Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 01, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Entity Registrant Name | NORWOOD FINANCIAL CORP | ||
Entity Central Index Key | 1,013,272 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 4,162,414 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 97.2 | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
ASSETS | |||
Cash and due from banks | $ 14,900 | $ 9,744 | |
Interest bearing deposits with banks | 2,274 | 266 | |
Cash and cash equivalents | 17,174 | 10,010 | |
Securities available for sale | 302,564 | 138,851 | |
Loans receivable (net of allowance for loan losses 2016: $6,463; 2015: $7,298) | 707,426 | 552,627 | |
Regulatory stock, at cost | 2,119 | 3,412 | |
Premises and equipment, net | 13,531 | 6,472 | |
Bank owned life insurance | 36,133 | 18,820 | |
Accrued interest receivable | 3,643 | 2,363 | |
Foreclosed real estate owned | 5,302 | 2,847 | |
Goodwill | 11,331 | 9,715 | |
Other intangibles | 612 | 285 | |
Deferred tax asset | 8,989 | 3,669 | |
Other assets | 2,359 | 1,434 | |
Total Assets | 1,111,183 | 750,505 | |
LIABILITIES | |||
Deposits: Non-interest bearing demand | 191,445 | 107,814 | |
Deposits: Interest-bearing demand | 93,485 | 52,040 | |
Deposits: Money market deposit accounts | 153,020 | 119,028 | |
Deposits: Savings | 191,878 | 75,280 | |
Deposits: Time | 295,557 | 196,747 | |
Total deposits | 925,385 | 550,909 | |
Short-term borrowings | 32,811 | 53,235 | |
Other borrowings | 32,001 | 41,126 | |
Accrued interest payable | 1,069 | 957 | |
Other liabilities | 8,838 | 3,280 | |
Total Liabilities | 1,000,104 | 649,507 | |
STOCKHOLDERS' EQUITY | |||
Common stock, $.10 par value per share, authorized 10,000,000 shares, issued 2016: 4,164,723 shares, 2015: 3,724,668 shares | 416 | 373 | |
Surplus | 47,682 | 35,351 | |
Retained earnings | 67,225 | 65,412 | |
Treasury stock at cost: 2016: 4,509 shares, 2015: 23,311 shares | (125) | (626) | |
Accumulated other comprehensive income (loss) | [1] | (4,119) | 488 |
Total Stockholders' Equity | 111,079 | 100,998 | |
Total Liabilities and Stockholders' Equity | $ 1,111,183 | $ 750,505 | |
[1] | All amounts are net of tax. Amounts in parentheses indicate debits. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Consolidated Balance Sheets [Abstract] | ||
Loans and Leases Receivable, Allowance | $ 6,463 | $ 7,298 |
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 | 4,164,723 | 3,724,668 |
Treasury Stock, Shares | 4,509 | 23,311 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
INTEREST INCOME | |||
Loans receivable, including fees | $ 27,611 | $ 24,002 | $ 23,841 |
Securities: Taxable | 2,375 | 1,918 | 2,032 |
Securities: Tax exempt | 2,216 | 1,843 | 1,888 |
Other | 42 | 16 | 7 |
Total Interest Income | 32,244 | 27,779 | 27,768 |
INTEREST EXPENSE | |||
Deposits | 2,603 | 2,421 | 2,463 |
Short-term borrowings | 130 | 85 | 77 |
Other borrowings | 921 | 752 | 668 |
Total Interest Expense | 3,654 | 3,258 | 3,208 |
Net Interest Income | 28,590 | 24,521 | 24,560 |
Provision for Loan Losses | 2,050 | 4,580 | 1,680 |
Net interest Income After Provision for Loan Losses | 26,540 | 19,941 | 22,880 |
OTHER INCOME | |||
Service charges and fees | 2,951 | 2,440 | 2,350 |
Income from fiduciary activities | 449 | 439 | 437 |
Net realized gains on sales of securities | 284 | 626 | 1,170 |
Net gain on sale of loans | 54 | 104 | 132 |
Earnings and proceeds on bank owned life insurance | 888 | 665 | 685 |
Other | 553 | 425 | 336 |
Total Other Income | 5,179 | 4,699 | 5,110 |
OTHER EXPENSES | |||
Salaries and employee benefits | 10,928 | 8,535 | 8,616 |
Occupancy | 2,077 | 1,660 | 1,676 |
Furniture and equipment | 548 | 422 | 441 |
Data processing and related operations | 1,337 | 943 | 929 |
Federal Deposit Insurance Corporation insurance assessment | 412 | 411 | 420 |
Advertising | 283 | 240 | 224 |
Professional fees | 836 | 730 | 671 |
Postage and telephone | 566 | 436 | 414 |
Taxes, other than income | 731 | 711 | 649 |
Foreclosed real estate | 680 | 911 | 1,555 |
Amortization of intangibles | 122 | 105 | 121 |
Merger related | 1,806 | ||
Other | 2,798 | 1,996 | 2,011 |
Total Other Expenses | 23,124 | 17,100 | 17,727 |
Income before Income Taxes | 8,595 | 7,540 | 10,263 |
INCOME TAX EXPENSE | 1,884 | 1,632 | 2,606 |
Net income | $ 6,711 | $ 5,908 | $ 7,657 |
EARNINGS PER SHARE | |||
BASIC | $ 1.74 | $ 1.60 | $ 2.10 |
DILUTED | $ 1.73 | $ 1.60 | $ 2.10 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Consolidated Statement of Comprehensive Income [Abstract] | ||||
NET INCOME | $ 6,711 | $ 5,908 | $ 7,657 | |
Other comprehensive income (loss): | ||||
Other comprehensive income (loss): Unrealized gain on pension liability | 490 | |||
Other comprehensive income (loss): Tax Effect | (172) | |||
Investment securities available for sale: Unrealized holding gain (loss) | (7,180) | 656 | 5,820 | |
Investment securities available for sale: Tax Effect | 2,440 | (217) | (1,984) | |
Reclassification of gains from sale of securities | (284) | (626) | (1,170) | |
Reclassification of gains from sale of securities: Tax Effect | 99 | 213 | 398 | |
Net of tax amount | (4,607) | [1] | 26 | 3,064 |
COMPREHENSIVE INCOME | $ 2,104 | $ 5,934 | $ 10,721 | |
[1] | All amounts are net of tax. Amounts in parentheses indicate debits. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Surplus [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total | |
Beginning balance at Dec. 31, 2013 | $ 371 | $ 35,010 | $ 60,798 | $ (1,713) | $ (2,602) | $ 91,864 | |
Common Stock, Beginning Balance at Dec. 31, 2013 | 3,708,718 | 64,628 | |||||
Net Income | $ 0 | 0 | 7,657 | $ 0 | 0 | 7,657 | |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | 3,064 | 3,064 | |
Cash dividends declared | 0 | 0 | (4,377) | 0 | 0 | (4,377) | |
Acquisition of treasury stock | 0 | 0 | 0 | $ (179) | 0 | (179) | |
Acquisition of treasury stock, shares | 6,669 | ||||||
Stock options exercised | 0 | 13 | 0 | $ 678 | 0 | $ 691 | |
Stock options exercised, shares | (25,577) | (25,577) | |||||
Tax benefit o stock options exercised | 0 | 17 | 0 | $ 0 | 0 | $ 17 | |
Sale of treasury stock for ESOP | 0 | 13 | 0 | $ 137 | 0 | 150 | |
Sale of treasury stock for ESOP, shares | (5,144) | ||||||
Compensation expense related to stock options | 0 | 154 | 0 | $ 0 | 0 | 154 | |
Restricted stock awards | $ 1 | (1) | 0 | $ 0 | 0 | 0 | |
Restricted stock awards, shares | 9,300 | 0 | |||||
Common Stock, Ending Balance at Dec. 31, 2014 | 3,718,018 | 40,576 | |||||
Ending balance at Dec. 31, 2014 | $ 372 | 35,206 | 64,078 | $ (1,077) | 462 | 99,041 | |
Net Income | 0 | 0 | 5,908 | 0 | 0 | 5,908 | |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | 26 | 26 | |
Cash dividends declared | 0 | 0 | (4,574) | 0 | 0 | (4,574) | |
Acquisition of treasury stock | 0 | 0 | 0 | $ (127) | 0 | (127) | |
Acquisition of treasury stock, shares | 4,374 | ||||||
Stock options exercised | 0 | (9) | 0 | $ 450 | 0 | $ 441 | |
Stock options exercised, shares | (16,859) | (16,859) | |||||
Tax benefit o stock options exercised | 0 | 16 | 0 | $ 0 | 0 | $ 16 | |
Sale of treasury stock for ESOP | 0 | 10 | 0 | $ 136 | 0 | 146 | |
Sale of treasury stock for ESOP, shares | (5,060) | ||||||
Compensation expense related to stock options | 0 | 66 | 0 | $ 0 | 0 | 66 | |
Restricted stock awards | $ 1 | 62 | 0 | $ (8) | 0 | 55 | |
Restricted stock awards, shares | 6,650 | 280 | |||||
Common Stock, Ending Balance at Dec. 31, 2015 | 3,724,668 | 23,311 | |||||
Ending balance at Dec. 31, 2015 | $ 373 | 35,351 | 65,412 | $ (626) | 488 | 100,998 | |
Net Income | 0 | 0 | 6,711 | 0 | 0 | 6,711 | |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | (4,607) | (4,607) | [1] |
Cash dividends declared | 0 | 0 | (4,898) | 0 | 0 | (4,898) | |
Acquisition of treasury stock | 0 | 0 | 0 | $ (447) | 0 | (447) | |
Acquisition of treasury stock, shares | 15,538 | ||||||
Stock options exercised | 0 | (8) | 0 | $ 851 | 0 | $ 843 | |
Stock options exercised, shares | (30,823) | (30,823) | |||||
Tax benefit o stock options exercised | 0 | 38 | 0 | $ 0 | 0 | $ 38 | |
Sale of treasury stock for ESOP | 0 | 21 | 0 | $ 110 | 0 | 131 | |
Sale of treasury stock for ESOP, shares | (3,967) | ||||||
Compensation expense related to stock options | 0 | 71 | 0 | $ 0 | 0 | 71 | |
Restricted stock awards | $ 0 | 102 | 0 | $ (13) | 0 | 89 | |
Restricted stock awards, shares | 8,450 | 450 | |||||
Delaware Bancshares acquisition | $ 43 | 12,107 | 0 | $ 0 | 0 | 12,150 | |
Delaware Bancshares acquisition, shares | 431,605 | ||||||
Common Stock, Ending Balance at Dec. 31, 2016 | 4,164,723 | 4,509 | |||||
Ending balance at Dec. 31, 2016 | $ 416 | 47,682 | 67,225 | $ (125) | (4,119) | 111,079 | |
Common Stock, Ending Balance at Dec. 31, 2016 | 4,164,723 | 4,509 | |||||
Ending balance at Dec. 31, 2016 | $ 416 | $ 47,682 | $ 67,225 | $ (125) | $ (4,119) | $ 111,079 | |
[1] | All amounts are net of tax. Amounts in parentheses indicate debits. |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidated Statements of Changes in Stockholders' Equity [Abstract] | |||
Cash dividends declared | $ 1.25 | $ 1.24 | $ 1.20 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net Income | $ 6,711 | $ 5,908 | $ 7,657 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for Loan Losses | 2,050 | 4,580 | 1,680 |
Depreciation | 726 | 551 | 572 |
Amortization of intangible assets | 122 | 105 | 121 |
Deferred income taxes | 746 | (387) | (51) |
Net amortization of securities premiums and discounts | 1,648 | 936 | 860 |
Net realized gain on sales of securities | (284) | (626) | (1,170) |
Earnings and proceeds on life insurance policies | (888) | (665) | (685) |
Loss on sales of fixed assets and foreclosed real estate owned | 11 | 427 | 920 |
Net gain on sale of mortgage loans | (54) | (113) | (150) |
Mortgage loans originated for sale | (1,685) | (4,297) | (4,269) |
Proceeds from sale of mortgage loans originated for sale | 1,739 | 4,410 | 4,419 |
Compensation expense related to stock options | 71 | 66 | 154 |
Compensation expense related to restricted stock | 89 | 55 | |
Decrease (increase) in accrued interest receivable | 346 | (24) | 83 |
Increase (decrease) in accrued interest payable | 17 | (9) | (57) |
Other, net | (27) | (419) | 447 |
Net Cash Provided by Operating Activities | 11,338 | 10,498 | 10,531 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Securities available for sale: Proceeds from sales | 110,748 | 44,976 | 66,263 |
Securities available for sale: Proceeds from maturities and principal reductions on mortgage-backed securities | 26,182 | 22,853 | 14,859 |
Securities available for sale: Purchases | (100,982) | (50,565) | (74,426) |
Proceeds from maturities on securities held-to-maturity | 175 | ||
Purchase of regulatory stock | (2,883) | (4,095) | (1,963) |
Redemption of regulatory stock | 4,455 | 2,397 | 3,126 |
Net increase in loans | (43,468) | (65,830) | (4,270) |
Proceeds from bank-owned life insurance | 205 | 75 | |
Purchase of bank-owned life insurance | (2,000) | ||
Purchase of premises and equipment | (511) | (290) | (193) |
Proceeds from sales of foreclosed real estate owned and fixed assets | 685 | 4,310 | 1,045 |
Acquisition, net of cash and cash equivalents acquired | 11,112 | ||
Net Cash Provided by (Used in) Investing Activities | 3,543 | (46,244) | 4,691 |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Net increase (decrease) in deposits | 47,213 | (9,035) | 18,762 |
Net (decrease) increase in short-term borrowings | (21,800) | 27,540 | (24,219) |
Repayment of long-term debt | (28,981) | (10,074) | (1,561) |
Proceeds from other borrowings | 29,000 | ||
Stock options exercised | 843 | 441 | 691 |
Tax benefit of stock options exercised | 38 | 16 | 17 |
ESOP purchase of shares from treasury stock | 131 | 146 | 150 |
Purchase of treasury stock | (447) | (127) | (179) |
Cash dividends paid | (4,714) | (4,527) | (4,370) |
Net Cash (Used in) Provided by Financing Activities | (7,717) | 33,380 | (10,709) |
Net Increase (Decrease) in Cash and Cash Equivalents | 7,164 | (2,366) | 4,513 |
CASH AND CASH EQUIVALENTS - BEGINNING | 10,010 | 12,376 | 7,863 |
CASH AND CASH EQUIVALENTS - ENDING | 17,174 | 10,010 | 12,376 |
Supplemental Disclosure of Cash Flow Information | |||
Cash payments for: Interest paid | 3,542 | 3,267 | 3,264 |
Cash payments for: Income taxes paid, net of refunds | 1,535 | 2,315 | 2,645 |
Supplemental Schedule of Noncash Investing Activities | |||
Transfers of loans to foreclosed real estate and repossession of other assets | 3,246 | 3,880 | 4,704 |
Dividends payable | 1,331 | $ 1,147 | $ 1,100 |
Merger with Delaware Bancshares, Inc. | |||
Noncash assets acquired: Securities available-for-sale | 208,488 | ||
Noncash assets acquired: Regulatory stock | 279 | ||
Noncash assets acquired: Loans | 116,674 | ||
Noncash assets acquired: Premises and equipment, net | 7,292 | ||
Noncash assets acquired: Accrued interest receivable | 1,626 | ||
Noncash assets acquired: Bank-owned life insurance | 14,762 | ||
Noncash assets acquired: Core deposit intangibles | 449 | ||
Noncash assets acquired: Deferred tax assets | 3,034 | ||
Noncash assets acquired: Other assets | 3,281 | ||
Noncash assets acquired: Goodwill | 1,616 | ||
Total Noncash assets acquired | 357,501 | ||
Liabilities assumed: | |||
Time deposits | 71,342 | ||
Deposits other than time deposits | 255,921 | ||
Borrowings | 21,232 | ||
Accrued interest payable | 95 | ||
Other liabilities | 7,873 | ||
Total Liabilities assumed | 356,463 | ||
Net Noncash Assets Acquired | 1,038 | ||
Cash Acquired | $ 14,977 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2016 | |
Basis of Presentation [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 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 Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
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 its markets in northeastern Pennsylvania and the Southern Tier of New York. 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 Delaware and Sullivan Counties, New York. Accordingly, the Bank has extended credit primarily to commercial entities and individuals in these areas 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 related 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. Regulatory Stock 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 considers the FHLB’s regulatory capital ratios, liquidity, and the fact that 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, 2016. 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, 2016 and 2015, respectively, were not impaired. Total servicing assets included in other assets as of December 31, 2016 and 2015, were $232,000 and $261,000 , 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 and general components. The specific component relates to loans that are classified as substandard. 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. 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 were acquired with impairment or 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 10 - 40 Furniture and equipment 3 - 10 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 select 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 two acquisitions the Company recorded goodwill in the amount of $11.3 million, representing the excess of amounts paid over the fair value of net assets of the institutions acquired. 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 impairment is determined, leading to a reduction of our net income for that period by the amount of the impairment loss. No impairment was recognized for the years ended December 31, 2016, 2015 and 2014. Other Intangible Assets At December 31, 2016, the Company had other intangible assets of $612,000 which is net of accumulated amortization of $732,000 . These intangible assets will continue to be amortized using the sum-of-the-years digits method of amortization over ten years. At December 31, 2015, the Company had other intangible assets of $285,000 which was net of accumulated amortization of $610,000 . Amortization expense related to other intangible assets was $122,000 , $105,000 and $121,000 for the years ended December 31, 2016, 2015 and 2014. As of December 31, 2016, the estimated future amortization expense for the core deposit intangible is as follows (in thousands): 2017 $ 150 2018 126 2019 101 2020 77 2021 52 Thereafter 106 $ 612 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, 2016 or 2015 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 less any unvested restricted shares. 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. Employee Benefit Plans The Company has a defined contributory profit-sharing plan which includes provisions of a 401 (k) plan. The Company’s contributions are expensed as the cost is incurred. The Company has several supplemental executive retirement plans. To fund the benefits under these plans, the Company is the owner of single premium life insurance policies on the particiapants. The Company provides pension benefits to eligible employees. The Company’s funding policy is to contribute the minimum required contributions annually. 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 for stock options 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. Restricted Stock The Company recognizes compensation cost related to restricted stock based on the market price of the stock at the grant date over the vesting period. The product of the number of shares granted and the grant date market price of the Company’s common stock determines the fair value of restricted stock under the Company’s 2014 Equity Incentive Plan. The Company recognizes compensation expense for the fair value of the restricted stock on a straight-line basis over the requisite service period for the entire award. 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 on 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. Certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities and defined benefit pension obligations, 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 services 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 May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (a new revenue recognition standard). The Update’s core principle is that a company will recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this Update specifies the accounting for certain costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. This Update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . This Update applies to all entities that hold financial assets or owe financial liabilities and is intended to provide more useful information on the recognition, measurement, presentation, and disclosure of financial instruments. Among other things, this Update (a) requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; (b) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (c) eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities; (d) eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (e) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (f) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and (g) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. For all other entities, including not-for-profit entities and employee benefit plans within the scope of Topics 960 through 965 on plan accounting, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. All entities that are not public business entities may adopt the amendments in this Update earlier as of the fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The standard requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. A short-term lease is defined as one in which (a) the lease term is 12 months or less and (b) there is not an option to purchase the underlying asset that the lessee is reasonably certain to exercise. For short-term leases, lessees may elect to recognize lease payments over the lease term on a straight-line basis. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within those years. For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, and for interim periods within fiscal years beginning after December 15, 2020. The amendments should be applied at the beginning of the earliest period presented using a modified retrospective approach with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is currently assessing practical expedients it may elect at adoption, but does not anticipate the amendments will have a significant impact to the financial statements. Based on the Company’s preliminary analysis of its current portfolio, the impact to the Company’s balance sheet is estimated to result in less than a 1% increase in assets and liabilities. The Company also anticipates additional disclosures to be provided at adoption. In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718) . The amendments in this Update affect all entities that issue share-based payment awards to their employees. The standards in this Update provide simplification for several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as with equity or liabilities, and classification on the statement of cash flows. Some of the areas for simplification apply only to nonpublic entities. In addition to those simplifications, the amendments eliminate the guidance in Topic 718 that was indefinitely deferred shortly after the issuance of FASB Statement No. 123 (revised 2004), Share-Based Payment . This should not result in a change in practice because the guidance that is being superseded was never effective. For public business entities, the amendments in this Update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. For all other entities, the amendments are effective for annual periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018. Early adoption is permitted for any entity in any interim or annual period. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which changes the impairment model for most financial assets. This Update is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The underlying premise of the Update is that financial assets measured at amortized cost should be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The allowance for credit losses should reflect management’s current estimate of credit losses that are expected to occur over the remaining life of a financial asset. The income statement will be effected for the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019, and early adoption is permitted for annual and interim periods beginning after December 15, 2018. With certain exceptions, transition to the new requirements will be through a cumulative effect adjustment to opening retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations . In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”), which addresses eight specific cash flow issues with the objective of reducing diversity in practice. Among these include recognizing cash payments for debt prepayment or debt extinguishment as cash outflows for financing activities; cash proceeds received from the settlement of insurance claims should be classified on the basis of the related ins |
Securities
Securities | 12 Months Ended |
Dec. 31, 2016 | |
Securities [Abstract] | |
SECURITIES | NOTE 3 - SECURITIES The amortized cost, gross unrealized gains and losses, and fair value of securities were as follows: December 31, 2016 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In Thousands) AVAILABLE FOR SALE: U.S. Treasury securities $ 2,005 $ - $ (8) $ 1,997 States and political subdivisions 127,585 884 (3,368) 125,101 Corporate obligations 10,255 37 (180) 10,112 Mortgage-backed securities- government sponsored entities 169,124 26 (4,220) 164,930 Total debt securities 308,969 947 (7,776) 302,140 Equity securities-financial services 320 104 - 424 $ 309,289 $ 1,051 $ (7,776) $ 302,564 December 31, 2015 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In Thousands) AVAILABLE FOR SALE: U.S. Government agencies $ 9,275 $ 2 $ (108) $ 9,169 States and political subdivisions 59,120 1,747 (112) 60,755 Corporate obligations 4,933 45 (4) 4,974 Mortgage-backed securities- government sponsored entities 64,491 23 (945) 63,569 Total debt securities 137,819 1,817 (1,169) 138,467 Equity securities-financial services 292 92 - 384 $ 138,111 $ 1,909 $ (1,169) $ 138,851 The following tables show the Company’s investments’ gross unrealized losses and fair value aggregated by security type and length of time that individual securities have been in a continuous unrealized loss position (in thousands): December 31, 2016 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury securities $ 1,997 $ (8) $ - $ - $ 1,997 $ (8) States and political subdivisions 90,109 (3,362) 205 (6) 90,314 (3,368) Corporate obligations 6,895 (180) - - 6,895 (180) Mortgage-backed securities-government sponsored entities 152,614 (3,912) 9,967 (308) 162,581 (4,220) $ 251,615 $ (7,462) $ 10,172 $ (314) $ 261,787 $ (7,776) December 31, 2015 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 $ 6,058 $ (71) $ 2,109 $ (37) $ 8,167 $ (108) States and political subdivisions 9,086 (99) 1,417 (13) 10,503 (112) Corporate obligations 2,221 (4) - - 2,221 (4) Mortgage-backed securities-government sponsored entities 40,300 (432) 16,595 (513) 56,895 (945) $ 57,665 $ (606) $ 20,121 $ (563) $ 77,786 $ (1,169) The Company has 235 debt securities in the less than twelve month category and 12 debt securities in the twelve months or more category as of December 31, 2016. 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 2016. 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 debt securities as of December 31, 2016 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. Amortized Fair Cost Value (In Thousands) Due in one year or less $ 2,240 $ 2,243 Due after one year through five years 24,272 23,996 Due after five years through ten years 45,285 43,577 Due after ten years 68,048 67,394 139,845 137,210 Mortgage-backed securities - government sponsored entities 169,124 164,930 $ 308,969 $ 302,140 Gross realized gains and gross realized losses on sales of securities available for sale were $284,000 and $0 , respectively, in 2016, compared to $626,000 and $0 , respectively, in 2015, and $1,199,000 and $29,000 , respectively, in 2014. The proceeds from the sales of securities totaled $110,748,000, $44,976,000 and $66,263,000 for the years ended December 31, 2016, 2015 and 2014, respectively. Securities with a carrying value of $230,263,000 and $97,671,000 at December 31, 2016 and 2015, respectively, were pledged to secure public deposits, securities sold under agreements to repurchase and for other purposes as required or permitted by law. The increase reflects pledging requirements resulting from the acquisition of Delaware. |
Loans Receivable and Allowance
Loans Receivable and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2016 | |
