Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Aug. 01, 2020 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Transition Report | false | |
Entity File Number | 0-28364 | |
Entity Registrant Name | Norwood Financial Corp | |
Entity Incorporation, State or Country Code | PA | |
Entity Tax Identification Number | 23-2828306 | |
Entity Address, Address Line One | 717 Main Street | |
Entity Address, City or Town | Honesdale | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 18431 | |
City Area Code | 570 | |
Local Phone Number | 253-1455 | |
Title of 12(b) Security | Common Stock, par value $0.10 per share | |
Trading Symbol | NWFL | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 8,194,528 | |
Entity Central Index Key | 0001013272 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q2 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and due from banks | $ 15,387 | $ 15,038 |
Interest-bearing deposits with banks | 67,989 | 377 |
Cash and cash equivalents | 83,376 | 15,415 |
Securities available for sale, at fair value | 196,735 | 210,205 |
Loans receivable | 988,679 | 924,581 |
Less: Allowance for loan losses | 10,312 | 8,509 |
Net loans receivable | 978,367 | 916,072 |
Regulatory stock, at cost | 3,677 | 4,844 |
Bank premises and equipment, net | 14,040 | 14,228 |
Bank owned life insurance | 39,183 | 38,763 |
Accrued interest receivable | 4,383 | 3,719 |
Foreclosed real estate owned | 965 | 1,556 |
Goodwill | 11,331 | 11,331 |
Other intangibles | 191 | 235 |
Other assets | 22,293 | 14,242 |
TOTAL ASSETS | 1,354,541 | 1,230,610 |
LIABILITIES | ||
Deposits: Non-interest bearing demand | 284,754 | 207,299 |
Deposits: Interest-bearing | 801,484 | 750,230 |
Total deposits | 1,086,238 | 957,529 |
Short-term borrowings | 55,204 | 62,256 |
Other borrowings | 50,823 | 56,438 |
Accrued interest payable | 2,826 | 2,432 |
Other liabilities | 16,786 | 14,527 |
TOTAL LIABILITIES | 1,211,877 | 1,093,182 |
STOCKHOLDERS' EQUITY | ||
Preferred stock, no par value per share, authorized: 5,000,000 shares; issued: none | ||
Common stock, $0.10 par value per share, authorized: 20,000,000 shares, issued: 2020: 6,342,568 shares, 2019: 6,340,563 shares | 634 | 634 |
Surplus | 49,778 | 49,471 |
Retained earnings | 87,939 | 86,536 |
Treasury stock at cost: 2020: 13,778 shares; 2019: 12,007 shares | (469) | (400) |
Accumulated other comprehensive income | 4,782 | 1,187 |
TOTAL STOCKHOLDERS’ EQUITY | 142,664 | 137,428 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 1,354,541 | $ 1,230,610 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
Consolidated Balance Sheets [Abstract] | ||
Preferred Stock, No Par Value | ||
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Common Stock, Par Value Per Share | $ 0.10 | $ 0.10 |
Common Stock, Shares Authorized | 20,000,000 | 20,000,000 |
Common Stock, Shares, Issued | 6,342,568 | 6,340,563 |
Treasury Stock, Shares | 13,778 | 12,007 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
INTEREST INCOME | ||||
Loans receivable, including fees | $ 10,767 | $ 10,328 | $ 21,450 | $ 20,298 |
Securities | 1,063 | 1,435 | 2,242 | 2,876 |
Other | 19 | 51 | 25 | 66 |
Total interest income | 11,849 | 11,814 | 23,717 | 23,240 |
INTEREST EXPENSE | ||||
Deposits | 1,630 | 1,839 | 3,420 | 3,568 |
Short-term borrowings | 73 | 85 | 184 | 209 |
Other borrowings | 279 | 278 | 581 | 581 |
Total interest expense | 1,982 | 2,202 | 4,185 | 4,358 |
NET INTEREST INCOME | 9,867 | 9,612 | 19,532 | 18,882 |
PROVISION FOR LOAN LOSSES | 1,300 | 300 | 2,000 | 750 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 8,567 | 9,312 | 17,532 | 18,132 |
OTHER INCOME | ||||
Other Income | 1,120 | 1,279 | 2,452 | 2,580 |
Net realized gains on sales of securities | 64 | 38 | 64 | |
Gain on sale of loans, net | 65 | 67 | 121 | 110 |
Earnings and proceeds on bank owned life insurance | 212 | 207 | 420 | 408 |
Other | 103 | 106 | 239 | 249 |
Total other income | 1,392 | 1,641 | 3,047 | 3,201 |
OTHER EXPENSES | ||||
Salaries and employee benefits | 3,289 | 3,599 | 7,065 | 7,248 |
Occupancy, furniture & equipment, net | 906 | 940 | 1,875 | 1,864 |
Data processing and related operations | 466 | 472 | 903 | 920 |
Taxes, other than income | 214 | 179 | 427 | 340 |
Professional fees | 225 | 226 | 443 | 476 |
Federal Deposit Insurance Corporation insurance | 42 | 84 | 42 | 155 |
Foreclosed real estate | (2) | (10) | 14 | 13 |
Amortization of intangibles | 21 | 27 | 44 | 56 |
Merger related | 1,597 | 1,597 | ||
Other | 1,334 | 1,268 | 2,742 | 2,361 |
Total Other Expenses | 8,092 | 6,785 | 15,152 | 13,433 |
INCOME BEFORE INCOME TAXES | 1,867 | 4,168 | 5,427 | 7,900 |
INCOME TAX EXPENSE | 379 | 646 | 860 | 1,188 |
NET INCOME | $ 1,488 | $ 3,522 | $ 4,567 | $ 6,712 |
BASIC EARNINGS PER SHARE | $ 0.24 | $ 0.56 | $ 0.73 | $ 1.07 |
DILUTED EARNINGS PER SHARE | $ 0.24 | $ 0.56 | $ 0.73 | $ 1.06 |
Service Charges And Fees [Member] | ||||
OTHER INCOME | ||||
Other Income | $ 837 | $ 1,052 | $ 1,901 | $ 2,083 |
Income From Fiduciary Activities [Member] | ||||
OTHER INCOME | ||||
Other Income | $ 175 | $ 145 | $ 328 | $ 287 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Consolidated Statements of Comprehensive Income [Abstract] | ||||
Net income | $ 1,488 | $ 3,522 | $ 4,567 | $ 6,712 |
Investment securities available for sale: | ||||
Unrealized holding gain (loss) | 640 | 3,250 | 4,590 | 6,975 |
Tax effect | (135) | (682) | (965) | (1,464) |
Reclassification of investment securities gains recognized in net income | (64) | (38) | (64) | |
Tax effect | 13 | 8 | 13 | |
Other comprehensive income (loss) | 505 | 2,517 | 3,595 | 5,460 |
Comprehensive Income | $ 1,993 | $ 6,039 | $ 8,162 | $ 12,172 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders’ Equity - USD ($) $ in Thousands | Common Stock [Member] | Surplus [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Beginning balance at Dec. 31, 2018 | $ 630 | $ 48,322 | $ 78,434 | $ (81) | $ (5,020) | $ 122,285 |
Beginning balance, shares at Dec. 31, 2018 | 6,295,113 | 2,470 | ||||
Net income | 6,712 | 6,712 | ||||
Other comprehensive income (loss) | 5,460 | 5,460 | ||||
Cash dividends declared | (3,019) | (3,019) | ||||
Acquisition of treasury stock | $ (374) | (374) | ||||
Acquisition of treasury stock, shares | 11,337 | |||||
Compensation expense related to restricted stock | 145 | 145 | ||||
Stock options exercised | 170 | 170 | ||||
Stock options exercised, shares | 9,300 | |||||
Compensation expense related to stock options | 104 | 104 | ||||
Ending balance, shares at Jun. 30, 2019 | 6,304,413 | 13,807 | ||||
Ending balance at Jun. 30, 2019 | $ 630 | 48,741 | 82,127 | $ (455) | 440 | 131,483 |
Beginning balance at Mar. 31, 2019 | $ 630 | 48,559 | 80,115 | $ (455) | (2,077) | 126,772 |
Beginning balance, shares at Mar. 31, 2019 | 6,301,263 | 13,807 | ||||
Net income | 3,522 | 3,522 | ||||
Other comprehensive income (loss) | 2,517 | 2,517 | ||||
Cash dividends declared | (1,510) | (1,510) | ||||
Compensation expense related to restricted stock | 73 | 73 | ||||
Stock options exercised | 57 | 57 | ||||
Stock options exercised, shares | 3,150 | |||||
Compensation expense related to stock options | 52 | 52 | ||||
Ending balance, shares at Jun. 30, 2019 | 6,304,413 | 13,807 | ||||
Ending balance at Jun. 30, 2019 | $ 630 | 48,741 | 82,127 | $ (455) | 440 | 131,483 |
Beginning balance at Dec. 31, 2019 | $ 634 | 49,471 | 86,536 | $ (400) | 1,187 | 137,428 |
Beginning balance, shares at Dec. 31, 2019 | 6,340,563 | 12,007 | ||||
Net income | 4,567 | 4,567 | ||||
Other comprehensive income (loss) | 3,595 | 3,595 | ||||
Cash dividends declared | (3,164) | (3,164) | ||||
Acquisition of treasury stock | $ (69) | (69) | ||||
Acquisition of treasury stock, shares | 1,771 | |||||
Compensation expense related to restricted stock | 167 | 167 | ||||
Stock options exercised | 38 | $ 38 | ||||
Stock options exercised, shares | 2,005 | 2,005 | ||||
Compensation expense related to stock options | 102 | $ 102 | ||||
Ending balance, shares at Jun. 30, 2020 | 6,342,568 | 13,778 | ||||
Ending balance at Jun. 30, 2020 | $ 634 | 49,778 | 87,939 | $ (469) | 4,782 | 142,664 |
Beginning balance at Mar. 31, 2020 | $ 634 | 49,644 | 88,032 | $ (400) | 4,277 | 142,187 |
Beginning balance, shares at Mar. 31, 2020 | 6,342,568 | 12,007 | ||||
Net income | 1,488 | 1,488 | ||||
Other comprehensive income (loss) | 505 | 505 | ||||
Cash dividends declared | (1,581) | (1,581) | ||||
Acquisition of treasury stock | $ (69) | (69) | ||||
Acquisition of treasury stock, shares | 1,771 | |||||
Compensation expense related to restricted stock | 83 | 83 | ||||
Compensation expense related to stock options | 51 | 51 | ||||
Ending balance, shares at Jun. 30, 2020 | 6,342,568 | 13,778 | ||||
Ending balance at Jun. 30, 2020 | $ 634 | $ 49,778 | $ 87,939 | $ (469) | $ 4,782 | $ 142,664 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders’ Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Consolidated Statements of Changes in Stockholders’ Equity [Abstract] | ||||
Cash dividends declared | $ 0.25 | $ 0.24 | $ 0.25 | $ 0.48 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 4,567 | $ 6,712 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 2,000 | 750 |
Depreciation | 562 | 487 |
Amortization of intangible assets | 44 | 56 |
Deferred income taxes | (477) | (25) |
Net amortization of securities premiums and discounts | 613 | 732 |
Net realized gains on sales of securities | (38) | (64) |
Earnings and proceeds on life insurance policies | (420) | (408) |
Gain on sales and write-downs of fixed assets and foreclosed real estate owned, net | (18) | (65) |
Net gain on sale of loans | (121) | (110) |
Loans originated for sale | (3,108) | (2,191) |
Proceeds from sale of loans originated for sale | 3,183 | 2,255 |
Compensation expense related to stock options | 102 | 104 |
Compensation expense related to restricted stock | 167 | 145 |
Increase in accrued interest receivable | (664) | (203) |
Increase in accrued interest payable | 394 | 1,202 |
Other, net | (6,234) | 234 |
Net cash provided by operating activities | 552 | 9,611 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Proceeds from sales | 8,224 | 3,626 |
Proceeds from maturities and principal reductions on mortgage-backed securities | 26,368 | 12,877 |
Purchases | (17,145) | (5,066) |
Purchase of regulatory stock | (2,685) | (1,666) |
Redemption of regulatory stock | 3,852 | 2,437 |
Net increase in loans | (64,286) | (39,398) |
Purchase of premises and equipment | (374) | (757) |
Proceeds from sales of foreclosed real estate owned | 609 | 205 |
Proceeds from sales of bank premises and equipment | 246 | |
Net cash used in investing activities | (45,437) | (27,496) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net increase in deposits | 128,709 | 34,444 |
Net increase in short-term borrowings | (7,052) | (4,952) |
Repayments of other borrowings | (15,615) | (8,260) |
Proceeds from other borrowings | 10,000 | |
Stock options exercised | 38 | 170 |
Purchase of treasury stock | (69) | (374) |
Cash dividends paid | (3,165) | (3,019) |
Net cash provided by financing activities | 112,846 | 18,009 |
Increase in cash and cash equivalents | 67,961 | 124 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 15,415 | 18,348 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 83,376 | 18,472 |
Supplemental Disclosures of Cash Flow Information | ||
Interest on deposits and borrowings | 3,791 | 3,156 |
Income taxes paid, net of refunds | 93 | 862 |
Supplemental Schedule of Noncash Investing Activities | ||
Transfers of loans to foreclosed real estate owned and repossession of other assets | 161 | 1,003 |
Dividends payable | $ 1,581 | $ 1,510 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2020 | |
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., and WTRO Properties, Inc. All significant intercompany accounts and 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 consolidated financial position and results of operations of the Company. The operating results for the three month and six month periods ended June 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020 or any other future interim period. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2020 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | 2. Revenue Recognition Under ASC Topic 606, management determined that the primary sources of revenue emanating from interest and dividend income on loans and investments along with noninterest revenue resulting from investment security gains, loan servicing, gains on the sale of loans sold and earnings on bank-owned life insurance are not within the scope of this Topic. The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three and six months ended June 30: Three months ended June 30, (dollars in thousands) Noninterest Income 2020 2019 In-scope of Topic 606: Service charges on deposit accounts $ 89 $ 66 ATM fees 104 91 Overdraft fees 148 343 Safe deposit box rental 24 23 Loan related service fees 82 94 Debit card fees 366 371 Fiduciary activities 175 145 Commissions on mutual funds and annuities 26 26 Other income 106 120 Noninterest Income ( in-scope of Topic 606 ) 1,120 1,279 Out-of-scope of Topic 606: Net realized gains on sales of securities — 64 Loan servicing fees ( 5 ) 24 Gains on sales of loans 65 67 Earnings on and proceeds from bank-owned life insurance 212 207 Noninterest Income ( out-of-scope of Topic 606 ) 272 362 Total Noninterest Income $ 1,392 $ 1,641 Six months ended June 30, (dollars in thousands) Noninterest Income 2020 2019 In-scope of Topic 606: Service charges on deposit accounts $ 185 $ 133 ATM fees 199 181 Overdraft fees 492 694 Safe deposit box rental 54 49 Loan related service fees 182 223 Debit card fees 710 697 Fiduciary activities 328 287 Commissions on mutual funds and annuities 64 81 Other income 238 235 Noninterest Income ( in-scope of Topic 606 ) 2,452 2,580 Out-of-scope of Topic 606: Net realized gains on sales of securities 38 64 Loan servicing fees 16 39 Gains on sales of loans 121 110 Earnings on and proceeds from bank-owned life insurance 420 408 Noninterest Income ( out-of-scope of Topic 606 ) 595 621 Total Noninterest Income $ 3,047 $ 3,201 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 3. 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 restricted stock, 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. (in thousands) Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Weighted average shares outstanding 6,329 6,290 6,329 6,292 Less: Unvested restricted shares ( 36 ) ( 35 ) ( 36 ) ( 35 ) Basic EPS weighted average shares outstanding 6,293 6,255 6,293 6,257 Basic EPS weighted average shares outstanding 6,293 6,255 6,293 6,257 Add: Dilutive effect of stock options and restricted shares 24 60 24 62 Diluted EPS weighted average shares outstanding 6,317 6,315 6,317 6,319 For the three and six month periods ended June 30, 2020, there were 82,600 stock options that were anti-dilutive and thereby excluded from the earnings per share calculations based upon the closing price of Norwood common stock of $ 24.79 per share as of June 30, 2020. For the three and six month periods ending June 30, 2019, 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 $ 34.81 per share on June 30, 2019. |
Stock Based Compensation
Stock Based Compensation | 6 Months Ended |
Jun. 30, 2020 | |
Stock Based Compensation [Abstract] | |
