |||
2019 | 39,000 | |||
2020 | 23,000 | |||
2021 | 7,000 | |||
$ | 510,000 | |||
Income Taxes | ||||
Deferred income tax assets and liabilities are determined based on the differences between financial statement carrying amounts and the tax basis of existing assets and liabilities. These differences are measured at the enacted tax rates that will be in effect when these differences reverse. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of the deferred tax assets will not be realized. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. The Company and its subsidiary file a consolidated federal income tax return. The Company recognizes interest and penalties on income taxes as a component of income tax expense. | ||||
The Company analyzes each tax position taken in its tax returns and determines the likelihood that the position will be realized. Only tax positions that are “more-likely-than-not” to be realized can be recognized in an entity’s financial statements. For tax positions that do not meet this recognition threshold, an entity will record an unrecognized tax benefit for the difference between the position taken on the tax return and the amount recognized in the financial statements. The Company does not have any unrecognized tax benefits at December 31, 2013 or 2012 or during the years then ended. No unrecognized tax benefits are expected to arise within the next twelve months. | ||||
Advertising Costs | ||||
Advertising costs are expensed as incurred. | ||||
Earnings per Share | ||||
Basic earnings per share represents income available to common stockholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate solely to outstanding stock options and are determined using the treasury stock method. Treasury shares are not deemed outstanding for earnings per share calculations. | ||||
Stock Option Plans | ||||
The Company recognizes the value of share-based payment transactions as compensation costs in the financial statements over the period that an employee provides service in exchange for the award. The fair value of the share-based payments is estimated using the Black-Scholes option-pricing model. The Company used the modified-prospective transition method to record compensation expense. Under the modified prospective method, companies are required to record compensation cost for new and modified awards over the related vesting period of such awards and record compensation cost prospectively for the unvested portion, at the date of adoption, of previously issued and outstanding awards over the remaining vesting period of such awards. No change to prior periods presented is permitted under the modified prospective method. | ||||
Cash Flow Information | ||||
For the purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, interest-bearing deposits with banks and federal funds sold. | ||||
Off-Balance Sheet Financial Instruments | ||||
In the ordinary course of business, the Company has entered into off-balance sheet financial instruments consisting of commitments to extend credit, letters of credit and commitments to sell loans. Such financial instruments are recorded in the balance sheets when they become receivable or payable. | ||||
Trust Assets | ||||
Assets held by the Company in a fiduciary capacity for customers are not included in the financial statements since such items are not assets of the Company. Trust income is reported on the accrual method. | ||||
Treasury Stock | ||||
Common shares repurchased are recorded as treasury stock at cost. | ||||
Comprehensive Income | ||||
Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities, are reported as a separate component of the equity section of the balance sheet. Such items, along with net income, are components of comprehensive income as presented in the Consolidated Statement of Comprehensive Income. | ||||
Segment Reporting | ||||
The Company acts as an independent community financial service provider and offers traditional banking related financial services to individual, business and government customers. Through its branch and automated teller machine network, the Company offers a full array of commercial and retail financial services, including the taking of time, savings and demand deposits; the making of commercial, consumer and mortgage loans; and the providing of safe deposit services. The Company also performs personal, corporate, pension and fiduciary services through its Trust Department. | ||||
Management does not separately allocate expenses, including the cost of funding loan demand, between the commercial, retail, mortgage banking and trust operations of the Company. As such, discrete information is not available and segment reporting would not be meaningful. | ||||
New Accounting Standards | ||||
In February 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (“ASU”) 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The standard requires that companies present either in a single note or parenthetically on the face of the financial statements, the effect of significant amounts reclassified from each component of accumulated other comprehensive income based on its source and the income statement line items affected by the reclassification. The new requirements will take effect for public companies in fiscal years, and interim periods within those years, beginning after December 15, 2012. The Company adopted this standard on January 1, 2013. The effect of adopting this standard increased our disclosure surrounding reclassification items out of accumulated other comprehensive income. | ||||
In February 2013, the FASB issued ASU 2013-04, Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date. The ASU requires the measurement of obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement with its co-obligors as well as any additional amount that the entity expects to pay on behalf of its co-obligors. The new standard is effective retrospectively for fiscal years and interim periods within those years, beginning after December 15, 2013, and early adoption is permitted. This ASU is not expected to have a significant impact on the Company’s financial statements. | ||||
In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This Update applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. The amendments in this Update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. This ASU is not expected to have a significant impact on the Company’s financial statements. | ||||
In January 2014, FASB issued ASU 2014-01, Investments – Equity Method and Join Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects. The amendments in this Update permit reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). The amendments in this Update should be applied retrospectively to all periods presented. A reporting entity that uses the effective yield method to account for its investments in qualified affordable housing projects before the date of adoption may continue to apply the effective yield method for those preexisting investments. The amendments in this Update are effective for public business entities for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. This ASU is not expected to have a significant impact on the Company’s financial statements. | ||||
In January 2014, the FASB issued ASU 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The amendments in this Update clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this Update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. An entity can elect to adopt the amendments in this Update using either a modified retrospective transition method or a prospective transition method. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. | ||||
Securities
Securities | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Securities [Abstract] | ' | |||||||||||||||||
SECURITIES | ' | |||||||||||||||||
NOTE 3 - SECURITIES | ||||||||||||||||||
The amortized cost and fair value of securities were as follows: | ||||||||||||||||||
31-Dec-13 | ||||||||||||||||||
Gross | Gross | |||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||
Cost | Gains | Losses | Value | |||||||||||||||
(In Thousands) | ||||||||||||||||||
AVAILABLE FOR SALE: | ||||||||||||||||||
U.S. Government agencies | $ | 34,471 | $ | - | $ | -1,058 | $ | 33,413 | ||||||||||
States and political subdivisions | 60,174 | 650 | -1,794 | 59,030 | ||||||||||||||
Corporate obligations | 3,667 | 84 | -40 | 3,711 | ||||||||||||||
Mortgage-backed securities- | ||||||||||||||||||
government sponsored entities | 63,467 | 81 | -1,898 | 61,650 | ||||||||||||||
Equity securities-financial services | 293 | 50 | -15 | 328 | ||||||||||||||
$ | 162,072 | $ | 865 | $ | -4,805 | $ | 158,132 | |||||||||||
HELD TO MATURITY: | ||||||||||||||||||
States and political subdivisions | $ | 174 | $ | 3 | $ | - | $ | 177 | ||||||||||
31-Dec-12 | ||||||||||||||||||
Gross | Gross | |||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||
Cost | Gains | Losses | Value | |||||||||||||||
(In Thousands) | ||||||||||||||||||
Available for Sale: | ||||||||||||||||||
U.S. Government agencies | $ | 13,076 | $ | 36 | $ | -20 | $ | 13,092 | ||||||||||
States and political subdivisions | 55,864 | 2,995 | -73 | 58,786 | ||||||||||||||
Corporate obligations | 8,521 | 347 | - | 8,868 | ||||||||||||||
Mortgage-backed securities-government | ||||||||||||||||||
sponsored entities | 63,397 | 1,041 | -113 | 64,325 | ||||||||||||||
Equity securities-financial services | 292 | 27 | - | 319 | ||||||||||||||
$ | 141,150 | $ | 4,446 | $ | -206 | $ | 145,390 | |||||||||||
Held to Maturity: | ||||||||||||||||||
States and political subdivisions | $ | 173 | $ | 4 | $ | - | $ | 177 | ||||||||||
The following tables show the Company’s investments’ gross unrealized losses and fair value aggregated by length of time that individual securities have been in a continuous unrealized loss position (in thousands): | ||||||||||||||||||
31-Dec-13 | ||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||
U.S. Government agencies | $ | 32,481 | $ | -990 | $ | 932 | $ | -68 | $ | 33,413 | $ | -1,058 | ||||||
States and political subdivisions | 26,281 | -1,415 | 4,228 | -379 | 30,509 | -1,794 | ||||||||||||
Corporate obligations | 1,145 | -40 | - | - | 1,145 | -40 | ||||||||||||
Mortgage-backed securities-government sponsored entities | 47,014 | -1,524 | 7,478 | -374 | 54,492 | -1,898 | ||||||||||||
Equity securities-financial services | 170 | -15 | - | - | 170 | -15 | ||||||||||||
$ | 107,091 | $ | -3,984 | $ | 12,638 | $ | -821 | $ | 119,729 | $ | -4,805 | |||||||
31-Dec-12 | ||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||
U.S. Government agencies | $ | 7,056 | $ | -20 | $ | - | $ | - | $ | 7,056 | $ | -20 | ||||||
States and political subdivisions | 5,821 | -73 | - | - | 5,821 | -73 | ||||||||||||
Mortgage-backed securities-government sponsored entities | 17,199 | -113 | - | - | 17,199 | -113 | ||||||||||||
$ | 30,076 | $ | -206 | $ | - | $ | - | $ | 30,076 | $ | -206 | |||||||
The Company has 123 debt securities and one equity security in the less than twelve month category and 17 debt securities in the twelve months or more category as of December 31, 2013. In management’s opinion, the unrealized losses on securities reflect changes in interest rates subsequent to the acquisition of specific securities. No other-than-temporary-impairment charges were recorded in 2013. Management believes that all other unrealized losses represent temporary impairment of the securities, and it is more likely than not that it will not have to sell the securities before recovery of their cost basis. | ||||||||||||||||||
The amortized cost and fair value of securities as of December 31, 2013 by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without call or prepayment penalties. | ||||||||||||||||||
Available for Sale | Held to Maturity | |||||||||||||||||
Amortized | Fair | Amortized | Fair | |||||||||||||||
Cost | Value | Cost | Value | |||||||||||||||
(In Thousands) | ||||||||||||||||||
Due in one year or less | $ | 799 | $ | 803 | $ | 174 | $ | 177 | ||||||||||
Due after one year through five years | 15,837 | 15,646 | — | — | ||||||||||||||
Due after five years through ten years | 38,543 | 37,740 | — | — | ||||||||||||||
Due after ten years | 43,133 | 41,965 | — | — | ||||||||||||||
98,312 | 96,154 | 174 | 177 | |||||||||||||||
Mortgage-backed securities - government sponsored entities | 63,467 | 61,650 | — | — | ||||||||||||||
$ | 161,779 | $ | 157,804 | $ | 174 | $ | 177 | |||||||||||
Gross realized gains and gross realized losses on sales of securities available for sale were $908,000 and $27,000, respectively, in 2013, compared to $1,419,000 and $0, respectively, in 2012, and $983,000 and $10,000, respectively, in 2011. The proceeds from the sales of securities totaled $42,348,000, $40,914,000 and $32,146,000 for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||||||||
Securities with a carrying value of $94,352,000 and $71,497,000 at December 31, 2013 and 2012, respectively, were pledged to secure public deposits, securities sold under agreements to repurchase and for other purposes as required or permitted by law. | ||||||||||||||||||
Loans_Receivable_and_Allowance
Loans Receivable and Allowance for Loan Losses | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Loans Receivable and Allowance for Loan Losses [Abstract] | ' | ||||||||||||||||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ' | ||||||||||||||||||||
NOTE 4 - LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||||||||||||||||||
Set forth below is selected data relating to the composition of the loan portfolio at December 31: | |||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||
Real Estate-Residential | $ | 158,842 | 31.6 | % | $ | 150,043 | 31.4 | % | |||||||||||||
Commercial | 273,144 | 54.2 | 274,484 | 57.5 | |||||||||||||||||
Construction | 20,551 | 4.1 | 13,435 | 2.8 | |||||||||||||||||
Commercial, financial and agricultural | 35,745 | 7.1 | 25,113 | 5.3 | |||||||||||||||||
Consumer loans to individuals | 15,295 | 3.0 | 14,154 | 3.0 | |||||||||||||||||
Total loans | 503,577 | 100.0 | % | 477,229 | 100.0 | % | |||||||||||||||
Deferred fees, net | -480 | -519 | |||||||||||||||||||
Total loans receivable | 503,097 | 476,710 | |||||||||||||||||||
Allowance for loan losses | -5,708 | -5,502 | |||||||||||||||||||
Net loans receivable | $ | 497,389 | $ | 471,208 | |||||||||||||||||
Purchased loans acquired in a business combination are recorded at fair value on their purchase date without a carryover of the related allowance for loan losses. | |||||||||||||||||||||
Upon acquisition, the Company evaluated whether each acquired loan (regardless of size) was within the scope of ASC 310-30, Receivables-Loans and Debt Securities Acquired with Deteriorated Credit Quality. Purchased credit-impaired loans are loans that have evidence of credit deterioration since origination and it is probable at the date of acquisition that the Company will not collect all contractually required principal and interest payments. There were no material increases or decreases in the expected cash flows of these loans between May 31, 2011 (the “acquisition date”) and December 31, 2013. The fair value of purchased credit-impaired loans, on the acquisition date, was determined, primarily based on the fair value of loan collateral. The carrying value of purchased loans acquired with deteriorated credit quality was $1.1 million at December 31, 2013. | |||||||||||||||||||||
On the acquisition date, the preliminary estimate of the unpaid principal balance for all loans evidencing credit impairment acquired in the North Penn acquisition was $1.9 million and the estimated fair value of the loans was $1.5 million. Total contractually required payments on these loans, including interest, at the acquisition date was $3.6 million. However, the Company's preliminary estimate of expected cash flows was $1.9 million. At such date, the Company established a credit risk related non-accretable discount (a discount representing amounts which are not expected to be collected from the customer nor liquidation of collateral) of $1.7 million relating to these impaired loans, reflected in the recorded net fair value. Such amount is reflected as a non-accretable fair value adjustment to loans. The Company further estimated the timing and amount of expected cash flows in excess of the estimated fair value and established an accretable discount of $329,000 on the acquisition date relating to these impaired loans. | |||||||||||||||||||||
The carrying value of the loans acquired and accounted for in accordance with ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality, was determined by projecting discounted contractual cash flows. The table below presents the components of the purchase accounting adjustments related to the purchased impaired loans acquired in the North Penn acquisition as of May 31, 2011: | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Unpaid principal balance | $ | 1,936 | |||||||||||||||||||
Interest | 1,669 | ||||||||||||||||||||
Contractual cash flows | 3,605 | ||||||||||||||||||||
Non-accretable discount | -1,724 | ||||||||||||||||||||
Expected cash flows | 1,881 | ||||||||||||||||||||
Accretable discount | -329 | ||||||||||||||||||||
Estimated fair value | $ | 1,552 | |||||||||||||||||||
Changes in the accretable yield for purchased credit-impaired loans were as follows for the twelve months ended December 31: | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Balance at beginning of period | $ | 76 | $ | 171 | $ | 329 | |||||||||||||||
Accretion | -56 | -95 | -67 | ||||||||||||||||||
Reclassification and other | - | - | -91 | ||||||||||||||||||
Balance at end of period | $ | 20 | $ | 76 | $ | 171 | |||||||||||||||
The following table presents additional information regarding loans acquired and accounted for in accordance with ASC 310-30 (in thousands): | |||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||
Outstanding Balance | $ | 1,110 | $ | 1,145 | |||||||||||||||||
Carrying Amount | $ | 1,090 | $ | 1,069 | |||||||||||||||||
There were not material increases or decreases in the expected cash flows of these loans between May 31, 2011 (the acquisition date) and December 31, 2013. There has been no allowance for loan losses recorded for acquired loans with specific evidence of deterioration in credit quality as of May 31, 2011. In addition, there has been no allowance for loan losses on these loans reversed. For loans that were acquired without specific evidence of deterioration in credit quality adjustments to the allowance for loan losses have been accounted for through the allowance for loan loss adequacy calculation. | |||||||||||||||||||||
The Company maintains a loan review system, which allows for a periodic review of our loan portfolio and the early identification of potential impaired loans. Said system takes into consideration, among other things, delinquency status, size of loans, type and market value of collateral and financial condition of the borrowers. Specific loan loss allowances are established for identified losses based on a review of such information. A loan evaluated for impairment is considered to be impaired when, based on current information and events, it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. All loans identified as impaired are evaluated independently. The Company does not aggregate such loans for evaluation purposes. Impairment is measured on a loan-by-loan basis for commercial and construction loans by the present value of expected future cash flows 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. | |||||||||||||||||||||
Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer and residential mortgage loans for impairment disclosures, unless such loans are part of a larger relationship that is impaired, or are classified as a troubled debt restructuring. | |||||||||||||||||||||
A loan is considered to be a troubled debt restructuring (TDR) loan when the Company grants a concession to the borrower because of the borrower’s financial condition that it would not otherwise consider. Such concessions include the reduction of interest rates, forgiveness of principal or interest, or other modifications of interest rates that are less than the current market rate for new obligations with similar risk. | |||||||||||||||||||||
The following table shows the amount of loans in each category that were individually and collectively evaluated for impairment at the dates indicated: | |||||||||||||||||||||
Real Estate Loans | |||||||||||||||||||||
Commercial | Consumer | ||||||||||||||||||||
Residential | Commercial | Construction | Loans | Loans | Total | ||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Individually evaluated for impairment | $ | - | $ | 11,519 | $ | - | $ | - | $ | - | $ | 11,519 | |||||||||
Loans acquired with deteriorated credit quality | 242 | 848 | - | - | - | 1,090 | |||||||||||||||
Collectively evaluated for impairment | 158,600 | 260,777 | 20,551 | 35,745 | 15,295 | 490,968 | |||||||||||||||
Total Loans | $ | 158,842 | $ | 273,144 | $ | 20,551 | $ | 35,745 | $ | 15,295 | $ | 503,577 | |||||||||
Real Estate Loans | |||||||||||||||||||||
Commercial | Consumer | ||||||||||||||||||||
Residential | Commercial | Construction | Loans | Loans | Total | ||||||||||||||||
(In thousands) | |||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||
Individually evaluated for impairment | $ | - | $ | 10,246 | $ | - | $ | 310 | $ | - | $ | 10,556 | |||||||||
Loans acquired with deteriorated credit quality | 270 | 799 | - | - | - | 1,069 | |||||||||||||||
Collectively evaluated for impairment | 149,773 | 263,439 | 13,435 | 24,803 | 14,154 | 465,604 | |||||||||||||||
Total Loans | $ | 150,043 | $ | 274,484 | $ | 13,435 | $ | 25,113 | $ | 14,154 | $ | 477,229 | |||||||||
The following table includes the recorded investment and unpaid principal balances for impaired loans with the associated allowance amount, if applicable. | |||||||||||||||||||||
Unpaid | |||||||||||||||||||||
Recorded | Principal | Associated | |||||||||||||||||||
Investment | Balance | Allowance | |||||||||||||||||||
31-Dec-13 | (In thousands) | ||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||
Real Estate Loans | |||||||||||||||||||||
Residential | $ | 242 | $ | 251 | $ | - | |||||||||||||||
Commercial | 10,644 | 14,400 | - | ||||||||||||||||||
Subtotal | 10,886 | 14,651 | - | ||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||
Real Estate Loans | |||||||||||||||||||||
Commercial | 1,723 | 1,723 | 53 | ||||||||||||||||||
Subtotal | 1,723 | 1,723 | 53 | ||||||||||||||||||
Total: | |||||||||||||||||||||
Real Estate Loans | |||||||||||||||||||||
Residential | 242 | 251 | - | ||||||||||||||||||
Commercial | 12,367 | 16,123 | 53 | ||||||||||||||||||
Total Impaired Loans | $ | 12,609 | $ | 16,374 | $ | 53 | |||||||||||||||
Unpaid Principal | |||||||||||||||||||||
Recorded | Principal | Associated | |||||||||||||||||||
Investment | Balance | Allowance | |||||||||||||||||||
31-Dec-12 | (in thousands) | ||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||
Real Estate Loans | |||||||||||||||||||||
Residential | $ | 270 | $ | 286 | $ | - | |||||||||||||||
Commercial | 10,494 | 10,554 | - | ||||||||||||||||||
Commercial Loans | 310 | 310 | - | ||||||||||||||||||
Subtotal | 11,074 | 11,150 | - | ||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||
Real Estate Loans | |||||||||||||||||||||
Commercial | 551 | 551 | 9 | ||||||||||||||||||
Subtotal | 551 | 551 | 9 | ||||||||||||||||||
Total: | |||||||||||||||||||||
Real Estate Loans | |||||||||||||||||||||
Residential | 270 | 286 | - | ||||||||||||||||||
Commercial | 11,045 | 11,105 | 9 | ||||||||||||||||||
Commercial Loans | 310 | 310 | - | ||||||||||||||||||
Total Impaired Loans | $ | 11,625 | $ | 11,701 | $ | 9 | |||||||||||||||
The following information for impaired loans is presented for the year ended December 31, 2013 and 2012: | |||||||||||||||||||||
Average Recorded | Interest Income | ||||||||||||||||||||
Investment | Recognized | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Total: | |||||||||||||||||||||
Real Estate Loans | |||||||||||||||||||||
Residential | $ | 252 | $ | 281 | $ | 5 | $ | 5 | |||||||||||||
Commercial | 10,328 | 12,108 | 236 | 226 | |||||||||||||||||
Commercial Loans | - | 340 | - | 2 | |||||||||||||||||
Total Loans | $ | 10,580 | $ | 12,729 | $ | 241 | $ | 233 | |||||||||||||
Troubled debt restructured loans are those loans whose terms have been renegotiated to provide a reduction or deferral of principal or interest as a result of financial difficulties experienced by the borrower, who could not obtain comparable terms from alternate financing sources. As of December 31, 2013, troubled debt restructured loans totaled $9.2 million and resulted in specific reserves of $53,000. During 2013, there were five new loans identified as troubled debt restructurings totaling $5.1 million based on extended deferrals of principal payments. During 2013, there were no loan modifications classified as troubled debt restructurings that subsequently defaulted. As of December 31, 2012, troubled debt restructured loans totaled $5.6 million and resulted in specific reserves of $9,000. During 2012, there were no new loans identified as troubled debt restructurings, nor were there any loan modifications classified as troubled debt restructurings that subsequently defaulted. | |||||||||||||||||||||
The following is a summary of troubled debt restructurings granted during the twelve month period ended December 31, 2013 (in thousands): | |||||||||||||||||||||
For the Twelve Months Ended December 31, 2013 | |||||||||||||||||||||
