Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 31, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | SHORE BANCSHARES INC | |
Entity Central Index Key | 1,035,092 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Trading Symbol | shbi | |
Entity Common Stock, Shares Outstanding | 12,664,797 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and due from banks | $ 17,896 | $ 15,080 |
Interest-bearing deposits with other banks | 57,203 | 54,223 |
Federal funds sold | 26 | 4,508 |
Cash and cash equivalents | 75,125 | 73,811 |
Investment securities: | ||
Available for sale, at fair value | 174,788 | 212,165 |
Held to maturity, at amortized cost - fair value of $3,931 (2016) and $4,243 (2015) | 3,809 | 4,191 |
Loans | 860,553 | 795,114 |
Less: allowance for credit losses | (8,614) | (8,316) |
Loans, net | 851,939 | 786,798 |
Premises and equipment, net | 16,680 | 16,864 |
Goodwill | 11,931 | 11,931 |
Other intangible assets, net | 1,112 | 1,211 |
Other real estate owned, net | 2,197 | 4,252 |
Other assets | 20,285 | 23,920 |
TOTAL ASSETS | 1,157,866 | 1,135,143 |
Deposits: | ||
Noninterest-bearing | 256,559 | 229,686 |
Interest-bearing | 735,736 | 745,778 |
Total deposits | 992,295 | 975,464 |
Short-term borrowings | 5,000 | 6,672 |
Other liabilities | 5,736 | 6,040 |
TOTAL LIABILITIES | 1,003,031 | 988,176 |
STOCKHOLDERS’ EQUITY | ||
Common stock, par value $.01 per share; shares authorized - 35,000,000; shares issued and outstanding - 12,662,746 (2016) and 12,631,160 (2015) | 127 | 126 |
Additional paid in capital | 64,129 | 63,815 |
Retained earnings | 89,102 | 83,097 |
Accumulated other comprehensive income (loss) | 1,477 | (71) |
TOTAL STOCKHOLDERS’ EQUITY | 154,835 | 146,967 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 1,157,866 | $ 1,135,143 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Investment securities held to maturity | $ 3,931 | $ 4,243 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 35,000,000 | 35,000,000 |
Common Stock, shares, issued | 12,662,746 | 12,631,160 |
Common stock, shares outstanding | 12,662,746 | 12,631,160 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
INTEREST INCOME | ||||
Interest and fees on loans | $ 9,398 | $ 8,912 | $ 27,476 | $ 25,984 |
Interest and dividends on investment securities: | ||||
Taxable | 754 | 892 | 2,448 | 2,748 |
Tax-exempt | 2 | 2 | 6 | 8 |
Interest on federal funds sold | 1 | 1 | 6 | 2 |
Interest on deposits with other banks | 81 | 30 | 211 | 82 |
Total interest income | 10,236 | 9,837 | 30,147 | 28,824 |
INTEREST EXPENSE | ||||
Interest on deposits | 574 | 824 | 1,852 | 2,581 |
Interest on short-term borrowings | 4 | 3 | 11 | 11 |
Total interest expense | 578 | 827 | 1,863 | 2,592 |
NET INTEREST INCOME | 9,658 | 9,010 | 28,284 | 26,232 |
Provision for credit losses | 605 | 410 | 1,430 | 1,600 |
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 9,053 | 8,600 | 26,854 | 24,632 |
NONINTEREST INCOME | ||||
Service charges on deposit accounts | 899 | 769 | 2,582 | 2,061 |
Trust and investment fee income | 358 | 360 | 1,073 | 1,279 |
Insurance agency commissions | 2,054 | 2,107 | 6,754 | 6,514 |
Other noninterest income | 696 | 669 | 2,180 | 1,924 |
Total noninterest income | 4,007 | 3,905 | 12,589 | 11,778 |
NONINTEREST EXPENSE | ||||
Salaries and wages | 4,346 | 4,468 | 13,245 | 13,174 |
Employee benefits | 1,009 | 935 | 3,087 | 3,015 |
Occupancy expense | 643 | 600 | 1,839 | 1,837 |
Furniture and equipment expense | 245 | 223 | 728 | 711 |
Data processing | 976 | 800 | 2,639 | 2,451 |
Directors’ fees | 120 | 117 | 355 | 356 |
Amortization of other intangible assets | 33 | 34 | 99 | 100 |
FDIC insurance premium expense | 104 | 243 | 654 | 933 |
Write-downs of other real estate owned | 2 | 7 | 75 | 88 |
Legal and professional fees | 440 | 641 | 1,434 | 1,940 |
Other noninterest expenses | 1,299 | 1,328 | 3,766 | 3,795 |
Total noninterest expense | 9,217 | 9,396 | 27,921 | 28,400 |
INCOME BEFORE INCOME TAXES | 3,843 | 3,109 | 11,522 | 8,010 |
Income tax expense | 1,432 | 1,200 | 4,379 | 3,065 |
NET INCOME | $ 2,411 | $ 1,909 | $ 7,143 | $ 4,945 |
Basic net income per common share (in dollars per share) | $ 0.19 | $ 0.15 | $ 0.56 | $ 0.39 |
Diluted net income per common share (in dollars per share) | 0.19 | 0.15 | 0.56 | 0.39 |
Dividends paid per common share (in dollars per share) | $ 0.03 | $ 0.02 | $ 0.09 | $ 0.02 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 2,411 | $ 1,909 | $ 7,143 | $ 4,945 |
Securities available for sale: | ||||
Unrealized holding gains on available-for-sale securities | 617 | 1,319 | 2,628 | 824 |
Tax effect | (250) | (532) | (1,062) | (333) |
Reclassification of (gains) recognized in net income | (31) | (31) | ||
Tax effect | 13 | 13 | ||
Net of tax amount | 349 | 787 | 1,548 | 491 |
Total other comprehensive income (loss) | 349 | 787 | 1,548 | 491 |
Comprehensive income | $ 2,760 | $ 2,696 | $ 8,691 | $ 5,436 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balances at Dec. 31, 2014 | $ 126 | $ 63,532 | $ 76,495 | $ 316 | $ 140,469 |
Net income | 4,945 | 4,945 | |||
Unrealized gains (losses) on available-for-sale securities, net of taxes | 491 | 491 | |||
Stock-based compensation | 235 | 235 | |||
Cash dividends declared | (253) | (253) | |||
Balances at Sep. 30, 2015 | 126 | 63,767 | 81,187 | 807 | 145,887 |
Balances at Dec. 31, 2015 | 126 | 63,815 | 83,097 | (71) | 146,967 |
Net income | 7,143 | 7,143 | |||
Unrealized gains (losses) on available-for-sale securities, net of taxes | 1,548 | 1,548 | |||
Common shares issued for employee stock-based awards | 53 | 53 | |||
Stock-based compensation | 1 | 261 | 262 | ||
Cash dividends declared | (1,138) | (1,138) | |||
Balances at Sep. 30, 2016 | $ 127 | $ 64,129 | $ 89,102 | $ 1,477 | $ 154,835 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 7,143 | $ 4,945 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for credit losses | 1,430 | 1,600 |
Depreciation and amortization | 1,856 | 1,845 |
Discount accretion on debt securities | (17) | (83) |
Stock-based compensation expense | 262 | 232 |
Excess tax benefits from stock-based arrangements | (26) | (3) |
Deferred income tax expense | 4,008 | 2,640 |
(Gains) on sales of securities | (31) | |
(Gains) Losses on sales of other real estate owned | 125 | 47 |
Write-downs of other real estate owned | 75 | 88 |
Net changes in: | ||
Accrued interest receivable | (15) | 46 |
Other assets | (1,602) | (1,120) |
Accrued interest payable | (32) | (38) |
Other liabilities | (272) | (71) |
Net cash provided by operating activities | 12,904 | 10,128 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from maturities and principal payments of investment securities available for sale | 47,373 | 40,573 |
Proceeds from sales of securities available for sale | 3,961 | |
Purchases of investment securities available for sale | (12,142) | (24,830) |
Proceeds from maturities and principal payments of investment securities held to maturity | 376 | 432 |
Net change in loans | (68,171) | (68,448) |
Purchases of premises and equipment | (542) | (1,362) |
Proceeds from sales of other real estate owned | 3,454 | 1,605 |
Net cash used in investing activities | (25,691) | (52,030) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Noninterest-bearing deposits | 26,874 | 27,131 |
Interest-bearing deposits | (10,042) | (16,701) |
Short-term borrowings | (1,672) | 1,672 |
Proceeds from the issuance of common stock | 53 | 3 |
Excess tax benefits from stock-based arrangements | 26 | 3 |
Common stock dividends paid | (1,138) | (253) |
Net cash provided by financing activities | 14,101 | 11,855 |
Net increase (decrease) in cash and cash equivalents | 1,314 | (30,047) |
Cash and cash equivalents at beginning of period | 73,811 | 96,223 |
Cash and cash equivalents at end of period | 75,125 | 66,176 |
Supplemental cash flows information: | ||
Interest paid | 1,895 | 2,630 |
Income taxes paid | 588 | 368 |
Transfers from loans to other real estate owned | 1,599 | 934 |
Change in unrealized (gains) on securities available for sale | $ (2,477) | $ (1,353) |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Note 1 - Basis of Presentation The consolidated financial statements include the accounts of Shore Bancshares, Inc. and its subsidiaries with all significant intercompany transactions eliminated. The consolidated financial statements conform to accounting principles generally accepted in the United States of America (“GAAP”) and to prevailing practices within the banking industry. The accompanying interim financial statements are unaudited; however, in the opinion of management all adjustments necessary to present fairly the consolidated financial position at September 30, 2016, the consolidated results of operations and comprehensive income for the three and nine months ended September 30, 2016 and 2015, and changes in stockholders’ equity and cash flows for the nine months ended September 30, 2016 and 2015, have been included. All such adjustments are of a normal recurring nature. The amounts as of December 31, 2015 were derived from the 2015 audited financial statements. The results of operations for the three and nine months ended September 30, 2016 are not necessarily indicative of the results to be expected for any other interim period or for the full year. This Quarterly Report on Form 10-Q should be read in conjunction with the Annual Report of Shore Bancshares, Inc. on Form 10-K for the year ended December 31, 2015. For purposes of comparability, certain reclassifications have been made to amounts previously reported to conform with the current period presentation. When used in these notes, the term “the Company” refers to Shore Bancshares, Inc. and, unless the context requires otherwise, its consolidated subsidiaries. Effective July 1, 2016, the Company’s two bank subsidiaries, The Talbot Bank of Easton Maryland and CNB were consolidated into one bank known as Shore United Bank. In these notes to the consolidated financial statements and the management discussion and analysis section, the term “the Bank” refers to Shore United Bank, unless the context requires stipulating results of the individual banks before the consolidation occurred. Recent Accounting Standards ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” amendment requires entities to recognize revenue to depict the transfer of promised goods or services to customers in amounts that reflect the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 is effective for periods beginning after Janu ary 1, 2017. ASU 2015-14, “ Revenue from Contracts with Customers (Topic 606) Deferral of the Effective Date ” – ASU 2015-14 amendments defer the effective date of Update 2014-09 for all entities by one year. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations” – ASU 2016-08 amendments are intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing” – ASU 2016-10 amendments clarify that contractual provisions that, explicitly or implicitly, require an entity to transfer control of additional goods or services to a customer should be distinguished from contractual provisions that, explicitly or implicitly, define the attributes of a single promised license. Attributes of a promised license define the scope of a customer’s right to use or right to access an entity’s intellectual property and, therefore, do not define whether the entity satisfies its performance obligation at a point in time or over time and do not create an obligation for the entity to transfer any additional rights to use or access its intellectual property. The Company is evaluating the impact that ASU 2014-09 and all amendments thereof will have on our consolidated financial statements. ASU 2014-12, "Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period." The amendments in the ASU require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718, Compensation - Stock Compensation , as it relates to awards with performance conditions that affect vesting to account for such awards. The performance target should not be reflected in estimating the grant-date fair value of the award. However, compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. The amendments in this ASU are effective for interim or annual reporting periods beginning after December 15, 2015; early adoption is permitted. Entities may apply the amendments in this ASU either: (1) prospectively to all awards granted or modified after the effective date; or (2) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. As of September 30, 2016, the Company has share-based payment awards that included performance targets that could be achieved after the requisite service period. The adoption of ASU No. 2014-12 did not have a material impact on the Company's Consolidated Financial Statements. ASU No. 2015-05, “Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” This ASU provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new guidance does not change the accounting for a customer’s accounting for service contracts. ASU No. 2015-05 is effective for interim and annual reporting periods beginning after December 15, 2015. The adoption of ASU No. 2015-05 did not have a material impact on the Company's Consolidated Financial Statements. ASU No. 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. This ASU, 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 t he financial statements and (vi i) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax ass et related to available-for-sale securities . ASU 2016-01 will be effective for us on January 1, 2018 and is not expected to have a significant impact on our financial statements. ASU No. 2016-02, “Leases (Topic 842).” This ASU stipulates that a lessee should recognize the assets and liabilities that arise from leases. All leases create an asset and a liability for the lessee in accordance with FASB Concepts Statement No. 6, Elements of Financial Statement , and, therefore, recognition of those lease assets and lease liabilities represents an improvement over previous GAAP, which did not require lease assets and lease liabilities to be recognized for most leases. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. When measuring assets and liabilities arising from a lease, a lessee (and a lessor) should include payments to be made in optional periods only if the lessee is reasonably certain to exercise an option to extend the lease or not to exercise an option to terminate the lease. Similarly, optional payments to purchase the underlying asset should be included in the measurement of lease assets and lease liabilities only if the lessee is reasonably certain to exercise that purchase option. In addition, also consistent with the previous leases guidance, a lessee (and a lessor) should exclude most variable lease payments in measuring lease assets and lease liabilities, other than those that depend on an index or a rate or are in substance fixed payments. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. The amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the amendments in this Update is permitted for all entities. The Company is evaluating the impact that ASU 2016-02 will have on our consolidated financial statements. ASU No. 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” This ASU simplifies the treatment and accounting for 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. For public business entities, the amendments in this update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any entity in any interim or annual period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The Company is evaluating the impact that ASU 2016-09 will have on our consolidated financial statements. ASU No. 