Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 10, 2016 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | DCB FINANCIAL CORP | |
Entity Central Index Key | 1,025,877 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | DCBF | |
Entity Common Stock, Shares Outstanding | 7,339,232 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Assets: | ||
Cash and due from financial institutions | $ 6,092 | $ 6,929 |
Interest-bearing deposits | 25,190 | 24,963 |
Total cash and cash equivalents | 31,282 | 31,892 |
Securities available-for-sale | 95,676 | 87,797 |
Loans | 390,750 | 378,513 |
Less allowance for loan losses | (4,592) | (4,333) |
Net loans | 386,158 | 374,180 |
Loans held for sale | 755 | 0 |
Real estate owned | 68 | 68 |
Investment in FHLB stock | 3,250 | 3,250 |
Premises and equipment, net | 9,810 | 5,091 |
Premises and equipment held-for-sale | 0 | 4,771 |
Bank-owned life insurance | 21,329 | 20,760 |
Deferred tax asset, net | 10,467 | 10,440 |
Accrued interest receivable and other assets | 6,622 | 3,015 |
Total assets | 565,417 | 541,264 |
Deposits: | ||
Non-interest bearing | 123,353 | 124,023 |
Interest bearing | 366,195 | 350,514 |
Total deposits | 489,548 | 474,537 |
Borrowings | 4,293 | 4,520 |
Obligations under capital lease | 8,016 | 0 |
Accrued interest payable and other liabilities | 4,167 | 3,360 |
Total liabilities | 506,024 | 482,417 |
Shareholders’ equity: | ||
Preferred shares, no par value, 2,000,000 shares authorized, none issued and outstanding | 0 | 0 |
Common shares, no par value, 17,500,000 shares authorized, 7,661,632 and 7,588,887 shares issued, and 7,339,232 and 7,281,237 shares outstanding for September 30, 2016 and December 31, 2015, respectively | 16,907 | 16,410 |
Retained earnings | 49,820 | 49,799 |
Treasury stock, at cost, 322,400 and 307,650 shares at September 30, 2016 and December 31, 2015, respectively | (7,520) | (7,416) |
Accumulated other comprehensive income | 994 | 436 |
Deferred stock-based compensation | (808) | (382) |
Total shareholders’ equity | 59,393 | 58,847 |
Total liabilities and shareholders’ equity | $ 565,417 | $ 541,264 |
Common shares outstanding | 7,339,232 | 7,281,237 |
Book value per common share | $ 8.09 | $ 8.08 |
Consolidated Balance Sheets _Pa
Consolidated Balance Sheets [Parenthetical] - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
Preferred Stock, Par or Stated Value Per Share | $ 0 | $ 0 |
Preferred Stock, Shares Authorized | 2,000,000 | 2,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, No Par Value | $ 0 | $ 0 |
Common stock, shares authorized | 17,500,000 | 17,500,000 |
Common stock, shares issued | 7,661,632 | 7,588,887 |
Common Stock, Shares, Outstanding | 7,339,232 | 7,281,237 |
Treasury stock, shares | 322,400 | 307,650 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Interest income: | ||||
Loans | $ 4,157 | $ 3,979 | $ 12,154 | $ 11,884 |
Securities | 494 | 473 | 1,508 | 1,460 |
Federal funds sold and interest bearing deposits | 28 | 17 | 80 | 46 |
Total interest income | 4,679 | 4,469 | 13,742 | 13,390 |
Interest expense: | ||||
Savings and money market accounts | 202 | 153 | 560 | 445 |
Time accounts | 81 | 88 | 229 | 272 |
NOW accounts | 20 | 16 | 56 | 49 |
Total | 303 | 257 | 845 | 766 |
Obligation under capital lease | 81 | 0 | 215 | 0 |
FHLB advances | 41 | 35 | 126 | 106 |
Total interest expense | 425 | 292 | 1,186 | 872 |
Net interest income | 4,254 | 4,177 | 12,556 | 12,518 |
Provision for loan losses | 0 | (150) | 0 | 0 |
Net interest income after provision for loan losses | 4,254 | 4,327 | 12,556 | 12,518 |
Non-interest income: | ||||
Service charges | 560 | 523 | 1,596 | 1,475 |
Wealth management fees | 463 | 438 | 1,355 | 1,217 |
Treasury management fees | 134 | 81 | 348 | 203 |
Income from bank-owned life insurance | 163 | 163 | 569 | 571 |
Gain on sales of loans | 351 | 0 | 829 | 0 |
Net losses on sales of REO | 0 | (19) | 0 | (20) |
Other non-interest income | 47 | 37 | 144 | 115 |
Total non-interest income | 1,718 | 1,223 | 4,841 | 3,561 |
Non-interest expense: | ||||
Salaries and employee benefits | 3,186 | 2,771 | 9,356 | 8,302 |
Occupancy and equipment | 1,016 | 1,000 | 2,963 | 2,965 |
Professional services | 218 | 405 | 905 | 1,042 |
Merger related expenses | 987 | 0 | 987 | 0 |
Advertising | 108 | 169 | 506 | 418 |
Office supplies, postage and courier | 87 | 81 | 250 | 232 |
FDIC insurance premium | 60 | 95 | 238 | 302 |
State franchise taxes | 118 | 75 | 352 | 225 |
Other non-interest expense | 808 | 554 | 2,052 | 1,810 |
Total non-interest expense | 6,588 | 5,150 | 17,609 | 15,296 |
Income (loss) before income tax expense (benefit) | (616) | 400 | (212) | 783 |
Income tax benefit | (190) | (10,688) | (233) | (10,688) |
Net income (loss) | $ (426) | $ 11,088 | $ 21 | $ 11,471 |
Share and Per Share Data | ||||
Basic average common shares outstanding | 7,339,710 | 7,282,365 | 7,332,482 | 7,269,222 |
Diluted average common shares outstanding | 7,339,710 | 7,302,174 | 7,355,709 | 7,288,237 |
Basic and diluted earnings (loss) per common share | $ (0.06) | $ 1.52 | $ 0 | $ 1.58 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net income (loss) | $ (426) | $ 11,088 | $ 21 | $ 11,471 |
Other comprehensive income (loss): | ||||
Net unrealized gains (losses) on securities available-for-sale, net of taxes of $(24) and $287 for the three and nine months ended September 30, 2016, respectively, and $60 and $(10) for the three and nine months ended September 30, 2015, respectively. | (47) | 116 | 558 | (45) |
Total other comprehensive income (loss) | (47) | 116 | 558 | (45) |
Comprehensive income (loss) | $ (473) | $ 11,204 | $ 579 | $ 11,426 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Loss) [Parenthetical] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | $ (24) | $ 60 | $ 287 | $ (10) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Preferred Stock [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Deferred Stock-Based Compensation [Member] |
Balance at Dec. 31, 2014 | $ 47,211 | $ 16,064 | $ 0 | $ 38,055 | $ (7,416) | $ 654 | $ (146) |
Balance (in shares) at Dec. 31, 2014 | 7,233,797 | ||||||
Net income | 11,471 | $ 0 | 0 | 11,471 | 0 | 0 | 0 |
Other comprehensive income, net of taxes | (45) | 0 | 0 | 0 | 0 | (45) | 0 |
Issuance of restricted stock | 0 | $ 407 | 0 | 0 | 0 | 0 | (407) |
Issuance of restricted stock (in Shares) | 55,785 | ||||||
Forfeiture of restricted stock | 0 | $ (59) | 0 | 0 | 0 | 0 | 59 |
Forfeiture of restricted stock (in shares) | (9,290) | ||||||
Amortization of restricted stock | 59 | $ 0 | 0 | 0 | 0 | 0 | 59 |
Balance at Sep. 30, 2015 | 58,696 | $ 16,412 | 0 | 49,526 | (7,416) | 609 | (435) |
Balance (in shares) at Sep. 30, 2015 | 7,280,292 | ||||||
Balance at Dec. 31, 2015 | 58,847 | $ 16,410 | 0 | 49,799 | (7,416) | 436 | (382) |
Balance (in shares) at Dec. 31, 2015 | 7,281,237 | ||||||
Net income | 21 | $ 0 | 0 | 21 | 0 | 0 | 0 |
Other comprehensive income, net of taxes | 558 | 0 | 0 | 0 | 0 | 558 | 0 |
Issuance of restricted stock | 0 | $ 532 | 0 | 0 | 0 | 0 | (532) |
Issuance of restricted stock (in Shares) | 78,036 | ||||||
Repurchase of common shares | (104) | $ 0 | 0 | 0 | (104) | 0 | 0 |
Repurchase of common shares (in shares) | (14,750) | ||||||
Restricted stock withheld upon vesting for payment of taxes | (12) | $ (12) | 0 | 0 | 0 | 0 | 0 |
Restricted stock withheld upon vesting for payment of taxes (in shares) | (1,857) | ||||||
Forfeiture of restricted stock | 0 | $ (23) | 0 | 0 | 0 | 0 | 23 |
Forfeiture of restricted stock (in shares) | (3,434) | ||||||
Amortization of restricted stock | 83 | $ 0 | 0 | 0 | 0 | 0 | 83 |
Balance at Sep. 30, 2016 | $ 59,393 | $ 16,907 | $ 0 | $ 49,820 | $ (7,520) | $ 994 | $ (808) |
Balance (in shares) at Sep. 30, 2016 | 7,339,232 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities | ||
Net income | $ 21 | $ 11,471 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 677 | 729 |
Provision for loan losses | 0 | 0 |
Deferred taxes | (233) | (10,688) |
Net loss on sale of real estate owned | 0 | 20 |
Net gain on sale of loans | (829) | 0 |
Gain on calls of securities | (18) | 0 |
Net stock-based compensation expense | 57 | 132 |
Premium amortization on securities, net | 712 | 790 |
Originations of mortgage loans held for sale | (10,997) | 0 |
Proceeds from sale of mortgage loans | 10,466 | 0 |
Proceeds from sale of guaranteed portion of SBA loans | 6,975 | 0 |
Earnings on bank owned life insurance | (569) | (571) |
Net changes in other assets and other liabilities | (2,948) | (545) |
Net cash provided by operating activities | 3,314 | 1,338 |
Cash flows from investing activities | ||
Purchases of securities available-for-sale | (30,042) | (25,696) |
Proceeds from maturities, principal payments and calls of securities available-for-sale | 22,296 | 18,728 |
Net change in loans | (12,581) | 5,124 |
Net proceeds from sale of premises and equipment | 2,347 | 0 |
Proceeds from sale of real estate owned | 0 | 307 |
Premises and equipment expenditures | (410) | (662) |
Net cash used in investing activities | (18,390) | (2,199) |
Cash flows from financing activities | ||
Net change in deposits | 15,011 | 21,715 |
Proceeds from short-term borrowings | 4,293 | 0 |
Repayment of capital lease | (214) | 0 |
Repayment of borrowings | (4,520) | (7,097) |
Repurchase of common stock | (104) | 0 |
Net cash provided by financing activities | 14,466 | 14,618 |
Net change in cash and cash equivalents | (610) | 13,757 |
Cash and cash equivalents at beginning of period | 31,892 | 21,274 |
Cash and cash equivalents at end of period | 31,282 | 35,031 |
Supplemental disclosures of cash flow information | ||
Cash paid during the period for interest on deposits and borrowings | 1,195 | 834 |
Transfer from portfolio loans to loans held for sale | 6,132 | 0 |
Transfer from loans held for sale to portfolio loans | 2,540 | 0 |
Non-cash investing and financing activities: | ||
Loan to finance sale of premises and equipment | 5,530 | 0 |
Capital lease obligation | $ 8,230 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Note 1 Summary of Significant Accounting Policies Unless the context indicates otherwise, all references in this report to “Delaware,” “DCB,” “we,” “us,” “our company,” “corporation” and “our” refer to DCB Financial Corp and its direct and indirect subsidiaries The Delaware County Bank and Trust Company, our wholly owned bank subsidiary (the “Bank”), DCB Title Services, LLC, DCB Insurance Services, LLC, DataTasx LLC, ORECO, Inc., and 110 Riverbend, LLC. DCB Financial Corp is a financial holding company headquartered in Lewis Center, Ohio, and was incorporated under the laws of the State of Ohio in 1997, as a bank holding company under the Bank Holding Company Act of 1956, as amended. DCB is the holding company for The Delaware County Bank and Trust Company, a commercial bank organized in 1950 and chartered under the laws of the State of Ohio (the “Bank”). We also have two wholly-owned, non-bank subsidiaries, DCB Title Services, LLC, an Ohio limited liability company (“DCB Title”), and DCB Insurance Services, LLC, an Ohio limited liability company (“DCB Insurance”). DCB Title provides standard real estate title services, while DCB Insurance provides a variety of insurance products. The activities of each of these subsidiaries are not material to our operations. The Bank has two wholly-owned subsidiaries, ORECO, Inc., an Ohio corporation, which is used to hold the Bank’s foreclosed real estate, and 110 Riverbend, LLC, which was used to hold real estate owned by the Bank prior to the sale of such real estate in January 2016. The accompanying unaudited financial statements were prepared in accordance with the instructions for Form 10-Q and Regulation S-X and, therefore, do not include information for footnotes necessary for a complete presentation of financial condition, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The material under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” is written with the presumption that the users of the interim financial statements have read, or have access to, the latest audited financial statements and notes thereto of the Company, together with Management’s Discussion and Analysis of Financial Condition and Results of Operations as of December 31, 2015, and for the two-year period then ended, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. Accordingly, only material changes in the results of operations and financial condition are discussed in the remainder of Part I. Certain amounts from prior year periods are reclassified, when necessary, to conform to the current period presentation. All adjustments, consisting of only normal recurring items, that in the opinion of management are necessary for a fair presentation of the financial statements have been included in the results of operations for the three and nine months ended September 30, 2016 and 2015. The results of operations are not necessarily indicative of the results anticipated for the year. To prepare financial statements in conformity with U.S. GAAP, management makes estimates and assumptions based on available information. These estimates and assumptions affect amounts reported in the financial statements and disclosures provided, and future results could differ. The allowance for loan losses, fair values of financial instruments and status of contingencies are particularly subject to change. Earnings per common share is computed using the two-class method. Basic earnings per common share is computed by dividing net income allocated to common shares by the weighted average number of common shares outstanding during the period which excludes the participating securities. All outstanding unvested restricted stock awards containing rights to non-forfeitable dividends are considered participating securities for this calculation. Diluted earnings per common share includes the dilutive effect of additional potential common shares from stock compensation awards, but excludes awards considered participating securities. Compensation cost is recognized for restricted stock awards issued to employees and directors based on the fair value of these awards at the date of grant. The market price of the Company’s common shares at the date of grant is used to determine the fair value for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. The Company’s outstanding stock options may be settled for cash at the recipient’s discretion; therefore, liability accounting applies to the Company’s 2004 Long-Term Stock Incentive Plan under which such stock options were granted. Compensation expense is recognized based on the fair value of these awards at the reporting date. A Black Scholes model is utilized to estimate the fair value of stock options at the date of grant and subsequent re-measurement dates. Compensation cost is recognized over the required service period, generally defined as the vesting period. The Company’s stock option awards contain terms that provide for a graded vesting schedule whereby portions of the award vest in increments over the requisite service period. Changes in fair value of the options between the vesting date and option expiration date are also recognized in the Consolidated Statement of Operations. The Company’s consolidated financial statements are prepared in accordance with U.S. GAAP and follow general practices within the financial services industry. The application of these principles requires management to make estimates, assumptions, and judgments that affect the amounts reported in the financial statements and accompanying notes. These estimates, assumptions, and judgments are based on information available as of the date of the financial statements; as this information changes, the financial statements could reflect different estimates, assumptions, and judgments. The