Number | Pre-Modification | Post-Modification | |||||||||||||||||||
Of | Outstanding Recorded | Outstanding Recorded | |||||||||||||||||||
Contracts | Investment | Investment | |||||||||||||||||||
Troubled Debt Restructurings | |||||||||||||||||||||
Real Estate Loans: | |||||||||||||||||||||
Commercial | 5 | $5,147 | $5,147 | ||||||||||||||||||
Management uses an eight point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first four categories are considered not criticized, and are aggregated as “Pass” rated. The criticized rating categories utilized by management generally follow bank regulatory definitions. The Special Mention category includes assets that are currently protected but are potentially weak, resulting in an undue and unwarranted credit risk, but not to the point of justifying a Substandard classification. Loans in the Substandard category have well-defined weaknesses that jeopardize the liquidation of the debt, and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. All loans greater than 90 days past due are considered Substandard. Any portion of a loan that has been charged off is placed in the Loss category. | |||||||||||||||||||||
To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Company has a structured loan rating process with several layers of internal and external oversight. Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as non performance, repossession, or death occurs to raise awareness of a possible credit event. The Company’s Loan Review Department is responsible for the timely and accurate risk rating of the loans on an ongoing basis. Every credit which must be approved by Loan Committee or the Board of Directors is assigned a risk rating at time of consideration. Loan Review also annually reviews relationships of $500,000 and over to assign or re-affirm risk ratings. Loans in the Substandard categories that are collectively evaluated for impairment are given separate consideration in the determination of the allowance. | |||||||||||||||||||||
The following table presents the classes of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard, Doubtful and Loss within the internal risk rating system as of December 31, 2013 and December 31, 2012 (in thousands): | |||||||||||||||||||||
Special | |||||||||||||||||||||
Pass | Mention | Substandard | Doubtful | Loss | Total | ||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Commercial real estate loans | $ | 250,566 | $ | 3,651 | $ | 18,927 | $ | - | $ | - | $ | 273,144 | |||||||||
Commercial loans | 35,745 | - | - | - | - | 35,745 | |||||||||||||||
Total | $ | 286,311 | $ | 3,651 | $ | 18,927 | $ | - | $ | - | $ | 308,889 | |||||||||
Special | |||||||||||||||||||||
Pass | Mention | Substandard | Doubtful | Loss | Total | ||||||||||||||||
31-Dec-12 | |||||||||||||||||||||
Commercial real estate loans | $ | 251,484 | $ | 11,245 | $ | 11,755 | $ | - | $ | - | $ | 274,484 | |||||||||
Commercial loans | 24,427 | 318 | 368 | - | - | 25,113 | |||||||||||||||
Total | $ | 275,911 | $ | 11,563 | $ | 12,123 | $ | - | $ | - | $ | 299,597 | |||||||||
For residential real estate loans, construction loans and consumer loans, the Company evaluates credit quality based on the performance of the individual credits. The following table presents the recorded investment in the loan classes based on payment activity as of December 31, 2013 and December 31, 2012 (in thousands): | |||||||||||||||||||||
Performing | Nonperforming | Total | |||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Residential real estate loans | $ | 157,138 | $ | 1,704 | $ | 158,842 | |||||||||||||||
Construction | 20,551 | - | 20,551 | ||||||||||||||||||
Consumer loans | 15,295 | - | 15,295 | ||||||||||||||||||
Total | $ | 192,984 | $ | 1,704 | $ | 194,688 | |||||||||||||||
Performing | Nonperforming | Total | |||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||
Residential real estate loans | $ | 147,197 | $ | 2,846 | $ | 150,043 | |||||||||||||||
Construction | 13,435 | - | 13,435 | ||||||||||||||||||
Consumer loans | 14,154 | - | 14,154 | ||||||||||||||||||
Total | $ | 174,786 | $ | 2,846 | $ | 177,632 | |||||||||||||||
Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans as of December 31, 2013 and December 31, 2012 (in thousands): | |||||||||||||||||||||
Current | 31-60 Days Past Due | 61-90 Days Past Due | Greater than 90 Days Past Due and still accruing | Non-Accrual | Total Past Due and Non-Accrual | Total Loans | |||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Real Estate loans | |||||||||||||||||||||
Residential | $ | 156,066 | $ | 1,018 | $ | 54 | $ | - | $ | 1,704 | $ | 2,776 | $ | 158,842 | |||||||
Commercial | 263,837 | 977 | 487 | - | 7,843 | 9,307 | 273,144 | ||||||||||||||
Construction | 20,551 | - | - | - | - | - | 20,551 | ||||||||||||||
Commercial loans | 35,717 | 28 | - | - | - | 28 | 35,745 | ||||||||||||||
Consumer loans | 15,228 | 57 | 10 | - | - | 67 | 15,295 | ||||||||||||||
Total | $ | 491,399 | $ | 2,080 | $ | 551 | $ | - | $ | 9,547 | $ | 12,178 | $ | 503,577 | |||||||
Current | 31-60 Days Past Due | 61-90 Days Past Due | Greater than 90 Days Past Due and still accruing | Non-Accrual | Total Past Due and Non-Accrual | Total Loans | |||||||||||||||
31-Dec-12 | |||||||||||||||||||||
Real Estate loans | |||||||||||||||||||||
Residential | $ | 146,847 | $ | 94 | $ | 256 | $ | - | $ | 2,846 | $ | 3,196 | $ | 150,043 | |||||||
Commercial | 261,527 | 2,333 | 598 | - | 10,026 | 12,957 | 274,484 | ||||||||||||||
Construction | 13,363 | 72 | - | - | - | 72 | 13,435 | ||||||||||||||
Commercial loans | 24,785 | - | - | - | 328 | 328 | 25,113 | ||||||||||||||
Consumer loans | 14,029 | 114 | 11 | - | - | 125 | 14,154 | ||||||||||||||
Total | $ | 460,551 | $ | 2,613 | $ | 865 | $ | - | $ | 13,200 | $ | 16,678 | $ | 477,229 | |||||||
The following table presents changes in the allowance for loan losses: | |||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Allowance at beginning of period | $ | 5,502 | $ | 5,458 | $ | 5,616 | |||||||||||||||
Charge-offs: | |||||||||||||||||||||
Commercial and all other | -4 | -24 | -2 | ||||||||||||||||||
Real Estate | -2,131 | -2,354 | -1,735 | ||||||||||||||||||
Consumer | -90 | -59 | -109 | ||||||||||||||||||
Total | -2,225 | -2,437 | -1,846 | ||||||||||||||||||
Recoveries: | |||||||||||||||||||||
Commercial and all other | - | - | 5 | ||||||||||||||||||
Real Estate | 9 | 7 | 51 | ||||||||||||||||||
Consumer | 22 | 24 | 57 | ||||||||||||||||||
Total | 31 | 31 | 113 | ||||||||||||||||||
Provision for loan losses | 2,400 | 2,450 | 1,575 | ||||||||||||||||||
Allowance at end of period | $ | 5,708 | $ | 5,502 | $ | 5,458 | |||||||||||||||
The following table presents the allowance for loan losses by the classes of the loan portfolio: | |||||||||||||||||||||
(In thousands) | Residential Real Estate | Commercial Real Estate | Construction | Commercial | Consumer | Total | |||||||||||||||
Beginning balance, December 31, 2012 | $ | 1,797 | $ | 3,183 | $ | 119 | $ | 223 | $ | 180 | $ | 5,502 | |||||||||
Charge Offs | -603 | -1,488 | -40 | -4 | -90 | -2,225 | |||||||||||||||
Recoveries | 9 | - | - | - | 22 | 31 | |||||||||||||||
Provision for loan losses | 238 | 1,330 | 819 | -35 | 48 | 2,400 | |||||||||||||||
Ending balance, December 31, 2013 | $ | 1,441 | $ | 3,025 | $ | 898 | $ | 184 | $ | 160 | $ | 5,708 | |||||||||
Ending balance individually evaluated | $ | - | $ | 53 | $ | - | $ | - | $ | - | $ | 53 | |||||||||
for impairment | |||||||||||||||||||||
Ending balance collectively evaluated | $ | 1,441 | $ | 2,972 | $ | 898 | $ | 184 | $ | 160 | $ | 5,655 | |||||||||
for impairment | |||||||||||||||||||||
(In thousands) | Residential Real Estate | Commercial Real Estate | Construction | Commercial | Consumer | Total | |||||||||||||||
Beginning balance, December 31, 2011 | $ | 1,257 | $ | 3,838 | $ | 72 | $ | 147 | $ | 144 | $ | 5,458 | |||||||||
Charge Offs | -541 | -1,632 | -181 | -24 | -59 | -2,437 | |||||||||||||||
Recoveries | 7 | - | - | - | 24 | 31 | |||||||||||||||
Provision for loan losses | 1,074 | 977 | 228 | 100 | 71 | 2,450 | |||||||||||||||
Ending balance, December 31, 2012 | $ | 1,797 | $ | 3,183 | $ | 119 | $ | 223 | $ | 180 | $ | 5,502 | |||||||||
Ending balance individually evaluated | $ | - | $ | 9 | $ | - | $ | - | $ | - | $ | 9 | |||||||||
for impairment | |||||||||||||||||||||
Ending balance collectively evaluated | $ | 1,797 | $ | 3,174 | $ | 119 | $ | 223 | $ | 180 | $ | 5,493 | |||||||||
for impairment | |||||||||||||||||||||
The recorded investment in impaired loans, not requiring an allowance for loan losses was $10,886,000 (net of charge-offs against the allowance for loan losses of $3,714,000) and $11,074,000 (net of charge-offs against the allowance for loan losses of $1,500,000) at December 31, 2013 and 2012, respectively. The recorded investment in impaired loans requiring an allowance for loan losses was $1,723,000 (net of a charge-off against the allowance for loan losses of $0) and $551,000 (net of a charge-off against the allowance for loan losses of $710,000) at December 31, 2013 and 2012, respectively. The specific reserve related to impaired loans was $53,000 for 2013 and $9,000 for 2012. For the years ended December 31, 2013 and 2012, the average recorded investment in these impaired loans was $10,580,000, and $12,729,000 and the interest income recognized on these impaired loans was $241,000 and $233,000, respectively. | |||||||||||||||||||||
Interest income that would have been recorded on loans accounted for on a non-accrual basis under the original terms of the loans was $724,000, $666,000 and $535,000 for 2013, 2012 and 2011, respectively. | |||||||||||||||||||||
The Company’s primary business activity is with customers located in northeastern Pennsylvania. Accordingly, the Company has extended credit primarily to commercial entities and individuals in this area whose ability to honor their contracts is influenced by the region’s economy. The Company does not have any significant concentrations to any one customer. | |||||||||||||||||||||
As of December 31, 2013 and 2012, the Company considered its concentration of credit risk to be acceptable. As of December 31, 2013, the three highest concentrations are in the hospitality lodging industry, property owners associations and automobile dealers, with loans outstanding of $36.9 million, or 38.5% of bank capital, to the hospitality lodging industry, $12.7 million, or 13.2% of bank capital to property owners associations, and $10.8 million, or 11.2% of bank capital to the automobile dealer industry. Charge-offs on loans within these concentrations were $0, $0 and $948,000 for the years ended December 31, 2013, 2012 and 2011, respectively.. | |||||||||||||||||||||
Gross realized gains and gross realized losses on sales of residential mortgage loans were $74,000 and $7,000, respectively, in 2013 compared to $270,000 and $0, respectively, in 2012 and $241,000 and $21,000, respectively, in 2011. The proceeds from the sales of residential mortgage loans totaled $4.1 million, $7.2 million and $8.9 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||
Premises_and_Equipment
Premises and Equipment | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Premises and Equipment [Abstract] | ' | |||||
PREMISES AND EQUIPMENT | ' | |||||
NOTE 5 - PREMISES AND EQUIPMENT | ||||||
Components of premises and equipment at December 31 are as follows: | ||||||
2013 | 2012 | |||||
(In Thousands) | ||||||
Land and improvements | $ | 2,272 | $ | 2,238 | ||
Buildings and improvements | 9,659 | 9,494 | ||||
Furniture and equipment | 4,218 | 3,998 | ||||
16,149 | 15,730 | |||||
Accumulated depreciation | -9,024 | -8,404 | ||||
$ | 7,125 | $ | 7,326 | |||
Depreciation expense totaled $594,000, $570,000 and $531,000 for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||
Certain facilities are leased under various operating leases. Rental expense for these leases was $325,000, $327,000 and $299,000, respectively for the years ended December 31, 2013, 2012 and 2011. Future minimum rental commitments under noncancellable leases as of December 31, 2013 were as follows (in thousands): | ||||||
2014 | $ | 317 | ||||
2015 | 312 | |||||
2016 | 242 | |||||
2017 | 192 | |||||
2018 | 192 | |||||
Thereafter | 1,720 | |||||
$ | 2,975 | |||||
Deposits
Deposits | 12 Months Ended | ||
Dec. 31, 2013 | |||
Deposits [Abstract] | ' | ||
DEPOSITS | ' | ||
NOTE 6 - DEPOSITS | |||
Aggregate time deposits in denominations of $100,000 or more were $79,636,000 and $71,311,000 at December 31, 2013 and 2012, respectively. Included in deposit accounts are deposits of one customer relationship totaling $30,853,000 at December 31, 2013. | |||
At December 31, 2013, the scheduled maturities of time deposits are as follows (in thousands): | |||
2014 | $ | 105,493 | |
2015 | 48,688 | ||
2016 | 31,307 | ||
2017 | 15,980 | ||
2018 | 9,961 | ||
$ | 211,429 | ||
Borrowings
Borrowings | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Borrowings [Abstract] | ' | |||||||
BORROWINGS | ' | |||||||
NOTE 7 - BORROWINGS | ||||||||
Short-term borrowings at December 31 consist of the following: | ||||||||
2013 | 2012 | |||||||
( In Thousands) | ||||||||
Securities sold under agreements to repurchase | $ | 36,500 | $ | 28,697 | ||||
Federal Home Loan Bank short-term borrowings | 13,414 | - | ||||||
The outstanding balances and related information of short-term borrowings are summarized as follows: | ||||||||
Years Ended December 31, | ||||||||
2013 | 2012 | |||||||
(Dollars In Thousands) | ||||||||
Average balance during the year | $ | 30,832 | $ | 23,679 | ||||
Average interest rate during the year | 0.21 | % | 0.22 | % | ||||
Maximum month-end balance during the year | $ | 49,914 | $ | 32,386 | ||||
Weighted average interest rate at the end of the year | 0.21 | % | 0.20 | % | ||||
Securities sold under agreements to repurchase generally mature within one day to one year from the transaction date. Securities with an amortized cost and fair value of $40,065,000 and $38,733,000 at December 31, 2013 and $29,219,000 and $29,680,000 at December 31, 2012 respectively, were pledged as collateral for these agreements. The securities underlying the agreements were under the Company’s control. | ||||||||
The Company has a line of credit commitment available from the FHLB of Pittsburgh for borrowings of up to $142,405,000 which expires in May, 2014. Borrowings under this line of credit at December 31, 2013 and 2012, were $13,414,000 and $0. The Company has a line of credit commitment available from Atlantic Community Bankers Bank for $7,000,000 which expires on June 30, 2014. There were no borrowings under this line of credit at December 31, 2013 and 2012. The Company has a line of credit commitment available from PNC Bank for $16,000,000 at December 31, 2013. There were no borrowings under this line of credit at December 31, 2013 and December 31, 2012. | ||||||||
Other borrowings consisted of the following at December 31, 2013 and 2012: | ||||||||
2013 | 2012 | |||||||
(In Thousands) | ||||||||
Notes with the FHLB: | ||||||||
Convertible note due May 2013 at 3.015% | $ | - | $ | 5,000 | ||||
Fixed rate note due July 2015 at 4.34% | 7,301 | 7,487 | ||||||
Convertible note due January 2017 at 4.71% | 10,000 | 10,000 | ||||||
Amortizing fixed rate borrowing due January 2018 at 0.91% | 2,460 | - | ||||||
Amortizing fixed rate borrowing due December 2018 at 1.425% | 4,000 | - | ||||||
$ | 23,761 | $ | 22,487 | |||||
The convertible notes contain an option which allows the FHLB, at quarterly intervals, to change the note to an adjustable-rate advance at three-month LIBOR plus 17 to 22 basis points. If the notes are converted, the option allows the Bank to put the funds back to the FHLB at no charge. | ||||||||
Contractual maturities of other borrowings at December 31, 2013 are as follows (in thousands): | ||||||||
2015 | $ | 7,301 | ||||||
2017 | 10,000 | |||||||
2018 | 6,460 | |||||||
$ | 23,761 | |||||||
The Bank’s maximum borrowing capacity with the FHLB was $288,618,000 of which $36,874,000 was outstanding at December 31, 2013. Advances from the FHLB are secured by qualifying assets of the Bank. | ||||||||
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2013 | |
Employee Benefit Plans [Abstract] | ' |
EMPLOYEE BENEFIT PLANS | ' |
NOTE 8 - EMPLOYEE BENEFIT PLANS | |
The Company has a defined contributory profit-sharing plan which includes provisions of a 401(k) plan. The plan permits employees to make pre-tax contributions up to 15% of the employee’s compensation. The amount of contributions to the plan, including matching contributions, is at the discretion of the Board of Directors. All employees over the age of 21 are eligible to participate in the plan after one year of employment. Employee contributions are vested at all times, and | |
any Company contributions are fully vested after five years. The Company’s contributions are expensed as the cost is incurred, funded currently, and amounted to $440,000, $424,000 and $398,000 for the years ended December 31, 2013, 2012 and 2011, respectively. | |
The Company has a non-qualified supplemental executive retirement plan for the benefit of certain executive officers. At December 31, 2013 and 2012, other liabilities include $1,458,000 and $1,470,000 accrued under the Plan. Compensation expense includes approximately $126,000, $120,000 and $116,000 relating to the supplemental executive retirement plan for 2013, 2012 and 2011, respectively. To fund the benefits under this plan, the Company is the owner of single premium life insurance policies on participants in the non-qualified retirement plan. At December 31, 2013 and 2012, the cash value of these policies was $17,790,000 and $15,357,000, respectively. | |
The Company provides post retirement benefits in the form of split-dollar life arrangements to employees who meet the eligibility requirements. | |
The net periodic post retirement benefit expense included in salaries and employee benefits was $39,000 and $43,000 for the years ended December 31, 2013 and 2012, respectively. | |
The Company participates in the Pentegra Mulitemployer Defined Benefit Pension Plan (EIN 13-5645888 and Plan # 001) as a result of its acquisition of North Penn. As of December 31, 2013 and 2012, the Company’s Plan was 92.57% and 105% funded, respectively, and total contributions made are not more than 5% of the total contributions to the Plan. The Company’s expense related to the Plan was $22,000 in 2013 and $14,000 in 2012. | |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Taxes [Abstract] | ' | ||||||||
INCOME TAXES | ' | ||||||||
NOTE 9 - INCOME TAXES | |||||||||
The components of the provision for federal income taxes are as follows: | |||||||||
Years Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
(In Thousands) | |||||||||
Current | $ | 2,566 | $ | 2,612 | $ | 2,683 | |||
Deferred | 140 | 424 | -104 | ||||||
$ | 2,706 | $ | 3,036 | $ | 2,579 | ||||
Deferred income taxes reflect temporary differences in the recognition of revenue and expenses for tax reporting and financial statement purposes, principally because certain items, such as, the allowance for loan losses and loan fees are recognized in different periods for financial reporting and tax return purposes. A valuation allowance has not been established for deferred tax assets. Realization of the deferred tax assets is dependent on generating sufficient taxable income. Although realization is not assured, management believes it is more likely than not that all of the deferred tax asset will be realized. Deferred tax assets are recorded in other assets. | |||||||||
Income tax expense of the Company is less than the amounts computed by applying statutory federal income tax rates to income before income taxes because of the following: | |||||||||
Percentage of Income | |||||||||
before Income Taxes | |||||||||
Years Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
Tax at statutory rates | 34.0 | % | 34.0 | % | 34.0 | % | |||
Tax exempt interest income, net of interest expense disallowance | -6.7 | -6.9 | -7.5 | ||||||
Incentive stock options | 0.4 | 0.3 | 0.5 | ||||||
Earnings and proceeds on life insurance | -3.7 | -1.2 | -1.2 | ||||||
Other | 0.2 | 0.3 | 0.2 | ||||||
24.2 | % | 26.5 | % | 26.0 | % | ||||
The income tax provision includes $300,000, $482,000 and $331,000 of income taxes relating to realized securities gains for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||
The net deferred tax asset included in other assets in the accompanying balance sheets includes the following amounts of deferred tax assets and liabilities: | |||||||||
2013 | 2012 | ||||||||
(In Thousands) | |||||||||
Deferred tax assets: | |||||||||
Allowance for loan losses | $ | 1,941 | $ | 1,871 | |||||
Deferred compensation | 496 | 500 | |||||||
Purchase price adjustment | 1,215 | 1,458 | |||||||
Other | 303 | 292 | |||||||
Foreclosed real estate valuation allowance | 54 | 48 | |||||||
Net unrealized loss on securities | 1,337 | - | |||||||
Total Deferred Tax Assets | 5,346 | 4,169 | |||||||
Deferred tax liabilities: | |||||||||
Premises and equipment | 327 | 334 | |||||||
Deferred loan fees | 200 | 213 | |||||||
Net unrealized gains on securities | - | 1,443 | |||||||
Total Deferred Tax Liabilities | 527 | 1,990 | |||||||
Net Deferred Tax Asset | $ | 4,819 | $ | 2,179 | |||||
The Company recorded a deferred tax asset in the amount of $263,000 in 2011 related to a net operating loss carry forward resulting from its acquisition of North Penn. The Company has fully utilized the net operating loss carry forward through its tax year ending in 2012. The Company’s federal and state income tax returns for taxable years through 2009 have been closed for purposes of examination by the Internal Revenue Service and the Pennsylvania Department of Revenue. North Penn’s income tax returns though 2008 have been closed for purposes of examination by the Internal Revenue Service. | |||||||||
Regulatory_Matters_and_Stockho
Regulatory Matters and Stockholders' Equity | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Regulatory Matters and Stockholders' Equity [Abstract] | ' | |||||||||||||||
REGULATORY MATTERS AND STOCKHOLDERS' EQUITY | ' | |||||||||||||||
NOTE 10 - REGULATORY MATTERS AND STOCKHOLDERS’ EQUITY | ||||||||||||||||
The Company and Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s 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 Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 capital (as defined in the regulations) to risk-weighted assets, and of Tier 1 capital to average assets. Management believes, as of December 31, 2013 and 2012, that the Company and the Bank meet all capital adequacy requirements to which they are subject. | ||||||||||||||||
As of December 31, 2013, the most recent notification from the regulators has categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the Bank’s category. | ||||||||||||||||
The Bank’s actual capital amounts and ratios are presented in the table: | ||||||||||||||||
To be Well Capitalized | ||||||||||||||||
under Prompt | ||||||||||||||||
For Capital Adequacy | Corrective Action | |||||||||||||||
Actual | Purposes | Provision | ||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||
(Dollars in Thousands) | ||||||||||||||||
As of December 31, 2013: | ||||||||||||||||
Total capital (to risk-weighted assets) | $ | 85,667 | 16.86 | % | ≥$40,660 | ≥8.00 | % | ≥$50,825 | ≥10.00 | % | ||||||
Tier 1 capital (to risk-weighted assets) | 79,959 | 15.73 | ≥20,330 | ≥4.00 | ≥30,495 | ≥6.00 | ||||||||||
Tier 1 capital (to average assets) | 79,959 | 11.51 | ≥27,792 | ≥4.00 | ≥34,740 | ≥5.00 | ||||||||||
As of December 31, 2012: | ||||||||||||||||
Total capital (to risk-weighted assets) | $ | 80,747 | 16.74 | % | ≥$38,596 | ≥8.00 | % | ≥$48,245 | ≥10.00 | % | ||||||
Tier 1 capital (to risk-weighted assets) | 75,245 | 15.60 | ≥19,298 | ≥4.00 | ≥28,947 | ≥6.00 | ||||||||||
Tier 1 capital (to average assets) | 75,245 | 11.20 | ≥26,862 | ≥4.00 | ≥33,577 | ≥5.00 | ||||||||||
The Company’s ratios do not differ significantly from the Bank’s ratios presented above. | ||||||||||||||||
The Bank is required to maintain average cash reserve balances in vault cash or with the Federal Reserve Bank. The amount of these restricted cash reserve balances at December 31, 2013 and 2012 was approximately $480,000 and $430,000, respectively. | ||||||||||||||||
Under Pennsylvania banking law, the Bank is subject to certain restrictions on the amount of dividends that it may declare without prior regulatory approval. At December 31, 2013, $57,716,000 of retained earnings were available for dividends without prior regulatory approval, subject to the regulatory capital requirements discussed above. Under Federal Reserve regulations, the Bank is limited as to the amount it may lend affiliates, including the Company, unless such loans are collateralized by specific obligations. | ||||||||||||||||
Stock_Option_Plans
Stock Option Plans | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Stock-Based Compensation [Abstract] | ' | |||||||||||||||||||||||
STOCK OPTION PLANS | ' | |||||||||||||||||||||||
NOTE 11 - STOCK OPTION PLAN | ||||||||||||||||||||||||
The Company’s shareholders approved the Norwood Financial Corp 2006 Stock Option Plan at the Annual Meeting on April 26, 2006. An aggregate of 275,000 shares of authorized but unissued Common Stock of the Company were reserved for future issuance under the Plan. This includes up to 44,000 shares for awards to outside directors. Under this plan, the Company granted 28,600 options, which included 4,000 options granted to outside directors in 2013, 30,250 options, which included 4,950 options granted to outside directors in 2012 and 31,900 options, which included 4,950 options granted to outside directors in 2011. | ||||||||||||||||||||||||
