Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 06, 2018 | |
Document And Entity Information | ||
Entity Registrant Name | STEWARDSHIP FINANCIAL CORP | |
Entity Central Index Key | 1,023,860 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 8,678,082 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,018 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and due from banks | $ 10,487 | $ 20,558 |
Other interest-earning assets | 352 | 712 |
Cash and cash equivalents | 10,839 | 21,270 |
Securities available-for-sale | 109,764 | 109,259 |
Securities held to maturity; estimated fair value of $59,947 (at September 30, 2018) and $51,551 (at December 31, 2017) | 62,227 | 52,442 |
Other equity investments, at fair value | 3,661 | 3,756 |
Federal Home Loan Bank of New York stock, at cost | 3,552 | 3,715 |
Loans held for sale | 0 | 370 |
Loans, net of allowance for loan losses of $7,904 (at September 30, 2018) and $8,762 (at December 31, 2017) | 721,088 | 702,561 |
Premises and equipment, net | 6,920 | 6,909 |
Accrued interest receivable | 2,649 | 2,566 |
Bank owned life insurance | 21,498 | 21,084 |
Other assets | 5,915 | 4,834 |
Total assets | 948,113 | 928,766 |
Deposits: | ||
Noninterest-bearing | 190,303 | 172,861 |
Interest-bearing | 596,263 | 591,238 |
Total deposits | 786,566 | 764,099 |
Federal Home Loan Bank of New York advances | 56,800 | 63,760 |
Subordinated Debentures and Subordinated Notes | 23,366 | 23,317 |
Accrued interest payable | 726 | 1,116 |
Accrued expenses and other liabilities | 2,736 | 2,809 |
Total liabilities | 870,194 | 855,101 |
Shareholders' equity | ||
Common stock, no par value: 20,000,000 shares authorized at September 30, 2018 and December 31, 2017; 8,678,454 and 8,652,804 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively | 61,013 | 60,742 |
Retained earnings | 19,503 | 14,307 |
Accumulated other comprehensive loss, net | (2,597) | (1,384) |
Total Shareholders' equity | 77,919 | 73,665 |
Total liabilities and Shareholders' equity | $ 948,113 | $ 928,766 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Securities held to maturity | $ 59,947 | $ 51,551 |
Allowance for loan losses | $ 7,904 | $ 8,762 |
Shareholders' equity | ||
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 8,678,454 | 8,652,804 |
Common stock, shares outstanding (in shares) | 8,678,454 | 8,652,804 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Interest income: | ||||
Loans | $ 8,044 | $ 7,359 | $ 23,332 | $ 20,953 |
Securities held to maturity: | ||||
Taxable | 344 | 245 | 873 | 732 |
Nontaxable | 22 | 45 | 78 | 157 |
Securities available-for-sale: | ||||
Taxable | 690 | 594 | 1,920 | 1,601 |
Nontaxable | 14 | 14 | 43 | 43 |
Other equity investments | 24 | 23 | 75 | 72 |
FHLB dividends | 53 | 58 | 175 | 136 |
Other interest-earning assets | 24 | 62 | 126 | 73 |
Total interest income | 9,215 | 8,400 | 26,622 | 23,767 |
Interest expense: | ||||
Deposits | 1,404 | 869 | 3,738 | 2,221 |
FHLB-NY Borrowings | 214 | 333 | 671 | 895 |
Subordinated Debentures and Subordinated Notes | 395 | 375 | 1,180 | 1,114 |
Total interest expense | 2,013 | 1,577 | 5,589 | 4,230 |
Net interest income before provision for loan losses | 7,202 | 6,823 | 21,033 | 19,537 |
Provision for loan losses | (490) | 20 | (1,605) | 580 |
Net interest income after provision for loan losses | 7,692 | 6,803 | 22,638 | 18,957 |
Noninterest income: | ||||
Fees and service charges | 542 | 524 | 1,600 | 1,578 |
Bank owned life insurance | 138 | 141 | 414 | 385 |
Gain on calls and sales of securities, net | 0 | 1 | 6 | 1 |
Gain on sales of mortgage loans | 12 | 68 | 43 | 123 |
Gain on sales of SBA loans | 70 | 0 | 129 | 0 |
Gain on sale of other real estate owned | 0 | 0 | 0 | 13 |
Miscellaneous | 75 | 111 | 229 | 357 |
Total noninterest income | 837 | 845 | 2,421 | 2,457 |
Noninterest expenses: | ||||
Salaries and employee benefits | 3,198 | 2,843 | 9,436 | 8,567 |
Occupancy, net | 426 | 414 | 1,271 | 1,216 |
Equipment | 186 | 173 | 555 | 497 |
Data processing | 489 | 444 | 1,451 | 1,369 |
Advertising | 192 | 182 | 556 | 529 |
FDIC insurance premium | 66 | 50 | 200 | 236 |
Charitable contributions | 180 | 130 | 555 | 375 |
Bank-card related services | 133 | 137 | 391 | 421 |
Other real estate owned, net | 0 | 0 | 0 | 24 |
Miscellaneous | 684 | 663 | 2,071 | 1,999 |
Total noninterest expenses | 5,554 | 5,036 | 16,486 | 15,233 |
Income before income tax expense | 2,975 | 2,612 | 8,573 | 6,181 |
Income tax expense | 813 | 972 | 2,302 | 2,282 |
Net income | $ 2,162 | $ 1,640 | $ 6,271 | $ 3,899 |
Basic and diluted earnings per common share (in usd per share) | $ 0.25 | $ 0.19 | $ 0.72 | $ 0.51 |
Weighted average number of basic and diluted common shares outstanding (in shares) | 8,677,445 | 8,643,737 | 8,670,662 | 7,656,942 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 2,162 | $ 1,640 | $ 6,271 | $ 3,899 |
Other comprehensive income (loss), net of tax: | ||||
Change in unrealized holding gains (losses) on securities available-for-sale during the period | (369) | 138 | (1,721) | 530 |
Reclassification adjustment for gains in net income | 0 | (1) | (4) | (1) |
Accretion of loss on securities reclassified to held to maturity | 6 | 10 | 19 | 23 |
Change in fair value of interest rate swap | 108 | (6) | 330 | (43) |
Total other comprehensive income (loss) | (255) | 141 | (1,376) | 509 |
Total comprehensive income | $ 1,907 | $ 1,781 | $ 4,895 | $ 4,408 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Retained Earnings | Accumulated Other Comprehensive Loss |
Balance at the beginning (in shares) at Dec. 31, 2016 | 6,121,329 | |||
Balance at the beginning at Dec. 31, 2016 | $ 51,387 | $ 41,626 | $ 11,082 | $ (1,321) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of common stock, net costs (in shares) | 2,509,090 | |||
Issuance of common stock, net costs | $ 18,860 | |||
Cash dividends declared on common stock | (702) | (702) | ||
Payment of discount on dividend reinvestment plan | (4) | $ (4) | ||
Common stock issued under dividend reinvestment plan (in shares) | 7,592 | |||
Common stock issued under dividend reinvestment plan | 67 | $ 67 | ||
Common stock issued under stock plans (in shares) | 2,976 | |||
Common stock issued under stock plans | 27 | $ 27 | ||
Issuance of restricted stock (in shares) | 20,876 | |||
Issuance of restricted stock | 0 | $ 185 | (185) | |
Amortization of restricted stock, net (in shares) | 0 | |||
Amortization of restricted stock, net | 139 | $ 0 | 139 | |
Restricted stock forfeited (in shares) | (16,547) | |||
Restricted stock forfeited | (122) | $ (139) | 17 | |
Tax benefit from restricted stock vesting | 48 | $ 48 | ||
Net income | 3,899 | 3,899 | ||
Other comprehensive income (loss) | 509 | 509 | ||
Balance at the end (in shares) at Sep. 30, 2017 | 8,645,316 | |||
Balance at the end at Sep. 30, 2017 | 74,108 | $ 60,670 | 14,250 | (812) |
Balance at the beginning at Jun. 30, 2017 | (953) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 1,640 | |||
Other comprehensive income (loss) | 141 | |||
Balance at the end (in shares) at Sep. 30, 2017 | 8,645,316 | |||
Balance at the end at Sep. 30, 2017 | 74,108 | $ 60,670 | 14,250 | (812) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Reclassification due to the adoption of ASU 2016-01 | $ 163 | (163) | 163 | |
Balance at the beginning (in shares) at Dec. 31, 2017 | 8,652,804 | 8,652,804 | ||
Balance at the beginning at Dec. 31, 2017 | $ 73,665 | $ 60,742 | 14,307 | (1,384) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Cash dividends declared on common stock | (780) | (780) | ||
Payment of discount on dividend reinvestment plan | (3) | $ (3) | ||
Common stock issued under dividend reinvestment plan (in shares) | 6,080 | |||
Common stock issued under dividend reinvestment plan | 65 | $ 65 | ||
Common stock issued under stock plans (in shares) | 2,943 | |||
Common stock issued under stock plans | 30 | $ 30 | ||
Issuance of restricted stock (in shares) | 28,221 | |||
Issuance of restricted stock | 0 | $ 301 | (301) | |
Amortization of restricted stock, net (in shares) | 0 | |||
Amortization of restricted stock, net | 154 | $ 0 | 154 | |
Restricted stock forfeited (in shares) | (11,594) | |||
Restricted stock forfeited | (107) | $ (122) | 15 | |
Net income | 6,271 | 6,271 | ||
Other comprehensive income (loss) | $ (1,376) | (1,376) | ||
Balance at the end (in shares) at Sep. 30, 2018 | 8,678,454 | 8,678,454 | ||
Balance at the end at Sep. 30, 2018 | $ 77,919 | $ 61,013 | 19,503 | (2,597) |
Balance at the beginning at Jun. 30, 2018 | (2,342) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 2,162 | |||
Other comprehensive income (loss) | $ (255) | |||
Balance at the end (in shares) at Sep. 30, 2018 | 8,678,454 | 8,678,454 | ||
Balance at the end at Sep. 30, 2018 | $ 77,919 | $ 61,013 | $ 19,503 | $ (2,597) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 6,271,000 | $ 3,899,000 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization of premises and equipment | 345,000 | 295,000 |
Amortization of premiums and accretion of discounts, net | 362,000 | 403,000 |
Amortization of restricted stock | 47,000 | 17,000 |
Amortization of subordinated debenture issuance costs | 49,000 | 49,000 |
Accretion of deferred loan fees | 115,000 | 110,000 |
Fair value adjustment for equity security | 137,000 | 0 |
Provision for loan losses | (1,605,000) | 580,000 |
Originations of mortgage loans held-for-sale | (3,016,000) | (8,271,000) |
Proceeds from sale of mortgage loans | 3,429,000 | 8,479,000 |
Gain on sale of SBA loans | (129,000) | 0 |
Gain on sales of mortgage loans | (43,000) | (123,000) |
Gain on calls and sales of securities | (6,000) | (1,000) |
Gain on sale of other real estate owned | 0 | (13,000) |
Deferred income tax expense (benefit) | 2,499,000 | (295,000) |
Excess tax benefit from restricted stock vesting | 0 | 48,000 |
Increase in accrued interest receivable | (83,000) | (299,000) |
Decrease in accrued interest payable | (390,000) | (109,000) |
Earnings on bank owned life insurance | (414,000) | (385,000) |
(Increase) decrease in other assets | (2,824,000) | 176,000 |
Decrease in other liabilities | 257,000 | 864,000 |
Net cash provided by operating activities | 5,001,000 | 5,424,000 |
Cash flows from investing activities: | ||
Purchase of securities available-for-sale | (16,199,000) | (27,667,000) |
Proceeds from maturities and principal repayments on securities available-for-sale | 11,922,000 | 10,565,000 |
Proceeds from sales and calls on securities available-for-sale | 1,006,000 | 500,000 |
Purchase of securities held-to-maturity | (14,828,000) | (7,175,000) |
Proceeds from maturities and principal repayments on securities held-to-maturity | 4,711,000 | 5,006,000 |
Proceeds from calls on securities held-to-maturity | 280,000 | 1,120,000 |
Purchase of equity securities | (42,000) | 0 |
Purchase of FHLB-NY stock | (3,162,000) | (10,639,000) |
Redemption of FHLB-NY stock | 3,325,000 | 10,235,000 |
Net increase in loans | (16,908,000) | (87,655,000) |
Proceeds from sale of other real estate owned | 0 | 414,000 |
Purchase of bank owned life insurance | 0 | (4,000,000) |
Additions to premises and equipment | (356,000) | (434,000) |
Net cash used in investing activities | (30,251,000) | (109,730,000) |
Cash flows from financing activities: | ||
Net increase in noninterest-bearing deposits | 17,442,000 | 2,303,000 |
Net increase in interest-bearing deposits | 5,025,000 | 79,728,000 |
Increase in loan term borrowings | 0 | 25,000,000 |
Repayment of long term borrowings | (20,760,000) | (10,000,000) |
Net increase (decrease) in short-term borrowings | 13,800,000 | (5,440,000) |
Proceeds from issuance of common stock, net of costs | 0 | 18,860,000 |
Cash dividends paid on common stock | (780,000) | (702,000) |
Payment of discount on dividend reinvestment plan | (3,000) | (4,000) |
Issuance of common stock for cash | 95,000 | 94,000 |
Net cash provided by financing activities | 14,819,000 | 109,839,000 |
Net increase (decrease) in cash and cash equivalents | (10,431,000) | 5,533,000 |
Cash and cash equivalents - beginning | 21,270,000 | 11,680,000 |
Cash and cash equivalents - ending | 10,839,000 | 17,213,000 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the period for interest | 5,979,000 | 4,339,000 |
Cash paid during the period for income taxes | $ 3,014,000 | $ 1,962,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Certain information and note disclosures normally included in the unaudited consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been omitted pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Stewardship Financial Corporation Annual Report on Form 10-K for the fiscal year ended December 31, 2017 , filed with the SEC on March 23, 2018. The interim unaudited consolidated financial statements included herein have been prepared in accordance with instructions for Form 10-Q and the rules and regulations of the SEC and, therefore, do not include information or footnotes necessary for a complete presentation of consolidated financial condition, results of operations, and cash flows in conformity with GAAP. However, all adjustments, consisting only of normal recurring adjustments, which in the opinion of management are necessary for a fair presentation of the interim consolidated financial statements, have been included. The results of operations for the nine months ended September 30, 2018 are not necessarily indicative of the results which may be expected for the entire year. Certain prior period amounts have been reclassified to conform with the current period presentation. Principles of consolidation The consolidated financial statements include the accounts of Stewardship Financial Corporation and its wholly-owned subsidiary, Atlantic Stewardship Bank (the “Bank”), together referred to as “the Corporation”. The Bank includes its wholly-owned subsidiaries, Stewardship Investment Corporation, Stewardship Realty LLC, Atlantic Stewardship Insurance Company, LLC and several other subsidiaries formed to hold title to properties acquired through foreclosure or deed in lieu of foreclosure. The Bank’s subsidiaries have an insignificant impact on the Bank’s daily operations. All intercompany accounts and transactions have been eliminated in the consolidated financial statements. The consolidated financial statements of the Corporation have been prepared in conformity with GAAP. In preparing the consolidated financial statements, management is required to make estimates and assumptions, based on available information, that affect the amounts reported in the consolidated financial statements and disclosures provided. Actual results could differ significantly from those estimates. Material estimates Material estimates that are particularly susceptible to significant changes relate to the determination of the allowance for loan losses and deferred income taxes. Management believes the Corporation’s policies with respect to the methodology for the determination of the allowance for loan losses and the evaluation of deferred income taxes involves a higher degree of complexity and requires management to make difficult and subjective judgments, which often require assumptions or estimates about highly uncertain matters. Changes in these judgments, assumptions or estimates could materially impact results of operations. These critical policies and their application are periodically reviewed with the Audit Committee and the Board of Directors. Adoption of New Accounting Standards In May 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, "Revenue from Contracts with Customers (Topic 606)". The objective of this amendment is to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and International Financial Reporting Standards. This update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are in the scope of other standards. The ASU is effective for public business entities for financial statements issued for fiscal years beginning after December 15, 2017, and early adoption is permitted. Subsequently, the FASB issued the following standards related to ASU 2014-09: ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations;” ASU 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing;” ASU 2016-11, “Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting;” ASU 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients;” ASU 2016-20, "Technical Corrections and Improvements to Topic 606, Revenue Contracts with Customers;" ASU 2017-13, "Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments;" and ASU 2017-14, "Income Statement - Reporting Comprehensive Income (Topic 220), Revenue Recognition (Topic 605), and Revenue from Contracts with Customers (Topic 606): Amendments to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 116 and SEC Release No. 33-10403." These amendments are intended to improve and clarify the implementation guidance of ASU 2014-09 and have the same effective date as the original standard. The Corporation’s implementation efforts include the identification of revenue within the scope of the guidance, as well as the evaluation of revenue contracts and the respective performance obligations within those contracts. We have evaluated the nature of our contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the the Condensed Consolidated Statement of Income was not necessary. We generally satisfy our performance obligations on contracts with customers as services are rendered, and the transaction prices are typically fixed and charged either on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying this ASU that significantly affect the determination of the amount and timing of the revenue from contracts with customers. The Corporation has completed its evaluation and adopted this ASU effective January 1, 2018 using the modified retrospective approach. Adoption of ASU 2014-09 did not have a material impact on our consolidated financial statements and related disclosures as our primary sources of revenues are derived from interest and dividends earned on loans, securities and other financial instruments that are not within the scope of the new standard. Our revenue recognition pattern for revenue streams within the scope of the new standard, including but not limited to service charges on deposit accounts and debit card interchange, did not change significantly from prior practice. The modified retrospective method requires application of ASU 2014-09 to uncompleted contracts at the date of adoption, however, periods prior to the date of adoption have not been retrospectively revised as the impact of the new standard on uncompleted contracts as the date of adoption was not material. As such, a cumulative effective adjustment to opening retained earnings was not deemed necessary. In January 2016, the FASB issued ASU No. 2016-01, "Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Liabilities." This ASU addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. This amendment supersedes the guidance to classify equity securities with readily determinable fair values into different categories, requires equity securities to be measured at fair value with changes in the fair value recognized through net income, and simplifies the impairment assessment of equity investments without readily determinable fair values. The amendment requires public business entities that are required to disclose the fair value of financial instruments measured at amortized cost on the balance sheet to measure that fair value using the exit price notion. The amendment requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option. The amendment requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or in the accompanying notes to the financial statements. The amendment reduces diversity in current practice by clarifying that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available for sale securities in combination with the entity’s other deferred tax assets. This amendment is effective for fiscal years, including interim periods, beginning after December 15, 2017. Entities should apply the amendment by means of a cumulative-effect adjustment as of the beginning of the fiscal year of adoption, with the exception of the amendment related to equity securities without readily determinable fair values, which should be applied prospectively to equity investments that exist as of the date of adoption. The Corporation's adoption of the guidance resulted in the reclassification from accumulated other comprehensive income (loss) to retained earnings of $163,000 , reflected in the Consolidated Statements of Changes in Shareholders' Equity. In addition, the fair value of loans has been estimated using the exit price notion as described in Note 4. In February 2016, the FASB issued ASU 2016-02, “Leases (Subtopic 842).” This ASU requires all lessees to recognize a lease liability and a right-of-use asset, measured at the present value of the future minimum lease payments, at the lease commencement date. Lessor accounting remains largely unchanged under the new guidance. The amendments in ASU 2016-02 are effective for fiscal years, including interim periods, beginning after December 15, 2018. Early adoption of ASU 2016-02 is permitted. Subsequently, the FASB issued the following standards related to ASU 2016-02: ASU 2017-13, "Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments;" ASU 2018-1, "Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842; ASU 2018-10, "Codification Improvements to Topic 842, Leases;" and ASU 2018-11, "Leases (Topic 842): Targeted Improvements." Based on the current lease portfolio, upon adoption of the new accounting standard, the Corporation anticipates recognizing a lease liability and related right-of-use asset on the Consolidated Statement of financial Condition. Management is continuing to evaluate the Corporation's outstanding inventory of leases and determining the effect of recognizing operating leases on the Consolidated Statements of Financial Condition. The Corporation plans to adopt the modified retrospective approach under ASU 2018-11. The final impact of the standard will depend on the Corporation's lease composition as of the adoption date. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The main objective of this ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments by a reporting entity at each reporting date. The amendments in this ASU require financial assets measured at amortized cost to be presented at the net amount expected to be collected. The allowance for credit losses would represent a valuation account that would be deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The income statement would reflect 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. The measurement of expected credit losses would be based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. An entity will be required to use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. The amendments in ASU 2016-13 are effective for fiscal years, including interim periods, beginning after December 15, 2019. Early adoption of this ASU is permitted for fiscal years beginning after December 15, 2018. The Corporation is currently evaluating the potential impact of ASU 2016-13 on the Corporation's consolidated financial statements. The Corporation has formed a working group, under the direction of the Chief Financial Officer, which is currently developing an implementation plan to include assessment of processes, portfolio segmentation, model development, system requirements and the identification of data and resource needs, among other things. Also, the Corporation is currently evaluating third-party vendor solutions to assist in the application of ASU 2016-13. The adoption of ASU 2016-13 may result in an increase in the allowance for loan losses due to changing from an "incurred loss" model, which encompasses allowances for current known and inherent losses within the portfolio, to an "expected loss" model, which encompasses allowances for losses expected to be incurred over the life of the portfolio. Furthermore, ASU 2016-13 will necessitate establishing an allowance for expected credit losses on debt securities. The Corporation is currently unable to reasonably estimate the impact of adopting ASU 2016-13, and it is expected that the impact of adoption will be significantly influenced by the composition, characteristics and quality of our loan and securities portfolios as well as the prevailing economic conditions and forecasts as of the adoption date. In August 2017, the FASB issued ASU No. 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities", with the objective of improving the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. The amendments in ASU 2017-12 expand and refine hedge accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. This ASU will be effective for interim and annual periods beginning after December 15, 2018. Early adoption of ASU 2017-12 is permitted. As of September 30, 2018, the Corporation has early adopted ASU 2017-12 with no impact to the Corporation's consolidated financial statements. |
Securities - Available-for-Sale
Securities - Available-for-Sale and Held to Maturity | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities - Available-for-Sale and Held to Maturity | Securities – Available-for-Sale and Held to Maturity The amortized cost, gross unrealized gains and losses and fair value of the available-for-sale securities were as follows: September 30, 2018 Amortized Gross Unrealized Fair Cost Gains Losses Value (In thousands) U.S. government-sponsored agencies $ 26,541 $ 7 $ 897 $ 25,651 Obligations of state and political subdivisions 3,210 — 132 3,078 Mortgage-backed securities 65,251 21 2,487 62,785 Asset-backed securities (a) 5,405 16 1 5,420 Corporate debt 13,386 26 582 12,830 Total available-for-sale securities $ 113,793 $ 70 $ 4,099 $ 109,764 December 31, 2017 Amortized Gross Unrealized Fair Cost Gains Losses Value (In thousands) U.S. government-sponsored agencies $ 21,699 $ 30 $ 396 $ 21,333 Obligations of state and political subdivisions 3,221 — 56 3,165 Mortgage-backed securities 64,775 70 1,011 63,834 Asset-backed securities (a) 6,672 30 4 6,698 Corporate debt 14,437 94 302 14,229 Total available-for-sale securities $ 110,804 $ 224 $ 1,769 $ 109,259 (a) Collateralized by student loans. Cash proceeds from sales and calls of securities available-for-sale for the three and nine months ended September 30, 2018 , were $0 and $1,006,000 , respectively. There were $500,000 in cash proceeds realized from sales and calls of securities available-for-sale for the three and nine months ended September 30, 2017 . Gross gains realized on sales or calls during the three and nine months ended September 30, 2018 , were $0 and $6,000 , respectively. There were no gross losses realized on sales or calls during the three and nine months ended September 30, 2018 , respectively. There were $1,000 in gross gains and no gross losses realized on sales or calls during the three and nine months ended September 30, 2017 . The following is a summary of the amortized cost, gross unrealized gains and losses and fair value of the held to maturity securities: September 30, 2018 Amortized Gross Unrealized Fair Cost Gains Losses Value (In thousands) U.S. Treasury $ 1,000 $ — $ 20 $ 980 U.S. government-sponsored agencies 34,564 — 1,595 32,969 Obligations of state and political subdivisions 2,361 15 36 2,340 Mortgage-backed securities 24,302 32 676 23,658 Total held-to-maturity securities $ 62,227 $ 47 $ 2,327 $ 59,947 December 31, 2017 Amortized Gross Unrealized Fair Cost Gains Losses Value (In thousands) U.S. Treasury $ 999 $ — $ 11 $ 988 U.S. government-sponsored agencies 27,075 4 760 26,319 Obligations of state and political subdivisions 4,057 21 23 4,055 Mortgage-backed securities 20,311 76 198 20,189 Total held-to-maturity securities $ 52,442 $ 101 $ 992 $ 51,551 Cash proceeds from calls of securities held to maturity for the three and nine months ended September 30, 2018 were $0 and $280,000 , respectively. Cash proceeds from calls of securities held to maturity for the three and nine months ended September 30, 2017 were $400,000 and $1,120,000 , respectively. There were no gross gains and no gross losses realized on calls during the three and nine months ended September 30, 2018 and September 30, 2017 . Mortgage-backed securities are a type of asset-backed security secured by a mortgage or collection of mortgages, purchased by government agencies such as the Government National Mortgage Association and government sponsored agencies such as the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation, which then issue securities that represent claims on the principal and interest payments made by borrowers on the loans in the pool. The following table presents the amortized cost and fair value of the debt securities portfolio by contractual maturity. As issuers may have the right to call or prepay obligations with or without call or prepayment premiums, the actual maturities may differ from contractual maturities. Securities not due at a single maturity date, such as mortgage-backed securities and asset-backed securities, are shown separately. September 30, 2018 Amortized Cost Fair Value (In thousands) Available-for-sale Within one year $ 397 $ 395 After one year, but within five years 14,072 13,758 After five years, but within ten years 24,037 23,064 After ten years 4,631 4,342 Mortgage-backed securities 65,251 62,785 Asset-backed securities 5,405 5,420 Total $ 113,793 $ 109,764 Held to maturity Within one year $ 335 $ 335 After one year, but within five years 18,033 17,486 After five years, but within ten years 19,066 18,013 After ten years 491 455 Mortgage-backed securities 24,302 23,658 Total $ 62,227 $ 59,947 The following tables summarize the fair value and unrealized losses of those investment securities which reported an unrealized loss at September 30, 2018 and December 31, 2017 , and if the unrealized loss position was continuous for the twelve months prior to September 30, 2018 and December 31, 2017 . Available-for-Sale September 30, 2018 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (In thousands) U.S. government- sponsored agencies $ 11,073 $ (189 ) $ 13,394 $ (708 ) $ 24,467 $ (897 ) Obligations of state and political subdivisions 1,363 (21 ) 1,715 (111 ) 3,078 (132 ) Mortgage-backed securities 19,078 (344 ) 41,106 (2,143 ) 60,184 (2,487 ) Asset-backed securities 2,999 (1 ) — — 2,999 (1 ) Corporate debt 2,490 (10 ) 8,814 (572 ) 11,304 (582 ) Total temporarily impaired securities $ 37,003 $ (565 ) $ 65,029 $ (3,534 ) $ 102,032 $ (4,099 ) December 31, 2017 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (In thousands) U.S. government- sponsored agencies $ 8,260 $ (70 ) $ 11,174 $ (326 ) $ 19,434 $ (396 ) Obligations of state and political subdivisions 1,384 (7 ) 1,781 (49 ) 3,165 (56 ) Mortgage-backed securities 30,575 (201 ) 26,809 (810 ) 57,384 (1,011 ) Asset-backed securities — — 3,013 (4 ) 3,013 (4 ) Corporate debt — — 9,135 (302 ) 9,135 (302 ) Total temporarily impaired securities $ 40,219 $ (278 ) $ 51,912 $ (1,491 ) $ 92,131 $ (1,769 ) Held to Maturity September 30, 2018 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (In thousands) U.S. Treasury $ — $ — $ 980 $ (20 ) $ 980 $ (20 ) U.S. government- sponsored agencies 11,979 (201 ) 20,990 (1,394 ) 32,969 (1,595 ) Obligations of state and political subdivisions — — 456 (36 ) 456 (36 ) Mortgage-backed securities 13,395 (250 ) 9,089 (426 ) 22,484 (676 ) Total temporarily impaired securities $ 25,374 $ (451 ) $ 31,515 $ (1,876 ) $ 56,889 $ (2,327 ) December 31, 2017 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (In thousands) U.S. Treasury $ 988 $ (11 ) $ — $ — $ 988 $ (11 ) U.S. government- sponsored agencies 10,032 (139 ) 15,265 (621 ) 25,297 (760 ) Obligations of state and political subdivisions — — 474 (23 ) 474 (23 ) Mortgage-backed securities 9,531 (114 ) 3,896 (84 ) 13,427 (198 ) Total temporarily impaired securities $ 20,551 $ (264 ) $ 19,635 $ (728 ) $ 40,186 $ (992 ) Other-Than-Temporary Impairment At September 30, 2018 , there were available-for-sale investments comprising seventeen U.S. government-sponsored agency securities, four obligations of state and political subdivision securities, fifty-two mortgage-backed securities, and nine corporate debt securities in a continuous loss position for twelve months or longer. At September 30, 2018 , there were held to maturity investments comprising one U.S. Treasury security, twenty-two U.S. government-sponsored agency securities, one obligation of state and political subdivision security, and twenty-one mortgage-backed securities in a continuous loss position for twelve months or longer. Management has assessed the securities that were in an unrealized loss position at September 30, 2018 and December 31, 2017 and has determined that any decline in fair value below amortized cost primarily relates to changes in interest rates and market spreads and was temporary. In making this determination management considered the following factors: the period of time the securities were in an unrealized loss position; the percentage decline in comparison to the securities’ amortized cost; any adverse conditions specifically related to the security, an industry or a geographic area; the rating or changes to the rating by a credit rating agency; the financial condition of the issuer and guarantor and any recoveries or additional declines in fair value subsequent to the balance sheet date. The Corporation does not intend to sell securities in an unrealized loss position and it is not more likely than not that we will be required to sell these securities before the recovery of their amortized cost bases, which may be at maturity. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | Loans and Allowance for Loan Losses At September 30, 2018 and December 31, 2017 , respectively, the loan portfolio consisted of the following: September 30, December 31, (In thousands) Commercial: Secured by real estate $ 30,576 $ 31,684 Other 66,309 57,372 Commercial real estate 499,571 493,542 Commercial construction 6,716 2,152 Residential real estate 83,729 85,760 Consumer: Secured by real estate 34,749 32,207 Other 421 563 Government Guaranteed Loans - guaranteed portion 7,206 8,334 Other 198 106 Total gross loans 729,475 711,720 Less: Deferred loan costs, net 483 397 Allowance for loan losses 7,904 8,762 8,387 9,159 Loans, net $ 721,088 $ 702,561 Included in Commercial - Other and Commercial real estate at September 30, 2018 were $172,000 and $1.6 million of Small Business Administration ("SBA") loans originated during 2018. The guaranteed portions of these loans were sold during the nine months ended September 30, 2018 . The Corporation has purchased the guaranteed portion of several Government Guaranteed loans. Due to the guarantee of the principal amount of these loans, no allowance for loan losses is established for these loans. Activity in the allowance for loan losses is summarized as follows: Three Months Ended September 30, 2018 Balance, beginning of period Provision charged to operations Loans charged off Recoveries of loans charged off Balance, end of period (In thousands) Commercial $ 2,931 $ (250 ) $ — $ 25 $ 2,706 Commercial real estate 5,204 (258 ) — 16 4,962 Commercial construction 71 19 — — 90 Residential real estate 69 (5 ) — — 64 Consumer 69 — — 1 70 Other loans 1 1 (1 ) — 1 Unallocated 8 3 — — 11 Total $ 8,353 $ (490 ) $ (1 ) $ 42 $ 7,904 Nine Months Ended September 30, 2018 Balance, beginning of period Provision charged to operations Loans charged off Recoveries of loans charged off Balance, end of period (In thousands) Commercial $ 3,058 $ (448 ) $ (29 ) $ 125 $ 2,706 Commercial real estate 5,531 (1,219 ) — 650 4,962 Commercial construction 33 57 — — 90 Residential real estate 68 (4 ) — — 64 Consumer 64 4 — 2 70 Other loans 1 1 (2 ) 1 1 Unallocated 7 4 — — 11 Total $ 8,762 $ (1,605 ) $ (31 ) $ 778 $ 7,904 Three Months Ended September 30, 2017 Balance, beginning of period Provision charged to operations Loans charged off Recoveries of loans charged off Balance, end of period (In thousands) Commercial $ 2,662 $ 145 $ (1 ) $ 18 $ 2,824 Commercial real estate 5,502 (80 ) — 21 5,443 Commercial construction 253 (27 ) — — 226 Residential real estate 58 (1 ) — — 57 Consumer 63 (7 ) — 6 62 Other loans 5 (5 ) — — — Unallocated 7 (5 ) — — 2 Total $ 8,550 $ 20 $ (1 ) $ 45 $ 8,614 Nine Months Ended September 30, 2017 Balance, beginning of period Provision charged to operations Loans charged off Recoveries of loans charged off Balance, end of period (In thousands) Commercial $ 2,663 $ 111 $ (3 ) $ 53 $ 2,824 Commercial real estate 4,734 637 — 72 5,443 Commercial construction 355 (129 ) — — 226 Residential real estate 66 (9 ) — — 57 Consumer 75 (20 ) — 7 62 Other loans — — (1 ) 1 — Unallocated 12 (10 ) — — 2 Total $ 7,905 $ 580 $ (4 ) $ 133 $ 8,614 The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method as of September 30, 2018 and December 31, 2017 . September 30, 2018 Commercial Commercial Real Estate Commercial Construction Residential Real Estate Consumer Government Guaranteed Other Loans Unallocated Total (In thousands) Allowance for loan losses Ending allowance balance attributable to loans Individually evaluated for impairment $ 76 $ 564 $ — $ — $ — $ — $ — $ — $ 640 Collectively evaluated for impairment 2,630 4,398 90 64 70 — 1 11 7,264 Total ending allowance balance $ 2,706 $ 4,962 $ 90 $ 64 $ 70 $ — $ 1 $ 11 $ 7,904 Loans: Loans individually evaluated for impairment $ 642 $ 6,114 $ — $ 275 $ 16 $ — $ — $ — $ 7,047 Loans collectively evaluated for impairment 96,243 493,457 6,716 83,454 35,154 7,206 198 — 722,428 Total ending loan balance $ 96,885 $ 499,571 $ 6,716 $ 83,729 $ 35,170 $ 7,206 $ 198 $ — $ 729,475 December 31, 2017 Commercial Commercial Real Estate Commercial Construction Residential Real Estate Consumer Government Guaranteed Other Loans Unallocated Total (In thousands) Allowance for loan losses Ending allowance balance attributable to loans Individually evaluated for impairment $ 34 $ 575 $ — $ — $ — $ — $ — $ — $ 609 Collectively evaluated for impairment 3,024 4,956 33 68 64 — 1 7 8,153 Total ending allowance balance $ 3,058 $ 5,531 $ 33 $ 68 $ 64 $ — $ 1 $ 7 $ 8,762 Loans: Loans individually evaluated for impairment $ 549 $ 6,236 $ — $ 295 $ 62 $ — $ — $ — $ 7,142 Loans collectively evaluated for impairment 88,507 487,306 2,152 85,465 32,708 8,334 106 — 704,578 Total ending loan balance $ 89,056 $ 493,542 $ 2,152 $ 85,760 $ 32,770 $ 8,334 $ 106 $ — $ 711,720 The following table presents the recorded investment in nonaccrual loans at the dates indicated: September 30, December 31, (In thousands) Commercial: Secured by real estate $ 397 $ 136 Commercial real estate 583 701 Residential real estate 275 295 Consumer: Secured by real estate 16 62 Total nonaccrual loans $ 1,271 $ 1,194 At September 30, 2018 and December 31, 2017 , there were no loans that were past due 90 days and still accruing. The following table presents information regarding loans individually evaluated for impairment by class of loan at and for the periods indicated: At September 30, 2018 Unpaid Recorded Allowance for (In thousands) With no related