procedures for assessing the adequacy of the allowance for loan losses reflect the Company’s evaluation of credit risk after careful consideration of all information available to the Company. In developing this assessment, the Company must rely on estimates and exercise judgment regarding matters where the ultimate outcome is unknown, such as economic factors, developments affecting companies in specific industries and issues with respect to single borrowers. Depending on changes in circumstances, future assessments of credit risk may yield materially different results, which may require an increase or a decrease in the allowance for loan losses. The valuation of other assets requires that management utilize a variety of estimates and analysis to determine whether an asset is impaired or other-than-temporarily impaired (“OTTI”). After determining the appropriate methodology for fair value measurement, management then evaluates whether or not declines in fair value below book value are temporary or other-than-temporary impairments. When the Company does not intend to sell a debt security, and it is more likely than not that the Company will not have to sell the security before recovery of its cost basis, it recognizes the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. Loans are classified as held for investment when management has both the intent and ability to hold the loan for the foreseeable future, or until maturity or payoff. Management’s intent and view of the foreseeable future may change based on changes in business strategies, the economic environment, market conditions and the availability of government programs. Loans that are held for investment are reported at the principal balance outstanding, net of unearned interest, unamortized deferred loan fees and costs and the allowance for loan losses. Loans held for sale are carried at the lower of amortized cost or estimated fair value, determined on an aggregate basis for each type of loan. Net unrealized losses are recognized by charges to income. Interest income is accrued based on the unpaid principal balance and includes amortization of net deferred loan fees and costs over the loan term. Interest income on mortgage and commercial loans is discontinued at the time the loan is 90 days delinquent unless the credit is well secured and in process of collection. In all cases, loans are placed on non-accrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not received for loans placed on non-accrual status is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. When loans are transferred from held for investment to held for sale, specific reserves and allocated pooled reserves included in the allowance for loan and losses are reclassified to reduce the basis of the loans to the lower of cost or estimated fair value less cost to sell. The allowance for loan losses is a valuation allowance for probable but unconfirmed credit losses, increased by the provision for loan losses and decreased by charge-offs net of recoveries. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the required allowance balance based on past loan loss experience, augmented by additional estimates related to the nature and volume of the portfolio, information about specific borrower situations, estimated collateral values, economic conditions and other factors. The allowance consists of both specific and general components. The specific component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the collateral value or value of expected discounted cash flows of the impaired loan is lower than the carrying value of that loan. The general component covers non-classified loans and is based on historical charge-off experience and expected loss given default derived from the Bank’s internal risk rating process. Management utilizes an average of a three year historical loss period. Management has the ability to adjust these loss rates by utilizing risk ratings based on current period trends. If current period trends differ either positively or negatively from the given weighted historical loss rates, adjustments can be made. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risking rating data. Management also utilizes its assessment of general economic conditions, and other localized economic data to more fully support its loan loss estimates. General economic data may include: inflation rates, savings rates and national unemployment rates. Local data may include: unemployment rates, housing starts, real estate valuations, and other economic data specific to the Company’s market area. Though not specific to individual loans, these economic trends can have an impact on portfolio performance as a whole. Uncollectibility is usually determined based on a pre-determined number of days delinquent in the case of consumer loans, or, in the case of commercial loans, is based on a combination of factors including delinquency, collateral and other legal considerations. Consumer loans are charged-off prior to 120 180 Troubled debt restructuring of loans is undertaken to improve the likelihood that the loan will be repaid in full under the modified terms in accordance with a reasonable repayment schedule. All modified loans are evaluated to determine whether the loans should be reported as a Troubled Debt Restructuring (“TDR”). A loan is a TDR when the Company, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower by modifying or renewing a loan that the Company would not otherwise consider. To make this determination, the Company must determine whether (a) the borrower is experiencing financial difficulties and (b) the Company granted the borrower a concession. This determination requires consideration of all of the facts and circumstances surrounding the modification. An overall general decline in the economy or some deterioration in a borrower’s financial condition does not automatically mean the borrower is experiencing financial difficulties. The Company accounts for income taxes in accordance with income tax accounting guidance (ASC 740, Income Taxes). The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax basis of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred tax assets are reduced by a valuation allowance, if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances and information available at the reporting date and is subject to management’s judgment. The Company recognizes interest and penalties on income taxes, if applicable, as a component of income tax expense. The Company files consolidated income tax returns with its subsidiaries. Recently Issued Accounting Standards In June 2016, the FASB issued ASU 2016-13, Financial Instruments Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) - A lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and - A right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. The Company is currently evaluating the effect the guidance will have on the Company’s consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) ASC 605, Revenue Recognition |
Securities
Securities | 9 Months Ended |
Sep. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Note 2 Securities September 30, 2016 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value U.S. Government and agency obligations $ 27,282 $ 34 $ 19 $ 27,297 Corporate bonds 2,800 68 2 2,866 States and municipal obligations 20,501 738 13 21,226 Collateralized mortgage obligations 27,577 161 28 27,710 Mortgage-backed securities 15,510 570 - 16,080 Other equity securities 500 - 3 497 Total $ 94,170 $ 1,571 $ 65 $ 95,676 December 31, 2015 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value U.S. Government and agency obligations $ 20,904 $ 26 $ 88 $ 20,842 Corporate bonds 3,714 26 13 3,727 States and municipal obligations 21,954 388 81 22,261 Collateralized mortgage obligations 22,862 46 107 22,801 Mortgage-backed securities 17,702 505 41 18,166 Total $ 87,136 $ 991 $ 330 $ 87,797 September 30, 2016 (Less than 12 months) (12 months or longer) Total Number of Fair Unrealized Number of Fair Unrealized Number of Fair Unrealized Description of securities investments value losses investments value losses investments value losses U.S. Government and agency 11 $ 15,225 $ 19 - $ - $ - 11 $ 15,225 $ 19 Corporate bonds - - - 1 499 2 1 499 2 State and municipal obligations 3 1,158 13 - - - 3 1,158 13 Collateralized mortgage obligations 10 7,654 14 6 2,323 14 16 9,977 28 Mortgage-backed securities 1 1,234 - - - - 1 1,234 - Other equity securities 1 497 3 - - - 1 497 3 Total temporarily impaired securities 26 $ 25,768 $ 49 7 $ 2,822 $ 16 33 $ 28,590 $ 65 December 31, 2015 (Less than 12 months) (12 months or longer) Total Number of Fair Unrealized Number of Fair Unrealized Number of Fair Unrealized Description of securities investments value losses investments value losses investments value losses U.S. Government and agency 14 $ 15,333 $ 55 2 $ 1,964 $ 33 16 $ 17,297 $ 88 Corporate bonds 2 759 5 3 1,400 8 5 2,159 13 State and municipal obligations 9 3,902 48 4 1,355 33 13 5,257 81 Collateralized mortgage obligations 13 11,298 63 6 2,551 44 19 13,849 107 Mortgage-backed securities 5 5,176 41 - - - 5 5,176 41 Total temporarily impaired securities 43 $ 36,468 $ 212 15 $ 7,270 $ 118 58 $ 43,738 $ 330 The unrealized losses on the Company’s securities were caused primarily by changes in interest rates. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider those investments to be OTTI at September 30, 2016 or December 31, 2015. Substantially all mortgage-backed securities are backed by pools of mortgages that are insured or guaranteed by the Federal National Mortgage Association (“FNMA”), the Government National Mortgage Association (“GNMA”) or the Federal Home Loan Mortgage Corporation (“FHLMC”). There were no sales of securities in the nine months ended September 30, 2016 and 2015. At September 30, 2016, there were no holdings of securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10 The amortized cost and estimated fair value of all debt securities at September 30, 2016, by contractual maturity, are shown below (in thousands). Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Amortized Cost Fair Value Due in one year or less $ 3,726 $ 3,730 Due after one to five years 32,422 32,674 Due after five to ten years 10,835 11,214 Due after ten years 3,600 3,771 Mortgage-backed and related securities 43,587 44,287 Total $ 94,170 $ 95,676 Securities with a fair value of $ 75.6 |
Loans
Loans | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 3 Loans September 30, December 31, 2016 2015 Consumer and credit card $ 36,158 $ 40,587 Residential real estate and home equity 150,362 137,645 Commercial and industrial 104,108 99,213 Commercial real estate 99,505 100,743 390,133 378,188 Net deferred loan costs 617 325 Loans $ 390,750 $ 378,513 Allowance for loan losses (4,592 ) (4,333 ) Net loans $ 386,158 $ 374,180 |
Credit Quality
Credit Quality | 9 Months Ended |
Sep. 30, 2016 | |
Credit Quality [Abstract] | |
Credit Quality Disclosure [Text Block] | Note 4 Credit Quality Allowance for Loan Losses The Company’s methodology for estimating probable future losses on loans utilizes a combination of probability of loss by loan grade and loss given defaults for its portfolios. The probability of default is based on both market data from a third-party independent source and actual historical default rates within the Company’s portfolio. A loan is impaired when full payment of interest and principal under the original contractual loan terms is not expected. Commercial and industrial loans, commercial real estate, including construction and land development, and multi-family real estate loans are individually evaluated for impairment. If a loan is impaired, the loan amount exceeding fair value, based on the most current information available is reserved. Management has developed a process by which commercial and commercial real estate loan relationships with balances of $ 250,000 Further, the process for estimating probable loan losses is divided into reviewing impaired loans on an individual basis for probable losses and, as noted above, calculating probable losses based on historical and market data for homogenous loan portfolios. As the Company’s troubled loan portfolios have been reduced through paydowns, payoffs, credit improvement and charge-offs, the remaining loan portfolios possess better overall credit characteristics, and based on the Company’s methodology require lower rates of reserving than historical levels. Three months ended September 30, 2016 Consumer Residential and Real Estate Commercial Credit and Home and Commercial Card Equity Industrial Real Estate Unallocated Total Beginning balance $ 122 $ 544 $ 1,521 $ 2,140 $ 263 $ 4,590 Charge-offs (63) (3) (2) - - (68) Recoveries 23 12 23 12 - 70 Net (charge-offs) recoveries (40) 9 21 12 - 2 Provision 38 (24) (26) (71) 83 - Ending balance $ 120 $ 529 $ 1,516 $ 2,081 $ 346 $ 4,592 Nine months ended September 30, 2016 Consumer Residential and Real Estate Commercial Credit and Home and Commercial Card Equity Industrial Real Estate Unallocated Total Beginning balance $ 144 $ 561 $ 1,321 $ 1,999 $ 308 $ 4,333 Charge-offs (142) (12) (2) - - (156) Recoveries 56 35 240 84 - 415 Net (charge-offs) recoveries (86) 23 238 84 - 259 Provision 62 (55) (43) (2) 38 - Ending balance $ 120 $ 529 $ 1,516 $ 2,081 $ 346 $ 4,592 Three months ended September 30, 2015 Consumer Residential and Real Estate Commercial Credit and Home and Commercial Card Equity Industrial Real Estate Unallocated Total Beginning balance $ 172 $ 315 $ 1,035 $ 2,195 $ 447 $ 4,164 Charge-offs (63) - - - - (63) Recoveries 50 30 157 18 - 255 Net (charge-offs) recoveries (13) 30 157 18 - 192 Provision - 156 (63) (217) (26) (150) Ending balance $ 159 $ 501 $ 1,129 $ 1,996 $ 421 $ 4,206 Consumer Residential Commercial Commercial Unallocated Total Beginning balance $ 190 $ 268 $ 1,132 $ 2,376 $ 270 $ 4,236 Charge-offs (122) (73) (311) (64) - (570) Recoveries 109 97 297 37 - 540 Net charge-offs (13) 24 (14) (27) - (30) Provision (18) 209 11 (353) 151 - Ending balance $ 159 $ 501 $ 1,129 $ 1,996 $ 421 $ 4,206 Impaired Loans A loan is considered impaired when based on current information and events it is probable the Bank will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include non-performing commercial loans but also include loans modified in troubled debt restructurings where concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. The following presents by class, information related to the Company’s impaired loans as of the dates indicated (in thousands). At September 30, 2016 Period ended September 30, 2016 Recorded Unpaid Related Three months Three months Nine months Nine months With no related allowance recorded: Consumer and credit card $ 282 $ 282 - $ 283 $ 5 $ 376 $ 14 Residential real estate and home equity 668 668 - 672 - 660 1 Commercial and industrial 572 572 - 579 5 862 16 Commercial real estate 2,284 2,284 - 2,292 19 842 19 3,806 3,806 - 3,826 29 2,740 50 With an allowance recorded: Commercial and industrial $ 1,545 $ 1,623 $ 344 $ 1,407 $ 17 $ 1,263 $ 46 Commercial real estate 4,831 4,831 581 4,841 56 4,751 168 6,376 6,454 925 6,248 73 6,014 214 Total: Consumer and credit card $ 282 $ 282 $ - $ 283 $ 5 $ 376 $ 14 Residential real estate and home equity 668 668 - 672 - 660 1 Commercial and industrial 2,117 2,195 344 1,986 22 2,125 62 Commercial real estate 7,115 7,115 581 7,133 75 5,593 187 Total $ 10,182 $ 10,260 $ 925 $ 10,074 $ 102 $ 8,754 $ 264 At December 31, 2015 Period ended September 30, 2015 Recorded Unpaid Related Three months Three months Nine months Nine months With no related allowance recorded: Consumer and credit card $ 548 $ 548 - $ 469 $ 7 $ 469 $ 19 Residential real estate and home equity 668 668 - 733 - 552 8 Commercial and industrial 926 926 - 914 