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The amendments in this ASU will replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The amendments broaden the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually. The use of forecasted information incorporates more timely information in the estimate of expected credit losses, which will be more decision useful to users of the financial statements. It is not expected that an entity will need to create an economic forecast over the entire contractual life of long-dated financial assets. Therefore, the amendments will allow an entity to revert to historical loss information that is reflective of the contractual term (considering the effect of prepayments) for periods that are beyond the time frame for which the entity is able to develop reasonable and supportable forecasts. The amendments retain many of the disclosure amendments in Accounting Standards Update No. 2010-20, Receivables (Topic 310): Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses, updated to reflect the change from an incurred loss methodology to an expected credit loss methodology. Credit losses on available-for-sale debt securities should be measured in a manner similar to current GAAP. However, the amendments require that credit losses be presented as an allowance rather than a write-down. For public entities that are U.S. Securities and Exchange Commission (SEC) filers, the amendments are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All entities may adopt the amendments earlier as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company believes this ASU will have a significant impact on our consolidated financial statements and the method in which we calculate our credit losses, primarily on loans and available-for sale securities. At this time, the Company will continue to evaluate the impact and implementation of this standard to meet the effective date for consolidated financial statements beginning in 2019. ASU No. 2016-15, “Classification of Certain Cash Receipts and Cash Payments." Current GAAP is unclear or does not include specific guidance on how to classify certain transactions in the statement of cash flows. This ASU is intended to reduce diversity in practice in how eight particular transactions are classified in the statement of cash flows. ASU No. 2016-15 is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted, provided that all of the amendments are adopted in the same period. Entities will be required to apply the guidance retrospectively. If it is impracticable to apply the guidance retrospectively for an issue, the amendments related to that issue would be applied prospectively. As this guidance only affects the classification within the statement of cash flows, ASU No. 2016-15 is not expected to have a material impact on the Company's consolidated financial statements. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 2 – Earnings Per Share Basic earnings per common share is calculated by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share is calculated by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period, adjusted for the dilutive effect of common stock equivalents (stock-based awards). The following table provides information relating to the calculation of earnings per common share: For the Three Months Ended For the Nine Months Ended September 30, September 30, (In thousands, except per share data) 2016 2015 2016 2015 Net Income $ 2,411 $ 1,909 $ 7,143 $ 4,945 Weighted average shares outstanding - Basic 12,661 12,630 12,648 12,627 Dilutive effect of common stock equivalents 15 10 15 10 Weighted average shares outstanding - Diluted 12,676 12,640 12,663 12,637 Earnings per common share - Basic $ 0.19 $ 0.15 $ 0.56 $ 0.39 Earnings per common share - Diluted $ 0.19 $ 0.15 $ 0.56 $ 0.39 There were no weighted average common stock equivalents excluded from the calculation of diluted earnings per share for the three and nine months ended September 30, 2016 and 2015. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2016 | |
Investment Securities [Abstract] | |
Investment Securities | Note 3 – Investment Securities The following table provides information on the amortized cost and estimated fair values of investment securities. Gross Gross Estimated Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value Available-for-sale securities: September 30, 2016 U.S. Treasury $ - $ - $ - $ - U.S. Government agencies 32,423 118 111 32,430 Mortgage-backed 139,240 2,558 103 141,695 Equity 648 15 - 663 Total $ 172,311 $ 2,691 $ 214 $ 174,788 December 31, 2015 U.S. Treasury $ 5,078 $ 1 $ - $ 5,079 U.S. Government agencies 49,630 89 190 49,529 Mortgage-backed 156,939 639 662 156,916 Equity 637 4 - 641 Total $ 212,284 $ 733 $ 852 $ 212,165 Held-to-maturity securities: September 30, 2016 U.S. Government agencies $ 2,194 $ 10 $ - $ 2,204 States and political subdivisions 1,615 112 - 1,727 Total $ 3,809 $ 122 $ - $ 3,931 December 31, 2015 U.S. Government agencies $ 2,575 $ - $ 60 $ 2,515 States and political subdivisions 1,616 112 - 1,728 Total $ 4,191 $ 112 $ 60 $ 4,243 The following tables provide information about gross unrealized losses and fair value by length of time that the individual securities have been in a continuous unrealized loss position at September 30, 2016 and December 31, 2015. Less than More than 12 Months 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses September 30, 2016 Available-for-sale securities: U.S. Government agencies $ 3,005 $ - $ - $ 111 $ 3,005 $ 111 Mortgage-backed 3,993 1 10,766 102 14,759 103 Total $ 6,998 $ 1 $ 10,766 $ 213 $ 17,764 $ 214 Less than More than 12 Months 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses December 31, 2015 Available-for-sale securities: U.S. Government agencies $ 18,981 $ 57 $ - $ 133 $ 18,981 $ 190 Mortgage-backed 43,881 328 21,263 334 65,144 662 Total $ 62,862 $ 385 $ 21,263 $ 467 $ 84,125 $ 852 Held-to-maturity securities: U.S. Government agencies $ - $ - $ 2,515 $ 60 $ 2,515 $ 60 All of the securities with unrealized losses in the portfolio have modest duration risk, low credit risk, and minimal losses when compared to total amortized cost. The unrealized losses on debt securities that exist are the result of market changes in interest rates since original purchase. Because the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell these securities before recovery of their amortized cost bases, which may be at maturity for debt securities, the Company considers the unrealized losses to be temporary. The following table provides information on the amortized cost and estimated fair values of investment securities by maturity date at September 30, 2016. Available for sale Held to maturity Amortized Estimated Amortized Estimated (Dollars in thousands) Cost Fair Value Cost Fair Value Due in one year or less $ 13,025 $ 13,053 $ 210 $ 210 Due after one year through five years 17,011 17,078 501 541 Due after five years through ten years 7,432 7,507 402 441 Due after ten years 134,195 136,487 2,696 2,739 171,663 174,125 3,809 3,931 Equity securities 648 663 - - Total $ 172,311 $ 174,788 $ 3,809 $ 3,931 The maturity dates for debt securities are determined using contractual maturity dates. |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses | 9 Months Ended |
Sep. 30, 2016 | |
Loans and Allowance for Credit Losses [Abstract] | |
Loans and Allowance for Credit Losses | Note 4 – Loans and Allowance for Credit Losses The Company makes residential mortgage, commercial and consumer loans to customers primarily in Talbot County, Queen Anne’s County, Kent County, Caroline County and Dorchester County in Maryland and in Kent County, Delaware. The following table provides information about the principal classes of the loan portfolio at September 30, 2016 and December 31, 2015. (Dollars in thousands) September 30, 2016 December 31, 2015 Construction $ 79,205 $ 85,632 Residential real estate 324,473 307,063 Commercial real estate 378,806 330,253 Commercial 70,920 64,911 Consumer 7,149 7,255 Total loans 860,553 795,114 Allowance for credit losses (8,614) (8,316) Total loans, net $ 851,939 $ 786,798 Loans are stated at their principal amount outstanding net of any purchase premiums, deferred fees and costs. Interest income on loans is accrued at the contractual rate based on the principal amount outstanding. Fees charged and costs capitalized for originating loans are being amortized substantially on the interest method over the term of the loan. A loan is placed on nonaccrual (i.e., interest income is no longer accrued) when it is specifically determined to be impaired or when principal or interest is delinquent for 90 days or more, unless the loan is well secured and in the process of collection. Any unpaid interest previously accrued on those loans is reversed from income. Interest payments received on nonaccrual loans are applied as a reduction of the loan principal balance unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. A loan is considered impaired if it is probable that the Company will not collect all principal and interest payments according to the loan’s contractual terms. An impaired loan may show deficiencies in the borrower’s overall financial condition, payment history, support available from financial guarantors and/or the fair market value of collateral. The impairment of a loan is measured at the present value of expected future cash flows using the loan’s effective interest rate, or at the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. Generally, the Company measures impairment on such loans by reference to the fair value of the collateral. Once the amount of impairment has been determined, the uncollectible portion is charged off. Income on impaired loans is recognized on a cash basis, and payments are first applied against the principal balance outstanding (i.e., placing impaired loans on nonaccrual status). Generally, interest income is not recognized on impaired loans unless the likelihood of further loss is remote. The allowance for credit losses may include specific reserves related to impaired loans. Specific reserves remain until charge offs are made. Impaired loans do not include groups of smaller balance homogenous loans such as residential mortgage and consumer installment loans that are evaluated collectively for impairment. Reserves for probable credit losses related to these loans are based on historical loss ratios and are included in the formula portion of the allowance for credit losses. See additional discussion under the caption “Critical Accounting Policies” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. A loan is considered a troubled debt restructuring (“TDR”) if a borrower is experiencing financial difficulties and a creditor has granted a concession. Concessions may include interest rate reductions or below market interest rates, principal forgiveness, restructuring amortization schedules and other actions intended to minimize potential losses. Loans are identified to be restructured when signs of impairment arise such as borrower interest rate reduction request, slowness to pay, or when an inability to repay becomes evident. The terms being offered are evaluated to determine if they are more liberal than those that would be indicated by policy or industry standards for similar, untroubled credits. In those situations where the terms or the interest rates are considered to be more favorable than industry standards or the current underwriting guidelines of the Company’s banking subsidiary, Shore United Bank (the “Bank”), the loan is classified as a TDR. All loans designated as TDRs are considered impaired loans and may be on either accrual or nonaccrual status. In instances where the loan has been placed on nonaccrual status, six consecutive months of timely payments are required prior to returning the loan to accrual status. All loans classified as TDRs which are restructured and accrue interest under revised terms require a full and comprehensive review of the borrower’s financial condition, capacity for repayment, realistic assessment of collateral values, and the assessment of risk entered into any workout agreement. Current financial information on the borrower, guarantor, and underlying collateral is analyzed to determine if it supports the ultimate collection of principal and interest. For commercial loans, the cash flows are analyzed, both for the underlying project and globally. For consumer loans, updated salary, credit history and cash flow information is obtained. Current market conditions are also considered. Following a full analysis, the determination of the appropriate loan structure is made. In the normal course of banking business, risks related to specific loan categories are as follows: Construction loans – Construction loans generally finance the construction of residential real estate for builders and individuals for single family dwellings. In addition, the Bank periodically finances the construction of commercial projects. Credit risk factors include the borrower’s ability to successfully complete the construction on time and within budget, changing market conditions which could affect the value and marketability of projects, changes in the borrower’s ability or willingness to repay the loan and potentially rising interest rates which can impact both the borrower’s ability to repay and the collateral value. Residential real estate – Residential real estate loans are typically made to consumers and are secured by residential real estate. Credit risk arises from the borrower’s continuing financial stability, which can be adversely impacted by job loss, divorce, illness, or personal bankruptcy, among other factors. Also impacting credit risk would be a shortfall in the value of the residential real estate in relation to the outstanding loan balance in the event of a default or subsequent liquidation of the real estate collateral. Commercial real estate – Commercial real estate loans consist of both loans secured by owner occupied properties and non-owner occupied where an established banking relationship exists and involves investment properties for warehouse, retail, and office space with a history of occupancy and cash flow. These loans are subject to adverse changes in the local economy and commercial real estate markets. Credit risk associated with owner occupied properties arises from the borrower’s financial stability and the ability of the borrower and the business to repay the loan. Non-owner occupied properties carry the risk of a tenant’s deteriorating credit strength, lease expirations in soft markets and sustained vacancies which can adversely impact cash flow. Commercial – Commercial loans are secured or unsecured loans for business purposes. Loans are typically secured by accounts receivable, inventory, equipment and/or other assets of the business. Credit risk arises from the successful operation of the business which may be affected by competition, rising interest rates, regulatory changes and adverse conditions in the local and regional economy. Consumer – Consumer loans include home equity loans and lines, installment loans and personal lines of credit. Credit risk is similar to residential real estate loans above as it is subject to the borrower’s continuing financial stability and the value of the collateral securing the loan. The following tables include impairment information relating to loans and the allowance for credit losses as of September 30, 2016 and December 31, 2015. Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Unallocated Total September 30, 2016 Loans individually evaluated for impairment $ 9,554 $ 7,928 $ 7,145 $ 36 $ 99 $ - $ 24,762 Loans collectively evaluated for impairment 69,651 316,545 371,661 70,884 7,050 - 835,791 Total loans $ 79,205 $ 324,473 $ 378,806 $ 70,920 $ 7,149 $ - $ 860,553 Allowance for credit losses allocated to: Loans individually evaluated for impairment $ 831 $ 179 $ 201 $ - $ - $ - $ 1,211 Loans collectively evaluated for impairment 1,187 1,901 2,986 917 154 258 7,403 Total loans $ 2,018 $ 2,080 $ 3,187 $ 917 $ 154 $ 258 $ 8,614 Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Unallocated Total December 31, 2015 Loans individually evaluated for impairment $ 11,598 $ 7,946 $ 7,762 $ 161 $ 121 $ - $ 27,588 Loans collectively evaluated for impairment 74,034 299,117 322,491 64,750 7,134 - 767,526 Total loans $ 85,632 $ 307,063 $ 330,253 $ 64,911 $ 7,255 $ - $ 795,114 Allowance for credit losses allocated to: Loans individually evaluated for impairment $ 619 $ 435 $ 340 $ - $ 7 $ - $ 1,401 Loans collectively evaluated for impairment 1,027 1,746 2,659 558 149 776 6,915 Total loans $ 1,646 $ 2,181 $ 2,999 $ 558 $ 156 $ 776 $ 8,316 The following tables provide information on impaired loans and any related allowance by loan class as of September 30, 2016 and December 31, 2015. The difference between the unpaid principal balance and the recorded investment is the amount of partial charge-offs that have been taken. Recorded Recorded Quarter-to-date Year-to-date Unpaid investment investment average average Interest principal with no with an Related recorded recorded income (Dollars in thousands) balance allowance allowance allowance investment investment recognized September 30, 2016 Impaired nonaccrual loans: Construction $ 10,943 $ 2,495 $ 2,860 $ 810 $ 5,361 $ 6,022 $ - Residential real estate 4,152 2,213 1,613 25 4,012 3,406 - Commercial real estate 2,822 1,974 200 112 2,177 2,265 - Commercial 48 36 - - 108 143 - Consumer 99 99 - - 99 109 - Total $ 18,064 $ 6,817 $ 4,673 $ 947 $ 11,757 $ 11,945 $ - Impaired accruing TDRs: Construction $ 4,199 $ 3,485 $ 714 $ 21 $ 4,213 $ 4,166 $ 74 Residential real estate 4,102 2,892 1,210 154 4,100 4,900 149 Commercial real estate 4,971 1,583 3,388 89 4,982 5,137 127 Commercial - - - - - - - Consumer - - - - - - - Total $ 13,272 $ 7,960 $ 5,312 $ 264 $ 13,295 $ 14,203 $ 350 Total impaired loans: Construction $ 15,142 $ 5,980 $ 3,574 $ 831 $ 9,574 $ 10,188 $ 74 Residential real estate 8,254 5,105 2,823 179 8,112 8,306 149 Commercial real estate 7,793 3,557 3,588 201 7,159 7,402 127 Commercial 48 36 - - 108 143 - Consumer 99 99 - - 99 109 - Total $ 31,336 $ 14,777 $ 9,985 $ 1,211 $ 25,052 $ 26,148 $ 350 September 30, 2015 Recorded Recorded Quarter-to-date Year-to-date Unpaid investment investment average average Interest principal with no with an Related recorded recorded income (Dollars in thousands) balance allowance allowance allowance investment investment recognized December 31, 2015 Impaired nonaccrual loans: Construction $ 11,850 $ 4,647 $ 2,882 $ 588 $ 8,025 $ 8,121 $ - Residential real estate 2,563 1,773 487 208 3,812 2,710 - Commercial real estate 2,988 1,813 209 9 2,137 2,511 - Commercial 175 161 - - 170 105 - Consumer 128 98 23 7 123 123 - Total $ 17,704 $ 8,492 $ 3,601 $ 812 $ 14,267 $ 13,570 $ - Impaired accruing TDRs: Construction $ 4,069 $ 3,266 $ 803 $ 31 $ 4,099 $ 4,076 $ 65 Residential real estate 5,686 2,380 3,306 227 7,520 7,084 250 Commercial real estate 5,740 1,702 4,038 331 5,687 6,065 194 Commercial - - - - 27 38 1 Consumer - - - - - - - Total $ 15,495 $ 7,348 $ 8,147 $ 589 $ 17,333 $ 17,263 $ 510 Total impaired loans: Construction $ 15,919 $ 7,913 $ 3,685 $ 619 $ 12,124 $ 12,197 $ 65 Residential real estate 8,249 4,153 3,793 435 11,332 9,794 250 Commercial real estate 8,728 3,515 4,247 340 7,824 8,576 194 Commercial 175 161 - - 197 143 1 Consumer 128 98 23 7 123 123 - Total $ 33,199 $ 15,840 $ 11,748 $ 1,401 $ 31,600 $ 30,833 $ 510 The following tables provide a roll-forward for troubled debt restructurings as of September 30, 2016 and September 30, 2015. 