allowance recorded: Commercial: Secured by real estate $ 452 $ 422 Commercial real estate 3,354 3,027 Residential Real Estate 284 275 Consumer: Secured by real estate 21 16 4,111 3,740 With an allowance recorded: Commercial: Secured by real estate 97 97 $ 71 Other 123 123 5 Commercial real estate 3,086 3,087 564 3,306 3,307 640 Total: Commercial: Secured by real estate 549 519 71 Other 123 123 5 Commercial real estate 6,440 6,114 564 Residential Real Estate 284 275 — Consumer: Secured by real estate 21 16 — $ 7,417 $ 7,047 $ 640 At December 31, 2017 Unpaid Recorded Allowance for (In thousands) With no related allowance recorded: Commercial: Secured by real estate $ 389 $ 389 Commercial real estate 3,442 3,124 Residential real estate 295 295 Consumer: Secured by real estate 71 62 4,197 3,870 With an allowance recorded: Commercial: Secured by real estate 33 32 $ 27 Other 128 128 7 Commercial real estate 3,112 3,112 575 3,273 3,272 609 Total: Commercial: Secured by real estate 422 421 27 Other 128 128 7 Commercial real estate 6,554 6,236 575 Residential real estate 295 295 — Consumer: Secured by real estate 71 62 — $ 7,470 $ 7,142 $ 609 Three Months Ended September 30, 2018 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (In thousands) With no related allowance recorded: Commercial: Secured by real estate $ 545 $ 2 $ 878 $ 22 Commercial real estate 3,043 29 3,172 30 Residential Real Estate 278 — — — Consumer: Secured by real estate 17 — 68 — Total 3,883 31 4,118 52 With an allowance recorded: Commercial: Secured by real estate 98 1 36 — Other 124 2 150 3 Commercial real estate 3,091 41 3,135 32 3,313 44 3,321 35 Total $ 7,196 $ 75 $ 7,439 $ 87 Nine Months Ended September 30, 2018 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (In thousands) With no related allowance recorded: Commercial: Secured by real estate $ 465 $ 10 $ 1,107 $ 63 Commercial real estate 3,076 84 3,155 92 Residential Real Estate 285 — — — Consumer: Secured by real estate 35 — 72 — Total 3,861 94 4,334 155 With an allowance recorded: Commercial: Secured by real estate 57 2 48 — Other 126 6 182 10 Commercial real estate 3,099 121 3,152 96 3,282 129 3,382 106 Total $ 7,143 $ 223 $ 7,716 $ 261 During the three and nine months ended September 30, 2018 and 2017, no interest income was recognized on a cash basis. The following table presents the aging of the recorded investment in past due loans by class of loans as of September 30, 2018 and December 31, 2017 . Nonaccrual loans are included in the disclosure by payment status. September 30, 2018 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Past Due Total Past Due Current Total (In thousands) Commercial: Secured by real estate $ — $ 292 $ 105 $ 397 $ 30,179 $ 30,576 Other 6 — — 6 66,303 66,309 Commercial real estate — 71 512 583 498,988 499,571 Commercial construction — — — — 6,716 6,716 Residential real estate 308 — — 308 83,421 83,729 Consumer: Secured by real estate 61 — — 61 34,688 34,749 Other 1 — — 1 420 421 Government Guaranteed — — — — 7,206 7,206 Other — — — — 198 198 Total $ 376 $ 363 $ 617 $ 1,356 $ 728,119 $ 729,475 December 31, 2017 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Past Due Total Past Due Current Total (In thousands) Commercial: Secured by real estate $ 186 $ — $ — $ 186 $ 31,498 $ 31,684 Other 8 — — 8 57,364 57,372 Commercial real estate 300 — 599 899 492,643 493,542 Commercial construction — — — — 2,152 2,152 Residential real estate 314 — — 314 85,446 85,760 Consumer: Secured by real estate — — 28 28 32,179 32,207 Other — — — — 563 563 Government Guaranteed — — — — 8,334 8,334 Other — — — — 106 106 Total $ 808 $ — $ 627 $ 1,435 $ 710,285 $ 711,720 Troubled Debt Restructurings In order to determine whether a borrower is experiencing financial difficulty necessitating a restructuring, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed in accordance with the Corporation’s internal underwriting policy. A loan is considered to be in payment default once it is contractually 90 days past due. At September 30, 2018 and December 31, 2017 , the Corporation had $6.3 million and $6.6 million , respectively, of loans whose terms have been modified in troubled debt restructurings. Of these loans, $5.8 million and $5.9 million had demonstrated a reasonable period of performance in accordance with their new terms at September 30, 2018 and December 31, 2017 , respectively. The remaining troubled debt restructurings are reported as nonaccrual loans. Specific reserves of $641,000 and $582,000 have been recorded for the troubled debt restructurings at September 30, 2018 and December 31, 2017 , respectively, and are included in the table above. As of September 30, 2018 and December 31, 2017 , there were no additional funds committed to these borrowers. The following table presents the number of loans and their recorded investment immediately prior to the modification date and immediately after the modification date by class that were modified as troubled debt restructuring during the three and nine months ended September 30, 2018 : Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Number of Loans Pre-Modification Recorded Investment Post-Modification Recorded Investment Number of Loans Pre-Modification Recorded Investment Post-Modification Recorded Investment (Dollars in thousands) (Dollars in thousands) Commercial: Secured by real estate — $ — $ — 1 $ 97 $ 97 Total — $ — $ — 1 $ 97 $ 97 During the nine months ended September 30, 2018 , there was one loan modified as a troubled debt restructuring. The modification of the terms of the commercial - secured by real estate loan represented the term out of the remaining balance of a line of credit. For the nine months ended September 30, 2018 , the troubled debt restructuring described above resulted in a net increase in the allowance for loan losses of $71,000 . There were no charge-offs during the three or nine months ended September 30, 2018 related to this troubled debt restructuring. There were no new loans classified as a troubled debt restructuring during the three and nine months ended September 30, 2017 . Credit Quality Indicators The Corporation categorizes certain loans into risk categories based on relevant information about the ability of the borrowers to service their debt, such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Corporation analyzes loans individually by classifying the loans as to credit risk. This analysis includes non-homogeneous loans, such as commercial, commercial real estate and commercial construction loans. This analysis is performed at the time the loan is originated and annually thereafter. The Corporation uses the following definitions for risk ratings. Special Mention – A Special Mention asset has potential weaknesses that deserve management’s close attention, which, if left uncorrected, may result in deterioration of the repayment prospects for the asset or the Bank’s credit position at some future date. Special Mention assets are not adversely classified and do not expose the Bank to sufficient risk to warrant adverse classification. Substandard – Substandard loans are inadequately protected by the current net worth and paying capacity of the borrower or by the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the repayment and liquidation of the debt. These loans are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. Doubtful – A Doubtful loan has all of the weaknesses inherent in those classified as Substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions, and values, highly questionable or improbable. The likelihood of loss is extremely high, but because of certain important and reasonably specific factors, an estimated loss is deferred until a more exact status can be determined. Loss – A loan classified Loss is considered uncollectible and of such little value that its continuance as an asset is not warranted. This classification does not necessarily mean that an asset has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off a basically worthless asset even though partial recovery may be effected in the future. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. As of September 30, 2018 and December 31, 2017 , and based on the most recent analysis performed at those times, the risk category of loans by class is as follows: September 30, 2018 Pass Special Mention Substandard Doubtful Loss Total (In thousands) Commercial: Secured by real estate $ 28,602 $ 1,273 $ 701 $ — $ — $ 30,576 Other 64,711 1,135 463 — — 66,309 Commercial real estate 485,606 8,960 5,005 — — 499,571 Commercial construction 6,716 — — — — 6,716 Government Guaranteed Loans - guaranteed portion 7,206 — — — — 7,206 Total $ 592,841 $ 11,368 $ 6,169 $ — $ — $ 610,378 December 31, 2017 Pass Special Mention Substandard Doubtful Loss Total (In thousands) Commercial: Secured by real estate $ 29,025 $ 2,153 $ 506 $ — $ — $ 31,684 Other 56,632 216 524 — — 57,372 Commercial real estate 481,443 10,023 2,076 — — 493,542 Commercial construction 2,152 — — — — 2,152 Government Guaranteed Loans - guaranteed portion 8,334 — — — — 8,334 Total $ 577,586 $ 12,392 $ 3,106 $ — $ — $ 593,084 The Corporation considers the historical and projected performance of the loan portfolio and its impact on the allowance for loans losses. For the residential real estate and consumer loan segments, the Corporation evaluates credit quality primarily based on payment activity and historical loss data. The following table presents the recorded investment in residential real estate and consumer loans based on payment activity as of September 30, 2018 and December 31, 2017 . September 30, 2018 Current Past Due or Nonaccrual Total (In thousands) Residential real estate $ 83,146 $ 583 $ 83,729 Consumer: Secured by real estate 34,688 61 34,749 Other 420 1 421 Total $ 118,254 $ 645 $ 118,899 December 31, 2017 Current Past Due or Nonaccrual Total (In thousands) Residential real estate $ 85,446 $ 314 $ 85,760 Consumer: Secured by real estate 32,179 28 32,207 Other 563 — 563 Total $ 118,188 $ 342 $ 118,530 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair value: 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 reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Assets and Liabilities Measured on a Recurring Basis Assets and liabilities measured at fair value on a recurring basis are summarized below: Fair Value Measurements Using: Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) At September 30, 2018 (In thousands) Assets: Available-for-sale securities U.S. government - sponsored agencies $ 25,651 $ — $ 25,651 $ — Obligations of state and political subdivisions 3,078 — 3,078 — Mortgage-backed securities 62,785 — 62,785 — Asset-backed securities 5,420 — 5,420 — Corporate debt 12,830 — 12,830 — Total available-for-sale securities $ 109,764 $ — $ 109,764 $ — Other equity investments $ 3,661 $ 3,601 $ 60 $ — Interest rate swap $ 435 $ — $ 435 $ — Fair Value Measurements Using: Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) At December 31, 2017 (In thousands) Assets: Available-for-sale securities U.S. government - sponsored agencies $ 21,333 $ — $ 21,333 $ — Obligations of state and political subdivisions 3,165 — 3,165 — Mortgage-backed securities 63,834 — 63,834 — Asset-backed securities 6,698 — 6,698 — Corporate debt 14,229 — 14,229 — Total available-for-sale securities $ 109,259 $ — $ 109,259 $ — Other equity investments $ 3,756 $ 3,696 $ 60 $ — Liabilities: Interest rate swap $ 29 $ — $ 29 $ — There were no transfers of assets between Level 1 and Level 2 during the nine months ended September 30, 2018 or during the year ended December 31, 2017 . There were no changes to the valuation techniques for fair value measurements as of September 30, 2018 and December 31, 2017 . The fair values of investment securities are determined by quoted market prices, if available (Level 1). If quoted prices are not available, fair values of investment securities are determined by matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). The Corporation performs quarterly analyses on the prices received from the pricing service to determine whether the prices are reasonable estimates of fair value. Specifically, the Corporation compares the prices received from the pricing service to a secondary pricing source. The Corporation’s internal price verification procedures have not historically resulted in adjustment in the prices obtained from the pricing service. The other equity investments primarily represent a Community Reinvestment Act (CRA) mutual fund investment. The interest rate swaps are reported at fair values obtained from brokers who utilize internal models with observable market data inputs to estimate the values of these instruments (Level 2 inputs). Assets and Liabilities Measured on a Non-Recurring Basis Assets and liabilities measured at fair value on a non-recurring basis are summarized below: Fair Value Measurements Using: Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) At September 30, 2018 (In thousands) Assets: Impaired loans Commercial: Secured by real estate $ 318 $ — $ — $ 318 $ 318 $ — $ — $ 318 Fair Value Measurements Using: Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) At December 31, 2017 (In thousands) Assets: Impaired loans Commercial: Secured by real estate $ 109 $ — $ — $ 109 Commercial real estate 192 — — 192 Residential real estate 296 — — 296 $ 597 $ — $ — $ 597 Collateral-dependent impaired loans measured for impairment using fair value of the collateral had a recorded investment value of $389,000 , resulting in an increase in the allowance for loan losses of $71,000 for the nine months ended September 30, 2018. Collateral-dependent impaired loans measured for impairment using the fair value of the collateral had a recorded investment value of $624,000 , resulting in an increase of the allowance for loan losses of $ 27,000 for the year ended December 31, 2017 . There was no OREO at September 30, 2018 or December 31, 2017 . The Corporation does not record loans at fair value on a recurring basis. However, from time to time, the Corporation records non-recurring fair value adjustments to collateral dependent loans to reflect impairment. The Corporation measures impairment of collateralized loans based on the estimated fair value of the collateral less estimated costs to sell the collateral, incorporating assumptions that experienced parties might use in estimating the value of such collateral (Level 3 inputs). At the time a loan is considered impaired, it is valued at the lower of cost or fair value. Generally, impaired loans carried at fair value have been partially charged-off or receive specific allocations of the allowance for loan losses. For collateral dependent loans, fair value is commonly based on real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. In the appraisal process, the independent appraisers routinely adjust for differences between the comparable sales and income data available. Such adjustments typically result in a Level 3 classification of the inputs for determining fair value. Methods for valuing non-real estate collateral include using an appraisal, the net book value recorded for the collateral on the borrower’s financial statements, or aging reports. Collateral is then adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the borrower and borrower’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly. Appraisals are generally obtained to support the fair value of collateral. Appraisals for collateral-dependent impaired loans are performed by licensed appraisers whose qualifications and licenses have been reviewed and verified by the Corporation. The Corporation utilizes a third party to order appraisals and, once received, reviews the assumptions and approaches utilized in the appraisal as well as the resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. Real estate appraisals typically incorporate measures such as recent sales prices for comparable properties. Appraisers may make adjustments to the sales price of the comparable properties as deemed appropriate based on the age, condition or general characteristics of the subject property. Management generally applies a 12% discount to real estate appraised values to cover disposition / selling costs and to reflect the potential price reductions in the market necessary to complete an expedient sale transaction and to factor in the impact of the perception that a transaction being completed by a bank may result in further price reduction pressure. For the Level 3 assets measured at fair value on a non-recurring basis, the significant unobservable inputs used in the fair value measurements were as follows: September 30, 2018 Fair Weighted Assets Value Valuation Technique Unobservable Inputs Average (Dollars in thousands) Impaired loans $ 318 Comparable real estate sales and / or the income approach. Adjustments for differences between comparable sales and income data available. 5% Estimated selling costs. 7% December 31, 2017 Fair Weighted Assets Value Valuation Technique Unobservable Inputs Average (Dollars in thousands) Impaired loans $ 597 Comparable real estate sales and / or the income approach. Adjustments for differences between comparable sales and income data available. 5% Estimated selling costs. 7% Fair value estimates for the Corporation’s financial instruments are summarized below: Fair Value Measurements Using: Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) At September 30, 2018 (In thousands) Financial assets: Cash and cash equivalents $ 10,839 $ 10,839 $ — $ — Securities available-for-sale 109,764 — 109,764 — Securities held to maturity 62,227 — 59,947 — Other equity investments 3,661 3,601 60 — FHLB-NY stock 3,552 N/A N/A N/A Loans held for sale — — — — Loans, net 721,088 — — 718,718 Interest rate swap 435 — 435 — Financial liabilities: Deposits 786,566 588,150 196,109 — FHLB-NY advances 56,800 — 56,187 — Subordinated Debentures and Subordinated Notes 23,366 — — 23,504 Fair Value Measurements Using: Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2017 (In thousands) Financial assets: Cash and cash equivalents $ 21,270 $ 21,270 $ — $ — Securities available-for-sale 109,259 — 109,259 — Securities held to maturity 52,442 — 51,551 — Other equity investments 3,756 3,696 60 — FHLB-NY stock 3,715 N/A N/A N/A Loans held for sale 370 — — 370 Loans, net 702,561 — — 714,387 Financial liabilities: Deposits 764,099 565,292 197,696 — FHLB-NY advances 63,760 — 63,340 — Subordinated Debentures and Subordinated Notes 23,317 — — 23,478 Interest rate swap 29 — 29 — The following methods and assumptions were used to estimate the fair value of financial instruments recorded at fair value on a recurring or non-recurring basis not previously described: Loans, net – Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type such as residential and commercial mortgages, commercial and other installment loans. Fair value for loans at September 30, 2018 is based on an exit price model as required by ASU 2016-01 taking into account inputs such as probability of default and loss given default assumptions. As of December 31, 2017 , the fair value of loans is estimated by discounting cash flows using estimated market discount rates that reflect the credit and interest rate risk inherent in the loans resulting in a Level 3 classification. Fair values estimated in this manner do not fully incorporate an exit-price approach to fair value, but instead are based on a comparison to current market rates for comparable loans. Commitments to extend credit – The fair value of commitments is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. At September 30, 2018 and December 31, 2017 , the fair value of such commitments were not material. Limitations The preceding fair value estimates were made at September 30, 2018 and December 31, 2017 based on pertinent market data and relevant information concerning the financial instruments. These estimates do not include any premiums or discounts that could result from an offer to sell at one time the Corporation's entire holdings of a particular financial instrument or category thereof. Since no market exists for a substantial portion of the Corporation's financial instruments, fair value estimates were necessarily based on judgments with respect to future expected loss experience, current economic conditions, risk assessments of various financial instruments, and other factors. Given the subjective nature of these estimates, the uncertainties surrounding them and the matters of significant judgment that must be applied, these fair value estimates cannot be calculated with precision. Modifications in such assumptions could meaningfully alter these estimates. Since these fair value estimates were made solely for on- and off-balance sheet financial instruments at September 30, 2018 and December 31, 2017 , no attempt was made to estimate the value of anticipated future business. Furthermore, certain tax implications related to the realization of unrealized gains and losses could have a substantial impact on these fair value estimates and have not been incorporated into the estimates. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following reconciles the income available to common shareholders (numerator) and the weighted average common stock outstanding (denominator) for both basic and diluted earnings per share. Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 (Dollars in thousands) Net income $ 2,162 $ 1,640 $ 6,271 $ 3,899 Weighted average common shares outstanding - basic 8,677,445 8,643,737 8,670,662 7,656,942 Effect of dilutive securities - stock options N/A N/A N/A N/A Weighted average common shares outstanding - diluted 8,677,445 8,643,737 8,670,662 7,656,942 Basic earnings per common share $ 0.25 $ 0.19 $ 0.72 $ 0.51 Diluted earnings per common share $ 0.25 $ 0.19 $ 0.72 $ 0.51 There were no stock options to purchase shares of common stock for the three and nine months ended September 30, 2018 and 2017 . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The components of other comprehensive (loss) income, both gross and net of tax, are presented for the periods below: Three Months Ended September 30, 2018 2017 Gross Tax Net Gross Tax Net (In thousands) Other comprehensive income (loss): Change in unrealized holding gains (losses) on securities available-for-sale $ (647 ) $ 278 $ (369 ) $ 225 $ (87 ) $ 138 Reclassification adjustment for gains in net income — — — (1 ) — (1 ) Accretion of loss on securities reclassified to held to maturity 4 2 6 17 (7 ) 10 Change in fair value of interest rate swap 155 (47 ) 108 (10 ) 4 (6 ) Total other comprehensive income (loss) $ (488 ) $ 233 $ (255 ) $ 231 $ (90 ) $ 141 Nine Months Ended September 30, 2018 2017 Gross Tax Net Gross Tax Net (In thousands) Other comprehensive income (loss): Change in unrealized holding gains (losses) on securities available-for-sale $ (2,479 ) $ 758 $ (1,721 ) $ 857 $ (327 ) $ 530 Reclassification adjustment for gains in net income (6 ) 2 (4 ) (1 ) — (1 ) Accretion of loss on securities reclassified to held to maturity 22 (3 ) 19 38 (15 ) 23 Change in fair value of interest rate swap 464 (134 ) 330 (72 ) 29 (43 ) Total other comprehensive income (loss) $ (1,999 ) $ 623 $ (1,376 ) $ 822 $ (313 ) $ 509 The following tables present the after-tax changes in the balances of each component of accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2018 and 2017 . Three Months Ended September 30, 2018 Components of Accumulated Total Unrealized Losses on Loss on Securities Unrealized Accumulated (In thousands) Balance at June 30, 2018 $ (2,496 ) $ (47 ) $ 201 $ (2,342 ) Other comprehensive income (loss) before reclassifications (369 ) 6 108 (255 ) Amounts reclassified from other comprehensive income (loss) — — — — Other comprehensive income (loss) (369 ) 6 108 (255 ) Balance at September 30, 2018 $ (2,865 ) $ (41 ) $ 309 $ (2,597 ) Nine Months Ended September 30, 2018 Components of Accumulated Total Unrealized Losses on Loss on Securities Unrealized Accumulated (In thousands) Balance at December 31, 2017 $ (1,303 ) $ (60 ) $ (21 ) $ (1,384 ) Other comprehensive income (loss) before reclassifications (1,721 ) 19 330 (1,372 ) Amounts reclassified from other comprehensive income (loss) (4 ) — — (4 ) Other comprehensive income (loss) (1,725 ) 19 330 (1,376 ) Reclassification due to the adoption of ASU No. 2016-01 163 — — 163 Balance at September 30, 2018 $ (2,865 ) $ (41 ) $ 309 $ (2,597 ) Three Months Ended September 30, 2017 Components of Accumulated Total Unrealized Losses on Loss on Securities Unrealized Accumulated (In thousands) Balance at June 30, 2017 $ (851 ) $ (65 ) $ (37 ) $ (953 ) Other comprehensive income (loss) before reclassifications 138 10 (6 ) 142 Amounts reclassified from other comprehensive income (loss) (1 ) — — (1 ) Other comprehensive income (loss) 137 10 (6 ) 141 Balance at September 30, 2017 $ (714 ) $ (55 ) $ (43 ) $ (812 ) Nine Months Ended September 30, 2017 Components of Accumulated Total Unrealized Losses on Loss on Securities Unrealized Accumulated (In thousands) Balance at December 31, 2016 $ (1,243 ) $ (78 ) $ — $ (1,321 ) Other comprehensive income (loss) before reclassifications 530 23 (43 ) 510 Amounts reclassified from other comprehensive income (loss) (1 ) — — (1 ) Other comprehensive income (loss) 529 23 (43 ) 509 Balance at September 30, 2017 $ (714 ) $ (55 ) $ (43 ) $ (812 ) The following tables present amounts reclassified from each component of accumulated other comprehensive loss for the nine months ended September 30, 2018 . Three Months Ended Income Components of Accumulated Other September 30, Statement Comprehensive Loss 2018 2017 Line Item (In thousands) Unrealized gains on securities available-for-sale, before tax $ — $ 1 Gains on securities transactions, net Tax effect — — Total reclassifications, net of tax $ — $ 1 Nine Months Ended Income Components of Accumulated Other September 30, Statement Comprehensive Loss 2018 2017 Line Item (In thousands) Unrealized gains on securities available-for-sale, before tax $ 6 $ 1 Gains on securities transactions, net Tax effect (2 ) — Total reclassifications, net of tax $ 4 $ 1 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of presentation | Certain information and note disclosures normally included in the unaudited consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been omitted pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Stewardship Financial Corporation Annual Report on Form 10-K for the fiscal year ended December 31, 2017 , filed with the SEC on March 23, 2018. The interim unaudited consolidated financial statements included herein have been prepared in accordance with instructions for Form 10-Q and the rules and regulations of the SEC and, therefore, do not include information or footnotes necessary for a complete presentation of consolidated financial condition, results of operations, and cash flows in conformity with GAAP. However, all adjustments, consisting only of normal recurring adjustments, which in the opinion of management are necessary for a fair presentation of the interim consolidated financial statements, have been included. The results of operations for the nine months ended September 30, 2018 are not necessarily indicative of the results which may be expected for the entire year. Certain prior period amounts have been reclassified to conform with the current period presentation. |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the accounts of Stewardship Financial Corporation and its wholly-owned subsidiary, Atlantic Stewardship Bank (the “Bank”), together referred to as “the Corporation”. The Bank includes its wholly-owned subsidiaries, Stewardship Investment Corporation, Stewardship Realty LLC, Atlantic Stewardship Insurance Company, LLC and several other subsidiaries formed to hold title to properties acquired through foreclosure or deed in lieu of foreclosure. The Bank’s subsidiaries have an insignificant impact on the Bank’s daily operations. All intercompany accounts and transactions have been eliminated in the consolidated financial statements. The consolidated financial statements of the Corporation have been prepared in conformity with GAAP. In preparing the consolidated financial statements, management is required to make estimates and assumptions, based on available information, that affect the amounts reported in the consolidated financial statements and disclosures provided. Actual results could differ significantly from those estimates. |
Material estimates | Material estimates Material estimates that are particularly susceptible to significant changes relate to the determination of the allowance for loan losses and deferred income taxes. Management believes the Corporation’s policies with respect to the methodology for the determination of the allowance for loan losses and the evaluation of deferred income taxes involves a higher degree of complexity and requires management to make difficult and subjective judgments, which often require assumptions or estimates about highly uncertain matters. Changes in these judgments, assumptions or estimates could materially impact results of operations. These critical policies and their application are periodically reviewed with the Audit Committee and the Board of Directors. |
Adoption of New Accounting Standards | Adoption of New Accounting Standards In May 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, "Revenue from Contracts with Customers (Topic 606)". The objective of this amendment is to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and International Financial Reporting Standards. This update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are in the scope of other standards. The ASU is effective for public business entities for financial statements issued for fiscal years beginning after December 15, 2017, and early adoption is permitted. Subsequently, the FASB issued the following standards related to ASU 2014-09: ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations;” ASU 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing;” ASU 2016-11, “Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting;” ASU 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients;” ASU 2016-20, "Technical Corrections and Improvements to Topic 606, Revenue Contracts with Customers;" ASU 2017-13, "Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments;" and ASU 2017-14, "Income Statement - Reporting Comprehensive Income (Topic 220), Revenue Recognition (Topic 605), and Revenue from Contracts with Customers (Topic 606): Amendments to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 116 and SEC Release No. 33-10403." These amendments are intended to improve and clarify the implementation guidance of ASU 2014-09 and have the same effective date as the original standard. The Corporation’s implementation efforts include the identification of revenue within the scope of the guidance, as well as the evaluation of revenue contracts and the respective performance obligations within those contracts. We have evaluated the nature of our contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the the Condensed Consolidated Statement of Income was not necessary. We generally satisfy our performance obligations on contracts with customers as services are rendered, and the transaction prices are typically fixed and charged either on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying this ASU that significantly affect the determination of the amount and timing of the revenue from contracts with customers. The Corporation has completed its evaluation and adopted this ASU effective January 1, 2018 using the modified retrospective approach. Adoption of ASU 2014-09 did not have a material impact on our consolidated financial statements and related disclosures as our primary sources of revenues are derived from interest and dividends earned on loans, securities and other financial instruments that are not within the scope of the new standard. Our revenue recognition pattern for revenue streams within the scope of the new standard, including but not limited to service charges on deposit accounts and debit card interchange, did not change significantly from prior practice. The modified retrospective method requires application of ASU 2014-09 to uncompleted contracts at the date of adoption, however, periods prior to the date of adoption have not been retrospectively revised as the impact of the new standard on uncompleted contracts as the date of adoption was not material. As such, a cumulative effective adjustment to opening retained earnings was not deemed necessary. In January 2016, the FASB issued ASU No. 2016-01, "Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Liabilities." This ASU addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. This amendment supersedes the guidance to classify equity securities with readily determinable fair values into different categories, requires equity securities to be measured at fair value with changes in the fair value recognized through net income, and simplifies the impairment assessment of equity investments without readily determinable fair values. The amendment requires public business entities that are required to disclose the fair value of financial instruments measured at amortized cost on the balance sheet to measure that fair value using the exit price notion. The amendment requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option. The amendment requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or in the accompanying notes to the financial statements. The amendment reduces diversity in current practice by clarifying that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available for sale securities in combination with the entity’s other deferred tax assets. This amendment is effective for fiscal years, including interim periods, beginning after December 15, 2017. Entities should apply the amendment by means of a cumulative-effect adjustment as of the beginning of the fiscal year of adoption, with the exception of the amendment related to equity securities without readily determinable fair values, which should be applied prospectively to equity investments that exist as of the date of adoption. The Corporation's adoption of the guidance resulted in the reclassification from accumulated other comprehensive income (loss) to retained earnings of $163,000 , reflected in the Consolidated Statements of Changes in Shareholders' Equity. In addition, the fair value of loans has been estimated using the exit price notion as described in Note 4. In February 2016, the FASB issued ASU 2016-02, “Leases (Subtopic 842).” This ASU requires all lessees to recognize a lease liability and a right-of-use asset, measured at the present value of the future minimum lease payments, at the lease commencement date. Lessor accounting remains largely unchanged under the new guidance. The amendments in ASU 2016-02 are effective for fiscal years, including interim periods, beginning after December 15, 2018. Early adoption of ASU 2016-02 is permitted. Subsequently, the FASB issued the following standards related to ASU 2016-02: ASU 2017-13, "Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments;" ASU 2018-1, "Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842; ASU 2018-10, "Codification Improvements to Topic 842, Leases;" and ASU 2018-11, "Leases (Topic 842): Targeted Improvements." Based on the current lease portfolio, upon adoption of the new accounting standard, the Corporation anticipates recognizing a lease liability and related right-of-use asset on the Consolidated Statement of financial Condition. Management is continuing to evaluate the Corporation's outstanding inventory of leases and determining the effect of recognizing operating leases on the Consolidated Statements of Financial Condition. The Corporation plans to adopt the modified retrospective approach under ASU 2018-11. The final impact of the standard will depend on the Corporation's lease composition as of the adoption date. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The main objective of this ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments by a reporting entity at each reporting date. The amendments in this ASU require financial assets measured at amortized cost to be presented at the net amount expected to be collected. The allowance for credit losses would represent a valuation account that would be deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The income statement would reflect 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. The measurement of expected credit losses would be based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. An entity will be required to use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. The amendments in ASU 2016-13 are effective for fiscal years, including interim periods, beginning after December 15, 2019. Early adoption of this ASU is permitted for fiscal years beginning after December 15, 2018. The Corporation is currently evaluating the potential impact of ASU 2016-13 on the Corporation's consolidated financial statements. The Corporation has formed a working group, under the direction of the Chief Financial Officer, which is currently developing an implementation plan to include assessment of processes, portfolio segmentation, model development, system requirements and the identification of data and resource needs, among other things. Also, the Corporation is currently evaluating third-party vendor solutions to assist in the application of ASU 2016-13. The adoption of ASU 2016-13 may result in an increase in the allowance for loan losses due to changing from an "incurred loss" model, which encompasses allowances for current known and inherent losses within the portfolio, to an "expected loss" model, which encompasses allowances for losses expected to be incurred over the life of the portfolio. Furthermore, ASU 2016-13 will necessitate establishing an allowance for expected credit losses on debt securities. The Corporation is currently unable to reasonably estimate the impact of adopting ASU 2016-13, and it is expected that the impact of adoption will be significantly influenced by the composition, characteristics and quality of our loan and securities portfolios as well as the prevailing economic conditions and forecasts as of the adoption date. In August 2017, the FASB issued ASU No. 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities", with the objective of improving the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. The amendments in ASU 2017-12 expand and refine hedge accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. This ASU will be effective for interim and annual periods beginning after December 15, 2018. Early adoption of ASU 2017-12 is permitted. As of September 30, 2018, the Corporation has early adopted ASU 2017-12 with no impact to the Corporation's consolidated financial statements. |
Securities - Available-for-Sa_2
