Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 02, 2017 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,017 | |
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 | 6,040,180 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and due from banks | $ 3,028 | $ 2,847 |
Interest-bearing deposits with other banks | 7,741 | 11,791 |
Cash and cash equivalents | 10,769 | 14,638 |
Interest bearing time deposits with other banks | 100 | 100 |
Securities available for sale, at fair value | 100,978 | 88,611 |
Securities held to maturity, at amortized cost (fair value of $8,238 and $11,739 at September 30, 2017 and December 31, 2016, respectively) | 8,075 | 11,618 |
Federal Home Loan Bank Stock, at cost | 5,081 | 5,106 |
Loans receivable, net of unearned income | 795,124 | 695,257 |
Less: allowance for loan losses | 7,502 | 6,696 |
Net loans receivable | 787,622 | 688,561 |
Foreclosed real estate | 2,275 | 2,367 |
Premises and equipment, net | 7,683 | 8,728 |
Accrued interest receivable | 2,562 | 2,058 |
Goodwill | 2,820 | 2,820 |
Bank-owned life insurance | 21,910 | 16,532 |
Other assets | 6,927 | 7,589 |
Total Assets | 956,802 | 848,728 |
Deposits: | ||
Non-interest bearing | 148,861 | 132,434 |
Interest bearing | 593,067 | 528,487 |
Total deposits | 741,928 | 660,921 |
Short-term borrowings | 33,710 | 29,805 |
Long-term borrowings | 55,000 | 66,000 |
Accrued interest payable and other liabilities | 4,374 | 4,090 |
Subordinated debentures | 27,846 | 27,840 |
Total Liabilities | 862,858 | 788,656 |
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; 6,040,180 and 4,741,068 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively | 65,304 | 36,538 |
Deferred compensation obligation under Rabbi Trust | 1,371 | 1,383 |
Retained earnings | 27,629 | 23,291 |
Accumulated other comprehensive income | 1,011 | 243 |
Stock held by Rabbi Trust | (1,371) | (1,383) |
Total Stockholders' Equity | 93,944 | 60,072 |
Total Liabilities and Stockholders' Equity | $ 956,802 | $ 848,728 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Securities held to maturity, fair value | $ 8,238 | $ 11,739 |
Preferred stock authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock issued (in shares) | 0 | 0 |
Common stock authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock issued (in shares) | 6,040,180 | 4,741,068 |
Common stock outstanding (in shares) | 6,040,180 | 4,741,068 |
Consolidated Statements Of Inco
Consolidated Statements Of Income And Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
INTEREST INCOME | ||||
Loans receivable, including fees | $ 8,556 | $ 6,971 | $ 24,030 | $ 19,575 |
Securities: | ||||
Taxable | 379 | 396 | 1,064 | 1,116 |
Tax-exempt | 314 | 201 | 943 | 592 |
Interest bearing deposits | 6 | 7 | 28 | 17 |
Total Interest Income | 9,255 | 7,575 | 26,065 | 21,300 |
INTEREST EXPENSE | ||||
Deposits | 963 | 619 | 2,532 | 1,830 |
Borrowings | 398 | 508 | 1,358 | 1,393 |
Subordinated debentures | 320 | 100 | 957 | 266 |
Total Interest Expense | 1,681 | 1,227 | 4,847 | 3,489 |
Net Interest Income | 7,574 | 6,348 | 21,218 | 17,811 |
PROVISION FOR LOAN LOSSES | 340 | 458 | 1,127 | 1,054 |
Net Interest Income after Provision for Loan Losses | 7,234 | 5,890 | 20,091 | 16,757 |
OTHER INCOME | ||||
Service fees on deposit accounts | 274 | 245 | 812 | 726 |
ATM and debit card fees | 198 | 190 | 578 | 577 |
Bank-owned life insurance | 144 | 74 | 378 | 225 |
Insurance commissions and fees | 1,263 | 1,090 | 4,153 | 3,850 |
Investment brokerage fees | 9 | (10) | 12 | 67 |
Net (loss) gain on sales of securities | (26) | 89 | 51 | 361 |
Net loss on disposal of premises and equipment | 0 | 0 | 0 | (19) |
Other | 167 | 96 | 340 | 337 |
Total Other Income | 2,029 | 1,774 | 6,324 | 6,124 |
OTHER EXPENSES | ||||
Salaries and employee benefits | 3,755 | 3,243 | 10,990 | 9,672 |
Occupancy, net | 462 | 463 | 1,418 | 1,399 |
Data processing | 565 | 529 | 1,643 | 1,626 |
Furniture and equipment | 231 | 248 | 705 | 764 |
Advertising and promotion | 64 | 63 | 259 | 254 |
Professional fees | 303 | 219 | 778 | 570 |
Director fees | 94 | 159 | 290 | 378 |
FDIC assessment | 49 | 138 | 193 | 379 |
Insurance | 70 | 67 | 202 | 213 |
Stationary and supplies | 42 | 47 | 118 | 149 |
Merger-related expenses | 1 | 0 | 482 | 0 |
Loan collection costs | 23 | 24 | 75 | 109 |
Net expenses and write-downs related to foreclosed real estate | 221 | 98 | 298 | 317 |
Other | 414 | 353 | 1,346 | 1,029 |
Total Other Expenses | 6,294 | 5,651 | 18,797 | 16,859 |
Income before Income Taxes | 2,969 | 2,013 | 7,618 | 6,022 |
EXPENSE FOR INCOME TAXES | 1,006 | 696 | 2,440 | 2,022 |
Net Income | 1,963 | 1,317 | 5,178 | 4,000 |
OTHER COMPREHENSIVE INCOME: | ||||
Unrealized (loss) gains on available for sale securities arising during the period | (10) | (575) | 1,810 | 1,986 |
Fair value adjustments on derivatives | (63) | 190 | (478) | (1,359) |
Reclassification adjustment for net loss (gain) on securities transactions included in net income | 26 | (89) | (51) | (361) |
Income tax related to items of other comprehensive (loss) income | 18 | 190 | (513) | (106) |
Other comprehensive (loss) income, net of income taxes | (29) | (284) | 768 | 160 |
Comprehensive income | $ 1,934 | $ 1,033 | $ 5,946 | $ 4,160 |
EARNINGS PER SHARE | ||||
Basic (usd per share) | $ 0.33 | $ 0.28 | $ 1 | $ 0.87 |
Diluted (usd per share) | $ 0.33 | $ 0.28 | $ 1 | $ 0.86 |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Deferred Compensation Obligation Under Rabbi Trust | Retained Earnings | Accumulated Other Comprehensive Income | Stock Held by Rabbi Trust | Treasury Stock |
Beginning balance at Dec. 31, 2015 | $ 53,941 | $ 35,927 | $ 0 | $ 18,520 | $ 86 | $ 0 | $ (592) |
Beginning balance (in shares) at Dec. 31, 2015 | 4,646,238 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 4,000 | 4,000 | |||||
Other comprehensive income | 160 | 160 | |||||
Treasury shares purchased | (26) | (26) | |||||
Treasury shares purchased (in shares) | (2,127) | ||||||
Funding of Supplemental Director Retirement Plan | 0 | 1,359 | (1,359) | ||||
Stock issued to fund Rabbi Trust | 814 | $ 198 | 616 | ||||
Stock issued to fund Rabbi Trust (in shares) | 60,920 | ||||||
Options exercised | 4 | 2 | |||||
Options exercised (in shares) | 449 | ||||||
Restricted stock granted (in shares) | 41,619 | ||||||
Restricted stock forfeited (in shares) | (5,379) | ||||||
Compensation expense related to stock option and restricted stock grants | 302 | $ 302 | |||||
Dividends declared on common stock ($0.10 and $0.08 per share as of June 30, 2017 and 2016, respectively) | (562) | (562) | |||||
Ending balance at Sep. 30, 2016 | 58,633 | $ 36,429 | 1,359 | 21,958 | 246 | (1,359) | 0 |
Ending balance (in shares) at Sep. 30, 2016 | 4,741,720 | ||||||
Beginning balance at Dec. 31, 2016 | $ 60,072 | $ 36,538 | 1,383 | 23,291 | 243 | (1,383) | 0 |
Beginning balance (in shares) at Dec. 31, 2016 | 4,741,068 | 4,741,068 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | $ 5,178 | 5,178 | |||||
Other comprehensive income | 768 | 768 | |||||
Funding of Supplemental Director Retirement Plan | 0 | (12) | 12 | ||||
Options exercised | 0 | ||||||
Proceeds of capital raise (net of capitalized costs of $187 thousand) | 28,238 | $ 28,238 | |||||
Net proceeds of capital raise (in shares) | 1,249,999 | ||||||
Restricted stock granted (in shares) | 53,170 | ||||||
Restricted stock forfeited (in shares) | (4,057) | ||||||
Compensation expense related to stock option and restricted stock grants | 528 | $ 528 | |||||
Dividends declared on common stock ($0.10 and $0.08 per share as of June 30, 2017 and 2016, respectively) | (840) | (840) | |||||
Ending balance at Sep. 30, 2017 | $ 93,944 | $ 65,304 | $ 1,371 | $ 27,629 | $ 1,011 | $ (1,371) | $ 0 |
Ending balance (in shares) at Sep. 30, 2017 | 6,040,180 | 6,040,180 |
Consolidated Statements Of Sto6
Consolidated Statements Of Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared (usd per share) | $ 0.16 | $ 0.12 |
Capital costs | $ 187 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash Flows from Operating Activities | ||
Net income | $ 5,178 | $ 4,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 1,127 | 1,054 |
Depreciation and amortization | 799 | 837 |
Net amortization of securities premiums and discounts | 1,265 | 1,159 |
Amortization of subordinated debt issuance costs | 6 | 0 |
Net realized gain on sale of securities | (51) | (361) |
Net realized loss on disposal of premises and equipment | 0 | 19 |
Net realized gain on sale of foreclosed real estate | (13) | (14) |
Write-downs of and provisions for foreclosed real estate | 236 | 199 |
Deferred income tax benefit | (546) | (68) |
Earnings on bank-owned life insurance | (378) | (225) |
Compensation expense for stock options and stock awards | 528 | 302 |
(Increase) decrease in assets: | ||
Accrued interest receivable | (504) | (33) |
Other assets | 217 | (1,047) |
Increase in accrued interest payable and other liabilities | 284 | 332 |
Net Cash Provided by Operating Activities | 8,148 | 6,154 |
Securities available for sale: | ||
Purchases | (50,161) | (27,431) |
Sales | 31,790 | 23,685 |
Maturities, calls and principal repayments | 6,569 | 6,731 |
Securities held to maturity: | ||
Purchases | (1,000) | (2,023) |
Sales | 0 | 1,008 |
Maturities, calls and principal repayments | 4,523 | 1,209 |
Net increase in loans | (100,500) | (120,877) |
Proceeds from the sale of foreclosed real estate | 617 | 893 |
Purchases of bank premises and equipment | (190) | (927) |
Proceeds from the sale of premises and equipment | 0 | 5 |
Purchase of bank owned life insurance | (5,000) | 0 |
Net increase (decrease) in Federal Home Loan Bank stock | 25 | (468) |
Net Cash Used in Investing Activities | (113,327) | (118,195) |
Cash Flows from Financing Activities | ||
Net increase in deposits | 81,007 | 107,065 |
Net increase in short-term borrowed funds | 3,905 | 1,850 |
Proceeds from long-term borrowings | 0 | 10,000 |
Repayment of long-term borrowings | (11,000) | 0 |
Net proceeds from capital raise | 28,238 | 0 |
Purchase of treasury stock | 0 | (26) |
Proceeds from exercise of stock options | 0 | 4 |
Net proceeds from issuance of common stock | 0 | |
Dividends paid | (840) | (562) |
Net Cash Provided by Financing Activities | 101,310 | 118,331 |
Net (Decrease) increase in Cash and Cash Equivalents | (3,869) | 6,290 |
Cash and Cash Equivalents - Beginning | 14,638 | 6,120 |
Cash and Cash Equivalents - Ending | 10,769 | 12,410 |
Supplementary Cash Flows Information | ||
Interest paid | 4,810 | 3,440 |
Income taxes paid | 2,695 | 2,560 |
Supplementary Schedule of Noncash Investing and Financing Activities | ||
Foreclosed real estate acquired in settlement of loans | 312 | 729 |
Other real estate owned transferred from fixed assets | $ 437 | $ 0 |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
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, 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 nine month periods ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 . 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, 2016 . New Accounting Standards In May 2014, the FASB issued an Accounting Standard Update (“ASU”) 2014-09 to amend its guidance on “Revenue from Contracts with Customers, (Topic 606). The objective of the ASU is to align the recognition of revenue with the transfer of promised goods or services provided to customers in an amount that reflects the consideration which the entity expects to be entitled in exchange for those goods or services. This ASU will replace most existing revenue recognition guidance under U.S. GAAP when it becomes effective. In August 2015, the FASB issued an amendment (ASU 2015-14) which defers the effective date of this new guidance by one year. More detailed implementation guidance on Topic 606 was issued in March 2016 (ASU 2016-08), April 2016 (ASU 2016-10) May 2016 (ASU 2016-12), December 2016 (ASU 2016-20), February 2017 (ASU 2017-05) and September 2017 (ASU 2017-13), and the effective date and transition requirements for these ASUs are the same as the effective date and transition requirements of ASU 2014-09. The amendments in Topic 606 are effective for public business entities for annual periods beginning after December 15, 2017. Approximately 80% of the Company’s revenue is comprised of interest income on financial assets, which are explicitly excluded from the scope of Topic 606. In addition, approximately 65% of the Company’s non-interest income consists of insurance commissions and fees, which are also excluded from the scope of Topic 606. With respect to the remaining elements of our non-interest income, management has identified revenue streams within the scope of the guidance, primarily service fees on deposits and ATM and debit card fees, but has not yet performed an evaluation of the underlying revenue contracts. Since the Company has not yet performed a detailed analysis on contracts that include the potentially impacted accounts, we cannot make a formal assessment on the impact. Preliminarily, we expect to adopt Topic 606, as modified and amended, using the retrospective approach with the cumulative effect adjustment. 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 currently expects that upon adoption of ASU 2016-02, right-of-use assets and lease liabilities will be recognized in the consolidated balance sheet in amounts that will be material; however, there will be no material impact on operations. In March 2016, FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . FASB issued 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. On May 10, 2017, the FASB issued ASU 2017-09, which amends the scope of modification accounting for share-based payment arrangements issued in ASU 2016-09. The ASU provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under ASC 718. Specifically, an entity would not apply modification accounting if the fair value, vesting conditions, and classification of the awards are the same immediately before and after the modification. The Company`s adoption of the ASU did not have a significant impact on the Company`s consolidated financial statements. The effective tax rate decreased 1.6% to 32.0% from 33.6% for the nine months ended September 30, 2017 and 2016, respectively. The adoption of the ASU minimally impacted the Company's annualized tax rate which will be analyzed thru the year ended 2017. 