Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 01, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
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 | 6,234,939 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | |
ASSETS | |||
Cash and due from banks | $ 13,947 | $ 14,900 | |
Interest-bearing deposits with banks | 368 | 2,274 | |
Cash and cash equivalents | 14,315 | 17,174 | |
Securities available for sale, at fair value | 285,706 | 302,564 | |
Loans receivable | 756,014 | 713,889 | |
Less: Allowance for loan losses | 7,760 | 6,463 | |
Net loans receivable | 748,254 | 707,426 | |
Regulatory stock, at cost | 3,115 | 2,119 | |
Bank premises and equipment, net | 12,922 | 13,531 | |
Bank owned life insurance | 36,839 | 36,133 | |
Accrued interest receivable | 3,729 | 3,643 | |
Foreclosed real estate owned | 4,243 | 5,302 | |
Goodwill | 11,331 | 11,331 | |
Other intangibles | 496 | 612 | |
Deferred tax asset | 8,304 | 8,989 | |
Other assets | 2,699 | 2,359 | |
TOTAL ASSETS | 1,131,953 | 1,111,183 | |
LIABILITIES | |||
Deposits: Non-interest bearing demand | 212,844 | 191,445 | |
Deposits: Interest-bearing | 711,178 | 733,940 | |
Total deposits | 924,022 | 925,385 | |
Short-term borrowings | 47,229 | 32,811 | |
Other borrowings | 31,771 | 32,001 | |
Accrued interest payable | 1,167 | 1,069 | |
Other liabilities | 10,072 | 8,838 | |
TOTAL LIABILITIES | 1,014,261 | 1,000,104 | |
STOCKHOLDERS' EQUITY | |||
Common stock, $.10 par value per share, authorized 10,000,000 shares; issued 2017: 6,246,662 shares, 2016: 4,164,723 shares | 625 | 416 | |
Surplus | 47,467 | 47,682 | |
Retained earnings | 71,210 | 67,225 | |
Treasury stock at cost: 2017: 11,724 shares, 2016: 4,509 shares | (341) | (125) | |
Accumulated other comprehensive loss | [1] | (1,269) | (4,119) |
TOTAL STOCKHOLDERS' EQUITY | 117,692 | 111,079 | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,131,953 | $ 1,111,183 | |
[1] | All amounts are net of tax. Amounts in parentheses indicate debits. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 |
Consolidated Balance Sheets [Abstract] | ||
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 | 6,246,662 | 4,164,723 |
Treasury Stock, Shares | 11,724 | 4,509 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
INTEREST INCOME | |||||
Loans receivable, including fees | $ 8,289 | $ 7,267 | $ 24,020 | $ 19,752 | |
Securities | 1,605 | 1,239 | 4,856 | 3,008 | |
Other | 2 | 22 | 37 | 28 | |
Total Interest Income | 9,896 | 8,528 | 28,913 | 22,788 | |
INTEREST EXPENSE | |||||
Deposits | 828 | 677 | 2,392 | 1,838 | |
Short-term borrowings | 82 | 65 | 138 | 142 | |
Other borrowings | 116 | 216 | 360 | 669 | |
Total interest expense | 1,026 | 958 | 2,890 | 2,649 | |
NET INTEREST INCOME | 8,870 | 7,570 | 26,023 | 20,139 | |
PROVISION FOR LOAN LOSSES | 600 | 450 | 1,800 | 1,600 | |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 8,270 | 7,120 | 24,223 | 18,539 | |
OTHER INCOME | |||||
Service charges and fees | 1,105 | 829 | 3,056 | 2,000 | |
Income from fiduciary activities | 160 | 126 | 395 | 342 | |
Net realized gains on sales of securities | 129 | 167 | 269 | ||
Gains on sale of loans, net | 67 | 54 | |||
Gain on sale of deposits | 209 | ||||
Earnings and proceeds on bank owned life insurance | 320 | 283 | 850 | 616 | |
Other | 144 | 161 | 414 | 408 | |
Total other income | 1,858 | 1,399 | 5,158 | 3,689 | |
OTHER EXPENSES | |||||
Salaries and employee benefits | 3,209 | 3,070 | 9,639 | 7,620 | |
Occupancy, furniture & equipment, net | 799 | 755 | 2,519 | 1,736 | |
Data processing and related operations | 354 | 423 | 1,022 | 949 | |
Taxes, other than income | 233 | 205 | 693 | 535 | |
Professional fees | 217 | 185 | 706 | 516 | |
Federal Deposit Insurance Corporation insurance | 97 | 170 | 283 | 402 | |
Foreclosed real estate | 303 | 119 | 1,028 | 582 | |
Amortization of intangibles | 35 | 34 | 115 | 81 | |
Merger related | 1,659 | 1,664 | |||
Other | 992 | 1,059 | 2,979 | 2,471 | |
Total other expenses | 6,239 | 7,679 | 18,984 | 16,556 | |
INCOME BEFORE INCOME TAXES | 3,889 | 840 | 10,397 | 5,672 | |
INCOME TAX EXPENSE | 948 | 228 | 2,356 | 1,307 | |
NET INCOME | $ 2,941 | $ 612 | $ 8,041 | $ 4,365 | |
BASIC EARNINGS PER SHARE | [1] | $ 0.47 | $ 0.10 | $ 1.29 | $ 0.77 |
DILUTED EARNINGS PER SHARE | [1] | $ 0.47 | $ 0.10 | $ 1.28 | $ 0.77 |
[1] | Per share data has been restated to give retroactive effect to the 50% stock dividend declared on August 8, 2017. |
Consolidated Statements of Inc5
Consolidated Statements of Income (Parenthetical) | 9 Months Ended |
Sep. 30, 2017 | |
Consolidated Statements of Income [Abstract] | |
Common Stock, Dividend Rate, Percentage | 50.00% |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Consolidated Statements of Comprehensive Income [Abstract] | |||||
Net income | $ 2,941 | $ 612 | $ 8,041 | $ 4,365 | |
Other comprehensive income (loss): | |||||
Unrealized holding gain | 529 | (653) | 4,486 | 3,176 | |
Unrealized holding gain : Tax effect | (180) | 221 | (1,526) | (1,080) | |
Reclassification of gains recognized in net income | (129) | (167) | (269) | ||
Reclassification of gains recognized in net income: Tax effect | 43 | 57 | 91 | ||
Other comprehensive income (loss) | [1] | 263 | (432) | 2,850 | 1,918 |
Comprehensive Income | $ 3,204 | $ 180 | $ 10,891 | $ 6,283 | |
[1] | All amounts are net of tax. Amounts in parentheses indicate debits. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - 9 months ended Sep. 30, 2017 - 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, 2016 | $ 416 | $ 47,682 | $ 67,225 | $ (125) | $ (4,119) | $ 111,079 | ||
Beginning balance, shares at Dec. 31, 2016 | 4,164,723 | 4,509 | ||||||
Net income | 8,041 | 8,041 | ||||||
Other comprehensive income | 2,850 | 2,850 | [1] | |||||
Cash dividends declared | [2] | (4,037) | (4,037) | |||||
Compensation expense related to restricted stock | 107 | 107 | ||||||
Acquisition of treasury stock | $ (1,290) | (1,290) | ||||||
Acquisition of treasury stock, shares | 32,257 | |||||||
Stock options exercised | (308) | $ 1,074 | $ 766 | |||||
Stock options exercised, shares | (28,950) | (28,950) | ||||||
Tax benefit of stock options | 125 | $ 125 | ||||||
Compensation expense related to stock options | 69 | 69 | ||||||
Stock dividend declared-50% | $ 209 | (208) | (19) | (18) | ||||
Stock dividend declared-50%, shares | 2,081,939 | 3,908 | ||||||
Ending balance, shares at Sep. 30, 2017 | 6,246,662 | 11,724 | ||||||
Ending balance at Sep. 30, 2017 | $ 625 | $ 47,467 | $ 71,210 | $ (341) | $ (1,269) | $ 117,692 | ||
[1] | All amounts are net of tax. Amounts in parentheses indicate debits. | |||||||
[2] | Per share data has been restated to give retroactive effect to the 50% stock dividend declared on August 8, 2017. |
Consolidated Statements of Cha8
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) | 9 Months Ended |
Sep. 30, 2017$ / shares | |
Consolidated Statements of Changes in Stockholders' Equity [Abstract] | |
Cash dividends declared | $ 0.65 |
Common Stock, Dividend Rate, Percentage | 50.00% |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 8,041 | $ 4,365 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 1,800 | 1,600 |
Depreciation | 703 | 484 |
Amortization of intangible assets | 115 | 81 |
Deferred income taxes | (783) | 155 |
Net amortization of securities premiums and discounts | 1,651 | 1,039 |
Net realized gain on sales of securities | (167) | (269) |
Gain on sale of deposits | (209) | 0 |
Earnings and proceeds on bank owned life insurance | (850) | (616) |
Loss on sales and writedowns of fixed assets and foreclosed real estate owned | 673 | 2 |
Gain on sale of loans | (67) | (54) |
Loans originated for sale | (1,693) | (1,685) |
Proceeds from sale of loans originated for sale | 1,760 | 1,739 |
Compensation expense related to stock options | 69 | 53 |
Tax benefit of stock options exercised | 125 | 3 |
Compensation expense related to restricted stock | 107 | 67 |
(Increase) decrease in accrued interest receivable | (86) | (1,178) |
Increase (decrease) in accrued interest payable | 98 | 84 |
Other, net | 1,153 | 2,068 |
Net cash provided by operating activities | 12,440 | 7,938 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Proceeds from sales | 13,027 | 101,804 |
Proceeds from maturities and principal reductions on mortgage-backed securities | 20,570 | 18,083 |
Purchases | (13,905) | (80,538) |
Purchase of regulatory stock | (3,737) | (2,675) |
Redemption of regulatory stock | 2,741 | 4,015 |
Net increase in loans | (42,783) | (35,325) |
Proceeds from bank-owned life insurance | 0 | 205 |
Purchase of bank-owned life insurance | 0 | (2,000) |
Purchase of premises and equipment | (484) | (337) |
Proceeds from sales of fixed assets and foreclosed real estate owned | 777 | 387 |
Acquisition, net of cash and cash equivalents acquired | 0 | 11,112 |
Net cash (used in) provided by investing activities | (23,794) | 14,731 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net increase in deposits | 12,505 | 44,072 |
Deposits sold | (13,659) | 0 |
Net increase (decrease) in short-term borrowings | 14,418 | (21,456) |
Repayments of other borrowings | (20,230) | (18,439) |
Proceeds from other borrowings | 20,000 | 0 |
Stock options exercised | 766 | 160 |
Purchase of treasury stock | (1,290) | (447) |
Cash dividends paid | (4,015) | (3,436) |
Net cash provided by financing activities | 8,495 | 454 |
(Decrease) increase in cash and cash equivalents | (2,859) | 23,123 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 17,174 | 10,010 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 14,315 | 33,133 |
Supplemental Disclosure of Cash Flow Information | ||
Cash payments for: Interest on deposits and borrowings | 2,792 | 2,566 |
Cash payments for: Income taxes paid, net of refunds | 1,825 | 1,135 |
Supplemental Schedule of Noncash Investing Activities | ||
Transfers of loans to foreclosed real estate and repossession of other assets | 112 | 2,953 |
Cash dividends declared | $ 4,037 | 3,567 |
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 | 2,934 | |
Noncash assets acquired: Goodwill | 1,964 | |
Total Noncash assets acquired | 357,502 | |
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 | 1,039 | |
Cash Acquired | $ 14,977 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The unaudited consolidated financial statements include the accounts of Norwood Financial Corp. (Company) and its wholly-owned subsidiary, Wayne Bank (Bank) and the Bank’s wholly-owned subsidiaries, WCB Realty Corp., Norwood Investment Corp., Norwood Settlement Services, LLC, and WTRO Properties, Inc. On June 13, 2017, the Company approved and adopted a Plan of Dissolution for Norwood Settlement Services, LLC. All activity prior to the dissolution is included in the consolidated financial statements. All significant intercompany transactions have been eliminated in consolidation. The accompanying unaudited consolidated financial statements have been prepared in conformity with generally accepted accounting principles for interim financial statements and with instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ from those estimates. The financial statements reflect, in the opinion of management, all normal, recurring adjustments necessary to present fairly the financial position and results of operations of the Company. The operating results for the three and nine month periods ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 or any other future interim period. Stock Dividend On August 8, 2017 , the Company declared a 50% stock dividend to stockholders of record on August 22, 2017 which was payable September 15, 2017 . Share and per share information has been adjusted for this dividend. These statements should be read in conjunction with the consolidated financial statements and related notes which are incorporated by reference in the Company’s Annual Report on Form 10-K for the year-ended December 31, 2016. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 2. Earnings Per Share Basic earnings per share represents income available to common stockholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect 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. The following table sets forth the weighted average shares outstanding used in the computations of basic and diluted earnings per share. All share and per share information has been restated to reflect the retroactive effect of the 50% stock dividend declared on August 8, 2017. (in thousands) Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Weighted average shares outstanding 6,239 5,967 6,239 5,685 Less: Unvested restricted shares (28) (21) (28) (21) Basic EPS weighted average shares outstanding 6,211 5,946 6,211 5,664 Basic EPS weighted average shares outstanding 6,211 5,946 6,211 5,664 Add: Dilutive effect of stock options 52 14 56 14 Diluted EPS weighted average shares outstanding 6,263 5,960 6,267 5,678 As of September 30, 2017, there were no stock options that would be anti-dilutive to the earnings per share calculations based upon the closing price of Norwood common stock of $30.52 per share on September 30, 2017. A s of September 30, 2016, there were 16,500 anti-dilutive options based on Norwood's closing price of $19.38 per share , after adjus ting for the 50% stock dividend declared on August 8, 2017. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | 3. Stock-Based Compensation No awards were granted during the nine -month period ending September 30 , 2017. As of September 30 , 2017, there was $23,000 of total unrecognized compensation cost related to non-vested options granted in 2016 under the 2014 Equity Incentive Plan, which will be fully amortized by December 31, 2017. Compensation costs related to stock options amounted to $69,000 and $53,000 during the nine -month periods ended September 30 , 2017 and 2016, respectively. A summary of stock options from all plans, adjusted for stock dividends declared, is shown below. Weighted Average Exercise Weighted Average Aggregate Price Remaining Intrinsic Value Options Per Share Contractual Term ($000) Outstanding at January 1, 2017 225,669 $ 19.46 5.6 Yrs. $ 932 Granted - - - - Exercised (28,950) 26.46 3.1 Yrs. - Forfeited (1,000) 28.55 8.2 Yrs. - Outstanding at September 30, 2017 195,719 $ 18.38 5.2 Yrs. $ 2,377 Exercisable at September 30, 2017 171,719 $ 17.82 4.7 Yrs. $ 2,181 Intrinsic value represents the amount by which the market price of the stock on the measurement date exceeded the exercise price of the option. The stock price was $30.52 as of September 30 , 2017 and $22.09 as of December 31, 2016 , after adjusting for the 50% stock dividend declared on August 8, 2017. A summary of the Company’s restricted stock activity for the nine -month period s ended September 30 , 2017 and 2016 is as follows, after adjusting for the 50% stock dividend declared on August 8, 2017: 2017 2016 Weighted-Average Weighted-Average Number of Grant Date Number of Grant Date Restricted Stock Fair Value Restricted Stock Fair Value Non-vested, January 1, 28,035 $ 20.64 28,035 $ 19.21 Granted - - - - Vested - - - - Forfeited - - - - Non-vested, September 30, 28,035 $ 20.64 28,035 $ 19.21 The expected future compensation expense relating to the 28,035 shares of non-vested restricted stock outstanding as of September 30 , 2017 is $471,000 . This cost will be recognized over the remaining vesting period of 4.25 y ears. Compensation costs related to restricted stock amounted to $107,000 and $67,000 during the nine -month periods ended September 30 , 2017 and 2016, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 4. Accumulated Other Comprehensive Income (Loss) The following table presents the changes in accumulated other comprehensive income (loss) (in thousands) by component net of tax for the three months and nine months ended September 30 , 2017 and 2016: Unrealized gains (losses) on available for sale securities (a) Balance as of December 31, 2016 $ (4,119) Other comprehensive income before reclassification 2,960 Amount reclassified from accumulated other comprehensive loss (110) Total other comprehensive income 2,850 Balance as of September 30, 2017 $ (1,269) Unrealized gains (losses) on available for sale securities (a) Balance as of December 31, 2015 $ 488 Other comprehensive income before reclassification 2,096 Amount reclassified from accumulated other comprehensive income (178) Total other comprehensive income 1,918 Balance as of September 30, 2016 $ 2,406 Unrealized gains (losses) on available for sale securities (a) Balance as of June 30, 2017 $ (1,532) Other comprehensive income before reclassification 349 Amount reclassified from accumulated other comprehensive loss (86) Total other comprehensive income 263 Balance as of September 30, 2017 $ (1,269) Unrealized gains (losses) on available for sale securities (a) Balance as of June 30, 2016 $ 2,838 Other comprehensive loss before reclassification (432) Amount reclassified from accumulated other comprehensive income - Total other comprehensive loss (432) Balance as of September 30, 2016 $ 2,406 (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 three months and nine months ended September 30 , 2017 and 2016: Amount Reclassified From Accumulated Affected Line Item in Other Consolidated Comprehensive Statements Details about other comprehensive income Income (Loss) (a) of Income Three months ended September 30, 2017 2016 Unrealized gains on available for sale securities $ 129 $ - Net realized gains on sales of securities (43) - Income tax expense $ 86 $ - Nine months ended September 30, 2017 2016 Unrealized gains on available for sale securities $ 167 $ 269 Net realized gains on sales of securities (57) (91) Income tax expense $ 110 $ 178 (a) Amounts in parentheses indicate debits to net income |