5 1,106 21 Commercial real estate 126 126 - 451 2 468 2 2,268 2,268 - 2,567 14 2,595 50 With an allowance recorded: Commercial and industrial $ 944 $ 1,021 $ 144 $ 1,134 $ 13 $ 1,016 $ 43 Commercial real estate 4,579 4,579 435 6,706 53 7,727 163 5,523 5,600 579 7,840 66 8,743 206 Total: Consumer and credit card $ 548 $ 548 $ - $ 469 $ 7 $ 469 $ 19 Residential real estate and home equity 668 668 - 733 - 552 8 Commercial and industrial 1,870 1,947 144 2,048 18 2,122 64 Commercial real estate 4,705 4,705 435 7,157 55 8,195 165 Total $ 7,791 $ 7,868 $ 579 $ 10,407 $ 80 $ 11,338 $ 256 The allocation of the allowance for loan losses summarized on the basis of the Company’s impairment methodology was as follows at the dates indicated (in thousands): Residential Consumer Real Estate Commercial and Credit and Home and Commercial Card Equity Industrial Real Estate Total September 30, 2016 Individually evaluated for impairment $ - $ - $ 344 $ 581 $ 925 Collectively evaluated for impairment 120 529 1,172 1,500 3,321 Allocated $ 120 $ 529 $ 1,516 $ 2,081 4,246 Unallocated 346 $ 4,592 December 31, 2015 Individually evaluated for impairment $ - $ - $ 144 $ 435 $ 579 Collectively evaluated for impairment 144 561 1,177 1,564 3,446 Allocated $ 144 $ 561 $ 1,321 $ 1,999 4,025 Unallocated 308 $ 4,333 The recorded investment in loans summarized on the basis of the Company’s impairment methodology at the dates indicated was as follows (in thousands): Residential Consumer Real Estate Commercial and Credit and Home and Commercial Card Equity Industrial Real Estate Total September 30, 2016 Individually evaluated for impairment $ 282 $ 668 $ 2,117 $ 7,115 $ 10,182 Collectively evaluated for impairment 35,876 149,694 101,991 92,390 379,951 Ending balance $ 36,158 $ 150,362 $ 104,108 $ 99,505 $ 390,133 Residential Consumer Real Estate Commercial and Credit and Home and Commercial Card Equity Industrial Real Estate Total December 31, 2015 Individually evaluated for impairment $ 548 $ 668 $ 1,870 $ 4,705 $ 7,791 Collectively evaluated for impairment 40,039 136,977 97,343 96,038 370,397 Ending balance $ 40,587 $ 137,645 $ 99,213 $ 100,743 $ 378,188 September 30, December 31, 2016 2015 Consumer and credit card $ - $ - Residential real estate and home equity 816 668 Commercial and industrial 236 554 Commercial real estate 2,315 - Total $ 3,367 $ 1,222 Credit Quality Indicators The Company uses the following definitions for criticized and classified commercial loans and commercial real estate loans which are consistent with regulatory guidelines: Special Mention Loans which possess some credit deficiency or potential weakness which deserves close attention, but which do not yet warrant substandard classification. Such loans pose unwarranted financial risk that, if not corrected, could weaken the loan and increase risk in the future. The key distinctions of a Special Mention classification are that (1) it is indicative of an unwarranted level of risk, and (2) weaknesses are considered “potential,” versus “well-defined,” impairments to the primary source of loan repayment. Substandard Loans that are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. Doubtful Loans that have all the weaknesses inherent in a Substandard loan with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Specific pending factors may strengthen the credit, therefore deferring a Loss classification. Loss Loans are considered uncollectible and of such little value that continuing to carry them as assets on the institution’s financial statements is not feasible. Loans will be classified Loss when it is neither practical nor desirable to defer writing off or reserving all or a portion of a basically worthless asset, even though partial recovery may be possible at some time in the future. September 30, 2016 December 31, 2015 Commercial Commercial Commercial Commercial and Industrial Real Estate and Industrial Real Estate Pass $ 101,331 $ 92,499 $ 96,225 $ 91,132 Special mention 1,200 4,374 925 4,592 Substandard 1,577 2,632 2,063 5,019 Total $ 104,108 $ 99,505 $ 99,213 $ 100,743 For residential real estate and consumer loan classes, the Company evaluates credit quality primarily based upon the aging status of the loan and by payment activity. September 30, 2016 December 31, 2015 Residential Residential Consumer and Real Estate and Consumer and Real Estate and Credit Card Home Equity Credit Card Home Equity Performing $ 36,158 $ 149,546 $ 40,587 $ 136,975 Non-performing - 816 - 670 Total $ 36,158 $ 150,362 $ 40,587 $ 137,645 Age Analysis of Past Due Loans September 30, 2016 60-89 Days 90 Days or Loans 30-59 Days Past more Past Total Not Past Past Due Due Due Past Due Due Total Loans Consumer and credit card $ 103 $ 34 $ - $ 137 $ 36,021 $ 36,158 Residential real estate and home equity 72 89 434 595 149,767 150,362 Commercial and industrial 99 - 168 267 103,841 104,108 Commercial real estate - - 2,315 2,315 97,190 99,505 Total $ 274 $ 123 $ 2,917 $ 3,314 $ 386,819 $ 390,133 December 31, 2015 60-89 Days 90 Days or Loans 30-59 Days Past more Past Total Not Past Past Due Due Due Past Due Due Total Loans Consumer and credit card $ 48 $ 13 $ - $ 61 $ 40,526 $ 40,587 Residential real estate and home equity 160 98 401 659 136,986 137,645 Commercial and industrial 236 - - 236 98,977 99,213 Commercial real estate - - - - 100,743 100,743 Total $ 444 $ 111 $ 401 $ 956 $ 377,232 $ 378,188 Troubled Debt Restructurings For the three months ended September 30, 2016 2015 Number of Recorded Investment Number of Recorded Investment Contracts (as of period end) Contracts (as of period end) Consumer and credit card - $ - 1 $ 188 Total - $ - 1 $ 188 For the nine months ended September 30, 2016 2015 Number of Recorded Investment Number of Recorded Investment Contracts (as of period end) Contracts (as of period end) Consumer and credit card - $ - 7 $ 279 Commercial real estate 4 392 - - Total 4 $ 392 7 $ 279 There were no loans modified in a TDR that subsequently defaulted within twelve months of the modification (i.e. 60 days or more past due) during the three and nine months ended September 30, 2016 and 2015. A modification of a loan constitutes a TDR when a borrower is experiencing financial difficulty and the modification constitutes a concession. The Company offers various types of concessions when modifying a loan; however, forgiveness of principal is rarely granted. Depending on the financial condition of the borrower, the purpose of the loan and the type of collateral supporting the loan structure; modifications can be either short-term (12 months of less) or long term (greater than one year). Commercial loans modified in a TDR often involve temporary interest-only payments, term extensions, and converting revolving credit lines to term loans. Additional collateral, a co-borrower, or a guarantor may be requested. Commercial mortgage and construction loans modified in a TDR often involve reducing the interest rate for the remaining term of the loan, extending the maturity date at an interest rate lower than the current market rate for new debt with similar risk, or substituting or adding a new borrower or guarantor. Construction loans modified in a TDR may also involve extending the interest-only payment period. Land loans are also included in the class of commercial real estate loans. Land loans are typically structured as interest-only monthly payments with a balloon payment due at maturity. Land loans modified in a TDR typically involve extending the balloon payment by one to three years, changing the monthly payments from interest-only to principal and interest, while leaving the interest rate unchanged. Loans modified in a TDR are typically already on non-accrual status and partial charge-offs have in some cases already been taken against the outstanding loan balance. As a result, loans modified in a TDR for the Company may have the financial effect of increasing the specific allowance associated with the loan. The allowance for impaired loans that have been modified in a TDR is measured based on the estimated fair value of the collateral, less any selling costs, if the loan is collateral dependent or on the present value of expected future cash flows discounted at the loan’s effective interest rate. Management exercises significant judgment in developing these estimates. As mentioned above, an individual loan is placed on a non-accruing status if, in the judgment of management, it is unlikely that all principal and interest will be received according to the terms of the note. Loans on non-accrual may be eligible to be returned to an accruing status after six months of compliance with the modified terms. However, there are number of factors that could prevent a loan from returning to accruing status, even after remaining in compliance with loan terms for the aforementioned six month period. For example: deteriorating collateral, negative cash flow changes and inability to reduce debt to income ratios. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Note 5 Fair Value Measurements The Company accounts for fair value measurements in accordance with FASB ASC 820, which defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. FASB ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. FASB ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1 Quoted prices in active markets for identical assets or liabilities Level 2 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 for substantially the full term of the assets or liabilities Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities The carrying value of certain financial assets and liabilities is impacted by the application of fair value measurements, either directly or indirectly. In certain cases, an asset or liability is measured and reported at fair value on a recurring basis, such as available-for-sale investment securities. In other cases, management must rely on estimates or judgments to determine if an asset or liability not measured at fair value warrants an impairment write-down or whether a valuation reserve should be established. Given the inherent volatility, the use of fair value measurements may have a significant impact on the carrying value of assets or liabilities, or result in material changes to the financial statements, from period to period. Fair value is defined as the price that would be received to sell an asset or transfer a liability between market participants at the balance sheet date. When possible, the Company looks to active and observable markets to price identical assets or liabilities. When identical assets and liabilities are not traded in active markets, the Company looks to observable market data for similar assets and liabilities. However, certain assets and liabilities are not traded in observable markets and the Company must use other valuation methods to develop a fair value. The following methods, assumptions, and valuation techniques were used by the Company to measure different financial assets and liabilities at fair value and in estimating its fair value disclosures for financial instruments. Cash and Cash Equivalents : The carrying amounts reported in the consolidated statements of financial condition for cash and cash equivalents is deemed to approximate fair value and are classified as Level 1 of the fair value hierarchy. Available for Sale Investment Securities : Fair values for investment securities are determined by quoted market prices if available (Level 1). For securities where quoted prices are not available, fair values are estimated based on market prices of similar securities. For securities where quoted prices or market prices of similar securities are not available, fair values are estimated using matrix pricing, which is a mathematical technique widely used in the industry to value investment securities without relying exclusively on quoted prices for the specific investment securities but rather relying on the investment securities’ relationship to other benchmark quoted investment securities (Level 2). Any investment securities not valued based upon the methods above is considered Level 3. The Company utilizes information provided by a third-party investment securities portfolio manager in analyzing the investment securities portfolio in accordance with the fair value hierarchy of the Fair Value Topic. The portfolio manager’s evaluation of investment security portfolio pricing is performed using a combination of prices and data from other sources, along with internally developed matrix pricing models. The third-party’s month-end pricing process includes a series of quality assurance activities where prices are compared to recent market conditions, previous evaluation prices, and between the various pricing services. These processes produce a series of quality assurance reports on which price exceptions are identified, reviewed and where appropriate, securities are re-priced. In the event of a materially different price, the third party will report the variance and review the pricing methodology in detail. The results of the quality assurance process are incorporated into the selection of pricing providers by the third party. Loans Held for Sale: The fair value of loans held for sale is estimated based upon binding contracts and quotes from third party investors resulting in Level 2 classification. Loans: For fixed rate loans and for variable rate loans with infrequent re-pricing or re-pricing limits, fair value is based on discounted cash flows using current market rates applied to the estimated life. Fair values for impaired loans are estimated using discounted cash flow analysis or underlying collateral values. For loans held on balance sheet, the discounted fair value is further reduced by the amount of reserves held against the loan portfolios. The methods utilized to estimate the fair value of loans do not necessarily represent an exit price and due to the significant judgment involved in evaluating credit quality, loans are classified within Level 3 classification. Federal Home Loan Bank Stock : The carrying amount presented in the consolidated statements of financial condition is deemed to approximate fair value, and is classified as a Level 2 instrument. Accrued Interest Receivable and Payable: The fair value for accrued interest approximates its carrying amounts due to the short duration before collection. The valuation is a Level 3 classification which is consistent with its underlying asset or liability. Deposits : The fair values of deposits with no stated maturity, such as money market demand deposits, savings and NOW accounts have been analyzed by management and assigned estimated maturities and cash flows which are then discounted to derive a value. The fair value of fixed-rate certificates of deposit is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. The Company classifies the estimated fair value of deposit liabilities as Level 2 in the fair value hierarchy. Advances from the Federal Home Loan Bank : The fair value of these advances is estimated using the rates currently offered for similar advances of similar remaining maturities (Level 2). Commitments to Extend Credit : For fixed-rate and adjustable-rate loan commitments, the fair value estimate considers the difference between current levels of interest rates and committed rates. At September 30, 2016 and December 31, 2015, the fair value of loan commitments was not material. September 30, 2016 Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 31,282 $ 31,282 $ 31,282 $ - $ - Securities available-for-sale 95,676 95,676 - 95,179 497 Loans held for sale 755 755 - 755 - Loans (net of allowance) 386,158 382,919 - - 382,919 FHLB stock 3,250 3,250 - 3,250 - Accrued interest receivable 1,383 1,383 - - 1,383 Financial liabilities Non-interest-bearing deposits $ 123,353 $ 123,353 $ - $ 