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. The Company has taken steps to prepare for implementation when it becomes effective, such as changes to its current model and evaluating the potential use of outside professionals for an updated model. In August 2016, FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments (a consensus of the FASB Emerging Issues Task Force), which addresses eight classification issues related to the statement of cash flows: (i) debt prepayment or debt extinguishment costs, (ii) settlement of zero-coupon bonds, (iii) contingent consideration payments made after a business combination, (iv) proceeds from the settlement of insurance claims, (v) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, (vi) distributions received from equity method investees, (vii) beneficial interests in securitization transactions, and (viii) separately identifiable cash flows and application of the predominance principle. ASU 2016-15 is effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the ASU in an interim period, 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. Entities should apply this ASU using a retrospective transition method to each period presented. If it is impracticable for an entity to apply the ASU retrospectively for some of the issues, it may apply the amendments for those issues prospectively as of the earliest date practicable. The Company`s adoption of the ASU will not have a significant impact on the Company's consolidated financial statements. In January 2017, FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment (Topic 350). The main objective of this ASU is to simplify the accounting for goodwill impairment by requiring impairment charges be based upon the first step in the current two-step impairment test under Accounting Standards Codification (ASC) 350. Currently, if the fair value of a reporting unit is lower than its carrying amount (Step 1), an entity calculates any impairment charge by comparing the implied fair value of goodwill with its carrying amount (Step 2). This ASU’s objective is to simplify how all entities assess goodwill for impairment by eliminating Step 2 from the goodwill impairment test. As amended, the goodwill impairment test will consist of one step comparing the fair value of a reporting unit with its carrying amount. An entity should recognize a goodwill impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The standard will be applied prospectively and is effective for annual and interim impairment tests performed in periods beginning after December 15, 2019. Early adoption is permitted for annual and interim goodwill impairment testing dates after January 1, 2017. The Company is currently evaluating the impact of the pending adoption on its consolidated financial statements. In March 2017, FASB issued ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities (Subtopic 310-20) . The update shortens the amortization period for premiums on purchased callable debt securities to the earliest call date. The amendment will apply only to callable debt securities with explicit, noncontingent call features that are callable at fixed prices and on preset dates, apply to all premiums on callable debt securities, regardless of how they were generated, and require companies to reset the effective yield using the payment terms of the debt security if the call option is not exercised on the earliest call date. The ASU does not require an accounting change for securities held at a discount. The discount continues to be amortized to maturity and does not apply when the investor has already incorporated prepayments into the calculation of its effective yield under other GAAP. The amendments in the ASU are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those years.Early adoption is permitted, including adoption in an interim period. 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. The Company's adoption of the ASU will not have a significant impact on the Company's consolidated financial statements. |
Acquisitions And Stock Offering
Acquisitions And Stock Offering | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisitions And Stock Offering | ACQUISITIONS AND STOCK OFFERING On April 11, 2017, we announced the signing of a definitive merger agreement to acquire Community Bank of Bergen County, NJ, a New Jersey-chartered bank (“Community”) in an all-stock transaction (the “Merger”). Under the terms of the agreement, Community will be merged with and into Sussex Bank, with Sussex Bank being the surviving entity and each outstanding share of Community common stock will be exchanged for 0.97 shares of Sussex Bancorp's common stock. The transaction is expected to close in the first quarter of 2018, subject to customary closing conditions, including receipt of regulatory approvals and the approvals of the shareholders of Sussex Bancorp and Community. Based on financials as of December 31, 2016, the combined company will have approximately $1.2 billion in assets, $925 million in gross loans, and $965 million in deposits upon completion of the transaction. Included in the Company`s third quarter and year-to-date non-interest expense was $482 thousand in non-recurring expenses related to the Merger, largely legal and other professional fees. The Company expects to incur related non-recurring costs through the closing of the Merger. The Company has received regulatory approvals from The New Jersey Department of Banking and Insurance and the FDIC to complete the merger. On June 21, 2017, we announced the closing of an underwritten public offering of 1,136,363 shares of the Company’s common stock at a public offering price of $24.00 per share. The Company granted the underwriters a 30-day option to purchase up to an additional 113,636 shares of its common stock, which was exercised in full by the Underwriters on June 16, 2017. The net proceeds to the Company (including the proceeds from the exercise of the Underwriters’ option) after deducting underwriting discounts and commissions was $28.2 million , which will be used for general corporate purposes. The Company estimates it will incur an additional $100 thousand in unbilled offering expenses; such expenses will reduce net proceeds. |
Securities
Securities | 9 Months Ended |
Sep. 30, 2017 | |
Investments [Abstract] | |
Securities | SECURITIES Available for Sale The amortized cost and approximate fair value of securities available for sale as of September 30, 2017 and December 31, 2016 are summarized as follows: (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value September 30, 2017 U.S. government agencies $ 19,509 $ 72 $ (44 ) $ 19,537 State and political subdivisions 41,936 950 (157 ) 42,729 Mortgage-backed securities - U.S. government-sponsored enterprises 37,016 126 (463 ) 36,679 Corporate Debt 2,000 33 — 2,033 $ 100,461 $ 1,181 $ (664 ) $ 100,978 December 31, 2016 U.S. government agencies $ 13,115 $ 29 $ (57 ) $ 13,087 State and political subdivisions 41,255 203 (770 ) 40,688 Mortgage-backed securities - U.S. government-sponsored enterprises 33,483 126 (755 ) 32,854 Corporate Debt 2,000 — (18 ) 1,982 $ 89,853 $ 358 $ (1,600 ) $ 88,611 Securities with a carrying value of approximately $22.8 million and $34.3 million at September 30, 2017 and December 31, 2016 , 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 September 30, 2017 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 — — Due after five years through ten years 5,671 5,738 Due after ten years 38,265 39,024 Total bonds and obligations 43,936 44,762 U.S. government agencies 19,509 19,537 Mortgage-backed securities: U.S. government-sponsored enterprises 37,016 36,679 Total available for sale securities $ 100,461 $ 100,978 Gross gains on sales of securities available for sale were $129 thousand and gross realized losses were $155 thousand for the three months ended September 30, 2017 . Gross realized gains on sales of securities available for sale were $89 thousand and gross losses were less than $1 thousand for the three months ended September 30, 2016. Gross gains on sales of securities available for sale were $294 thousand and $353 thousand and gross losses were $243 and less than $1 thousand for the nine months ended September 30, 2017 and 2016, 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 September 30, 2017 and December 31, 2016 . 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 September 30, 2017 U.S. government agencies $ 8,042 $ (44 ) $ — $ — $ 8,042 $ (44 ) State and political subdivisions 7,808 (135 ) 573 (22 ) 8,381 (157 ) Mortgage-backed securities - U.S. government-sponsored enterprises 17,682 (324 ) 8,233 (139 ) 25,915 (463 ) Total temporarily impaired securities $ 33,532 $ (503 ) $ 8,806 $ (161 ) $ 42,338 $ (664 ) December 31, 2016 U.S. government agencies $ 4,952 $ (15 ) $ 2,126 $ (42 ) $ 7,078 $ (57 ) State and political subdivisions 23,989 (770 ) — — 23,989 (770 ) Mortgage-backed securities - U.S. government-sponsored enterprises 23,299 (752 ) 639 (3 ) 23,938 (755 ) Corporate Debt 1,982 (18 ) — — 1,982 (18 ) Total temporarily impaired securities $ 54,222 $ (1,555 ) $ 2,765 $ (45 ) $ 56,987 $ (1,600 ) 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 September 30, 2017 , we reviewed our available for sale securities portfolio for indications of impairment. This review included analyzing the length of time and the extent to which the fair value was 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 September 30, 2017 and December 31, 2016 , the declines 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 September 30, 2017 , there were five securities with a fair value of $8.0 million that had an unrealized loss that amounted to $44 thousand . As of September 30, 2017 , 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 September 30, 2017 were deemed to be other-than-temporarily impaired (“OTTI”). At December 31, 2016 , there were five securities with a fair value of $7.1 million that had an unrealized loss that amounted to $57 thousand . State and Political Subdivisions At September 30, 2017 and December 31, 2016 , 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 September 30, 2017, there were eight securities with a fair value of $8.4 million that had an unrealized loss that amounted to $157 thousand . 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, 2016 , there were thirty-one securities with a fair value of $24.0 million that had an unrealized loss that amounted to $770 thousand . Mortgage-Backed Securities At September 30, 2017 and December 31, 2016 , 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 September 30, 2017 , there were eighteen securities with a fair value of $25.9 million that had an unrealized loss that amounted to $463 thousand . As of September 30, 2017 , 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 September 30, 2017 were deemed to be OTTI. At December 31, 2016 , there were sixteen securities with a fair value of $23.9 million that had an unrealized loss that amounted to $755 thousand . Corporate Debt At September 30, 2017 , there were no securities that had an unrealized loss. These securities typically have maturity dates greater than 5 years and the fair values are more sensitive to changes in market interest rates. As of September 30, 2017 , we did not intend to sell and it was more-likely-than-no that we would be required to sell any of these securities before recovery of their amortized cost basis. Therefore, none of our corporate debt as September 30, 2017, were deemed to be other-than-temporarily-impaired. At December 31, 2016, there was one security with a fair value of $2.0 million that had an unrealized loss that amounted to $18 thousand . Held to Maturity Securities The amortized cost and approximate fair value of securities held to maturity as of September 30, 2017 and December 31, 2016 are summarized as follows: (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value September 30, 2017 State and political subdivisions $ 8,075 $ 163 $ — $ 8,238 December 31, 2016 State and political subdivisions $ 11,618 $ 123 $ (2 ) $ 11,739 During the nine months ended September 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 nine months ended September 30, 2016. The amortized cost and carrying value of securities held to maturity at September 30, 2017 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 $ 5,240 $ 5,240 Due after one year through five years 255 257 Due after five years through ten years 1,544 1,615 Due after ten years 1,036 1,126 Total held to maturity securities $ 8,075 $ 8,238 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 September 30, 2017 , 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, 2016 , there were two securities with a fair value of $789 thousand that had an unrealized loss of $2 thousand . 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 December 31, 2016 State and political subdivisions $ 789 $ (2 ) $ — $ — $ 789 $ (2 ) Total temporarily impaired securities $ 789 $ (2 ) $ — $ — $ 789 $ (2 ) |
Loans
Loans | 9 Months Ended |
Sep. 30, 2017 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans | LOANS The composition of net loans receivable at September 30, 2017 and December 31, 2016 is as follows: (Dollars in thousands) September 30, 2017 December 31, 2016 Commercial and industrial $ 46,493 $ 40,280 Construction 43,834 25,360 Commercial real estate 536,122 479,227 Residential real estate 167,496 150,237 Consumer and other 2,197 1,038 Total loans receivable 796,142 696,142 Unearned net loan origination fees (1,018 ) (885 ) Allowance for loan losses (7,502 ) (6,696 ) Net loans receivable $ 787,622 $ 688,561 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 $242 thousand and $249 thousand at September 30, 2017 and December 31, 2016 , respectively. Mortgage servicing rights were immaterial at September 30, 2017 and December 31, 2016 . |
Allowance For Loan Losses And C
Allowance For Loan Losses And Credit Quality Of Financing Receivables | 9 Months Ended |
Sep. 30, 2017 | |
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 and nine months ended September 30, 2017 and 2016 : (Dollars in thousands) Commercial and Industrial Construction Commercial Real Estate Residential Real Estate Consumer and Other Unallocated Total Three Months Ended: September 30, 2017 Beginning balance $ 201 $ 478 $ 4,243 $ 917 $ 20 $ 1,306 $ 7,165 Charge-offs — — — — (7 ) — (7 ) Recoveries 1 — 1 1 1 — 4 Provision (31 ) (17 ) 1,105 87 30 (834 ) 340 Ending balance $ 171 $ 461 $ 5,349 $ 1,005 $ 44 $ 472 $ 7,502 September 30, 2016 Beginning balance $ 199 $ 208 $ 4,020 $ 914 $ 17 $ 630 $ 5,988 Charge-offs — — (91 ) (25 ) (11 ) — (127 ) Recoveries 5 — 2 1 4 — 12 Provision 5 106 (24 ) (48 ) 8 411 458 Ending balance $ 209 $ 314 $ 3,907 $ 842 $ 18 $ 1,041 $ 6,331 Nine Months Ended: September 30, 2017 Beginning balance $ 110 359 $ 3,932 $ 899 $ 19 $ 1,377 $ 6,696 Charge-offs (13 ) — (266 ) (42 ) (20 ) — (341 ) Recoveries 1 — 5 10 4 — 20 Provision 73 102 1,678 138 41 (905 ) 1,127 Ending balance $ 171 $ 461 $ 5,349 $ 1,005 $ 44 $ 472 $ 7,502 September 30, 2016 Beginning balance $ 85 220 $ 3,646 $ 784 $ 87 $ 768 $ 5,590 Charge-offs (138 ) — (156 ) (59 ) (30 ) — (383 ) Recoveries 21 — 36 7 6 — 70 Provision 241 94 381 110 (45 ) 273 1,054 Ending balance $ 209 $ 314 $ 3,907 $ 842 $ 18 $ 1,041 $ 6,331 The following table presents the balance of the allowance of loan losses and loans receivable by class at September 30, 2017 and December 31, 2016 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 September 30, 2017 Commercial and industrial $ 171 $ — $ 171 $ 46,493 $ 20 $ 46,473 Construction 461 — 461 43,834 — 43,834 Commercial real estate 5,349 784 4,565 536,122 5,699 530,423 Residential real estate 1,005 1 1,004 167,496 1,823 165,673 Consumer and other loans 44 — 44 2,197 — 2,197 Unallocated 472 — — — — — Total $ 7,502 $ 785 $ 6,245 $ 796,142 $ 7,542 $ 788,600 December 31, 2016 Commercial and industrial $ 110 $ 14 $ 96 $ 40,280 $ 33 $ 40,247 Construction 359 — 359 25,360 — 25,360 Commercial real estate 3,932 135 3,797 479,227 4,597 474,630 Residential real estate 899 6 893 150,237 1,967 148,270 Consumer and other loans 19 — 19 1,038 — 1,038 Unallocated 1,377 — — — — — Total $ 6,696 $ 155 $ 5,164 $ 696,142 $ 6,597 $ 689,545 An age analysis of loans receivable, which were past due as of September 30, 2017 and December 31, 2016 , 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 September 30, 2017 Commercial and industrial $ 137 $ 192 $ 20 $ 349 $ 46,144 $ 46,493 $ — Construction 107 — — 107 43,727 43,834 — Commercial real estate 212 — 5,246 5,458 530,664 536,122 — Residential real estate 966 6 1,338 2,310 165,186 167,496 — Consumer and other 8 — — 8 2,189 2,197 — Total $ 1,430 $ 198 $ 6,604 $ 8,232 $ 787,910 $ 796,142 $ — December 31, 2016 Commercial and industrial $ — $ — $ 137 $ 137 $ 40,143 $ 40,280 $ 104 Construction — — 309 309 25,051 25,360 309 Commercial real estate 84 719 4,103 4,906 474,321 479,227 55 Residential real estate 786 247 1,752 2,785 147,452 150,237 — Consumer and other 4 — — 4 1,034 1,038 — Total $ 874 $ 966 $ 6,301 $ 8,141 $ 688,001 $ 696,142 $ 468 (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 September 30, 2017 and December 31, 2016 were: (Dollars in thousands) September 30, 2017 December 31, 2016 Commercial and industrial $ 20 $ 33 Commercial real estate 5,246 4,048 Residential real estate 1,338 1,752 Total $ 6,604 $ 5,833 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 September 30, 