Total unrecognized compensation cost related to nonvested options under the Plan was $157,000 as of December 31, 2013, $154,000 as of December 31, 2012 and $130,000 as of December 31, 2011. Salaries and employee benefits expense includes $162,000, $130,000 and $170,000 of compensation costs related to options for the years ended December 31, 2013, 2012 and 2011, respectively. Net income was reduced by $154,000, $123,000 and $163,000 for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||||||||||||||
A summary of the Company’s stock option activity and related information for the years ended December 31 follows: | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
Weighted | Weighted | Weighted | ||||||||||||||||||||||
Average | Average | Average | Average | Average | Aggregate | |||||||||||||||||||
Exercise | Intrinsic | Exercise | Intrinsic | Exercise | Intrinsic | |||||||||||||||||||
Options | Price | Value | Options | Price | Value | Options | Price | Value | ||||||||||||||||
Outstanding, beginning of year | 225,670 | $ | 26.27 | 229,836 | $ | 25.85 | 207,534 | $ | 25.93 | $ | ||||||||||||||
Granted | 28,600 | 27.07 | 30,250 | 27.05 | 31,900 | 24.94 | ||||||||||||||||||
Exercised | -24,127 | 23.83 | -20,435 | 22.19 | -2,833 | 17.90 | ||||||||||||||||||
Forfeited | -10,603 | 28.92 | -13,981 | 26.88 | -6,765 | 27.50 | ||||||||||||||||||
Outstanding, end of year | 219,540 | $ | 26.64 | $ | 146,970 | 225,670 | $ | 26.27 | $ | 256,499 | 229,836 | $ | 25.85 | $ | 113,352 | |||||||||
Exercisable, end of year | 190,940 | $ | 26.58 | $ | 146,900 | 196,489 | $ | 26.15 | $ | 256,499 | 199,005 | $ | 25.99 | $ | 112,152 | |||||||||
Exercise prices for options outstanding as of December 31, 2013 ranged from $24.44 to $28.95 per share. The weighted average remaining contractual life is 4.8 years. | ||||||||||||||||||||||||
The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing with the following weighted average assumptions: | ||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
Dividend yield | 3.49% | 3.27% | 3.30% | |||||||||||||||||||||
Expected life | 10 years | 10 years | 7 years | |||||||||||||||||||||
Expected volatility | 25.91% | 25.37% | 25.35% | |||||||||||||||||||||
Risk-free interest rate | 3.01% | 1.76% | 1.39% | |||||||||||||||||||||
Weighted average fair value of options granted | $ | 5.72 | $ | 5.61 | $ | 4.7 | ||||||||||||||||||
The expected volatility is based on historical volatility. The risk-free interest rates for periods within the contractual life of the awards are based on the U.S. Treasury yield curve in effect at the time of the grant. The expected life is based on historical exercise experience. The dividend yield assumption is based on the Company’s history and expectation of dividend payouts. | ||||||||||||||||||||||||
Proceeds from stock option exercises totaled $575,000 in 2013. Shares issued in connection with stock option exercises are issued from available treasury shares. If no treasury shares are available, new shares are issued from available authorized shares. During 2013, all the shares issued in connection with stock option exercises, 24,127 shares in total, were issued from available treasury shares. | ||||||||||||||||||||||||
All share and per share data have been adjusted to give retroactive effect to the 10% stock dividend declared in 2013. | ||||||||||||||||||||||||
As of December 31, 2013, outstanding stock options consist of the following: | ||||||||||||||||||||||||
Average | Average | |||||||||||||||||||||||
Options | Exercise | Remaining | Options | Exercise | ||||||||||||||||||||
Outstanding | Price | Life, Years | Exercisable | Price | ||||||||||||||||||||
15,594 | $ | 27.27 | 1.0 | 15,594 | $ | 27.27 | ||||||||||||||||||
20,796 | 27.62 | 2.3 | 20,796 | 27.62 | ||||||||||||||||||||
18,700 | 28.64 | 3.0 | 18,700 | 28.64 | ||||||||||||||||||||
18,700 | 28.41 | 4.0 | 18,700 | 28.41 | ||||||||||||||||||||
19,800 | 25.00 | 5.0 | 19,800 | 25.00 | ||||||||||||||||||||
1,100 | 26.27 | 5.3 | 1,100 | 26.27 | ||||||||||||||||||||
18,700 | 25.99 | 6.0 | 18,700 | 25.99 | ||||||||||||||||||||
1,100 | 24.44 | 6.2 | 1,100 | 24.44 | ||||||||||||||||||||
23,650 | 25.25 | 7.0 | 23,650 | 25.25 | ||||||||||||||||||||
25,850 | 24.97 | 8.0 | 25,850 | 24.97 | ||||||||||||||||||||
26,950 | 27.05 | 9.0 | 26,950 | 27.05 | ||||||||||||||||||||
1,100 | 27.55 | 9.0 | - | - | ||||||||||||||||||||
2,000 | 28.95 | 9.7 | - | - | ||||||||||||||||||||
25,500 | 26.90 | 10.0 | - | - | ||||||||||||||||||||
Total | 219,540 | 190,940 | ||||||||||||||||||||||
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
EARNINGS PER SHARE | ' | ||||||||
NOTE 12 - EARNINGS PER SHARE | |||||||||
The following table sets forth the computations of basic and diluted earnings per share: | |||||||||
Years Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
(In Thousands, Except Per Share Data | |||||||||
Numerator, net income | $ | 8,465 | $ | 8,403 | $ | 7,356 | |||
Denominator: | |||||||||
Denominator for basic earnings per share, weighted | |||||||||
average shares | 3,627 | 3,608 | 3,380 | ||||||
Effect of dilutive securities, employee stock options | 5 | 6 | 3 | ||||||
Denominator for diluted earnings per share, adjusted weighted average | |||||||||
shares and assumed conversions | 3,632 | 3,614 | 3,383 | ||||||
Basic earnings per common share | $ | 2.33 | $ | 2.33 | $ | 2.17 | |||
Diluted earnings per common share | $ | 2.33 | $ | 2.33 | $ | 2.17 | |||
Stock options which had no intrinsic value because their effect would be anti-dilutive and therefore would not be included in the diluted EPS calculation were 129,000, 112,000, and 172,700 for the years ended December 31, 2013, 2012 and 2011, respectively. All share and per share data have been restated to give retroactive effect to the 10% stock dividend paid in 2013. | |||||||||
OffBalance_Sheet_Financial_Ins
Off-Balance Sheet Financial Instruments and Guarantees | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Off-Balance Sheet Financial Instruments and Guarantees [Abstract] | ' | |||||
OFF-BALANCE SHEET FINANCIAL INSTRUMENTS AND GUARANTEES | ' | |||||
NOTE 13 - OFF-BALANCE SHEET FINANCIAL INSTRUMENTS | ||||||
The Bank is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheets. | ||||||
The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and letters of credit is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. | ||||||
A summary of the Bank’s financial instrument commitments is as follows: | ||||||
December 31, | ||||||
2013 | 2012 | |||||
(In Thousands) | ||||||
Commitments to grant loans | $ | 22,845 | $ | 17,582 | ||
Unfunded commitments under lines of credit | 42,575 | 42,735 | ||||
Standby letters of credit | 5,701 | 6,128 | ||||
$ | 71,121 | $ | 66,445 | |||
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since some of the commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. The Bank evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on management’s credit evaluation of the customer and generally consists of real estate. | ||||||
Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. The majority of these standby letters of credit expire within the next twelve months. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending other loan commitments. The Bank requires collateral supporting these letters of credit when deemed necessary. Management believes that the proceeds obtained through a liquidation of such collateral would be sufficient to cover the maximum potential amount of future payments required under the corresponding guarantees. | ||||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||||||
FAIR VALUE MEASUREMENTS | ' | ||||||||||||||
NOTE 14 – FAIR VALUES OF FINANCIAL INSTRUMENTS | |||||||||||||||
Management uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Company could have realized in a sale transaction on the dates indicated. The estimated fair value amounts have been measured as of their respective year ends and have not been re-evaluated or updated for purposes of these consolidated financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported at each year end. | |||||||||||||||
The fair value hierarchy prioritizes the inputs to valuation methods used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: | |||||||||||||||
Level 1: | Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. | ||||||||||||||
Level 2: | Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability. | ||||||||||||||
Level 3: | Prices or valuation techniques that require inputs that are both significant to the fair value measurement and are unobservable (i.e. supported with little or no market activity). | ||||||||||||||
An asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. | |||||||||||||||
For financial assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 2013 and 2012 are as follows: | |||||||||||||||
Fair Value Measurement Reporting Date using | |||||||||||||||
Description | Total | Level 1 | Level 2 | Level 3 | |||||||||||
31-Dec-13 | |||||||||||||||
Available for Sale: | |||||||||||||||
U.S. Government agencies | $ | 33,413 | $ | - | $ | 33,413 | $ | - | |||||||
States and political subdivisions | 59,030 | - | 59,030 | - | |||||||||||
Corporate obligations | 3,711 | - | 3,711 | - | |||||||||||
Mortgage-backed securities-government | |||||||||||||||
sponsored entities | 61,650 | - | 61,650 | - | |||||||||||
Equity securities-financial services | 328 | 328 | - | - | |||||||||||
Total available for sale | $ | 158,132 | $ | 328 | $ | 157,804 | $ | - | |||||||
31-Dec-12 | |||||||||||||||
Available for Sale: | |||||||||||||||
U.S. Government agencies | $ | 13,092 | $ | - | $ | 13,092 | $ | - | |||||||
States and political subdivisions | 58,786 | - | 58,786 | - | |||||||||||
Corporate obligations | 8,868 | - | 8,868 | - | |||||||||||
Mortgage-backed securities-government | |||||||||||||||
sponsored entities | 64,325 | - | 64,325 | - | |||||||||||
Equity securities-financial services | 319 | 319 | - | - | |||||||||||
Total available for sale | $ | 145,390 | $ | 319 | $ | 145,071 | $ | - | |||||||
For financial assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 2013 and 2012 are as follows: | |||||||||||||||
Fair Value Measurement Reporting Date using | |||||||||||||||
Description | Total | Level 1 | Level 2 | Level 3 | |||||||||||
31-Dec-13 | |||||||||||||||
Impaired Loans | $ | 12,556 | $ | - | $ | - | $ | 12,556 | |||||||
Foreclosed real estate | 1,009 | - | - | 1,009 | |||||||||||
31-Dec-12 | |||||||||||||||
Impaired Loans | $ | 11,616 | $ | - | $ | - | $ | 11,616 | |||||||
Foreclosed real estate | 852 | - | - | 852 | |||||||||||
The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which Norwood has utilized Level 3 inputs to determine fair value: | |||||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||
(In thousands) | Fair Value Estimate | Valuation Techniques | Unobservable Input | Range (Weighted Average) | |||||||||||
31-Dec-13 | |||||||||||||||
Impaired loans | $ | 12,556 | Appraisal of collateral(1) | Appraisal adjustments(2) | 10 - 15% (10.67)% | ||||||||||
Foreclosed real estate owned | $ | 1,009 | Appraisal of collateral(1) | Liquidation Expenses(2) | 10% | ||||||||||
(1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable, less any associated allowance. | |||||||||||||||
(2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. | |||||||||||||||
The following information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only provided for a limited portion of the Company’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful. | |||||||||||||||
The following methods and assumptions were used to estimate the fair values of the Company’s financial instruments at December 31, 2013 and 2012. | |||||||||||||||
Cash and cash equivalents (carried at cost): | |||||||||||||||
The carrying amounts reported in the consolidated balance sheet for cash and short-term instruments approximate those assets’ fair values. | |||||||||||||||
Securities: | |||||||||||||||
The fair value of securities available for sale (carried at fair value) and held to maturity (carried at amortized cost) are determined by obtaining quoted market prices on nationally recognized securities exchanges (Level 1), or matrix pricing (Level 2), which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted prices. For certain securities which are not traded in active markets or are subject to transfer restrictions, valuations are adjusted to reflect illiquidity and/or non-transferability, and such adjustments are generally based on available market evidence (Level 3). In the absence of such evidence, management’s best estimate is used. Management’s best estimate consists of both internal and external support on certain Level 3 investments. Internal cash flow models using a present value formula that includes assumptions market participants would use along with indicative exit pricing obtained from broker/dealers (where available) are used to support fair values of certain Level 3 investments, if applicable. | |||||||||||||||
Loans receivable (carried at cost): | |||||||||||||||
The fair values of loans are estimated using discounted cash flow analyses, using market rates at the balance sheet date that reflect the credit and interest rate-risk inherent in the loans. Projected future cash flows are calculated based upon contractual maturity or call dates, projected repayments and prepayments of principal. Generally, for variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. | |||||||||||||||
Impaired loans (generally carried at fair value): | |||||||||||||||
The Company measures impairment generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third-party appraisals of the properties, or discounted cash flows based upon the lowest level of input that is significant to the fair value measurements. | |||||||||||||||
As of December 31, 2013, the fair value investment in impaired loans totaled $12,556,000 which included one loan for $1,723,000 for which a valuation allowance of $53,000 had been provided based on the estimated value of the collateral or the present value of estimated cash flows, and twenty loans for $10,886,000 which did not require a valuation allowance since the estimated realizable value of the collateral exceeded the recorded investment in the loan. As of December 31, 2013, the Company has recognized charge-offs against the allowance for loan losses on these impaired loans in the amount of $3,714,000 over the life of the loans. | |||||||||||||||
As of December 31, 2012, the fair value investment in impaired loans totaled $11,616,000 which included one loan for $551,000 for which a valuation allowance had been provided based on the estimated value of the collateral or the present value of estimated cash flows, and twenty-one loans for $11,074,000 which did not require a valuation allowance since the estimated realizable value of the collateral exceeded the recorded investment in the loan. As of December 31, 2012, the Company has recognized charge-offs against the allowance for loan losses on these impaired loans in the amount of $2,210,000 over the life of the loans. | |||||||||||||||
Mortgage servicing rights (generally carried at cost) | |||||||||||||||
The Company utilizes a third party provider to estimate the fair value of certain loan servicing rights. Fair value for the purpose of this measurement is defined as the amount at which the asset could be exchanged in a current transaction between willing parties, other than in a forced liquidation. | |||||||||||||||
Foreclosed real estate owned (carried at fair value): | |||||||||||||||
Real estate properties acquired through, or in lieu of loan foreclosure are to be sold and are carried at fair value less estimated cost to sell. Fair value is based upon independent market prices, appraised value of the collateral or management’s estimation of the value of the collateral. These assets are included in Level 3 fair value based upon the lowest level of input that is significant to the fair value measurement. | |||||||||||||||
Restricted investment in Federal Home Loan Bank stock (carried at cost): | |||||||||||||||
The Company, as a member of the Federal Home Loan Bank (FHLB) system is required to maintain an investment in capital stock of its district FHLB according to a predetermined formula. This regulatory stock has no quoted market value and is carried at cost. | |||||||||||||||
Bank owned life insurance (carried at cost): | |||||||||||||||
The fair value is equal to the cash surrender value of the Bank owned life insurance. | |||||||||||||||
Accrued interest receivable and payable (carried at cost): | |||||||||||||||
The carrying amount of accrued interest receivable and accrued interest payable approximates its fair value. | |||||||||||||||
Deposit liabilities (carried at cost except certificates of deposit which are at fair value): | |||||||||||||||
The fair values disclosed for demand deposits (e.g., interest and noninterest checking, passbook savings and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered in the market on certificates to a schedule of aggregated expected monthly maturities on time deposits. | |||||||||||||||
Short-term borrowings (carried at cost): | |||||||||||||||
The carrying amounts of short-term borrowings approximate their fair values. | |||||||||||||||
Other borrowings (carried at cost): | |||||||||||||||
Fair values of FHLB advances are estimated using discounted cash flow analysis, based on quoted prices for new FHLB advances with similar credit risk characteristics, terms and remaining maturity. These prices obtained from this active market represent a market value that is deemed to represent the transfer price if the liability were assumed by a third party. | |||||||||||||||
Off-balance sheet financial instruments (disclosed at cost): | |||||||||||||||
Fair values for the Company’s off-balance sheet financial instruments (lending commitments and letters of credit) are based on fees currently charged in the market to enter into similar agreements, taking into account, the remaining terms of the agreements and the counterparties’ credit standing. | |||||||||||||||
The estimated fair values of the Bank’s financial instruments were as follows at December 31, 2013 and December 31, 2012. (In thousands) | |||||||||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||||
Carrying | Fair | ||||||||||||||
Amount | Value | Level 1 | Level 2 | Level 3 | |||||||||||
Financial assets: | |||||||||||||||
Cash and cash equivalents | $ | 7,863 | $ | 7,863 | $ | 7,863 | $ | - | $ | - | |||||
Securities | 158,306 | 158,309 | 328 | 157,981 | - | ||||||||||
Loans receivable, net | 497,389 | 506,113 | - | - | 506,113 | ||||||||||
Mortgage servicing rights | 289 | 289 | - | 289 | - | ||||||||||
Regulatory stock | 2,877 | 2,877 | 2,877 | - | - | ||||||||||
Bank owned life insurance | 17,790 | 17,790 | 17,790 | - | - | ||||||||||
Accrued interest receivable | 2,422 | 2,422 | 2,422 | - | - | ||||||||||
Financial liabilities: | |||||||||||||||
Deposits | 541,182 | 542,123 | 329,753 | - | 212,370 | ||||||||||
Short-term borrowings | 49,914 | 49,914 | 49,914 | - | - | ||||||||||
Other borrowings | 23,761 | 25,923 | - | - | 25,923 | ||||||||||
Accrued interest payable | 1,022 | 1,022 | 1,022 | - | - | ||||||||||
Off-balance sheet financial instruments: | |||||||||||||||
Commitments to extend credit and | - | - | - | - | - | ||||||||||
outstanding letters of credit | |||||||||||||||
Fair Value Measurements at December 31, 2012 | |||||||||||||||
Carrying | Fair | ||||||||||||||
Amount | Value | Level 1 | Level 2 | Level 3 | |||||||||||
Financial assets: | |||||||||||||||
Cash and cash equivalents | $ | 12,295 | $ | 12,295 | $ | 12,295 | $ | - | $ | - | |||||
Securities | 145,563 | 145,567 | 319 | 145,248 | - | ||||||||||
Loans receivable, net | 471,208 | 485,848 | - | - | 485,848 | ||||||||||
Mortgage servicing rights | 243 | 243 | - | 243 | - | ||||||||||
Regulatory stock | 2,630 | 2,630 | 2,630 | - | - | ||||||||||
Bank owned life insurance | 15,357 | 15,357 | 15,357 | - | - | ||||||||||
Accrued interest receivable | 2,393 | 2,393 | 2,393 | - | - | ||||||||||
Financial liabilities: | |||||||||||||||
Deposits | 524,425 | 526,080 | 313,165 | - | 212,915 | ||||||||||
Short-term borrowings | 28,697 | 28,697 | 28,697 | - | - | ||||||||||
Other borrowings | 22,487 | 25,426 | - | - | 25,426 | ||||||||||
Accrued interest payable | 1,242 | 1,242 | 1,242 | - | - | ||||||||||
Off-balance sheet financial instruments: | |||||||||||||||
Commitments to extend credit and | - | - | - | - | - | ||||||||||
outstanding letters of credit | |||||||||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 12 Months Ended | ||
Dec. 31, 2013 | |||
Accumulated Other Comprehensive Income [Abstract] | ' | ||
ACCUMULATED OTHER COMPREHENSIVE INCOME | ' | ||
NOTE 15 – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||
The following table presents the changes in accumulated other comprehensive income (loss) (in thousands) by component, net of tax, for the year ended December 31, 2013: | |||
Unrealized gains (losses) on available for sale | |||
securities (a) | |||
Balance as of December 31, 2012 | $ | ||
2,797 | |||
Other comprehensive loss before reclassification | -4,818 | ||
Amount reclassified from accumulated other comprehensive income (loss) | -581 | ||
Total other comprehensive loss | -5,399 | ||
Balance as of December 31, 2013 | $ | ||
-2,602 | |||
(a) All amounts are net of tax. Amounts in parentheses indicate debits. | |||
The following table presents significant amounts reclassified out of each component of accumulated other comprehensive income (loss) (in thousands) for the year ended December 31, 2013: | |||
Amount Reclassified | |||
From Accumulated | |||
Other | |||
Comprehensive | Affected Line Item in | ||
Income (a) | the Statement Where Net Income is Presented | ||
Details about other comprehensive income | |||
Unrealized gains on available for sale securities | |||
$ 881 | Net realized gains on sales of securities | ||
(300) | Income tax expense | ||
$ 581 | Net of tax | ||
Amounts in parentheses indicate debits to net income. | |||
Acquisition_of_North_Penn_Banc
Acquisition of North Penn Bancorp, Inc. | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Acquisition of North Penn Bancorp, Inc. [Abstract] | ' | ||||
ACQUISITION OF NORTH PENN BANCORP, INC. | ' | ||||
NOTE 16 – ACQUISITION OF NORTH PENN BANCORP, INC. | |||||
On May 31, 2011, the Company closed on a merger transaction pursuant to which Norwood Financial Corp acquired North Penn Bancorp, Inc. in a stock and cash transaction. The acquisition was an in-market transaction that expanded the Company’s existing footprint in Monroe County, Pennsylvania and extended its footprint into Lackawanna County, Pennsylvania. | |||||
North Penn Bancorp, Inc. was the holding company for North Penn Bank, a Pennsylvania savings bank that conducted its business from a main office in Scranton, Pennsylvania and four branch offices in the northeastern Pennsylvania counties of Lackawanna and Monroe. | |||||
Under the terms of the merger agreement, the Company acquired all of the outstanding shares of North Penn Bancorp, Inc. for a total purchase price of approximately $25.4 million. As a result of the acquisition, the Company issued 530,994 common shares, or 15.75% of the total shares outstanding, to former shareholders of North Penn Bancorp, Inc. North Penn Bank has been merged into Wayne Bank, with Wayne as the surviving entity. | |||||
The acquired assets and assumed liabilities were measured at estimated fair values. Management made significant estimates and exercised significant judgment in accounting for the acquisition. Management measured loan fair values based on loan file reviews (including borrower financial statements or tax returns), appraised collateral values, expected cash flows and historical loss factors of North Penn Bank. Real estate acquired through foreclosure was primarily valued based on appraised collateral values. The Company also recorded an identifiable intangible asset representing the core deposit base of North Penn Bank based on management's evaluation of the cost of such deposits relative to alternative funding sources. Management used significant estimates including the average lives of depository accounts, future interest rate levels and the cost of servicing various depository products. Management used market quotations to fair value investment securities and FHLB advances. | |||||
The business combination resulted in the acquisition of loans with and without evidence of credit quality deterioration. North Penn Bank's loans were deemed impaired at the acquisition date if the Company did not expect to receive all contractually required cash flows due to concerns about credit quality. Such loans were fair valued and the difference between contractually required payments at the acquisition date and cash flows expected to be collected was recorded as a nonaccretable difference. At the acquisition date, the Company recorded $1.9 million of purchased credit-impaired loans subject to a nonaccretable difference of $1.7 million. The method of measuring carrying value of purchased loans differs from loans originated by the Company (originated loans), and as such, the Company identifies purchased loans and purchased loans with a credit quality discount and originated loans at amortized cost. | |||||