123,353 $ - Interest-bearing deposits 366,195 366,187 - 366,187 - Borrowings 4,293 4,293 - 4,293 - Accrued interest payable 65 65 - - 65 December 31, 2015 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 31,892 $ 31,892 $ 31,892 $ - $ - Securities available-for-sale 87,797 87,797 - 87,797 - Loans (net of allowance) 374,180 371,930 - - 371,930 FHLB stock 3,250 3,250 - 3,250 - Accrued interest receivable 1,307 1,307 - - 1,307 Financial liabilities Non-interest-bearing deposits $ 124,023 $ 124,023 $ - $ 124,023 $ - Interest-bearing deposits 350,514 350,957 - 350,957 - Borrowings 4,520 4,520 - 4,520 - Accrued interest payable 74 74 - - 74 September 30, 2016 Fair Value Measurements Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Fair Value (Level 1) (Level 2) (Level 3) U.S. Government and agency obligations $ 27,297 $ - $ 27,297 $ - Corporate bonds 2,866 - 2,866 - State and municipal obligations 21,226 - 21,226 - Collateralized mortgage obligations 27,710 - 27,710 - Mortgage-backed securities 16,080 - 16,080 - Other equity securities 497 - - 497 Total $ 95,676 $ - $ 95,179 $ 497 December 31, 2015 Fair Value Measurements Using Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) U.S. Government and agency obligations $ 20,842 $ - $ 20,842 $ - Corporate bonds 3,727 - 3,727 - State and municipal obligations 22,261 - 22,261 - Collateralized mortgage obligations 22,801 - 22,801 - Mortgage-backed securities 18,166 - 18,166 - Total $ 87,797 $ - $ 87,797 $ - The following is a description of the valuation methodologies used for instruments measured at fair value on a non-recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such instruments pursuant to the valuation hierarchy. Impaired loans At September 30, 2016 and December 31, 2015, impaired loans consisted primarily of loans secured by commercial real estate. Management has determined fair value measurements on impaired loans primarily through evaluations of appraisals performed. Real Estate Owned Real estate acquired through, or in lieu of, loan foreclosure is held for sale and initially recorded at fair value (based on current appraised value) at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less estimated costs to sell. Management has determined fair value measurements on real estate owned primarily through evaluations of appraisals performed. September 30, 2016 Fair Value Measurements Using Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Fair Value (Level 1) (Level 2 ) (Level 3) Impaired loans $ 10,182 $ - $ - $ 10,182 Real estate owned 68 - - 68 December 31, 2015 Fair Value Measurements Using Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Fair Value (Level 1) (Level 2 ) (Level 3) Impaired loans $ 7,791 $ - $ - $ 7,791 Real estate owned 68 - - 68 |
Sale-Leaseback and Capital Leas
Sale-Leaseback and Capital Lease Obligation | 9 Months Ended |
Sep. 30, 2016 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | Note 6 Sale-Leaseback and Capital Lease Obligation In January 2016, the Company entered into a sale-leaseback of its corporate headquarters building. Under the arrangement, the Company sold and leased the building back for a period of fifteen years, with options to extend the term of the lease for two additional periods of ten years each. The gain of $ 3.1 The lease has been accounted for as a capital lease, and the building is included in property and equipment. The present value of the net minimum lease payments has been capitalized and is being amortized over the life of the lease. Under the terms of the lease agreements, minimum payments of $ 54,000 2 3.91 At September 30, 2016, property under capital leases consists of the corporate headquarters with a cost, net of the deferred gain, of $ 5.0 274,000 Depreciation expense on property under capital leases was $ 51,000 136,000 The future minimum lease payments under capital leases are as follows (in thousands): 2016 $ 161 2017 655 2018 668 2019 682 2020 695 Thereafter 7,798 Total minimum lease payments 10,659 Less amounts representing interest 2,643 Present value of net minimum lease payments $ 8,016 |
Federal Income Taxes
Federal Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Note 7 Federal Income Taxes The Company files income tax returns in the U.S. federal jurisdiction and franchise tax returns in Ohio. Income tax benefit for the dates indicated include the following components (in thousands): Three months ended Nine months ended September 30, September 30, 2016 2015 2016 2015 Current $ (11) $ - $ 73 $ - Deferred (179) 96 (306) 96 Valuation allowance - (10,784) - (10,784) Total $ (190) $ (10,688) $ (233) $ (10,688) The difference between the financial statement tax provision and amounts computed by applying the statutory federal income tax rate to income before income taxes was as follows (in thousands): Three months ended Nine months ended September 30, September 30, 2016 2015 2016 2015 Federal income taxes calculated at the expected statutory rate $ (209) $ 136 $ (72) $ 266 Increase (decrease) in taxes resulting from: Nontaxable dividend and interest income (30) (29) (71) (70) Increase in cash surrender value of life insurance - net (55) (56) (193) (194) Nondeductible acquisition costs 98 - 98 - Other 6 45 5 94 Valuation allowance - (10,784) - (10,784) Income tax benefit per financial statements $ (190) $ (10,688) $ (233) $ (10,688) Deferred tax assets and liabilities were comprised of the following at the dates indicated (in thousands): September 30, 2016 December 31, 2015 Deferred tax assets: Allowance for loan losses $ 1,561 $ 1,473 Deferred compensation 308 300 Alternative minimum tax carry forward 212 155 Expenses on foreclosed property - 14 Deferred gain on sale of building 1,009 - NOL carry forward 8,258 9,020 Other 307 98 Subtotal 11,655 11,060 Deferred tax liabilities: FHLB stock dividends (307) (307) Unrealized gains on available-for-sale securities (512) (225) Depreciation (55) (55) Other (314) (33) Subtotal (1,188) (620) Net deferred tax asset 10,467 10,440 Less: valuation allowance - - Total $ 10,467 $ 10,440 At September 30, 2016, the Company had a $ 24.3 2030 |
Earnings per Common Share
Earnings per Common Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Note 8 - Earnings per Common Share The Company issued restricted stock awards with non-forfeitable dividend rights, which are considered participating securities. As such, earnings per share is computed using the two-class method as required by Accounting Standard Codification (“ASC”) 206-10-45. Basic earnings per common share is computed by dividing net income allocated to common stock by the weighted average number of common shares outstanding during the period which excludes the participating securities. Diluted earnings per common share includes the dilutive effect of additional potential common shares from stock compensation awards and warrants, but excludes awards considered participating securities. follows (in thousands, except share and per share amounts): Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 Basic Net income (loss) $ (426) $ 11,088 $ 21 $ 11,471 Less: undistributed earnings allocated to unvested restricted shares (8) 137 - 121 Net earnings (losses) allocated to common shareholders $ (418) $ 10,951 $ 21 $ 11,350 Weighted average common shares outstanding including shares considered participating securities 7,339,710 7,282,365 7,332,482 7,269,222 Less: average participating securities (140,205) (90,015) (132,977) (76,872) Weighted average shares 7,199,505 7,192,350 7,199,505 7,192,350 Basic earnings (loss) per common share $ (0.06) $ 1.52 $ 0.00 $ 1.58 Diluted Net earnings (losses) allocated to common shareholders $ (418) $ 10,951 $ 21 $ 11,350 Weighted average common shares outstanding for basic earnings per common share 7,199,505 7,192,350 7,199,505 7,192,350 Dilutive effect of assumed exercise of average participating securities - 19,809 23,227 19,015 Average participating securities 140,205 90,015 132,977 76,872 Average common shares outstanding diluted 7,339,710 7,302,174 7,355,709 7,288,237 Diluted earnings (loss) per common share $ (0.06) $ 1.52 $ 0.00 $ 1.58 At September 30, 2016, 51,578 stock options were excluded from the diluted weighted average common share calculation for the three months ended September 30, 2016, due to the net loss for the quarter. There were 14,985 19,324 |
Stock Based Compensation
Stock Based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 9 Stock Based Compensation Compensation cost is recognized for restricted stock awards issued to employees and directors based on the fair value of these awards at the date of grant. The market price of the Company’s common shares at the date of grant is used to determine the fair value for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. Awards for 78,036 53,640 9,290 146,411 81,732 22,000 25,000 83,000 59,000 The Company’s outstanding stock options may be settled for cash at the recipient’s discretion; therefore, liability accounting applies to the Company’s 2004 Long-Term Stock Incentive Plan under which such stock options were granted. Compensation expense is recognized based on the fair value of these awards at the reporting date. A Black Scholes model is utilized to estimate the fair value of stock options at the date of grant and subsequent re-measurement dates. Compensation cost is recognized over the required service period, generally defined as the vesting period. The Company’s stock option awards contain terms that provide for a graded vesting schedule whereby portions of the award vest in increments over the requisite service period. Changes in fair value of the options between the vesting date and option expiration date are also recognized in the Consolidated Statement of Income. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Note 10 Subsequent Event On October 3, 2016, First Commonwealth Financial Corporation (“First Commonwealth”) and the Company announced that they had entered into a definitive merger agreement which provides for the merger of the Company with and into First Commonwealth following the satisfaction of certain closing conditions, including approval by the Company’s shareholders and approval by appropriate bank regulatory authorities (the “Merger”). Under the terms of the definitive merger agreement, which has been unanimously approved by the board of directors of both companies, the Company’s shareholders will be entitled to receive either 1.427 14.50 21,283,773 20 |
Summary of Significant Accoun19
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Earnings Per Share, Policy [Policy Text Block] | Earnings per Common Share Earnings per common share is computed using the two-class method. Basic earnings per common share is computed by dividing net income allocated to common shares by the weighted average number of common shares outstanding during the period which excludes the participating securities. All outstanding unvested restricted stock awards containing rights to non-forfeitable dividends are considered participating securities for this calculation. Diluted earnings per common share includes the dilutive effect of additional potential common shares from stock compensation awards, but excludes awards considered participating securities. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation Compensation cost is recognized for restricted stock awards issued to employees and directors based on the fair value of these awards at the date of grant. The market price of the Company’s common shares at the date of grant is used to determine the fair value for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. The Company’s outstanding stock options may be settled for cash at the recipient’s discretion; therefore, liability accounting applies to the Company’s 2004 Long-Term Stock Incentive Plan under which such stock options were granted. Compensation expense is recognized based on the fair value of these awards at the reporting date. A Black Scholes model is utilized to estimate the fair value of stock options at the date of grant and subsequent re-measurement dates. Compensation cost is recognized over the required service period, generally defined as the vesting period. The Company’s stock option awards contain terms that provide for a graded vesting schedule whereby portions of the award vest in increments over the requisite service period. Changes in fair value of the options between the vesting date and option expiration date are also recognized in the Consolidated Statement of Operations. |
Application Of Critical Accounting Policies [Policy Text Block] | Significant Accounting Estimates The Company’s consolidated financial statements are prepared in accordance with U.S. GAAP and follow general practices within the financial services industry. The application of these principles requires management to make estimates, assumptions, and judgments that affect the amounts reported in the financial statements and accompanying notes. These estimates, assumptions, and judgments are based on information available as of the date of the financial statements; as this information changes, the financial statements could reflect different estimates, assumptions, and judgments. The procedures for assessing the adequacy of the allowance for loan losses reflect the Company’s evaluation of credit risk after careful consideration of all information available to the Company. In developing this assessment, the Company must rely on estimates and exercise judgment regarding matters where the ultimate outcome is unknown, such as economic factors, developments affecting companies in specific industries and issues with respect to single borrowers. Depending on changes in circumstances, future assessments of credit risk may yield materially different results, which may require an increase or a decrease in the allowance for loan losses. The valuation of other assets requires that management utilize a variety of estimates and analysis to determine whether an asset is impaired or other-than-temporarily impaired (“OTTI”). After determining the appropriate methodology for fair value measurement, management then evaluates whether or not declines in fair value below book value are temporary or other-than-temporary impairments. When the Company does not intend to sell a debt security, and it is more likely than not that the Company will not have to sell the security before recovery of its cost basis, it recognizes the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. |
Loans Held For Sale [Policy Text Block] | Loans Loans are classified as held for investment when management has both the intent and ability to hold the loan for the foreseeable future, or until maturity or payoff. Management’s intent and view of the foreseeable future may change based on changes in business strategies, the economic environment, market conditions and the availability of government programs. Loans that are held for investment are reported at the principal balance outstanding, net of unearned interest, unamortized deferred loan fees and costs and the allowance for loan losses. Loans held for sale are carried at the lower of amortized cost or estimated fair value, determined on an aggregate basis for each type of loan. Net unrealized losses are recognized by charges to income. Interest income is accrued based on the unpaid principal balance and includes amortization of net deferred loan fees and costs over the loan term. Interest income on mortgage and commercial loans is discontinued at the time the loan is 90 days delinquent unless the credit is well secured and in process of collection. In all cases, loans are placed on non-accrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not received for loans placed on non-accrual status is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. When loans are transferred from held for investment to held for sale, specific reserves and allocated pooled reserves included in the allowance for loan and losses are reclassified to reduce the basis of the loans to the lower of cost or estimated fair value less cost to sell. |