Stock Based Compensation | 4. Stock-Based Compensation No awards were granted during the six-month period ended June 30, 2020. As of June 30, 2020, there was $ 102,000 of total unrecognized compensation cost related to non-vested options granted in 2019 under the 2014 Equity Incentive Plan, which will be fully amortized by December 31, 2020. Compensation costs related to stock options amounted to $ 102,000 and $ 104,000 during the six-month periods ended June 30, 2020 and 2019, respectively. A summary of the Company’s stock option activity for the six-month period ended June 30, 2020 is as follows: Weighted Average Exercise Weighted Average Aggregate Price Remaining Intrinsic Value Options Per Share Contractual Term ($000) Outstanding at January 1, 2020 199,825 $ 24.78 5.9 Yrs. $ 2,822 Granted — — — — Exercised ( 2,005 ) 19.25 5.8 Yrs. — Forfeited — — — Outstanding at June 30, 2020 197,820 $ 24.83 5.4 Yrs. $ 728 Exercisable at June 30, 2020 171,070 $ 23.08 4.8 Yrs. $ 728 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 market price was $ 24.79 per share as of June 30, 2020 and $ 38.90 per share as of December 31, 2019. A summary of the Company’s restricted stock activity for the six-month periods ended June 30, 2020 and 2019 is as follows: 2020 2019 Weighted-Average Weighted-Average Number of Grant Date Number of Grant Date Restricted Stock Fair Value Restricted Stock Fair Value Non-vested, January 1, 36,195 $ 36.23 34,615 $ 27.82 Granted — — — — Vested — — — — Forfeited — — — — Non-vested, June 30, 36,195 $ 36.23 34,615 $ 27.82 The expected future compensation expense relating to the 36,195 shares of non-vested restricted stock outstanding as of June 30, 2020 is $ 979,000 . This cost will be recognized over the remaining vesting period of 4.5 years. Compensation costs related to restricted stock amounted to $ 167,000 and $ 145,000 during the six-month periods ended June 30, 2020 and 2019, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 5. 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 and six months ended June 30, 2020 and 2019: Unrealized gains (losses) on available for sale securities (a) Balance as of March 31, 2020 $ 4,277 Other comprehensive income before reclassification 505 Amount reclassified from accumulated other comprehensive loss - Total other comprehensive income 505 Balance as of June 30, 2020 $ 4,782 Unrealized gains (losses) on available for sale securities (a) Balance as of March 31, 2019 $ ( 2,077 ) Other comprehensive loss before reclassification 2,568 Amount reclassified from accumulated other comprehensive loss ( 51 ) Total other comprehensive loss 2,517 Balance as of June 30, 2019 $ 440 Unrealized gains (losses) on available for sale securities (a) Balance as of December 31, 2019 $ 1,187 Other comprehensive income before reclassification 3,625 Amount reclassified from accumulated other comprehensive income ( 30 ) Total other comprehensive income 3,595 Balance as of June 30, 2020 $ 4,782 Unrealized gains (losses) on available for sale securities (a) Balance as of December 31, 2018 $ ( 5,020 ) Other comprehensive loss before reclassification 5,511 Amount reclassified from accumulated other comprehensive loss ( 51 ) Total other comprehensive loss 5,460 Balance as of June 30, 2019 $ 440 (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 and six months ended June 30, 2020 and 2019: 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 June 30, 2020 2019 Unrealized gains on available for sale securities $ — $ 64 Net realized gains on sales of securities — ( 13 ) Income tax expense $ — $ 51 Six months ended June 30, 2020 2019 Unrealized gains on available for sale securities $ 38 $ 64 Net realized gains on sales of securities ( 8 ) ( 13 ) Income tax expense $ 30 $ 51 (a) Amounts in parentheses indicate debits to net income |
Off-Balance Sheet Financial Ins
Off-Balance Sheet Financial Instruments and Guarantees | 6 Months Ended |
Jun. 30, 2020 | |
Off-Balance Sheet Financial Instruments and Guarantees [Abstract] | |
Off-Balance Sheet Financial Instruments and Guarantees | 6. 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) June 30, 2020 2019 Commitments to grant loans $ 61,826 $ 49,936 Unfunded commitments under lines of credit 78,092 71,859 Standby letters of credit 4,065 4,305 $ 143,983 $ 126,100 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 June 30, 2020 for guarantees under standby letters of credit issued is not material. |
Securities
Securities | 6 Months Ended |
Jun. 30, 2020 | |
Securities [Abstract] | |
Securities | 7 . Securities The amortized cost, gross unrealized gains and losses, and fair value of securities available for sale were as follows: June 30, 2020 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In Thousands) Available for Sale: States and political subdivisions $ 56,025 $ 1,881 $ — $ 57,906 Corporate obligations 3,057 36 — 3,093 Mortgage-backed securities- government sponsored entities 132,654 3,084 ( 2 ) 135,736 Total debt securities $ 191,736 $ 5,001 $ ( 2 ) $ 196,735 December 31, 2019 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In Thousands) Available for Sale: States and political subdivisions $ 70,015 $ 1,293 $ ( 3 ) $ 71,305 Corporate obligations 4,097 3 - 4,100 Mortgage-backed securities-government sponsored entities 135,646 238 ( 1,084 ) 134,800 Total debt securities $ 209,758 $ 1,534 $ ( 1,087 ) $ 210,205 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): June 30, 2020 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Mortgage-backed securities-government sponsored entities $ 6,793 $ ( 2 ) $ — $ — $ 6,793 $ ( 2 ) $ 6,793 $ ( 2 ) $ — $ — $ 6,793 $ ( 2 ) December 31, 2019 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses States and political subdivisions $ 1,296 $ ( 2 ) $ 481 $ ( 1 ) $ 1,777 $ ( 3 ) Mortgage-backed securities-government sponsored entities 32,415 ( 241 ) 61,096 ( 843 ) 93,511 ( 1,084 ) $ 33,711 $ ( 243 ) $ 61,577 $ ( 844 ) $ 95,288 $ ( 1,087 ) At June 30, 2020, the Company had five debt securities in an unrealized loss position in the less than twelve months category and no 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 2020. 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 June 30, 2020 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 $ 5,218 $ 5,260 Due after one year through five years 8,334 8,403 Due after five years through ten years 19,314 19,673 Due after ten years 26,216 27,663 59,082 60,999 Mortgage-backed securities-government sponsored entities 132,654 135,736 $ 191,736 $ 196,735 Gross realized gains and gross realized losses on sales of securities available for sale were as follows (in thousands): Three Months Six Months Ended June 30, Ended June 30, 2020 2019 2020 2019 Gross realized gains $ — $ 64 $ 38 $ 64 Gross realized losses — — — — Net realized gain $ — $ 64 $ 38 $ 64 Proceeds from sales of securities $ — $ 3,299 $ 8,224 $ 3,626 Securities with a carrying value of $ 163,150,000 and $ 196,986,000 at June 30, 2020 and 2019, 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 | 6 Months Ended |
Jun. 30, 2020 | |
Loans Receivable and Allowance for Loan Losses [Abstract] | |
Loans Receivable and Allowance for Loan Losses | 8. 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): June 30, 2020 December 31, 2019 Real Estate Loans: Residential $ 226,120 22.8 % $ 229,781 24.9 % Commercial 398,813 40.3 391,327 42.3 Construction 15,182 1.5 17,732 1.9 Commercial loans 194,917 19.7 134,150 14.5 Consumer loans to individuals 155,696 15.7 151,686 16.4 Total loans 990,728 100.0 % 924,676 100.0 % Deferred fees, net ( 2,049 ) ( 95 ) Total loans receivable 988,679 924,581 Allowance for loan losses ( 10,312 ) ( 8,509 ) Net loans receivable $ 978,367 $ 916,072 During 2020 the Company participated in the Paycheck Protection Program (“PPP”), administered directly by the U.S. SBA. The PPP provides loans to small businesses who were affected by economic conditions as a result of COVID-19 to provide cash-flow assistance to employers who maintain their payroll (including healthcare and certain related expenses), mortgage interest, rent, leases, utilities and interest on existing debt during the COVID-19 emergency. As of June 30, 2020, the Company had outstanding principal balances of $ 67.3 million. The PPP loans are fully guaranteed by the SBA and may be eligible for forgiveness by the SBA to the extent that the proceeds are used to cover eligible payroll costs, interest costs, rent, and utility costs over a period of up to 24 weeks after the loan is made as long as certain conditions are met regarding employee retention and compensation levels. PPP loans deemed eligible for forgiveness by the SBA will be repaid by the SBA to the Company. PPP loans are included in the Commercial loan category. In accordance with the SBA terms and conditions on these PPP loans, the Company received approximately $ 2.4 million in fees associated with the processing of these loans. Upon funding of the loan, these fees were deferred and will be amortized over the life of the loan as an adjustment to yield in accordance with FASB ASC 310-20-25-2. The following table presents information regarding loans acquired and accounted for in accordance with ASC 310-30 (in thousands): June 30, 2020 December 31, 2019 Outstanding Balance $ 766 $ 793 Carrying Amount $ 669 $ 696 As a result of the acquisition of Delaware Bancshares, Inc. (“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 June 30, 2020 and December 31, 2019, foreclosed real estate owned totaled $ 965,000 and $ 1,556,000 , respectively. During the six months ended June 30, 2020, there were no additions to the foreclosed real estate category. The Co mpany disposed of one property that was previously transferred to foreclosed real estate owned with a carrying value of $ 591,000 through the sale of the property. As of June 30, 2020, the Company has initiated formal foreclosure proceedings on three properties classified as consumer residential mortgages with an aggregate carrying value of $ 59,000 . 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 June 30, 2020 (In thousands) Individually evaluated for impairment $ — $ 2,093 $ — $ — $ — $ 2,093 Loans acquired with deteriorated credit quality 457 212 — — — 669 Collectively evaluated for impairment 225,663 396,508 15,182 194,917 155,696 987,966 Total Loans $ 226,120 $ 398,813 $ 15,182 $ 194,917 $ 155,696 $ 990,728 Real Estate Loans Commercial Consumer Residential Commercial Construction Loans Loans Total December 31, 2019 (In thousands) Individually evaluated for impairment $ - $ 2,144 $ - $ - $ - $ 2,144 Loans acquired with deteriorated credit quality 476 220 - - - 696 Collectively evaluated for impairment 229,305 388,963 17,732 134,150 151,686 921,836 Total Loans $ 229,781 $ 391,327 $ 17,732 $ 134,150 $ 151,686 $ 924,676 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 June 30, 2020 (in thousands) With no related allowance recorded: Real Estate Loans: Commercial $ 170 $ 370 $ — Subtotal 170 370 — With an allowance recorded: Real Estate Loans Commercial 1,923 1,956 392 Subtotal 1,923 1,956 392 Total: Real Estate Loans: Commercial 2,093 2,326 392 Total Impaired Loans $ 2,093 $ 2,326 $ 392 Unpaid Recorded Principal Associated Investment Balance Allowance December 31, 2019 (in thousands) With no related allowance recorded: Real Estate Loans: Commercial $ 143 $ 394 $ — Subtotal 143 394 — With an allowance recorded: Real Estate Loans Commercial 2,001 2,001 417 Subtotal 2,001 2,001 417 Total: Real Estate Loans: Commercial 2,144 2,395 417 Total Impaired Loans $ 2,144 $ 2,395 $ 417 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 June 30, 2020 and 2019, respectively (in thousands): Average Recorded Interest Income Investment Recognized 2020 2019 2020 2019 Real Estate Loans: Commercial 2,094 601 3 24 Total $ 2,094 $ 601 $ 3 $ 24 The following table presents the average recorded investment in impaired loans and the related amount of interest income recognized during the six-month periods ended June 30, 2020 and 2019, respectively (in thousands): Average Recorded Interest Income Investment Recognized 2020 2019 2020 2019 Real Estate Loans: Commercial 2,096 840 6 24 Total $ 2,096 $ 840 $ 6 $ 24 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 June 30, 2020 and December 31, 2019, troubled debt restructured loans totaled $ 93,000 and $ 99,000 , respectively , with no specific reserve. For the six-month period ended June 30, 2020 and 2019, there were no new loans identified as troubled debt restructurings nor did the Company recognized any charge-off on a loan that was previously identified as a troubled debt restructuring. 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. On April 7, 2020, federal banking regulators issued a revised interagency statement that included guidance on their approach for the accounting of loan modifications in light of the economic impact of the COVID-19 pandemic. The guidance interprets current accounting standards and indicates that a lender can conclude that a borrower is not experiencing financial difficulty if short-term modifications are made in response to COVID-19, such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant related to the loans in which the borrower is less than 30 days past due on its contractual payments at the time a modification program is implemented. The agencies confirmed in working with the staff of the FASB that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not TDRs. 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 nonperformance, repossession, or death occurs to raise awareness of a possible credit event. The Company’s Loan Review Department is responsible for the timely and accurate risk rating of the loans on an ongoing basis. Every credit which must be approved by Loan Committee or the Board of Directors is assigned a risk rating at time of consideration. Loan Review also annually reviews relationships of $ 1,500,000 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 June 30, 2020 and December 31, 2019 (in thousands): Special Doubtful Pass Mention Substandard or Loss Total June 30, 2020 Commercial real estate loans $ 385,332 $ 10,413 $ 3,068 $ — $ 398,813 Commercial loans 194,475 273 169 — 194,917 Total $ 579,807 $ 10,686 $ 3,237 $ — $ 593,730 Special Doubtful Pass Mention Substandard or Loss Total December 31, 2019 Commercial real estate loans $ 376,109 $ 12,268 $ 2,950 $ — $ 391,327 Commercial loans 133,695 248 207 — 134,150 Total $ 509,804 $ 12,516 $ 3,157 $ — $ 525,477 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 June 30, 2020 and December 31, 2019 (in thousands): Performing Nonperforming Total June 30, 2020 Residential real estate loans $ 225,655 $ 465 $ 226,120 Construction 15,182 — 15,182 Consumer loans 155,405 291 155,696 Total $ 396,242 $ 756 $ 396,998 Performing Nonperforming Total December 31, 2019 Residential real estate loans $ 229,214 $ 567 $ 229,781 Construction 17,732 — 17,732 Consumer loans 151,607 79 151,686 Total $ 398,553 $ 646 $ 399,199 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 June 30, 2020 and December 31, 2019 (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 June 30, 2020 Real Estate loans Residential $ 225,328 $ 245 $ 82 $ - $ 465 $ 792 $ 226,120 Commercial 396,296 52 274 - 2,191 2,517 398,813 Construction 15,182 - - - - - 15,182 Commercial loans 194,823 69 - - 25 94 194,917 Consumer loans 155,265 97 43 - 291 431 155,696 Total $ 986,894 $ 463 $ 399 $ - $ 2,972 $ 3,834 $ 990,728 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, 2019 Real Estate loans Residential $ 228,242 $ 727 $ 245 $ - $ 567 $ 1,539 $ 229,781 Commercial 388,117 176 2,935 - 99 3,210 391,327 Construction 17,695 - 37 - - 37 17,732 Commercial loans 134,018 82 - - 50 132 134,150 Consumer loans 151,309 233 65 - 79 377 151,686 Total $ 919,381 $ 1,218 $ 3,282 $ - $ 795 $ 5,295 $ 924,676 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. As of June 30, 2020, the allocation of the allowance pertaining to each major category of loans is higher than the allocation as of December 31, 2019. This increase is due primarily to an increase in the qualitative factor for economic conditions which worsened as a result of the COVID-19 pandemic. The increase in this factor added $ 1.7 million to the required allowance for loan losses. As of June 30, 2020, the Company has also added qualitative factors related to the pandemic to capture some of the risk associated with higher-risk industries and to recognize risk related to loans that have been granted deferral of payments due to COVID-19. At June 30, 2020, the allowance for loan losses includes $ 1.0 million of COVID related factors. These increases in the required allowance were offset partially by a decrease in the qualitative factor relating to loan growth which decreased by $ 908,000 due to a reduction in loan growth from 8.75 % in 2019 to projected growth of approximately 3.00 % for the year of 2020. The 2020 growth excludes growth in Paycheck Protection Program loans which are fully guaranteed by the Small Business Association. 