Securities - Available-for-Sale and Held to Maturity (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Amortized Cost, Fair Value of Securities Available For Sale and Related Gross Unrealized Gains and Losses | The amortized cost, gross unrealized gains and losses and fair value of the available-for-sale securities were as follows: September 30, 2018 Amortized Gross Unrealized Fair Cost Gains Losses Value (In thousands) U.S. government-sponsored agencies $ 26,541 $ 7 $ 897 $ 25,651 Obligations of state and political subdivisions 3,210 — 132 3,078 Mortgage-backed securities 65,251 21 2,487 62,785 Asset-backed securities (a) 5,405 16 1 5,420 Corporate debt 13,386 26 582 12,830 Total available-for-sale securities $ 113,793 $ 70 $ 4,099 $ 109,764 December 31, 2017 Amortized Gross Unrealized Fair Cost Gains Losses Value (In thousands) U.S. government-sponsored agencies $ 21,699 $ 30 $ 396 $ 21,333 Obligations of state and political subdivisions 3,221 — 56 3,165 Mortgage-backed securities 64,775 70 1,011 63,834 Asset-backed securities (a) 6,672 30 4 6,698 Corporate debt 14,437 94 302 14,229 Total available-for-sale securities $ 110,804 $ 224 $ 1,769 $ 109,259 (a) Collateralized by student loans. |
Schedule of Held to Maturity Securities and Related Unrecognized Gains and Losses | The following is a summary of the amortized cost, gross unrealized gains and losses and fair value of the held to maturity securities: September 30, 2018 Amortized Gross Unrealized Fair Cost Gains Losses Value (In thousands) U.S. Treasury $ 1,000 $ — $ 20 $ 980 U.S. government-sponsored agencies 34,564 — 1,595 32,969 Obligations of state and political subdivisions 2,361 15 36 2,340 Mortgage-backed securities 24,302 32 676 23,658 Total held-to-maturity securities $ 62,227 $ 47 $ 2,327 $ 59,947 December 31, 2017 Amortized Gross Unrealized Fair Cost Gains Losses Value (In thousands) U.S. Treasury $ 999 $ — $ 11 $ 988 U.S. government-sponsored agencies 27,075 4 760 26,319 Obligations of state and political subdivisions 4,057 21 23 4,055 Mortgage-backed securities 20,311 76 198 20,189 Total held-to-maturity securities $ 52,442 $ 101 $ 992 $ 51,551 Held to Maturity September 30, 2018 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (In thousands) U.S. Treasury $ — $ — $ 980 $ (20 ) $ 980 $ (20 ) U.S. government- sponsored agencies 11,979 (201 ) 20,990 (1,394 ) 32,969 (1,595 ) Obligations of state and political subdivisions — — 456 (36 ) 456 (36 ) Mortgage-backed securities 13,395 (250 ) 9,089 (426 ) 22,484 (676 ) Total temporarily impaired securities $ 25,374 $ (451 ) $ 31,515 $ (1,876 ) $ 56,889 $ (2,327 ) December 31, 2017 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (In thousands) U.S. Treasury $ 988 $ (11 ) $ — $ — $ 988 $ (11 ) U.S. government- sponsored agencies 10,032 (139 ) 15,265 (621 ) 25,297 (760 ) Obligations of state and political subdivisions — — 474 (23 ) 474 (23 ) Mortgage-backed securities 9,531 (114 ) 3,896 (84 ) 13,427 (198 ) Total temporarily impaired securities $ 20,551 $ (264 ) $ 19,635 $ (728 ) $ 40,186 $ (992 ) |
Amortized Cost and Fair Value of the Investment Securities Portfolio by Contractual Maturity | The following table presents the amortized cost and fair value of the debt securities portfolio by contractual maturity. As issuers may have the right to call or prepay obligations with or without call or prepayment premiums, the actual maturities may differ from contractual maturities. Securities not due at a single maturity date, such as mortgage-backed securities and asset-backed securities, are shown separately. September 30, 2018 Amortized Cost Fair Value (In thousands) Available-for-sale Within one year $ 397 $ 395 After one year, but within five years 14,072 13,758 After five years, but within ten years 24,037 23,064 After ten years 4,631 4,342 Mortgage-backed securities 65,251 62,785 Asset-backed securities 5,405 5,420 Total $ 113,793 $ 109,764 Held to maturity Within one year $ 335 $ 335 After one year, but within five years 18,033 17,486 After five years, but within ten years 19,066 18,013 After ten years 491 455 Mortgage-backed securities 24,302 23,658 Total $ 62,227 $ 59,947 |
Schedule of Continuous Unrealized Loss Position for Investment Securities Available for Sale and Held to Maturity | The following tables summarize the fair value and unrealized losses of those investment securities which reported an unrealized loss at September 30, 2018 and December 31, 2017 , and if the unrealized loss position was continuous for the twelve months prior to September 30, 2018 and December 31, 2017 . Available-for-Sale September 30, 2018 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (In thousands) U.S. government- sponsored agencies $ 11,073 $ (189 ) $ 13,394 $ (708 ) $ 24,467 $ (897 ) Obligations of state and political subdivisions 1,363 (21 ) 1,715 (111 ) 3,078 (132 ) Mortgage-backed securities 19,078 (344 ) 41,106 (2,143 ) 60,184 (2,487 ) Asset-backed securities 2,999 (1 ) — — 2,999 (1 ) Corporate debt 2,490 (10 ) 8,814 (572 ) 11,304 (582 ) Total temporarily impaired securities $ 37,003 $ (565 ) $ 65,029 $ (3,534 ) $ 102,032 $ (4,099 ) December 31, 2017 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (In thousands) U.S. government- sponsored agencies $ 8,260 $ (70 ) $ 11,174 $ (326 ) $ 19,434 $ (396 ) Obligations of state and political subdivisions 1,384 (7 ) 1,781 (49 ) 3,165 (56 ) Mortgage-backed securities 30,575 (201 ) 26,809 (810 ) 57,384 (1,011 ) Asset-backed securities — — 3,013 (4 ) 3,013 (4 ) Corporate debt — — 9,135 (302 ) 9,135 (302 ) Total temporarily impaired securities $ 40,219 $ (278 ) $ 51,912 $ (1,491 ) $ 92,131 $ (1,769 ) |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Summary of Loan Portfolio | At September 30, 2018 and December 31, 2017 , respectively, the loan portfolio consisted of the following: September 30, December 31, (In thousands) Commercial: Secured by real estate $ 30,576 $ 31,684 Other 66,309 57,372 Commercial real estate 499,571 493,542 Commercial construction 6,716 2,152 Residential real estate 83,729 85,760 Consumer: Secured by real estate 34,749 32,207 Other 421 563 Government Guaranteed Loans - guaranteed portion 7,206 8,334 Other 198 106 Total gross loans 729,475 711,720 Less: Deferred loan costs, net 483 397 Allowance for loan losses 7,904 8,762 8,387 9,159 Loans, net $ 721,088 $ 702,561 |
Schedule of Allowance for Loan Losses | Activity in the allowance for loan losses is summarized as follows: Three Months Ended September 30, 2018 Balance, beginning of period Provision charged to operations Loans charged off Recoveries of loans charged off Balance, end of period (In thousands) Commercial $ 2,931 $ (250 ) $ — $ 25 $ 2,706 Commercial real estate 5,204 (258 ) — 16 4,962 Commercial construction 71 19 — — 90 Residential real estate 69 (5 ) — — 64 Consumer 69 — — 1 70 Other loans 1 1 (1 ) — 1 Unallocated 8 3 — — 11 Total $ 8,353 $ (490 ) $ (1 ) $ 42 $ 7,904 Nine Months Ended September 30, 2018 Balance, beginning of period Provision charged to operations Loans charged off Recoveries of loans charged off Balance, end of period (In thousands) Commercial $ 3,058 $ (448 ) $ (29 ) $ 125 $ 2,706 Commercial real estate 5,531 (1,219 ) — 650 4,962 Commercial construction 33 57 — — 90 Residential real estate 68 (4 ) — — 64 Consumer 64 4 — 2 70 Other loans 1 1 (2 ) 1 1 Unallocated 7 4 — — 11 Total $ 8,762 $ (1,605 ) $ (31 ) $ 778 $ 7,904 Three Months Ended September 30, 2017 Balance, beginning of period Provision charged to operations Loans charged off Recoveries of loans charged off Balance, end of period (In thousands) Commercial $ 2,662 $ 145 $ (1 ) $ 18 $ 2,824 Commercial real estate 5,502 (80 ) — 21 5,443 Commercial construction 253 (27 ) — — 226 Residential real estate 58 (1 ) — — 57 Consumer 63 (7 ) — 6 62 Other loans 5 (5 ) — — — Unallocated 7 (5 ) — — 2 Total $ 8,550 $ 20 $ (1 ) $ 45 $ 8,614 Nine Months Ended September 30, 2017 Balance, beginning of period Provision charged to operations Loans charged off Recoveries of loans charged off Balance, end of period (In thousands) Commercial $ 2,663 $ 111 $ (3 ) $ 53 $ 2,824 Commercial real estate 4,734 637 — 72 5,443 Commercial construction 355 (129 ) — — 226 Residential real estate 66 (9 ) — — 57 Consumer 75 (20 ) — 7 62 Other loans — — (1 ) 1 — Unallocated 12 (10 ) — — 2 Total $ 7,905 $ 580 $ (4 ) $ 133 $ 8,614 The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method as of September 30, 2018 and December 31, 2017 . September 30, 2018 Commercial Commercial Real Estate Commercial Construction Residential Real Estate Consumer Government Guaranteed Other Loans Unallocated Total (In thousands) Allowance for loan losses Ending allowance balance attributable to loans Individually evaluated for impairment $ 76 $ 564 $ — $ — $ — $ — $ — $ — $ 640 Collectively evaluated for impairment 2,630 4,398 90 64 70 — 1 11 7,264 Total ending allowance balance $ 2,706 $ 4,962 $ 90 $ 64 $ 70 $ — $ 1 $ 11 $ 7,904 Loans: Loans individually evaluated for impairment $ 642 $ 6,114 $ — $ 275 $ 16 $ — $ — $ — $ 7,047 Loans collectively evaluated for impairment 96,243 493,457 6,716 83,454 35,154 7,206 198 — 722,428 Total ending loan balance $ 96,885 $ 499,571 $ 6,716 $ 83,729 $ 35,170 $ 7,206 $ 198 $ — $ 729,475 December 31, 2017 Commercial Commercial Real Estate Commercial Construction Residential Real Estate Consumer Government Guaranteed Other Loans Unallocated Total (In thousands) Allowance for loan losses Ending allowance balance attributable to loans Individually evaluated for impairment $ 34 $ 575 $ — $ — $ — $ — $ — $ — $ 609 Collectively evaluated for impairment 3,024 4,956 33 68 64 — 1 7 8,153 Total ending allowance balance $ 3,058 $ 5,531 $ 33 $ 68 $ 64 $ — $ 1 $ 7 $ 8,762 Loans: Loans individually evaluated for impairment $ 549 $ 6,236 $ — $ 295 $ 62 $ — $ — $ — $ 7,142 Loans collectively evaluated for impairment 88,507 487,306 2,152 85,465 32,708 8,334 106 — 704,578 Total ending loan balance $ 89,056 $ 493,542 $ 2,152 $ 85,760 $ 32,770 $ 8,334 $ 106 $ — $ 711,720 |
Schedule of Recorded Investment in Nonaccrual Loans | The following table presents the recorded investment in nonaccrual loans at the dates indicated: September 30, December 31, (In thousands) Commercial: Secured by real estate $ 397 $ 136 Commercial real estate 583 701 Residential real estate 275 295 Consumer: Secured by real estate 16 62 Total nonaccrual loans $ 1,271 $ 1,194 |
Schedule of Recorded Investments in Impaired Loans | The following table presents information regarding loans individually evaluated for impairment by class of loan at and for the periods indicated: At September 30, 2018 Unpaid Recorded Allowance for (In thousands) With no related allowance recorded: Commercial: Secured by real estate $ 452 $ 422 Commercial real estate 3,354 3,027 Residential Real Estate 284 275 Consumer: Secured by real estate 21 16 4,111 3,740 With an allowance recorded: Commercial: Secured by real estate 97 97 $ 71 Other 123 123 5 Commercial real estate 3,086 3,087 564 3,306 3,307 640 Total: Commercial: Secured by real estate 549 519 71 Other 123 123 5 Commercial real estate 6,440 6,114 564 Residential Real Estate 284 275 — Consumer: Secured by real estate 21 16 — $ 7,417 $ 7,047 $ 640 At December 31, 2017 Unpaid Recorded Allowance for (In thousands) With no related allowance recorded: Commercial: Secured by real estate $ 389 $ 389 Commercial real estate 3,442 3,124 Residential real estate 295 295 Consumer: Secured by real estate 71 62 4,197 3,870 With an allowance recorded: Commercial: Secured by real estate 33 32 $ 27 Other 128 128 7 Commercial real estate 3,112 3,112 575 3,273 3,272 609 Total: Commercial: Secured by real estate 422 421 27 Other 128 128 7 Commercial real estate 6,554 6,236 575 Residential real estate 295 295 — Consumer: Secured by real estate 71 62 — $ 7,470 $ 7,142 $ 609 Three Months Ended September 30, 2018 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (In thousands) With no related allowance recorded: Commercial: Secured by real estate $ 545 $ 2 $ 878 $ 22 Commercial real estate 3,043 29 3,172 30 Residential Real Estate 278 — — — Consumer: Secured by real estate 17 — 68 — Total 3,883 31 4,118 52 With an allowance recorded: Commercial: Secured by real estate 98 1 36 — Other 124 2 150 3 Commercial real estate 3,091 41 3,135 32 3,313 44 3,321 35 Total $ 7,196 $ 75 $ 7,439 $ 87 Nine Months Ended September 30, 2018 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (In thousands) With no related allowance recorded: Commercial: Secured by real estate $ 465 $ 10 $ 1,107 $ 63 Commercial real estate 3,076 84 3,155 92 Residential Real Estate 285 — — — Consumer: Secured by real estate 35 — 72 — Total 3,861 94 4,334 155 With an allowance recorded: Commercial: Secured by real estate 57 2 48 — Other 126 6 182 10 Commercial real estate 3,099 121 3,152 96 3,282 129 3,382 106 Total $ 7,143 $ 223 $ 7,716 $ 261 |
Schedule of Aging of the Recorded Investment in Past Due Loans by Class of Loans | The following table presents the aging of the recorded investment in past due loans by class of loans as of September 30, 2018 and December 31, 2017 . Nonaccrual loans are included in the disclosure by payment status. September 30, 2018 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Past Due Total Past Due Current Total (In thousands) Commercial: Secured by real estate $ — $ 292 $ 105 $ 397 $ 30,179 $ 30,576 Other 6 — — 6 66,303 66,309 Commercial real estate — 71 512 583 498,988 499,571 Commercial construction — — — — 6,716 6,716 Residential real estate 308 — — 308 83,421 83,729 Consumer: Secured by real estate 61 — — 61 34,688 34,749 Other 1 — — 1 420 421 Government Guaranteed — — — — 7,206 7,206 Other — — — — 198 198 Total $ 376 $ 363 $ 617 $ 1,356 $ 728,119 $ 729,475 December 31, 2017 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Past Due Total Past Due Current Total (In thousands) Commercial: Secured by real estate $ 186 $ — $ — $ 186 $ 31,498 $ 31,684 Other 8 — — 8 57,364 57,372 Commercial real estate 300 — 599 899 492,643 493,542 Commercial construction — — — — 2,152 2,152 Residential real estate 314 — — 314 85,446 85,760 Consumer: Secured by real estate — — 28 28 32,179 32,207 Other — — — — 563 563 Government Guaranteed — — — — 8,334 8,334 Other — — — — 106 106 Total $ 808 $ — $ 627 $ 1,435 $ 710,285 $ 711,720 |
Schedule of Troubled Debt Restructurings | The following table presents the number of loans and their recorded investment immediately prior to the modification date and immediately after the modification date by class that were modified as troubled debt restructuring during the three and nine months ended September 30, 2018 : Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Number of Loans Pre-Modification Recorded Investment Post-Modification Recorded Investment Number of Loans Pre-Modification Recorded Investment Post-Modification Recorded Investment (Dollars in thousands) (Dollars in thousands) Commercial: Secured by real estate — $ — $ — 1 $ 97 $ 97 Total — $ — $ — 1 $ 97 $ 97 |
Schedule of Loans by Credit Quality Indicators | As of September 30, 2018 and December 31, 2017 , and based on the most recent analysis performed at those times, the risk category of loans by class is as follows: September 30, 2018 Pass Special Mention Substandard Doubtful Loss Total (In thousands) Commercial: Secured by real estate $ 28,602 $ 1,273 $ 701 $ — $ — $ 30,576 Other 64,711 1,135 463 — — 66,309 Commercial real estate 485,606 8,960 5,005 — — 499,571 Commercial construction 6,716 — — — — 6,716 Government Guaranteed Loans - guaranteed portion 7,206 — — — — 7,206 Total $ 592,841 $ 11,368 $ 6,169 $ — $ — $ 610,378 December 31, 2017 Pass Special Mention Substandard Doubtful Loss Total (In thousands) Commercial: Secured by real estate $ 29,025 $ 2,153 $ 506 $ — $ — $ 31,684 Other 56,632 216 524 — — 57,372 Commercial real estate 481,443 10,023 2,076 — — 493,542 Commercial construction 2,152 — — — — 2,152 Government Guaranteed Loans - guaranteed portion 8,334 — — — — 8,334 Total $ 577,586 $ 12,392 $ 3,106 $ — $ — $ 593,084 |
Schedule of Recorded Investment in Residential Real Estate and Consumer Loans Based on Payment Activity | The following table presents the recorded investment in residential real estate and consumer loans based on payment activity as of September 30, 2018 and December 31, 2017 . September 30, 2018 Current Past Due or Nonaccrual Total (In thousands) Residential real estate $ 83,146 $ 583 $ 83,729 Consumer: Secured by real estate 34,688 61 34,749 Other 420 1 421 Total $ 118,254 $ 645 $ 118,899 December 31, 2017 Current Past Due or Nonaccrual Total (In thousands) Residential real estate $ 85,446 $ 314 $ 85,760 Consumer: Secured by real estate 32,179 28 32,207 Other 563 — 563 Total $ 118,188 $ 342 $ 118,530 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below: Fair Value Measurements Using: Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) At September 30, 2018 (In thousands) Assets: Available-for-sale securities U.S. government - sponsored agencies $ 25,651 $ — $ 25,651 $ — Obligations of state and political subdivisions 3,078 — 3,078 — Mortgage-backed securities 62,785 — 62,785 — Asset-backed securities 5,420 — 5,420 — Corporate debt 12,830 — 12,830 — Total available-for-sale securities $ 109,764 $ — $ 109,764 $ — Other equity investments $ 3,661 $ 3,601 $ 60 $ — Interest rate swap $ 435 $ — $ 435 $ — Fair Value Measurements Using: Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) At December 31, 2017 (In thousands) Assets: Available-for-sale securities U.S. government - sponsored agencies $ 21,333 $ — $ 21,333 $ — Obligations of state and political subdivisions 3,165 — 3,165 — Mortgage-backed securities 63,834 — 63,834 — Asset-backed securities 6,698 — 6,698 — Corporate debt 14,229 — 14,229 — Total available-for-sale securities $ 109,259 $ — $ 109,259 $ — Other equity investments $ 3,756 $ 3,696 $ 60 $ — Liabilities: Interest rate swap $ 29 $ — $ 29 $ — |
Schedule of Assets and Liabilities Measured at Fair Value on a Non-recurring Basis | Assets and liabilities measured at fair value on a non-recurring basis are summarized below: Fair Value Measurements Using: Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) At September 30, 2018 (In thousands) Assets: Impaired loans Commercial: Secured by real estate $ 318 $ — $ — $ 318 $ 318 $ — $ — $ 318 Fair Value Measurements Using: Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) At December 31, 2017 (In thousands) Assets: Impaired loans Commercial: Secured by real estate $ 109 $ — $ — $ 109 Commercial real estate 192 — — 192 Residential real estate 296 — — 296 $ 597 $ — $ — $ 597 |
Schedule of Fair Value Assumptions for Level 3 Assets Measured at Fair Value on a Non-recurring Basis | For the Level 3 assets measured at fair value on a non-recurring basis, the significant unobservable inputs used in the fair value measurements were as follows: September 30, 2018 Fair Weighted Assets Value Valuation Technique Unobservable Inputs Average (Dollars in thousands) Impaired loans $ 318 Comparable real estate sales and / or the income approach. Adjustments for differences between comparable sales and income data available. 5% Estimated selling costs. 7% December 31, 2017 Fair Weighted Assets Value Valuation Technique Unobservable Inputs Average (Dollars in thousands) Impaired loans $ 597 Comparable real estate sales and / or the income approach. Adjustments for differences between comparable sales and income data available. 5% Estimated selling costs. 7% |