Off-Balance Sheet Financial Ins
Off-Balance Sheet Financial Instruments and Guarantees | 9 Months Ended |
Sep. 30, 2017 | |
Off-Balance Sheet Financial Instruments and Guarantees [Abstract] | |
Off-Balance Sheet Financial Instruments and Guarantees | 5. Off-Balance Sheet Financial Instruments and Guarantees 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: (in thousands) September 30, 2017 2016 Commitments to grant loans $ 41,990 $ 21,764 Unfunded commitments under lines of credit 60,153 62,599 Standby letters of credit 5,919 5,642 $ 108,062 $ 90,005 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. The Bank does not issue any guarantees that would require liability recognition or disclosure, other than its standby letters of credit. Standby letters of credit written are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. Generally, all letters of credit, when issued, have expiration dates within one year. The credit risk involved in issuing letters of credit is essentially the same as those that are involved in extending loan facilities to customers. The Bank, generally, holds collateral and/or personal guarantees supporting these commitments. Management believes that the proceeds obtained through a liquidation of collateral and the enforcement of guarantees would be sufficient to cover the potential amount of future payments required under the corresponding guarantees. The current amount of the liability as of September 30 , 201 7 for guarantees under standby letters of credit issued is not material. |
Securities
Securities | 9 Months Ended |
Sep. 30, 2017 | |
Securities [Abstract] | |
Securities | 6. Securities The amortized cost, gross unrealized gains and losses, and fair value of securities available for sale were as follows: September 30, 2017 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In Thousands) Available for Sale: U.S. Treasury securities $ 2,002 $ - $ (6) $ 1,996 States and political subdivisions 119,173 1,548 (1,016) 119,705 Corporate obligations 10,115 39 (65) 10,089 Mortgage-backed securities- government sponsored entities 156,636 34 (2,990) 153,680 Total debt securities 287,926 1,621 (4,077) 285,470 Equity securities-financial services 185 51 - 236 $ 288,111 $ 1,672 $ (4,077) $ 285,706 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 The following tables show the Company’s investments’ gross unrealized losses and fair value aggregated by length of time that individual securities have been in a continuous unrealized loss position (in thousands): September 30, 2017 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 $ (6) $ 1,997 $ (6) States and political subdivisions 45,387 (483) 24,817 (533) 70,204 (1,016) Corporate obligations 3,697 (28) 3,222 (37) 6,919 (65) Mortgage-backed securities-government sponsored entities 101,143 (1,541) 50,504 (1,449) 151,647 (2,990) $ 150,227 $ (2,052) $ 80,540 $ (2,025) $ 230,767 $ (4,077) 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) At September 30 , 2017, the Company has 145 debt securities in an unrealized loss position in the less than twelve months category and 73 debt securities in the twelve months or more category. In Management’s opinion the unrealized losses reflect changes in interest rates subsequent to the acquisition of specific securities. No other-than-temporary-impairment charges were recorded in 2017. Management believes that all unrealized losses represent temporary impairment of the securities as the Company does not have the intent to sell the securities and it is more likely than not that it will not have to sell the securities before recovery of its cost basis. The amortized cost and fair value of debt securities as of September 30 , 2017 by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without call or prepayment penalties. Available for Sale Amortized Cost Fair Value (In Thousands) Due in one year or less $ 4,643 $ 4,663 Due after one year through five years 18,134 18,131 Due after five years through ten years 47,731 47,333 Due after ten years 60,783 61,663 Mortgage-backed securities-government sponsored agencies 156,636 153,680 $ 287,927 $ 285,470 Gross realized gains and gross realized losses on sales of securities available for sale were as follows (in thousands): Three Months Nine Months Ended September 30, Ended September 30, 2017 2016 2017 2016 Gross realized gains $ 129 $ - $ 173 $ 269 Gross realized losses - - (6) - Net realized gain $ 129 $ - $ 167 $ 269 Proceeds from sales of securities $ 11,192 $ 70,028 $ 13,027 $ 101,804 Securities with a carrying value of $205,678,000 and $217,907,000 at September 30 , 2017 and 2016, respectively, were pledged to secure public deposits, securities sold under agreements to repurchase and for other purposes as required or permitted by law. |
Loans Receivable and Allowance
Loans Receivable and Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2017 | |
Loans Receivable and Allowance for Loan Losses [Abstract] | |
Loans Receivable and Allowance for Loan Losses | 7. Loans Receivable and Allowance for Loan Losses Set forth below is selected data relating to the composition of the loan portfolio at the dates indicated (dollars in thousands) : September 30, 2017 December 31, 2016 Real Estate Loans: Residential $ 235,508 31.1 % $ 237,177 33.2 % Commercial 344,960 45.6 320,187 44.8 Construction 15,328 2.0 19,709 2.8 Commercial, financial and agricultural 92,979 12.3 85,508 12.0 Consumer loans to individuals 67,492 9.0 51,524 7.2 Total loans 756,267 100.0 % 714,105 100.0 % Deferred fees, net (253) (216) Total loans receivable 756,014 713,889 Allowance for loan losses (7,760) (6,463) Net loans receivable $ 748,254 $ 707,426 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 nine- month period ended September 30 (in thousands) : 2017 Balance at beginning of period $ 208 Additions - Accretion (56) Reclassification and other (15) Balance at end of period $ 137 The following table presents information regarding loans acquired and accounted for in accordance with ASC 310-30 (in thousands): September 30, 2017 December 31, 2016 Outstanding Balance $ 1,555 $ 1,821 Carrying Amount $ 1,256 $ 1,386 As a result of the acquisition of Delaware, the Company added $1,397,000 of loans that were accounted for in accordance with ASC 310-30. Based on a review of the loans acquired by senior lending management, which included an analysis of credit deterioration of the loans since origination, the Company recorded a specific credit fair value adjustment of $499,000 . For loans that were acquired with specific evidence of deterioration in credit quality, loan losses will be accounted for through a reduction of the specific reserve and will not impact the allowance for loan losses until actual losses exceed the allotted reserves. For loans acquired without a deterioration of credit quality, losses incurred will result in adjustments to the allowance for loan losses through the allowance for loan loss adequacy calculation. The Company maintains a loan review system, which allows for a periodic review of our loan portfolio and the early identification of potential impaired loans. Such 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. We do 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. 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 September 30 , 2017 and December 31, 2016, foreclosed real estate owned totaled $4,243,000 and $5,302,000 , respectively. During the nine months ended September 30 , 2017, there were no consumer residential mortgages that were foreclosed on or received via a deed in lieu transaction prior to the period end. As of September 30 , 2017, the Company has initiated formal foreclosure proceedings on eight properties classified as c onsumer residential mortgages with a carrying value of $494,000 . The following table shows the amount of loans in each category that were individually and collectively evaluated for impairment at the dates indicated: Real Estate Loans Commercial Consumer Residential Commercial Construction Loans Loans Total September 30, 2017 (In thousands) Individually evaluated for impairment $ 23 $ 1,382 $ - $ - $ - $ 1,405 Loans acquired with deteriorated credit quality 831 425 - - - 1,256 Collectively evaluated for impairment 234,654 343,153 15,328 92,979 67,492 753,606 Total Loans $ 235,508 $ 344,960 $ 15,328 $ 92,979 $ 67,492 $ 756,267 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 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 September 30, 2017 (in thousands) With no related allowance recorded: Real Estate Loans Residential $ 23 $ 28 $ - Commercial 1,382 2,263 - Subtotal 1,405 2,291 - Total: Real Estate Loans Residential 23 28 - Commercial 1,382 2,263 - Total Impaired Loans $ 1,405 $ 2,291 $ - 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 $ - The following table presents the average recorded investment in impaired loans and the related amount of interest income recognized during the three-month periods ended September 30, 2017 and 2016 (in thousands): Average Recorded Interest Income Investment Recognized 2017 2016 2017 2016 Real Estate Loans: Residential $ 23 $ 579 $ - $ 1 Commercial 1,423 3,253 12 33 Total $ 1,446 $ 3,832 $ 12 $ 34 The following table presents the average recorded investment in impaired loans and the related amount of interest income recognized during the nine-month periods ended September 30, 2017 and 2016 (in thousands): Average Recorded Interest Income Investment Recognized 2017 2016 2017 2016 Real Estate Loans: Residential $ 23 $ 372 $ - $ 3 Commercial 1,465 3,249 41 90 Total $ 1,488 $ 3,621 $ 41 $ 93 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 September 30 , 2017, troubled debt restructured loans totaled $1.3 million with no specific reser ve. As of December 31, 2016, troubled debt restructured loans totaled $1.5 million with no specific reserv e. For the nine month period ended September 30 , 2017, there were no new loans identified as troubled debt restructurings. During 2017, the Company recognized a write-down of $55,000 on one loan that was previously identified as a troubled debt restructuring with a carrying value of $175,000 as of September 30, 2017 . For the nine-month period ended September 30 , 2016, there were no new loans identified as troubled debt restructurings. During the 2016 period, the Company recognized w rite-down s of $2,519,000 on loan s previously identified as a troubled debt restructur ing. 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 Bank has a structured loan rating process with several layers of internal and external oversight. Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as non performance, repossession, or death occurs to raise awareness of a possible credit event. The Company’s Loan Review Department is responsible for the timely and accurate risk rating of the loans on an ongoing basis. Every credit which must be approved by Loan Committee or the Board of Directors is assigned a risk rating at time of consideration. Loan Review also annually reviews relationships of $1,500,000 and over to assign or re-affirm risk ratings. Loans in the Substandard categories that are collectively evaluated for impairment are given separate consideration in the determination of the allowance. The following table presents the classes of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard, Doubtful and Loss within the internal risk rating system as of September 30 , 2017 and December 31, 2016 (in thousands): Special Doubtful Pass Mention Substandard or Loss Total September 30, 2017 Commercial real estate loans $ 331,511 $ 9,542 $ 3,907 $ - $ 344,960 Commercial loans 92,879 20 80 - 92,979 Total $ 424,390 $ 9,562 $ 3,987 $ - $ 437,939 Special Doubtful Pass Mention Substandard or Loss Total December 31, 2016 Commercial real estate loans $ 310,432 $ 5,432 $ 4,323 $ - $ 320,187 Commercial loans 84,600 885 23 - 85,508 Total $ 395,032 $ 6,317 $ 4,346 $ - $ 405,695 For residential real estate loans, construction loans and consumer loans, the Company evaluates credit quality based on the performance of the individual credits. The following table presents the recorded investment in the loan classes based on payment activity as of September 30, 2017 and December 31, 2016 (in thousands): Performing Nonperforming Total September 30, 2017 Residential real estate loans $ 234,004 $ 1,504 $ 235,508 Construction 15,328 - 15,328 Consumer loans 67,492 - 67,492 Total $ 316,824 $ 1,504 $ 318,328 Performing Nonperforming Total December 31, 2016 Residential real estate loans $ 235,829 $ 1,137 $ 237,177 Construction 19,681 28 19,709 Consumer loans 51,524 - 51,524 Total $ 307,034 $ 1,165 $ 308,410 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 September 30 , 2017 and December 31, 2016 (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 September 30, 2017 Real Estate loans Residential $ 232,909 $ 909 $ 186 $ - $ 1,504 $ 2,599 $ 235,508 Commercial 343,754 703 - - 503 1,206 344,960 Construction 15,328 - - - - - 15,328 Commercial loans 92,897 40 42 - - 82 92,979 Consumer loans 67,457 29 6 - - 35 67,492 Total $ 752,345 $ 1,681 $ 234 $ - $ 2,007 $ 3,922 $ 756,267 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 Management reviews the loan portfolio on a quarterly basis using a defined, consistently applied process in order to make appropriate and timely adjustments to the allowance for loan losses. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the allowance. 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, 2016 $ 1,092 $ 4,623 $ 78 $ 307 $ 363 $ 6,463 Charge Offs (83) (308) (28) - (127) (546) Recoveries 4 5 12 - 22 43 Provision for loan losses 340 979 35 165 281 1,800 Ending balance, September 30, 2017 $ 1,353 $ 5,299 $ 97 $ 472 $ 539 $ 7,760 Ending balance individually evaluated for impairment $ - $ - $ - $ - $ - $ - Ending balance collectively evaluated for impairment $ 1,353 $ 5,299 $ 97 $ 472 $ 539 $ 7,760 (In thousands) Residential Real Estate Commercial Real Estate Construction Commercial Consumer Total Beginning balance, June 30, 2017 $ 1,254 $ 5,228 $ 93 $ 360 $ 484 $ 7,419 Charge Offs - (212) (15) - (45) (272) Recoveries 1 1 - - 11 13 Provision for loan losses 98 282 19 112 89 600 Ending balance, September 30, 2017 $ 1,353 $ 5,299 $ 97 $ 472 $ 539 $ 7,760 (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 (32) (2,670) - (15) (71) (2,788) Recoveries 4 11 - - 39 54 Provision for loan losses 15 1,516 (12) (46) 127 1,600 Ending balance, September 30, 2016 $ 1,056 $ 4,363 $ 78 $ 336 $ 331 $ 6,164 Ending balance individually evaluated for impairment $ - $ 15 $ - $ - $ - $ 15 Ending balance collectively evaluated for impairment $ 1,056 $ 4,348 $ 78 $ 336 $ 331 $ 6,149 (In thousands) Residential Real Estate Commercial Real Estate Construction Commercial Consumer Total Beginning balance, June 30, 2016 $ 976 $ 4,191 $ 59 $ 293 $ 279 $ 5,798 Charge Offs (15) (28) - (15) (41) (99) Recoveries 2 9 - - 4 15 Provision for loan losses 93 191 19 58 89 450 Ending balance, September 30, 2016 $ 1,056 $ 4,363 $ 78 $ 336 $ 331 $ 6,164 The Company’s primary business activity as of September 30 , 2017 was with customers located in northeastern Pennsylvania and the New York counties of Delaware and Sullivan. Accordingly, the Company has extended credit primarily to commercial entities and individuals in this area whose ability to honor their contracts is influenced by the region’s economy. As of September 30 , 2017, the Company considered its concentration of credit risk to be acceptable. The highest concentrations are in commercial rentals with $81.3 million of loans outstanding, or 10.8% of total loans outstanding, and the hospitality/lodging industry with loans outstanding of $53.8 million, or 7.1% of loans outstanding. During 2017, the Company recognize d a loss of $212,000 on one loan in the named concentrations which was paid off during the three month period ending September 30, 2017. The Company did no t sell any residential mortgage loans during the first nine months of 2017. Gross realized gains and gross realized losses on sales of residential mortgage loans were $54,000 and $0 , respectively, in the first nine months of 201 6. The proceeds from the sales of residential mortgage loans totaled $1.7 million for the nine months ended September 30 , 2016. During the nine months ended September 30, 2017, the Company sold $1.7 million of USDA guaranteed commercial real estate loans. The gross realized gain on the sale was $67,000 . The Company did no t sell any residential mortgage loans during the three months ended September 30, 2017 or 2016. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 8. Fair Value Measurements Fair value estimates are based on quoted market prices, if available, quoted market prices of similar assets or liabilities, or the present value of expected future cash flows and other valuation techniques. These valuations are significantly affected by discount rates, cash flow assumptions and risk assumptions used. Therefore, fair value estimates may not be substantiated by comparison to independent markets and are not intended to reflect the proceeds that may be realizable in an immediate settlement of the instruments. Fair value is determined at one point in time and is not representative of future value. These amounts do not reflect the total value of a going concern organization. Management does not have the intention to dispose of a significant portion of its assets and liabilities and therefore, the unrealized gains or losses should not be interpreted as a forecast of future earnings and cash flows. The following is a discussion of assets and liabilities measured at fair value and valuation techniques applied: Securities: The fair value of securities available for sale (carried at fair value) and held to maturity (carried at amortized cost) are determined by obtaining quoted market prices on nationally recognized securities exchanges (Level 1), or matrix pricing (Level 2), which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted prices. For certain securities which are not traded in active markets or are subject to transfer restrictions, valuations are adjusted to reflect illiquidity and/or non-transferability, and such adjustments are generally based on available market evidence (Level 3). In the absence of such evidence, management’s best estimate is used. Management’s best estimate consists of both internal and external support on certain Level 3 investments. Internal cash flow models using a present value formula that includes assumptions market participants would use along with indicative exit pricing obtained from broker/dealers (where available) are used to support fair values of certain Level 3 investments, if applicable. 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. 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. For financial assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at September 30 , 2017 and December 31, 2016 are as follows: Fair Value Measurement Using Reporting Date Description Total Level 1 Level 2 Level 3 (In thousands) September 30, 2017 Available for Sale: U.S. Treasury securities $ 1,996 $ - $ 1,996 $ - States and political subdivisions 119,705 - 119,705 - Corporate obligations 10,089 - 10,089 - Mortgage-backed securities-government sponsored agencies 153,680 - 153,680 - Equity securities-financial services 236 236 - - Total $ 285,706 $ 236 $ 285,470 $ - Description Total Level 1 Level 2 Level 3 (In thousands) 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 agencies 164,930 - 164,930 - Equity securities-financial services 424 424 - - Total $ 302,564 $ 424 $ 302,140 $ - For financial assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at September 30 , 2017 and December 31, 2016 are as follows: Fair Value Measurement Reporting Date using Reporting Date (In thousands) Description Total Level 1 Level 2 Level 3 September 30, 2017 Impaired Loans $ 1,405 $ - $ - $ 1,405 Foreclosed Real Estate Owned 4,243 - - 4,243 December 31, 2016 Impaired Loans $ 2,624 $ - $ - $ 2,624 Foreclosed Real Estate Owned 5,302 - - 5,302 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) September 30, 2017 Impaired loans $ 279 Appraisal of collateral(1) Appraisal adjustments(2) 10% ( 10% ) Impaired loans $ 1,126 Present value of future cash flows Loan discount rate 4.00 - 5.25% ( 5.11% ) Probability of default 0% Foreclosed real estate owned $ 4,243 Appraisal of collateral(1) Liquidation Expenses(2) 0% 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 4.00 - 5.25% ( 5.11% ) Probability of default 0% Foreclosed real estate owned $ 5,302 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 September 30 , 2017 and December 31, 2016. Cash and cash equivalents (carried at cost): The carrying amounts reported in the consolidated balance sheet for cash and short-term instruments approximate those assets’ fair values. Securities: The fair value of securities available for sale (carried at fair value) and held to maturity (carried at amortized cost) are determined by obtaining quoted market prices on nationally recognized securities exchanges (Level 1), or matrix pricing (Level 2), which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted prices. For certain securities which are not traded in active markets or are subject to transfer restrictions, valuations are adjusted to reflect illiquidity and/or non-transferability, and such adjustments are generally based on available market evidence (Level 3). In the absence of such evidence, management’s best estimate is used. Management’s best estimate consists of both internal and external support on certain Level 3 investments. Internal cash flow models using a present value formula that includes assumptions market participants would use along with indicative exit pricing obtained from broker/dealers (where available) are used to support fair values of certain Level 3 investments, if applicable. Loans receivable (carried at cost): The fair values of loans are estimated using discounted cash flow analyses, using market rates at the balance sheet date that reflect the credit and interest rate-risk inherent in the loans. Projected future cash flows are calculated based upon contractual maturity or call dates, projected repayments and prepayments of principal. Generally, for variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. Impaired loans (generally carried at fair value): The Company measures impairment generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third-party appraisals of the properties, or discounted cash flows based upon the lowest level of input that is significant to the fair value measurements. As of September 30 , 2017, the fair value investment in impaired loans totaled $1,405,000 which included six loan relationships that did not require a valuation allowance since either the estimated realizable value of the collateral or the discounted cash flows exceeded the recorded investment in the loan. As of September 30 , 2017, the Company has recognized charge-offs against the allowance for loan losses on these impaired loans in the amount of $886,000 over the life of the loans. As of December 31, 2016, the fair value investment in impaired loans totaled $2,624,000 which included seven loans that 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 had 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. Mortgage servicing rights (generally carried at cost) The Company utilizes a third party provider to estimate the fair value of certain loan servicing rights. Fair value for the purpose of this measurement is defined as the amount at which the asset could be exchanged in a current transaction between willing parties, other than in a forced liquidation. Foreclosed real estate owned (carried at fair value): Real estate properties acquired through, or in lieu of loan foreclosure are to be sold and are carried at fair value less estimated cost to sell. Fair value is based upon independent market prices, appraised value of the collateral or management’s estimation of the value of the collateral. These assets are included in Level 3 fair value based upon the lowest level of input that is significant to the fair value measurement. Regulatory stock (carried at cost): The Bank , as a member of the Federal Home Loan Bank (FHLB) system is required to maintain an investment in capital stock of its district FHLB according to a predetermined formula. This regulatory stock has no quoted market value and is carried at cost. Bank owned life insurance (carried at cost): The fair value is equal to the cash surrender value of the Bank owned life insurance. Accrued interest receivable and payable (carried at cost): The carrying amount of accrued interest receivable and accrued interest payable approximates its fair value. Deposit liabilities (carried at cost except certificates of deposit which are at fair value): The fair values disclosed for demand deposits (e.g., interest and noninterest checking, passbook savings and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered in the market on certificates to a schedule of aggregated expected monthly maturities on time deposits. Short-term borrowings (carried at cost): The carrying amounts of short-term borrowings approximate their fair values. Other borrowings (carried at cost): Fair values of FHLB advances are estimated using discounted cash flow analysis, based on quoted prices for new FHLB advances with similar credit risk characteristics, terms and remaining maturity. These prices obtained from this active market represent a market value that is deemed to represent the transfer price if the liability were assumed by a third party. Off-balance sheet financial instruments (disclosed at cost): Fair values for the Company’s off-balance sheet financial instruments (lending commitments and letters of credit) are based on fees currently charged in the market to enter into similar agreements, taking into account, the remaining terms of the agreements and the counterparties’ credit standing. The estimated fair values of the Bank’s financial instruments were as follows at September 30 , 2017 and December 31, 2016. (In thousands) Fair Value Measurements at September 30, 2017 Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 14,315 $ 14,315 $ 14,315 $ - $ - Securities 285,706 285,706 236 285,470 - Loans receivable, net 748,254 751,637 - - 751,637 Mortgage servicing rights 208 239 - - 239 Regulatory stock 3,115 3,115 3,115 - - Bank owned life insurance 36,839 36,839 36,839 - - Accrued interest receivable 3,729 3,729 3,729 - - Financial liabilities: Deposits 924,022 923,452 647,046 - 276,406 Short-term borrowings 47,229 47,229 47,229 - - Other borrowings 31,771 31,549 - - 31,549 Accrued interest payable 1,167 1,167 1,167 - - Off-balance sheet financial instruments: Commitments to extend credit and outstanding letters of credit - - - - - Fair Value Measurements at December 31, 2016 Carrying Amount Fair 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 - - - - - |
New and Recently Adopted Accoun
New and Recently Adopted Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2017 | |
New and Recently Adopted Accounting Pronouncements [Abstract] | |
New and Recently Adopted Accounting Pronouncements | 9. New and Recently Adopted Accounting Pronouncements 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. Because the guidance does not apply to revenue associated with financial instruments, including loans and securities, we do not expect the new standard, or any of the amendments, to result in a material change from our current accounting for revenue because the majority of the Company's financial instruments are not within the scope of Topic 606. However, we do expect that the standard will result in new disclosure requirements, which are currently being evaluated. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers ( Topic 606 ). The amendments in this Update defer the effective date of ASU 2014-09 for all entities by one year. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. All other entities should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019. The Company is evaluating the effect of adopting this new accounting Update. 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 the practical expedients it may elect at adoption, but does not anticipate the amendments will have a significant impact on 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 percent increase in assets and liabilities. The Company also anticipates additional disclosures to be provided at adoption. In March 2016, the FASB issued ASU 2016-04, Liabilities – Extinguishments of Liabilities (Subtopic 405-20). The standard provides that liabilities related to the sale of prepaid stored-value products within the scope of this Update are financial liabilities. The amendments in the Update provide a narrow-scope exception to the guidance in Subtopic 405-20 to require that breakage for those liabilities be accounted for consistent with the breakage guidance in Topic 606. The amendments in this Update are effective for public business entities, certain not-for-profit entities, and certain employee benefit plans for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. For all other entities, the amendments are effective for financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Earlier application is permitted, including adoption in an interim period. This Update is not expected to have a significant impact on the Company’s financial statements. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606). The amendments in this Update affect entities with transactions included within the scope of Topic 606, which includes entities that enter into contracts with customers to transfer goods or services (that are an output of the entity’s ordinary activities) in exchange for consideration. The amendments in this Update do not change the core principle of the guidance in Topic 606; they simply clarify the implementation guidance on principal versus agent considerations. The amendments in this Update are intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. The amendments in this Update affect the guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements of Update 2014-09. ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of Update 2014-09 by one year. 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 April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606). The amendments in this Update affect entities with transactions included within the scope of Topic 606, which includes entities that enter into contracts with customers to transfer goods or services in exchange for consideration. The amendments in this Update do not change the core principle for revenue recognition in Topic 606. Instead, the amendments provide (1) more detailed guidance in a few areas and (2) additional implementation guidance and examples based on feedback the FASB received from its stakeholders. The amendments are expected to reduce the degree of judgment necessary to comply with Topic 606, which the FASB expects will reduce the potential for diversity arising in practice and reduce the cost and complexity of applying the guidance. The amendments in this Update affect the guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements in Topic 606 (and any other Topic amended by Update 2014-09). ASU 2015-14, Revenue from Contracts with Customers (Topic 606) : Deferral of the Effective Date , defers the effective date of Update 2014-09 by one year. 