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, 2019 $ 1,552 $ 4,687 $ 95 $ 949 $ 1,226 $ 8,509 Charge Offs ( 1 ) ( 33 ) — ( 18 ) ( 192 ) ( 244 ) Recoveries 3 6 — 18 20 47 Provision for loan losses 98 1,419 ( 9 ) 127 365 2,000 Ending balance, June 30, 2020 $ 1,652 $ 6,079 $ 86 $ 1,076 $ 1,419 $ 10,312 Ending balance individually evaluated for impairment $ — $ 392 $ — $ — $ — $ 392 Ending balance collectively evaluated for impairment $ 1,652 $ 5,687 $ 86 $ 1,076 $ 1,419 $ 9,920 (In thousands) Residential Real Estate Commercial Real Estate Construction Commercial Consumer Total Beginning balance, March 31, 2020 $ 1,644 $ 4,915 $ 87 $ 1,064 $ 1,378 $ 9,088 Charge Offs - - - ( 18 ) ( 76 ) ( 94 ) Recoveries 1 2 - 8 7 18 Provision for loan losses 7 1,162 ( 1 ) 22 110 1,300 Ending balance, June 30, 2020 $ 1,652 $ 6,079 $ 86 $ 1,076 $ 1,419 $ 10,312 (In thousands) Residential Real Estate Commercial Real Estate Construction Commercial Consumer Total Beginning balance, December 31, 2018 $ 1,328 $ 5,455 $ 93 $ 712 $ 864 $ 8,452 Charge Offs ( 75 ) ( 615 ) — ( 234 ) ( 135 ) ( 1,059 ) Recoveries 15 14 — 21 35 85 Provision for loan losses 179 ( 160 ) 19 397 315 750 Ending balance, June 30, 2019 $ 1,447 $ 4,694 $ 112 $ 896 $ 1,079 $ 8,228 Ending balance individually evaluated for impairment $ — $ — $ — $ — $ — $ — Ending balance collectively evaluated for impairment $ 1,447 $ 4,694 $ 112 $ 896 $ 1,079 $ 8,228 (In thousands) Residential Real Estate Commercial Real Estate Construction Commercial Consumer Total Beginning balance, March 31, 2019 $ 1,455 $ 4,947 $ 108 $ 811 $ 1,028 $ 8,349 Charge Offs ( 10 ) ( 146 ) — ( 233 ) ( 72 ) ( 461 ) Recoveries 4 4 — 11 21 40 Provision for loan losses ( 2 ) ( 111 ) 4 307 102 300 Ending balance, June 30, 2019 $ 1,447 $ 4,694 $ 112 $ 896 $ 1,079 $ 8,228 The Company’s primary business activity as of June 30, 2020 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 June 30, 2020, the Company considered its concentration of credit risk to be acceptable. The highest concentrations are in commercial rentals with $ 89.1 million of loans outstanding, or 9.0 % of total loans outstanding, and the hospitality/lodging industry with loans outstanding of $ 67.3 million, or 6.8 % of loans outstanding. During 2020, the Company recognized a charge off of $ 33,000 on one property in the named concentrations. |
Operating Leases
Operating Leases | 6 Months Ended |
Jun. 30, 2020 | |
Operating Leases [Abstract] | |
Operating Leases | 9 . Operating Leases The Company leases seven office locations under operating leases. Several assumptions and judgments were made when applying the requirements of Topic 842 to the Company’s existing lease commitments, including the allocation of consideration in the contracts between lease and nonlease components, determination of the lease term, and determination of the discount rate used in calculating the present value of the lease payments. The Company has elected to account for the variable nonlease components, such as common area maintenance charges, utilities, real estate taxes, and insurance, separately from the lease component. Such variable nonlease components are reported in net occupancy expense on the Consolidated Statements of Income when paid. These variable nonlease components were excluded from the calculation of the present value of the remaining lease payments, therefore, they are not included in other assets and other liabilities on the Consolidated Balance Sheets. The lease cost associated with the operating leases for the six-month periods ending June 30, 2020 and 2019, amounted to $ 280,000 and $ 255,000 respectively. Certain of the Company’s leases contain options to renew the lease after the initial term. Management considers the Company’s historical pattern of exercising renewal options on leases and the positive performance of the leased locations, when determining whether it is reasonably certain that the leases will be renewed. If management concludes that there is reasonable certainty about the renewal option, it is included in the calculation of the remaining term of each applicable lease. The discount rate utilized in calculating the present value of the remaining lease payments for each lease was the Federal Home Loan Bank of Pittsburgh advance rate corresponding to the remaining maturity of the lease. The following table presents the weighted-average remaining lease term and discount rate for the leases outstanding at June 30, 2020. Operating Weighted-average remaining term 12.7 Weighted-average discount rate 3.22 % The following table presents the undiscounted cash flows due related to operating leases as of June 30, 2020, along with a reconciliation to the discounted amount recorded on the Consolidated Balance Sheets: Undiscounted cash flows due (in thousands) Operating 2020 $ 267 2021 535 2022 535 2023 535 2024 544 2025 and thereafter 3,879 Total undiscounted cash flows 6,295 Discount on cash flows ( 1,162 ) Total lease liabilities $ 5,133 |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value of Assets and Liabilities [Abstract] | |
Fair Value of Assets and Liabilities | 10 . Fair Value of Assets and Liabilities Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. In accordance with fair value accounting guidance, the Company measures, records, and reports various types of assets and liabilities at fair value on either a recurring or non-recurring basis in the Consolidated Financial Statements. Those assets and liabilities are presented in the sections entitled “Assets and Liabilities Required to be Measured and Reported at Fair Value on a Recurring Basis” and “Assets and Liabilities Required to be Measured and Reported at Fair Value on a Non-Recurring Basis”. There are three levels of inputs that may be used to measure fair values: Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 – Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The methods of determining the fair value of assets and liabilities presented in this note are consistent with our methodologies disclosed in Note 15 of the Company’s 2019 Form 10-K. Assets and Liabilities Required to be Measured and Reported at Fair Value on a Recurring Basis For financial assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at June 30, 2020 and December 31, 2019 are as follows: Fair Value Measurement Using Reporting Date Description Total Level 1 Level 2 Level 3 (In thousands) June 30, 2020 Available for Sale: States and political subdivisions $ 57,906 $ - $ 57,906 $ - Corporate obligations 3,093 - 3,093 - Mortgage-backed securities-government sponsored entities 135,736 - 135,736 - Total $ 196,735 $ - $ 196,735 $ - Description Total Level 1 Level 2 Level 3 (In thousands) December 31, 2019 Available for Sale: States and political subdivisions $ 71,305 $ - $ 71,305 $ - Corporate obligations 4,100 - 4,100 - Mortgage-backed securities-government sponsored entities 134,800 - 134,800 - Total $ 210,205 $ - $ 210,205 $ - 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. Assets and Liabilities Required to be Measured and Reported at Fair Value on a Non-Recurring Basis For financial assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at June 30, 2020 and December 31, 2019 are as follows: Fair Value Measurement Using Reporting Date (In thousands) Description Total Level 1 Level 2 Level 3 June 30, 2020 Impaired Loans $ 1,531 $ - $ - $ 1,531 Foreclosed Real Estate Owned 965 - - 965 December 31, 2019 Impaired Loans $ 1,584 $ - $ - $ 1,584 Foreclosed Real Estate Owned 1,556 - - 1,556 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 June 30, 2020, the fair value investment in impaired loans totaled $ 1,531,000 which included one loan relationship that required a valuation allowance of $ 392,000 since the estimated realizable value of the collateral was not sufficient to cover the recorded investment in the loan. As of June 30, 2020, the Company has recognized a charge-off against the allowance for loan losses on this impaired loan in the amount of $ 33,000 . As of December 31, 2019, the fair value investment in impaired loans totaled $ 1,584,000 which included two loans that required a valuation allowance of $ 417,000 since the estimated realizable value of the collateral or the discounted cash flows were not sufficient to cover the recorded investment in the loans. As of December 31, 2019, the Company had no t recognized any charge-offs against the allowance for loan losses on these impaired loans. Foreclosed real estate owned (carried at fair value): Real estate properties acquired through loan foreclosures, or by deed 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. The following table presents additional quantitative information about assets measured at fair value on a non-recurring 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) June 30, 2020 Impaired loans $ 1,531 Appraisal of collateral(1) Appraisal adjustments(2) 10.00 % ( 10.00 %) Foreclosed real estate owned $ 965 Appraisal of collateral(1) Liquidation Expenses(2) 7.00 % ( 7.00 %) Quantitative Information about Level 3 Fair Value Measurements (dollars in thousands) Fair Value Estimate Valuation Techniques Unobservable Input Range (Weighted Average) December 31, 2019 Impaired loans $ 1,531 Appraisal of collateral(1) Appraisal adjustments(2) 10.00 % ( 10.00 %) Impaired loans $ 53 Present value of future cash flows Loan discount rate 4.00 - 6.97 % ( 5.55 %) Probability of default 0% Foreclosed real estate owned $ 1,556 Appraisal of collateral(1) Liquidation Expenses(2) 0 - 7.00 % ( 4.34 %) (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. Assets and Liabilities Not Required to be Measured or Reported at Fair Value 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 June 30, 2020 and December 31, 2019. 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. 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. Deposit liabilities (carried at cost): 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. 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 fair value that is deemed to represent the transfer price if the liability were assumed by a third party. The estimated fair values of the Bank’s financial instruments not required to be measured or reported at fair value were as follows at June 30, 2020 and December 31, 2019. (In thousands) Fair Value Measurements at June 30, 2020 Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents (1) $ 83,376 $ 83,376 $ 83,376 $ - $ - Loans receivable, net 978,367 1,049,959 - - 1,049,959 Mortgage servicing rights 168 168 - - 168 Regulatory stock (1) 3,677 3,677 3,677 - - Bank owned life insurance (1) 39,183 39,183 39,183 - - Accrued interest receivable (1) 4,383 4,383 4,383 - - Financial liabilities: Deposits 1,086,238 1,090,317 725,129 - 365,188 Short-term borrowings (1) 55,204 55,204 55,204 - - Other borrowings 50,823 51,997 - - 51,997 Accrued interest payable (1) 2,826 2,826 2,826 - - Off-balance sheet financial instruments: Commitments to extend credit and outstanding letters of credit - - - - - Fair Value Measurements at December 31, 2019 Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents (1) $ 15,415 $ 15,415 $ 15,415 $ - $ - Loans receivable, net 916,072 943,143 - - 943,143 Mortgage servicing rights 187 226 - - 226 Regulatory stock (1) 4,844 4,844 4,844 - - Bank owned life insurance (1) 38,763 38,763 38,763 - - Accrued interest receivable (1) 3,719 3,719 3,719 - - Financial liabilities: Deposits 957,529 961,120 596,811 - 364,309 Short-term borrowings (1) 62,256 62,256 62,256 - - Other borrowings 56,438 56,618 - - 56,618 Accrued interest payable (1) 2,432 2,432 2,432 - - Off-balance sheet financial instruments: Commitments to extend credit and outstanding letters of credit - - - - - (1) This financial instrument is carried at cost, which approximates the fair value of the instrument. |
New and Recently Adopted Accoun
New and Recently Adopted Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2020 | |
New and Recently Adopted Accounting Pronouncements [Abstract] | |