North Penn Bank's loans without evidence of credit deterioration were fair valued by discounting both expected principal and interest cash flows using an observable discount rate for similar instruments that a market participant would consider in determining fair value. Additionally, consideration was given to management's best estimates of default rates and payment speeds. At acquisition, North Penn's loan portfolio without evidence of deterioration totaled $119.8 million and was recorded at a fair value of $116.7 million. | |||||
The following condensed statement reflects the values assigned to North Penn Bancorp’s net assets as of the acquisition date (in thousands): | |||||
Total purchase price | $ | 25,396 | |||
Net Assets Acquired: | |||||
Cash | $ | 15,192 | |||
Securities available for sale | 12,671 | ||||
Restricted investments | 985 | ||||
Loans | 118,336 | ||||
Accrued interest receivable | 566 | ||||
Premises & equipment, net | 2,931 | ||||
Core deposit intangible | 895 | ||||
Deferred tax assets | 2,715 | ||||
Other assets | 5,403 | ||||
Time deposits | -51,936 | ||||
Deposits other than time deposits | -83,498 | ||||
Borrowings | -7,776 | ||||
Accrued interest payable | -203 | ||||
Other liabilities | -600 | ||||
15,681 | |||||
Goodwill resulting from North Penn Merger | $ | 9,715 | |||
Results of operations for North Penn prior to the acquisition date are not included in the Consolidated Statement of Income for the period ended December 31, 2011. Due to the significant amount of fair value adjustments historical results of North Penn are not relevant to the Company's results of operations. | |||||
Norwood_Financial_Corp_Parent_
Norwood Financial Corp (Parent Company Only) Financial Information | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Norwood Financial Corp (Parent Company Only) Financial Information [Abstract] | ' | |||||||||
NORWOOD FINANCIAL CORP (PARENT COMPANY ONLY) FINANCIAL INFORMATION | ' | |||||||||
NOTE 17 - NORWOOD FINANCIAL CORP (PARENT COMPANY ONLY) FINANCIAL INFORMATION BALANCE SHEETS | ||||||||||
December 31, | ||||||||||
2013 | 2012 | |||||||||
(In Thousands) | ||||||||||
ASSETS | ||||||||||
Cash on deposit in bank subsidiary | $ | 1,205 | $ | 1,120 | ||||||
Securities available for sale | 328 | 319 | ||||||||
Investment in bank subsidiary | 87,589 | 88,412 | ||||||||
Other assets | 3,835 | 3,591 | ||||||||
Total assets | $ | 92,957 | $ | 93,442 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||
Liabilities | $ | 1,093 | $ | 1,021 | ||||||
Stockholders’ equity | 91,864 | 92,421 | ||||||||
Total liabilities and stockholders' equity | $ | 92,957 | $ | 93,442 | ||||||
STATEMENTS OF INCOME | ||||||||||
Years Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Income: | (In Thousands) | |||||||||
Dividends from bank subsidiary | $ | 4,216 | $ | 3,971 | $ | 16,496 | ||||
Other interest income | 9 | 6 | 9 | |||||||
Net realized gain on sales of securities | - | 73 | - | |||||||
4,225 | 4,050 | 16,505 | ||||||||
Expenses | 267 | 296 | 980 | |||||||
3,958 | 3,754 | 15,525 | ||||||||
Income tax benefit | -88 | -74 | -290 | |||||||
4,046 | 3,828 | 15,815 | ||||||||
Equity in undistributed earnings of subsidiary | 4,419 | 4,575 | -8,459 | |||||||
Net Income | $ | 8,465 | $ | 8,403 | $ | 7,356 | ||||
Comprehensive Income | $ | 3,066 | $ | 7,885 | $ | 9,534 | ||||
STATEMENTS OF CASH FLOWS | ||||||||||
Years Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
(In Thousands) | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||
Net income | $ | 8,465 | $ | 8,403 | $ | 7,356 | ||||
Adjustments to reconcile net income to | ||||||||||
net cash provided by operating activities: | ||||||||||
Undistributed earnings of bank subsidiary | -4,419 | -4,575 | 8,459 | |||||||
Net gains on sales of securities | - | -68 | -- | |||||||
Other, net | -247 | -181 | -506 | |||||||
Net Cash Provided by Operating Activities | 3,799 | 3,579 | 15,309 | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||
Proceeds from sale of securities | - | 114 | - | |||||||
Outlays for business acquisitions | - | - | -10,518 | |||||||
Purchase of securities | - | (185 | - | |||||||
Net Cash Used in Investing Activities | - | -71 | -10,518 | |||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||
Stock options exercised | 575 | 455 | 51 | |||||||
Tax benefit of stock options exercised | 39 | 30 | 5 | |||||||
ESOP purchase of shares from treasury stock | 146 | 149 | 153 | |||||||
Acquisition of treasury stock | -319 | -320 | -602 | |||||||
Cash dividends paid | -4,155 | -3,932 | -3,514 | |||||||
Net Cash Used in Financing Activities | -3,714 | -3,618 | -3,907 | |||||||
Net Increase (Decrease) in Cash and Cash Equivalents | 85 | -110 | 884 | |||||||
CASH AND CASH EQUIVALENTS - BEGINNING | 1,120 | 1,230 | 346 | |||||||
CASH AND CASH EQUIVALENTS - ENDING | $ | 1,205 | $ | 1,120 | $ | 1,230 | ||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Summary of Significant Accounting Policies [Abstract] | ' | |||
Principles of Consolidation [Policy Text Block] | ' | |||
Principles of Consolidation | ||||
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, the Bank, and the Bank’s wholly-owned subsidiaries, WCB Realty Corp., Norwood Investment Corp., Norwood Settlement Services, LLC and WTRO Properties. All significant intercompany accounts and transactions have been eliminated in consolidation. | ||||
Estimates [Policy Text Block] | ' | |||
Estimates | ||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuation of deferred tax assets, the determination of other-than-temporary impairment on securities, the determination of goodwill impairment and the fair value of financial instruments. | ||||
Concentrations of Credit Risk [Policy Text Block] | ' | |||
Significant Group Concentrations of Credit Risk | ||||
Most of the Company’s activities are with customers located within northeastern Pennsylvania. Note 3 discusses the types of securities that the Company invests in. Note 4 discusses the types of lending that the Company engages in. The Company does not have any significant concentrations to any one industry or customer. | ||||
Concentrations of Credit Risk | ||||
The Bank operates primarily in Wayne, Pike, Lackawanna and Monroe Counties, Pennsylvania and, accordingly, has extended credit primarily to commercial entities and individuals in this area whose ability to honor their contracts is influenced by the region’s economy. These customers are also the primary depositors of the Bank. The Bank is limited in extending credit by legal lending limits to any single borrower or group of borrowers. | ||||
Securities [Policy Text Block] | ' | |||
Securities | ||||
Securities classified as available for sale are those securities that the Company intends to hold for an indefinite period of time but not necessarily to maturity. Any decision to sell a security classified as available for sale would be based on various factors, including significant movement in interest rates, changes in maturity mix of the Company’s assets and liabilities, liquidity needs, regulatory capital considerations and other similar factors. Securities available for sale are carried at fair value. Unrealized gains and losses are reported in other comprehensive income, net of the related deferred tax effect. Realized gains or losses, determined on the basis of the cost of the specific securities sold, are included in earnings. Premiums and discounts are recognized in interest income using a method which approximates the interest method over the term of the security. | ||||
Bonds, notes and debentures for which the Company has the positive intent and ability to hold to maturity are reported at cost, adjusted for premiums and discounts that are recognized in interest income using the interest method over the term of the security. | ||||
Management determines the appropriate classification of debt securities at the time of purchase and re-evaluates such designation as of each Consolidated Balance Sheet date. | ||||
Declines in the fair value of held to maturity and available for sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In estimating other-than-temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent of the Company to not sell the securities and it is more likely than not that it will not have to sell the securities before recovery of their cost basis. | ||||
The Company, as a member of the Federal Home Loan Bank (FHLB) system is required to maintain an investment in capital stock of its district FHLB according to a predetermined formula. This regulatory stock has no quoted market value and is carried at cost. | ||||
Management evaluates the regulatory stock for impairment. Management’s determination of whether these investments are impaired is based on their assessment of the ultimate recoverability of their cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of their cost is influenced by criteria such as (1) the significance of the decline in net assets of the FHLB as compared to the capital stock amount for the FHLB and the length of time this situation has persisted, (2) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB, and (3) the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the FHLB. Management considered that the FHLB’s regulatory capital ratios have increased from the prior year, liquidity appears adequate, and the new shares of FHLB stock continue to change hands at the $100 par value. Management believes no impairment charge is necessary related to FHLB stock as of December 31, 2013. | ||||
Loans Receivable [Policy Text Block] | ' | |||
Loans Receivable | ||||
Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at their outstanding unpaid principal balances, net of an allowance for loan losses and any deferred fees. Interest income is accrued on the unpaid principal balance. Loan origination fees are deferred and recognized as an adjustment of the yield (interest income) of the related loans. The Company is generally amortizing these amounts over the contractual life of the loan. | ||||
The accrual of interest is generally discontinued when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about further collectability of principal or interest, even though the loan is currently performing. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. When a loan is placed on nonaccrual status, unpaid interest credited to income in the current year is reversed and unpaid interest accrued in prior years is charged against the allowance for loan losses. Interest received on nonaccrual loans generally is either applied against principal or reported as interest income, according to management’s judgment as to the collectability of principal. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time and the ultimate collectability of the total contractual principal and interest is no longer in doubt. | ||||
Troubled Debt Restructurings [Policy Text Block] | ' | |||
Troubled Debt Restructurings | ||||
A loan is considered to be a troubled debt restructuring (TDR) loan when the Company grants a concession to the borrower because of the borrower’s financial condition that it would not otherwise consider. Such concessions include the reduction of interest rates, forgiveness of principal or interest, or other modifications of interest rates that are less than the current market rate for new obligations with similar risk. | ||||
Loans Acquired [Policy Text Block] | ' | |||
Loans Acquired | ||||
Loans acquired including loans that have evidence of deterioration of credit quality since origination and for which it is probable, at acquisition, that the Company will be unable to collect all contractually required payments receivable, are initially recorded at fair value (as determined by the present value of expected future cash flows) with no valuation allowance. Loans are evaluated individually to determine if there is evidence of deterioration of credit quality since origination. The difference between the undiscounted cash flows expected at acquisition and the investment in the loan, or the “accretable yield,” is recognized as interest income on a level-yield method over the life of the loan. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at acquisition, or the “non-accretable difference,” are not recognized as a yield adjustment or as a loss accrual or a valuation allowance. Increases in expected cash flows subsequent to the initial investment are recognized prospectively through adjustment of the yield on the loan over its remaining estimated life. Decreases in expected cash flows are recognized immediately as impairment. Any valuation allowances on these impaired loans reflect only losses incurred after the acquisition. | ||||
For purchased loans acquired that are not deemed impaired at acquisition, credit discounts representing the principal losses expected over the life of the loan are a component of the initial fair value. Loans may be aggregated and accounted for as a pool of loans if the loans being aggregated have common risk characteristics. Subsequent to the purchase date, the methods utilized to estimate the required allowance for credit losses for these loans is similar to originated loans; however, the Company records a provision for loan losses only when the required allowance exceeds any remaining credit discounts. The remaining differences between the purchase price and the unpaid principal balance at the date of acquisition are recorded in interest income over the life of the loans. | ||||
Mortgage Servicing Rights [Policy Text Block] | ' | |||
Mortgage Servicing Rights | ||||
Servicing assets are recognized as separate assets when rights are acquired through purchase or through the sale of financial assets. Capitalized servicing rights are reported in other assets and are amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Servicing assets are evaluated for impairment based upon a third party appraisal. Fair value is determined using prices for similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. Impairment is recognized through a valuation allowance to the extent that fair value is less than the capitalized amount. The Company’s loan servicing assets at December 31, 2013 and 2012, were not impaired. Total servicing assets included in other assets as of December 31, 2013 and 2012, were $289,000 and $243,000, respectively. | ||||
Allowance for Loan Losses [Policy Text Block] | ' | |||
Allowance for Loan Losses | ||||
The allowance for loan losses is established through provisions for loan losses charged against income. Loans deemed to be uncollectible are charged against the allowance for loan losses, and subsequent recoveries, if any, are credited to the allowance. | ||||
The allowance for loan losses is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management’s periodic evaluation of the adequacy of the allowance is based on the Company’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available. | ||||
The allowance consists of specific, general and unallocated components. The specific component relates to loans that are classified as either doubtful, substandard or special mention. For such loans that are also classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers non-classified loans and is based on historical loss experience adjusted for qualitative factors. An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. | ||||
A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and construction loans by either the present value of expected future cash flows 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. | ||||
Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer and residential real estate loans for impairment disclosures, unless such loans are the subject of a restructuring agreement. | ||||
Premises and Equipment [Policy Text Block] | ' | |||
Premises and Equipment | ||||
Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation expense is calculated principally on the straight-line method over the respective assets estimated useful lives as follows: | ||||
Years | ||||
Buildings and improvements | Oct-40 | |||
Furniture and equipment | 10-Mar | |||
Transfers of Financial Assets [Policy Text Block] | ' | |||
Transfers of Financial Assets | ||||
Transfers of financial assets, including loan and loan participation sales, are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. | ||||
Foreclosed Real Estate [Policy Text Block] | ' | |||
Foreclosed Real Estate | ||||
Real estate properties acquired through, or in lieu of, loan foreclosure are to be sold and are initially recorded at fair value less cost to sell at the date of foreclosure establishing a new cost basis. After foreclosure, valuations are periodically performed by management and the real estate is carried at the lower of its carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in other expenses. | ||||
Bank Owned Life Insurance [Policy Text Block] | ' | |||
Bank Owned Life Insurance | ||||
The Company invests in bank owned life insurance (BOLI) as a source of funding for employee benefit expenses. BOLI involves the purchasing of life insurance by the Bank on a chosen group of employees. The Company is the owner and beneficiary of the policies. This life insurance investment is carried at the cash surrender value of the underlying policies. Income from the increase in cash surrender value of the policies or from death benefits realized is included in other income on the Consolidated Statements of Income. | ||||
Goodwill [Policy Text Block] | ' | |||
Goodwill | ||||
In connection with the acquisition of North Penn Bancorp, Inc. (North Penn), we recorded goodwill in the amount of $9.7 million, representing the excess of amounts paid over the fair value of net assets of the institutions acquired in purchase transactions, at its fair value at the date of acquisition. Goodwill is tested and deemed impaired when the carrying value of goodwill exceeds its implied fair value. The value of the goodwill can change in the future. We expect the value of the goodwill to decrease if there is a significant decrease in the franchise value of the Bank. If an impairment loss is determined in the future, we will reflect the loss as an expense for the period in which the impairrment is determined, leading to a reduction of our net income for that period by the amount of the impairment loss. No impairrment was recognized for the years ended December 31, 2013, 2012 and 2011. | ||||
Intangible Assets [Policy Text Block] | ' | |||
Intangible Assets | ||||
At December 31, 2013, the Company had intangible assets of $510,000 as a result of the acquisition of North Penn which is net of accumulated amortization of $385,000. These intangible assets will continue to be amortized using the sum-of-the-years digits method of amortization over ten years. At December 31, 2012, the Company had intangible assets of $647,000 which is net of accumulated amortization of $248,000. Amortization expense related to intangible assets was $137,000, $153,000 and $108,000 for the years ended December 31, 2013, 2012 and 2011. | ||||
As of December 31, 2013, the estimated future amortization expense for the core deposit intangible was: | ||||
2014 | $ | 121,000 | ||
2015 | 104,000 | |||
2016 | 88,000 | |||
2017 | 72,000 | |||
2018 | 56,000 | |||
2019 | 39,000 | |||
2020 | 23,000 | |||
2021 | 7,000 | |||
$ | 510,000 | |||
Income Taxes [Policy Text Block] | ' | |||
Income Taxes | ||||
Deferred income tax assets and liabilities are determined based on the differences between financial statement carrying amounts and the tax basis of existing assets and liabilities. These differences are measured at the enacted tax rates that will be in effect when these differences reverse. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of the deferred tax assets will not be realized. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. The Company and its subsidiary file a consolidated federal income tax return. The Company recognizes interest and penalties on income taxes as a component of income tax expense. | ||||
The Company analyzes each tax position taken in its tax returns and determines the likelihood that the position will be realized. Only tax positions that are “more-likely-than-not” to be realized can be recognized in an entity’s financial statements. For tax positions that do not meet this recognition threshold, an entity will record an unrecognized tax benefit for the difference between the position taken on the tax return and the amount recognized in the financial statements. The Company does not have any unrecognized tax benefits at December 31, 2013 or 2012 or during the years then ended. No unrecognized tax benefits are expected to arise within the next twelve months. | ||||
Advertising Costs [Policy Text Block] | ' | |||
Advertising Costs | ||||
Advertising costs are expensed as incurred. | ||||
Earnings per Share [Policy Text Block] | ' | |||
Earnings per Share | ||||
Basic earnings per share represents income available to common stockholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate solely to outstanding stock options and are determined using the treasury stock method. Treasury shares are not deemed outstanding for earnings per share calculations. | ||||
Stock Option Plans [Policy Text Block] | ' | |||
Stock Option Plans | ||||
The Company recognizes the value of share-based payment transactions as compensation costs in the financial statements over the period that an employee provides service in exchange for the award. The fair value of the share-based payments is estimated using the Black-Scholes option-pricing model. The Company used the modified-prospective transition method to record compensation expense. Under the modified prospective method, companies are required to record compensation cost for new and modified awards over the related vesting period of such awards and record compensation cost prospectively for the unvested portion, at the date of adoption, of previously issued and outstanding awards over the remaining vesting period of such awards. No change to prior periods presented is permitted under the modified prospective method. | ||||
Cash Flow Information [ Policy Text Block] | ' | |||
Cash Flow Information | ||||
For the purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, interest-bearing deposits with banks and federal funds sold. | ||||
Off-Balance Sheet Financial Instruments [Policy Text Block] | ' | |||
Off-Balance Sheet Financial Instruments | ||||
In the ordinary course of business, the Company has entered into off-balance sheet financial instruments consisting of commitments to extend credit, letters of credit and commitments to sell loans. Such financial instruments are recorded in the balance sheets when they become receivable or payable. | ||||
Trust Assets [Policy Text Block] | ' | |||
Trust Assets | ||||
Assets held by the Company in a fiduciary capacity for customers are not included in the financial statements since such items are not assets of the Company. Trust income is reported on the accrual method. | ||||
Treasury Stock [Policy] | ' | |||
Treasury Stock | ||||
Common shares repurchased are recorded as treasury stock at cost. | ||||
Comprehensive Income [Policy Text Block] | ' | |||
Comprehensive Income | ||||
Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities, are reported as a separate component of the equity section of the balance sheet. Such items, along with net income, are components of comprehensive income as presented in the Consolidated Statement of Comprehensive Income. | ||||
Segment Reporting [Policy Text Block] | ' | |||
Segment Reporting | ||||
The Company acts as an independent community financial service provider and offers traditional banking related financial services to individual, business and government customers. Through its branch and automated teller machine network, the Company offers a full array of commercial and retail financial services, including the taking of time, savings and demand deposits; the making of commercial, consumer and mortgage loans; and the providing of safe deposit services. The Company also performs personal, corporate, pension and fiduciary services through its Trust Department. | ||||
Management does not separately allocate expenses, including the cost of funding loan demand, between the commercial, retail, mortgage banking and trust operations of the Company. As such, discrete information is not available and segment reporting would not be meaningful. | ||||
New Accounting Standards [Policy Text Block] | ' | |||
New Accounting Standards | ||||
In February 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (“ASU”) 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The standard requires that companies present either in a single note or parenthetically on the face of the financial statements, the effect of significant amounts reclassified from each component of accumulated other comprehensive income based on its source and the income statement line items affected by the reclassification. The new requirements will take effect for public companies in fiscal years, and interim periods within those years, beginning after December 15, 2012. The Company adopted this standard on January 1, 2013. The effect of adopting this standard increased our disclosure surrounding reclassification items out of accumulated other comprehensive income. | ||||
In February 2013, the FASB issued ASU 2013-04, Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date. The ASU requires the measurement of obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement with its co-obligors as well as any additional amount that the entity expects to pay on behalf of its co-obligors. The new standard is effective retrospectively for fiscal years and interim periods within those years, beginning after December 15, 2013, and early adoption is permitted. This ASU is not expected to have a significant impact on the Company’s financial statements. | ||||
