Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 05, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,016 | |
Entity Registrant Name | SUSSEX BANCORP | |
Entity Central Index Key | 1,028,954 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | sbbx | |
Entity Common Stock, Shares Outstanding | 4,741,249 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and due from banks | $ 4,431 | $ 2,914 |
Interest-bearing deposits with other banks | 7,874 | 3,206 |
Cash and cash equivalents | 12,305 | 6,120 |
Interest bearing time deposits with other banks | 100 | 100 |
Securities available for sale, at fair value | 94,797 | 93,776 |
Securities held to maturity, at amortized cost (fair value of $5,929 and $7,008 at June 30, 2016 and December 31, 2015, respectively) | 5,660 | 6,834 |
Federal Home Loan Bank Stock, at cost | 6,268 | 5,165 |
Loans receivable, net of unearned income | 640,187 | 543,423 |
Less: allowance for loan losses | 5,988 | 5,590 |
Net loans receivable | 634,199 | 537,833 |
Foreclosed real estate | 3,002 | 3,354 |
Premises and equipment, net | 9,092 | 8,879 |
Accrued interest receivable | 2,366 | 1,764 |
Goodwill | 2,820 | 2,820 |
Bank-owned life insurance | 12,675 | 12,524 |
Other assets | 6,528 | 5,334 |
Total Assets | 789,812 | 684,503 |
Deposits: | ||
Non-interest bearing | 120,992 | 87,209 |
Interest bearing | 473,832 | 430,647 |
Total deposits | 594,824 | 517,856 |
Short-term borrowings | 52,875 | 34,650 |
Long-term borrowings | 66,000 | 61,000 |
Accrued interest payable and other liabilities | 6,340 | 4,169 |
Junior subordinated debentures | 12,887 | 12,887 |
Total Liabilities | 732,926 | 630,562 |
Stockholders' Equity: | ||
Preferred stock, no par value, 1,000,000 shares authorized; none issued | 0 | 0 |
Common stock, no par value, 10,000,000 shares authorized; 4,741,617 and 4,705,480 shares issued and 4,680,697 and 4,646,238 shares outstanding at June 30, 2016 and December 31, 2015, respectively | 36,141 | 35,927 |
Treasury stock, at cost; 60,920 and 59,242 shares at June 30, 2016 and December 31, 2015, respectively | (616) | (592) |
Retained earnings | 20,831 | 18,520 |
Accumulated other comprehensive income | 530 | 86 |
Total Stockholders' Equity | 56,886 | 53,941 |
Total Liabilities and Stockholders' Equity | $ 789,812 | $ 684,503 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Securities held to maturity, fair value | $ 5,929 | $ 7,008 |
Preferred stock par value (usd per share) | $ 0 | $ 0 |
Preferred stock authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock issued (in shares) | 0 | 0 |
Common stock par value (usd per share) | $ 0 | $ 0 |
Common stock authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock issued (in shares) | 4,741,617 | 4,705,480 |
Common stock outstanding (in shares) | 4,680,697 | 4,646,238 |
Treasury stock (in shares) | 60,920 | 59,242 |
Consolidated Statements Of Inco
Consolidated Statements Of Income And Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Interest and Dividend Income, Operating [Abstract] | ||||
Loans receivable, including fees | $ 6,459 | $ 5,275 | $ 12,604 | $ 10,447 |
Securities: | ||||
Taxable | 344 | 302 | 720 | 569 |
Tax-exempt | 190 | 221 | 391 | 429 |
Interest bearing deposits | 6 | 3 | 10 | 7 |
Total Interest Income | 6,999 | 5,801 | 13,725 | 11,452 |
INTEREST EXPENSE | ||||
Deposits | 636 | 438 | 1,211 | 854 |
Borrowings | 448 | 380 | 885 | 760 |
Junior subordinated debentures | 98 | 54 | 166 | 107 |
Total Interest Expense | 1,182 | 872 | 2,262 | 1,721 |
Net Interest Income | 5,817 | 4,929 | 11,463 | 9,731 |
PROVISION FOR LOAN LOSSES | 385 | 200 | 596 | 505 |
Net Interest Income after Provision for Loan Losses | 5,432 | 4,729 | 10,867 | 9,226 |
OTHER INCOME | ||||
Service fees on deposit accounts | 256 | 213 | 481 | 426 |
ATM and debit card fees | 200 | 201 | 387 | 375 |
Bank-owned life insurance | 75 | 79 | 151 | 157 |
Insurance commissions and fees | 1,039 | 736 | 2,760 | 1,891 |
Investment brokerage fees | 50 | 41 | 77 | 63 |
Net gain on sales of securities | 105 | 88 | 272 | 256 |
Net (loss) gain on disposal of premises and equipment | (6) | 8 | (19) | 8 |
Other | 107 | 135 | 241 | 226 |
Total Other Income | 1,826 | 1,501 | 4,350 | 3,402 |
OTHER EXPENSES | ||||
Salaries and employee benefits | 3,076 | 2,789 | 6,429 | 5,569 |
Occupancy, net | 512 | 443 | 936 | 920 |
Data processing | 548 | 429 | 1,097 | 783 |
Furniture and equipment | 283 | 214 | 516 | 424 |
Advertising and promotion | 86 | 90 | 191 | 160 |
Professional fees | 177 | 173 | 351 | 319 |
Director fees | 160 | 147 | 219 | 313 |
FDIC assessment | 121 | 124 | 241 | 248 |
Insurance | 73 | 68 | 146 | 120 |
Stationary and supplies | 50 | 49 | 102 | 105 |
Loan collection costs | 53 | 59 | 85 | 156 |
Net expenses and write-downs related to foreclosed real estate | 144 | 35 | 219 | 199 |
Other | 315 | 302 | 676 | 676 |
Total Other Expenses | 5,598 | 4,922 | 11,208 | 9,992 |
Income before Income Taxes | 1,660 | 1,308 | 4,009 | 2,636 |
EXPENSE FOR INCOME TAXES | 551 | 424 | 1,326 | 800 |
Net Income | 1,109 | 884 | 2,683 | 1,836 |
OTHER COMPREHENSIVE INCOME (LOSS): | ||||
Unrealized gains (loss) on available for sale securities arising during the period | 1,576 | (1,166) | 2,561 | (850) |
Fair value adjustments on derivatives | (1,149) | 0 | (1,549) | 0 |
Reclassification adjustment for net gain on securities transactions included in net income | (105) | (88) | (272) | (256) |
Income tax related to items of other comprehensive (loss) income | (129) | 502 | (296) | 442 |
Other comprehensive income (loss), net of income taxes | 193 | (752) | 444 | (664) |
Comprehensive income | $ 1,302 | $ 132 | $ 3,127 | $ 1,172 |
EARNINGS PER SHARE | ||||
Basic (usd per share) | $ 0.24 | $ 0.19 | $ 0.59 | $ 0.40 |
Diluted (usd per share) | $ 0.24 | $ 0.19 | $ 0.58 | $ 0.40 |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Treasury Stock [Member] |
Beginning balance at Dec. 31, 2014 | $ 51,229 | $ 35,553 | $ 15,566 | $ 169 | $ (59) |
Beginning balance (in shares) at Dec. 31, 2014 | 4,662,606 | ||||
Net income | 1,836 | 1,836 | |||
Other comprehensive income | (664) | (664) | |||
Treasury shares purchased | (533) | (533) | |||
Treasury shares purchased (in shares) | (48,059) | ||||
Restricted stock granted (in shares) | 31,841 | ||||
Compensation expense related to stock option and restricted stock grants | 185 | $ 185 | |||
Dividends declared on common stock | (374) | (374) | |||
Ending balance at Jun. 30, 2015 | 51,679 | $ 35,738 | 17,028 | (495) | (592) |
Ending balance (in shares) at Jun. 30, 2015 | 4,646,388 | ||||
Beginning balance at Dec. 31, 2015 | $ 53,941 | $ 35,927 | 18,520 | 86 | (592) |
Beginning balance (in shares) at Dec. 31, 2015 | 4,646,238 | 4,646,238 | |||
Net income | $ 2,683 | 2,683 | |||
Other comprehensive income | 444 | 444 | |||
Treasury shares purchased | (26) | (26) | |||
Treasury shares purchased (in shares) | (2,127) | ||||
Options exercised | $ 2 | 2 | |||
Options exercised (in shares) | 449 | 449 | |||
Common stock issued | $ 2 | $ 2 | |||
Restricted stock granted (in shares) | 38,022 | ||||
Restricted stock forfeited (in shares) | (1,885) | ||||
Compensation expense related to stock option and restricted stock grants | 212 | $ 212 | |||
Dividends declared on common stock | (372) | (372) | |||
Ending balance at Jun. 30, 2016 | $ 56,886 | $ 36,141 | $ 20,831 | $ 530 | $ (616) |
Ending balance (in shares) at Jun. 30, 2016 | 4,680,697 | 4,680,697 |
Consolidated Statements Of Sto6
Consolidated Statements Of Stockholders' Equity (Parenthetical) - $ / shares | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared (usd per share) | $ 0.08 | $ 0.08 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash Flows from Operating Activities | ||
Net income | $ 2,683 | $ 1,836 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 596 | 505 |
Depreciation and amortization | 546 | 497 |
Net amortization of securities premiums and discounts | 810 | 876 |
Net realized gain on sale of securities | (272) | (256) |
Net realized loss (gain) on disposal of premises and equipment | 19 | (8) |
Net realized gain on sale of foreclosed real estate | (12) | (36) |
Write-downs of and provisions for foreclosed real estate | 123 | 97 |
Deferred income tax benefit | (324) | (92) |
Earnings on bank-owned life insurance | (151) | (157) |
Compensation expense for stock options and stock awards | 212 | 185 |
Increase in assets: | ||
Accrued interest receivable | (602) | (116) |
Other assets | (1,167) | (51) |
Increase in accrued interest payable and other liabilities | 622 | 484 |
Net Cash Provided by Operating Activities | 3,083 | 3,764 |
Securities available for sale: | ||
Purchases | (22,184) | (38,387) |
Sales | 18,745 | 16,462 |
Maturities, calls and principal repayments | 4,175 | 4,309 |
Securities held to maturity: | ||
Purchases | (555) | (716) |
Sales | 1,008 | 0 |
Maturities, calls and principal repayments | 716 | 727 |
Net increase in loans | (97,613) | (8,660) |
Proceeds from the sale of foreclosed real estate | 892 | 1,615 |
Purchases of bank premises and equipment | (783) | (760) |
Proceeds from the sale of premises and equipment | 5 | 35 |
(Increase) decrease in Federal Home Loan Bank stock | (1,103) | 284 |
Net Cash Used in Investing Activities | (96,697) | (25,091) |
Cash Flows from Financing Activities | ||
Net increase in deposits | 76,968 | 29,448 |
Increase (decrease) in short-term borrowed funds | 18,225 | (16,300) |
Proceeds from long-term borrowings | 5,000 | 15,000 |
Repayment of long-term borrowings | 0 | (5,000) |
Purchase of treasury stock | (26) | (533) |
Proceeds from exercise of stock options | 2 | 0 |
Net proceeds from issuance of common stock | 2 | 0 |
Dividends paid | (372) | (374) |
Net Cash Provided by Financing Activities | 99,799 | 22,241 |
Net Increase in Cash and Cash Equivalents | 6,185 | 914 |
Cash and Cash Equivalents - Beginning | 6,120 | 5,859 |
Cash and Cash Equivalents - Ending | 12,305 | 6,773 |
Supplementary Cash Flows Information | ||
Interest paid | 2,168 | 1,700 |
Income taxes paid | 2,060 | 712 |
Supplementary Schedule of Noncash Investing and Financing Activities | ||
Foreclosed real estate acquired in settlement of loans | $ 651 | $ 1,170 |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary Of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACOUNTING POLICIES Basis of Presentation The accompanying unaudited consolidated financial statements include the accounts of Sussex Bancorp (“we,” “us,” “our” or the “company”) and our wholly owned subsidiary Sussex Bank (the “Bank”). The Bank’s wholly owned subsidiaries are SCB Investment Company, Inc., SCBNY Company, Inc., ClassicLake Enterprises, LLC, Wheatsworth Properties Corp., PPD Holding Company, LLC, and Tri-State Insurance Agency, Inc. (“Tri-State”), a full service insurance agency located in Sussex County, New Jersey with a satellite office located in Bergen County, New Jersey. Tri-State’s operations are considered a separate segment for financial disclosure purposes. All inter-company transactions and balances have been eliminated in consolidation. The Bank operates eleven banking offices, eight located in Sussex County, New Jersey, one located in Bergen County, New Jersey, one located in Warren County, New Jersey, and one in Queens County, New York. We are subject to the supervision and regulation of the Board of Governors of the Federal Reserve System (the “FRB”). The Bank’s deposits are insured by the Deposit Insurance Fund (“DIF”) of the FDIC up to applicable limits. The operations of the company and the Bank are subject to the supervision and regulation of the FRB, the FDIC and the New Jersey Department of Banking and Insurance (the “Department”) and the operations of Tri-State are subject to supervision and regulation by the Department. The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information. Accordingly, they do not include all of the information and footnotes required by the accounting principles generally accepted in the United States of America (“U.S. GAAP”) for full year financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and are of a normal, recurring nature. Operating results for the three and six month periods ended June 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 . These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto that are included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015 . New Accounting Standards In May 2014, Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers . The ASU’s core principle is built on the contract between a vendor and a customer for the provision of goods and services. It attempts to depict the exchange of rights and obligations between the parties in the pattern of revenue recognition based on the consideration to which the vendor is entitled. To accomplish this objective, the standard requires five basic steps: i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date. The amendments in ASU 2015-14 defer the effective date of ASU 2014-09 for all entities by one year. Accordingly, the amendments are effective for annual and interim periods beginning after December 15, 2017. Early adoption is permitted for annual and interim reporting periods beginning after December 15, 2016. In March, 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , that clarifies how to apply revenue recognition guidance related to whether an entity is a principal or an agent. The update clarifies that an entity is a principal when it controls the specified good or service before that good or service is transferred to the customer, and is an agent when it does not control the specified good or service before it is transferred to the customer. In May, 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606), Narrow-Scope Improvements and Practical Expedients , that amended its new revenue recognition guidance on transition, collectibility, noncash consideration and the presentation of sales and other similar taxes. The amendments clarify that, for a contract to be considered completed at transition, all (or substantially all) of the revenue must have been recognized under legacy GAAP. The FASB also added a practical expedient to ease transition for contracts that were modified prior to adoption of the revenue standard under both the full and modified retrospective transition approaches. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In June 2014, FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force) , to clarify that a performance target in a share-based compensation award that could be achieved after an employee completes the requisite service period should be treated as a performance condition that affects the vesting of the award. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. For all entities, the amendments are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The adoption of this guidance did not have a material impact on our consolidated financial statements. In April 2015, FASB issued ASU 2015-05, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement , to clarify whether a hosting arrangement (e.g., cloud computing, software as a service, infrastructure as a service, etc.) contains a software license, and thus, whether it is to be accounted for by the customer similarly to other internal-use software. Specifically, the amendments revise the scope of Subtopic 350-40 to include internal-use software accessed through a hosting arrangement only if both of the following criteria are met: (1) the customer has the contractual right to take possession of the software at any time during the hosting period without significant penalty. There is no significant penalty if the customer has the ability to take delivery of the software without incurring significant cost and the ability to use the software separately without significant loss of utility or value and (2) it is feasible for the customer to either run the software on its own hardware or contract with another party unrelated to the vendor to host the software. If both of the above criteria are present in a hosting arrangement, then the arrangement contains a software license and the customer should account for that element in accordance with Subtopic 350-40 (i.e., generally capitalize and subsequently amortize the cost of the license). If both of the above criteria are not present, the customer should account for the arrangement as a service contract (i.e., expense fees as incurred). The amendments are effective for public business entities for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. An entity can elect to adopt the amendments either (1) prospectively to all arrangements entered into or materially modified after the effective date or (2) retrospectively. The adoption of this guidance did not have a material impact on our consolidated financial statements. In January 2016, FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01, among other things; (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements; and (vii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale. For public entities, the guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. The Company is currently evaluating the impact of the pending adoption of the new standard on its consolidated financial statements. In February 2016, FASB issued ASU 2016-02, Leases (Topic 842) . Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (i) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (ii) 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. Public business entities should apply the amendments in ASU 2016-02 for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted for all public business entities upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is currently evaluating the impact of the pending adoption of the new standard on its consolidated financial statements. In March 2016, FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . FASB is issuing ASU 2016-09 as part of its initiative to reduce complexity in accounting standards. The areas for simplification in this ASU 2016-09 involve several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Some of the areas for simplification apply only to nonpublic entities. For public business entities, the amendments in this update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any entity in any interim or annual period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The Company is currently evaluating the impact of the pending adoption of the new standard on its consolidated financial statements. In June, 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments – Credit Losses (Topic 326) (the “ASU”), which introduces new guidance for the accounting for credit losses on instruments within its scope. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale (AFS) debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. The ASU will be effective for Public business entities that are SEC filers in fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All other entities will have one additional year. Early application of the guidance will be permitted for all entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact of the pending adoption of the new standard on its consolidated financial statements. |
