Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 02, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | STEWARDSHIP FINANCIAL CORP | |
Entity Central Index Key | 0001023860 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Reporting Status Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 8,714,222 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2019 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 12,317 | $ 16,340 |
Other interest-earning assets | 293 | 483 |
Cash and cash equivalents | 12,610 | 16,823 |
Securities available-for-sale | 96,117 | 108,811 |
Securities held-to-maturity; estimated fair value of $62,446 (at June 30, 2019) and $60,997 (at December 31, 2018) | 62,264 | 62,308 |
Other equity investments, at fair value | 1,693 | 1,648 |
Federal Home Loan Bank of New York stock, at cost | 4,091 | 3,965 |
Loans held for sale | 469 | 0 |
Loans, net of allowance for loan losses of $8,404 (at June 30, 2019) and $7,926 (at December 31, 2018) | 748,055 | 725,404 |
Premises and equipment, net | 7,146 | 7,007 |
Accrued interest receivable | 2,640 | 2,696 |
Right of use asset | 2,917 | |
Bank owned life insurance | 21,908 | 21,636 |
Other assets | 4,354 | 5,332 |
Total assets | 964,264 | 955,630 |
Deposits: | ||
Noninterest-bearing | 182,971 | 174,717 |
Interest-bearing | 598,974 | 607,374 |
Total deposits | 781,945 | 782,091 |
Federal Home Loan Bank of New York advances | 67,400 | 65,700 |
Subordinated Debentures and Subordinated Notes | 23,415 | 23,382 |
Lease liability | 3,043 | |
Accrued interest payable | 906 | 1,106 |
Accrued expenses and other liabilities | 3,465 | 3,201 |
Total liabilities | 880,174 | 875,480 |
Shareholders' equity | ||
Common stock, no par value: 20,000,000 shares authorized at June 30, 2019 and December 31, 2018; 8,714,222 and 8,680,388 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively | 61,338 | 61,030 |
Retained earnings | 23,419 | 21,056 |
Accumulated other comprehensive loss, net | (667) | (1,936) |
Total Shareholders' equity | 84,090 | 80,150 |
Total liabilities and Shareholders' equity | $ 964,264 | $ 955,630 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Securities held to maturity | $ 62,446 | $ 60,997 |
Allowance for loan losses | $ 8,404 | $ 7,926 |
Shareholders' equity | ||
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 8,714,222 | 8,680,388 |
Common stock, shares outstanding (in shares) | 8,714,222 | 8,680,388 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Interest income: | ||||
Loans | $ 8,660 | $ 7,770 | $ 16,898 | $ 15,288 |
Securities held-to-maturity: | ||||
Taxable | 379 | 279 | 754 | 529 |
Nontaxable | 17 | 23 | 36 | 56 |
Securities available-for-sale: | ||||
Taxable | 613 | 637 | 1,284 | 1,230 |
Nontaxable | 14 | 15 | 28 | 29 |
Other equity investments | 11 | 26 | 23 | 51 |
FHLB dividends | 59 | 58 | 119 | 122 |
Other interest-earning assets | 19 | 60 | 31 | 102 |
Total interest income | 9,772 | 8,868 | 19,173 | 17,407 |
Interest expense: | ||||
Deposits | 1,844 | 1,269 | 3,552 | 2,334 |
FHLB-NY Borrowings | 371 | 198 | 687 | 457 |
Subordinated Debentures and Subordinated Notes | 393 | 393 | 786 | 785 |
Total interest expense | 2,608 | 1,860 | 5,025 | 3,576 |
Net interest income before provision for loan losses | 7,164 | 7,008 | 14,148 | 13,831 |
Provision for loan losses | 330 | (780) | 395 | (1,115) |
Net interest income after provision for loan losses | 6,834 | 7,788 | 13,753 | 14,946 |
Noninterest income: | ||||
Fees and service charges | 572 | 551 | 1,134 | 1,058 |
Bank owned life insurance | 138 | 138 | 273 | 276 |
Gain on calls and sales of securities, net | 1 | 0 | 3 | 6 |
Gain on sales of mortgage loans | 23 | 9 | 48 | 31 |
Gain on sales of SBA loans | 71 | 59 | 112 | 59 |
Gain (loss) on equity investments | 24 | (29) | 46 | (103) |
Miscellaneous | 106 | 131 | 225 | 257 |
Total noninterest income | 935 | 859 | 1,841 | 1,584 |
Noninterest expenses: | ||||
Salaries and employee benefits | 3,102 | 3,129 | 6,239 | 6,238 |
Occupancy, net | 417 | 403 | 866 | 845 |
Equipment | 234 | 188 | 439 | 369 |
Data processing | 515 | 478 | 1,018 | 962 |
Advertising | 194 | 207 | 377 | 364 |
FDIC insurance premium | 65 | 70 | 129 | 134 |
Charitable contributions | 175 | 195 | 370 | 375 |
Bank-card related services | 138 | 131 | 269 | 258 |
Merger-related expenses | 291 | 0 | 291 | 0 |
Miscellaneous | 655 | 703 | 1,380 | 1,387 |
Total noninterest expenses | 5,786 | 5,504 | 11,378 | 10,932 |
Income before income tax expense | 1,983 | 3,143 | 4,216 | 5,598 |
Income tax expense | 530 | 842 | 1,116 | 1,489 |
Net income | $ 1,453 | $ 2,301 | $ 3,100 | $ 4,109 |
Basic and diluted earnings per common share (in usd per share) | $ 0.17 | $ 0.27 | $ 0.36 | $ 0.47 |
Weighted average number of basic and diluted common shares outstanding (in shares) | 8,713,110 | 8,675,868 | 8,700,609 | 8,667,235 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,453 | $ 2,301 | $ 3,100 | $ 4,109 |
Other comprehensive income (loss), net of tax: | ||||
Change in unrealized holding gains (losses) on securities available-for-sale during the period | 911 | (359) | 1,873 | (1,352) |
Reclassification adjustment for securities available-for-sale gains in net income | (1) | 0 | (2) | (4) |
Accretion of loss on securities reclassified to held-to-maturity | 3 | 4 | 5 | 13 |
Change in fair value of interest rate swap in a cash flow hedging relationship | (395) | (614) | ||
Change in fair value of interest rate swap in a cash flow hedging relationship | 53 | 211 | ||
Reclassification adjustment for interest rate swap interest expense in net income | 5 | 7 | ||
Reclassification adjustment for interest rate swap interest expense in net income | 2 | 11 | ||
Total other comprehensive income (loss) | 523 | (300) | 1,269 | (1,121) |
Total comprehensive income | $ 1,976 | $ 2,001 | $ 4,369 | $ 2,988 |
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, 2017 | 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 | (260) | (260) | ||
Payment of discount on dividend reinvestment plan | (1) | $ (1) | ||
Common stock issued under dividend reinvestment plan (in shares) | 2,062 | |||
Common stock issued under dividend reinvestment plan | 22 | $ 22 | ||
Common stock issued under stock plans (in shares) | 1,638 | |||
Common stock issued under stock plans | 16 | $ 16 | ||
Issuance of restricted stock (in shares) | 28,221 | |||
Issuance of restricted stock | 0 | $ 301 | (301) | |
Compensation expense on restricted stock | 48 | 48 | ||
Restricted stock forfeited (in shares) | (9,835) | |||
Restricted stock forfeited | (105) | $ (105) | ||
Net income | 1,808 | 1,808 | ||
Other comprehensive income (loss) | (821) | (821) | ||
Balance at the end (in shares) at Mar. 31, 2018 | 8,674,890 | |||
Balance at the end at Mar. 31, 2018 | 74,372 | $ 60,975 | 15,439 | (2,042) |
Balance at the beginning (in shares) at Dec. 31, 2017 | 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] | ||||
Net income | 4,109 | |||
Other comprehensive income (loss) | (1,121) | |||
Balance at the end (in shares) at Jun. 30, 2018 | 8,676,843 | |||
Balance at the end at Jun. 30, 2018 | 76,188 | $ 60,996 | 17,534 | (2,342) |
Balance at the beginning (in shares) at Mar. 31, 2018 | 8,674,890 | |||
Balance at the beginning at Mar. 31, 2018 | 74,372 | $ 60,975 | 15,439 | (2,042) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Cash dividends declared on common stock | (260) | (260) | ||
Payment of discount on dividend reinvestment plan | (1) | $ (1) | ||
Common stock issued under dividend reinvestment plan (in shares) | 1,934 | |||
Common stock issued under dividend reinvestment plan | 22 | $ 22 | ||
Common stock issued under stock plans (in shares) | 19 | |||
Common stock issued under stock plans | 0 | |||
Compensation expense on restricted stock | 54 | 54 | ||
Net income | 2,301 | 2,301 | ||
Other comprehensive income (loss) | (300) | (300) | ||
Balance at the end (in shares) at Jun. 30, 2018 | 8,676,843 | |||
Balance at the end at Jun. 30, 2018 | 76,188 | $ 60,996 | 17,534 | (2,342) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Reclassification due to adoption of ASU 2016-01 | $ 163 | |||
Balance at the beginning (in shares) at Dec. 31, 2018 | 8,680,388 | 8,680,388 | ||
Balance at the beginning at Dec. 31, 2018 | $ 80,150 | $ 61,030 | 21,056 | (1,936) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Cash dividends declared on common stock | (260) | (260) | ||
Payment of discount on dividend reinvestment plan | (1) | $ (1) | ||
Common stock issued under dividend reinvestment plan (in shares) | 2,475 | |||
Common stock issued under dividend reinvestment plan | 21 | $ 21 | ||
Common stock issued under stock plans (in shares) | 1,593 | |||
Common stock issued under stock plans | 14 | $ 14 | ||
Issuance of restricted stock (in shares) | 36,415 | |||
Issuance of restricted stock | 0 | $ 340 | (340) | |
Compensation expense on restricted stock | 57 | 57 | ||
Restricted stock forfeited (in shares) | (8,848) | |||
Restricted stock forfeited | (83) | $ (83) | ||
Net income | 1,647 | 1,647 | ||
Other comprehensive income (loss) | 746 | 746 | ||
Balance at the end (in shares) at Mar. 31, 2019 | 8,712,023 | |||
Balance at the end at Mar. 31, 2019 | $ 82,291 | $ 61,321 | 22,160 | (1,190) |
Balance at the beginning (in shares) at Dec. 31, 2018 | 8,680,388 | 8,680,388 | ||
Balance at the beginning at Dec. 31, 2018 | $ 80,150 | $ 61,030 | 21,056 | (1,936) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 3,100 | |||
Other comprehensive income (loss) | $ 1,269 | |||
Balance at the end (in shares) at Jun. 30, 2019 | 8,714,222 | 8,714,222 | ||
Balance at the end at Jun. 30, 2019 | $ 84,090 | $ 61,338 | 23,419 | (667) |
Balance at the beginning (in shares) at Mar. 31, 2019 | 8,712,023 | |||
Balance at the beginning at Mar. 31, 2019 | 82,291 | $ 61,321 | 22,160 | (1,190) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Cash dividends declared on common stock | (262) | (262) | ||
Payment of discount on dividend reinvestment plan | (1) | $ (1) | ||
Common stock issued under dividend reinvestment plan (in shares) | 2,453 | |||
Common stock issued under dividend reinvestment plan | 20 | $ 20 | ||
Common stock issued under stock plans | 0 | |||
Compensation expense on restricted stock | 68 | 68 | ||
Restricted stock forfeited (in shares) | (254) | |||
Restricted stock forfeited | (2) | $ (2) | ||
Net income | 1,453 | 1,453 | ||
Other comprehensive income (loss) | $ 523 | 523 | ||
Balance at the end (in shares) at Jun. 30, 2019 | 8,714,222 | 8,714,222 | ||
Balance at the end at Jun. 30, 2019 | $ 84,090 | $ 61,338 | $ 23,419 | $ (667) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 3,100 | $ 4,109 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities | ||
Depreciation and amortization of premises and equipment | 286 | 227 |
Amortization of premiums and accretion of discounts, net | 212 | 244 |
Compensation expense on restricted stock, net of forfeitures | 40 | (3) |
Amortization of subordinated debenture issuance costs | 33 | 33 |
Accretion of deferred loan fees | 47 | 67 |
Fair value adjustment for equity security | (46) | 103 |
Provision for loan losses | 395 | (1,115) |
Originations of mortgage loans held-for-sale | (3,143) | (2,771) |
Proceeds from sale of mortgage loans | 2,722 | 2,565 |
Gain on sales of mortgage loans | (48) | (31) |
Gain on sale of SBA loans | (112) | (59) |
Gain on calls and sales of securities | (3) | (6) |
Deferred income tax expense (benefit) | (1,499) | 173 |
Decrease in accrued interest receivable | 56 | 99 |
Decrease in accrued interest payable | (200) | (5) |
Earnings on bank owned life insurance | (273) | (276) |
(Increase) decrease in other assets | 1,729 | (476) |
Decrease in other liabilities | (219) | (310) |
Net cash provided by operating activities | 3,077 | 2,568 |
Cash flows from investing activities: | ||
Purchase of securities available-for-sale | 0 | (14,191) |
Proceeds from maturities and principal repayments on securities available-for-sale | 6,976 | 7,827 |
Proceeds from sales and calls on securities available-for-sale | 8,170 | 1,006 |
Purchase of securities held-to-maturity | (3,968) | (9,829) |
Proceeds from maturities and principal repayments on securities held-to-maturity | 2,374 | 3,485 |
Proceeds from calls on securities held-to-maturity | 1,605 | 280 |
Purchase of equity securities | 0 | (42) |
Purchase of FHLB-NY stock | (5,632) | (1,203) |
Redemption of FHLB-NY stock | 5,506 | 1,831 |
Net increase in loans | (22,981) | (9,643) |
Additions to premises and equipment | (425) | (270) |
Net cash used in investing activities | (8,375) | (20,749) |
Cash flows from financing activities: | ||
Net increase in noninterest-bearing deposits | 8,254 | 15,482 |
Net increase (decrease) in interest-bearing deposits | (8,400) | 12,480 |
Net increase in long term borrowings | 25,000 | 0 |
Repayment of long term borrowings | (20,000) | (20,760) |
Net increase (decrease) in short-term borrowings | (3,300) | 3,700 |
Cash dividends paid on common stock | (522) | (520) |
Payment of discount on dividend reinvestment plan | (2) | (2) |
Issuance of common stock for cash | 55 | 60 |
Net cash provided by financing activities | 1,085 | 10,440 |
Net decrease in cash and cash equivalents | (4,213) | (7,741) |
Cash and cash equivalents - beginning | 16,823 | 21,270 |
Cash and cash equivalents - ending | 12,610 | 13,529 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the period for interest | 5,225 | 3,581 |
Cash paid during the period for income taxes | $ 512 | $ 1,335 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