In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This Update applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. The amendments in this Update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. This ASU is not expected to have a significant impact on the Company’s financial statements. | ||||
In January 2014, FASB issued ASU 2014-01, Investments – Equity Method and Join Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects. The amendments in this Update permit reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). The amendments in this Update should be applied retrospectively to all periods presented. A reporting entity that uses the effective yield method to account for its investments in qualified affordable housing projects before the date of adoption may continue to apply the effective yield method for those preexisting investments. The amendments in this Update are effective for public business entities for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. This ASU is not expected to have a significant impact on the Company’s financial statements. | ||||
In January 2014, the FASB issued ASU 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The amendments in this Update clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this Update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. An entity can elect to adopt the amendments in this Update using either a modified retrospective transition method or a prospective transition method. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations | ||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Summary of Significant Accounting Policies [Abstract] | ' | |||
Premises and Equipment, Schedule of Useful Life [Table Text Block] | ' | |||
Years | ||||
Buildings and improvements | Oct-40 | |||
Furniture and equipment | 10-Mar | |||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | ' | |||
As of December 31, 2013, the estimated future amortization expense for the core deposit intangible was: | ||||
2014 | $ | 121,000 | ||
2015 | 104,000 | |||
2016 | 88,000 | |||
2017 | 72,000 | |||
2018 | 56,000 | |||
2019 | 39,000 | |||
2020 | 23,000 | |||
2021 | 7,000 | |||
$ | 510,000 | |||
Securities_Tables
Securities (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Securities [Abstract] | ' | |||||||||||||||||
Amortized Cost and Fair Values of Securities [Table Text Block] | ' | |||||||||||||||||
The amortized cost and fair value of securities were as follows: | ||||||||||||||||||
31-Dec-13 | ||||||||||||||||||
Gross | Gross | |||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||
Cost | Gains | Losses | Value | |||||||||||||||
(In Thousands) | ||||||||||||||||||
AVAILABLE FOR SALE: | ||||||||||||||||||
U.S. Government agencies | $ | 34,471 | $ | - | $ | -1,058 | $ | 33,413 | ||||||||||
States and political subdivisions | 60,174 | 650 | -1,794 | 59,030 | ||||||||||||||
Corporate obligations | 3,667 | 84 | -40 | 3,711 | ||||||||||||||
Mortgage-backed securities- | ||||||||||||||||||
government sponsored entities | 63,467 | 81 | -1,898 | 61,650 | ||||||||||||||
Equity securities-financial services | 293 | 50 | -15 | 328 | ||||||||||||||
$ | 162,072 | $ | 865 | $ | -4,805 | $ | 158,132 | |||||||||||
HELD TO MATURITY: | ||||||||||||||||||
States and political subdivisions | $ | 174 | $ | 3 | $ | - | $ | 177 | ||||||||||
31-Dec-12 | ||||||||||||||||||
Gross | Gross | |||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||
Cost | Gains | Losses | Value | |||||||||||||||
(In Thousands) | ||||||||||||||||||
Available for Sale: | ||||||||||||||||||
U.S. Government agencies | $ | 13,076 | $ | 36 | $ | -20 | $ | 13,092 | ||||||||||
States and political subdivisions | 55,864 | 2,995 | -73 | 58,786 | ||||||||||||||
Corporate obligations | 8,521 | 347 | - | 8,868 | ||||||||||||||
Mortgage-backed securities-government | ||||||||||||||||||
sponsored entities | 63,397 | 1,041 | -113 | 64,325 | ||||||||||||||
Equity securities-financial services | 292 | 27 | - | 319 | ||||||||||||||
$ | 141,150 | $ | 4,446 | $ | -206 | $ | 145,390 | |||||||||||
Held to Maturity: | ||||||||||||||||||
States and political subdivisions | $ | 173 | $ | 4 | $ | - | $ | 177 | ||||||||||
Investments' Gross Unrealized Losses and Fair Value [Table Text Block] | ' | |||||||||||||||||
The following tables show the Company’s investments’ gross unrealized losses and fair value aggregated by length of time that individual securities have been in a continuous unrealized loss position (in thousands): | ||||||||||||||||||
31-Dec-13 | ||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||
U.S. Government agencies | $ | 32,481 | $ | -990 | $ | 932 | $ | -68 | $ | 33,413 | $ | -1,058 | ||||||
States and political subdivisions | 26,281 | -1,415 | 4,228 | -379 | 30,509 | -1,794 | ||||||||||||
Corporate obligations | 1,145 | -40 | - | - | 1,145 | -40 | ||||||||||||
Mortgage-backed securities-government sponsored entities | 47,014 | -1,524 | 7,478 | -374 | 54,492 | -1,898 | ||||||||||||
Equity securities-financial services | 170 | -15 | - | - | 170 | -15 | ||||||||||||
$ | 107,091 | $ | -3,984 | $ | 12,638 | $ | -821 | $ | 119,729 | $ | -4,805 | |||||||
31-Dec-12 | ||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||
U.S. Government agencies | $ | 7,056 | $ | -20 | $ | - | $ | - | $ | 7,056 | $ | -20 | ||||||
States and political subdivisions | 5,821 | -73 | - | - | 5,821 | -73 | ||||||||||||
Mortgage-backed securities-government sponsored entities | 17,199 | -113 | - | - | 17,199 | -113 | ||||||||||||
$ | 30,076 | $ | -206 | $ | - | $ | - | $ | 30,076 | $ | -206 | |||||||
Securities by Contractual Maturity [Table Text Block] | ' | |||||||||||||||||
The amortized cost and fair value of securities as of December 31, 2013 by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without call or prepayment penalties. | ||||||||||||||||||
Available for Sale | Held to Maturity | |||||||||||||||||
Amortized | Fair | Amortized | Fair | |||||||||||||||
Cost | Value | Cost | Value | |||||||||||||||
(In Thousands) | ||||||||||||||||||
Due in one year or less | $ | 799 | $ | 803 | $ | 174 | $ | 177 | ||||||||||
Due after one year through five years | 15,837 | 15,646 | — | — | ||||||||||||||
Due after five years through ten years | 38,543 | 37,740 | — | — | ||||||||||||||
Due after ten years | 43,133 | 41,965 | — | — | ||||||||||||||
98,312 | 96,154 | 174 | 177 | |||||||||||||||
Mortgage-backed securities - government sponsored entities | 63,467 | 61,650 | — | — | ||||||||||||||
$ | 161,779 | $ | 157,804 | $ | 174 | $ | 177 | |||||||||||
Loans_Receivable_and_Allowance1
Loans Receivable and Allowance for Loan Losses (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Loans Receivable and Allowance for Loan Losses [Abstract] | ' | ||||||||||||||||||||
Composition of Loans Receivable [Table Text Block] | ' | ||||||||||||||||||||
Set forth below is selected data relating to the composition of the loan portfolio at December 31: | |||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||
Real Estate-Residential | $ | 158,842 | 31.6 | % | $ | 150,043 | 31.4 | % | |||||||||||||
Commercial | 273,144 | 54.2 | 274,484 | 57.5 | |||||||||||||||||
Construction | 20,551 | 4.1 | 13,435 | 2.8 | |||||||||||||||||
Commercial, financial and agricultural | 35,745 | 7.1 | 25,113 | 5.3 | |||||||||||||||||
Consumer loans to individuals | 15,295 | 3.0 | 14,154 | 3.0 | |||||||||||||||||
Total loans | 503,577 | 100.0 | % | 477,229 | 100.0 | % | |||||||||||||||
Deferred fees, net | -480 | -519 | |||||||||||||||||||
Total loans receivable | 503,097 | 476,710 | |||||||||||||||||||
Allowance for loan losses | -5,708 | -5,502 | |||||||||||||||||||
Net loans receivable | $ | 497,389 | $ | 471,208 | |||||||||||||||||
Loans Acquired And Accounted For in Accordance With ASC 310-30 [Table Text Block] | ' | ||||||||||||||||||||
The carrying value of the loans acquired and accounted for in accordance with ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality, was determined by projecting discounted contractual cash flows. The table below presents the components of the purchase accounting adjustments related to the purchased impaired loans acquired in the North Penn acquisition as of May 31, 2011: | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Unpaid principal balance | $ | 1,936 | |||||||||||||||||||
Interest | 1,669 | ||||||||||||||||||||
Contractual cash flows | 3,605 | ||||||||||||||||||||
Non-accretable discount | -1,724 | ||||||||||||||||||||
Expected cash flows | 1,881 | ||||||||||||||||||||
Accretable discount | -329 | ||||||||||||||||||||
Estimated fair value | $ | 1,552 | |||||||||||||||||||
Changes In The Accretable Yield For Purchased Credit Impaired Loans [Table Text Block] | ' | ||||||||||||||||||||
Changes in the accretable yield for purchased credit-impaired loans were as follows for the twelve months ended December 31: | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Balance at beginning of period | $ | 76 | $ | 171 | $ | 329 | |||||||||||||||
Accretion | -56 | -95 | -67 | ||||||||||||||||||
Reclassification and other | - | - | -91 | ||||||||||||||||||
Balance at end of period | $ | 20 | $ | 76 | $ | 171 | |||||||||||||||
Additional Information Regarding Loans Acquired and Accounted for in Accordance with ASC 310-30 [Table Text Block] | ' | ||||||||||||||||||||
The following table presents additional information regarding loans acquired and accounted for in accordance with ASC 310-30 (in thousands): | |||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||
Outstanding Balance | $ | 1,110 | $ | 1,145 | |||||||||||||||||
Carrying Amount | $ | 1,090 | $ | 1,069 | |||||||||||||||||
Schedule of Loans Individually and Collectively Evaluated for Impairment [Table Text Block] | ' | ||||||||||||||||||||
The following table shows the amount of loans in each category that were individually and collectively evaluated for impairment at the dates indicated: | |||||||||||||||||||||
Real Estate Loans | |||||||||||||||||||||
Commercial | Consumer | ||||||||||||||||||||
Residential | Commercial | Construction | Loans | Loans | Total | ||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Individually evaluated for impairment | $ | - | $ | 11,519 | $ | - | $ | - | $ | - | $ | 11,519 | |||||||||
Loans acquired with deteriorated credit quality | 242 | 848 | - | - | - | 1,090 | |||||||||||||||
Collectively evaluated for impairment | 158,600 | 260,777 | 20,551 | 35,745 | 15,295 | 490,968 | |||||||||||||||
Total Loans | $ | 158,842 | $ | 273,144 | $ | 20,551 | $ | 35,745 | $ | 15,295 | $ | 503,577 | |||||||||
Real Estate Loans | |||||||||||||||||||||
Commercial | Consumer | ||||||||||||||||||||
Residential | Commercial | Construction | Loans | Loans | Total | ||||||||||||||||
(In thousands) | |||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||
Individually evaluated for impairment | $ | - | $ | 10,246 | $ | - | $ | 310 | $ | - | $ | 10,556 | |||||||||
Loans acquired with deteriorated credit quality | 270 | 799 | - | - | - | 1,069 | |||||||||||||||
Collectively evaluated for impairment | 149,773 | 263,439 | 13,435 | 24,803 | 14,154 | 465,604 | |||||||||||||||
Total Loans | $ | 150,043 | $ | 274,484 | $ | 13,435 | $ | 25,113 | $ | 14,154 | $ | 477,229 | |||||||||
Impaired Loans and Related Interest Income by Loan Portfolio Class [Table Text Block] | ' | ||||||||||||||||||||
The following table includes the recorded investment and unpaid principal balances for impaired loans with the associated allowance amount, if applicable. | |||||||||||||||||||||
Unpaid | |||||||||||||||||||||
Recorded | Principal | Associated | |||||||||||||||||||
Investment | Balance | Allowance | |||||||||||||||||||
31-Dec-13 | (In thousands) | ||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||
Real Estate Loans | |||||||||||||||||||||
Residential | $ | 242 | $ | 251 | $ | - | |||||||||||||||
Commercial | 10,644 | 14,400 | - | ||||||||||||||||||
Subtotal | 10,886 | 14,651 | - | ||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||
Real Estate Loans | |||||||||||||||||||||
Commercial | 1,723 | 1,723 | 53 | ||||||||||||||||||
Subtotal | 1,723 | 1,723 | 53 | ||||||||||||||||||
Total: | |||||||||||||||||||||
Real Estate Loans | |||||||||||||||||||||
Residential | 242 | 251 | - | ||||||||||||||||||
Commercial | 12,367 | 16,123 | 53 | ||||||||||||||||||
Total Impaired Loans | $ | 12,609 | $ | 16,374 | $ | 53 | |||||||||||||||
Unpaid Principal | |||||||||||||||||||||
Recorded | Principal | Associated | |||||||||||||||||||
Investment | Balance | Allowance | |||||||||||||||||||
31-Dec-12 | (in thousands) | ||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||
Real Estate Loans | |||||||||||||||||||||
Residential | $ | 270 | $ | 286 | $ | - | |||||||||||||||
Commercial | 10,494 | 10,554 | - | ||||||||||||||||||
Commercial Loans | 310 | 310 | - | ||||||||||||||||||
Subtotal | 11,074 | 11,150 | - | ||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||
Real Estate Loans | |||||||||||||||||||||
Commercial | 551 | 551 | 9 | ||||||||||||||||||
Subtotal | 551 | 551 | 9 | ||||||||||||||||||
Total: | |||||||||||||||||||||
Real Estate Loans | |||||||||||||||||||||
Residential | 270 | 286 | - | ||||||||||||||||||
Commercial | 11,045 | 11,105 | 9 | ||||||||||||||||||
Commercial Loans | 310 | 310 | - | ||||||||||||||||||
Total Impaired Loans | $ | 11,625 | $ | 11,701 | $ | 9 | |||||||||||||||
The following information for impaired loans is presented for the year ended December 31, 2013 and 2012: | |||||||||||||||||||||
Average Recorded | Interest Income | ||||||||||||||||||||
Investment | Recognized | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Total: | |||||||||||||||||||||
Real Estate Loans | |||||||||||||||||||||
Residential | $ | 252 | $ | 281 | $ | 5 | $ | 5 | |||||||||||||
Commercial | 10,328 | 12,108 | 236 | 226 | |||||||||||||||||
Commercial Loans | - | 340 | - | 2 | |||||||||||||||||
Total Loans | $ | 10,580 | $ | 12,729 | $ | 241 | $ | 233 | |||||||||||||
Troubled Debt Restructurings on Financing Receivables [Table Text Block] | ' | ||||||||||||||||||||
The following is a summary of troubled debt restructurings granted during the twelve month period ended December 31, 2013 (in thousands): | |||||||||||||||||||||
For the Twelve Months Ended December 31, 2013 | |||||||||||||||||||||
Number | Pre-Modification | Post-Modification | |||||||||||||||||||
Of | Outstanding Recorded | Outstanding Recorded | |||||||||||||||||||
Contracts | Investment | Investment | |||||||||||||||||||
Troubled Debt Restructurings | |||||||||||||||||||||
Real Estate Loans: | |||||||||||||||||||||
Commercial | 5 | $5,147 | $5,147 | ||||||||||||||||||
Classes of the Loan Portfolio Summarized by the Aggregate Risk Rating [Table Text Block] | ' | ||||||||||||||||||||
The following table presents the classes of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard, Doubtful and Loss within the internal risk rating system as of December 31, 2013 and December 31, 2012 (in thousands): | |||||||||||||||||||||
Special | |||||||||||||||||||||
Pass | Mention | Substandard | Doubtful | Loss | Total | ||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Commercial real estate loans | $ | 250,566 | $ | 3,651 | $ | 18,927 | $ | - | $ | - | $ | 273,144 | |||||||||
Commercial loans | 35,745 | - | - | - | - | 35,745 | |||||||||||||||
Total | $ | 286,311 | $ | 3,651 | $ | 18,927 | $ | - | $ | - | $ | 308,889 | |||||||||
Special | |||||||||||||||||||||
Pass | Mention | Substandard | Doubtful | Loss | Total | ||||||||||||||||
31-Dec-12 | |||||||||||||||||||||
Commercial real estate loans | $ | 251,484 | $ | 11,245 | $ | 11,755 | $ | - | $ | - | $ | 274,484 | |||||||||
Commercial loans | 24,427 | 318 | 368 | - | - | 25,113 | |||||||||||||||
Total | $ | 275,911 | $ | 11,563 | $ | 12,123 | $ | - | $ | - | $ | 299,597 | |||||||||
For residential real estate loans, construction loans and consumer loans, the Company evaluates credit quality based on the performance of the individual credits. The following table presents the recorded investment in the loan classes based on payment activity as of December 31, 2013 and December 31, 2012 (in thousands): | |||||||||||||||||||||
Performing | Nonperforming | Total | |||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Residential real estate loans | $ | 157,138 | $ | 1,704 | $ | 158,842 | |||||||||||||||
Construction | 20,551 | - | 20,551 | ||||||||||||||||||
Consumer loans | 15,295 | - | 15,295 | ||||||||||||||||||
Total | $ | 192,984 | $ | 1,704 | $ | 194,688 | |||||||||||||||
Performing | Nonperforming | Total | |||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||
Residential real estate loans | $ | 147,197 | $ | 2,846 | $ | 150,043 | |||||||||||||||
Construction | 13,435 | - | 13,435 | ||||||||||||||||||
Consumer loans | 14,154 | - | 14,154 | ||||||||||||||||||
Total | $ | 174,786 | $ | 2,846 | $ | 177,632 | |||||||||||||||
Loan Portfolio Summarized by the Past Due Status [Table Text Block] | ' | ||||||||||||||||||||
Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans as of December 31, 2013 and December 31, 2012 (in thousands): | |||||||||||||||||||||
Current | 31-60 Days Past Due | 61-90 Days Past Due | Greater than 90 Days Past Due and still accruing | Non-Accrual | Total Past Due and Non-Accrual | Total Loans | |||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Real Estate loans | |||||||||||||||||||||
Residential | $ | 156,066 | $ | 1,018 | $ | 54 | $ | - | $ | 1,704 | $ | 2,776 | $ | 158,842 | |||||||
Commercial | 263,837 | 977 | 487 | - | 7,843 | 9,307 | 273,144 | ||||||||||||||
Construction | 20,551 | - | - | - | - | - | 20,551 | ||||||||||||||
Commercial loans | 35,717 | 28 | - | - | - | 28 | 35,745 | ||||||||||||||
Consumer loans | 15,228 | 57 | 10 | - | - | 67 | 15,295 | ||||||||||||||
Total | $ | 491,399 | $ | 2,080 | $ | 551 | $ | - | $ | 9,547 | $ | 12,178 | $ | 503,577 | |||||||
Current | 31-60 Days Past Due | 61-90 Days Past Due | Greater than 90 Days Past Due and still accruing | Non-Accrual | Total Past Due and Non-Accrual | Total Loans | |||||||||||||||
31-Dec-12 | |||||||||||||||||||||
Real Estate loans | |||||||||||||||||||||
Residential | $ | 146,847 | $ | 94 | $ | 256 | $ | - | $ | 2,846 | $ | 3,196 | $ | 150,043 | |||||||
Commercial | 261,527 | 2,333 | 598 | - | 10,026 | 12,957 | 274,484 | ||||||||||||||
Construction | 13,363 | 72 | - | - | - | 72 | 13,435 | ||||||||||||||
Commercial loans | 24,785 | - | - | - | 328 | 328 | 25,113 | ||||||||||||||
Consumer loans | 14,029 | 114 | 11 | - | - | 125 | 14,154 | ||||||||||||||
Total | $ | 460,551 | $ | 2,613 | $ | 865 | $ | - | $ | 13,200 | $ | 16,678 | $ | 477,229 | |||||||
Allowance for Loan Losses and Recorded Investment in Financing Receivables [Table Text Block] | ' | ||||||||||||||||||||
The following table presents changes in the allowance for loan losses: | |||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Allowance at beginning of period | $ | 5,502 | $ | 5,458 | $ | 5,616 | |||||||||||||||
Charge-offs: | |||||||||||||||||||||
Commercial and all other | -4 | -24 | -2 | ||||||||||||||||||
Real Estate | -2,131 | -2,354 | -1,735 | ||||||||||||||||||
Consumer | -90 | -59 | -109 | ||||||||||||||||||
Total | -2,225 | -2,437 | -1,846 | ||||||||||||||||||
Recoveries: | |||||||||||||||||||||
Commercial and all other | - | - | 5 | ||||||||||||||||||
Real Estate | 9 | 7 | 51 | ||||||||||||||||||
Consumer | 22 | 24 | 57 | ||||||||||||||||||
Total | 31 | 31 | 113 | ||||||||||||||||||
Provision for loan losses | 2,400 | 2,450 | 1,575 | ||||||||||||||||||
Allowance at end of period | $ | 5,708 | $ | 5,502 | $ | 5,458 | |||||||||||||||
The following table presents the allowance for loan losses by the classes of the loan portfolio: | |||||||||||||||||||||
(In thousands) | Residential Real Estate | Commercial Real Estate | Construction | Commercial | Consumer | Total | |||||||||||||||
Beginning balance, December 31, 2012 | $ | 1,797 | $ | 3,183 | $ | 119 | $ | 223 | $ | 180 | $ | 5,502 | |||||||||
Charge Offs | -603 | -1,488 | -40 | -4 | -90 | -2,225 | |||||||||||||||
Recoveries | 9 | - | - | - | 22 | 31 | |||||||||||||||
Provision for loan losses | 238 | 1,330 | 819 | -35 | 48 | 2,400 | |||||||||||||||
Ending balance, December 31, 2013 | $ | 1,441 | $ | 3,025 | $ | 898 | $ | 184 | $ | 160 | $ | 5,708 | |||||||||
Ending balance individually evaluated | $ | - | $ | 53 | $ | - | $ | - | $ | - | $ | 53 | |||||||||
for impairment | |||||||||||||||||||||
Ending balance collectively evaluated | $ | 1,441 | $ | 2,972 | $ | 898 | $ | 184 | $ | 160 | $ | 5,655 | |||||||||
for impairment | |||||||||||||||||||||
(In thousands) | Residential Real Estate | Commercial Real Estate | Construction | Commercial | Consumer | Total | |||||||||||||||
Beginning balance, December 31, 2011 | $ | 1,257 | $ | 3,838 | $ | 72 | $ | 147 | $ | 144 | $ | 5,458 | |||||||||
Charge Offs | -541 | -1,632 | -181 | -24 | -59 | -2,437 | |||||||||||||||
Recoveries | 7 | - | - | - | 24 | 31 | |||||||||||||||
Provision for loan losses | 1,074 | 977 | 228 | 100 | 71 | 2,450 | |||||||||||||||
Ending balance, December 31, 2012 | $ | 1,797 | $ | 3,183 | $ | 119 | $ | 223 | $ | 180 | $ | 5,502 | |||||||||
Ending balance individually evaluated | $ | - | $ | 9 | $ | - | $ | - | $ | - | $ | 9 | |||||||||
for impairment | |||||||||||||||||||||
Ending balance collectively evaluated | $ | 1,797 | $ | 3,174 | $ | 119 | $ | 223 | $ | 180 | $ | 5,493 | |||||||||
for impairment | |||||||||||||||||||||
Premises_and_Equipment_Tables
Premises and Equipment (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Premises and Equipment [Abstract] | ' | |||||
Property, Plant and Equipment [Table Text Block] | ' | |||||
Components of premises and equipment at December 31 are as follows: | ||||||
2013 | 2012 | |||||
(In Thousands) | ||||||
Land and improvements | $ | 2,272 | $ | 2,238 | ||
Buildings and improvements | 9,659 | 9,494 | ||||
Furniture and equipment | 4,218 | 3,998 | ||||
16,149 | 15,730 | |||||
Accumulated depreciation | -9,024 | -8,404 | ||||
$ | 7,125 | $ | 7,326 | |||
Operating Leases of Lessee Disclosure [Table Text Block] | ' | |||||
2014 | $ | 317 | ||||
2015 | 312 | |||||
2016 | 242 | |||||
2017 | 192 | |||||
2018 | 192 | |||||
Thereafter | 1,720 | |||||
$ | 2,975 | |||||
Deposits_Tables
Deposits (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Deposits [Abstract] | ' | ||
Schedule of Maturities of Time Deposits [Table Text Block] | ' | ||
At December 31, 2013, the scheduled maturities of time deposits are as follows (in thousands): | |||
2014 | $ | 105,493 | |
2015 | 48,688 | ||
2016 | 31,307 | ||
2017 | 15,980 | ||
2018 | 9,961 | ||
$ | 211,429 | ||
Borrowings_Tables
Borrowings (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Borrowings [Abstract] | ' | |||||||
Schedule of Short-term Debt [Table Text Block] | ' | |||||||
Short-term borrowings at December 31 consist of the following: | ||||||||
2013 | 2012 | |||||||
( In Thousands) | ||||||||
Securities sold under agreements to repurchase | $ | 36,500 | $ | 28,697 | ||||
Federal Home Loan Bank short-term borrowings | 13,414 | - | ||||||
The outstanding balances and related information of short-term borrowings are summarized as follows: | ||||||||
Years Ended December 31, | ||||||||
2013 | 2012 | |||||||
(Dollars In Thousands) | ||||||||
Average balance during the year | $ | 30,832 | $ | 23,679 | ||||
Average interest rate during the year | 0.21 | % | 0.22 | % | ||||
Maximum month-end balance during the year | $ | 49,914 | $ | 32,386 | ||||
Weighted average interest rate at the end of the year | 0.21 | % | 0.20 | % | ||||
Schedule of Federal Home Loan Bank, Advances, by Branch of FHLB Bank [Table Text Block] | ' | |||||||
Other borrowings consisted of the following at December 31, 2013 and 2012: | ||||||||
2013 | 2012 | |||||||
(In Thousands) | ||||||||
Notes with the FHLB: | ||||||||
Convertible note due May 2013 at 3.015% | $ | - | $ | 5,000 | ||||
Fixed rate note due July 2015 at 4.34% | 7,301 | 7,487 | ||||||
Convertible note due January 2017 at 4.71% | 10,000 | 10,000 | ||||||
Amortizing fixed rate borrowing due January 2018 at 0.91% | 2,460 | - | ||||||
Amortizing fixed rate borrowing due December 2018 at 1.425% | 4,000 | - | ||||||
$ | 23,761 | $ | 22,487 | |||||
Schedule of Contractual Maturities of Other Borrowings [Table Text Block] | ' | |||||||
Contractual maturities of other borrowings at December 31, 2013 are as follows (in thousands): | ||||||||
2015 | $ | 7,301 | ||||||
2017 | 10,000 | |||||||
2018 | 6,460 | |||||||
$ | 23,761 | |||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Taxes [Abstract] | ' | ||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | ' | ||||||||
Years Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
(In Thousands) | |||||||||
Current | $ | 2,566 | $ | 2,612 | $ | 2,683 | |||
Deferred | 140 | 424 | -104 | ||||||
$ | 2,706 | $ | 3,036 | $ | 2,579 | ||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | ||||||||
Percentage of Income | |||||||||
before Income Taxes | |||||||||
Years Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
Tax at statutory rates | 34.0 | % | 34.0 | % | 34.0 | % | |||
Tax exempt interest income, net of interest expense disallowance | -6.7 | -6.9 | -7.5 | ||||||
Incentive stock options | 0.4 | 0.3 | 0.5 | ||||||
Earnings and proceeds on life insurance | -3.7 | -1.2 | -1.2 | ||||||
Other | 0.2 | 0.3 | 0.2 | ||||||
24.2 | % | 26.5 | % | 26.0 | % | ||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | ||||||||