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 (in thousands): December 31, 2016 December 31, 2015 Real Estate: Residential $ 237,177 33.2 % $ 161,820 28.9 % Commercial 320,187 44.8 279,123 49.8 Construction 19,709 2.8 18,987 3.4 Commercial, financial and agricultural 85,508 12.0 71,090 12.7 Consumer loans to individuals 51,524 7.2 29,231 5.2 Total loans 714,105 100.0 % 560,251 100.0 % Deferred fees, net (216) (326) Total loans receivable 713,889 559,925 Allowance for loan losses (6,463) (7,298) Net loans receivable $ 707,426 $ 552,627 The following table presents the components of the purchase accounting adjustments related to the purchased credit-impaired loans acquired: (In Thousands) July 31, 2016 Contractually required principal and interest $ 2,621 Non-accretable discount (1,014) Expected cash flows 1,607 Accretable discount (239) Estimated fair value $ 1,368 Changes in the accretable yield for purchased credit-impaired loans were as follows for the twelve months ended December 31: (In thousands) 2016 2015 2014 Balance at beginning of period $ - $ 8 $ 20 Additions 239 - - Accretion (30) (1) (12) (12) Reclassification and other (1) (7) - - Balance at end of period $ 208 $ - $ 8 The following table presents additional information regarding loans acquired and accounted for in accordance with ASC 310-30 (in thousands): December 31, 2016 December 31, 2015 Outstanding Balance $ 1,821 $ 498 Carrying Amount $ 1,386 $ 498 There were no material increases or decreases in the expected cash flows of these loans since the acquisition date. There has been no allowance for loan losses recorded for acquired loans with specific evidence of deterioration in credit quality. As of December 31, 2016, for loans that were acquired prior to 2016 with or 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. For loans that were acquired in 2016 with or without specific evidence of deterioration in credit quality, there were no adjustments to the allowance for loan losses 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. The 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. The following tables show 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 (In thousands) December 31, 2016 Individually evaluated for impairment $ 23 $ 2,601 $ - $ - $ - $ 2,624 Loans acquired with deteriorated credit quality 821 565 - - - 1,386 Collectively evaluated for impairment 236,333 317,021 19,709 85,508 51,524 710,095 Total Loans $ 237,177 $ 320,187 $ 19,709 $ 85,508 $ 51,524 $ 714,105 Real Estate Loans Commercial Consumer Residential Commercial Construction Loans Loans Total (In thousands) December 31, 2015 Individually evaluated for impairment $ 28 $ 8,659 $ - $ 43 $ - $ 8,730 Loans acquired with deteriorated credit quality 140 358 - - - 498 Collectively evaluated for impairment 161,652 270,106 18,987 71,047 29,231 551,023 Total Loans $ 161,820 $ 279,123 $ 18,987 $ 71,090 $ 29,231 $ 560,251 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 December 31, 2016 (In thousands) With no related allowance recorded: Real Estate Loans Residential $ 23 $ 28 $ - Commercial 2,601 3,427 - Subtotal 2,624 3,455 - Total: Real Estate Loans Residential 23 28 - Commercial 2,601 3,427 - Total Impaired Loans $ 2,624 $ 3,455 $ - Unpaid Recorded Principal Associated Investment Balance Allowance December 31, 2015 (In thousands) With no related allowance recorded: Real Estate Loans Residential $ 168 $ 173 $ - Commercial 2,644 4,610 - Commercial, financial and agricultural 43 43 Subtotal 2,855 4,826 - With an allowance recorded: Real Estate Loans Commercial 6,373 6,446 1,613 Subtotal 6,373 6,446 1,613 Total: Real Estate Loans Residential 168 173 - Commercial 9,017 11,056 1,613 Commercial, financial and agricultural 43 43 - Total Impaired Loans $ 9,228 $ 11,272 $ 1,613 The following information for impaired loans is presented for the years ended December 31, 2016, 2015 and 2014: Average Recorded Average Recorded Interest Income Investment Recognized 2016 2015 2014 2016 2015 2014 (In thousands) Total: Real Estate Loans Residential $ 25 $ 159 $ 233 $ - $ 4 $ 5 Commercial 2,671 8,847 7,492 91 526 503 Commercial Loans - 9 - - 2 - Total Loans $ 2,696 $ 9,015 $ 7,725 $ 91 $ 532 $ 508 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, 2016, troubled debt restructured loans totaled $1.5 million and resulted in specific reserves of $0 . During 2016, there were no new loan relationships identified as troubled debt restructurings, while one loan with a balance of $5.0 million as of December 31, 2015 was transferred to Foreclosed Real Estate Owned during 2016 as a result of foreclosure on the property and one loan relationship with a balance of $82,000 as of December 31, 2015 was charged-off in 2016. During 2016, the Company recognized charge-offs totaling $2.6 million on loans classified as troubled debt restructurings. As of December 31, 2015, troubled debt restructured loans totaled $6.8 million and resulted in specific reserves of $1,613,000 . During 2015, there were two new loan relationships identified as troubled debt restructurings totaling $176,000 based on executed modification agreements, while one loan with a balance of $1.7 million as of December 31, 2014 was transferred to Foreclosed Real Estate Owned during 2015 as a result of foreclosure on the property. During 2015, the Company recognized charge-offs totaling $1.3 million on loans classified as troubled debt restructurings. Additionally, the Company recognized expenses of $322,000 in foreclosed real estate owned expense related to a property which was previously classified as a troubled debt restructuring. Foreclosed assets acquired in settlement of loans are carried at fair value less estimated costs to sell and are included in foreclosed real estate owned on the Consolidated Balance Sheets. As of December 31, 2016 and 2015, foreclosed real estate owned totaled $5,302,000 and $2,847,000 , respectively. As of December 31, 2016, included within foreclosed real estate owned is $297,000 of consumer residential mortgages that were foreclosed on or received via a deed in lieu transaction prior to the period end. As of December 31, 2016, the Company has initiated formal foreclosure proceedings on $421,000 of consumer residential mortgage loans. 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 nonperformance, 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 $1,000,000 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, 2016 and December 31, 2015 (in thousands): Special Pass Mention Substandard Doubtful Loss Total December 31, 2016 Commercial real estate loans $ 310,432 $ 5,432 $ 4,323 $ - $ - $ 320,187 Commercial 84,600 885 23 - - 85,508 Total $ 395,032 $ 6,317 $ 4,346 $ - $ - $ 405,695 Special Pass Mention Substandard Doubtful Loss Total December 31, 2015 Commercial real estate loans $ 267,892 $ 1,837 $ 9,394 $ - $ - $ 279,123 Commercial 71,047 - 43 - - 71,090 Total $ 338,939 $ 1,837 $ 9,437 $ - $ - $ 350,213 For residential real estate loans, construction loans and consumer loans, the Company evaluates credit quality based on the performance of the individual credits. Nonperforming loans include loans that have been placed on nonaccrual status and loans remaining in accrual status on which the contractual payment of principal and interest has become 90 days past due. The following table presents the recorded investment in the loan classes based on payment activity as of December 31, 2016 and December 31, 2015 (in thousands): Performing Nonperforming Total December 31, 2016 Residential real estate loans $ 235,829 $ 1,137 $ 237,177 Construction 19,681 28 19,709 Consumer loans to individuals 51,524 - 51,524 Total $ 307,034 $ 1,165 $ 308,410 Performing Nonperforming Total December 31, 2015 Residential real estate loans $ 161,380 $ 440 $ 161,820 Construction 18,987 - 18,987 Consumer loans to individuals 29,231 - 29,231 Total $ 209,598 $ 440 $ 210,038 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, 2016 and December 31, 2015 (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 December 31, 2016 Real Estate loans Residential $ 234,790 $ 986 $ 264 $ 1 $ 1,136 $ 2,387 $ 237,177 Commercial 318,979 445 1 - 762 1,208 320,187 Construction 19,681 - - - 28 28 19,709 Commercial loans 85,355 143 10 - - 153 85,508 Consumer loans 51,456 39 29 - - 68 51,524 Total $ 710,261 $ 1,613 $ 304 $ 1 $ 1,926 $ 3,844 $ 714,105 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 December 31, 2015 Real Estate loans Residential $ 160,683 $ 646 $ 51 $ - $ 440 $ 1,137 $ 161,820 Commercial 272,125 310 39 - 6,649 6,998 279,123 Construction 18,959 28 - - - 28 18,987 Commercial loans 71,043 4 - - 43 47 71,090 Consumer loans 29,179 41 11 - - 52 29,231 Total $ 551,989 $ 1,029 $ 101 $ - $ 7,132 $ 8,262 $ 560,251 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, 2015 $ 1,069 $ 5,506 $ 90 $ 397 $ 236 $ 7,298 Charge Offs (123) (2,711) - (15) (102) (2,951) Recoveries 6 15 - - 45 66 Provision for loan losses 140 1,813 (12) (75) 184 2,050 Ending balance, December 31, 2016 $ 1,092 $ 4,623 $ 78 $ 307 $ 363 $ 6,463 Ending balance individually evaluated for impairment $ - $ 3 $ - $ - $ - $ 3 Ending balance collectively evaluated for impairment $ 1,092 $ 4,620 $ 78 $ 307 $ 363 $ 6,460 (In thousands) Residential Real Estate Commercial Real Estate Construction Commercial Consumer Total Beginning balance, December 31, 2014 $ 1,323 $ 3,890 $ 222 $ 256 $ 184 $ 5,875 Charge Offs (224) (2,883) - - (91) (3,198) Recoveries 20 - - - 21 41 Provision for loan losses (50) 4,499 (132) 141 122 4,580 Ending balance, December 31, 2015 $ 1,069 $ 5,506 $ 90 $ 397 $ 236 $ 7,298 Ending balance individually evaluated for impairment $ - $ 1,613 $ - $ - $ - $ 1,613 Ending balance collectively evaluated for impairment $ 1,069 $ 3,893 $ 90 $ 397 $ 236 $ 5,685 (In thousands) Residential Real Estate Commercial Real Estate Construction Commercial Consumer Total Beginning balance, December 31, 2013 $ 1,441 $ 3,025 $ 898 $ 184 $ 160 $ 5,708 Charge Offs (270) (1,196) - - (80) (1,546) Recoveries - 2 - - 31 33 Provision for loan losses 152 2,059 (676) 72 73 1,680 Ending balance, December 31, 2014 $ 1,323 $ 3,890 $ 222 $ 256 $ 184 $ 5,875 Ending balance individually evaluated for impairment $ - $ 293 $ - $ - $ - $ 293 Ending balance collectively evaluated for impairment $ 1,323 $ 3,597 $ 222 $ 256 $ 184 $ 5,582 The recorded investment in impaired loans, not requiring an allowance for loan losses was $2,624,000 (net of charge-offs against the allowance for loan losses of $831,000 ) and $2,855,000 (net of charge-offs against the allowance for loan losses of $1,971,000 ) at December 31, 2016 and 2015, respectively. The recorded investment in impaired loans requiring an allowance for loan losses was $0 and $6,373,000 (net of a charge-off against the allowance for loan losses of $73,000 ) at December 31, 2016 and 2015, respectively. The specific reserve related to impaired loans was $0 for 2016 and $1,613,000 for 2015. For the years ended December 31, 2016 and 2015, the average recorded investment in these impaired loans was $2,696,000 , and $9,015,000, respectively, and the interest income recognized on these impaired loans was $91,000 and $532,000 , respectively. During the period ended December 31, 2016, the allowance for commercial real estate loans decreased from $5,506,000 to $4,623,000 . This $883,000 decrease in the required allowance was due to a $1,610,000 decrease in the specific reserve component resulting from the transfer of an impaired loan with a specific reserve allowance of $1,596,000 at December 31, 2015 to foreclosed real estate during 2016. This reduction was partially offset by a $419,000 increase in the allowance for commercial real estate loans due to an increase in the historical loss factor from 0.70% at December 31, 2015 to 0.80% on December 31, 2016. During the period ended December 31, 2015, the allowance for residential real estate loans decreased from $1,323,000 to $1,069,000 . This $254,000 decrease in the required allowance was due primarily to a decrease in the historical loss factor from 0.30% at December 31, 2014 to 0.23% on December 31, 2015. During the same period, the required allowance for commercial real estate loans increased from $3,890,000 at December 31, 2014 to $5,506,000 on December 31, 2015. This increase can be attributed to a $1,320,000 increase in the specific reserve component. Interest income that would have been recorded on loans accounted for on a non-accrual basis under the original terms of the loans was $1 63,000 , $515,000 and $451,000 for 2016, 2015 and 2014, respectively. As of December 31, 2016 and 2015, the Company considered its concentration of credit risk to be acceptable. As of December 31, 2016, the highest concentrations are in commercial rentals and the hospitality lodging industry, with loans outstanding of $71.8 million, or 70.7% of bank capital, to commercial rentals, and $50.9 million, or 50.1% of bank capital to the hospitality and lodging industry. Charge-offs on loans within these concentrations were $31,000 , $643,000 and $422,000 for the years ended December 31, 2016, 2015 and 2014, respectively. Gross realized gains and gross realized losses on sales of residential mortgage loans were $54,000 and $0 , respectively, in 2016 compared to $113,000 and $0 , respectively, in 2015 and $150,000 and $0 , respectively, in 2014. The proceeds from the sales of residential mortgage loans totaled $1.7 million, $4.4 million and $4.4 million for the years ended December 31, 2016, 2015 and 2014, respectively. As of December 31, 2016 and 2015, the outstanding value of loans serviced for others totaled $35.5 million and $32.9 million, respectively. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Premises and Equipment [Abstract] | |
PREMISES AND EQUIPMENT | NOTE 5 - PREMISES AND EQUIPMENT Components of premises and equipment at December 31 are as follows: 2016 2015 (In Thousands) Land and improvements $ 2,925 $ 2,316 Buildings and improvements 17,662 9,857 Furniture and equipment 6,351 4,415 26,938 16,588 Accumulated depreciation (13,407) (10,116) $ 13,531 $ 6,472 Depreciation expense totaled $726,000 , $551,000 and $572,000 for the years ended December 31, 2016, 2015 and 2014, respectively. Certain facilities are leased under various operating leases. Rental expense for these leases was $367,000 , $341,000 and $338,000 , respectively, for the years ended December 31, 2016, 2015 and 2014. Future minimum rental commitments under noncancellable leases as of December 31, 2016 were as follows (in thousands): 2017 $ 381 2018 381 2019 386 2020 394 2021 311 Thereafter 1,617 $ 3,470 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2016 | |
Deposits [Abstract] | |
DEPOSITS | NOTE 6 - DEPOSITS Aggregate time deposits in denominations of $250,000 or more were $63,982,000 and $22,041,000 at December 31, 2016 and 2015, respectively. Included in deposit accounts are deposits of three customer relationships totaling $84,095,000 at December 31, 2016. At December 31, 2016, the scheduled maturities of time deposits are as follows (in thousands): 2017 $ 174,814 2018 53,523 2019 34,710 2020 15,464 2021 16,867 Thereafter 179 $ 295,557 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2016 | |
Borrowings [Abstract] | |
BORROWINGS | NOTE 7 – BORROWINGS Short-term borrowings at December 31 consist of the following: 2016 2015 ( In Thousands) Securities sold under agreements to repurchase $ 32,811 $ 33,563 Federal Home Loan Bank short-term borrowings - 19,672 $ 32,811 $ 53,235 The outstanding balances and related information of short-term borrowings are summarized as follows: Years Ended December 31, 2016 2015 (Dollars In Thousands) Average balance during the year $ 41,593 $ 34,057 Average interest rate during the year 0.31 % 0.25 % Maximum month-end balance during the year $ 52,672 $ 55,183 Weighted average interest rate at the end of the year 0.32 % 0.36 % 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 $35,770,000 and $35,147,000 at December 31, 2016 and $36,797,000 and $36,316,000 at December 31, 2015, respectively, were pledged as collateral for these agreements. The securities underlying the agreements were under the Company’s control. The collateral pledged for repurchase agreements that are classified as secured borrowings is summarized as follows (in thousands): As of December 31, 2016 Remaining Contractual Maturity of the Agreements Overnight and continuous Up to 30 days 30-90 days Greater than 90 days Total Repurchase Agreements: Obligations of U.S. Government agencies $34,917 $0 $0 $230 $35,147 Total liability recognized for repurchase agreements $32,811 As of December 31, 2015 Remaining Contractual Maturity of the Agreements Overnight and continuous Up to 30 days 30-90 days Greater than 90 days Total Repurchase Agreements: Obligations of U.S. Government agencies $35,515 $139 $277 $385 $36,316 Total liability recognized for repurchase agreements $33,563 The Company has a line of credit commitment available from the FHLB of Pittsburgh for borrowings of up to $146,517,000 which expires in May, 2017. There were no borrowings under this line of credit at December 31, 2016. At December 31, 2015, there were $19,672,000 of borrowings outstanding on this line. The Company has a line of credit commitment available from Atlantic Community Bankers Bank for $7,000,000 which expires on June 30, 2017. There were no borrowings under this line of credit at December 31, 2016 and 2015. The Company has a line of credit commitment available from PNC Bank for $16,000,000 at December 31, 2016. There were no borrowings under this line of credit at December 31, 2016 and December 31, 2015. The Company also has a line of credit commitment from Zions Bank for $17,000,000 . There were no borrowings under this line of credit at December 31, 2016 and December 31, 2015. Other borrowings consisted of the following at December 31, 2016 and 2015: 2016 2015 (In Thousands) Notes with the FHLB: Convertible note due January 2017 at 4.71% $ 10,000 $ 10,000 Amortizing fixed rate borrowing due December 2017 at 1.27% 4,025 8,000 Amortizing fixed rate borrowing due January 2018 at 0.91% 662 1,267 Amortizing fixed rate borrowing due December 2018 at 1.42% 1,634 2,434 Amortizing fixed rate borrowing due June 2020 at 1.49% 7,078 9,033 Amortizing fixed rate borrowing due December 2020 at 1.71% 4,034 5,000 Amortizing fixed rate borrowing due March 2022 at 1.75% 4,568 5,392 $ 32,001 $ 41,126 The convertible note contains an option which allows the FHLB, at quarterly intervals, to change the note to an adjustable-rate advance at three-month LIBOR plus 17 basis points. If the note is converted, the option allows the Bank to put the funds back to the FHLB at no charge. Contractual maturities and scheduled cash flows of other borrowings at December 31, 2016 are as follows (in thousands): 2017 $ 19,253 2018 4,741 2019 3,930 2020 2,951 2021 899 2022 227 $ 32,001 The Bank’s maximum borrowing capacity with the FHLB was $316,832,000 of which $32,001,000 was outstanding at December 31, 2016. Advances from the FHLB are secured by qualifying assets of the Bank. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
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, not to exceed the limits set by the Internal Revenue Service. 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 and receive Company contributions after one year of employment. Eligible employees are able to contribute to the Plan at the beginning of the first quarterly period after their date of employment. Employee contributions vest immediately, 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 $538,000 , $445,000 and $445,000 for the years ended December 31, 2016, 2015 and 2014, respectively. The Company has a non-qualified supplemental executive retirement plan for the benefit of certain executive officers. At December 31, 2016 and 2015, other liabilities include $1,410,000 and $1,427,000 accrued under the Plan. Compensation expense includes approximately $121,000 , $122,000 and $124,000 relating to the supplemental executive retirement plan for 2016, 2015 and 2014, 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, 2016 and 2015, the cash value of these policies was $36,133,000 and $18,820,000 , respectively. As a result of its acquisition of Delaware, the Company has several Supplemental Executive Retirement Plans (“SERPs”) intended as a long-term incentive to designated officers and key employees. These SERPs provide for annual payments to these individuals after retirement. The Company’s expense pertaining to these plans amounted to $38,000 in 2016. At December 31, 2016, other liabilities included $1,563,000 related to these plans. The Company provides postretirement benefits in the form of split-dollar life arrangements to employees who meet the eligibility requirements. The net periodic postretirement benefit expense included in salaries and employee benefits was $26,000 , $89,000 and $87,000 for the years ended December 31, 2016, 2015 and 2014, respectively. Through its acquisition of Delaware, the Company also has a plan that provides certain retiring executives, at normal retirement age of 65 or early retirement at age 60, if certain criteria are met, a yearly supplemental benefit at a fixed dollar amount. The Company expensed $15,000 under this plan in 2016. At December 31, 2016, the liability under this plan was $602,000 . Through its acquisition of Delaware, the Company also has certain director fee deferral and continuation plans. These plans allow directors to defer current director fees and provide a benefit payment for a period of five to fifteen years. The Company expensed $1,000 under these plans in 2016. At December 31, 2016, the liability under these plans was $413,000 . Certain key executives have change in control agreements with the Company. These agreements provide certain potential benefits in the event of termination of employment following a change in control. The Company participates in the Pentegra Mulitemployer Defined Benefit Pension Plan (EIN 13-5645888 and Plan # 333) as a result of its acquisition of North Penn. As of December 31, 2016 and 2015, the Company’s Plan was 80.0% and 79.9% 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 $54,000 in 2016, $48,000 in 2015 and $17,000 in 2014. During the plan years ending December 31, 2016, 2015 and 2014, the Company made contributions of $54,000 , $48,000 and $17,000 , respectively. As a result of its acquisition of Delaware, the Company is a member of the New York State Bankers Retirement System. Substantially all full-time employees who were former employees of Delaware are covered under this defined benefit pension plan (the “Delaware Plan”). The Company’s funding policy is to contribute the minimum required contribution annually. Pension cost is computed using the projected unit credit actuarial cost method. Effective December 31, 2012, the Plan was closed to new participants and accrued benefits were frozen. The following table sets forth the projected benefit obligation and change in plan assets for the defined benefit pension plan at December 31: (in Thousands of Dollars) 2016 Change in projected benefit obligation: Projected benefit obligation at beginning of year $ - Projected benefit obligation acquired (8,843) Service cost (28) Interest cost (113) Actuarial loss 662 Benefits paid 238 Benefit obligation at end fo year $ (8,084) Change in plan assets: Fair value of plan assets at beginning of year $ - Fair value acquired 6,932 Actual return on plan assets 12 Benefits paid (242) Fair value of assets at end of year 6,702 Funded status at end of year $ (1,382) The Plan paid $238,000 in benefit payments in 2016. Estimated benefit payments under the Plan are expected to be approximately $482,000 , $490,000 , $480,000 , $481,000 and $471,000 for the next five years. Payments are expected to be approximately $2,263,000 in total for the five-year period ending December 31, 2026. No contributions were made in 2016. The Company is not required to make any contributions to the Plan in 2017.The decrease in the projected discount rate contributed approximately $117,000 to the overall increase in the projected benefit obligation for the year ended December 31, 2016. The accumulated benefit obligation for the deferred benefit pension plan was $8,084,000 at December 31, 2016. The following table sets forth the amounts recognized in accumulated other comprehensive income (in thousands): Transition asset $ - Prior service credit - Gain 490 Total $ 490 Net pension cost included the following components: (in Thousands of Dollars) 2016 Service cost benefits earned during the period $ 28 Interest cost on projected benefit obligaion 113 Actual return on assets (180) Net amortization and deferral - NET PERIODIC PENSION COST $ (39) The weighted average assumptions used to determine the benefit obligation at December 31 are as follows: 2016 Discount rate 3.90% The weighted average assumptions used to determine the net periodic pension cost at December 31 are as follows: 2016 Discount rate 3.18 % Expected long-term return on plan assets 6.50 % Rate of compensation increase 0.00 % The expected long-term return on plan assets was determined based upon expected returns on individual asset types included in the asset portfolio. The Plan’s weighted-average asset allocations at December 31, by asset category, are as follows: 2016 Cash equivalents 6.1 % Equity securities 47.9 % Fixed income securities 42.6 % Other 3.4 % 100.00 % The Plan’s overall investment strategy is to achieve a mix of approximately 97 percent of investments for long-term growth and 3 percent for near-term benefit payments with a wide diversification of asset types, fund strategies, and fund managers. The target allocation for pension assets is 0 to 20 percent cash equivalents, 40 to 60 percent equity securities, 40 to 60 percent fixed income securities, and 0 to 5 percent other. Cash equivalents consist primarily of government issues and short-term investment funds. Equity securities primarily include investments in common stock, depository receipts, preferred stock, and real estate investment trusts. Fixed income securities include corporate bonds, government issues, mortgaged backed securities, municipals, and other asset backed securities. The fair value of the Plan’s assets, by asset category, is as follows: December 31, 2016 Quoted Market Other Price in Observable Unobservable Active Markets Inputs Inputs Total (Level 1) (Level 2) (Level 3) (in thousands of dollars) Cash equivalents: Foreign currencies $ 11 $ 11 $ - $ - Short-term investment funds 33 - 33 - Equity securities: Common stock 1,430 1,430 - - Depository receipts 42 42 - - Commingled Pension Trust Fund 1,680 - 1,680 - Fixed income securities: Corporate bonds 307 - 307 - Government issue 1,112 - 1,112 - Mortgage-backed securities 4 - 4 - Collateralized mortgage obligations 68 - 68 - Commingled Pension Trust Fund 1,732 - 1,732 - Other 283 - - 283 Total $ 6,702 $ 1,483 $ 4,936 $ 283 The following table sets forth a summary of the changes in the Level 3 assets for the year ended December 31, 2016 (in thousands of dollars). Balance, December 31, 2015 $ - Purchase - Unrealized gain 2 83 Balance, December 31, 2016 $ 2 83 FASB authoritative guidance on accounting for deferred compensation and postretirement benefit aspects of endorsement split-dollar life insurance arrangements requires the recognition of a liability and related compensation expense for endorsement split-dollar life insurance that provides a benefit to an employee that extends to postretirement periods. The life insurance policies purchased for the purpose of providing such benefits do not effectively settle an entity’s obligation to the employee. Accordingly, the entity must recognize a liability and related compensation expense during the employee’s active service period based on the future cost of insurance to be incurred during the employee’s retirement. This expense is included in the SERP plan expense for 2016 discussed above. If the entity has agreed to provide the employee with a death benefit, then the liability for the future death benefit should be recognized by following the FASB authoritative guidance on employer’s accounting for postretirement benefits other than pensions. The accumulated postretirement benefit obligation was $405,000 at December 31, 2016. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 2015 2014 (In Thousands) Current $ 1,138 $ 2,019 $ 2,657 Deferred 746 (387) (51) $ 1,884 $ 1,632 $ 2,606 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, 2016 2015 2014 Tax at statutory rates 35.0 % 34.0 % 34.0 % Tax exempt interest income, net of interest expense disallowance (13.1) (11.3) (7.7) Nondeductible merger expenses 2.7 - - Incentive stock options 0.3 0.3 0.4 Earnings and proceeds on life insurance (2.8) (1.8) (1.5) Other (0.2) 0.4 0.2 21.9 % 21.6 % 25.4 % The net deferred tax asset included in other assets in the accompanying Consolidated Balance Sheets includes the following amounts of deferred tax assets and liabilities: 2016 2015 (In Thousands) Deferred tax assets: Allowance for loan losses $ 2,197 $ 2,481 Deferred compensation 1,430 485 Purchase price adjustment - 884 Core deposit intangible 485 - Prepaid expenses 267 - Pension liability 655 - Foreclosed real estate valuation allowance 19 305 AMT tax credit carryforward 260 - Net operating loss carryforward 2,147 - Net unrealized loss on securities 2,286 - Other 310 182 Total Deferred Tax Assets 10,056 4,337 Deferred tax liabilities: Premises and equipment 347 245 Deferred loan fees 192 172 Net unrealized gains on securities - 251 Net unrealized gain on pension liability 171 - Purchase price adjustment 357 - Total Deferred Tax Liabilities 1,067 668 Net Deferred Tax Asset $ 8,989 $ 3,669 The Company’s federal and state income tax returns for taxable years through 2013 have been closed for purposes of examination by the Internal Revenue Service and the Pennsylvania Department of Revenue. |