Finance, Loans and Leases Receivable, Policy [Policy Text Block] | Allowance for Loan Losses The allowance for loan losses is a valuation allowance for probable but unconfirmed credit losses, increased by the provision for loan losses and decreased by charge-offs net of recoveries. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the required allowance balance based on past loan loss experience, augmented by additional estimates related to the nature and volume of the portfolio, information about specific borrower situations, estimated collateral values, economic conditions and other factors. The allowance consists of both specific and general components. The specific component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the collateral value or value of expected discounted cash flows of the impaired loan is lower than the carrying value of that loan. The general component covers non-classified loans and is based on historical charge-off experience and expected loss given default derived from the Bank’s internal risk rating process. Management utilizes an average of a three year historical loss period. Management has the ability to adjust these loss rates by utilizing risk ratings based on current period trends. If current period trends differ either positively or negatively from the given weighted historical loss rates, adjustments can be made. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risking rating data. Management also utilizes its assessment of general economic conditions, and other localized economic data to more fully support its loan loss estimates. General economic data may include: inflation rates, savings rates and national unemployment rates. Local data may include: unemployment rates, housing starts, real estate valuations, and other economic data specific to the Company’s market area. Though not specific to individual loans, these economic trends can have an impact on portfolio performance as a whole. Uncollectibility is usually determined based on a pre-determined number of days delinquent in the case of consumer loans, or, in the case of commercial loans, is based on a combination of factors including delinquency, collateral and other legal considerations. Consumer loans are charged-off prior to 120 180 Troubled debt restructuring of loans is undertaken to improve the likelihood that the loan will be repaid in full under the modified terms in accordance with a reasonable repayment schedule. All modified loans are evaluated to determine whether the loans should be reported as a Troubled Debt Restructuring (“TDR”). A loan is a TDR when the Company, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower by modifying or renewing a loan that the Company would not otherwise consider. To make this determination, the Company must determine whether (a) the borrower is experiencing financial difficulties and (b) the Company granted the borrower a concession. This determination requires consideration of all of the facts and circumstances surrounding the modification. An overall general decline in the economy or some deterioration in a borrower’s financial condition does not automatically mean the borrower is experiencing financial difficulties. |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company accounts for income taxes in accordance with income tax accounting guidance (ASC 740, Income Taxes). The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax basis of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred tax assets are reduced by a valuation allowance, if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances and information available at the reporting date and is subject to management’s judgment. The Company recognizes interest and penalties on income taxes, if applicable, as a component of income tax expense. The Company files consolidated income tax returns with its subsidiaries. |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements Recently Issued Accounting Standards In June 2016, the FASB issued ASU 2016-13, Financial Instruments Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) - A lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and - A right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. The Company is currently evaluating the effect the guidance will have on the Company’s consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) ASC 605, Revenue Recognition |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | The amortized cost and estimated fair values of securities available-for-sale were as follows at the dates indicated (in thousands): September 30, 2016 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value U.S. Government and agency obligations $ 27,282 $ 34 $ 19 $ 27,297 Corporate bonds 2,800 68 2 2,866 States and municipal obligations 20,501 738 13 21,226 Collateralized mortgage obligations 27,577 161 28 27,710 Mortgage-backed securities 15,510 570 - 16,080 Other equity securities 500 - 3 497 Total $ 94,170 $ 1,571 $ 65 $ 95,676 December 31, 2015 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value U.S. Government and agency obligations $ 20,904 $ 26 $ 88 $ 20,842 Corporate bonds 3,714 26 13 3,727 States and municipal obligations 21,954 388 81 22,261 Collateralized mortgage obligations 22,862 46 107 22,801 Mortgage-backed securities 17,702 505 41 18,166 Total $ 87,136 $ 991 $ 330 $ 87,797 |
Schedule of Temporary Impairment Losses, Investments [Table Text Block] | Securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at the dates indicated are as follows (dollars in thousands): September 30, 2016 (Less than 12 months) (12 months or longer) Total Number of Fair Unrealized Number of Fair Unrealized Number of Fair Unrealized Description of securities investments value losses investments value losses investments value losses U.S. Government and agency 11 $ 15,225 $ 19 - $ - $ - 11 $ 15,225 $ 19 Corporate bonds - - - 1 499 2 1 499 2 State and municipal obligations 3 1,158 13 - - - 3 1,158 13 Collateralized mortgage obligations 10 7,654 14 6 2,323 14 16 9,977 28 Mortgage-backed securities 1 1,234 - - - - 1 1,234 - Other equity securities 1 497 3 - - - 1 497 3 Total temporarily impaired securities 26 $ 25,768 $ 49 7 $ 2,822 $ 16 33 $ 28,590 $ 65 December 31, 2015 (Less than 12 months) (12 months or longer) Total Number of Fair Unrealized Number of Fair Unrealized Number of Fair Unrealized Description of securities investments value losses investments value losses investments value losses U.S. Government and agency 14 $ 15,333 $ 55 2 $ 1,964 $ 33 16 $ 17,297 $ 88 Corporate bonds 2 759 5 3 1,400 8 5 2,159 13 State and municipal obligations 9 3,902 48 4 1,355 33 13 5,257 81 Collateralized mortgage obligations 13 11,298 63 6 2,551 44 19 13,849 107 Mortgage-backed securities 5 5,176 41 - - - 5 5,176 41 Total temporarily impaired securities 43 $ 36,468 $ 212 15 $ 7,270 $ 118 58 $ 43,738 $ 330 |
Investments Classified by Contractual Maturity Date [Table Text Block] | Mortgage-backed securities are shown separately since they are not due at a single maturity date. Amortized Cost Fair Value Due in one year or less $ 3,726 $ 3,730 Due after one to five years 32,422 32,674 Due after five to ten years 10,835 11,214 Due after ten years 3,600 3,771 Mortgage-backed and related securities 43,587 44,287 Total $ 94,170 $ 95,676 |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Loans were comprised of the following at the dates indicated (in thousands): September 30, December 31, 2016 2015 Consumer and credit card $ 36,158 $ 40,587 Residential real estate and home equity 150,362 137,645 Commercial and industrial 104,108 99,213 Commercial real estate 99,505 100,743 390,133 378,188 Net deferred loan costs 617 325 Loans $ 390,750 $ 378,513 Allowance for loan losses (4,592 ) (4,333 ) Net loans $ 386,158 $ 374,180 |
Credit Quality (Tables)
Credit Quality (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Credit Quality [Abstract] | |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | The tables below summarize activity in the allowance for loan losses for the periods indicated (in thousands). Three months ended September 30, 2016 Consumer Residential and Real Estate Commercial Credit and Home and Commercial Card Equity Industrial Real Estate Unallocated Total Beginning balance $ 122 $ 544 $ 1,521 $ 2,140 $ 263 $ 4,590 Charge-offs (63) (3) (2) - - (68) Recoveries 23 12 23 12 - 70 Net (charge-offs) recoveries (40) 9 21 12 - 2 Provision 38 (24) (26) (71) 83 - Ending balance $ 120 $ 529 $ 1,516 $ 2,081 $ 346 $ 4,592 Nine months ended September 30, 2016 Consumer Residential and Real Estate Commercial Credit and Home and Commercial Card Equity Industrial Real Estate Unallocated Total Beginning balance $ 144 $ 561 $ 1,321 $ 1,999 $ 308 $ 4,333 Charge-offs (142) (12) (2) - - (156) Recoveries 56 35 240 84 - 415 Net (charge-offs) recoveries (86) 23 238 84 - 259 Provision 62 (55) (43) (2) 38 - Ending balance $ 120 $ 529 $ 1,516 $ 2,081 $ 346 $ 4,592 Three months ended September 30, 2015 Consumer Residential and Real Estate Commercial Credit and Home and Commercial Card Equity Industrial Real Estate Unallocated Total Beginning balance $ 172 $ 315 $ 1,035 $ 2,195 $ 447 $ 4,164 Charge-offs (63) - - - - (63) Recoveries 50 30 157 18 - 255 Net (charge-offs) recoveries (13) 30 157 18 - 192 Provision - 156 (63) (217) (26) (150) Ending balance $ 159 $ 501 $ 1,129 $ 1,996 $ 421 $ 4,206 Consumer Residential Commercial Commercial Unallocated Total Beginning balance $ 190 $ 268 $ 1,132 $ 2,376 $ 270 $ 4,236 Charge-offs (122) (73) (311) (64) - (570) Recoveries 109 97 297 37 - 540 Net charge-offs (13) 24 (14) (27) - (30) Provision (18) 209 11 (353) 151 - Ending balance $ 159 $ 501 $ 1,129 $ 1,996 $ 421 $ 4,206 |
Recorded investment, unpaid balance and related allowance [Table Text Block] | The following presents by class, information related to the Company’s impaired loans as of the dates indicated (in thousands). At September 30, 2016 Period ended September 30, 2016 Recorded Unpaid Related Three months Three months Nine months Nine months With no related allowance recorded: Consumer and credit card $ 282 $ 282 - $ 283 $ 5 $ 376 $ 14 Residential real estate and home equity 668 668 - 672 - 660 1 Commercial and industrial 572 572 - 579 5 862 16 Commercial real estate 2,284 2,284 - 2,292 19 842 19 3,806 3,806 - 3,826 29 2,740 50 With an allowance recorded: Commercial and industrial $ 1,545 $ 1,623 $ 344 $ 1,407 $ 17 $ 1,263 $ 46 Commercial real estate 4,831 4,831 581 4,841 56 4,751 168 6,376 6,454 925 6,248 73 6,014 214 Total: Consumer and credit card $ 282 $ 282 $ - $ 283 $ 5 $ 376 $ 14 Residential real estate and home equity 668 668 - 672 - 660 1 Commercial and industrial 2,117 2,195 344 1,986 22 2,125 62 Commercial real estate 7,115 7,115 581 7,133 75 5,593 187 Total $ 10,182 $ 10,260 $ 925 $ 10,074 $ 102 $ 8,754 $ 264 At December 31, 2015 Period ended September 30, 2015 Recorded Unpaid Related Three months Three months Nine months Nine months With no related allowance recorded: Consumer and credit card $ 548 $ 548 - $ 469 $ 7 $ 469 $ 19 Residential real estate and home equity 668 668 - 733 - 552 8 Commercial and industrial 926 926 - 914 5 1,106 21 Commercial real estate 126 126 - 451 2 468 2 2,268 2,268 - 2,567 14 2,595 50 With an allowance recorded: Commercial and industrial $ 944 $ 1,021 $ 144 $ 1,134 $ 13 $ 1,016 $ 43 Commercial real estate 4,579 4,579 435 6,706 53 7,727 163 5,523 5,600 579 7,840 66 8,743 206 Total: Consumer and credit card $ 548 $ 548 $ - $ 469 $ 7 $ 469 $ 19 Residential real estate and home equity 668 668 - 733 - 552 8 Commercial and industrial 1,870 1,947 144 2,048 18 2,122 64 Commercial real estate 4,705 4,705 435 7,157 55 8,195 165 Total $ 7,791 $ 7,868 $ 579 $ 10,407 $ 80 $ 11,338 $ 256 |
Allowance For Loan Losses On The Basis Of The Impairment Methodology [Table Text Block] | The allocation of the allowance for loan losses summarized on the basis of the Company’s impairment methodology was as follows at the dates indicated (in thousands): Residential Consumer Real Estate Commercial and Credit and Home and Commercial Card Equity Industrial Real Estate Total September 30, 2016 Individually evaluated for impairment $ - $ - $ 344 $ 581 $ 925 Collectively evaluated for impairment 120 529 1,172 1,500 3,321 Allocated $ 120 $ 529 $ 1,516 $ 2,081 4,246 Unallocated 346 $ 4,592 December 31, 2015 Individually evaluated for impairment $ - $ - $ 144 $ 435 $ 579 Collectively evaluated for impairment 144 561 1,177 1,564 3,446 Allocated $ 144 $ 561 $ 1,321 $ 1,999 4,025 Unallocated 308 $ 4,333 |
Recorded Investment In Loans On The Basis Of The Impairment Methodology [Table Text Block] | The recorded investment in loans summarized on the basis of the Company’s impairment methodology at the dates indicated was as follows (in thousands): Residential Consumer Real Estate Commercial and Credit and Home and Commercial Card Equity Industrial Real Estate Total September 30, 2016 Individually evaluated for impairment $ 282 $ 668 $ 2,117 $ 7,115 $ 10,182 Collectively evaluated for impairment 35,876 149,694 101,991 92,390 379,951 Ending balance $ 36,158 $ 150,362 $ 104,108 $ 99,505 $ 390,133 Residential Consumer Real Estate Commercial and Credit and Home and Commercial Card Equity Industrial Real Estate Total December 31, 2015 Individually evaluated for impairment $ 548 $ 668 $ 1,870 $ 4,705 $ 7,791 Collectively evaluated for impairment 40,039 136,977 97,343 96,038 370,397 Ending balance $ 40,587 $ 137,645 $ 99,213 $ 100,743 $ 378,188 |
Schedule of Financing Receivables, Non Accrual Status [Table Text Block] | Loans on non-accrual status were as follows at the dates indicated (in thousands): September 30, December 31, 2016 2015 Consumer and credit card $ - $ - Residential real estate and home equity 816 668 Commercial and industrial 236 554 Commercial real estate 2,315 - Total $ 3,367 $ 1,222 |
Financing Receivable Credit Quality Indicators [Table Text Block] | As of the dates indicated and based on the most recent analysis performed, the recorded investment by risk category and class of loans is as of the dates indicated (in thousands): September 30, 2016 December 31, 2015 Commercial Commercial Commercial Commercial and Industrial Real Estate and Industrial Real Estate Pass $ 101,331 $ 92,499 $ 96,225 $ 91,132 Special mention 1,200 4,374 925 4,592 Substandard 1,577 2,632 2,063 5,019 Total $ 104,108 $ 99,505 $ 99,213 $ 100,743 |
Consumer Risk [Table Text Block] | The following table presents the recorded investment in residential real estate and consumer loans based on payment activity as of the dates indicated (in thousands): September 30, 2016 December 31, 2015 Residential Residential Consumer and Real Estate and Consumer and Real Estate and Credit Card Home Equity Credit Card Home Equity Performing $ 36,158 $ 149,546 $ 40,587 $ 136,975 Non-performing - 816 - 670 Total $ 36,158 $ 150,362 $ 40,587 $ 137,645 |
Past Due Financing Receivables [Table Text Block] | The following tables present past due loans aged as of the dates indicated (in thousands). September 30, 2016 60-89 Days 90 Days or Loans 30-59 Days Past more Past Total Not Past Past Due Due Due Past Due Due Total Loans Consumer and credit card $ 103 $ 34 $ - $ 137 $ 36,021 $ 36,158 Residential real estate and home equity 72 89 434 595 149,767 150,362 Commercial and industrial 99 - 168 267 103,841 104,108 Commercial real estate - - 2,315 2,315 97,190 99,505 Total $ 274 $ 123 $ 2,917 $ 3,314 $ 386,819 $ 390,133 December 31, 2015 60-89 Days 90 Days or Loans 30-59 Days Past more Past Total Not Past Past Due Due Due Past Due Due Total Loans Consumer and credit card $ 48 $ 13 $ - $ 61 $ 40,526 $ 40,587 Residential real estate and home equity 160 98 401 659 136,986 137,645 Commercial and industrial 236 - - 236 98,977 99,213 Commercial real estate - - - - 100,743 100,743 Total $ 444 $ 111 $ 401 $ 956 $ 377,232 $ 378,188 |