2013 | 2012 | ||||||||
(In Thousands) | |||||||||
Deferred tax assets: | |||||||||
Allowance for loan losses | $ | 1,941 | $ | 1,871 | |||||
Deferred compensation | 496 | 500 | |||||||
Purchase price adjustment | 1,215 | 1,458 | |||||||
Other | 303 | 292 | |||||||
Foreclosed real estate valuation allowance | 54 | 48 | |||||||
Net unrealized loss on securities | 1,337 | - | |||||||
Total Deferred Tax Assets | 5,346 | 4,169 | |||||||
Deferred tax liabilities: | |||||||||
Premises and equipment | 327 | 334 | |||||||
Deferred loan fees | 200 | 213 | |||||||
Net unrealized gains on securities | - | 1,443 | |||||||
Total Deferred Tax Liabilities | 527 | 1,990 | |||||||
Net Deferred Tax Asset | $ | 4,819 | $ | 2,179 | |||||
Regulatory_Matters_and_Stockho1
Regulatory Matters and Stockholders' Equity (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Regulatory Matters and Stockholders' Equity [Abstract] | ' | |||||||||||||||
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | ' | |||||||||||||||
To be Well Capitalized | ||||||||||||||||
under Prompt | ||||||||||||||||
For Capital Adequacy | Corrective Action | |||||||||||||||
Actual | Purposes | Provision | ||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||
(Dollars in Thousands) | ||||||||||||||||
As of December 31, 2013: | ||||||||||||||||
Total capital (to risk-weighted assets) | $ | 85,667 | 16.86 | % | ≥$40,660 | ≥8.00 | % | ≥$50,825 | ≥10.00 | % | ||||||
Tier 1 capital (to risk-weighted assets) | 79,959 | 15.73 | ≥20,330 | ≥4.00 | ≥30,495 | ≥6.00 | ||||||||||
Tier 1 capital (to average assets) | 79,959 | 11.51 | ≥27,792 | ≥4.00 | ≥34,740 | ≥5.00 | ||||||||||
As of December 31, 2012: | ||||||||||||||||
Total capital (to risk-weighted assets) | $ | 80,747 | 16.74 | % | ≥$38,596 | ≥8.00 | % | ≥$48,245 | ≥10.00 | % | ||||||
Tier 1 capital (to risk-weighted assets) | 75,245 | 15.60 | ≥19,298 | ≥4.00 | ≥28,947 | ≥6.00 | ||||||||||
Tier 1 capital (to average assets) | 75,245 | 11.20 | ≥26,862 | ≥4.00 | ≥33,577 | ≥5.00 | ||||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Stock-Based Compensation [Abstract] | ' | |||||||||||||||||||||||
Summary of Stock Option Activity [Table Text Block] | ' | |||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
Weighted | Weighted | Weighted | ||||||||||||||||||||||
Average | Average | Average | Average | Average | Aggregate | |||||||||||||||||||
Exercise | Intrinsic | Exercise | Intrinsic | Exercise | Intrinsic | |||||||||||||||||||
Options | Price | Value | Options | Price | Value | Options | Price | Value | ||||||||||||||||
Outstanding, beginning of year | 225,670 | $ | 26.27 | 229,836 | $ | 25.85 | 207,534 | $ | 25.93 | $ | ||||||||||||||
Granted | 28,600 | 27.07 | 30,250 | 27.05 | 31,900 | 24.94 | ||||||||||||||||||
Exercised | -24,127 | 23.83 | -20,435 | 22.19 | -2,833 | 17.90 | ||||||||||||||||||
Forfeited | -10,603 | 28.92 | -13,981 | 26.88 | -6,765 | 27.50 | ||||||||||||||||||
Outstanding, end of year | 219,540 | $ | 26.64 | $ | 146,970 | 225,670 | $ | 26.27 | $ | 256,499 | 229,836 | $ | 25.85 | $ | 113,352 | |||||||||
Exercisable, end of year | 190,940 | $ | 26.58 | $ | 146,900 | 196,489 | $ | 26.15 | $ | 256,499 | 199,005 | $ | 25.99 | $ | 112,152 | |||||||||
Schedule of Fair Value Assumptions [Table Text Block] | ' | |||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
Dividend yield | 3.49% | 3.27% | 3.30% | |||||||||||||||||||||
Expected life | 10 years | 10 years | 7 years | |||||||||||||||||||||
Expected volatility | 25.91% | 25.37% | 25.35% | |||||||||||||||||||||
Risk-free interest rate | 3.01% | 1.76% | 1.39% | |||||||||||||||||||||
Weighted average fair value of options granted | $ | 5.72 | $ | 5.61 | $ | 4.7 | ||||||||||||||||||
Schedule of Outstanding Stock Options [Table Text Block] | ' | |||||||||||||||||||||||
Average | Average | |||||||||||||||||||||||
Options | Exercise | Remaining | Options | Exercise | ||||||||||||||||||||
Outstanding | Price | Life, Years | Exercisable | Price | ||||||||||||||||||||
15,594 | $ | 27.27 | 1.0 | 15,594 | $ | 27.27 | ||||||||||||||||||
20,796 | 27.62 | 2.3 | 20,796 | 27.62 | ||||||||||||||||||||
18,700 | 28.64 | 3.0 | 18,700 | 28.64 | ||||||||||||||||||||
18,700 | 28.41 | 4.0 | 18,700 | 28.41 | ||||||||||||||||||||
19,800 | 25.00 | 5.0 | 19,800 | 25.00 | ||||||||||||||||||||
1,100 | 26.27 | 5.3 | 1,100 | 26.27 | ||||||||||||||||||||
18,700 | 25.99 | 6.0 | 18,700 | 25.99 | ||||||||||||||||||||
1,100 | 24.44 | 6.2 | 1,100 | 24.44 | ||||||||||||||||||||
23,650 | 25.25 | 7.0 | 23,650 | 25.25 | ||||||||||||||||||||
25,850 | 24.97 | 8.0 | 25,850 | 24.97 | ||||||||||||||||||||
26,950 | 27.05 | 9.0 | 26,950 | 27.05 | ||||||||||||||||||||
1,100 | 27.55 | 9.0 | - | - | ||||||||||||||||||||
2,000 | 28.95 | 9.7 | - | - | ||||||||||||||||||||
25,500 | 26.90 | 10.0 | - | - | ||||||||||||||||||||
Total | 219,540 | 190,940 | ||||||||||||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Earnings Per Share [Table Text Block] | ' | ||||||||
Years Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
(In Thousands, Except Per Share Data | |||||||||
Numerator, net income | $ | 8,465 | $ | 8,403 | $ | 7,356 | |||
Denominator: | |||||||||
Denominator for basic earnings per share, weighted | |||||||||
average shares | 3,627 | 3,608 | 3,380 | ||||||
Effect of dilutive securities, employee stock options | 5 | 6 | 3 | ||||||
Denominator for diluted earnings per share, adjusted weighted average | |||||||||
shares and assumed conversions | 3,632 | 3,614 | 3,383 | ||||||
Basic earnings per common share | $ | 2.33 | $ | 2.33 | $ | 2.17 | |||
Diluted earnings per common share | $ | 2.33 | $ | 2.33 | $ | 2.17 | |||
OffBalance_Sheet_Financial_Ins1
Off-Balance Sheet Financial Instruments and Guarantees (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Off-Balance Sheet Financial Instruments and Guarantees [Abstract] | ' | |||||
Schedule of Fair Value, Off-balance Sheet Risks [Table Text Block] | ' | |||||
December 31, | ||||||
2013 | 2012 | |||||
(In Thousands) | ||||||
Commitments to grant loans | $ | 22,845 | $ | 17,582 | ||
Unfunded commitments under lines of credit | 42,575 | 42,735 | ||||
Standby letters of credit | 5,701 | 6,128 | ||||
$ | 71,121 | $ | 66,445 | |||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||||||
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | ' | ||||||||||||||
Fair Value Measurement Reporting Date using | |||||||||||||||
Description | Total | Level 1 | Level 2 | Level 3 | |||||||||||
31-Dec-13 | |||||||||||||||
Available for Sale: | |||||||||||||||
U.S. Government agencies | $ | 33,413 | $ | - | $ | 33,413 | $ | - | |||||||
States and political subdivisions | 59,030 | - | 59,030 | - | |||||||||||
Corporate obligations | 3,711 | - | 3,711 | - | |||||||||||
Mortgage-backed securities-government | |||||||||||||||
sponsored entities | 61,650 | - | 61,650 | - | |||||||||||
Equity securities-financial services | 328 | 328 | - | - | |||||||||||
Total available for sale | $ | 158,132 | $ | 328 | $ | 157,804 | $ | - | |||||||
31-Dec-12 | |||||||||||||||
Available for Sale: | |||||||||||||||
U.S. Government agencies | $ | 13,092 | $ | - | $ | 13,092 | $ | - | |||||||
States and political subdivisions | 58,786 | - | 58,786 | - | |||||||||||
Corporate obligations | 8,868 | - | 8,868 | - | |||||||||||
Mortgage-backed securities-government | |||||||||||||||
sponsored entities | 64,325 | - | 64,325 | - | |||||||||||
Equity securities-financial services | 319 | 319 | - | - | |||||||||||
Total available for sale | $ | 145,390 | $ | 319 | $ | 145,071 | $ | - | |||||||
Fair Value, Assets Measured on Nonrecurring Basis [Table Text Block] | ' | ||||||||||||||
Fair Value Measurement Reporting Date using | |||||||||||||||
Description | Total | Level 1 | Level 2 | Level 3 | |||||||||||
31-Dec-13 | |||||||||||||||
Impaired Loans | $ | 12,556 | $ | - | $ | - | $ | 12,556 | |||||||
Foreclosed real estate | 1,009 | - | - | 1,009 | |||||||||||
31-Dec-12 | |||||||||||||||
Impaired Loans | $ | 11,616 | $ | - | $ | - | $ | 11,616 | |||||||
Foreclosed real estate | 852 | - | - | 852 | |||||||||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block] | ' | ||||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||
(In thousands) | Fair Value Estimate | Valuation Techniques | Unobservable Input | Range (Weighted Average) | |||||||||||
31-Dec-13 | |||||||||||||||
Impaired loans | $ | 12,556 | Appraisal of collateral(1) | Appraisal adjustments(2) | 10 - 15% (10.67)% | ||||||||||
Foreclosed real estate owned | $ | 1,009 | Appraisal of collateral(1) | Liquidation Expenses(2) | 10% | ||||||||||
Fair Value, by Balance Sheet Grouping [Table Text Block] | ' | ||||||||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||||
Carrying | Fair | ||||||||||||||
Amount | Value | Level 1 | Level 2 | Level 3 | |||||||||||
Financial assets: | |||||||||||||||
Cash and cash equivalents | $ | 7,863 | $ | 7,863 | $ | 7,863 | $ | - | $ | - | |||||
Securities | 158,306 | 158,309 | 328 | 157,981 | - | ||||||||||
Loans receivable, net | 497,389 | 506,113 | - | - | 506,113 | ||||||||||
Mortgage servicing rights | 289 | 289 | - | 289 | - | ||||||||||
Regulatory stock | 2,877 | 2,877 | 2,877 | - | - | ||||||||||
Bank owned life insurance | 17,790 | 17,790 | 17,790 | - | - | ||||||||||
Accrued interest receivable | 2,422 | 2,422 | 2,422 | - | - | ||||||||||
Financial liabilities: | |||||||||||||||
Deposits | 541,182 | 542,123 | 329,753 | - | 212,370 | ||||||||||
Short-term borrowings | 49,914 | 49,914 | 49,914 | - | - | ||||||||||
Other borrowings | 23,761 | 25,923 | - | - | 25,923 | ||||||||||
Accrued interest payable | 1,022 | 1,022 | 1,022 | - | - | ||||||||||
Off-balance sheet financial instruments: | |||||||||||||||
Commitments to extend credit and | - | - | - | - | - | ||||||||||
outstanding letters of credit | |||||||||||||||
Fair Value Measurements at December 31, 2012 | |||||||||||||||
Carrying | Fair | ||||||||||||||
Amount | Value | Level 1 | Level 2 | Level 3 | |||||||||||
Financial assets: | |||||||||||||||
Cash and cash equivalents | $ | 12,295 | $ | 12,295 | $ | 12,295 | $ | - | $ | - | |||||
Securities | 145,563 | 145,567 | 319 | 145,248 | - | ||||||||||
Loans receivable, net | 471,208 | 485,848 | - | - | 485,848 | ||||||||||
Mortgage servicing rights | 243 | 243 | - | 243 | - | ||||||||||
Regulatory stock | 2,630 | 2,630 | 2,630 | - | - | ||||||||||
Bank owned life insurance | 15,357 | 15,357 | 15,357 | - | - | ||||||||||
Accrued interest receivable | 2,393 | 2,393 | 2,393 | - | - | ||||||||||
Financial liabilities: | |||||||||||||||
Deposits | 524,425 | 526,080 | 313,165 | - | 212,915 | ||||||||||
Short-term borrowings | 28,697 | 28,697 | 28,697 | - | - | ||||||||||
Other borrowings | 22,487 | 25,426 | - | - | 25,426 | ||||||||||
Accrued interest payable | 1,242 | 1,242 | 1,242 | - | - | ||||||||||
Off-balance sheet financial instruments: | |||||||||||||||
Commitments to extend credit and | - | - | - | - | - | ||||||||||
outstanding letters of credit | |||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Accumulated Other Comprehensive Income [Abstract] | ' | ||
Components of Accumulated Other Comprehensive Income [Table Text Block] | ' | ||
Unrealized gains (losses) on available for sale | |||
securities (a) | |||
Balance as of December 31, 2012 | $ | ||
2,797 | |||
Other comprehensive loss before reclassification | -4,818 | ||
Amount reclassified from accumulated other comprehensive income (loss) | -581 | ||
Total other comprehensive loss | -5,399 | ||
Balance as of December 31, 2013 | $ | ||
-2,602 | |||
Items Reclassified Out of Each Component of OCI [Table Text Block] | ' | ||
Amount Reclassified | |||
From Accumulated | |||
Other | |||
Comprehensive | Affected Line Item in | ||
Income (a) | the Statement Where Net Income is Presented | ||
Details about other comprehensive income | |||
Unrealized gains on available for sale securities | |||
$ 881 | Net realized gains on sales of securities | ||
(300) | Income tax expense | ||
$ 581 | Net of tax | ||
Amounts in parentheses indicate debits to net income | |||
Acquisition_of_North_Penn_Banc1
Acquisition of North Penn Bancorp, Inc. (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Acquisition of North Penn Bancorp, Inc. [Abstract] | ' | ||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | ' | ||||
Total purchase price | $ | 25,396 | |||
Net Assets Acquired: | |||||
Cash | $ | 15,192 | |||
Securities available for sale | 12,671 | ||||
Restricted investments | 985 | ||||
Loans | 118,336 | ||||
Accrued interest receivable | 566 | ||||
Premises & equipment, net | 2,931 | ||||
Core deposit intangible | 895 | ||||
Deferred tax assets | 2,715 | ||||
Other assets | 5,403 | ||||
Time deposits | -51,936 | ||||
Deposits other than time deposits | -83,498 | ||||
Borrowings | -7,776 | ||||
Accrued interest payable | -203 | ||||
Other liabilities | -600 | ||||
15,681 | |||||
Goodwill resulting from North Penn Merger | $ | 9,715 | |||
Norwood_Financial_Corp_Parent_1
Norwood Financial Corp (Parent Company Only) Financial Information (Tables) (Parent Company [Member]) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Parent Company [Member] | ' | |||||||||
Condensed Financial Statements, Captions [Line Items] | ' | |||||||||
Parent Company Only - Balance Sheets [Table Text Block] | ' | |||||||||
December 31, | ||||||||||
2013 | 2012 | |||||||||
(In Thousands) | ||||||||||
ASSETS | ||||||||||
Cash on deposit in bank subsidiary | $ | 1,205 | $ | 1,120 | ||||||
Securities available for sale | 328 | 319 | ||||||||
Investment in bank subsidiary | 87,589 | 88,412 | ||||||||
Other assets | 3,835 | 3,591 | ||||||||
Total assets | $ | 92,957 | $ | 93,442 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||
Liabilities | $ | 1,093 | $ | 1,021 | ||||||
Stockholders’ equity | 91,864 | 92,421 | ||||||||
Total liabilities and stockholders' equity | $ | 92,957 | $ | 93,442 | ||||||
Parent Company Only - Statements of Income [Table Text Block] | ' | |||||||||
STATEMENTS OF INCOME | ||||||||||
Years Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Income: | (In Thousands) | |||||||||
Dividends from bank subsidiary | $ | 4,216 | $ | 3,971 | $ | 16,496 | ||||
Other interest income | 9 | 6 | 9 | |||||||
Net realized gain on sales of securities | - | 73 | - | |||||||
4,225 | 4,050 | 16,505 | ||||||||
Expenses | 267 | 296 | 980 | |||||||
3,958 | 3,754 | 15,525 | ||||||||
Income tax benefit | -88 | -74 | -290 | |||||||
4,046 | 3,828 | 15,815 | ||||||||
Equity in undistributed earnings of subsidiary | 4,419 | 4,575 | -8,459 | |||||||
Net Income | $ | 8,465 | $ | 8,403 | $ | 7,356 | ||||
Comprehensive Income | $ | 3,066 | $ | 7,885 | $ | 9,534 | ||||
Parent Company Only - Statements of Cash Flows [Table Text Block] | ' | |||||||||
STATEMENTS OF CASH FLOWS | ||||||||||
Years Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
(In Thousands) | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||
Net income | $ | 8,465 | $ | 8,403 | $ | 7,356 | ||||
Adjustments to reconcile net income to | ||||||||||
net cash provided by operating activities: | ||||||||||
Undistributed earnings of bank subsidiary | -4,419 | -4,575 | 8,459 | |||||||
Net gains on sales of securities | - | -68 | -- | |||||||
Other, net | -247 | -181 | -506 | |||||||
Net Cash Provided by Operating Activities | 3,799 | 3,579 | 15,309 | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||
Proceeds from sale of securities | - | 114 | - | |||||||
Outlays for business acquisitions | - | - | -10,518 | |||||||
Purchase of securities | - | (185 | - | |||||||
Net Cash Used in Investing Activities | - | -71 | -10,518 | |||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||
Stock options exercised | 575 | 455 | 51 | |||||||
Tax benefit of stock options exercised | 39 | 30 | 5 | |||||||
ESOP purchase of shares from treasury stock | 146 | 149 | 153 | |||||||
Acquisition of treasury stock | -319 | -320 | -602 | |||||||
Cash dividends paid | -4,155 | -3,932 | -3,514 | |||||||
Net Cash Used in Financing Activities | -3,714 | -3,618 | -3,907 | |||||||
Net Increase (Decrease) in Cash and Cash Equivalents | 85 | -110 | 884 | |||||||
CASH AND CASH EQUIVALENTS - BEGINNING | 1,120 | 1,230 | 346 | |||||||
CASH AND CASH EQUIVALENTS - ENDING | $ | 1,205 | $ | 1,120 | $ | 1,230 | ||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Mortgage Servicing Rights) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Summary of Significant Accounting Policies [Abstract] | ' | ' |
Servicing Assets | $289 | $243 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Useful Life of Premises and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Minimum [Member] | Building and improvements [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '10 years |
Minimum [Member] | Furniture and equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '3 years |
Maximum [Member] | Building and improvements [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '40 years |
Maximum [Member] | Furniture and equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '10 years |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Goodwill) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Summary of Significant Accounting Policies [Abstract] | ' | ' |
Goodwill | $9,715 | $9,715 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies (Intangible Assets) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Intangible Assets, Net (Excluding Goodwill) | $510 | $647 | ' |
Finite-Lived Intangible Asset, Useful Life | '10 years | ' | ' |
Amortization of Intangible Assets | 137 | 153 | 108 |
Amortization Expense for the Core Deposit Intangible, Next Twelve Months | 121 | ' | ' |
Amortization Expense for the Core Deposit Intangible, Year Two | 104 | ' | ' |
Amortization Expense for the Core Deposit Intangible, Year Three | 88 | ' | ' |
Amortization Expense for the Core Deposit Intangible, Year Four | 72 | ' | ' |
Amortization Expense for the Core Deposit Intangible, Year Five | 56 | ' | ' |
Amortization Expense for the Core Deposit Intangible, Year Six | 39 | ' | ' |
Amortization Expense for the Core Deposit Intangible, Year Seven | 23 | ' | ' |
Amortization Expense for the Core Deposit Intangible, Year Eight | 7 | ' | ' |
Amortization Expense for the Core Deposit Intangible, Total | 510 | ' | ' |
North Penn Bancorp, Inc. [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Intangible Assets, Net (Excluding Goodwill) | 510 | 647 | ' |
Finite-Lived Intangible Assets, Accumulated Amortization | $385 | $248 | ' |
Securities_Amortized_Cost_and_
Securities (Amortized Cost and Fair Values of Securities) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Investments [Line Items] | ' | ' |
Available for Sale, Amortized Cost | $162,072 | $141,150 |
Available-for-sale Securities, Gross Unrealized Gains | 865 | 4,446 |
Available for Sale, Gross Unrealized Losses | -4,805 | -206 |
Available for Sale, Fair Value | 158,132 | 145,390 |
Held to Maturity, Amortized Cost | 174 | 173 |
Held to Maturity, Fair Value | 177 | 177 |
U.S. Government Agencies [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Available for Sale, Amortized Cost | 34,471 | 13,076 |
Available-for-sale Securities, Gross Unrealized Gains | ' | 36 |
Available for Sale, Gross Unrealized Losses | -1,058 | -20 |
Available for Sale, Fair Value | 33,413 | 13,092 |
States and political subdivisions [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Available for Sale, Amortized Cost | 60,174 | 55,864 |
Available-for-sale Securities, Gross Unrealized Gains | 650 | 2,995 |
Available for Sale, Gross Unrealized Losses | -1,794 | -73 |
Available for Sale, Fair Value | 59,030 | 58,786 |
Held to Maturity, Amortized Cost | 174 | 173 |
Held to Maturity, Gross Unrealized Gains | 3 | 4 |
Held to Maturity, Fair Value | 177 | 177 |
Corporate obligations [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Available for Sale, Amortized Cost | 3,667 | 8,521 |
Available-for-sale Securities, Gross Unrealized Gains | 84 | 347 |
Available for Sale, Gross Unrealized Losses | -40 | ' |
Available for Sale, Fair Value | 3,711 | 8,868 |
Mortgage-backed securities-government sponsored entities [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Available for Sale, Amortized Cost | 63,467 | 63,397 |
Available-for-sale Securities, Gross Unrealized Gains | 81 | 1,041 |
Available for Sale, Gross Unrealized Losses | -1,898 | -113 |
Available for Sale, Fair Value | 61,650 | 64,325 |
Equity securities-financial services [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Available for Sale, Amortized Cost | 293 | 292 |
Available-for-sale Securities, Gross Unrealized Gains | 50 | 27 |
Available for Sale, Gross Unrealized Losses | -15 | ' |
Available for Sale, Fair Value | $328 | $319 |
Securities_Investments_Gross_U
Securities (Investments' Gross Unrealized Losses and Fair Value) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Investments [Line Items] | ' | ' |
Less than 12 Months, Fair Value | $107,091 | $30,076 |
Less than 12 Months, Unrealized Losses | -3,984 | -206 |
12 Months or More, Fair Value | 12,638 | ' |
12 Months or More, Unrealized Losses | -821 | ' |
Total, Fair Value | 119,729 | 30,076 |
Total, Unrealized Losses | -4,805 | -206 |
U.S. Government Agencies [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Less than 12 Months, Fair Value | 32,481 | 7,056 |
Less than 12 Months, Unrealized Losses | -990 | -20 |
12 Months or More, Fair Value | 932 | ' |
12 Months or More, Unrealized Losses | -68 | ' |
Total, Fair Value | 33,413 | 7,056 |
Total, Unrealized Losses | -1,058 | -20 |
States and political subdivisions [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Less than 12 Months, Fair Value | 26,281 | 5,821 |
Less than 12 Months, Unrealized Losses | -1,415 | -73 |
12 Months or More, Fair Value | 4,228 | ' |
12 Months or More, Unrealized Losses | -379 | ' |
Total, Fair Value | 30,509 | 5,821 |
Total, Unrealized Losses | -1,794 | -73 |
Corporate obligations [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Less than 12 Months, Fair Value | 1,145 | ' |
Less than 12 Months, Unrealized Losses | -40 | ' |
Total, Fair Value | 1,145 | ' |
Total, Unrealized Losses | -40 | ' |
Mortgage-backed securities-government sponsored entities [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Less than 12 Months, Fair Value | 47,014 | 17,199 |
Less than 12 Months, Unrealized Losses | -1,524 | -113 |
12 Months or More, Fair Value | 7,478 | ' |
12 Months or More, Unrealized Losses | -374 | ' |
Total, Fair Value | 54,492 | 17,199 |
Total, Unrealized Losses | -1,898 | -113 |
Equity securities-financial services [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Less than 12 Months, Fair Value | 170 | ' |
Less than 12 Months, Unrealized Losses | -15 | ' |
Total, Fair Value | 170 | ' |
Total, Unrealized Losses | ($15) | ' |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | 1 | ' |
Total Debt Securities [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | 17 | ' |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | 123 | ' |
Securities_Securities_by_Contr
Securities (Securities by Contractual Maturity) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Securities [Abstract] | ' | ' |
Available for Sale, Amortized Cost, Due in one year or less | $799 | ' |
Available for Sale, Amortized Cost, Due after one year through five years | 15,837 | ' |
Available for Sale, Amortized Cost, Due after five years through ten years | 38,543 | ' |
Available for Sale, Amortized Cost, Due after ten years | 43,133 | ' |
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis, Total | 98,312 | ' |
Available for Sale, Amortized Cost, Mortgage-backed securities- government sponsored agencies | 63,467 | ' |
Available for Sale, Amortized Cost, Total | 161,779 | ' |
Available for Sale, Fair Value, Due in one year or less | 803 | ' |
Available for Sale, Fair Value, Due after one year through five years | 15,646 | ' |
Available for Sale, Fair Value, Due after five years through ten years | 37,740 | ' |
Available for Sale, Fair Value, Due after ten years | 41,965 | ' |
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Total | 96,154 | ' |
Available for Sale, Fair Value, Mortgage-backed securities- government sponsored agencies | 61,650 | ' |
Available for Sale, Fair Value, Total | 157,804 | ' |
Held to Maturity, Amortized Cost, Due in one year or less | 174 | ' |
Held-to-maturity Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis, Total | 174 | ' |
Held-to-maturity Securities, Total | 174 | 173 |
Held to Maturity, Fair Value, Due in one year or less | 177 | ' |
Held-to-maturity Securities, Debt Maturities, Single Maturity Date, Fair Value, Total | 177 | ' |
Held to Maturity, Fair Value | $177 | $177 |
Securities_Gross_Realized_Gain
Securities (Gross Realized Gains and Losses on Sales of Securities Available-for-Sale) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Securities [Abstract] | ' | ' | ' |
Gross realized gains | $908 | $1,419 | $983 |
Gross realized losses | 27 | 0 | 10 |
Proceeds from sale of securities | 42,348 | 40,914 | 32,146 |
Available-for-sale Securities Pledged as Collateral | $94,352 | $71,497 | ' |
Loans_Receivable_and_Allowance2
Loans Receivable and Allowance for Loan Losses (Composition of Loans Receivable) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Loans and Leases Receivable, Gross | $503,577 | $477,229 | ' | ' |
Deferred fees (net) | -480 | -519 | ' | ' |
Loans receivable, net of unearned income | 503,097 | 476,710 | ' | ' |
Allowance for loan losses | -5,708 | -5,502 | -5,458 | -5,616 |
Loans and Leases Receivable, Net Reported Amount | 497,389 | 471,208 | ' | ' |
Percent of Loans | 100.00% | 100.00% | ' | ' |