Regulatory Matters and Stockhol
Regulatory Matters and Stockholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
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, Tier 1 and Common Equity 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, 2016 and 2015, that the Company and the Bank meet all capital adequacy requirements to which they are subject. As of December 31, 2016, 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 Company’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, 2016: Total capital (to risk-weighted assets) $ 107,765 14.12 % ≥$61,057 ≥8.00 % ≥$76,321 ≥10.00 % Tier 1 capital (to risk-weighted assets) 101,302 13.27 ≥45,793 ≥6.00 ≥61,057 ≥8.00 Common Equity Tier 1 capital (to risk-weighted assets) 101,302 13.27 ≥34,344 ≥4.50 ≥49,609 ≥6.50 Tier 1 capital (to average assets) 101,302 9.16 ≥44,251 ≥4.00 ≥55,314 ≥5.00 As of December 31, 2015: Total capital (to risk-weighted assets) $ 97,750 17.09 % ≥$45,751 ≥8.00 % ≥$57,189 ≥10.00 % Tier 1 capital (to risk-weighted assets) 90,681 15.86 ≥34,313 ≥6.00 ≥45,751 ≥8.00 Common Equity Tier 1 capital (to risk-weighted assets) 90,681 15.86 ≥25,735 ≥4.50 ≥37,173 ≥6.50 Tier 1 capital (to average assets) 90,681 12.40 ≥29,252 ≥4.00 ≥36,565 ≥5.00 The Bank’s ratios do not differ significantly from the Company’s ratios presented above. Effective January 1, 2015, the Company and the Bank became subject to new regulatory capital rules which, among other things, impose a new common equity Tier 1 minimum capital requirement (4.5% of risk-weighted assets), set the minimum leverage ratio for all banking organizations at a uniform 4% of total assets, increased the minimum Tier 1 capital to risk-based assets requirement (from 4% to 6% of risk-weighted assets) and assigned a higher risk-weight ( 150% ) to exposures that are more than 90 days past due or are on nonaccrual status and to certain commercial real estate facilities that finance the acquisition, development or construction of real property. The new rules also require unrealized gains and losses on certain “available-for-sale” securities holdings to be included for purposes of calculating regulatory capital requirements unless a one-time opt out is exercised, which the Company and the Bank have done. The final rule limits a banking organization’s dividends, stock repurchases and other capital distributions, and certain discretionary bonus payments to executive officers, if the banking organization does not hold a “capital conservation buffer” consisting of 2.5% of common equity Tier 1 capital to risk-weighted assets above regulatory minimum risk-based requirements. The capital conservation buffer requirements will be phased in beginning January 1, 2016 and ending January 1, 2019, when the full capital conservation buffer will be effective. The Company and the Bank are in compliance with their respective new capital requirements, including the capital conservation buffer, as of December 31, 2016. 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, 2016 and 2015 was approximately $1,099,000 and $437,000 , 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, 2016, $63,246,000 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 Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Stock-Based Compensation [Abstract] | |
STOCK BASED COMPENSATION | NOTE 11 - STOCK BASED COMPENSATION 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 7,423 options to employees in 2015, 12,500 options to employees in 2014, and 28,600 options, which included 4,000 options granted to outside directors in 2013. No options were granted under this plan in 2016. As of December 31, 2016, there were 4,058 shares available for stock option awards to outside directors. At the Annual Meeting held on April 22, 2014, the Company’s shareholders approved the Norwood Financial Corp 2014 Equity Incentive Plan. An aggregate of 250,000 shares of authorized but unissued Common Stock of the Company were reserved for future issuance under the Plan. This includes up to 40,000 shares for awards to outside directors. The Plan also authorized the Company to award restricted stock to officers and outside directors, limited to 42,000 shares of restricted stock awards for officers and 8,000 shares of restricted stock awards for outside directors. Under this plan, the Company granted 24,450 shares in 2016 which included 16,000 options to employees, 6,000 shares of restricted stock to officers and 2,450 shares of restricted stock to directors. In 2015, the Company granted 13,727 shares which included 7,077 options to employees, 4,250 shares of restricted stock to officers and 2,400 shares of restricted stock to directors. In 2014, the Company granted 9,300 shares, which included 2,800 shares of restricted stock to outside directors. All shares granted in 2014 were for restricted stock. The restricted shares vest over a five -year period. The product of the number of shares granted and the grant date market price of the Company’s common stock determine the fair value of restricted stock under the company’s restricted stock plan. Management recognizes compensation expense for the fair value of restricted stock on a straight-line basis over the requisite service period for the entire award. As of December 31, 2016, there were 202,523 shares available for future awards under this plan, which includes 170,173 shares available for officer awards and 32,350 shares available for awards to outside directors. Included in these totals are 25,250 shares available for restricted stock awards to officers and 350 shares available for restricted stock awards to outside directors. Total unrecognized compensation cost related to stock options was $93,000 as of December 31, 2016, $71,000 as of December 31, 2015 and $66,000 as of December 31, 2014. Salaries and employee benefits expense includes $71,000 , $66,000 and $154,000 of compensation costs related to options for the years ended December 31, 2016, 2015 and 2014, respectively. Compensation costs related to restricted stock amounted to $89,000 , $55,000 and $0 for the years ended December 31, 2016, 2015 and 2014, respectively. The expected future compensation expense relating to non-vested restricted stock outstanding as of December 31, 2016 and 2015 was $579,000 and $398,000 respectively. Net income was reduced by $130,000 , $92,000 and $146,000 for the years ended December 31, 2016, 2015 and 2014, respectively. A summary of the Company’s stock option activity and related information for the years ended December 31 follows: 2016 2015 2014 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 194,521 $ 26.91 206,463 $ 26.74 219,540 $ 26.64 Granted 16,000 33.56 14,500 28.55 12,500 29.08 Exercised (30,823) 27.34 (16,859) 26.19 (25,577) 27.05 Forfeited (19,269) 27.86 (9,583) 27.02 - - Outstanding, end of year 160,429 $ 27.37 $ 931,963 194,521 $ 26.91 $ 362,754 206,463 $ 26.74 $ 477,640 Exercisable, end of year 144,429 $ 26.39 $ 931,963 180,021 $ 26.78 $ 359,854 193,963 $ 26.59 $ 477,640 Exercise prices for options outstanding as of December 31, 2016 ranged from $24.44 to $33.56 per share. The weighted average remaining contractual life is 5.6 years. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions: Years Ended December 31, 2016 2015 2014 Dividend yield 3.93% 3.77% 3.57% Expected life 10 years 10 years 10 years Expected volatility 24.84% 24.35% 24.97% Risk-free interest rate 2.44% 2.28% 2.17% Weighted average fair value of options granted $ 5.79 $ 4.89 $ 5.30 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 $843,000 in 2016. 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 2016, all the shares issued in connection with stock option exercises, 3 0,823 shares in total, were issued from available treasury shares. As of December 31, 2016, outstanding stock options consist of the following: Average Average Options Exercise Remaining Options Exercise Outstanding Price Life, Years Exercisable Price 12,650 $ 28.41 1.0 12,650 $ 28.41 13,200 25.00 2.0 13,200 25.00 12,650 25.99 3.0 12,650 25.99 1,100 24.44 3.2 1,100 24.44 15,229 25.25 4.0 15,229 25.25 19,800 24.97 5.0 19,800 24.97 21,450 27.05 6.0 21,450 27.05 1,100 27.55 6.0 1,100 27.55 2,000 28.95 6.7 2,000 28.95 21,250 26.90 7.0 21,250 26.90 10,000 29.08 8.0 10,000 29.08 14,000 28.55 9.0 14,000 28.55 16,000 33.56 10.0 - - Total 160,429 144,429 A summary of the Company’s restricted stock activity and related information for the years ended December 31 is as follows: 2016 2015 Weighted-Average Weighted-Average Number of Grant Date Number of Grant Date Shares Fair Value Shares Fair Value Non-vested, beginning of year 13,810 $28.82 9,300 $29.08 Granted 8,450 33.56 6,650 28.55 Vested (3,120) 28.85 (1,860) 29.08 Forfeited (450) 28.80 (280) 29.08 Non-vested at December 31 18,690 $30.96 13,810 $28.82 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 2015 2014 (In Thousands, Except Per Share Data) Numerator, net income $ 6,711 $ 5,908 $ 7,657 Denominator: Weighted average shares outstanding 3,877 3,682 3,645 Less: Weighted average unvested restricted shares (14) (9) - Denominator: Basic earnings per share 3,863 3,673 3,645 Weighted average shares outstanding 3,863 3,682 3,645 Add: Dilutive effect of stock options 22 9 12 Denominator: Diluted earnings per share 3,885 3,691 3,657 Basic earnings per common share $ 1.74 $ 1.60 $ 2.10 Diluted earnings per common share $ 1.73 $ 1.60 $ 2.10 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 16,000 , 14,000 , and 12,500 for the years ended December 31, 2016, 2015 and 2014, respectively, based on the closing price of the Company’s common stock which was $33.14 , $28.75 and $29.05 at December 31, 2016, 2015 and 2014, respectively. |
Off-Balance Sheet Financial Ins
Off-Balance Sheet Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Off-Balance Sheet Financial Instruments [Abstract] | |
Off-Balance Sheet Financial Instruments | 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, 2016 2015 (In Thousands) Commitments to grant loans $ 22,210 $ 19,704 Unfunded commitments under lines of credit 54,789 48,641 Standby letters of credit 5,642 5,286 $ 82,641 $ 73,631 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 Values of Financial Instru
Fair Values of Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Fair Values of Financial Instruments [Abstract] | |
FAIR VALUES OF FINANCIAL INSTRUMENTS | 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, 2016 and 2015 are as follows (in thousands): Fair Value Measurement Reporting Date using Description Total Level 1 Level 2 Level 3 December 31, 2016 Available for Sale: U.S. Treasury securities $ 1,997 $ - $ 1,997 $ - States and political subdivisions 125,101 - 125,101 - Corporate obligations 10,112 - 10,112 - Mortgage-backed securities-government sponsored entities 164,930 - 164,930 - Equity securities-financial services 424 424 - - Total available for sale $ 302,564 $ 424 $ 302,140 $ - December 31, 2015 Available for Sale: U.S. Government agencies $ 9,169 $ - $ 9,169 $ - States and political subdivisions 60,755 - 60,755 - Corporate obligations 4,974 - 4,974 - Mortgage-backed securities-government sponsored entities 63,569 - 63,569 - Equity securities-financial services 384 384 - - Total available for sale $ 138,851 $ 384 $ 138,467 $ - 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, 2016 and 2015 are as follows (in thousands): Fair Value Measurement Reporting Date using Description Total Level 1 Level 2 Level 3 December 31, 2016 Impaired Loans $ 2,624 $ - $ - $ 2,624 Foreclosed real estate 5,302 - - 5,302 December 31, 2015 Impaired Loans $ 7,615 $ - $ - $ 7,615 Foreclosed real estate 2,847 - - 2,847 The following tables present additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value: Quantitative Information about Level 3 Fair Value Measurements (dollars in thousands) Fair Value Estimate Valuation Techniques Unobservable Input Range (Weighted Average) December 31, 2016 Impaired loans $ 1,473 Appraisal of collateral(1) Appraisal adjustments(2) 10% ( 10% ) Impaired loans $ 1,151 Present value of future cash flows Loan discount rate 4 -5.25% ( 5.11% ) Probability of default Foreclosed real estate owned $ 5,302 Appraisal of collateral(1) Liquidation Expenses(2) 10% Quantitative Information about Level 3 Fair Value Measurements (dollars in thousands) Fair Value Estimate Valuation Techniques Unobservable Input Range (Weighted Average) December 31, 2015 Impaired loans $ 2,574 Appraisal of collateral(1) Appraisal adjustments(2) 10% ( 10% ) Impaired loans $ 5,041 Present value of future cash flows Loan discount rate 4 -7% ( 5.61% ) Probability of default 0% Foreclosed real estate owned $ 2,847 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, 2016 and 2015. 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) 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, 2016, the fair value investment in impaired loans totaled $2,624,000 which included seven loans 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, 2016, the Company has recognized charge-offs against the allowance for loan losses on these impaired loans in the amount of $831,000 over the life of the loans. As of December 31, 2015, the fair value investment in impaired loans totaled $9,228,000 which included three loans for $6,373,000 for which a valuation allowance of $1,613,000 had been provided based on the estimated value of the collateral or the present value of estimated cash flows, and twenty loans for $2,855,000 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, 2015, the Company has recognized charge-offs against the allowance for loan losses on these impaired loans in the amount of $2,044,000 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 determined by estimating potential revenues and expenses of the various loan pools to arrive at a net cash flow stream, and then utilize present value methodologies on the cash flow stream at a current market yield. 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. T he estimated fair values of the Bank’s financial instruments were as follows at December 31, 2016 and December 31, 2015 (In thousands): Fair Value Measurements at December 31, 2016 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 17,174 $ 17,174 $ 17,174 $ - $ - Securities 302,564 302,564 424 302,140 - Loans receivable, net 707,426 716,661 - - 716,661 Mortgage servicing rights 232 250 - - 250 Regulatory stock 2,119 2,119 2,119 - - Bank owned life insurance 36,133 36,133 36,133 - - Accrued interest receivable 3,643 3,643 3,643 - - Financial liabilities: Deposits 925,385 925,561 629,829 - 295,732 Short-term borrowings 32,811 32,811 32,811 - - Other borrowings 32,001 31,863 - - 31,863 Accrued interest payable 1,069 1,069 1,069 - - Off-balance sheet financial instruments: Commitments to extend credit and outstanding letters of credit - - - - - Fair Value Measurements at December 31, 2015 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 10,010 $ 10,010 $ 10,010 $ - $ - Securities 138,851 138,851 384 138,467 - Loans receivable, net 552,627 559,416 - - 559,416 Mortgage servicing rights 261 291 - - 291 Regulatory stock 3,412 3,412 3,412 - - Bank owned life insurance 18,820 18,820 18,820 - - Accrued interest receivable 2,363 2,363 2,363 - - Financial liabilities: Deposits 550,909 551,175 354,162 - 197,013 Short-term borrowings 53,235 53,235 53,235 - - Other borrowings 41,126 41,260 - - 41,260 Accrued interest payable 957 957 957 - - Off-balance sheet financial instruments: Commitments to extend credit and outstanding letters of credit - - - - - |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive Income [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | NOTE 15 – ACCUMULATED OTHER COMPREHENSIVE INCOME The following tables present the changes in accumulated other comprehensive income (loss) (in thousands) by component, net of tax, for the years ended December 31, 2016 and 2015: Unrealized gains (losses) on available for sale Unrealized gain on securities (a) pension liability (a) Total (a) Balance as of December 31, 2015 $ 488 $ - $ 488 Other comprehensive loss before reclassification (4,740) 318 (4,422) Amount reclassified from accumulated other comprehensive income (185) - (185) Total other comprehensive loss (4,925) 318 (4,607) Balance as of December 31, 2016 $ (4,437) $ 318 $ (4,119) Unrealized gains on available for sale securities (a) Balance as of December 31, 2014 $ 462 Other comprehensive income before reclassification 439 Amount reclassified from accumulated other comprehensive income (413) Total other comprehensive income 26 Balance as of December 31, 2015 $ 488 (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 years ended December 31, 2016 and 2015: Amount Reclassified From Accumulated Affected Line Item in Other Consolidated Comprehensive Statement of Details about other comprehensive income Income (Loss) (a) Income Twelve months Twelve months ended ended December 31, December 31, 2016 2015 Unrealized gains on available for sale securities $ 284 $ 626 Net realized gains on sales of securities (99) (213) Income tax expense $ 185 $ 413 Net of tax (a) Amounts in parentheses indicate debits to net income . |
Acquisition of Delaware Bancsha
Acquisition of Delaware Bancshares, Inc. | 12 Months Ended |
Dec. 31, 2016 | |
Acquisition of Delaware Bancshares, Inc. [Abstract] | |
ACQUISITION OF DELAWARE BANCSHARES, INC. | NOTE 16 – ACQUISITION OF DELAWARE BANCSHARES, INC. On July 31, 2016 , Norwood Financial Corp. (the “Company”) closed on its acquisition of Delaware Bancshares, Inc. (“Delaware”) pursuant to the terms of the Agreement and Plan of Merger, dated March 10, 2016, by and among the Company, Wayne Bank, Delaware and The National Bank of Delaware Countyd (the “Merger Agreement”). Pursuant to the terms of the Merger Agreement, Delaware was merged with and into the Company, with the Company as the surviving corporation of the merger (the “Merger”). At the effective time of the Merger, each outstanding share of the common stock of Delaware was converted into, at the election of the holder but subject to the limitations and allocation and proration provisions set forth in the Merger Agreement, either $16.68 in cash or 0.6221 of a share of the common stock, par value $0.10 per share (the “Common Stock”) of the Company. In the aggregate, the merger consideration paid to Delaware shareholders consisted of approximately $3,860,000 in cash and 431,605 shares of Norwood common stock. Immediately following the Merger, The National Bank of Delaware County (“NBDC”) was merged with and into Wayne Bank, a wholly-owned subsidiary of the Company, with Wayne Bank as the surviving entity. In connection with the Merger, the Company assumed the obligations of Delaware under the Indenture, dated as of October 31, 2007, by and between Delaware, as issuer, and Wells Fargo Bank, National Association, as trustee (the “Indenture”) and Delaware’s Junior Subordinated Debt Securities, due January 1, 2038 (the “Debt Securities”) issued thereunder. The Debt Securities were issued by Delaware in connection with a private placement completed on October 31, 2007 of $8.0 million of trust preferred securities issued through the Delaware Bancshares Capital Trust I (the “Trust”). The proceeds from the initial sale of the trust preferred securities were used by the Trust to purchase the Debt Securities. The Debt Securities bore interest at a variable rate which reset quarterly at LIBOR plus 2.4% , and were redeemable, in whole or in part, without penalty, at the option of the Company, beginning on January 1, 2013 and on any January 1, April 1, July 1 or October 1 thereafter. The interest payments on the Debt Securities made by the Company were used to pay the quarterly distributions payable by the Trust to the holders of the trust preferred securities. On October 3, 2016, the Company redeemed the Debt Securities and the trust preferred securities in full. 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, appraised collateral values, expected cash flows, and historical loss factors of NBDC. The Company also recorded an identifiable intangible asset representing the core deposit base of NBDC 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 determine the fair value of investment securities. The business combination resulted in the acquisition of loans with and without evidence of credit quality deterioration. NBDC 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 non-accretable difference. At the acquisition date, the Company recorded $1,410,000 of purchased credit-impaired loans subject to a non-accretable difference of $260,000 . 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. NBDC’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, NBDC’s loan portfolio without evidence of deterioration totaled $111,307,000 and was recorded at a fair value of $109,693,000 . The following table summarizes the purchase of Delaware Bancshares, Inc. as of July 31, 2016: (Dollars in Thousands, Except Per Share Data) Purchase Price Consideration in Common Stock Delaware Bancshares, Inc. common shares settled for stock 694,114 Exchange Ratio 0.6221 Norwood Financial Corp. shares issued 431,605 Value assigned to Norwood Financial Corp. common share $ 28.15 Purchase price assigned to Delaware Bancshares, Inc. common shares $ 12,150 exchanged for Norwood Financial Corp. Purchase Price Consideration - Cash for Common Stock Delaware Bancshares, Inc. shares exchanged for cash 231,385 Purchase price paid to each Delaware Bancshares, Inc. common share exchanged for cash $ 16.68 Purchase price assigned to Delaware Bancshares, Inc. common shares exchanged for cash $ 3,860 Purchase price consideration - Cash-in-lieu of Fractional Shares 6 Total Purchase Price $ 16,016 Net Assets Acquired: Delaware Bancshares, Inc. shareholders' equity $ 19,357 Delaware Bancshares, Inc. goodwill and intangibles (7,640) Total tangible equity 11,717 Adjustments to reflect assets acquired at fair value: Investments 219 Loans Interest rate 1,486 General credit (1,614) Specific credit - non-amortizing (260) Specific credit - amortizing (239) Core deposit intangible 449 Deferred loan fees (296) Premises and equipment 3,053 Allowance for loan and lease losses 1,651 Deferred tax assets (1,417) Other (97) Adjustments to reflect liabilities acquired at fair value: Time deposits (252) 14,400 Goodwill resulting from merger $ 1,616 The following condensed statement reflects the values assigned to Delaware Bancshares, Inc. net assets as of acquisition date: (In Thousands) Total purchase price $ 16,016 Net assets acquired: Cash $ 14,977 Securities available for sale 208,488 Loans 116,674 Premises and equipment, net 7,292 Regulatory stock 279 Accrued interest receivable 1,626 Bank-owned life insurance 14,762 Core deposit intangible 449 Deferred tax assets 3,034 Other assets 3,282 Time deposits (71,342) Deposits other than time deposits (255,921) Borrowings (21,232) Accrued interest payable (95) Other liabilities (7,873) 14,400 Goodwill resulting from Delaware Bancshares, Inc., Merger $ 1,616 The Company recorded goodwill and other intangibles associated with the purchase of Delaware Bancshares, Inc. totaling $1,616,000 . Goodwill is not amortized, but is periodically evaluated for impairment. The Company did not recognize any impairment during the twelve months ended December 31, 2016. The carrying amount of the goodwill at December 31, 2016 related to the Delaware acquisition was $1,616,000 . Identifiable intangibles are amortized to their estimated residual values over the expected useful lives. The core deposit intangible recorded with the purchase of Delaware is being amortized over ten years. Such lives are also periodically reassessed to determine if any amortization period adjustments are required. During the twelve months ended December 31, 2016, no such adjustments were recorded. The identifiable intangible assets consist of a core deposit intangible which is being amortized on an accelerated basis over the useful life of such assets. The gross carrying amount of the core deposit intangible at December 31, 2016 was $449,000 with $14,000 accumulated amortization as of that date. As of December 31, 2016, the current year and estimated future amortization expense for the core deposit intangible is: (In thousands) 2017 $ 30 2018 30 2019 30 2020 30 2021 30 After five years 299 $ 449 Results of operations for Delaware Bancshares, Inc. prior to the acquisition date are not included in the Consolidated Statement of Income for the year ended December 31, 2016. Due to the significant amount of fair value adjustments, historical results of Delaware Bancshares, Inc. are not relevant to the Company’s results of operations. Therefore, no pro forma information is presented. The following table presents financial information regarding the former Delaware Bancshares, Inc. operations included in our Consolidated Statement of Income from the date of acquisition through December 31, 2016 under the column “Actual from acquisition date through December 31, 2016”. In addition, the following table presents unaudited pro forma information as if the acquisition of Delaware Bancshares, Inc. had occurred on January 1, 2016 and 2015 under the “Pro Forma” columns. The table below has been prepared for comparative purposes only and is not necessarily indicative of the actual results that would have been attained had the acquisition occurred as of the beginning of the periods presented, nor is it indicative of future results. Furthermore, the unaudited pro-forma information does not reflect management’s estimate of any revenue-enhancing opportunities nor anticipated cost savings as a result of the integration and consolidation of the acquisition. Merger and acquisition integration costs and amortization of fair value adjustments are included in the numbers below. Actual From Acquisition Date Through Pro Forma December 31, Year Ended December 31, (In Thousands, Except Per Share Data) 2016 2016 2015 Net interest income $ 3,900 $ 37,199 $ 33,787 Non-interest income 893 6,487 7,939 Net income 750 3,588 6,944 Pro forma earnings per share: Basic $ 0.18 $ 0.87 $ 1.69 Diluted $ 0.18 $ 0.87 $ 1.68 Nonrecurring merger and acquisition integration costs included in the pro-forma table above are (in thousands): Professional fees $ - $ 1,602 $ 80 Data processing related - 638 - Other - 810 - |