New and Recently Adopted Accounting Pronouncements | 11 . New and Recently Adopted Accounting Pronouncements New Accounting Pronouncements Not Yet Adopted 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. With certain exceptions, transition to the new r equirements 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. In November 2019, the FASB issued ASU 2019-10, Financial Instruments ‒ Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) . This Update defers the effective date of ASU 2016-13 for SEC filers that are eligible to be smaller reporting companies, non-SEC filers, and all other companies, to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. 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 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 unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In November 2019, the FASB issued ASU 2019-10, Financial Instruments ‒ Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) , which deferred the effective date for ASC 350, Intangibles – Goodwill and Other , for smaller reporting companies to fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. This Update is not expected to have a significant impact on the Company’s financial statements. In August 2018, the FASB issued ASU 2018-14, Compensation – Retirement Benefits (Topic 715-20). This Update amends ASC 715 to add, remove, and clarify disclosure requirements related to defined benefit pension and other postretirement plans. The Update eliminates the requirement to disclose the amounts in accumulated other comprehensive income expected to be recognized as part of net periodic benefit cost over the next year. The Update also removes the disclosure requirements for the effects of a one percentage point change on the assumed health care costs and the effect of this change in rates on service cost, interest cost, and the benefit obligation for postretirement health care benefits. This Update is effective for public business entities for fiscal years ending after December 15, 2020, and must be applied on a retrospective basis. For all other entities, this Update is effective for fiscal years ending after December 15, 2021. This Update is not expected to have a significant impact on the Company’s financial statements. In April 2019, the FASB issued ASU 201 9-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Derivatives and Hedging (Topic 815), and Financial Instruments (Topic 825), which affects a variety of topics in the Codification and applies to all reporting entities within the scope of the affected accounting guidance. Topic 326 , Financial Instruments – Credit Losses , amendments are effective for SEC registrants for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. For all other public business entities, the effective date is for fiscal years beginning after December 15, 2020, and for all other entities, the effective date is for fiscal years beginning after December 15, 2021. Topic 815 , Derivatives and Hedging , amendments are effective for public business entities 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. For entities that have adopted the amendments in Update 2017-12, the effective date is as of the beginning of the first annual period beginning after the issuance of this Update. Topic 825 , Financial Instruments , amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years. In November 2019, the FASB issued ASU 2019-10, Financial Instruments ‒ Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) . This Update defers the effective date of ASU 2016-13 for SEC filers that are eligible to be smaller reporting companies, non-SEC filers, and all other companies, to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Furthermore, the ASU provides a one-year deferral of the effective dates of the ASUs on derivatives and hedging for companies that are not public business entities. The Company qualifies as a smaller reporting company and does not expect to early adopt these ASUs. In May 2019, the FASB issued ASU 2019-05, Financial Instruments – Credit Losses (Topic 326) , which allows entities to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost upon adoption of the new credit losses standard. To be eligible for the transition election, the existing financial asset must otherwise be both within the scope of the new credit losses standard and eligible for applying the fair value option in ASC 825-10. The election must be applied on an instrument-by-instrument basis and is not available for either available-for-sale or held-to-maturity debt securities. For entities that elect the fair value option, the difference between the carrying amount and the fair value of the financial asset would be recognized through a cumulative-effect adjustment to opening retained earnings as of the date an entity adopted ASU 2016-13. Changes in fair value of that financial asset would subsequently be reported in current earnings. For entities that have not yet adopted ASU 2016-13, the effective dates and transition requirements are the same as those in ASU 2016-13. For entities that have adopted ASU 2016-13, ASU 2019-05 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted once ASU 2016-13 has been adopted. In November 2019, the FASB issued ASU 2019-10, Financial Instruments ‒ Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) . The Update defers the effective date of ASU 2016-13 for SEC filers that are eligible to be smaller reporting companies, non-SEC filers, and all other companies, to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company qualifies as a smaller reporting company and does not expect to early adopt ASU 2016-13. In November 2019, the FASB issued ASU 2019-10, Financial Instruments ‒ Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) . The Update defers the effective dates of ASU 2016-13 for SEC filers that are eligible to be smaller reporting companies, non-SEC filers, and all other companies, to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. This Update also amends the mandatory effective date for the elimination of Step 2 from the goodwill impairment test under ASU No. 2017-04, Intangibles ‒ Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (Goodwill) , to align with those used for credit losses. Furthermore, the ASU provides a one-year deferral of the effective dates of the ASUs on derivatives and hedging and leases for companies that are not public business entities. The Company qualifies as a smaller reporting company and does not expect to early adopt these ASUs. In November 2019, the FASB issued ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments – Credit Losses , to clarify its new credit impairment guidance in ASC 326, based on implementation issues raised by stakeholders. This Update clarified, among other things, that expected recoveries are to be included in the allowance for credit losses for these financial assets; an accounting policy election can be made to adjust the effective interest rate for existing troubled debt restructurings based on the prepayment assumptions instead of the prepayment assumptions applicable immediately prior to the restructuring event; and extends the practical expedient to exclude accrued interest receivable from all additional relevant disclosures involving amortized cost basis. The effective dates in this Update are the same as those applicable for ASU 2019-10. The Company qualifies as a smaller reporting company and does not expect to early adopt these ASUs. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) , to simplify the accounting for income taxes, change the accounting for certain tax transactions, and make minor improvements to the codification. This Update provides a policy election to not allocate consolidated income taxes when a member of a consolidated tax return is not subject to income tax and provides guidance to evaluate whether a step-up in tax basis of goodwill relates to a business combination in which book goodwill was recognized or was a separate transaction. The Update also changes current guidance for making an intraperiod allocation if there is a loss in continuing operations and gains outside of continuing operations, determining when a deferred tax liability is recognized after an investor in a foreign entity transitions to or from the equity method of accounting, accounting for tax law changes and year-to-date losses in interim periods, and determining how to apply the income tax guidance to franchise taxes that are partially based on income. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. This Update is not expected to have a significant impact on the Company’s financial statements. In March 2020, the FASB issued ASU 2020-3 , Codification Improvements to Financial Instruments. This ASU was issued to improve and clarify various financial instruments topics, including the current expected credit losses (CECL) standard issued in 2016. The ASU includes seven issues that describe the areas of improvement and the related amendments to GAAP; they are intended to make the standards easier to understand and apply and to eliminate inconsistencies, and they are narrow in scope and are not expected to significantly change practice for most entities. Among its provisions, the ASU clarifies that all entities, other than public business entities that elected the fair value option, are required to provide certain fair value disclosures under ASC 825, Financial Instruments , in both interim and annual financial statements. It also clarifies that the contractual term of a net investment in a lease under Topic 842 should be the contractual term used to measure expected credit losses under Topic 326. Amendments related to ASU 2019-04 are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is not permitted before an entity’s adoption of ASU 2016-01. Amendments related to ASU 2016-13 for entities that have not yet adopted that guidance are effective upon adoption of the amendments in ASU 2016-13. Early adoption is not permitted before an entity’s adoption of ASU 2016-13. Amendments related to ASU 2016-13 for entities that have adopted that guidance are effective for fiscal years beginning after December 15, 2019, including interim periods within those years. Other amendments are effective upon issuance of this ASU. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. In January 2020, the FASB issued ASU 2020-4, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, March 2020 , to provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates, such as Secured Overnight Financing Rate. Entities can elect not to apply certain modification accounting requirements to contracts affected by what the guidance calls reference rate reform, if certain criteria are met. An entity that makes this election would not have to remeasure the contracts at the modification date or reassess a previous accounting determination. Also, entities can elect various optional expedients that would allow them to continue applying hedge accounting for hedging relationships affected by reference rate reform, if certain criteria are met, and can make a one-time election to sell and/or reclassify held-to-maturity debt securities that reference an interest rate affected by reference rate reform. The amendments in this ASU are effective for all entities upon issuance through December 31, 2022. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. |
Acquisition of UpState New York
Acquisition of UpState New York Bancorp, Inc. and USNY Bank. | 6 Months Ended |
Jun. 30, 2020 | |
Acquisition of UpState New York Bancorp, Inc. and USNY Bank. [Abstract] | |
Acquisition of UpState New York Bancorp, Inc. and USNY Bank. | 12 . Acquisition of UpState New York Bancorp, Inc. and USNY Bank. On January 8, 2020, Norwood Financial Corp. (“Norwood”) and its wholly owned subsidiary, Wayne Bank, and UpState New York Bancorp, Inc. (“UpState”), and its wholly owned subsidiary, USNY Bank entered into an Agreement and Plan of Merger (the “Merger Agreement”) pursuant to which UpState would merge with and into Norwood, with Norwood as the surviving corporation (“the Merger”). The Merger was completed on July 7, 2020. Pursuant to the terms of the Merger Agreement, UpState was merged with and into Norwood, with Norwood as the surviving corporation of the Merger. Immediately following the Merger, USNY Bank was merged with and into Wayne Bank, with Wayne Bank as the surviving entity. USNY Bank conducted its business from two Bank of the Finger Lakes offices in Geneva and Penn Yan, New York, and two Bank of Cooperstown offices in Cooperstown and Oneonta, New York. At March 31, 2020, UpState had total assets of $ 443.8 million, total deposits of $ 393.9 million and total stockholders’ equity of $ 46.5 million. Pursuant to the terms of the Merger Agreement, shareholders of UpState elected to receive for each share of UpState common stock they owned, either 0.9390 shares of Norwood common stock or $ 33.33 in cash, or a combination of both. All shareholder elections were subject to the allocation and proration procedures set forth in the Merger Agreement which were intended to ensure that 90 % of the shares of UpState would be exchanged for Norwood common stock and 10 % of the shares of UpState would be exchanged for cash. In addition, under the terms of the Merger Agreement, UpState shareholders received an additional $ 0.67 per share in cash for each share of UpState common stock held. In the aggregate, the merger consideration paid to UpState shareholders consisted of approximately $ 8,845,198 in cash and 1,865,738 shares of Norwood common stock. The senior management of Norwood and Wayne Bank remained the same following the completion of the Merger. UpState directors Jeffrey S. Gifford and Alexandra K. Nolan have been appointed to the boards of directors of Norwood and Wayne Bank. In addition, the remaining former directors of UpState have been invited to join a regional advisory board. UpState President and CEO R. Michael Briggs has entered into a consulting agreement with Wayne Bank. Norwood has retained the brand names of USNY’s two units, Bank of the Finger Lakes and Bank of Cooperstown, and has also retained USNY’s administration center in Geneva, New York. Scott D. White, unit President of Bank of Cooperstown, and Jeffrey E. Franklin, unit President of Bank of the Finger Lakes, will also remain in place as executives of their units. |
Risks and Uncertainties
Risks and Uncertainties | 6 Months Ended |
Jun. 30, 2020 | |
Risks and Uncertainties [Abstract] | |
Risks and Uncertainties | 13 . Risks and Uncertainties The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, was signed into law on March 27, 2020, and provided over $2.0 trillion in emergency economic relief to individuals and businesses impacted by the COVID-19 pandemic. The CARES Act authorized the Small Business Administration (“SBA”) to temporarily guarantee loans under a new 7(a) loan program called the Paycheck Protection Program (“PPP”). As a qualified SBA lender, we were automatically authorized to originate PPP loans. An eligible business can apply for a PPP loan up to the greater of: (1) 2.5 times its average monthly payroll costs; or (2) $10.0 million. PPP loans will have: (a) an interest rate of 1.0%, (b) a two-year loan term to maturity; and (c) principal and interest payments deferred for six months from the date of disbursement. The SBA will guarantee 100% of the PPP loans made to eligible borrowers. The entire principal amount of the borrower’s PPP loan, including any accrued interest, is eligible to be reduced by the loan forgiveness amount under the PPP so long as employee and compensation levels of the business are maintained and 60% of the loan proceeds are used for payroll expenses, with the remaining 40% of the loan proceeds used for other qualifying expenses. As of June 30, 2020, the Company approved 746 applications for $ 67.3 million of loans under the PPP. Since the opening of the PPP, several larger banks have been subject to litigation regarding the process and procedures that such banks used in processing applications for the PPP. Norwood may be exposed to the risk of similar litigation, from both customers and non-customers that approached the bank regarding PPP loans, regarding the process and procedures used in processing applications for the PPP. If any such litigation is filed against and is not resolved in a manner favorable to Norwood, it may result in significant financial liability or adversely affect reputation. In addition, litigation can be costly, regardless of outcome. Any financial liability, litigation costs or reputational damage caused by PPP-related litigation could have a material adverse impact on our business, financial condition and results of operations. The Company also has credit risk on PPP loans if a determination is made by the SBA that there is a deficiency in the manner in which the loan was originated, funded, or serviced by, such as an issue with the eligibility of a borrower to receive a PPP loan, which may or may not be related to the ambiguity in the laws, rules and guidance regarding the operation of the PPP. In the event of a loss resulting from a default on a PPP loan and a determination by the SBA that there was a deficiency in the manner in which the PPP loan was originated, funded, or serviced by Norwood , the SBA may deny its liability under the guaranty, reduce the amount of the guaranty, or, if it has already paid under the guaranty, seek recovery of any loss related to the deficiency from the Company. Owner-Occupied Residential Mortgage & Consumer Loans . For residential mortgage and consumer loans, CARES Act Section 4013 forbearance agreements are