Residential Real Estate Loans [Member] | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Loans and Leases Receivable, Gross | 158,842 | 150,043 | ' | ' |
Allowance for loan losses | -1,441 | -1,797 | -1,257 | ' |
Percent of Loans | 31.60% | 31.40% | ' | ' |
Commercial Real Estate Loans [Member] | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Loans and Leases Receivable, Gross | 273,144 | 274,484 | ' | ' |
Allowance for loan losses | -3,025 | -3,183 | -3,838 | ' |
Percent of Loans | 54.20% | 57.50% | ' | ' |
Construction Real Estate Loans [Member] | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Loans and Leases Receivable, Gross | 20,551 | 13,435 | ' | ' |
Allowance for loan losses | -898 | -119 | -72 | ' |
Percent of Loans | 4.10% | 2.80% | ' | ' |
Commercial Loans [Member] | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Loans and Leases Receivable, Gross | 35,745 | 25,113 | ' | ' |
Allowance for loan losses | -184 | -223 | -147 | ' |
Percent of Loans | 7.10% | 5.30% | ' | ' |
Consumer Loans [Member] | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Loans and Leases Receivable, Gross | 15,295 | 14,154 | ' | ' |
Allowance for loan losses | ($160) | ($180) | ($144) | ' |
Percent of Loans | 3.00% | 3.00% | ' | ' |
Loans_Receivable_and_Allowance3
Loans Receivable and Allowance for Loan Losses (Impaired Loans Acquired in North Penn Acquisition) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | 31-May-11 |
In Thousands, unless otherwise specified | North Penn Bancorp, Inc. [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Unpaid principal balance | ' | ' | $1,936 |
Interest | ' | ' | 1,669 |
Contractual cash flows | ' | ' | 3,605 |
Non-accretable discount | ' | ' | -1,724 |
Expected cash flows | ' | ' | 1,881 |
Accretable discount | 20 | 76 | -329 |
Estimated fair value | ' | ' | $1,552 |
Loans_Receivable_and_Allowance4
Loans Receivable and Allowance for Loan Losses (Changes in the Accretable Yield for Purchased Credit Impaired Loans) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Loans Receivable and Allowance for Loan Losses [Abstract] | ' |
Balance at beginning of period | $76 |
Accretion | -56 |
Balance at end of period | $20 |
Loans_Receivable_and_Allowance5
Loans Receivable and Allowance for Loan Losses (Loans Acquired and Accounted for in Accordance with ASC 310-30) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Loans Receivable and Allowance for Loan Losses [Abstract] | ' | ' |
Acquired Loans with Specific Evidence of Deterioration in Credit Quality, Outstanding Balance | $1,110 | $1,145 |
Acquired Loans with Specific Evidence of Deterioration in Credit Quality, Carrying Amount | $1,090 | $1,069 |
Loans_Receivable_and_Allowance6
Loans Receivable and Allowance for Loan Losses (Loans Individually and Collectively Evaluated for Impairment) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Individually evaluated for impairment | $11,519 | $10,556 |
Loans acquired with deteriorated credit quality | 1,090 | 1,069 |
Collectively evaluated for impairment | 490,968 | 465,604 |
Loans and Leases Receivable, Gross | 503,577 | 477,229 |
Residential Real Estate Loans [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans acquired with deteriorated credit quality | 242 | 270 |
Collectively evaluated for impairment | 158,600 | 149,773 |
Loans and Leases Receivable, Gross | 158,842 | 150,043 |
Commercial Real Estate Loans [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Individually evaluated for impairment | 11,519 | 10,246 |
Loans acquired with deteriorated credit quality | 848 | 799 |
Collectively evaluated for impairment | 260,777 | 263,439 |
Loans and Leases Receivable, Gross | 273,144 | 274,484 |
Construction Real Estate Loans [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Collectively evaluated for impairment | 20,551 | 13,435 |
Loans and Leases Receivable, Gross | 20,551 | 13,435 |
Commercial Loans [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Individually evaluated for impairment | ' | 310 |
Collectively evaluated for impairment | 35,745 | 24,803 |
Loans and Leases Receivable, Gross | 35,745 | 25,113 |
Consumer Loans [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Collectively evaluated for impairment | 15,295 | 14,154 |
Loans and Leases Receivable, Gross | $15,295 | $14,154 |
Loans_Receivable_and_Allowance7
Loans Receivable and Allowance for Loan Losses (Impaired Loans and Related Interest Income by Loan Portfolio Class) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Financing Receivable, Impaired [Line Items] | ' | ' |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | $10,886 | $11,074 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 1,723 | 551 |
Impaired Financing Receivable, Recorded Investment | 12,609 | 11,625 |
Unpaid Principal Balance, With no related allowance recorded | 14,651 | 11,150 |
Unpaid Principal Balance, With an allowance recorded | 1,723 | 551 |
Unpaid Principal Balance, Total | 16,374 | 11,701 |
Associated Allowance | 53 | 9 |
Average Recorded Investment, Total | 10,580 | 12,729 |
Interest Income Recognized, Total | 241 | 233 |
Residential Real Estate Loans [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 242 | 270 |
Impaired Financing Receivable, Recorded Investment | 242 | 270 |
Unpaid Principal Balance, With no related allowance recorded | 251 | 286 |
Unpaid Principal Balance, Total | 251 | 286 |
Average Recorded Investment, Total | 252 | 281 |
Interest Income Recognized, Total | 5 | 5 |
Commercial Real Estate Loans [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 10,644 | 10,494 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 1,723 | 551 |
Impaired Financing Receivable, Recorded Investment | 12,367 | 11,045 |
Unpaid Principal Balance, With no related allowance recorded | 14,400 | 10,554 |
Unpaid Principal Balance, With an allowance recorded | 1,723 | 551 |
Unpaid Principal Balance, Total | 16,123 | 11,105 |
Associated Allowance | 53 | 9 |
Average Recorded Investment, Total | 10,328 | 12,108 |
Interest Income Recognized, Total | 236 | 226 |
Commercial Loans [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | ' | 310 |
Impaired Financing Receivable, Recorded Investment | ' | 310 |
Unpaid Principal Balance, With no related allowance recorded | ' | 310 |
Unpaid Principal Balance, Total | ' | 310 |
Average Recorded Investment, Total | ' | 340 |
Interest Income Recognized, Total | ' | $2 |
Loans_Receivable_and_Allowance8
Loans Receivable and Allowance for Loan Losses (Troubled Debt Restructurings) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Financing Receivable, Impaired [Line Items] | ' | ' |
Financing Receivable, Modifications, Post-Modification Recorded Investment | $9,200 | $5,600 |
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down | 53 | 9 |
Commercial Real Estate Loans [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Financing Receivable, Modifications, Number of Contracts | 5 | ' |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | 5,147 | ' |
Financing Receivable, Modifications, Post-Modification Recorded Investment | $5,147 | ' |
Loans_Receivable_and_Allowance9
Loans Receivable and Allowance for Loan Losses (Classes of the Loan Portfolio Summarized by the Aggregate Risk Rating) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Pass [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Financing Receivable, Net | $286,311 | $275,911 |
Special Mention [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Financing Receivable, Net | 3,651 | 11,563 |
Substandard [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Financing Receivable, Net | 18,927 | 12,123 |
Performing Financing Receivable [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Financing Receivable, Net | 192,984 | 174,786 |
Nonperforming Financing Receivable [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Financing Receivable, Net | 1,704 | 2,846 |
Total Summarized by Aggregate Risk Rating [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Financing Receivable, Net | 308,889 | 299,597 |
Total Summarized by Performance of Individual Credits [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Financing Receivable, Net | 194,688 | 177,632 |
Commercial Real Estate Loans [Member] | Pass [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Financing Receivable, Net | 250,566 | 251,484 |
Commercial Real Estate Loans [Member] | Special Mention [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Financing Receivable, Net | 3,651 | 11,245 |
Commercial Real Estate Loans [Member] | Substandard [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Financing Receivable, Net | 18,927 | 11,755 |
Commercial Real Estate Loans [Member] | Total Summarized by Aggregate Risk Rating [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Financing Receivable, Net | 273,144 | 274,484 |
Commercial Loans [Member] | Pass [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Financing Receivable, Net | 35,745 | 24,427 |
Commercial Loans [Member] | Special Mention [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Financing Receivable, Net | ' | 318 |
Commercial Loans [Member] | Substandard [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Financing Receivable, Net | ' | 368 |
Commercial Loans [Member] | Total Summarized by Aggregate Risk Rating [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Financing Receivable, Net | 35,745 | 25,113 |
Residential Real Estate Loans [Member] | Performing Financing Receivable [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Financing Receivable, Net | 157,138 | 147,197 |
Residential Real Estate Loans [Member] | Nonperforming Financing Receivable [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Financing Receivable, Net | 1,704 | 2,846 |
Residential Real Estate Loans [Member] | Total Summarized by Performance of Individual Credits [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Financing Receivable, Net | 158,842 | 150,043 |
Construction Real Estate Loans [Member] | Performing Financing Receivable [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Financing Receivable, Net | 20,551 | 13,435 |
Construction Real Estate Loans [Member] | Total Summarized by Performance of Individual Credits [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Financing Receivable, Net | 20,551 | 13,435 |
Consumer Loans [Member] | Performing Financing Receivable [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Financing Receivable, Net | 15,295 | 14,154 |
Consumer Loans [Member] | Total Summarized by Performance of Individual Credits [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Financing Receivable, Net | $15,295 | $14,154 |
Recovered_Sheet1
Loans Receivable and Allowance for Loan Losses (Loan Portfolio Summarized by the Past Due Status) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Current | $491,399 | $460,551 |
31-60 Days Past Due | 2,080 | 2,613 |
61-90 Days Past Due | 551 | 865 |
Non-Accrual | 9,547 | 13,200 |
Total Past Due and Non-Accrual | 12,178 | 16,678 |
Total Loans | 503,577 | 477,229 |
Residential Real Estate Loans [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Current | 156,066 | 146,847 |
31-60 Days Past Due | 1,018 | 94 |
61-90 Days Past Due | 54 | 256 |
Non-Accrual | 1,704 | 2,846 |
Total Past Due and Non-Accrual | 2,776 | 3,196 |
Total Loans | 158,842 | 150,043 |
Construction Real Estate Loans [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Current | 20,551 | 13,363 |
31-60 Days Past Due | ' | 72 |
Total Past Due and Non-Accrual | ' | 72 |
Total Loans | 20,551 | 13,435 |
Commercial Real Estate Loans [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Current | 263,837 | 261,527 |
31-60 Days Past Due | 977 | 2,333 |
61-90 Days Past Due | 487 | 598 |
Non-Accrual | 7,843 | 10,026 |
Total Past Due and Non-Accrual | 9,307 | 12,957 |
Total Loans | 273,144 | 274,484 |
Commercial Loans [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Current | 35,717 | 24,785 |
31-60 Days Past Due | 28 | ' |
Non-Accrual | ' | 328 |
Total Past Due and Non-Accrual | 28 | 328 |
Total Loans | 35,745 | 25,113 |
Consumer Loans [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Current | 15,228 | 14,029 |
31-60 Days Past Due | 57 | 114 |
61-90 Days Past Due | 10 | 11 |
Total Past Due and Non-Accrual | 67 | 125 |
Total Loans | $15,295 | $14,154 |
Recovered_Sheet2
Loans Receivable and Allowance for Loan Losses (Allowance for Loan Losses and Recorded Investment in Financing Receivables) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Beginning balance, | $5,502 | $5,458 | $5,616 |
Charge Offs | -2,225 | -2,437 | -1,846 |
Recoveries | 31 | 31 | 113 |
Provision for loan losses | 2,400 | 2,450 | 1,575 |
Ending balance, | 5,708 | 5,502 | 5,458 |
Ending balance individually evaluated for impairment | 53 | 9 | ' |
Ending balance collectively evaluated for impairment | 5,655 | 5,493 | ' |
Customer Concentration Risk [Member] | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Charge Offs | 0 | 0 | -948 |
Residential Real Estate Loans [Member] | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Beginning balance, | 1,797 | 1,257 | ' |
Charge Offs | -603 | -541 | ' |
Recoveries | 9 | 7 | ' |
Provision for loan losses | 238 | 1,074 | ' |
Ending balance, | 1,441 | 1,797 | ' |
Ending balance collectively evaluated for impairment | 1,441 | 1,797 | ' |
Construction Real Estate Loans [Member] | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Beginning balance, | 119 | 72 | ' |
Charge Offs | -40 | -181 | ' |
Provision for loan losses | 819 | 228 | ' |
Ending balance, | 898 | 119 | ' |
Ending balance collectively evaluated for impairment | 898 | 119 | ' |
Commercial Real Estate Loans [Member] | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Beginning balance, | 3,183 | 3,838 | ' |
Charge Offs | -1,488 | -1,632 | ' |
Provision for loan losses | 1,330 | 977 | ' |
Ending balance, | 3,025 | 3,183 | ' |
Ending balance individually evaluated for impairment | 53 | 9 | ' |
Ending balance collectively evaluated for impairment | 2,972 | 3,174 | ' |
Commercial Loans [Member] | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Beginning balance, | 223 | 147 | ' |
Charge Offs | -4 | -24 | -2 |
Recoveries | ' | ' | 5 |
Provision for loan losses | -35 | 100 | ' |
Ending balance, | 184 | 223 | 147 |
Ending balance collectively evaluated for impairment | 184 | 223 | ' |
Consumer Loans [Member] | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Beginning balance, | 180 | 144 | ' |
Charge Offs | -90 | -59 | -109 |
Recoveries | 22 | 24 | 57 |
Provision for loan losses | 48 | 71 | ' |
Ending balance, | 160 | 180 | 144 |
Ending balance collectively evaluated for impairment | 160 | 180 | ' |
Real Estate [Member] | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Charge Offs | -2,131 | -2,354 | -1,735 |
Recoveries | $9 | $7 | $51 |
Recovered_Sheet3
Loans Receivable and Allowance for Loan Losses (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans | $724 | $666 | $535 |
Loans and Leases Receivable, Gross | 503,577 | 477,229 | ' |
Financing Receivable, Allowance for Credit Losses, Write-downs | 2,225 | 2,437 | 1,846 |
Gross Realized Gains on Loans | 74 | 270 | 241 |
Gross Realized Losses on Loans | 7 | 0 | 21 |
Proceeds from Sale of Mortgage Loans Held-for-sale | 4,053 | 7,175 | 8,948 |
Customer Concentration Risk [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses, Write-downs | 0 | 0 | 948 |
Hospitality Lodging Industry [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans and Leases Receivable, Gross | 36,900 | ' | ' |
Concentration Risk, Percentage | 38.50% | ' | ' |
Property Owners' Associations [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans and Leases Receivable, Gross | 12,700 | ' | ' |
Concentration Risk, Percentage | 13.20% | ' | ' |
Automobile Dealers [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans and Leases Receivable, Gross | 10,800 | ' | ' |
Concentration Risk, Percentage | 11.20% | ' | ' |
Impaired Loans Not Requiring an Allowance [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses, Write-downs | 3,714 | 1,500 | ' |
Impaired Loans Requiring an Allowance [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses, Write-downs | $0 | $710 | ' |
Premises_and_Equipment_Schedul
Premises and Equipment (Schedule of Premises and Equipment) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Gross | $16,149 | $15,730 | ' |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | -9,024 | -8,404 | ' |
Property, Plant and Equipment, Net, Total | 7,125 | 7,326 | ' |
Depreciation Premises and Equipment | 594 | 570 | 531 |
Land and Land Improvements [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Gross | 2,272 | 2,238 | ' |
Building and improvements [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Gross | 9,659 | 9,494 | ' |
Furniture and equipment [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Gross | $4,218 | $3,998 | ' |
Premises_and_Equipment_Schedul1
Premises and Equipment (Schedule of Future Minimum Rental Payments of Operating Leases) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Premises and Equipment [Abstract] | ' | ' | ' |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $317 | ' | ' |
Operating Leases, Future Minimum Payments, Due in Two Years | 312 | ' | ' |
Operating Leases, Future Minimum Payments, Due in Three Years | 242 | ' | ' |
Operating Leases, Future Minimum Payments, Due in Four Years | 192 | ' | ' |
Operating Leases, Future Minimum Payments, Due in Five Years | 192 | ' | ' |
Operating Leases, Future Minimum Payments, Due Thereafter | 1,720 | ' | ' |
Operating Leases, Future Minimum Payments Due, Total | 2,975 | ' | ' |
Operating Leases, Rent Expense, Net | $325 | $327 | $299 |
Deposits_Details
Deposits (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Time Deposit Maturities, Next Twelve Months | $105,493 | ' |
Time Deposit Maturities, Year Two | 48,688 | ' |
Time Deposit Maturities, Year Three | 31,307 | ' |
Time Deposit Maturities, Year Four | 15,980 | ' |
Time Deposit Maturities, Year Five | 9,961 | ' |
Time Deposits, Total | 211,429 | 211,260 |
Time Deposits, $100,000 or More | 79,636 | 71,311 |
Deposits, total | 541,182 | 524,425 |
Major Customer Deposits [Member] | ' | ' |
Deposits, total | $30,853 | ' |
Borrowings_Narrative_Details
Borrowings (Narrative) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Available-for-sale Securities Pledged as Collateral | $94,352 | $71,497 |
Federal Home Loan Bank, Advances, General Debt Obligations, Maximum Amount Available | 288,618 | ' |
Advances from Federal Home Loan Banks | 36,874 | ' |
FHLB of Pittsburgh [Member] | ' | ' |
Line of Credit Facility, Amount Outstanding | 13,414 | 0 |
Line of Credit Facility, Maximum Borrowing Capacity | 142,405 | ' |
Atlantic Central Bankers Bank [Member] | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 7,000 | ' |
PNC Bank [Member] | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 16,000 | ' |
Securities Sold under Agreements to Repurchase [Member] | ' | ' |
Available-for-sale Securities Pledged as Collateral | 40,065 | 29,219 |
Security Owned and Pledged as Collateral, Fair Value | $38,733 | $29,680 |
Borrowings_ShortTerm_Borrowing
Borrowings (Short-Term Borrowings) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Borrowings [Abstract] | ' | ' |
Securities Sold under Agreements to Repurchase | $36,500 | $28,697 |
Federal Home Loan Bank, Advances, Short-term | $13,414 | ' |
Borrowings_Outstanding_Balance
Borrowings (Outstanding Balances and Related Information) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Borrowings [Abstract] | ' | ' |
Short-term Debt, Average Outstanding Amount | $30,832 | $23,679 |
Short-term Debt, Average Interest Rate During the Year | 0.21% | 0.22% |
Short-term Debt, Maximum Month-end Outstanding Amount | $49,914 | $32,386 |
Short-term Debt, Weighted Average Interest Rate | 0.21% | 0.20% |
Borrowings_Other_Borrowings_De
Borrowings (Other Borrowings) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Long-term Federal Home Loan Bank Advances | $23,761 | $22,487 |
Convertible note due May 2013 at 3.015% [Member] | ' | ' |
Long-term Federal Home Loan Bank Advances | ' | 5,000 |
Debt Instrument, Interest Rate, Stated Percentage | ' | 3.02% |
Convertible note due July 2015 at 4.34% [Member] | ' | ' |
Long-term Federal Home Loan Bank Advances | 7,301 | 7,487 |
Debt Instrument, Interest Rate, Stated Percentage | 4.34% | 4.34% |
Convertible note due January 2017 at 4.71% [Member] | ' | ' |
Long-term Federal Home Loan Bank Advances | 10,000 | 10,000 |
Debt Instrument, Interest Rate, Stated Percentage | 4.71% | 4.71% |
Amortizing fixed rate borrowing due January 2018 at 0.91% [Member] | ' | ' |
Long-term Federal Home Loan Bank Advances | 2,460 | ' |
Debt Instrument, Interest Rate, Stated Percentage | 0.91% | ' |
Amortizing fixed rate borrowing due December 2018 at 1.425% [Member] | ' | ' |
Long-term Federal Home Loan Bank Advances | $4,000 | ' |
Debt Instrument, Interest Rate, Stated Percentage | 1.43% | ' |
Borrowings_Contractual_Maturit
Borrowings (Contractual Maturities of Other Borrowings) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Borrowings [Abstract] | ' | ' |
Federal Home Loan Bank, Advances, Maturities Summary, Due in Year Two | $7,301 | ' |
Federal Home Loan Bank, Advances, Maturities Summary, Due in Year Four | 10,000 | ' |
Federal Home Loan Bank, Advances, Maturities Summary, Due in Year Five | 6,460 | ' |
Long-term Federal Home Loan Bank Advances, Total | $23,761 | $22,487 |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 15.00% | ' | ' |
Defined Contribution Plan, Employer Contributions, Vesting Period | '5 years | ' | ' |
Defined Contribution Plan, Cost Recognized | $440 | $424 | $398 |
Supplemental Employee Retirement Plan, Defined Benefit [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Benefit Obligation | 1,458 | 1,470 | ' |
Pension and Other Postretirement Benefit Expense | 126 | 120 | 116 |
Cash Surrender Value of Life Insurance | 17,790 | 15,357 | ' |
Defined Benefit Plan, Net Periodic Benefit Cost | 39 | 43 | ' |
Multiemployer Plans, Postretirement Benefit [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Net Periodic Benefit Cost | $22 | $14 | ' |
Defined Benefit Plan, Percentage of Plan Funded | 92.57% | 105.00% | ' |
Defined Benefit Plan, Contribution Percentage | 5.00% | ' | ' |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current Income Tax Expense (Benefit) | $2,566 | $2,612 | $2,683 |
Deferred Tax Assets, Operating Loss Carryforwards | ' | ' | 263 |
Realized Securities Gain [Member] | ' | ' | ' |
Current Income Tax Expense (Benefit) | $300 | $482 | $331 |
Income_Taxes_Components_of_Fed
Income Taxes (Components of Federal Income Tax Provision) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current Income Tax Expense (Benefit) | $2,566 | $2,612 | $2,683 |
Deferred Income Tax Expense (Benefit) | 140 | 424 | -104 |
Current Income Tax Expense (Benefit), Total | 2,706 | 3,036 | 2,579 |
Parent Company [Member] | ' | ' | ' |
Current Income Tax Expense (Benefit), Total | ($88) | ($74) | ($290) |
Income_Taxes_Income_Tax_Rate_R
Income Taxes (Income Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Taxes [Abstract] | ' | ' | ' |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | 34.00% | 34.00% |
Effective Income Tax Rate Reconciliation, Tax Exempt Income | -6.70% | -6.90% | -7.50% |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Compensation Cost, Percent | 0.40% | 0.30% | 0.50% |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Life Insurance, Percent | -3.70% | -1.20% | -1.20% |
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent | 0.20% | 0.30% | 0.20% |
Effective Income Tax Rate, Continuing Operations, Total | 24.20% | 26.50% | 26.00% |
Income_Taxes_Schedule_of_Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilties) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Income Taxes [Abstract] | ' | ' |
Deferred tax assets, Allowance for loan losses | $1,941 | $1,871 |
Deferred tax assets, Deferred compensation | 496 | 500 |
Deferred Tax Assets, Purchase Price Adjustment | 1,215 | 1,458 |
Deferred Tax Assets, Other | 303 | 292 |
Deferred Tax Assets, Foreclosed real estate | 54 | 48 |
Deferred tax assets, Net unrealized loss on securities | 1,337 | ' |
Deferred Tax Assets, Gross, Total | 5,346 | 4,169 |
Deferred tax liabilities, Premises and equipment | 327 | 334 |
Deferred tax liablities, Deferred loan fees | 200 | 213 |
Deferred tax liabilties, Net unrealized gains on securities | ' | 1,443 |
Deferred Tax Liabilities, Gross, Total | 527 | 1,990 |
Deferred Tax Assets, Net, Total | $4,819 | $2,179 |
Regulatory_Matters_and_Stockho2
Regulatory Matters and Stockholders' Equity (Narrative) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Regulatory Matters and Stockholders' Equity [Abstract] | ' | ' |
Restricted Cash and Cash Equivalents | $480,000 | $430,000 |
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments without Regulatory Approval | $57,716,000 | ' |
Regulatory_Matters_and_Stockho3
Regulatory Matters and Stockholders' Equity (Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Regulatory Matters and Stockholders' Equity [Abstract] | ' | ' |
Total capital (to risk weighted assets), Amount | $85,667 | $80,747 |
Total capital (to risk weighted assets) For Capital Adequacy Purposes, Amount | 40,660 | 38,596 |
Total capital (to risk weighted assets) To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | 50,825 | 48,245 |
Total capital (to risk weighted assets), Ratio | 16.86% | 16.74% |
Total capital (to risk weighted assets) For Capital Adequacy Purposes, Ratio | 8.00% | 8.00% |
Total capital (to risk weighted assets) To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 10.00% | 10.00% |