Norwood Financial Corp (Parent
Norwood Financial Corp (Parent Company Only) Financial Information | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 2015 (In Thousands) ASSETS Cash on deposit in bank subsidiary $ 3,005 $ 2,151 Securities available for sale 397 384 Investment in bank subsidiary 105,138 95,895 Other assets 4,539 4,113 Total assets $ 113,079 $ 102,543 LIABILITIES AND STOCKHOLDERS’ EQUITY Liabilities $ 2,000 $ 1,545 Stockholders’ equity 111,079 100,998 Total liabilities and stockholders' equity $ 113,079 $ 102,543 STATEMENTS OF INCOME Years Ended December 31, 2016 2015 2014 Income: (In Thousands) Dividends from bank subsidiary $ 28,598 $ 4,574 $ 4,377 Other interest income 12 11 10 28,610 4,585 4,387 Expenses 1,347 313 346 27,263 4,272 4,041 Income tax benefit (225) (103) (114) 27,488 4,375 4,155 Equity in undistributed earnings of subsidiary (20,777) 1,533 3,502 Net Income $ 6,711 $ 5,908 $ 7,657 Comprehensive Income $ 2,104 $ 5,934 $ 10,721 STATEMENTS OF CASH FLOWS Years Ended December 31, 2016 2015 2014 (In Thousands) CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 6,711 $ 5,908 $ 7,657 Adjustments to reconcile net income to net cash provided by operating activities: Undistributed earnings of bank subsidiary 20,777 (1,533) (3,502) Other, net (305) (19) 177 Net Cash Provided by Operating Activities 27,183 4,356 4,332 CASH FLOWS FROM INVESTING ACTIVITIES Outlays for busines acquisitions (2,324) - - Net Cash Used in Investing Activities (2,324) - - CASH FLOWS FROM FINANCING ACTIVITIES Repayment of borrowings (19,856) - - Stock options exercised 843 441 691 Tax benefit of stock options exercised 38 16 17 ESOP purchase of shares from treasury stock 131 146 150 Purchase of treasury stock (447) (127) (179) Cash dividends paid (4,714) (4,527) (4,370) Net Cash Used in Financing Activities (24,005) (4,051) (3,691) Net Increase in Cash and Cash Equivalents 854 305 641 CASH AND CASH EQUIVALENTS - BEGINNING 2,151 1,846 1,205 CASH AND CASH EQUIVALENTS - ENDING $ 3,005 $ 2,151 $ 1,846 |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
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 its markets in northeastern Pennsylvania and the Southern Tier of New York. 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 Delaware and Sullivan Counties, New York. Accordingly, the Bank has extended credit primarily to commercial entities and individuals in these areas 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 related 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. Regulatory Stock 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 considers the FHLB’s regulatory capital ratios, liquidity, and the fact that 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, 2016. |
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, 2016 and 2015, respectively, were not impaired. Total servicing assets included in other assets as of December 31, 2016 and 2015, were $232,000 and $261,000 , 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 and general components. The specific component relates to loans that are classified as substandard. 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. 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 were acquired with impairment or 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 10 - 40 Furniture and equipment 3 - 10 |
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 select 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 two acquisitions the Company recorded goodwill in the amount of $11.3 million, representing the excess of amounts paid over the fair value of net assets of the institutions acquired. 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 impairment is determined, leading to a reduction of our net income for that period by the amount of the impairment loss. No impairment was recognized for the years ended December 31, 2016, 2015 and 2014. |
Intangible Assets [Policy Text Block] | Other Intangible Assets At December 31, 2016, the Company had other intangible assets of $612,000 which is net of accumulated amortization of $732,000 . These intangible assets will continue to be amortized using the sum-of-the-years digits method of amortization over ten years. At December 31, 2015, the Company had other intangible assets of $285,000 which was net of accumulated amortization of $610,000 . Amortization expense related to other intangible assets was $122,000 , $105,000 and $121,000 for the years ended December 31, 2016, 2015 and 2014. As of December 31, 2016, the estimated future amortization expense for the core deposit intangible is as follows (in thousands): 2017 $ 150 2018 126 2019 101 2020 77 2021 52 Thereafter 106 $ 612 |
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, 2016 or 2015 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 less any unvested restricted shares. 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. |
Pension and Other Postretirement Plans, Policy [Policy Text Block] | Employee Benefit Plans The Company has a defined contributory profit-sharing plan which includes provisions of a 401 (k) plan. The Company’s contributions are expensed as the cost is incurred. The Company has several supplemental executive retirement plans. To fund the benefits under these plans, the Company is the owner of single premium life insurance policies on the particiapants. The Company provides pension benefits to eligible employees. The Company’s funding policy is to contribute the minimum required contributions annually. |
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 for stock options 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. Restricted Stock The Company recognizes compensation cost related to restricted stock based on the market price of the stock at the grant date over the vesting period. The product of the number of shares granted and the grant date market price of the Company’s common stock determines the fair value of restricted stock under the Company’s 2014 Equity Incentive Plan. The Company recognizes compensation expense for the fair value of the restricted stock on a straight-line basis over the requisite service period for the entire award. |
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 on 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. Certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities and defined benefit pension obligations, 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 services 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 May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (a new revenue recognition standard). The Update’s core principle is that a company will recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this Update specifies the accounting for certain costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. This Update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . This Update applies to all entities that hold financial assets or owe financial liabilities and is intended to provide more useful information on the recognition, measurement, presentation, and disclosure of financial instruments. Among other things, this Update (a) requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; (b) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (c) eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities; (d) eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (e) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (f) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and (g) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. For all other entities, including not-for-profit entities and employee benefit plans within the scope of Topics 960 through 965 on plan accounting, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. All entities that are not public business entities may adopt the amendments in this Update earlier as of the fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The standard requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. A short-term lease is defined as one in which (a) the lease term is 12 months or less and (b) there is not an option to purchase the underlying asset that the lessee is reasonably certain to exercise. For short-term leases, lessees may elect to recognize lease payments over the lease term on a straight-line basis. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within those years. For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, and for interim periods within fiscal years beginning after December 15, 2020. The amendments should be applied at the beginning of the earliest period presented using a modified retrospective approach with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is currently assessing practical expedients it may elect at adoption, but does not anticipate the amendments will have a significant impact to the financial statements. Based on the Company’s preliminary analysis of its current portfolio, the impact to the Company’s balance sheet is estimated to result in less than a 1% increase in assets and liabilities. The Company also anticipates additional disclosures to be provided at adoption. In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718) . The amendments in this Update affect all entities that issue share-based payment awards to their employees. The standards in this Update provide simplification for several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as with equity or liabilities, and classification on the statement of cash flows. Some of the areas for simplification apply only to nonpublic entities. In addition to those simplifications, the amendments eliminate the guidance in Topic 718 that was indefinitely deferred shortly after the issuance of FASB Statement No. 123 (revised 2004), Share-Based Payment . This should not result in a change in practice because the guidance that is being superseded was never effective. For public business entities, the amendments in this Update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. For all other entities, the amendments are effective for annual periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018. Early adoption is permitted for any entity in any interim or annual period. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which changes the impairment model for most financial assets. This Update is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The underlying premise of the Update is that financial assets measured at amortized cost should be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The allowance for credit losses should reflect management’s current estimate of credit losses that are expected to occur over the remaining life of a financial asset. The income statement will be effected for the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019, and early adoption is permitted for annual and interim periods beginning after December 15, 2018. With certain exceptions, transition to the new requirements will be through a cumulative effect adjustment to opening retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations . In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”), which addresses eight specific cash flow issues with the objective of reducing diversity in practice. Among these include recognizing cash payments for debt prepayment or debt extinguishment as cash outflows for financing activities; cash proceeds received from the settlement of insurance claims should be classified on the basis of the related insurance coverage; and cash proceeds received from the settlement of bank-owned life insurance policies should be classified as cash inflows from investing activities while the cash payments for premiums on bank-owned policies may be classified as cash outflows for investing activities, operating activities, or a combination of investing and operating activities. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The amendments in this Update should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s statement of cash flows. In October 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) (“ASU 2016-18”), which requires that a statement of cash flows explains the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The amendments in this Update should be applied using a retrospective transition method to each period presented. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s statement of cash flows. In December 2016, the FASB issued ASU 2016-19, Technical Corrections and Improvements , which represents changes to clarify, correct errors, or make minor improvements to the Accounting Standards Codification. The amendments make the Accounting Standards Codification easier to understand and easier to apply by eliminating inconsistencies and providing clarifications. Most of the amendments in this Update do not require transition guidance and are effective upon issuance of this Update. This Update is not expected to have a significant impact on the Company’s financial statements. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Premises and Equipment, Schedule of Useful Life [Table Text Block] | Years Buildings and improvements 10 - 40 Furniture and equipment 3 - 10 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | 2017 $ 150 2018 126 2019 101 2020 77 2021 52 Thereafter 106 $ 612 |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Securities [Abstract] | |
Amortized Cost and Fair Values of Securities [Table Text Block] | December 31, 2016 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In Thousands) AVAILABLE FOR SALE: U.S. Treasury securities $ 2,005 $ - $ (8) $ 1,997 States and political subdivisions 127,585 884 (3,368) 125,101 Corporate obligations 10,255 37 (180) 10,112 Mortgage-backed securities- government sponsored entities 169,124 26 (4,220) 164,930 Total debt securities 308,969 947 (7,776) 302,140 Equity securities-financial services 320 104 - 424 $ 309,289 $ 1,051 $ (7,776) $ 302,564 December 31, 2015 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In Thousands) AVAILABLE FOR SALE: U.S. Government agencies $ 9,275 $ 2 $ (108) $ 9,169 States and political subdivisions 59,120 1,747 (112) 60,755 Corporate obligations 4,933 45 (4) 4,974 Mortgage-backed securities- government sponsored entities 64,491 23 (945) 63,569 Total debt securities 137,819 1,817 (1,169) 138,467 Equity securities-financial services 292 92 - 384 $ 138,111 $ 1,909 $ (1,169) $ 138,851 |
Investments' Gross Unrealized Losses and Fair Value [Table Text Block] | December 31, 2016 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury securities $ 1,997 $ (8) $ - $ - $ 1,997 $ (8) States and political subdivisions 90,109 (3,362) 205 (6) 90,314 (3,368) Corporate obligations 6,895 (180) - - 6,895 (180) Mortgage-backed securities-government sponsored entities 152,614 (3,912) 9,967 (308) 162,581 (4,220) $ 251,615 $ (7,462) $ 10,172 $ (314) $ 261,787 $ (7,776) December 31, 2015 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 $ 6,058 $ (71) $ 2,109 $ (37) $ 8,167 $ (108) States and political subdivisions 9,086 (99) 1,417 (13) 10,503 (112) Corporate obligations 2,221 (4) - - 2,221 (4) Mortgage-backed securities-government sponsored entities 40,300 (432) 16,595 (513) 56,895 (945) $ 57,665 $ (606) $ 20,121 $ (563) $ 77,786 $ (1,169) |
Securities by Contractual Maturity [Table Text Block] | Amortized Fair Cost Value (In Thousands) Due in one year or less $ 2,240 $ 2,243 Due after one year through five years 24,272 23,996 Due after five years through ten years 45,285 43,577 Due after ten years 68,048 67,394 139,845 137,210 Mortgage-backed securities - government sponsored entities 169,124 164,930 $ 308,969 $ 302,140 |
Loans Receivable and Allowanc29
Loans Receivable and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Loans Receivable and Allowance for Loan Losses [Abstract] | |
Composition of Loans Receivable [Table Text Block] | December 31, 2016 December 31, 2015 Real Estate: Residential $ 237,177 33.2 % $ 161,820 28.9 % Commercial 320,187 44.8 279,123 49.8 Construction 19,709 2.8 18,987 3.4 Commercial, financial and agricultural 85,508 12.0 71,090 12.7 Consumer loans to individuals 51,524 7.2 29,231 5.2 Total loans 714,105 100.0 % 560,251 100.0 % Deferred fees, net (216) (326) Total loans receivable 713,889 559,925 Allowance for loan losses (6,463) (7,298) Net loans receivable $ 707,426 $ 552,627 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Table Text Block] | (In Thousands) July 31, 2016 Contractually required principal and interest $ 2,621 Non-accretable discount (1,014) Expected cash flows 1,607 Accretable discount (239) Estimated fair value $ 1,368 |
Changes In The Accretable Yield For Purchased Credit Impaired Loans [Table Text Block] | 2016 2015 2014 Balance at beginning of period $ - $ 8 $ 20 Additions 239 - - Accretion (30) (1) (12) (12) Reclassification and other (1) (7) - - Balance at end of period $ 208 $ - $ 8 |
Additional Information Regarding Loans Acquired and Accounted for in Accordance with ASC 310-30 [Table Text Block] | December 31, 2016 December 31, 2015 Outstanding Balance $ 1,821 $ 498 Carrying Amount $ 1,386 $ 498 |
Schedule of Loans Individually and Collectively Evaluated for Impairment [Table Text Block] | Real Estate Loans Commercial Consumer Residential Commercial Construction Loans Loans Total (In thousands) December 31, 2016 Individually evaluated for impairment $ 23 $ 2,601 $ - $ - $ - $ 2,624 Loans acquired with deteriorated credit quality 821 565 - - - 1,386 Collectively evaluated for impairment 236,333 317,021 19,709 85,508 51,524 710,095 Total Loans $ 237,177 $ 320,187 $ 19,709 $ 85,508 $ 51,524 $ 714,105 Real Estate Loans Commercial Consumer Residential Commercial Construction Loans Loans Total (In thousands) December 31, 2015 Individually evaluated for impairment $ 28 $ 8,659 $ - $ 43 $ - $ 8,730 Loans acquired with deteriorated credit quality 140 358 - - - 498 Collectively evaluated for impairment 161,652 270,106 18,987 71,047 29,231 551,023 Total Loans $ 161,820 $ 279,123 $ 18,987 $ 71,090 $ 29,231 $ 560,251 |
Impaired Loans and Related Interest Income by Loan Portfolio Class [Table Text Block] | Unpaid Recorded Principal Associated Investment Balance Allowance December 31, 2016 (In thousands) With no related allowance recorded: Real Estate Loans Residential $ 23 $ 28 $ - Commercial 2,601 3,427 - Subtotal 2,624 3,455 - Total: Real Estate Loans Residential 23 28 - Commercial 2,601 3,427 - Total Impaired Loans $ 2,624 $ 3,455 $ - Unpaid Recorded Principal Associated Investment Balance Allowance December 31, 2015 (In thousands) With no related allowance recorded: Real Estate Loans Residential $ 168 $ 173 $ - Commercial 2,644 4,610 - Commercial, financial and agricultural 43 43 Subtotal 2,855 4,826 - With an allowance recorded: Real Estate Loans Commercial 6,373 6,446 1,613 Subtotal 6,373 6,446 1,613 Total: Real Estate Loans Residential 168 173 - Commercial 9,017 11,056 1,613 Commercial, financial and agricultural 43 43 - Total Impaired Loans $ 9,228 $ 11,272 $ 1,613 The following information for impaired loans is presented for the years ended December 31, 2016, 2015 and 2014: Average Recorded Average Recorded Interest Income Investment Recognized 2016 2015 2014 2016 2015 2014 (In thousands) Total: Real Estate Loans Residential $ 25 $ 159 $ 233 $ - $ 4 $ 5 Commercial 2,671 8,847 7,492 91 526 503 Commercial Loans - 9 - - 2 - Total Loans $ 2,696 $ 9,015 $ 7,725 $ 91 $ 532 $ 508 |
Classes of the Loan Portfolio Summarized by the Aggregate Risk Rating [Table Text Block] | Special Pass Mention Substandard Doubtful Loss Total December 31, 2016 Commercial real estate loans $ 310,432 $ 5,432 $ 4,323 $ - $ - $ 320,187 Commercial 84,600 885 23 - - 85,508 Total $ 395,032 $ 6,317 $ 4,346 $ - $ - $ 405,695 Special Pass Mention Substandard Doubtful Loss Total December 31, 2015 Commercial real estate loans $ 267,892 $ 1,837 $ 9,394 $ - $ - $ 279,123 Commercial 71,047 - 43 - - 71,090 Total $ 338,939 $ 1,837 $ 9,437 $ - $ - $ 350,213 For residential real estate loans, construction loans and consumer loans, the Company evaluates credit quality based on the performance of the individual credits. Nonperforming loans include loans that have been placed on nonaccrual status and loans remaining in accrual status on which the contractual payment of principal and interest has become 90 days past due. The following table presents the recorded investment in the loan classes based on payment activity as of December 31, 2016 and December 31, 2015 (in thousands): Performing Nonperforming Total December 31, 2016 Residential real estate loans $ 235,829 $ 1,137 $ 237,177 Construction 19,681 28 19,709 Consumer loans to individuals 51,524 - 51,524 Total $ 307,034 $ 1,165 $ 308,410 Performing Nonperforming Total December 31, 2015 Residential real estate loans $ 161,380 $ 440 $ 161,820 Construction 18,987 - 18,987 Consumer loans to individuals 29,231 - 29,231 Total $ 209,598 $ 440 $ 210,038 |
Loan Portfolio Summarized by the Past Due Status [Table Text Block] | 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 December 31, 2016 Real Estate loans Residential $ 234,790 $ 986 $ 264 $ 1 $ 1,136 $ 2,387 $ 237,177 Commercial 318,979 445 1 - 762 1,208 320,187 Construction 19,681 - - - 28 28 19,709 Commercial loans 85,355 143 10 - - 153 85,508 Consumer loans 51,456 39 29 - - 68 51,524 Total $ 710,261 $ 1,613 $ 304 $ 1 $ 1,926 $ 3,844 $ 714,105 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 December 31, 2015 Real Estate loans Residential $ 160,683 $ 646 $ 51 $ - $ 440 $ 1,137 $ 161,820 Commercial 272,125 310 39 - 6,649 6,998 279,123 Construction 18,959 28 - - - 28 18,987 Commercial loans 71,043 4 - - 43 47 71,090 Consumer loans 29,179 41 11 - - 52 29,231 Total $ 551,989 $ 1,029 $ 101 $ - $ 7,132 $ 8,262 $ 560,251 |
Allowance for Loan Losses and Recorded Investment in Financing Receivables [Table Text Block] | 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, 2015 $ 1,069 $ 5,506 $ 90 $ 397 $ 236 $ 7,298 Charge Offs (123) (2,711) - (15) (102) (2,951) Recoveries 6 15 - - 45 66 Provision for loan losses 140 1,813 (12) (75) 184 2,050 Ending balance, December 31, 2016 $ 1,092 $ 4,623 $ 78 $ 307 $ 363 $ 6,463 Ending balance individually evaluated for impairment $ - $ 3 $ - $ - $ - $ 3 Ending balance collectively evaluated for impairment $ 1,092 $ 4,620 $ 78 $ 307 $ 363 $ 6,460 (In thousands) Residential Real Estate Commercial Real Estate Construction Commercial Consumer Total Beginning balance, December 31, 2014 $ 1,323 $ 3,890 $ 222 $ 256 $ 184 $ 5,875 Charge Offs (224) (2,883) - - (91) (3,198) Recoveries 20 - - - 21 41 Provision for loan losses (50) 4,499 (132) 141 122 4,580 Ending balance, December 31, 2015 $ 1,069 $ 5,506 $ 90 $ 397 $ 236 $ 7,298 Ending balance individually evaluated for impairment $ - $ 1,613 $ - $ - $ - $ 1,613 Ending balance collectively evaluated for impairment $ 1,069 $ 3,893 $ 90 $ 397 $ 236 $ 5,685 (In thousands) Residential Real Estate Commercial Real Estate Construction Commercial Consumer Total Beginning balance, December 31, 2013 $ 1,441 $ 3,025 $ 898 $ 184 $ 160 $ 5,708 Charge Offs (270) (1,196) - - (80) (1,546) Recoveries - 2 - - 31 33 Provision for loan losses 152 2,059 (676) 72 73 1,680 Ending balance, December 31, 2014 $ 1,323 $ 3,890 $ 222 $ 256 $ 184 $ 5,875 Ending balance individually evaluated for impairment $ - $ 293 $ - $ - $ - $ 293 Ending balance collectively evaluated for impairment $ 1,323 $ 3,597 $ 222 $ 256 $ 184 $ 5,582 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Premises and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Components of premises and equipment at December 31 are as follows: 2016 2015 (In Thousands) Land and improvements $ 2,925 $ 2,316 Buildings and improvements 17,662 9,857 Furniture and equipment 6,351 4,415 26,938 16,588 Accumulated depreciation (13,407) (10,116) $ 13,531 $ 6,472 |
Operating Leases of Lessee Disclosure [Table Text Block] | 2017 $ 381 2018 381 2019 386 2020 394 2021 311 Thereafter 1,617 $ 3,470 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deposits [Abstract] | |
Schedule of Maturities of Time Deposits [Table Text Block] | Aggregate time deposits in denominations of $250,000 or more were $63,982,000 and $22,041,000 at December 31, 2016 and 2015, respectively. Included in deposit accounts are deposits of three customer relationships totaling $84,095,000 at December 31, 2016. At December 31, 2016, the scheduled maturities of time deposits are as follows (in thousands): 2017 $ 174,814 2018 53,523 2019 34,710 2020 15,464 2021 16,867 Thereafter 179 $ 295,557 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Borrowings [Abstract] | |
Schedule of Short-term Debt [Table Text Block] | Short-term borrowings at December 31 consist of the following: 2016 2015 ( In Thousands) Securities sold under agreements to repurchase $ 32,811 $ 33,563 Federal Home Loan Bank short-term borrowings - 19,672 $ 32,811 $ 53,235 The outstanding balances and related information of short-term borrowings are summarized as follows: Years Ended December 31, 2016 2015 (Dollars In Thousands) Average balance during the year $ 41,593 $ 34,057 Average interest rate during the year 0.31 % 0.25 % Maximum month-end balance during the year $ 52,672 $ 55,183 Weighted average interest rate at the end of the year 0.32 % 0.36 % |
Schedule of remaining contractual maturity of repurchase agreements [Table Text Block] | As of December 31, 2016 Remaining Contractual Maturity of the Agreements Overnight and continuous Up to 30 days 30-90 days Greater than 90 days Total Repurchase Agreements: Obligations of U.S. Government agencies $34,917 $0 $0 $230 $35,147 Total liability recognized for repurchase agreements $32,811 As of December 31, 2015 Remaining Contractual Maturity of the Agreements Overnight and continuous Up to 30 days 30-90 days Greater than 90 days Total Repurchase Agreements: Obligations of U.S. Government agencies $35,515 $139 $277 $385 $36,316 Total liability recognized for repurchase agreements $33,563 |
Schedule of Federal Home Loan Bank, Advances, by Branch of FHLB Bank [Table Text Block] | 2016 2015 (In Thousands) Notes with the FHLB: Convertible note due January 2017 at 4.71% $ 10,000 $ 10,000 Amortizing fixed rate borrowing due December 2017 at 1.27% 4,025 8,000 Amortizing fixed rate borrowing due January 2018 at 0.91% 662 1,267 Amortizing fixed rate borrowing due December 2018 at 1.42% 1,634 2,434 Amortizing fixed rate borrowing due June 2020 at 1.49% 7,078 9,033 Amortizing fixed rate borrowing due December 2020 at 1.71% 4,034 5,000 Amortizing fixed rate borrowing due March 2022 at 1.75% 4,568 5,392 $ 32,001 $ 41,126 |