Securities
Securities | 6 Months Ended |
Jun. 30, 2016 | |
Investments [Abstract] | |
Securities | SECURITIES Available for Sale The amortized cost and approximate fair value of securities available for sale as of June 30, 2016 and December 31, 2015 are summarized as follows: (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30, 2016 U.S. government agencies $ 14,044 $ 38 $ (49 ) $ 14,033 State and political subdivisions 34,978 1,780 — 36,758 Mortgage-backed securities - U.S. government-sponsored enterprises 43,343 753 (90 ) 44,006 $ 92,365 $ 2,571 $ (139 ) $ 94,797 December 31, 2015 U.S. government agencies $ 12,792 $ 51 $ (55 ) $ 12,788 State and political subdivisions 37,771 507 (129 ) 38,149 Mortgage-backed securities - U.S. government-sponsored enterprises 43,069 206 (436 ) 42,839 $ 93,632 $ 764 $ (620 ) $ 93,776 Securities with a carrying value of approximately $32.9 million and $33.4 million at June 30, 2016 and December 31, 2015 , respectively, were pledged to secure public deposits and for borrowings at the Federal Reserve Bank as required or permitted by applicable laws and regulations. The amortized cost and fair value of securities available for sale at June 30, 2016 are shown below by contractual maturity. Actual maturities may differ from contractual maturities as issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Investments which pay principal on a periodic basis are not included in the maturity categories. (Dollars in thousands) Amortized Cost Fair Value Due in one year or less $ — $ — Due after one year through five years 699 712 Due after five years through ten years 3,653 3,826 Due after ten years 30,626 32,220 Total bonds and obligations 34,978 36,758 U.S. government agencies 14,044 14,033 Mortgage-backed securities: U.S. government-sponsored enterprises 43,343 44,006 Total available for sale securities $ 92,365 $ 94,797 Gross gains on sales of securities available for sale were $97 thousand and $88 thousand for the three months ended June 30, 2016 and 2015 , respectively. There were no gross realized losses on sales of securities available for sale for the three months ended June 30, 2016 and 2015. Gross realized gains on sales of securities available for sale were $264 thousand and $304 thousand and gross losses were less than $1 thousand and $48 thousand for the six months ended June 30, 2016 and 2015, respectively. Temporarily Impaired Securities The following table shows gross unrealized losses and fair value of securities with unrealized losses that are not deemed to be other than temporarily impaired, aggregated by category and length of time that individual available for sale securities have been in a continuous unrealized loss position at June 30, 2016 and December 31, 2015 . Less Than 12 Months 12 Months or More Total (Dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses June 30, 2016 U.S. government agencies $ 4,482 $ (47 ) $ 1,810 $ (2 ) $ 6,292 $ (49 ) Mortgage-backed securities - U.S. government-sponsored enterprises 11,405 (90 ) — — 11,405 (90 ) Total temporarily impaired securities $ 15,887 $ (137 ) $ 1,810 $ (2 ) $ 17,697 $ (139 ) December 31, 2015 U.S. government agencies $ 5,888 $ (23 ) $ 2,473 $ (32 ) $ 8,361 $ (55 ) State and political subdivisions 5,780 (107 ) 2,998 (22 ) 8,778 (129 ) Mortgage-backed securities - U.S. government-sponsored enterprises 31,885 (436 ) — — 31,885 (436 ) Total temporarily impaired securities $ 43,553 $ (566 ) $ 5,471 $ (54 ) $ 49,024 $ (620 ) For each security whose fair value is less than their amortized cost basis, a review is conducted to determine if an other-than-temporary impairment has occurred. As of June 30, 2016 , we reviewed our available for sale securities portfolio for indications of impairment. This review includes analyzing the length of time and the extent to which the fair value has been lower than the cost, the financial condition and near-term prospects of the issuer, including any specific events which may influence the operations of the issuer and the intent and likelihood of selling the security. The intent and likelihood of sale of debt and equity securities are evaluated based upon our investment strategy for the particular type of security and our cash flow needs, liquidity position, capital adequacy and interest rate risk position. U.S. Government Agencies At June 30, 2016 and December 31, 2015 , the decline in fair value and the unrealized losses for our U.S. government agencies securities were primarily due to changes in spreads and market conditions and not credit quality. At June 30, 2016 , there were five securities with a fair value of $6.3 million that had an unrealized loss that amounted to $49 thousand . As of June 30, 2016 , we did not intend to sell and it was not more-likely-than-not that we would be required to sell any of these securities before recovery of their amortized cost basis. Therefore, none of the U.S. government agency securities at June 30, 2016 were deemed to be other-than-temporarily impaired (“OTTI”). At December 31, 2015 , there were six securities with a fair value of $8.4 million that had an unrealized loss that amounted to $55 thousand . State and Political Subdivisions At December 31, 2015 , the decline in fair value and the unrealized losses for our state and political subdivisions securities were caused by changes in interest rates and spreads and were not the result of credit quality. At June 30, 2016, the Company did not have any State and Political Subdivisions securities in an unrealized loss position. These securities typically have maturity dates greater than 10 years and the fair values are more sensitive to changes in market interest rates. At December 31, 2015 , there were 15 securities with a fair value of $8.8 million that had an unrealized loss that amounted to $129 thousand . Mortgage-Backed Securities At June 30, 2016 and December 31, 2015 , the decline in fair value and the unrealized losses for our mortgage-backed securities guaranteed by U.S. government-sponsored enterprises were primarily due to changes in spreads and market conditions and not credit quality. At June 30, 2016 , there were six securities with a fair value of $11.4 million that had an unrealized loss that amounted to $90 thousand . As of June 30, 2016 , we did not intend to sell and it was not more-likely-than-not that we would be required to sell any of these securities before recovery of their amortized cost basis. Therefore, none of our mortgage-backed securities at June 30, 2016 were deemed to be OTTI. At December 31, 2015 , there were 18 securities with a fair value of $31.9 million that had an unrealized loss that amounted to $436 thousand . Held to Maturity Securities The amortized cost and approximate fair value of securities held to maturity as of June 30, 2016 and December 31, 2015 are summarized as follows: (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30, 2016 State and political subdivisions $ 5,660 $ 269 $ — $ 5,929 December 31, 2015 State and political subdivisions $ 6,834 $ 174 $ — $ 7,008 During the three months and the six months ended June 30, 2016, the Company sold a security out of its held to maturity portfolio due to continued credit deterioration. The gross realized gain on the sale of the security was $8 thousand for the three months and six months ended June 30, 2016. The amortized cost and carrying value of securities held to maturity at June 30, 2016 are shown below by contractual maturity. Actual maturities may differ from contractual maturities as issuers may have the right to call or prepay obligations with or without call or prepayment penalties. (Dollars in thousands) Amortized Cost Fair Value Due in one year or less $ 2,792 $ 2,792 Due after one year through five years — — Due after five years through ten years 1,823 1,951 Due after ten years 1,045 1,186 Total held to maturity securities $ 5,660 $ 5,929 Temporarily Impaired Securities For each security whose fair value is less than their amortized cost basis, a review is conducted to determine if an other-than-temporary impairment has occurred. As of June 30, 2016 , we did not have any held to maturity investments with unrealized losses. This review includes analyzing the length of time and the extent to which the fair value has been lower than the cost, the financial condition and near-term prospects of the issuer, including any specific events which may influence the operations of the issuer and the intent and likelihood of selling the security. The intent and likelihood of sale of debt securities is evaluated based upon our investment strategy for the particular type of security and our cash flow needs, liquidity position, capital adequacy and interest rate risk position. For each security whose fair value is less than their amortized cost basis, a review is conducted to determine if an other-than-temporary impairment has occurred. At December 31, 2015 , we did not have any held to maturity securities in an unrealized loss position. |
Loans
Loans | 6 Months Ended |
Jun. 30, 2016 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans | LOANS The composition of net loans receivable at June 30, 2016 and December 31, 2015 is as follows: (Dollars in thousands) June 30, 2016 December 31, 2015 Commercial and industrial $ 31,800 $ 20,023 Construction 16,474 13,348 Commercial real estate 453,679 382,262 Residential real estate 137,903 127,204 Consumer and other 1,178 1,253 Total loans receivable 641,034 544,090 Unearned net loan origination fees (847 ) (667 ) Allowance for loan losses (5,988 ) (5,590 ) Net loans receivable $ 634,199 $ 537,833 Mortgage loans serviced for others are not included in the accompanying balance sheets. The total amount of loans serviced for the benefit of others was approximately $443 thousand and $454 thousand at June 30, 2016 and December 31, 2015 , respectively. Mortgage servicing rights were immaterial at June 30, 2016 and December 31, 2015 . |
Allowance For Loan Losses And C
Allowance For Loan Losses And Credit Quality Of Financing Receivables | 6 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
Allowance For Loan Losses And Credit Quality Of Financing Receivables | ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY OF FINANCING RECEIVABLES The following table presents changes in the allowance for loan losses disaggregated by the class of loans receivable for the three months ended June 30, 2016 and 2015 : (Dollars in thousands) Commercial and Industrial Construction Commercial Real Estate Residential Real Estate Consumer and Other Unallocated Total Three Months Ended: June 30, 2016 Beginning balance $ 98 $ 267 $ 3,847 $ 908 $ 121 $ 571 $ 5,812 Charge-offs (138 ) — (65 ) (25 ) — — (228 ) Recoveries 9 — 3 6 1 — 19 Provision 230 (59 ) 235 25 (105 ) 59 385 Ending balance $ 199 $ 208 $ 4,020 $ 914 $ 17 $ 630 $ 5,988 June 30, 2015 Beginning balance $ 138 388 $ 3,787 $ 841 $ 88 $ 521 $ 5,763 Charge-offs — — (235 ) — (4 ) — (239 ) Recoveries 1 — 24 1 2 — 28 Provision (53 ) (111 ) 37 56 — 271 200 Ending balance $ 86 $ 277 $ 3,613 $ 898 $ 86 $ 792 $ 5,752 Six Months Ended: June 30, 2016 Beginning balance $ 85 220 $ 3,646 $ 784 $ 87 $ 768 $ 5,590 Charge-offs (138 ) — (65 ) (34 ) (19 ) — (256 ) Recoveries 16 — 34 6 2 — 58 Provision 236 (12 ) 405 158 (53 ) (138 ) 596 Ending balance $ 199 $ 208 $ 4,020 $ 914 $ 17 $ 630 $ 5,988 June 30, 2015 Beginning balance $ 231 383 $ 3,491 $ 903 $ 19 $ 614 $ 5,641 Charge-offs (19 ) — (423 ) — (11 ) — (453 ) Recoveries 5 — 36 13 5 — 59 Provision (131 ) (106 ) 509 (18 ) 73 178 505 Ending balance $ 86 $ 277 $ 3,613 $ 898 $ 86 $ 792 $ 5,752 The following table presents the balance of the allowance of loan losses and loans receivable by class at June 30, 2016 and December 31, 2015 disaggregated on the basis of our impairment methodology. Allowance for Loan Losses Loans Receivable (Dollars in thousands) Balance Balance Loans Individually Evaluated for Impairment Balance Related to Loans Collectively Evaluated for Impairment Balance Individually Evaluated for Impairment Collectively Evaluated for Impairment June 30, 2016 Commercial and industrial $ 199 $ — $ 199 $ 31,800 $ 20 $ 31,780 Construction 208 — 208 16,474 — 16,474 Commercial real estate 4,020 203 3,817 453,679 4,497 449,182 Residential real estate 914 29 885 137,903 1,391 136,512 Consumer and other loans 17 — 17 1,178 — 1,178 Unallocated 630 — — — — — Total $ 5,988 $ 232 $ 5,126 $ 641,034 $ 5,908 $ 635,126 December 31, 2015 Commercial and industrial $ 85 $ — $ 85 $ 20,023 $ 20 $ 20,003 Construction 220 — 220 13,348 — 13,348 Commercial real estate 3,646 112 3,534 382,262 5,160 377,102 Residential real estate 784 79 705 127,204 1,546 125,658 Consumer and other loans 87 73 14 1,253 138 1,115 Unallocated 768 — — — — — Total $ 5,590 $ 264 $ 4,558 $ 544,090 $ 6,864 $ 537,226 An age analysis of loans receivable, which were past due as of June 30, 2016 and December 31, 2015 , is as follows: (Dollars in thousands) 30-59 Days Past Due 60-89 days Past Due Greater Than 90 Days (a) Total Past Due Current Total Financing Receivables Recorded Investment > 90 Days and Accruing June 30, 2016 Commercial and industrial $ 94 $ — $ 20 $ 114 $ 31,686 $ 31,800 $ — Construction — — — — 16,474 16,474 — Commercial real estate 3,056 729 3,370 7,155 446,524 453,679 — Residential real estate 273 808 1,260 2,341 135,562 137,903 — Consumer and other 8 — — 8 1,170 1,178 — Total $ 3,431 $ 1,537 $ 4,650 $ 9,618 $ 631,416 $ 641,034 $ — December 31, 2015 Commercial and industrial $ 5 $ — $ 20 $ 25 $ 19,998 $ 20,023 $ — Construction — — — — 13,348 13,348 — Commercial real estate 758 1,461 4,016 6,235 376,027 382,262 — Residential real estate 335 247 1,138 1,720 125,484 127,204 — Consumer and other 16 1 138 155 1,098 1,253 — Total $ 1,114 $ 1,709 $ 5,312 $ 8,135 $ 535,955 $ 544,090 $ — (a) includes loans greater than 90 days past due and still accruing and non-accrual loans. Loans for which the accrual of interest has been discontinued at June 30, 2016 and December 31, 2015 were: (Dollars in thousands) June 30, 2016 December 31, 2015 Commercial and industrial $ 20 $ 20 Commercial real estate 3,370 4,016 Residential real estate 1,260 1,138 Consumer and other — 138 Total $ 4,650 $ 5,312 In determining the adequacy of the allowance for loan losses, we estimate losses based on the identification of specific problem loans through our credit review process and also estimate losses inherent in other loans on an aggregate basis by loan type. The credit review process includes the independent evaluation of the loan officer assigned risk ratings by the Chief Credit Officer and a third party loan review company. Such risk ratings are assigned loss component factors that reflect our loss estimate for each group of loans. It is management’s and the Board of Directors’ responsibility to oversee the lending process to ensure that all credit risks are properly identified, monitored, and controlled, and that loan pricing, terms and other safeguards against non-performance and default are commensurate with the level of risk undertaken and is rated as such based on a risk-rating system. Factors considered in assigning risk ratings and loss component factors include: borrower specific information related to expected future cash flows and operating results, collateral values, financial condition and payment status; levels of and trends in portfolio charge-offs and recoveries; levels in portfolio delinquencies; effects of changes in loan concentrations and observed trends in the economy and other qualitative measurements. Our risk-rating system is consistent with the classification system used by regulatory agencies and with industry practices. Loan classifications of Substandard, Doubtful or Loss are consistent with the regulatory definitions of classified assets. The classification system is as follows: • Pass : This category represents loans performing to contractual terms and conditions and the primary source of repayment is adequate to meet the obligation. We have five categories within the Pass classification depending on strength of repayment sources, collateral values and financial condition of the borrower. • Special Mention : This category represents loans performing to contractual terms and conditions; however the primary source of repayment or the borrower is exhibiting some deterioration or weaknesses in financial condition that could potentially threaten the borrowers’ future ability to repay our loan principal and interest or fees due. • Substandard : This category represents loans that the primary source of repayment has significantly deteriorated or weakened which has or could threaten the borrowers’ ability to make