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, 2018 , filed with the SEC on March 15, 2019. 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 six months ended June 30, 2019 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 from those estimates and assumptions. Merger with Columbia Financial, Inc. As previously announced on June 6, 2019, the Corporation entered into an Agreement and Plan of Merger (the "Merger Agreement") with Columbia Financial, Inc. ("Columbia") and Broadway Acquisition Corp., a wholly owned subsidiary of Columbia, pursuant to which Broadway Acquisition Corp. will merge with and into the Corporation and, immediately thereafter, the Corporation will merge with and into Columbia (the "Merger") with Columbia being the surviving corporation. Immediately after the Merger, the Corporation’s wholly owned bank subsidiary, Atlantic Stewardship Bank, will merge with and into Columbia’s wholly owned bank subsidiary, Columbia Bank (the “Bank Merger”) with Columbia Bank being the surviving bank in the merger. On a pro forma basis at June 30, 2019, the consolidated entity would have approximately $7.9 billion in assets, $5.8 billion of loans and $5.5 billion of deposits. The Merger Agreement, the Merger and the Bank Merger have been approved by the boards of directors of the Corporation and Columbia and the transaction is expected to close in the fourth quarter of 2019 pending the receipt of all regulatory approvals, the approval of the Corporation’s shareholders, and the satisfaction of customary closing conditions. Under the terms of the Merger Agreement, cash consideration of $15.75 will be paid to the shareholders of the Corporation for each of their shares of the Corporation’s common stock. 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 February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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 was 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," ASU 2018-11, "Leases (Topic 842): Targeted Improvements" and ASU 2019-01, "Leases (Topic 842): Codification Improvements". The Corporation adopted the modified retrospective approach under ASU 2018-11. The Corporation's adoption of the modified retrospective approach under ASU 2018-11 on January 1, 2019 resulted in the recording of a $3.4 million lease liability and a $3.3 million right of use asset on the Consolidated Statements of Financial Condition. 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. Subsequently, the FASB issued the following standards related to ASU 2016-13: ASU 2019-04 "Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments” and ASU 2019-05 "Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief.” 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. As of March 31, 2019, the Corporation had evaluated available historical data, identified the expected loan pools, put in place preliminary shadow accounting and is currently continuing to review assumptions and sample forecasts. As of June 30, 2019, the Corporation continues to be heavily focused on reasonable and supportable assumptions and forecasts for the new reserve calculation. In addition, the Corporation has begun to complete, review and refine parallel calculations. In March 2017, the FASB issued ASU 2017-08, "Premium Amortization on Purchased Callable Debt Securities (Subtopic 310-20)." The update shortens the amortization period for premiums on purchased callable debt securities to the earliest call date. The amendment will apply only to callable debt securities with explicit, noncontingent call features that are callable at fixed prices and on preset dates, apply to all premiums on callable debt securities, regardless of how they were generated, and require companies to reset the effective yield using the payment terms of the debt security if the call option is not exercised on the earliest call date. ASU 2017-08 does not require an accounting change for securities held at a discount. The discount continues to be amortized to maturity and does not apply when the investor has already incorporated prepayments into the calculation of its effective yield under other GAAP. The amendments in ASU 2017-08 are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those years. Early adoption is permitted, including adoption in an interim period. As the Corporation already amortizes these premiums to the call date, the adoption of this ASU on January 1, 2019 did not have any impact on the Corporation's consolidated financial statements. |
Securities - Available-for-Sale
Securities - Available-for-Sale and Held to Maturity | 6 Months Ended |
Jun. 30, 2019 | |
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: June 30, 2019 Amortized Gross Unrealized Fair Cost Gains Losses Value (In thousands) U.S. government-sponsored agencies $ 17,475 $ 13 $ (46 ) $ 17,442 Obligations of state and political subdivisions 3,198 17 (1 ) 3,214 Mortgage-backed securities 58,293 316 (246 ) 58,363 Asset-backed securities (a) 3,770 1 (27 ) 3,744 Corporate debt (b) 13,334 103 (83 ) 13,354 Total available-for-sale securities $ 96,070 $ 450 $ (403 ) $ 96,117 December 31, 2018 Amortized Gross Unrealized Fair Cost Gains Losses Value (In thousands) U.S. government-sponsored agencies $ 26,232 $ 15 $ (498 ) $ 25,749 Obligations of state and political subdivisions 3,205 — (84 ) 3,121 Mortgage-backed securities 63,659 68 (1,564 ) 62,163 Asset-backed securities (a) 4,916 6 — 4,922 Corporate debt (b) 13,369 48 (561 ) 12,856 Total available-for-sale securities $ 111,381 $ 137 $ (2,707 ) $ 108,811 (a) Collateralized by student loans. (b) Corporate debt securities are primarily in financial institutions. Cash proceeds realized from sales and calls of securities available-for-sale for the three and six months ended June 30, 2019 were $4,000,000 and $8,170,000 , respectively. Cash proceeds realized from sales and calls of securities available-for-sale for the three and six months ended June 30, 2018 were $0 and $1,006,000 , respectively. Gross gains realized on sales and calls during the three and six months ended June 30, 2019, were $1,000 and $3,000 , respectively. There were no gross losses realized on sales or calls during the three and six months ended June 30, 2019, respectively. Gross gains realized on sales and calls during the three and six months ended June 30, 2018, were $0 and $6,000 , respectively. There were no gross losses realized on sales or calls during the three and six months ended June 30, 2018, respectively. The following is a summary of the amortized cost, gross unrealized gains and losses and fair value of the held-to- maturity securities: June 30, 2019 Amortized Gross Unrealized Fair Cost Gains Losses Value (In thousands) U.S. Treasury $ 1,000 $ — $ (5 ) $ 995 U.S. government-sponsored agencies 36,563 50 (84 ) 36,529 Obligations of state and political subdivisions 1,914 11 (11 ) 1,914 Mortgage-backed securities 22,787 246 (25 ) 23,008 Total held-to-maturity securities $ 62,264 $ 307 $ (125 ) $ 62,446 December 31, 2018 Amortized Gross Unrealized Fair Cost Gains Losses Value (In thousands) U.S. Treasury $ 999 $ — $ (14 ) $ 985 U.S. government-sponsored agencies 35,565 20 (976 ) 34,609 Obligations of state and political subdivisions 2,358 14 (27 ) 2,345 Mortgage-backed securities 23,386 47 (375 ) 23,058 Total held-to-maturity securities $ 62,308 $ 81 $ (1,392 ) $ 60,997 Cash proceeds realized from calls of securities held-to-maturity for the three and six months ended June 30, 2019 were $500,000 and $1,605,000 , respectively. Cash proceeds realized from calls of securities held-to-maturity for the three and six months ended June 30, 2018 were $0 and $280,000 , respectively. There were no gross gains and no gross losses realized on calls during the three and six months ended June 30, 2019 and June 30, 2018 . 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. June 30, 2019 Amortized Cost Fair Value (In thousands) Available-for-sale Within one year $ 2,134 $ 2,129 After one year, but within five years 13,870 13,840 After five years, but within ten years 14,008 14,077 After ten years 3,995 3,964 Mortgage-backed securities 58,293 58,363 Asset-backed securities 3,770 3,744 Total $ 96,070 $ 96,117 Held-to-maturity Within one year $ 1,670 $ 1,670 After one year, but within five years 20,329 20,327 After five years, but within ten years 16,994 16,968 After ten years 484 473 Mortgage-backed securities 22,787 23,008 Total $ 62,264 $ 62,446 The following tables summarize the fair value and unrealized losses of those investment securities which reported an unrealized loss at June 30, 2019 and December 31, 2018 , and if the unrealized loss position was continuous for the twelve months prior to June 30, 2019 and December 31, 2018 . Available-for-sale June 30, 2019 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 $ 998 $ (2 ) $ 6,798 $ (44 ) $ 7,796 $ (46 ) Obligations of state and political subdivisions — — 310 (1 ) 310 (1 ) Mortgage-backed securities 530 (1 ) 22,966 (245 ) 23,496 (246 ) Asset-backed securities — — 2,650 (27 ) 2,650 (27 ) Corporate debt 499 (1 ) 7,703 (82 ) 8,202 (83 ) Total temporarily impaired securities $ 2,027 $ (4 ) $ 40,427 $ (399 ) $ 42,454 $ (403 ) Available-for-sale December 31, 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 $ — $ — $ 17,432 $ (498 ) $ 17,432 $ (498 ) Obligations of state and political subdivisions — — 3,121 (84 ) 3,121 (84 ) Mortgage-backed securities 4,177 (19 ) 47,479 (1,545 ) 51,656 (1,564 ) Asset-backed securities 2,892 — — — 2,892 — Corporate debt — — 8,808 (561 ) 8,808 (561 ) Total temporarily impaired securities $ 7,069 $ (19 ) $ 76,840 $ (2,688 ) $ 83,909 $ (2,707 ) Held-to-maturity June 30, 2019 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 $ — $ — $ 995 $ (5 ) $ 995 $ (5 ) U.S. government- sponsored agencies 1,993 (7 ) 11,811 (77 ) 13,804 (84 ) Obligations of state and political subdivisions — — 473 (11 ) 473 (11 ) Mortgage-backed securities — — 6,123 (25 ) 6,123 (25 ) Total temporarily impaired securities $ 1,993 $ (7 ) $ 19,402 $ (118 ) $ 21,395 $ (125 ) Held-to-maturity December 31, 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 $ — $ — $ 985 $ (14 ) $ 985 $ (14 ) U.S. government- sponsored agencies 2,496 (9 ) 24,595 (967 ) 27,091 (976 ) Obligations of state and political subdivisions — — 461 (27 ) 461 (27 ) Mortgage-backed securities 5,885 (67 ) 11,081 (308 ) 16,966 (375 ) Total temporarily impaired securities $ 8,381 $ (76 ) $ 37,122 $ (1,316 ) $ 45,503 $ (1,392 ) Other-Than-Temporary Impairment At June 30, 2019 , there were available-for-sale investments comprising nine U.S. government-sponsored agency securities, one obligation of state and political subdivision security, forty-four mortgage-backed securities, one asset backed security, and eight corporate debt securities in a continuous loss position for twelve months or longer. At June 30, 2019 , there were held-to-maturity investments comprising one U.S. Treasury security, eleven U.S. government-sponsored agency securities, one obligation of state and political subdivision security, and seventeen 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 June 30, 2019 and December 31, 2018 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. Management does not intend to sell securities in an unrealized loss position and it is not more likely than not that the Corporation 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 | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | Loans and Allowance for Loan Losses At June 30, 2019 and December 31, 2018 , respectively, the loan portfolio consisted of the following: June 30, December 31, (In thousands) Commercial: Secured by real estate $ 30,139 $ 28,790 Other 76,753 64,965 Commercial real estate 514,289 504,522 Commercial construction 11,419 9,787 Residential real estate 78,798 82,491 Consumer: Secured by real estate 38,421 36,120 Other 661 455 Government Guaranteed Loans - guaranteed portion 6,419 6,559 Other 95 98 Total gross loans 756,994 733,787 Less: Deferred loan costs, net 535 457 Allowance for loan losses 8,404 7,926 8,939 8,383 Loans, net $ 748,055 $ 725,404 Included in Commercial - Other and Commercial real estate at June 30, 2019 were $946,000 and $4,245,000 , respectively, of Small Business Administration ("SBA") loans for which the guaranteed portions have been sold. In addition to the origination of SBA loans, prior to 2017, the Corporation purchased the guaranteed portion of several Government Guaranteed loans. These loans are listed separately in the table above. Due to the guarantee of the principal amount of these loans, no allowance for loan losses is established for these loans. Excluded from the table above are $15.8 million and $14.3 million of unpaid principal balances of loans serviced for others at June 30, 2019 and December 31, 2018 . Activity in the allowance for loan losses is summarized as follows: Three Months Ended June 30, 2019 Balance, beginning of period Provision charged to operations Loans charged off Recoveries of loans charged off Balance, end of period (In thousands) Commercial $ 2,966 $ 153 $ — $ 40 $ 3,159 Commercial real estate 4,753 178 — 16 4,947 Commercial construction 150 27 — — 177 Residential real estate 76 (27 ) — — 49 Consumer 61 3 — — 64 Other loans 1 — — — 1 Unallocated 11 (4 ) — — 7 Total $ 8,018 $ 330 $ — $ 56 $ 8,404 Six Months Ended June 30, 2019 Balance, beginning of period Provision charged to operations Loans charged off Recoveries of loans charged off Balance, end of period (In thousands) Commercial $ 2,703 $ 404 $ — $ 52 $ 3,159 Commercial real estate 4,947 (31 ) — 31 4,947 Commercial construction 131 46 — — 177 Residential real estate 65 (16 ) — — 49 Consumer 68 (4 ) — — 64 Other loans 1 — — — 1 Unallocated 11 (4 ) — — 7 Total $ 7,926 $ 395 $ — $ 83 $ 8,404 Three Months Ended June 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 $ 2,865 $ (9 ) $ — $ 75 $ 2,931 Commercial real estate 5,349 (757 ) — 612 5,204 Commercial construction 81 (10 ) — — 71 Residential real estate 72 (3 ) — — 69 Consumer 67 2 — — 69 Other loans — — — 1 1 Unallocated 11 (3 ) — — 8 Total $ 8,445 $ (780 ) $ — $ 688 $ 8,353 Six Months Ended June 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 $ (198 ) $ (29 ) $ 100 $ 2,931 Commercial real estate 5,531 (961 ) — 634 5,204 Commercial construction 33 38 — — 71 Residential real estate 68 1 — — 69 Consumer 64 4 — 1 69 Other loans 1 — (1 ) 1 1 Unallocated 7 1 — — 8 Total $ 8,762 $ (1,115 ) $ (30 ) $ 736 $ 8,353 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 June 30, 2019 and December 31, 2018 . June 30, 2019 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 $ 95 $ 602 $ — $ — $ — $ — $ — $ — $ 697 Collectively evaluated for impairment 3,064 4,345 177 49 64 — 1 7 7,707 Total ending allowance balance $ 3,159 $ 4,947 $ 177 $ 49 $ 64 $ — $ 1 $ 7 $ 8,404 Loans: Loans individually evaluated for impairment $ 593 $ 3,890 $ — $ 1,229 $ — $ — $ — $ — $ 5,712 Loans collectively evaluated for impairment 106,299 510,399 11,419 77,569 39,082 6,419 95 — 751,282 Total ending loan balance $ 106,892 $ 514,289 $ 11,419 $ 78,798 $ 39,082 $ 6,419 $ 95 $ — $ 756,994 December 31, 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 $ 88 $ 561 $ — $ — $ — $ — $ — $ — $ 649 Collectively evaluated for impairment 2,615 4,386 131 65 68 — 1 11 7,277 Total ending allowance balance $ 2,703 $ 4,947 $ 131 $ 65 $ 68 $ — $ 1 $ 11 $ 7,926 Loans: Loans individually evaluated for impairment $ 633 $ 6,079 $ — $ 576 $ — $ — $ — $ — $ 7,288 Loans collectively evaluated for impairment 93,122 498,443 9,787 81,915 36,575 6,559 98 — 726,499 Total ending loan balance $ 93,755 $ 504,522 $ 9,787 $ 82,491 $ 36,575 $ 6,559 $ 98 $ — $ 733,787 The following table presents the recorded investment in nonaccrual loans at the dates indicated: June 30, December 31, (In thousands) Commercial: Secured by real estate $ 369 $ 394 Commercial real estate 308 574 Residential real estate 1,229 576 Total nonaccrual loans $ 1,906 $ 1,544 At June 30, 2019 and December 31, 2018 , 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 June 30, 2019 Unpaid Recorded Allowance for (In thousands) With no related allowance recorded: Commercial: Secured by real estate $ 415 $ 384 Commercial real estate 936 676 Residential Real Estate 1,255 1,229 2,606 2,289 With an allowance recorded: Commercial: Secured by real estate 91 91 $ 91 Other 118 118 4 Commercial real estate 3,214 3,214 602 3,423 3,423 697 Total: Commercial: Secured by real estate 506 475 91 Other 118 118 4 Commercial real estate 4,150 3,890 602 Residential Real Estate 1,255 1,229 — $ 6,029 $ 5,712 $ 697 At December 31, 2018 Unpaid Recorded Allowance for (In thousands) With no related allowance recorded: Commercial: Secured by real estate $ 447 $ 416 Commercial real estate 3,329 3,001 Residential real estate 587 576 4,363 3,993 With an allowance recorded: Commercial: Secured by real estate 95 95 $ 83 Other 122 122 5 Commercial real estate 3,078 3,078 561 3,295 3,295 649 Total: Commercial: Secured by real estate 542 511 83 Other 122 122 5 Commercial real estate 6,407 6,079 561 Residential real estate 587 576 — $ 7,658 $ 7,288 $ 649 Three Months Ended June 30, 2019 2018 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (In thousands) With no related allowance recorded: Commercial: Secured by real estate $ 399 $ 1 $ 525 $ 4 Commercial real estate 1,817 24 3,076 28 Residential Real Estate 894 — 285 — Consumer: Secured by real estate — — 31 — Total 3,110 25 3,917 32 With allowance Commercial: Secured by real estate 92 1 50 1 Other 119 2 126 2 Commercial real estate 3,219 40 3,099 41 3,430 43 3,275 44 Total $ 6,540 $ 68 $ 