Schedule of Fair Value Estimates for the Financial Instruments | Fair value estimates for the Corporation’s financial instruments are summarized below: Fair Value Measurements Using: Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) At September 30, 2018 (In thousands) Financial assets: Cash and cash equivalents $ 10,839 $ 10,839 $ — $ — Securities available-for-sale 109,764 — 109,764 — Securities held to maturity 62,227 — 59,947 — Other equity investments 3,661 3,601 60 — FHLB-NY stock 3,552 N/A N/A N/A Loans held for sale — — — — Loans, net 721,088 — — 718,718 Interest rate swap 435 — 435 — Financial liabilities: Deposits 786,566 588,150 196,109 — FHLB-NY advances 56,800 — 56,187 — Subordinated Debentures and Subordinated Notes 23,366 — — 23,504 Fair Value Measurements Using: Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2017 (In thousands) Financial assets: Cash and cash equivalents $ 21,270 $ 21,270 $ — $ — Securities available-for-sale 109,259 — 109,259 — Securities held to maturity 52,442 — 51,551 — Other equity investments 3,756 3,696 60 — FHLB-NY stock 3,715 N/A N/A N/A Loans held for sale 370 — — 370 Loans, net 702,561 — — 714,387 Financial liabilities: Deposits 764,099 565,292 197,696 — FHLB-NY advances 63,760 — 63,340 — Subordinated Debentures and Subordinated Notes 23,317 — — 23,478 Interest rate swap 29 — 29 — |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Common Share | The following reconciles the income available to common shareholders (numerator) and the weighted average common stock outstanding (denominator) for both basic and diluted earnings per share. Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 (Dollars in thousands) Net income $ 2,162 $ 1,640 $ 6,271 $ 3,899 Weighted average common shares outstanding - basic 8,677,445 8,643,737 8,670,662 7,656,942 Effect of dilutive securities - stock options N/A N/A N/A N/A Weighted average common shares outstanding - diluted 8,677,445 8,643,737 8,670,662 7,656,942 Basic earnings per common share $ 0.25 $ 0.19 $ 0.72 $ 0.51 Diluted earnings per common share $ 0.25 $ 0.19 $ 0.72 $ 0.51 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Components of Comprehensive Income | The components of other comprehensive (loss) income, both gross and net of tax, are presented for the periods below: Three Months Ended September 30, 2018 2017 Gross Tax Net Gross Tax Net (In thousands) Other comprehensive income (loss): Change in unrealized holding gains (losses) on securities available-for-sale $ (647 ) $ 278 $ (369 ) $ 225 $ (87 ) $ 138 Reclassification adjustment for gains in net income — — — (1 ) — (1 ) Accretion of loss on securities reclassified to held to maturity 4 2 6 17 (7 ) 10 Change in fair value of interest rate swap 155 (47 ) 108 (10 ) 4 (6 ) Total other comprehensive income (loss) $ (488 ) $ 233 $ (255 ) $ 231 $ (90 ) $ 141 Nine Months Ended September 30, 2018 2017 Gross Tax Net Gross Tax Net (In thousands) Other comprehensive income (loss): Change in unrealized holding gains (losses) on securities available-for-sale $ (2,479 ) $ 758 $ (1,721 ) $ 857 $ (327 ) $ 530 Reclassification adjustment for gains in net income (6 ) 2 (4 ) (1 ) — (1 ) Accretion of loss on securities reclassified to held to maturity 22 (3 ) 19 38 (15 ) 23 Change in fair value of interest rate swap 464 (134 ) 330 (72 ) 29 (43 ) Total other comprehensive income (loss) $ (1,999 ) $ 623 $ (1,376 ) $ 822 $ (313 ) $ 509 |
Schedule of Components of Accumulated Other Comprehensive Income | The following tables present the after-tax changes in the balances of each component of accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2018 and 2017 . Three Months Ended September 30, 2018 Components of Accumulated Total Unrealized Losses on Loss on Securities Unrealized Accumulated (In thousands) Balance at June 30, 2018 $ (2,496 ) $ (47 ) $ 201 $ (2,342 ) Other comprehensive income (loss) before reclassifications (369 ) 6 108 (255 ) Amounts reclassified from other comprehensive income (loss) — — — — Other comprehensive income (loss) (369 ) 6 108 (255 ) Balance at September 30, 2018 $ (2,865 ) $ (41 ) $ 309 $ (2,597 ) Nine Months Ended September 30, 2018 Components of Accumulated Total Unrealized Losses on Loss on Securities Unrealized Accumulated (In thousands) Balance at December 31, 2017 $ (1,303 ) $ (60 ) $ (21 ) $ (1,384 ) Other comprehensive income (loss) before reclassifications (1,721 ) 19 330 (1,372 ) Amounts reclassified from other comprehensive income (loss) (4 ) — — (4 ) Other comprehensive income (loss) (1,725 ) 19 330 (1,376 ) Reclassification due to the adoption of ASU No. 2016-01 163 — — 163 Balance at September 30, 2018 $ (2,865 ) $ (41 ) $ 309 $ (2,597 ) Three Months Ended September 30, 2017 Components of Accumulated Total Unrealized Losses on Loss on Securities Unrealized Accumulated (In thousands) Balance at June 30, 2017 $ (851 ) $ (65 ) $ (37 ) $ (953 ) Other comprehensive income (loss) before reclassifications 138 10 (6 ) 142 Amounts reclassified from other comprehensive income (loss) (1 ) — — (1 ) Other comprehensive income (loss) 137 10 (6 ) 141 Balance at September 30, 2017 $ (714 ) $ (55 ) $ (43 ) $ (812 ) Nine Months Ended September 30, 2017 Components of Accumulated Total Unrealized Losses on Loss on Securities Unrealized Accumulated (In thousands) Balance at December 31, 2016 $ (1,243 ) $ (78 ) $ — $ (1,321 ) Other comprehensive income (loss) before reclassifications 530 23 (43 ) 510 Amounts reclassified from other comprehensive income (loss) (1 ) — — (1 ) Other comprehensive income (loss) 529 23 (43 ) 509 Balance at September 30, 2017 $ (714 ) $ (55 ) $ (43 ) $ (812 ) |
Schedule of Amount Reclassified from Each Component of Accumulated Other Comprehensive Income | The following tables present amounts reclassified from each component of accumulated other comprehensive loss for the nine months ended September 30, 2018 . Three Months Ended Income Components of Accumulated Other September 30, Statement Comprehensive Loss 2018 2017 Line Item (In thousands) Unrealized gains on securities available-for-sale, before tax $ — $ 1 Gains on securities transactions, net Tax effect — — Total reclassifications, net of tax $ — $ 1 Nine Months Ended Income Components of Accumulated Other September 30, Statement Comprehensive Loss 2018 2017 Line Item (In thousands) Unrealized gains on securities available-for-sale, before tax $ 6 $ 1 Gains on securities transactions, net Tax effect (2 ) — Total reclassifications, net of tax $ 4 $ 1 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies Narrative (Details) $ in Thousands | Dec. 31, 2017USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Reclassification due to the adoption of ASU 2016-01 | $ 163 |
Accumulated Other Comprehensive Income (Loss) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Reclassification due to the adoption of ASU 2016-01 | 163 |
Accumulated Other Comprehensive Income (Loss) | Accounting Standards Update 2016-01 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Reclassification due to the adoption of ASU 2016-01 | (163) |
Retained Earnings | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Reclassification due to the adoption of ASU 2016-01 | (163) |
Retained Earnings | Accounting Standards Update 2016-01 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Reclassification due to the adoption of ASU 2016-01 | $ 163 |
Securities - Available-for-Sa_3
Securities - Available-for-Sale and Held to Maturity (Narrative) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($)security | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)security | Sep. 30, 2017USD ($) | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from sales and calls on securities available-for-sale | $ | $ 0 | $ 500,000 | $ 1,006,000 | $ 500,000 |
Gross gains realized from sales or calls of available-for-sale securities | $ | 0 | 1,000 | 6,000 | 1,000 |
Gross losses realized from sales or calls of available for sale securities | $ | 0 | 0 | 0 | 0 |
Proceeds from calls on securities held-to-maturity | $ | 0 | 400,000 | 280,000 | 1,120,000 |
Gross gains realized from calls of held to maturity securities | $ | 0 | $ 0 | 0 | $ 0 |
Gross losses realized from calls of held to maturity securities | $ | $ 0 | $ 0 | ||
U.S. government-sponsored agencies | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Debt securities, available-for-sale, number of positions | 17 | 17 | ||
Held-to-maturity securities, number of positions | 22 | 22 | ||
Obligations of state and political subdivisions | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Debt securities, available-for-sale, number of positions | 4 | 4 | ||
Held-to-maturity securities, number of positions | 1 | 1 | ||
Mortgage-backed securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Debt securities, available-for-sale, number of positions | 52 | 52 | ||
Held-to-maturity securities, number of positions | 21 | 21 | ||
Corporate debt securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Debt securities, available-for-sale, number of positions | 9 | 9 | ||
U.S. Treasury | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Held-to-maturity securities, number of positions | 1 | 1 |
Securities - Available-for-Sa_4
Securities - Available-for-Sale and Held to Maturity (Schedule of Amortized Cost, Fair Value of Securities Available For Sale and Related Gross Unrealized Gains and Losses) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, amortized cost basis | $ 113,793 | $ 110,804 |
Available-for-sale securities, gross unrealized gains | 70 | 224 |
Available-for-sale securities, gross unrealized losses | 4,099 | 1,769 |
Available-for-sale securities, fair value | 109,764 | 109,259 |
U.S. government-sponsored agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, amortized cost basis | 26,541 | 21,699 |
Available-for-sale securities, gross unrealized gains | 7 | 30 |
Available-for-sale securities, gross unrealized losses | 897 | 396 |
Available-for-sale securities, fair value | 25,651 | 21,333 |
Obligations of state and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, amortized cost basis | 3,210 | 3,221 |
Available-for-sale securities, gross unrealized gains | 0 | 0 |
Available-for-sale securities, gross unrealized losses | 132 | 56 |
Available-for-sale securities, fair value | 3,078 | 3,165 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, amortized cost basis | 65,251 | 64,775 |
Available-for-sale securities, gross unrealized gains | 21 | 70 |
Available-for-sale securities, gross unrealized losses | 2,487 | 1,011 |
Available-for-sale securities, fair value | 62,785 | 63,834 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, amortized cost basis | 5,405 | 6,672 |
Available-for-sale securities, gross unrealized gains | 16 | 30 |
Available-for-sale securities, gross unrealized losses | 1 | 4 |
Available-for-sale securities, fair value | 5,420 | 6,698 |
Corporate debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, amortized cost basis | 13,386 | 14,437 |
Available-for-sale securities, gross unrealized gains | 26 | 94 |
Available-for-sale securities, gross unrealized losses | 582 | 302 |
Available-for-sale securities, fair value | $ 12,830 | $ 14,229 |
Securities - Available-for-Sa_5
Securities - Available-for-Sale and Held to Maturity (Schedule of Held to Maturity Securities and Related Unrecognized Gains and Losses) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Securities, Held-to-maturity [Abstract] | ||
Amortized Cost | $ 62,227 | $ 52,442 |
Gross Unrealized Gains | 47 | 101 |
Gross Unrealized Losses | 2,327 | 992 |
Fair value | 59,947 | 51,551 |
U.S. Treasury | ||
Debt Securities, Held-to-maturity [Abstract] | ||
Amortized Cost | 1,000 | 999 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 20 | 11 |
Fair value | 980 | 988 |
U.S. government-sponsored agencies | ||
Debt Securities, Held-to-maturity [Abstract] | ||
Amortized Cost | 34,564 | 27,075 |
Gross Unrealized Gains | 0 | 4 |
Gross Unrealized Losses | 1,595 | 760 |
Fair value | 32,969 | 26,319 |
Obligations of state and political subdivisions | ||
Debt Securities, Held-to-maturity [Abstract] | ||
Amortized Cost | 2,361 | 4,057 |
Gross Unrealized Gains | 15 | 21 |
Gross Unrealized Losses | 36 | 23 |
Fair value | 2,340 | 4,055 |
Mortgage-backed securities | ||
Debt Securities, Held-to-maturity [Abstract] | ||
Amortized Cost | 24,302 | 20,311 |
Gross Unrealized Gains | 32 | 76 |
Gross Unrealized Losses | 676 | 198 |
Fair value | $ 23,658 | $ 20,189 |
Securities - Available-for-Sa_6
Securities - Available-for-Sale and Held to Maturity (Schedule of Amortized Cost and Fair Value of the Investment Securities Portfolio by Contractual Maturity) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Available-for-sale, Amortized Cost | ||
Within one year | $ 397 | |
After one year, but within five years | 14,072 | |
After five years, but within ten years | 24,037 | |
After ten years | 4,631 | |
Amortized Cost | 113,793 | $ 110,804 |
Available-for-sale, Fair Value | ||
Within one year | 395 | |
After one year, but within five years | 13,758 | |
After five years, but within ten years | 23,064 | |
After ten years | 4,342 | |
Fair Value | 109,764 | 109,259 |
Held to maturity, Amortized Cost | ||
Within one year | 335 | |
After one year, but within five years | 18,033 | |
After five years, but within ten years | 19,066 | |
After ten years | 491 | |
Securities held to maturity | 62,227 | 52,442 |
Held to maturity, Fair Value | ||
Within one year | 335 | |
After one year, but within five years | 17,486 | |
After five years, but within ten years | 18,013 | |
After ten years | 455 | |
Fair value | 59,947 | 51,551 |
Mortgage-backed securities | ||
Available-for-sale, Amortized Cost | ||
Amortized Cost | 65,251 | 64,775 |
Available-for-sale, Fair Value | ||
Fair Value | 62,785 | 63,834 |
Held to maturity, Amortized Cost | ||
Securities held to maturity | 24,302 | |
Held to maturity, Fair Value | ||
Fair value | 23,658 | 20,189 |
Asset-backed securities | ||
Available-for-sale, Amortized Cost | ||
Amortized Cost | 5,405 | 6,672 |
Available-for-sale, Fair Value | ||
Fair Value | $ 5,420 | $ 6,698 |
Securities - Available-for-Sa_7
Securities - Available-for-Sale and Held to Maturity (Schedule of Continuous Unrealized Loss Position for Investment Securities Available for Sale) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Available for sale, temporarily impaired securities | ||
Less than 12 Months, Fair Value | $ 37,003 | $ 40,219 |
Less than 12 Months, Unrealized Losses | (565) | (278) |
12 Months or Longer, Fair Value | 65,029 | 51,912 |
12 Months or Longer, Unrealized Losses | (3,534) | (1,491) |
Fair Value | 102,032 | 92,131 |
Unrealized Losses | (4,099) | (1,769) |
Held to maturity securities,temporarily impaired securities | ||
Less than 12 Months, Fair Value | 25,374 | 20,551 |
Less than 12 Months, Unrealized Losses | (451) | (264) |
12 Months or Longer, Fair Value | 31,515 | 19,635 |
12 Months or Longer, Unrealized Losses | (1,876) | (728) |
Fair Value | 56,889 | 40,186 |
Unrealized Losses | (2,327) | (992) |
U.S. Treasury | ||
Held to maturity securities,temporarily impaired securities | ||
Less than 12 Months, Fair Value | 0 | 988 |
Less than 12 Months, Unrealized Losses | 0 | (11) |
12 Months or Longer, Fair Value | 980 | 0 |
12 Months or Longer, Unrealized Losses | (20) | 0 |
Fair Value | 980 | 988 |
Unrealized Losses | (20) | (11) |
U.S. government-sponsored agencies | ||
Available for sale, temporarily impaired securities | ||
Less than 12 Months, Fair Value | 11,073 | 8,260 |
Less than 12 Months, Unrealized Losses | (189) | (70) |
12 Months or Longer, Fair Value | 13,394 | 11,174 |
12 Months or Longer, Unrealized Losses | (708) | (326) |
Fair Value | 24,467 | 19,434 |
Unrealized Losses | (897) | (396) |
Held to maturity securities,temporarily impaired securities | ||
Less than 12 Months, Fair Value | 11,979 | 10,032 |
Less than 12 Months, Unrealized Losses | (201) | (139) |
12 Months or Longer, Fair Value | 20,990 | 15,265 |
12 Months or Longer, Unrealized Losses | (1,394) | (621) |
Fair Value | 32,969 | 25,297 |
Unrealized Losses | (1,595) | (760) |
Obligations of state and political subdivisions | ||
Available for sale, temporarily impaired securities | ||
Less than 12 Months, Fair Value | 1,363 | 1,384 |
Less than 12 Months, Unrealized Losses | (21) | (7) |
12 Months or Longer, Fair Value | 1,715 | 1,781 |
12 Months or Longer, Unrealized Losses | (111) | (49) |
Fair Value | 3,078 | 3,165 |
Unrealized Losses | (132) | (56) |
Held to maturity securities,temporarily impaired securities | ||
Less than 12 Months, Fair Value | 0 | 0 |
Less than 12 Months, Unrealized Losses | 0 | 0 |
12 Months or Longer, Fair Value | 456 | 474 |
12 Months or Longer, Unrealized Losses | (36) | (23) |
Fair Value | 456 | 474 |
Unrealized Losses | (36) | (23) |
Mortgage-backed securities | ||
Available for sale, temporarily impaired securities | ||
Less than 12 Months, Fair Value | 19,078 | 30,575 |
Less than 12 Months, Unrealized Losses | (344) | (201) |
12 Months or Longer, Fair Value | 41,106 | 26,809 |
12 Months or Longer, Unrealized Losses | (2,143) | (810) |
Fair Value | 60,184 | 57,384 |
Unrealized Losses | (2,487) | (1,011) |
Held to maturity securities,temporarily impaired securities | ||
Less than 12 Months, Fair Value | 13,395 | 9,531 |
Less than 12 Months, Unrealized Losses | (250) | (114) |
12 Months or Longer, Fair Value | 9,089 | 3,896 |
12 Months or Longer, Unrealized Losses | (426) | (84) |
Fair Value | 22,484 | 13,427 |
Unrealized Losses | (676) | (198) |
Asset-backed securities | ||
Available for sale, temporarily impaired securities | ||
Less than 12 Months, Fair Value | 2,999 | 0 |
Less than 12 Months, Unrealized Losses | (1) | 0 |
12 Months or Longer, Fair Value | 0 | 3,013 |
12 Months or Longer, Unrealized Losses | 0 | (4) |
Fair Value | 2,999 | 3,013 |
Unrealized Losses | (1) | (4) |
Corporate debt | ||
Available for sale, temporarily impaired securities | ||
Less than 12 Months, Fair Value | 2,490 | 0 |
Less than 12 Months, Unrealized Losses | (10) | 0 |
12 Months or Longer, Fair Value | 8,814 | 9,135 |
12 Months or Longer, Unrealized Losses | (572) | (302) |
Fair Value | 11,304 | 9,135 |
Unrealized Losses | $ (582) | $ (302) |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses (Loan Portfolio Schedule) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Total gross loans | $ 729,475 | $ 711,720 |
Less: Deferred loan costs, net | 483 | 397 |
Allowance for loan losses | 7,904 | 8,762 |
Allowance net of deferred loan fees | 8,387 | 9,159 |
Loans, net | 721,088 | 702,561 |
Commercial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total gross loans | 96,885 | 89,056 |
Allowance for loan losses | 2,706 | 3,058 |
Commercial | Secured by real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total gross loans | 30,576 | 31,684 |
Commercial | Other | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total gross loans | 66,309 | 57,372 |
Commercial real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total gross loans | 499,571 | 493,542 |
Allowance for loan losses | 4,962 | 5,531 |
Commercial construction | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total gross loans | 6,716 | 2,152 |
Allowance for loan losses | 90 | 33 |
Residential real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total gross loans | 83,729 | 85,760 |
Allowance for loan losses | 64 | 68 |
Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total gross loans | 35,170 | 32,770 |
Allowance for loan losses | 70 | 64 |
Consumer | Secured by real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total gross loans | 34,749 | 32,207 |
Consumer | Other | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total gross loans | 421 | 563 |
Government Guaranteed | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total gross loans | 7,206 | 8,334 |
Allowance for loan losses | 0 | 0 |
Other | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total gross loans | 198 | 106 |