scheduled payments. The weaknesses require close supervision by management and there is a distinct possibility that we could sustain some loss if the deficiencies are not corrected. Such weaknesses could jeopardize the timely and ultimate collection of our loan principal and interest or fees due. Loss may not be expected or evident, however, loan repayment is inadequately supported by current financial information or pledged collateral. • Doubtfu l: Loans so classified have all the inherent weaknesses of a substandard loan with the added provision that collection or liquidation in full is highly questionable and not reasonably assured. The probability of at least partial loss is high, but extraneous factors might strengthen the asset to prevent loss. The validity of the extraneous factors must be continuously monitored. Once these factors are questionable the loan should be considered for full or partial charge-off. • Loss : Loans so classified are considered uncollectible, and of such little value that their continuance as active assets is not warranted. Such loans are fully charged off. The following tables illustrate our corporate credit risk profile by creditworthiness category as of June 30, 2016 and December 31, 2015 : (Dollars in thousands) Pass Special Mention Substandard Doubtful Total June 30, 2016 Commercial and industrial $ 31,753 $ 13 $ 34 $ — $ 31,800 Construction 16,474 — — — 16,474 Commercial real estate 439,558 8,807 5,314 — 453,679 Residential real estate 135,780 732 1,391 — 137,903 Consumer and other 1,178 — — — 1,178 $ 624,743 $ 9,552 $ 6,739 $ — $ 641,034 December 31, 2015 Commercial and industrial $ 19,983 $ 5 $ 35 $ — $ 20,023 Construction 13,348 — — — 13,348 Commercial real estate 367,305 8,957 6,000 — 382,262 Residential real estate 124,915 743 1,546 — 127,204 Consumer and other 1,115 — 138 — 1,253 $ 526,666 $ 9,705 $ 7,719 $ — $ 544,090 The following table reflects information about our impaired loans by class as of June 30, 2016 and December 31, 2015 : June 30, 2016 December 31, 2015 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Commercial and industrial $ 20 $ 20 $ — $ 20 $ 20 $ — Commercial real estate 2,018 2,018 — 2,684 2,684 — Residential real estate 1,248 1,248 — 1,123 1,152 — With an allowance recorded: Commercial real estate 2,479 2,479 203 2,476 2,476 112 Residential real estate 143 143 29 423 423 79 Consumer and other — — — 138 138 73 Total: Commercial and industrial 20 20 — 20 20 — Commercial real estate 4,497 4,497 203 5,160 5,160 112 Residential real estate 1,391 1,391 29 1,546 1,575 79 Consumer and other — — — 138 138 73 $ 5,908 $ 5,908 $ 232 $ 6,864 $ 6,893 $ 264 The following table presents the average recorded investment and income recognized for the three and six months ended June 30, 2016 and 2015 : For the Three Months Ended June 30, 2016 For the Three Months Ended June 30, 2015 (Dollars in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial and industrial $ 20 $ — $ 20 $ — Commercial real estate 2,113 5 1,937 10 Residential real estate 1,123 2 1,321 2 Total impaired loans without a related allowance 3,256 7 3,278 12 With an allowance recorded: Commercial real estate 2,701 8 3,319 8 Residential real estate 239 — 616 3 Consumer and other — — 92 — Total impaired loans with an allowance 2,940 8 4,027 11 Total impaired loans $ 6,196 $ 15 $ 7,305 $ 23 For the Six Months Ended June 30, 2016 For the Six Months Ended June 30, 2015 (Dollars in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial and industrial $ 20 $ — $ 13 $ — Commercial real estate 2,230 13 2,347 15 Residential real estate 1,035 3 1,490 3 Total impaired loans without a related allowance 3,285 16 3,850 18 With an allowance recorded: Commercial and industrial — — 32 — Commercial real estate 2,680 16 2,859 16 Residential real estate 577 — 572 6 Consumer and other 111 — 92 — Total impaired loans with an allowance 3,368 16 3,555 22 Total impaired loans $ 6,653 $ 32 $ 7,405 $ 40 We recognize interest income on performing impaired loans as payments are received. On non-performing impaired loans we do not recognize interest income as all payments are recorded as a reduction of principal on such loans. Impaired loans 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, postponement or forgiveness of principal, forbearance or other actions intended to maximize collection. The concessions rarely result in the forgiveness of principal or accrued interest. In addition, we attempt to obtain additional collateral or guarantor support when modifying such loans. Non-accruing restructured loans may be returned to accrual status when there has been a sustained period of repayment performance (generally six consecutive months of payments) and both principal and interest are deemed collectible. The following table presents the recorded investment in troubled debt restructured loans, based on payment performance status: (Dollars in thousands) Commercial Real Estate Residential Real Estate Total June 30, 2016 Performing $ 1,128 $ 130 $ 1,258 Non-performing 1,825 — 1,825 Total $ 2,953 $ 130 $ 3,083 December 31, 2015 Performing $ 1,144 $ 409 $ 1,553 Non-performing 1,831 194 2,025 Total $ 2,975 $ 603 $ 3,578 Troubled debt restructured loans are considered impaired and are included in the previous impaired loans disclosures in this footnote. As of June 30, 2016 , we have not committed to lend additional amounts to customers with outstanding loans that are classified as troubled debt restructurings. There were no troubled debt restructurings that occurred during the three and six months ended June 30, 2016 and 2015 . There were no troubled debt restructurings for which there was a payment default within twelve months following the date of the restructuring for the three months ended June 30, 2016 and 2015 . We may obtain physical possession of residential real estate collateralizing a consumer mortgage loan via foreclosure on an in-substance repossession. As of both June 30, 2016 and December 31, 2015 , we held $130 thousand in foreclosed residential real estate properties as a result of obtaining physical possession. In addition, as of June 30, 2016 and December 31, 2015 , respectively, we had consumer loans with a carrying value of $680 thousand and $945 thousand collateralized by residential real estate property for which formal foreclosure proceedings were in process. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Basic earnings per share are calculated by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares (unvested restricted stock grants and stock options) had been issued, as well as any adjustment to income that would result from the assumed issuance of potential common shares that may be issued by us. Potential common shares related to stock options are determined using the treasury stock method. Three Months Ended June 30, 2016 Three Months Ended June 30, 2015 (In thousands, except share and per share data) Income (Numerator) Shares (Denominator) Per Share Amount Income (Numerator) Shares (Denominator) Per Share Amount Basic earnings per share: Net earnings applicable to common stockholders $ 1,109 4,590,480 $ 0.24 $ 884 4,563,073 $ 0.19 Effect of dilutive securities: Unvested stock awards — 26,561 — 31,901 Diluted earnings per share: Net income applicable to common stockholders and assumed conversions $ 1,109 4,617,041 $ 0.24 $ 884 4,594,974 $ 0.19 Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 (In thousands, except share and per share data) Income (Numerator) Shares (Denominator) Per Share Amount Income (Numerator) Shares (Denominator) Per Share Amount Basic earnings per share: Net earnings applicable to common stockholders $ 2,683 4,584,536 $ 0.59 $ 1,836 4,567,091 $ 0.40 Effect of dilutive securities: Unvested stock awards — 25,640 — 29,986 Diluted earnings per share: Net income applicable to common stockholders and assumed conversions $ 2,683 4,610,176 $ 0.58 $ 1,836 4,597,077 $ 0.40 There were 57,038 and 57,423 shares of unvested restricted stock awards and options outstanding during the three months ended June 30, 2016 and 2015 , respectively, which were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive. There was 64,238 and 83,714 shares of unvested restricted stock awards and options outstanding during the six months ended June 30, 2016 and 2015, respectively, which were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive. |
Other Comprehensive Income
Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2016 | |
Other Comprehensive Income [Abstract] | |
Other Comprehensive Income | OTHER COMPREHENSIVE INCOME Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities, are reported as a separate component of the equity section of the balance sheet, such items, along with net income, are components of comprehensive income. The components of other comprehensive income, both before tax and net of tax, are as follows: Three Months Ended June 30, 2016 Three Months Ended June 30, 2015 Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax (Dollars in thousands) Other comprehensive income (loss): Unrealized gains (losses) on available for sale securities $ 1,576 $ 630 $ 946 $ (1,166 ) $ (467 ) $ (699 ) Fair value adjustments on derivatives (1,149 ) (459 ) (690 ) — — — Reclassification adjustment for net gains on securities transactions included in net income (105 ) (42 ) (63 ) (88 ) (35 ) (53 ) Total other comprehensive income $ 322 $ 129 $ 193 $ (1,254 ) $ (502 ) $ (752 ) Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax (Dollars in thousands) Other comprehensive income (loss): Unrealized gains (losses) on available for sale securities $ 2,561 $ 1,024 $ 1,537 $ (850 ) $ (340 ) $ (510 ) Fair value adjustments on derivatives (1,549 ) (619 ) (930 ) — — — Reclassification adjustment for net gains on securities transactions included in net income (272 ) (109 ) (163 ) (256 ) (102 ) (154 ) Total other comprehensive income $ 740 $ 296 $ 444 $ (1,106 ) $ (442 ) $ (664 ) |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION Our insurance agency operations are managed separately from the traditional banking and related financial services that we also offer. The insurance agency operation provides commercial, individual, and group benefit plans and personal coverage. Three Months Ended June 30, 2016 Three Months Ended June 30, 2015 Banking and Financial Services Insurance Services Total Banking and Financial Services Insurance Services Total (Dollars in thousands) Net interest income from external sources $ 5,817 $ — $ 5,817 $ 4,929 $ — $ 4,929 Other income from external sources 781 1,045 1,826 758 743 1,501 Depreciation and amortization 281 7 288 247 7 254 Income before income taxes 1,556 104 1,660 1,280 28 1,308 Income tax expense (1) 509 42 551 413 11 424 Total assets 783,239 6,573 789,812 615,302 4,695 619,997 Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 Banking and Financial Services Insurance Services Total Banking and Financial Services Insurance Services Total (Dollars in thousands) Net interest income from external sources $ 11,463 $ — $ 11,463 $ 9,731 $ — $ 9,731 Other income from external sources 1,567 2,783 4,350 1,501 1,901 3,402 Depreciation and amortization 533 13 546 486 11 497 Income before income taxes 3,070 939 4,009 2,208 428 2,636 Income tax expense (1) 950 376 1,326 629 171 800 Total assets 783,239 6,573 789,812 615,302 4,695 619,997 (1) Insurance Services calculated at statutory tax rate of 40% . |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2016 | |
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION We currently have stock-based compensation plans in place for our directors, officers, employees, consultants and advisors. Under the terms of these plans we may grant restricted shares and stock options for the purchase of our common stock. The stock-based compensation is granted under terms determined by our Compensation Committee. Our standard stock option grants have a maximum term of 10 yea rs, generally vest over periods ranging between one and four years , and are granted with an exercise price equal to the fair market value of the common stock on the date of grant. Restricted stock is valued at the market value of the common stock on the date of grant and generally vests over periods of two to seven years . All dividends paid on restricted stock, whether vested or unvested, are paid to the shareholder. Information regarding our stock option plans for the six months ended June 30, 2016 is as follows: Number of Shares Weighted Average Exercise Price per Share Weighted Average Contractual Term Aggregate Intrinsic Value Options outstanding, beginning of year 51,985 $ 10.06 Options granted 26,216 12.83 Options expired (1,798 ) 10.25 Options exercised (449 ) $ 10.25 Options outstanding, end of quarter 75,954 $ 11.01 8.9 $ 178,660 Options exercisable, end of quarter 9,947 $ 10.05 8.4 $ 56,349 Option price range at end of quarter $9.97 to $12.83 Option price of exercisable shares $9.97 to $12.83 The following table summarizes information about stock option assumptions: 2016 2015 Expected dividend yield 1.25 % 1.56 % Expected volatility 22.72 % 34.32 % Risk-free interest rate 1.71 % 1.37 % Expected option life 7.5 years 7.5 years During the three months ended June 30, 2016 and 2015 , we expensed $13 thousand and $9 thousand , respectively, in stock-based compensation under stock option awards. During the six month ended June 30, 2016 and 2015, we expensed $24 thousand and $18 thousand , respectively, in stock-based compensation under stock option awards. The weighted average grant date fair values of options granted during the six months ended June 30, 2016 and 2015 , were $3.37 per share and $3.56 per share, respectively. Expected future expense relating to the unvested options outstanding as of June 30, 2016 is $207 thousand over a weighted average period of 4.1 years. Upon exercise of vested options, management expects to draw on treasury stock as the source of the shares. The summary of changes in unvested restricted stock awards for the six months ended June 30, 2016 , is as follows: Number of Shares Weighted Average Grant Date Fair Value Unvested restricted stock, beginning of year 93,570 $ 7.67 Granted 38,022 13.09 Forfeited (1,885 ) 9.52 Vested (45,990 ) 7.11 Unvested restricted stock, end of period 83,717 $ 10.24 During the three months ended June 30, 2016 and 2015 , we expensed $98 thousand and $85 thousand , respectively, in stock-based compensation under restricted stock awards. During the six months ended June 30, 2016 and 2015, we expensed $188 thousand and $167 thousand , respectively, in stock-based compensation under restricted stock awards. At June 30, 2016 , unrecognized compensation expense for unvested restricted stock was $702 thousand , which is expected to be recognized over an average period of 1.9 years. |
Guarantees
Guarantees | 6 Months Ended |
Jun. 30, 2016 | |
Guarantees [Abstract] | |
Guarantees | GUARANTEES We do not issue any guarantees that would require liability recognition or disclosure, other than standby letters of credit. Standby letters of credit are conditional commitments issued by us to guarantee the performance of a customer to a third party. Generally, all letters of credit, when issued, have expiration dates within one year . The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. Generally, we hold collateral and/or personal guarantees supporting these commitments. As of June 30, 2016 , we had $514 thousand of outstanding letters of credit. Management believes that the proceeds obtained through a liquidation of collateral and the enforcement of guarantees would be sufficient to cover the potential amount of future payments required under the corresponding guarantees. The amount of the liability as of June 30, 2016 , for guarantees under standby letters of credit issued is not material. |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS Management uses its best judgment in estimating the fair value of our financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts we could have realized in a sale transaction on the dates indicated. The fair value amounts have been measured as of their respective period ends, and have not been re-evaluated or updated for purposes of these financial statements subsequent to those respective dates. As such, the fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported at each period end. In accordance with U.S. GAAP, we use a hierarchical disclosure framework associated with the level of pricing observability utilized in measuring assets and liabilities at fair value. The three broad levels defined by the hierarchy are as follows: • Level I - Quoted prices are available in active markets for identical assets or liabilities as of the reported date. • Level II - Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these asset and liabilities include items for which quoted prices are available but traded less frequently, and items that are fair valued using other financial instruments, the parameters of which can be directly observed. • Level III - Assets and liabilities that have little to no pricing observability as of reported date. These items do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. The following table summarizes the fair value of our financial assets measured on a recurring basis by the above pricing observability levels as of June 30, 2016 and December 31, 2015 : (Dollars in thousands) Fair Value Measurements Quoted Prices in Active Markets for Identical Assets (Level I) Significant Other Observable Inputs (Level II) Significant Unobservable Inputs (Level III) June 30, 2016 U.S. government agencies $ 14,033 $ — $ 14,033 $ — State and political subdivisions 36,758 — 36,758 — Mortgage-backed securities - U.S. government-sponsored enterprises 44,006 — 44,006 — Derivative instruments Interest rate swaps (1,549 ) — (1,549 ) — December 31, 2015 U.S. government agencies $ 12,788 $ — $ 12,788 $ — State and