7,192 $ 76 Six Months Ended June 30, 2019 2018 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (In thousands) With no related allowance recorded: Commercial: Secured by real estate $ 405 $ 1 $ 480 $ 8 Commercial real estate 2,212 57 3,091 55 Residential Real Estate 788 — 289 — Consumer: Secured by real estate — — 42 — Total 3,405 58 3,902 63 With an allowance recorded: Commercial: Secured by real estate 93 2 44 1 Other 120 4 126 4 Commercial real estate 3,171 80 3,103 80 3,384 86 3,273 85 Total $ 6,789 $ 144 $ 7,175 $ 148 During the six months ended June 30, 2019 and 2018, 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 June 30, 2019 and December 31, 2018 . Nonaccrual loans are included in the disclosure by payment status. June 30, 2019 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 $ — $ — $ 369 $ 369 $ 29,770 $ 30,139 Other — — — — 76,753 76,753 Commercial real estate — — 256 256 514,033 514,289 Commercial construction — — — — 11,419 11,419 Residential real estate — 327 648 975 77,823 78,798 Consumer: Secured by real estate — — — — 38,421 38,421 Other — 1 — 1 660 661 Government Guaranteed — — — — 6,419 6,419 Other — — — — 95 95 Total $ — $ 328 $ 1,273 $ 1,601 $ 755,393 $ 756,994 December 31, 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 $ — $ — $ 394 $ 394 $ 28,396 $ 28,790 Other 6 — — 6 64,959 64,965 Commercial real estate 2,155 — 509 2,664 501,858 504,522 Commercial construction — — — — 9,787 9,787 Residential real estate 112 42 308 462 82,029 82,491 Consumer: Secured by real estate — — — — 36,120 36,120 Other 1 — — 1 454 455 Government Guaranteed — — — — 6,559 6,559 Other — — — — 98 98 Total $ 2,274 $ 42 $ 1,211 $ 3,527 $ 730,260 $ 733,787 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 June 30, 2019 and December 31, 2018 , the Corporation had $3.9 million and $6.3 million , respectively, of loans whose terms have been modified in troubled debt restructurings. Of these loans, $3.8 million and $5.7 million had demonstrated a reasonable period of performance in accordance with their new terms at June 30, 2019 and December 31, 2018 , respectively and are, therefore, accruing loans. The remaining troubled debt restructurings are reported as nonaccrual loans. Specific reserves of $630,000 and $649,000 have been recorded for the troubled debt restructurings at June 30, 2019 and December 31, 2018 , respectively, and are included in the table above. As of June 30, 2019 and December 31, 2018 , there were no additional funds committed to these borrowers. There were no new loans classified as a troubled debt restructuring during the three and six months ended June 30, 2019 or June 30, 2018 . 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 June 30, 2019 and December 31, 2018 , and based on the most recent analysis performed at those times, the risk category of loans by class is as follows: June 30, 2019 Pass Special Mention Substandard Doubtful Loss Total (In thousands) Commercial: Secured by real estate $ 28,764 $ 272 $ 1,103 $ — $ — $ 30,139 Other 75,407 119 1,227 — — 76,753 Commercial real estate 507,524 2,103 4,662 — — 514,289 Commercial construction 11,419 — — — — 11,419 Government Guaranteed Loans - guaranteed portion 6,419 — — — — 6,419 Total $ 629,533 $ 2,494 $ 6,992 $ — $ — $ 639,019 December 31, 2018 Pass Special Mention Substandard Doubtful Loss Total (In thousands) Commercial: Secured by real estate $ 26,879 $ 1,234 $ 677 $ — $ — $ 28,790 Other 63,438 181 1,346 — — 64,965 Commercial real estate 490,661 7,086 6,775 — — 504,522 Commercial construction 9,787 — — — — 9,787 Government Guaranteed Loans - guaranteed portion 6,559 — — — — 6,559 Total $ 597,324 $ 8,501 $ 8,798 $ — $ — $ 614,623 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 June 30, 2019 and December 31, 2018 . June 30, 2019 Current 30+ Days Past Due or Nonaccrual Total (In thousands) Residential real estate $ 77,569 $ 1,229 $ 78,798 Consumer: Secured by real estate 38,421 — 38,421 Other 660 1 661 Total $ 116,650 $ 1,230 $ 117,880 December 31, 2018 Current 30+ Days Past Due or Nonaccrual Total (In thousands) Residential real estate $ 81,761 $ 730 $ 82,491 Consumer: Secured by real estate 36,120 — 36,120 Other 454 1 455 Total $ 118,335 $ 731 $ 119,066 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 (In thousands) Assets: Available-for-sale securities U.S. government - sponsored agencies $ 17,442 $ — $ 17,442 $ — Obligations of state and political subdivisions 3,214 — 3,214 — Mortgage-backed securities 58,363 — 58,363 — Asset-backed securities 3,744 — 3,744 — Corporate debt 13,354 — 13,354 — Total available-for-sale securities $ 96,117 $ — $ 96,117 $ — Other equity investments $ 1,693 $ 1,633 $ 60 $ — Interest rate swap $ — $ — $ — $ — Liabilities: Interest rate swap $ 967 $ — $ 967 $ — 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, 2018 (In thousands) Assets: Available-for-sale securities U.S. government - sponsored agencies $ 25,749 $ — $ 25,749 $ — Obligations of state and political subdivisions 3,121 — 3,121 — Mortgage-backed securities 62,163 — 62,163 — Asset-backed securities 4,922 — 4,922 — Corporate debt 12,856 — 12,856 — Total available-for-sale securities $ 108,811 $ — $ 108,811 $ — Other equity investments $ 1,648 $ 1,588 $ 60 $ — Interest rate swap $ 134 $ — $ 134 $ — Liabilities: Interest rate swap $ 246 $ — $ 246 $ — There were no transfers of assets between Level 1 and Level 2 during the six months ended June 30, 2019 or during the year ended December 31, 2018 . There were no changes to the valuation techniques for fair value measurements as of June 30, 2019 and December 31, 2018 . 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. 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 June 30, 2019 (In thousands) Assets: Impaired loans Commercial: Secured by real estate $ 31 $ — $ — $ 31 Commercial real estate 88 — — 88 Residential real estate 679 — — 679 Total assets $ 798 $ — $ — $ 798 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, 2018 (In thousands) Assets: Impaired loans Commercial: Secured by real estate $ 301 $ — $ — $ 301 Residential real estate 308 — — 308 Total assets $ 609 $ — $ — $ 609 Collateral-dependent impaired loans measured for impairment using fair value of the collateral had a recorded investment value of $864,000 , resulting in an increase in the allowance for loan losses of $66,000 for the six months ended June 30, 2019 . Collateral-dependent impaired loans measured for impairment using the fair value of the collateral had a recorded investment value of $692,000 , resulting in an increase of the allowance for loan losses of $ 83,000 for the year ended December 31, 2018 . There was no OREO at June 30, 2019 or December 31, 2018 . 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: June 30, 2019 Fair Weighted Assets Value Valuation Technique Unobservable Inputs Average (Dollars in thousands) Impaired loans $ 798 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, 2018 Fair Weighted Assets Value Valuation Technique Unobservable Inputs Average (Dollars in thousands) Impaired loans $ 609 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) June 30, 2019 (In thousands) Financial assets: Cash and cash equivalents $ 12,610 $ 12,610 $ — $ — Securities available-for-sale 96,117 — 96,117 — Securities held-to-maturity 62,264 — 62,446 — Other equity investments 1,693 1,633 60 — FHLB-NY stock 4,091 N/A N/A N/A Loans, net 748,055 — — 737,503 Interest rate swap — — — — Financial liabilities: Deposits 781,945 589,355 193,488 — FHLB-NY advances 67,400 — 68,100 — Subordinated Debentures and Subordinated Notes 23,415 — — 23,746 Interest rate swap 967 — 967 — 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, 2018 (In thousands) Financial assets: Cash and cash equivalents $ 16,823 $ 16,823 $ — $ — Securities available-for-sale 108,811 — 108,811 — Securities held-to-maturity 62,308 — 60,997 — Other equity investments 1,648 1,588 60 — FHLB-NY stock 3,965 N/A N/A N/A Loans, net 725,404 — — 704,273 Interest rate swap 134 — 134 — Financial liabilities: Deposits 782,091 578,460 201,846 — FHLB-NY advances 65,700 — 65,477 — Subordinated Debentures and Subordinated Notes 23,382 — — 23,441 Interest rate swap 246 — 246 — 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 is based on an exit price model taking into account inputs such as probability of default and loss given default assumptions. 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 June 30, 2019 and December 31, 2018 , the fair value of such commitments were not material. Limitations The preceding fair value estimates were made at June 30, 2019 and December 31, 2018 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 June 30, 2019 and December 31, 2018 , 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 | 6 Months Ended |
Jun. 30, 2019 | |
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 Six Months Ended June 30, June 30, 2019 2018 2019 2018 (Dollars in thousands) Net income $ 1,453 $ 2,301 $ 3,100 $ 4,109 Weighted average common shares outstanding - basic 8,713,110 8,675,868 8,700,609 8,667,235 Effect of dilutive securities - stock options N/A N/A N/A N/A Weighted average common shares outstanding - diluted 8,713,110 8,675,868 8,700,609 8,667,235 Basic earnings per common share $ 0.17 $ 0.27 $ 0.36 $ 0.47 Diluted earnings per common share $ 0.17 $ 0.27 $ 0.36 $ 0.47 There were no stock options to purchase shares of common stock for the three and six months ended June 30, 2019 and 2018 . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income (Loss) The components of other comprehensive income, both gross and net of tax, are presented for the periods below: Three Months Ended June 30, 2019 2018 Gross Tax Net Gross Tax Net (In thousands) Other comprehensive income (loss): Change in unrealized holding gains (losses) on securities available-for-sale $ 1,277 $ (366 ) $ 911 $ (488 ) $ 129 $ (359 ) Reclassification adjustment for gains in net income (1 ) — (1 ) — — — Accretion of loss on securities reclassified to held-to-maturity 4 (1 ) 3 9 (5 ) 4 Change in fair value of interest rate swap (556 ) 161 (395 ) 74 (21 ) 53 Reclassification adjustment for interest rate swap interest expense in net income 7 (2 ) 5 3 (1 ) 2 Total other comprehensive income (loss) $ 731 $ (208 ) $ 523 $ (402 ) $ 102 $ (300 ) Six Months Ended June 30, 2019 2018 Gross Tax Net Gross Tax Net (In thousands) Other comprehensive income (loss): Change in unrealized holding gains (losses) on securities available-for-sale $ 2,620 $ (747 ) $ 1,873 $ (1,832 ) $ 480 $ (1,352 ) Reclassification adjustment for gains in net income (3 ) 1 (2 ) (6 ) 2 (4 ) Accretion of loss on securities reclassified to held-to-maturity 7 (2 ) 5 18 (5 ) 13 Change in fair value of interest rate swap (865 ) 251 (614 ) 294 (83 ) 211 Reclassification adjustment for interest rate swap interest expense in net income 10 (3 ) 7 15 (4 ) 11 Total other comprehensive income (loss) $ 1,769 $ (500 ) $ 1,269 $ (1,511 ) $ 390 $ (1,121 ) The following tables present the after-tax changes in the balances of each component of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2019 and 2018 . Three Months Ended June 30, 2019 Components of Accumulated Total Unrealized Gains / (Losses) on Loss on Securities Unrealized Accumulated (In thousands) Balance at March 31, 2019 $ (860 ) $ (36 ) $ (294 ) $ (1,190 ) Other comprehensive income (loss) before reclassifications 911 3 (395 ) 519 Amounts reclassified from other comprehensive income (loss) (1 ) — 5 4 Other comprehensive income (loss) 910 3 (390 ) 523 Balance at June 30, 2019 $ 50 $ (33 ) $ (684 ) $ (667 ) Six Months Ended June 30, 2019 Components of Accumulated Total Unrealized Gains / (Losses) on Loss on Securities Unrealized Accumulated (In thousands) Balance at December 31, 2018 $ (1,821 ) $ (38 ) $ (77 ) $ (1,936 ) Other comprehensive income (loss) before reclassifications 1,873 5 (614 ) 1,264 Amounts reclassified from other comprehensive income (loss) (2 ) — 7 5 Other comprehensive income (loss) 1,871 5 (607 ) 1,269 Balance at June 30, 2019 $ 50 $ (33 ) $ (684 ) $ (667 ) Three Months Ended June 30, 2018 Components of Accumulated Total Unrealized Gains / (Losses) on Loss on Securities Unrealized Accumulated (In thousands) Balance at March 31, 2018 $ (2,137 ) $ (51 ) $ 146 $ (2,042 ) Other comprehensive income (loss) before reclassifications (359 ) 4 53 (302 ) Amounts reclassified from other comprehensive income (loss) — — 2 2 Other comprehensive income (loss) (359 ) 4 55 (300 ) Balance at June 30, 2018 $ (2,496 ) $ (47 ) $ 201 $ (2,342 ) Six Months Ended June 30, 2018 Components of Accumulated Total Unrealized Gains / (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 (1,352 ) 13 211 (1,128 ) Amounts reclassified from other comprehensive income (loss) (4 ) — 11 7 Other comprehensive income (loss) (1,356 ) 13 222 (1,121 ) Reclassification due to the adoption of ASU No. 2016-01 163 — — 163 Balance at June 30, 2018 $ (2,496 ) $ (47 ) $ 201 $ (2,342 ) The following tables present amounts reclassified from each component of accumulated other comprehensive income on a gross and net of tax basis for the six months ended June 30, 2019 and 2018 . Three Months Ended Income Components of Accumulated Other June 30, Statement Comprehensive Income (Loss) 2019 2018 Line Item (In thousands) Unrealized gains on securities available-for-sale, before tax $ 1 $ — Gains on securities transactions, net Tax effect — — Total, net of tax 1 — Unrealized losses on derivatives before tax (7 ) (3 ) Interest expense on derivatives Tax effect 2 1 Total, net of tax (5 ) (2 ) Total reclassifications, net of tax $ (4 ) $ (2 ) Six Months Ended Income Components of Accumulated Other June 30, Statement Comprehensive Income (Loss) 2019 2018 Line Item (In thousands) Unrealized gains on securities available-for-sale, before tax $ 3 $ 6 Gains on securities transactions, net Tax effect (1 ) (2 ) Total, net of tax 2 4 Unrealized losses on derivatives before tax (10 ) (15 ) Interest expense on derivatives Tax effect 3 4 Total, net of tax (7 ) (11 ) Total reclassifications, net of tax $ (5 ) $ (7 ) |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases The Corporation leases eight branch offices. In addition, the Corporation has 12 leases for equipment, which are primarily copiers, and one automobile lease. Four of the branch office leases have options to renew. The exercise of lease renewal options is at our sole discretion; therefore, the lease renewal options are not included in the right of use (ROU) asset or the Lease Liability as they are not reasonably certain of exercise. As a practical expedient, the ROU asset and Lease Liability exclude short-term leases. As the leases do not provide an implicit rate, use of an incremental borrowing rate was based on the information available at the lease commencement date in determining the present value of the lease payments. The Corporation’s weighted average incremental borrowing rate used in the calculation of the ROU asset and Lease Liability was estimated at 3 %. The following table presents a maturity analysis of the operating lease liability at June 30, 2019 , in thousands: Maturities of Lease Liabilities (In thousands) Six months ended December 31, 2019 $ 355 Year ended December 31, 2020 646 Year ended December 31, 2021 489 Year ended December 31, 2022 474 Thereafter 1,079 Lease Liability June 30, 2019 $ 3,043 The weighted-average remaining lease term is 5.3 years . Total lease costs for the three months ended June 30, 2019 was $239,000 consisting of $203,000 related to fixed rent expense, $32,000 related to variable rent expense and $13,000 related to short-term leases offset by $9,000 of sublease income. Variable lease expense consists primarily of expense paid to maintain common areas. Lease costs included in Occupancy expense totaled $217,000 and another $22,000 was included in Equipment expense. Total lease costs for the six months ended June 30, 2019 was $479,000 consisting of $402,000 related to fixed rent expense, $63,000 related to variable rent expense and $32,000 related to short-term leases offset by $18,000 of sublease income. Variable lease expense consists primarily of expense paid to maintain common areas. Lease costs included in Occupancy expense totaled $430,000 and another $49,000 was included in Equipment expense. Rent paid under operating leases was $198,000 and $391,000 for the three and six months ended June 30, 2019 , respectively. The following table presents future minimum rental payments as of June 30, 2019 : Expires June 30, Minimum Rent (In thousands) 2020 $ 772 2021 578 2022 529 2023 443 2024 359 Thereafter 502 $ 3,183 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2018 , filed with the SEC on March 15, 2019. 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 six months ended June 30, 2019 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 from those estimates and assumptions. |