Tier 1 capital (to risk weighted assets), Amount | 79,959 | 75,245 |
Tier 1 capital (to risk weighted assets) For Capital Adequacy Purposes, Amount | 20,330 | 19,298 |
Tier 1 capital (to risk weighted assets) To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | 30,495 | 28,947 |
Tier 1 capital (to risk weighted assets), Ratio | 15.73% | 15.60% |
Tier 1 capital (to risk weighted assets) For Capital Adequacy Purposes, Ratio | 4.00% | 4.00% |
Tier 1 capital (to risk weighted assets) To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.00% | 6.00% |
Tier 1 capital (to average assets), Amount | 79,959 | 75,245 |
Tier 1 capital (to average assets) For Capital Adequacy Purposes, Amount | 27,792 | 26,862 |
Tier 1 capital (to average assets) To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $34,740 | $33,577 |
Tier 1 capital (to average assets), Ratio | 11.51% | 11.20% |
Tier 1 capital (to average assets) For Capital Adequacy Purposes, Ratio | 4.00% | 4.00% |
Tier 1 capital (to average assets) To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 5.00% | 5.00% |
StockBased_Compensation_Summar
Stock-Based Compensation (Summary of Stock Option Activity) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Apr. 26, 2006 | |
Stock-Based Compensation [Abstract] | ' | ' | ' | ' |
Options, Outstanding, beginning of year | 225,670 | 229,836 | 207,534 | ' |
Options, Granted | 28,600 | 30,250 | 31,900 | ' |
Options, Exercised | -24,127 | -20,435 | -2,833 | ' |
Options, Forfeited | -10,603 | -13,981 | -6,765 | ' |
Options, Outstanding, end of year | 219,540 | 225,670 | 229,836 | ' |
Options, Exercisable, end of year | 190,940 | 196,489 | 199,005 | ' |
Weighted Average Exercise Price Per Share, Outstanding, beginning of year | $26.27 | $25.85 | $25.93 | ' |
Weighted Average Exercise Price Per Share, Granted | $27.07 | $27.05 | $24.94 | ' |
Weighted Average Exercise Price Per Share, Exercised | $23.83 | $22.19 | $17.90 | ' |
Weighted Average Exercise Price Per Share, Forfeited | $28.92 | $26.88 | $27.50 | ' |
Weighted Average Exercise Price Per Share, Outstanding, end of year | $26.64 | $26.27 | $25.85 | ' |
Weighted Average Exercise Price Per Share, Exercisable, end of year | $26.58 | $26.15 | $25.99 | ' |
Weighted Average Remaining Contractual Term, Outstanding, | '4 years 9 months 18 days | ' | ' | ' |
Weighted Average Remaining Contractual Term, Outstanding, | '4 years 9 months 18 days | ' | ' | ' |
Aggregate Intrinsic Value, Outstanding, | $256,499 | $113,352 | ' | ' |
Aggregate Intrinsic Value, Outstanding, end of year | 146,970 | 256,499 | 113,352 | ' |
Aggregate Intrinsic Value, Exercisable, end of year | 146,900 | 256,499 | 112,152 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | ' | ' | ' | 275,000 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 157,000 | 154,000 | 130,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $146,970 | $256,499 | $113,352 | ' |
StockBased_Compensation_Narrat
Stock-Based Compensation (Narrative) (Details) (USD $) | 12 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Apr. 26, 2006 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | ' | ' | ' | ' | 275,000 |
Options, Granted | 28,600 | 30,250 | 31,900 | ' | ' |
Options, Exercised | -24,127 | -20,435 | -2,833 | ' | ' |
Proceeds from Stock Options Exercised | $575 | $455 | $51 | ' | ' |
Remaining Life, Years | '4 years 9 months 18 days | ' | ' | ' | ' |
Average Exercise Price | $26.64 | $26.27 | $25.85 | $25.93 | ' |
Share Based Compensation | 162 | 130 | 170 | ' | ' |
Allocated Share-based Compensation Expense, Net of Tax | 154 | 123 | 163 | ' | ' |
Unrecognized Salaries And Employee Benefits Expense | 157 | 154 | 130 | ' | ' |
Common Stock, Dividend Rate, Percentage | 10.00% | ' | ' | ' | ' |
Minimum [Member] | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Average Exercise Price | $24.44 | ' | ' | ' | ' |
Maximum [Member] | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Average Exercise Price | $28.95 | ' | ' | ' | ' |
Employee Stock Option [Member] | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | $162 | $130 | $170 | ' | ' |
Outside Directors [Member] | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 44,000 | ' | ' | ' | ' |
Options, Granted | 4,000 | 4,950 | 4,950 | ' | ' |
StockBased_Compensation_Schedu
Stock-Based Compensation (Schedule of Fair Value Assumptions) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Stock-Based Compensation [Abstract] | ' | ' | ' |
Dividend yield | 3.49% | 3.27% | 3.30% |
Expected life | '10 years | '10 years | '7 years |
Expected volatility | 25.91% | 25.37% | 25.35% |
Risk-free interest rate | 3.01% | 1.76% | 1.39% |
Weighted average fair value of options granted | $5.72 | $5.61 | $4.70 |
StockBased_Compensation_Schedu1
Stock-Based Compensation (Schedule of Outstanding Stock Options) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Options Outstanding | 219,540 | 225,670 | 229,836 | 207,534 |
Average Exercise Price | $26.64 | $26.27 | $25.85 | $25.93 |
Remaining Life, Years | '4 years 9 months 18 days | ' | ' | ' |
Options Exercisable | 190,940 | 196,489 | 199,005 | ' |
Average Exercise Price | $26.58 | $26.15 | $25.99 | ' |
Average Exercise Price - $27.27 [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Options Outstanding | 15,594 | ' | ' | ' |
Average Exercise Price | $27.27 | ' | ' | ' |
Remaining Life, Years | '1 year | ' | ' | ' |
Options Exercisable | 15,594 | ' | ' | ' |
Average Exercise Price | $27.27 | ' | ' | ' |
Average Exercise Price - $27.62 [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Options Outstanding | 20,796 | ' | ' | ' |
Average Exercise Price | $27.62 | ' | ' | ' |
Remaining Life, Years | '2 years 3 months 18 days | ' | ' | ' |
Options Exercisable | 20,796 | ' | ' | ' |
Average Exercise Price | $27.62 | ' | ' | ' |
Average Exercise Price - $28.64 [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Options Outstanding | 18,700 | ' | ' | ' |
Average Exercise Price | $28.64 | ' | ' | ' |
Remaining Life, Years | '3 years | ' | ' | ' |
Options Exercisable | 18,700 | ' | ' | ' |
Average Exercise Price | $28.64 | ' | ' | ' |
Average Exercise Price - $28.41 [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Options Outstanding | 18,700 | ' | ' | ' |
Average Exercise Price | $28.41 | ' | ' | ' |
Remaining Life, Years | '4 years | ' | ' | ' |
Options Exercisable | 18,700 | ' | ' | ' |
Average Exercise Price | $28.41 | ' | ' | ' |
Average Exercise Price - $25.00 [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Options Outstanding | 19,800 | ' | ' | ' |
Average Exercise Price | $25 | ' | ' | ' |
Remaining Life, Years | '5 years | ' | ' | ' |
Options Exercisable | 19,800 | ' | ' | ' |
Average Exercise Price | $25 | ' | ' | ' |
Average Exercise Price - $26.27 [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Options Outstanding | 1,100 | ' | ' | ' |
Average Exercise Price | $26.27 | ' | ' | ' |
Remaining Life, Years | '5 years 3 months 18 days | ' | ' | ' |
Options Exercisable | 1,100 | ' | ' | ' |
Average Exercise Price | $26.27 | ' | ' | ' |
Average Exercise Price - $25.99 [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Options Outstanding | 18,700 | ' | ' | ' |
Average Exercise Price | $25.99 | ' | ' | ' |
Remaining Life, Years | '6 years | ' | ' | ' |
Options Exercisable | 18,700 | ' | ' | ' |
Average Exercise Price | $25.99 | ' | ' | ' |
Average Exercise Price - $24.44 [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Options Outstanding | 1,100 | ' | ' | ' |
Average Exercise Price | $24.44 | ' | ' | ' |
Remaining Life, Years | '6 years 2 months 12 days | ' | ' | ' |
Options Exercisable | 1,100 | ' | ' | ' |
Average Exercise Price | $24.44 | ' | ' | ' |
Average Exercise Price - $25.25 [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Options Outstanding | 23,650 | ' | ' | ' |
Average Exercise Price | $25.25 | ' | ' | ' |
Remaining Life, Years | '7 years | ' | ' | ' |
Options Exercisable | 23,650 | ' | ' | ' |
Average Exercise Price | $25.25 | ' | ' | ' |
Average Exercise Price - $24.97 [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Options Outstanding | 25,850 | ' | ' | ' |
Average Exercise Price | $24.97 | ' | ' | ' |
Remaining Life, Years | '8 years | ' | ' | ' |
Options Exercisable | 25,850 | ' | ' | ' |
Average Exercise Price | $24.97 | ' | ' | ' |
Average Exercise Price - $27.05 [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Options Outstanding | 26,950 | ' | ' | ' |
Average Exercise Price | $27.05 | ' | ' | ' |
Remaining Life, Years | '9 years | ' | ' | ' |
Options Exercisable | 26,950 | ' | ' | ' |
Average Exercise Price | $27.05 | ' | ' | ' |
Average Exercise Price - $27.55 [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Options Outstanding | 1,100 | ' | ' | ' |
Average Exercise Price | $27.55 | ' | ' | ' |
Remaining Life, Years | '9 years | ' | ' | ' |
Average Exercise Price - $28.95 [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Options Outstanding | 2,000 | ' | ' | ' |
Average Exercise Price | $28.95 | ' | ' | ' |
Remaining Life, Years | '9 years 8 months 12 days | ' | ' | ' |
Average Exercise Price - $26.90 [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Options Outstanding | 25,500 | ' | ' | ' |
Average Exercise Price | $26.90 | ' | ' | ' |
Remaining Life, Years | '10 years | ' | ' | ' |
Earnings_Per_Share_Narrative_D
Earnings Per Share (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Earnings Per Share [Abstract] | ' | ' | ' |
Common Stock, Dividend Rate, Percentage | 10.00% | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 129,000 | 112,000 | 172,700 |
Earnings_Per_Share_Basic_and_D
Earnings Per Share (Basic and Diluted Earnings Per Share) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Earnings Per Share [Abstract] | ' | ' | ' |
Net Income (Loss) Attributable to Parent | $8,465 | $8,403 | $7,356 |
Denominator for basic earnings per share, weighted average shares | 3,627 | 3,608 | 3,380 |
Effect of dilutive securities, employee stock options | 5 | 6 | 3 |
Denominator for diluted earnings per share, adjusted weighted average shares and assumed conversions | 3,632 | 3,614 | 3,383 |
Earnings Per Share, Basic | $2.33 | $2.33 | $2.17 |
Earnings Per Share, Diluted | $2.33 | $2.33 | $2.17 |
OffBalance_Sheet_Financial_Ins2
Off-Balance Sheet Financial Instruments and Guarantees (Table) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Loss Contingencies [Line Items] | ' | ' |
Financial Instrument Commitments | $71,121 | $66,445 |
Unfunded availability under loan commitments [Member] | ' | ' |
Loss Contingencies [Line Items] | ' | ' |
Financial Instrument Commitments | 22,845 | 17,582 |
Unfunded commitments under lines of credit [Member] | ' | ' |
Loss Contingencies [Line Items] | ' | ' |
Financial Instrument Commitments | 42,575 | 42,735 |
Standby letters of credit [Member] | ' | ' |
Loss Contingencies [Line Items] | ' | ' |
Financial Instrument Commitments | $5,701 | $6,128 |
Fair_Value_Measurements_Fair_V
Fair Value Measurements (Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale Securities | $158,132 | $145,390 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale Securities | 328 | 319 |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale Securities | 157,804 | 145,071 |
U.S. Government Agencies [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale Securities | 33,413 | 13,092 |
U.S. Government Agencies [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale Securities | 33,413 | 13,092 |
States and political subdivisions [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale Securities | 59,030 | 58,786 |
States and political subdivisions [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale Securities | 59,030 | 58,786 |
Corporate obligations [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale Securities | 3,711 | 8,868 |
Corporate obligations [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale Securities | 3,711 | 8,868 |
Mortgage-backed securities-government sponsored entities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale Securities | 61,650 | 64,325 |
Mortgage-backed securities-government sponsored entities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale Securities | 61,650 | 64,325 |
Equity securities-financial services [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale Securities | 328 | 319 |
Equity securities-financial services [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale Securities | $328 | $319 |
Fair_Value_Measurements_Fair_V1
Fair Value Measurements (Fair Value, Assets and Liabilities Measured on Nonrecurring Basis) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Impaired Loans [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | $12,556 | $11,616 |
Impaired Loans [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 12,556 | 11,616 |
Foreclosed Real Estate Owned [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 1,009 | 852 |
Foreclosed Real Estate Owned [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | $1,009 | $852 |
Fair_Value_Measurements_and_Fa
Fair Value Measurements and Fair Value of Financial Instruments (Additional Qualitative Information about Level 3 Assets) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | |
Impaired Loans [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Assets, Fair Value Disclosure, Nonrecurring | $12,556 | $11,616 | |
Fair Value Measurements, Valuation Techniques | 'Appraisal of collateral(1) | [1] | ' |
Fair Value Disclosure, Unbservable Input Range | 'Appraisal adjustments(2) | [2] | ' |
Impaired Loans [Member] | Minimum [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Fair Value Inputs, Discount Rate | 10.00% | ' | |
Impaired Loans [Member] | Maximum [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Fair Value Inputs, Discount Rate | 15.00% | ' | |
Impaired Loans [Member] | Weighted Average [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Fair Value Inputs, Discount Rate | 10.67% | ' | |
Foreclosed Real Estate Owned [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Assets, Fair Value Disclosure, Nonrecurring | $1,009 | ' | |
Fair Value Measurements, Valuation Techniques | 'Appraisal of collateral(1) | [1] | ' |
Fair Value Disclosure, Unbservable Input Range | 'Liquidation Expenses(2) | [2] | ' |
Fair Value Inputs, Discount Rate | 10.00% | ' | |
[1] | (1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable, less any associated allowance. | ||
[2] | (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. |
Fair_Value_Measurements_Fair_V2
Fair Value Measurements (Fair Value, by Balance Sheet Grouping) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Financial assets: Cash and due from banks, interest-bearing deposits with banks and federal funds sold, Fair Value Disclosure | $7,863 | $12,295 | ' | ' |
Financial assets: Securities, Fair Value Disclosure | 158,309 | 145,567 | ' | ' |
Financial assets: Loans receivable, net, Fair Value Disclosure | 506,113 | 485,848 | ' | ' |
Financial assets: Mortgage servicing rights, Fair Value Disclosure | 289 | 243 | ' | ' |
Financial assets: Regulatory stock, Fair Value Disclosure | 2,877 | 2,630 | ' | ' |
Financial assets: Bank owned life insurance, Fair Value Disclosure | 17,790 | 15,357 | ' | ' |
Financial assets: Accrued interest receivable, Fair Value Disclosure | 2,422 | 2,393 | ' | ' |
Financial liabilities: Deposits, Fair Value Disclosure | 542,123 | 526,080 | ' | ' |
Financial liabilities: Short-term borrowings, Fair Value Disclosure | 49,914 | 28,697 | ' | ' |
Financial liabilities: Other borrowings, Fair Value Disclosure | 25,923 | 25,426 | ' | ' |
Financial liabilities: Accrued interest payable, Fair Value Disclosure | 1,022 | 1,242 | ' | ' |
Financial assets: Cash and due from banks, interest-bearing deposits with banks and federal funds sold | 7,863 | 12,295 | 21,423 | 16,625 |
Financial assets: Securities | 158,306 | 145,563 | ' | ' |
Financial assets: Loans receivable, net | 497,389 | 471,208 | ' | ' |
Financial assets: Mortgage servicing rights | 289 | 243 | ' | ' |
Financial assets: Investment in FHLB stock | 2,877 | 2,630 | ' | ' |
Financial assets: Bank owned life insurance | 17,790 | 15,357 | ' | ' |
Financial assets: Accrued interest receivable | 2,422 | 2,393 | ' | ' |
Financial liabilities: Deposits | 541,182 | 524,425 | ' | ' |
Financial liabilities: Short-term borrowings | 49,914 | 28,697 | ' | ' |
Financial liabilities: Other borrowings | 23,761 | 22,487 | ' | ' |
Financial liabilities: Accrued interest payable | 1,022 | 1,242 | ' | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Financial assets: Cash and due from banks, interest-bearing deposits with banks and federal funds sold, Fair Value Disclosure | 7,863 | 12,295 | ' | ' |
Financial assets: Securities, Fair Value Disclosure | 328 | 319 | ' | ' |
Financial assets: Regulatory stock, Fair Value Disclosure | 2,877 | 2,630 | ' | ' |
Financial assets: Bank owned life insurance, Fair Value Disclosure | 17,790 | 15,357 | ' | ' |
Financial assets: Accrued interest receivable, Fair Value Disclosure | 2,422 | 2,393 | ' | ' |
Financial liabilities: Deposits, Fair Value Disclosure | 329,753 | 313,165 | ' | ' |
Financial liabilities: Short-term borrowings, Fair Value Disclosure | 49,914 | 28,697 | ' | ' |
Financial liabilities: Accrued interest payable, Fair Value Disclosure | 1,022 | 1,242 | ' | ' |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Financial assets: Securities, Fair Value Disclosure | 157,981 | 145,248 | ' | ' |
Financial assets: Mortgage servicing rights, Fair Value Disclosure | 289 | 243 | ' | ' |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Financial assets: Loans receivable, net, Fair Value Disclosure | 506,113 | 485,848 | ' | ' |
Financial liabilities: Deposits, Fair Value Disclosure | 212,370 | 212,915 | ' | ' |
Financial liabilities: Other borrowings, Fair Value Disclosure | $25,923 | $25,426 | ' | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Components of Accumulated Other Comprehensive Income and Accumulated Other Comprehensive Income) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Beginning balance | $2,797 | ' | ' | |
Other comprehensive income (loss) | -5,399 | -518 | 2,178 | |
Ending balance | -2,602 | 2,797 | ' | |
Unrealized gains on available for sale securities [Member] | ' | ' | ' | |
Beginning balance | 2,797 | [1] | ' | ' |
Other comprehensive loss before reclassification | -4,818 | [1] | ' | ' |
Amount reclassified from accumulated other comprehensive income | -581 | [1] | ' | ' |
Other comprehensive income (loss) | -5,399 | [1] | ' | ' |
Ending balance | ($2,602) | [1] | ' | ' |
[1] | (a) All amounts are net of tax. Amounts in parentheses indicate debits. |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Items Reclassified Out of Each Component of OCI) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | |
Net realized gains on sales of securities | $881 | $1,419 | $973 | |
Income tax expense | -2,706 | -3,036 | -2,579 | |
Net Income | 8,465 | 8,403 | 7,356 | |
Unrealized gains on available for sale securities [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | |
Net realized gains on sales of securities | 881 | [1] | ' | ' |
Income tax expense | -300 | [1] | ' | ' |
Net Income | $581 | [1] | ' | ' |
[1] | Amounts in parentheses indicate debits to net income. |
Acquisition_of_North_Penn_Banc2
Acquisition of North Penn Bancorp, Inc. (Tables) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Acquisition of North Penn Bancorp, Inc. [Abstract] | ' | ' |
Total purchase price | $25,396 | ' |
Net Assets Acquired: Cash | 15,192 | ' |
Net Assets Acquired: Securities available for sale | 12,671 | ' |
Net Assets Acquired: Restricted investments | 985 | ' |
Net Assets Acquired: Loans | 118,336 | ' |
Net Assets Acquired: Accrued interest receivable | 566 | ' |
Net Assets Acquired: Premises & equipment, net | 2,931 | ' |
Net Assets Acquired: Core deposit intangible | 895 | ' |
Net Assets Acquired: Deferred tax assets | 2,715 | ' |
Net Assets Acquired: Other assets | 5,403 | ' |
Net Assets Acquired: Time deposits | -51,936 | ' |
Net Assets Acquired: Deposits other than time deposits | -83,498 | ' |
Net Assets Acquired: Borrowings | -7,776 | ' |
Net Assets Acquired: Accrued interest payable | -203 | ' |
Net Assets Acquired: Other liabilities | -600 | ' |
Net Assets Acquired | 15,681 | ' |
Goodwill resulting from North Penn Merger | $9,715 | $9,715 |
Acquisition_of_North_Penn_Banc3
Acquisition of North Penn Bancorp, Inc. (Narrative) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | 31-May-11 |
Acquisition of North Penn Bancorp, Inc. [Abstract] | ' | ' |
Business Acquisition, Effective Date of Acquisition | 31-May-11 | ' |
Business Acquisition, Equity Interest Issued or Issuable, Description | 'As a result of the acquisition, the Company issued 530,994 common shares, or 15.75% of the total shares outstanding, to former shareholders of North Penn Bancorp, Inc. North Penn Bank has been merged into Wayne Bank, with Wayne as the surviving entity. | ' |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | ' | $1.90 |
Certain Loans Acquired in Transfer, Nonaccretable Difference | ' | 1.7 |
Loans Acquired Without Evidence Of Deterioration, Unpaid Principal Balance | ' | 119.8 |
Loans Acquired Without Evidence Of Deterioration, Fair Value | ' | $116.70 |
Norwood_Financial_Corp_Parent_2
Norwood Financial Corp (Parent Company Only) Financial Information (Balance Sheets) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Cash on deposit in bank subsidiary | $7,528 | $10,867 | ' | ' |
Securities available for sale | 158,132 | 145,390 | ' | ' |
Other assets | 1,409 | 2,134 | ' | ' |
Total Assets | 711,234 | 672,299 | ' | ' |
Liabilities | 619,370 | 579,878 | ' | ' |
Stockholders' equity | 91,864 | 92,421 | 88,061 | 67,698 |
Total Liabilities and Stockholders' Equity | 711,234 | 672,299 | ' | ' |
Parent Company [Member] | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Cash on deposit in bank subsidiary | 1,205 | 1,120 | ' | ' |
Securities available for sale | 328 | 319 | ' | ' |
Investment in bank subsidiary | 87,589 | 88,412 | ' | ' |
Other assets | 3,835 | 3,591 | ' | ' |
Total Assets | 92,957 | 93,442 | ' | ' |
Liabilities | 1,093 | 1,021 | ' | ' |
Stockholders' equity | 91,864 | 92,421 | ' | ' |
Total Liabilities and Stockholders' Equity | $92,957 | $93,442 | ' | ' |
Norwood_Financial_Corp_Parent_3
Norwood Financial Corp (Parent Company Only) Financial Information (Statements of Income) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Net realized gain (loss) on sales of securities | $881 | $1,419 | $973 |
Income before taxes and equity in undistributed earnings | 11,171 | 11,439 | 9,935 |
Income tax benefit | 2,706 | 3,036 | 2,579 |
Net Income | 8,465 | 8,403 | 7,356 |
Comprehensive Income, Net of Tax | 3,066 | 7,885 | 9,534 |
Parent Company [Member] | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Dividends from bank subsidiary | 4,216 | 3,971 | 16,496 |
Other interest income | 9 | 6 | 9 |
Net realized gain (loss) on sales of securities | ' | 73 | ' |
Total Revenues | 4,225 | 4,050 | 16,505 |
Expenses | 267 | 296 | 980 |
Income before taxes and equity in undistributed earnings | 3,958 | 3,754 | 15,525 |
Income tax benefit | -88 | -74 | -290 |
Income before equity in undistributed earnings | 4,046 | 3,828 | 15,815 |
Equity in undistributed earnings of subsidiary | 4,419 | 4,575 | -8,459 |
Net Income | 8,465 | 8,403 | 7,356 |
Comprehensive Income, Net of Tax | $3,066 | $7,885 | $9,534 |
Norwood_Financial_Corp_Parent_4
Norwood Financial Corp (Parent Company Only) Financial Information (Statements of Cash Flows) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Net Income | $8,465 | $8,403 | $7,356 |
Net (gains) losses on sales of securities | 881 | 1,419 | 973 |
Net Cash Provided by Operating Activities | 12,691 | 11,361 | 10,793 |
Proceeds from sale of securities | 42,348 | 40,914 | 32,146 |
Securities available for sale: Purchases | -84,589 | -67,312 | -54,107 |
Net Cash Provided by (Used in) Investing Activities | -52,657 | -17,249 | 31,065 |
Proceeds from Stock Options Exercised | 575 | 455 | 51 |
ESOP purchase of shares from treasury stock | 146 | 149 | 153 |
Purchase of treasury stock | -319 | -320 | -602 |
Cash dividends paid | -4,155 | -3,932 | -3,514 |
Net Cash Used in Financing Activities | 35,534 | -3,240 | -37,060 |
Net Increase (Decrease) in Cash and Cash Equivalents | -4,432 | -9,128 | 4,798 |
CASH AND CASH EQUIVALENTS, BEGINNING | 12,295 | 21,423 | 16,625 |
CASH AND CASH EQUIVALENTS, ENDING | 7,863 | 12,295 | 21,423 |
Parent Company [Member] | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Net Income | 8,465 | 8,403 | 7,356 |
Undistributed earnings of bank subsidiary | -4,419 | -4,575 | 8,459 |
Net (gains) losses on sales of securities | ' | 68 | ' |
Other, net | 247 | 181 | 506 |
Net Cash Provided by Operating Activities | 3,799 | 3,579 | 15,309 |
Proceeds from sale of securities | ' | 114 | ' |
Outlays for business acquisitions | ' | ' | -10,518 |
Securities available for sale: Purchases | ' | -185 | ' |
Net Cash Provided by (Used in) Investing Activities | ' | -71 | -10,518 |
Proceeds from Stock Options Exercised | 575 | 455 | 51 |
Outlays for business acquisitions | ' | ' | 10,518 |
Tax Benefit from Stock Options Exercised | 39 | 30 | 5 |
ESOP purchase of shares from treasury stock | 146 | 149 | 153 |
Purchase of treasury stock | -319 | -320 | -602 |
Cash dividends paid | -4,155 | -3,932 | -3,514 |
Net Cash Used in Financing Activities | -3,714 | -3,618 | -3,907 |
Net Increase (Decrease) in Cash and Cash Equivalents | 85 | -110 | 884 |
CASH AND CASH EQUIVALENTS, BEGINNING | 1,120 | 1,230 | 346 |
CASH AND CASH EQUIVALENTS, ENDING | $1,205 | $1,120 | $1,230 |