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 May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606) , which among other things clarifies the objective of the collectability criterion in Topic 606, as well as certain narrow aspects of Topic 606. The amendments in this Update affect the guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements for Topic 606 (and any other Topic amended by Update 2014-09). ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , defers the effective date of Update 2014-09 by one year. This Update is not expected to have a significant impact on the Company’s financial statements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments , 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. We expect to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , 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) , 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 January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business , which provides a more robust framework to use in determining when a set of assets and activities (collectively referred to as a “set”) is a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated. Public business entities should apply the amendments in this Update to annual periods beginning after December 15, 2017, including interim periods within those periods. All other entities should apply the amendments to annual periods beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019. The amendments in this Update should be applied prospectively on or after the effective date. This Update is not expected to have a significant impact on the Company’s financial statements. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment . To simplify the subsequent measurement of goodwill, the FASB eliminated Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this Update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting units fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. A public business entity that is a U.S. Securities and Exchange Commission (“SEC”) filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. A public business entity that is not an SEC filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2020. All other entities, including not-for-profit entities, that are adopting the amendments in this Update should do so for their annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2021. This Update is not expected to have a significant impact on the Company’s financial statements. In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20). The amendments in this Update shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beg inning after December 15, 2018. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. 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 should apply the amendments in this Update on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Additionally, in the period of adoption, an entity should provide disclosures about a change in accounting principle. T he Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. In May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation (Topic 718) , which affects any entity that changes the terms or conditions of a share-based payment award. This Update amends the definition of modification by qualifying that modification accounting does not apply to changes to outstanding share-based payment awards that do not affect the total fair value, vesting requirements, or equity/liability classification of the awards. The amendments in this Update are effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period, for (1) public business entities for reporting periods for which financial statements have not yet been issued and (2) all other entities for reporting periods for which financial statements have not yet been made available for issuance. The amendments in this Update should be applied prospectively to an award modified on or after the adoption date. This Update is not expected to have a significant impact on the Company’s financial statements. In May 2017, the FASB issued ASU 2017-10, Service Concession Arrangements (Topic 853) , which applies to the accounting by operating entities for service concession arrangements within the scope of Topic 853. The amendments in this Update clarify that the grantor (government), rather than the third-party drivers, is the customer of the operation services in all cases for service concession arrangements within the scope of Topic 853. For an entity that has not adopted Topic 606 before the issuance of this Update, the effective date and transition requirements for the amendments in this Update generally are the same as the effective date and transition requirements for Topic 606 (and any other Topic amended by ASU 2014-09, Revenue from Contracts with Customers (Topic 606)) . ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , deferred the effective date of Update 2014-09 by one year. This Update is not expected to have a significant impact on the Company’s financial statements. In July 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), and Derivative and Hedging (Topic 815) . The amendments in Part I of this Update change the classification analysis of certain equity-linked financial instruments (or embedded features) with down-round features. When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down-round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own stock. The amendments also clarify existing disclosure requirements for equity-classified instruments. As a result, a freestanding equity-linked financial instrument (or embedded conversion option) no longer would be accounted for as a derivative liability at fair value as a result of the existence of a down-round feature. For freestanding equity classified financial instruments, the amendments require entities that present earnings per share (“EPS”) in accordance with Topic 260 to recognize the effect of the down-round feature when it is triggered. That effect is treated as a dividend and as a reduction of income available to common shareholders in basic EPS. Convertible instruments with embedded conversion options that have down- round features are now subject to the specialized guidance for contingent beneficial conversion features (in Subtopic 470-20, Debt—Debt with Conversion and Other Options ), including related EPS guidance (in Topic 260). The amendments in Part II of this Update recharacterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Accounting Standards Codification, to a scope exception. Those amendments do not have an accounting effect. For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For all other entities, the amendments in Part I of this Update are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted for all entities, 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 Part I of this Update should be applied either retrospectively to outstanding financial instruments with a down-round feature by means of a cumulative-effect adjustment to the statement of financial position as of the beginning of the first fiscal year and interim period(s) in which the pending content that links to this paragraph is effective or retrospectively to outstanding financial instruments with a down-round feature for each prior reporting period presented in accordance with the guidance on accounting changes in paragraphs 250-10-45-5 through 45-10. The amendments in Part II of this Update do not require any transition guidance because those amendments do not have an accounting effect. This Update is not expected to have a significant impact on the Company’s financial statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 850) , the objective of which is to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. In addition, the amendments in this Update make certain targeted improvements to simplify the application and disclosure of the hedge accounting guidance in current general accepted accounting principles. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods beginning after December 15, 2020. Early application is permitted in any period after issuance. For cash flow and net investment hedges existing at the date of adoption, an entity should apply a cumulative-effect adjustment related to eliminating the separate measurement of ineffectiveness to accumulated other comprehensive income with a corresponding adjustment to the opening balance of retained earnings as of the beginning of the fiscal year that an entity adopts the amendments in this Update. The amended presentation and disclosure guidance is required only prospectively. |
Acquisition of Delaware Bancsha
Acquisition of Delaware Bancshares, Inc. | 9 Months Ended |
Sep. 30, 2017 | |
Acquisition of Delaware Bancshares, Inc. [Abstract] | |
Acquisition of Delaware Bancshares, Inc. | 10 . 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 County (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. I n 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 on October 31, 2007 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. The Company redeemed the debt securities and the trust preferred securities in full on October 3, 2016. 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 each Norwood Financial Corp. common share $ 28.15 Purchase price assigned to Delaware Bancshares, Inc. common shares $ 12,150 exchanged for Norwood Financial Corp. shares 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 nine months ended September 30 , 2017. The carrying amount of the goodwill at September 30 , 2017 related to the Delaware acquisition was $1,616,000 . Identifiable intangibles are amortized to their estimated residual values over the expected useful lives. Such lives are also periodically reassessed to determine if any amortization period adjustments are required. During the nine months ended September 30 , 2017, 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 September 30 , 2017 was $449,000 with $94,000 accumulated amortization as of that date. As of September 30 , 2017, the estimated future amortization expense for the core deposit intangible is: (In thousands) 2017 $ 18 2018 70 2019 62 2020 54 2021 46 After five years 105 $ 355 |
Basis of Presentation (Policy)
Basis of Presentation (Policy) | 9 Months Ended |
Sep. 30, 2017 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited consolidated financial statements include the accounts of Norwood Financial Corp. (Company) and its wholly-owned subsidiary, Wayne Bank (Bank) and the Bank’s wholly-owned subsidiaries, WCB Realty Corp., Norwood Investment Corp., Norwood Settlement Services, LLC, and WTRO Properties, Inc. On June 13, 2017, the Company approved and adopted a Plan of Dissolution for Norwood Settlement Services, LLC. All activity prior to the dissolution is included in the consolidated financial statements. All significant intercompany transactions have been eliminated in consolidation. The accompanying unaudited consolidated financial statements have been prepared in conformity with generally accepted accounting principles for interim financial statements and with instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ from those estimates. The financial statements reflect, in the opinion of management, all normal, recurring adjustments necessary to present fairly the financial position and results of operations of the Company. The operating results for the three and nine month periods ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 or any other future interim period. |
Stock Dividend | Stock Dividend On August 8, 2017 , the Company declared a 50% stock dividend to stockholders of record on August 22, 2017 which was payable September 15, 2017 . Share and per share information has been adjusted for this dividend. |
Earnings Per Share (Policy)
Earnings Per Share (Policy) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Basic earnings per share represents income available to common stockholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect 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. |
Loans Receivable and Allowanc22
Loans Receivable and Allowance for Loan Losses (Policy) | 9 Months Ended |
Sep. 30, 2017 | |
Loans Receivable and Allowance for Loan Losses [Abstract] | |
Finance, Loans and Leases Receivable, Policy [Policy Text Block] | 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. Such 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. We do 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. |
New and Recently Adopted Acco23
New and Recently Adopted Accounting Pronouncements (Policy) | 9 Months Ended |
Sep. 30, 2017 | |
New and Recently Adopted Accounting Pronouncements [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | 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. Because the guidance does not apply to revenue associated with financial instruments, including loans and securities, we do not expect the new standard, or any of the amendments, to result in a material change from our current accounting for revenue because the majority of the Company's financial instruments are not within the scope of Topic 606. However, we do expect that the standard will result in new disclosure requirements, which are currently being evaluated. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers ( Topic 606 ). The amendments in this Update defer the effective date of ASU 2014-09 for all entities by one year. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. All other entities should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019. The Company is evaluating the effect of adopting this new accounting Update. 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 the practical expedients it may elect at adoption, but does not anticipate the amendments will have a significant impact on 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 percent increase in assets and liabilities. The Company also anticipates additional disclosures to be provided at adoption. In March 2016, the FASB issued ASU 2016-04, Liabilities – Extinguishments of Liabilities (Subtopic 405-20). The standard provides that liabilities related to the sale of prepaid stored-value products within the scope of this Update are financial liabilities. The amendments in the Update provide a narrow-scope exception to the guidance in Subtopic 405-20 to require that breakage for those liabilities be accounted for consistent with the breakage guidance in Topic 606. The amendments in this Update are effective for public business entities, certain not-for-profit entities, and certain employee benefit plans for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. For all other entities, the amendments are effective for financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Earlier application is permitted, including adoption in an interim period. This Update is not expected to have a significant impact on the Company’s financial statements. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606). The amendments in this Update affect entities with transactions included within the scope of Topic 606, which includes entities that enter into contracts with customers to transfer goods or services (that are an output of the entity’s ordinary activities) in exchange for consideration. The amendments in this Update do not change the core principle of the guidance in Topic 606; they simply clarify the implementation guidance on principal versus agent considerations. The amendments in this Update are intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. The amendments in this Update affect the guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements of Update 2014-09. ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of Update 2014-09 by one year. 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 April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606). The amendments in this Update affect entities with transactions included within the scope of Topic 606, which includes entities that enter into contracts with customers to transfer goods or services in exchange for consideration. The amendments in this Update do not change the core principle for revenue recognition in Topic 606. Instead, the amendments provide (1) more detailed guidance in a few areas and (2) additional implementation guidance and examples based on feedback the FASB received from its stakeholders. The amendments are expected to reduce the degree of judgment necessary to comply with Topic 606, which the FASB expects will reduce the potential for diversity arising in practice and reduce the cost and complexity of applying the guidance. The amendments in this Update affect the guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements in Topic 606 (and any other Topic amended by Update 2014-09). ASU 2015-14, Revenue from Contracts with Customers (Topic 606) : Deferral of the Effective Date , defers the effective date of Update 2014-09 by one year. 