Schedule of Contractual Maturities of Other Borrowings [Table Text Block] | 2017 $ 19,253 2018 4,741 2019 3,930 2020 2,951 2021 899 2022 227 $ 32,001 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Pension Plans And Other Postretirement Benefits [Abstract] | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | (in Thousands of Dollars) 2016 Change in projected benefit obligation: Projected benefit obligation at beginning of year $ - Projected benefit obligation acquired (8,843) Service cost (28) Interest cost (113) Actuarial loss 662 Benefits paid 238 Benefit obligation at end fo year $ (8,084) Change in plan assets: Fair value of plan assets at beginning of year $ - Fair value acquired 6,932 Actual return on plan assets 12 Benefits paid (242) Fair value of assets at end of year 6,702 Funded status at end of year $ (1,382) |
Schedule of Amounts Recognized in Balance Sheet [Table Text Block] | Transition asset $ - Prior service credit - Gain 490 Total $ 490 |
Schedule of Net Benefit Costs [Table Text Block] | (in Thousands of Dollars) 2016 Service cost benefits earned during the period $ 28 Interest cost on projected benefit obligaion 113 Actual return on assets (180) Net amortization and deferral - NET PERIODIC PENSION COST $ (39) |
Schedule of Assumptions Used [Table Text Block] | The weighted average assumptions used to determine the benefit obligation at December 31 are as follows: 2016 Discount rate 3.90% The weighted average assumptions used to determine the net periodic pension cost at December 31 are as follows: 2016 Discount rate 3.18 % Expected long-term return on plan assets 6.50 % Rate of compensation increase 0.00 % |
Schedule of Allocation of Plan Assets [Table Text Block] | The Plan’s weighted-average asset allocations at December 31, by asset category, are as follows: 2016 Cash equivalents 6.1 % Equity securities 47.9 % Fixed income securities 42.6 % Other 3.4 % 100.00 % The Plan’s overall investment strategy is to achieve a mix of approximately 97 percent of investments for long-term growth and 3 percent for near-term benefit payments with a wide diversification of asset types, fund strategies, and fund managers. The target allocation for pension assets is 0 to 20 percent cash equivalents, 40 to 60 percent equity securities, 40 to 60 percent fixed income securities, and 0 to 5 percent other. Cash equivalents consist primarily of government issues and short-term investment funds. Equity securities primarily include investments in common stock, depository receipts, preferred stock, and real estate investment trusts. Fixed income securities include corporate bonds, government issues, mortgaged backed securities, municipals, and other asset backed securities. The fair value of the Plan’s assets, by asset category, is as follows: December 31, 2016 Quoted Market Other Price in Observable Unobservable Active Markets Inputs Inputs Total (Level 1) (Level 2) (Level 3) (in thousands of dollars) Cash equivalents: Foreign currencies $ 11 $ 11 $ - $ - Short-term investment funds 33 - 33 - Equity securities: Common stock 1,430 1,430 - - Depository receipts 42 42 - - Commingled Pension Trust Fund 1,680 - 1,680 - Fixed income securities: Corporate bonds 307 - 307 - Government issue 1,112 - 1,112 - Mortgage-backed securities 4 - 4 - Collateralized mortgage obligations 68 - 68 - Commingled Pension Trust Fund 1,732 - 1,732 - Other 283 - - 283 Total $ 6,702 $ 1,483 $ 4,936 $ 283 |
Schedule of Changes in Fair Value of Plan Assets [Table Text Block] | The following table sets forth a summary of the changes in the Level 3 assets for the year ended December 31, 2016 (in thousands of dollars). Balance, December 31, 2015 $ - Purchase - Unrealized gain 2 83 Balance, December 31, 2016 $ 2 83 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Years Ended December 31, 2016 2015 2014 (In Thousands) Current $ 1,138 $ 2,019 $ 2,657 Deferred 746 (387) (51) $ 1,884 $ 1,632 $ 2,606 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Percentage of Income before Income Taxes Years Ended December 31, 2016 2015 2014 Tax at statutory rates 35.0 % 34.0 % 34.0 % Tax exempt interest income, net of interest expense disallowance (13.1) (11.3) (7.7) Nondeductible merger expenses 2.7 - - Incentive stock options 0.3 0.3 0.4 Earnings and proceeds on life insurance (2.8) (1.8) (1.5) Other (0.2) 0.4 0.2 21.9 % 21.6 % 25.4 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 2016 2015 (In Thousands) Deferred tax assets: Allowance for loan losses $ 2,197 $ 2,481 Deferred compensation 1,430 485 Purchase price adjustment - 884 Core deposit intangible 485 - Prepaid expenses 267 - Pension liability 655 - Foreclosed real estate valuation allowance 19 305 AMT tax credit carryforward 260 - Net operating loss carryforward 2,147 - Net unrealized loss on securities 2,286 - Other 310 182 Total Deferred Tax Assets 10,056 4,337 Deferred tax liabilities: Premises and equipment 347 245 Deferred loan fees 192 172 Net unrealized gains on securities - 251 Net unrealized gain on pension liability 171 - Purchase price adjustment 357 - Total Deferred Tax Liabilities 1,067 668 Net Deferred Tax Asset $ 8,989 $ 3,669 |
Regulatory Matters and Stockh35
Regulatory Matters and Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016: Total capital (to risk-weighted assets) $ 107,765 14.12 % ≥$61,057 ≥8.00 % ≥$76,321 ≥10.00 % Tier 1 capital (to risk-weighted assets) 101,302 13.27 ≥45,793 ≥6.00 ≥61,057 ≥8.00 Common Equity Tier 1 capital (to risk-weighted assets) 101,302 13.27 ≥34,344 ≥4.50 ≥49,609 ≥6.50 Tier 1 capital (to average assets) 101,302 9.16 ≥44,251 ≥4.00 ≥55,314 ≥5.00 As of December 31, 2015: Total capital (to risk-weighted assets) $ 97,750 17.09 % ≥$45,751 ≥8.00 % ≥$57,189 ≥10.00 % Tier 1 capital (to risk-weighted assets) 90,681 15.86 ≥34,313 ≥6.00 ≥45,751 ≥8.00 Common Equity Tier 1 capital (to risk-weighted assets) 90,681 15.86 ≥25,735 ≥4.50 ≥37,173 ≥6.50 Tier 1 capital (to average assets) 90,681 12.40 ≥29,252 ≥4.00 ≥36,565 ≥5.00 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stock-Based Compensation [Abstract] | |
Summary of Stock Option Activity [Table Text Block] | 2016 2015 2014 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 194,521 $ 26.91 206,463 $ 26.74 219,540 $ 26.64 Granted 16,000 33.56 14,500 28.55 12,500 29.08 Exercised (30,823) 27.34 (16,859) 26.19 (25,577) 27.05 Forfeited (19,269) 27.86 (9,583) 27.02 - - Outstanding, end of year 160,429 $ 27.37 $ 931,963 194,521 $ 26.91 $ 362,754 206,463 $ 26.74 $ 477,640 Exercisable, end of year 144,429 $ 26.39 $ 931,963 180,021 $ 26.78 $ 359,854 193,963 $ 26.59 $ 477,640 |
Schedule of Fair Value Assumptions [Table Text Block] | Years Ended December 31, 2016 2015 2014 Dividend yield 3.93% 3.77% 3.57% Expected life 10 years 10 years 10 years Expected volatility 24.84% 24.35% 24.97% Risk-free interest rate 2.44% 2.28% 2.17% Weighted average fair value of options granted $ 5.79 $ 4.89 $ 5.30 |
Schedule of Outstanding Stock Options [Table Text Block] | Average Average Options Exercise Remaining Options Exercise Outstanding Price Life, Years Exercisable Price 12,650 $ 28.41 1.0 12,650 $ 28.41 13,200 25.00 2.0 13,200 25.00 12,650 25.99 3.0 12,650 25.99 1,100 24.44 3.2 1,100 24.44 15,229 25.25 4.0 15,229 25.25 19,800 24.97 5.0 19,800 24.97 21,450 27.05 6.0 21,450 27.05 1,100 27.55 6.0 1,100 27.55 2,000 28.95 6.7 2,000 28.95 21,250 26.90 7.0 21,250 26.90 10,000 29.08 8.0 10,000 29.08 14,000 28.55 9.0 14,000 28.55 16,000 33.56 10.0 - - Total 160,429 144,429 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | 2016 2015 Weighted-Average Weighted-Average Number of Grant Date Number of Grant Date Shares Fair Value Shares Fair Value Non-vested, beginning of year 13,810 $28.82 9,300 $29.08 Granted 8,450 33.56 6,650 28.55 Vested (3,120) 28.85 (1,860) 29.08 Forfeited (450) 28.80 (280) 29.08 Non-vested at December 31 18,690 $30.96 13,810 $28.82 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Table Text Block] | Years Ended December 31, 2016 2015 2014 (In Thousands, Except Per Share Data) Numerator, net income $ 6,711 $ 5,908 $ 7,657 Denominator: Weighted average shares outstanding 3,877 3,682 3,645 Less: Weighted average unvested restricted shares (14) (9) - Denominator: Basic earnings per share 3,863 3,673 3,645 Weighted average shares outstanding 3,863 3,682 3,645 Add: Dilutive effect of stock options 22 9 12 Denominator: Diluted earnings per share 3,885 3,691 3,657 Basic earnings per common share $ 1.74 $ 1.60 $ 2.10 Diluted earnings per common share $ 1.73 $ 1.60 $ 2.10 |
Off-Balance Sheet Financial I38
Off-Balance Sheet Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Off-Balance Sheet Financial Instruments [Abstract] | |
Schedule of Fair Value, Off-balance Sheet Risks [Table Text Block] | December 31, 2016 2015 (In Thousands) Commitments to grant loans $ 22,210 $ 19,704 Unfunded commitments under lines of credit 54,789 48,641 Standby letters of credit 5,642 5,286 $ 82,641 $ 73,631 |
Fair Values of Financial Inst39
Fair Values of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Values of Financial Instruments [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 December 31, 2016 Available for Sale: U.S. Treasury securities $ 1,997 $ - $ 1,997 $ - States and political subdivisions 125,101 - 125,101 - Corporate obligations 10,112 - 10,112 - Mortgage-backed securities-government sponsored entities 164,930 - 164,930 - Equity securities-financial services 424 424 - - Total available for sale $ 302,564 $ 424 $ 302,140 $ - December 31, 2015 Available for Sale: U.S. Government agencies $ 9,169 $ - $ 9,169 $ - States and political subdivisions 60,755 - 60,755 - Corporate obligations 4,974 - 4,974 - Mortgage-backed securities-government sponsored entities 63,569 - 63,569 - Equity securities-financial services 384 384 - - Total available for sale $ 138,851 $ 384 $ 138,467 $ - |
Fair Value, Assets Measured on Nonrecurring Basis [Table Text Block] | Fair Value Measurement Reporting Date using Description Total Level 1 Level 2 Level 3 December 31, 2016 Impaired Loans $ 2,624 $ - $ - $ 2,624 Foreclosed real estate 5,302 - - 5,302 December 31, 2015 Impaired Loans $ 7,615 $ - $ - $ 7,615 Foreclosed real estate 2,847 - - 2,847 |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block] | Quantitative Information about Level 3 Fair Value Measurements (dollars in thousands) Fair Value Estimate Valuation Techniques Unobservable Input Range (Weighted Average) December 31, 2016 Impaired loans $ 1,473 Appraisal of collateral(1) Appraisal adjustments(2) 10% ( 10% ) Impaired loans $ 1,151 Present value of future cash flows Loan discount rate 4 -5.25% ( 5.11% ) Probability of default Foreclosed real estate owned $ 5,302 Appraisal of collateral(1) Liquidation Expenses(2) 10% Quantitative Information about Level 3 Fair Value Measurements (dollars in thousands) Fair Value Estimate Valuation Techniques Unobservable Input Range (Weighted Average) December 31, 2015 Impaired loans $ 2,574 Appraisal of collateral(1) Appraisal adjustments(2) 10% ( 10% ) Impaired loans $ 5,041 Present value of future cash flows Loan discount rate 4 -7% ( 5.61% ) Probability of default 0% Foreclosed real estate owned $ 2,847 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. |
Fair Value, by Balance Sheet Grouping [Table Text Block] | Fair Value Measurements at December 31, 2016 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 17,174 $ 17,174 $ 17,174 $ - $ - Securities 302,564 302,564 424 302,140 - Loans receivable, net 707,426 716,661 - - 716,661 Mortgage servicing rights 232 250 - - 250 Regulatory stock 2,119 2,119 2,119 - - Bank owned life insurance 36,133 36,133 36,133 - - Accrued interest receivable 3,643 3,643 3,643 - - Financial liabilities: Deposits 925,385 925,561 629,829 - 295,732 Short-term borrowings 32,811 32,811 32,811 - - Other borrowings 32,001 31,863 - - 31,863 Accrued interest payable 1,069 1,069 1,069 - - Off-balance sheet financial instruments: Commitments to extend credit and outstanding letters of credit - - - - - Fair Value Measurements at December 31, 2015 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 10,010 $ 10,010 $ 10,010 $ - $ - Securities 138,851 138,851 384 138,467 - Loans receivable, net 552,627 559,416 - - 559,416 Mortgage servicing rights 261 291 - - 291 Regulatory stock 3,412 3,412 3,412 - - Bank owned life insurance 18,820 18,820 18,820 - - Accrued interest receivable 2,363 2,363 2,363 - - Financial liabilities: Deposits 550,909 551,175 354,162 - 197,013 Short-term borrowings 53,235 53,235 53,235 - - Other borrowings 41,126 41,260 - - 41,260 Accrued interest payable 957 957 957 - - Off-balance sheet financial instruments: Commitments to extend credit and outstanding letters of credit - - - - - |
Accumulated Other Comprehensi40
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive Income [Abstract] | |
Components of Accumulated Other Comprehensive Income [Table Text Block] | Unrealized gains (losses) on available for sale Unrealized gain on securities (a) pension liability (a) Total (a) Balance as of December 31, 2015 $ 488 $ - $ 488 Other comprehensive loss before reclassification (4,740) 318 (4,422) Amount reclassified from accumulated other comprehensive income (185) - (185) Total other comprehensive loss (4,925) 318 (4,607) Balance as of December 31, 2016 $ (4,437) $ 318 $ (4,119) Unrealized gains on available for sale securities (a) Balance as of December 31, 2014 $ 462 Other comprehensive income before reclassification 439 Amount reclassified from accumulated other comprehensive income (413) Total other comprehensive income 26 Balance as of December 31, 2015 $ 488 |
Items Reclassified Out of Each Component of OCI [Table Text Block] | Amount Reclassified From Accumulated Affected Line Item in Other Consolidated Comprehensive Statement of Details about other comprehensive income Income (Loss) (a) Income Twelve months Twelve months ended ended December 31, December 31, 2016 2015 Unrealized gains on available for sale securities $ 284 $ 626 Net realized gains on sales of securities (99) (213) Income tax expense $ 185 $ 413 Net of tax Amounts in parentheses indicate debits to net income |
Acquisition of Delaware Bancs41
Acquisition of Delaware Bancshares, Inc. (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | (Dollars in Thousands, Except Per Share Data) Purchase Price Consideration in Common Stock Delaware Bancshares, Inc. common shares settled for stock 694,114 Exchange Ratio 0.6221 Norwood Financial Corp. shares issued 431,605 Value assigned to Norwood Financial Corp. common share $ 28.15 Purchase price assigned to Delaware Bancshares, Inc. common shares $ 12,150 exchanged for Norwood Financial Corp. Purchase Price Consideration - Cash for Common Stock Delaware Bancshares, Inc. shares exchanged for cash 231,385 Purchase price paid to each Delaware Bancshares, Inc. common share exchanged for cash $ 16.68 Purchase price assigned to Delaware Bancshares, Inc. common shares exchanged for cash $ 3,860 Purchase price consideration - Cash-in-lieu of Fractional Shares 6 Total Purchase Price $ 16,016 Net Assets Acquired: Delaware Bancshares, Inc. shareholders' equity $ 19,357 Delaware Bancshares, Inc. goodwill and intangibles (7,640) Total tangible equity 11,717 Adjustments to reflect assets acquired at fair value: Investments 219 Loans Interest rate 1,486 General credit (1,614) Specific credit - non-amortizing (260) Specific credit - amortizing (239) Core deposit intangible 449 Deferred loan fees (296) Premises and equipment 3,053 Allowance for loan and lease losses 1,651 Deferred tax assets (1,417) Other (97) Adjustments to reflect liabilities acquired at fair value: Time deposits (252) 14,400 Goodwill resulting from merger $ 1,616 The following condensed statement reflects the values assigned to Delaware Bancshares, Inc. net assets as of acquisition date: (In Thousands) Total purchase price $ 16,016 Net assets acquired: Cash $ 14,977 Securities available for sale 208,488 Loans 116,674 Premises and equipment, net 7,292 Regulatory stock 279 Accrued interest receivable 1,626 Bank-owned life insurance 14,762 Core deposit intangible 449 Deferred tax assets 3,034 Other assets 3,282 Time deposits (71,342) Deposits other than time deposits (255,921) Borrowings (21,232) Accrued interest payable (95) Other liabilities (7,873) 14,400 Goodwill resulting from Delaware Bancshares, Inc., Merger $ 1,616 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | 2017 $ 150 2018 126 2019 101 2020 77 2021 52 Thereafter 106 $ 612 |
Business Acquisition, Pro Forma Information [Table Text Block] | Actual From Acquisition Date Through Pro Forma December 31, Year Ended December 31, (In Thousands, Except Per Share Data) 2016 2016 2015 Net interest income $ 3,900 $ 37,199 $ 33,787 Non-interest income 893 6,487 7,939 Net income 750 3,588 6,944 Pro forma earnings per share: Basic $ 0.18 $ 0.87 $ 1.69 Diluted $ 0.18 $ 0.87 $ 1.68 |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustments [Table Text Block] | Professional fees $ - $ 1,602 $ 80 Data processing related - 638 - Other - 810 - |
Delaware Bancshares, Inc. Acquisition [Member] | |
Business Acquisition [Line Items] | |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | (In thousands) 2017 $ 30 2018 30 2019 30 2020 30 2021 30 After five years 299 $ 449 |
Norwood Financial Corp (Paren42
Norwood Financial Corp (Parent Company Only) Financial Information (Tables) - Parent Company [Member] | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Statements, Captions [Line Items] | |
Parent Company Only - Balance Sheets [Table Text Block] | December 31, 2016 2015 (In Thousands) ASSETS Cash on deposit in bank subsidiary $ 3,005 $ 2,151 Securities available for sale 397 384 Investment in bank subsidiary 105,138 95,895 Other assets 4,539 4,113 Total assets $ 113,079 $ 102,543 LIABILITIES AND STOCKHOLDERS’ EQUITY Liabilities $ 2,000 $ 1,545 Stockholders’ equity 111,079 100,998 Total liabilities and stockholders' equity $ 113,079 $ 102,543 |
Parent Company Only - Statements of Income [Table Text Block] | STATEMENTS OF INCOME Years Ended December 31, 2016 2015 2014 Income: (In Thousands) Dividends from bank subsidiary $ 28,598 $ 4,574 $ 4,377 Other interest income 12 11 10 28,610 4,585 4,387 Expenses 1,347 313 346 27,263 4,272 4,041 Income tax benefit (225) (103) (114) 27,488 4,375 4,155 Equity in undistributed earnings of subsidiary (20,777) 1,533 3,502 Net Income $ 6,711 $ 5,908 $ 7,657 Comprehensive Income $ 2,104 $ 5,934 $ 10,721 |
Parent Company Only - Statements of Cash Flows [Table Text Block] | STATEMENTS OF CASH FLOWS Years Ended December 31, 2016 2015 2014 (In Thousands) CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 6,711 $ 5,908 $ 7,657 Adjustments to reconcile net income to net cash provided by operating activities: Undistributed earnings of bank subsidiary 20,777 (1,533) (3,502) Other, net (305) (19) 177 Net Cash Provided by Operating Activities 27,183 4,356 4,332 CASH FLOWS FROM INVESTING ACTIVITIES Outlays for busines acquisitions (2,324) - - Net Cash Used in Investing Activities (2,324) - - CASH FLOWS FROM FINANCING ACTIVITIES Repayment of borrowings (19,856) - - Stock options exercised 843 441 691 Tax benefit of stock options exercised 38 16 17 ESOP purchase of shares from treasury stock 131 146 150 Purchase of treasury stock (447) (127) (179) Cash dividends paid (4,714) (4,527) (4,370) Net Cash Used in Financing Activities (24,005) (4,051) (3,691) Net Increase in Cash and Cash Equivalents 854 305 641 CASH AND CASH EQUIVALENTS - BEGINNING 2,151 1,846 1,205 CASH AND CASH EQUIVALENTS - ENDING $ 3,005 $ 2,151 $ 1,846 |
Nature of Operations (Details)
Nature of Operations (Details) | 12 Months Ended |
Dec. 31, 2016segment | |
Basis of Presentation [Abstract] | |
Number of Reportable Segments | 1 |
Summary of Significant Accoun44
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | ||
Impairment of investments | $ 0 | |
Unrecognized Tax Benefits | 0 | $ 0 |
Unrecognized tax benefits expected within next twelve months | $ 0 |
Summary of Significant Accoun45
Summary of Significant Accounting Policies (Mortgage Servicing Rights) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Summary of Significant Accounting Policies [Abstract] | ||
Servicing Assets | $ 232 | $ 261 |
Summary of Significant Accoun46
Summary of Significant Accounting Policies (Useful Life of Premises and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Minimum [Member] | Buildings 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] | Buildings 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 Accoun47
Summary of Significant Accounting Policies (Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Summary of Significant Accounting Policies [Abstract] | |||
Goodwill | $ 11,331 | $ 9,715 | |
Goodwill, Impairment Loss | $ 0 | $ 0 | $ 0 |
Summary of Significant Accoun48
Summary of Significant Accounting Policies (Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Summary of Significant Accounting Policies [Abstract] | |||
Intangible Assets, Net (Excluding Goodwill) | $ 612 | $ 285 | |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 732 | 610 | |
Finite-Lived Intangible Assets, Amortization Method | sum-of-the-years digits method | ||
Finite-Lived Intangible Asset, Useful Life | 10 years | ||
Amortization of Intangibles | $ 122 | $ 105 | $ 121 |
2,017 | 150 | ||
2,018 | 126 | ||
2,019 | 101 | ||
2,020 | 77 | ||
2,021 | 52 | ||
Thereafter | 106 | ||
Amortization Expense for the Core Deposit Intangible, Total | $ 612 |
Securities (Amortized Cost and
Securities (Amortized Cost and Fair Values of Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Investments [Line Items] | ||
Available for Sale, Amortized Cost | $ 309,289 | $ 138,111 |
Available-for-sale Securities, Gross Unrealized Gains | 1,051 | 1,909 |
Available for Sale, Gross Unrealized Losses | (7,776) | (1,169) |
Available for Sale, Fair Value | 302,564 | 138,851 |
Total Debt Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Available for Sale, Amortized Cost | 308,969 | 137,819 |
Available-for-sale Securities, Gross Unrealized Gains | 947 | 1,817 |
Available for Sale, Gross Unrealized Losses | (7,776) | (1,169) |
Available for Sale, Fair Value | 302,140 | 138,467 |
U.S. Government Agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Available for Sale, Amortized Cost | 2,005 | 9,275 |
Available-for-sale Securities, Gross Unrealized Gains | 2 | |
Available for Sale, Gross Unrealized Losses | (8) | (108) |
Available for Sale, Fair Value | 1,997 | 9,169 |
States and political subdivisions [Member] | ||
Schedule of Investments [Line Items] | ||
Available for Sale, Amortized Cost | 127,585 | 59,120 |
Available-for-sale Securities, Gross Unrealized Gains | 884 | 1,747 |
Available for Sale, Gross Unrealized Losses | (3,368) | (112) |
Available for Sale, Fair Value | 125,101 | 60,755 |
Corporate obligations [Member] | ||
Schedule of Investments [Line Items] | ||
Available for Sale, Amortized Cost | 10,255 | 4,933 |
Available-for-sale Securities, Gross Unrealized Gains | 37 | 45 |
Available for Sale, Gross Unrealized Losses | (180) | (4) |
Available for Sale, Fair Value | 10,112 | 4,974 |
Mortgage-backed securities-government sponsored entities [Member] | ||
Schedule of Investments [Line Items] | ||
Available for Sale, Amortized Cost | 169,124 | 64,491 |
Available-for-sale Securities, Gross Unrealized Gains | 26 | 23 |
Available for Sale, Gross Unrealized Losses | (4,220) | (945) |
Available for Sale, Fair Value | 164,930 | 63,569 |
Equity securities-financial services [Member] | ||
Schedule of Investments [Line Items] | ||
Available for Sale, Amortized Cost | 320 | 292 |
Available-for-sale Securities, Gross Unrealized Gains | 104 | 92 |
Available for Sale, Gross Unrealized Losses | 0 | |
Available for Sale, Fair Value | $ 424 | $ 384 |
Securities (Investments' Gross
Securities (Investments' Gross Unrealized Losses and Fair Value) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)security | Dec. 31, 2015USD ($) | |
Schedule of Investments [Line Items] | ||
Debt securities in unrealized loss position in the less than twelve months category | security | 235 | |
Debt securities in unrealized loss position in the twelve months or more category | security | 12 | |
Impairment of investments | $ 0 | |
U.S. Government Agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Less than 12 Months, Fair Value | 1,997 | $ 6,058 |
Less than 12 Months, Unrealized Losses | (8) | (71) |
12 Months or More, Fair Value | 0 | 2,109 |
12 Months or More, Unrealized Losses | 0 | (37) |
Total, Fair Value | 1,997 | 8,167 |
Total, Unrealized Losses | (8) | (108) |
States and political subdivisions [Member] | ||
Schedule of Investments [Line Items] | ||
Less than 12 Months, Fair Value | 90,109 | 9,086 |
Less than 12 Months, Unrealized Losses | (3,362) | (99) |
12 Months or More, Fair Value | 205 | 1,417 |
12 Months or More, Unrealized Losses | (6) | (13) |
Total, Fair Value | 90,314 | 10,503 |
Total, Unrealized Losses | (3,368) | (112) |
Corporate obligations [Member] | ||
Schedule of Investments [Line Items] | ||
Less than 12 Months, Fair Value | 6,895 | 2,221 |
Less than 12 Months, Unrealized Losses | (180) | (4) |
12 Months or More, Fair Value | 0 | 0 |
12 Months or More, Unrealized Losses | 0 | 0 |
Total, Fair Value | 6,895 | 2,221 |
Total, Unrealized Losses | (180) | (4) |
Mortgage-backed securities-government sponsored entities [Member] | ||
Schedule of Investments [Line Items] | ||
Less than 12 Months, Fair Value | 152,614 | 40,300 |
Less than 12 Months, Unrealized Losses | (3,912) | (432) |
12 Months or More, Fair Value | 9,967 | 16,595 |
12 Months or More, Unrealized Losses | (308) | (513) |
Total, Fair Value | 162,581 | 56,895 |
Total, Unrealized Losses | (4,220) | (945) |
Total Debt Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Less than 12 Months, Fair Value | 251,615 | 57,665 |
Less than 12 Months, Unrealized Losses | (7,462) | (606) |
12 Months or More, Fair Value | 10,172 | 20,121 |
12 Months or More, Unrealized Losses | (314) | (563) |
Total, Fair Value | 261,787 | 77,786 |
Total, Unrealized Losses | $ (7,776) | $ (1,169) |
Securities (Securities by Contr
Securities (Securities by Contractual Maturity) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Securities [Abstract] | |
Available for Sale, Amortized Cost, Due in one year or less | $ 2,240 |
Available for Sale, Amortized Cost, Due after one year through five years | 24,272 |
Available for Sale, Amortized Cost, Due after five years through ten years | 45,285 |
Available for Sale, Amortized Cost, Due after ten years | 68,048 |
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis, Total | 139,845 |
Available for Sale, Amortized Cost, Mortgage-backed securities- government sponsored agencies | 169,124 |
Available for Sale, Amortized Cost, Total | 308,969 |
Available for Sale, Fair Value, Due in one year or less | 2,243 |
Available for Sale, Fair Value, Due after one year through five years | 23,996 |
Available for Sale, Fair Value, Due after five years through ten years | 43,577 |
Available for Sale, Fair Value, Due after ten years | 67,394 |