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 February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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 was 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," ASU 2018-11, "Leases (Topic 842): Targeted Improvements" and ASU 2019-01, "Leases (Topic 842): Codification Improvements". The Corporation adopted the modified retrospective approach under ASU 2018-11. The Corporation's adoption of the modified retrospective approach under ASU 2018-11 on January 1, 2019 resulted in the recording of a $3.4 million lease liability and a $3.3 million right of use asset on the Consolidated Statements of Financial Condition. 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. Subsequently, the FASB issued the following standards related to ASU 2016-13: ASU 2019-04 "Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments” and ASU 2019-05 "Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief.” 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. As of March 31, 2019, the Corporation had evaluated available historical data, identified the expected loan pools, put in place preliminary shadow accounting and is currently continuing to review assumptions and sample forecasts. As of June 30, 2019, the Corporation continues to be heavily focused on reasonable and supportable assumptions and forecasts for the new reserve calculation. In addition, the Corporation has begun to complete, review and refine parallel calculations. In March 2017, the FASB issued ASU 2017-08, "Premium Amortization on Purchased Callable Debt Securities (Subtopic 310-20)." The update shortens the amortization period for premiums on purchased callable debt securities to the earliest call date. The amendment will apply only to callable debt securities with explicit, noncontingent call features that are callable at fixed prices and on preset dates, apply to all premiums on callable debt securities, regardless of how they were generated, and require companies to reset the effective yield using the payment terms of the debt security if the call option is not exercised on the earliest call date. ASU 2017-08 does not require an accounting change for securities held at a discount. The discount continues to be amortized to maturity and does not apply when the investor has already incorporated prepayments into the calculation of its effective yield under other GAAP. The amendments in ASU 2017-08 are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those years. Early adoption is permitted, including adoption in an interim period. As the Corporation already amortizes these premiums to the call date, the adoption of this ASU on January 1, 2019 did not have any impact on the Corporation's consolidated financial statements. |
Securities - Available-for-Sa_2
Securities - Available-for-Sale and Held to Maturity (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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: June 30, 2019 Amortized Gross Unrealized Fair Cost Gains Losses Value (In thousands) U.S. government-sponsored agencies $ 17,475 $ 13 $ (46 ) $ 17,442 Obligations of state and political subdivisions 3,198 17 (1 ) 3,214 Mortgage-backed securities 58,293 316 (246 ) 58,363 Asset-backed securities (a) 3,770 1 (27 ) 3,744 Corporate debt (b) 13,334 103 (83 ) 13,354 Total available-for-sale securities $ 96,070 $ 450 $ (403 ) $ 96,117 December 31, 2018 Amortized Gross Unrealized Fair Cost Gains Losses Value (In thousands) U.S. government-sponsored agencies $ 26,232 $ 15 $ (498 ) $ 25,749 Obligations of state and political subdivisions 3,205 — (84 ) 3,121 Mortgage-backed securities 63,659 68 (1,564 ) 62,163 Asset-backed securities (a) 4,916 6 — 4,922 Corporate debt (b) 13,369 48 (561 ) 12,856 Total available-for-sale securities $ 111,381 $ 137 $ (2,707 ) $ 108,811 (a) Collateralized by student loans. (b) Corporate debt securities are primarily in financial institutions. |
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: June 30, 2019 Amortized Gross Unrealized Fair Cost Gains Losses Value (In thousands) U.S. Treasury $ 1,000 $ — $ (5 ) $ 995 U.S. government-sponsored agencies 36,563 50 (84 ) 36,529 Obligations of state and political subdivisions 1,914 11 (11 ) 1,914 Mortgage-backed securities 22,787 246 (25 ) 23,008 Total held-to-maturity securities $ 62,264 $ 307 $ (125 ) $ 62,446 December 31, 2018 Amortized Gross Unrealized Fair Cost Gains Losses Value (In thousands) U.S. Treasury $ 999 $ — $ (14 ) $ 985 U.S. government-sponsored agencies 35,565 20 (976 ) 34,609 Obligations of state and political subdivisions 2,358 14 (27 ) 2,345 Mortgage-backed securities 23,386 47 (375 ) 23,058 Total held-to-maturity securities $ 62,308 $ 81 $ (1,392 ) $ 60,997 Held-to-maturity June 30, 2019 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 $ — $ — $ 995 $ (5 ) $ 995 $ (5 ) U.S. government- sponsored agencies 1,993 (7 ) 11,811 (77 ) 13,804 (84 ) Obligations of state and political subdivisions — — 473 (11 ) 473 (11 ) Mortgage-backed securities — — 6,123 (25 ) 6,123 (25 ) Total temporarily impaired securities $ 1,993 $ (7 ) $ 19,402 $ (118 ) $ 21,395 $ (125 ) Held-to-maturity December 31, 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 $ — $ — $ 985 $ (14 ) $ 985 $ (14 ) U.S. government- sponsored agencies 2,496 (9 ) 24,595 (967 ) 27,091 (976 ) Obligations of state and political subdivisions — — 461 (27 ) 461 (27 ) Mortgage-backed securities 5,885 (67 ) 11,081 (308 ) 16,966 (375 ) Total temporarily impaired securities $ 8,381 $ (76 ) $ 37,122 $ (1,316 ) $ 45,503 $ (1,392 ) |
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. June 30, 2019 Amortized Cost Fair Value (In thousands) Available-for-sale Within one year $ 2,134 $ 2,129 After one year, but within five years 13,870 13,840 After five years, but within ten years 14,008 14,077 After ten years 3,995 3,964 Mortgage-backed securities 58,293 58,363 Asset-backed securities 3,770 3,744 Total $ 96,070 $ 96,117 Held-to-maturity Within one year $ 1,670 $ 1,670 After one year, but within five years 20,329 20,327 After five years, but within ten years 16,994 16,968 After ten years 484 473 Mortgage-backed securities 22,787 23,008 Total $ 62,264 $ 62,446 |
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 June 30, 2019 and December 31, 2018 , and if the unrealized loss position was continuous for the twelve months prior to June 30, 2019 and December 31, 2018 . Available-for-sale June 30, 2019 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 $ 998 $ (2 ) $ 6,798 $ (44 ) $ 7,796 $ (46 ) Obligations of state and political subdivisions — — 310 (1 ) 310 (1 ) Mortgage-backed securities 530 (1 ) 22,966 (245 ) 23,496 (246 ) Asset-backed securities — — 2,650 (27 ) 2,650 (27 ) Corporate debt 499 (1 ) 7,703 (82 ) 8,202 (83 ) Total temporarily impaired securities $ 2,027 $ (4 ) $ 40,427 $ (399 ) $ 42,454 $ (403 ) Available-for-sale December 31, 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 $ — $ — $ 17,432 $ (498 ) $ 17,432 $ (498 ) Obligations of state and political subdivisions — — 3,121 (84 ) 3,121 (84 ) Mortgage-backed securities 4,177 (19 ) 47,479 (1,545 ) 51,656 (1,564 ) Asset-backed securities 2,892 — — — 2,892 — Corporate debt — — 8,808 (561 ) 8,808 (561 ) Total temporarily impaired securities $ 7,069 $ (19 ) $ 76,840 $ (2,688 ) $ 83,909 $ (2,707 ) |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Summary of Loan Portfolio | At June 30, 2019 and December 31, 2018 , respectively, the loan portfolio consisted of the following: June 30, December 31, (In thousands) Commercial: Secured by real estate $ 30,139 $ 28,790 Other 76,753 64,965 Commercial real estate 514,289 504,522 Commercial construction 11,419 9,787 Residential real estate 78,798 82,491 Consumer: Secured by real estate 38,421 36,120 Other 661 455 Government Guaranteed Loans - guaranteed portion 6,419 6,559 Other 95 98 Total gross loans 756,994 733,787 Less: Deferred loan costs, net 535 457 Allowance for loan losses 8,404 7,926 8,939 8,383 Loans, net $ 748,055 $ 725,404 |
Schedule of Allowance for Loan Losses | Activity in the allowance for loan losses is summarized as follows: Three Months Ended June 30, 2019 Balance, beginning of period Provision charged to operations Loans charged off Recoveries of loans charged off Balance, end of period (In thousands) Commercial $ 2,966 $ 153 $ — $ 40 $ 3,159 Commercial real estate 4,753 178 — 16 4,947 Commercial construction 150 27 — — 177 Residential real estate 76 (27 ) — — 49 Consumer 61 3 — — 64 Other loans 1 — — — 1 Unallocated 11 (4 ) — — 7 Total $ 8,018 $ 330 $ — $ 56 $ 8,404 Six Months Ended June 30, 2019 Balance, beginning of period Provision charged to operations Loans charged off Recoveries of loans charged off Balance, end of period (In thousands) Commercial $ 2,703 $ 404 $ — $ 52 $ 3,159 Commercial real estate 4,947 (31 ) — 31 4,947 Commercial construction 131 46 — — 177 Residential real estate 65 (16 ) — — 49 Consumer 68 (4 ) — — 64 Other loans 1 — — — 1 Unallocated 11 (4 ) — — 7 Total $ 7,926 $ 395 $ — $ 83 $ 8,404 Three Months Ended June 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 $ 2,865 $ (9 ) $ — $ 75 $ 2,931 Commercial real estate 5,349 (757 ) — 612 5,204 Commercial construction 81 (10 ) — — 71 Residential real estate 72 (3 ) — — 69 Consumer 67 2 — — 69 Other loans — — — 1 1 Unallocated 11 (3 ) — — 8 Total $ 8,445 $ (780 ) $ — $ 688 $ 8,353 Six Months Ended June 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 $ (198 ) $ (29 ) $ 100 $ 2,931 Commercial real estate 5,531 (961 ) — 634 5,204 Commercial construction 33 38 — — 71 Residential real estate 68 1 — — 69 Consumer 64 4 — 1 69 Other loans 1 — (1 ) 1 1 Unallocated 7 1 — — 8 Total $ 8,762 $ (1,115 ) $ (30 ) $ 736 $ 8,353 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 June 30, 2019 and December 31, 2018 . June 30, 2019 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 $ 95 $ 602 $ — $ — $ — $ — $ — $ — $ 697 Collectively evaluated for impairment 3,064 4,345 177 49 64 — 1 7 7,707 Total ending allowance balance $ 3,159 $ 4,947 $ 177 $ 49 $ 64 $ — $ 1 $ 7 $ 8,404 Loans: Loans individually evaluated for impairment $ 593 $ 3,890 $ — $ 1,229 $ — $ — $ — $ — $ 5,712 Loans collectively evaluated for impairment 106,299 510,399 11,419 77,569 39,082 6,419 95 — 751,282 Total ending loan balance $ 106,892 $ 514,289 $ 11,419 $ 78,798 $ 39,082 $ 6,419 $ 95 $ — $ 756,994 December 31, 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 $ 88 $ 561 $ — $ — $ — $ — $ — $ — $ 649 Collectively evaluated for impairment 2,615 4,386 131 65 68 — 1 11 7,277 Total ending allowance balance $ 2,703 $ 4,947 $ 131 $ 65 $ 68 $ — $ 1 $ 11 $ 7,926 Loans: Loans individually evaluated for impairment $ 633 $ 6,079 $ — $ 576 $ — $ — $ — $ — $ 7,288 Loans collectively evaluated for impairment 93,122 498,443 9,787 81,915 36,575 6,559 98 — 726,499 Total ending loan balance $ 93,755 $ 504,522 $ 9,787 $ 82,491 $ 36,575 $ 6,559 $ 98 $ — $ 733,787 |
Schedule of Recorded Investment in Nonaccrual Loans | The following table presents the recorded investment in nonaccrual loans at the dates indicated: June 30, December 31, (In thousands) Commercial: Secured by real estate $ 369 $ 394 Commercial real estate 308 574 Residential real estate 1,229 576 Total nonaccrual loans $ 1,906 $ 1,544 |
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 June 30, 2019 Unpaid Recorded Allowance for (In thousands) With no related allowance recorded: Commercial: Secured by real estate $ 415 $ 384 Commercial real estate 936 676 Residential Real Estate 1,255 1,229 2,606 2,289 With an allowance recorded: Commercial: Secured by real estate 91 91 $ 91 Other 118 118 4 Commercial real estate 3,214 3,214 602 3,423 3,423 697 Total: Commercial: Secured by real estate 506 475 91 Other 118 118 4 Commercial real estate 4,150 3,890 602 Residential Real Estate 1,255 1,229 — $ 6,029 $ 5,712 $ 697 At December 31, 2018 Unpaid Recorded Allowance for (In thousands) With no related allowance recorded: Commercial: Secured by real estate $ 447 $ 416 Commercial real estate 3,329 3,001 Residential real estate 587 576 4,363 3,993 With an allowance recorded: Commercial: Secured by real estate 95 95 $ 83 Other 122 122 5 Commercial real estate 3,078 3,078 561 3,295 3,295 649 Total: Commercial: Secured by real estate 542 511 83 Other 122 122 5 Commercial real estate 6,407 6,079 561 Residential real estate 587 576 — $ 7,658 $ 7,288 $ 649 Three Months Ended June 30, 2019 2018 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (In thousands) With no related allowance recorded: Commercial: Secured by real estate $ 399 $ 1 $ 525 $ 4 Commercial real estate 1,817 24 3,076 28 Residential Real Estate 894 — 285 — Consumer: Secured by real estate — — 31 — Total 3,110 25 3,917 32 With allowance Commercial: Secured by real estate 92 1 50 1 Other 119 2 126 2 Commercial real estate 3,219 40 3,099 41 3,430 43 3,275 44 Total $ 6,540 $ 68 $ 7,192 $ 76 Six Months Ended June 30, 2019 2018 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (In thousands) With no related allowance recorded: Commercial: Secured by real estate $ 405 $ 1 $ 480 $ 8 Commercial real estate 2,212 57 3,091 55 Residential Real Estate 788 — 289 — Consumer: Secured by real estate — — 42 — Total 3,405 58 3,902 63 With an allowance recorded: Commercial: Secured by real estate 93 2 44 1 Other 120 4 126 4 Commercial real estate 3,171 80 3,103 80 3,384 86 3,273 85 Total $ 6,789 $ 144 $ 7,175 $ 148 |
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 June 30, 2019 and December 31, 2018 . Nonaccrual loans are included in the disclosure by payment status. June 30, 2019 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 $ — $ — $ 369 $ 369 $ 29,770 $ 30,139 Other — — — — 76,753 76,753 Commercial real estate — — 256 256 514,033 514,289 Commercial construction — — — — 11,419 11,419 Residential real estate — 327 648 975 77,823 78,798 Consumer: Secured by real estate — — — — 38,421 38,421 Other — 1 — 1 660 661 Government Guaranteed — — — — 6,419 6,419 Other — — — — 95 95 Total $ — $ 328 $ 1,273 $ 1,601 $ 755,393 $ 756,994 December 31, 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 $ — $ — $ 394 $ 394 $ 28,396 $ 28,790 Other 6 — — 6 64,959 64,965 Commercial real estate 2,155 — 509 2,664 501,858 504,522 Commercial construction — — — — 9,787 9,787 Residential real estate 112 42 308 462 82,029 82,491 Consumer: Secured by real estate — — — — 36,120 36,120 Other 1 — — 1 454 455 Government Guaranteed — — — — 6,559 6,559 Other — — — — 98 98 Total $ 2,274 $ 42 $ 1,211 $ 3,527 $ 730,260 $ 733,787 |