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 May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606) , which among other things clarifies the objective of the collectability criterion in Topic 606, as well as certain narrow aspects of Topic 606. The amendments in this Update affect the guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements for Topic 606 (and any other Topic amended by Update 2014-09). ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , defers the effective date of Update 2014-09 by one year. This Update is not expected to have a significant impact on the Company’s financial statements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments , 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. We expect to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , 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) , 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 January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business , which provides a more robust framework to use in determining when a set of assets and activities (collectively referred to as a “set”) is a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated. Public business entities should apply the amendments in this Update to annual periods beginning after December 15, 2017, including interim periods within those periods. All other entities should apply the amendments to annual periods beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019. The amendments in this Update should be applied prospectively on or after the effective date. This Update is not expected to have a significant impact on the Company’s financial statements. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment . To simplify the subsequent measurement of goodwill, the FASB eliminated Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this Update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting units fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. A public business entity that is a U.S. Securities and Exchange Commission (“SEC”) filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. A public business entity that is not an SEC filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2020. All other entities, including not-for-profit entities, that are adopting the amendments in this Update should do so for their annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2021. This Update is not expected to have a significant impact on the Company’s financial statements. In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20). The amendments in this Update shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beg inning after December 15, 2018. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. 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 should apply the amendments in this Update on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Additionally, in the period of adoption, an entity should provide disclosures about a change in accounting principle. T he Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. In May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation (Topic 718) , which affects any entity that changes the terms or conditions of a share-based payment award. This Update amends the definition of modification by qualifying that modification accounting does not apply to changes to outstanding share-based payment awards that do not affect the total fair value, vesting requirements, or equity/liability classification of the awards. The amendments in this Update are effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period, for (1) public business entities for reporting periods for which financial statements have not yet been issued and (2) all other entities for reporting periods for which financial statements have not yet been made available for issuance. The amendments in this Update should be applied prospectively to an award modified on or after the adoption date. This Update is not expected to have a significant impact on the Company’s financial statements. In May 2017, the FASB issued ASU 2017-10, Service Concession Arrangements (Topic 853) , which applies to the accounting by operating entities for service concession arrangements within the scope of Topic 853. The amendments in this Update clarify that the grantor (government), rather than the third-party drivers, is the customer of the operation services in all cases for service concession arrangements within the scope of Topic 853. For an entity that has not adopted Topic 606 before the issuance of this Update, the effective date and transition requirements for the amendments in this Update generally are the same as the effective date and transition requirements for Topic 606 (and any other Topic amended by ASU 2014-09, Revenue from Contracts with Customers (Topic 606)) . ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , deferred the effective date of Update 2014-09 by one year. This Update is not expected to have a significant impact on the Company’s financial statements. In July 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), and Derivative and Hedging (Topic 815) . The amendments in Part I of this Update change the classification analysis of certain equity-linked financial instruments (or embedded features) with down-round features. When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down-round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own stock. The amendments also clarify existing disclosure requirements for equity-classified instruments. As a result, a freestanding equity-linked financial instrument (or embedded conversion option) no longer would be accounted for as a derivative liability at fair value as a result of the existence of a down-round feature. For freestanding equity classified financial instruments, the amendments require entities that present earnings per share (“EPS”) in accordance with Topic 260 to recognize the effect of the down-round feature when it is triggered. That effect is treated as a dividend and as a reduction of income available to common shareholders in basic EPS. Convertible instruments with embedded conversion options that have down- round features are now subject to the specialized guidance for contingent beneficial conversion features (in Subtopic 470-20, Debt—Debt with Conversion and Other Options ), including related EPS guidance (in Topic 260). The amendments in Part II of this Update recharacterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Accounting Standards Codification, to a scope exception. Those amendments do not have an accounting effect. For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For all other entities, the amendments in Part I of this Update are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted for all entities, 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 Part I of this Update should be applied either retrospectively to outstanding financial instruments with a down-round feature by means of a cumulative-effect adjustment to the statement of financial position as of the beginning of the first fiscal year and interim period(s) in which the pending content that links to this paragraph is effective or retrospectively to outstanding financial instruments with a down-round feature for each prior reporting period presented in accordance with the guidance on accounting changes in paragraphs 250-10-45-5 through 45-10. The amendments in Part II of this Update do not require any transition guidance because those amendments do not have an accounting effect. This Update is not expected to have a significant impact on the Company’s financial statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 850) , the objective of which is to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. In addition, the amendments in this Update make certain targeted improvements to simplify the application and disclosure of the hedge accounting guidance in current general accepted accounting principles. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods beginning after December 15, 2020. Early application is permitted in any period after issuance. For cash flow and net investment hedges existing at the date of adoption, an entity should apply a cumulative-effect adjustment related to eliminating the separate measurement of ineffectiveness to accumulated other comprehensive income with a corresponding adjustment to the opening balance of retained earnings as of the beginning of the fiscal year that an entity adopts the amendments in this Update. The amended presentation and disclosure guidance is required only prospectively. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule Of Weighted Average Shares Outstanding Used In The Computations Of Basic And Diluted Earnings Per Share | (in thousands) Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Weighted average shares outstanding 6,239 5,967 6,239 5,685 Less: Unvested restricted shares (28) (21) (28) (21) Basic EPS weighted average shares outstanding 6,211 5,946 6,211 5,664 Basic EPS weighted average shares outstanding 6,211 5,946 6,211 5,664 Add: Dilutive effect of stock options 52 14 56 14 Diluted EPS weighted average shares outstanding 6,263 5,960 6,267 5,678 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Stock-Based Compensation [Abstract] | |
Summary of Stock Option Activity | Weighted Average Exercise Weighted Average Aggregate Price Remaining Intrinsic Value Options Per Share Contractual Term ($000) Outstanding at January 1, 2017 225,669 $ 19.46 5.6 Yrs. $ 932 Granted - - - - Exercised (28,950) 26.46 3.1 Yrs. - Forfeited (1,000) 28.55 8.2 Yrs. - Outstanding at September 30, 2017 195,719 $ 18.38 5.2 Yrs. $ 2,377 Exercisable at September 30, 2017 171,719 $ 17.82 4.7 Yrs. $ 2,181 |
Summary of Restricted Stock Activity | 2017 2016 Weighted-Average Weighted-Average Number of Grant Date Number of Grant Date Restricted Stock Fair Value Restricted Stock Fair Value Non-vested, January 1, 28,035 $ 20.64 28,035 $ 19.21 Granted - - - - Vested - - - - Forfeited - - - - Non-vested, September 30, 28,035 $ 20.64 28,035 $ 19.21 |
Accumulated Other Comprehensi26
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Summary Of Changes In Accumulated Other Comprehensive Income (Loss) | Unrealized gains (losses) on available for sale securities (a) Balance as of December 31, 2016 $ (4,119) Other comprehensive income before reclassification 2,960 Amount reclassified from accumulated other comprehensive loss (110) Total other comprehensive income 2,850 Balance as of September 30, 2017 $ (1,269) Unrealized gains (losses) on available for sale securities (a) Balance as of December 31, 2015 $ 488 Other comprehensive income before reclassification 2,096 Amount reclassified from accumulated other comprehensive income (178) Total other comprehensive income 1,918 Balance as of September 30, 2016 $ 2,406 Unrealized gains (losses) on available for sale securities (a) Balance as of June 30, 2017 $ (1,532) Other comprehensive income before reclassification 349 Amount reclassified from accumulated other comprehensive loss (86) Total other comprehensive income 263 Balance as of September 30, 2017 $ (1,269) Unrealized gains (losses) on available for sale securities (a) Balance as of June 30, 2016 $ 2,838 Other comprehensive loss before reclassification (432) Amount reclassified from accumulated other comprehensive income - Total other comprehensive loss (432) Balance as of September 30, 2016 $ 2,406 (a) All amounts are net of tax. Amounts in parentheses indicate debits. |
Significant Amounts Reclassified Out Of Each Component Of Accumulated Other Comprehensive Income (Loss) | Amount Reclassified From Accumulated Affected Line Item in Other Consolidated Comprehensive Statements Details about other comprehensive income Income (Loss) (a) of Income Three months ended September 30, 2017 2016 Unrealized gains on available for sale securities $ 129 $ - Net realized gains on sales of securities (43) - Income tax expense $ 86 $ - Nine months ended September 30, 2017 2016 Unrealized gains on available for sale securities $ 167 $ 269 Net realized gains on sales of securities (57) (91) Income tax expense $ 110 $ 178 (a) Amounts in parentheses indicate debits to net income |
Off-Balance Sheet Financial I27
Off-Balance Sheet Financial Instruments and Guarantees (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Off-Balance Sheet Financial Instruments and Guarantees [Abstract] | |
Schedule of Fair Value, Off-balance Sheet Risks [Table Text Block] | A summary of the Bank’s financial instrument commitments is as follows: (in thousands) September 30, 2017 2016 Commitments to grant loans $ 41,990 $ 21,764 Unfunded commitments under lines of credit 60,153 62,599 Standby letters of credit 5,919 5,642 $ 108,062 $ 90,005 |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Securities [Abstract] | |
Amortized Cost and Fair Values of Securities [Table Text Block] | September 30, 2017 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In Thousands) Available for Sale: U.S. Treasury securities $ 2,002 $ - $ (6) $ 1,996 States and political subdivisions 119,173 1,548 (1,016) 119,705 Corporate obligations 10,115 39 (65) 10,089 Mortgage-backed securities- government sponsored entities 156,636 34 (2,990) 153,680 Total debt securities 287,926 1,621 (4,077) 285,470 Equity securities-financial services 185 51 - 236 $ 288,111 $ 1,672 $ (4,077) $ 285,706 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 |
Investments' Gross Unrealized Losses and Fair Value [Table Text Block] | September 30, 2017 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 $ (6) $ 1,997 $ (6) States and political subdivisions 45,387 (483) 24,817 (533) 70,204 (1,016) Corporate obligations 3,697 (28) 3,222 (37) 6,919 (65) Mortgage-backed securities-government sponsored entities 101,143 (1,541) 50,504 (1,449) 151,647 (2,990) $ 150,227 $ (2,052) $ 80,540 $ (2,025) $ 230,767 $ (4,077) 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) |
Securities by Contractual Maturity [Table Text Block] | Available for Sale Amortized Cost Fair Value (In Thousands) Due in one year or less $ 4,643 $ 4,663 Due after one year through five years 18,134 18,131 Due after five years through ten years 47,731 47,333 Due after ten years 60,783 61,663 Mortgage-backed securities-government sponsored agencies 156,636 153,680 $ 287,927 $ 285,470 |
Gross Realized Gains and Losses on Sales of Securities Available-for-Sale [Table Text Block] | Three Months Nine Months Ended September 30, Ended September 30, 2017 2016 2017 2016 Gross realized gains $ 129 $ - $ 173 $ 269 Gross realized losses - - (6) - Net realized gain $ 129 $ - $ 167 $ 269 Proceeds from sales of securities $ 11,192 $ 70,028 $ 13,027 $ 101,804 |
Loans Receivable and Allowanc29
Loans Receivable and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Loans Receivable and Allowance for Loan Losses [Abstract] | |
Composition Of The Loan Portfolio | September 30, 2017 December 31, 2016 Real Estate Loans: Residential $ 235,508 31.1 % $ 237,177 33.2 % Commercial 344,960 45.6 320,187 44.8 Construction 15,328 2.0 19,709 2.8 Commercial, financial and agricultural 92,979 12.3 85,508 12.0 Consumer loans to individuals 67,492 9.0 51,524 7.2 Total loans 756,267 100.0 % 714,105 100.0 % Deferred fees, net (253) (216) Total loans receivable 756,014 713,889 Allowance for loan losses (7,760) (6,463) Net loans receivable $ 748,254 $ 707,426 |
Components Of Purchase Accounting Adjustments Related To 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 | 2017 Balance at beginning of period $ 208 Additions - Accretion (56) Reclassification and other (15) Balance at end of period $ 137 |
Information Regarding Loans Acquired and Accounted for in Accordance With ASC 310-30 | September 30, 2017 December 31, 2016 Outstanding Balance $ 1,555 $ 1,821 Carrying Amount $ 1,256 $ 1,386 |