1/1/2016 9/30/2016 TDR New Disbursements Charge Reclassifications/ TDR Related (Dollars in thousands) Balance TDRs (Payments) offs Transfer In/(Out) Payoffs Balance Allowance For nine months ended September 30, 2016 Accruing TDRs Construction $ 4,069 $ - $ 130 $ - $ - $ - $ 4,199 $ 21 Residential real estate 5,686 565 (375) - (1,595) (179) 4,102 154 Commercial real estate 5,740 495 (689) (117) (458) - 4,971 89 Commercial - - - - - - - - Consumer - - - - - - - - Total $ 15,495 $ 1,060 $ (934) $ (117) $ (2,053) $ (179) $ 13,272 $ 264 Nonaccrual TDRs Construction $ 4,960 $ 2,570 $ (2,012) $ (263) $ - $ - $ 5,255 $ 810 Residential real estate 445 - (294) - 1,595 - 1,746 25 Commercial real estate - - - (258) 458 - 200 112 Commercial - - - - - - - - Consumer 23 - (23) - - - - - Total $ 5,428 $ 2,570 $ (2,329) $ (521) $ 2,053 $ - $ 7,201 $ 947 Total $ 20,923 $ 3,630 $ (3,263) $ (638) $ - $ (179) $ 20,473 $ 1,211 1/1/2015 9/30/2015 TDR New Disbursements Charge Reclassifications/ TDR Related (Dollars in thousands) Balance TDRs (Payments) offs Transfer In/(Out) Payoffs Balance Allowance For nine months ended September 30, 2015 Accruing TDRs Construction $ 4,022 $ - $ (83) $ - $ 142 $ - $ 4,081 $ 33 Residential real estate 6,368 1,837 (206) - (1,324) - 6,675 207 Commercial real estate 6,237 - (562) - - - 5,675 180 Commercial 47 - (6) - (41) - - - Consumer - - - - - - - - Total $ 16,674 $ 1,837 $ (857) $ - $ (1,223) $ - $ 16,431 $ 420 Nonaccrual TDRs Construction $ 3,321 $ - $ (207) $ (1,058) $ 2,911 $ - $ 4,967 $ 643 Residential real estate 3,382 - (21) - (2,911) - 450 89 Commercial real estate 346 - (4) (40) (302) - - - Commercial - - - - - - - - Consumer 25 - (2) - - - 23 - Total $ 7,074 $ - $ (234) $ (1,098) $ (302) $ - $ 5,440 $ 732 Total $ 23,748 $ 1,837 $ (1,091) $ (1,098) $ (1,525) $ - $ 21,871 $ 1,152 The following tables provide information on loans that were modified and considered TDRs during the nine months ended September 30, 2016 and September 30, 2015. Premodification Postmodification outstanding outstanding Number of recorded recorded Related (Dollars in thousands) contracts investment investment allowance TDRs: For nine months ended September 30, 2016 Construction - $ - $ - $ - Residential real estate 3 667 699 - Commercial real estate 1 495 495 - Commercial - - - - Consumer - - - - Total 4 $ 1,162 $ 1,194 $ - For nine months ended September 30, 2015 Construction - $ - $ - $ - Residential real estate 10 1,835 1,837 19 Commercial real estate - - - - Commercial - - - - Consumer - - - - Total 10 $ 1,835 $ 1,837 $ 19 During the nine months ended September 30, 2016, there were four TDRs which were modified. The modifications to these TDRs consisted of reductions in principal, interest and rate as well as payment frequency for one of the TDRs. The following tables provide information on TDRs that defaulted during the nine months ended September 30, 2016 and September 30, 2015. Generally, a loan is considered in default when principal or interest is past due 90 days or more. Number of Recorded Related (Dollars in thousands) contracts investment allowance TDRs that subsequently defaulted: For nine months ended September 30, 2016 Construction 1 $ 241 $ - Residential real estate - - - Commercial real estate 2 375 - Commercial - - - Consumer - - - Total 3 $ 616 $ - For nine months ended September 30, 2015 Construction - $ - $ - Residential real estate - - - Commercial real estate 2 279 - Commercial - - - Consumer - - - Total 2 $ 279 $ - Management uses risk ratings as part of its monitoring of the credit quality in the Company’s loan portfolio. Loans that are identified as special mention, substandard or doubtful are adversely rated. They are assigned higher risk ratings than favorably rated loans in the calculation of the formula portion of the allowance for credit losses. The following tables provide information on loan risk ratings as of September 30, 2016 and December 31, 2015. Special (Dollars in thousands) Pass/Performing Mention Substandard Doubtful Total September 30, 2016 Construction $ 66,025 $ 3,905 $ 9,275 $ - $ 79,205 Residential real estate 309,936 7,542 6,995 - 324,473 Commercial real estate 354,866 14,590 9,350 - 378,806 Commercial 69,869 761 290 - 70,920 Consumer 7,050 - 99 - 7,149 Total $ 807,746 $ 26,798 $ 26,009 $ - $ 860,553 Special (Dollars in thousands) Pass/Performing Mention Substandard Doubtful Total December 31, 2015 Construction $ 70,214 $ 3,903 $ 11,515 $ - $ 85,632 Residential real estate 290,857 8,837 7,369 - 307,063 Commercial real estate 302,438 18,699 9,116 - 330,253 Commercial 63,628 1,075 208 - 64,911 Consumer 7,107 26 122 - 7,255 Total $ 734,244 $ 32,540 $ 28,330 $ - $ 795,114 The following tables provide information on the aging of the loan portfolio as of September 30, 2016 and December 31, 2015. Accruing 30-59 days 60-89 days Greater than Total (Dollars in thousands) Current past due past due 90 days past due Nonaccrual Total September 30, 2016 Construction $ 73,850 $ - $ - $ - $ - $ 5,355 $ 79,205 Residential real estate 317,245 2,164 1,180 58 3,402 3,826 324,473 Commercial real estate 375,039 260 1,333 - 1,593 2,174 378,806 Commercial 70,840 27 12 5 44 36 70,920 Consumer 7,012 33 4 1 38 99 7,149 Total $ 843,986 $ 2,484 $ 2,529 $ 64 $ 5,077 $ 11,490 $ 860,553 Percent of total loans 98.1 % 0.3 % 0.3 % - % 0.6 % 1.3 % 100.0 % Accruing 30-59 days 60-89 days Greater than Total (Dollars in thousands) Current past due past due 90 days past due Nonaccrual Total December 31, 2015 Construction $ 78,082 $ 21 $ - $ - $ 21 $ 7,529 $ 85,632 Residential real estate 300,562 2,139 2,102 - 4,241 2,260 307,063 Commercial real estate 327,370 - 861 - 861 2,022 330,253 Commercial 64,670 49 31 - 80 161 64,911 Consumer 7,108 13 6 7 26 121 7,255 Total $ 777,792 $ 2,222 $ 3,000 $ 7 $ 5,229 $ 12,093 $ 795,114 Percent of total loans 97.8 % 0.3 % 0.4 % - % 0.7 % 1.5 % 100.0 % Management evaluates the adequacy of the allowance for credit losses at least quarterly and adjusts the provision for credit losses based on this analysis. The following tables provide a summary of the activity in the allowance for credit losses allocated by loan class for the three months and nine months ended September 30, 2016 and 2015. Allocation of a portion of the allowance to one loan class does not preclude its availability to absorb losses in other loan classes. Management re-evaluated the allowance methodology during the third quarter of 2016, the result of the consolidation of the two former bank subsidiaries. Prior to consolidation, each bank subsidiary applied a separate allowance methodology based on their respective loan portfolios. The revised methodology incorporates both previous methodologies to align with a consolidated loan portfolio. Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Unallocated Total For three months ended September 30, 2016 Allowance for credit losses: Beginning Balance $ 1,744 $ 2,035 $ 2,871 $ 677 $ 206 $ 825 $ 8,358 Charge-offs (9) (407) - (139) (13) - (568) Recoveries 8 121 10 79 1 - 219 Net charge-offs (1) (286) 10 (60) (12) - (349) Provision 275 331 306 300 (40) (567) 605 Ending Balance $ 2,018 $ 2,080 $ 3,187 $ 917 $ 154 $ 258 $ 8,614 Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Unallocated Total For three months ended September 30, 2015 Allowance for credit losses: Beginning Balance $ 1,852 $ 2,318 $ 2,616 $ 505 $ 168 $ 458 $ 7,917 Charge-offs (479) (26) - (136) - - (641) Recoveries 9 102 233 60 8 - 412 Net charge-offs (470) 76 233 (76) 8 - (229) Provision 460 (103) (38) 70 (20) 41 410 Ending Balance $ 1,842 $ 2,291 $ 2,811 $ 499 $ 156 $ 499 $ 8,098 Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Unallocated Total For nine months ended September 30, 2016 Allowance for credit losses: Beginning Balance $ 1,646 $ 2,181 $ 2,999 $ 558 $ 156 $ 776 $ 8,316 Charge-offs (263) (525) (503) (264) (23) - (1,578) Recoveries 24 188 20 201 13 - 446 Net charge-offs (239) (337) (483) (63) (10) - (1,132) Provision 611 236 671 422 8 (518) 1,430 Ending Balance $ 2,018 $ 2,080 $ 3,187 $ 917 $ 154 $ 258 $ 8,614 Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Unallocated Total For nine months ended September 30, 2015 Allowance for credit losses: Beginning Balance $ 1,303 $ 2,834 $ 2,379 $ 448 $ 229 $ 502 $ 7,695 Charge-offs (1,058) (283) (320) (285) (45) - (1,991) Recoveries 116 247 248 142 41 - 794 Net charge-offs (942) (36) (72) (143) (4) - (1,197) Provision 1,481 (507) 504 194 (69) (3) 1,600 Ending Balance $ 1,842 $ 2,291 $ 2,811 $ 499 $ 156 $ 499 $ 8,098 Foreclosure Proceedings Consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure totaled $ 990 thousand and $ 581 thousand as of September 30, 2016 and December 31, 2015, respectively. |
Other Assets
Other Assets | 9 Months Ended |
Sep. 30, 2016 | |
Other Assets [Abstract] | |
Other Assets | Note 5 – Other Assets The Company had the following other assets at September 30, 2016 and December 31, 2015. (Dollars in thousands) September 30, 2016 December 31, 2015 Nonmarketable investment securities $ 1,650 $ 1,621 Accrued interest receivable 2,473 2,458 Deferred income taxes 7,077 12,132 Prepaid expenses 1,647 1,039 Other assets 7,438 6,670 Total $ 20,285 $ 23,920 The following table provides information on significant components of the Company’s deferred tax assets and liabilities as of September 30, 2016 and December 31, 2015. September 30, December 31, (Dollars in thousands) 2016 2015 Deferred tax assets: Allowance for credit losses $ 3,439 $ 3,316 Reserve for off-balance sheet commitments 120 121 Deferred loan fees and costs 1,173 1,155 Net operating loss carry forward 4,633 9,069 Write-downs of other real estate owned 330 308 Unrealized losses on available-for-sale securities - 48 Accrued expenses 864 946 AMT carryover 595 - Other 231 191 Total deferred tax assets 11,385 15,154 Deferred tax liabilities: Depreciation 192 271 Amortization on loans FMV adjustment 162 140 Amortization on deferred gain on branch sale 31 Purchase accounting adjustments 2,140 1,988 Deferred loan fees 182 Deferred capital gain on branch sale 408 411 Unrealized gains on available-for-sale securities 1,000 - Other 193 212 Total deferred tax liabilities 4,308 3,022 Net deferred tax assets $ 7,077 $ 12,132 The Company’s deferred tax assets include net operating loss carryovers that will be used to offset taxable income in future periods through their statutory period of 20 years for federal tax purposes. As of December 31, 2015, 18 years of the statutory period remain ed available to offset future taxable income. No valuation allowance on these deferred tax assets was recorded at September 30, 2016 and December 31, 2015 as management believes it is more likely than not that all deferred tax assets will be realized based on the following positive material factors: 1) The Company was profitable for all four quarters of 2014, 2015 and the first nine months of 2016 on a GAAP basis. The net operating loss was originally created in the third quarter of 2013 and was solely attributable to the former Talbot Bank’s sale of loans and other real estate owned (the “Asset Sale”), which is considered non-recurring. 2) The Company had pre-tax income of $11.5 million for both the nine months ended September 30, 2016 and year ended December 31, 2015, respectively, providing further evidence that the Asset Sale was producing positive results and confirming the expectation of utilizing the deferred tax assets. Alternatively, the Company has reviewed negative factors which would influence the conclusion of realizing the deferred tax assets. These factors include the following: 1) The Company could be subject to Section 382 of the Internal Revenue Code (“IRC”), which could further limit the realization of the net operating loss-related deferred tax asset (“NOL-DTA”). 2) Although the local economy of the market in which the Company operates has been showing continued signs of improvement over the past four years, if this trend flattens or reverses, there is a possibility that this potential negative evidence could outweigh the prevailing positive factors. Based on the aforementioned considerations, the Company has concluded that the predominance of observable positive evidence outweighs the future potential of negative evidence and therefore it is more likely than not that the Company will be able to realize in the future all of the net deferred tax assets. |
Other Liabilities
Other Liabilities | 9 Months Ended |
Sep. 30, 2016 | |
Other Liabilities [Abstract] | |
Other Liabilities | Note 6 – Other Liabilities The Company had the following other liabilities at September 30, 2016 and December 31, 2015. (Dollars in thousands) September 30, 2016 December 31, 2015 Accrued interest payable $ 74 $ 106 Other accounts payable 2,571 2,775 Deferred compensation liability 1,409 1,464 Other liabilities 1,682 1,695 Total $ 5,736 $ 6,040 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | Note 7 - Stock-Based Compensation At the 2016 annual meeting, stockholders approved the Shore Bancshares, Inc. 2016 Stock and Incentive Plan (“2016 Equity Plan”), replacing the Shore Bancshares, Inc. 2006 Stock and Incentive Plan (“2006 Equity Plan”), which expired on that date. The Company may issue shares of common stock or grant other equity-based awards pursuant to the 2016 Equity Plan. Stock-based awards granted to date generally are time-based, vest in equal installments on each anniversary of the grant date and range over a one - to five -year period of time, and, in the case of stock options, expire 10 years from the grant date . As part of the 2016 Equity Plan, a performance equity incentive award program, known as the “Long-term incentive plan” allows participating officers of the Company to earn incentive awards of performance share/restricted stock units if certain pre-determined targets are achieved at the end of a three -year performance cycle . Stock-based compensation expense based on the grant date fair value is recognized ratably over the requisite service period for all awards and reflects forfeitures as they occur. The following tables provide information on stock-based compensation expense for the three and nine months ended September 30, 2016 and 2015. For the Three Months Ended For the Nine Months Ended September 30, September 30, (Dollars in thousands) 2016 2015 2016 2015 Stock-based compensation expense $ 85 $ 41 $ 262 $ 232 Proceeds from issuance of common stock 50 3 53 3 September 30, (Dollars in thousands) 2016 2015 Unrecognized stock-based compensation expense $ 132 $ 55 Weighted average period unrecognized expense is expected to be recognized 0.6 years 0.4 years The following table summarizes restricted stock award activity for the Company under the 2006 Equity Plan and the 2016 Equity Plan for the nine months ended September 30, 2016 and 2015. Number of Weighted Average Grant September 30, 2016 Shares Date Fair Value Nonvested at beginning of period 12,488 $ 8.74 Granted 25,315 11.48 Vested (20,738) 9.83 Cancelled - - Nonvested at end of period 17,065 $ 11.46 Number of Weighted Average Grant September 30, 2015 Shares Date Fair Value Nonvested at beginning of period 14,251 $ 8.33 Granted 11,915 9.19 Vested (13,678) 8.90 Cancelled - - Nonvested at end of period 12,488 $ 8.74 The fair value of restricted stock awards that vested during the first nine months of 2016 and 2015 was $204 thousand and $122 thousand, respectively. The following table summarizes stock option activity for the Company under the 2006 Equity Plan and the 2016 Equity Plan for the nine months ended September 30, 2016 and 2015. Number of Weighted Average Grant September 30, 2016 Shares Date Fair Value Outstanding at beginning of period 61,327 $ 8.05 Granted 12,443 11.12 Exercised (11,684) 6.64 Expired/Cancelled - - Outstanding at end of period 62,086 $ 8.29 Exercisable at end of period 58,756 $ 8.14 Number of Weighted Average Grant September 30, 2015 Shares Date Fair Value Outstanding at beginning of period 27,108 $ 6.64 Granted 34,219 9.18 Exercised - - Expired/Cancelled - - Outstanding at end of period 61,327 $ 8.05 Exercisable at end of period 27,108 $ 6.64 The weighted average fair value of stock options granted during 2016 was $5.03 . The Company estimates the fair value of options using the Black-Scholes valuation model with weighted average assumptions for dividend yield, expected volatility, risk-free interest rate and expected lives (in years). The expected dividend yield is calculated by dividing the total expected annual dividend payout by the average stock price. The expected volatility is based on historical volatility of the underlying securities. The risk-free interest rate is based on the Federal Reserve Bank’s constant maturities daily interest rate in effect at grant date. The expected contract life of the options represents the period of time that the Company expects the awards to be outstanding based on historical experience with similar awards. The following weighted average assumptions were used as inputs to the Black-Scholes valuation model for options granted in 2016 and 2015. 