political subdivisions 38,149 — 38,149 — Mortgage-backed securities - U.S. government-sponsored enterprises 42,839 — 42,839 — Our available for sale and held to maturity securities portfolios contain investments, which were all rated within our investment policy guidelines at time of purchase, and upon review of the entire portfolio all securities are marketable and have observable pricing inputs. For financial assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at June 30, 2016 and December 31, 2015 are as follows: (Dollars in thousands) Fair Value Measurements Quoted Prices in Active Markets for Identical Assets (Level I) Significant Other Observable Inputs (Level II) Significant Unobservable Inputs (Level III) June 30, 2016 Impaired loans $ 464 $ — $ — $ 464 Foreclosed real estate 738 — — 738 December 31, 2015 Impaired loans $ 801 $ — $ — $ 801 Foreclosed real estate 756 — — 756 The following table presents additional qualitative information about assets measured at fair value on a nonrecurring basis and for which Level III inputs were used to determine fair value: Qualitative Information about Level III Fair Value Measurements (Dollars in thousands) Fair Value Estimate Valuation Techniques Unobservable Input Range (Weighted Average) June 30, 2016 Impaired loans $ 464 Appraisal of Appraisal 0% to -43.7% collateral adjustments (1) (-4.6%) Foreclosed real estate 738 Appraisal of Selling collateral expenses (1) -7.0%(-7.0%) December 31, 2015 Impaired loans $ 801 Appraisal of Appraisal 0% to -61.8% collateral adjustments (1) (-5.8%) Foreclosed real estate 756 Appraisal of Selling collateral expenses (1) -7.0% (-7.0%) (1) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated selling expenses. The range and weighted average of selling expenses and other appraisal adjustments are presented as a percentage of the appraisal. The following information should not be interpreted as an estimate of the fair value of the entire company since a fair value calculation is only provided for a limited portion of our assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between our disclosures and those of other companies may not be meaningful. The following methods and assumptions were used to estimate the fair value of our financial instruments at June 30, 2016 and December 31, 2015 : Cash and Cash Equivalents (Carried at Cost): The carrying amounts reported in the balance sheet for cash and cash equivalents approximate those assets’ fair value. Deposits (Carried at Cost): Fair value for fixed-rate time certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered in the market on certificates to a schedule of aggregated expected monthly maturities on time deposits. We generally purchase amounts below the insured limit, limiting the amount of credit risk on these time deposits. Securities: The fair value of securities, available for sale (carried at fair value) and securities held to maturity (carried at amortized cost) are determined by obtaining quoted market prices on nationally recognized securities exchanges (Level I), or matrix pricing (Level II), which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted prices. For certain securities which are not traded in active markets or are subject to transfer restrictions, valuations are adjusted to reflect illiquidity and/or non-transferability, and such adjustments are generally based on available market evidence (Level III). In the absence of such evidence, management’s best estimate is used. Federal Home Loan Bank Stock (Carried at Cost): The carrying amount of restricted investment in bank stock approximates fair value and considers the limited marketability of such securities. Loans Receivable (Carried at Cost): The fair values of non-impaired loans are estimated using discounted cash flow analyses, using the market rates at the balance sheet date that reflect the credit and interest rate-risk inherent in the loans. Projected future cash flows are calculated based upon contractual maturity or call dates, projected repayments and prepayments of principal. Generally, for variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. Impaired Loans (Carried at Lower of Cost or Fair Value): Fair value of impaired loans is generally determined based upon independent third-party appraisals of the properties, or discounted cash flows based upon the expected proceeds. These assets are included in Level III fair values, based upon the lowest level of input that is significant to the fair value measurements. The fair value of impaired loans totaled $464 thousand and $801 thousand at June 30, 2016 and December 31, 2015 , respectively. These balances consist of loans that were written down or required additional reserves during the periods ended June 30, 2016 and December 31, 2015 , respectively. Deposit Liabilities (Carried at Cost): The fair values disclosed for demand, savings and money market accounts are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered in the market on certificates to a schedule of aggregated expected monthly maturities on time deposits. Borrowings (Carried at Cost): Fair values of Federal Home Loan Bank (“FHLB”) advances are estimated using discounted cash flow analysis, based on quoted prices for new FHLB advances with similar credit risk characteristics, terms and remaining maturity. These prices obtained from this active market represent a market value that is deemed to represent the transfer price if the liability were assumed by a third party. Derivatives (Carried at Fair Value): The Company also uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges, and which satisfy hedge accounting requirements, involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without the exchange of the underlying notional amount. These derivatives were used to hedge the variable cash outflows associated with FHLB borrowings along with our junior subordinated debenture at U.S. Capital Trust. The effective portion of changes in the fair value of these derivatives are recorded in accumulated other comprehensive income, and are subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of these derivatives are recognized directly in earnings. The fair value of the Company's derivatives are determined using discounted cash flow analysis using observable market-based inputs, which are considered Level 2 inputs. Junior Subordinated Debentures (Carried at Cost): Fair values of junior subordinated debt are estimated using discounted cash flow analysis, based on market rates currently offered on such debt with similar credit risk characteristics, terms and remaining maturity. Accrued Interest Receivable and Accrued Interest Payable (Carried at Cost): The carrying amounts of accrued interest receivable and payable approximate its fair value. Off-Balance Sheet Instruments (Disclosed at Cost): Fair values for our off-balance sheet financial instruments (lending commitments and letters of credit) are based on fees currently charged in the market to enter into similar agreements, taking into account, the remaining terms of the agreements and the counterparties’ credit standing. The fair values of our financial instruments at June 30, 2016 and December 31, 2015 , were as follows: June 30, 2016 Quoted Prices in Active Markets for Identical Assets (Level I) Significant Other Observable Inputs (Level II) Significant Unobservable Inputs (Level III) (Dollars in thousands) Carrying Amount Fair Value Financial assets: Cash and cash equivalents $ 12,305 $ 12,305 $ 12,305 $ — $ — Time deposits with other banks 100 100 — 100 — Securities available for sale 94,797 94,797 — 94,797 — Securities held to maturity 5,660 5,929 — 5,929 — Federal Home Loan Bank stock 6,268 6,268 — 6,268 — Loans receivable, net of allowance 634,199 635,989 — — 635,989 Accrued interest receivable 2,366 2,366 — 2,366 — Financial liabilities: Non-maturity deposits 428,511 428,511 — 428,511 — Time deposits 166,313 166,830 — 166,830 — Short-term borrowings 52,875 52,835 52,835 — — Long-term borrowings 66,000 64,484 — 64,484 — Junior subordinated debentures 12,887 11,048 — 11,048 — Accrued interest payable 376 376 — 376 — Derivative instruments: Interest rate swaps (1,549 ) (1,549 ) — (1,549 ) — December 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level I) Significant Other Observable Inputs (Level II) Significant Unobservable Inputs (Level III) (Dollars in thousands) Carrying Amount Fair Value Financial assets: Cash and cash equivalents $ 6,120 $ 6,120 $ 6,120 $ — $ — Time deposits with other banks 100 100 — 100 — Securities available for sale 93,776 93,776 — 93,776 — Securities held to maturity 6,834 7,008 — 7,008 — Federal Home Loan Bank stock 5,165 5,165 — 5,165 — Loans receivable, net of allowance 537,833 528,065 — — 528,065 Accrued interest receivable 1,764 1,764 — 1,764 — Financial liabilities: Non-maturity deposits 380,983 380,983 — 380,983 — Time deposits 136,873 136,619 — 136,619 — Short-term borrowings 34,650 34,650 34,650 — — Long-term borrowings 61,000 58,685 — 58,685 — Junior subordinated debentures 12,887 9,344 — 9,344 — Accrued interest payable 281 281 — 281 — |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | DERIVATIVES The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges are recorded in accumulated other comprehensive income and are subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During the three months ended June 30, 2016 such derivatives were used to hedge the variable cash outflows associated with four FHLB borrowings totaling $26.0 million . The Company entered into an interest rate swap agreement to hedge its $12.5 million variable rate (3 Mo Libor + 1.44% ) junior subordinated debt issued by Sussex Capital Trust II, a non-consolidated wholly-owned subsidiary of the Company, for 10 years at a fixed rate of 3.10% . The ineffective portion of the change in fair value of the derivatives are recognized directly in earnings. The Company implemented this program during the quarter ended March 31, 2016. During the three and six months ended June 30, 2016 the Company did not record any hedge ineffectiveness. The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Statements of Financial Condition at June 30, 2016: June 30, 2016 Notional/ Contract Amount Fair Value Balance Sheet Location Expiration Date (Dollars in thousands) Derivatives designated as hedging instruments Interest rate swaps by effective date: March 15, 2016 $ 12,500 $ (387 ) Other Liabilities 2026-03-15 December 15, 2016 5,000 (250 ) Other Liabilities 2026-12-15 June 15, 2017 6,000 (303 ) Other Liabilities 2027-06-15 December 15, 2017 10,000 (393 ) Other Liabilities 2027-12-15 December 15, 2017 5,000 (216 ) Other Liabilities 2027-12-15 Total $ 38,500 $ (1,549 ) The table below presents the Company’s derivative financial instruments that are designated as cash flow hedgers of interest rate risk and their effect on the Company’s Consolidated Statements of Financial Conditions during the three months ended June 30, 2016: Three Months Ended June 30, 2016 Amount of Loss Recognized in OCI on Derivatives, net of Tax (Effective Portion) Location of Gain (Loss) Recognized in Income of Derivatives (Ineffective Portion) Amount of Gain (Loss) Recognized in Income of Derivatives (Ineffective Portion) (Dollars in thousands) Derivatives in cash flow hedges Interest rate swaps by effective date: March 15, 2016 $ (168 ) Not applicable $ — December 15, 2016 (53 ) Not applicable — June 15, 2017 (68 ) Not applicable — December 15, 2017 (165 ) Not applicable — December 15, 2017 (75 ) Not applicable — Total $ (529 ) $ — The table below presents the Company’s derivative financial instruments that are designated as cash flow hedgers of interest rate risk and their effect on the Company’s Consolidated Statements of Financial Conditions during the six months ended June 30, 2016: Six Months Ended June 30, 2016 Amount of Loss Recognized in OCI on Derivatives, net of Tax (Effective Portion) Location of Gain (Loss) Recognized in Income of Derivatives (Ineffective Portion) Amount of Gain (Loss) Recognized in Income of Derivatives (Ineffective Portion) (Dollars in thousands) Derivatives in cash flow hedges Interest rate swaps by effective date: March 15, 2016 $ (232 ) Not applicable $ — December 15, 2016 (150 ) Not applicable — June 15, 2017 (182 ) Not applicable — December 15, 2017 (236 ) Not applicable — December 15, 2017 (129 ) Not applicable — Total $ (929 ) $ — |
Summary Of Significant Accoun19
Summary Of Significant Accounting Policies (Policy) | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements include the accounts of Sussex Bancorp (“we,” “us,” “our” or the “company”) and our wholly owned subsidiary Sussex Bank (the “Bank”). The Bank’s wholly owned subsidiaries are SCB Investment Company, Inc., SCBNY Company, Inc., ClassicLake Enterprises, LLC, Wheatsworth Properties Corp., PPD Holding Company, LLC, and Tri-State Insurance Agency, Inc. (“Tri-State”), a full service insurance agency located in Sussex County, New Jersey with a satellite office located in Bergen County, New Jersey. Tri-State’s operations are considered a separate segment for financial disclosure purposes. All inter-company transactions and balances have been eliminated in consolidation. The Bank operates eleven banking offices, eight located in Sussex County, New Jersey, one located in Bergen County, New Jersey, one located in Warren County, New Jersey, and one in Queens County, New York. We are subject to the supervision and regulation of the Board of Governors of the Federal Reserve System (the “FRB”). The Bank’s deposits are insured by the Deposit Insurance Fund (“DIF”) of the FDIC up to applicable limits. The operations of the company and the Bank are subject to the supervision and regulation of the FRB, the FDIC and the New Jersey Department of Banking and Insurance (the “Department”) and the operations of Tri-State are subject to supervision and regulation by the Department. The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information. Accordingly, they do not include all of the information and footnotes required by the accounting principles generally accepted in the United States of America (“U.S. GAAP”) for full year financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and are of a normal, recurring nature. Operating results for the three and six month periods ended June 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 . These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto that are included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015 . |
New Accounting Standards | New Accounting Standards In May 2014, Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers . The ASU’s core principle is built on the contract between a vendor and a customer for the provision of goods and services. It attempts to depict the exchange of rights and obligations between the parties in the pattern of revenue recognition based on the consideration to which the vendor is entitled. To accomplish this objective, the standard requires five basic steps: i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date. The amendments in ASU 2015-14 defer the effective date of ASU 2014-09 for all entities by one year. Accordingly, the amendments are effective for annual and interim periods beginning after December 15, 2017. Early adoption is permitted for annual and interim reporting periods beginning after December 15, 2016. In March, 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , that clarifies how to apply revenue recognition guidance related to whether an entity is a principal or an agent. The update clarifies that an entity is a principal when it controls the specified good or service before that good or service is transferred to the customer, and is an agent when it does not control the specified good or service before it is transferred to the customer. In May, 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606), Narrow-Scope Improvements and Practical Expedients , that amended its new revenue recognition guidance on transition, collectibility, noncash consideration and the presentation of sales and other similar taxes. The amendments clarify that, for a contract to be considered completed at transition, all (or substantially all) of the revenue must have been recognized under legacy GAAP. The FASB also added a practical expedient to ease transition for contracts that were modified prior to adoption of the revenue standard under both the full and modified retrospective transition approaches. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In June 2014, FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force) , to clarify that a performance target in a share-based compensation award that could be achieved after an employee completes the requisite service period should be treated as a performance condition that affects the vesting of the award. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. For all entities, the amendments are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The adoption of this guidance did not have a material impact on our consolidated financial statements. In April 2015, FASB issued ASU 2015-05, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement , to clarify whether a hosting arrangement (e.g., cloud computing, software as a service, infrastructure as a service, etc.) contains a software license, and thus, whether it is to be accounted for by the customer similarly to other internal-use software. Specifically, the amendments revise the scope of Subtopic 350-40 to include internal-use software accessed through a hosting arrangement only if both of the following criteria are met: (1) the customer has the contractual right to take possession of the software at any time during the hosting period without significant penalty. There is no significant penalty if the customer has the ability to take delivery of the software without incurring significant cost and the ability to use the software separately without significant loss of utility or value and (2) it is feasible for the customer to either run the software on its own hardware or contract with another party unrelated to the vendor to host the software. If both of the above criteria are present in a hosting arrangement, then the arrangement contains a software license and the customer should account for that element in accordance with Subtopic 350-40 (i.e., generally capitalize and subsequently amortize the cost of the license). If both of the above criteria are not present, the customer should account for the arrangement as a service contract (i.e., expense fees as incurred). The amendments are effective for public business entities for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. An entity can elect to adopt the amendments either (1) prospectively to all arrangements entered into or materially modified after the effective date or (2) retrospectively. The adoption of this guidance did not have a material impact on our consolidated financial statements. In January 2016, FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01, among other things; (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements; and (vii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale. For public entities, the guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. The Company is currently evaluating the impact of the pending adoption of the new standard on its consolidated financial statements. In February 2016, FASB issued ASU 2016-02, Leases (Topic 842) . Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (i) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (ii) 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. Public business entities should apply the amendments in ASU 2016-02 for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted for all public business entities upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is currently evaluating the impact of the pending adoption of the new standard on its consolidated financial statements. In March 2016, FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . FASB is issuing ASU 2016-09 as part of its initiative to reduce complexity in accounting standards. The areas for simplification in this ASU 2016-09 involve several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Some of the areas for simplification apply only to nonpublic entities. For public business entities, the amendments in this update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any entity in any interim or annual period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The Company is currently evaluating the impact of the pending adoption of the new standard on its consolidated financial statements. In June, 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments – Credit Losses (Topic 326) (the “ASU”), which introduces new guidance for the accounting for credit losses on instruments within its scope. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale (AFS) debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. The ASU will be effective for Public business entities that are SEC filers in fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All other entities will have one additional year. Early application of the guidance will be permitted for all entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact of the pending adoption of the new standard on its consolidated financial statements. |
Securities (Tables)
Securities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Investments [Abstract] | |
Amortized Cost And Approximate Fair Value Of Securities Available For Sale | The amortized cost and approximate fair value of securities available for sale as of June 30, 2016 and December 31, 2015 are summarized as follows: (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30, 2016 U.S. government agencies $ 14,044 $ 38 $ (49 ) $ 14,033 State and political subdivisions 34,978 1,780 — 36,758 Mortgage-backed securities - U.S. government-sponsored enterprises 43,343 753 (90 ) 44,006 $ 92,365 $ 2,571 $ (139 ) $ 94,797 December 31, 2015 U.S. government agencies $ 12,792 $ 51 $ (55 ) $ 12,788 State and political subdivisions 37,771 507 (129 ) 38,149 Mortgage-backed securities - U.S. government-sponsored enterprises 43,069 206 (436 ) 42,839 $ 93,632 $ 764 $ (620 ) $ 93,776 |
Amortized Cost And Fair Value Of Securities By Contractual Maturity Of Available-For-Sale Securities | (Dollars in thousands) Amortized Cost Fair Value Due in one year or less $ — $ — Due after one year through five years 699 712 Due after five years through ten years 3,653 3,826 Due after ten years 30,626 32,220 Total bonds and obligations 34,978 36,758 U.S. government agencies 14,044 14,033 Mortgage-backed securities: U.S. government-sponsored enterprises 43,343 44,006 Total available for sale securities $ 92,365 $ 94,797 |
Temporarily Impaired Gross Unrealized Losses And Fair Value Of Available-For-Sale Securities | The following table shows gross unrealized losses and fair value of securities with unrealized losses that are not deemed to be other than temporarily impaired, aggregated by category and length of time that individual available for sale securities have been in a continuous unrealized loss position at June 30, 2016 and December 31, 2015 . Less Than 12 Months 12 Months or More Total (Dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses June 30, 2016 U.S. government agencies $ 4,482 $ (47 ) $ 1,810 $ (2 ) $ 6,292 $ (49 ) Mortgage-backed securities - U.S. government-sponsored enterprises 11,405 (90 ) — — 11,405 (90 ) Total temporarily impaired securities $ 15,887 $ (137 ) $ 1,810 $ (2 ) $ 17,697 $ (139 ) December 31, 2015 U.S. government agencies $ 5,888 $ (23 ) $ 2,473 $ (32 ) $ 8,361 $ (55 ) State and political subdivisions 5,780 (107 ) 2,998 (22 ) 8,778 (129 ) Mortgage-backed securities - U.S. government-sponsored enterprises 31,885 (436 ) — — 31,885 (436 ) Total temporarily impaired securities $ 43,553 $ (566 ) $ 5,471 $ (54 ) $ 49,024 $ (620 ) |
Amortized Cost And Approximate Fair Value Of Securities Held-To-Maturity | The amortized cost and approximate fair value of securities held to maturity as of June 30, 2016 and December 31, 2015 are summarized as follows: (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30, 2016 State and political subdivisions $ 5,660 $ 269 $ — $ 5,929 December 31, 2015 State and political subdivisions $ 6,834 $ 174 $ — $ 7,008 |
Amortized Cost And Fair Value Of Securities By Contractual Maturity Of Held-To-Maturity Securities | The amortized cost and carrying value of securities held to maturity at June 30, 2016 are shown below by contractual maturity. Actual maturities may differ from contractual maturities as issuers may have the right to call or prepay obligations with or without call or prepayment penalties. (Dollars in thousands) Amortized Cost Fair Value Due in one year or less $ 2,792 $ 2,792 Due after one year through five years — — Due after five years through ten years 1,823 1,951 Due after ten years 1,045 1,186 Total held to maturity securities $ 5,660 $ 5,929 |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Composition Of Net Loans Receivable | The composition of net loans receivable at June 30, 2016 and December 31, 2015 is as follows: (Dollars in thousands) June 30, 2016 December 31, 2015 Commercial and industrial $ 31,800 $ 20,023 Construction 16,474 13,348 Commercial real estate 453,679 382,262 Residential real estate 137,903 127,204 Consumer and other 1,178 1,253 Total loans receivable 641,034 544,090 Unearned net loan origination fees (847 ) (667 ) Allowance for loan losses (5,988 ) (5,590 ) Net loans receivable $ 634,199 $ 537,833 |
Allowance For Loan Losses And22
Allowance For Loan Losses And Credit Quality Of Financing Receivables (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
Changes In The Allowance For Loan Losses | The following table presents changes in the allowance for loan losses disaggregated by the class of loans receivable for the three months ended June 30, 2016 and 2015 : (Dollars in thousands) Commercial and Industrial Construction Commercial Real Estate Residential Real Estate Consumer and Other Unallocated Total Three Months Ended: June 30, 2016 Beginning balance $ 98 $ 267 $ 3,847 $ 908 $ 121 $ 571 $ 5,812 Charge-offs (138 ) — (65 ) (25 ) — — (228 ) Recoveries 9 — 3 6 1 — 19 Provision 230 (59 ) 235 25 (105 ) 59 385 Ending balance $ 199 $ 208 $ 4,020 $ 914 $ 17 $ 630 $ 5,988 June 30, 2015 Beginning balance $ 138 388 $ 3,787 $ 841 $ 88 $ 521 $ 5,763 Charge-offs — — (235 ) — (4 ) — (239 ) Recoveries 1 — 24 1 2 — 28 Provision (53 ) (111 ) 37 56 — 271 200 Ending balance $ 86 $ 277 $ 3,613 $ 898 $ 86 $ 792 $ 5,752 Six Months Ended: June 30, 2016 Beginning balance $ 85 220 $ 3,646 $ 784 $ 87 $ 768 $ 5,590 Charge-offs (138 ) — (65 ) (34 ) (19 ) — (256 ) Recoveries 16 — 34 6 2 — 58 Provision 236 (12 ) 405 158 (53 ) (138 ) 596 Ending balance $ 199 $ 208 $ 4,020 $ 914 $ 17 $ 630 $ 5,988 June 30, 2015 Beginning balance $ 231 383 $ 3,491 $ 903 $ 19 $ 614 $ 5,641 Charge-offs (19 ) — (423 ) — (11 ) — (453 ) Recoveries 5 — 36 13 5 — 59 Provision (131 ) (106 ) 509 (18 ) 73 178 505 Ending balance $ 86 $ 277 $ 3,613 $ 898 $ 86 $ 792 $ 5,752 |
Allowances Of Loan Losses And Loans Receivable By Class Disaggregated | The following table presents the balance of the allowance of loan losses and loans receivable by class at June 30, 2016 and December 31, 2015 disaggregated on the basis of our impairment methodology. Allowance for Loan Losses Loans Receivable (Dollars in thousands) Balance Balance Loans Individually Evaluated for Impairment Balance Related to Loans Collectively Evaluated for Impairment Balance Individually Evaluated for Impairment Collectively Evaluated for Impairment June 30, 2016 Commercial and industrial $ 199 $ — $ 199 $ 31,800 $ 20 $ 31,780 Construction 208 — 208 16,474 — 16,474 Commercial real estate 4,020 203 3,817 453,679 4,497 449,182 Residential real estate 914 29 885 137,903 1,391 136,512 Consumer and other loans 17 — 17 1,178 — 1,178 Unallocated 630 — — — — — Total $ 5,988 $ 232 $ 5,126 $ 641,034 $ 5,908 $ 635,126 December 31, 2015 Commercial and industrial $ 85 $ — $ 85 $ 20,023 $ 20 $ 20,003 Construction 220 — 220 13,348 — 13,348 Commercial real estate 3,646 112 3,534 382,262 5,160 377,102 Residential real estate 784 79 705 127,204 1,546 125,658 Consumer and other loans 87 73 14 1,253 138 1,115 Unallocated 768 — — — — — Total $ 5,590 $ 264 $ 4,558 $ 544,090 $ 6,864 $ 537,226 |
An Age Analysis Of Loans Receivable | An age analysis of loans receivable, which were past due as of June 30, 2016 and December 31, 2015 , is as follows: (Dollars in thousands) 30-59 Days Past Due 60-89 days Past Due Greater Than 90 Days (a) Total Past Due Current Total Financing Receivables Recorded Investment > 90 Days and Accruing June 30, 2016 Commercial and industrial $ 94 $ — $ 20 $ 114 $ 31,686 $ 31,800 $ — Construction — — — — 16,474 16,474 — Commercial real estate 3,056 729 3,370 7,155 446,524 453,679 — Residential real estate 273 808 1,260 2,341 135,562 137,903 — Consumer and other 8 — — 8 1,170 1,178 — Total $ 3,431 $ 1,537 $ 4,650 $ 9,618 $ 631,416 $ 641,034 $ — December 31, 2015 Commercial and industrial $ 5 $ — $ 20 $ 25 $ 19,998 $ 20,023 $ — Construction — — — — 13,348 13,348 — Commercial real estate 758 1,461 4,016 6,235 376,027 382,262 — Residential real estate 335 247 1,138 1,720 125,484 127,204 — Consumer and other 16 1 138 155 1,098 1,253 — Total $ 1,114 $ 1,709 $ 5,312 $ 8,135 $ 535,955 $ 544,090 $ — (a) includes loans greater than 90 days past due and still accruing and non-accrual loans. |
Loans Which The Accrual Of Interest Has Been Discontinued | Loans for which the accrual of interest has been discontinued at June 30, 2016 and December 31, 2015 were: (Dollars in thousands) June 30, 2016 December 31, 2015 Commercial and industrial $ 20 $ 20 Commercial real estate 3,370 4,016 Residential real estate 1,260 1,138 Consumer and other — 138 Total $ 4,650 $ 5,312 |
Credit Risk Profile By Creditworthiness | The following tables illustrate our corporate credit risk profile by creditworthiness category as of June 30, 2016 and December 31, 2015 : (Dollars in thousands) Pass Special Mention Substandard Doubtful Total June 30, 2016 Commercial and industrial $ 31,753 $ 13 $ 34 $ — $ 31,800 Construction 16,474 — — — 16,474 Commercial real estate 439,558 8,807 5,314 — 453,679 Residential real estate 135,780 732 1,391 — 137,903 Consumer and other 1,178 — — — 1,178 $ 624,743 $ 9,552 $ 6,739 $ — $ 641,034 December 31, 2015 Commercial and industrial $ 19,983 $ 5 $ 35 $ — $ 20,023 Construction 13,348 — — — 13,348 Commercial real estate 367,305 8,957 6,000 — 382,262 Residential real estate 124,915 743 1,546 — 127,204 Consumer and other 1,115 — 138 — 1,253 $ 526,666 $ 9,705 $ 7,719 $ — $ 544,090 |
Impaired Loans | The following table reflects information about our impaired loans by class as of June 30, 2016 and December 31, 2015 : June 30, 2016 December 31, 2015 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Commercial and industrial $ 20 $ 20 $ — $ 20 $ 20 $ — Commercial real estate 2,018 2,018 — 2,684 2,684 — Residential real estate 1,248 1,248 — 1,123 1,152 — With an allowance recorded: Commercial real estate 2,479 2,479 203 2,476 2,476 112 Residential real estate 143 143 29 423 423 79 Consumer and other — — — 138 138 73 Total: Commercial and industrial 20 20 — 20 20 — Commercial real estate 4,497 4,497 203 5,160 5,160 112 Residential real estate 1,391 1,391 29 1,546 1,575 79 Consumer and other — — — 138 138 73 $ 5,908 $ 5,908 $ 232 $ 6,864 $ 6,893 $ 264 The following table presents the average recorded investment and income recognized for the three and six months ended June 30, 2016 and 2015 : For the Three Months Ended June 30, 2016 For the Three Months Ended June 30, 2015 (Dollars in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial and industrial $ 20 $ — $ 20 $ — Commercial real estate 2,113 5 1,937 10 Residential real estate 1,123 2 1,321 2 Total impaired loans without a related allowance 3,256 7 3,278 12 With an allowance recorded: Commercial real estate 2,701 8 3,319 8 Residential real estate 239 — 616 3 Consumer and other — — 92 — Total impaired loans with an allowance 2,940 8 4,027 11 Total impaired loans $ 6,196 $ 15 $ 7,305 $ 23 For the Six Months Ended June 30, 2016 For the Six Months Ended June 30, 2015 (Dollars in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial and industrial $ 20 $ — $ 13 $ — Commercial real estate 2,230 13 2,347 15 Residential real estate 1,035 3 1,490 3 Total impaired loans without a related allowance 3,285 16 3,850 18 With an allowance recorded: Commercial and industrial — — 32 — Commercial real estate 2,680 16 2,859 16 Residential real estate 577 — 572 6 Consumer and other 111 — 92 — Total impaired loans with an allowance 3,368 16 3,555 22 Total impaired loans $ 6,653 $ 32 $ 7,405 $ 40 |
Troubled Debt Restructured On Recorded Investment | The following table presents the recorded investment in troubled debt restructured loans, based on payment performance status: (Dollars in thousands) Commercial Real Estate Residential Real Estate Total June 30, 2016 Performing $ 1,128 $ 130 $ 1,258 Non-performing 1,825 — 1,825 Total $ 2,953 $ 130 $ 3,083 December 31, 2015 Performing $ 1,144 $ 409 $ 1,553 Non-performing 1,831 194 2,025 Total $ 2,975 $ 603 $ 3,578 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Calculation Methods Of Earnings Per Share | Potential common shares related to stock options are determined using the treasury stock method. Three Months Ended June 30, 2016 Three Months Ended June 30, 2015 (In thousands, except share and per share data) Income (Numerator) Shares (Denominator) Per Share Amount Income (Numerator) Shares (Denominator) Per Share Amount Basic earnings per share: Net earnings applicable to common stockholders $ 1,109 4,590,480 $ 0.24 $ 884 4,563,073 $ 0.19 Effect of dilutive securities: Unvested stock awards — 26,561 — 31,901 Diluted earnings per share: Net income applicable to common stockholders and assumed conversions $ 1,109 4,617,041 $ 0.24 $ 884 4,594,974 $ 0.19 Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 (In thousands, except share and per share data) Income (Numerator) Shares (Denominator) Per Share Amount Income (Numerator) Shares (Denominator) Per Share Amount Basic earnings per share: Net earnings applicable to common stockholders $ 2,683 4,584,536 $ 0.59 $ 1,836 4,567,091 $ 0.40 Effect of dilutive securities: Unvested stock awards — 25,640 — 29,986 Diluted earnings per share: Net income applicable to common stockholders and assumed conversions $ 2,683 4,610,176 $ 0.58 $ 1,836 4,597,077 $ 0.40 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Other Comprehensive Income [Abstract] | |