available to qualified borrowers. As of June 30, 2020, we had processed 112 residential mortgage payment deferrals of $ 11.0 million. None of the deferrals granted were to non-owner-occupied loans. Due to the widespread impact of the State of Pennsylvania and the State of New York Stay-At-Home orders, we expect that additional residential loan borrowers will seek loan forbearance or loan modification agreements in the third quarter of 2020. Deferrals As of June 30, 2020, we received requests to modify 918 loans aggregating $ 192.9 million primarily consisting of the deferral of principal and interest payments and the extension of the maturity date. Details with respect to actual loan modifications are as follows: COVID-19 Loan Forbearance Programs . Section 4013 of the CARES Act provides that banks may elect not to categorize a loan modification as a TDR if the loan modification is (1) related to COVID-19; (2) executed on a loan that was not more than 30 days past due as of December 31, 2019; and (3) executed between March 1, 2020, and the earlier of (A) 60 days after the date on which the national emergency concerning the novel coronavirus disease (COVID–19) outbreak declared by the President on March 13, 2020, under the National Emergencies Act terminates, or (B) December 31, 2020. According to the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (Revised) issued by the federal bank regulatory agencies on April 7, 2020, short-term loan modifications not otherwise eligible under Section 4013 that are made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not TDRs. This includes short-term (e.g., six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. See Note 8 of the financial statements for additional disclosure of TDRs at June 30, 2020. The following table presents a summary of loans that were granted forbearance by type of loan as of June 30, 2020: Loan Type Number of Loans Balance (in thousands) Real Estate Loans: Residential 112 $ 10,955 Commercial 225 152,610 Construction 15 5,174 Commercial, financial and agricultural 101 13,282 Consumer loans to individuals 465 10,924 Total 918 $ 192,945 The following table presents a summary of loans that remain in forbearance by type of loan as of June 30, 2020: Loan Type Number of Loans Balance (in thousands) Real Estate Loans: Residential 105 $ 10,570 Commercial 213 144,206 Construction 6 4,174 Commercial, financial and agricultural 97 12,900 Consumer loans to individuals 442 10,443 Total 863 $ 182,293 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue Recognition [Abstract] | |
Noninterest Income | Three months ended June 30, (dollars in thousands) Noninterest Income 2020 2019 In-scope of Topic 606: Service charges on deposit accounts $ 89 $ 66 ATM fees 104 91 Overdraft fees 148 343 Safe deposit box rental 24 23 Loan related service fees 82 94 Debit card fees 366 371 Fiduciary activities 175 145 Commissions on mutual funds and annuities 26 26 Other income 106 120 Noninterest Income ( in-scope of Topic 606 ) 1,120 1,279 Out-of-scope of Topic 606: Net realized gains on sales of securities — 64 Loan servicing fees ( 5 ) 24 Gains on sales of loans 65 67 Earnings on and proceeds from bank-owned life insurance 212 207 Noninterest Income ( out-of-scope of Topic 606 ) 272 362 Total Noninterest Income $ 1,392 $ 1,641 Six months ended June 30, (dollars in thousands) Noninterest Income 2020 2019 In-scope of Topic 606: Service charges on deposit accounts $ 185 $ 133 ATM fees 199 181 Overdraft fees 492 694 Safe deposit box rental 54 49 Loan related service fees 182 223 Debit card fees 710 697 Fiduciary activities 328 287 Commissions on mutual funds and annuities 64 81 Other income 238 235 Noninterest Income ( in-scope of Topic 606 ) 2,452 2,580 Out-of-scope of Topic 606: Net realized gains on sales of securities 38 64 Loan servicing fees 16 39 Gains on sales of loans 121 110 Earnings on and proceeds from bank-owned life insurance 420 408 Noninterest Income ( out-of-scope of Topic 606 ) 595 621 Total Noninterest Income $ 3,047 $ 3,201 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 Six Months Ended June 30, June 30, 2020 2019 2020 2019 Weighted average shares outstanding 6,329 6,290 6,329 6,292 Less: Unvested restricted shares ( 36 ) ( 35 ) ( 36 ) ( 35 ) Basic EPS weighted average shares outstanding 6,293 6,255 6,293 6,257 Basic EPS weighted average shares outstanding 6,293 6,255 6,293 6,257 Add: Dilutive effect of stock options and restricted shares 24 60 24 62 Diluted EPS weighted average shares outstanding 6,317 6,315 6,317 6,319 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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, 2020 199,825 $ 24.78 5.9 Yrs. $ 2,822 Granted — — — — Exercised ( 2,005 ) 19.25 5.8 Yrs. — Forfeited — — — Outstanding at June 30, 2020 197,820 $ 24.83 5.4 Yrs. $ 728 Exercisable at June 30, 2020 171,070 $ 23.08 4.8 Yrs. $ 728 |
Summary of Restricted Stock Activity | 2020 2019 Weighted-Average Weighted-Average Number of Grant Date Number of Grant Date Restricted Stock Fair Value Restricted Stock Fair Value Non-vested, January 1, 36,195 $ 36.23 34,615 $ 27.82 Granted — — — — Vested — — — — Forfeited — — — — Non-vested, June 30, 36,195 $ 36.23 34,615 $ 27.82 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 March 31, 2020 $ 4,277 Other comprehensive income before reclassification 505 Amount reclassified from accumulated other comprehensive loss - Total other comprehensive income 505 Balance as of June 30, 2020 $ 4,782 Unrealized gains (losses) on available for sale securities (a) Balance as of March 31, 2019 $ ( 2,077 ) Other comprehensive loss before reclassification 2,568 Amount reclassified from accumulated other comprehensive loss ( 51 ) Total other comprehensive loss 2,517 Balance as of June 30, 2019 $ 440 Unrealized gains (losses) on available for sale securities (a) Balance as of December 31, 2019 $ 1,187 Other comprehensive income before reclassification 3,625 Amount reclassified from accumulated other comprehensive income ( 30 ) Total other comprehensive income 3,595 Balance as of June 30, 2020 $ 4,782 Unrealized gains (losses) on available for sale securities (a) Balance as of December 31, 2018 $ ( 5,020 ) Other comprehensive loss before reclassification 5,511 Amount reclassified from accumulated other comprehensive loss ( 51 ) Total other comprehensive loss 5,460 Balance as of June 30, 2019 $ 440 (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 June 30, 2020 2019 Unrealized gains on available for sale securities $ — $ 64 Net realized gains on sales of securities — ( 13 ) Income tax expense $ — $ 51 Six months ended June 30, 2020 2019 Unrealized gains on available for sale securities $ 38 $ 64 Net realized gains on sales of securities ( 8 ) ( 13 ) Income tax expense $ 30 $ 51 (a) Amounts in parentheses indicate debits to net income |
Off-Balance Sheet Financial I_2
Off-Balance Sheet Financial Instruments and Guarantees (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Off-Balance Sheet Financial Instruments and Guarantees [Abstract] | |
Schedule of Fair Value, Off-balance Sheet Risks | (in thousands) June 30, 2020 2019 Commitments to grant loans $ 61,826 $ 49,936 Unfunded commitments under lines of credit 78,092 71,859 Standby letters of credit 4,065 4,305 $ 143,983 $ 126,100 |
Securities (Tables)
Securities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Securities [Abstract] | |
Schedule of Amortized Cost Gross Unrealized Gains and Losses, and Fair Values of Securities | June 30, 2020 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In Thousands) Available for Sale: States and political subdivisions $ 56,025 $ 1,881 $ — $ 57,906 Corporate obligations 3,057 36 — 3,093 Mortgage-backed securities- government sponsored entities 132,654 3,084 ( 2 ) 135,736 Total debt securities $ 191,736 $ 5,001 $ ( 2 ) $ 196,735 December 31, 2019 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In Thousands) Available for Sale: States and political subdivisions $ 70,015 $ 1,293 $ ( 3 ) $ 71,305 Corporate obligations 4,097 3 - 4,100 Mortgage-backed securities-government sponsored entities 135,646 238 ( 1,084 ) 134,800 Total debt securities $ 209,758 $ 1,534 $ ( 1,087 ) $ 210,205 |
Schedule of Investments' Gross Unrealized Losses and Fair Value Aggregated by Security Type and Length of Time that Individual Securities have been in a Continous Unrealized Loss Position | June 30, 2020 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Mortgage-backed securities-government sponsored entities $ 6,793 $ ( 2 ) $ — $ — $ 6,793 $ ( 2 ) $ 6,793 $ ( 2 ) $ — $ — $ 6,793 $ ( 2 ) December 31, 2019 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses States and political subdivisions $ 1,296 $ ( 2 ) $ 481 $ ( 1 ) $ 1,777 $ ( 3 ) Mortgage-backed securities-government sponsored entities 32,415 ( 241 ) 61,096 ( 843 ) 93,511 ( 1,084 ) $ 33,711 $ ( 243 ) $ 61,577 $ ( 844 ) $ 95,288 $ ( 1,087 ) |
Schedule of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity | Available for Sale Amortized Cost Fair Value (In Thousands) Due in one year or less $ 5,218 $ 5,260 Due after one year through five years 8,334 8,403 Due after five years through ten years 19,314 19,673 Due after ten years 26,216 27,663 59,082 60,999 Mortgage-backed securities-government sponsored entities 132,654 135,736 $ 191,736 $ 196,735 |
Gross Realized Gains and Losses on Sales of Securities Available-for-Sale | Three Months Six Months Ended June 30, Ended June 30, 2020 2019 2020 2019 Gross realized gains $ — $ 64 $ 38 $ 64 Gross realized losses — — — — Net realized gain $ — $ 64 $ 38 $ 64 Proceeds from sales of securities $ — $ 3,299 $ 8,224 $ 3,626 |
Loans Receivable and Allowanc_2
Loans Receivable and Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Loans Receivable and Allowance for Loan Losses [Abstract] | |
Composition of the Loan Portfolio | June 30, 2020 December 31, 2019 Real Estate Loans: Residential $ 226,120 22.8 % $ 229,781 24.9 % Commercial 398,813 40.3 391,327 42.3 Construction 15,182 1.5 17,732 1.9 Commercial loans 194,917 19.7 134,150 14.5 Consumer loans to individuals 155,696 15.7 151,686 16.4 Total loans 990,728 100.0 % 924,676 100.0 % Deferred fees, net ( 2,049 ) ( 95 ) Total loans receivable 988,679 924,581 Allowance for loan losses ( 10,312 ) ( 8,509 ) Net loans receivable $ 978,367 $ 916,072 |
Information Regarding Loans Acquired and Accounted for in Accordance With ASC 310-30 | June 30, 2020 December 31, 2019 Outstanding Balance $ 766 $ 793 Carrying Amount $ 669 $ 696 |
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 June 30, 2020 (In thousands) Individually evaluated for impairment $ — $ 2,093 $ — $ — $ — $ 2,093 Loans acquired with deteriorated credit quality 457 212 — — — 669 Collectively evaluated for impairment 225,663 396,508 15,182 194,917 155,696 987,966 Total Loans $ 226,120 $ 398,813 $ 15,182 $ 194,917 $ 155,696 $ 990,728 Real Estate Loans Commercial Consumer Residential Commercial Construction Loans Loans Total December 31, 2019 (In thousands) Individually evaluated for impairment $ - $ 2,144 $ - $ - $ - $ 2,144 Loans acquired with deteriorated credit quality 476 220 - - - 696 Collectively evaluated for impairment 229,305 388,963 17,732 134,150 151,686 921,836 Total Loans $ 229,781 $ 391,327 $ 17,732 $ 134,150 $ 151,686 $ 924,676 |
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 June 30, 2020 (in thousands) With no related allowance recorded: Real Estate Loans: Commercial $ 170 $ 370 $ — Subtotal 170 370 — With an allowance recorded: Real Estate Loans Commercial 1,923 1,956 392 Subtotal 1,923 1,956 392 Total: Real Estate Loans: Commercial 2,093 2,326 392 Total Impaired Loans $ 2,093 $ 2,326 $ 392 Unpaid Recorded Principal Associated Investment Balance Allowance December 31, 2019 (in thousands) With no related allowance recorded: Real Estate Loans: Commercial $ 143 $ 394 $ — Subtotal 143 394 — With an allowance recorded: Real Estate Loans Commercial 2,001 2,001 417 Subtotal 2,001 2,001 417 Total: Real Estate Loans: Commercial 2,144 2,395 417 Total Impaired Loans $ 2,144 $ 2,395 $ 417 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 June 30, 2020 and 2019, respectively (in thousands): Average Recorded Interest Income Investment Recognized 2020 2019 2020 2019 Real Estate Loans: Commercial 2,094 601 3 24 Total $ 2,094 $ 601 $ 3 $ 24 The following table presents the average recorded investment in impaired loans and the related amount of interest income recognized during the six-month periods ended June 30, 2020 and 2019, respectively (in thousands): Average Recorded Interest Income Investment Recognized 2020 2019 2020 2019 Real Estate Loans: Commercial 2,096 840 6 24 Total $ 2,096 $ 840 $ 6 $ 24 |
Classes of the Loan Portfolio Summarized by the Aggregate Risk Rating | Special Doubtful Pass Mention Substandard or Loss Total June 30, 2020 Commercial real estate loans $ 385,332 $ 10,413 $ 3,068 $ — $ 398,813 Commercial loans 194,475 273 169 — 194,917 Total $ 579,807 $ 10,686 $ 3,237 $ — $ 593,730 Special Doubtful Pass Mention Substandard or Loss Total December 31, 2019 Commercial real estate loans $ 376,109 $ 12,268 $ 2,950 $ — $ 391,327 Commercial loans 133,695 248 207 — 134,150 Total $ 509,804 $ 12,516 $ 3,157 $ — $ 525,477 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 June 30, 2020 and December 31, 2019 (in thousands): Performing Nonperforming Total June 30, 2020 Residential real estate loans $ 225,655 $ 465 $ 226,120 Construction 15,182 — 15,182 Consumer loans 155,405 291 155,696 Total $ 396,242 $ 756 $ 396,998 Performing Nonperforming Total December 31, 2019 Residential real estate loans $ 229,214 $ 567 $ 229,781 Construction 17,732 — 17,732 Consumer loans 151,607 79 151,686 Total $ 398,553 $ 646 $ 399,199 |
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 June 30, 2020 Real Estate loans Residential $ 225,328 $ 245 $ 82 $ - $ 465 $ 792 $ 226,120 Commercial 396,296 52 274 - 2,191 2,517 398,813 Construction 15,182 - - - - - 15,182 Commercial loans 194,823 69 - - 25 94 194,917 Consumer loans 155,265 97 43 - 291 431 155,696 Total $ 986,894 $ 463 $ 399 $ - $ 2,972 $ 3,834 $ 990,728 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, 2019 Real Estate loans Residential $ 228,242 $ 727 $ 245 $ - $ 567 $ 1,539 $ 229,781 Commercial 388,117 176 2,935 - 99 3,210 391,327 Construction 17,695 - 37 - - 37 17,732 Commercial loans 134,018 82 - - 50 132 134,150 Consumer loans 151,309 233 65 - 79 377 151,686 Total $ 919,381 $ 1,218 $ 3,282 $ - $ 795 $ 5,295 $ 924,676 |
Allowance for Loan Losses and Recorded Investment in Financing Receivables | (In thousands) Residential Real Estate Commercial Real Estate Construction Commercial Consumer Total Beginning balance, December 31, 2019 $ 1,552 $ 4,687 $ 95 $ 949 $ 1,226 $ 8,509 Charge Offs ( 1 ) ( 33 ) — ( 18 ) ( 192 ) ( 244 ) Recoveries 3 6 — 18 20 47 Provision for loan losses 98 1,419 ( 9 ) 127 365 2,000 Ending balance, June 30, 2020 $ 1,652 $ 6,079 $ 86 $ 1,076 $ 1,419 $ 10,312 Ending balance individually evaluated for impairment $ — $ 392 $ — $ — $ — $ 392 Ending balance collectively evaluated for impairment $ 1,652 $ 5,687 $ 86 $ 1,076 $ 1,419 $ 9,920 (In thousands) Residential Real Estate Commercial Real Estate Construction Commercial Consumer Total Beginning balance, March 31, 2020 $ 1,644 $ 4,915 $ 87 $ 1,064 $ 1,378 $ 9,088 Charge Offs - - - ( 18 ) ( 76 ) ( 94 ) Recoveries 1 2 - 8 7 18 Provision for loan losses 7 1,162 ( 1 ) 22 110 1,300 Ending balance, June 30, 2020 $ 1,652 $ 6,079 $ 86 $ 1,076 $ 1,419 $ 10,312 (In thousands) Residential Real Estate Commercial Real Estate Construction Commercial Consumer Total Beginning balance, December 31, 2018 $ 1,328 $ 5,455 $ 93 $ 712 $ 864 $ 8,452 Charge Offs ( 75 ) ( 615 ) — ( 234 ) ( 135 ) ( 1,059 ) Recoveries 15 14 — 21 35 85 Provision for loan losses 179 ( 160 ) 19 397 315 750 Ending balance, June 30, 2019 $ 1,447 $ 4,694 $ 112 $ 896 $ 1,079 $ 8,228 Ending balance individually evaluated for impairment $ — $ — $ — $ — $ — $ — Ending balance collectively evaluated for impairment $ 1,447 $ 4,694 $ 112 $ 896 $ 1,079 $ 8,228 |