2016 2015 Dividend yield 0.73 % 0 % Expected volatility 38.60 % 32 % Risk-free interest rate 1.75 % 1.97 % Expected contract life (in years) 10 years 7 years At the end of the third quarter of 2016, the aggregate intrinsic value of the options outstanding under the 2016 Equity Plan was $253 thousand based on the $11.78 market value per share of the Company’s common stock at September 30, 2016. Similarly, the aggregate intrinsic value of the options exercisable was $232 thousand at September 30, 2016. The intrinsic value on options exercised in 2016 was $21 thousand based on the $11.35 and $11.88 market value per share of the Company’s common stock at February 8, 2016 and July 28, 2016 . Since there were no options exercised during the first nine months of 2015, there was no intrinsic value associated with stock options exercised and no cash received on exercise of options. At September 30, 2016, the weighted average remaining contract life of options outstanding was 5.1 years . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2016 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | Note 8 – Accumulated Other Comprehensive Income The Company records unrealized holding gains (losses), net of tax, on investment securities available for sale as accumulated other comprehensive income (loss), a separate component of stockholders’ equity. The following table provides information on the changes in the components of accumulated other comprehensive income (loss) for the nine months ended September 30, 2016 and 2015. Accumulated net unrealized holding Total accumulated gains (losses) on other available for sale comprehensive (Dollars in thousands) securities income(loss) Balance, December 31, 2015 $ (71) $ (71) Other comprehensive income 1,566 1,566 Reclassification of (gains) recognized (18) (18) Balance, September 30, 2016 $ 1,477 $ 1,477 Balance, December 31, 2014 $ 316 $ 316 Other comprehensive income 491 491 Balances, September 30, 2015 $ 807 $ 807 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Measurements[Abstract] | |
Fair Value Measurements | Note 9 – Fair Value Measurements Accounting guidance under GAAP defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This accounting guidance also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities. Securities available for sale are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis, such as impaired loans, loans held for sale and other real estate owned (foreclosed assets). These nonrecurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets. Under fair value accounting guidance, assets and liabilities are grouped at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine their fair values. These hierarchy levels are: Level 1 inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access at the measurement date. Level 2 inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs – Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. Below is a discussion on the Company’s assets measured at fair value on a recurring basis. Investment Securities Available for Sale Fair value measurement for investment securities available for sale is based on quoted prices from an independent pricing service. The fair value measurements consider observable data that may include present value of future cash flows, prepayment assumptions, credit loss assumptions and other factors. The Company classifies its investments in U.S. Treasury securities as Level 1 in the fair value hierarchy, and it classifies its investments in U.S. Government agencies securities, mortgage-backed securities issued or guaranteed by U.S. Government sponsored entities, and equity securities as Level 2. The tables below present the recorded amount of assets measured at fair value on a recurring basis at September 30, 2016 and December 31, 2015. No assets were transferred from one hierarchy level to another during the first nine months of 2016 or 2015. Significant Other Significant Quoted Observable Unobservable Prices Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) September 30, 2016 Securities available for sale: U.S. Treasury $ - $ - $ - $ - U.S. Government agencies 32,430 - 32,430 - Mortgage-backed 141,695 - 141,695 - Equity 663 - 663 - Total $ 174,788 $ - $ 174,788 $ - Significant Other Significant Quoted Observable Unobservable Prices Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) December 31, 2015 Securities available for sale: U.S. Treasury $ 5,079 $ 5,079 $ - $ - U.S. Government agencies 49,529 - 49,529 - Mortgage-backed 156,916 - 156,916 - Equity 641 - 641 - Total $ 212,165 $ 5,079 $ 207,086 $ - Below is a discussion on the Company’s assets measured at fair value on a nonrecurring basis. Loans The Company does not record loans at fair value on a recurring basis; however, from time to time, a loan is considered impaired and a valuation allowance may be established if there are losses associated with the loan. Loans are considered impaired if it is probable that payment of interest and principal will not be made in accordance with contractual terms. The fair value of impaired loans can be estimated using one of several methods, including the collateral value, market value of similar debt, liquidation value and discounted cash flows. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company records the loan as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company records the loan as nonrecurring Level 3. At September 30, 2016 and December 31, 2015, substantially all impaired loans were evaluated based on the fair value of the collateral and were classified as Level 2 in the fair value hierarchy. Other Real Estate and Other Assets Owned (Foreclosed Assets) Foreclosed assets are adjusted for fair value upon transfer of loans to foreclosed assets. Subsequently, foreclosed assets are carried at fair value less estimated costs to sell. Fair value is based on independent market prices, appraised value of the collateral or management’s estimation of the value of the collateral. At September 30, 2016 and December 31, 2015, foreclosed assets were classified as Level 2 in the fair value hierarchy. The tables below present the recorded amount of assets measured at fair value on a nonrecurring basis at September 30, 2016 and December 31, 2015. No assets were transferred from one hierarchy level to another during the first nine months of 2016 or 2015. Significant Other Significant Quoted Observable Unobservable Prices Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) September 30, 2016 Impaired loans Construction $ 8,723 $ - $ 8,723 $ - Residential real estate 7,749 - 7,749 - Commercial real estate 6,944 - 6,944 - Commercial 36 - 36 - Consumer 99 - 99 - Total impaired loans 23,551 - 23,551 - Other real estate owned 2,197 - 2,197 - Total assets measured at fair value on a nonrecurring basis $ 25,748 $ - $ 25,748 $ - Significant Other Significant Quoted Observable Unobservable Prices Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) December 31, 2015 Impaired loans Construction $ 10,979 $ - $ 10,979 $ - Residential real estate 7,511 - 7,511 - Commercial real estate 7,422 - 7,422 - Commercial 161 - 161 - Consumer 114 - 114 - Total impaired loans 26,187 - 26,187 - Other real estate owned 4,252 - 4,252 - Total assets measured at fair value on a nonrecurring basis $ 30,439 $ - $ 30,439 $ - The following information relates to the estimated fair values of financial assets and liabilities that are reported in the Company’s consolidated balance sheets at their carrying amounts. The discussion below describes the methods and assumptions used to estimate the fair value of each class of financial asset and liability for which it is practicable to estimate that value. Cash and Cash Equivalents Cash equivalents include interest-bearing deposits with other banks and federal funds sold. For these short-term instruments, the carrying amount is a reasonable estimate of fair value. Investment Securities Held to Maturity For all investments in debt securities, fair values are based on quoted prices. If a quoted price is not available, then fair value is estimated using quoted prices for similar securities. Loans The fair values of categories of fixed rate loans, such as commercial loans, residential real estate, and other consumer loans, are estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Other loans, including variable rate loans, are adjusted for differences in loan characteristics. Deposits and Short-Term Borrowings The fair values of demand deposits, savings accounts, and certain money market deposits are the amounts payable on demand at the reporting date. The fair value of fixed-maturity certificates of deposit is estimated using the rates currently offered for deposits of similar remaining maturities. These estimates do not take into consideration the value of core deposit intangibles. Generally, the carrying amount of short-term borrowings is a reasonable estimate of fair value. The fair values of securities sold under agreements to repurchase (included in short-term borrowings) and long-term debt are estimated using the rates offered for similar borrowings. Commitments to Extend Credit and Standby Letters of Credit The majority of the Company’s commitments to grant loans and standby letters of credit are written to carry current market interest rates if converted to loans. In general, commitments to extend credit and letters of credit are not assignable by the Company or the borrower, so they generally have value only to the Company and the borrower. Therefore, it is impractical to assign any value to these commitments. The following table provides information on the estimated fair values of the Company’s financial assets and liabilities that are reported in the balance sheets at their carrying amounts. The financial assets and liabilities have been segregated by their classification level in the fair value hierarchy. September 30, 2016 December 31, 2015 Estimated Estimated Carrying Fair Carrying Fair (Dollars in thousands) Amount Value Amount Value Financial assets Level 1 inputs Cash and cash equivalents $ 75,125 $ 75,125 $ 73,811 $ 73,811 Level 2 inputs Investment securities held to maturity $ 3,809 $ 3,931 $ 4,191 $ 4,243 Loans, net 851,939 857,905 786,798 788,187 Financial liabilities Level 2 inputs Deposits $ 992,295 $ 954,257 $ 975,464 $ 922,161 Short-term borrowings 5,000 5,000 6,672 6,672 |
Financial Instruments with Off-
Financial Instruments with Off-Balance Sheet Risk | 9 Months Ended |
Sep. 30, 2016 | |
Financial Instruments With Off Balance Sheet Risk [Abstract] | |
Financial Instruments with Off-Balance Sheet Risk | Note 10 – Financial Instruments with Off-Balance Sheet Risk In the normal course of business, to meet the financial needs of its customers, the Bank is a party to financial instruments with off-balance sheet risk. These financial instruments include commitments to extend credit and standby letters of credit. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. Letters of credit and other commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Because many of the letters of credit and commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. The following table provides information on commitments outstanding at September 30, 2016 and December 31, 2015. (Dollars in thousands) September 30, 2016 December 31, 2015 Commitments to extend credit $ 192,442 $ 166,931 Letters of credit 6,681 7,087 Total $ 199,123 $ 174,018 |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 11 – Segment Reporting The Company operates two primary business segments: Community Banking and Insurance Products and Services. Through the Community Banking business, the Company provides services to consumers and small businesses on the Eastern Shore of Maryland and Delaware through its 18-branch network and a loan production office in Delaware. Community banking activities include small business services, retail brokerage, trust services and consumer banking products and services. Loan products available to consumers include mortgage, home equity, automobile, marine, and installment loans, credit cards and other secured and unsecured personal lines of credit. Small business lending includes commercial mortgages, real estate development loans, equipment and operating loans, as well as secured and unsecured lines of credit, credit cards, accounts receivable financing arrangements, and merchant card services. Through the Insurance Products and Services business, the Company provides a full range of insurance products and services to businesses and consumers in the Company’s market areas. Products include property and casualty, life, marine, individual health and long-term care insurance. Pension and profit sharing plans and retirement plans for executives and employees are available to suit the needs of individual businesses. The following table includes selected financial information by business segments for the first nine months of 2016 and 2015. Community Insurance Products Parent Consolidated (Dollars in thousands) Banking and Services Company Total 2016 Interest Income $ 29,957 $ - $ 190 $ 30,147 Interest Expense (1,863) - - (1,863) Provision for credit losses (1,430) - - (1,430) Noninterest income 5,749 6,840 - 12,589 Noninterest expense (15,874) (5,205) (6,842) (27,921) Net intersegment (expense) income (6,027) (566) 6,593 - Income (loss) before taxes 10,512 1,069 (59) 11,522 Income tax (expense) benefit (3,973) (424) 18 (4,379) Net Income (loss) $ 6,539 $ 645 $ (41) $ 7,143 Total assets $ 1,129,427 $ 9,647 $ 18,792 $ 1,157,866 2015 Interest Income $ 28,670 $ - $ 154 $ 28,824 Interest Expense (2,592) - - (2,592) Provision for credit losses (1,600) - - (1,600) Noninterest income 5,237 6,541 - 11,778 Noninterest expense (16,133) (5,287) (6,980) (28,400) Net intersegment (expense) income (5,897) (624) 6,521 - Income (loss) before taxes 7,685 630 (305) 8,010 Income tax (expense) benefit (2,941) (241) 117 (3,065) Net Income (loss) $ 4,744 $ 389 $ (188) $ 4,945 Total assets $ 1,090,022 $ 9,222 $ 18,569 $ 1,117,813 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | The consolidated financial statements include the accounts of Shore Bancshares, Inc. and its subsidiaries with all significant intercompany transactions eliminated. The consolidated financial statements conform to accounting principles generally accepted in the United States of America (“GAAP”) and to prevailing practices within the banking industry. The accompanying interim financial statements are unaudited; however, in the opinion of management all adjustments necessary to present fairly the consolidated financial position at September 30, 2016, the consolidated results of operations and comprehensive income for the three and nine months ended September 30, 2016 and 2015, and changes in stockholders’ equity and cash flows for the nine months ended September 30, 2016 and 2015, have been included. All such adjustments are of a normal recurring nature. The amounts as of December 31, 2015 were derived from the 2015 audited financial statements. The results of operations for the three and nine months ended September 30, 2016 are not necessarily indicative of the results to be expected for any other interim period or for the full year. This Quarterly Report on Form 10-Q should be read in conjunction with the Annual Report of Shore Bancshares, Inc. on Form 10-K for the year ended December 31, 2015. For purposes of comparability, certain reclassifications have been made to amounts previously reported to conform with the current period presentation. When used in these notes, the term “the Company” refers to Shore Bancshares, Inc. and, unless the context requires otherwise, its consolidated subsidiaries. Effective July 1, 2016, the Company’s two bank subsidiaries, The Talbot Bank of Easton Maryland and CNB were consolidated into one bank known as Shore United Bank. In these notes to the consolidated financial statements and the management discussion and analysis section, the term “the Bank” refers to Shore United Bank, unless the context requires stipulating results of the individual banks before the consolidation occurred. |