Schedule of Loans by Credit Quality Indicators | As of June 30, 2019 and December 31, 2018 , and based on the most recent analysis performed at those times, the risk category of loans by class is as follows: June 30, 2019 Pass Special Mention Substandard Doubtful Loss Total (In thousands) Commercial: Secured by real estate $ 28,764 $ 272 $ 1,103 $ — $ — $ 30,139 Other 75,407 119 1,227 — — 76,753 Commercial real estate 507,524 2,103 4,662 — — 514,289 Commercial construction 11,419 — — — — 11,419 Government Guaranteed Loans - guaranteed portion 6,419 — — — — 6,419 Total $ 629,533 $ 2,494 $ 6,992 $ — $ — $ 639,019 December 31, 2018 Pass Special Mention Substandard Doubtful Loss Total (In thousands) Commercial: Secured by real estate $ 26,879 $ 1,234 $ 677 $ — $ — $ 28,790 Other 63,438 181 1,346 — — 64,965 Commercial real estate 490,661 7,086 6,775 — — 504,522 Commercial construction 9,787 — — — — 9,787 Government Guaranteed Loans - guaranteed portion 6,559 — — — — 6,559 Total $ 597,324 $ 8,501 $ 8,798 $ — $ — $ 614,623 |
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 June 30, 2019 and December 31, 2018 . June 30, 2019 Current 30+ Days Past Due or Nonaccrual Total (In thousands) Residential real estate $ 77,569 $ 1,229 $ 78,798 Consumer: Secured by real estate 38,421 — 38,421 Other 660 1 661 Total $ 116,650 $ 1,230 $ 117,880 December 31, 2018 Current 30+ Days Past Due or Nonaccrual Total (In thousands) Residential real estate $ 81,761 $ 730 $ 82,491 Consumer: Secured by real estate 36,120 — 36,120 Other 454 1 455 Total $ 118,335 $ 731 $ 119,066 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 (In thousands) Assets: Available-for-sale securities U.S. government - sponsored agencies $ 17,442 $ — $ 17,442 $ — Obligations of state and political subdivisions 3,214 — 3,214 — Mortgage-backed securities 58,363 — 58,363 — Asset-backed securities 3,744 — 3,744 — Corporate debt 13,354 — 13,354 — Total available-for-sale securities $ 96,117 $ — $ 96,117 $ — Other equity investments $ 1,693 $ 1,633 $ 60 $ — Interest rate swap $ — $ — $ — $ — Liabilities: Interest rate swap $ 967 $ — $ 967 $ — 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, 2018 (In thousands) Assets: Available-for-sale securities U.S. government - sponsored agencies $ 25,749 $ — $ 25,749 $ — Obligations of state and political subdivisions 3,121 — 3,121 — Mortgage-backed securities 62,163 — 62,163 — Asset-backed securities 4,922 — 4,922 — Corporate debt 12,856 — 12,856 — Total available-for-sale securities $ 108,811 $ — $ 108,811 $ — Other equity investments $ 1,648 $ 1,588 $ 60 $ — Interest rate swap $ 134 $ — $ 134 $ — Liabilities: Interest rate swap $ 246 $ — $ 246 $ — |
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 June 30, 2019 (In thousands) Assets: Impaired loans Commercial: Secured by real estate $ 31 $ — $ — $ 31 Commercial real estate 88 — — 88 Residential real estate 679 — — 679 Total assets $ 798 $ — $ — $ 798 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, 2018 (In thousands) Assets: Impaired loans Commercial: Secured by real estate $ 301 $ — $ — $ 301 Residential real estate 308 — — 308 Total assets $ 609 $ — $ — $ 609 |
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: June 30, 2019 Fair Weighted Assets Value Valuation Technique Unobservable Inputs Average (Dollars in thousands) Impaired loans $ 798 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, 2018 Fair Weighted Assets Value Valuation Technique Unobservable Inputs Average (Dollars in thousands) Impaired loans $ 609 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) June 30, 2019 (In thousands) Financial assets: Cash and cash equivalents $ 12,610 $ 12,610 $ — $ — Securities available-for-sale 96,117 — 96,117 — Securities held-to-maturity 62,264 — 62,446 — Other equity investments 1,693 1,633 60 — FHLB-NY stock 4,091 N/A N/A N/A Loans, net 748,055 — — 737,503 Interest rate swap — — — — Financial liabilities: Deposits 781,945 589,355 193,488 — FHLB-NY advances 67,400 — 68,100 — Subordinated Debentures and Subordinated Notes 23,415 — — 23,746 Interest rate swap 967 — 967 — 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, 2018 (In thousands) Financial assets: Cash and cash equivalents $ 16,823 $ 16,823 $ — $ — Securities available-for-sale 108,811 — 108,811 — Securities held-to-maturity 62,308 — 60,997 — Other equity investments 1,648 1,588 60 — FHLB-NY stock 3,965 N/A N/A N/A Loans, net 725,404 — — 704,273 Interest rate swap 134 — 134 — Financial liabilities: Deposits 782,091 578,460 201,846 — FHLB-NY advances 65,700 — 65,477 — Subordinated Debentures and Subordinated Notes 23,382 — — 23,441 Interest rate swap 246 — 246 — |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 Six Months Ended June 30, June 30, 2019 2018 2019 2018 (Dollars in thousands) Net income $ 1,453 $ 2,301 $ 3,100 $ 4,109 Weighted average common shares outstanding - basic 8,713,110 8,675,868 8,700,609 8,667,235 Effect of dilutive securities - stock options N/A N/A N/A N/A Weighted average common shares outstanding - diluted 8,713,110 8,675,868 8,700,609 8,667,235 Basic earnings per common share $ 0.17 $ 0.27 $ 0.36 $ 0.47 Diluted earnings per common share $ 0.17 $ 0.27 $ 0.36 $ 0.47 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Components of Comprehensive Income | The components of other comprehensive income, both gross and net of tax, are presented for the periods below: Three Months Ended June 30, 2019 2018 Gross Tax Net Gross Tax Net (In thousands) Other comprehensive income (loss): Change in unrealized holding gains (losses) on securities available-for-sale $ 1,277 $ (366 ) $ 911 $ (488 ) $ 129 $ (359 ) Reclassification adjustment for gains in net income (1 ) — (1 ) — — — Accretion of loss on securities reclassified to held-to-maturity 4 (1 ) 3 9 (5 ) 4 Change in fair value of interest rate swap (556 ) 161 (395 ) 74 (21 ) 53 Reclassification adjustment for interest rate swap interest expense in net income 7 (2 ) 5 3 (1 ) 2 Total other comprehensive income (loss) $ 731 $ (208 ) $ 523 $ (402 ) $ 102 $ (300 ) Six Months Ended June 30, 2019 2018 Gross Tax Net Gross Tax Net (In thousands) Other comprehensive income (loss): Change in unrealized holding gains (losses) on securities available-for-sale $ 2,620 $ (747 ) $ 1,873 $ (1,832 ) $ 480 $ (1,352 ) Reclassification adjustment for gains in net income (3 ) 1 (2 ) (6 ) 2 (4 ) Accretion of loss on securities reclassified to held-to-maturity 7 (2 ) 5 18 (5 ) 13 Change in fair value of interest rate swap (865 ) 251 (614 ) 294 (83 ) 211 Reclassification adjustment for interest rate swap interest expense in net income 10 (3 ) 7 15 (4 ) 11 Total other comprehensive income (loss) $ 1,769 $ (500 ) $ 1,269 $ (1,511 ) $ 390 $ (1,121 ) |
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 six months ended June 30, 2019 and 2018 . Three Months Ended June 30, 2019 Components of Accumulated Total Unrealized Gains / (Losses) on Loss on Securities Unrealized Accumulated (In thousands) Balance at March 31, 2019 $ (860 ) $ (36 ) $ (294 ) $ (1,190 ) Other comprehensive income (loss) before reclassifications 911 3 (395 ) 519 Amounts reclassified from other comprehensive income (loss) (1 ) — 5 4 Other comprehensive income (loss) 910 3 (390 ) 523 Balance at June 30, 2019 $ 50 $ (33 ) $ (684 ) $ (667 ) Six Months Ended June 30, 2019 Components of Accumulated Total Unrealized Gains / (Losses) on Loss on Securities Unrealized Accumulated (In thousands) Balance at December 31, 2018 $ (1,821 ) $ (38 ) $ (77 ) $ (1,936 ) Other comprehensive income (loss) before reclassifications 1,873 5 (614 ) 1,264 Amounts reclassified from other comprehensive income (loss) (2 ) — 7 5 Other comprehensive income (loss) 1,871 5 (607 ) 1,269 Balance at June 30, 2019 $ 50 $ (33 ) $ (684 ) $ (667 ) Three Months Ended June 30, 2018 Components of Accumulated Total Unrealized Gains / (Losses) on Loss on Securities Unrealized Accumulated (In thousands) Balance at March 31, 2018 $ (2,137 ) $ (51 ) $ 146 $ (2,042 ) Other comprehensive income (loss) before reclassifications (359 ) 4 53 (302 ) Amounts reclassified from other comprehensive income (loss) — — 2 2 Other comprehensive income (loss) (359 ) 4 55 (300 ) Balance at June 30, 2018 $ (2,496 ) $ (47 ) $ 201 $ (2,342 ) Six Months Ended June 30, 2018 Components of Accumulated Total Unrealized Gains / (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 (1,352 ) 13 211 (1,128 ) Amounts reclassified from other comprehensive income (loss) (4 ) — 11 7 Other comprehensive income (loss) (1,356 ) 13 222 (1,121 ) Reclassification due to the adoption of ASU No. 2016-01 163 — — 163 Balance at June 30, 2018 $ (2,496 ) $ (47 ) $ 201 $ (2,342 ) |
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 income on a gross and net of tax basis for the six months ended June 30, 2019 and 2018 . Three Months Ended Income Components of Accumulated Other June 30, Statement Comprehensive Income (Loss) 2019 2018 Line Item (In thousands) Unrealized gains on securities available-for-sale, before tax $ 1 $ — Gains on securities transactions, net Tax effect — — Total, net of tax 1 — Unrealized losses on derivatives before tax (7 ) (3 ) Interest expense on derivatives Tax effect 2 1 Total, net of tax (5 ) (2 ) Total reclassifications, net of tax $ (4 ) $ (2 ) Six Months Ended Income Components of Accumulated Other June 30, Statement Comprehensive Income (Loss) 2019 2018 Line Item (In thousands) Unrealized gains on securities available-for-sale, before tax $ 3 $ 6 Gains on securities transactions, net Tax effect (1 ) (2 ) Total, net of tax 2 4 Unrealized losses on derivatives before tax (10 ) (15 ) Interest expense on derivatives Tax effect 3 4 Total, net of tax (7 ) (11 ) Total reclassifications, net of tax $ (5 ) $ (7 ) |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Schedule of Maturity of Lease Liabilities | The following table presents a maturity analysis of the operating lease liability at June 30, 2019 , in thousands: Maturities of Lease Liabilities (In thousands) Six months ended December 31, 2019 $ 355 Year ended December 31, 2020 646 Year ended December 31, 2021 489 Year ended December 31, 2022 474 Thereafter 1,079 Lease Liability June 30, 2019 $ 3,043 |
Schedule of Future Minimum Rental Payments | The following table presents future minimum rental payments as of June 30, 2019 : Expires June 30, Minimum Rent (In thousands) 2020 $ 772 2021 578 2022 529 2023 443 2024 359 Thereafter 502 $ 3,183 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Merger, pro forma assets | $ 964,264 | $ 955,630 | |
Federal Home Loan Bank of New York advances | 67,400 | 65,700 | |
Merger, pro forma deposits | 781,945 | $ 782,091 | |
Lease liability | 3,043 | ||
Right of use asset | 2,917 | ||
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Lease liability | $ 3,400 | ||
Right of use asset | $ 3,300 | ||
Pro Forma | Columbia Financial, Inc. | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Merger, pro forma assets | 7,900,000 | ||
Federal Home Loan Bank of New York advances | 5,800,000 | ||
Merger, pro forma deposits | $ 5,500,000 | ||
Common stock, distribution to shareholders (in dollars per share) | $ 15.75 |
Securities - Available-for-Sa_3
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 | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, amortized cost basis | $ 96,070 | $ 111,381 |
Available-for-sale securities, gross unrealized gains | 450 | 137 |
Available-for-sale securities, gross unrealized losses | (403) | (2,707) |
Available-for-sale securities, fair value | 96,117 | 108,811 |
U.S. government-sponsored agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, amortized cost basis | 17,475 | 26,232 |
Available-for-sale securities, gross unrealized gains | 13 | 15 |
Available-for-sale securities, gross unrealized losses | (46) | (498) |
Available-for-sale securities, fair value | 17,442 | 25,749 |
Obligations of state and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, amortized cost basis | 3,198 | 3,205 |
Available-for-sale securities, gross unrealized gains | 17 | 0 |
Available-for-sale securities, gross unrealized losses | (1) | (84) |
Available-for-sale securities, fair value | 3,214 | 3,121 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, amortized cost basis | 58,293 | 63,659 |
Available-for-sale securities, gross unrealized gains | 316 | 68 |
Available-for-sale securities, gross unrealized losses | (246) | (1,564) |
Available-for-sale securities, fair value | 58,363 | 62,163 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, amortized cost basis | 3,770 | 4,916 |
Available-for-sale securities, gross unrealized gains | 1 | 6 |
Available-for-sale securities, gross unrealized losses | (27) | 0 |
Available-for-sale securities, fair value | 3,744 | 4,922 |
Corporate debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, amortized cost basis | 13,334 | 13,369 |
Available-for-sale securities, gross unrealized gains | 103 | 48 |
Available-for-sale securities, gross unrealized losses | (83) | (561) |
Available-for-sale securities, fair value | $ 13,354 | $ 12,856 |
Securities - Available-for-Sa_4
Securities - Available-for-Sale and Held to Maturity (Narrative) (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($)loansecurity | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)loansecurity | Jun. 30, 2018USD ($) | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from sales and calls on securities available-for-sale | $ | $ 4,000,000 | $ 0 | $ 8,170,000 | $ 1,006,000 |
Gross gains realized from sales or calls of available-for-sale securities | $ | 1,000 | 0 | 3,000 | 6,000 |
Gross losses realized from sales or calls of available for sale securities | $ | 0 | 0 | 0 | 0 |
Proceeds from calls on securities held-to-maturity | $ | 500,000 | 0 | 1,605,000 | 280,000 |
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 | $ 0 | $ 0 |
U.S. government-sponsored agencies | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Debt securities, available-for-sale, number of positions | 9 | 9 | ||
Held-to-maturity securities, number of positions | 11 | 11 | ||
Obligations of state and political subdivisions | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Debt securities, available-for-sale, number of positions | 1 | 1 | ||
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 | 44 | 44 | ||
Held-to-maturity securities, number of positions | loan | 17 | 17 | ||
Asset-backed securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Debt securities, available-for-sale, number of positions | 1 | 1 | ||
Corporate debt securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Debt securities, available-for-sale, number of positions | 8 | 8 | ||
U.S. Treasury | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Held-to-maturity securities, number of positions | 1 | 1 |
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 | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Held-to-maturity [Abstract] | ||
Amortized Cost | $ 62,264 | $ 62,308 |
Gross Unrealized Gains | 307 | 81 |
Gross Unrealized Losses | (125) | (1,392) |
Fair value | 62,446 | 60,997 |
U.S. Treasury | ||
Debt Securities, Held-to-maturity [Abstract] | ||
Amortized Cost | 1,000 | 999 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (5) | (14) |
Fair value | 995 | 985 |
U.S. government-sponsored agencies | ||
Debt Securities, Held-to-maturity [Abstract] | ||