Operating Leases (Tables)
Operating Leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Operating Leases [Abstract] | |
Lease Cost | Operating Weighted-average remaining term 12.7 Weighted-average discount rate 3.22 % |
Undiscounted Cash Flows Due | Undiscounted cash flows due (in thousands) Operating 2020 $ 267 2021 535 2022 535 2023 535 2024 544 2025 and thereafter 3,879 Total undiscounted cash flows 6,295 Discount on cash flows ( 1,162 ) Total lease liabilities $ 5,133 |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value of Assets and Liabilities [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | Fair Value Measurement Using Reporting Date Description Total Level 1 Level 2 Level 3 (In thousands) June 30, 2020 Available for Sale: States and political subdivisions $ 57,906 $ - $ 57,906 $ - Corporate obligations 3,093 - 3,093 - Mortgage-backed securities-government sponsored entities 135,736 - 135,736 - Total $ 196,735 $ - $ 196,735 $ - Description Total Level 1 Level 2 Level 3 (In thousands) December 31, 2019 Available for Sale: States and political subdivisions $ 71,305 $ - $ 71,305 $ - Corporate obligations 4,100 - 4,100 - Mortgage-backed securities-government sponsored entities 134,800 - 134,800 - Total $ 210,205 $ - $ 210,205 $ - |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis | Fair Value Measurement Using Reporting Date (In thousands) Description Total Level 1 Level 2 Level 3 June 30, 2020 Impaired Loans $ 1,531 $ - $ - $ 1,531 Foreclosed Real Estate Owned 965 - - 965 December 31, 2019 Impaired Loans $ 1,584 $ - $ - $ 1,584 Foreclosed Real Estate Owned 1,556 - - 1,556 |
Additional Qualitative Information about Level 3 Assets | Quantitative Information about Level 3 Fair Value Measurements (dollars in thousands) Fair Value Estimate Valuation Techniques Unobservable Input Range (Weighted Average) June 30, 2020 Impaired loans $ 1,531 Appraisal of collateral(1) Appraisal adjustments(2) 10.00 % ( 10.00 %) Foreclosed real estate owned $ 965 Appraisal of collateral(1) Liquidation Expenses(2) 7.00 % ( 7.00 %) Quantitative Information about Level 3 Fair Value Measurements (dollars in thousands) Fair Value Estimate Valuation Techniques Unobservable Input Range (Weighted Average) December 31, 2019 Impaired loans $ 1,531 Appraisal of collateral(1) Appraisal adjustments(2) 10.00 % ( 10.00 %) Impaired loans $ 53 Present value of future cash flows Loan discount rate 4.00 - 6.97 % ( 5.55 %) Probability of default 0% Foreclosed real estate owned $ 1,556 Appraisal of collateral(1) Liquidation Expenses(2) 0 - 7.00 % ( 4.34 %) (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 | Fair Value Measurements at June 30, 2020 Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents (1) $ 83,376 $ 83,376 $ 83,376 $ - $ - Loans receivable, net 978,367 1,049,959 - - 1,049,959 Mortgage servicing rights 168 168 - - 168 Regulatory stock (1) 3,677 3,677 3,677 - - Bank owned life insurance (1) 39,183 39,183 39,183 - - Accrued interest receivable (1) 4,383 4,383 4,383 - - Financial liabilities: Deposits 1,086,238 1,090,317 725,129 - 365,188 Short-term borrowings (1) 55,204 55,204 55,204 - - Other borrowings 50,823 51,997 - - 51,997 Accrued interest payable (1) 2,826 2,826 2,826 - - Off-balance sheet financial instruments: Commitments to extend credit and outstanding letters of credit - - - - - Fair Value Measurements at December 31, 2019 Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents (1) $ 15,415 $ 15,415 $ 15,415 $ - $ - Loans receivable, net 916,072 943,143 - - 943,143 Mortgage servicing rights 187 226 - - 226 Regulatory stock (1) 4,844 4,844 4,844 - - Bank owned life insurance (1) 38,763 38,763 38,763 - - Accrued interest receivable (1) 3,719 3,719 3,719 - - Financial liabilities: Deposits 957,529 961,120 596,811 - 364,309 Short-term borrowings (1) 62,256 62,256 62,256 - - Other borrowings 56,438 56,618 - - 56,618 Accrued interest payable (1) 2,432 2,432 2,432 - - Off-balance sheet financial instruments: Commitments to extend credit and outstanding letters of credit - - - - - (1) This financial instrument is carried at cost, which approximates the fair value of the instrument. |
Risks and Uncertainties (Tables
Risks and Uncertainties (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Risks and Uncertainties [Abstract] | |
Summary of Loan Forbearance | Loan Type Number of Loans Balance (in thousands) Real Estate Loans: Residential 112 $ 10,955 Commercial 225 152,610 Construction 15 5,174 Commercial, financial and agricultural 101 13,282 Consumer loans to individuals 465 10,924 Total 918 $ 192,945 |
Summary Of Loans That Remain In Forbearance | Loan Type Number of Loans Balance (in thousands) Real Estate Loans: Residential 105 $ 10,570 Commercial 213 144,206 Construction 6 4,174 Commercial, financial and agricultural 97 12,900 Consumer loans to individuals 442 10,443 Total 863 $ 182,293 |
Revenue Recognition (Noninteres
Revenue Recognition (Noninterest Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Noninterest Income (in scope of Topic 606) | $ 1,120 | $ 1,279 | $ 2,452 | $ 2,580 |
Net realized gains on sales of securities | 64 | 38 | 64 | |
Loan servicing fees | (5) | 24 | 16 | 39 |
Gain on sales of loans | 65 | 67 | 121 | 110 |
Earnings on and proceeds from bank-owned life insurance | 212 | 207 | 420 | 408 |
Noninterest Income (out-of-scope of Topic 606) | 272 | 362 | 595 | 621 |
Total other income | 1,392 | 1,641 | 3,047 | 3,201 |
Service Charges On Deposit Accounts [Member] | ||||
Noninterest Income (in scope of Topic 606) | 89 | 66 | 185 | 133 |
ATM Fees [Member] | ||||
Noninterest Income (in scope of Topic 606) | 104 | 91 | 199 | 181 |
Overdraft Fees [Member] | ||||
Noninterest Income (in scope of Topic 606) | 148 | 343 | 492 | 694 |
Safe Deposit Box Rental [Member] | ||||
Noninterest Income (in scope of Topic 606) | 24 | 23 | 54 | 49 |
Loan Related Service Fees [Member] | ||||
Noninterest Income (in scope of Topic 606) | 82 | 94 | 182 | 223 |
Debit Card [Member] | ||||
Noninterest Income (in scope of Topic 606) | 366 | 371 | 710 | 697 |
Fiduciary Activities [Member] | ||||
Noninterest Income (in scope of Topic 606) | 175 | 145 | 328 | 287 |
Commissions On Mutual Funds And Annuities [Member] | ||||
Noninterest Income (in scope of Topic 606) | 26 | 26 | 64 | 81 |
Other Income [Member] | ||||
Noninterest Income (in scope of Topic 606) | $ 106 | $ 120 | $ 238 | $ 235 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - $ / shares | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 82,600 | 0 | 82,600 | 0 | |
Share price | $ 24.79 | $ 34.81 | $ 24.79 | $ 34.81 | $ 38.90 |
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 | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Weighted average shares outstanding | 6,329 | 6,290 | 6,329 | 6,292 |
Less: Unvested restricted shares | (36) | (35) | (36) | (35) |
Basic EPS weighted average shares outstanding | 6,293 | 6,255 | 6,293 | 6,257 |
Add: Dilutive effect of stock options and restricted shares | 24 | 60 | 24 | 62 |
Diluted EPS weighted average shares outstanding | 6,317 | 6,315 | 6,317 | 6,319 |
Stock Based Compensation (Narra
Stock Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options, Granted | 0 | |||
Share price | $ 24.79 | $ 34.81 | $ 38.90 | |
Future compensation expense of non-vested restricted stock outstanding | $ 979 | |||
Non-vested restricted stock recognition period | 4 years 6 months | |||
Compensation expense related to stock options | $ 102 | $ 104 | ||
Non-vested stock outstanding | 36,195 | 34,615 | 36,195 | 34,615 |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost | $ 167 | $ 145 | ||
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 | $ 102 |
Stock Based Compensation (Summa
Stock Based Compensation (Summary of Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Stock Based Compensation [Abstract] | ||
Options, beginning of year | 199,825 | |
Options, Granted | 0 | |
Options, Exercised | (2,005) | |
Options, end of year | 197,820 | 199,825 |
Options, Exercisable, end of period | 171,070 | |
Weighted Average Exercise Price Per Share, Outstanding, beginning of period | $ 24.78 | |
Weighted Average Exercise Price Per Share, Granted | ||
Weighted Average Exercise Price Per Share, Exercised | 19.25 | |
Weighted Average Exercise Price Per Share, Outstanding, end of period | 24.83 | $ 24.78 |
Weighted Average Exercise Price Per Share, Exercisable, end of period | $ 23.08 | |
Weighted Average Remaining Contractual Term, Granted in Period | 5 years 9 months 18 days | |
Weighted Average Remaining Contractual Term, Outstanding | 5 years 4 months 24 days | 5 years 10 months 24 days |
Weighted Average Remaining Contractual Term, Exercisable at End of Period | 4 years 9 months 18 days | |
Aggregate Intrinsic Value, Outstanding, beginning of period | $ 2,822 | |
Aggregate Intrinsic Value, Granted in Period | 0 | |
Aggregate Intrinsic Value, Outstanding, end of period | 728 | $ 2,822 |
Aggregate Intrinsic Value, Exercisable at end of period | $ 728 |
Stock Based Compensation (Sum_2
Stock Based Compensation (Summary of Restricted Stock Activity) (Details) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Stock Based Compensation [Abstract] | |||
Restricted stock Non-vested, beginning balance | 36,195 | 34,615 | 34,615 |
Restricted stock Non-vested, ending balance | 36,195 | 36,195 | 34,615 |
Restricted stock Non-vested, weighted-average grant date fair value, beginning balance | $ 36.23 | $ 27.82 | $ 27.82 |
Restricted stock Non-vested, weighted-average grant date fair value, ending balance | $ 36.23 | $ 36.23 | $ 27.82 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Summary Of Changes In Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ 1,187 | |||
Other comprehensive income (loss) | $ 505 | $ 2,517 | 3,595 | $ 5,460 |
Ending balance | 4,782 | 4,782 | ||
Unrealized gains and losses on available-for-sale securities [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 4,277 | (2,077) | 1,187 | (5,020) |
Other comprehensive income (loss) before reclassification | 505 | 2,568 | 3,625 | 5,511 |
Other comprehensive income (loss) | 505 | 2,517 | 3,595 | 5,460 |
Ending balance | 4,782 | 440 | 4,782 | 440 |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss) | $ 505 | 2,517 | 3,595 | 5,460 |
Amount Reclassified From Accumulated Other Comprehensive Income (Loss) [Member] | Unrealized gains and losses on available-for-sale securities [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amount reclassified from accumulated other comprehensive (income) loss | $ (51) | $ (30) | $ (51) |
Accumulated Other Comprehensi_4
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 | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net realized gains on sales of securities | $ 64 | $ 38 | $ 64 | |
Income tax expense | $ (379) | (646) | (860) | (1,188) |
NET INCOME | $ 1,488 | 3,522 | 4,567 | 6,712 |
Amount Reclassified From Accumulated Other Comprehensive Income (Loss) [Member] | Unrealized gains and losses on available-for-sale securities [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net realized gains on sales of securities | 64 | 38 | 64 | |
Income tax expense | (13) | (8) | (13) | |
NET INCOME | $ 51 | $ 30 | $ 51 |
Off-Balance Sheet Financial I_3
Off-Balance Sheet Financial Instruments and Guarantees (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Jun. 30, 2019 |
Loss Contingencies [Line Items] | ||
Financial instrument commitments | $ 143,983 | $ 126,100 |
Commitments to grant loans [Member] | ||
Loss Contingencies [Line Items] | ||
Financial instrument commitments | 61,826 | 49,936 |
Unfunded commitments under lines of credit [Member] | ||
Loss Contingencies [Line Items] | ||
Financial instrument commitments | 78,092 | 71,859 |
Standby letters of credit [Member] | ||
Loss Contingencies [Line Items] | ||
Financial instrument commitments | $ 4,065 | $ 4,305 |
Securities (Narrative) (Details
Securities (Narrative) (Details) | 6 Months Ended | |
Jun. 30, 2020USD ($)security | Jun. 30, 2019USD ($) | |
Securities [Abstract] | ||
Debt securities in unrealized loss position in the less than twelve months category | security | 5 | |
Debt securities in unrealized loss position in the twelve months or more category | security | 0 | |
Impairment of investments | $ | $ 0 | |
Pledged Financial Instruments, Not Separately Reported, Securities | $ | $ 163,150,000 | $ 196,986,000 |
Securities (Schedule of Amortiz
Securities (Schedule of Amortized Cost Gross Unrealized Gains and Losses, and Fair Values of Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Schedule of Investments [Line Items] | ||
Available for Sale, Fair Value | $ 196,735 | $ 210,205 |
Fixed income [Member] | ||
Schedule of Investments [Line Items] | ||
Available for Sale, Amortized Cost | 191,736 | 209,758 |
Available for Sale, Gross Unrealized Gains | 5,001 | 1,534 |
Available for Sale, Gross Unrealized Losses | (2) | (1,087) |
Available for Sale, Fair Value | 196,735 | 210,205 |
States And Political Subdivisions [Member] | ||
Schedule of Investments [Line Items] | ||
Available for Sale, Amortized Cost | 56,025 | 70,015 |
Available for Sale, Gross Unrealized Gains | 1,881 | 1,293 |
Available for Sale, Gross Unrealized Losses | (3) | |
Available for Sale, Fair Value | 57,906 | 71,305 |
Corporate Obligations [Member] | ||
Schedule of Investments [Line Items] | ||
Available for Sale, Amortized Cost | 3,057 | 4,097 |
Available for Sale, Gross Unrealized Gains | 36 | 3 |
Available for Sale, Fair Value | 3,093 | 4,100 |
Mortgage-backed Securities-Government Sponsored Entities [Member] | ||
Schedule of Investments [Line Items] | ||
Available for Sale, Amortized Cost | 132,654 | 135,646 |
Available for Sale, Gross Unrealized Gains | 3,084 | 238 |
Available for Sale, Gross Unrealized Losses | (2) | (1,084) |
Available for Sale, Fair Value | $ 135,736 | $ 134,800 |
Securities (Schedule of Investm
Securities (Schedule of Investments' Gross Unrealized Losses and Fair Value Aggregated by Security Type and Length of Time that Individual Securities have been in a Continuous Unrealized Loss Position) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Schedule of Investments [Line Items] | ||
Less than 12 Months, Fair Value | $ 6,793 | $ 33,711 |
Less than 12 Months, Unrealized Losses | (2) | (243) |
12 Months or More, Fair Value | 61,577 | |
12 Months or More, Unrealized Losses | (844) | |
Total, Fair Value | 6,793 | 95,288 |
Total, Unrealized Losses | (2) | (1,087) |
States And Political Subdivisions [Member] | ||
Schedule of Investments [Line Items] | ||
Less than 12 Months, Fair Value | 1,296 | |
Less than 12 Months, Unrealized Losses | (2) | |
12 Months or More, Fair Value | 481 | |
12 Months or More, Unrealized Losses | (1) | |
Total, Fair Value | 1,777 | |
Total, Unrealized Losses | (3) | |
Mortgage-backed Securities-Government Sponsored Entities [Member] | ||
Schedule of Investments [Line Items] | ||
Less than 12 Months, Fair Value | 6,793 | 32,415 |
Less than 12 Months, Unrealized Losses | (2) | (241) |
12 Months or More, Fair Value | 61,096 | |