2017 and December 31, 2016 : (Dollars in thousands) Pass Special Mention Substandard Doubtful Total September 30, 2017 Commercial and industrial $ 46,178 $ 295 $ 20 $ — $ 46,493 Construction 43,727 107 — — 43,834 Commercial real estate 520,867 4,019 11,236 — 536,122 Residential real estate 165,163 231 2,102 — 167,496 Consumer and other 2,197 — — — 2,197 $ 778,132 $ 4,652 $ 13,358 $ — $ 796,142 December 31, 2016 Commercial and industrial $ 40,247 $ — $ 33 $ — $ 40,280 Construction 25,360 — — — 25,360 Commercial real estate 463,889 7,461 7,877 — 479,227 Residential real estate 147,526 584 2,127 — 150,237 Consumer and other 1,038 — — — 1,038 $ 678,060 $ 8,045 $ 10,037 $ — $ 696,142 The following table reflects information about our impaired loans by class as of September 30, 2017 and December 31, 2016 : September 30, 2017 December 31, 2016 (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 $ 38 $ — $ 19 $ 19 $ — Commercial real estate 3,455 4,014 — 2,324 2,324 — Residential real estate 1,722 1,790 — 1,604 1,629 — With an allowance recorded: Commercial and industrial — — — 14 14 14 Commercial real estate 2,244 2,272 784 2,273 2,364 135 Residential real estate 101 118 1 363 363 6 Total: Commercial and industrial 20 38 — 33 33 14 Commercial real estate 5,699 6,286 784 4,597 4,688 135 Residential real estate 1,823 1,908 1 1,967 1,992 6 $ 7,542 $ 8,232 $ 785 $ 6,597 $ 6,713 $ 155 The following tables presents the average recorded investment and income recognized for our impaired loans for the three and nine months ended September 30, 2017 and 2016 : For the Three Months Ended September 30, 2017 For the Three Months Ended September 30, 2016 (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 3,819 8 2,002 4 Residential real estate 1,880 5 1,316 3 Total impaired loans without a related allowance 5,719 13 3,338 7 With an allowance recorded: Commercial real estate 1,285 — 2,394 8 Residential real estate 51 — 184 — Total impaired loans with an allowance 1,336 — 2,578 8 Total impaired loans $ 7,055 $ 13 $ 5,916 $ 15 For the Nine Months Ended September 30, 2017 For the Nine Months Ended September 30, 2016 (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 2,848 21 2,224 16 Residential real estate 1,639 14 1,188 6 Total impaired loans without a related allowance 4,507 35 3,432 22 With an allowance recorded: Commercial and industrial 3 — — — Commercial real estate 1,832 8 2,546 25 Residential real estate 191 — 281 — Consumer and other — — 69 — Total impaired loans with an allowance 2,026 8 2,896 25 Total impaired loans $ 6,533 $ 43 $ 6,328 $ 47 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 September 30, 2017 Performing $ 453 $ 486 $ 939 Non-performing 2,218 247 2,465 Total $ 2,671 $ 733 $ 3,404 December 31, 2016 Performing $ 550 $ 129 $ 679 Non-performing 2,258 — 2,258 Total $ 2,808 $ 129 $ 2,937 Troubled debt restructured loans are considered impaired and are included in the previous impaired loans disclosures in this footnote. As of September 30, 2017 , we have not committed to lend additional amounts to customers with outstanding loans that are classified as troubled debt restructuring. There were no troubled debt restructuring that occurred during the three months ended September 30, 2017. There were three troubled debt restructuring in the amount of $637 thousand that occurred during the nine months ended September 30, 2017 . There were no troubled debt restructuring that occurred during the three and nine months ended September 30, 2016. The following table summarizes troubled debt restructuring that occurred during the nine months ended September 30, 2017. Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (Dollars in thousands) Residential real estate 3 $ 637 $ 615 There were no troubled debt restructuring for which there was a payment default within twelve months following the date of the restructuring for the nine months ended September 30, 2017 and 2016 . We may obtain physical possession of residential real estate collateralizing a consumer mortgage loan via foreclosure on an in-substance repossession. As of September 30, 2017 , we had one foreclosed residential real estate property with a carrying value of $179 thousand . As of December 31, 2016, we did not hold any foreclosed residential real estate properties. In addition, as of September 30, 2017 and December 31, 2016 , respectively, we had consumer loans with a carrying value of $469 thousand and $666 thousand collateralized by residential real estate property for which formal foreclosure proceedings were in process. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2017 | |
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 September 30, 2017 Three Months Ended September 30, 2016 (In thousands, except share and per share data) Income (Numerator) Shares (Denominator) Per Share Amount Income (Numerator) Shares (Denominator) Per Share Amount Shares Outstanding (weighted average) 5,953,333 4,646,690 Shares held by Rabbi Trust (92,885 ) — Shares liability under deferred compensation agreement 92,885 — Basic earnings per share: Net earnings applicable to common stockholders $ 1,963 5,953,333 $ 0.33 $ 1,317 4,646,690 $ 0.28 Effect of dilutive securities: Unvested stock awards — 47,372 — 37,618 Diluted earnings per share: Net income applicable to common stockholders and assumed conversions $ 1,963 6,000,705 $ 0.33 $ 1,317 4,684,308 $ 0.28 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 (In thousands, except share and per share data) Income (Numerator) Shares (Denominator) Per Share Amount Income (Numerator) Shares (Denominator) Per Share Amount Shares Outstanding (weighted average) 5,158,842 4,605,399 Shares held by Rabbi Trust (92,885 ) — Shares liability under deferred compensation agreement 92,885 — Basic earnings per share: Net earnings applicable to common stockholders $ 5,178 5,158,842 $ 1.00 $ 4,000 4,605,399 $ 0.87 Effect of dilutive securities: Unvested stock awards — 41,625 — 28,074 Diluted earnings per share: Net income applicable to common stockholders and assumed conversions $ 5,178 5,200,467 $ 1.00 $ 4,000 4,633,473 $ 0.86 There were zero and 29,813 shares of unvested restricted stock awards and options outstanding during the three months ended September 30, 2017 and 2016 , respectively, which were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive. There were 13,972 and 45,845 shares of unvested restricted stock awards and options outstanding during the nine months ended September 30, 2017 and 2016, 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 | 9 Months Ended |
Sep. 30, 2017 | |
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 September 30, 2017 Three Months Ended September 30, 2016 Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax (Dollars in thousands) Other comprehensive income (loss): Unrealized gains on available for sale securities $ (10 ) $ (3 ) $ (7 ) $ (575 ) $ (230 ) $ (345 ) Fair value adjustments on derivatives (63 ) (25 ) (38 ) 190 75 115 Reclassification adjustment for net losses (gains) on securities transactions included in net income 26 10 16 (89 ) (35 ) (54 ) Total other comprehensive income $ (47 ) $ (18 ) $ (29 ) $ (474 ) $ (190 ) $ (284 ) Nine Months Ended September 30, 2017 Six Months Ended June 30, 2016 Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax (Dollars in thousands) Other comprehensive income (loss): Unrealized gains on available for sale securities $ 1,810 $ 724 $ 1,086 $ 1,986 $ 794 $ 1,192 Fair value adjustments on derivatives (478 ) (191 ) (287 ) (1,359 ) (544 ) (815 ) Reclassification adjustment for net gains on securities transactions included in net income (51 ) (20 ) (31 ) (361 ) (144 ) (217 ) Total other comprehensive income $ 1,281 $ 513 $ 768 $ 266 $ 106 $ 160 |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2017 | |
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 September 30, 2017 Three Months Ended September 30, 2016 Banking and Financial Services Insurance Services Total Banking and Financial Services Insurance Services Total (Dollars in thousands) Net interest income from external sources $ 7,574 $ — $ 7,574 $ 6,348 $ — $ 6,348 Other income from external sources 756 1,273 2,029 707 1,067 1,774 Depreciation and amortization 255 6 261 283 8 291 Income before income taxes 2,775 194 2,969 1,848 165 2,013 Income tax expense (1) 928 78 1,006 630 66 696 Total assets 950,661 6,141 956,802 803,032 5,955 808,987 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 Banking and Financial Services Insurance Services Total Banking and Financial Services Insurance Services Total (Dollars in thousands) Net interest income from external sources $ 21,218 $ — $ 21,218 $ 17,811 $ — $ 17,811 Other income from external sources 2,141 4,183 6,324 2,274 3,850 6,124 Depreciation and amortization 780 19 799 816 21 837 Income before income taxes 6,424 1,194 7,618 4,918 1,104 6,022 Income tax expense (1) 1,962 478 2,440 1,580 442 2,022 Total assets 950,661 6,141 956,802 803,032 5,955 808,987 (1) Insurance Services calculated at statutory tax rate of 40% . |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
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 ter m of 10 years, generally vest over periods ranging between one and five 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 three to five 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 September 30, 2017 is as follows: Number of Shares Weighted Average Exercise Price per Share Weighted Average Contractual Term Aggregate Intrinsic Value Options outstanding, beginning of year 69,123 $ 11.10 Options outstanding, end of quarter 69,123 $ 11.10 7.6 $ 871,027 Options exercisable, end of quarter 22,405 $ 10.69 7.5 $ 291,404 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 Expected dividend yield 1.25 % Expected volatility 22.72 % Risk-free interest rate 1.71 % Expected option life 7.5 years During the three months ended September 30, 2017 and 2016 , we expensed $12 thousand and $10 thousand , respectively, in stock-based compensation under stock option awards. During the nine months ended September 30, 2017 and 2016, we expensed $37 thousand and $34 thousand , respectively, in stock-based compensation under stock option awards. There were no options granted during the nine months ended September 30, 2017. The weighted average grant date fair values of options granted during the nine months ended September 30, 2016 , were $3.37 per share. Expected future expense relating to the unvested options outstanding as of September 30, 2017 is $166 thousand over a weighted average period of 2.6 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 nine months ended September 30, 2017 , is as follows: Number of Shares Weighted Average Grant Date Fair Value Unvested restricted stock, beginning of year 80,743 $ 10.51 Granted 53,170 21.97 Forfeited (4,057 ) 11.43 Vested (44,297 ) 9.05 Unvested restricted stock, end of period 85,559 $ 18.30 During the three months ended September 30, 2017 and 2016 , we expensed $168 thousand and $82 thousand , respectively, in stock-based compensation under restricted stock awards. During the nine months ended September 30, 2017 and 2016, we expensed $491 thousand and $268 thousand , respectively, in stock-based compensation under restricted stock awards. At September 30, 2017 , unrecognized compensation expense for unvested restricted stock was $1.6 million , which is expected to be recognized over an average period of 2.5 years. |
Guarantees
Guarantees | 9 Months Ended |
Sep. 30, 2017 | |
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 September 30, 2017 , we had $251 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 September 30, 2017 , for guarantees under standby letters of credit issued is not material. |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 9 Months Ended |
Sep. 30, 2017 | |
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 September 30, 2017 and December 31, 2016 : (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) September 30, 2017 U.S. government agencies $ 19,537 $ — $ 19,537 $ — State and political subdivisions 42,729 — 42,729 — Mortgage-backed securities - U.S. government-sponsored enterprises 36,679 — 36,679 — Corporate debt 2,033 — 2,033 — Derivative instruments Interest rate swaps 1,169 — 1,169 — December 31, 2016 U.S. government agencies $ 13,087 $ — $ 13,087 $ — State and political subdivisions 40,688 — 40,688 — Mortgage-backed securities - U.S. government-sponsored enterprises 32,854 — 32,854 — Corporate debt 1,982 — 1,982 — Derivative instruments Interest rate swaps 1,647 — 1,647 — 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 September 30, 2017 and December 31, 2016 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) September 30, 2017 Impaired loans $ 2,410 $ — $ — $ 2,410 Foreclosed real estate 568 — — 568 December 31, 2016 Impaired loans $ 1,001 $ — $ — $ 1,001 Foreclosed real estate 1,716 — — 1,716 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) September 30, 2017 Impaired loans $ 2,410 Appraisal of Appraisal 0% to (-100.0% ) collateral adjustments (1) (-9.6%) Foreclosed real estate 568 Appraisal of Selling collateral expenses (1) -7.0%(-7.0%) December 31, 2016 Impaired loans $ 1,001 Appraisal of Appraisal 0% to -27.3% collateral adjustments (1) (-2.5%) Foreclosed real estate 1,716 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 September 30, 2017 and December 31, 2016 : 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 $2.4 million and $1.0 million at September 30, 2017 and December 31, 2016 , respectively. These balances consist of loans that were written down or required additional reserves during the periods ended September 30, 2017 and December 31, 2016 , 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. Subordinated Debentures (Carried at Cost): Fair values of 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 September 30, 2017 and December 31, 2016 , were as follows: September 30, 2017 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 $ 10,769 $ 10,769 $ 10,769 $ — $ — Time deposits with other banks 100 100 — 100 — Securities available for sale 100,978 100,978 — 100,978 — Securities held to maturity 8,075 8,238 — 8,238 — Federal Home Loan Bank stock 5,081 5,081 — 5,081 — Loans receivable, net of allowance 787,622 767,986 — — 767,986 Accrued interest receivable 2,562 2,562 — 2,562 — Interest rate swaps 1,169 1,169 — 1,169 — Financial liabilities: Non-maturity deposits 564,869 564,869 — 564,869 — Time deposits 177,059 176,396 — 176,396 — Short-term borrowings 33,710 33,704 33,704 — — Long-term borrowings 55,000 55,016 — 55,016 — Subordinated debentures 27,846 25,147 — 25,147 — Accrued interest payable 401 401 — 401 — December 31, 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 $ 14,638 $ 14,638 $ 14,638 $ — $ — Time deposits with other banks 100 100 — 100 — Securities available for sale 88,611 88,611 — 88,611 — Securities held to maturity 11,618 11,739 — 11,739 — Federal Home Loan Bank stock 5,106 5,106 — 5,106 — Loans receivable, net of allowance 688,561 672,912 — — 672,912 Accrued interest receivable 2,058 2,058 — 2,058 — Interest rate swaps 1,647 1,647 — 1,647 — Financial liabilities: Non-maturity deposits 479,025 479,025 — 479,025 — Time deposits 181,896 181,346 — 181,346 — Short-term borrowings 29,805 29,805 29,805 — — Long-term borrowings 66,000 66,388 — 66,388 — Subordinated debentures 27,840 24,519 — 24,519 — Accrued interest payable 364 364 — 364 — |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2017 | |