Recent Accounting Standards | Recent Accounting Standards ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” amendment requires entities to recognize revenue to depict the transfer of promised goods or services to customers in amounts that reflect the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 is effective for periods beginning after Janu ary 1, 2017. ASU 2015-14, “ Revenue from Contracts with Customers (Topic 606) Deferral of the Effective Date ” – ASU 2015-14 amendments defer the effective date of Update 2014-09 for all entities by one year. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations” – ASU 2016-08 amendments are intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing” – ASU 2016-10 amendments clarify that contractual provisions that, explicitly or implicitly, require an entity to transfer control of additional goods or services to a customer should be distinguished from contractual provisions that, explicitly or implicitly, define the attributes of a single promised license. Attributes of a promised license define the scope of a customer’s right to use or right to access an entity’s intellectual property and, therefore, do not define whether the entity satisfies its performance obligation at a point in time or over time and do not create an obligation for the entity to transfer any additional rights to use or access its intellectual property. The Company is evaluating the impact that ASU 2014-09 and all amendments thereof will have on our consolidated financial statements. ASU 2014-12, "Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period." The amendments in the ASU require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718, Compensation - Stock Compensation , as it relates to awards with performance conditions that affect vesting to account for such awards. The performance target should not be reflected in estimating the grant-date fair value of the award. However, compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. The amendments in this ASU are effective for interim or annual reporting periods beginning after December 15, 2015; early adoption is permitted. Entities may apply the amendments in this ASU either: (1) prospectively to all awards granted or modified after the effective date; or (2) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. As of September 30, 2016, the Company has share-based payment awards that included performance targets that could be achieved after the requisite service period. The adoption of ASU No. 2014-12 did not have a material impact on the Company's Consolidated Financial Statements. ASU No. 2015-05, “Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” This ASU provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new guidance does not change the accounting for a customer’s accounting for service contracts. ASU No. 2015-05 is effective for interim and annual reporting periods beginning after December 15, 2015. The adoption of ASU No. 2015-05 did not have a material impact on the Company's Consolidated Financial Statements. ASU No. 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. This ASU, 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 t he financial statements and (vi i) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax ass et related to available-for-sale securities . ASU 2016-01 will be effective for us on January 1, 2018 and is not expected to have a significant impact on our financial statements. ASU No. 2016-02, “Leases (Topic 842).” This ASU stipulates that a lessee should recognize the assets and liabilities that arise from leases. All leases create an asset and a liability for the lessee in accordance with FASB Concepts Statement No. 6, Elements of Financial Statement , and, therefore, recognition of those lease assets and lease liabilities represents an improvement over previous GAAP, which did not require lease assets and lease liabilities to be recognized for most leases. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. When measuring assets and liabilities arising from a lease, a lessee (and a lessor) should include payments to be made in optional periods only if the lessee is reasonably certain to exercise an option to extend the lease or not to exercise an option to terminate the lease. Similarly, optional payments to purchase the underlying asset should be included in the measurement of lease assets and lease liabilities only if the lessee is reasonably certain to exercise that purchase option. In addition, also consistent with the previous leases guidance, a lessee (and a lessor) should exclude most variable lease payments in measuring lease assets and lease liabilities, other than those that depend on an index or a rate or are in substance fixed payments. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. The amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the amendments in this Update is permitted for all entities. The Company is evaluating the impact that ASU 2016-02 will have on our consolidated financial statements. ASU No. 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” This ASU simplifies the treatment and accounting for 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. For public business entities, the amendments in this update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any entity in any interim or annual period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The Company is evaluating the impact that ASU 2016-09 will have on our consolidated financial statements. ASU No. 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The amendments in this ASU will replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The amendments broaden the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually. The use of forecasted information incorporates more timely information in the estimate of expected credit losses, which will be more decision useful to users of the financial statements. It is not expected that an entity will need to create an economic forecast over the entire contractual life of long-dated financial assets. Therefore, the amendments will allow an entity to revert to historical loss information that is reflective of the contractual term (considering the effect of prepayments) for periods that are beyond the time frame for which the entity is able to develop reasonable and supportable forecasts. The amendments retain many of the disclosure amendments in Accounting Standards Update No. 2010-20, Receivables (Topic 310): Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses, updated to reflect the change from an incurred loss methodology to an expected credit loss methodology. Credit losses on available-for-sale debt securities should be measured in a manner similar to current GAAP. However, the amendments require that credit losses be presented as an allowance rather than a write-down. For public entities that are U.S. Securities and Exchange Commission (SEC) filers, the amendments are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All entities may adopt the amendments earlier as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company believes this ASU will have a significant impact on our consolidated financial statements and the method in which we calculate our credit losses, primarily on loans and available-for sale securities. At this time, the Company will continue to evaluate the impact and implementation of this standard to meet the effective date for consolidated financial statements beginning in 2019. ASU No. 2016-15, “Classification of Certain Cash Receipts and Cash Payments." Current GAAP is unclear or does not include specific guidance on how to classify certain transactions in the statement of cash flows. This ASU is intended to reduce diversity in practice in how eight particular transactions are classified in the statement of cash flows. ASU No. 2016-15 is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted, provided that all of the amendments are adopted in the same period. Entities will be required to apply the guidance retrospectively. If it is impracticable to apply the guidance retrospectively for an issue, the amendments related to that issue would be applied prospectively. As this guidance only affects the classification within the statement of cash flows, ASU No. 2016-15 is not expected to have a material impact on the Company's consolidated financial statements. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table provides information relating to the calculation of earnings per common share: For the Three Months Ended For the Nine Months Ended September 30, September 30, (In thousands, except per share data) 2016 2015 2016 2015 Net Income $ 2,411 $ 1,909 $ 7,143 $ 4,945 Weighted average shares outstanding - Basic 12,661 12,630 12,648 12,627 Dilutive effect of common stock equivalents 15 10 15 10 Weighted average shares outstanding - Diluted 12,676 12,640 12,663 12,637 Earnings per common share - Basic $ 0.19 $ 0.15 $ 0.56 $ 0.39 Earnings per common share - Diluted $ 0.19 $ 0.15 $ 0.56 $ 0.39 |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Investment Securities [Abstract] | |
Schedule of Available-for-Sale Securities Reconciliation | The following table provides information on the amortized cost and estimated fair values of investment securities. Gross Gross Estimated Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value Available-for-sale securities: September 30, 2016 U.S. Treasury $ - $ - $ - $ - U.S. Government agencies 32,423 118 111 32,430 Mortgage-backed 139,240 2,558 103 141,695 Equity 648 15 - 663 Total $ 172,311 $ 2,691 $ 214 $ 174,788 December 31, 2015 U.S. Treasury $ 5,078 $ 1 $ - $ 5,079 U.S. Government agencies 49,630 89 190 49,529 Mortgage-backed 156,939 639 662 156,916 Equity 637 4 - 641 Total $ 212,284 $ 733 $ 852 $ 212,165 Held-to-maturity securities: September 30, 2016 U.S. Government agencies $ 2,194 $ 10 $ - $ 2,204 States and political subdivisions 1,615 112 - 1,727 Total $ 3,809 $ 122 $ - $ 3,931 December 31, 2015 U.S. Government agencies $ 2,575 $ - $ 60 $ 2,515 States and political subdivisions 1,616 112 - 1,728 Total $ 4,191 $ 112 $ 60 $ 4,243 |
Available-For-Sale Securities, Continuous Unrealized Loss Position, Fair Value | The following tables provide information about gross unrealized losses and fair value by length of time that the individual securities have been in a continuous unrealized loss position at September 30, 2016 and December 31, 2015. Less than More than 12 Months 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses September 30, 2016 Available-for-sale securities: U.S. Government agencies $ 3,005 $ - $ - $ 111 $ 3,005 $ 111 Mortgage-backed 3,993 1 10,766 102 14,759 103 Total $ 6,998 $ 1 $ 10,766 $ 213 $ 17,764 $ 214 Less than More than 12 Months 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses December 31, 2015 Available-for-sale securities: U.S. Government agencies $ 18,981 $ 57 $ - $ 133 $ 18,981 $ 190 Mortgage-backed 43,881 328 21,263 334 65,144 662 Total $ 62,862 $ 385 $ 21,263 $ 467 $ 84,125 $ 852 Held-to-maturity securities: U.S. Government agencies $ - $ - $ 2,515 $ 60 $ 2,515 $ 60 |
Schedule of Securities Debt Maturities | The following table provides information on the amortized cost and estimated fair values of investment securities by maturity date at September 30, 2016. Available for sale Held to maturity Amortized Estimated Amortized Estimated (Dollars in thousands) Cost Fair Value Cost Fair Value Due in one year or less $ 13,025 $ 13,053 $ 210 $ 210 Due after one year through five years 17,011 17,078 501 541 Due after five years through ten years 7,432 7,507 402 441 Due after ten years 134,195 136,487 2,696 2,739 171,663 174,125 3,809 3,931 Equity securities 648 663 - - Total $ 172,311 $ 174,788 $ 3,809 $ 3,931 |
Loans and Allowance for Credi22
Loans and Allowance for Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Schedule of Financing Receivables | The following table provides information about the principal classes of the loan portfolio at September 30, 2016 and December 31, 2015. (Dollars in thousands) September 30, 2016 December 31, 2015 Construction $ 79,205 $ 85,632 Residential real estate 324,473 307,063 Commercial real estate 378,806 330,253 Commercial 70,920 64,911 Consumer 7,149 7,255 Total loans 860,553 795,114 Allowance for credit losses (8,614) (8,316) Total loans, net $ 851,939 $ 786,798 |
Allowance for Credit Losses on Financing Receivables | The following tables provide a summary of the activity in the allowance for credit losses allocated by loan class for the three months and nine months ended September 30, 2016 and 2015. Allocation of a portion of the allowance to one loan class does not preclude its availability to absorb losses in other loan classes. Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Unallocated Total For three months ended September 30, 2016 Allowance for credit losses: Beginning Balance $ 1,744 $ 2,035 $ 2,871 $ 677 $ 206 $ 825 $ 8,358 Charge-offs (9) (407) - (139) (13) - (568) Recoveries 8 121 10 79 1 - 219 Net charge-offs (1) (286) 10 (60) (12) - (349) Provision 348 431 (277) 309 (40) (166) 605 Ending Balance $ 2,091 $ 2,180 $ 2,604 $ 926 $ 154 $ 659 $ 8,614 Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Unallocated Total For three months ended September 30, 2015 Allowance for credit losses: Beginning Balance $ 1,852 $ 2,318 $ 2,616 $ 505 $ 168 $ 458 $ 7,917 Charge-offs (479) (26) - (136) - - (641) Recoveries 9 102 233 60 8 - 412 Net charge-offs (470) 76 233 (76) 8 - (229) Provision 460 (103) (38) 70 (20) 41 410 Ending Balance $ 1,842 $ 2,291 $ 2,811 $ 499 $ 156 $ 499 $ 8,098 Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Unallocated Total For nine months ended September 30, 2016 Allowance for credit losses: Beginning Balance $ 1,646 $ 2,181 $ 2,999 $ 558 $ 156 $ 776 $ 8,316 Charge-offs (263) (525) (503) (264) (23) - (1,578) Recoveries 24 188 20 201 13 - 446 Net charge-offs (239) (337) (483) (63) (10) - (1,132) Provision 684 336 88 431 8 (117) 1,430 Ending Balance $ 2,091 $ 2,180 $ 2,604 $ 926 $ 154 $ 659 $ 8,614 Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Unallocated Total For nine months ended September 30, 2015 Allowance for credit losses: Beginning Balance $ 1,303 $ 2,834 $ 2,379 $ 448 $ 229 $ 502 $ 7,695 Charge-offs (1,058) (283) (320) (285) (45) - (1,991) Recoveries 116 247 248 142 41 - 794 Net charge-offs (942) (36) (72) (143) (4) - (1,197) Provision 1,481 (507) 504 194 (69) (3) 1,600 Ending Balance $ 1,842 $ 2,291 $ 2,811 $ 499 $ 156 $ 499 $ 8,098 The following tables include impairment information relating to loans and the allowance for credit losses as of September 30, 2016 and December 31, 2015. Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Unallocated Total September 30, 2016 Loans individually evaluated for impairment $ 9,554 $ 7,928 $ 7,145 $ 36 $ 99 $ - $ 24,762 Loans collectively evaluated for impairment 69,651 316,545 371,661 70,884 7,050 - 835,791 Total loans $ 79,205 $ 324,473 $ 378,806 $ 70,920 $ 7,149 $ - $ 860,553 Allowance for credit losses allocated to: Loans individually evaluated for impairment $ 831 $ 179 $ 201 $ - $ - $ - $ 1,211 Loans collectively evaluated for impairment 1,260 2,001 2,403 926 154 659 7,403 Total loans $ 2,091 $ 2,180 $ 2,604 $ 926 $ 154 $ 659 $ 8,614 Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Unallocated Total December 31, 2015 Loans individually evaluated for impairment $ 11,598 $ 7,946 $ 7,762 $ 161 $ 121 $ - $ 27,588 Loans collectively evaluated for impairment 74,034 299,117 322,491 64,750 7,134 - 767,526 Total loans $ 85,632 $ 307,063 $ 330,253 $ 64,911 $ 7,255 $ - $ 795,114 Allowance for credit losses allocated to: Loans individually evaluated for impairment $ 619 $ 435 $ 340 $ - $ 7 $ - $ 1,401 Loans collectively evaluated for impairment 1,027 1,746 2,659 558 149 776 6,915 Total loans $ 1,646 $ 2,181 $ 2,999 $ 558 $ 156 $ 776 $ 8,316 |