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Total | 137,210 |
Available for Sale, Fair Value, Mortgage-backed securities- government sponsored agencies | 164,930 |
Available for Sale, Fair Value, Total | $ 302,140 |
Securities (Gross Realized Gain
Securities (Gross Realized Gains and Losses on Sales of Securities Available-for-Sale) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Securities [Abstract] | |||
Gross realized gains | $ 284 | $ 626 | $ 1,199 |
Gross realized losses | 0 | 0 | 29 |
Proceeds from sale of securities | 110,748 | 44,976 | $ 66,263 |
Available-for-sale Securities Pledged as Collateral | $ 230,263 | $ 97,671 |
Loans Receivable and Allowanc53
Loans Receivable and Allowance for Loan Losses (Composition of Loans Receivable) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and Leases Receivable, Gross | $ 714,105 | $ 560,251 | ||
Deferred fees, net | (216) | (326) | ||
Total loans receivable | 713,889 | 559,925 | ||
Allowance for loan losses | (6,463) | (7,298) | $ (5,875) | $ (5,708) |
Net loans receivable | $ 707,426 | $ 552,627 | ||
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 | $ 237,177 | $ 161,820 | ||
Allowance for loan losses | $ (1,092) | $ (1,069) | (1,323) | (1,441) |
Percent of Loans | 33.20% | 28.90% | ||
Commercial Real Estate Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and Leases Receivable, Gross | $ 320,187 | $ 279,123 | ||
Allowance for loan losses | $ (4,623) | $ (5,506) | (3,890) | (3,025) |
Percent of Loans | 44.80% | 49.80% | ||
Construction Real Estate Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and Leases Receivable, Gross | $ 19,709 | $ 18,987 | ||
Allowance for loan losses | $ (78) | $ (90) | (222) | (898) |
Percent of Loans | 2.80% | 3.40% | ||
Commercial, financial and agricultural loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and Leases Receivable, Gross | $ 85,508 | $ 71,090 | ||
Allowance for loan losses | $ (307) | $ (397) | (256) | (184) |
Percent of Loans | 12.00% | 12.70% | ||
Consumer loans to individuals [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and Leases Receivable, Gross | $ 51,524 | $ 29,231 | ||
Allowance for loan losses | $ (363) | $ (236) | $ (184) | $ (160) |
Percent of Loans | 7.20% | 5.20% |
Loans Receivable and Allowanc54
Loans Receivable and Allowance for Loan Losses (Components of Purchase Accounting Adjustments) (Details) $ in Thousands | Jul. 31, 2016USD ($) |
Loans Receivable and Allowance for Loan Losses [Abstract] | |
Contractually required principal and interest | $ 2,621 |
Non-accretable discount | (1,014) |
Expected cash flows | 1,607 |
Accretable discount | (239) |
Estimated fair value | $ 1,368 |
Loans Receivable and Allowanc55
Loans Receivable and Allowance for Loan Losses (Changes in the Accretable Yield for Purchased Credit Impaired Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Loans Receivable and Allowance for Loan Losses [Abstract] | |||
Balance at beginning of period | $ 0 | $ 8 | $ 20 |
Additions | 239 | 0 | 0 |
Accretion | (30) | (1) | (12) |
Reclassification and other | (1) | (7) | 0 |
Balance at end of period | $ 208 | $ 0 | $ 8 |
Loans Receivable and Allowanc56
Loans Receivable and Allowance for Loan Losses (Loans Acquired and Accounted for in Accordance with ASC 310-30) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Loans Receivable and Allowance for Loan Losses [Abstract] | ||
Acquired Loans with Specific Evidence of Deterioration in Credit Quality, Outstanding Balance | $ 1,821 | $ 498 |
Acquired Loans with Specific Evidence of Deterioration in Credit Quality, Carrying Amount | 1,386 | $ 498 |
Certain Loans and Debt Securities Acquired in Transfer, Allowance for Credit Losses Due to Subsequent Impairment | $ 0 |
Loans Receivable and Allowanc57
Loans Receivable and Allowance for Loan Losses (Loans Individually and Collectively Evaluated for Impairment) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | $ 2,624 | $ 8,730 |
Loans acquired with deteriorated credit quality | 1,386 | 498 |
Collectively evaluated for impairment | 710,095 | 551,023 |
Total Loans | 714,105 | 560,251 |
Residential Real Estate Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 23 | 28 |
Loans acquired with deteriorated credit quality | 821 | 140 |
Collectively evaluated for impairment | 236,333 | 161,652 |
Total Loans | 237,177 | 161,820 |
Commercial Real Estate Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 2,601 | 8,659 |
Loans acquired with deteriorated credit quality | 565 | 358 |
Collectively evaluated for impairment | 317,021 | 270,106 |
Total Loans | 320,187 | 279,123 |
Construction Real Estate Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 0 | 0 |
Loans acquired with deteriorated credit quality | 0 | 0 |
Collectively evaluated for impairment | 19,709 | 18,987 |
Total Loans | 19,709 | 18,987 |
Commercial, financial and agricultural loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 0 | 43 |
Loans acquired with deteriorated credit quality | 0 | 0 |
Collectively evaluated for impairment | 85,508 | 71,047 |
Total Loans | 85,508 | 71,090 |
Consumer loans to individuals [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 0 | 0 |
Loans acquired with deteriorated credit quality | 0 | 0 |
Collectively evaluated for impairment | 51,524 | 29,231 |
Total Loans | $ 51,524 | $ 29,231 |
Loans Receivable and Allowanc58
Loans Receivable and Allowance for Loan Losses (Impaired Loans and Related Interest Income by Loan Portfolio Class) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | $ 2,624 | $ 2,855 | |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 6,373 | ||
Impaired Financing Receivable, Recorded Investment | 2,624 | 9,228 | |
Unpaid Principal Balance, With no related allowance recorded | 3,455 | 4,826 | |
Unpaid Principal Balance, With an allowance recorded | 6,446 | ||
Unpaid Principal Balance, Total | 3,455 | 11,272 | |
Associated Allowance | 1,613 | ||
Average Recorded Investment, Total | 2,696 | 9,015 | $ 7,725 |
Interest Income Recognized, Total | 91 | 532 | 508 |
Commercial, financial and agricultural loans [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 43 | ||
Impaired Financing Receivable, Recorded Investment | 43 | ||
Unpaid Principal Balance, With no related allowance recorded | 43 | ||
Unpaid Principal Balance, Total | 43 | ||
Average Recorded Investment, Total | 9 | 0 | |
Interest Income Recognized, Total | 0 | 2 | 0 |
Residential Real Estate Loans [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 23 | 168 | |
Impaired Financing Receivable, Recorded Investment | 23 | 168 | |
Unpaid Principal Balance, With no related allowance recorded | 28 | 173 | |
Unpaid Principal Balance, Total | 28 | 173 | |
Associated Allowance | 0 | 0 | |
Average Recorded Investment, Total | 25 | 159 | 233 |
Interest Income Recognized, Total | 0 | 4 | 5 |
Commercial Real Estate Loans [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 2,601 | 2,644 | |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 6,373 | ||
Impaired Financing Receivable, Recorded Investment | 2,601 | 9,017 | |
Unpaid Principal Balance, With no related allowance recorded | 3,427 | 4,610 | |
Unpaid Principal Balance, With an allowance recorded | 6,446 | ||
Unpaid Principal Balance, Total | 3,427 | 11,056 | |
Associated Allowance | 1,613 | ||
Average Recorded Investment, Total | 2,671 | 8,847 | 7,492 |
Interest Income Recognized, Total | $ 91 | $ 526 | $ 503 |
Loans Receivable and Allowanc59
Loans Receivable and Allowance for Loan Losses (Troubled Debt Restructurings) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)loan | Dec. 31, 2015USD ($)loan | Dec. 31, 2014USD ($) | |
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items] | |||
Impaired Financing Receivable, Related Allowance | $ 1,613 | ||
Mortgage Loans on Real Estate, Foreclosures | $ 5,000 | $ 1,700 | |
Mortgage Loans on Real Estate, Number of Foreclosures | loan | 1 | 1 | |
Foreclosed Real Estate Expense | $ 680 | $ 911 | $ 1,555 |
Troubled Debt Restructured Loans [Member] | |||
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items] | |||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 1,500 | 6,800 | |
New Loans Identified as Troubled Debt Restructurings | $ 176 | ||
New Loans Identified as Troubled Debt Restructurings, Number of Loans | loan | 2 | ||
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down | 2,600 | $ 1,300 | |
Financing Receivable, Modifications, Recorded Investment | 82 | ||
Impaired Financing Receivable, Related Allowance | $ 0 | 1,613 | |
Foreclosed Real Estate Expense | $ 322 |
Loans Receivable and Allowanc60
Loans Receivable and Allowance for Loan Losses (Classes of the Loan Portfolio Summarized by the Aggregate Risk Rating) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Total Summarized by Aggregate Risk Rating [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | $ 405,695 | $ 350,213 |
Pass [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 395,032 | 338,939 |
Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 6,317 | 1,837 |
Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 4,346 | 9,437 |
Doubtful or Loss [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 0 | 0 |
Loss [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 0 | 0 |
Total Summarized by Performance of Individual Credits [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 308,410 | 210,038 |
Performing Financial Instruments [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 307,034 | 209,598 |
Nonperforming Financial Instruments [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 1,165 | 440 |
Commercial Real Estate Loans [Member] | Total Summarized by Aggregate Risk Rating [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 320,187 | 279,123 |
Commercial Real Estate Loans [Member] | Pass [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 310,432 | 267,892 |
Commercial Real Estate Loans [Member] | Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 5,432 | 1,837 |
Commercial Real Estate Loans [Member] | Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 4,323 | 9,394 |
Commercial Real Estate Loans [Member] | Doubtful or Loss [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 0 | 0 |
Commercial Real Estate Loans [Member] | Loss [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 0 | 0 |
Commercial, financial and agricultural loans [Member] | Total Summarized by Aggregate Risk Rating [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 85,508 | 71,090 |
Commercial, financial and agricultural loans [Member] | Pass [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 84,600 | 71,047 |
Commercial, financial and agricultural loans [Member] | Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 885 | 0 |
Commercial, financial and agricultural loans [Member] | Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 23 | 43 |
Commercial, financial and agricultural loans [Member] | Doubtful or Loss [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 0 | 0 |
Commercial, financial and agricultural loans [Member] | Loss [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 0 | 0 |
Residential Real Estate Loans [Member] | Total Summarized by Performance of Individual Credits [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 237,177 | 161,820 |
Residential Real Estate Loans [Member] | Performing Financial Instruments [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 235,829 | 161,380 |
Residential Real Estate Loans [Member] | Nonperforming Financial Instruments [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 1,137 | 440 |
Construction Real Estate Loans [Member] | Total Summarized by Performance of Individual Credits [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 19,709 | 18,987 |
Construction Real Estate Loans [Member] | Performing Financial Instruments [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 19,681 | 18,987 |
Construction Real Estate Loans [Member] | Nonperforming Financial Instruments [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 28 | 0 |
Consumer loans to individuals [Member] | Total Summarized by Performance of Individual Credits [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 51,524 | 29,231 |
Consumer loans to individuals [Member] | Performing Financial Instruments [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 51,524 | 29,231 |
Consumer loans to individuals [Member] | Nonperforming Financial Instruments [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | $ 0 | $ 0 |
Loans Receivable and Allowanc61
Loans Receivable and Allowance for Loan Losses (Loan Portfolio Summarized by the Past Due Status) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 710,261 | $ 551,989 |
Non-Accrual | 1,926 | 7,132 |
Total Past Due and Non-Accrual | 3,844 | 8,262 |
Total Loans | 714,105 | 560,251 |
Financing Receivables, 31 to 60 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,613 | 1,029 |
Financing Receivables, 61 to 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 304 | 101 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1 | 0 |
Residential Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 234,790 | 160,683 |
Non-Accrual | 1,136 | 440 |
Total Past Due and Non-Accrual | 2,387 | 1,137 |
Total Loans | 237,177 | 161,820 |
Residential Real Estate Loans [Member] | Financing Receivables, 31 to 60 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 986 | 646 |
Residential Real Estate Loans [Member] | Financing Receivables, 61 to 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 264 | 51 |
Residential Real Estate Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1 | 0 |
Commercial Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 318,979 | 272,125 |
Non-Accrual | 762 | 6,649 |
Total Past Due and Non-Accrual | 1,208 | 6,998 |
Total Loans | 320,187 | 279,123 |
Commercial Real Estate Loans [Member] | Financing Receivables, 31 to 60 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 445 | 310 |
Commercial Real Estate Loans [Member] | Financing Receivables, 61 to 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1 | 39 |
Commercial Real Estate Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Construction Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 19,681 | 18,959 |
Non-Accrual | 28 | 0 |
Total Past Due and Non-Accrual | 28 | 28 |
Total Loans | 19,709 | 18,987 |
Construction Real Estate Loans [Member] | Financing Receivables, 31 to 60 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 28 | |
Construction Real Estate Loans [Member] | Financing Receivables, 61 to 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Construction Real Estate Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial, financial and agricultural loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 85,355 | 71,043 |
Non-Accrual | 0 | 43 |
Total Past Due and Non-Accrual | 153 | 47 |
Total Loans | 85,508 | 71,090 |
Commercial, financial and agricultural loans [Member] | Financing Receivables, 31 to 60 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 143 | 4 |
Commercial, financial and agricultural loans [Member] | Financing Receivables, 61 to 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 10 | 0 |
Commercial, financial and agricultural loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Consumer loans to individuals [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 51,456 | 29,179 |
Non-Accrual | 0 | 0 |
Total Past Due and Non-Accrual | 68 | 52 |
Total Loans | 51,524 | 29,231 |
Consumer loans to individuals [Member] | Financing Receivables, 31 to 60 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 39 | 41 |
Consumer loans to individuals [Member] | Financing Receivables, 61 to 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 29 | 11 |
Consumer loans to individuals [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | $ 0 | $ 0 |
Loans Receivable and Allowanc62
Loans Receivable and Allowance for Loan Losses (Allowance for Loan Losses and Recorded Investment in Financing Receivables) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance at beginning of period | $ 7,298 | $ 5,875 | $ 5,708 |
Charge Offs | (2,951) | (3,198) | (1,546) |
Recoveries | 66 | 41 | 33 |
Provision for Loan Losses | 2,050 | 4,580 | 1,680 |
Allowance at end of period | 6,463 | 7,298 | 5,875 |
Ending balance individually evaluated for impairment | 3 | 1,613 | 293 |
Ending balance collectively evaluated for impairment | 6,460 | 5,685 | 5,582 |
Residential Real Estate Loans [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance at beginning of period | 1,069 | 1,323 | 1,441 |
Charge Offs | (123) | (224) | (270) |
Recoveries | 6 | 20 | |
Provision for Loan Losses | 140 | (50) | 152 |
Allowance at end of period | 1,092 | 1,069 | 1,323 |
Ending balance individually evaluated for impairment | 0 | 0 | |
Ending balance collectively evaluated for impairment | 1,092 | 1,069 | 1,323 |
Commercial Real Estate Loans [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance at beginning of period | 5,506 | 3,890 | 3,025 |
Charge Offs | (2,711) | (2,883) | (1,196) |
Recoveries | 15 | 0 | 2 |
Provision for Loan Losses | 1,813 | 4,499 | 2,059 |
Allowance at end of period | 4,623 | 5,506 | 3,890 |
Ending balance individually evaluated for impairment | 3 | 1,613 | 293 |
Ending balance collectively evaluated for impairment | 4,620 | 3,893 | 3,597 |
Construction Real Estate Loans [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance at beginning of period | 90 | 222 | 898 |
Charge Offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Provision for Loan Losses | (12) | (132) | (676) |
Allowance at end of period | 78 | 90 | 222 |
Ending balance individually evaluated for impairment | 0 | 0 | |
Ending balance collectively evaluated for impairment | 78 | 90 | 222 |
Commercial, financial and agricultural loans [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance at beginning of period | 397 | 256 | 184 |
Charge Offs | (15) | 0 | |
Recoveries | 0 | 0 | |
Provision for Loan Losses | (75) | 141 | 72 |
Allowance at end of period | 307 | 397 | 256 |
Ending balance individually evaluated for impairment | 0 | 0 | |
Ending balance collectively evaluated for impairment | 307 | 397 | 256 |
Consumer loans to individuals [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance at beginning of period | 236 | 184 | 160 |
Charge Offs | (102) | (91) | (80) |
Recoveries | 45 | 21 | 31 |
Provision for Loan Losses | 184 | 122 | 73 |
Allowance at end of period | 363 | 236 | 184 |
Ending balance individually evaluated for impairment | 0 | 0 | |
Ending balance collectively evaluated for impairment | $ 363 | $ 236 | $ 184 |
Loans Receivable and Allowanc63
Loans Receivable and Allowance for Loan Losses (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Acquired Loans with Specific Evidence of Deterioration in Credit Quality, Outstanding Balance | $ 1,821 | $ 498 | |
Acquired Loans with Specific Evidence of Deterioration in Credit Quality, Carrying Amount | 1,386 | 498 | |
Real Estate Acquired Through Foreclosure | 5,302 | 2,847 | |
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans | 163 | 515 | $ 451 |
Loans and Leases Receivable, Gross | 714,105 | 560,251 | |
Impaired Financing Receivable, Recorded Investment | 2,624 | 9,228 | |
Impaired Financing Receivable, Related Allowance | 1,613 | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 2,624 | 2,855 | |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 6,373 | ||
Write downs | 2,951 | 3,198 | 1,546 |
Proceeds from Sale of Mortgage Loans Held-for-sale | 1,739 | 4,410 | 4,419 |
Servicing Asset at Amortized Cost | 35,500 | 32,900 | |
Customer Concentration Risk [Member] | Loans Receivable [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivable, Allowance for Credit Losses, Write-downs | 31 | 643 | $ 422 |
Hospitality Lodging Industry [Member] | Loans Receivable [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable, Gross | $ 71,800 | ||
Concentration Risk, Percentage | 70.70% | ||
Automobile Dealers [Member] | Loans Receivable [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable, Gross | $ 50,900 | ||
Concentration Risk, Percentage | 50.10% | ||
Troubled Debt Restructured Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Impaired Financing Receivable, Related Allowance | $ 0 | 1,613 | |
Residential Real Estate Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Acquired Loans with Specific Evidence of Deterioration in Credit Quality, Carrying Amount | 821 | 140 | |
Real Estate Acquired Through Foreclosure | 297 | ||
Mortgage Loans in Process of Foreclosure, Amount | 421 | ||
Allowance for Loan and Lease Losses, Adjustments, Other | (254) | ||
Loans and Leases Receivable, Gross | 237,177 | 161,820 | |
Allowance for Loan and Lease Losses, Real Estate | 1,069 | ||
Impaired Financing Receivable, Recorded Investment | 23 | 168 | |
Impaired Financing Receivable, Related Allowance | 0 | 0 | |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 23 | $ 168 | |
Historical loss factor | 0.23% | 0.30% | |
Write downs | 123 | $ 224 | $ 270 |
Gross Realized Gains on Loans | 54 | 113 | 150 |
Gross Realized Losses on Loans | 0 | 0 | 0 |
Commercial Real Estate Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Acquired Loans with Specific Evidence of Deterioration in Credit Quality, Carrying Amount | 565 | 358 | |
Allowance for Loan and Lease Losses, Adjustments, Other | 419 | 1,320 | |
Allowance for Loan and Lease Losses, Period Increase (Decrease) | (883) | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses | 1,596 | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses, Decreases | 1,610 | ||
Loans and Leases Receivable, Gross | 320,187 | 279,123 | |
Allowance for Loan and Lease Losses, Real Estate | 4,623 | 5,506 | 3,890 |
Impaired Financing Receivable, Recorded Investment | 2,601 | 9,017 | |
Impaired Financing Receivable, Related Allowance | 1,613 | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | $ 2,601 | 2,644 | |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | $ 6,373 | ||
Historical loss factor | 0.80% | 0.70% | |
Write downs | $ 2,711 | $ 2,883 | $ 1,196 |
Impaired Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Impaired Financing Receivable, Recorded Investment | 2,624 | 9,228 | |
Impaired Financing Receivable, Related Allowance | 0 | 1,613 | |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 2,855 | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 6,373 | ||
Impaired Loans Not Requiring an Allowance [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivable, Allowance for Credit Losses, Write-downs | 831 | 1,971 | |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 2,624 | 2,855 | |
Impaired Loans Requiring an Allowance [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivable, Allowance for Credit Losses, Write-downs | 73 | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | $ 0 | $ 6,373 |
Premises and Equipment (Schedul
Premises and Equipment (Schedule of Premises and Equipment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 26,938 | $ 16,588 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (13,407) | (10,116) | |
Property, Plant and Equipment, Net, Total | 13,531 | 6,472 | |
Depreciation Premises and Equipment | 726 | 551 | $ 572 |
Land and Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 2,925 | 2,316 | |
Buildings and improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 17,662 | 9,857 | |
Furniture and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 6,351 | $ 4,415 |
Premises and Equipment (Sched65
Premises and Equipment (Schedule of Future Minimum Rental Payments of Operating Leases) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Premises and Equipment [Abstract] | |||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 381 | ||
Operating Leases, Future Minimum Payments, Due in Two Years | 381 | ||
Operating Leases, Future Minimum Payments, Due in Three Years | 386 | ||
Operating Leases, Future Minimum Payments, Due in Four Years | 394 | ||
Operating Leases, Future Minimum Payments, Due in Five Years | 311 | ||
Operating Leases, Future Minimum Payments, Due Thereafter | 1,617 | ||
Operating Leases, Future Minimum Payments Due, Total | 3,470 | ||
Operating Leases, Rent Expense, Net | $ 367 | $ 341 | $ 338 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Time Deposit Maturities, Next Twelve Months | $ 174,814 | |
Time Deposit Maturities, Year Two | 53,523 | |
Time Deposit Maturities, Year Three | 34,710 | |
Time Deposit Maturities, Year Four | 15,464 | |
Time Deposit Maturities, Year Five | 16,867 | |
Time Deposit Maturities, after Year Five | 179 | |
Time Deposits, Total | 295,557 | $ 196,747 |
Time Deposits, $250,000 or More | 63,982 | $ 22,041 |
Major Customer Deposits [Member] | ||
Deposits of one customer relationship | $ 84,095 |
Borrowings (Narrative) (Details
Borrowings (Narrative) (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Available-for-sale Securities Pledged as Collateral | $ 230,263,000 | $ 97,671,000 |
FHLB of Pittsburgh [Member] | ||
Long-term Line of Credit | 0 | 19,672,000 |
Line of Credit Facility, Maximum Borrowing Capacity | 146,517,000 | |
Federal Home Loan Bank, Advances, General Debt Obligations, Maximum Amount Available | 316,832,000 | |
Advances from Federal Home Loan Banks | 32,001,000 | |
Atlantic Central Bankers Bank [Member] | ||
Long-term Line of Credit | 0 | 0 |
Line of Credit Facility, Maximum Borrowing Capacity | 7,000,000 | |
PNC Bank [Member] | ||
Long-term Line of Credit | 0 | 0 |
Line of Credit Facility, Maximum Borrowing Capacity | 16,000,000 | |
Zion Bank [Member] | ||
Long-term Line of Credit | 0 | 0 |
Line of Credit Facility, Maximum Borrowing Capacity | 17,000,000 | |
Securities Sold under Agreements to Repurchase [Member] | ||
Available-for-sale securities pledged as collateral, amortized cost | 35,770,000 | 36,797,000 |
Available-for-sale Securities Pledged as Collateral | $ 35,147,000 | $ 36,316,000 |
Borrowings (Short-Term Borrowin
Borrowings (Short-Term Borrowings) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Short-term Debt [Line Items] | ||
Short-term Borrowings | $ 32,811 | $ 53,235 |
Securities Sold under Agreements to Repurchase [Member] | ||
Short-term Debt [Line Items] | ||
Short-term Borrowings | $ 32,811 | 33,563 |
FHLB of Pittsburgh [Member] | Federal Home Loan Bank Advances [Member] | ||
Short-term Debt [Line Items] | ||
Short-term Borrowings | $ 19,672 |
Borrowings (Outstanding Balance
Borrowings (Outstanding Balances and Related Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Borrowings [Abstract] | ||
Short-term Debt, Average Outstanding Amount | $ 41,593 | $ 34,057 |
Short-term Debt, Average Interest Rate During the Year | 0.31% | 0.25% |
Short-term Debt, Maximum Month-end Outstanding Amount | $ 52,672 | $ 55,183 |
Short-term Debt, Weighted Average Interest Rate | 0.32% | 0.36% |
Borrowings (Other Borrowings) (
Borrowings (Other Borrowings) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Long-term Federal Home Loan Bank Advances | $ 32,001 | $ 41,126 |
Convertible note due July 2015 at 4.34% [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.17% | |
Debt Instrument, Description of Variable Rate Basis | three-month LIBOR | |
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% | |
Amortizing fixed rate borrowing due December 2017 at 1.27% [Member] | ||
Long-term Federal Home Loan Bank Advances | $ 4,025 | 8,000 |