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 and nine months ended September 30, 2017 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 nine months ended September 30, 2017 and 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 September30, 2017 and December 31, 2016: September 30, 2017 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 $ 512 Other Assets March 15, 2026 December 15, 2016 5,000 119 Other Assets December 15, 2026 June 15, 2017 6,000 121 Other Assets June 15, 2027 December 15, 2017 10,000 290 Other Assets December 15, 2027 December 15, 2017 5,000 127 Other Assets December 15, 2027 Total $ 38,500 $ 1,169 December 31, 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 $ 629 Other Assets March 15, 2026 December 15, 2016 5,000 163 Other Assets December 15, 2026 June 15, 2017 6,000 201 Other Assets June 15, 2027 December 15, 2017 10,000 448 Other Assets December 15, 2027 December 15, 2017 5,000 206 Other Assets December 15, 2027 Total $ 38,500 $ 1,647 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 September 30, 2017 and 2016: Three Months Ended September 30, 2017 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 $ (9 ) Not applicable $ — December 15, 2016 (3 ) Not applicable — June 15, 2017 (3 ) Not applicable — December 15, 2017 (15 ) Not applicable — December 15, 2017 (8 ) Not applicable — Total $ (38 ) $ — Three Months Ended September 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 $ 66 Not applicable $ — December 15, 2016 16 Not applicable — June 15, 2017 14 Not applicable — December 15, 2017 12 Not applicable — December 15, 2017 6 Not applicable — Total $ 114 $ — 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 nine months ended September 30, 2017 and 2016: Nine Months Ended September 30, 2017 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 $ (70 ) Not applicable $ — December 15, 2016 (26 ) Not applicable — June 15, 2017 (48 ) Not applicable — December 15, 2017 (95 ) Not applicable — December 15, 2017 (48 ) Not applicable — Total $ (287 ) $ — Nine Months Ended September 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 $ (166 ) Not applicable $ — December 15, 2016 (134 ) Not applicable — June 15, 2017 (168 ) Not applicable — December 15, 2017 (224 ) Not applicable — December 15, 2017 (123 ) Not applicable — Total $ (815 ) $ — The Company has master netting arrangements with its counterparty. All master netting arrangements include rights to offset associated with the Company's recognized derivative assets, derivative liabilities, and cash collateral received and pledged. As required under the master netting arrangement with its derivatives counterparty, the Company received financial collateral from its counterparty totaling $700 thousand at September 30, 2017 that was not included as an offsetting amount. |
Summary Of Significant Accoun20
Summary Of Significant Accounting Policies (Policy) | 9 Months Ended |
Sep. 30, 2017 | |
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, 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 nine month periods ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 . 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, 2016 . |
New Accounting Standards | New Accounting Standards In May 2014, the FASB issued an Accounting Standard Update (“ASU”) 2014-09 to amend its guidance on “Revenue from Contracts with Customers, (Topic 606). The objective of the ASU is to align the recognition of revenue with the transfer of promised goods or services provided to customers in an amount that reflects the consideration which the entity expects to be entitled in exchange for those goods or services. This ASU will replace most existing revenue recognition guidance under U.S. GAAP when it becomes effective. In August 2015, the FASB issued an amendment (ASU 2015-14) which defers the effective date of this new guidance by one year. More detailed implementation guidance on Topic 606 was issued in March 2016 (ASU 2016-08), April 2016 (ASU 2016-10) May 2016 (ASU 2016-12), December 2016 (ASU 2016-20), February 2017 (ASU 2017-05) and September 2017 (ASU 2017-13), and the effective date and transition requirements for these ASUs are the same as the effective date and transition requirements of ASU 2014-09. The amendments in Topic 606 are effective for public business entities for annual periods beginning after December 15, 2017. Approximately 80% of the Company’s revenue is comprised of interest income on financial assets, which are explicitly excluded from the scope of Topic 606. In addition, approximately 65% of the Company’s non-interest income consists of insurance commissions and fees, which are also excluded from the scope of Topic 606. With respect to the remaining elements of our non-interest income, management has identified revenue streams within the scope of the guidance, primarily service fees on deposits and ATM and debit card fees, but has not yet performed an evaluation of the underlying revenue contracts. Since the Company has not yet performed a detailed analysis on contracts that include the potentially impacted accounts, we cannot make a formal assessment on the impact. Preliminarily, we expect to adopt Topic 606, as modified and amended, using the retrospective approach with the cumulative effect adjustment. 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 currently expects that upon adoption of ASU 2016-02, right-of-use assets and lease liabilities will be recognized in the consolidated balance sheet in amounts that will be material; however, there will be no material impact on operations. In March 2016, FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . FASB issued 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. On May 10, 2017, the FASB issued ASU 2017-09, which amends the scope of modification accounting for share-based payment arrangements issued in ASU 2016-09. The ASU provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under ASC 718. Specifically, an entity would not apply modification accounting if the fair value, vesting conditions, and classification of the awards are the same immediately before and after the modification. The Company`s adoption of the ASU did not have a significant impact on the Company`s consolidated financial statements. The effective tax rate decreased 1.6% to 32.0% from 33.6% for the nine months ended September 30, 2017 and 2016, respectively. The adoption of the ASU minimally impacted the Company's annualized tax rate which will be analyzed thru the year ended 2017. 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. The Company has taken steps to prepare for implementation when it becomes effective, such as changes to its current model and evaluating the potential use of outside professionals for an updated model. In August 2016, FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments (a consensus of the FASB Emerging Issues Task Force), which addresses eight classification issues related to the statement of cash flows: (i) debt prepayment or debt extinguishment costs, (ii) settlement of zero-coupon bonds, (iii) contingent consideration payments made after a business combination, (iv) proceeds from the settlement of insurance claims, (v) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, (vi) distributions received from equity method investees, (vii) beneficial interests in securitization transactions, and (viii) separately identifiable cash flows and application of the predominance principle. ASU 2016-15 is effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the ASU in an interim period, 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. Entities should apply this ASU using a retrospective transition method to each period presented. If it is impracticable for an entity to apply the ASU retrospectively for some of the issues, it may apply the amendments for those issues prospectively as of the earliest date practicable. The Company`s adoption of the ASU will not have a significant impact on the Company's consolidated financial statements. In January 2017, FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment (Topic 350). The main objective of this ASU is to simplify the accounting for goodwill impairment by requiring impairment charges be based upon the first step in the current two-step impairment test under Accounting Standards Codification (ASC) 350. Currently, if the fair value of a reporting unit is lower than its carrying amount (Step 1), an entity calculates any impairment charge by comparing the implied fair value of goodwill with its carrying amount (Step 2). This ASU’s objective is to simplify how all entities assess goodwill for impairment by eliminating Step 2 from the goodwill impairment test. As amended, the goodwill impairment test will consist of one step comparing the fair value of a reporting unit with its carrying amount. An entity should recognize a goodwill impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The standard will be applied prospectively and is effective for annual and interim impairment tests performed in periods beginning after December 15, 2019. Early adoption is permitted for annual and interim goodwill impairment testing dates after January 1, 2017. The Company is currently evaluating the impact of the pending adoption on its consolidated financial statements. In March 2017, FASB issued ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities (Subtopic 310-20) . The update shortens the amortization period for premiums on purchased callable debt securities to the earliest call date. The amendment will apply only to callable debt securities with explicit, noncontingent call features that are callable at fixed prices and on preset dates, apply to all premiums on callable debt securities, regardless of how they were generated, and require companies to reset the effective yield using the payment terms of the debt security if the call option is not exercised on the earliest call date. The ASU does not require an accounting change for securities held at a discount. The discount continues to be amortized to maturity and does not apply when the investor has already incorporated prepayments into the calculation of its effective yield under other GAAP. The amendments in the ASU are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those years.Early adoption is permitted, including adoption in an interim period. 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. The Company's adoption of the ASU will not have a significant impact on the Company's consolidated financial statements. |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 September 30, 2017 and December 31, 2016 are summarized as follows: (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value September 30, 2017 U.S. government agencies $ 19,509 $ 72 $ (44 ) $ 19,537 State and political subdivisions 41,936 950 (157 ) 42,729 Mortgage-backed securities - U.S. government-sponsored enterprises 37,016 126 (463 ) 36,679 Corporate Debt 2,000 33 — 2,033 $ 100,461 $ 1,181 $ (664 ) $ 100,978 December 31, 2016 U.S. government agencies $ 13,115 $ 29 $ (57 ) $ 13,087 State and political subdivisions 41,255 203 (770 ) 40,688 Mortgage-backed securities - U.S. government-sponsored enterprises 33,483 126 (755 ) 32,854 Corporate Debt 2,000 — (18 ) 1,982 $ 89,853 $ 358 $ (1,600 ) $ 88,611 |
Amortized Cost and Fair Value of Securities By Contractual Maturity of Available-For-Sale Securities | The amortized cost and fair value of securities available for sale at September 30, 2017 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 — — Due after five years through ten years 5,671 5,738 Due after ten years 38,265 39,024 Total bonds and obligations 43,936 44,762 U.S. government agencies 19,509 19,537 Mortgage-backed securities: U.S. government-sponsored enterprises 37,016 36,679 Total available for sale securities $ 100,461 $ 100,978 |
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 September 30, 2017 and December 31, 2016 . 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 September 30, 2017 U.S. government agencies $ 8,042 $ (44 ) $ — $ — $ 8,042 $ (44 ) State and political subdivisions 7,808 (135 ) 573 (22 ) 8,381 (157 ) Mortgage-backed securities - U.S. government-sponsored enterprises 17,682 (324 ) 8,233 (139 ) 25,915 (463 ) Total temporarily impaired securities $ 33,532 $ (503 ) $ 8,806 $ (161 ) $ 42,338 $ (664 ) December 31, 2016 U.S. government agencies $ 4,952 $ (15 ) $ 2,126 $ (42 ) $ 7,078 $ (57 ) State and political subdivisions 23,989 (770 ) — — 23,989 (770 ) Mortgage-backed securities - U.S. government-sponsored enterprises 23,299 (752 ) 639 (3 ) 23,938 (755 ) Corporate Debt 1,982 (18 ) — — 1,982 (18 ) Total temporarily impaired securities $ 54,222 $ (1,555 ) $ 2,765 $ (45 ) $ 56,987 $ (1,600 ) |
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 September 30, 2017 and December 31, 2016 are summarized as follows: (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value September 30, 2017 State and political subdivisions $ 8,075 $ 163 $ — $ 8,238 December 31, 2016 State and political subdivisions $ 11,618 $ 123 $ (2 ) $ 11,739 |
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 September 30, 2017 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 $ 5,240 $ 5,240 Due after one year through five years 255 257 Due after five years through ten years 1,544 1,615 Due after ten years 1,036 1,126 Total held to maturity securities $ 8,075 $ 8,238 |
Schedule of Unrealized Loss on Securities | At December 31, 2016 , there were two securities with a fair value of $789 thousand that had an unrealized loss of $2 thousand . 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 December 31, 2016 State and political subdivisions $ 789 $ (2 ) $ — $ — $ 789 $ (2 ) Total temporarily impaired securities $ 789 $ (2 ) $ — $ — $ 789 $ (2 ) |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Composition of Net Loans Receivable | The composition of net loans receivable at September 30, 2017 and December 31, 2016 is as follows: (Dollars in thousands) September 30, 2017 December 31, 2016 Commercial and industrial $ 46,493 $ 40,280 Construction 43,834 25,360 Commercial real estate 536,122 479,227 Residential real estate 167,496 150,237 Consumer and other 2,197 1,038 Total loans receivable 796,142 696,142 Unearned net loan origination fees (1,018 ) (885 ) Allowance for loan losses (7,502 ) (6,696 ) Net loans receivable $ 787,622 $ 688,561 |
Allowance For Loan Losses And23
Allowance For Loan Losses And Credit Quality Of Financing Receivables (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 and nine months ended September 30, 2017 and 2016 : (Dollars in thousands) Commercial and Industrial Construction Commercial Real Estate Residential Real Estate Consumer and Other Unallocated Total Three Months Ended: September 30, 2017 Beginning balance $ 201 $ 478 $ 4,243 $ 917 $ 20 $ 1,306 $ 7,165 Charge-offs — — — — (7 ) — (7 ) Recoveries 1 — 1 1 1 — 4 Provision (31 ) (17 ) 1,105 87 30 (834 ) 340 Ending balance $ 171 $ 461 $ 5,349 $ 1,005 $ 44 $ 472 $ 7,502 September 30, 2016 Beginning balance $ 199 $ 208 $ 4,020 $ 914 $ 17 $ 630 $ 5,988 Charge-offs — — (91 ) (25 ) (11 ) — (127 ) Recoveries 5 — 2 1 4 — 12 Provision 5 106 (24 ) (48 ) 8 411 458 Ending balance $ 209 $ 314 $ 3,907 $ 842 $ 18 $ 1,041 $ 6,331 Nine Months Ended: September 30, 2017 Beginning balance $ 110 359 $ 3,932 $ 899 $ 19 $ 1,377 $ 6,696 Charge-offs (13 ) — (266 ) (42 ) (20 ) — (341 ) Recoveries 1 — 5 10 4 — 20 Provision 73 102 1,678 138 41 (905 ) 1,127 Ending balance $ 171 $ 461 $ 5,349 $ 1,005 $ 44 $ 472 $ 7,502 September 30, 2016 Beginning balance $ 85 220 $ 3,646 $ 784 $ 87 $ 768 $ 5,590 Charge-offs (138 ) — (156 ) (59 ) (30 ) — (383 ) Recoveries 21 — 36 7 6 — 70 Provision 241 94 381 110 (45 ) 273 1,054 Ending balance $ 209 $ 314 $ 3,907 $ 842 $ 18 $ 1,041 $ 6,331 |
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 September 30, 2017 and December 31, 2016 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 September 30, 2017 Commercial and industrial $ 171 $ — $ 171 $ 46,493 $ 20 $ 46,473 Construction 461 — 461 43,834 — 43,834 Commercial real estate 5,349 784 4,565 536,122 5,699 530,423 Residential real estate 1,005 1 1,004 167,496 1,823 165,673 Consumer and other loans 44 — 44 2,197 — 2,197 Unallocated 472 — — — — — Total $ 7,502 $ 785 $ 6,245 $ 796,142 $ 7,542 $ 788,600 December 31, 2016 Commercial and industrial $ 110 $ 14 $ 96 $ 40,280 $ 33 $ 40,247 Construction 359 — 359 25,360 — 25,360 Commercial real estate 3,932 135 3,797 479,227 4,597 474,630 Residential real estate 899 6 893 150,237 1,967 148,270 Consumer and other loans 19 — 19 1,038 — 1,038 Unallocated 1,377 — — — — — Total $ 6,696 $ 155 $ 5,164 $ 696,142 $ 6,597 $ 689,545 |