Summary Of Amount Of Loans In Each Category That Were Individually And Collectively Evaluated For Impairment | Real Estate Loans Commercial Consumer Residential Commercial Construction Loans Loans Total September 30, 2017 (In thousands) Individually evaluated for impairment $ 23 $ 1,382 $ - $ - $ - $ 1,405 Loans acquired with deteriorated credit quality 831 425 - - - 1,256 Collectively evaluated for impairment 234,654 343,153 15,328 92,979 67,492 753,606 Total Loans $ 235,508 $ 344,960 $ 15,328 $ 92,979 $ 67,492 $ 756,267 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 |
Impaired Loans and Related Interest Income by Loan Portfolio Class | 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 September 30, 2017 (in thousands) With no related allowance recorded: Real Estate Loans Residential $ 23 $ 28 $ - Commercial 1,382 2,263 - Subtotal 1,405 2,291 - Total: Real Estate Loans Residential 23 28 - Commercial 1,382 2,263 - Total Impaired Loans $ 1,405 $ 2,291 $ - 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 $ - The following table presents the average recorded investment in impaired loans and the related amount of interest income recognized during the three-month periods ended September 30, 2017 and 2016 (in thousands): Average Recorded Interest Income Investment Recognized 2017 2016 2017 2016 Real Estate Loans: Residential $ 23 $ 579 $ - $ 1 Commercial 1,423 3,253 12 33 Total $ 1,446 $ 3,832 $ 12 $ 34 The following table presents the average recorded investment in impaired loans and the related amount of interest income recognized during the nine-month periods ended September 30, 2017 and 2016 (in thousands): Average Recorded Interest Income Investment Recognized 2017 2016 2017 2016 Real Estate Loans: Residential $ 23 $ 372 $ - $ 3 Commercial 1,465 3,249 41 90 Total $ 1,488 $ 3,621 $ 41 $ 93 |
Classes of the Loan Portfolio Summarized by the Aggregate Risk Rating | Special Doubtful Pass Mention Substandard or Loss Total September 30, 2017 Commercial real estate loans $ 331,511 $ 9,542 $ 3,907 $ - $ 344,960 Commercial loans 92,879 20 80 - 92,979 Total $ 424,390 $ 9,562 $ 3,987 $ - $ 437,939 Special Doubtful Pass Mention Substandard or Loss Total December 31, 2016 Commercial real estate loans $ 310,432 $ 5,432 $ 4,323 $ - $ 320,187 Commercial loans 84,600 885 23 - 85,508 Total $ 395,032 $ 6,317 $ 4,346 $ - $ 405,695 For residential real estate loans, construction loans and consumer loans, the Company evaluates credit quality based on the performance of the individual credits. The following table presents the recorded investment in the loan classes based on payment activity as of September 30, 2017 and December 31, 2016 (in thousands): Performing Nonperforming Total September 30, 2017 Residential real estate loans $ 234,004 $ 1,504 $ 235,508 Construction 15,328 - 15,328 Consumer loans 67,492 - 67,492 Total $ 316,824 $ 1,504 $ 318,328 Performing Nonperforming Total December 31, 2016 Residential real estate loans $ 235,829 $ 1,137 $ 237,177 Construction 19,681 28 19,709 Consumer loans 51,524 - 51,524 Total $ 307,034 $ 1,165 $ 308,410 |
Loan Portfolio Summarized by the Past Due Status | 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 September 30, 2017 Real Estate loans Residential $ 232,909 $ 909 $ 186 $ - $ 1,504 $ 2,599 $ 235,508 Commercial 343,754 703 - - 503 1,206 344,960 Construction 15,328 - - - - - 15,328 Commercial loans 92,897 40 42 - - 82 92,979 Consumer loans 67,457 29 6 - - 35 67,492 Total $ 752,345 $ 1,681 $ 234 $ - $ 2,007 $ 3,922 $ 756,267 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 |
Allowance for Loan Losses and Recorded Investment in Financing Receivables | Management reviews the loan portfolio on a quarterly basis using a defined, consistently applied process in order to make appropriate and timely adjustments to the allowance for loan losses. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the allowance. 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, 2016 $ 1,092 $ 4,623 $ 78 $ 307 $ 363 $ 6,463 Charge Offs (83) (308) (28) - (127) (546) Recoveries 4 5 12 - 22 43 Provision for loan losses 340 979 35 165 281 1,800 Ending balance, September 30, 2017 $ 1,353 $ 5,299 $ 97 $ 472 $ 539 $ 7,760 Ending balance individually evaluated for impairment $ - $ - $ - $ - $ - $ - Ending balance collectively evaluated for impairment $ 1,353 $ 5,299 $ 97 $ 472 $ 539 $ 7,760 (In thousands) Residential Real Estate Commercial Real Estate Construction Commercial Consumer Total Beginning balance, June 30, 2017 $ 1,254 $ 5,228 $ 93 $ 360 $ 484 $ 7,419 Charge Offs - (212) (15) - (45) (272) Recoveries 1 1 - - 11 13 Provision for loan losses 98 282 19 112 89 600 Ending balance, September 30, 2017 $ 1,353 $ 5,299 $ 97 $ 472 $ 539 $ 7,760 (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 (32) (2,670) - (15) (71) (2,788) Recoveries 4 11 - - 39 54 Provision for loan losses 15 1,516 (12) (46) 127 1,600 Ending balance, September 30, 2016 $ 1,056 $ 4,363 $ 78 $ 336 $ 331 $ 6,164 Ending balance individually evaluated for impairment $ - $ 15 $ - $ - $ - $ 15 Ending balance collectively evaluated for impairment $ 1,056 $ 4,348 $ 78 $ 336 $ 331 $ 6,149 (In thousands) Residential Real Estate Commercial Real Estate Construction Commercial Consumer Total Beginning balance, June 30, 2016 $ 976 $ 4,191 $ 59 $ 293 $ 279 $ 5,798 Charge Offs (15) (28) - (15) (41) (99) Recoveries 2 9 - - 4 15 Provision for loan losses 93 191 19 58 89 450 Ending balance, September 30, 2016 $ 1,056 $ 4,363 $ 78 $ 336 $ 331 $ 6,164 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Measurements [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | Fair Value Measurement Using Reporting Date Description Total Level 1 Level 2 Level 3 (In thousands) September 30, 2017 Available for Sale: U.S. Treasury securities $ 1,996 $ - $ 1,996 $ - States and political subdivisions 119,705 - 119,705 - Corporate obligations 10,089 - 10,089 - Mortgage-backed securities-government sponsored agencies 153,680 - 153,680 - Equity securities-financial services 236 236 - - Total $ 285,706 $ 236 $ 285,470 $ - Description Total Level 1 Level 2 Level 3 (In thousands) 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 agencies 164,930 - 164,930 - Equity securities-financial services 424 424 - - Total $ 302,564 $ 424 $ 302,140 $ - |
Fair Value, Assets Measured on Nonrecurring Basis [Table Text Block] | Fair Value Measurement Reporting Date using Reporting Date (In thousands) Description Total Level 1 Level 2 Level 3 September 30, 2017 Impaired Loans $ 1,405 $ - $ - $ 1,405 Foreclosed Real Estate Owned 4,243 - - 4,243 December 31, 2016 Impaired Loans $ 2,624 $ - $ - $ 2,624 Foreclosed Real Estate Owned 5,302 - - 5,302 |
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) September 30, 2017 Impaired loans $ 279 Appraisal of collateral(1) Appraisal adjustments(2) 10% ( 10% ) Impaired loans $ 1,126 Present value of future cash flows Loan discount rate 4.00 - 5.25% ( 5.11% ) Probability of default 0% Foreclosed real estate owned $ 4,243 Appraisal of collateral(1) Liquidation Expenses(2) 0% 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 4.00 - 5.25% ( 5.11% ) Probability of default 0% Foreclosed real estate owned $ 5,302 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 September 30, 2017 Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 14,315 $ 14,315 $ 14,315 $ - $ - Securities 285,706 285,706 236 285,470 - Loans receivable, net 748,254 751,637 - - 751,637 Mortgage servicing rights 208 239 - - 239 Regulatory stock 3,115 3,115 3,115 - - Bank owned life insurance 36,839 36,839 36,839 - - Accrued interest receivable 3,729 3,729 3,729 - - Financial liabilities: Deposits 924,022 923,452 647,046 - 276,406 Short-term borrowings 47,229 47,229 47,229 - - Other borrowings 31,771 31,549 - - 31,549 Accrued interest payable 1,167 1,167 1,167 - - Off-balance sheet financial instruments: Commitments to extend credit and outstanding letters of credit - - - - - Fair Value Measurements at December 31, 2016 Carrying Amount Fair 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 - - - - - |
Acquisition of Delaware Bancs31
Acquisition of Delaware Bancshares, Inc. (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Acquisition of Delaware Bancshares, Inc. [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [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 each Norwood Financial Corp. common share $ 28.15 Purchase price assigned to Delaware Bancshares, Inc. common shares $ 12,150 exchanged for Norwood Financial Corp. shares 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 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | 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] | (In thousands) 2017 $ 18 2018 70 2019 62 2020 54 2021 46 After five years 105 $ 355 |
Basis of Presentation (Details)
Basis of Presentation (Details) | 9 Months Ended |
Sep. 30, 2017 | |
Basis of Presentation [Abstract] | |
Dividends Payable, Date Declared | Aug. 8, 2017 |
Common Stock, Dividend Rate, Percentage | 50.00% |
Dividends Payable, Date of Record | Aug. 22, 2017 |
Dividends Payable, Date to be Paid | Sep. 15, 2017 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - $ / shares | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||
Common Stock, Dividend Rate, Percentage | 50.00% | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 16,500 | |
Share price | $ 30.52 | $ 19.38 | $ 22.09 |
Earnings Per Share (Schedule Of
Earnings Per Share (Schedule Of Weighted Average Shares Outstanding Used In The Computations Of Basic And Diluted Earnings Per Share) (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Weighted average shares outstanding | 6,239 | 5,967 | 6,239 | 5,685 |
Less: Unvested restricted shares | (28) | (21) | (28) | (21) |
Basic EPS weighted average shares outstanding | 6,211 | 5,946 | 6,211 | 5,664 |
Basic EPS weighted average shares outstanding | 6,211 | 5,946 | 6,211 | 5,664 |
Add: Dilutive effect of stock options | 52 | 14 | 56 | 14 |
Diluted EPS weighted average shares outstanding | 6,263 | 5,960 | 6,267 | 5,678 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options, Granted | 0 | |||
Compensation expense related to stock options | $ 69 | $ 53 | ||
Share price | $ 30.52 | $ 19.38 | $ 22.09 | |
Non-vested stock outstanding | 28,035 | 28,035 | 28,035 | 28,035 |
Future compensation expense of non-vested restricted stock outstanding | $ 471 | |||
Non-vested restricted stock recognition period | 4 years 3 months | |||
Compensation expense related to restricted stock | $ 107 | $ 67 | ||
Common Stock, Dividend Rate, Percentage | 50.00% | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost | $ 107 | $ 67 | ||
Norwood Financial Corp 2014 Equity Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost related to non-vested options granted | $ 23 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Stock-Based Compensation [Abstract] | ||
Options, Outstanding, beginning of period | 225,669 | |
Options, Granted | 0 | |
Options, Exercised | (28,950) | |
Options, Forfeited | (1,000) | |
Options, Outstanding, end of period | 195,719 | 225,669 |
Options, Exercisable, end of period | 171,719 | |
Weighted Average Exercise Price Per Share, Outstanding, beginning of period | $ 19.46 | |
Weighted Average Exercise Price Per Share, Granted | ||
Weighted Average Exercise Price Per Share, Exercised | 26.46 | |
Weighted Average Exercise Price Per Share, Forfeited | 28.55 | |
Weighted Average Exercise Price Per Share, Outstanding, end of period | 18.38 | $ 19.46 |
Weighted Average Exercise Price Per Share, Exercisable, end of period | $ 17.82 | |
Weighted Average Remaining Contractual Term, Outstanding | 5 years 2 months 12 days | 5 years 7 months 6 days |
Weighted Average Remaining Contractual Term, Exercised During Period | 3 years 1 month 6 days | |
Weighted Average Remaining Contractual Term, Forfeited During Period | 8 years 2 months 12 days | |
Weighted Average Remaining Contractual Term, Exercisable at End of Period | 4 years 8 months 12 days | |
Aggregate Intrinsic Value, Outstanding, beginning of period | $ 932 | |
Aggregate Intrinsic Value, Granted in Period | 0 | |
Aggregate Intrinsic Value, Exercised in Period | 0 | |
Aggregate Intrinsic Value, Forfeited in Period | 0 | |
Aggregate Intrinsic Value, Outstanding, end of period | 2,377 | $ 932 |
Aggregate Intrinsic Value, Exercisable at end of period | $ 2,181 |
Stock-Based Compensation (Sum37
Stock-Based Compensation (Summary of Restricted Stock Activity) (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Stock-Based Compensation [Abstract] | ||
Restricted stock Non-vested, beginning balance | 28,035 | 28,035 |
Restricted stock, granted | 0 | |
Restricted stock, vested | 0 | |
Restricted stock, forfeited | 0 | |
Restricted stock Non-vested, ending balance | 28,035 | 28,035 |
Restricted stock Non-vested, weighted-average grant date fair value, beginning balance | $ 20.64 | $ 19.21 |
Restricted stock, granted, weighted-average grant date fair value | ||
Restricted stock, vested, weighted-average grant date fair value | ||
Restricted stock, forfeited, weighted-average grant date fair value | ||
Restricted stock Non-vested, weighted-average grant date fair value, ending balance | $ 20.64 | $ 19.21 |
Accumulated Other Comprehensi38
Accumulated Other Comprehensive Income (Loss) (Summary Of Changes In Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Accumulated Other Comprehensive Income (Loss) [Abstract] | |||||
Beginning balance | [1] | $ (1,532) | $ 2,838 | $ (4,119) | $ 488 |
Other comprehensive income (loss) before reclassification | [1] | 349 | (432) | 2,960 | 2,096 |
Amount reclassified from accumulated other comprehensive income (loss) | [1] | (86) | (110) | (178) | |
Other comprehensive income (loss) | [1] | 263 | (432) | 2,850 | 1,918 |
Ending balance | [1] | $ (1,269) | $ 2,406 | $ (1,269) | $ 2,406 |
[1] | All amounts are net of tax. Amounts in parentheses indicate debits. |
Accumulated Other Comprehensi39
Accumulated Other Comprehensive Income (Loss) (Significant Amounts Reclassified Out Of Each Component Of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Net realized gains on sales of securities | $ 129 | $ 167 | $ 269 | ||
Income tax expense | (948) | $ (228) | (2,356) | (1,307) | |
NET INCOME | 2,941 | $ 612 | 8,041 | 4,365 | |
Amount Reclassified From Accumulated Other Comprehensive Income (Loss) [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Income tax expense | [1] | (43) | (57) | (91) | |
NET INCOME | [1] | 86 | 110 | 178 | |
Amount Reclassified From Accumulated Other Comprehensive Income (Loss) [Member] | Unrealized gains (losses) on available for sale securities [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Net realized gains on sales of securities | [1] | $ 129 | $ 167 | $ 269 | |
[1] | Amounts in parentheses indicate debits to net income |
Off-Balance Sheet Financial I40
Off-Balance Sheet Financial Instruments and Guarantees (Schedule of Fair Value, Off-balance Sheet Risks) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Loss Contingencies [Line Items] | ||
Financial instrument commitments | $ 108,062 | $ 90,005 |
Commitments to grant loans [Member] | ||
Loss Contingencies [Line Items] | ||
Financial instrument commitments | 41,990 | 21,764 |
Unfunded commitments under lines of credit [Member] | ||
Loss Contingencies [Line Items] | ||
Financial instrument commitments | 60,153 | 62,599 |
Standby letters of credit [Member] | ||
Loss Contingencies [Line Items] | ||
Financial instrument commitments | $ 5,919 | $ 5,642 |
Securities (Amortized Cost and
Securities (Amortized Cost and Fair Values of Securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Schedule of Investments [Line Items] | |||
Available for Sale, Amortized Cost | $ 288,111 | $ 309,289 | |
Available-for-sale Securities, Gross Unrealized Gains | 1,672 | 1,051 | |
Available for Sale, Gross Unrealized Losses | (4,077) | (7,776) | |
Available for Sale, Fair Value | 285,706 | 302,564 | |
Pledged Financial Instruments, Not Separately Reported, Securities | 205,678 | $ 217,907 | |
Total Debt Securities [Member] | |||
Schedule of Investments [Line Items] | |||
Available for Sale, Amortized Cost | 287,926 | 308,969 | |
Available-for-sale Securities, Gross Unrealized Gains | 1,621 | 947 | |
Available for Sale, Gross Unrealized Losses | (4,077) | (7,776) | |
Available for Sale, Fair Value | 285,470 | 302,140 | |
US Treasury Securities [Member] | |||
Schedule of Investments [Line Items] | |||
Available for Sale, Amortized Cost | 2,002 | 2,005 | |
Available-for-sale Securities, Gross Unrealized Gains | 0 | ||
Available for Sale, Gross Unrealized Losses | (6) | (8) | |
Available for Sale, Fair Value | 1,996 | 1,997 | |
States and political subdivisions [Member] | |||