Components Of Other Comprehensive Income And Related Tax Effects | The components of other comprehensive income, both before tax and net of tax, are as follows: Three Months Ended June 30, 2016 Three Months Ended June 30, 2015 Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax (Dollars in thousands) Other comprehensive income (loss): Unrealized gains (losses) on available for sale securities $ 1,576 $ 630 $ 946 $ (1,166 ) $ (467 ) $ (699 ) Fair value adjustments on derivatives (1,149 ) (459 ) (690 ) — — — Reclassification adjustment for net gains on securities transactions included in net income (105 ) (42 ) (63 ) (88 ) (35 ) (53 ) Total other comprehensive income $ 322 $ 129 $ 193 $ (1,254 ) $ (502 ) $ (752 ) Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax (Dollars in thousands) Other comprehensive income (loss): Unrealized gains (losses) on available for sale securities $ 2,561 $ 1,024 $ 1,537 $ (850 ) $ (340 ) $ (510 ) Fair value adjustments on derivatives (1,549 ) (619 ) (930 ) — — — Reclassification adjustment for net gains on securities transactions included in net income (272 ) (109 ) (163 ) (256 ) (102 ) (154 ) Total other comprehensive income $ 740 $ 296 $ 444 $ (1,106 ) $ (442 ) $ (664 ) |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule Of Segment Reporting Information | The insurance agency operation provides commercial, individual, and group benefit plans and personal coverage. Three Months Ended June 30, 2016 Three Months Ended June 30, 2015 Banking and Financial Services Insurance Services Total Banking and Financial Services Insurance Services Total (Dollars in thousands) Net interest income from external sources $ 5,817 $ — $ 5,817 $ 4,929 $ — $ 4,929 Other income from external sources 781 1,045 1,826 758 743 1,501 Depreciation and amortization 281 7 288 247 7 254 Income before income taxes 1,556 104 1,660 1,280 28 1,308 Income tax expense (1) 509 42 551 413 11 424 Total assets 783,239 6,573 789,812 615,302 4,695 619,997 Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 Banking and Financial Services Insurance Services Total Banking and Financial Services Insurance Services Total (Dollars in thousands) Net interest income from external sources $ 11,463 $ — $ 11,463 $ 9,731 $ — $ 9,731 Other income from external sources 1,567 2,783 4,350 1,501 1,901 3,402 Depreciation and amortization 533 13 546 486 11 497 Income before income taxes 3,070 939 4,009 2,208 428 2,636 Income tax expense (1) 950 376 1,326 629 171 800 Total assets 783,239 6,573 789,812 615,302 4,695 619,997 (1) Insurance Services calculated at statutory tax rate of 40% |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |
Summary Of Information Regarding Stock Option Plans | Information regarding our stock option plans for the six months ended June 30, 2016 is as follows: Number of Shares Weighted Average Exercise Price per Share Weighted Average Contractual Term Aggregate Intrinsic Value Options outstanding, beginning of year 51,985 $ 10.06 Options granted 26,216 12.83 Options expired (1,798 ) 10.25 Options exercised (449 ) $ 10.25 Options outstanding, end of quarter 75,954 $ 11.01 8.9 $ 178,660 Options exercisable, end of quarter 9,947 $ 10.05 8.4 $ 56,349 Option price range at end of quarter $9.97 to $12.83 Option price of exercisable shares $9.97 to $12.83 |
Summary Of Stock Option Assumptions | The following table summarizes information about stock option assumptions: 2016 2015 Expected dividend yield 1.25 % 1.56 % Expected volatility 22.72 % 34.32 % Risk-free interest rate 1.71 % 1.37 % Expected option life 7.5 years 7.5 years |
Summary Of Information Regarding Restricted Stock Activity | The summary of changes in unvested restricted stock awards for the six months ended June 30, 2016 , is as follows: Number of Shares Weighted Average Grant Date Fair Value Unvested restricted stock, beginning of year 93,570 $ 7.67 Granted 38,022 13.09 Forfeited (1,885 ) 9.52 Vested (45,990 ) 7.11 Unvested restricted stock, end of period 83,717 $ 10.24 |
Fair Value Of Financial Instr27
Fair Value Of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Summary Of Financial Assets Measured On A Recurring Basis | The following table summarizes the fair value of our financial assets measured on a recurring basis by the above pricing observability levels as of June 30, 2016 and December 31, 2015 : (Dollars in thousands) Fair Value Measurements Quoted Prices in Active Markets for Identical Assets (Level I) Significant Other Observable Inputs (Level II) Significant Unobservable Inputs (Level III) June 30, 2016 U.S. government agencies $ 14,033 $ — $ 14,033 $ — State and political subdivisions 36,758 — 36,758 — Mortgage-backed securities - U.S. government-sponsored enterprises 44,006 — 44,006 — Derivative instruments Interest rate swaps (1,549 ) — (1,549 ) — December 31, 2015 U.S. government agencies $ 12,788 $ — $ 12,788 $ — State and political subdivisions 38,149 — 38,149 — Mortgage-backed securities - U.S. government-sponsored enterprises 42,839 — 42,839 — |
Summary Of Financial Assets Measured On A Nonrecurring Basis | For financial assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at June 30, 2016 and December 31, 2015 are as follows: (Dollars in thousands) Fair Value Measurements Quoted Prices in Active Markets for Identical Assets (Level I) Significant Other Observable Inputs (Level II) Significant Unobservable Inputs (Level III) June 30, 2016 Impaired loans $ 464 $ — $ — $ 464 Foreclosed real estate 738 — — 738 December 31, 2015 Impaired loans $ 801 $ — $ — $ 801 Foreclosed real estate 756 — — 756 |
Qualitative Information About Level 3 Fair Value Measurements | The following table presents additional qualitative information about assets measured at fair value on a nonrecurring basis and for which Level III inputs were used to determine fair value: Qualitative Information about Level III Fair Value Measurements (Dollars in thousands) Fair Value Estimate Valuation Techniques Unobservable Input Range (Weighted Average) June 30, 2016 Impaired loans $ 464 Appraisal of Appraisal 0% to -43.7% collateral adjustments (1) (-4.6%) Foreclosed real estate 738 Appraisal of Selling collateral expenses (1) -7.0%(-7.0%) December 31, 2015 Impaired loans $ 801 Appraisal of Appraisal 0% to -61.8% collateral adjustments (1) (-5.8%) Foreclosed real estate 756 Appraisal of Selling collateral expenses (1) -7.0% (-7.0%) (1) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated selling expenses. The range and weighted average of selling expenses and other appraisal adjustments are presented as a percentage of the appraisal. |
Estimated Fair Values Of Financial Instruments | The fair values of our financial instruments at June 30, 2016 and December 31, 2015 , were as follows: June 30, 2016 Quoted Prices in Active Markets for Identical Assets (Level I) Significant Other Observable Inputs (Level II) Significant Unobservable Inputs (Level III) (Dollars in thousands) Carrying Amount Fair Value Financial assets: Cash and cash equivalents $ 12,305 $ 12,305 $ 12,305 $ — $ — Time deposits with other banks 100 100 — 100 — Securities available for sale 94,797 94,797 — 94,797 — Securities held to maturity 5,660 5,929 — 5,929 — Federal Home Loan Bank stock 6,268 6,268 — 6,268 — Loans receivable, net of allowance 634,199 635,989 — — 635,989 Accrued interest receivable 2,366 2,366 — 2,366 — Financial liabilities: Non-maturity deposits 428,511 428,511 — 428,511 — Time deposits 166,313 166,830 — 166,830 — Short-term borrowings 52,875 52,835 52,835 — — Long-term borrowings 66,000 64,484 — 64,484 — Junior subordinated debentures 12,887 11,048 — 11,048 — Accrued interest payable 376 376 — 376 — Derivative instruments: Interest rate swaps (1,549 ) (1,549 ) — (1,549 ) — December 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level I) Significant Other Observable Inputs (Level II) Significant Unobservable Inputs (Level III) (Dollars in thousands) Carrying Amount Fair Value Financial assets: Cash and cash equivalents $ 6,120 $ 6,120 $ 6,120 $ — $ — Time deposits with other banks 100 100 — 100 — Securities available for sale 93,776 93,776 — 93,776 — Securities held to maturity 6,834 7,008 — 7,008 — Federal Home Loan Bank stock 5,165 5,165 — 5,165 — Loans receivable, net of allowance 537,833 528,065 — — 528,065 Accrued interest receivable 1,764 1,764 — 1,764 — Financial liabilities: Non-maturity deposits 380,983 380,983 — 380,983 — Time deposits 136,873 136,619 — 136,619 — Short-term borrowings 34,650 34,650 34,650 — — Long-term borrowings 61,000 58,685 — 58,685 — Junior subordinated debentures 12,887 9,344 — 9,344 — Accrued interest payable 281 281 — 281 — |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule Of Fair Value of Derivatives | The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Statements of Financial Condition at June 30, 2016: June 30, 2016 Notional/ Contract Amount Fair Value Balance Sheet Location Expiration Date (Dollars in thousands) Derivatives designated as hedging instruments Interest rate swaps by effective date: March 15, 2016 $ 12,500 $ (387 ) Other Liabilities 2026-03-15 December 15, 2016 5,000 (250 ) Other Liabilities 2026-12-15 June 15, 2017 6,000 (303 ) Other Liabilities 2027-06-15 December 15, 2017 10,000 (393 ) Other Liabilities 2027-12-15 December 15, 2017 5,000 (216 ) Other Liabilities 2027-12-15 Total $ 38,500 $ (1,549 ) |
Schedule Of Derivative Financial Instruments Designated As Cash Flow Hedges | The table below presents the Company’s derivative financial instruments that are designated as cash flow hedgers of interest rate risk and their effect on the Company’s Consolidated Statements of Financial Conditions during the three months ended June 30, 2016: Three Months Ended June 30, 2016 Amount of Loss Recognized in OCI on Derivatives, net of Tax (Effective Portion) Location of Gain (Loss) Recognized in Income of Derivatives (Ineffective Portion) Amount of Gain (Loss) Recognized in Income of Derivatives (Ineffective Portion) (Dollars in thousands) Derivatives in cash flow hedges Interest rate swaps by effective date: March 15, 2016 $ (168 ) Not applicable $ — December 15, 2016 (53 ) Not applicable — June 15, 2017 (68 ) Not applicable — December 15, 2017 (165 ) Not applicable — December 15, 2017 (75 ) Not applicable — Total $ (529 ) $ — The table below presents the Company’s derivative financial instruments that are designated as cash flow hedgers of interest rate risk and their effect on the Company’s Consolidated Statements of Financial Conditions during the six months ended June 30, 2016: Six Months Ended June 30, 2016 Amount of Loss Recognized in OCI on Derivatives, net of Tax (Effective Portion) Location of Gain (Loss) Recognized in Income of Derivatives (Ineffective Portion) Amount of Gain (Loss) Recognized in Income of Derivatives (Ineffective Portion) (Dollars in thousands) Derivatives in cash flow hedges Interest rate swaps by effective date: March 15, 2016 $ (232 ) Not applicable $ — December 15, 2016 (150 ) Not applicable — June 15, 2017 (182 ) Not applicable — December 15, 2017 (236 ) Not applicable — December 15, 2017 (129 ) Not applicable — Total $ (929 ) $ — |
Summary Of Significant Accoun29
Summary Of Significant Accounting Policies (Details) | 6 Months Ended |
Jun. 30, 2016bank | |
Number of banking offices | 11 |
Sussex County, New Jersey [Member] | |
Number of banking offices | 8 |
Bergen County, New Jersey [Member] | |
Number of banking offices | 1 |
Warren County, New Jersey [Member] | |
Number of banking offices | 1 |
Queens County, New York [Member] | |
Number of banking offices | 1 |
Securities - Additional Informa
Securities - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016USD ($)security | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)security | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($)security | |
Schedule Of Available-For-Sale And Held-To-Maturity [Line Items] | |||||
Held-to-maturity securities, realized gain (loss) on sale | $ 8 | $ 8 | |||
Available for sale securities carrying value pledged to secure public deposits | 32,900 | 32,900 | $ 33,400 | ||
Gross gains on sales of securities available for sale | 97 | $ 88 | 264 | $ 304 | |
Gross losses on sales of securities available for sale | 1 | $ 48 | |||
Fair value of available-for-sale securities | 17,697 | 17,697 | 49,024 | ||
Unrealized loss of available-for-sale securities | $ 139 | $ 139 | $ 620 | ||
Number of securities with unrealized losses, held-to-maturity | security | 0 | 0 | 0 | ||
U.S. Government Agencies [Member] | |||||
Schedule Of Available-For-Sale And Held-To-Maturity [Line Items] | |||||
Number of securities with unrealized losses, available-for-sale | security | 5 | 5 | 6 | ||
Fair value of available-for-sale securities | $ 6,292 | $ 6,292 | $ 8,361 | ||
Unrealized loss of available-for-sale securities | $ 49 | $ 49 | $ 55 | ||
State And Political Subdivisions [Member] | |||||
Schedule Of Available-For-Sale And Held-To-Maturity [Line Items] | |||||
Number of securities with unrealized losses, available-for-sale | security | 15 | ||||
Fair value of available-for-sale securities | $ 8,778 | ||||
Unrealized loss of available-for-sale securities | $ 129 | ||||
Number of securities with unrealized losses from state and political subdivisions maturity minimum number of years | 10 years | ||||
Mortgage Backed U.S. Government-Sponsored Enterprises [Member] | |||||
Schedule Of Available-For-Sale And Held-To-Maturity [Line Items] | |||||
Number of securities with unrealized losses, available-for-sale | security | 6 | 6 | 18 | ||
Fair value of available-for-sale securities | $ 11,405 | $ 11,405 | $ 31,885 | ||
Unrealized loss of available-for-sale securities | $ 90 | $ 90 | $ 436 |
Securities - Amortized Cost And
Securities - Amortized Cost And Approximate Fair Value Of Securities Available For Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 92,365 | $ 93,632 |
Gross Unrealized Gains | 2,571 | 764 |
Gross Unrealized Losses | (139) | (620) |
Fair Value | 94,797 | 93,776 |
U.S. Government Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 14,044 | 12,792 |
Gross Unrealized Gains | 38 | 51 |
Gross Unrealized Losses | (49) | (55) |
Fair Value | 14,033 | 12,788 |
State And Political Subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 34,978 | 37,771 |
Gross Unrealized Gains | 1,780 | 507 |
Gross Unrealized Losses | 0 | (129) |
Fair Value | 36,758 | 38,149 |
Mortgage Backed U.S. Government-Sponsored Enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 43,343 | 43,069 |
Gross Unrealized Gains | 753 | 206 |
Gross Unrealized Losses | (90) | (436) |
Fair Value | $ 44,006 | $ 42,839 |
Securities - Amortized Cost A32
Securities - Amortized Cost And Fair Value Of Securities By Contractual Maturity Of Available-For-Sale Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Due in one year or less, Amortized Cost | $ 0 | |
Due after one year through five years, Amortized Cost | 699 | |
Due after five years through ten years, Amortized Cost | 3,653 | |
Due after ten years, Amortized Cost | 30,626 | |
Total bonds and obligations, Amortized Cost | 34,978 | |
Due in one year or less, Fair Value | 0 | |
Due after one year through five years, Fair Value | 712 | |
Due after five years through ten years, Fair Value | 3,826 | |
Due after ten years, Fair Value | 32,220 | |
Total bonds and obligations, Fair Value | 36,758 | |
Securities available for sale, amortized cost | 92,365 | $ 93,632 |
Securities available for sale, at fair value | 94,797 | 93,776 |
U.S. Government Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, amortized cost | 14,044 | 12,792 |
Securities available for sale, at fair value | 14,033 | 12,788 |
Mortgage Backed U.S. Government-Sponsored Enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, amortized cost | 43,343 | 43,069 |
Securities available for sale, at fair value | $ 44,006 | $ 42,839 |
Securities - Temporarily Impair
Securities - Temporarily Impaired Gross Unrealized Losses And Fair Value Of Available-For-Sale Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than Twelve Months, Fair Value | $ 15,887 | $ 43,553 |
Less Than Twelve Months, Gross Unrealized Losses | (137) | (566) |
Twelve Months or More, Fair Value | 1,810 | 5,471 |
Twelve Months or More, Gross Unrealized Losses | (2) | (54) |
Total, Fair Value | 17,697 | 49,024 |
Total, Gross Unrealized Losses | (139) | (620) |
U.S. Government Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than Twelve Months, Fair Value | 4,482 | 5,888 |
Less Than Twelve Months, Gross Unrealized Losses | (47) | (23) |
Twelve Months or More, Fair Value | 1,810 | 2,473 |
Twelve Months or More, Gross Unrealized Losses | (2) | (32) |
Total, Fair Value | 6,292 | 8,361 |
Total, Gross Unrealized Losses | (49) | (55) |
State And Political Subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than Twelve Months, Fair Value | 5,780 | |
Less Than Twelve Months, Gross Unrealized Losses | (107) | |
Twelve Months or More, Fair Value | 2,998 | |
Twelve Months or More, Gross Unrealized Losses | (22) | |
Total, Fair Value | 8,778 | |
Total, Gross Unrealized Losses | (129) | |
Mortgage Backed U.S. Government-Sponsored Enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than Twelve Months, Fair Value | 11,405 | 31,885 |
Less Than Twelve Months, Gross Unrealized Losses | (90) | (436) |
Twelve Months or More, Fair Value | 0 | 0 |
Twelve Months or More, Gross Unrealized Losses | 0 | 0 |
Total, Fair Value | 11,405 | 31,885 |
Total, Gross Unrealized Losses | $ (90) | $ (436) |
Securities - Amortized Cost A34
Securities - Amortized Cost And Approximate Fair Value Of Securities Held-To-Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Investments [Abstract] | ||
Total securities held to maturity, amortized cost | $ 5,660 | $ 6,834 |
Gross Unrealized Gains | 269 | 174 |
Securities held to maturity, fair value | $ 5,929 | $ 7,008 |
Securities - Amortized Cost A35
Securities - Amortized Cost And Fair Value Of Securities By Contractual Maturity Of Held-To-Maturity Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Investments [Abstract] | ||
Due in one year or less, Amortized Cost | $ 2,792 | |
Due after one year through five years, Amortized Cost | 0 | |
Due after five years through ten years, Amortized Cost | 1,823 | |
Due after ten years, Amortized Cost | 1,045 | |
Total securities held to maturity, amortized cost | 5,660 | $ 6,834 |
Due in one year or less, Fair Value | 2,792 | |
Due after one year through five years, Fair Value | 0 | |
Due after five years through ten years, Fair Value | 1,951 | |
Due after ten years, Fair Value | 1,186 | |
Total held to maturity securities, Fair Value | $ 5,929 | $ 7,008 |
Loans (Composition Of Net Loans
Loans (Composition Of Net Loans Receivable) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | $ 641,034 | $ 544,090 |
Unearned net loan origination fees | (847) | (667) |
Allowance for loan losses | (5,988) | (5,590) |
Net loans receivable | 634,199 | 537,833 |
Mortgage loans serviced for the benefit of others | 443 | 454 |