Amortized Cost | 36,563 | 35,565 |
Gross Unrealized Gains | 50 | 20 |
Gross Unrealized Losses | (84) | (976) |
Fair value | 36,529 | 34,609 |
Obligations of state and political subdivisions | ||
Debt Securities, Held-to-maturity [Abstract] | ||
Amortized Cost | 1,914 | 2,358 |
Gross Unrealized Gains | 11 | 14 |
Gross Unrealized Losses | (11) | (27) |
Fair value | 1,914 | 2,345 |
Mortgage-backed securities | ||
Debt Securities, Held-to-maturity [Abstract] | ||
Amortized Cost | 22,787 | 23,386 |
Gross Unrealized Gains | 246 | 47 |
Gross Unrealized Losses | (25) | (375) |
Fair value | $ 23,008 | $ 23,058 |
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 | Jun. 30, 2019 | Dec. 31, 2018 |
Available-for-sale, Amortized Cost | ||
Within one year | $ 2,134 | |
After one year, but within five years | 13,870 | |
After five years, but within ten years | 14,008 | |
After ten years | 3,995 | |
Amortized Cost | 96,070 | $ 111,381 |
Available-for-sale, Fair Value | ||
Within one year | 2,129 | |
After one year, but within five years | 13,840 | |
After five years, but within ten years | 14,077 | |
After ten years | 3,964 | |
Fair Value | 96,117 | 108,811 |
Held to maturity, Amortized Cost | ||
Within one year | 1,670 | |
After one year, but within five years | 20,329 | |
After five years, but within ten years | 16,994 | |
After ten years | 484 | |
Securities held-to-maturity | 62,264 | 62,308 |
Held to maturity, Fair Value | ||
Within one year | 1,670 | |
After one year, but within five years | 20,327 | |
After five years, but within ten years | 16,968 | |
After ten years | 473 | |
Fair value | 62,446 | 60,997 |
Mortgage-backed securities | ||
Available-for-sale, Amortized Cost | ||
Amortized Cost | 58,293 | 63,659 |
Available-for-sale, Fair Value | ||
Fair Value | 58,363 | 62,163 |
Held to maturity, Amortized Cost | ||
Securities held-to-maturity | 22,787 | |
Held to maturity, Fair Value | ||
Fair value | 23,008 | 23,058 |
Asset-backed securities | ||
Available-for-sale, Amortized Cost | ||
Amortized Cost | 3,770 | 4,916 |
Available-for-sale, Fair Value | ||
Fair Value | $ 3,744 | $ 4,922 |
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 | Jun. 30, 2019 | Dec. 31, 2018 |
Available for sale, temporarily impaired securities | ||
Less than 12 Months, Fair Value | $ 2,027 | $ 7,069 |
Less than 12 Months, Unrealized Losses | (4) | (19) |
12 Months or Longer, Fair Value | 40,427 | 76,840 |
12 Months or Longer, Unrealized Losses | (399) | (2,688) |
Fair Value | 42,454 | 83,909 |
Unrealized Losses | (403) | (2,707) |
Held to maturity securities,temporarily impaired securities | ||
Less than 12 Months, Fair Value | 1,993 | 8,381 |
Less than 12 Months, Unrealized Losses | (7) | (76) |
12 Months or Longer, Fair Value | 19,402 | 37,122 |
12 Months or Longer, Unrealized Losses | (118) | (1,316) |
Fair Value | 21,395 | 45,503 |
Unrealized Losses | (125) | (1,392) |
U.S. Treasury | ||
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 | 995 | 985 |
12 Months or Longer, Unrealized Losses | (5) | (14) |
Fair Value | 995 | 985 |
Unrealized Losses | (5) | (14) |
U.S. government-sponsored agencies | ||
Available for sale, temporarily impaired securities | ||
Less than 12 Months, Fair Value | 998 | 0 |
Less than 12 Months, Unrealized Losses | (2) | 0 |
12 Months or Longer, Fair Value | 6,798 | 17,432 |
12 Months or Longer, Unrealized Losses | (44) | (498) |
Fair Value | 7,796 | 17,432 |
Unrealized Losses | (46) | (498) |
Held to maturity securities,temporarily impaired securities | ||
Less than 12 Months, Fair Value | 1,993 | 2,496 |
Less than 12 Months, Unrealized Losses | (7) | (9) |
12 Months or Longer, Fair Value | 11,811 | 24,595 |
12 Months or Longer, Unrealized Losses | (77) | (967) |
Fair Value | 13,804 | 27,091 |
Unrealized Losses | (84) | (976) |
Obligations of state and political subdivisions | ||
Available for sale, 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 | 310 | 3,121 |
12 Months or Longer, Unrealized Losses | (1) | (84) |
Fair Value | 310 | 3,121 |
Unrealized Losses | (1) | (84) |
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 | 473 | 461 |
12 Months or Longer, Unrealized Losses | (11) | (27) |
Fair Value | 473 | 461 |
Unrealized Losses | (11) | (27) |
Mortgage-backed securities | ||
Available for sale, temporarily impaired securities | ||
Less than 12 Months, Fair Value | 530 | 4,177 |
Less than 12 Months, Unrealized Losses | (1) | (19) |
12 Months or Longer, Fair Value | 22,966 | 47,479 |
12 Months or Longer, Unrealized Losses | (245) | (1,545) |
Fair Value | 23,496 | 51,656 |
Unrealized Losses | (246) | (1,564) |
Held to maturity securities,temporarily impaired securities | ||
Less than 12 Months, Fair Value | 0 | 5,885 |
Less than 12 Months, Unrealized Losses | 0 | (67) |
12 Months or Longer, Fair Value | 6,123 | 11,081 |
12 Months or Longer, Unrealized Losses | (25) | (308) |
Fair Value | 6,123 | 16,966 |
Unrealized Losses | (25) | (375) |
Asset-backed securities | ||
Available for sale, temporarily impaired securities | ||
Less than 12 Months, Fair Value | 0 | 2,892 |
Less than 12 Months, Unrealized Losses | 0 | 0 |
12 Months or Longer, Fair Value | 2,650 | 0 |
12 Months or Longer, Unrealized Losses | (27) | 0 |
Fair Value | 2,650 | 2,892 |
Unrealized Losses | (27) | 0 |
Corporate debt | ||
Available for sale, temporarily impaired securities | ||
Less than 12 Months, Fair Value | 499 | 0 |
Less than 12 Months, Unrealized Losses | (1) | 0 |
12 Months or Longer, Fair Value | 7,703 | 8,808 |
12 Months or Longer, Unrealized Losses | (82) | (561) |
Fair Value | 8,202 | 8,808 |
Unrealized Losses | $ (83) | $ (561) |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses (Loan Portfolio Schedule) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Total gross loans | $ 756,994 | $ 733,787 |
Less: Deferred loan costs, net | 535 | 457 |
Allowance for loan losses | 8,404 | 7,926 |
Allowance net of deferred loan fees | 8,939 | 8,383 |
Loans, net | 748,055 | 725,404 |
Commercial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total gross loans | 106,892 | 93,755 |
Allowance for loan losses | 3,159 | 2,703 |
Commercial | Secured by real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total gross loans | 30,139 | 28,790 |
Commercial | Other | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total gross loans | 76,753 | 64,965 |
Commercial real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total gross loans | 514,289 | 504,522 |
Allowance for loan losses | 4,947 | 4,947 |
Commercial construction | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total gross loans | 11,419 | 9,787 |
Allowance for loan losses | 177 | 131 |
Residential real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total gross loans | 78,798 | 82,491 |
Allowance for loan losses | 49 | 65 |
Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total gross loans | 39,082 | 36,575 |
Allowance for loan losses | 64 | 68 |
Consumer | Secured by real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total gross loans | 38,421 | 36,120 |
Consumer | Other | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total gross loans | 661 | 455 |
Government Guaranteed | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total gross loans | 6,419 | 6,559 |
Allowance for loan losses | 0 | 0 |
Other | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total gross loans | 95 | 98 |
Allowance for loan losses | $ 1 | $ 1 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses (Narrative) (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($)loan | Jun. 30, 2019USD ($)loan | Dec. 31, 2018USD ($) | |
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total gross loans | $ 756,994,000 | $ 756,994,000 | $ 733,787,000 | |
Unpaid principal balance of loans serviced for others | 15,800,000 | 15,800,000 | 14,300,000 | |
Loans past due 90 days and still accruing | 0 | 0 | 0 | |
Interest Income recognized on a cash basis | 0 | $ 0 | ||
Total value of modified loans in troubled debt restructurings | 3,900,000 | 3,900,000 | 6,300,000 | |
Trouble debt restructuring classified as performing | $ 3,800,000 | 5,700,000 | ||
Specific reserve related to TDR | 630,000 | 630,000 | 649,000 | |
Committed funds for construction loan, classified as troubled debt restructuring | 0 | $ 0 | 0 | |
Number of loans | loan | 0 | 0 | ||
Commercial portfolio segment | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total gross loans | 106,892,000 | $ 106,892,000 | 93,755,000 | |
Commercial real estate | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total gross loans | 514,289,000 | 514,289,000 | $ 504,522,000 | |
Small Business Administration Loans | Commercial portfolio segment | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total gross loans | 946,000 | 946,000 | ||
Small Business Administration Loans | Commercial real estate | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total gross loans | $ 4,245,000 | $ 4,245,000 |
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 | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Activity in the allowance for loan losses | ||||
Balance, beginning of period | $ 8,018 | $ 8,445 | $ 7,926 | $ 8,762 |
Provision charged to operations | 330 | (780) | 395 | (1,115) |
Loans charged off | 0 | 0 | 0 | (30) |
Recoveries of loans charged off | 56 | 688 | 83 | 736 |
Balance, end of period | 8,404 | 8,353 | 8,404 | 8,353 |
Commercial | ||||
Activity in the allowance for loan losses | ||||
Balance, beginning of period | 2,966 | 2,865 | 2,703 | 3,058 |
Provision charged to operations | 153 | (9) | 404 | (198) |
Loans charged off | 0 | 0 | 0 | (29) |
Recoveries of loans charged off | 40 | 75 | 52 | 100 |
Balance, end of period | 3,159 | 2,931 | 3,159 | 2,931 |
Commercial real estate | ||||
Activity in the allowance for loan losses | ||||
Balance, beginning of period | 4,753 | 5,349 | 4,947 | 5,531 |
Provision charged to operations | 178 | (757) | (31) | (961) |
Loans charged off | 0 | 0 | 0 | 0 |
Recoveries of loans charged off | 16 | 612 | 31 | 634 |
Balance, end of period | 4,947 | 5,204 | 4,947 | 5,204 |
Commercial construction | ||||
Activity in the allowance for loan losses | ||||
Balance, beginning of period | 150 | 81 | 131 | 33 |
Provision charged to operations | 27 | (10) | 46 | 38 |
Loans charged off | 0 | 0 | 0 | 0 |
Recoveries of loans charged off | 0 | 0 | 0 | 0 |
Balance, end of period | 177 | 71 | 177 | 71 |
Residential real estate | ||||
Activity in the allowance for loan losses | ||||
Balance, beginning of period | 76 | 72 | 65 | 68 |
Provision charged to operations | (27) | (3) | (16) | 1 |
Loans charged off | 0 | 0 | 0 | 0 |
Recoveries of loans charged off | 0 | 0 | 0 | 0 |
Balance, end of period | 49 | 69 | 49 | 69 |
Consumer | ||||
Activity in the allowance for loan losses | ||||
Balance, beginning of period | 61 | 67 | 68 | 64 |
Provision charged to operations | 3 | 2 | (4) | 4 |
Loans charged off | 0 | 0 | 0 | 0 |
Recoveries of loans charged off | 0 | 0 | 0 | 1 |
Balance, end of period | 64 | 69 | 64 | 69 |
Other | ||||
Activity in the allowance for loan losses | ||||
Balance, beginning of period | 1 | 0 | 1 | 1 |
Provision charged to operations | 0 | 0 | 0 | 0 |
Loans charged off | 0 | 0 | 0 | (1) |
Recoveries of loans charged off | 0 | 1 | 0 | 1 |
Balance, end of period | 1 | 1 | 1 | 1 |
Unallocated | ||||
Activity in the allowance for loan losses | ||||
Balance, beginning of period | 11 | 11 | 11 | 7 |
Provision charged to operations | (4) | (3) | (4) | 1 |
Loans charged off | 0 | 0 | 0 | 0 |
Recoveries of loans charged off | 0 | 0 | 0 | 0 |
Balance, end of period | $ 7 | $ 8 | $ 7 | $ 8 |
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 | Jun. 30, 2019 | Dec. 31, 2018 |
Allowance for loan losses, ending allowance balance attributable to loans | ||
Individually evaluated for impairment | $ 697 | $ 649 |
Collectively evaluated for impairment | 7,707 | 7,277 |
Total ending allowance balance | 8,404 | 7,926 |
Loans | ||
Loans individually evaluated for impairment | 5,712 | 7,288 |
Loans collectively evaluated for impairment | 751,282 | 726,499 |
Total loans | 756,994 | 733,787 |
Commercial | ||
Allowance for loan losses, ending allowance balance attributable to loans | ||
Individually evaluated for impairment | 95 | 88 |
Collectively evaluated for impairment | 3,064 | 2,615 |
Total ending allowance balance | 3,159 | 2,703 |
Loans | ||
Loans individually evaluated for impairment | 593 | 633 |
Loans collectively evaluated for impairment | 106,299 | 93,122 |
Total loans | 106,892 | 93,755 |
Commercial real estate | ||
Allowance for loan losses, ending allowance balance attributable to loans | ||
Individually evaluated for impairment | 602 | 561 |
Collectively evaluated for impairment | 4,345 | 4,386 |
Total ending allowance balance | 4,947 | 4,947 |
Loans | ||
Loans individually evaluated for impairment | 3,890 | 6,079 |
Loans collectively evaluated for impairment | 510,399 | 498,443 |
Total loans | 514,289 | 504,522 |
Commercial construction | ||
Allowance for loan losses, ending allowance balance attributable to loans | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 177 | 131 |
Total ending allowance balance | 177 | 131 |
Loans | ||
Loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 11,419 | 9,787 |
Total loans | 11,419 | 9,787 |
Residential real estate | ||
Allowance for loan losses, ending allowance balance attributable to loans | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 49 | 65 |
Total ending allowance balance | 49 | 65 |
Loans | ||
Loans individually evaluated for impairment | 1,229 | 576 |
Loans collectively evaluated for impairment | 77,569 | 81,915 |
Total loans | 78,798 | 82,491 |
Consumer | ||
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 | 0 | 0 |
Loans collectively evaluated for impairment | 39,082 | 36,575 |
Total loans | 39,082 | 36,575 |
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 | 6,419 | 6,559 |
Total loans | 6,419 | 6,559 |
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 | 95 | 98 |
Total loans | 95 | 98 |
Unallocated | ||
Allowance for loan losses, ending allowance balance attributable to loans | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 7 | 11 |
Total ending allowance balance | 7 | 11 |
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 | Jun. 30, 2019 | Dec. 31, 2018 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Total nonaccrual loans | $ 1,906 | $ 1,544 |
Commercial portfolio segment | Secured by real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total nonaccrual loans | 369 | 394 |
Commercial real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total nonaccrual loans | 308 | 574 |
Residential real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total nonaccrual loans | $ 1,229 | $ 576 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses (Schedule of Recorded Investments in Impaired Loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
With no related allowance recorded: | |||||
Unpaid Principal Balance | $ 2,606 | $ 2,606 | $ 4,363 | ||
Recorded Investment | 2,289 | 2,289 | 3,993 | ||
With an allowance recorded: | |||||
Unpaid Principal Balance | 3,423 | 3,423 | 3,295 | ||
Recorded Investment | 3,423 | 3,423 | 3,295 | ||
Allowance for Loan Losses Allocated | 697 | 697 | 649 | ||
Total impaired loans | |||||
Total Unpaid Principal Balance | 6,029 | 6,029 | 7,658 | ||
Total Recorded Investment | 5,712 | 5,712 | 7,288 | ||
Average Recorded Investment | 3,110 | $ 3,917 | 3,405 | $ 3,902 | |
Interest Income Recognized | 25 | 32 | 58 | 63 | |
Average Recorded Investment | 3,430 | 3,275 | 3,384 | 3,273 | |