Debt Instrument, Interest Rate, Stated Percentage | 1.27% | |
Amortizing fixed rate borrowing due January 2018 at 0.91% [Member] | ||
Long-term Federal Home Loan Bank Advances | $ 662 | 1,267 |
Debt Instrument, Interest Rate, Stated Percentage | 0.91% | |
Amortizing fixed rate borrowing due December 2018 at 1.42% [Member] | ||
Long-term Federal Home Loan Bank Advances | $ 1,634 | 2,434 |
Debt Instrument, Interest Rate, Stated Percentage | 1.42% | |
Amortizing fixed rate borrowing due June 2020 at 1.49% [Member] | ||
Long-term Federal Home Loan Bank Advances | $ 7,078 | 9,033 |
Debt Instrument, Interest Rate, Stated Percentage | 1.49% | |
Amortizing fixed rate borrowing due December 2020 at 1.71% [Member] | ||
Long-term Federal Home Loan Bank Advances | $ 4,034 | 5,000 |
Debt Instrument, Interest Rate, Stated Percentage | 1.71% | |
Amortizing fixed rate borrowing due March 2022 at 1.75% [Member] | ||
Long-term Federal Home Loan Bank Advances | $ 4,568 | $ 5,392 |
Debt Instrument, Interest Rate, Stated Percentage | 1.75% |
Borrowings (Contractual Maturit
Borrowings (Contractual Maturities of Other Borrowings) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Borrowings [Abstract] | ||
Federal Home Loan Bank, Advances, Maturities Summary, Due in Next Twelve Months | $ 19,253 | |
Federal Home Loan Bank, Advances, Maturities Summary, Due in Year Two | 4,741 | |
Federal Home Loan Bank, Advances, Maturities Summary, Due in Year Three | 3,930 | |
Federal Home Loan Bank, Advances, Maturities Summary, Due in Year Four | 2,951 | |
Federal Home Loan Bank, Advances, Maturities Summary, Due in Year Five | 899 | |
Federal Home Loan Bank, Advances, Maturities Summary, Due after Year Five | 227 | |
Long-term Federal Home Loan Bank Advances, Total | $ 32,001 | $ 41,126 |
Borrowings (Collateral Pledged
Borrowings (Collateral Pledged for Repurchase Agreements) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Available-for-sale Securities Pledged as Collateral | $ 230,263 | $ 97,671 |
Short-term Borrowings | 32,811 | 53,235 |
US Treasury Securities [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Available-for-sale Securities Pledged as Collateral | 35,147 | 36,316 |
Maturity Overnight [Member] | US Treasury Securities [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Available-for-sale Securities Pledged as Collateral | 34,917 | 35,515 |
Maturity Less than 30 Days [Member] | US Treasury Securities [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Available-for-sale Securities Pledged as Collateral | 0 | 139 |
Maturity 30 to 90 Days [Member] | US Treasury Securities [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Available-for-sale Securities Pledged as Collateral | 0 | 277 |
Maturity Greater than 90 Days [Member] | US Treasury Securities [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Available-for-sale Securities Pledged as Collateral | 230 | 385 |
Securities Sold under Agreements to Repurchase [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Available-for-sale Securities Pledged as Collateral | 35,147 | 36,316 |
Short-term Borrowings | $ 32,811 | $ 33,563 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
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 | $ 538,000 | $ 445,000 | $ 445,000 |
Defined Benefit Plan, Benefit Obligation | 8,084,000 | ||
Defined Benefit Plan, Net Periodic Benefit Cost | $ (39,000) | ||
Defined Benefit Plan, Percentage of Plan Funded | 80.00% | 79.90% | |
Defined Benefit Plan, Contribution Percentage | 5.00% | ||
Defined Benefit Plan, Benefits Paid | $ 238,000 | ||
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months | 482,000 | ||
Defined Benefit Plan, Expected Future Benefit Payments, Year Five | 490,000 | ||
Defined Benefit Plan, Expected Future Benefit Payments, Year Four | 480,000 | ||
Defined Benefit Plan, Expected Future Benefit Payments, Year Three | 481,000 | ||
Defined Benefit Plan, Expected Future Benefit Payments, Year Two | 471,000 | ||
Defined Benefit Plan, Expected Future Benefit Payments, Five Fiscal Years Thereafter | 2,263,000 | ||
Defined Benefit Plan, Expected Future Employer Contributions, Current Fiscal Year | 0 | ||
Change in Projected Benefit Obligation from Change in Projected Discount Rate | 117,000 | ||
Defined Benefit Plan, Accumulated Benefit Obligation | 8,084,000 | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Long-term Growth, Percentage | $ 97 | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Short-term Growth, Percentage | 3.00% | ||
Accumulated Postretirement Benefit Obligation | $ 405,000 | ||
Minimum [Member] | Cash And Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 0.00% | ||
Minimum [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 40.00% | ||
Minimum [Member] | Fixed Income Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 40.00% | ||
Minimum [Member] | Other Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 0.00% | ||
Maximum [Member] | Cash And Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 20.00% | ||
Maximum [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 60.00% | ||
Maximum [Member] | Fixed Income Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 60.00% | ||
Maximum [Member] | Other Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 5.00% | ||
Supplemental Employee Retirement Plan, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Benefit Obligation | $ 1,410,000 | $ 1,427,000 | |
Pension and Other Postretirement Benefit Expense | 121,000 | 122,000 | 124,000 |
Cash Surrender Value of Life Insurance | 36,133,000 | 18,820,000 | |
Defined Benefit Plan, Net Periodic Benefit Cost | 26,000 | 89,000 | 87,000 |
Multiemployer Plans, Postretirement Benefit [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Net Periodic Benefit Cost | 54,000 | 48,000 | 17,000 |
Defined Benefit Plan, Contributions by Employer | 54,000 | $ 48,000 | $ 17,000 |
Delaware Bancshares, Inc. [Member] | Supplemental Employee Retirement Plan, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Benefit Obligation | 602,000 | ||
Pension and Other Postretirement Benefit Expense | 15,000 | ||
Delaware Bancshares, Inc. [Member] | Director Fee Deferral and Continuation Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Benefit Obligation | 413,000 | ||
Pension and Other Postretirement Benefit Expense | $ 1,000 | ||
Delaware Bancshares, Inc. [Member] | Director Fee Deferral and Continuation Plan [Member] | Minimum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit Payment Period | 5 years | ||
Delaware Bancshares, Inc. [Member] | Director Fee Deferral and Continuation Plan [Member] | Maximum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit Payment Period | 15 years |
Employee Benefit Plans (Schedul
Employee Benefit Plans (Schedule Of Changes In Benefit Obligation And Fair Value Of Plan Assets) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Change in benefit obligation: | |
Projected benefit obligation acquired | $ (8,843) |
Service cost | (28) |
Interest cost | (113) |
Actuarial loss | 662 |
Benefits paid | 238 |
Benefit obligation at end of year | (8,084) |
Change in plan assets: | |
Fair value acquired | 6,932 |
Actual return on plan assets | 12 |
Benefits paid | (242) |
Fair value of plan assets at end of year | 6,702 |
Funded status of plan: | |
Funded status at end of year | $ (1,382) |
Employee Benefit Plans (Sched75
Employee Benefit Plans (Schedule Of Amounts Recognized On Consolidated Balance Sheets) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Pension Plans And Other Postretirement Benefits [Abstract] | |
Gain | $ 490 |
Total | $ 490 |
Employee Benefit Plans (Compone
Employee Benefit Plans (Components Of Net Periodic Benefit Costs) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Pension Plans And Other Postretirement Benefits [Abstract] | |
Service cost benefits earned during the period | $ 28 |
Interest cost on projected benefit obligaion | 113 |
Actual return on assets | (180) |
Net periodic pension cost | $ (39) |
Employee Benefit Plans (Sched77
Employee Benefit Plans (Schedule Of Assumptions Used) (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Pension Plans And Other Postretirement Benefits [Abstract] | |
Discount rate, benefit obligation | 3.90% |
Discount rate, net periodic pension cost | 3.18% |
Expected long-term return on plan assets | 6.50% |
Rate of compensation increase | 0.00% |
Employee Benefit Plans (Sched78
Employee Benefit Plans (Schedule Of Asset Allocation and Fair Value Of Plan Assets) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Actual Plan Asset Allocations | 100.00% |
Total assets | $ 6,702 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Total assets | 1,483 |
Significant Other Observable Inputs (Level 2) [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Total assets | 4,936 |
Significant Unobservable Inputs (Level 3) [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Total assets | $ 283 |
Cash And Cash Equivalents [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Actual Plan Asset Allocations | 6.10% |
Foreign Currencies [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Total assets | $ 11 |
Foreign Currencies [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Total assets | 11 |
Short-term Investment Funds [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Total assets | 33 |
Short-term Investment Funds [Member] | Significant Other Observable Inputs (Level 2) [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Total assets | $ 33 |
Equity Securities [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Actual Plan Asset Allocations | 47.90% |
Common Stock [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Total assets | $ 1,430 |
Common Stock [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Total assets | 1,430 |
Depository Receipts [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Total assets | 42 |
Depository Receipts [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Total assets | 42 |
Commingled Pension Trust Fund - Equity [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Total assets | 1,680 |
Commingled Pension Trust Fund - Equity [Member] | Significant Other Observable Inputs (Level 2) [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Total assets | $ 1,680 |
Fixed Income Securities [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Actual Plan Asset Allocations | 42.60% |
Corporate Bonds [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Total assets | $ 307 |
Corporate Bonds [Member] | Significant Other Observable Inputs (Level 2) [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Total assets | 307 |
Government Issue [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Total assets | 1,112 |
Government Issue [Member] | Significant Other Observable Inputs (Level 2) [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Total assets | 1,112 |
Mortgage Backed Securities [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Total assets | 4 |
Mortgage Backed Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Total assets | 4 |
Collateralized Mortgage Backed Securities [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Total assets | 68 |
Collateralized Mortgage Backed Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Total assets | 68 |
Commingled Pension Trust Fund [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Total assets | 1,732 |
Commingled Pension Trust Fund [Member] | Significant Other Observable Inputs (Level 2) [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Total assets | $ 1,732 |
Other Investments [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Actual Plan Asset Allocations | 3.40% |
Total assets | $ 283 |
Other Investments [Member] | Significant Unobservable Inputs (Level 3) [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Total assets | $ 283 |
Employee Benefit Plans (Sched79
Employee Benefit Plans (Schedule of Changes in Level 3 Assets) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Fair value of plan assets at end of year | $ 6,702 |
Significant Unobservable Inputs (Level 3) [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Unrealized gain | 283 |
Fair value of plan assets at end of year | $ 283 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current Income Tax Expense (Benefit) | $ 1,138 | $ 2,019 | $ 2,657 |
Deferred Tax Assets, Operating Loss Carryforwards | $ 2,147 | $ 0 | |
Earliest Tax Year [Member] | |||
Open Tax Year | 2,013 |
Income Taxes (Components of Fed
Income Taxes (Components of Federal Income Tax Provision) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current Income Tax Expense (Benefit) | $ 1,138 | $ 2,019 | $ 2,657 |
Deferred Income Tax Expense (Benefit) | 746 | (387) | (51) |
Current Income Tax Expense (Benefit), Total | 1,884 | 1,632 | 2,606 |
Parent Company [Member] | |||
Current Income Tax Expense (Benefit), Total | $ (225) | $ (103) | $ (114) |
Income Taxes (Income Tax Rate R
Income Taxes (Income Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Abstract] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 34.00% | 34.00% |
Effective Income Tax Rate Reconciliation, Tax Exempt Income | (13.10%) | (11.30%) | (7.70%) |
Effective Income Tax Reconciliation, Nondeductible Expense, Merger Expenses | 2.70% | ||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Compensation Cost, Percent | 0.30% | 0.30% | 0.40% |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Life Insurance, Percent | 2.80% | 1.80% | 1.50% |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Life Insurance | (2.80%) | (1.80%) | (1.50%) |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Life Insurance, Percent | 2.80% | 1.80% | 1.50% |
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent | (0.20%) | 0.40% | 0.20% |
Effective Income Tax Rate, Continuing Operations, Total | 21.90% | 21.60% | 25.40% |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilties) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Income Taxes [Abstract] | ||
Deferred tax assets, Allowance for loan losses | $ 2,197 | $ 2,481 |
Deferred tax assets, Deferred compensation | 1,430 | 485 |
Deferred Tax Assets, Purchase Price Adjustment | 0 | 884 |
Deferred Tax Assets, Goodwill and Intangible Assets | 485 | 0 |
Deferred Tax Assets, Prepaid Expenses | 267 | 0 |
Deferred Tax Assets: Pension liability | 655 | 0 |
Deferred Tax Assets, Foreclosed real estate valuance allowance | 19 | 305 |
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax | 260 | 0 |
Deferred Tax Assets, Operating Loss Carryforwards | 2,147 | 0 |
Deferred tax assets, Net unrealized loss on securities | 2,286 | 0 |
Deferred Tax Assets, Other | 310 | 182 |
Deferred Tax Assets, Gross, Total | 10,056 | 4,337 |
Deferred tax liabilities, Premises and equipment | 347 | 245 |
Deferred tax liablities, Deferred loan fees | 192 | 172 |
Deferred Tax Liabilities, Unrealized Gains on Trading Securities | 0 | 251 |
Deferred Tax Liabilities, Deferred Expense, Reserves and Accruals | 171 | 0 |
Deferred Tax Liabilities, Purchase Price Adjustment | 357 | 0 |
Deferred Tax Liabilities, Gross, Total | 1,067 | 668 |
Deferred Tax Assets, Net, Total | $ 8,989 | $ 3,669 |
Regulatory Matters and Stockh84
Regulatory Matters and Stockholders' Equity (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Regulatory Matters and Stockholders' Equity [Abstract] | ||
Restricted Cash and Cash Equivalents | $ 1,099 | $ 437 |
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments without Regulatory Approval | $ 63,246 |
Regulatory Matters and Stockh85
Regulatory Matters and Stockholders' Equity (Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Regulatory Matters and Stockholders' Equity [Abstract] | ||
Total capital (to risk weighted assets), Amount | $ 107,765 | $ 97,750 |
Total capital (to risk weighted assets) For Capital Adequacy Purposes, Amount | 61,057 | 45,751 |
Total capital (to risk weighted assets) To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 76,321 | $ 57,189 |
Total capital (to risk weighted assets), Ratio | 14.12% | 17.09% |
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 | $ 101,302 | $ 90,681 |
Tier 1 capital (to risk weighted assets) For Capital Adequacy Purposes, Amount | 45,793 | 34,313 |
Tier 1 capital (to risk weighted assets) To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 61,057 | $ 45,751 |
Tier 1 capital (to risk weighted assets), Ratio | 13.27% | 15.86% |
Tier 1 capital (to risk weighted assets) For Capital Adequacy Purposes, Ratio | 6.00% | 6.00% |
Tier 1 capital (to risk weighted assets) To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 8.00% | 8.00% |
Common Equity Tier 1 capital (to risk-weighted assets), amount | $ 101,302 | $ 90,681 |
Common Equity Tier 1 capital (to risk-weighted assets), for Capital Adequacy Purposes, amount | 34,344 | 25,735 |
Common Equity Tier 1 capital (to risk-weighted assets) to be Well Capitalized under Prompt Corrective Action Provision, amount | $ 49,609 | $ 37,173 |
Common Equity Tier 1 capital (to risk-weighted assets), Ratio | 13.27% | 15.86% |
Common Equity Tier 1 capital (to risk-weighted assets) For Capital Adequacy Purposes, Ratio | 4.50% | 4.50% |
Common Equity Tier 1 capital (to risk-weighted assets) to be Well Capitalized under Prompt Corrective Action Provision | 6.50% | 6.50% |
Tier 1 capital (to average assets), Amount | $ 101,302 | $ 90,681 |
Tier 1 capital (to average assets) For Capital Adequacy Purposes, Amount | 44,251 | 29,252 |
Tier 1 capital (to average assets) To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 55,314 | $ 36,565 |
Tier 1 capital (to average assets), Ratio | 9.16% | 12.40% |
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% |
Risk weight assigned to exposures | 150.00% | |
Capital conservation buffer | 2.50% |
Stock Based Compensation (Narra
Stock Based Compensation (Narrative) (Details) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Apr. 22, 2014 | Apr. 26, 2006 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options, Granted | 16,000 | 14,500 | 12,500 | |||
Stock Issued During Period, Value, Restricted Stock Award, Gross | $ 89,000 | $ 55,000 | $ 0 | |||
Compensation expense related to stock options | $ 71,000 | $ 66,000 | $ 154,000 | |||
Share price | $ 33.14 | $ 28.75 | $ 29.05 | |||
Allocated Share-based Compensation Expense | $ 71,000 | $ 66,000 | $ 154,000 | |||
Future compensation expense of non-vested restricted stock outstanding | 579,000 | 398,000 | ||||
Compensation expense related to restricted stock | 89,000 | 55,000 | ||||
Unrecognized Salaries And Employee Benefits Expense | 93,000 | 71,000 | 66,000 | |||
Net Income Reduction | $ 130,000 | 92,000 | 146,000 | |||
Minimum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share price | $ 24.44 | |||||
Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share price | $ 33.56 | |||||
Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Allocated Share-based Compensation Expense | $ 89,000 | $ 55,000 | $ 0 | |||
Norwood Financial Corp 2006 Stock Option Plan [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 | 275,000 | |||||
Options, Granted | 0 | 7,423 | 12,500 | 28,600 | ||
Norwood Financial Corp 2006 Stock Option Plan [Member] | 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 | |||||
Shares available for awards | 4,058 | |||||
Norwood Financial Corp 2014 Equity Incentive Plan [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 | 250,000 | |||||
Options, Granted | 24,450 | 13,727 | ||||
Shares available for awards | 202,523 | |||||
Norwood Financial Corp 2014 Equity Incentive Plan [Member] | Employee Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options, Granted | 16,000 | 7,077 | ||||
Norwood Financial Corp 2014 Equity Incentive Plan [Member] | Restricted Stock [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 | 42,000 | |||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | $ 9,300 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | |||||
Norwood Financial Corp 2014 Equity Incentive Plan [Member] | Officer [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for awards | 170,173 | |||||
Norwood Financial Corp 2014 Equity Incentive Plan [Member] | Officer [Member] | Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for awards | 25,250 | |||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | $ 6,000 | $ 4,250 | ||||
Norwood Financial Corp 2014 Equity Incentive Plan [Member] | 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 | 40,000 | |||||
Shares available for awards | 32,350 | |||||
Norwood Financial Corp 2014 Equity Incentive Plan [Member] | Outside Directors [Member] | Restricted Stock [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 | 8,000 | |||||
Shares available for awards | 350 | |||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | $ 2,450 | $ 2,400 | $ 2,800 |
Stock Based Compensation (Summa
Stock Based Compensation (Summary of Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock-Based Compensation [Abstract] | |||
Options, Outstanding, beginning of period | 194,521 | 206,463 | 219,540 |
Options, Granted | 16,000 | 14,500 | 12,500 |
Options, Exercised | (30,823) | (16,859) | (25,577) |
Options, Forfeited | (19,269) | (9,583) | |
Options, Outstanding, end of period | 160,429 | 194,521 | 206,463 |
Options, Exercisable, end of period | 144,429 | 180,021 | 193,963 |
Weighted Average Exercise Price Per Share, Outstanding, beginning of period | $ 26.91 | $ 26.74 | $ 26.64 |
Weighted Average Exercise Price Per Share, Granted | 33.56 | 28.55 | 29.08 |
Weighted Average Exercise Price Per Share, Exercised | 27.34 | 26.19 | 27.05 |
Weighted Average Exercise Price Per Share, Forfeited | 27.86 | 27.02 | |
Weighted Average Exercise Price Per Share, Outstanding, end of period | 27.37 | 26.91 | 26.74 |
Weighted Average Exercise Price Per Share, Exercisable, end of period | $ 26.39 | $ 26.78 | $ 26.59 |
Weighted Average Remaining Contractual Term, Outstanding | 5 years 7 months 6 days | ||
Aggregate Intrinsic Value, Outstanding, beginning of period | $ 362,754 | $ 477,640 | |
Aggregate Intrinsic Value, Outstanding, end of period | 931,963 | 362,754 | $ 477,640 |
Aggregate Intrinsic Value, Exercisable at end of period | $ 931,963 | $ 359,854 | $ 477,640 |
Stock Based Compensation (Restr
Stock Based Compensation (Restricted Stock Rollforward) (Details) - Restricted Stock [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Restricted stock outstanding, beginning balance | 13,810 | 9,300 |
Restricted stock, granted | 8,450 | 6,650 |
Restricted stock, vested | (3,120) | (1,860) |
Restricted stock, forfeited | (450) | (280) |
Restricted stock outstanding, ending balance | 18,690 | 13,810 |
Restricted stock outstanding, weighted-average grant date fair value, beginning balance | $ 28.82 | $ 29.08 |
Restricted stock, granted, weighted-average grant date fair value | 33.56 | 28.55 |
Restricted stock, vested, weighted-average grant date fair value | 28.85 | 29.08 |
Restricted stock, forfeited, weighted-average grant date fair value | 28.80 | 29.08 |
Restricted stock outstanding, weighted-average grant date fair value, ending balance | $ 30.96 | $ 28.82 |
Stock Based Compensation (Sched
Stock Based Compensation (Schedule of Fair Value Assumptions) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock-Based Compensation [Abstract] | |||
Dividend yield | 3.93% | 3.77% | 3.57% |
Expected life | 10 years | 10 years | 10 years |
Expected volatility | 24.84% | 24.35% | 24.97% |
Risk-free interest rate | 2.44% | 2.28% | 2.17% |
Weighted average fair value of options granted | $ 5.79 | $ 4.89 | $ 5.30 |
Stock Based Compensation (Sch90
Stock Based Compensation (Schedule of Outstanding Stock Options) (Details) - $ / shares | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options Outstanding | 160,429 | 194,521 | 206,463 | 219,540 |
Average Exercise Price | $ 27.37 | $ 26.91 | $ 26.74 | $ 26.64 |
Remaining Life, Years | 5 years 7 months 6 days | |||
Options Exercisable | 144,429 | 180,021 | 193,963 | |
Average Exercise Price | $ 26.39 | $ 26.78 | $ 26.59 | |
Average Exercise Price - $27.62 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options Outstanding | 12,650 | |||
Average Exercise Price | $ 28.41 | |||
Remaining Life, Years | 1 year | |||
Options Exercisable | 12,650 | |||
Average Exercise Price | $ 28.41 | |||
Average Exercise Price - $28.64 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options Outstanding | 13,200 | |||
Average Exercise Price | $ 25 | |||
Remaining Life, Years | 2 years | |||
Options Exercisable | 13,200 | |||
Average Exercise Price | $ 25 | |||
Average Exercise Price - $28.41 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options Outstanding | 12,650 | |||
Average Exercise Price | $ 25.99 | |||
Remaining Life, Years | 3 years | |||
Options Exercisable | 12,650 | |||
Average Exercise Price | $ 25.99 | |||
Average Exercise Price - $25.00 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options Outstanding | 1,100 | |||
Average Exercise Price | $ 24.44 | |||
Remaining Life, Years | 3 years 2 months 12 days | |||
Options Exercisable | 1,100 | |||
Average Exercise Price | $ 24.44 | |||
Average Exercise Price - $25.99 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options Outstanding | 15,229 | |||
Average Exercise Price | $ 25.25 | |||
Remaining Life, Years | 4 years | |||
Options Exercisable | 15,229 | |||
Average Exercise Price | $ 25.25 | |||
Average Exercise Price - $24.44 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options Outstanding | 19,800 | |||
Average Exercise Price | $ 24.97 | |||
Remaining Life, Years | 5 years | |||
Options Exercisable | 19,800 | |||
Average Exercise Price | $ 24.97 | |||
Average Exercise Price - $25.25 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options Outstanding | 21,450 | |||
Average Exercise Price | $ 27.05 | |||
Remaining Life, Years | 6 years | |||
Options Exercisable | 21,450 | |||
Average Exercise Price | $ 27.05 | |||
Average Exercise Price - $24.97 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options Outstanding | 1,100 | |||
Average Exercise Price | $ 27.55 | |||
Remaining Life, Years | 6 years | |||
Options Exercisable | 1,100 | |||
Average Exercise Price | $ 27.55 | |||
Average Exercise Price - $27.05 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options Outstanding | 2,000 | |||
Average Exercise Price | $ 28.95 | |||
Remaining Life, Years | 6 years 8 months 12 days | |||
Options Exercisable | 2,000 | |||
Average Exercise Price | $ 28.95 | |||
Average Exercise Price - $27.55 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options Outstanding | 21,250 | |||
Average Exercise Price | $ 26.90 | |||
Remaining Life, Years | 7 years | |||
Options Exercisable | 21,250 | |||
Average Exercise Price | $ 26.90 | |||
Average Exercise Price - $28.95 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options Outstanding | 10,000 | |||
Average Exercise Price | $ 29.08 | |||
Remaining Life, Years | 8 years | |||
Options Exercisable | 10,000 | |||
Average Exercise Price | $ 29.08 | |||
Average Exercise Price - $26.90 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options Outstanding | 14,000 | |||
Average Exercise Price | $ 28.55 | |||
Remaining Life, Years | 9 years | |||
Options Exercisable | 14,000 | |||
Average Exercise Price | $ 28.55 | |||
Average Exercise Price 29.08 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options Outstanding | 16,000 | |||