12 Months or More, Unrealized Losses | (843) | |
Total, Fair Value | 6,793 | 93,511 |
Total, Unrealized Losses | $ (2) | $ (1,084) |
Securities (Schedule of Amort_2
Securities (Schedule of Amortized Cost and Fair Value Of Debt Securities by Contractual Maturity) (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Securities [Abstract] | |
Available for Sale, Amortized Cost, Due in one year or less | $ 5,218 |
Available for Sale, Amortized Cost, Due after one year through five years | 8,334 |
Available for Sale, Amortized Cost, Due after five years through ten years | 19,314 |
Available for Sale, Amortized Cost, Due after ten years | 26,216 |
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis, Total | 59,082 |
Available for Sale, Amortized Cost, Mortgage-backed securities-government sponsored agencies | 132,654 |
Available for Sale, Amortized Cost, Total | 191,736 |
Available for Sale, Fair Value, Due in one year or less | 5,260 |
Available for Sale, Fair Value, Due after one year through five years | 8,403 |
Available for Sale, Fair Value, Due after five years through ten years | 19,673 |
Available for Sale, Fair Value, Due after ten years | 27,663 |
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Total | 60,999 |
Available for Sale, Fair Value, Mortgage-backed securities-government sponsored agencies | 135,736 |
Available for Sale, Fair Value, Total | $ 196,735 |
Securities (Gross Realized Gain
Securities (Gross Realized Gains and Losses on Sales of Securities Available-for-Sale) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Securities [Abstract] | |||
Gross realized gains | $ 64 | $ 38 | $ 64 |
Net realized gain | 64 | 38 | 64 |
Proceeds from sale of securities | $ 3,299 | $ 8,224 | $ 3,626 |
Loans Receivable and Allowanc_3
Loans Receivable and Allowance for Loan Losses (Narrative) (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020USD ($)propertyloan | Dec. 31, 2019USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Impaired Financing Receivable, Related Allowance | $ 417,000 | |
Real Estate Acquired Through Foreclosure | $ 965,000 | 1,556,000 |
Loans and Leases Receivable, Gross | 990,728,000 | $ 924,676,000 |
Allowance for Loan and Lease Losses, Adjustments, Other | (908,000) | |
Allowance for Loan and Lease Losses, Period Increase (Decrease) | $ 1,700,000 | |
Loan growth | 3.00% | 8.75% |
Outstanding Balance | $ 766,000 | $ 793,000 |
Multiple Properties [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Real Estate Acquired Through Foreclosure | $ 591,000 | |
Number Of Properties Disposed By Sale | property | 1 | |
Commercial Rentals [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | $ 89,100,000 | |
Commercial Rentals [Member] | Loans Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration Risk, Percentage | 9.00% | |
Hospitality Lodging Industry [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | $ 67,300,000 | |
Hospitality Lodging Industry [Member] | Loans Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration Risk, Percentage | 6.80% | |
Property [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down | $ 33,000 | |
Residential Real Estate Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number Of Properties Under Foreclosure Proceedings | property | 3 | |
Mortgage Loans in Process of Foreclosure, Amount | $ 59,000 | |
Loans and Leases Receivable, Gross | 226,120,000 | 229,781,000 |
Commercial Real Estate Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 398,813,000 | 391,327,000 |
Troubled Debt Restructured Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Impaired Financing Receivable, Related Allowance | $ 0 | 0 |
New Loans Identified as Troubled Debt Restructurings, Number of Loans | loan | 0 | |
Financing Receivable, Troubled Debt Restructuring | $ 93,000 | $ 99,000 |
PPP Loan [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 67,300,000 | |
Fee income | 2,400,000 | |
Delaware Bancshares, Inc. Acquisition [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assets, Fair Value Adjustment | 499,000 | |
Outstanding Balance | 1,397,000 | |
Minimum [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Annual Loan Review threshold, amount | 1,500,000 | |
COVID [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for Loan and Lease Losses, Period Increase (Decrease) | $ 1,000,000 |
Loans Receivable and Allowanc_4
Loans Receivable and Allowance for Loan Losses (Composition of the Loan Portfolio) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | $ 990,728 | $ 924,676 | ||||
Deferred fees, net | (2,049) | (95) | ||||
Total loans receivable | 988,679 | 924,581 | ||||
Allowance for loan losses | (10,312) | $ (9,088) | (8,509) | $ (8,228) | $ (8,349) | $ (8,452) |
Net loans receivable | $ 978,367 | $ 916,072 | ||||
Percent of Loans | 100.00% | 100.00% | ||||
Residential Real Estate Loans [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | $ 226,120 | $ 229,781 | ||||
Allowance for loan losses | $ (1,652) | (1,644) | $ (1,552) | (1,447) | (1,455) | (1,328) |
Percent of Loans | 22.80% | 24.90% | ||||
Commercial Real Estate Loans [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | $ 398,813 | $ 391,327 | ||||
Allowance for loan losses | $ (6,079) | (4,915) | $ (4,687) | (4,694) | (4,947) | (5,455) |
Percent of Loans | 40.30% | 42.30% | ||||
Construction Real Estate Loans [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | $ 15,182 | $ 17,732 | ||||
Allowance for loan losses | $ (86) | (87) | $ (95) | (112) | (108) | (93) |
Percent of Loans | 1.50% | 1.90% | ||||
Commercial [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | $ 194,917 | $ 134,150 | ||||
Allowance for loan losses | $ (1,076) | (1,064) | $ (949) | (896) | (811) | (712) |
Percent of Loans | 19.70% | 14.50% | ||||
Consumer Loans To Individuals [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | $ 155,696 | $ 151,686 | ||||
Allowance for loan losses | $ (1,419) | $ (1,378) | $ (1,226) | $ (1,079) | $ (1,028) | $ (864) |
Percent of Loans | 15.70% | 16.40% |
Loans Receivable and Allowanc_5
Loans Receivable and Allowance for Loan Losses (Information Regarding Loans Acquired and Accounted for in Accordance with ASC 310-30) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Loans Receivable and Allowance for Loan Losses [Abstract] | ||
Outstanding Balance | $ 766 | $ 793 |
Carrying Amount | $ 669 | $ 696 |
Loans Receivable and Allowanc_6
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 | Jun. 30, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | $ 2,093 | $ 2,144 |
Loans acquired with deteriorated credit quality | 669 | 696 |
Collectively evaluated for impairment | 987,966 | 921,836 |
Total Loans | 990,728 | 924,676 |
Residential Real Estate Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 0 | 0 |
Loans acquired with deteriorated credit quality | 457 | 476 |
Collectively evaluated for impairment | 225,663 | 229,305 |
Total Loans | 226,120 | 229,781 |
Commercial Real Estate Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 2,093 | 2,144 |
Loans acquired with deteriorated credit quality | 212 | 220 |
Collectively evaluated for impairment | 396,508 | 388,963 |
Total Loans | 398,813 | 391,327 |
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 | 15,182 | 17,732 |
Total Loans | 15,182 | 17,732 |
Commercial [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 | 194,917 | 134,150 |
Total Loans | 194,917 | 134,150 |
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 | 155,696 | 151,686 |
Total Loans | $ 155,696 | $ 151,686 |
Loans Receivable and Allowanc_7
Loans Receivable and Allowance for Loan Losses (Impaired Loans and Related Interest Income by Loan Portfolio Class) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Financing Receivable, Impaired [Line Items] | |||||
Associated Allowance | $ 417 | ||||
Average Recorded Investment, Total | $ 2,094 | $ 601 | $ 2,096 | $ 840 | |
Interest Income Recognized, Total | 3 | 24 | 6 | 24 | |
Impaired Loans [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 170 | 170 | 143 | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 1,923 | 1,923 | 2,001 | ||
Impaired Financing Receivable, Recorded Investment | 2,093 | 2,093 | 2,144 | ||
Unpaid Principal Balance, With no related allowance recorded | 370 | 370 | 394 | ||
Unpaid Principal Balance, With an allowance recorded | 1,956 | 1,956 | 2,001 | ||
Unpaid Principal Balance, Total | 2,326 | 2,326 | 2,395 | ||
Associated Allowance | 392 | 392 | 417 | ||
Commercial [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Associated Allowance | 417 | ||||
Average Recorded Investment, Total | 2,096 | 840 | |||
Interest Income Recognized, Total | 6 | $ 24 | |||
Commercial [Member] | Impaired Loans [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 2,001 | ||||
Unpaid Principal Balance, With an allowance recorded | 2,001 | ||||
Commercial Real Estate Loans [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Average Recorded Investment, Total | 2,094 | 601 | |||
Interest Income Recognized, Total | 3 | $ 24 | |||
Commercial Real Estate Loans [Member] | Impaired Loans [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 170 | 170 | 143 | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 1,923 | 1,923 | |||
Impaired Financing Receivable, Recorded Investment | 2,093 | 2,093 | 2,144 | ||
Unpaid Principal Balance, With no related allowance recorded | 370 | 370 | 394 | ||
Unpaid Principal Balance, With an allowance recorded | 1,956 | 1,956 | |||
Unpaid Principal Balance, Total | 2,326 | 2,326 | 2,395 | ||
Associated Allowance | $ 392 | $ 392 | $ 417 |
Loans Receivable and Allowanc_8
Loans Receivable and Allowance for Loan Losses (Classes of the Loan Portfolio Summarized by the Aggregate Risk Rating) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | $ 396,998 | $ 399,199 |
Total Summarized by Aggregate Risk Rating [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 593,730 | 525,477 |
Pass [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 579,807 | 509,804 |
Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 10,686 | 12,516 |
Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 3,237 | 3,157 |
Doubtful Or Loss [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 0 | |
Performing [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 396,242 | 398,553 |
Nonperforming [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 756 | 646 |
Commercial Real Estate Loans [Member] | Total Summarized by Aggregate Risk Rating [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 398,813 | 391,327 |
Commercial Real Estate Loans [Member] | Pass [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 385,332 | 376,109 |
Commercial Real Estate Loans [Member] | Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 10,413 | 12,268 |
Commercial Real Estate Loans [Member] | Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 3,068 | 2,950 |
Commercial Real Estate Loans [Member] | Doubtful Or Loss [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 0 | |
Commercial [Member] | Total Summarized by Aggregate Risk Rating [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 194,917 | 134,150 |
Commercial [Member] | Pass [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 194,475 | 133,695 |
Commercial [Member] | Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 273 | 248 |
Commercial [Member] | Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 169 | 207 |
Commercial [Member] | Doubtful Or Loss [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 0 | |
Residential Real Estate Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 226,120 | 229,781 |
Residential Real Estate Loans [Member] | Performing [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 225,655 | 229,214 |
Residential Real Estate Loans [Member] | Nonperforming [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 465 | 567 |
Construction Real Estate Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 15,182 | 17,732 |
Construction Real Estate Loans [Member] | Performing [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 15,182 | 17,732 |
Consumer Loans To Individuals [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 155,696 | 151,686 |
Consumer Loans To Individuals [Member] | Performing [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 155,405 | 151,607 |
Consumer Loans To Individuals [Member] | Nonperforming [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | $ 291 | $ 79 |
Loans Receivable and Allowanc_9
Loans Receivable and Allowance for Loan Losses (Loan Portfolio Summarized by the Past Due Status) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||
Current | $ 986,894 | $ 919,381 |
Non-Accrual | 2,972 | 795 |
Total Past Due and Non-Accrual | 3,834 | 5,295 |
Total Loans | 990,728 | 924,676 |
Financing Receivables, 31 to 60 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 463 | 1,218 |
Financing Receivables, 61 to 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 399 | 3,282 |
Financing Receivables, Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Residential Real Estate Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 225,328 | 228,242 |
Non-Accrual | 465 | 567 |
Total Past Due and Non-Accrual | 792 | 1,539 |
Total Loans | 226,120 | 229,781 |
Residential Real Estate Loans [Member] | Financing Receivables, 31 to 60 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 245 | 727 |
Residential Real Estate Loans [Member] | Financing Receivables, 61 to 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 82 | 245 |
Residential Real Estate Loans [Member] | Financing Receivables, Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial Real Estate Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 396,296 | 388,117 |
Non-Accrual | 2,191 | 99 |
Total Past Due and Non-Accrual | 2,517 | 3,210 |
Total Loans | 398,813 | 391,327 |
Commercial Real Estate Loans [Member] | Financing Receivables, 31 to 60 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 52 | 176 |
Commercial Real Estate Loans [Member] | Financing Receivables, 61 to 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 274 | 2,935 |
Commercial Real Estate Loans [Member] | Financing Receivables, Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Construction Real Estate Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 15,182 | 17,695 |
Non-Accrual | 0 | 0 |
Total Past Due and Non-Accrual | 0 | 37 |
Total Loans | 15,182 | 17,732 |
Construction Real Estate Loans [Member] | Financing Receivables, 31 to 60 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Construction Real Estate Loans [Member] | Financing Receivables, 61 to 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 37 |
Construction Real Estate Loans [Member] | Financing Receivables, Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 194,823 | 134,018 |
Non-Accrual | 25 | 50 |
Total Past Due and Non-Accrual | 94 | 132 |
Total Loans | 194,917 | 134,150 |
Commercial [Member] | Financing Receivables, 31 to 60 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 69 | 82 |
Commercial [Member] | Financing Receivables, 61 to 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial [Member] | Financing Receivables, Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Consumer Loans To Individuals [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 155,265 | 151,309 |
Non-Accrual | 291 | 79 |
Total Past Due and Non-Accrual | 431 | 377 |
Total Loans | 155,696 | 151,686 |
Consumer Loans To Individuals [Member] | Financing Receivables, 31 to 60 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 97 | 233 |