An Age Analysis of Loans Receivable | An age analysis of loans receivable, which were past due as of September 30, 2017 and December 31, 2016 , 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 September 30, 2017 Commercial and industrial $ 137 $ 192 $ 20 $ 349 $ 46,144 $ 46,493 $ — Construction 107 — — 107 43,727 43,834 — Commercial real estate 212 — 5,246 5,458 530,664 536,122 — Residential real estate 966 6 1,338 2,310 165,186 167,496 — Consumer and other 8 — — 8 2,189 2,197 — Total $ 1,430 $ 198 $ 6,604 $ 8,232 $ 787,910 $ 796,142 $ — December 31, 2016 Commercial and industrial $ — $ — $ 137 $ 137 $ 40,143 $ 40,280 $ 104 Construction — — 309 309 25,051 25,360 309 Commercial real estate 84 719 4,103 4,906 474,321 479,227 55 Residential real estate 786 247 1,752 2,785 147,452 150,237 — Consumer and other 4 — — 4 1,034 1,038 — Total $ 874 $ 966 $ 6,301 $ 8,141 $ 688,001 $ 696,142 $ 468 (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 September 30, 2017 and December 31, 2016 were: (Dollars in thousands) September 30, 2017 December 31, 2016 Commercial and industrial $ 20 $ 33 Commercial real estate 5,246 4,048 Residential real estate 1,338 1,752 Total $ 6,604 $ 5,833 |
Credit Risk Profile by Creditworthiness | The following tables illustrate our corporate credit risk profile by creditworthiness category as of September 30, 2017 and December 31, 2016 : (Dollars in thousands) Pass Special Mention Substandard Doubtful Total September 30, 2017 Commercial and industrial $ 46,178 $ 295 $ 20 $ — $ 46,493 Construction 43,727 107 — — 43,834 Commercial real estate 520,867 4,019 11,236 — 536,122 Residential real estate 165,163 231 2,102 — 167,496 Consumer and other 2,197 — — — 2,197 $ 778,132 $ 4,652 $ 13,358 $ — $ 796,142 December 31, 2016 Commercial and industrial $ 40,247 $ — $ 33 $ — $ 40,280 Construction 25,360 — — — 25,360 Commercial real estate 463,889 7,461 7,877 — 479,227 Residential real estate 147,526 584 2,127 — 150,237 Consumer and other 1,038 — — — 1,038 $ 678,060 $ 8,045 $ 10,037 $ — $ 696,142 |
Impaired Loans | The following table reflects information about our impaired loans by class as of September 30, 2017 and December 31, 2016 : September 30, 2017 December 31, 2016 (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 $ 38 $ — $ 19 $ 19 $ — Commercial real estate 3,455 4,014 — 2,324 2,324 — Residential real estate 1,722 1,790 — 1,604 1,629 — With an allowance recorded: Commercial and industrial — — — 14 14 14 Commercial real estate 2,244 2,272 784 2,273 2,364 135 Residential real estate 101 118 1 363 363 6 Total: Commercial and industrial 20 38 — 33 33 14 Commercial real estate 5,699 6,286 784 4,597 4,688 135 Residential real estate 1,823 1,908 1 1,967 1,992 6 $ 7,542 $ 8,232 $ 785 $ 6,597 $ 6,713 $ 155 The following tables presents the average recorded investment and income recognized for our impaired loans for the three and nine months ended September 30, 2017 and 2016 : For the Three Months Ended September 30, 2017 For the Three Months Ended September 30, 2016 (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 3,819 8 2,002 4 Residential real estate 1,880 5 1,316 3 Total impaired loans without a related allowance 5,719 13 3,338 7 With an allowance recorded: Commercial real estate 1,285 — 2,394 8 Residential real estate 51 — 184 — Total impaired loans with an allowance 1,336 — 2,578 8 Total impaired loans $ 7,055 $ 13 $ 5,916 $ 15 For the Nine Months Ended September 30, 2017 For the Nine Months Ended September 30, 2016 (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 2,848 21 2,224 16 Residential real estate 1,639 14 1,188 6 Total impaired loans without a related allowance 4,507 35 3,432 22 With an allowance recorded: Commercial and industrial 3 — — — Commercial real estate 1,832 8 2,546 25 Residential real estate 191 — 281 — Consumer and other — — 69 — Total impaired loans with an allowance 2,026 8 2,896 25 Total impaired loans $ 6,533 $ 43 $ 6,328 $ 47 |
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 September 30, 2017 Performing $ 453 $ 486 $ 939 Non-performing 2,218 247 2,465 Total $ 2,671 $ 733 $ 3,404 December 31, 2016 Performing $ 550 $ 129 $ 679 Non-performing 2,258 — 2,258 Total $ 2,808 $ 129 $ 2,937 The following table summarizes troubled debt restructuring that occurred during the nine months ended September 30, 2017. Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (Dollars in thousands) Residential real estate 3 $ 637 $ 615 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Calculation Methods of Earnings Per Share | Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 (In thousands, except share and per share data) Income (Numerator) Shares (Denominator) Per Share Amount Income (Numerator) Shares (Denominator) Per Share Amount Shares Outstanding (weighted average) 5,953,333 4,646,690 Shares held by Rabbi Trust (92,885 ) — Shares liability under deferred compensation agreement 92,885 — Basic earnings per share: Net earnings applicable to common stockholders $ 1,963 5,953,333 $ 0.33 $ 1,317 4,646,690 $ 0.28 Effect of dilutive securities: Unvested stock awards — 47,372 — 37,618 Diluted earnings per share: Net income applicable to common stockholders and assumed conversions $ 1,963 6,000,705 $ 0.33 $ 1,317 4,684,308 $ 0.28 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 (In thousands, except share and per share data) Income (Numerator) Shares (Denominator) Per Share Amount Income (Numerator) Shares (Denominator) Per Share Amount Shares Outstanding (weighted average) 5,158,842 4,605,399 Shares held by Rabbi Trust (92,885 ) — Shares liability under deferred compensation agreement 92,885 — Basic earnings per share: Net earnings applicable to common stockholders $ 5,178 5,158,842 $ 1.00 $ 4,000 4,605,399 $ 0.87 Effect of dilutive securities: Unvested stock awards — 41,625 — 28,074 Diluted earnings per share: Net income applicable to common stockholders and assumed conversions $ 5,178 5,200,467 $ 1.00 $ 4,000 4,633,473 $ 0.86 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 September 30, 2017 Three Months Ended September 30, 2016 Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax (Dollars in thousands) Other comprehensive income (loss): Unrealized gains on available for sale securities $ (10 ) $ (3 ) $ (7 ) $ (575 ) $ (230 ) $ (345 ) Fair value adjustments on derivatives (63 ) (25 ) (38 ) 190 75 115 Reclassification adjustment for net losses (gains) on securities transactions included in net income 26 10 16 (89 ) (35 ) (54 ) Total other comprehensive income $ (47 ) $ (18 ) $ (29 ) $ (474 ) $ (190 ) $ (284 ) Nine Months Ended September 30, 2017 Six Months Ended June 30, 2016 Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax (Dollars in thousands) Other comprehensive income (loss): Unrealized gains on available for sale securities $ 1,810 $ 724 $ 1,086 $ 1,986 $ 794 $ 1,192 Fair value adjustments on derivatives (478 ) (191 ) (287 ) (1,359 ) (544 ) (815 ) Reclassification adjustment for net gains on securities transactions included in net income (51 ) (20 ) (31 ) (361 ) (144 ) (217 ) Total other comprehensive income $ 1,281 $ 513 $ 768 $ 266 $ 106 $ 160 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 Banking and Financial Services Insurance Services Total Banking and Financial Services Insurance Services Total (Dollars in thousands) Net interest income from external sources $ 7,574 $ — $ 7,574 $ 6,348 $ — $ 6,348 Other income from external sources 756 1,273 2,029 707 1,067 1,774 Depreciation and amortization 255 6 261 283 8 291 Income before income taxes 2,775 194 2,969 1,848 165 2,013 Income tax expense (1) 928 78 1,006 630 66 696 Total assets 950,661 6,141 956,802 803,032 5,955 808,987 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 Banking and Financial Services Insurance Services Total Banking and Financial Services Insurance Services Total (Dollars in thousands) Net interest income from external sources $ 21,218 $ — $ 21,218 $ 17,811 $ — $ 17,811 Other income from external sources 2,141 4,183 6,324 2,274 3,850 6,124 Depreciation and amortization 780 19 799 816 21 837 Income before income taxes 6,424 1,194 7,618 4,918 1,104 6,022 Income tax expense (1) 1,962 478 2,440 1,580 442 2,022 Total assets 950,661 6,141 956,802 803,032 5,955 808,987 (1) Insurance Services calculated at statutory tax rate of 40% . |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 September 30, 2017 is as follows: Number of Shares Weighted Average Exercise Price per Share Weighted Average Contractual Term Aggregate Intrinsic Value Options outstanding, beginning of year 69,123 $ 11.10 Options outstanding, end of quarter 69,123 $ 11.10 7.6 $ 871,027 Options exercisable, end of quarter 22,405 $ 10.69 7.5 $ 291,404 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 Expected dividend yield 1.25 % Expected volatility 22.72 % Risk-free interest rate 1.71 % Expected option life 7.5 years |
Summary of Information Regarding Restricted Stock Activity | The summary of changes in unvested restricted stock awards for the nine months ended September 30, 2017 , is as follows: Number of Shares Weighted Average Grant Date Fair Value Unvested restricted stock, beginning of year 80,743 $ 10.51 Granted 53,170 21.97 Forfeited (4,057 ) 11.43 Vested (44,297 ) 9.05 Unvested restricted stock, end of period 85,559 $ 18.30 |
Fair Value Of Financial Instr28
Fair Value Of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 September 30, 2017 and December 31, 2016 : (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) September 30, 2017 U.S. government agencies $ 19,537 $ — $ 19,537 $ — State and political subdivisions 42,729 — 42,729 — Mortgage-backed securities - U.S. government-sponsored enterprises 36,679 — 36,679 — Corporate debt 2,033 — 2,033 — Derivative instruments Interest rate swaps 1,169 — 1,169 — December 31, 2016 U.S. government agencies $ 13,087 $ — $ 13,087 $ — State and political subdivisions 40,688 — 40,688 — Mortgage-backed securities - U.S. government-sponsored enterprises 32,854 — 32,854 — Corporate debt 1,982 — 1,982 — Derivative instruments Interest rate swaps 1,647 — 1,647 — |
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 September 30, 2017 and December 31, 2016 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) September 30, 2017 Impaired loans $ 2,410 $ — $ — $ 2,410 Foreclosed real estate 568 — — 568 December 31, 2016 Impaired loans $ 1,001 $ — $ — $ 1,001 Foreclosed real estate 1,716 — — 1,716 |
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) September 30, 2017 Impaired loans $ 2,410 Appraisal of Appraisal 0% to (-100.0% ) collateral adjustments (1) (-9.6%) Foreclosed real estate 568 Appraisal of Selling collateral expenses (1) -7.0%(-7.0%) December 31, 2016 Impaired loans $ 1,001 Appraisal of Appraisal 0% to -27.3% collateral adjustments (1) (-2.5%) Foreclosed real estate 1,716 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 September 30, 2017 and December 31, 2016 , were as follows: September 30, 2017 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 $ 10,769 $ 10,769 $ 10,769 $ — $ — Time deposits with other banks 100 100 — 100 — Securities available for sale 100,978 100,978 — 100,978 — Securities held to maturity 8,075 8,238 — 8,238 — Federal Home Loan Bank stock 5,081 5,081 — 5,081 — Loans receivable, net of allowance 787,622 767,986 — — 767,986 Accrued interest receivable 2,562 2,562 — 2,562 — Interest rate swaps 1,169 1,169 — 1,169 — Financial liabilities: Non-maturity deposits 564,869 564,869 — 564,869 — Time deposits 177,059 176,396 — 176,396 — Short-term borrowings 33,710 33,704 33,704 — — Long-term borrowings 55,000 55,016 — 55,016 — Subordinated debentures 27,846 25,147 — 25,147 — Accrued interest payable 401 401 — 401 — December 31, 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 $ 14,638 $ 14,638 $ 14,638 $ — $ — Time deposits with other banks 100 100 — 100 — Securities available for sale 88,611 88,611 — 88,611 — Securities held to maturity 11,618 11,739 — 11,739 — Federal Home Loan Bank stock 5,106 5,106 — 5,106 — Loans receivable, net of allowance 688,561 672,912 — — 672,912 Accrued interest receivable 2,058 2,058 — 2,058 — Interest rate swaps 1,647 1,647 — 1,647 — Financial liabilities: Non-maturity deposits 479,025 479,025 — 479,025 — Time deposits 181,896 181,346 — 181,346 — Short-term borrowings 29,805 29,805 29,805 — — Long-term borrowings 66,000 66,388 — 66,388 — Subordinated debentures 27,840 24,519 — 24,519 — Accrued interest payable 364 364 — 364 — |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 September30, 2017 and December 31, 2016: September 30, 2017 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 $ 512 Other Assets March 15, 2026 December 15, 2016 5,000 119 Other Assets December 15, 2026 June 15, 2017 6,000 121 Other Assets June 15, 2027 December 15, 2017 10,000 290 Other Assets December 15, 2027 December 15, 2017 5,000 127 Other Assets December 15, 2027 Total $ 38,500 $ 1,169 December 31, 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 $ 629 Other Assets March 15, 2026 December 15, 2016 5,000 163 Other Assets December 15, 2026 June 15, 2017 6,000 201 Other Assets June 15, 2027 December 15, 2017 10,000 448 Other Assets December 15, 2027 December 15, 2017 5,000 206 Other Assets December 15, 2027 Total $ 38,500 $ 1,647 |
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 September 30, 2017 and 2016: Three Months Ended September 30, 2017 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 $ (9 ) Not applicable $ — December 15, 2016 (3 ) Not applicable — June 15, 2017 (3 ) Not applicable — December 15, 2017 (15 ) Not applicable — December 15, 2017 (8 ) Not applicable — Total $ (38 ) $ — Three Months Ended September 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 $ 66 Not applicable $ — December 15, 2016 16 Not applicable — June 15, 2017 14 Not applicable — December 15, 2017 12 Not applicable — December 15, 2017 6 Not applicable — Total $ 114 $ — 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 nine months ended September 30, 2017 and 2016: Nine Months Ended September 30, 2017 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 $ (70 ) Not applicable $ — December 15, 2016 (26 ) Not applicable — June 15, 2017 (48 ) Not applicable — December 15, 2017 (95 ) Not applicable — December 15, 2017 (48 ) Not applicable — Total $ (287 ) $ — Nine Months Ended September 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 $ (166 ) Not applicable $ — December 15, 2016 (134 ) Not applicable — June 15, 2017 (168 ) Not applicable — December 15, 2017 (224 ) Not applicable — December 15, 2017 (123 ) Not applicable — Total $ (815 ) $ — |
Summary Of Significant Accoun30
Summary Of Significant Accounting Policies (Details) - bank | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Entity Location [Line Items] | ||
Number of banking offices | 11 | |
Decrease in effective tax rate | 1.60% | |
Effective tax rate | 32.00% | 33.60% |
Sussex County, New Jersey | ||
Entity Location [Line Items] | ||
Number of banking offices | 8 | |
Bergen County, New Jersey | ||
Entity Location [Line Items] | ||
Number of banking offices | 1 | |
Warren County, New Jersey | ||
Entity Location [Line Items] | ||
Number of banking offices | 1 | |
Queens County, New York | ||
Entity Location [Line Items] | ||
Number of banking offices | 1 | |
Interest income on financial assets | ||
Concentration Risk [Line Items] | ||
Revenue percentage | 80.00% | |
Insurance commissions and fees | ||
Concentration Risk [Line Items] | ||
Revenue percentage | 65.00% |
Acquisitions And Stock Offeri31