Allowance for loan losses | $ 1 | $ 1 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses (Narrative) (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018USD ($)loan | Sep. 30, 2017USD ($)loan | Sep. 30, 2018USD ($)loan | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Loans and Leases Receivable Disclosure [Line Items] | |||||
Total gross loans | $ 729,475,000 | $ 729,475,000 | $ 711,720,000 | ||
Loans past due 90 days and still accruing | 0 | 0 | 0 | ||
Interest Income recognized on a cash basis | 0 | $ 0 | 0 | $ 0 | |
Total value of modified loans in troubled debt restructurings | 6,300,000 | 6,300,000 | 6,600,000 | ||
Trouble debt restructuring classified as performing | 5,800,000 | 5,800,000 | 5,900,000 | ||
Specific reserve related to TDR | 641,000 | 641,000 | 582,000 | ||
Committed funds for construction loan, classified as troubled debt restructuring | $ 0 | $ 0 | 0 | ||
Number of loans | loan | 0 | 0 | 1 | ||
Increase in the allowance for loan losses | $ 71,000 | ||||
Charge-offs | $ 0 | 0 | |||
Commercial portfolio segment | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Total gross loans | 96,885,000 | 96,885,000 | 89,056,000 | ||
Commercial real estate | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Total gross loans | 499,571,000 | 499,571,000 | $ 493,542,000 | ||
Small Business Administration Loans | Commercial portfolio segment | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Total gross loans | 172,000 | 172,000 | |||
Small Business Administration Loans | Commercial real estate | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Total gross loans | $ 1,600,000 | $ 1,600,000 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses (Schedule of Allowance for Loan Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Activity in the allowance for loan losses | ||||
Balance, beginning of period | $ 8,353 | $ 8,550 | $ 8,762 | $ 7,905 |
Provision charged to operations | (490) | 20 | (1,605) | 580 |
Loans charged off | (1) | (1) | (31) | (4) |
Recoveries of loans charged off | 42 | 45 | 778 | 133 |
Balance, end of period | 7,904 | 8,614 | 7,904 | 8,614 |
Commercial | ||||
Activity in the allowance for loan losses | ||||
Balance, beginning of period | 2,931 | 2,662 | 3,058 | 2,663 |
Provision charged to operations | (250) | 145 | (448) | 111 |
Loans charged off | 0 | (1) | (29) | (3) |
Recoveries of loans charged off | 25 | 18 | 125 | 53 |
Balance, end of period | 2,706 | 2,824 | 2,706 | 2,824 |
Commercial real estate | ||||
Activity in the allowance for loan losses | ||||
Balance, beginning of period | 5,204 | 5,502 | 5,531 | 4,734 |
Provision charged to operations | (258) | (80) | (1,219) | 637 |
Loans charged off | 0 | 0 | 0 | 0 |
Recoveries of loans charged off | 16 | 21 | 650 | 72 |
Balance, end of period | 4,962 | 5,443 | 4,962 | 5,443 |
Commercial construction | ||||
Activity in the allowance for loan losses | ||||
Balance, beginning of period | 71 | 253 | 33 | 355 |
Provision charged to operations | 19 | (27) | 57 | (129) |
Loans charged off | 0 | 0 | 0 | 0 |
Recoveries of loans charged off | 0 | 0 | 0 | 0 |
Balance, end of period | 90 | 226 | 90 | 226 |
Residential real estate | ||||
Activity in the allowance for loan losses | ||||
Balance, beginning of period | 69 | 58 | 68 | 66 |
Provision charged to operations | (5) | (1) | (4) | (9) |
Loans charged off | 0 | 0 | 0 | 0 |
Recoveries of loans charged off | 0 | 0 | 0 | 0 |
Balance, end of period | 64 | 57 | 64 | 57 |
Consumer | ||||
Activity in the allowance for loan losses | ||||
Balance, beginning of period | 69 | 63 | 64 | 75 |
Provision charged to operations | 0 | (7) | 4 | (20) |
Loans charged off | 0 | 0 | 0 | 0 |
Recoveries of loans charged off | 1 | 6 | 2 | 7 |
Balance, end of period | 70 | 62 | 70 | 62 |
Other | ||||
Activity in the allowance for loan losses | ||||
Balance, beginning of period | 1 | 5 | 1 | 0 |
Provision charged to operations | 1 | (5) | 1 | 0 |
Loans charged off | (1) | 0 | (2) | (1) |
Recoveries of loans charged off | 0 | 0 | 1 | 1 |
Balance, end of period | 1 | 0 | 1 | 0 |
Unallocated | ||||
Activity in the allowance for loan losses | ||||
Balance, beginning of period | 8 | 7 | 7 | 12 |
Provision charged to operations | 3 | (5) | 4 | (10) |
Loans charged off | 0 | 0 | 0 | 0 |
Recoveries of loans charged off | 0 | 0 | 0 | 0 |
Balance, end of period | $ 11 | $ 2 | $ 11 | $ 2 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses (Schedule of Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Allowance for loan losses, ending allowance balance attributable to loans | ||
Individually evaluated for impairment | $ 640 | $ 609 |
Collectively evaluated for impairment | 7,264 | 8,153 |
Total ending allowance balance | 7,904 | 8,762 |
Loans | ||
Loans individually evaluated for impairment | 7,047 | 7,142 |
Loans collectively evaluated for impairment | 722,428 | 704,578 |
Total loans | 729,475 | 711,720 |
Commercial | ||
Allowance for loan losses, ending allowance balance attributable to loans | ||
Individually evaluated for impairment | 76 | 34 |
Collectively evaluated for impairment | 2,630 | 3,024 |
Total ending allowance balance | 2,706 | 3,058 |
Loans | ||
Loans individually evaluated for impairment | 642 | 549 |
Loans collectively evaluated for impairment | 96,243 | 88,507 |
Total loans | 96,885 | 89,056 |
Commercial real estate | ||
Allowance for loan losses, ending allowance balance attributable to loans | ||
Individually evaluated for impairment | 564 | 575 |
Collectively evaluated for impairment | 4,398 | 4,956 |
Total ending allowance balance | 4,962 | 5,531 |
Loans | ||
Loans individually evaluated for impairment | 6,114 | 6,236 |
Loans collectively evaluated for impairment | 493,457 | 487,306 |
Total loans | 499,571 | 493,542 |
Commercial construction | ||
Allowance for loan losses, ending allowance balance attributable to loans | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 90 | 33 |
Total ending allowance balance | 90 | 33 |
Loans | ||
Loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 6,716 | 2,152 |
Total loans | 6,716 | 2,152 |
Residential real estate | ||
Allowance for loan losses, ending allowance balance attributable to loans | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 64 | 68 |
Total ending allowance balance | 64 | 68 |
Loans | ||
Loans individually evaluated for impairment | 275 | 295 |
Loans collectively evaluated for impairment | 83,454 | 85,465 |
Total loans | 83,729 | 85,760 |
Consumer | ||
Allowance for loan losses, ending allowance balance attributable to loans | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 70 | 64 |
Total ending allowance balance | 70 | 64 |
Loans | ||
Loans individually evaluated for impairment | 16 | 62 |
Loans collectively evaluated for impairment | 35,154 | 32,708 |
Total loans | 35,170 | 32,770 |
Government Guaranteed | ||
Allowance for loan losses, ending allowance balance attributable to loans | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 0 | 0 |
Total ending allowance balance | 0 | 0 |
Loans | ||
Loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 7,206 | 8,334 |
Total loans | 7,206 | 8,334 |
Other | ||
Allowance for loan losses, ending allowance balance attributable to loans | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 1 | 1 |
Total ending allowance balance | 1 | 1 |
Loans | ||
Loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 198 | 106 |
Total loans | 198 | 106 |
Unallocated | ||
Allowance for loan losses, ending allowance balance attributable to loans | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 11 | 7 |
Total ending allowance balance | 11 | 7 |
Loans | ||
Loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 0 | 0 |
Total loans | $ 0 | $ 0 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses (Schedule of Recorded Investment in Nonaccrual Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Total nonaccrual loans | $ 1,271 | $ 1,194 |
Commercial portfolio segment | Secured by real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total nonaccrual loans | 397 | 136 |
Commercial real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total nonaccrual loans | 583 | 701 |
Residential real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total nonaccrual loans | 275 | 295 |
Consumer | Secured by real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total nonaccrual loans | $ 16 | $ 62 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses (Schedule of Recorded Investments in Impaired Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
With no related allowance recorded: | ||
Unpaid Principal Balance | $ 4,111 | $ 4,197 |
Recorded Investment | 3,740 | 3,870 |
With an allowance recorded: | ||
Unpaid Principal Balance | 3,306 | 3,273 |
Recorded Investment | 3,307 | 3,272 |
Allowance for Loan Losses Allocated | 640 | 609 |
Total impaired loans | ||
Total Unpaid Principal Balance | 7,417 | 7,470 |
Total Recorded Investment | 7,047 | 7,142 |
Commercial | Secured by real estate | ||
With no related allowance recorded: | ||
Unpaid Principal Balance | 452 | 389 |
Recorded Investment | 422 | 389 |
With an allowance recorded: | ||
Unpaid Principal Balance | 97 | 33 |
Recorded Investment | 97 | 32 |
Allowance for Loan Losses Allocated | 71 | 27 |
Total impaired loans | ||
Total Unpaid Principal Balance | 549 | 422 |
Total Recorded Investment | 519 | 421 |
Commercial | Other | ||
With an allowance recorded: | ||
Unpaid Principal Balance | 123 | 128 |
Recorded Investment | 123 | 128 |
Allowance for Loan Losses Allocated | 5 | 7 |
Total impaired loans | ||
Total Unpaid Principal Balance | 123 | 128 |
Total Recorded Investment | 123 | 128 |
Commercial real estate | ||
With no related allowance recorded: | ||
Unpaid Principal Balance | 3,354 | 3,442 |
Recorded Investment | 3,027 | 3,124 |
With an allowance recorded: | ||
Unpaid Principal Balance | 3,086 | 3,112 |
Recorded Investment | 3,087 | 3,112 |
Allowance for Loan Losses Allocated | 564 | 575 |
Total impaired loans | ||
Total Unpaid Principal Balance | 6,440 | 6,554 |
Total Recorded Investment | 6,114 | 6,236 |
Residential real estate | ||
With no related allowance recorded: | ||
Unpaid Principal Balance | 284 | 295 |
Recorded Investment | 275 | 295 |
With an allowance recorded: | ||
Allowance for Loan Losses Allocated | 0 | 0 |
Total impaired loans | ||
Total Unpaid Principal Balance | 284 | 295 |
Total Recorded Investment | 275 | 295 |
Consumer | Secured by real estate | ||
With no related allowance recorded: | ||
Unpaid Principal Balance | 21 | 71 |
Recorded Investment | 16 | 62 |
With an allowance recorded: | ||
Allowance for Loan Losses Allocated | 0 | 0 |
Total impaired loans | ||
Total Unpaid Principal Balance | 21 | 71 |
Total Recorded Investment | $ 16 | $ 62 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses (Schedule of Average Recorded Investments in Impaired Loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
With no related allowance recorded: | ||||
Average Recorded Investment | $ 3,883 | $ 4,118 | $ 3,861 | $ 4,334 |
Interest Income Recognized | 31 | 52 | 94 | 155 |
With an allowance recorded: | ||||
Average Recorded Investment | 3,313 | 3,321 | 3,282 | 3,382 |
Interest Income Recognized | 44 | 35 | 129 | 106 |
Total Average Recorded Investment | 7,196 | 7,439 | 7,143 | 7,716 |
Total Interest Income Recognized | 75 | 87 | 223 | 261 |
Commercial portfolio segment | Secured by real estate | ||||
With no related allowance recorded: | ||||
Average Recorded Investment | 545 | 878 | 465 | 1,107 |
Interest Income Recognized | 2 | 22 | 10 | 63 |
With an allowance recorded: | ||||
Average Recorded Investment | 98 | 36 | 57 | 48 |
Interest Income Recognized | 1 | 0 | 2 | 0 |
Commercial portfolio segment | Other | ||||
With an allowance recorded: | ||||
Average Recorded Investment | 124 | 150 | 126 | 182 |
Interest Income Recognized | 2 | 3 | 6 | 10 |
Commercial real estate | ||||
With no related allowance recorded: | ||||
Average Recorded Investment | 3,043 | 3,172 | 3,076 | 3,155 |
Interest Income Recognized | 29 | 30 | 84 | 92 |
With an allowance recorded: | ||||
Average Recorded Investment | 3,091 | 3,135 | 3,099 | 3,152 |
Interest Income Recognized | 41 | 32 | 121 | 96 |
Residential real estate | ||||
With no related allowance recorded: | ||||
Average Recorded Investment | 278 | 0 | 285 | 0 |
Interest Income Recognized | 0 | 0 | 0 | 0 |
Consumer | Secured by real estate | ||||
With no related allowance recorded: | ||||
Average Recorded Investment | 17 | 68 | 35 | 72 |
Interest Income Recognized | $ 0 | $ 0 | $ 0 | $ 0 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses (Schedule of Aging of the Recorded Investment in Past Due Loans by Class of Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Aging analysis of past due loans | ||
Total Past Due | $ 1,356 | $ 1,435 |
Current | 728,119 | 710,285 |
Total loans | 729,475 | 711,720 |
30-59 Days Past Due | ||
Aging analysis of past due loans | ||
Total Past Due | 376 | 808 |
60-89 Days Past Due | ||
Aging analysis of past due loans | ||
Total Past Due | 363 | 0 |
Greater than 90 Days Past Due | ||
Aging analysis of past due loans | ||
Total Past Due | 617 | 627 |
Commercial | ||
Aging analysis of past due loans | ||
Total loans | 96,885 | 89,056 |
Commercial | Secured by real estate | ||
Aging analysis of past due loans | ||
Total Past Due | 397 | 186 |
Current | 30,179 | 31,498 |
Total loans | 30,576 | 31,684 |
Commercial | Secured by real estate | 30-59 Days Past Due | ||
Aging analysis of past due loans | ||
Total Past Due | 0 | 186 |
Commercial | Secured by real estate | 60-89 Days Past Due | ||
Aging analysis of past due loans | ||
Total Past Due | 292 | 0 |
Commercial | Secured by real estate | Greater than 90 Days Past Due | ||
Aging analysis of past due loans | ||
Total Past Due | 105 | 0 |
Commercial | Other | ||
Aging analysis of past due loans | ||
Total Past Due | 6 | 8 |
Current | 66,303 | 57,364 |
Total loans | 66,309 | 57,372 |
Commercial | Other | 30-59 Days Past Due | ||
Aging analysis of past due loans | ||
Total Past Due | 6 | 8 |
Commercial | Other | 60-89 Days Past Due | ||
Aging analysis of past due loans | ||
Total Past Due | 0 | 0 |
Commercial | Other | Greater than 90 Days Past Due | ||
Aging analysis of past due loans | ||
Total Past Due | 0 | 0 |
Commercial real estate | ||
Aging analysis of past due loans | ||
Total Past Due | 583 | 899 |
Current | 498,988 | 492,643 |
Total loans | 499,571 | 493,542 |
Commercial real estate | 30-59 Days Past Due | ||
Aging analysis of past due loans | ||
Total Past Due | 0 | 300 |
Commercial real estate | 60-89 Days Past Due | ||
Aging analysis of past due loans | ||
Total Past Due | 71 | 0 |
Commercial real estate | Greater than 90 Days Past Due | ||
Aging analysis of past due loans | ||
Total Past Due | 512 | 599 |
Commercial construction | ||
Aging analysis of past due loans | ||
Total Past Due | 0 | 0 |
Current | 6,716 | 2,152 |
Total loans | 6,716 | 2,152 |
Commercial construction | 30-59 Days Past Due | ||
Aging analysis of past due loans | ||
Total Past Due | 0 | 0 |
Commercial construction | 60-89 Days Past Due | ||
Aging analysis of past due loans | ||
Total Past Due | 0 | 0 |
Commercial construction | Greater than 90 Days Past Due | ||
Aging analysis of past due loans | ||
Total Past Due | 0 | 0 |
Residential real estate | ||
Aging analysis of past due loans | ||
Total Past Due | 308 | 314 |
Current | 83,421 | 85,446 |
Total loans | 83,729 | 85,760 |
Residential real estate | 30-59 Days Past Due | ||
Aging analysis of past due loans | ||
Total Past Due | 308 | 314 |
Residential real estate | 60-89 Days Past Due | ||
Aging analysis of past due loans | ||
Total Past Due | 0 | 0 |
Residential real estate | Greater than 90 Days Past Due | ||
Aging analysis of past due loans | ||
Total Past Due | 0 | 0 |
Consumer | ||
Aging analysis of past due loans | ||
Total loans | 35,170 | 32,770 |
Consumer | Secured by real estate | ||
Aging analysis of past due loans | ||
Total Past Due | 61 | 28 |
Current | 34,688 | 32,179 |
Total loans | 34,749 | 32,207 |
Consumer | Secured by real estate | 30-59 Days Past Due | ||
Aging analysis of past due loans | ||
Total Past Due | 61 | 0 |
Consumer | Secured by real estate | 60-89 Days Past Due | ||
Aging analysis of past due loans | ||
Total Past Due | 0 | 0 |
Consumer | Secured by real estate | Greater than 90 Days Past Due | ||
Aging analysis of past due loans | ||
Total Past Due | 0 | 28 |
Consumer | Other | ||
Aging analysis of past due loans | ||
Total Past Due | 1 | 0 |
Current | 420 | 563 |
Total loans | 421 | 563 |
Consumer | Other | 30-59 Days Past Due | ||
Aging analysis of past due loans | ||
Total Past Due | 1 | 0 |
Consumer | Other | 60-89 Days Past Due | ||
Aging analysis of past due loans | ||
Total Past Due | 0 | 0 |
Consumer | Other | Greater than 90 Days Past Due | ||
Aging analysis of past due loans | ||
Total Past Due | 0 | 0 |
Government Guaranteed | ||
Aging analysis of past due loans | ||
Total Past Due | 0 | 0 |
Current | 7,206 | 8,334 |
Total loans | 7,206 | 8,334 |
Government Guaranteed | 30-59 Days Past Due | ||
Aging analysis of past due loans | ||
Total Past Due | 0 | 0 |
Government Guaranteed | 60-89 Days Past Due | ||
Aging analysis of past due loans | ||
Total Past Due | 0 | 0 |
Government Guaranteed | Greater than 90 Days Past Due | ||
Aging analysis of past due loans | ||
Total Past Due | 0 | 0 |
Other | ||
Aging analysis of past due loans | ||
Total Past Due | 0 | 0 |
Current | 198 | 106 |
Total loans | 198 | 106 |
Other | 30-59 Days Past Due | ||
Aging analysis of past due loans | ||
Total Past Due | 0 | 0 |
Other | 60-89 Days Past Due | ||
Aging analysis of past due loans | ||
Total Past Due | 0 | 0 |
Other | Greater than 90 Days Past Due | ||
Aging analysis of past due loans | ||
Total Past Due | $ 0 | $ 0 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses (Schedule of Trouble Debt Loans) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2018USD ($)loan | Sep. 30, 2017loan | Sep. 30, 2018USD ($)loan | |
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 0 | 0 | 1 |
Pre-Modification Recorded Investment | $ 0 | $ 97 | |
Post-Modification Recorded Investment | $ 0 | $ 97 | |
Commercial portfolio segment | Secured by real estate | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 0 | 1 | |
Pre-Modification Recorded Investment | $ 0 | $ 97 | |
Post-Modification Recorded Investment | $ 0 | $ 97 |
Loans and Allowance for Loan_12
Loans and Allowance for Loan Losses (Schedule of Loans by Credit Quality Indicators) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 729,475 | $ 711,720 |
Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 96,885 | 89,056 |
Commercial | Secured by real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 30,576 | 31,684 |
Commercial | Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 66,309 | 57,372 |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 499,571 | 493,542 |
Commercial construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 6,716 | 2,152 |
Government Guaranteed | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 7,206 | 8,334 |
Receivables Acquired with Deteriorated Credit Quality | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 610,378 | 593,084 |
Receivables Acquired with Deteriorated Credit Quality | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 592,841 | 577,586 |
Receivables Acquired with Deteriorated Credit Quality | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 11,368 | 12,392 |
Receivables Acquired with Deteriorated Credit Quality | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 6,169 | 3,106 |
Receivables Acquired with Deteriorated Credit Quality | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality | Commercial | Secured by real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 30,576 | 31,684 |