Schedule of Investments [Line Items] | |||
Available for Sale, Amortized Cost | 119,173 | 127,585 | |
Available-for-sale Securities, Gross Unrealized Gains | 1,548 | 884 | |
Available for Sale, Gross Unrealized Losses | (1,016) | (3,368) | |
Available for Sale, Fair Value | 119,705 | 125,101 | |
Corporate obligations [Member] | |||
Schedule of Investments [Line Items] | |||
Available for Sale, Amortized Cost | 10,115 | 10,255 | |
Available-for-sale Securities, Gross Unrealized Gains | 39 | 37 | |
Available for Sale, Gross Unrealized Losses | (65) | (180) | |
Available for Sale, Fair Value | 10,089 | 10,112 | |
Mortgage-backed securities-government sponsored entities [Member] | |||
Schedule of Investments [Line Items] | |||
Available for Sale, Amortized Cost | 156,636 | 169,124 | |
Available-for-sale Securities, Gross Unrealized Gains | 34 | 26 | |
Available for Sale, Gross Unrealized Losses | (2,990) | (4,220) | |
Available for Sale, Fair Value | 153,680 | 164,930 | |
Equity securities-financial services [Member] | |||
Schedule of Investments [Line Items] | |||
Available for Sale, Amortized Cost | 185 | 320 | |
Available-for-sale Securities, Gross Unrealized Gains | 51 | 104 | |
Available for Sale, Gross Unrealized Losses | 0 | 0 | |
Available for Sale, Fair Value | $ 236 | $ 424 |
Securities (Investments' Gross
Securities (Investments' Gross Unrealized Losses and Fair Value) (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017USD ($)security | Dec. 31, 2016USD ($) | |
Schedule of Investments [Line Items] | ||
Less than 12 Months, Fair Value | $ 150,227 | $ 251,615 |
Less than 12 Months, Unrealized Losses | (2,052) | (7,462) |
12 Months or More, Fair Value | 80,540 | 10,172 |
12 Months or More, Unrealized Losses | (2,025) | (314) |
Total, Fair Value | 230,767 | 261,787 |
Total, Unrealized Losses | $ (4,077) | (7,776) |
Debt securities in unrealized loss position in the less than twelve months category | security | 145 | |
Debt securities in unrealized loss position in the twelve months or more category | security | 73 | |
Impairment of investments | $ 0 | |
US Treasury Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Less than 12 Months, Fair Value | 0 | 1,997 |
Less than 12 Months, Unrealized Losses | 0 | (8) |
12 Months or More, Fair Value | 1,997 | |
12 Months or More, Unrealized Losses | (6) | |
Total, Fair Value | 1,997 | 1,997 |
Total, Unrealized Losses | (6) | (8) |
States and political subdivisions [Member] | ||
Schedule of Investments [Line Items] | ||
Less than 12 Months, Fair Value | 45,387 | 90,109 |
Less than 12 Months, Unrealized Losses | (483) | (3,362) |
12 Months or More, Fair Value | 24,817 | 205 |
12 Months or More, Unrealized Losses | (533) | (6) |
Total, Fair Value | 70,204 | 90,314 |
Total, Unrealized Losses | (1,016) | (3,368) |
Corporate obligations [Member] | ||
Schedule of Investments [Line Items] | ||
Less than 12 Months, Fair Value | 3,697 | 6,895 |
Less than 12 Months, Unrealized Losses | (28) | (180) |
12 Months or More, Fair Value | 3,222 | 0 |
12 Months or More, Unrealized Losses | (37) | 0 |
Total, Fair Value | 6,919 | 6,895 |
Total, Unrealized Losses | (65) | (180) |
Mortgage-backed securities-government sponsored entities [Member] | ||
Schedule of Investments [Line Items] | ||
Less than 12 Months, Fair Value | 101,143 | 152,614 |
Less than 12 Months, Unrealized Losses | (1,541) | (3,912) |
12 Months or More, Fair Value | 50,504 | 9,967 |
12 Months or More, Unrealized Losses | (1,449) | (308) |
Total, Fair Value | 151,647 | 162,581 |
Total, Unrealized Losses | $ (2,990) | $ (4,220) |
Securities (Securities by Contr
Securities (Securities by Contractual Maturity) (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Securities [Abstract] | |
Available for Sale, Amortized Cost, Due in one year or less | $ 4,643 |
Available for Sale, Amortized Cost, Due after one year through five years | 18,134 |
Available for Sale, Amortized Cost, Due after five years through ten years | 47,731 |
Available for Sale, Amortized Cost, Due after ten years | 60,783 |
Available for Sale, Amortized Cost, Mortgage-backed securities- government sponsored agencies | 156,636 |
Available for Sale, Amortized Cost, Total | 287,927 |
Available for Sale, Fair Value, Due in one year or less | 4,663 |
Available for Sale, Fair Value, Due after one year through five years | 18,131 |
Available for Sale, Fair Value, Due after five years through ten years | 47,333 |
Available for Sale, Fair Value, Due after ten years | 61,663 |
Available for Sale, Fair Value, Mortgage-backed securities- government sponsored agencies | 153,680 |
Available for Sale, Fair Value, Total | $ 285,470 |
Securities (Gross Realized Gain
Securities (Gross Realized Gains and Losses on Sales of Securities Available-for-Sale) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Securities [Abstract] | ||||
Gross realized gains | $ 129 | $ 173 | $ 269 | |
Gross realized losses | (6) | |||
Net realized gain | 129 | 167 | 269 | |
Proceeds from sale of securities | $ 11,192 | $ 70,028 | $ 13,027 | $ 101,804 |
Loans Receivable and Allowanc45
Loans Receivable and Allowance for Loan Losses (Narrative) (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)loanproperty | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Acquired Loans with Specific Evidence of Deterioration in Credit Quality, Outstanding Balance | $ 1,555,000 | $ 1,555,000 | $ 1,821,000 | ||
Real Estate Acquired Through Foreclosure | 4,243,000 | 4,243,000 | 5,302,000 | ||
Impaired Financing Receivable, Related Allowance | 0 | $ 0 | 0 | ||
New Loans Identified as Troubled Debt Restructurings, Number of Loans | loan | 0 | ||||
Loans and Leases Receivable, Gross | 756,267,000 | $ 756,267,000 | 714,105,000 | ||
Write downs | 272,000 | $ 99,000 | 546,000 | $ 2,788,000 | |
Proceeds from Sale of Mortgage Loans Held-for-sale | 1,760,000 | 1,739,000 | |||
Commercial Rentals [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and Leases Receivable, Gross | 81,300,000 | $ 81,300,000 | |||
Commercial Rentals [Member] | Loans Receivable [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Concentration Risk, Percentage | 10.80% | ||||
Hospitality Lodging Industry [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and Leases Receivable, Gross | 53,800,000 | $ 53,800,000 | |||
Hospitality Lodging Industry [Member] | Loans Receivable [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Concentration Risk, Percentage | 7.10% | ||||
Troubled Debt Restructured Loans [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 1,300,000 | $ 1,300,000 | 1,500,000 | ||
Impaired Financing Receivable, Related Allowance | 0 | $ 0 | 0 | ||
New Loans Identified as Troubled Debt Restructurings, Number of Loans | loan | 0 | ||||
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down | $ 55,000 | 2,519,000 | |||
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | loan | 1 | ||||
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | $ 175,000 | ||||
Residential Real Estate Loans [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Real Estate Acquired Through Foreclosure | 0 | $ 0 | |||
Number Of Properties Under Foreclosure Proceedings | property | 8 | ||||
Mortgage Loans in Process of Foreclosure, Amount | 494,000 | $ 494,000 | |||
Impaired Financing Receivable, Related Allowance | 0 | 0 | 0 | ||
Loans and Leases Receivable, Gross | 235,508,000 | 235,508,000 | 237,177,000 | ||
Write downs | 15,000 | 83,000 | 32,000 | ||
Proceeds from Sale of Mortgage Loans Held-for-sale | 0 | 0 | 0 | 1,700,000 | |
Gross Realized Gains on Loans | 54,000 | ||||
Gross Realized Losses on Loans | 0 | ||||
Commercial Real Estate Loans [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Impaired Financing Receivable, Related Allowance | 0 | 0 | 0 | ||
Loans and Leases Receivable, Gross | 344,960,000 | 344,960,000 | $ 320,187,000 | ||
Write downs | 212,000 | $ 28,000 | 308,000 | $ 2,670,000 | |
Proceeds from Sale of Mortgage Loans Held-for-sale | 1,700,000 | ||||
Gross Realized Gains on Loans | 67,000 | ||||
Delaware Bancshares, Inc. Acquisition [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Acquired Loans with Specific Evidence of Deterioration in Credit Quality, Outstanding Balance | $ 1,397,000 | 1,397,000 | |||
Assets, Fair Value Adjustment | 499,000 | ||||
Minimum [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Annual Loan Review threshold, amount | $ 1,500,000 |
Loans Receivable and Allowanc46
Loans Receivable and Allowance for Loan Losses (Composition Of The Loan Portfolio) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans and Leases Receivable, Gross | $ 756,267 | $ 714,105 | ||||
Deferred fees, net | (253) | (216) | ||||
Total loans receivable | 756,014 | 713,889 | ||||
Allowance for loan losses | (7,760) | $ (7,419) | (6,463) | $ (6,164) | $ (5,798) | $ (7,298) |
Net loans receivable | $ 748,254 | $ 707,426 | ||||
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 | $ 235,508 | $ 237,177 | ||||
Allowance for loan losses | $ (1,353) | (1,254) | $ (1,092) | (1,056) | (976) | (1,069) |
Percent of Loans | 31.10% | 33.20% | ||||
Commercial Real Estate Loans [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans and Leases Receivable, Gross | $ 344,960 | $ 320,187 | ||||
Allowance for loan losses | $ (5,299) | (5,228) | $ (4,623) | (4,363) | (4,191) | (5,506) |
Percent of Loans | 45.60% | 44.80% | ||||
Construction Real Estate Loans [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans and Leases Receivable, Gross | $ 15,328 | $ 19,709 | ||||
Allowance for loan losses | $ (97) | (93) | $ (78) | (78) | (59) | (90) |
Percent of Loans | 2.00% | 2.80% | ||||
Commercial, Financial And Agricultural [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans and Leases Receivable, Gross | $ 92,979 | $ 85,508 | ||||
Allowance for loan losses | $ (472) | (360) | $ (307) | (336) | (293) | (397) |
Percent of Loans | 12.30% | 12.00% | ||||
Consumer Loans To Individuals [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans and Leases Receivable, Gross | $ 67,492 | $ 51,524 | ||||
Allowance for loan losses | $ (539) | $ (484) | $ (363) | $ (331) | $ (279) | $ (236) |
Percent of Loans | 9.00% | 7.20% |
Loans Receivable and Allowanc47
Loans Receivable and Allowance for Loan Losses (Components Of Purchase Accounting Adjustments Related To Purchased Credit-impaired Loans Acquired) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Jul. 31, 2016 |
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 | $ 1,256 | $ 1,386 | $ 1,368 |
Loans Receivable and Allowanc48
Loans Receivable and Allowance for Loan Losses (Changes In The Accretable Yield For Purchased Credit-impaired Loans) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Loans Receivable and Allowance for Loan Losses [Abstract] | |
Balance at beginning of period | $ 208 |
Additions | 0 |
Accretion | (56) |
Reclassification and other | (15) |
Balance at end of period | $ 137 |
Loans Receivable and Allowanc49
Loans Receivable and Allowance for Loan Losses (Information Regarding Loans Acquired and Accounted for in Accordance With ASC 310-30) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Jul. 31, 2016 |
Loans Receivable and Allowance for Loan Losses [Abstract] | |||
Acquired Loans with Specific Evidence of Deterioration in Credit Quality, Outstanding Balance | $ 1,555 | $ 1,821 | |
Acquired Loans with Specific Evidence of Deterioration in Credit Quality, Carrying Amount | $ 1,256 | $ 1,386 | $ 1,368 |
Loans Receivable and Allowanc50
Loans Receivable and Allowance for Loan Losses (Summary Of Amount Of Loans In Each Category That Were Individually And Collectively Evaluated For Impairment) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Jul. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Individually evaluated for impairment | $ 1,405 | $ 2,624 | |
Loans acquired with deteriorated credit quality | 1,256 | 1,386 | $ 1,368 |
Collectively evaluated for impairment | 753,606 | 710,095 | |
Total Loans | 756,267 | 714,105 | |
Residential Real Estate Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Individually evaluated for impairment | 23 | 23 | |
Loans acquired with deteriorated credit quality | 831 | 821 | |
Collectively evaluated for impairment | 234,654 | 236,333 | |
Total Loans | 235,508 | 237,177 | |
Commercial Real Estate Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Individually evaluated for impairment | 1,382 | 2,601 | |
Loans acquired with deteriorated credit quality | 425 | 565 | |
Collectively evaluated for impairment | 343,153 | 317,021 | |
Total Loans | 344,960 | 320,187 | |
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 | 15,328 | 19,709 | |
Total Loans | 15,328 | 19,709 | |
Commercial, Financial And Agricultural [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 | 92,979 | 85,508 | |
Total Loans | 92,979 | 85,508 | |
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 | 67,492 | 51,524 | |
Total Loans | $ 67,492 | $ 51,524 |
Loans Receivable and Allowanc51
Loans Receivable and Allowance for Loan Losses (Impaired Loans and Related Interest Income by Loan Portfolio Class) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Financing Receivable, Impaired [Line Items] | |||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | $ 1,405 | $ 1,405 | $ 2,624 | ||
Impaired Financing Receivable, Recorded Investment | 1,405 | 1,405 | 2,624 | ||
Unpaid Principal Balance, With no related allowance recorded | 2,291 | 2,291 | 3,455 | ||
Unpaid Principal Balance, Total | 2,291 | 2,291 | 3,455 | ||
Associated Allowance | 0 | 0 | 0 | ||
Average Recorded Investment, Total | 1,446 | $ 3,832 | 1,488 | $ 3,621 | |
Interest Income Recognized, Total | 12 | 34 | 41 | 93 | |
Residential Real Estate Loans [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 23 | 23 | 23 | ||
Impaired Financing Receivable, Recorded Investment | 23 | 23 | 23 | ||
Unpaid Principal Balance, With no related allowance recorded | 28 | 28 | 28 | ||
Unpaid Principal Balance, Total | 28 | 28 | 28 | ||
Associated Allowance | 0 | 0 | 0 | ||
Average Recorded Investment, Total | 23 | 579 | 23 | 372 | |
Interest Income Recognized, Total | 0 | 1 | 3 | ||
Commercial Real Estate Loans [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 1,382 | 1,382 | 2,601 | ||
Impaired Financing Receivable, Recorded Investment | 1,382 | 1,382 | 2,601 | ||
Unpaid Principal Balance, With no related allowance recorded | 2,263 | 2,263 | 3,427 | ||
Unpaid Principal Balance, Total | 2,263 | 2,263 | 3,427 | ||
Associated Allowance | 0 | 0 | $ 0 | ||
Average Recorded Investment, Total | 1,423 | 3,253 | 1,465 | 3,249 | |
Interest Income Recognized, Total | $ 12 | $ 33 | $ 41 | $ 90 |
Loans Receivable and Allowanc52
Loans Receivable and Allowance for Loan Losses (Classes of the Loan Portfolio Summarized by the Aggregate Risk Rating) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Total Summarized by Aggregate Risk Rating [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | $ 437,939 | $ 405,695 |
Pass [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 424,390 | 395,032 |
Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 9,562 | 6,317 |
Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 3,987 | 4,346 |
Doubtful or 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 | 318,328 | 308,410 |
Performing Financial Instruments [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 316,824 | 307,034 |
Nonperforming Financial Instruments [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 1,504 | 1,165 |
Commercial Real Estate Loans [Member] | Total Summarized by Aggregate Risk Rating [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 344,960 | 320,187 |
Commercial Real Estate Loans [Member] | Pass [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 331,511 | 310,432 |
Commercial Real Estate Loans [Member] | Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 9,542 | 5,432 |
Commercial Real Estate Loans [Member] | Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 3,907 | 4,323 |
Commercial Real Estate Loans [Member] | Doubtful or Loss [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 0 | 0 |
Commercial, Financial And Agricultural [Member] | Total Summarized by Aggregate Risk Rating [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 92,979 | 85,508 |
Commercial, Financial And Agricultural [Member] | Pass [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 92,879 | 84,600 |
Commercial, Financial And Agricultural [Member] | Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 20 | 885 |