Commercial And Industrial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 31,800 | 20,023 |
Construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 16,474 | 13,348 |
Commercial Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 453,679 | 382,262 |
Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 137,903 | 127,204 |
Consumer And Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | $ 1,178 | $ 1,253 |
Allowance For Loan Losses And37
Allowance For Loan Losses And Credit Quality Of Financing Receivables - Changes In The Allowance For Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Beginning balance | $ 5,812 | $ 5,763 | $ 5,590 | $ 5,641 |
Charge-offs | (228) | (239) | (256) | (453) |
Recoveries | 19 | 28 | 58 | 59 |
Provision | 385 | 200 | 596 | 505 |
Ending balance | 5,988 | 5,752 | 5,988 | 5,752 |
Commercial And Industrial [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Beginning balance | 98 | 138 | 85 | 231 |
Charge-offs | (138) | 0 | (138) | (19) |
Recoveries | 9 | 1 | 16 | 5 |
Provision | 230 | (53) | 236 | (131) |
Ending balance | 199 | 86 | 199 | 86 |
Construction [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Beginning balance | 267 | 388 | 220 | 383 |
Provision | (59) | (111) | (12) | (106) |
Ending balance | 208 | 277 | 208 | 277 |
Commercial Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Beginning balance | 3,847 | 3,787 | 3,646 | 3,491 |
Charge-offs | (65) | (235) | (65) | (423) |
Recoveries | 3 | 24 | 34 | 36 |
Provision | 235 | 37 | 405 | 509 |
Ending balance | 4,020 | 3,613 | 4,020 | 3,613 |
Residential Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Beginning balance | 908 | 841 | 784 | 903 |
Charge-offs | (25) | 0 | (34) | 0 |
Recoveries | 6 | 1 | 6 | 13 |
Provision | 25 | 56 | 158 | (18) |
Ending balance | 914 | 898 | 914 | 898 |
Consumer And Other [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Beginning balance | 121 | 88 | 87 | 19 |
Charge-offs | 0 | (4) | (19) | (11) |
Recoveries | 1 | 2 | 2 | 5 |
Provision | (105) | 0 | (53) | 73 |
Ending balance | 17 | 86 | 17 | 86 |
Unallocated [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Beginning balance | 571 | 521 | 768 | 614 |
Provision | 59 | 271 | (138) | 178 |
Ending balance | $ 630 | $ 792 | $ 630 | $ 792 |
Allowance For Loan Losses And38
Allowance For Loan Losses And Credit Quality Of Financing Receivables - Allowances Of Loan Losses And Loans Receivable By Class Disaggregated (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Balance, Allowance for Loan Losses | $ 5,988 | $ 5,812 | $ 5,590 | $ 5,752 | $ 5,763 | $ 5,641 |
Allowance for Loan Losses, Balance Related to Loans Individually Evaluated for Impairment | 232 | 264 | ||||
Allowance for Loan Losses, Balance Related to Loans Collectively Evaluated for Impairment | 5,126 | 4,558 | ||||
Total Financing Receivables | 641,034 | 544,090 | ||||
Loans Receivable, Individually Evaluated for Impairment | 5,908 | 6,864 | ||||
Loans Receivable, Collectively Evaluated for Impairment | 635,126 | 537,226 | ||||
Commercial And Industrial [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Balance, Allowance for Loan Losses | 199 | 98 | 85 | 86 | 138 | 231 |
Allowance for Loan Losses, Balance Related to Loans Individually Evaluated for Impairment | 0 | 0 | ||||
Allowance for Loan Losses, Balance Related to Loans Collectively Evaluated for Impairment | 199 | 85 | ||||
Total Financing Receivables | 31,800 | 20,023 | ||||
Loans Receivable, Individually Evaluated for Impairment | 20 | 20 | ||||
Loans Receivable, Collectively Evaluated for Impairment | 31,780 | 20,003 | ||||
Construction [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Balance, Allowance for Loan Losses | 208 | 267 | 220 | 277 | 388 | 383 |
Allowance for Loan Losses, Balance Related to Loans Individually Evaluated for Impairment | 0 | 0 | ||||
Allowance for Loan Losses, Balance Related to Loans Collectively Evaluated for Impairment | 208 | 220 | ||||
Total Financing Receivables | 16,474 | 13,348 | ||||
Loans Receivable, Individually Evaluated for Impairment | 0 | 0 | ||||
Loans Receivable, Collectively Evaluated for Impairment | 16,474 | 13,348 | ||||
Commercial Real Estate [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Balance, Allowance for Loan Losses | 4,020 | 3,847 | 3,646 | 3,613 | 3,787 | 3,491 |
Allowance for Loan Losses, Balance Related to Loans Individually Evaluated for Impairment | 203 | 112 | ||||
Allowance for Loan Losses, Balance Related to Loans Collectively Evaluated for Impairment | 3,817 | 3,534 | ||||
Total Financing Receivables | 453,679 | 382,262 | ||||
Loans Receivable, Individually Evaluated for Impairment | 4,497 | 5,160 | ||||
Loans Receivable, Collectively Evaluated for Impairment | 449,182 | 377,102 | ||||
Residential Real Estate [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Balance, Allowance for Loan Losses | 914 | 908 | 784 | 898 | 841 | 903 |
Allowance for Loan Losses, Balance Related to Loans Individually Evaluated for Impairment | 29 | 79 | ||||
Allowance for Loan Losses, Balance Related to Loans Collectively Evaluated for Impairment | 885 | 705 | ||||
Total Financing Receivables | 137,903 | 127,204 | ||||
Loans Receivable, Individually Evaluated for Impairment | 1,391 | 1,546 | ||||
Loans Receivable, Collectively Evaluated for Impairment | 136,512 | 125,658 | ||||
Consumer And Other [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Balance, Allowance for Loan Losses | 17 | 121 | 87 | 86 | 88 | 19 |
Allowance for Loan Losses, Balance Related to Loans Individually Evaluated for Impairment | 0 | 73 | ||||
Allowance for Loan Losses, Balance Related to Loans Collectively Evaluated for Impairment | 17 | 14 | ||||
Total Financing Receivables | 1,178 | 1,253 | ||||
Loans Receivable, Individually Evaluated for Impairment | 0 | 138 | ||||
Loans Receivable, Collectively Evaluated for Impairment | 1,178 | 1,115 | ||||
Unallocated [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Balance, Allowance for Loan Losses | 630 | $ 571 | 768 | $ 792 | $ 521 | $ 614 |
Total Financing Receivables | $ 0 | $ 0 |
Allowance For Loan Losses And39
Allowance For Loan Losses And Credit Quality Of Financing Receivables - Age Analysis Of Loans Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | $ 9,618 | $ 8,135 |
Loans Receivable, Current | 631,416 | 535,955 |
Total Financing Receivables | 641,034 | 544,090 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 3,431 | 1,114 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 1,537 | 1,709 |
Financing Receivables, Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 4,650 | 5,312 |
Commercial And Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 114 | 25 |
Loans Receivable, Current | 31,686 | 19,998 |
Total Financing Receivables | 31,800 | 20,023 |
Commercial And Industrial [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 94 | 5 |
Commercial And Industrial [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Commercial And Industrial [Member] | Financing Receivables, Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 20 | 20 |
Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Receivable, Current | 16,474 | 13,348 |
Total Financing Receivables | 16,474 | 13,348 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 7,155 | 6,235 |
Loans Receivable, Current | 446,524 | 376,027 |
Total Financing Receivables | 453,679 | 382,262 |
Commercial Real Estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 3,056 | 758 |
Commercial Real Estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 729 | 1,461 |
Commercial Real Estate [Member] | Financing Receivables, Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 3,370 | 4,016 |
Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 2,341 | 1,720 |
Loans Receivable, Current | 135,562 | 125,484 |
Total Financing Receivables | 137,903 | 127,204 |
Residential Real Estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 273 | 335 |
Residential Real Estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 808 | 247 |
Residential Real Estate [Member] | Financing Receivables, Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 1,260 | 1,138 |
Consumer And Other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 8 | 155 |
Loans Receivable, Current | 1,170 | 1,098 |
Total Financing Receivables | 1,178 | 1,253 |
Consumer And Other [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 8 | 16 |
Consumer And Other [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 1 |
Consumer And Other [Member] | Financing Receivables, Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | $ 0 | $ 138 |
Allowance For Loan Losses And40
Allowance For Loan Losses And Credit Quality Of Financing Receivables - Loans Which The Accrual Of Interest Has Been Discontinued (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans for which accrual of interest has been discounted | $ 4,650 | $ 5,312 |
Commercial And Industrial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans for which accrual of interest has been discounted | 20 | 20 |
Commercial Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans for which accrual of interest has been discounted | 3,370 | 4,016 |
Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans for which accrual of interest has been discounted | 1,260 | 1,138 |
Consumer And Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans for which accrual of interest has been discounted | $ 0 | $ 138 |
Allowance For Loan Losses And41
Allowance For Loan Losses And Credit Quality Of Financing Receivables - Credit Risk Profile By Creditworthiness (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | $ 641,034 | $ 544,090 |
Commercial And Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 31,800 | 20,023 |
Construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 16,474 | 13,348 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 453,679 | 382,262 |
Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 137,903 | 127,204 |
Consumer And Other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 1,178 | 1,253 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 624,743 | 526,666 |
Pass [Member] | Commercial And Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 31,753 | 19,983 |
Pass [Member] | Construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 16,474 | 13,348 |
Pass [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 439,558 | 367,305 |
Pass [Member] | Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 135,780 | 124,915 |
Pass [Member] | Consumer And Other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 1,178 | 1,115 |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 9,552 | 9,705 |
Special Mention [Member] | Commercial And Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 13 | 5 |
Special Mention [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 8,807 | 8,957 |
Special Mention [Member] | Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 732 | 743 |
Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 6,739 | 7,719 |
Substandard [Member] | Commercial And Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 34 | 35 |
Substandard [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 5,314 | 6,000 |
Substandard [Member] | Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 1,391 | 1,546 |
Substandard [Member] | Consumer And Other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | $ 0 | $ 138 |
Allowance For Loan Losses And42
Allowance For Loan Losses And Credit Quality Of Financing Receivables - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment, Total | $ 5,908 | $ 5,908 | $ 6,864 | ||
Unpaid Principal Balance, Total | 5,908 | 5,908 | 6,893 | ||
Related Allowance | 232 | 232 | 264 | ||
Average Recorded Investment, With no related allowance recorded | 3,256 | $ 3,278 | 3,285 | $ 3,850 | |
Average Recorded Investment, With an allowance recorded | 2,940 | 4,027 | 3,368 | 3,555 | |
Total average recorded investment | 6,196 | 7,305 | 6,653 | 7,405 | |
Interest Income Recognized, With no related allowance recorded | 7 | 12 | 16 | 18 | |
Interest Income Recognized, With an allowance recorded | 8 | 11 | 16 | 22 | |
Total interest income recognized | 15 | 23 | 32 | 40 | |
Commercial And Industrial [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment, With no related allowance recorded | 20 | 20 | 20 | ||
Recorded Investment, Total | 20 | 20 | 20 | ||
Unpaid Principal Balance, With no related allowance recorded | 20 | 20 | 20 | ||
Unpaid Principal Balance, Total | 20 | 20 | 20 | ||
Average Recorded Investment, With no related allowance recorded | 20 | 20 | 20 | 13 | |
Average Recorded Investment, With an allowance recorded | 0 | 32 | |||
Interest Income Recognized, With an allowance recorded | 0 | 0 | |||
Commercial Real Estate [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment, With no related allowance recorded | 2,018 | 2,018 | 2,684 | ||
Recorded Investment, With an allowance recorded | 2,479 | 2,479 | 2,476 | ||
Recorded Investment, Total | 4,497 | 4,497 | 5,160 | ||
Unpaid Principal Balance, With no related allowance recorded | 2,018 | 2,018 | 2,684 | ||
Unpaid Principal Balance, With an allowance recorded | 2,479 | 2,479 | 2,476 | ||
Unpaid Principal Balance, Total | 4,497 | 4,497 | 5,160 | ||
Related Allowance | 203 | 203 | 112 | ||
Average Recorded Investment, With no related allowance recorded | 2,113 | 1,937 | 2,230 | 2,347 | |
Average Recorded Investment, With an allowance recorded | 2,701 | 3,319 | 2,680 | 2,859 | |
Interest Income Recognized, With no related allowance recorded | 5 | 10 | 13 | 15 | |
Interest Income Recognized, With an allowance recorded | 8 | 8 | 16 | 16 | |
Residential Real Estate [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment, With no related allowance recorded | 1,248 | 1,248 | 1,123 | ||
Recorded Investment, With an allowance recorded | 143 | 143 | 423 | ||
Recorded Investment, Total | 1,391 | 1,391 | 1,546 | ||
Unpaid Principal Balance, With no related allowance recorded | 1,248 | 1,248 | 1,152 | ||
Unpaid Principal Balance, With an allowance recorded | 143 | 143 | 423 | ||
Unpaid Principal Balance, Total | 1,391 | 1,391 | 1,575 | ||
Related Allowance | 29 | 29 | 79 | ||
Average Recorded Investment, With no related allowance recorded | 1,123 | 1,321 | 1,035 | 1,490 | |
Average Recorded Investment, With an allowance recorded | 239 | 616 | 577 | 572 | |
Interest Income Recognized, With no related allowance recorded | 2 | 2 | 3 | 3 | |
Interest Income Recognized, With an allowance recorded | 3 | 6 | |||
Consumer And Other [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment, With an allowance recorded | 0 | 0 | 138 | ||
Recorded Investment, Total | 0 | 0 | 138 | ||
Unpaid Principal Balance, With an allowance recorded | 0 | 0 | 138 | ||
Unpaid Principal Balance, Total | 0 | 0 | 138 | ||
Related Allowance | 0 | 0 | $ 73 | ||
Average Recorded Investment, With an allowance recorded | $ 0 | $ 92 | $ 111 | $ 92 |
Allowance For Loan Losses And43
Allowance For Loan Losses And Credit Quality Of Financing Receivables - Troubled Debt Restructured On Recorded Investment (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Modifications [Line Items] | ||
Total investment in troubled debt | $ 3,083 | $ 3,578 |
Commercial Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Total investment in troubled debt | 2,953 | 2,975 |
Residential Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Total investment in troubled debt | 130 | 603 |
Performing [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Total investment in troubled debt | 1,258 | 1,553 |
Performing [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Total investment in troubled debt | 1,128 | 1,144 |
Performing [Member] | Residential Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Total investment in troubled debt | 130 | 409 |
Non-performing [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Total investment in troubled debt | 1,825 | 2,025 |
Non-performing [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Total investment in troubled debt | 1,825 | 1,831 |
Non-performing [Member] | Residential Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Total investment in troubled debt | $ 0 | $ 194 |
Allowance For Loan Losses And44
Allowance For Loan Losses And Credit Quality Of Financing Receivables - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016USD ($)loan | Jun. 30, 2015loan | Jun. 30, 2016USD ($)loan | Jun. 30, 2015loan | Dec. 31, 2015USD ($) | |
Receivables [Abstract] | |||||
Number of loans modified by troubled debt restructuring | loan | 0 | 0 | 0 | 0 | |
Number of loans with subsequent default | loan | 0 | 0 | |||
Carrying value of foreclosed residential real estate properties | $ | $ 130 | $ 130 | $ 130 | ||
Carrying value of collateralized consumer loans | $ | $ 680 | $ 680 | $ 945 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Net earnings applicable to common stockholders (Numerator) | $ 1,109 | $ 884 | $ 2,683 | $ 1,836 |
Net income applicable to common stockholders and assumed conversions (Numerator) | $ 1,109 | $ 884 | $ 2,683 | $ 1,836 |
Basic, Shares (Denominator) (in shares) | 4,590,480 | 4,563,073 | 4,584,536 | 4,567,091 |
Unvested stock awards, Shares (Denominator) (in shares) | 26,561 | 31,901 | 25,640 | 29,986 |
Diluted, Shares (Denominator) (in shares) | 4,617,041 | 4,594,974 | 4,610,176 | 4,597,077 |
Basic earnings per share (usd per share) | $ 0.24 | $ 0.19 | $ 0.59 | $ 0.40 |
Diluted earnings per share (usd per share) | $ 0.24 | $ 0.19 | $ 0.58 | $ 0.40 |
Shares of common stock outstanding not included in the computation of diluted EPS (in shares) | 57,038 | 57,423 | 64,238 | 83,714 |
Other Comprehensive Income (Det
Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Other Comprehensive Income [Abstract] | ||||
Unrealized gains on available for sale securities arising during the period | $ 1,576 | $ (1,166) | $ 2,561 | $ (850) |
Fair value adjustments on derivatives, Before Tax | (1,149) | 0 | (1,549) | 0 |