Impaired Financing Receivables | The following tables provide information on impaired loans and any related allowance by loan class as of September 30, 2016 and December 31, 2015. The difference between the unpaid principal balance and the recorded investment is the amount of partial charge-offs that have been taken. Recorded Recorded Quarter-to-date Year-to-date Unpaid investment investment average average Interest principal with no with an Related recorded recorded income (Dollars in thousands) balance allowance allowance allowance investment investment recognized September 30, 2016 Impaired nonaccrual loans: Construction $ 10,943 $ 2,495 $ 2,860 $ 810 $ 5,361 $ 6,022 $ - Residential real estate 4,152 2,213 1,613 25 4,012 3,406 - Commercial real estate 2,822 1,974 200 112 2,177 2,265 - Commercial 48 36 - - 108 143 - Consumer 99 99 - - 99 109 - Total $ 18,064 $ 6,817 $ 4,673 $ 947 $ 11,757 $ 11,945 $ - Impaired accruing TDRs: Construction $ 4,199 $ 3,485 $ 714 $ 21 $ 4,213 $ 4,166 $ 74 Residential real estate 4,102 2,892 1,210 154 4,100 4,900 149 Commercial real estate 4,971 1,583 3,388 89 4,982 5,137 127 Commercial - - - - - - - Consumer - - - - - - - Total $ 13,272 $ 7,960 $ 5,312 $ 264 $ 13,295 $ 14,203 $ 350 Total impaired loans: Construction $ 15,142 $ 5,980 $ 3,574 $ 831 $ 9,574 $ 10,188 $ 74 Residential real estate 8,254 5,105 2,823 179 8,112 8,306 149 Commercial real estate 7,793 3,557 3,588 201 7,159 7,402 127 Commercial 48 36 - - 108 143 - Consumer 99 99 - - 99 109 - Total $ 31,336 $ 14,777 $ 9,985 $ 1,211 $ 25,052 $ 26,148 $ 350 September 30, 2015 Recorded Recorded Quarter-to-date Year-to-date Unpaid investment investment average average Interest principal with no with an Related recorded recorded income (Dollars in thousands) balance allowance allowance allowance investment investment recognized December 31, 2015 Impaired nonaccrual loans: Construction $ 11,850 $ 4,647 $ 2,882 $ 588 $ 8,025 $ 8,121 $ - Residential real estate 2,563 1,773 487 208 3,812 2,710 - Commercial real estate 2,988 1,813 209 9 2,137 2,511 - Commercial 175 161 - - 170 105 - Consumer 128 98 23 7 123 123 - Total $ 17,704 $ 8,492 $ 3,601 $ 812 $ 14,267 $ 13,570 $ - Impaired accruing TDRs: Construction $ 4,069 $ 3,266 $ 803 $ 31 $ 4,099 $ 4,076 $ 65 Residential real estate 5,686 2,380 3,306 227 7,520 7,084 250 Commercial real estate 5,740 1,702 4,038 331 5,687 6,065 194 Commercial - - - - 27 38 1 Consumer - - - - - - - Total $ 15,495 $ 7,348 $ 8,147 $ 589 $ 17,333 $ 17,263 $ 510 Total impaired loans: Construction $ 15,919 $ 7,913 $ 3,685 $ 619 $ 12,124 $ 12,197 $ 65 Residential real estate 8,249 4,153 3,793 435 11,332 9,794 250 Commercial real estate 8,728 3,515 4,247 340 7,824 8,576 194 Commercial 175 161 - - 197 143 1 Consumer 128 98 23 7 123 123 - Total $ 33,199 $ 15,840 $ 11,748 $ 1,401 $ 31,600 $ 30,833 $ 510 |
Troubled Debt Restructurings on Financing Receivables | The following tables provide a roll-forward for troubled debt restructurings as of September 30, 2016 and September 30, 2015. 1/1/2016 9/30/2016 TDR New Disbursements Charge Reclassifications/ TDR Related (Dollars in thousands) Balance TDRs (Payments) offs Transfer In/(Out) Payoffs Balance Allowance For nine months ended September 30, 2016 Accruing TDRs Construction $ 4,069 $ - $ 130 $ - $ - $ - $ 4,199 $ 21 Residential real estate 5,686 565 (375) - (1,595) (179) 4,102 154 Commercial real estate 5,740 495 (689) (117) (458) - 4,971 89 Commercial - - - - - - - - Consumer - - - - - - - - Total $ 15,495 $ 1,060 $ (934) $ (117) $ (2,053) $ (179) $ 13,272 $ 264 Nonaccrual TDRs Construction $ 4,960 $ 2,570 $ (2,012) $ (263) $ - $ - $ 5,255 $ 810 Residential real estate 445 - (294) - 1,595 - 1,746 25 Commercial real estate - - - (258) 458 - 200 112 Commercial - - - - - - - - Consumer 23 - (23) - - - - - Total $ 5,428 $ 2,570 $ (2,329) $ (521) $ 2,053 $ - $ 7,201 $ 947 Total $ 20,923 $ 3,630 $ (3,263) $ (638) $ - $ (179) $ 20,473 $ 1,211 1/1/2015 9/30/2015 TDR New Disbursements Charge Reclassifications/ TDR Related (Dollars in thousands) Balance TDRs (Payments) offs Transfer In/(Out) Payoffs Balance Allowance For nine months ended September 30, 2015 Accruing TDRs Construction $ 4,022 $ - $ (83) $ - $ 142 $ - $ 4,081 $ 33 Residential real estate 6,368 1,837 (206) - (1,324) - 6,675 207 Commercial real estate 6,237 - (562) - - - 5,675 180 Commercial 47 - (6) - (41) - - - Consumer - - - - - - - - Total $ 16,674 $ 1,837 $ (857) $ - $ (1,223) $ - $ 16,431 $ 420 Nonaccrual TDRs Construction $ 3,321 $ - $ (207) $ (1,058) $ 2,911 $ - $ 4,967 $ 643 Residential real estate 3,382 - (21) - (2,911) - 450 89 Commercial real estate 346 - (4) (40) (302) - - - Commercial - - - - - - - - Consumer 25 - (2) - - - 23 - Total $ 7,074 $ - $ (234) $ (1,098) $ (302) $ - $ 5,440 $ 732 Total $ 23,748 $ 1,837 $ (1,091) $ (1,098) $ (1,525) $ - $ 21,871 $ 1,152 The following tables provide information on loans that were modified and considered TDRs during the nine months ended September 30, 2016 and September 30, 2015. Premodification Postmodification outstanding outstanding Number of recorded recorded Related (Dollars in thousands) contracts investment investment allowance TDRs: For nine months ended September 30, 2016 Construction - $ - $ - $ - Residential real estate 3 667 699 - Commercial real estate 1 495 495 - Commercial - - - - Consumer - - - - Total 4 $ 1,162 $ 1,194 $ - For nine months ended September 30, 2015 Construction - $ - $ - $ - Residential real estate 10 1,835 1,837 19 Commercial real estate - - - - Commercial - - - - Consumer - - - - Total 10 $ 1,835 $ 1,837 $ 19 During the nine months ended September 30, 2016, there were four TDRs which were modified. The modifications to these TDRs consisted of reductions in principal, interest and rate as well as payment frequency for one of the TDRs. The following tables provide information on TDRs that defaulted during the nine months ended September 30, 2016 and September 30, 2015. Generally, a loan is considered in default when principal or interest is past due 90 days or more. Number of Recorded Related (Dollars in thousands) contracts investment allowance TDRs that subsequently defaulted: For nine months ended September 30, 2016 Construction 1 $ 241 $ - Residential real estate - - - Commercial real estate 2 375 - Commercial - - - Consumer - - - Total 3 $ 616 $ - For nine months ended September 30, 2015 Construction - $ - $ - Residential real estate - - - Commercial real estate 2 279 - Commercial - - - Consumer - - - Total 2 $ 279 $ - |
Financing Receivable Credit Quality Indicators | The following tables provide information on loan risk ratings as of September 30, 2016 and December 31, 2015. Special (Dollars in thousands) Pass/Performing Mention Substandard Doubtful Total September 30, 2016 Construction $ 66,025 $ 3,905 $ 9,275 $ - $ 79,205 Residential real estate 309,936 7,542 6,995 - 324,473 Commercial real estate 354,866 14,590 9,350 - 378,806 Commercial 69,869 761 290 - 70,920 Consumer 7,050 - 99 - 7,149 Total $ 807,746 $ 26,798 $ 26,009 $ - $ 860,553 Special (Dollars in thousands) Pass/Performing Mention Substandard Doubtful Total December 31, 2015 Construction $ 70,214 $ 3,903 $ 11,515 $ - $ 85,632 Residential real estate 290,857 8,837 7,369 - 307,063 Commercial real estate 302,438 18,699 9,116 - 330,253 Commercial 63,628 1,075 208 - 64,911 Consumer 7,107 26 122 - 7,255 Total $ 734,244 $ 32,540 $ 28,330 $ - $ 795,114 |
Past Due Financing Receivables | The following tables provide information on the aging of the loan portfolio as of September 30, 2016 and December 31, 2015. Accruing 30-59 days 60-89 days Greater than Total (Dollars in thousands) Current past due past due 90 days past due Nonaccrual Total September 30, 2016 Construction $ 73,850 $ - $ - $ - $ - $ 5,355 $ 79,205 Residential real estate 317,245 2,164 1,180 58 3,402 3,826 324,473 Commercial real estate 375,039 260 1,333 - 1,593 2,174 378,806 Commercial 70,840 27 12 5 44 36 70,920 Consumer 7,012 33 4 1 38 99 7,149 Total $ 843,986 $ 2,484 $ 2,529 $ 64 $ 5,077 $ 11,490 $ 860,553 Percent of total loans 98.1 % 0.3 % 0.3 % - % 0.6 % 1.3 % 100.0 % Accruing 30-59 days 60-89 days Greater than Total (Dollars in thousands) Current past due past due 90 days past due Nonaccrual Total December 31, 2015 Construction $ 78,082 $ 21 $ - $ - $ 21 $ 7,529 $ 85,632 Residential real estate 300,562 2,139 2,102 - 4,241 2,260 307,063 Commercial real estate 327,370 - 861 - 861 2,022 330,253 Commercial 64,670 49 31 - 80 161 64,911 Consumer 7,108 13 6 7 26 121 7,255 Total $ 777,792 $ 2,222 $ 3,000 $ 7 $ 5,229 $ 12,093 $ 795,114 Percent of total loans 97.8 % 0.3 % 0.4 % - % 0.7 % 1.5 % 100.0 % |
Other Assets (Tables)
Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Other Assets [Abstract] | |
Schedule of Other Assets | The Company had the following other assets at September 30, 2016 and December 31, 2015. (Dollars in thousands) September 30, 2016 December 31, 2015 Nonmarketable investment securities $ 1,650 $ 1,621 Accrued interest receivable 2,473 2,458 Deferred income taxes 7,077 12,132 Prepaid expenses 1,647 1,039 Other assets 7,438 6,670 Total $ 20,285 $ 23,920 |
Schedule of Deferred Tax Assets and Liabilities | The following table provides information on significant components of the Company’s deferred tax assets and liabilities as of September 30, 2016 and December 31, 2015. September 30, December 31, (Dollars in thousands) 2016 2015 Deferred tax assets: Allowance for credit losses $ 3,439 $ 3,316 Reserve for off-balance sheet commitments 120 121 Deferred loan fees and costs 1,173 1,155 Net operating loss carry forward 4,633 9,069 Write-downs of other real estate owned 330 308 Unrealized losses on available-for-sale securities - 48 Accrued expenses 864 946 AMT carryover 595 - Other 231 191 Total deferred tax assets 11,385 15,154 Deferred tax liabilities: Depreciation 192 271 Amortization on loans FMV adjustment 162 140 Amortization on deferred gain on branch sale 31 Purchase accounting adjustments 2,140 1,988 Deferred loan fees 182 Deferred capital gain on branch sale 408 411 Unrealized gains on available-for-sale securities 1,000 - Other 193 212 Total deferred tax liabilities 4,308 3,022 Net deferred tax assets $ 7,077 $ 12,132 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Other Liabilities [Abstract] | |
Schedule of Other Liabilities | The Company had the following other liabilities at September 30, 2016 and December 31, 2015. (Dollars in thousands) September 30, 2016 December 31, 2015 Accrued interest payable $ 74 $ 106 Other accounts payable 2,571 2,775 Deferred compensation liability 1,409 1,464 Other liabilities 1,682 1,695 Total $ 5,736 $ 6,040 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Stock-Based Compensation [Abstract] | |
Schedule of Stock-Based Compensation | The following tables provide information on stock-based compensation expense for the three and nine months ended September 30, 2016 and 2015. For the Three Months Ended For the Nine Months Ended September 30, September 30, (Dollars in thousands) 2016 2015 2016 2015 Stock-based compensation expense $ 85 $ 41 $ 262 $ 232 Proceeds from issuance of common stock 50 3 53 3 September 30, (Dollars in thousands) 2016 2015 Unrecognized stock-based compensation expense $ 132 $ 55 Weighted average period unrecognized expense is expected to be recognized 0.6 years 0.4 years |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | The following table summarizes restricted stock award activity for the Company under the 2006 Equity Plan and the 2016 Equity Plan for the nine months ended September 30, 2016 and 2015. Number of Weighted Average Grant September 30, 2016 Shares Date Fair Value Nonvested at beginning of period 12,488 $ 8.74 Granted 25,315 11.48 Vested (20,738) 9.83 Cancelled - - Nonvested at end of period 17,065 $ 11.46 Number of Weighted Average Grant September 30, 2015 Shares Date Fair Value Nonvested at beginning of period 14,251 $ 8.33 Granted 11,915 9.19 Vested (13,678) 8.90 Cancelled - - Nonvested at end of period 12,488 $ 8.74 |
Schedule of Share-based Compensation, Stock Options Activity | The following table summarizes stock option activity for the Company under the 2006 Equity Plan and the 2016 Equity Plan for the nine months ended September 30, 2016 and 2015. Number of Weighted Average Grant September 30, 2016 Shares Date Fair Value Outstanding at beginning of period 61,327 $ 8.05 Granted 12,443 11.12 Exercised (11,684) 6.64 Expired/Cancelled - - Outstanding at end of period 62,086 $ 8.29 Exercisable at end of period 58,756 $ 8.14 Number of Weighted Average Grant September 30, 2015 Shares Date Fair Value Outstanding at beginning of period 27,108 $ 6.64 Granted 34,219 9.18 Exercised - - Expired/Cancelled - - Outstanding at end of period 61,327 $ 8.05 Exercisable at end of period 27,108 $ 6.64 |
Schedule of Share-based Payment Award, Stock Option Valuation Assumptions | The following weighted average assumptions were used as inputs to the Black-Scholes valuation model for options granted in 2016 and 2015. 2016 2015 Dividend yield 0.73 % 0 % Expected volatility 38.60 % 32 % Risk-free interest rate 1.75 % 1.97 % Expected contract life (in years) 10 years 7 years |
Accumulated Other Comprehensi26
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Accumulated Other Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table provides information on the changes in the components of accumulated other comprehensive income (loss) for the nine months ended September 30, 2016 and 2015. Accumulated net unrealized holding Total accumulated gains (losses) on other available for sale comprehensive (Dollars in thousands) securities income(loss) Balance, December 31, 2015 $ (71) $ (71) Other comprehensive income 1,566 1,566 Reclassification of (gains) recognized (18) (18) Balance, September 30, 2016 $ 1,477 $ 1,477 Balance, December 31, 2014 $ 316 $ 316 Other comprehensive income 491 491 Balances, September 30, 2015 $ 807 $ 807 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Measurements[Abstract] | |
Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis | The tables below present the recorded amount of assets measured at fair value on a recurring basis at September 30, 2016 and December 31, 2015. No assets were transferred from one hierarchy level to another during the first nine months of 2016 or 2015. Significant Other Significant Quoted Observable Unobservable Prices Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) September 30, 2016 Securities available for sale: U.S. Treasury $ - $ - $ - $ - U.S. Government agencies 32,430 - 32,430 - Mortgage-backed 141,695 - 141,695 - Equity 663 - 663 - Total $ 174,788 $ - $ 174,788 $ - Significant Other Significant Quoted Observable Unobservable Prices Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) December 31, 2015 Securities available for sale: U.S. Treasury $ 5,079 $ 5,079 $ - $ - U.S. Government agencies 49,529 - 49,529 - Mortgage-backed 156,916 - 156,916 - Equity 641 - 641 - Total $ 212,165 $ 5,079 $ 207,086 $ - |
Fair Value of Assets Measured on Nonrecurring Basis | The tables below present the recorded amount of assets measured at fair value on a nonrecurring basis at September 30, 2016 and December 31, 2015. No assets were transferred from one hierarchy level to another during the first nine months of 2016 or 2015. Significant Other Significant Quoted Observable Unobservable Prices Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) September 30, 2016 Impaired loans Construction $ 8,723 $ - $ 8,723 $ - Residential real estate 7,749 - 7,749 - Commercial real estate 6,944 - 6,944 - Commercial 36 - 36 - Consumer 99 - 99 - Total impaired loans 23,551 - 23,551 - Other real estate owned 2,197 - 2,197 - Total assets measured at fair value on a nonrecurring basis $ 25,748 $ - $ 25,748 $ - Significant Other Significant Quoted Observable Unobservable Prices Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) December 31, 2015 Impaired loans Construction $ 10,979 $ - $ 10,979 $ - Residential real estate 7,511 - 7,511 - Commercial real estate 7,422 - 7,422 - Commercial 161 - 161 - Consumer 114 - 114 - Total impaired loans 26,187 - 26,187 - Other real estate owned 4,252 - 4,252 - Total assets measured at fair value on a nonrecurring basis $ 30,439 $ - $ 30,439 $ - |
Schedule of Estimated Fair Values of Financial Assets and Liabilities | The following table provides information on the estimated fair values of the Company’s financial assets and liabilities that are reported in the balance sheets at their carrying amounts. The financial assets and liabilities have been segregated by their classification level in the fair value hierarchy. September 30, 2016 December 31, 2015 Estimated Estimated Carrying Fair Carrying Fair (Dollars in thousands) Amount Value Amount Value Financial assets Level 1 inputs Cash and cash equivalents $ 75,125 $ 75,125 $ 73,811 $ 73,811 Level 2 inputs Investment securities held to maturity $ 3,809 $ 3,931 $ 4,191 $ 4,243 Loans, net 851,939 857,905 786,798 788,187 Financial liabilities Level 2 inputs Deposits $ 992,295 $ 954,257 $ 975,464 $ 922,161 Short-term borrowings 5,000 5,000 6,672 6,672 |