Average Exercise Price | $ 33.56 | |||
Remaining Life, Years | 10 years | |||
Options Exercisable | 0 | |||
Average Exercise Price | $ 0 | |||
Average Exercise Price - $28.55 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options Exercisable | 0 | |||
Average Exercise Price | $ 0 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 16,000 | 14,000 | 12,500 |
Share price | $ 33.14 | $ 28.75 | $ 29.05 |
Earnings Per Share (Basic and D
Earnings Per Share (Basic and Diluted Earnings Per Share) (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||
Weighted average shares outstanding | 3,877 | 3,682 | 3,645 |
Less: Weighted average unvested restricted shares | (14) | (9) | 0 |
Denominator: Basic earnings per share | 3,863 | 3,673 | 3,645 |
Weighted average shares outstanding | 3,863 | 3,682 | 3,645 |
Add: Dilutive effect of stock options | 22 | 9 | 12 |
Diluted EPS weighted average shares outstanding | 3,885 | 3,691 | 3,657 |
Basic earnings per common share | $ 1.74 | $ 1.60 | $ 2.10 |
Diluted earnings per common share | $ 1.73 | $ 1.60 | $ 2.10 |
Off-Balance Sheet Financial I93
Off-Balance Sheet Financial Instruments (Table) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Loss Contingencies [Line Items] | ||
Financial instrument commitments | $ 82,641 | $ 73,631 |
Commitments to grant loans [Member] | ||
Loss Contingencies [Line Items] | ||
Financial instrument commitments | 22,210 | 19,704 |
Unfunded commitments under lines of credit [Member] | ||
Loss Contingencies [Line Items] | ||
Financial instrument commitments | 54,789 | 48,641 |
Standby letters of credit [Member] | ||
Loss Contingencies [Line Items] | ||
Financial instrument commitments | $ 5,642 | $ 5,286 |
Fair Values of Financial Inst94
Fair Values of Financial Instruments (Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ 302,564 | $ 138,851 |
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 | 424 | 384 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 302,140 | 138,467 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,997 | 9,169 |
U.S. Government Agencies [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 | 0 | 0 |
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 | 1,997 | 9,169 |
U.S. Government Agencies [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
States and political subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 125,101 | 60,755 |
States and political subdivisions [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 | 0 | 0 |
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 | 125,101 | 60,755 |
States and political subdivisions [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Corporate obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 10,112 | 4,974 |
Corporate obligations [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 | 0 | 0 |
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 | 10,112 | 4,974 |
Corporate obligations [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Mortgage-backed securities-government sponsored entities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 164,930 | 63,569 |
Mortgage-backed securities-government sponsored entities [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 | 0 | 0 |
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 | 164,930 | 63,569 |
Mortgage-backed securities-government sponsored entities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Equity securities-financial services [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 424 | 384 |
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 | 424 | 384 |
Equity securities-financial services [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 | 0 | 0 |
Equity securities-financial services [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ 0 | $ 0 |
Fair Values of Financial Inst95
Fair Values of Financial Instruments (Fair Value, Assets and Liabilities Measured on Nonrecurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Impaired Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 2,624 | $ 7,615 |
Impaired Loans [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] | ||
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Impaired Loans [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
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 | 2,624 | 7,615 |
Foreclosed Real Estate Owned [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 5,302 | 2,847 |
Foreclosed Real Estate Owned [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] | ||
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Foreclosed Real Estate Owned [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
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 | $ 5,302 | $ 2,847 |
Fair Values of Financial Inst96
Fair Values of Financial Instruments (Additional Qualitative Information about Level 3 Assets) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)loan | Dec. 31, 2015USD ($)loan | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Financing Receivable, Recorded Investment | $ 2,624 | $ 9,228 | |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 6,373 | ||
Impaired Financing Receivable, Related Allowance | 1,613 | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 2,624 | 2,855 | |
Impaired Loans [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | 2,624 | $ 7,615 | |
Fair Value Disclosure, Unobservable Input Range | Probability of default | ||
Fair Value Inputs, Probability of Default | 0.00% | ||
Number of impaired loans requiring a valuation allowance | loan | 3 | ||
Impaired Financing Receivable, Recorded Investment | 2,624 | $ 9,228 | |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 6,373 | ||
Impaired Financing Receivable, Related Allowance | $ 0 | $ 1,613 | |
Number of impaired loans not requiring a valuation allowance | loan | 7 | 20 | |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | $ 2,855 | ||
Impaired Loans, Cumulative Charge-Offs | $ 831 | 2,044 | |
Impaired Loans [Member] | Appraisal of collateral [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | $ 1,473 | $ 2,574 | |
Fair Value Measurements, Valuation Techniques | [1] | Appraisal of collateral(1) | Appraisal of collateral(1) |
Fair Value Disclosure, Unobservable Input Range | [2] | Appraisal adjustments(2) | Appraisal adjustments(2) |
Fair Value Inputs, Comparability Adjustments | 10.00% | 10.00% | |
Impaired Loans [Member] | Present value of future cash flows [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | $ 1,151 | $ 5,041 | |
Fair Value Measurements, Valuation Techniques | Present value of future cash flows | Present value of future cash flows | |
Fair Value Disclosure, Unobservable Input Range | Loan discount rate | Loan discount rate | |
Impaired Loans [Member] | Minimum [Member] | Present value of future cash flows [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value Inputs, Discount Rate | 4.00% | 4.00% | |
Impaired Loans [Member] | Maximum [Member] | Present value of future cash flows [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value Inputs, Discount Rate | 5.25% | 7.00% | |
Impaired Loans [Member] | Weighted Average [Member] | Appraisal of collateral [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value Inputs, Comparability Adjustments | 10.00% | 10.00% | |
Impaired Loans [Member] | Weighted Average [Member] | Present value of future cash flows [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value Inputs, Discount Rate | 5.11% | 5.61% | |
Foreclosed Real Estate Owned [Member] | Appraisal of collateral [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | $ 5,302 | $ 2,847 | |
Fair Value Measurements, Valuation Techniques | [1] | Appraisal of collateral(1) | Appraisal of collateral(1) |
Fair Value Disclosure, Unobservable Input Range | [2] | Liquidation Expenses(2) | Liquidation Expenses(2) |
Fair Value Inputs, Discount Rate | 10.00% | 10.00% | |
[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. |
Fair Values of Financial Inst97
Fair Values of Financial Instruments (Fair Value, by Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial assets: Cash and cash equivalents, Fair Value Disclosure | $ 17,174 | $ 10,010 | ||
Financial assets: Securities, Fair Value Disclosure | 302,564 | 138,851 | ||
Financial assets: Loans receivable, net, Fair Value Disclosure | 716,661 | 559,416 | ||
Financial assets: Mortgage servicing rights, Fair Value Disclosure | 250 | 291 | ||
Financial assets: Regulatory stock, Fair Value Disclosure | 2,119 | 3,412 | ||
Financial assets: Bank owned life insurance, Fair Value Disclosure | 36,133 | 18,820 | ||
Financial assets: Accrued interest receivable, Fair Value Disclosure | 3,643 | 2,363 | ||
Financial liabilities: Deposits, Fair Value Disclosure | 925,561 | 551,175 | ||
Financial liabilities: Short-term borrowings, Fair Value Disclosure | 32,811 | 53,235 | ||
Financial liabilities: Other borrowings, Fair Value Disclosure | 31,863 | 41,260 | ||
Financial liabilities: Accrued interest payable, Fair Value Disclosure | 1,069 | 957 | ||
Off-balance sheet financial instruments: Commitments to extend credit and outstanding letters of credit, Fair Value Disclosure | 0 | 0 | ||
Financial assets: Cash and cash equivalents | 17,174 | 10,010 | $ 12,376 | $ 7,863 |
Financial assets: Securities | 302,564 | 138,851 | ||
Financial assets: Loans receivable, net | 707,426 | 552,627 | ||
Financial assets: Mortgage servicing rights | 232 | 261 | ||
Financial assets: Regulatory stock | 2,119 | 3,412 | ||
Financial assets: Bank owned life insurance | 36,133 | 18,820 | ||
Financial assets: Accrued interest receivable | 3,643 | 2,363 | ||
Financial liabilities: Deposits | 925,385 | 550,909 | ||
Financial liabilities: Short-term borrowings | 32,811 | 53,235 | ||
Financial liabilities: Other borrowings | 32,001 | 41,126 | ||
Financial liabilities: Accrued interest payable | 1,069 | 957 | ||
Off-balance sheet financial instruments: Commitments to extend credit and outstanding letters of credit | 0 | 0 | ||
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 cash equivalents, Fair Value Disclosure | 17,174 | 10,010 | ||
Financial assets: Securities, Fair Value Disclosure | 424 | 384 | ||
Financial assets: Loans receivable, net, Fair Value Disclosure | 0 | 0 | ||
Financial assets: Mortgage servicing rights, Fair Value Disclosure | 0 | 0 | ||
Financial assets: Regulatory stock, Fair Value Disclosure | 2,119 | 3,412 | ||
Financial assets: Bank owned life insurance, Fair Value Disclosure | 36,133 | 18,820 | ||
Financial assets: Accrued interest receivable, Fair Value Disclosure | 3,643 | 2,363 | ||
Financial liabilities: Deposits, Fair Value Disclosure | 629,829 | 354,162 | ||
Financial liabilities: Short-term borrowings, Fair Value Disclosure | 32,811 | 53,235 | ||
Financial liabilities: Other borrowings, Fair Value Disclosure | 0 | 0 | ||
Financial liabilities: Accrued interest payable, Fair Value Disclosure | 1,069 | 957 | ||
Off-balance sheet financial instruments: Commitments to extend credit and outstanding letters of credit, Fair Value Disclosure | 0 | 0 | ||
Significant Other Observable Inputs (Level 2) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial assets: Cash and cash equivalents, Fair Value Disclosure | 0 | 0 | ||
Financial assets: Securities, Fair Value Disclosure | 302,140 | 138,467 | ||
Financial assets: Loans receivable, net, Fair Value Disclosure | 0 | 0 | ||
Financial assets: Mortgage servicing rights, Fair Value Disclosure | 0 | 0 | ||
Financial assets: Regulatory stock, Fair Value Disclosure | 0 | 0 | ||
Financial assets: Bank owned life insurance, Fair Value Disclosure | 0 | 0 | ||
Financial assets: Accrued interest receivable, Fair Value Disclosure | 0 | 0 | ||
Financial liabilities: Deposits, Fair Value Disclosure | 0 | 0 | ||
Financial liabilities: Short-term borrowings, Fair Value Disclosure | 0 | 0 | ||
Financial liabilities: Other borrowings, Fair Value Disclosure | 0 | 0 | ||
Financial liabilities: Accrued interest payable, Fair Value Disclosure | 0 | 0 | ||
Off-balance sheet financial instruments: Commitments to extend credit and outstanding letters of credit, Fair Value Disclosure | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial assets: Cash and cash equivalents, Fair Value Disclosure | 0 | 0 | ||
Financial assets: Securities, Fair Value Disclosure | 0 | 0 | ||
Financial assets: Loans receivable, net, Fair Value Disclosure | 716,661 | 559,416 | ||
Financial assets: Mortgage servicing rights, Fair Value Disclosure | 250 | 291 | ||
Financial assets: Regulatory stock, Fair Value Disclosure | 0 | 0 | ||
Financial assets: Bank owned life insurance, Fair Value Disclosure | 0 | 0 | ||
Financial assets: Accrued interest receivable, Fair Value Disclosure | 0 | 0 | ||
Financial liabilities: Deposits, Fair Value Disclosure | 295,732 | 197,013 | ||
Financial liabilities: Short-term borrowings, Fair Value Disclosure | 0 | 0 | ||
Financial liabilities: Other borrowings, Fair Value Disclosure | 31,863 | 41,260 | ||
Financial liabilities: Accrued interest payable, Fair Value Disclosure | 0 | 0 | ||
Off-balance sheet financial instruments: Commitments to extend credit and outstanding letters of credit, Fair Value Disclosure | $ 0 | $ 0 |
Accumulated Other Comprehensi98
Accumulated Other Comprehensive Income (Components of Accumulated Other Comprehensive Income and Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | [1] | $ 488 | |||
Other comprehensive income (loss) before reclassification | [1] | (4,422) | |||
Amount reclassified from accumulated other comprehensive income | [1] | (185) | |||
Net of tax amount | (4,607) | [1] | $ 26 | $ 3,064 | |
Ending balance | [1] | (4,119) | 488 | ||
Unrealized gains on available for sale securities [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | [1] | 488 | 462 | ||
Other comprehensive income (loss) before reclassification | [1] | (4,740) | 439 | ||
Amount reclassified from accumulated other comprehensive income | [1] | (185) | (413) | ||
Net of tax amount | [1] | (4,925) | 26 | ||
Ending balance | [1] | (4,437) | $ 488 | $ 462 | |
Unrealized gain on pension liability [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income (loss) before reclassification | [1] | 318 | |||
Net of tax amount | [1] | 318 | |||
Ending balance | [1] | $ 318 | |||
[1] | All amounts are net of tax. Amounts in parentheses indicate debits. |
Accumulated Other Comprehensi99
Accumulated Other Comprehensive Income (Items Reclassified Out of Each Component of OCI) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net realized gains on sales of securities | $ 284 | $ 626 | $ 1,170 | |
Income tax expense | (1,884) | (1,632) | (2,606) | |
Net income | 6,711 | 5,908 | $ 7,657 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income tax expense | [1] | (99) | (213) | |
Net income | [1] | 185 | 413 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized gains on available for sale securities [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net realized gains on sales of securities | [1] | $ 284 | $ 626 | |
[1] | Amounts in parentheses indicate debits to net income. |
Acquisition of Delaware Banc100
Acquisition of Delaware Bancshares, Inc. (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 31, 2016 | Oct. 31, 2007 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||||
Certain Loans Acquired in Transfer, Nonaccretable Difference | $ 1,014 | ||||
Loans and Leases Receivable, Net Reported Amount | $ 707,426 | $ 552,627 | |||
Loans Receivable, Fair Value Disclosure | 716,661 | 559,416 | |||
Goodwill | 11,331 | 9,715 | |||
Goodwill, Impairment Loss | 0 | 0 | $ 0 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | 732 | $ 610 | |||
Delaware Bancshares, Inc. Acquisition [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Share Price | $ 16.68 | ||||
Business Acquisition, shares exchanged | 0.6221 | ||||
Payments to Acquire Businesses, Gross | $ 3,860 | ||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 431,605 | ||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | $ 1,410 | ||||
Certain Loans Acquired in Transfer, Nonaccretable Difference | 260 | ||||
Loans and Leases Receivable, Net Reported Amount | 111,307 | ||||
Loans Receivable, Fair Value Disclosure | 109,693 | ||||
Goodwill | $ 1,616 | 1,616 | |||
Goodwill, Impairment Loss | $ 0 | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | ||||
Finite-Lived Intangible Assets, Gross | $ 449 | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | $ 14 | ||||
Delaware Bancshares, Inc. Acquisition [Member] | Delaware Bancshares, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Proceeds from Issuance of Trust Preferred Securities | $ 8,000 | ||||
Delaware Bancshares, Inc. Acquisition [Member] | Delaware Bancshares, Inc. [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Business Acquisition [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 2.40% |
Acquisition of Delaware Banc101
Acquisition of Delaware Bancshares, Inc. (Tables) (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | |||||
Stock Issued During Period, Value, Acquisitions | $ 12,150 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 111,079 | $ 100,998 | $ 99,041 | $ 91,864 | |
Goodwill resulting from Delaware Bancshares, Inc. Merger | 11,331 | $ 9,715 | |||
Delaware Bancshares, Inc. Acquisition [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquiree shares settled for stock | 694,114 | ||||
Business Acquisition, shares exchanged | 0.6221 | ||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 431,605 | ||||
Value assigned to acquirer common share, per share | $ 28.15 | ||||
Stock Issued During Period, Value, Acquisitions | $ 12,150 | ||||
Acquiree shares settled for cash | 231,385 | ||||
Business Acquisition, Share Price | $ 16.68 | ||||
Purchase price assigned to acquiree shares | $ 3,860 | ||||
Cash in lieu of fractional shares | 6 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 19,357 | ||||
Goodwill and intangible assets | (7,640) | ||||
Tangible equity | 11,717 | ||||
Adjustments to investments acquired to fair value | 219 | ||||
Adjustments to interest rates on loans acquired to fair value | 1,486 | ||||
Adjustments to general credit on loans acquired to fair value | (1,614) | ||||
Adjustments to specific credit - non-amortizing on loans acquired to fair value | (260) | ||||
Adjustments to specific credit - amortizing on loans acquired to fair value | (239) | ||||
Adjustments to core deposit intangibles acquired to fair value | 449 | ||||
Adjustments to deferred loan fees acquired to fair value | (296) | ||||
Adjustments to premises and equipment acquired to fair value | 3,053 | ||||
Adjustments to allowance for loan and lease losses acquired to fair value | 1,651 | ||||
Adjustments to deferred tax assets acquired to fair value | (1,417) | ||||
Adjustments to other assets acquired to fair value | (97) | ||||
Adjustments to time deposits acquired to fair value | (252) | ||||
Total purchase price | 16,016 | ||||
Net Assets Acquired: Cash | 14,977 | ||||
Net Assets Acquired: Securities available for sale | 208,488 | ||||
Net Assets Acquired: Loans | 116,674 | ||||
Net Assets Acquired: Premises & equipment, net | 7,292 | ||||
Net assets acquired: Regulatory stock | 279 | ||||
Net Assets Acquired: Accrued interest receivable | 1,626 | ||||
Net assets acquired: Bank-owned life insurance | 14,762 | ||||
Net Assets Acquired: Core deposit intangible | 449 | ||||
Net Assets Acquired: Deferred tax assets | 3,034 | ||||
Net Assets Acquired: Other assets | 3,282 | ||||
Net Assets Acquired: Time deposits | (71,342) | ||||
Net Assets Acquired: Deposits other than time deposits | (255,921) | ||||
Net Assets Acquired: Borrowings | (21,232) | ||||
Net Assets Acquired: Accrued interest payable | (95) | ||||
Net Assets Acquired: Other liabilities | (7,873) | ||||
Net Assets Acquired | 14,400 | ||||
Goodwill resulting from Delaware Bancshares, Inc. Merger | $ 1,616 | $ 1,616 |
Acquisition of Delaware Banc102
Acquisition of Delaware Bancshares, Inc. (Future Amortization Expense) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Business Acquisition [Line Items] | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 150 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 126 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 101 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 77 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 52 |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 106 |
Amortization Expense for the Core Deposit Intangible, Total | 612 |
Delaware Bancshares, Inc. Acquisition [Member] | |
Business Acquisition [Line Items] | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 30 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 30 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 30 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 30 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 30 |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 299 |
Amortization Expense for the Core Deposit Intangible, Total | $ 449 |
Acquisition of Delaware Banc103
Acquisition of Delaware Bancshares, Inc. (Proforma) (Details) - USD ($) $ / shares in Units, $ in Thousands | 5 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition [Line Items] | ||||
Net interest income | $ 28,590 | $ 24,521 | $ 24,560 | |
Noninterest Income | 5,179 | 4,699 | 5,110 | |
Net Income (Loss) Attributable to Parent | $ 6,711 | $ 5,908 | $ 7,657 | |
Earnings Per Share, Basic | $ 1.74 | $ 1.60 | $ 2.10 | |
Earnings Per Share, Diluted | $ 1.73 | $ 1.60 | $ 2.10 | |
Parent Company [Member] | ||||
Business Acquisition [Line Items] | ||||
Net Income (Loss) Attributable to Parent | $ 6,711 | $ 5,908 | $ 7,657 | |
Delaware Bancshares, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Net interest income | $ 3,900 | |||
Noninterest Income | 893 | |||
Net Income (Loss) Attributable to Parent | $ 750 | |||
Earnings Per Share, Basic | $ 0.18 | |||
Earnings Per Share, Diluted | $ 0.18 | |||
Delaware Bancshares, Inc. [Member] | Pro Forma [Member] | ||||
Business Acquisition [Line Items] | ||||
Net interest income | 37,199 | 33,787 | ||
Noninterest Income | 6,487 | 7,939 | ||
Net Income (Loss) Attributable to Parent | $ 3,588 | $ 6,944 | ||
Earnings Per Share, Basic | $ 0.87 | $ 1.69 | ||
Earnings Per Share, Diluted | $ 0.87 | $ 1.68 |
Acquistion of Delaware Bancshar
Acquistion of Delaware Bancshares, Inc. (Nonrecurring Adjustments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Professional Fees [Member] | ||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Business Combination, Acquisition Related Costs | $ 1,602 | $ 80 |
Data Processing Related [Member] | ||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Business Combination, Acquisition Related Costs | 638 | |
Other Acquisition-Related Costs [Member] | ||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Business Combination, Acquisition Related Costs | $ 810 |
Norwood Financial Corp (Pare105
Norwood Financial Corp (Parent Company Only) Financial Information (Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Condensed Financial Statements, Captions [Line Items] | ||||
Cash on deposit in bank subsidiary | $ 14,900 | $ 9,744 | ||
Securities available for sale | 302,564 | 138,851 | ||
Other assets | 2,359 | 1,434 | ||
Total Assets | 1,111,183 | 750,505 | ||
Liabilities | 1,000,104 | 649,507 | ||
Stockholders' equity | 111,079 | 100,998 | $ 99,041 | $ 91,864 |
Total Liabilities and Stockholders' Equity | 1,111,183 | 750,505 | ||
Parent Company [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash on deposit in bank subsidiary | 3,005 | 2,151 | ||
Securities available for sale | 397 | 384 | ||
Investment in bank subsidiary | 105,138 | 95,895 | ||
Other assets | 4,539 | 4,113 | ||
Total Assets | 113,079 | 102,543 | ||
Liabilities | 2,000 | 1,545 | ||
Stockholders' equity | 111,079 | 100,998 | ||
Total Liabilities and Stockholders' Equity | $ 113,079 | $ 102,543 |
Norwood Financial Corp (Pare106
Norwood Financial Corp (Parent Company Only) Financial Information (Statements of Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Financial Statements, Captions [Line Items] | |||
Net realized gain (loss) on sales of securities | $ 284 | $ 626 | $ 1,170 |
Income before taxes and equity in undistributed earnings | 8,595 | 7,540 | 10,263 |
INCOME TAX EXPENSE | 1,884 | 1,632 | 2,606 |
Net Income | 6,711 | 5,908 | 7,657 |
Comprehensive Income, Net of Tax | 2,104 | 5,934 | 10,721 |
Parent Company [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Dividends from bank subsidiary | 28,598 | 4,574 | 4,377 |
Other interest income | 12 | 11 | 10 |
Total Revenues | 28,610 | 4,585 | 4,387 |
Expenses | 1,347 | 313 | 346 |
Income before taxes and equity in undistributed earnings | 27,263 | 4,272 | 4,041 |
INCOME TAX EXPENSE | (225) | (103) | (114) |
Income before equity in undistributed earnings | 27,488 | 4,375 | 4,155 |
Equity in undistributed earnings of subsidiary | (20,777) | 1,533 | 3,502 |
Net Income | 6,711 | 5,908 | 7,657 |
Comprehensive Income, Net of Tax | $ 2,104 | $ 5,934 | $ 10,721 |
Norwood Financial Corp (Pare107
Norwood Financial Corp (Parent Company Only) Financial Information (Statements of Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Financial Statements, Captions [Line Items] | |||
Net Income | $ 6,711 | $ 5,908 | $ 7,657 |
Net (gains) losses on sales of securities | 284 | 626 | 1,170 |
Other, net | 27 | 419 | (447) |
Net Cash Provided by Operating Activities | 11,338 | 10,498 | 10,531 |
Proceeds from sale of securities | 110,748 | 44,976 | 66,263 |
Securities available for sale: Purchases | (100,982) | (50,565) | (74,426) |
Net Cash Provided by (Used in) Investing Activities | 3,543 | (46,244) | 4,691 |
Proceeds from Stock Options Exercised | 843 | 441 | 691 |
Excess Tax Benefit from Share-based Compensation, Financing Activities | 38 | 16 | 17 |
ESOP purchase of shares from treasury stock | 131 | 146 | 150 |
Acquisition of treasury stock | (447) | (127) | (179) |
Cash dividends paid | (4,714) | (4,527) | (4,370) |
Net Cash (Used in) Provided by Financing Activities | (7,717) | 33,380 | (10,709) |
Net Increase (Decrease) in Cash and Cash Equivalents | 7,164 | (2,366) | 4,513 |
CASH AND CASH EQUIVALENTS - BEGINNING | 10,010 | 12,376 | 7,863 |
CASH AND CASH EQUIVALENTS - ENDING | 17,174 | 10,010 | 12,376 |
Parent Company [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net Income | 6,711 | 5,908 | 7,657 |
Undistributed earnings of bank subsidiary | 20,777 | (1,533) | (3,502) |
Other, net | 305 | 19 | (177) |
Net Cash Provided by Operating Activities | 27,183 | 4,356 | 4,332 |
Outlays for business acquisitions | (2,324) | 0 | 0 |
Net Cash Provided by (Used in) Investing Activities | (2,324) | 0 | 0 |
Repayment of borrowings | (19,856) | 0 | 0 |
Proceeds from Stock Options Exercised | 843 | 441 | 691 |
Outlays for business acquisitions | 2,324 | 0 | 0 |
Excess Tax Benefit from Share-based Compensation, Financing Activities | 38 | 16 | 17 |
ESOP purchase of shares from treasury stock | 131 | 146 | 150 |
Acquisition of treasury stock | (447) | (127) | (179) |
Cash dividends paid | (4,714) | (4,527) | (4,370) |
Net Cash (Used in) Provided by Financing Activities | (24,005) | (4,051) | (3,691) |
Net Increase (Decrease) in Cash and Cash Equivalents | 854 | 305 | 641 |
CASH AND CASH EQUIVALENTS - BEGINNING | 2,151 | 1,846 | 1,205 |
CASH AND CASH EQUIVALENTS - ENDING | $ 3,005 | $ 2,151 | $ 1,846 |