Reclassification adjustment for net gains on securities transactions included in net income, Before Tax | (105) | (88) | (272) | (256) |
Total other comprehensive income, Before Tax | 322 | (1,254) | 740 | (1,106) |
Unrealized gains on available for sale securities, Tax Effect | 630 | (467) | 1,024 | (340) |
Fair value adjustments on derivatives, Tax Effect | (459) | (619) | ||
Reclassification adjustment for net gains on securities transactions included in net income, Tax Effect | (42) | (35) | (109) | (102) |
Total other comprehensive income, Tax Effect | 129 | (502) | 296 | (442) |
Unrealized gains on available for sale securities, Net of Tax | 946 | (699) | 1,537 | (510) |
Fair value adjustments on derivatives, Net of Tax | (690) | (930) | ||
Reclassification adjustment for net gains on securities transactions included in net income, Net of Tax | (63) | (53) | (163) | (154) |
Other comprehensive income (loss), net of income taxes | $ 193 | $ (752) | $ 444 | $ (664) |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||
Net interest income from external sources | $ 5,817 | $ 4,929 | $ 11,463 | $ 9,731 | |
Other income from external sources | 1,826 | 1,501 | 4,350 | 3,402 | |
Depreciation and amortization | 288 | 254 | 546 | 497 | |
Income before income taxes | 1,660 | 1,308 | 4,009 | 2,636 | |
Income tax expense | 551 | 424 | 1,326 | 800 | |
Total assets | 789,812 | $ 619,997 | $ 789,812 | $ 619,997 | $ 684,503 |
Statutory tax rate | 40.00% | 40.00% | 40.00% | ||
Banking And Financial Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income from external sources | 5,817 | $ 4,929 | $ 11,463 | $ 9,731 | |
Other income from external sources | 781 | 758 | 1,567 | 1,501 | |
Depreciation and amortization | 281 | 247 | 533 | 486 | |
Income before income taxes | 1,556 | 1,280 | 3,070 | 2,208 | |
Income tax expense | 509 | 413 | 950 | 629 | |
Total assets | 783,239 | 615,302 | 783,239 | 615,302 | |
Insurance Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Other income from external sources | 1,045 | 743 | 2,783 | 1,901 | |
Depreciation and amortization | 7 | 7 | 13 | 11 | |
Income before income taxes | 104 | 28 | 939 | 428 | |
Income tax expense | 42 | 11 | 376 | 171 | |
Total assets | $ 6,573 | $ 4,695 | $ 6,573 | $ 4,695 | |
Statutory tax rate | 40.00% |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock option grants, maximum term, in years | 7 years 6 months | 7 years 6 months | ||
Weighted average grant date fair value of options granted per share (usd per share) | $ 3.37 | $ 3.56 | ||
Stock options expected future expense | $ 207 | $ 207 | ||
Restricted stock awards expense | 98 | $ 85 | 188 | $ 167 |
Unrecognized compensation expense for non-vested restricted stock | 702 | 702 | ||
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 13 | $ 9 | $ 24 | $ 18 |
Unrecognized compensation expense, period for recognition | 4 years 1 month 6 days | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense, period for recognition | 1 year 10 months 24 days | |||
Minimum [Member] | Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period, years | 1 year | |||
Minimum [Member] | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period, years | 2 years | |||
Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock option grants, maximum term, in years | 10 years | |||
Maximum [Member] | Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period, years | 4 years | |||
Maximum [Member] | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period, years | 7 years |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary Of Information Regarding Stock Option Plans (Details) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Number of Shares, Outstanding, beginning of year (in shares) | shares | 51,985 |
Number of Shares, Options granted (in shares) | shares | 26,216 |
Number of Shares, Options expired (in shares) | shares | (1,798) |
Number of Shares, Options exercised (in shares) | shares | (449) |
Number of Shares, Outstanding, end of quarter (in shares) | shares | 75,954 |
Number of Shares, Exercisable, end of quarter (in shares) | shares | 9,947 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Weighted Average Exercise Price per Share, Outstanding, beginning of year (usd per share) | $ 10.06 |
Weighted Average Exercise Price per Share, Options granted (usd per share) | 12.83 |
Weighted Average Exercise Price per Share, Options expired (usd per share) | 10.25 |
Weighted Average Exercise Price per Share, Options exercised (usd per share) | 10.25 |
Weighted Average Exercise Price per Share, Outstanding, end of quarter (usd per share) | 11.01 |
Weighted Average Exercise Price per Share, Exercisable, end of quarter (usd per share) | $ 10.05 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Weighted Average Contractual Term, Outstanding, end of quarter | 8 years 10 months 24 days |
Weighted Average Contractual Term, Exercisable, end of quarter | 8 years 4 months 24 days |
Aggregate Intrinsic Value, Outstanding, end of quarter | $ | $ 178,660 |
Aggregate Intrinsic Value, Exercisable, end of quarter | $ | $ 56,349 |
Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Option price range at end of quarter (usd per share) | $ 9.97 |
Option price of exercisable shares (usd per share) | 9.97 |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Option price range at end of quarter (usd per share) | 12.83 |
Option price of exercisable shares (usd per share) | $ 12.83 |
Stock-Based Compensation - Su50
Stock-Based Compensation - Summary Of Stock Option Assumptions (Details) | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Expected dividend yield | 1.25% | 1.56% |
Expected volatility | 22.72% | 34.32% |
Risk-free interest rate | 1.71% | 1.37% |
Expected option life | 7 years 6 months | 7 years 6 months |
Stock-Based Compensation - Su51
Stock-Based Compensation - Summary Of Information Regarding Restricted Stock Activity (Details) | 6 Months Ended |
Jun. 30, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Unvested restricted stock, beginning of year, Number of Shares (in shares) | shares | 93,570 |
Granted, Number of Shares (in shares) | shares | 38,022 |
Forfeited, Number of Shares (in shares) | shares | (1,885) |
Vested, Number of Shares (in shares) | shares | (45,990) |
Unvested restricted stock, end of period, Number of Shares (in shares) | shares | 83,717 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Unvested restricted stock, beginning of year, Weighted Average Grant Date Fair Value (usd per share) | $ / shares | $ 7.67 |
Granted, Weighted Average Grant Date Fair Value (usd per share) | $ / shares | 13.09 |
Forfeited, Weighted Average Grant Date Fair Value (usd per share) | $ / shares | 9.52 |
Vested, Weighted Average Grant Date Fair Value (usd per share) | $ / shares | 7.11 |
Unvested restricted stock, end of period, Weighted Average Grant Date Fair Value (usd per share) | $ / shares | $ 10.24 |
Guarantees (Details)
Guarantees (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Guarantees [Abstract] | |
Letter of credit, expiration term | 1 year |
Undrawn standby letters of credit outstanding | $ 514 |
Fair Value Of Financial Instr53
Fair Value Of Financial Instruments - Summary Of Financial Assets Measured On A Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | $ 94,797 | $ 93,776 |
Interest rate swaps | (1,549) | |
Significant Other Observable Inputs (Level II) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 94,797 | 93,776 |
Interest rate swaps | (1,549) | |
Significant Unobservable Inputs (Level III) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps | 0 | |
U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 14,033 | 12,788 |
U.S. Government Agencies [Member] | Significant Other Observable Inputs (Level II) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 14,033 | 12,788 |
U.S. Government Agencies [Member] | Significant Unobservable Inputs (Level III) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
State And Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 36,758 | 38,149 |
State And Political Subdivisions [Member] | Significant Other Observable Inputs (Level II) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 36,758 | 38,149 |
State And Political Subdivisions [Member] | Significant Unobservable Inputs (Level III) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Mortgage Backed U.S. Government-Sponsored Enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 44,006 | 42,839 |
Mortgage Backed U.S. Government-Sponsored Enterprises [Member] | Significant Other Observable Inputs (Level II) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 44,006 | 42,839 |
Mortgage Backed U.S. Government-Sponsored Enterprises [Member] | Significant Unobservable Inputs (Level III) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | $ 0 | $ 0 |
Fair Value Of Financial Instr54
Fair Value Of Financial Instruments - Summary Of Financial Assets Measured On A Nonrecurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Impaired Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Assets | $ 464 | $ 801 |
Impaired Loans [Member] | Significant Unobservable Inputs (Level III) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Assets | 464 | 801 |
Foreclosed Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Assets | 738 | 756 |
Foreclosed Real Estate [Member] | Significant Unobservable Inputs (Level III) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Assets | $ 738 | $ 756 |
Fair Value Of Financial Instr55
Fair Value Of Financial Instruments - Qualitative Information About Level 3 Fair Value Measurements (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Impaired Loans [Member] | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Fair Value Estimate | $ 464 | $ 801 |
Impaired Loans [Member] | Significant Unobservable Inputs (Level III) [Member] | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Fair Value Estimate | $ 464 | $ 801 |
Impaired Loans [Member] | Minimum [Member] | Significant Unobservable Inputs (Level III) [Member] | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Range (Weighted Average) | 0.00% | 0.00% |
Impaired Loans [Member] | Maximum [Member] | Significant Unobservable Inputs (Level III) [Member] | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Range (Weighted Average) | (43.70%) | (61.80%) |
Impaired Loans [Member] | Weighted Average [Member] | Significant Unobservable Inputs (Level III) [Member] | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Range (Weighted Average) | (4.60%) | (5.80%) |
Foreclosed Real Estate [Member] | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Fair Value Estimate | $ 738 | $ 756 |
Foreclosed Real Estate [Member] | Significant Unobservable Inputs (Level III) [Member] | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Fair Value Estimate | $ 738 | $ 756 |
Range (Weighted Average) | (7.00%) | (7.00%) |
Foreclosed Real Estate [Member] | Weighted Average [Member] | Significant Unobservable Inputs (Level III) [Member] | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Range (Weighted Average) | (7.00%) | (7.00%) |
Fair Value Of Financial Instr56
Fair Value Of Financial Instruments - Additional Information (Details) - Impaired Loans [Member] - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Impaired loans, fair value | $ 464 | $ 801 |
Significant Unobservable Inputs (Level III) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Impaired loans, fair value | $ 464 | $ 801 |
Fair Value Of Financial Instr57
Fair Value Of Financial Instruments - Estimated Fair Values Of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | $ 94,797 | $ 93,776 |
Securities held to maturity | 5,929 | 7,008 |
Interest rate swaps | (1,549) | |
Carrying Amount [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 12,305 | 6,120 |
Time deposits with other banks | 100 | 100 |
Securities available for sale, at fair value | 94,797 | 93,776 |
Securities held to maturity | 5,660 | 6,834 |
Federal Home Loan Bank stock | 6,268 | 5,165 |
Loans receivable, net of allowance | 634,199 | 537,833 |
Accrued interest receivable | 2,366 | 1,764 |
Non-maturity deposits | 428,511 | 380,983 |
Time deposits | 166,313 | 136,873 |
Short-term borrowings | 52,875 | 34,650 |
Long-term borrowings | 66,000 | 61,000 |
Junior subordinated debentures | 12,887 | 12,887 |
Accrued interest payable | 376 | 281 |
Interest rate swaps | (1,549) | |
Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 12,305 | 6,120 |
Time deposits with other banks | 100 | 100 |
Securities available for sale, at fair value | 94,797 | 93,776 |
Securities held to maturity | 5,929 | 7,008 |
Federal Home Loan Bank stock | 6,268 | 5,165 |
Loans receivable, net of allowance | 635,989 | 528,065 |
Accrued interest receivable | 2,366 | 1,764 |
Non-maturity deposits | 428,511 | 380,983 |
Time deposits | 166,830 | 136,619 |
Short-term borrowings | 52,835 | 34,650 |
Long-term borrowings | 64,484 | 58,685 |
Junior subordinated debentures | 11,048 | 9,344 |
Accrued interest payable | 376 | 281 |
Interest rate swaps | (1,549) | |
Quoted Prices In Active Markets For Identical Assets (Level I) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 12,305 | 6,120 |
Short-term borrowings | 52,835 | 34,650 |
Significant Other Observable Inputs (Level II) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Time deposits with other banks | 100 | 100 |
Securities available for sale, at fair value | 94,797 | 93,776 |
Securities held to maturity | 5,929 | 7,008 |
Federal Home Loan Bank stock | 6,268 | 5,165 |
Accrued interest receivable | 2,366 | 1,764 |
Non-maturity deposits | 428,511 | 380,983 |
Time deposits | 166,830 | 136,619 |
Long-term borrowings | 64,484 | 58,685 |
Junior subordinated debentures | 11,048 | 9,344 |
Accrued interest payable | 376 | 281 |
Interest rate swaps | (1,549) | |
Significant Unobservable Inputs (Level III) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans receivable, net of allowance | 635,989 | $ 528,065 |
Interest rate swaps | $ 0 |
Derivatives - Additional Inform
Derivatives - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Derivative [Line Items] | |
Amount of four FHLB borrowings | $ 26,000,000 |
Junior Subordinated Debt [Member] | |
Derivative [Line Items] | |
Variable rate junior subordinated debt issued | $ 12,500,000 |
Junior Subordinated Debt [Member] | LIBOR [Member] | |
Derivative [Line Items] | |
Variable rate spread on debt instrument | 1.44% |
Derivative Effective Date March 15, 2016 [Member] | Designated as Hedging Instrument [Member] | |
Derivative [Line Items] | |
Fixed interest rate of swap agreement | 3.10% |
Derivatives - Schedule Of Fair
Derivatives - Schedule Of Fair Value of Derivatives (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Derivatives, Fair Value [Line Items] | |
Fair Value | $ (1,549) |
Designated as Hedging Instrument [Member] | |
Derivatives, Fair Value [Line Items] | |
Notional/ Contract Amount | 38,500 |
Fair Value | (1,549) |
Derivative Effective Date March 15, 2016 [Member] | Designated as Hedging Instrument [Member] | |
Derivatives, Fair Value [Line Items] | |
Notional/ Contract Amount | 12,500 |
Fair Value | $ (387) |
Expiration Date | Mar. 15, 2026 |
Derivative Effective Date December 15, 2016 [Member] | Designated as Hedging Instrument [Member] | |
Derivatives, Fair Value [Line Items] | |
Notional/ Contract Amount | $ 5,000 |
Fair Value | $ (250) |
Expiration Date | Dec. 15, 2026 |
Derivative Effective Date June 15, 2017 [Member] | Designated as Hedging Instrument [Member] | |
Derivatives, Fair Value [Line Items] | |
Notional/ Contract Amount | $ 6,000 |
Fair Value | $ (303) |
Expiration Date | Jun. 15, 2027 |
Derivative Effective Date December 15, 2017 Contract 1 [Member] | Designated as Hedging Instrument [Member] | |
Derivatives, Fair Value [Line Items] | |
Notional/ Contract Amount | $ 10,000 |
Fair Value | $ (393) |
Expiration Date | Dec. 15, 2027 |
Derivative Effective Date December 15, 2017 Contract 2 [Member] | Designated as Hedging Instrument [Member] | |
Derivatives, Fair Value [Line Items] | |
Notional/ Contract Amount | $ 5,000 |
Fair Value | $ (216) |
Expiration Date | Dec. 15, 2027 |
Derivatives - Schedule Of Deriv
Derivatives - Schedule Of Derivative Financial Instruments Designated As Cash Flow Hedges (Details) - Cash Flow Hedging [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2016 | Jun. 30, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Loss Recognized in OCI on Derivatives, net of Tax (Effective Portion) | $ (529) | $ (929) |
Amount of Gain (Loss) Recognized in Income of Derivatives (Ineffective Portion) | 0 | 0 |
Derivative Effective Date March 15, 2016 [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Loss Recognized in OCI on Derivatives, net of Tax (Effective Portion) | (168) | (232) |
Amount of Gain (Loss) Recognized in Income of Derivatives (Ineffective Portion) | 0 | 0 |
Derivative Effective Date December 15, 2016 [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Loss Recognized in OCI on Derivatives, net of Tax (Effective Portion) | (53) | (150) |
Amount of Gain (Loss) Recognized in Income of Derivatives (Ineffective Portion) | 0 | 0 |
Derivative Effective Date June 15, 2017 [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Loss Recognized in OCI on Derivatives, net of Tax (Effective Portion) | (68) | (182) |
Amount of Gain (Loss) Recognized in Income of Derivatives (Ineffective Portion) | 0 | 0 |
Derivative Effective Date December 15, 2017 Contract 1 [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Loss Recognized in OCI on Derivatives, net of Tax (Effective Portion) | (165) | (236) |
Amount of Gain (Loss) Recognized in Income of Derivatives (Ineffective Portion) | 0 | 0 |
Derivative Effective Date December 15, 2017 Contract 2 [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Loss Recognized in OCI on Derivatives, net of Tax (Effective Portion) | (75) | (129) |
Amount of Gain (Loss) Recognized in Income of Derivatives (Ineffective Portion) | $ 0 | $ 0 |