Interest Income Recognized | 43 | 44 | 86 | 85 | |
Impaired Financing Receivable, Average Recorded Investment | 6,540 | 7,192 | 6,789 | 7,175 | |
Impaired Financing Receivable, Interest Income, Accrual Method | 68 | 76 | 144 | 148 | |
Commercial | Secured by real estate | |||||
With no related allowance recorded: | |||||
Unpaid Principal Balance | 415 | 415 | 447 | ||
Recorded Investment | 384 | 384 | 416 | ||
With an allowance recorded: | |||||
Unpaid Principal Balance | 91 | 91 | 95 | ||
Recorded Investment | 91 | 91 | 95 | ||
Allowance for Loan Losses Allocated | 91 | 91 | 83 | ||
Total impaired loans | |||||
Total Unpaid Principal Balance | 506 | 506 | 542 | ||
Total Recorded Investment | 475 | 475 | 511 | ||
Average Recorded Investment | 399 | 525 | 405 | 480 | |
Interest Income Recognized | 1 | 4 | 1 | 8 | |
Average Recorded Investment | 92 | 50 | 93 | 44 | |
Interest Income Recognized | 1 | 1 | 2 | 1 | |
Commercial | Other | |||||
With an allowance recorded: | |||||
Unpaid Principal Balance | 118 | 118 | 122 | ||
Recorded Investment | 118 | 118 | 122 | ||
Allowance for Loan Losses Allocated | 4 | 4 | 5 | ||
Total impaired loans | |||||
Total Unpaid Principal Balance | 118 | 118 | 122 | ||
Total Recorded Investment | 118 | 118 | 122 | ||
Average Recorded Investment | 119 | 126 | 120 | 126 | |
Interest Income Recognized | 2 | 2 | 4 | 4 | |
Commercial real estate | |||||
With no related allowance recorded: | |||||
Unpaid Principal Balance | 936 | 936 | 3,329 | ||
Recorded Investment | 676 | 676 | 3,001 | ||
With an allowance recorded: | |||||
Unpaid Principal Balance | 3,214 | 3,214 | 3,078 | ||
Recorded Investment | 3,214 | 3,214 | 3,078 | ||
Allowance for Loan Losses Allocated | 602 | 602 | 561 | ||
Total impaired loans | |||||
Total Unpaid Principal Balance | 4,150 | 4,150 | 6,407 | ||
Total Recorded Investment | 3,890 | 3,890 | 6,079 | ||
Average Recorded Investment | 1,817 | 3,076 | 2,212 | 3,091 | |
Interest Income Recognized | 24 | 28 | 57 | 55 | |
Average Recorded Investment | 3,219 | 3,099 | 3,171 | 3,103 | |
Interest Income Recognized | 40 | 41 | 80 | 80 | |
Residential real estate | |||||
With no related allowance recorded: | |||||
Unpaid Principal Balance | 1,255 | 1,255 | 587 | ||
Recorded Investment | 1,229 | 1,229 | 576 | ||
With an allowance recorded: | |||||
Allowance for Loan Losses Allocated | 0 | 0 | 0 | ||
Total impaired loans | |||||
Total Unpaid Principal Balance | 1,255 | 1,255 | 587 | ||
Total Recorded Investment | 1,229 | 1,229 | $ 576 | ||
Average Recorded Investment | 894 | 285 | 788 | 289 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | |
Consumer Portfolio Segment [Member] | Secured by real estate | |||||
Total impaired loans | |||||
Average Recorded Investment | 0 | 31 | 0 | 42 | |
Interest Income Recognized | $ 0 | $ 0 | $ 0 | $ 0 |
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 | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
With no related allowance recorded: | ||||
Average Recorded Investment | $ 3,110 | $ 3,917 | $ 3,405 | $ 3,902 |
Interest Income Recognized | 25 | 32 | 58 | 63 |
With an allowance recorded: | ||||
Average Recorded Investment | 3,430 | 3,275 | 3,384 | 3,273 |
Interest Income Recognized | 43 | 44 | 86 | 85 |
Total Average Recorded Investment | 6,540 | 7,192 | 6,789 | 7,175 |
Total Interest Income Recognized | 68 | 76 | 144 | 148 |
Commercial portfolio segment | Secured by real estate | ||||
With no related allowance recorded: | ||||
Average Recorded Investment | 399 | 525 | 405 | 480 |
Interest Income Recognized | 1 | 4 | 1 | 8 |
With an allowance recorded: | ||||
Average Recorded Investment | 92 | 50 | 93 | 44 |
Interest Income Recognized | 1 | 1 | 2 | 1 |
Commercial portfolio segment | Other | ||||
With an allowance recorded: | ||||
Average Recorded Investment | 119 | 126 | 120 | 126 |
Interest Income Recognized | 2 | 2 | 4 | 4 |
Commercial real estate | ||||
With no related allowance recorded: | ||||
Average Recorded Investment | 1,817 | 3,076 | 2,212 | 3,091 |
Interest Income Recognized | 24 | 28 | 57 | 55 |
With an allowance recorded: | ||||
Average Recorded Investment | 3,219 | 3,099 | 3,171 | 3,103 |
Interest Income Recognized | 40 | 41 | 80 | 80 |
Residential real estate | ||||
With no related allowance recorded: | ||||
Average Recorded Investment | 894 | 285 | 788 | 289 |
Interest Income Recognized | 0 | 0 | 0 | 0 |
Consumer | Secured by real estate | ||||
With no related allowance recorded: | ||||
Average Recorded Investment | 0 | 31 | 0 | 42 |
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 | Jun. 30, 2019 | Dec. 31, 2018 |
Aging analysis of past due loans | ||
Total Past Due | $ 1,601 | $ 3,527 |
Current | 755,393 | 730,260 |
Total loans | 756,994 | 733,787 |
30-59 Days Past Due | ||
Aging analysis of past due loans | ||
Total Past Due | 0 | 2,274 |
60-89 Days Past Due | ||
Aging analysis of past due loans | ||
Total Past Due | 328 | 42 |
Greater than 90 Days Past Due | ||
Aging analysis of past due loans | ||
Total Past Due | 1,273 | 1,211 |
Commercial | ||
Aging analysis of past due loans | ||
Total loans | 106,892 | 93,755 |
Commercial | Secured by real estate | ||
Aging analysis of past due loans | ||
Total Past Due | 369 | 394 |
Current | 29,770 | 28,396 |
Total loans | 30,139 | 28,790 |
Commercial | Secured by real estate | 30-59 Days Past Due | ||
Aging analysis of past due loans | ||
Total Past Due | 0 | 0 |
Commercial | Secured by real estate | 60-89 Days Past Due | ||
Aging analysis of past due loans | ||
Total Past Due | 0 | 0 |
Commercial | Secured by real estate | Greater than 90 Days Past Due | ||
Aging analysis of past due loans | ||
Total Past Due | 369 | 394 |
Commercial | Other | ||
Aging analysis of past due loans | ||
Total Past Due | 0 | 6 |
Current | 76,753 | 64,959 |
Total loans | 76,753 | 64,965 |
Commercial | Other | 30-59 Days Past Due | ||
Aging analysis of past due loans | ||
Total Past Due | 0 | 6 |
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 | 256 | 2,664 |
Current | 514,033 | 501,858 |
Total loans | 514,289 | 504,522 |
Commercial real estate | 30-59 Days Past Due | ||
Aging analysis of past due loans | ||
Total Past Due | 0 | 2,155 |
Commercial real estate | 60-89 Days Past Due | ||
Aging analysis of past due loans | ||
Total Past Due | 0 | 0 |
Commercial real estate | Greater than 90 Days Past Due | ||
Aging analysis of past due loans | ||
Total Past Due | 256 | 509 |
Commercial construction | ||
Aging analysis of past due loans | ||
Total Past Due | 0 | 0 |
Current | 11,419 | 9,787 |
Total loans | 11,419 | 9,787 |
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 | 975 | 462 |
Current | 77,823 | 82,029 |
Total loans | 78,798 | 82,491 |
Residential real estate | 30-59 Days Past Due | ||
Aging analysis of past due loans | ||
Total Past Due | 0 | 112 |
Residential real estate | 60-89 Days Past Due | ||
Aging analysis of past due loans | ||
Total Past Due | 327 | 42 |
Residential real estate | Greater than 90 Days Past Due | ||
Aging analysis of past due loans | ||
Total Past Due | 648 | 308 |
Consumer | ||
Aging analysis of past due loans | ||
Total loans | 39,082 | 36,575 |
Consumer | Secured by real estate | ||
Aging analysis of past due loans | ||
Total Past Due | 0 | 0 |
Current | 38,421 | 36,120 |
Total loans | 38,421 | 36,120 |
Consumer | Secured by real estate | 30-59 Days Past Due | ||
Aging analysis of past due loans | ||
Total Past Due | 0 | 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 | 0 |
Consumer | Other | ||
Aging analysis of past due loans | ||
Total Past Due | 1 | 1 |
Current | 660 | 454 |
Total loans | 661 | 455 |
Consumer | Other | 30-59 Days Past Due | ||
Aging analysis of past due loans | ||
Total Past Due | 0 | 1 |
Consumer | Other | 60-89 Days Past Due | ||
Aging analysis of past due loans | ||
Total Past Due | 1 | 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 | 6,419 | 6,559 |
Total loans | 6,419 | 6,559 |
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 | 95 | 98 |
Total loans | 95 | 98 |
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 Loans by Credit Quality Indicators) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | $ 756,994 | $ 733,787 |
Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 106,892 | 93,755 |
Commercial | Secured by real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 30,139 | 28,790 |
Commercial | Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 76,753 | 64,965 |
Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 514,289 | 504,522 |
Commercial construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 11,419 | 9,787 |
Government Guaranteed | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 6,419 | 6,559 |
Receivables Acquired with Deteriorated Credit Quality | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 639,019 | 614,623 |
Receivables Acquired with Deteriorated Credit Quality | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 629,533 | 597,324 |
Receivables Acquired with Deteriorated Credit Quality | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 2,494 | 8,501 |
Receivables Acquired with Deteriorated Credit Quality | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 6,992 | 8,798 |
Receivables Acquired with Deteriorated Credit Quality | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality | Commercial | Secured by real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 30,139 | 28,790 |
Receivables Acquired with Deteriorated Credit Quality | Commercial | Secured by real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 28,764 | 26,879 |
Receivables Acquired with Deteriorated Credit Quality | Commercial | Secured by real estate | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 272 | 1,234 |
Receivables Acquired with Deteriorated Credit Quality | Commercial | Secured by real estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1,103 | 677 |
Receivables Acquired with Deteriorated Credit Quality | Commercial | Secured by real estate | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality | Commercial | Secured by real estate | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality | Commercial | Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 76,753 | 64,965 |
Receivables Acquired with Deteriorated Credit Quality | Commercial | Other | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 75,407 | 63,438 |
Receivables Acquired with Deteriorated Credit Quality | Commercial | Other | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 119 | 181 |
Receivables Acquired with Deteriorated Credit Quality | Commercial | Other | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1,227 | 1,346 |
Receivables Acquired with Deteriorated Credit Quality | Commercial | Other | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality | Commercial | Other | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality | Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 514,289 | 504,522 |
Receivables Acquired with Deteriorated Credit Quality | Commercial real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 507,524 | 490,661 |
Receivables Acquired with Deteriorated Credit Quality | Commercial real estate | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 2,103 | 7,086 |
Receivables Acquired with Deteriorated Credit Quality | Commercial real estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 4,662 | 6,775 |
Receivables Acquired with Deteriorated Credit Quality | Commercial real estate | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality | Commercial real estate | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality | Commercial construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 11,419 | 9,787 |
Receivables Acquired with Deteriorated Credit Quality | Commercial construction | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 11,419 | 9,787 |
Receivables Acquired with Deteriorated Credit Quality | Commercial construction | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality | Commercial construction | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality | Commercial construction | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality | Commercial construction | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality | Government Guaranteed | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 6,419 | 6,559 |
Receivables Acquired with Deteriorated Credit Quality | Government Guaranteed | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 6,419 | 6,559 |
Receivables Acquired with Deteriorated Credit Quality | Government Guaranteed | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality | Government Guaranteed | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality | Government Guaranteed | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality | Government Guaranteed | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | $ 0 | $ 0 |
Loans and Allowance for Loan_12
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 | Jun. 30, 2019 | Dec. 31, 2018 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | $ 756,994 | $ 733,787 |
Residential real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Current | 77,569 | 81,761 |
30 Days Past Due or Nonaccrual | 1,229 | 730 |
Total loans | 78,798 | 82,491 |
Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 39,082 | 36,575 |
Consumer | Secured by real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Current | 38,421 | 36,120 |
30 Days Past Due or Nonaccrual | 0 | 0 |
Total loans | 38,421 | 36,120 |
Consumer | Other | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Current | 660 | 454 |
30 Days Past Due or Nonaccrual | 1 | 1 |
Total loans | 661 | 455 |
Residential real estate and consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Current | 116,650 | 118,335 |
30 Days Past Due or Nonaccrual | 1,230 | 731 |
Total loans | $ 117,880 | $ 119,066 |
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 | Jun. 30, 2019 | Dec. 31, 2018 |
Assets: | ||
Total available-for-sale securities | $ 96,117 | $ 108,811 |
Other equity investments | 1,693 | 1,648 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Total available-for-sale securities | 0 | 0 |
Other equity investments | 1,633 | 1,588 |
Interest rate swap | 0 | 0 |
Liabilities: | ||
Interest rate swap | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Total available-for-sale securities | 96,117 | 108,811 |
Other equity investments | 60 | 60 |
Interest rate swap | 0 | 134 |
Liabilities: | ||
Interest rate swap | 967 | 246 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Total available-for-sale securities | 0 | 0 |
Other equity investments | 0 | 0 |
Interest rate swap | 0 | 0 |
Liabilities: | ||
Interest rate swap | 0 | 0 |
Carrying Value | ||
Assets: | ||
Total available-for-sale securities | 96,117 | 108,811 |
Other equity investments | 1,693 | 1,648 |
Interest rate swap | 0 | 134 |
Liabilities: | ||
Interest rate swap | 967 | 246 |
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 | 1,633 | 1,588 |
Interest rate swap | 0 | 0 |
Liabilities: | ||
Interest rate swap | 0 | 0 |
Fair value measured on a recurring basis | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
U.S. government - sponsored agencies | 17,442 | 25,749 |
Obligations of state and political subdivisions | 3,214 | 3,121 |
Mortgage-backed securities | 58,363 | 62,163 |
Asset-backed securities | 3,744 | 4,922 |
Corporate debt | 13,354 | 12,856 |
Total available-for-sale securities | 96,117 | 108,811 |
Other equity investments | 60 | 60 |
Interest rate swap | 0 | 134 |
Liabilities: | ||
Interest rate swap | 967 | 246 |
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 | 0 |