Financial Instruments with Of28
Financial Instruments with Off-Balance Sheet Risk (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Financial Instruments With Off Balance Sheet Risk [Abstract] | |
Schedule of Commitments Outstanding | The following table provides information on commitments outstanding at September 30, 2016 and December 31, 2015. (Dollars in thousands) September 30, 2016 December 31, 2015 Commitments to extend credit $ 192,442 $ 166,931 Letters of credit 6,681 7,087 Total $ 199,123 $ 174,018 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information by Segment | The following table includes selected financial information by business segments for the first nine months of 2016 and 2015. Community Insurance Products Parent Consolidated (Dollars in thousands) Banking and Services Company Total 2016 Interest Income $ 29,957 $ - $ 190 $ 30,147 Interest Expense (1,863) - - (1,863) Provision for credit losses (1,430) - - (1,430) Noninterest income 5,749 6,840 - 12,589 Noninterest expense (15,874) (5,205) (6,842) (27,921) Net intersegment (expense) income (6,027) (566) 6,593 - Income (loss) before taxes 10,512 1,069 (59) 11,522 Income tax (expense) benefit (3,973) (424) 18 (4,379) Net Income (loss) $ 6,539 $ 645 $ (41) $ 7,143 Total assets $ 1,129,427 $ 9,647 $ 18,792 $ 1,157,866 2015 Interest Income $ 28,670 $ - $ 154 $ 28,824 Interest Expense (2,592) - - (2,592) Provision for credit losses (1,600) - - (1,600) Noninterest income 5,237 6,541 - 11,778 Noninterest expense (16,133) (5,287) (6,980) (28,400) Net intersegment (expense) income (5,897) (624) 6,521 - Income (loss) before taxes 7,685 630 (305) 8,010 Income tax (expense) benefit (2,941) (241) 117 (3,065) Net Income (loss) $ 4,744 $ 389 $ (188) $ 4,945 Total assets $ 1,090,022 $ 9,222 $ 18,569 $ 1,117,813 |
Earnings Per Share (Calculation
Earnings Per Share (Calculation of Earnings Per Common Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net income | $ 2,411 | $ 1,909 | $ 7,143 | $ 4,945 |
Weighted average shares outstanding - Basic (in shares) | 12,661,000 | 12,630,000 | 12,648,000 | 12,627,000 |
Dilutive effect of common stock equivalents (in shares) | 15,000 | 10,000 | 15,000 | 10,000 |
Weighted average shares outstanding - Diluted (in shares) | 12,676,000 | 12,640,000 | 12,663,000 | 12,637,000 |
Earnings per common share - Basic (in dollars per share) | $ 0.19 | $ 0.15 | $ 0.56 | $ 0.39 |
Earnings per common share - Diluted (in dollars per share) | $ 0.19 | $ 0.15 | $ 0.56 | $ 0.39 |
Weighted average common stock excluded from calculation of diluted EPS | 0 | 0 | 0 | 0 |
Investment Securities (Amortize
Investment Securities (Amortized Cost and Estimated Fair Values of Investment Securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Available-for-sale securities, Amortized Cost | $ 172,311 | $ 212,284 |
Available-for-sale securities, Gross Unrealized Gains | 2,691 | 733 |
Available-for-sale securities, Gross Unrealized Losses | 214 | 852 |
Available-for-sale securities, Estimated Fair Value | 174,788 | 212,165 |
Held-to-maturity securities, Amortized Cost | 3,809 | 4,191 |
Held-to-maturity securities, Gross Unrealized Gains | 122 | 112 |
Held-to-maturity securities, Gross Unrealized Losses | 60 | |
Held-to-maturity securities, Estimated Fair Value | 3,931 | 4,243 |
Equity [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Available-for-sale securities, Amortized Cost | 648 | 637 |
Available-for-sale securities, Gross Unrealized Gains | 15 | 4 |
Available-for-sale securities, Estimated Fair Value | 663 | 641 |
U.S. Treasury [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Available-for-sale securities, Amortized Cost | 5,078 | |
Available-for-sale securities, Gross Unrealized Gains | 1 | |
Available-for-sale securities, Estimated Fair Value | 5,079 | |
U.S. Government Agencies [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Available-for-sale securities, Amortized Cost | 32,423 | 49,630 |
Available-for-sale securities, Gross Unrealized Gains | 118 | 89 |
Available-for-sale securities, Gross Unrealized Losses | 111 | 190 |
Available-for-sale securities, Estimated Fair Value | 32,430 | 49,529 |
Held-to-maturity securities, Amortized Cost | 2,194 | 2,575 |
Held-to-maturity securities, Gross Unrealized Gains | 10 | |
Held-to-maturity securities, Gross Unrealized Losses | 60 | |
Held-to-maturity securities, Estimated Fair Value | 2,204 | 2,515 |
States and Political Subdivisions [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Held-to-maturity securities, Amortized Cost | 1,615 | 1,616 |
Held-to-maturity securities, Gross Unrealized Gains | 112 | 112 |
Held-to-maturity securities, Estimated Fair Value | 1,727 | 1,728 |
Mortgage-backed [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Available-for-sale securities, Amortized Cost | 139,240 | 156,939 |
Available-for-sale securities, Gross Unrealized Gains | 2,558 | 639 |
Available-for-sale securities, Gross Unrealized Losses | 103 | 662 |
Available-for-sale securities, Estimated Fair Value | $ 141,695 | $ 156,916 |
Investment Securities (Gross Un
Investment Securities (Gross Unrealized Losses and Fair Value by Length of Continuous Unrealized Loss Position) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | $ 6,998 | $ 62,862 |
Available-for-sale securities, continuous unrealized loss position, less than 12 Months, unrealized losses | 1 | 385 |
Available-for-sale securities, continuous unrealized loss position, more than 12 Months, fair value | 10,766 | 21,263 |
Available-for-sale securities, continuous unrealized loss position, more than 12 Months, unrealized losses | 213 | 467 |
Available-for-sale securities, continuous unrealized loss position, fair value | 17,764 | 84,125 |
Available-for-sale securities, continuous unrealized loss position, unrealized losses | 214 | 852 |
U.S. Government Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 3,005 | 18,981 |
Available-for-sale securities, continuous unrealized loss position, less than 12 Months, unrealized losses | 57 | |
Available-for-sale securities, continuous unrealized loss position, more than 12 Months, unrealized losses | 111 | 133 |
Available-for-sale securities, continuous unrealized loss position, fair value | 3,005 | 18,981 |
Available-for-sale securities, continuous unrealized loss position, unrealized losses | 111 | 190 |
Held-to-maturity securities, continuous unrealized loss position, more than 12 Months, fair value | 2,515 | |
Held-to-maturity securities, continuous unrealized loss position, more than 12 Months, unrealized losses | 60 | |
Held-to-maturity securities, continuous unrealized loss position, fair value | 2,515 | |
Held-to-maturity securities, continuous unrealized loss position, unrealized losses | 60 | |
Mortgage-backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 3,993 | 43,881 |
Available-for-sale securities, continuous unrealized loss position, less than 12 Months, unrealized losses | 1 | 328 |
Available-for-sale securities, continuous unrealized loss position, more than 12 Months, fair value | 10,766 | 21,263 |
Available-for-sale securities, continuous unrealized loss position, more than 12 Months, unrealized losses | 102 | 334 |
Available-for-sale securities, continuous unrealized loss position, fair value | 14,759 | 65,144 |
Available-for-sale securities, continuous unrealized loss position, unrealized losses | $ 103 | $ 662 |
Investment Securities (Amorti33
Investment Securities (Amortized Cost and Estimated Fair Value by Maturity Date) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale, Amortized Cost, Due in one year or less | $ 13,025 | |
Available for sale, Amortized Cost, Due after one year through five years | 17,011 | |
Available for sale, Amortized Cost, Due after five years through ten years | 7,432 | |
Available for sale, Amortized Cost, Due after ten years | 134,195 | |
Available for sale, Amortized Cost, Debt maturities | 171,663 | |
Available-for-sale securities, Amortized Cost | 172,311 | $ 212,284 |
Available for sale, Estimated Fair Value, Due in one year or less | 13,053 | |
Available for sale, Estimated Fair Value, Due after one year through five years | 17,078 | |
Available for sale, Estimated Fair Value, Due after five years through ten years | 7,507 | |
Available for sale, Estimated Fair Value, Due after ten years | 136,487 | |
Available for sale, Estimated Fair Value, Debt maturities | 174,125 | |
Available for sale, Estimated Fair Value, Total | 174,788 | 212,165 |
Held to maturity securities, Amortized Cost, Due in one year or less | 210 | |
Held to maturity securities, Amortized Cost, Due after one year through five years | 501 | |
Held to maturity securities, Amortized Cost, Due after five years through ten years | 402 | |
Held to maturity securities, Amortized Cost, Due after ten years | 2,696 | |
Held to maturity securities, Amortized Cost, Debt maturities | 3,809 | |
Held to maturity securities, Amortized Cost, Total | 3,809 | 4,191 |
Held to maturity securities, Estimated Fair Value, Due in one year or less | 210 | |
Held to maturity securities, Estimated Fair Value, Due after one year through five years | 541 | |
Held to maturity securities, Estimated Fair Value, Due after five years through ten years | 441 | |
Held to maturity securities, Estimated Fair Value, Due after ten years | 2,739 | |
Held to maturity securities, Estimated Fair Value, Debt maturities | 3,931 | |
Held-to-maturity securities, Estimated Fair Value, Total | 3,931 | 4,243 |
Equity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Amortized Cost | 648 | 637 |
Available for sale, Estimated Fair Value, Total | $ 663 | $ 641 |
Loans and Allowance for Credi34
Loans and Allowance for Credit Losses (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Mortgage loans in process of foreclosure, amount | $ 990,000 | |
Residential Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Mortgage loans in process of foreclosure, amount | $ 581 |
Loans and Allowance for Credi35
Loans and Allowance for Credit Losses (Loans by Class of Loan Portfolio) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | $ 860,553 | $ 795,114 |
Allowance for credit losses | (8,614) | (8,316) |
Loans, net | 851,939 | 786,798 |
Commercial and Residential Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 79,205 | 85,632 |
Allowance for credit losses | (2,018) | (1,646) |
Residential Portfolio Segment [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 324,473 | 307,063 |
Allowance for credit losses | (2,080) | (2,181) |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 378,806 | 330,253 |
Allowance for credit losses | (3,187) | (2,999) |
Commercial Portfolio Segment [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 70,920 | 64,911 |
Allowance for credit losses | (917) | (558) |
Consumer Portfolio Segment [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 7,149 | 7,255 |
Allowance for credit losses | $ (154) | $ (156) |
Loans and Allowance for Credi36
Loans and Allowance for Credit Losses (Allowance for Credit Losses on Loans Receivable with Impairment) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | $ 24,762 | $ 27,588 |
Loans collectively evaluated for impairment | 835,791 | 767,526 |
Total loans | 860,553 | 795,114 |
Allowance for credit losses allocated to: | ||
Loans individually evaluated for impairment | 1,211 | 1,401 |
Loans collectively evaluated for impairment | 7,403 | 6,915 |
Loans and Leases Receivable, Allowance, Total | 8,614 | 8,316 |
Commercial and Residential Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 9,554 | 11,598 |
Loans collectively evaluated for impairment | 69,651 | 74,034 |
Total loans | 79,205 | 85,632 |
Allowance for credit losses allocated to: | ||
Loans individually evaluated for impairment | 831 | 619 |
Loans collectively evaluated for impairment | 1,187 | 1,027 |
Loans and Leases Receivable, Allowance, Total | 2,018 | 1,646 |
Residential Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 7,928 | 7,946 |
Loans collectively evaluated for impairment | 316,545 | 299,117 |
Total loans | 324,473 | 307,063 |
Allowance for credit losses allocated to: | ||
Loans individually evaluated for impairment | 179 | 435 |
Loans collectively evaluated for impairment | 1,901 | 1,746 |
Loans and Leases Receivable, Allowance, Total | 2,080 | 2,181 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 7,145 | 7,762 |
Loans collectively evaluated for impairment | 371,661 | 322,491 |
Total loans | 378,806 | 330,253 |
Allowance for credit losses allocated to: | ||
Loans individually evaluated for impairment | 201 | 340 |
Loans collectively evaluated for impairment | 2,986 | 2,659 |
Loans and Leases Receivable, Allowance, Total | 3,187 | 2,999 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 36 | 161 |
Loans collectively evaluated for impairment | 70,884 | 64,750 |
Total loans | 70,920 | 64,911 |
Allowance for credit losses allocated to: | ||
Loans collectively evaluated for impairment | 917 | 558 |
Loans and Leases Receivable, Allowance, Total | 917 | 558 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 99 | 121 |
Loans collectively evaluated for impairment | 7,050 | 7,134 |
Total loans | 7,149 | 7,255 |
Allowance for credit losses allocated to: | ||
Loans individually evaluated for impairment | 7 | |
Loans collectively evaluated for impairment | 154 | 149 |
Loans and Leases Receivable, Allowance, Total | 154 | 156 |
Unallocated Financing Receivables [Member] | ||
Allowance for credit losses allocated to: | ||
Loans collectively evaluated for impairment | 258 | 776 |
Loans and Leases Receivable, Allowance, Total | $ 258 | $ 776 |
Loans and Allowance for Credi37
Loans and Allowance for Credit Losses (Impaired Financing Receivables by Loan Class) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Unpaid principal balance | $ 31,336 | $ 31,336 | $ 33,199 | ||
Recorded investment with no allowance | 14,777 | 14,777 | 15,840 | ||
Recorded investment with an allowance | 9,985 | 9,985 | 11,748 | ||
Related allowance | 1,211 | 1,211 | 1,401 | ||
Average recorded investment | 25,052 | $ 31,600 | 26,148 | $ 30,833 | |
Interest income recognized | 350 | 510 | |||
Impaired Nonaccrual Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Unpaid principal balance | 18,064 | 18,064 | 17,704 | ||
Recorded investment with no allowance | 6,817 | 6,817 | 8,492 | ||
Recorded investment with an allowance | 4,673 | 4,673 | 3,601 | ||
Related allowance | 947 | 947 | 812 | ||
Average recorded investment | 11,757 | 14,267 | 11,945 | 13,570 | |
Impaired Accruing Restructured Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Unpaid principal balance | 13,272 | 13,272 | 15,495 | ||
Recorded investment with no allowance | 7,960 | 7,960 | 7,348 | ||
Recorded investment with an allowance | 5,312 | 5,312 | 8,147 | ||
Related allowance | 264 | 264 | 589 | ||
Average recorded investment | 13,295 | 17,333 | 14,203 | 17,263 | |
Interest income recognized | 350 | 510 | |||
Residential Portfolio Segment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Unpaid principal balance | 8,254 | 8,254 | 8,249 | ||
Recorded investment with no allowance | 5,105 | 5,105 | 4,153 | ||
Recorded investment with an allowance | 2,823 | 2,823 | 3,793 | ||
Related allowance | 179 | 179 | 435 | ||
Average recorded investment | 8,112 | 11,332 | 8,306 | 9,794 | |
Interest income recognized | 149 | 250 | |||
Residential Portfolio Segment [Member] | Impaired Nonaccrual Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Unpaid principal balance | 4,152 | 4,152 | 2,563 | ||
Recorded investment with no allowance | 2,213 | 2,213 | 1,773 | ||
Recorded investment with an allowance | 1,613 | 1,613 | 487 | ||
Related allowance | 25 | 25 | 208 | ||
Average recorded investment | 4,012 | 3,812 | 3,406 | 2,710 | |
Residential Portfolio Segment [Member] | Impaired Accruing Restructured Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Unpaid principal balance | 4,102 | 4,102 | 5,686 | ||
Recorded investment with no allowance | 2,892 | 2,892 | 2,380 | ||
Recorded investment with an allowance | 1,210 | 1,210 | 3,306 | ||
Related allowance | 154 | 154 | 227 | ||
Average recorded investment | 4,100 | 7,520 | 4,900 | 7,084 | |
Interest income recognized | 149 | 250 | |||
Commercial Real Estate Portfolio Segment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Unpaid principal balance | 7,793 | 7,793 | 8,728 | ||
Recorded investment with no allowance | 3,557 | 3,557 | 3,515 | ||
Recorded investment with an allowance | 3,588 | 3,588 | 4,247 | ||
Related allowance | 201 | 201 | 340 | ||
Average recorded investment | 7,159 | 7,824 | 7,402 | 8,576 | |
Interest income recognized | 127 | 194 | |||
Commercial Real Estate Portfolio Segment [Member] | Impaired Nonaccrual Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Unpaid principal balance | 2,822 | 2,822 | 2,988 | ||
Recorded investment with no allowance | 1,974 | 1,974 | 1,813 | ||