Schedule of Debtor Troubled Debt Restructuring, Current Period [Table Text Block] | The following table summarizes troubled debt restructurings that occurred during the periods indicated (dollars in thousands): For the three months ended September 30, 2016 2015 Number of Recorded Investment Number of Recorded Investment Contracts (as of period end) Contracts (as of period end) Consumer and credit card - $ - 1 $ 188 Total - $ - 1 $ 188 For the nine months ended September 30, 2016 2015 Number of Recorded Investment Number of Recorded Investment Contracts (as of period end) Contracts (as of period end) Consumer and credit card - $ - 7 $ 279 Commercial real estate 4 392 - - Total 4 $ 392 7 $ 279 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | Based on the foregoing methods and assumptions, the carrying value and fair value of the Company’s financial instruments are as follows at the dates indicated (in thousands): September 30, 2016 Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 31,282 $ 31,282 $ 31,282 $ - $ - Securities available-for-sale 95,676 95,676 - 95,179 497 Loans held for sale 755 755 - 755 - Loans (net of allowance) 386,158 382,919 - - 382,919 FHLB stock 3,250 3,250 - 3,250 - Accrued interest receivable 1,383 1,383 - - 1,383 Financial liabilities Non-interest-bearing deposits $ 123,353 $ 123,353 $ - $ 123,353 $ - Interest-bearing deposits 366,195 366,187 - 366,187 - Borrowings 4,293 4,293 - 4,293 - Accrued interest payable 65 65 - - 65 December 31, 2015 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 31,892 $ 31,892 $ 31,892 $ - $ - Securities available-for-sale 87,797 87,797 - 87,797 - Loans (net of allowance) 374,180 371,930 - - 371,930 FHLB stock 3,250 3,250 - 3,250 - Accrued interest receivable 1,307 1,307 - - 1,307 Financial liabilities Non-interest-bearing deposits $ 124,023 $ 124,023 $ - $ 124,023 $ - Interest-bearing deposits 350,514 350,957 - 350,957 - Borrowings 4,520 4,520 - 4,520 - Accrued interest payable 74 74 - - 74 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The following table presents the fair value measurements of assets recognized in the accompanying balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at the dates indicated (in thousands): September 30, 2016 Fair Value Measurements Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Fair Value (Level 1) (Level 2) (Level 3) U.S. Government and agency obligations $ 27,297 $ - $ 27,297 $ - Corporate bonds 2,866 - 2,866 - State and municipal obligations 21,226 - 21,226 - Collateralized mortgage obligations 27,710 - 27,710 - Mortgage-backed securities 16,080 - 16,080 - Other equity securities 497 - - 497 Total $ 95,676 $ - $ 95,179 $ 497 December 31, 2015 Fair Value Measurements Using Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) U.S. Government and agency obligations $ 20,842 $ - $ 20,842 $ - Corporate bonds 3,727 - 3,727 - State and municipal obligations 22,261 - 22,261 - Collateralized mortgage obligations 22,801 - 22,801 - Mortgage-backed securities 18,166 - 18,166 - Total $ 87,797 $ - $ 87,797 $ - |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | The following table presents the fair value measurements of assets measured at fair value on a non-recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at the dates indicated (in thousands). September 30, 2016 Fair Value Measurements Using Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Fair Value (Level 1) (Level 2 ) (Level 3) Impaired loans $ 10,182 $ - $ - $ 10,182 Real estate owned 68 - - 68 December 31, 2015 Fair Value Measurements Using Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Fair Value (Level 1) (Level 2 ) (Level 3) Impaired loans $ 7,791 $ - $ - $ 7,791 Real estate owned 68 - - 68 |
Sale-Leaseback and Capital Le24
Sale-Leaseback and Capital Lease Obligation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Leases [Abstract] | |
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | The future minimum lease payments under capital leases are as follows (in thousands): 2016 $ 161 2017 655 2018 668 2019 682 2020 695 Thereafter 7,798 Total minimum lease payments 10,659 Less amounts representing interest 2,643 Present value of net minimum lease payments $ 8,016 |
Federal Income Taxes (Tables)
Federal Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The Company files income tax returns in the U.S. federal jurisdiction and franchise tax returns in Ohio. Income tax benefit for the dates indicated include the following components (in thousands): Three months ended Nine months ended September 30, September 30, 2016 2015 2016 2015 Current $ (11) $ - $ 73 $ - Deferred (179) 96 (306) 96 Valuation allowance - (10,784) - (10,784) Total $ (190) $ (10,688) $ (233) $ (10,688) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The difference between the financial statement tax provision and amounts computed by applying the statutory federal income tax rate to income before income taxes was as follows (in thousands): Three months ended Nine months ended September 30, September 30, 2016 2015 2016 2015 Federal income taxes calculated at the expected statutory rate $ (209) $ 136 $ (72) $ 266 Increase (decrease) in taxes resulting from: Nontaxable dividend and interest income (30) (29) (71) (70) Increase in cash surrender value of life insurance - net (55) (56) (193) (194) Nondeductible acquisition costs 98 - 98 - Other 6 45 5 94 Valuation allowance - (10,784) - (10,784) Income tax benefit per financial statements $ (190) $ (10,688) $ (233) $ (10,688) |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Deferred tax assets and liabilities were comprised of the following at the dates indicated (in thousands): September 30, 2016 December 31, 2015 Deferred tax assets: Allowance for loan losses $ 1,561 $ 1,473 Deferred compensation 308 300 Alternative minimum tax carry forward 212 155 Expenses on foreclosed property - 14 Deferred gain on sale of building 1,009 - NOL carry forward 8,258 9,020 Other 307 98 Subtotal 11,655 11,060 Deferred tax liabilities: FHLB stock dividends (307) (307) Unrealized gains on available-for-sale securities (512) (225) Depreciation (55) (55) Other (314) (33) Subtotal (1,188) (620) Net deferred tax asset 10,467 10,440 Less: valuation allowance - - Total $ 10,467 $ 10,440 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Basic and diluted net income per common share calculations for the three and nine months ended September 30 are as follows (in thousands, except share and per share amounts): follows (in thousands, except share and per share amounts): Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 Basic Net income (loss) $ (426) $ 11,088 $ 21 $ 11,471 Less: undistributed earnings allocated to unvested restricted shares (8) 137 - 121 Net earnings (losses) allocated to common shareholders $ (418) $ 10,951 $ 21 $ 11,350 Weighted average common shares outstanding including shares considered participating securities 7,339,710 7,282,365 7,332,482 7,269,222 Less: average participating securities (140,205) (90,015) (132,977) (76,872) Weighted average shares 7,199,505 7,192,350 7,199,505 7,192,350 Basic earnings (loss) per common share $ (0.06) $ 1.52 $ 0.00 $ 1.58 Diluted Net earnings (losses) allocated to common shareholders $ (418) $ 10,951 $ 21 $ 11,350 Weighted average common shares outstanding for basic earnings per common share 7,199,505 7,192,350 7,199,505 7,192,350 Dilutive effect of assumed exercise of average participating securities - 19,809 23,227 19,015 Average participating securities 140,205 90,015 132,977 76,872 Average common shares outstanding diluted 7,339,710 7,302,174 7,355,709 7,288,237 Diluted earnings (loss) per common share $ (0.06) $ 1.52 $ 0.00 $ 1.58 |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Details Textual) | 9 Months Ended |
Sep. 30, 2016 | |
Summary of Significant Accounting Policies | |
Consumer Loans Charged Off Delinquency Period | 120 days |
Mortgage Loans Charge Off Delinquency Period | 180 days |
Securities (Details)
Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair values of securities available-for-sale | ||
Amortized Cost | $ 94,170 | $ 87,136 |
Gross Unrealized Gains | 1,571 | 991 |
Gross Unrealized Losses | 65 | 330 |
Fair Value | 95,676 | 87,797 |
Collateralized mortgage obligations [Member] | ||
Fair values of securities available-for-sale | ||
Amortized Cost | 27,577 | 22,862 |
Gross Unrealized Gains | 161 | 46 |
Gross Unrealized Losses | 28 | 107 |
Fair Value | 27,710 | 22,801 |
Other Equity Securities [Member] | ||
Fair values of securities available-for-sale | ||
Amortized Cost | 500 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 3 | |
Fair Value | 497 | |
U.S. Government and agency obligations [Member] | ||
Fair values of securities available-for-sale | ||
Amortized Cost | 27,282 | 20,904 |
Gross Unrealized Gains | 34 | 26 |
Gross Unrealized Losses | 19 | 88 |
Fair Value | 27,297 | 20,842 |
Corporate bonds [Member] | ||
Fair values of securities available-for-sale | ||
Amortized Cost | 2,800 | 3,714 |
Gross Unrealized Gains | 68 | 26 |
Gross Unrealized Losses | 2 | 13 |
Fair Value | 2,866 | 3,727 |
States and municipal obligations [Member] | ||
Fair values of securities available-for-sale | ||
Amortized Cost | 20,501 | 21,954 |
Gross Unrealized Gains | 738 | 388 |
Gross Unrealized Losses | 13 | 81 |
Fair Value | 21,226 | 22,261 |
Mortgage-backed securities [Member] | ||
Fair values of securities available-for-sale | ||
Amortized Cost | 15,510 | 17,702 |
Gross Unrealized Gains | 570 | 505 |
Gross Unrealized Losses | 0 | 41 |
Fair Value | $ 16,080 | $ 18,166 |
Securities (Details 1)
Securities (Details 1) $ in Thousands | Sep. 30, 2016USD ($) | Dec. 31, 2015USD ($) |
Unrealized loss | ||
Number of investments | 33 | 58 |
Fair Value | $ 28,590 | $ 43,738 |
Unrealized Losses | $ 65 | $ 330 |
Collateralized mortgage obligations [Member] | ||
Unrealized loss | ||
Number of investments | 16 | 19 |
Fair Value | $ 9,977 | $ 13,849 |
Unrealized Losses | $ 28 | $ 107 |
Less than 12 months [Member] | ||
Unrealized loss | ||
Number of investments | 26 | 43 |
Fair Value | $ 25,768 | $ 36,468 |
Unrealized Losses | $ 49 | $ 212 |
Less than 12 months [Member] | Collateralized mortgage obligations [Member] | ||
Unrealized loss | ||
Number of investments | 10 | 13 |
Fair Value | $ 7,654 | $ 11,298 |
Unrealized Losses | $ 14 | $ 63 |
12 months or longer [Member] | ||
Unrealized loss | ||
Number of investments | 7 | 15 |
Fair value | $ 2,822 | $ 7,270 |
Unrealized Losses | $ 16 | $ 118 |
12 months or longer [Member] | Collateralized mortgage obligations [Member] | ||
Unrealized loss | ||
Number of investments | 6 | 6 |
Fair value | $ 2,323 | $ 2,551 |
Unrealized Losses | $ 14 | $ 44 |
U.S. Government and agency obligations [Member] | ||
Unrealized loss | ||
Number of investments | 11 | 16 |
Fair Value | $ 15,225 | $ 17,297 |
Unrealized Losses | $ 19 | $ 88 |
U.S. Government and agency obligations [Member] | Less than 12 months [Member] | ||
Unrealized loss | ||
Number of investments | 11 | 14 |
Fair Value | $ 15,225 | $ 15,333 |
Unrealized Losses | $ 19 | $ 55 |
U.S. Government and agency obligations [Member] | 12 months or longer [Member] | ||
Unrealized loss | ||
Number of investments | 0 | 2 |
Fair value | $ 0 | $ 1,964 |
Unrealized Losses | $ 0 | $ 33 |
Corporate bonds [Member] | ||
Unrealized loss | ||
Number of investments | 1 | 5 |
Fair Value | $ 499 | $ 2,159 |
Unrealized Losses | $ 2 | $ 13 |
Corporate bonds [Member] | Less than 12 months [Member] | ||
Unrealized loss | ||
Number of investments | 0 | 2 |
Fair Value | $ 0 | $ 759 |
Unrealized Losses | $ 0 | $ 5 |
Corporate bonds [Member] | 12 months or longer [Member] | ||
Unrealized loss | ||
Number of investments | 1 | 3 |
Fair value | $ 499 | $ 1,400 |
Unrealized Losses | $ 2 | $ 8 |
State and municipal obligations [Member] | ||
Unrealized loss | ||
Number of investments | 3 | 13 |
Fair Value | $ 1,158 | $ 5,257 |
Unrealized Losses | $ 13 | $ 81 |
State and municipal obligations [Member] | Less than 12 months [Member] | ||
Unrealized loss | ||
Number of investments | 3 | 9 |
Fair Value | $ 1,158 | $ 3,902 |
Unrealized Losses | $ 13 | $ 48 |
State and municipal obligations [Member] | 12 months or longer [Member] | ||
Unrealized loss | ||
Number of investments | 0 | 4 |
Fair value | $ 0 | $ 1,355 |
Unrealized Losses | $ 0 | $ 33 |
Mortgage-backed securities and other [Member] | ||
Unrealized loss | ||
Number of investments | 1 | 5 |
Fair Value | $ 1,234 | $ 5,176 |
Unrealized Losses | $ 0 | $ 41 |
Mortgage-backed securities and other [Member] | Less than 12 months [Member] | ||
Unrealized loss | ||
Number of investments | 1 | 5 |
Fair Value | $ 1,234 | $ 5,176 |
Unrealized Losses | $ 0 | $ 41 |
Mortgage-backed securities and other [Member] | 12 months or longer [Member] | ||
Unrealized loss | ||
Number of investments | 0 | 0 |
Fair value | $ 0 | $ 0 |
Unrealized Losses | $ 0 | $ 0 |
Other Equity Securities [Member] | ||
Unrealized loss | ||
Number of investments | 1 | |
Fair Value | $ 497 | |
Unrealized Losses | $ 3 | |
Other Equity Securities [Member] | Less than 12 months [Member] | ||
Unrealized loss | ||
Number of investments | 1 | |
Fair Value | $ 497 | |
Unrealized Losses | $ 3 | |
Other Equity Securities [Member] | 12 months or longer [Member] | ||
Unrealized loss | ||
Number of investments | 0 | |
Fair value | $ 0 | |
Unrealized Losses | $ 0 |
Securities (Details 2)
Securities (Details 2) $ in Thousands | Sep. 30, 2016USD ($) |
Amortized cost and estimated fair value of all debt securities | |
Available-for-sale, Amortized Cost, Due in one year or less | $ 3,726 |
Available-for-sale, Amortized Cost, Due after one to five years | 32,422 |
Available-for-sale, Amortized Cost, Due after five to ten years | 10,835 |
Available-for-sale, Amortized Cost, Due after ten years | 3,600 |
Available-for-sale, Amortized Cost, Mortgage-backed and related securities | 43,587 |
Available-for-sale, Amortized Cost, Total | 94,170 |
Available-for-sale, Fair Value, Due in one year or less | 3,730 |
Available-for-sale, Fair Value, Due after one to five years | 32,674 |
Available-for-sale, Fair Value, Due after five to ten years | 11,214 |
Available-for-sale, Fair Value, Fair value, Due after ten years | 3,771 |
Available-for-sale, Fair Value, Mortgage-backed and related securities | 44,287 |
Available-for-sale, Fair Value, Total | $ 95,676 |
Securities (Details Textual)
Securities (Details Textual) $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | |
Investment From Same Issuer As Percentage Of Equity Maximum | 10.00% |
Pledged Assets Separately Reported, Securities Pledged as Collateral, at Fair Value, Total | $ 75.6 |
Loans (Details)
Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Loans | ||||||
Consumer and credit card | $ 36,158 | $ 40,587 | ||||
Residential real estate and home equity | 150,362 | 137,645 | ||||
Commercial and industrial | 104,108 | 99,213 | ||||
Commercial real estate | 99,505 | 100,743 | ||||
Subtotal | 390,133 | 378,188 | ||||
Net deferred loan costs | 617 | 325 | ||||
Loans | 390,750 | 378,513 | ||||
Allowance for loan losses | (4,592) | $ (4,590) | (4,333) | $ (4,206) | $ (4,164) | $ (4,236) |
Net loans | $ 386,158 | $ 374,180 |
Credit Quality (Details)
Credit Quality (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Allowance allocated to: | ||||
Beginning balance | $ 4,590 | $ 4,164 | $ 4,333 | $ 4,236 |
Charge-offs | (68) | (63) | (156) | (570) |
Recoveries | 70 | 255 | 415 | 540 |
Net (charge-offs) recoveries | 2 | 192 | 259 | (30) |
Provision | 0 | (150) | 0 | 0 |