Acquisitions And Stock Offering (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 21, 2017 | Jun. 16, 2017 | Apr. 11, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||||
Assets | $ 956,802 | $ 808,987 | $ 848,728 | |||
Total loans receivable | 796,142 | 696,142 | ||||
Deposits | 741,928 | $ 660,921 | ||||
Net proceeds from issuance of common stock | $ 0 | |||||
Common Stock | ||||||
Business Acquisition [Line Items] | ||||||
Net proceeds from issuance of common stock | $ 28,200 | |||||
Unbilled offering expense | 100 | |||||
Underwritten public offering | Common Stock | ||||||
Business Acquisition [Line Items] | ||||||
Shares issued in offering (in shares) | 1,136,363 | |||||
Shares issued in offering (usd per share) | $ 24 | |||||
Over-allotment option | Common Stock | ||||||
Business Acquisition [Line Items] | ||||||
Shares issued in offering (in shares) | 113,636 | |||||
Community Bank of Bergen County merger | ||||||
Business Acquisition [Line Items] | ||||||
Entity shares issued per acquiree share (in shares) | 0.97 | |||||
Merger expenses | 482 | |||||
Pro Forma | Community Bank of Bergen County merger | ||||||
Business Acquisition [Line Items] | ||||||
Assets | 1,200,000 | |||||
Total loans receivable | 925,000 | |||||
Deposits | $ 965,000 |
Securities - Amortized Cost And
Securities - Amortized Cost And Approximate Fair Value Of Securities Available For Sale (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 100,461 | $ 89,853 |
Gross Unrealized Gains | 1,181 | 358 |
Gross Unrealized Losses | (664) | (1,600) |
Fair Value | 100,978 | 88,611 |
U.S. government agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 19,509 | 13,115 |
Gross Unrealized Gains | 72 | 29 |
Gross Unrealized Losses | (44) | (57) |
Fair Value | 19,537 | 13,087 |
State and political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 41,936 | 41,255 |
Gross Unrealized Gains | 950 | 203 |
Gross Unrealized Losses | (157) | (770) |
Fair Value | 42,729 | 40,688 |
U.S. government-sponsored enterprises | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 37,016 | 33,483 |
Gross Unrealized Gains | 126 | 126 |
Gross Unrealized Losses | (463) | (755) |
Fair Value | 36,679 | 32,854 |
Corporate debt | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,000 | 2,000 |
Gross Unrealized Gains | 33 | 0 |
Gross Unrealized Losses | 0 | (18) |
Fair Value | $ 2,033 | $ 1,982 |
Securities - Additional Informa
Securities - Additional Information (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017USD ($)security | Sep. 30, 2016USD ($)security | Sep. 30, 2017USD ($)security | Sep. 30, 2016USD ($)security | Dec. 31, 2016USD ($)security | |
Schedule Of Available-For-Sale And Held-To-Maturity [Line Items] | |||||
Available for sale securities carrying value pledged to secure public deposits | $ 22,800,000 | $ 22,800,000 | $ 34,300,000 | ||
Gross gains on sales of securities available for sale | 129,000 | $ 89,000 | 294,000 | $ 353,000 | |
Gross losses on sales of securities available for sale (less than in 2016) | 155,000 | $ 1,000 | $ 243 | $ 1,000 | |
Maturity date (typically greater than) | 5 years | ||||
Fair value of available-for-sale securities | 42,338,000 | $ 42,338,000 | 56,987,000 | ||
Unrealized loss of available-for-sale securities | $ 664,000 | $ 664,000 | 1,600,000 | ||
Number of held-to-maturity securities sold | security | 1 | 1 | |||
Gross realized gain on sale of security | $ 8,000 | $ 8,000 | |||
Fair value of held-to-maturity securities | 789,000 | ||||
Unrealized loss of held-to-maturity securities | $ 2,000 | ||||
U.S. government agencies | |||||
Schedule Of Available-For-Sale And Held-To-Maturity [Line Items] | |||||
Number of securities with unrealized losses, available-for-sale | security | 5 | 5 | 5 | ||
Fair value of available-for-sale securities | $ 8,042,000 | $ 8,042,000 | $ 7,078,000 | ||
Unrealized loss of available-for-sale securities | $ 44,000 | $ 44,000 | $ 57,000 | ||
State and political subdivisions | |||||
Schedule Of Available-For-Sale And Held-To-Maturity [Line Items] | |||||
Number of securities with unrealized losses, available-for-sale | security | 8 | 8 | 31 | ||
Fair value of available-for-sale securities | $ 8,381,000 | $ 8,381,000 | $ 23,989,000 | ||
Unrealized loss of available-for-sale securities | $ 157,000 | $ 157,000 | $ 770,000 | ||
Number of securities with unrealized losses from state and political subdivisions maturity minimum number of years | 10 years | ||||
Number of securities with unrealized losses, held-to-maturity | security | 2 | ||||
Fair value of held-to-maturity securities | $ 789,000 | ||||
Unrealized loss of held-to-maturity securities | $ 2,000 | ||||
U.S. government-sponsored enterprises | |||||
Schedule Of Available-For-Sale And Held-To-Maturity [Line Items] | |||||
Number of securities with unrealized losses, available-for-sale | security | 18 | 18 | 16 | ||
Fair value of available-for-sale securities | $ 25,915,000 | $ 25,915,000 | $ 23,938,000 | ||
Unrealized loss of available-for-sale securities | $ 463,000 | $ 463,000 | $ 755,000 | ||
Corporate debt | |||||
Schedule Of Available-For-Sale And Held-To-Maturity [Line Items] | |||||
Number of securities with unrealized losses, available-for-sale | security | 0 | 0 | 1 | ||
Fair value of available-for-sale securities | $ 1,982,000 | ||||
Unrealized loss of available-for-sale securities | $ 18,000 |
Securities - Amortized Cost A34
Securities - Amortized Cost And Fair Value Of Securities By Contractual Maturity Of Available-For-Sale Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Amortized Cost | ||
Due in one year or less | $ 0 | |
Due after one year through five years | 0 | |
Due after five years through ten years | 5,671 | |
Due after ten years | 38,265 | |
Total bonds and obligations | 43,936 | |
Securities available for sale | 100,461 | $ 89,853 |
Fair Value | ||
Due in one year or less | 0 | |
Due after one year through five years | 0 | |
Due after five years through ten years | 5,738 | |
Due after ten years | 39,024 | |
Total bonds and obligations | 44,762 | |
Securities available for sale, at fair value | 100,978 | 88,611 |
U.S. government agencies | ||
Amortized Cost | ||
Securities available for sale | 19,509 | 13,115 |
Fair Value | ||
Securities available for sale, at fair value | 19,537 | 13,087 |
U.S. government-sponsored enterprises | ||
Amortized Cost | ||
Securities available for sale | 37,016 | 33,483 |
Fair Value | ||
Securities available for sale, at fair value | $ 36,679 | $ 32,854 |
Securities - Temporarily Impair
Securities - Temporarily Impaired Gross Unrealized Losses And Fair Value Of Available-For-Sale Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than 12 Months, Fair Value | $ 33,532 | $ 54,222 |
Less Than 12 Months, Gross Unrealized Losses | (503) | (1,555) |
12 Months or More, Fair Value | 8,806 | 2,765 |
12 Months or More, Gross Unrealized Losses | (161) | (45) |
Total, Fair Value | 42,338 | 56,987 |
Total, Gross Unrealized Losses | (664) | (1,600) |
U.S. government agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than 12 Months, Fair Value | 8,042 | 4,952 |
Less Than 12 Months, Gross Unrealized Losses | (44) | (15) |
12 Months or More, Fair Value | 0 | 2,126 |
12 Months or More, Gross Unrealized Losses | 0 | (42) |
Total, Fair Value | 8,042 | 7,078 |
Total, Gross Unrealized Losses | (44) | (57) |
State and political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than 12 Months, Fair Value | 7,808 | 23,989 |
Less Than 12 Months, Gross Unrealized Losses | (135) | (770) |
12 Months or More, Fair Value | 573 | 0 |
12 Months or More, Gross Unrealized Losses | (22) | 0 |
Total, Fair Value | 8,381 | 23,989 |
Total, Gross Unrealized Losses | (157) | (770) |
U.S. government-sponsored enterprises | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than 12 Months, Fair Value | 17,682 | 23,299 |
Less Than 12 Months, Gross Unrealized Losses | (324) | (752) |
12 Months or More, Fair Value | 8,233 | 639 |
12 Months or More, Gross Unrealized Losses | (139) | (3) |
Total, Fair Value | 25,915 | 23,938 |
Total, Gross Unrealized Losses | $ (463) | (755) |
Corporate debt | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than 12 Months, Fair Value | 1,982 | |
Less Than 12 Months, Gross Unrealized Losses | (18) | |
12 Months or More, Fair Value | 0 | |
12 Months or More, Gross Unrealized Losses | 0 | |
Total, Fair Value | 1,982 | |
Total, Gross Unrealized Losses | $ (18) |
Securities - Amortized Cost A36
Securities - Amortized Cost And Approximate Fair Value Of Securities Held-To-Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Investments [Abstract] | ||
Total securities held to maturity, amortized cost | $ 8,075 | $ 11,618 |
Gross Unrealized Gains | 163 | 123 |
Gross Unrealized Losses | 0 | (2) |
Securities held to maturity, fair value | $ 8,238 | $ 11,739 |
Securities - Amortized Cost A37
Securities - Amortized Cost And Fair Value Of Securities By Contractual Maturity Of Held-To-Maturity Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Investments [Abstract] | ||
Due in one year or less, Amortized Cost | $ 5,240 | |
Due after one year through five years, Amortized Cost | 255 | |
Due after five years through ten years, Amortized Cost | 1,544 | |
Due after ten years, Amortized Cost | 1,036 | |
Total securities held to maturity, amortized cost | 8,075 | $ 11,618 |
Due in one year or less, Fair Value | 5,240 | |
Due after one year through five years, Fair Value | 257 | |
Due after five years through ten years, Fair Value | 1,615 | |
Due after ten years, Fair Value | 1,126 | |
Total held to maturity securities, Fair Value | $ 8,238 | $ 11,739 |
Securities - Temporarily Impa38
Securities - Temporarily Impaired Gross Unrealized Losses And Fair Value Of Held-To-Maturity Securities (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Fair Value | |
Less Than 12 Months | $ 789 |
12 Months or More | 0 |
Total | 789 |
Gross Unrealized Losses | |
Less Than 12 Months | (2) |
12 Months or More | 0 |
Total | (2) |
State and political subdivisions | |
Fair Value | |
Less Than 12 Months | 789 |
12 Months or More | 0 |
Total | 789 |
Gross Unrealized Losses | |
Less Than 12 Months | (2) |
12 Months or More | 0 |
Total | $ (2) |
Loans (Details)
Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | $ 796,142 | $ 696,142 |
Unearned net loan origination fees | (1,018) | (885) |
Allowance for loan losses | (7,502) | (6,696) |
Net loans receivable | 787,622 | 688,561 |
Mortgage loans serviced for the benefit of others | 242 | 249 |
Commercial and Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 46,493 | 40,280 |
Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 43,834 | 25,360 |
Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 536,122 | 479,227 |
Residential Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 167,496 | 150,237 |
Consumer and Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | $ 2,197 | $ 1,038 |
Allowance For Loan Losses And40
Allowance For Loan Losses And Credit Quality Of Financing Receivables - Changes In The Allowance For Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | $ 7,165 | $ 5,988 | $ 6,696 | $ 5,590 |
Charge-offs | (7) | (127) | (341) | (383) |
Recoveries | 4 | 12 | 20 | 70 |
Provision | 340 | 458 | 1,127 | 1,054 |
Ending balance | 7,502 | 6,331 | 7,502 | 6,331 |
Commercial and Industrial | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 201 | 199 | 110 | 85 |
Charge-offs | 0 | 0 | (13) | (138) |
Recoveries | 1 | 5 | 1 | 21 |
Provision | (31) | 5 | 73 | 241 |
Ending balance | 171 | 209 | 171 | 209 |
Construction | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 478 | 208 | 359 | 220 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision | (17) | 106 | 102 | 94 |
Ending balance | 461 | 314 | 461 | 314 |
Commercial Real Estate | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 4,243 | 4,020 | 3,932 | 3,646 |
Charge-offs | 0 | (91) | (266) | (156) |
Recoveries | 1 | 2 | 5 | 36 |
Provision | 1,105 | (24) | 1,678 | 381 |
Ending balance | 5,349 | 3,907 | 5,349 | 3,907 |
Residential Real Estate | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 917 | 914 | 899 | 784 |
Charge-offs | 0 | (25) | (42) | (59) |
Recoveries | 1 | 1 | 10 | 7 |
Provision | 87 | (48) | 138 | 110 |
Ending balance | 1,005 | 842 | 1,005 | 842 |
Consumer and Other | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 20 | 17 | 19 | 87 |
Charge-offs | (7) | (11) | (20) | (30) |
Recoveries | 1 | 4 | 4 | 6 |
Provision | 30 | 8 | 41 | (45) |
Ending balance | 44 | 18 | 44 | 18 |
Unallocated | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 1,306 | 630 | 1,377 | 768 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision | (834) | 411 | (905) | 273 |
Ending balance | $ 472 | $ 1,041 | $ 472 | $ 1,041 |
Allowance For Loan Losses And41
Allowance For Loan Losses And Credit Quality Of Financing Receivables - Allowances Of Loan Losses And Loans Receivable By Class Disaggregated (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Balance | $ 7,502 | $ 7,165 | $ 6,696 | $ 6,331 | $ 5,988 | $ 5,590 |
Balance Loans Individually Evaluated for Impairment | 785 | 155 | ||||
Balance Related to Loans Collectively Evaluated for Impairment | 6,245 | 5,164 | ||||
Total Financing Receivables | 796,142 | 696,142 | ||||
Individually Evaluated for Impairment | 7,542 | 6,597 | ||||
Collectively Evaluated for Impairment | 788,600 | 689,545 | ||||
Commercial and Industrial | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Balance | 171 | 201 | 110 | 209 | 199 | 85 |
Balance Loans Individually Evaluated for Impairment | 0 | 14 | ||||
Balance Related to Loans Collectively Evaluated for Impairment | 171 | 96 | ||||
Total Financing Receivables | 46,493 | 40,280 | ||||
Individually Evaluated for Impairment | 20 | 33 | ||||
Collectively Evaluated for Impairment | 46,473 | 40,247 | ||||
Construction | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Balance | 461 | 478 | 359 | 314 | 208 | 220 |
Balance Loans Individually Evaluated for Impairment | 0 | 0 | ||||
Balance Related to Loans Collectively Evaluated for Impairment | 461 | 359 | ||||
Total Financing Receivables | 43,834 | 25,360 | ||||
Individually Evaluated for Impairment | 0 | 0 | ||||
Collectively Evaluated for Impairment | 43,834 | 25,360 | ||||
Commercial Real Estate | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Balance | 5,349 | 4,243 | 3,932 | 3,907 | 4,020 | 3,646 |
Balance Loans Individually Evaluated for Impairment | 784 | 135 | ||||
Balance Related to Loans Collectively Evaluated for Impairment | 4,565 | 3,797 | ||||
Total Financing Receivables | 536,122 | 479,227 | ||||
Individually Evaluated for Impairment | 5,699 | 4,597 | ||||
Collectively Evaluated for Impairment | 530,423 | 474,630 | ||||
Residential Real Estate | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Balance | 1,005 | 917 | 899 | 842 | 914 | 784 |
Balance Loans Individually Evaluated for Impairment | 1 | 6 | ||||
Balance Related to Loans Collectively Evaluated for Impairment | 1,004 | 893 | ||||
Total Financing Receivables | 167,496 | 150,237 | ||||
Individually Evaluated for Impairment | 1,823 | 1,967 | ||||
Collectively Evaluated for Impairment | 165,673 | 148,270 | ||||
Consumer and Other | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Balance | 44 | 20 | 19 | 18 | 17 | 87 |
Balance Loans Individually Evaluated for Impairment | 0 | 0 | ||||
Balance Related to Loans Collectively Evaluated for Impairment | 44 | 19 | ||||
Total Financing Receivables | 2,197 | 1,038 | ||||
Individually Evaluated for Impairment | 0 | 0 | ||||
Collectively Evaluated for Impairment | 2,197 | 1,038 | ||||
Unallocated | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Balance | 472 | $ 1,306 | 1,377 | $ 1,041 | $ 630 | $ 768 |
Total Financing Receivables | $ 0 | $ 0 |
Allowance For Loan Losses And42
Allowance For Loan Losses And Credit Quality Of Financing Receivables - Age Analysis Of Loans Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 8,232 | $ 8,141 |
Current | 787,910 | 688,001 |