Commercial, Financial And Agricultural [Member] | Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 80 | 23 |
Commercial, Financial And Agricultural [Member] | Doubtful or 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 | 235,508 | 237,177 |
Residential Real Estate Loans [Member] | Performing Financial Instruments [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 234,004 | 235,829 |
Residential Real Estate Loans [Member] | Nonperforming Financial Instruments [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 1,504 | 1,137 |
Construction Real Estate Loans [Member] | Total Summarized by Performance of Individual Credits [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 15,328 | 19,709 |
Construction Real Estate Loans [Member] | Performing Financial Instruments [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 15,328 | 19,681 |
Construction Real Estate Loans [Member] | Nonperforming Financial Instruments [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 0 | 28 |
Consumer Loans To Individuals [Member] | Total Summarized by Performance of Individual Credits [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 67,492 | 51,524 |
Consumer Loans To Individuals [Member] | Performing Financial Instruments [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 67,492 | 51,524 |
Consumer Loans To Individuals [Member] | Nonperforming Financial Instruments [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | $ 0 | $ 0 |
Loans Receivable and Allowanc53
Loans Receivable and Allowance for Loan Losses (Loan Portfolio Summarized by the Past Due Status) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 752,345 | $ 710,261 |
Non-Accrual | 2,007 | 1,926 |
Total Past Due and Non-Accrual | 3,922 | 3,844 |
Total Loans | 756,267 | 714,105 |
Financing Receivables, 31 to 60 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,681 | 1,613 |
Financing Receivables, 61 to 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 234 | 304 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 1 |
Residential Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 232,909 | 234,790 |
Non-Accrual | 1,504 | 1,136 |
Total Past Due and Non-Accrual | 2,599 | 2,387 |
Total Loans | 235,508 | 237,177 |
Residential Real Estate Loans [Member] | Financing Receivables, 31 to 60 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 909 | 986 |
Residential Real Estate Loans [Member] | Financing Receivables, 61 to 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 186 | 264 |
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 | 0 | 1 |
Commercial Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 343,754 | 318,979 |
Non-Accrual | 503 | 762 |
Total Past Due and Non-Accrual | 1,206 | 1,208 |
Total Loans | 344,960 | 320,187 |
Commercial Real Estate Loans [Member] | Financing Receivables, 31 to 60 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 703 | 445 |
Commercial Real Estate Loans [Member] | Financing Receivables, 61 to 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 1 |
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 | 15,328 | 19,681 |
Non-Accrual | 0 | 28 |
Total Past Due and Non-Accrual | 0 | 28 |
Total Loans | 15,328 | 19,709 |
Construction Real Estate Loans [Member] | Financing Receivables, 31 to 60 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
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 [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 92,897 | 85,355 |
Non-Accrual | 0 | 0 |
Total Past Due and Non-Accrual | 82 | 153 |
Total Loans | 92,979 | 85,508 |
Commercial, Financial And Agricultural [Member] | Financing Receivables, 31 to 60 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 40 | 143 |
Commercial, Financial And Agricultural [Member] | Financing Receivables, 61 to 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 42 | 10 |
Commercial, Financial And Agricultural [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 | 67,457 | 51,456 |
Non-Accrual | 0 | 0 |
Total Past Due and Non-Accrual | 35 | 68 |
Total Loans | 67,492 | 51,524 |
Consumer Loans To Individuals [Member] | Financing Receivables, 31 to 60 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 29 | 39 |
Consumer Loans To Individuals [Member] | Financing Receivables, 61 to 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 6 | 29 |
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 Allowanc54
Loans Receivable and Allowance for Loan Losses (Allowance for Loan Losses and Recorded Investment in Financing Receivables) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance at beginning of period | $ 7,419 | $ 5,798 | $ 6,463 | $ 7,298 |
Charge Offs | (272) | (99) | (546) | (2,788) |
Recoveries | 13 | 15 | 43 | 54 |
Provision for loan losses | 600 | 450 | 1,800 | 1,600 |
Allowance at end of period | 7,760 | 6,164 | 7,760 | 6,164 |
Ending balance individually evaluated for impairment | 15 | 15 | ||
Ending balance collectively evaluated for impairment | 7,760 | 6,149 | 7,760 | 6,149 |
Residential Real Estate Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance at beginning of period | 1,254 | 976 | 1,092 | 1,069 |
Charge Offs | (15) | (83) | (32) | |
Recoveries | 1 | 2 | 4 | 4 |
Provision for loan losses | 98 | 93 | 340 | 15 |
Allowance at end of period | 1,353 | 1,056 | 1,353 | 1,056 |
Ending balance collectively evaluated for impairment | 1,353 | 1,056 | 1,353 | 1,056 |
Commercial Real Estate Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance at beginning of period | 5,228 | 4,191 | 4,623 | 5,506 |
Charge Offs | (212) | (28) | (308) | (2,670) |
Recoveries | 1 | 9 | 5 | 11 |
Provision for loan losses | 282 | 191 | 979 | 1,516 |
Allowance at end of period | 5,299 | 4,363 | 5,299 | 4,363 |
Ending balance individually evaluated for impairment | 15 | 15 | ||
Ending balance collectively evaluated for impairment | 5,299 | 4,348 | 5,299 | 4,348 |
Construction Real Estate Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance at beginning of period | 93 | 59 | 78 | 90 |
Charge Offs | (15) | (28) | ||
Recoveries | 12 | |||
Provision for loan losses | 19 | 19 | 35 | (12) |
Allowance at end of period | 97 | 78 | 97 | 78 |
Ending balance collectively evaluated for impairment | 97 | 78 | 97 | 78 |
Commercial, Financial And Agricultural [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance at beginning of period | 360 | 293 | 307 | 397 |
Charge Offs | (15) | (15) | ||
Provision for loan losses | 112 | 58 | 165 | (46) |
Allowance at end of period | 472 | 336 | 472 | 336 |
Ending balance collectively evaluated for impairment | 472 | 336 | 472 | 336 |
Consumer Loans To Individuals [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance at beginning of period | 484 | 279 | 363 | 236 |
Charge Offs | (45) | (41) | (127) | (71) |
Recoveries | 11 | 4 | 22 | 39 |
Provision for loan losses | 89 | 89 | 281 | 127 |
Allowance at end of period | 539 | 331 | 539 | 331 |
Ending balance collectively evaluated for impairment | $ 539 | $ 331 | $ 539 | $ 331 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value, Assets Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ 285,706 | $ 302,564 |
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 | 236 | 424 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 285,470 | 302,140 |
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 |
US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,996 | 1,997 |
US Treasury Securities [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 |
US Treasury Securities [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 | 1,996 | 1,997 |
US Treasury Securities [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 | 119,705 | 125,101 |
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 | 119,705 | 125,101 |
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 | 10,089 | 10,112 |
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 | 10,089 | 10,112 |
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 | 153,680 | 164,930 |
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 | 153,680 | 164,930 |
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 | 236 | 424 |
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 | 236 | 424 |
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 Value Measurements (Fair56
Fair Value Measurements (Fair Value, Assets and Liabilities Measured on Nonrecurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Impaired Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 1,405 | $ 2,624 |
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 | 1,405 | 2,624 |
Foreclosed Real Estate Owned [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 4,243 | 5,302 |
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 | $ 4,243 | $ 5,302 |
Fair Value Measurements (Additi
Fair Value Measurements (Additional Qualitative Information about Level 3 Assets) (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2017USD ($)loan | Dec. 31, 2016USD ($)loan | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of impaired loans requiring a valuation allowance | loan | 6 | ||
Impaired Financing Receivable, Recorded Investment | $ 1,405 | $ 2,624 | |
Impaired Financing Receivable, Related Allowance | 0 | $ 0 | |
Number of impaired loans not requiring a valuation allowance | loan | 7 | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 1,405 | $ 2,624 | |
Impaired Loans, Cumulative Charge-Offs | 886 | 831 | |
Impaired Loans [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | $ 1,405 | $ 2,624 | |
Fair Value Inputs, Discount Rate | 0.00% | ||
Fair Value Inputs, Probability of Default | 0.00% | ||
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 | $ 279 | $ 1,473 | |
Fair Value Measurements, Valuation Techniques | [1] | Appraisal of collateral | |
Fair Value Disclosure, Unobservable Input Range | [2] | Appraisal adjustments | |
Fair Value Inputs, Discount Rate | 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 | $ 1,126 | $ 1,151 | |
Fair Value Measurements, Valuation Techniques | Present value of future cash flows | ||
Fair Value Disclosure, Unobservable Input Range | 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% | 5.25% | |
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, Discount Rate | 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% | 5.11% | |
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 | $ 4,243 | $ 5,302 | |
Fair Value Measurements, Valuation Techniques | [1] | Appraisal of collateral | |
Fair Value Disclosure, Unobservable Input Range | [2] | Liquidation Expenses | |
Fair Value Inputs, Discount Rate | 0.00% | 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 Value Measurements (Fair58
Fair Value Measurements (Fair Value, by Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial assets: Cash and cash equivalents, Fair Value Disclosure | $ 14,315 | $ 17,174 | ||
Financial assets: Securities, Fair Value Disclosure | 285,706 | 302,564 | ||
Financial assets: Loans receivable, net, Fair Value Disclosure | 751,637 | 716,661 | ||
Financial assets: Mortgage servicing rights, Fair Value Disclosure | 239 | 250 | ||
Financial assets: Regulatory stock, Fair Value Disclosure | 3,115 | 2,119 | ||
Financial assets: Bank owned life insurance, Fair Value Disclosure | 36,839 | 36,133 | ||
Financial assets: Accrued interest receivable, Fair Value Disclosure | 3,729 | 3,643 | ||
Financial liabilities: Deposits, Fair Value Disclosure | 923,452 | 925,561 | ||
Financial liabilities: Short-term borrowings, Fair Value Disclosure | 47,229 | 32,811 | ||
Financial liabilities: Other borrowings, Fair Value Disclosure | 31,549 | 31,863 | ||
Financial liabilities: Accrued interest payable, Fair Value Disclosure | 1,167 | 1,069 | ||
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 | 14,315 | 17,174 | $ 33,133 | $ 10,010 |
Financial assets: Securities | 285,706 | 302,564 | ||
Financial assets: Loans receivable, net | 748,254 | 707,426 | ||
Financial assets: Mortgage servicing rights | 208 | 232 | ||
Financial assets: Regulatory stock | 3,115 | 2,119 | ||
Financial assets: Bank owned life insurance | 36,839 | 36,133 | ||
Financial assets: Accrued interest receivable | 3,729 | 3,643 | ||
Financial liabilities: Deposits | 924,022 | 925,385 | ||
Financial liabilities: Short-term borrowings | 47,229 | 32,811 | ||
Financial liabilities: Other borrowings | 31,771 | 32,001 | ||
Financial liabilities: Accrued interest payable | 1,167 | 1,069 | ||
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 | 14,315 | 17,174 | ||
Financial assets: Securities, Fair Value Disclosure | 236 | 424 | ||
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 | 3,115 | 2,119 | ||
Financial assets: Bank owned life insurance, Fair Value Disclosure | 36,839 | 36,133 | ||
Financial assets: Accrued interest receivable, Fair Value Disclosure | 3,729 | 3,643 | ||
Financial liabilities: Deposits, Fair Value Disclosure | 647,046 | 629,829 | ||
Financial liabilities: Short-term borrowings, Fair Value Disclosure | 47,229 | 32,811 | ||
Financial liabilities: Other borrowings, Fair Value Disclosure | 0 | 0 | ||
Financial liabilities: Accrued interest payable, Fair Value Disclosure | 1,167 | 1,069 | ||
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 | 285,470 | 302,140 | ||
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 | 751,637 | 716,661 | ||
Financial assets: Mortgage servicing rights, Fair Value Disclosure | 239 | 250 | ||
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 | 276,406 | 295,732 | ||
Financial liabilities: Short-term borrowings, Fair Value Disclosure | 0 | 0 | ||
Financial liabilities: Other borrowings, Fair Value Disclosure | 31,549 | 31,863 | ||
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 |
Acquisition of Delaware Bancs59
Acquisition of Delaware Bancshares, Inc. (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 31, 2016 | Oct. 31, 2007 | Sep. 30, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Business Acquisition, Share Price | $ 16.68 | |||
Business Acquisition, shares exchanged | 431,605,000 | |||
Common Stock, Par or Stated Value Per Share | $ 0.10 | $ 0.10 | ||
Loans and Leases Receivable, Net Reported Amount | $ 748,254 | $ 707,426 | ||
Loans Receivable, Fair Value Disclosure | 751,637 | 716,661 | ||
Goodwill | $ 1,616 | 11,331 | $ 11,331 | |
Finite-Lived Intangible Assets, Gross | 449 | |||
Finite-Lived Intangible Assets, Accumulated Amortization | 94 | |||
Delaware Bancshares, Inc. Acquisition [Member] | ||||
Business Acquisition [Line Items] | ||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 3,860 | |||
Business Acquisition, Share Price | $ 16.68 | |||
Business Acquisition, shares exchanged | 0.6221 | |||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 431,605 | |||
Credit impaired loans acquired subject to a non-accretable difference | $ 1,410 | |||
Non-accretable difference for credit impaired loans acquired | $ 260 | |||
Loans and Leases Receivable, Net Reported Amount | 111,307 | |||
Loans Receivable, Fair Value Disclosure | 109,693 | |||
Goodwill | 1,616 | |||
Goodwill, Impairment Loss | $ 0 | |||
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 Bancs60
Acquisition of Delaware Bancshares, Inc. (Schedule of Business Acquisitions, by Acquisition) (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 31, 2016 | Sep. 30, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||
Acquiree shares settled for stock | 694,114,000 | ||
Exchange Ratio | 0.6221% | ||
Business Acquisition, shares exchanged | 431,605,000 | ||
Value assigned to acquirer common share, per share | $ 28.15 | ||
Purchase price assigned to Delaware Bancshares, Inc. common shares exchanged for Norwood Financial Corp. | $ 12,150 | ||
Acquiree shares settled for cash | 231,385,000 | ||
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 | $ 117,692 | $ 111,079 |
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 | 11,331 | $ 11,331 |
Delaware Bancshares, Inc. Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Business Acquisition, shares exchanged | 0.6221 | ||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 431,605 | ||
Business Acquisition, Share Price | $ 16.68 | ||
Goodwill resulting from Delaware Bancshares, Inc. Merger | $ 1,616 |
Acquisition of Delaware Bancs61
Acquisition of Delaware Bancshares, Inc. (Future Amortization Expense) (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Acquisition of Delaware Bancshares, Inc. [Abstract] | |
2,017 | $ 18 |
2,018 | 70 |
2,019 | 62 |
2,020 | 54 |
2,021 | 46 |
After five years | 105 |
Amortization Expense for the Core Deposit Intangible, Total | $ 355 |