Ending balance | 4,592 | 4,206 | 4,592 | 4,206 |
Consumer and Credit Card [Member] | ||||
Allowance allocated to: | ||||
Beginning balance | 122 | 172 | 144 | 190 |
Charge-offs | (63) | (63) | (142) | (122) |
Recoveries | 23 | 50 | 56 | 109 |
Net (charge-offs) recoveries | (40) | (13) | (86) | (13) |
Provision | 38 | 0 | 62 | (18) |
Ending balance | 120 | 159 | 120 | 159 |
Residential Real Estate and Home Equity [Member] | ||||
Allowance allocated to: | ||||
Beginning balance | 544 | 315 | 561 | 268 |
Charge-offs | (3) | 0 | (12) | (73) |
Recoveries | 12 | 30 | 35 | 97 |
Net (charge-offs) recoveries | 9 | 30 | 23 | 24 |
Provision | (24) | 156 | (55) | 209 |
Ending balance | 529 | 501 | 529 | 501 |
Commercial and Industrial [Member] | ||||
Allowance allocated to: | ||||
Beginning balance | 1,521 | 1,035 | 1,321 | 1,132 |
Charge-offs | (2) | 0 | (2) | (311) |
Recoveries | 23 | 157 | 240 | 297 |
Net (charge-offs) recoveries | 21 | 157 | 238 | (14) |
Provision | (26) | (63) | (43) | 11 |
Ending balance | 1,516 | 1,129 | 1,516 | 1,129 |
Commercial Real Estate [Member] | ||||
Allowance allocated to: | ||||
Beginning balance | 2,140 | 2,195 | 1,999 | 2,376 |
Charge-offs | 0 | 0 | 0 | (64) |
Recoveries | 12 | 18 | 84 | 37 |
Net (charge-offs) recoveries | 12 | 18 | 84 | (27) |
Provision | (71) | (217) | (2) | (353) |
Ending balance | 2,081 | 1,996 | 2,081 | 1,996 |
Unallocated Financing Receivables [Member] | ||||
Allowance allocated to: | ||||
Beginning balance | 263 | 447 | 308 | 270 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Net (charge-offs) recoveries | 0 | 0 | 0 | 0 |
Provision | 83 | (26) | 38 | 151 |
Ending balance | $ 346 | $ 421 | $ 346 | $ 421 |
Credit Quality (Details 1)
Credit Quality (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Impaired Loans | |||||
Recorded Investment | $ 10,182 | $ 10,182 | $ 7,791 | ||
Unpaid Principal Balance | 10,260 | 10,260 | 7,868 | ||
Related Allowance | 925 | 925 | 579 | ||
Average Recorded Investment | 10,074 | $ 10,407 | 8,754 | $ 11,338 | |
Interest Income Recognized | 102 | 80 | 264 | 256 | |
Consumer and credit card [Member] | |||||
Impaired Loans | |||||
Recorded Investment | 282 | 282 | 548 | ||
Unpaid Principal Balance | 282 | 282 | 548 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 283 | 469 | 376 | 469 | |
Interest Income Recognized | 5 | 7 | 14 | 19 | |
Residential Real Estate and Home Equity [Member] | |||||
Impaired Loans | |||||
Recorded Investment | 668 | 668 | 668 | ||
Unpaid Principal Balance | 668 | 668 | 668 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 672 | 733 | 660 | 552 | |
Interest Income Recognized | 0 | 0 | 1 | 8 | |
Commercial and industrial [Member] | |||||
Impaired Loans | |||||
Recorded Investment | 2,117 | 2,117 | 1,870 | ||
Unpaid Principal Balance | 2,195 | 2,195 | 1,947 | ||
Related Allowance | 344 | 344 | 144 | ||
Average Recorded Investment | 1,986 | 2,048 | 2,125 | 2,122 | |
Interest Income Recognized | 22 | 18 | 62 | 64 | |
Commercial real estate [Member] | |||||
Impaired Loans | |||||
Recorded Investment | 7,115 | 7,115 | 4,705 | ||
Unpaid Principal Balance | 7,115 | 7,115 | 4,705 | ||
Related Allowance | 581 | 581 | 435 | ||
Average Recorded Investment | 7,133 | 7,157 | 5,593 | 8,195 | |
Interest Income Recognized | 75 | 55 | 187 | 165 | |
With no related allowance recorded [Member] | |||||
Impaired Loans | |||||
Recorded Investment | 3,806 | 3,806 | 2,268 | ||
Unpaid Principal Balance | 3,806 | 3,806 | 2,268 | ||
Average Recorded Investment | 3,826 | 2,567 | 2,740 | 2,595 | |
Interest Income Recognized | 29 | 14 | 50 | 50 | |
With no related allowance recorded [Member] | Consumer and credit card [Member] | |||||
Impaired Loans | |||||
Recorded Investment | 282 | 282 | 548 | ||
Unpaid Principal Balance | 282 | 282 | 548 | ||
Average Recorded Investment | 283 | 469 | 376 | 469 | |
Interest Income Recognized | 5 | 7 | 14 | 19 | |
With no related allowance recorded [Member] | Residential Real Estate and Home Equity [Member] | |||||
Impaired Loans | |||||
Recorded Investment | 668 | 668 | 668 | ||
Unpaid Principal Balance | 668 | 668 | 668 | ||
Average Recorded Investment | 672 | 733 | 660 | 552 | |
Interest Income Recognized | 0 | 0 | 1 | 8 | |
With no related allowance recorded [Member] | Commercial and industrial [Member] | |||||
Impaired Loans | |||||
Recorded Investment | 572 | 572 | 926 | ||
Unpaid Principal Balance | 572 | 572 | 926 | ||
Average Recorded Investment | 579 | 914 | 862 | 1,106 | |
Interest Income Recognized | 5 | 5 | 16 | 21 | |
With no related allowance recorded [Member] | Commercial real estate [Member] | |||||
Impaired Loans | |||||
Recorded Investment | 2,284 | 2,284 | 126 | ||
Unpaid Principal Balance | 2,284 | 2,284 | 126 | ||
Average Recorded Investment | 2,292 | 451 | 842 | 468 | |
Interest Income Recognized | 19 | 2 | 19 | 2 | |
With allowance recorded [Member] | |||||
Impaired Loans | |||||
Recorded Investment | 6,376 | 6,376 | 5,523 | ||
Unpaid Principal Balance | 6,454 | 6,454 | 5,600 | ||
Related Allowance | 925 | 925 | 579 | ||
Average Recorded Investment | 6,248 | 7,840 | 6,014 | 8,743 | |
Interest Income Recognized | 73 | 66 | 214 | 206 | |
With allowance recorded [Member] | Commercial and industrial [Member] | |||||
Impaired Loans | |||||
Recorded Investment | 1,545 | 1,545 | 944 | ||
Unpaid Principal Balance | 1,623 | 1,623 | 1,021 | ||
Related Allowance | 344 | 344 | 144 | ||
Average Recorded Investment | 1,407 | 1,134 | 1,263 | 1,016 | |
Interest Income Recognized | 17 | 13 | 46 | 43 | |
With allowance recorded [Member] | Commercial real estate [Member] | |||||
Impaired Loans | |||||
Recorded Investment | 4,831 | 4,831 | 4,579 | ||
Unpaid Principal Balance | 4,831 | 4,831 | 4,579 | ||
Related Allowance | 581 | 581 | $ 435 | ||
Average Recorded Investment | 4,841 | 6,706 | 4,751 | 7,727 | |
Interest Income Recognized | $ 56 | $ 53 | $ 168 | $ 163 |
Credit Quality (Details 2)
Credit Quality (Details 2) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Allocation Of The Allowance For Loan Losses | ||||||
Loans and Leases Receivable, Allowance | $ 4,592 | $ 4,590 | $ 4,333 | $ 4,206 | $ 4,164 | $ 4,236 |
Recorded Investment In Loans | ||||||
Individually evaluated for impairment | 10,182 | 7,791 | ||||
Collectively evaluated for impairment | 379,951 | 370,397 | ||||
Ending balance | 390,133 | 378,188 | ||||
Allocated Financing Receivables [Member] | ||||||
Allocation Of The Allowance For Loan Losses | ||||||
Individually evaluated for impairment | 925 | 579 | ||||
Collectively evaluated for impairment | 3,321 | 3,446 | ||||
Loans and Leases Receivable, Allowance | 4,246 | 4,025 | ||||
Unallocated Financing Receivables [Member] | ||||||
Allocation Of The Allowance For Loan Losses | ||||||
Loans and Leases Receivable, Allowance | 346 | 308 | ||||
Consumer and Credit Card [Member] | ||||||
Allocation Of The Allowance For Loan Losses | ||||||
Loans and Leases Receivable, Allowance | 120 | 122 | 144 | 159 | 172 | 190 |
Recorded Investment In Loans | ||||||
Individually evaluated for impairment | 282 | 548 | ||||
Collectively evaluated for impairment | 35,876 | 40,039 | ||||
Ending balance | 36,158 | 40,587 | ||||
Consumer and Credit Card [Member] | Allocated Financing Receivables [Member] | ||||||
Allocation Of The Allowance For Loan Losses | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 120 | 144 | ||||
Loans and Leases Receivable, Allowance | 120 | 144 | ||||
Residential Portfolio Segment [Member] | ||||||
Allocation Of The Allowance For Loan Losses | ||||||
Loans and Leases Receivable, Allowance | 529 | 544 | 561 | 501 | 315 | 268 |
Recorded Investment In Loans | ||||||
Individually evaluated for impairment | 668 | 668 | ||||
Collectively evaluated for impairment | 149,694 | 136,977 | ||||
Ending balance | 150,362 | 137,645 | ||||
Residential Portfolio Segment [Member] | Allocated Financing Receivables [Member] | ||||||
Allocation Of The Allowance For Loan Losses | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 529 | 561 | ||||
Loans and Leases Receivable, Allowance | 529 | 561 | ||||
Commercial and Industrial [Member] | ||||||
Allocation Of The Allowance For Loan Losses | ||||||
Loans and Leases Receivable, Allowance | 1,516 | 1,521 | 1,321 | 1,129 | 1,035 | 1,132 |
Recorded Investment In Loans | ||||||
Individually evaluated for impairment | 2,117 | 1,870 | ||||
Collectively evaluated for impairment | 101,991 | 97,343 | ||||
Ending balance | 104,108 | 99,213 | ||||
Commercial and Industrial [Member] | Allocated Financing Receivables [Member] | ||||||
Allocation Of The Allowance For Loan Losses | ||||||
Individually evaluated for impairment | 344 | 144 | ||||
Collectively evaluated for impairment | 1,172 | 1,177 | ||||
Loans and Leases Receivable, Allowance | 1,516 | 1,321 | ||||
Commercial Real Estate Portfolio Segment [Member] | ||||||
Allocation Of The Allowance For Loan Losses | ||||||
Loans and Leases Receivable, Allowance | 2,081 | $ 2,140 | 1,999 | $ 1,996 | $ 2,195 | $ 2,376 |
Recorded Investment In Loans | ||||||
Individually evaluated for impairment | 7,115 | 4,705 | ||||
Collectively evaluated for impairment | 92,390 | 96,038 | ||||
Ending balance | 99,505 | 100,743 | ||||
Commercial Real Estate Portfolio Segment [Member] | Allocated Financing Receivables [Member] | ||||||
Allocation Of The Allowance For Loan Losses | ||||||
Individually evaluated for impairment | 581 | 435 | ||||
Collectively evaluated for impairment | 1,500 | 1,564 | ||||
Loans and Leases Receivable, Allowance | $ 2,081 | $ 1,999 |
Credit Quality (Details 3)
Credit Quality (Details 3) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans on nonaccrual status | $ 3,367 | $ 1,222 |
Consumer and credit card [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans on nonaccrual status | 0 | 0 |
Residential real estate and home equity [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans on nonaccrual status | 816 | 668 |
Commercial and industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans on nonaccrual status | 236 | 554 |
Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans on nonaccrual status | $ 2,315 | $ 0 |
Credit Quality (Details 4)
Credit Quality (Details 4) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Credit Quality Indicators | ||
Loans | $ 390,750 | $ 378,513 |
Commercial and Industrial [Member] | ||
Credit Quality Indicators | ||
Loans | 104,108 | 99,213 |
Commercial and Industrial [Member] | Pass [Member] | ||
Credit Quality Indicators | ||
Loans | 101,331 | 96,225 |
Commercial and Industrial [Member] | Special Mention [Member] | ||
Credit Quality Indicators | ||
Loans | 1,200 | 925 |
Commercial and Industrial [Member] | Substandard [Member] | ||
Credit Quality Indicators | ||
Loans | 1,577 | 2,063 |
Commercial Real Estate [Member] | ||
Credit Quality Indicators | ||
Loans | 99,505 | 100,743 |
Commercial Real Estate [Member] | Pass [Member] | ||
Credit Quality Indicators | ||
Loans | 92,499 | 91,132 |
Commercial Real Estate [Member] | Special Mention [Member] | ||
Credit Quality Indicators | ||
Loans | 4,374 | 4,592 |
Commercial Real Estate [Member] | Substandard [Member] | ||
Credit Quality Indicators | ||
Loans | $ 2,632 | $ 5,019 |
Credit Quality (Details 5)
Credit Quality (Details 5) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Credit Quality Indicators | ||
Consumer risk based on payment activity | $ 390,750 | $ 378,513 |
Consumer and Credit Card [Member] | ||
Credit Quality Indicators | ||
Consumer risk based on payment activity | 36,158 | 40,587 |
Consumer and Credit Card [Member] | Performing [Member] | ||
Credit Quality Indicators | ||
Consumer risk based on payment activity | 36,158 | 40,587 |
Consumer and Credit Card [Member] | Non-Performing [Member] | ||
Credit Quality Indicators | ||
Consumer risk based on payment activity | 0 | 0 |
Residential Real Estate and Home Equity [Member] | ||
Credit Quality Indicators | ||
Consumer risk based on payment activity | 150,362 | 137,645 |
Residential Real Estate and Home Equity [Member] | Performing [Member] | ||
Credit Quality Indicators | ||
Consumer risk based on payment activity | 149,546 | 136,975 |
Residential Real Estate and Home Equity [Member] | Non-Performing [Member] | ||
Credit Quality Indicators | ||
Consumer risk based on payment activity | $ 816 | $ 670 |
Credit Quality (Details 6)
Credit Quality (Details 6) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | $ 3,314 | $ 956 |
Financing Receivable, Recorded Investment, Current | 386,819 | 377,232 |
Financing Receivable, Recorded Investment, Subtotal | 390,133 | 378,188 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 274 | 444 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 123 | 111 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 2,917 | 401 |
Consumer and credit card [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 137 | 61 |
Financing Receivable, Recorded Investment, Current | 36,021 | 40,526 |
Financing Receivable, Recorded Investment, Subtotal | 36,158 | 40,587 |
Consumer and credit card [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 103 | 48 |
Consumer and credit card [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 34 | 13 |
Consumer and credit card [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Residential Real Estate and Home Equity [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 595 | 659 |
Financing Receivable, Recorded Investment, Current | 149,767 | 136,986 |
Financing Receivable, Recorded Investment, Subtotal | 150,362 | 137,645 |
Residential Real Estate and Home Equity [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 72 | 160 |
Residential Real Estate and Home Equity [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 89 | 98 |
Residential Real Estate and Home Equity [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 434 | 401 |
Commercial and industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 267 | 236 |
Financing Receivable, Recorded Investment, Current | 103,841 | 98,977 |
Financing Receivable, Recorded Investment, Subtotal | 104,108 | 99,213 |
Commercial and industrial [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 99 | 236 |
Commercial and industrial [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Commercial and industrial [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 168 | 0 |
Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 2,315 | 0 |
Financing Receivable, Recorded Investment, Current | 97,190 | 100,743 |
Financing Receivable, Recorded Investment, Subtotal | 99,505 | 100,743 |
Commercial real estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Commercial real estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Commercial real estate [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | $ 2,315 | $ 0 |
Credit Quality (Details 7)
Credit Quality (Details 7) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016USD ($)contractsContracts | Sep. 30, 2015USD ($)contractsContracts | Sep. 30, 2016USD ($)contractsContracts | Sep. 30, 2015USD ($)contractsContracts | |
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contracts | 0 | 1 | 4 | 7 |
Recorded Investment | $ 0 | $ 188 | $ 392 | $ 279 |
Consumer and credit card [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | Contracts | 0 | 1 | 0 | 7 |
Recorded Investment | $ 0 | $ 188 | $ 0 | $ 279 |
Commercial real estate [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contracts | 4 | 0 | ||
Recorded Investment | $ 392 | $ 0 |
Credit Quality (Details Textual
Credit Quality (Details Textual) | Sep. 30, 2016USD ($) |
Financing Receivable, Modifications [Line Items] | |
Commercial And Commercial Real Estate Loan Relationships Internal Risk Grade Based Limit | $ 250,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Financial assets | ||||
Cash and cash equivalents | $ 31,282 | $ 31,892 | $ 35,031 | $ 21,274 |