Liabilities: | ||
Interest rate swap | 0 | 0 |
Fair value measured on a recurring basis | Carrying Value | ||
Assets: | ||
U.S. government - sponsored agencies | 17,442 | 25,749 |
Obligations of state and political subdivisions | 3,214 | 3,121 |
Mortgage-backed securities | 58,363 | 62,163 |
Asset-backed securities | 3,744 | 4,922 |
Corporate debt | 13,354 | 12,856 |
Total available-for-sale securities | 96,117 | 108,811 |
Other equity investments | 1,693 | 1,648 |
Interest rate swap | 0 | 134 |
Liabilities: | ||
Interest rate swap | $ 967 | $ 246 |
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 | Jun. 30, 2019 | Dec. 31, 2018 |
Carrying Value | ||
Assets: | ||
Loans, net | $ 748,055 | $ 725,404 |
Fair value, measurements, nonrecurring | Carrying Value | ||
Assets: | ||
Loans, net | 798 | 609 |
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: | ||
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: | ||
Loans, net | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Loans, net | 737,503 | 704,273 |
Significant Unobservable Inputs (Level 3) | Fair value, measurements, nonrecurring | ||
Assets: | ||
Loans, net | 798 | 609 |
Commercial real estate | Fair value, measurements, nonrecurring | Carrying Value | ||
Assets: | ||
Loans, net | 88 | |
Commercial real estate | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair value, measurements, nonrecurring | ||
Assets: | ||
Loans, net | 0 | |
Commercial real estate | Significant Other Observable Inputs (Level 2) | Fair value, measurements, nonrecurring | ||
Assets: | ||
Loans, net | 0 | |
Commercial real estate | Significant Unobservable Inputs (Level 3) | Fair value, measurements, nonrecurring | ||
Assets: | ||
Loans, net | 88 | |
Commercial real estate | Real estate | Fair value, measurements, nonrecurring | Carrying Value | ||
Assets: | ||
Loans, net | 31 | 301 |
Commercial real estate | Real estate | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair value, measurements, nonrecurring | ||
Assets: | ||
Loans, net | 0 | 0 |
Commercial real estate | Real estate | Significant Other Observable Inputs (Level 2) | Fair value, measurements, nonrecurring | ||
Assets: | ||
Loans, net | 0 | 0 |
Commercial real estate | Real estate | Significant Unobservable Inputs (Level 3) | Fair value, measurements, nonrecurring | ||
Assets: | ||
Loans, net | 31 | 301 |
Residential real estate | Fair value, measurements, nonrecurring | Carrying Value | ||
Assets: | ||
Loans, net | 679 | 308 |
Residential real estate | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair value, measurements, nonrecurring | ||
Assets: | ||
Loans, net | 0 | 0 |
Residential real estate | Significant Other Observable Inputs (Level 2) | Fair value, measurements, nonrecurring | ||
Assets: | ||
Loans, net | 0 | 0 |
Residential real estate | Significant Unobservable Inputs (Level 3) | Fair value, measurements, nonrecurring | ||
Assets: | ||
Loans, net | $ 679 | $ 308 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments (Narrative) (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Recorded Investment | $ 3,423,000 | $ 3,295,000 |
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 | 864,000 | 692,000 |
Adjustment to allowance | $ 66,000 | $ 83,000 |
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 | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) |
Impaired loans | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | $ 798 | $ 609 |
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 | Jun. 30, 2019 | Dec. 31, 2018 |
Financial assets: | ||
Securities available-for-sale | $ 96,117 | $ 108,811 |
Securities held-to-maturity | 62,264 | 62,308 |
Other equity investments, at fair value | 1,693 | 1,648 |
FHLB-NY stock | 4,091 | 3,965 |
Financial liabilities: | ||
Subordinated Debentures and Subordinated Notes | 23,415 | 23,382 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Cash and cash equivalents | 12,610 | 16,823 |
Securities available-for-sale | 0 | 0 |
Securities held-to-maturity | 0 | 0 |
Other equity investments, at fair value | 1,633 | 1,588 |
Loans, net | 0 | 0 |
Interest rate swap | 0 | 0 |
Financial liabilities: | ||
Deposits | 589,355 | 578,460 |
FHLB-NY advances | 0 | 0 |
Subordinated Debentures and Subordinated Notes | 0 | 0 |
Interest rate swap | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Securities available-for-sale | 96,117 | 108,811 |
Securities held-to-maturity | 62,446 | 60,997 |
Other equity investments, at fair value | 60 | 60 |
Loans, net | 0 | 0 |
Interest rate swap | 0 | 134 |
Financial liabilities: | ||
Deposits | 193,488 | 201,846 |
FHLB-NY advances | 68,100 | 65,477 |
Subordinated Debentures and Subordinated Notes | 0 | 0 |
Interest rate swap | 967 | 246 |
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, net | 737,503 | 704,273 |
Interest rate swap | 0 | 0 |
Financial liabilities: | ||
Deposits | 0 | 0 |
FHLB-NY advances | 0 | 0 |
Subordinated Debentures and Subordinated Notes | 23,746 | 23,441 |
Interest rate swap | 0 | 0 |
Carrying Value | ||
Financial assets: | ||
Cash and cash equivalents | 12,610 | 16,823 |
Securities available-for-sale | 96,117 | 108,811 |
Securities held-to-maturity | 62,264 | 62,308 |
Other equity investments, at fair value | 1,693 | 1,648 |
FHLB-NY stock | 4,091 | 3,965 |
Loans, net | 748,055 | 725,404 |
Interest rate swap | 0 | 134 |
Financial liabilities: | ||
Deposits | 781,945 | 782,091 |
FHLB-NY advances | 67,400 | 65,700 |
Subordinated Debentures and Subordinated Notes | 23,415 | 23,382 |
Interest rate swap | $ 967 | $ 246 |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Earnings Per Common Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||||
Net income | $ 1,453 | $ 1,647 | $ 2,301 | $ 1,808 | $ 3,100 | $ 4,109 |
Weighted average common shares outstanding - basic (in shares) | 8,713,110 | 8,675,868 | 8,700,609 | 8,667,235 | ||
Weighted average common shares outstanding - diluted (in shares) | 8,713,110 | 8,675,868 | 8,700,609 | 8,667,235 | ||
Basic earnings per common share (in usd per share) | $ 0.17 | $ 0.27 | $ 0.36 | $ 0.47 | ||
Diluted earnings per common share (in usd per share) | $ 0.17 | $ 0.27 | $ 0.36 | $ 0.47 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
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 (Schedule of Components of Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Other comprehensive income (loss): | ||||||
Other comprehensive income (loss), before reclassifications, net | $ 911 | $ (359) | $ 1,873 | $ (1,352) | ||
Other comprehensive income (loss), before reclassifications, net | (395) | (614) | ||||
Other comprehensive income (loss), before reclassifications, net | 53 | 211 | ||||
Reclassification adjustment for gains in net income, net | (1) | 0 | (2) | (4) | ||
Accretion of loss on securities reclassified to held to maturity, net | 3 | 4 | 5 | 13 | ||
Total comprehensive income, gross | 731 | (402) | 1,769 | (1,511) | ||
Total comprehensive income, tax effect | (208) | 102 | (500) | 390 | ||
Total other comprehensive income (loss) | 523 | $ 746 | (300) | $ (821) | 1,269 | (1,121) |
Unrealized Gains and (Losses) on Available-for-Sale (AFS) Securities | ||||||
Other comprehensive income (loss): | ||||||
Other comprehensive income (loss), before reclassifications, before tax | 1,277 | (488) | 2,620 | (1,832) | ||
Other comprehensive income (loss) before reclassifications, tax | (366) | 129 | (747) | 480 | ||
Other comprehensive income (loss), before reclassifications, net | 911 | (359) | 1,873 | (1,352) | ||
Reclassification adjustment for gains in net income, gross | (1) | 0 | (3) | (6) | ||
Reclassification adjustment for gains in net income, tax effect | 0 | 0 | 1 | 2 | ||
Reclassification adjustment for gains in net income, net | (1) | 0 | (2) | (4) | ||
Accretion of loss on securities reclassified to held to maturity, gross | 4 | 9 | 7 | 18 | ||
Accretion of loss on securities reclassified to held to maturity, tax effect | (1) | (5) | (2) | (5) | ||
Accretion of loss on securities reclassified to held to maturity, net | 3 | 4 | 5 | 13 | ||
Total other comprehensive income (loss) | 910 | (359) | 1,871 | (1,356) | ||
Unrealized Gains / (Losses) on Derivatives | ||||||
Other comprehensive income (loss): | ||||||
Other comprehensive income (loss), before reclassifications, before tax | (556) | (865) | ||||
Other comprehensive income (loss) before reclassifications, tax | 161 | 251 | ||||
Other comprehensive income (loss), before reclassifications, net | (395) | (614) | ||||
Reclassification adjustment for gains in net income, gross | 7 | 3 | 10 | 15 | ||
Reclassification adjustment for gains in net income, tax effect | (2) | (1) | (3) | (4) | ||
Reclassification adjustment for gains in net income, net | 5 | 2 | 7 | 11 | ||
Total other comprehensive income (loss) | $ (390) | 55 | $ (607) | |||
Accumulated Net Gain (Loss) from Cash Flow Hedges | ||||||
Other comprehensive income (loss): | ||||||
Other comprehensive income (loss), before reclassifications, before tax | 74 | 294 | ||||
Other comprehensive income (loss) before reclassifications, tax | (21) | (83) | ||||
Other comprehensive income (loss), before reclassifications, net | $ 53 | 211 | ||||
Total other comprehensive income (loss) | $ 222 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Schedule of Components of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jan. 01, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Rollforward] | |||||||
Balance at the beginning | $ 82,291 | $ 80,150 | $ 74,372 | $ 73,665 | $ 80,150 | $ 73,665 | |
Other comprehensive income (loss) before reclassifications | 519 | (302) | 1,264 | (1,128) | |||
Amounts reclassified from other comprehensive income (loss) | 4 | 2 | 5 | 7 | |||
Total other comprehensive income (loss) | 523 | 746 | (300) | (821) | 1,269 | (1,121) | |
Reclassification due to adoption of ASU 2016-01 | 163 | 163 | $ 0 | ||||
Balance at the end | 84,090 | 82,291 | 76,188 | 74,372 | 84,090 | 76,188 | |
Unrealized Gains and (Losses) on Available-for-Sale (AFS) Securities | |||||||
Accumulated Other Comprehensive Income (Loss) [Rollforward] | |||||||
Balance at the beginning | (860) | (1,821) | (2,137) | (1,303) | (1,821) | (1,303) | |
Other comprehensive income (loss) before reclassifications | 911 | (359) | 1,873 | (1,352) | |||
Amounts reclassified from other comprehensive income (loss) | (1) | 0 | (2) | (4) | |||
Total other comprehensive income (loss) | 910 | (359) | 1,871 | (1,356) | |||
Reclassification due to adoption of ASU 2016-01 | 163 | 163 | |||||
Balance at the end | 50 | (860) | (2,496) | (2,137) | 50 | (2,496) | |
Loss on Securities Reclassified from Available-for-Sale to Held to Maturity | |||||||
Accumulated Other Comprehensive Income (Loss) [Rollforward] | |||||||
Balance at the beginning | (36) | (38) | (51) | (60) | (38) | (60) | |
Other comprehensive income (loss) before reclassifications | 3 | 4 | 5 | 13 | |||
Amounts reclassified from other comprehensive income (loss) | 0 | 0 | 0 | 0 | |||
Total other comprehensive income (loss) | 3 | 4 | 5 | 13 | |||
Reclassification due to adoption of ASU 2016-01 | 0 | 0 | |||||
Balance at the end | (33) | (36) | (47) | (51) | (33) | (47) | |
Unrealized Gains / (Losses) on Derivatives | |||||||
Accumulated Other Comprehensive Income (Loss) [Rollforward] | |||||||
Balance at the beginning | (294) | (77) | 146 | (77) | |||
Other comprehensive income (loss) before reclassifications | (395) | 53 | (614) | ||||
Amounts reclassified from other comprehensive income (loss) | 5 | 2 | 7 | ||||
Total other comprehensive income (loss) | (390) | 55 | (607) | ||||
Balance at the end | (684) | (294) | 201 | 146 | (684) | 201 | |
Accumulated Net Gain (Loss) from Cash Flow Hedges | |||||||
Accumulated Other Comprehensive Income (Loss) [Rollforward] | |||||||
Balance at the beginning | (21) | (21) | |||||
Other comprehensive income (loss) before reclassifications | 211 | ||||||
Amounts reclassified from other comprehensive income (loss) | 11 | ||||||
Total other comprehensive income (loss) | 222 | ||||||
Reclassification due to adoption of ASU 2016-01 | 0 | 0 | |||||
Balance at the end | 201 | 201 | |||||
Accumulated Other Comprehensive Income (Loss) | |||||||
Accumulated Other Comprehensive Income (Loss) [Rollforward] | |||||||
Balance at the beginning | (1,190) | (1,936) | (2,042) | (1,384) | (1,936) | (1,384) | |
Total other comprehensive income (loss) | 523 | 746 | (300) | (821) | |||
Reclassification due to adoption of ASU 2016-01 | $ 163 | ||||||
Balance at the end | $ (667) | $ (1,190) | $ (2,342) | $ (2,042) | $ (667) | $ (2,342) |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income (Schedule of Amount Reclassified from Each Component of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Income tax expense | $ (530) | $ (842) | $ (1,116) | $ (1,489) |
Total reclassifications, net of tax | 4 | 2 | 5 | 7 |
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 | (1) | 0 | (2) | (4) |
Unrealized Gains / (Losses) on Derivatives | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Total reclassifications, net of tax | 5 | 2 | 7 | |
Accumulated Net Gain (Loss) from Cash Flow Hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Total reclassifications, net of tax | 11 | |||
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] | ||||
Unrealized gains on securities available-for-sale, before tax | 1 | 0 | 3 | 6 |
Income tax expense | 0 | 0 | (1) | (2) |
Total, net of tax | 1 | 0 | 2 | 4 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains / (Losses) on Derivatives | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Unrealized losses on derivatives before tax | (7) | (10) | ||
Income tax expense | 2 | 3 | ||
Total, net of tax | $ (5) | $ (7) | ||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Cash Flow Hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Unrealized losses on derivatives before tax | (3) | (15) | ||
Income tax expense | 1 | 4 | ||
Total, net of tax | $ (2) | $ (11) |
Leases (Details)
Leases (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019USD ($)lease | Jun. 30, 2019USD ($)lease | |
Lessee, Lease, Description [Line Items] | ||
Incremental borrowing rate | 3.00% | 3.00% |
Weighted-average remaining lease term | 5 years 4 months | 5 years 4 months |
Lease costs | $ 239 | $ 479 |
Fixed rent expense | 203 | 402 |
Variable rent expense | 32 | 63 |
Short-term leases | 13 | 32 |
Sublease income | 9 | 18 |
Cash paid on operating leases | 198 | 391 |
Occupancy expense | ||
Lessee, Lease, Description [Line Items] | ||
Lease costs | 217 | 430 |
Equipment expense | ||
Lessee, Lease, Description [Line Items] | ||
Lease costs | $ 22 | $ 49 |
Branch offices | ||
Lessee, Lease, Description [Line Items] | ||
Number of operating leases | lease | 8 | 8 |
Number of operating leases with renewal options | lease | 4 | 4 |
Equipment | ||
Lessee, Lease, Description [Line Items] | ||
Number of operating leases | lease | 12 | 12 |
Automobiles | ||
Lessee, Lease, Description [Line Items] | ||
Number of operating leases | lease | 1 | 1 |
Leases - Lease Maturity (Detail
Leases - Lease Maturity (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
Six months ended December 31, 2019 | $ 355 |
Year ended December 31, 2020 | 646 |
Year ended December 31, 2021 | 489 |
Year ended December 31, 2022 | 474 |
Thereafter | 1,079 |
Lease Liability March 31, 2019 | $ 3,043 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 772 |
2021 | 578 |
2022 | 529 |
2023 | 443 |
2024 | 359 |
Thereafter | 502 |
Payments due | $ 3,183 |
Uncategorized Items - ssfn-2019
Label | Element | Value |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (163,000) |