Consumer Loans To Individuals [Member] | Financing Receivables, 61 to 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 43 | 65 |
Consumer Loans To Individuals [Member] | Financing Receivables, Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | $ 0 | $ 0 |
Loans Receivable and Allowan_10
Loans Receivable and Allowance for Loan Losses (Allowance for Loan Losses and Recorded Investment in Financing Receivables) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Beginning balance, | $ 9,088 | $ 8,349 | $ 8,509 | $ 8,452 |
Charge Offs | (94) | (461) | (244) | (1,059) |
Recoveries | 18 | 40 | 47 | 85 |
Provision for loan losses | 1,300 | 300 | 2,000 | 750 |
Ending balance, | 10,312 | 8,228 | 10,312 | 8,228 |
Ending balance individually evaluated for impairment | 392 | 392 | ||
Ending balance collectively evaluated for impairment | 9,920 | 8,228 | 9,920 | 8,228 |
Residential Real Estate Loans [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Beginning balance, | 1,644 | 1,455 | 1,552 | 1,328 |
Charge Offs | (10) | (1) | (75) | |
Recoveries | 1 | 4 | 3 | 15 |
Provision for loan losses | 7 | (2) | 98 | 179 |
Ending balance, | 1,652 | 1,447 | 1,652 | 1,447 |
Ending balance collectively evaluated for impairment | 1,652 | 1,447 | 1,652 | 1,447 |
Commercial Real Estate Loans [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Beginning balance, | 4,915 | 4,947 | 4,687 | 5,455 |
Charge Offs | (146) | (33) | (615) | |
Recoveries | 2 | 4 | 6 | 14 |
Provision for loan losses | 1,162 | (111) | 1,419 | (160) |
Ending balance, | 6,079 | 4,694 | 6,079 | 4,694 |
Ending balance individually evaluated for impairment | 392 | 392 | ||
Ending balance collectively evaluated for impairment | 5,687 | 4,694 | 5,687 | 4,694 |
Construction Real Estate Loans [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Beginning balance, | 87 | 108 | 95 | 93 |
Provision for loan losses | (1) | 4 | (9) | 19 |
Ending balance, | 86 | 112 | 86 | 112 |
Ending balance collectively evaluated for impairment | 86 | 112 | 86 | 112 |
Commercial [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Beginning balance, | 1,064 | 811 | 949 | 712 |
Charge Offs | (18) | (233) | (18) | (234) |
Recoveries | 8 | 11 | 18 | 21 |
Provision for loan losses | 22 | 307 | 127 | 397 |
Ending balance, | 1,076 | 896 | 1,076 | 896 |
Ending balance collectively evaluated for impairment | 1,076 | 896 | 1,076 | 896 |
Consumer Loans To Individuals [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Beginning balance, | 1,378 | 1,028 | 1,226 | 864 |
Charge Offs | (76) | (72) | (192) | (135) |
Recoveries | 7 | 21 | 20 | 35 |
Provision for loan losses | 110 | 102 | 365 | 315 |
Ending balance, | 1,419 | 1,079 | 1,419 | 1,079 |
Ending balance collectively evaluated for impairment | $ 1,419 | $ 1,079 | $ 1,419 | $ 1,079 |
Operating Leases (Narrative) (D
Operating Leases (Narrative) (Details) | 6 Months Ended | |
Jun. 30, 2020USD ($)item | Jun. 30, 2019USD ($) | |
Operating Leases [Abstract] | ||
Number of operating leases | item | 7 | |
Lease, Cost | $ | $ 280,000 | $ 255,000 |
Operating Leases (Lease Cost) (
Operating Leases (Lease Cost) (Details) | Jun. 30, 2020 |
Operating Leases [Abstract] | |
Weighted-average remaining term | 12 years 8 months 12 days |
Weighted-average discount rate | 3.22% |
Operating Leases (Undiscounted
Operating Leases (Undiscounted Cash Flows Due) (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Operating Leases [Abstract] | |
2020 | $ 267 |
2021 | 535 |
2022 | 535 |
2023 | 535 |
2024 | 544 |
2025 and thereafter | 3,879 |
Total undiscounted cash flows | 6,295 |
Discount on cash flows | (1,162) |
Total lease liabilities | $ 5,133 |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities (Narrative) (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020USD ($)loan | Dec. 31, 2019USD ($)loan | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of impaired loans not requiring a valuation allowance | loan | 2 | |
Impaired Loans, Cumulative Charge-Offs | $ 33,000 | $ 0 |
Number of impaired loans requiring a valuation allowance | loan | 1 | |
Impaired Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 1,531,000 | 1,584,000 |
Valuation allowance | $ 392,000 | $ 417,000 |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities (Fair Value, Assets Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ 196,735 | $ 210,205 |
Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 196,735 | 210,205 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 196,735 | 210,205 |
States And Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 57,906 | 71,305 |
States And Political Subdivisions [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 57,906 | 71,305 |
States And Political Subdivisions [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 57,906 | 71,305 |
Corporate Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 3,093 | 4,100 |
Corporate Obligations [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 3,093 | 4,100 |
Corporate Obligations [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 3,093 | 4,100 |
Mortgage-backed Securities-Government Sponsored Entities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 135,736 | 134,800 |
Mortgage-backed Securities-Government Sponsored Entities [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 135,736 | 134,800 |
Mortgage-backed Securities-Government Sponsored Entities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ 135,736 | $ 134,800 |
Fair Value of Assets and Liab_5
Fair Value of Assets and Liabilities (Fair Value, Assets and Liabilities Measured on Nonrecurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Impaired Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 1,531 | $ 1,584 |
Fair Value, Nonrecurring [Member] | Impaired Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 1,531 | 1,584 |
Fair Value, Nonrecurring [Member] | Impaired Loans [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 1,531 | 1,584 |
Fair Value, Nonrecurring [Member] | Foreclosed Real Estate Owned [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 965 | 1,556 |
Fair Value, Nonrecurring [Member] | Foreclosed Real Estate Owned [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 965 | $ 1,556 |
Fair Value of Assets and Liab_6
Fair Value of Assets and Liabilities (Additional Qualitative Information about Level 3 Assets) (Details) $ in Thousands | Jun. 30, 2020USD ($)item | Dec. 31, 2019USD ($)item |
Impaired Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ | $ 1,531 | $ 1,584 |
Impaired Loans [Member] | Appraisal of collateral [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ | $ 1,531 | $ 1,531 |
Impaired Loans [Member] | Appraisal of collateral [Member] | Measurement Input, Appraised Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Asset, Measurement Input | 0.1000 | 0.1000 |
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 | $ | $ 53 | |
Impaired Loans [Member] | Minimum [Member] | Present value of future cash flows [Member] | Measurement Input, Discount Rate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Asset, Measurement Input | 0.0400 | |
Impaired Loans [Member] | Maximum [Member] | Present value of future cash flows [Member] | Measurement Input, Discount Rate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Asset, Measurement Input | 0.0697 | |
Impaired Loans [Member] | Weighted Average [Member] | Appraisal of collateral [Member] | Measurement Input, Appraised Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Asset, Measurement Input | 0.1000 | 0.1000 |
Impaired Loans [Member] | Weighted Average [Member] | Present value of future cash flows [Member] | Measurement Input, Discount Rate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Asset, Measurement Input | 0.0555 | |
Other 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 | $ | $ 965 | $ 1,556 |
Other Real Estate Owned [Member] | Appraisal of collateral [Member] | Measurement Input, Cost to Sell [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Real Estate Owned, Measurement Input | 0.0700 | |
Other Real Estate Owned [Member] | Minimum [Member] | Appraisal of collateral [Member] | Measurement Input, Cost to Sell [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Real Estate Owned, Measurement Input | 0 | |
Other Real Estate Owned [Member] | Maximum [Member] | Appraisal of collateral [Member] | Measurement Input, Cost to Sell [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Real Estate Owned, Measurement Input | 0.0700 | |
Other Real Estate Owned [Member] | Weighted Average [Member] | Appraisal of collateral [Member] | Measurement Input, Cost to Sell [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Real Estate Owned, Measurement Input | 0.0700 | 0.0434 |
Fair Value of Assets and Liab_7
Fair Value of Assets and Liabilities (Fair Value, by Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial assets: Cash and cash equivalents, Fair Value Disclosure | $ 83,376 | $ 15,415 | ||
Financial assets: Loans receivable, net, Fair Value Disclosure | 1,049,959 | 943,143 | ||
Financial assets: Mortgage servicing rights, Fair Value Disclosure | 168 | 226 | ||
Financial assets: Regulatory stock, Fair Value Disclosure | 3,677 | 4,844 | ||
Financial assets: Bank owned life insurance, Fair Value Disclosure | 39,183 | 38,763 | ||
Financial assets: Accrued interest receivable, Fair Value Disclosure | 4,383 | 3,719 | ||
Financial liabilities: Deposits, Fair Value Disclosure | 1,090,317 | 961,120 | ||
Financial liabilities: Short-term borrowings, Fair Value Disclosure | 55,204 | 62,256 | ||
Financial liabilities: Other borrowings, Fair Value Disclosure | 51,997 | 56,618 | ||
Financial liabilities: Accrued interest payable, Fair Value Disclosure | 2,826 | 2,432 | ||
Off-balance sheet financial instruments: Commitments to extend credit and outstanding letters of credit, Fair Value Disclosure | 0 | |||
Financial assets: Cash and cash equivalents | 83,376 | 15,415 | $ 18,472 | $ 18,348 |
Financial assets: Loans receivable, net | 978,367 | 916,072 | ||
Financial assets: Mortgage servicing rights | 168 | 187 | ||
Financial assets: Regulatory stock | 3,677 | 4,844 | ||
Financial assets: Bank owned life insurance | 39,183 | 38,763 | ||
Financial assets: Accrued interest receivable | 4,383 | 3,719 | ||
Financial liabilities: Deposits | 1,086,238 | 957,529 | ||
Financial liabilities: Short-term borrowings | 55,204 | 62,256 | ||
Financial liabilities: Other borrowings | 50,823 | 56,438 | ||
Financial liabilities: Accrued interest payable | 2,826 | 2,432 | ||
Off-balance sheet financial instruments: Commitments to extend credit and outstanding letters of credit | 0 | |||
Fair Value, Inputs, 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 | 83,376 | 15,415 | ||
Financial assets: Regulatory stock, Fair Value Disclosure | 3,677 | 4,844 | ||
Financial assets: Bank owned life insurance, Fair Value Disclosure | 39,183 | 38,763 | ||
Financial assets: Accrued interest receivable, Fair Value Disclosure | 4,383 | 3,719 | ||
Financial liabilities: Deposits, Fair Value Disclosure | 725,129 | 596,811 | ||
Financial liabilities: Short-term borrowings, Fair Value Disclosure | 55,204 | 62,256 | ||
Financial liabilities: Accrued interest payable, Fair Value Disclosure | 2,826 | 2,432 | ||
Off-balance sheet financial instruments: Commitments to extend credit and outstanding letters of credit, Fair Value Disclosure | 0 | |||
Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Off-balance sheet financial instruments: Commitments to extend credit and outstanding letters of credit, Fair Value Disclosure | 0 | |||
Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial assets: Loans receivable, net, Fair Value Disclosure | 1,049,959 | 943,143 | ||
Financial assets: Mortgage servicing rights, Fair Value Disclosure | 168 | 226 | ||
Financial liabilities: Deposits, Fair Value Disclosure | 365,188 | 364,309 | ||
Financial liabilities: Other borrowings, Fair Value Disclosure | $ 51,997 | 56,618 | ||
Off-balance sheet financial instruments: Commitments to extend credit and outstanding letters of credit, Fair Value Disclosure | $ 0 |
Proposed Acquisition of UpState
Proposed Acquisition of UpState New York Bancorp, Inc. (Details) - USD ($) | 3 Months Ended | ||||||
Jun. 30, 2020 | Mar. 31, 2020 | Jan. 08, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | |||||||
Total Assets | $ 1,354,541,000 | $ 1,230,610,000 | |||||
Deposits | 1,086,238,000 | 957,529,000 | |||||
Stockholders’ equity | $ 142,664,000 | $ 142,187,000 | $ 137,428,000 | $ 131,483,000 | $ 126,772,000 | $ 122,285,000 | |
UpState New York Bancorp, Inc. [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Total Assets | 443,800,000 | ||||||
Deposits | 393,900,000 | ||||||
Stockholders’ equity | $ 46,500,000 | ||||||
Conversion of shares | 0.9390 | ||||||
Cash paid per share | $ 0.67 | $ 33.33 | |||||
Percent exchanged for stock | 90.00% | ||||||
Percent exchanged for cash | 10.00% | ||||||
Payments to Acquire Businesses, Gross | $ 8,845,198 | ||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 1,865,738 |
Risks and Uncertainties (Narrat
Risks and Uncertainties (Narrative) (Details) $ in Millions | Apr. 30, 2020USD ($)loan |
Risks and Uncertainties [Abstract] | |
Number of applications | loan | 746 |
PPP loans | $ | $ 67.3 |
CARES Act, Number Of Deferrals | loan | 112 |
CARES Act, Amount Of Mortgage Payment Deferrals | $ | $ 11 |
CARES Act, Number Of Requests To Modify Loans | loan | 918 |
CARES Act, Deferred Principal And Interest | $ | $ 192.9 |
Risks and Uncertainties (Summar
Risks and Uncertainties (Summary of Loan Forbearance) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($)loan | |
Risks And Uncertainties [Line Items] | |
Number of Loans | loan | 465 |
Balance | $ | $ 10,924 |
Commercial Real Estate Loans [Member] | |
Risks And Uncertainties [Line Items] | |
Number of Loans | loan | 112 |
Balance | $ | $ 10,955 |
Construction Real Estate Loans [Member] | |
Risks And Uncertainties [Line Items] | |
Number of Loans | loan | 225 |
Balance | $ | $ 152,610 |
Commercial, Financial And Agricultural [Member] | |
Risks And Uncertainties [Line Items] | |
Number of Loans | loan | 15 |
Balance | $ | $ 5,174 |
Consumer Loans To Individuals [Member] | |
Risks And Uncertainties [Line Items] | |
Number of Loans | loan | 101 |
Balance | $ | $ 13,282 |
Risks and Uncertainties (Summ_2
Risks and Uncertainties (Summary Of Loans That Remain In Forbearance) (Details) $ in Thousands | Jun. 30, 2020USD ($)loan |
Risks And Uncertainties [Line Items] | |
Number Of Remaining Loans In Forbearance | loan | 863 |
Loans Remaining In Forbearance | $ | $ 182,293 |
Residential Real Estate Loans [Member] | |
Risks And Uncertainties [Line Items] | |
Number Of Remaining Loans In Forbearance | loan | 105 |
Loans Remaining In Forbearance | $ | $ 10,570 |
Commercial Real Estate Loans [Member] | |
Risks And Uncertainties [Line Items] | |
Number Of Remaining Loans In Forbearance | loan | 213 |
Loans Remaining In Forbearance | $ | $ 144,206 |
Construction Real Estate Loans [Member] | |
Risks And Uncertainties [Line Items] | |
Number Of Remaining Loans In Forbearance | loan | 6 |
Loans Remaining In Forbearance | $ | $ 4,174 |
Commercial, Financial And Agricultural [Member] | |
Risks And Uncertainties [Line Items] | |
Number Of Remaining Loans In Forbearance | loan | 97 |
Loans Remaining In Forbearance | $ | $ 12,900 |
Consumer Loans To Individuals [Member] | |
Risks And Uncertainties [Line Items] | |
Number Of Remaining Loans In Forbearance | loan | 442 |
Loans Remaining In Forbearance | $ | $ 10,443 |