Securities available-for-sale | 95,676 | 87,797 | ||
Loans held for sale | 755 | 0 | ||
Loans (net of allowance) | 386,158 | 374,180 | ||
FHLB stock | 3,250 | 3,250 | ||
Financial liabilities | ||||
Non-interest-bearing deposits | 123,353 | 124,023 | ||
Interest bearing | 366,195 | 350,514 | ||
Level 1 [Member] | ||||
Financial assets | ||||
Securities available-for-sale | 0 | 0 | ||
Loans held for sale | 0 | |||
Cash and cash equivalents, Fair value | 31,282 | 31,892 | ||
Securities available-for-sale, Fair value | 0 | 0 | ||
Loans (net of allowance), Fair value | 0 | 0 | ||
FHLB stock, Fair value | 0 | 0 | ||
Accrued interest receivable, Fair value | 0 | 0 | ||
Financial liabilities | ||||
Noninterest-bearing deposits, Fair value | 0 | 0 | ||
Interest-bearing deposits, Fair value | 0 | 0 | ||
Borrowings, Fair value | 0 | 0 | ||
Accrued interest payable, Fair value | 0 | 0 | ||
Level 2 [Member] | ||||
Financial assets | ||||
Securities available-for-sale | 95,179 | 87,797 | ||
Loans held for sale | 755 | |||
Cash and cash equivalents, Fair value | 0 | 0 | ||
Securities available-for-sale, Fair value | 95,179 | 87,797 | ||
Loans (net of allowance), Fair value | 0 | 0 | ||
FHLB stock, Fair value | 3,250 | 3,250 | ||
Accrued interest receivable, Fair value | 0 | 0 | ||
Financial liabilities | ||||
Noninterest-bearing deposits, Fair value | 123,353 | 124,023 | ||
Interest-bearing deposits, Fair value | 366,187 | 350,957 | ||
Borrowings, Fair value | 4,293 | 4,520 | ||
Accrued interest payable, Fair value | 0 | 0 | ||
Level 3 [Member] | ||||
Financial assets | ||||
Securities available-for-sale | 497 | 0 | ||
Loans held for sale | 0 | |||
Cash and cash equivalents, Fair value | 0 | 0 | ||
Securities available-for-sale, Fair value | 497 | 0 | ||
Loans (net of allowance), Fair value | 382,919 | 371,930 | ||
FHLB stock, Fair value | 0 | 0 | ||
Accrued interest receivable, Fair value | 1,383 | 1,307 | ||
Financial liabilities | ||||
Noninterest-bearing deposits, Fair value | 0 | 0 | ||
Interest-bearing deposits, Fair value | 0 | 0 | ||
Borrowings, Fair value | 0 | 0 | ||
Accrued interest payable, Fair value | 65 | 74 | ||
Carrying amount [Member] | ||||
Financial assets | ||||
Cash and cash equivalents | 31,282 | 31,892 | ||
Securities available-for-sale | 95,676 | 87,797 | ||
Loans held for sale | 755 | |||
Loans (net of allowance) | 386,158 | 374,180 | ||
FHLB stock | 3,250 | 3,250 | ||
Accrued interest receivable | 1,383 | 1,307 | ||
Financial liabilities | ||||
Non-interest-bearing deposits | 123,353 | 124,023 | ||
Interest bearing | 366,195 | 350,514 | ||
Borrowings | 4,293 | 4,520 | ||
Accrued interest payable | 65 | 74 | ||
Fair value [Member] | ||||
Financial assets | ||||
Loans held for sale | 755 | |||
Cash and cash equivalents, Fair value | 31,282 | 31,892 | ||
Securities available-for-sale, Fair value | 95,676 | 87,797 | ||
Loans (net of allowance), Fair value | 382,919 | 371,930 | ||
FHLB stock, Fair value | 3,250 | 3,250 | ||
Accrued interest receivable, Fair value | 1,383 | 1,307 | ||
Financial liabilities | ||||
Noninterest-bearing deposits, Fair value | 123,353 | 124,023 | ||
Interest-bearing deposits, Fair value | 366,187 | 350,957 | ||
Borrowings, Fair value | 4,293 | 4,520 | ||
Accrued interest payable, Fair value | $ 65 | $ 74 |
Fair Value Measurements (Deta43
Fair Value Measurements (Details 1) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair value measurements of assets recurring basis | ||
Securities available-for-sale | $ 95,676 | $ 87,797 |
U.S. Government and agency obligations [Member] | ||
Fair value measurements of assets recurring basis | ||
Securities available-for-sale | 27,297 | 20,842 |
Corporate bonds [Member] | ||
Fair value measurements of assets recurring basis | ||
Securities available-for-sale | 2,866 | 3,727 |
State and municipal obligations [Member] | ||
Fair value measurements of assets recurring basis | ||
Securities available-for-sale | 21,226 | 22,261 |
Mortgage-backed securities and other [Member] | ||
Fair value measurements of assets recurring basis | ||
Securities available-for-sale | 16,080 | 18,166 |
Other Equity Securities [Member] | ||
Fair value measurements of assets recurring basis | ||
Securities available-for-sale | 497 | |
Collateralized Debt Obligations [Member] | ||
Fair value measurements of assets recurring basis | ||
Securities available-for-sale | 27,710 | 22,801 |
Quoted Prices in Active Markets for Identical Assets, Level 1 [Member] | ||
Fair value measurements of assets recurring basis | ||
Securities available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets, Level 1 [Member] | U.S. Government and agency obligations [Member] | ||
Fair value measurements of assets recurring basis | ||
Securities available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets, Level 1 [Member] | Corporate bonds [Member] | ||
Fair value measurements of assets recurring basis | ||
Securities available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets, Level 1 [Member] | State and municipal obligations [Member] | ||
Fair value measurements of assets recurring basis | ||
Securities available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets, Level 1 [Member] | Mortgage-backed securities and other [Member] | ||
Fair value measurements of assets recurring basis | ||
Securities available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets, Level 1 [Member] | Other Equity Securities [Member] | ||
Fair value measurements of assets recurring basis | ||
Securities available-for-sale | 0 | |
Quoted Prices in Active Markets for Identical Assets, Level 1 [Member] | Collateralized Debt Obligations [Member] | ||
Fair value measurements of assets recurring basis | ||
Securities available-for-sale | 0 | 0 |
Significant Other Observable Inputs, Level 2 [Member] | ||
Fair value measurements of assets recurring basis | ||
Securities available-for-sale | 95,179 | 87,797 |
Significant Other Observable Inputs, Level 2 [Member] | U.S. Government and agency obligations [Member] | ||
Fair value measurements of assets recurring basis | ||
Securities available-for-sale | 27,297 | 20,842 |
Significant Other Observable Inputs, Level 2 [Member] | Corporate bonds [Member] | ||
Fair value measurements of assets recurring basis | ||
Securities available-for-sale | 2,866 | 3,727 |
Significant Other Observable Inputs, Level 2 [Member] | State and municipal obligations [Member] | ||
Fair value measurements of assets recurring basis | ||
Securities available-for-sale | 21,226 | 22,261 |
Significant Other Observable Inputs, Level 2 [Member] | Mortgage-backed securities and other [Member] | ||
Fair value measurements of assets recurring basis | ||
Securities available-for-sale | 16,080 | 18,166 |
Significant Other Observable Inputs, Level 2 [Member] | Other Equity Securities [Member] | ||
Fair value measurements of assets recurring basis | ||
Securities available-for-sale | 0 | |
Significant Other Observable Inputs, Level 2 [Member] | Collateralized Debt Obligations [Member] | ||
Fair value measurements of assets recurring basis | ||
Securities available-for-sale | 27,710 | 22,801 |
Significant Unobservable Inputs, Level 3 [Member] | ||
Fair value measurements of assets recurring basis | ||
Securities available-for-sale | 497 | 0 |
Significant Unobservable Inputs, Level 3 [Member] | U.S. Government and agency obligations [Member] | ||
Fair value measurements of assets recurring basis | ||
Securities available-for-sale | 0 | 0 |
Significant Unobservable Inputs, Level 3 [Member] | Corporate bonds [Member] | ||
Fair value measurements of assets recurring basis | ||
Securities available-for-sale | 0 | 0 |
Significant Unobservable Inputs, Level 3 [Member] | State and municipal obligations [Member] | ||
Fair value measurements of assets recurring basis | ||
Securities available-for-sale | 0 | 0 |
Significant Unobservable Inputs, Level 3 [Member] | Mortgage-backed securities and other [Member] | ||
Fair value measurements of assets recurring basis | ||
Securities available-for-sale | 0 | 0 |
Significant Unobservable Inputs, Level 3 [Member] | Other Equity Securities [Member] | ||
Fair value measurements of assets recurring basis | ||
Securities available-for-sale | 497 | |
Significant Unobservable Inputs, Level 3 [Member] | Collateralized Debt Obligations [Member] | ||
Fair value measurements of assets recurring basis | ||
Securities available-for-sale | $ 0 | $ 0 |
Fair Value Measurements (Deta44
Fair Value Measurements (Details 2) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Impaired loans [Member] | ||
Fair value measurements of assets nonrecurring basis | ||
Securities held-to-maturity, Fair Value | $ 10,182 | $ 7,791 |
Impaired loans [Member] | Quoted Prices in Active Markets for Identical Assets, Level 1 [Member] | ||
Fair value measurements of assets nonrecurring basis | ||
Securities held-to-maturity, Fair Value | 0 | 0 |
Impaired loans [Member] | Significant Other Observable Inputs, Level 2 [Member] | ||
Fair value measurements of assets nonrecurring basis | ||
Securities held-to-maturity, Fair Value | 0 | 0 |
Impaired loans [Member] | Significant Unobservable Inputs, Level 3 [Member] | ||
Fair value measurements of assets nonrecurring basis | ||
Securities held-to-maturity, Fair Value | 10,182 | 7,791 |
Real estate owned [Member] | ||
Fair value measurements of assets nonrecurring basis | ||
Securities held-to-maturity, Fair Value | 68 | 68 |
Real estate owned [Member] | Quoted Prices in Active Markets for Identical Assets, Level 1 [Member] | ||
Fair value measurements of assets nonrecurring basis | ||
Securities held-to-maturity, Fair Value | 0 | 0 |
Real estate owned [Member] | Significant Other Observable Inputs, Level 2 [Member] | ||
Fair value measurements of assets nonrecurring basis | ||
Securities held-to-maturity, Fair Value | 0 | 0 |
Real estate owned [Member] | Significant Unobservable Inputs, Level 3 [Member] | ||
Fair value measurements of assets nonrecurring basis | ||
Securities held-to-maturity, Fair Value | $ 68 | $ 68 |
Sale-Leaseback and Capital Le45
Sale-Leaseback and Capital Lease Obligation (Details) $ in Thousands | Sep. 30, 2016USD ($) |
2,016 | $ 161 |
2,017 | 655 |
2,018 | 668 |
2,019 | 682 |
2,020 | 695 |
Thereafter | 7,798 |
Total minimum lease payments | 10,659 |
Less amounts representing interest | 2,643 |
Present value of net minimum lease payments | $ 8,016 |
Sale-Leaseback and Capital Le46
Sale-Leaseback and Capital Lease Obligation (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2016 | Jan. 31, 2016 | |
Sale Leaseback Transaction, Cumulative Gain Recognized | $ 3,100,000 | ||
Sale Leaseback Transaction, Monthly Rental Payments | $ 54,000 | ||
Annual Increase In Sale Lease back Transaction Monthly Rental Payments | 2.00% | ||
Sale Leaseback Transaction, Imputed Interest Rate | 3.91% | ||
Capital Leased Assets, Gross | $ 5,000,000 | $ 5,000,000 | |
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation | 274,000 | 274,000 | |
Capital Leases, Income Statement, Amortization Expense | $ 51,000 | $ 136,000 |
Federal Income Taxes (Details)
Federal Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Investments, Owned, Federal Income Tax Note [Line Items] | ||||
Current | $ (11) | $ 0 | $ 73 | $ 0 |
Deferred | (179) | 96 | (306) | 96 |
Valuation allowance | 0 | (10,784) | 0 | (10,784) |
Total | $ (190) | $ (10,688) | $ (233) | $ (10,688) |
Federal Income Taxes (Details 1
Federal Income Taxes (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income taxes (credits) computed at the statutory federal | ||||
Federal income taxes calculated at the expected statutory rate | $ (209) | $ 136 | $ (72) | $ 266 |
Increase (decrease) in taxes resulting from: | ||||
Nontaxable dividend and interest income | (30) | (29) | (71) | (70) |
Increase in cash surrender value of life insurance - net | (55) | (56) | (193) | (194) |
Nondeductible acquisition costs | 98 | 0 | 98 | 0 |
Other | 6 | 45 | 5 | 94 |
Valuation allowance | 0 | (10,784) | 0 | (10,784) |
Income tax benefit per financial statements | $ (190) | $ (10,688) | $ (233) | $ (10,688) |
Federal Income Taxes (Details 2
Federal Income Taxes (Details 2) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Allowance for loan losses | $ 1,561 | $ 1,473 |
Deferred compensation | 308 | 300 |
Alternative minimum tax carry forward | 212 | 155 |
Expenses on foreclosed property | 0 | 14 |
Deferred gain on sale of building | 1,009 | 0 |
NOL carry forward | 8,258 | 9,020 |
Other | 307 | 98 |
Subtotal | 11,655 | 11,060 |
Deferred tax liabilities: | ||
FHLB stock dividends | (307) | (307) |
Unrealized gains on available-for-sale securities | (512) | (225) |
Depreciation | (55) | (55) |
Other | (314) | (33) |
Subtotal | (1,188) | (620) |
Net deferred tax asset | 10,467 | 10,440 |
Less: valuation allowance | 0 | 0 |
Total | $ 10,467 | $ 10,440 |
Federal Income Taxes (Details T
Federal Income Taxes (Details Textual) $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Investments, Owned, Federal Income Tax Note [Line Items] | |
Net operating loss carry forward | $ 24.3 |
Net operating loss carry forward, expiration starting period | 2,030 |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Basic | ||||
Net income (loss) | $ (426) | $ 11,088 | $ 21 | $ 11,471 |
Less: undistributed earnings allocated to unvested restricted shares | (8) | 137 | 0 | 121 |
Net earnings (losses) allocated to common shareholders | $ (418) | $ 10,951 | $ 21 | $ 11,350 |
Weighted average common shares outstanding including shares considered participating securities | 7,339,710 | 7,282,365 | 7,332,482 | 7,269,222 |
Less: average participating securities | (140,205) | (90,015) | (132,977) | (76,872) |
Weighted average shares | 7,199,505 | 7,192,350 | 7,199,505 | 7,192,350 |
Basic earnings (loss) per common share | $ (0.06) | $ 1.52 | $ 0 | $ 1.58 |
Diluted | ||||
Net earnings (losses) allocated to common shareholders | $ (418) | $ 10,951 | $ 21 | $ 11,350 |
Weighted average common shares outstanding for basic earnings per common share | 7,199,505 | 7,192,350 | 7,199,505 | 7,192,350 |
Dilutive effect of assumed exercise of average participating securities | 0 | 19,809 | 23,227 | 19,015 |
Average participating securities | 140,205 | 90,015 | 132,977 | 76,872 |
Average common shares outstanding - diluted | 7,339,710 | 7,302,174 | 7,355,709 | 7,288,237 |
Diluted earnings (loss) per common share | $ (0.06) | $ 1.52 | $ 0 | $ 1.58 |
Earnings per Common Share (De52
Earnings per Common Share (Details Textual) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 14,985 | 19,324 | ||
Weighted Average Number of Shares Outstanding, Basic, Total | 7,339,710 | 7,282,365 | 7,332,482 | 7,269,222 |
Employee Stock Option [Member] | ||||
Weighted Average Number of Shares Outstanding, Basic, Total | 51,578 |
Stock Based Compensation (Detai
Stock Based Compensation (Details Textual) - Restricted Stock [Member] - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 78,036 | 53,640 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Beginning Balance | 146,411 | 9,290 | 146,411 | 9,290 | 81,732 |
Share-based Compensation, Total | $ 22,000 | $ 25,000 | $ 83,000 | $ 59,000 | |
Stock Issued During Period, Shares, Restricted Stock Award, Forfeited | 1,429 | 3,434 | |||
Share-based Compensation Award, Tranche One [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years |
Subsequent Event (Details Textu
Subsequent Event (Details Textual) - Subsequent Event [Member] - First Commonwealth Financial Corporation [Member] | Oct. 03, 2016USD ($)$ / shares |
Subsequent Event [Line Items] | |
Cash Consideration, Percentage | 20.00% |
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 1.427 |
Business Acquisition, Share Price | $ / shares | $ 14.50 |
Payments to Acquire Businesses, Gross | $ 21,283,773 |
Business Acquisition, Effective Date of Acquisition | Jun. 30, 2017 |