Receivables Acquired with Deteriorated Credit Quality | Commercial | Secured by real estate | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 28,602 | 29,025 |
Receivables Acquired with Deteriorated Credit Quality | Commercial | Secured by real estate | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,273 | 2,153 |
Receivables Acquired with Deteriorated Credit Quality | Commercial | Secured by real estate | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 701 | 506 |
Receivables Acquired with Deteriorated Credit Quality | Commercial | Secured by real estate | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality | Commercial | Secured by real estate | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality | Commercial | Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 66,309 | 57,372 |
Receivables Acquired with Deteriorated Credit Quality | Commercial | Other | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 64,711 | 56,632 |
Receivables Acquired with Deteriorated Credit Quality | Commercial | Other | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,135 | 216 |
Receivables Acquired with Deteriorated Credit Quality | Commercial | Other | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 463 | 524 |
Receivables Acquired with Deteriorated Credit Quality | Commercial | Other | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality | Commercial | Other | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 499,571 | 493,542 |
Receivables Acquired with Deteriorated Credit Quality | Commercial real estate | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 485,606 | 481,443 |
Receivables Acquired with Deteriorated Credit Quality | Commercial real estate | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 8,960 | 10,023 |
Receivables Acquired with Deteriorated Credit Quality | Commercial real estate | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 5,005 | 2,076 |
Receivables Acquired with Deteriorated Credit Quality | Commercial real estate | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality | Commercial real estate | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality | Commercial construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 6,716 | 2,152 |
Receivables Acquired with Deteriorated Credit Quality | Commercial construction | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 6,716 | 2,152 |
Receivables Acquired with Deteriorated Credit Quality | Commercial construction | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality | Commercial construction | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality | Commercial construction | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality | Commercial construction | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality | Government Guaranteed | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 7,206 | 8,334 |
Receivables Acquired with Deteriorated Credit Quality | Government Guaranteed | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 7,206 | 8,334 |
Receivables Acquired with Deteriorated Credit Quality | Government Guaranteed | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality | Government Guaranteed | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality | Government Guaranteed | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality | Government Guaranteed | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 0 | $ 0 |
Loans and Allowance for Loan_13
Loans and Allowance for Loan Losses (Schedule of Recorded Investment in Residential Real Estate and Consumer Loans Based on Payment Activity) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | $ 729,475 | $ 711,720 |
Residential real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Current | 83,146 | 85,446 |
Past Due or Nonaccrual | 583 | 314 |
Total loans | 83,729 | 85,760 |
Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 35,170 | 32,770 |
Consumer | Secured by real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Current | 34,688 | 32,179 |
Past Due or Nonaccrual | 61 | 28 |
Total loans | 34,749 | 32,207 |
Consumer | Other | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Current | 420 | 563 |
Past Due or Nonaccrual | 1 | 0 |
Total loans | 421 | 563 |
Residential real estate and consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Current | 118,254 | 118,188 |
Past Due or Nonaccrual | 645 | 342 |
Total loans | $ 118,899 | $ 118,530 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Assets: | ||
Total available-for-sale securities | $ 109,764 | $ 109,259 |
Other equity investments | 3,661 | 3,756 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Total available-for-sale securities | 0 | 0 |
Other equity investments | 3,601 | 3,696 |
Interest rate swap | 0 | |
Liabilities: | ||
Interest rate swap | 0 | |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Total available-for-sale securities | 109,764 | 109,259 |
Other equity investments | 60 | 60 |
Interest rate swap | 435 | |
Liabilities: | ||
Interest rate swap | 29 | |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Total available-for-sale securities | 0 | 0 |
Other equity investments | 0 | 0 |
Interest rate swap | 0 | |
Liabilities: | ||
Interest rate swap | 0 | |
Carrying Value | ||
Assets: | ||
Total available-for-sale securities | 109,764 | 109,259 |
Other equity investments | 3,661 | 3,756 |
Interest rate swap | 435 | |
Liabilities: | ||
Interest rate swap | 29 | |
Fair value measured on a recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
U.S. government - sponsored agencies | 0 | 0 |
Obligations of state and political subdivisions | 0 | 0 |
Mortgage-backed securities | 0 | 0 |
Asset-backed securities | 0 | 0 |
Corporate debt | 0 | 0 |
Total available-for-sale securities | 0 | 0 |
Other equity investments | 3,601 | 3,696 |
Interest rate swap | 0 | |
Liabilities: | ||
Interest rate swap | 0 | |
Fair value measured on a recurring basis | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
U.S. government - sponsored agencies | 25,651 | 21,333 |
Obligations of state and political subdivisions | 3,078 | 3,165 |
Mortgage-backed securities | 62,785 | 63,834 |
Asset-backed securities | 5,420 | 6,698 |
Corporate debt | 12,830 | 14,229 |
Total available-for-sale securities | 109,764 | 109,259 |
Other equity investments | 60 | 60 |
Interest rate swap | 435 | |
Liabilities: | ||
Interest rate swap | 29 | |
Fair value measured on a recurring basis | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
U.S. government - sponsored agencies | 0 | 0 |
Obligations of state and political subdivisions | 0 | 0 |
Mortgage-backed securities | 0 | 0 |
Asset-backed securities | 0 | 0 |
Corporate debt | 0 | 0 |
Total available-for-sale securities | 0 | 0 |
Other equity investments | 0 | 0 |
Interest rate swap | 0 | |
Liabilities: | ||
Interest rate swap | 0 | |
Fair value measured on a recurring basis | Carrying Value | ||
Assets: | ||
U.S. government - sponsored agencies | 25,651 | 21,333 |
Obligations of state and political subdivisions | 3,078 | 3,165 |
Mortgage-backed securities | 62,785 | 63,834 |
Asset-backed securities | 5,420 | 6,698 |
Corporate debt | 12,830 | 14,229 |
Total available-for-sale securities | 109,764 | 109,259 |
Other equity investments | 3,661 | 3,756 |
Interest rate swap | $ 435 | |
Liabilities: | ||
Interest rate swap | $ 29 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments (Schedule of Assets and Liabilities Measured at Fair Value on Non-recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Carrying Value | ||
Assets: | ||
Loans, net | $ 721,088 | $ 702,561 |
Fair value, measurements, nonrecurring | Carrying Value | ||
Assets: | ||
Commercial loan secured by real estate | 192 | |
Loans, net | 318 | 597 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Loans, net | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair value, measurements, nonrecurring | ||
Assets: | ||
Commercial loan secured by real estate | 0 | |
Loans, net | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Loans, net | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Fair value, measurements, nonrecurring | ||
Assets: | ||
Commercial loan secured by real estate | 0 | |
Loans, net | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Loans, net | 718,718 | 714,387 |
Significant Unobservable Inputs (Level 3) | Fair value, measurements, nonrecurring | ||
Assets: | ||
Commercial loan secured by real estate | 192 | |
Loans, net | 318 | 597 |
Real estate | Fair value, measurements, nonrecurring | Carrying Value | ||
Assets: | ||
Commercial loan secured by real estate | 318 | 109 |
Real estate | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair value, measurements, nonrecurring | ||
Assets: | ||
Commercial loan secured by real estate | 0 | 0 |
Real estate | Significant Other Observable Inputs (Level 2) | Fair value, measurements, nonrecurring | ||
Assets: | ||
Commercial loan secured by real estate | 0 | 0 |
Real estate | Significant Unobservable Inputs (Level 3) | Fair value, measurements, nonrecurring | ||
Assets: | ||
Commercial loan secured by real estate | $ 318 | 109 |
Residential Mortgage | Fair value, measurements, nonrecurring | Carrying Value | ||
Assets: | ||
Loans, net | 296 | |
Residential Mortgage | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair value, measurements, nonrecurring | ||
Assets: | ||
Loans, net | 0 | |
Residential Mortgage | Significant Other Observable Inputs (Level 2) | Fair value, measurements, nonrecurring | ||
Assets: | ||
Loans, net | 0 | |
Residential Mortgage | Significant Unobservable Inputs (Level 3) | Fair value, measurements, nonrecurring | ||
Assets: | ||
Loans, net | $ 296 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments (Narrative) (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Recorded Investment | $ 3,307,000 | $ 3,272,000 |
Fair value, measurements, nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
OREO properties | 0 | 0 |
Fair value, measurements, nonrecurring | Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Recorded Investment | 389,000 | 624,000 |
Adjustment to allowance | $ 71,000 | $ 27,000 |
Discount rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount to real estate appraised values | 0.12 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments (Schedule of Fair Value Assumptions for Level 3 Asset Measurements) (Details) - Significant Unobservable Inputs (Level 3) - Fair value, measurements, nonrecurring $ in Thousands | Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($) |
Impaired loans | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | $ 318 | $ 597 |
Weighted Average | Adjustments for differences between comparable sales and income data available. | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.05 | 0.05 |
Weighted Average | Estimated selling costs. | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.07 | 0.07 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments (Schedule of Fair Value Estimates for the Financial Instruments) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Financial assets: | ||
Securities available-for-sale | $ 109,764 | $ 109,259 |
Securities held to maturity | 62,227 | 52,442 |
Other equity investments, at fair value | 3,661 | 3,756 |
FHLB-NY stock | 3,552 | 3,715 |
Financial liabilities: | ||
Subordinated Debentures and Subordinated Notes | 23,366 | 23,317 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Cash and cash equivalents | 10,839 | 21,270 |
Securities available-for-sale | 0 | 0 |
Securities held to maturity | 0 | 0 |
Other equity investments, at fair value | 3,601 | 3,696 |
Loans held for sale | 0 | 0 |
Loans, net | 0 | 0 |
Interest rate swap | 0 | |
Financial liabilities: | ||
Deposits | 588,150 | 565,292 |
FHLB-NY advances | 0 | 0 |
Subordinated Debentures and Subordinated Notes | 0 | 0 |
Interest rate swap | 0 | |
Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Securities available-for-sale | 109,764 | 109,259 |
Securities held to maturity | 59,947 | 51,551 |
Other equity investments, at fair value | 60 | 60 |
Loans held for sale | 0 | 0 |
Loans, net | 0 | 0 |
Interest rate swap | 435 | |
Financial liabilities: | ||
Deposits | 196,109 | 197,696 |
FHLB-NY advances | 56,187 | 63,340 |
Subordinated Debentures and Subordinated Notes | 0 | 0 |
Interest rate swap | 29 | |
Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Securities available-for-sale | 0 | 0 |
Securities held to maturity | 0 | 0 |
Other equity investments, at fair value | 0 | 0 |
Loans held for sale | 0 | 370 |
Loans, net | 718,718 | 714,387 |
Interest rate swap | 0 | |
Financial liabilities: | ||
Deposits | 0 | 0 |
FHLB-NY advances | 0 | 0 |
Subordinated Debentures and Subordinated Notes | 23,504 | 23,478 |
Interest rate swap | 0 | |
Carrying Value | ||
Financial assets: | ||
Cash and cash equivalents | 10,839 | 21,270 |
Securities available-for-sale | 109,764 | 109,259 |
Securities held to maturity | 62,227 | 52,442 |
Other equity investments, at fair value | 3,661 | 3,756 |
FHLB-NY stock | 3,552 | 3,715 |
Loans held for sale | 0 | 370 |
Loans, net | 721,088 | 702,561 |
Interest rate swap | 435 | |
Financial liabilities: | ||
Deposits | 786,566 | 764,099 |
FHLB-NY advances | 56,800 | 63,760 |
Subordinated Debentures and Subordinated Notes | $ 23,366 | 23,317 |
Interest rate swap | $ 29 |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Earnings Per Common Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 2,162 | $ 1,640 | $ 6,271 | $ 3,899 |
Weighted average common shares outstanding - basic (in shares) | 8,677,445 | 8,643,737 | 8,670,662 | 7,656,942 |
Weighted average common shares outstanding - diluted (in shares) | 8,677,445 | 8,643,737 | 8,670,662 | 7,656,942 |
Basic earnings per common share (in usd per share) | $ 0.25 | $ 0.19 | $ 0.72 | $ 0.51 |
Diluted earnings per common share (in usd per share) | $ 0.25 | $ 0.19 | $ 0.72 | $ 0.51 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earning per share (in shares) | 0 | 0 | 0 | 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Schedule of Components of Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Other comprehensive income (loss): | ||||
Other comprehensive income (loss), before reclassifications, net | $ (369) | $ 138 | $ (1,721) | $ 530 |
Other comprehensive income (loss), before reclassifications, net | 108 | (6) | 330 | (43) |
Reclassification adjustment for gains in net income, net | 0 | (1) | (4) | (1) |
Accretion of loss on securities reclassified to held to maturity, net | 6 | 10 | 19 | 23 |
Total comprehensive income, gross | (488) | 231 | (1,999) | 822 |
Total comprehensive income, tax effect | 233 | (90) | 623 | (313) |
Total other comprehensive income (loss) | (255) | 141 | (1,376) | 509 |
Unrealized Gains and (Losses) on Available-for-Sale (AFS) Securities | ||||
Other comprehensive income (loss): | ||||
Other comprehensive income (loss), before reclassifications, before tax | (647) | 225 | (2,479) | 857 |
Other comprehensive income (loss) before reclassifications, tax | 278 | (87) | 758 | (327) |
Other comprehensive income (loss), before reclassifications, net | (369) | 138 | (1,721) | 530 |
Reclassification adjustment for gains in net income, gross | 0 | (1) | (6) | (1) |
Reclassification adjustment for gains in net income, tax effect | 0 | 0 | 2 | 0 |
Reclassification adjustment for gains in net income, net | 0 | (1) | (4) | (1) |
Accretion of loss on securities reclassified to held to maturity, gross | 4 | 17 | 22 | 38 |
Accretion of loss on securities reclassified to held to maturity, tax effect | 2 | (7) | (3) | (15) |
Accretion of loss on securities reclassified to held to maturity, net | 6 | 10 | 19 | 23 |
Total other comprehensive income (loss) | (369) | 137 | (1,725) | 529 |
Change in fair value of interest rate swap | ||||
Other comprehensive income (loss): | ||||
Other comprehensive income (loss), before reclassifications, before tax | 155 | (10) | 464 | (72) |
Other comprehensive income (loss) before reclassifications, tax | (47) | 4 | (134) | 29 |
Other comprehensive income (loss), before reclassifications, net | 108 | (6) | 330 | (43) |
Total other comprehensive income (loss) | $ 108 | $ (6) | $ 330 | $ (43) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) (Schedule of Components of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Rollforward] | |||||
Balance at the beginning | $ 73,665 | $ 51,387 | |||
Other comprehensive income (loss) before reclassifications | $ (255) | $ 142 | (1,372) | 510 | |
Amounts reclassified from other comprehensive income (loss) | 0 | (1) | (4) | (1) | |
Total other comprehensive income (loss) | (255) | 141 | (1,376) | 509 | |
Reclassification due to the adoption of ASU 2016-01 | $ 163 | ||||
Balance at the end | 77,919 | 74,108 | 77,919 | 74,108 | |
Unrealized Gains and (Losses) on Available-for-Sale (AFS) Securities | |||||
Accumulated Other Comprehensive Income (Loss) [Rollforward] | |||||
Balance at the beginning | (2,496) | (851) | (1,303) | (1,243) | |
Other comprehensive income (loss) before reclassifications | (369) | 138 | (1,721) | 530 | |
Amounts reclassified from other comprehensive income (loss) | 0 | (1) | (4) | (1) | |
Total other comprehensive income (loss) | (369) | 137 | (1,725) | 529 | |
Reclassification due to the adoption of ASU 2016-01 | 163 | ||||
Balance at the end | (2,865) | (714) | (2,865) | (714) | |
Loss on Securities Reclassified from Available-for-Sale to Held to Maturity | |||||
Accumulated Other Comprehensive Income (Loss) [Rollforward] | |||||
Balance at the beginning | (47) | (65) | (60) | (78) | |
Other comprehensive income (loss) before reclassifications | 6 | 10 | 19 | 23 | |
Amounts reclassified from other comprehensive income (loss) | 0 | 0 | 0 | 0 | |
Total other comprehensive income (loss) | 6 | 10 | 19 | 23 | |
Reclassification due to the adoption of ASU 2016-01 | 0 | ||||
Balance at the end | (41) | (55) | (41) | (55) | |
Unrealized Gains and (Losses) on Derivatives | |||||
Accumulated Other Comprehensive Income (Loss) [Rollforward] | |||||
Balance at the beginning | 201 | (37) | (21) | 0 | |
Other comprehensive income (loss) before reclassifications | 108 | (6) | 330 | (43) | |
Amounts reclassified from other comprehensive income (loss) | 0 | 0 | 0 | 0 | |
Total other comprehensive income (loss) | 108 | (6) | 330 | (43) | |
Reclassification due to the adoption of ASU 2016-01 | 0 | ||||
Balance at the end | 309 | (43) | 309 | (43) | |
Accumulated Other Comprehensive Income (Loss) | |||||
Accumulated Other Comprehensive Income (Loss) [Rollforward] | |||||
Balance at the beginning | (2,342) | (953) | (1,384) | (1,321) | |
Total other comprehensive income (loss) | (1,376) | 509 | |||
Reclassification due to the adoption of ASU 2016-01 | $ 163 | ||||
Balance at the end | $ (2,597) | $ (812) | $ (2,597) | $ (812) |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income (Loss) (Schedule of Amount Reclassified from Each Component of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Gains on securities transactions, net | $ 0 | $ 1 | $ 6 | $ 1 |
Income tax expense | 813 | 972 | 2,302 | 2,282 |
Total reclassifications, net of tax | 0 | 1 | 4 | 1 |
Unrealized Gains and (Losses) on Available-for-Sale (AFS) Securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Total reclassifications, net of tax | 0 | 1 | 4 | 1 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains and (Losses) on Available-for-Sale (AFS) Securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Gains on securities transactions, net | 0 | 1 | 6 | 1 |
Income tax expense | $ 0 | $ 0 | $ (2) | $ 0 |