Total Financing Receivables | 796,142 | 696,142 |
Recorded Investment 90 Days and Accruing | 0 | 468 |
30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,430 | 874 |
60-89 days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 198 | 966 |
Greater Than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 6,604 | 6,301 |
Commercial and Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 349 | 137 |
Current | 46,144 | 40,143 |
Total Financing Receivables | 46,493 | 40,280 |
Recorded Investment 90 Days and Accruing | 0 | 104 |
Commercial and Industrial | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 137 | 0 |
Commercial and Industrial | 60-89 days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 192 | 0 |
Commercial and Industrial | Greater Than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 20 | 137 |
Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 107 | 309 |
Current | 43,727 | 25,051 |
Total Financing Receivables | 43,834 | 25,360 |
Recorded Investment 90 Days and Accruing | 0 | 309 |
Construction | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 107 | 0 |
Construction | 60-89 days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Construction | Greater Than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 309 |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 5,458 | 4,906 |
Current | 530,664 | 474,321 |
Total Financing Receivables | 536,122 | 479,227 |
Recorded Investment 90 Days and Accruing | 0 | 55 |
Commercial Real Estate | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 212 | 84 |
Commercial Real Estate | 60-89 days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 719 |
Commercial Real Estate | Greater Than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 5,246 | 4,103 |
Residential Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,310 | 2,785 |
Current | 165,186 | 147,452 |
Total Financing Receivables | 167,496 | 150,237 |
Recorded Investment 90 Days and Accruing | 0 | 0 |
Residential Real Estate | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 966 | 786 |
Residential Real Estate | 60-89 days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 6 | 247 |
Residential Real Estate | Greater Than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,338 | 1,752 |
Consumer and Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 8 | 4 |
Current | 2,189 | 1,034 |
Total Financing Receivables | 2,197 | 1,038 |
Recorded Investment 90 Days and Accruing | 0 | 0 |
Consumer and Other | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 8 | 4 |
Consumer and Other | 60-89 days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Consumer and Other | Greater Than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 0 | $ 0 |
Allowance For Loan Losses And43
Allowance For Loan Losses And Credit Quality Of Financing Receivables - Loans Which The Accrual Of Interest Has Been Discontinued (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans for which accrual of interest has been discounted | $ 6,604 | $ 5,833 |
Commercial and Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans for which accrual of interest has been discounted | 20 | 33 |
Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans for which accrual of interest has been discounted | 5,246 | 4,048 |
Residential Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans for which accrual of interest has been discounted | $ 1,338 | $ 1,752 |
Allowance For Loan Losses And44
Allowance For Loan Losses And Credit Quality Of Financing Receivables - Credit Risk Profile By Creditworthiness (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | $ 796,142 | $ 696,142 |
Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 46,493 | 40,280 |
Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 43,834 | 25,360 |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 536,122 | 479,227 |
Residential Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 167,496 | 150,237 |
Consumer and Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 2,197 | 1,038 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 778,132 | 678,060 |
Pass | Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 46,178 | 40,247 |
Pass | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 43,727 | 25,360 |
Pass | Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 520,867 | 463,889 |
Pass | Residential Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 165,163 | 147,526 |
Pass | Consumer and Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 2,197 | 1,038 |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 4,652 | 8,045 |
Special Mention | Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 295 | 0 |
Special Mention | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 107 | 0 |
Special Mention | Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 4,019 | 7,461 |
Special Mention | Residential Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 231 | 584 |
Special Mention | Consumer and Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 0 | 0 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 13,358 | 10,037 |
Substandard | Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 20 | 33 |
Substandard | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 0 | 0 |
Substandard | Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 11,236 | 7,877 |
Substandard | Residential Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 2,102 | 2,127 |
Substandard | Consumer and Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 0 | 0 |
Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 0 | 0 |
Doubtful | Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 0 | 0 |
Doubtful | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 0 | 0 |
Doubtful | Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 0 | 0 |
Doubtful | Residential Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 0 | 0 |
Doubtful | Consumer and Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | $ 0 | $ 0 |
Allowance For Loan Losses And45
Allowance For Loan Losses And Credit Quality Of Financing Receivables - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Recorded Investment | |||||
Total | $ 7,542 | $ 7,542 | $ 6,597 | ||
Unpaid Principal Balance | |||||
Total | 8,232 | 8,232 | 6,713 | ||
Related Allowance | 785 | 785 | 155 | ||
Average Recorded Investment | |||||
With no related allowance recorded | 5,719 | $ 3,338 | 4,507 | $ 3,432 | |
With an allowance recorded | 1,336 | 2,578 | 2,026 | 2,896 | |
Total | 7,055 | 5,916 | 6,533 | 6,328 | |
Interest Income Recognized | |||||
With no related allowance recorded | 13 | 7 | 35 | 22 | |
With an allowance recorded | 0 | 8 | 8 | 25 | |
Total | 13 | 15 | 43 | 47 | |
Commercial and Industrial | |||||
Recorded Investment | |||||
With no related allowance recorded | 20 | 20 | 19 | ||
With an allowance recorded | 0 | 0 | 14 | ||
Total | 20 | 20 | 33 | ||
Unpaid Principal Balance | |||||
With no related allowance recorded | 38 | 38 | 19 | ||
With an allowance recorded | 0 | 0 | 14 | ||
Total | 38 | 38 | 33 | ||
Related Allowance | 0 | 0 | 14 | ||
Average Recorded Investment | |||||
With no related allowance recorded | 20 | 20 | 20 | 20 | |
With an allowance recorded | 3 | 0 | |||
Interest Income Recognized | |||||
With no related allowance recorded | 0 | 0 | 0 | 0 | |
With an allowance recorded | 0 | 0 | |||
Commercial Real Estate | |||||
Recorded Investment | |||||
With no related allowance recorded | 3,455 | 3,455 | 2,324 | ||
With an allowance recorded | 2,244 | 2,244 | 2,273 | ||
Total | 5,699 | 5,699 | 4,597 | ||
Unpaid Principal Balance | |||||
With no related allowance recorded | 4,014 | 4,014 | 2,324 | ||
With an allowance recorded | 2,272 | 2,272 | 2,364 | ||
Total | 6,286 | 6,286 | 4,688 | ||
Related Allowance | 784 | 784 | 135 | ||
Average Recorded Investment | |||||
With no related allowance recorded | 3,819 | 2,002 | 2,848 | 2,224 | |
With an allowance recorded | 1,285 | 2,394 | 1,832 | 2,546 | |
Interest Income Recognized | |||||
With no related allowance recorded | 8 | 4 | 21 | 16 | |
With an allowance recorded | 0 | 8 | 8 | 25 | |
Residential Real Estate | |||||
Recorded Investment | |||||
With no related allowance recorded | 1,722 | 1,722 | 1,604 | ||
With an allowance recorded | 101 | 101 | 363 | ||
Total | 1,823 | 1,823 | 1,967 | ||
Unpaid Principal Balance | |||||
With no related allowance recorded | 1,790 | 1,790 | 1,629 | ||
With an allowance recorded | 118 | 118 | 363 | ||
Total | 1,908 | 1,908 | 1,992 | ||
Related Allowance | 1 | 1 | $ 6 | ||
Average Recorded Investment | |||||
With no related allowance recorded | 1,880 | 1,316 | 1,639 | 1,188 | |
With an allowance recorded | 51 | 184 | 191 | 281 | |
Interest Income Recognized | |||||
With no related allowance recorded | 5 | 3 | 14 | 6 | |
With an allowance recorded | $ 0 | $ 0 | 0 | 0 | |
Consumer and Other | |||||
Average Recorded Investment | |||||
With an allowance recorded | 0 | 69 | |||
Interest Income Recognized | |||||
With an allowance recorded | $ 0 | $ 0 |
Allowance For Loan Losses And46
Allowance For Loan Losses And Credit Quality Of Financing Receivables - Troubled Debt Restructured On Recorded Investment (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017USD ($) | Sep. 30, 2016loan | Sep. 30, 2017USD ($)loan | Sep. 30, 2016loan | Dec. 31, 2016USD ($) | |
Financing Receivable, Modifications [Line Items] | |||||
Total investment in troubled debt | $ 3,404 | $ 3,404 | $ 2,937 | ||
Number of Loans | loan | 0 | 3 | 0 | ||
Pre-Modification Outstanding Recorded Investment | $ 637 | ||||
Post-Modification Outstanding Recorded Investment | 615 | 615 | |||
Commercial Real Estate | |||||
Financing Receivable, Modifications [Line Items] | |||||
Total investment in troubled debt | 2,671 | 2,671 | 2,808 | ||
Residential Real Estate | |||||
Financing Receivable, Modifications [Line Items] | |||||
Total investment in troubled debt | 733 | 733 | 129 | ||
Performing | |||||
Financing Receivable, Modifications [Line Items] | |||||
Total investment in troubled debt | 939 | 939 | 679 | ||
Performing | Commercial Real Estate | |||||
Financing Receivable, Modifications [Line Items] | |||||
Total investment in troubled debt | 453 | 453 | 550 | ||
Performing | Residential Real Estate | |||||
Financing Receivable, Modifications [Line Items] | |||||
Total investment in troubled debt | 486 | 486 | 129 | ||
Non-performing | |||||
Financing Receivable, Modifications [Line Items] | |||||
Total investment in troubled debt | 2,465 | 2,465 | 2,258 | ||
Non-performing | Commercial Real Estate | |||||
Financing Receivable, Modifications [Line Items] | |||||
Total investment in troubled debt | 2,218 | 2,218 | 2,258 | ||
Non-performing | Residential Real Estate | |||||
Financing Receivable, Modifications [Line Items] | |||||
Total investment in troubled debt | $ 247 | $ 247 | $ 0 |
Allowance For Loan Losses And47
Allowance For Loan Losses And Credit Quality Of Financing Receivables - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016loan | Sep. 30, 2017USD ($)propertyloan | Sep. 30, 2016loan | Dec. 31, 2016USD ($) | |
Receivables [Abstract] | ||||
Number of loans modified by troubled debt restructuring | loan | 0 | 3 | 0 | |
Pre-modification outstanding recorded investment | $ 637 | |||
Number of loans with subsequent default | loan | 0 | 0 | ||
Financing Receivable, Modifications [Line Items] | ||||
Foreclosed real estate | $ 2,275 | $ 2,367 | ||
Carrying value of collateralized consumer loans | $ 796,142 | 696,142 | ||
Residential Real Estate | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of foreclosed properties | property | 1 | |||
Foreclosed real estate | $ 179 | |||
Consumer and Other | ||||
Financing Receivable, Modifications [Line Items] | ||||
Carrying value of collateralized consumer loans | $ 469 | $ 666 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Shares outstanding (weighted average) (in shares) | 5,953,333 | 4,646,690 | 5,158,842 | 4,605,399 |
Shares held by Rabbi Trust (in shares) | (92,885) | 0 | (92,885) | 0 |
Share liability under deferred compensation agreement (in shares) | 92,885 | 0 | 92,885 | 0 |
Net earnings applicable to common stockholders | $ 1,963 | $ 1,317 | $ 5,178 | $ 4,000 |
Net income applicable to common stockholders and assumed conversions | $ 1,963 | $ 1,317 | $ 5,178 | $ 4,000 |
Basic earnings per share (in shares) | 5,953,333 | 4,646,690 | 5,158,842 | 4,605,399 |
Unvested stock awards (in shares) | 47,372 | 37,618 | 41,625 | 28,074 |
Diluted earnings per share (in shares) | 6,000,705 | 4,684,308 | 5,200,467 | 4,633,473 |
Basic earnings per share (usd per share) | $ 0.33 | $ 0.28 | $ 1 | $ 0.87 |
Diluted earnings per share (usd per share) | $ 0.33 | $ 0.28 | $ 1 | $ 0.86 |
Shares of common stock outstanding not included in the computation of diluted EPS (in shares) | 0 | 29,813 | 13,972 | 45,845 |
Other Comprehensive Income (Det
Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Before Tax | ||||
Unrealized gains on available for sale securities | $ (10) | $ (575) | $ 1,810 | $ 1,986 |
Fair value adjustments on derivatives | (63) | 190 | (478) | (1,359) |
Reclassification adjustment for net losses (gains) on securities transactions included in net income | 26 | (89) | (51) | (361) |
Total other comprehensive income | (47) | (474) | 1,281 | 266 |
Tax Effect | ||||
Unrealized gains on available for sale securities | (3) | (230) | 724 | 794 |
Fair value adjustments on derivatives | (25) | 75 | (191) | (544) |
Reclassification adjustment for net losses (gains) on securities transactions included in net income | 10 | (35) | (20) | (144) |
Total other comprehensive income | (18) | (190) | 513 | 106 |
Net of Tax | ||||
Unrealized gains on available for sale securities | (7) | (345) | 1,086 | 1,192 |
Fair value adjustments on derivatives | (38) | 115 | (287) | (815) |
Reclassification adjustment for net losses (gains) on securities transactions included in net income | 16 | (54) | (31) | (217) |
Other comprehensive (loss) income, net of income taxes | $ (29) | $ (284) | $ 768 | $ 160 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||
Net interest income from external sources | $ 7,574 | $ 6,348 | $ 21,218 | $ 17,811 | |
Other income from external sources | 2,029 | 1,774 | 6,324 | 6,124 | |
Depreciation and amortization | 261 | 291 | 799 | 837 | |
Income before income taxes | 2,969 | 2,013 | 7,618 | 6,022 | |
Income tax expense | 1,006 | 696 | 2,440 | 2,022 | |
Total assets | 956,802 | 808,987 | 956,802 | 808,987 | $ 848,728 |
Banking and Financial Services | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income from external sources | 7,574 | 6,348 | 21,218 | 17,811 | |
Other income from external sources | 756 | 707 | 2,141 | 2,274 | |
Depreciation and amortization | 255 | 283 | 780 | 816 | |
Income before income taxes | 2,775 | 1,848 | 6,424 | 4,918 | |
Income tax expense | 928 | 630 | 1,962 | 1,580 | |
Total assets | 950,661 | 803,032 | 950,661 | 803,032 | |
Insurance Services | |||||
Segment Reporting Information [Line Items] | |||||
Other income from external sources | 1,273 | 1,067 | 4,183 | 3,850 | |
Depreciation and amortization | 6 | 8 | 19 | 21 | |
Income before income taxes | 194 | 165 | 1,194 | 1,104 | |
Income tax expense | 78 | 66 | 478 | 442 | |
Total assets | $ 6,141 | $ 5,955 | $ 6,141 | $ 5,955 | |
Statutory tax rate | 40.00% | 40.00% | 40.00% | 40.00% |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock option grants, maximum term, in years | 7 years 6 months | |||
Options granted (in shares) | 0 | |||
Weighted average grant date fair value of options granted per share (usd per share) | $ 3.37 | |||
Stock options expected future expense | $ 166 | $ 166 | ||
Restricted stock awards expense | 168 | $ 82 | 491 | $ 268 |
Unrecognized compensation expense for non-vested restricted stock | 1,600 | 1,600 | ||
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 12 | $ 10 | $ 37 | $ 34 |
Unrecognized compensation expense, period for recognition | 2 years 7 months 6 days | |||
Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense, period for recognition | 2 years 6 months | |||
Maximum | Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock option grants, maximum term, in years | 10 years | |||
Vesting period, years | 5 years | |||
Maximum | Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period, years | 5 years | |||
Minimum | Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period, years | 1 year | |||
Minimum | Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period, years | 3 years |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary Of Information Regarding Stock Option Plans (Details) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($)$ / sharesshares | |
Number of Shares | |
Beginning of year (in shares) | shares | 69,123 |
End of quarter (in shares) | shares | 69,123 |
Exercisable, end of quarter (in shares) | shares | 22,405 |
Weighted Average Exercise Price per Share | |
Beginning of year (usd per share) | $ 11.10 |
End of quarter (usd per share) | 11.10 |
Exercisable, end of quarter (usd per share) | $ 10.69 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Weighted Average Contractual Term, Outstanding, end of quarter | 7 years 7 months 6 days |
Weighted Average Contractual Term, Exercisable, end of quarter | 7 years 6 months |
Aggregate Intrinsic Value, Outstanding, end of quarter | $ | $ 871,027 |
Aggregate Intrinsic Value, Exercisable, end of quarter | $ | $ 291,404 |
Minimum | |
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 | |
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 - Su53
Stock-Based Compensation - Summary Of Stock Option Assumptions (Details) | 9 Months Ended |
Sep. 30, 2016 | |
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |
Expected dividend yield | 1.25% |
Expected volatility | 22.72% |
Risk-free interest rate | 1.71% |
Expected option life | 7 years 6 months |
Stock-Based Compensation - Su54
Stock-Based Compensation - Summary Of Information Regarding Restricted Stock Activity (Details) | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Number of Shares | |
Unvested restricted stock, beginning of year (in shares) | shares | 80,743 |
Granted (in shares) | shares | 53,170 |
Forfeited (in shares) | shares | (4,057) |
Vested (in shares) | shares | (44,297) |
Unvested restricted stock, end of period (in shares) | shares | 85,559 |
Weighted Average Grant Date Fair Value | |
Unvested restricted stock, beginning of year (usd per share) | $ / shares | $ 10.51 |
Granted (usd per share) | $ / shares | 21.97 |
Forfeited (usd per share) | $ / shares | 11.43 |
Vested (usd per share) | $ / shares | 9.05 |
Unvested restricted stock, end of period (usd per share) | $ / shares | $ 18.30 |
Guarantees (Details)
Guarantees (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Guarantees [Abstract] | |
Letter of credit, expiration term | 1 year |
Undrawn standby letters of credit outstanding | $ 251 |
Fair Value Of Financial Instr56
Fair Value Of Financial Instruments - Summary Of Financial Assets Measured On A Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | $ 100,978 | $ 88,611 |
Interest rate swaps | 1,169 | 1,647 |
Quoted Prices in Active Markets for Identical Assets (Level I) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Interest rate swaps | 0 | 0 |
Significant Other Observable Inputs (Level II) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 100,978 | 88,611 |
Interest rate swaps | 1,169 | 1,647 |
Significant Unobservable Inputs (Level III) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Interest rate swaps | 0 | 0 |
U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 19,537 | 13,087 |
U.S. government agencies | Quoted Prices in Active Markets for Identical Assets (Level I) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
U.S. government agencies | Significant Other Observable Inputs (Level II) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 19,537 | 13,087 |
U.S. government agencies | Significant Unobservable Inputs (Level III) | ||
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 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 42,729 | 40,688 |
State and political subdivisions | Quoted Prices in Active Markets for Identical Assets (Level I) | ||
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 | Significant Other Observable Inputs (Level II) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 42,729 | 40,688 |
State and political subdivisions | Significant Unobservable Inputs (Level III) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
U.S. government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 36,679 | 32,854 |
U.S. government-sponsored enterprises | Quoted Prices in Active Markets for Identical Assets (Level I) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
U.S. government-sponsored enterprises | Significant Other Observable Inputs (Level II) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 36,679 | 32,854 |
U.S. government-sponsored enterprises | Significant Unobservable Inputs (Level III) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Corporate debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 2,033 | 1,982 |
Corporate debt | Quoted Prices in Active Markets for Identical Assets (Level I) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Corporate debt | Significant Other Observable Inputs (Level II) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 2,033 | 1,982 |
Corporate debt | Significant Unobservable Inputs (Level III) | ||
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 Instr57
Fair Value Of Financial Instruments - Summary Of Financial Assets Measured On A Nonrecurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Estimate | $ 2,410 | $ 1,001 |
Impaired loans | Significant Unobservable Inputs (Level III) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Estimate | 2,410 | 1,001 |
Impaired loans | Significant Other Observable Inputs (Level II) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Estimate | 0 | 0 |
Impaired loans | Quoted Prices in Active Markets for Identical Assets (Level I) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Estimate | 0 | 0 |
Foreclosed real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Estimate | 568 | 1,716 |
Foreclosed real estate | Significant Unobservable Inputs (Level III) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Estimate | 568 | 1,716 |
Foreclosed real estate | Significant Other Observable Inputs (Level II) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Estimate | 0 | 0 |
Foreclosed real estate | Quoted Prices in Active Markets for Identical Assets (Level I) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Estimate | $ 0 | $ 0 |
Fair Value Of Financial Instr58
Fair Value Of Financial Instruments - Qualitative Information About Level 3 Fair Value Measurements (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Impaired loans | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Fair Value Estimate | $ 2,410 | $ 1,001 |
Impaired loans | Significant Unobservable Inputs (Level III) | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Fair Value Estimate | $ 2,410 | $ 1,001 |
Impaired loans | Minimum | Significant Unobservable Inputs (Level III) | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Range (Weighted Average) | 0.00% | 0.00% |
Impaired loans | Maximum | Significant Unobservable Inputs (Level III) | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Range (Weighted Average) | (100.00%) | (27.30%) |
Impaired loans | Weighted Average | Significant Unobservable Inputs (Level III) | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Range (Weighted Average) | (9.60%) | (2.50%) |
Foreclosed real estate | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Fair Value Estimate | $ 568 | $ 1,716 |
Foreclosed real estate | Significant Unobservable Inputs (Level III) | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Fair Value Estimate | $ 568 | $ 1,716 |
Range (Weighted Average) | (7.00%) | (7.00%) |
Foreclosed real estate | Weighted Average | Significant Unobservable Inputs (Level III) | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Range (Weighted Average) | (7.00%) | (7.00%) |
Fair Value Of Financial Instr59
Fair Value Of Financial Instruments - Additional Information (Details) - Impaired loans - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Impaired loans, fair value | $ 2,410 | $ 1,001 |
Significant Unobservable Inputs (Level III) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Impaired loans, fair value | $ 2,410 | $ 1,001 |
Fair Value Of Financial Instr60
Fair Value Of Financial Instruments - Estimated Fair Values Of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Financial assets: | ||
Securities available for sale, at fair value | $ 100,978 | $ 88,611 |
Securities held to maturity | 8,238 | 11,739 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 10,769 | 14,638 |
Time deposits with other banks | 100 | 100 |
Securities available for sale, at fair value | 100,978 | 88,611 |
Securities held to maturity | 8,075 | 11,618 |
Federal Home Loan Bank stock | 5,081 | 5,106 |
Loans receivable, net of allowance | 787,622 | 688,561 |
Accrued interest receivable | 2,562 | 2,058 |
Interest rate swaps | 1,169 | 1,647 |
Financial liabilities: | ||
Non-maturity deposits | 564,869 | 479,025 |
Time deposits | 177,059 | 181,896 |
Short-term borrowings | 33,710 | 29,805 |
Long-term borrowings | 55,000 | 66,000 |
Subordinated debentures | 27,846 | 27,840 |
Accrued interest payable | 401 | 364 |
Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 10,769 | 14,638 |
Time deposits with other banks | 100 | 100 |
Securities available for sale, at fair value | 100,978 | 88,611 |
Securities held to maturity | 8,238 | 11,739 |
Federal Home Loan Bank stock | 5,081 | 5,106 |
Loans receivable, net of allowance | 767,986 | 672,912 |
Accrued interest receivable | 2,562 | 2,058 |
Interest rate swaps | 1,169 | 1,647 |
Financial liabilities: | ||
Non-maturity deposits | 564,869 | 479,025 |
Time deposits | 176,396 | 181,346 |
Short-term borrowings | 33,704 | 29,805 |
Long-term borrowings | 55,016 | 66,388 |
Subordinated debentures | 25,147 | 24,519 |
Accrued interest payable | 401 | 364 |
Quoted Prices in Active Markets for Identical Assets (Level I) | ||
Financial assets: | ||
Cash and cash equivalents | 10,769 | 14,638 |
Time deposits with other banks | 0 | 0 |
Securities available for sale, at fair value | 0 | 0 |
Securities held to maturity | 0 | 0 |
Federal Home Loan Bank stock | 0 | 0 |
Loans receivable, net of allowance | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Interest rate swaps | 0 | 0 |
Financial liabilities: | ||
Non-maturity deposits | 0 | 0 |
Time deposits | 0 | 0 |
Short-term borrowings | 33,704 | 29,805 |
Long-term borrowings | 0 | 0 |
Subordinated debentures | 0 | 0 |
Accrued interest payable | 0 | 0 |
Significant Other Observable Inputs (Level II) | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Time deposits with other banks | 100 | 100 |
Securities available for sale, at fair value | 100,978 | 88,611 |
Securities held to maturity | 8,238 | 11,739 |
Federal Home Loan Bank stock | 5,081 | 5,106 |
Loans receivable, net of allowance | 0 | 0 |
Accrued interest receivable | 2,562 | 2,058 |
Interest rate swaps | 1,169 | 1,647 |
Financial liabilities: | ||
Non-maturity deposits | 564,869 | 479,025 |
Time deposits | 176,396 | 181,346 |
Short-term borrowings | 0 | 0 |
Long-term borrowings | 55,016 | 66,388 |
Subordinated debentures | 25,147 | 24,519 |
Accrued interest payable | 401 | 364 |
Significant Unobservable Inputs (Level III) | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Time deposits with other banks | 0 | 0 |
Securities available for sale, at fair value | 0 | 0 |
Securities held to maturity | 0 | 0 |
Federal Home Loan Bank stock | 0 | 0 |
Loans receivable, net of allowance | 767,986 | 672,912 |
Accrued interest receivable | 0 | 0 |
Interest rate swaps | 0 | 0 |
Financial liabilities: | ||
Non-maturity deposits | 0 | 0 |
Time deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
Long-term borrowings | 0 | 0 |
Subordinated debentures | 0 | 0 |
Accrued interest payable | $ 0 | $ 0 |
Derivatives - Additional Inform
Derivatives - Additional Information (Details) | 3 Months Ended | |
Mar. 31, 2016USD ($) | Sep. 30, 2017USD ($)loan | |
Derivative [Line Items] | ||
Number of FHLB borrowings | loan | 4 | |
Amount of four FHLB borrowings | $ 26,000,000 | |
Collateral | $ 700,000 | |
Derivative Effective Date March 15, 2016 | Derivatives designated as hedging instruments | ||
Derivative [Line Items] | ||
Swap agreement term | 10 years | |
Fixed interest rate of swap agreement | 3.10% | |
Junior subordinated debt | ||
Derivative [Line Items] | ||
Variable rate junior subordinated debt issued | $ 12,500,000 | |
Junior subordinated debt | LIBOR | ||
Derivative [Line Items] | ||
Variable rate spread on debt instrument | 1.44% |
Derivatives - Schedule Of Fair
Derivatives - Schedule Of Fair Value of Derivatives (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Fair Value | $ 1,169 | $ 1,647 |
Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Notional/ Contract Amount | 38,500 | 38,500 |
Fair Value | 1,169 | 1,647 |
Derivative Effective Date March 15, 2016 | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Notional/ Contract Amount | 12,500 | 12,500 |
Fair Value | 512 | 629 |
Derivative Effective Date December 15, 2016 | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Notional/ Contract Amount | 5,000 | 5,000 |
Fair Value | 119 | 163 |
Derivative Effective Date June 15, 2017 | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Notional/ Contract Amount | 6,000 | 6,000 |
Fair Value | 121 | 201 |
Derivative Effective Date December 15, 2017 Contract 1 | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Notional/ Contract Amount | 10,000 | 10,000 |
Fair Value | 290 | 448 |
Derivative Effective Date December 15, 2017 Contract 2 | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Notional/ Contract Amount | 5,000 | 5,000 |
Fair Value | $ 127 | $ 206 |
Derivatives - Schedule Of Deriv
Derivatives - Schedule Of Derivative Financial Instruments Designated As Cash Flow Hedges (Details) - Cash flow hedging - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Loss Recognized in OCI on Derivatives, net of Tax (Effective Portion) | $ (38) | $ 114 | $ (287) | $ (815) |
Amount of Gain (Loss) Recognized in Income of Derivatives (Ineffective Portion) | 0 | 0 | 0 | 0 |
Derivative Effective Date March 15, 2016 | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Loss Recognized in OCI on Derivatives, net of Tax (Effective Portion) | (9) | 66 | (70) | (166) |
Amount of Gain (Loss) Recognized in Income of Derivatives (Ineffective Portion) | 0 | 0 | 0 | 0 |
Derivative Effective Date December 15, 2016 | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Loss Recognized in OCI on Derivatives, net of Tax (Effective Portion) | (3) | 16 | (26) | (134) |
Amount of Gain (Loss) Recognized in Income of Derivatives (Ineffective Portion) | 0 | 0 | 0 | 0 |
Derivative Effective Date June 15, 2017 | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Loss Recognized in OCI on Derivatives, net of Tax (Effective Portion) | (3) | 14 | (48) | (168) |
Amount of Gain (Loss) Recognized in Income of Derivatives (Ineffective Portion) | 0 | 0 | 0 | 0 |
Derivative Effective Date December 15, 2017 Contract 1 | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Loss Recognized in OCI on Derivatives, net of Tax (Effective Portion) | (15) | 12 | (95) | (224) |
Amount of Gain (Loss) Recognized in Income of Derivatives (Ineffective Portion) | 0 | 0 | 0 | 0 |
Derivative Effective Date December 15, 2017 Contract 2 | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Loss Recognized in OCI on Derivatives, net of Tax (Effective Portion) | (8) | 6 | (48) | (123) |
Amount of Gain (Loss) Recognized in Income of Derivatives (Ineffective Portion) | $ 0 | $ 0 | $ 0 | $ 0 |