Recorded investment with an allowance | 200 | 200 | 209 | ||
Related allowance | 112 | 112 | 9 | ||
Average recorded investment | 2,177 | 2,137 | 2,265 | 2,511 | |
Commercial Real Estate Portfolio Segment [Member] | Impaired Accruing Restructured Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Unpaid principal balance | 4,971 | 4,971 | 5,740 | ||
Recorded investment with no allowance | 1,583 | 1,583 | 1,702 | ||
Recorded investment with an allowance | 3,388 | 3,388 | 4,038 | ||
Related allowance | 89 | 89 | 331 | ||
Average recorded investment | 4,982 | 5,687 | 5,137 | 6,065 | |
Interest income recognized | 127 | 194 | |||
Commercial Portfolio Segment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Unpaid principal balance | 48 | 48 | 175 | ||
Recorded investment with no allowance | 36 | 36 | 161 | ||
Average recorded investment | 108 | 197 | 143 | 143 | |
Interest income recognized | 1 | ||||
Commercial Portfolio Segment [Member] | Impaired Nonaccrual Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Unpaid principal balance | 48 | 48 | 175 | ||
Recorded investment with no allowance | 36 | 36 | 161 | ||
Average recorded investment | 108 | 170 | 143 | 105 | |
Commercial Portfolio Segment [Member] | Impaired Accruing Restructured Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Unpaid principal balance | |||||
Recorded investment with no allowance | |||||
Recorded investment with an allowance | |||||
Related allowance | |||||
Average recorded investment | 27 | 38 | |||
Interest income recognized | 1 | ||||
Consumer Portfolio Segment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Unpaid principal balance | 99 | 99 | 128 | ||
Recorded investment with no allowance | 99 | 99 | 98 | ||
Recorded investment with an allowance | 23 | ||||
Related allowance | 7 | ||||
Average recorded investment | 99 | 123 | 109 | 123 | |
Consumer Portfolio Segment [Member] | Impaired Nonaccrual Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Unpaid principal balance | 99 | 99 | 128 | ||
Recorded investment with no allowance | 99 | 99 | 98 | ||
Recorded investment with an allowance | 23 | ||||
Related allowance | 7 | ||||
Average recorded investment | 99 | 123 | 109 | 123 | |
Consumer Portfolio Segment [Member] | Impaired Accruing Restructured Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Unpaid principal balance | |||||
Recorded investment with no allowance | |||||
Recorded investment with an allowance | |||||
Related allowance | |||||
Average recorded investment | |||||
Interest income recognized | |||||
Construction Loans [Member] | Commercial and Residential Real Estate Portfolio Segment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Unpaid principal balance | 15,142 | 15,142 | 15,919 | ||
Recorded investment with no allowance | 5,980 | 5,980 | 7,913 | ||
Recorded investment with an allowance | 3,574 | 3,574 | 3,685 | ||
Related allowance | 831 | 831 | 619 | ||
Average recorded investment | 9,574 | 12,124 | 10,188 | 12,197 | |
Interest income recognized | 74 | 65 | |||
Construction Loans [Member] | Commercial and Residential Real Estate Portfolio Segment [Member] | Impaired Nonaccrual Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Unpaid principal balance | 10,943 | 10,943 | 11,850 | ||
Recorded investment with no allowance | 2,495 | 2,495 | 4,647 | ||
Recorded investment with an allowance | 2,860 | 2,860 | 2,882 | ||
Related allowance | 810 | 810 | 588 | ||
Average recorded investment | 5,361 | 8,025 | 6,022 | 8,121 | |
Construction Loans [Member] | Commercial and Residential Real Estate Portfolio Segment [Member] | Impaired Accruing Restructured Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Unpaid principal balance | 4,199 | 4,199 | 4,069 | ||
Recorded investment with no allowance | 3,485 | 3,485 | 3,266 | ||
Recorded investment with an allowance | 714 | 714 | 803 | ||
Related allowance | 21 | 21 | $ 31 | ||
Average recorded investment | $ 4,213 | $ 4,099 | 4,166 | 4,076 | |
Interest income recognized | $ 74 | $ 65 |
Loans and Allowance for Credi38
Loans and Allowance for Credit Losses (Rollforward of TDRs) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR beginning balance | $ 20,923 | $ 23,748 |
New TDRs | 3,630 | 1,837 |
Disbursements (Payments) | (3,263) | (1,091) |
Charge offs | (638) | (1,098) |
Reclassifications/Transfer In/(Out) | (1,525) | |
Payoffs | (179) | |
TDR ending balance | 20,473 | 21,871 |
TDR, Related Allowance | 1,211 | 1,152 |
Impaired Nonaccrual Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR beginning balance | 5,428 | 7,074 |
New TDRs | 2,570 | |
Disbursements (Payments) | (2,329) | (234) |
Charge offs | (521) | (1,098) |
Reclassifications/Transfer In/(Out) | 2,053 | (302) |
TDR ending balance | 7,201 | 5,440 |
TDR, Related Allowance | 947 | 732 |
Impaired Nonaccrual Loans [Member] | Residential Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR beginning balance | 445 | 3,382 |
Disbursements (Payments) | (294) | (21) |
Reclassifications/Transfer In/(Out) | 1,595 | (2,911) |
TDR ending balance | 1,746 | 450 |
TDR, Related Allowance | 25 | 89 |
Impaired Nonaccrual Loans [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR beginning balance | 346 | |
Disbursements (Payments) | (4) | |
Charge offs | (258) | (40) |
Reclassifications/Transfer In/(Out) | 458 | (302) |
TDR ending balance | 200 | |
TDR, Related Allowance | 112 | |
Impaired Nonaccrual Loans [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR beginning balance | 23 | 25 |
Disbursements (Payments) | (23) | (2) |
TDR ending balance | 23 | |
Impaired Nonaccrual Loans [Member] | Construction Loans [Member] | Commercial and Residential Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR beginning balance | 4,960 | 3,321 |
New TDRs | 2,570 | |
Disbursements (Payments) | (2,012) | (207) |
Charge offs | (263) | (1,058) |
Reclassifications/Transfer In/(Out) | 2,911 | |
TDR ending balance | 5,255 | 4,967 |
TDR, Related Allowance | 810 | 643 |
Impaired Accruing Restructured Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR beginning balance | 15,495 | 16,674 |
New TDRs | 1,060 | 1,837 |
Disbursements (Payments) | (934) | (857) |
Charge offs | (117) | |
Reclassifications/Transfer In/(Out) | (2,053) | (1,223) |
Payoffs | (179) | |
TDR ending balance | 13,272 | 16,431 |
TDR, Related Allowance | 264 | 420 |
Impaired Accruing Restructured Loans [Member] | Residential Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR beginning balance | 5,686 | 6,368 |
New TDRs | 565 | 1,837 |
Disbursements (Payments) | (375) | (206) |
Reclassifications/Transfer In/(Out) | (1,595) | (1,324) |
Payoffs | (179) | |
TDR ending balance | 4,102 | 6,675 |
TDR, Related Allowance | 154 | 207 |
Impaired Accruing Restructured Loans [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR beginning balance | 5,740 | 6,237 |
New TDRs | 495 | |
Disbursements (Payments) | (689) | (562) |
Charge offs | (117) | |
Reclassifications/Transfer In/(Out) | (458) | |
TDR ending balance | 4,971 | 5,675 |
TDR, Related Allowance | 89 | 180 |
Impaired Accruing Restructured Loans [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR beginning balance | 47 | |
Disbursements (Payments) | (6) | |
Reclassifications/Transfer In/(Out) | (41) | |
Impaired Accruing Restructured Loans [Member] | Construction Loans [Member] | Commercial and Residential Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR beginning balance | 4,069 | 4,022 |
Disbursements (Payments) | 130 | (83) |
Reclassifications/Transfer In/(Out) | 142 | |
TDR ending balance | 4,199 | 4,081 |
TDR, Related Allowance | $ 21 | $ 33 |
Loans and Allowance for Credi39
Loans and Allowance for Credit Losses (Troubled Debt Restructurings on Financing Receivables) (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016USD ($)contract | Sep. 30, 2015USD ($)contract | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Number of contracts | contract | 4 | 10 |
Premodification outstanding recorded investment | $ 1,162 | $ 1,835 |
Postmodification outstanding recorded investment | $ 1,194 | 1,837 |
Related allowance | $ 19 | |
Residential Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Number of contracts | contract | 3 | 10 |
Premodification outstanding recorded investment | $ 667 | $ 1,835 |
Postmodification outstanding recorded investment | $ 699 | 1,837 |
Related allowance | $ 19 | |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Number of contracts | contract | 1 | |
Premodification outstanding recorded investment | $ 495 | |
Postmodification outstanding recorded investment | $ 495 |
Loans and Allowance for Credi40
Loans and Allowance for Credit Losses (Troubled Debt Restructurings With Subsequent Default) (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016USD ($)contract | Sep. 30, 2015USD ($)contract | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Number of contracts | contract | 3 | 2 |
Recorded investment | $ | $ 616 | $ 279 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Number of contracts | contract | 2 | 2 |
Recorded investment | $ | $ 375 | $ 279 |
Construction Loans [Member] | Commercial and Residential Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Number of contracts | contract | 1 | |
Recorded investment | $ | $ 241 |
Loans and Allowance for Credi41
Loans and Allowance for Credit Losses (Financing Receivable Credit Quality Indicators) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | $ 860,553 | $ 795,114 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 807,746 | 734,244 |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 26,798 | 32,540 |
Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 26,009 | 28,330 |
Commercial and Residential Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 79,205 | 85,632 |
Commercial and Residential Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 66,025 | 70,214 |
Commercial and Residential Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 3,905 | 3,903 |
Commercial and Residential Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 9,275 | 11,515 |
Residential Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 324,473 | 307,063 |
Residential Portfolio Segment [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 309,936 | 290,857 |
Residential Portfolio Segment [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 7,542 | 8,837 |
Residential Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 6,995 | 7,369 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 378,806 | 330,253 |
Commercial Real Estate Portfolio Segment [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 354,866 | 302,438 |
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 14,590 | 18,699 |
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 9,350 | 9,116 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 70,920 | 64,911 |
Commercial Portfolio Segment [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 69,869 | 63,628 |
Commercial Portfolio Segment [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 761 | 1,075 |
Commercial Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 290 | 208 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 7,149 | 7,255 |
Consumer Portfolio Segment [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 7,050 | 7,107 |
Consumer Portfolio Segment [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 26 | |
Consumer Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | $ 99 | $ 122 |
Loans and Allowance for Credi42
Loans and Allowance for Credit Losses (Aging of Past Due Financing Receivables) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 843,986 | $ 777,792 |
Total past due | 5,077 | 5,229 |
Nonaccrual | 11,490 | 12,093 |
Total loans | $ 860,553 | $ 795,114 |
Percent of total loans, Current | 98.10% | 97.80% |
Percent of total loans, Total past due | 0.60% | 0.70% |
Percent of total loans, Nonaccrual | 1.30% | 1.50% |
Percent of total loans, Total loans | 100.00% | 100.00% |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | $ 2,484 | $ 2,222 |
Percent of total loans, Total past due | 0.30% | 0.30% |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | $ 2,529 | $ 3,000 |
Percent of total loans, Total past due | 0.30% | 0.40% |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | $ 64 | $ 7 |
Residential Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 317,245 | 300,562 |
Total past due | 3,402 | 4,241 |
Nonaccrual | 3,826 | 2,260 |
Total loans | 324,473 | 307,063 |
Residential Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 2,164 | 2,139 |
Residential Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 1,180 | 2,102 |
Residential Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 58 | |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 375,039 | 327,370 |
Total past due | 1,593 | 861 |
Nonaccrual | 2,174 | 2,022 |
Total loans | 378,806 | 330,253 |
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 260 | |
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 1,333 | 861 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 70,840 | 64,670 |
Total past due | 44 | 80 |
Nonaccrual | 36 | 161 |
Total loans | 70,920 | 64,911 |
Commercial Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 27 | 49 |
Commercial Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 12 | 31 |
Commercial Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 5 | |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 7,012 | 7,108 |
Total past due | 38 | 26 |
Nonaccrual | 99 | 121 |
Total loans | 7,149 | 7,255 |
Consumer Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 33 | 13 |
Consumer Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 4 | 6 |
Consumer Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 1 | 7 |
Construction Loans [Member] | Commercial and Residential Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 73,850 | 78,082 |
Total past due | 21 | |
Nonaccrual | 5,355 | 7,529 |
Total loans | $ 79,205 | 85,632 |
Construction Loans [Member] | Commercial and Residential Real Estate Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | $ 21 |
Loans and Allowance for Credi43
Loans and Allowance for Credit Losses (Allowance for Credit Losses on Financing Receivables) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Allowance for credit losses: | ||||
Beginning balance | $ 8,358 | $ 7,917 | $ 8,316 | $ 7,695 |
Charge-offs | (568) | (641) | (1,578) | (1,991) |
Recoveries | 219 | 412 | 446 | 794 |
Net charge-offs | (349) | (229) | (1,132) | (1,197) |
Provision | 605 | 410 | 1,430 | 1,600 |
Ending balance | 8,614 | 8,098 | 8,614 | 8,098 |
Commercial and Residential Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||||
Allowance for credit losses: | ||||
Beginning balance | 1,744 | 1,852 | 1,646 | 1,303 |
Charge-offs | (9) | (479) | (263) | (1,058) |
Recoveries | 8 | 9 | 24 | 116 |
Net charge-offs | (1) | (470) | (239) | (942) |
Provision | 275 | 460 | 611 | 1,481 |
Ending balance | 2,018 | 1,842 | 2,018 | 1,842 |
Residential Portfolio Segment [Member] | ||||
Allowance for credit losses: | ||||
Beginning balance | 2,035 | 2,318 | 2,181 | 2,834 |
Charge-offs | (407) | (26) | (525) | (283) |
Recoveries | 121 | 102 | 188 | 247 |
Net charge-offs | (286) | 76 | (337) | (36) |
Provision | 331 | (103) | 236 | (507) |
Ending balance | 2,080 | 2,291 | 2,080 | 2,291 |
Commercial Real Estate Portfolio Segment [Member] | ||||
Allowance for credit losses: | ||||
Beginning balance | 2,871 | 2,616 | 2,999 | 2,379 |
Charge-offs | (503) | (320) | ||
Recoveries | 10 | 233 | 20 | 248 |
Net charge-offs | 10 | 233 | (483) | (72) |
Provision | 306 | (38) | 671 | 504 |
Ending balance | 3,187 | 2,811 | 3,187 | 2,811 |
Commercial Portfolio Segment [Member] | ||||
Allowance for credit losses: | ||||
Beginning balance | 677 | 505 | 558 | 448 |
Charge-offs | (139) | (136) | (264) | (285) |
Recoveries | 79 | 60 | 201 | 142 |
Net charge-offs | (60) | (76) | (63) | (143) |
Provision | 300 | 70 | 422 | 194 |
Ending balance | 917 | 499 | 917 | 499 |
Consumer Portfolio Segment [Member] | ||||
Allowance for credit losses: | ||||
Beginning balance | 206 | 168 | 156 | 229 |
Charge-offs | (13) | (23) | (45) | |
Recoveries | 1 | 8 | 13 | 41 |
Net charge-offs | (12) | 8 | (10) | (4) |
Provision | (40) | (20) | 8 | (69) |
Ending balance | 154 | 156 | 154 | 156 |
Unallocated Financing Receivables [Member] | ||||
Allowance for credit losses: | ||||
Beginning balance | 825 | 458 | 776 | 502 |
Provision | (567) | 41 | (518) | (3) |
Ending balance | $ 258 | $ 499 | $ 258 | $ 499 |
Other Assets (Narrative) (Detai
Other Assets (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Income (loss) from continuing operations before equity method investments, income taxes, extraordinary items, noncontrolling interest, total | $ 3,843 | $ 3,109 | $ 11,522 | $ 8,010 | |
Operating loss carryforwards, valuation allowance | $ 0 | $ 0 | $ 0 | ||
Operating loss carryforwards expiration year | 20 years | 18 years |
Other Assets (Schedule of Other
Other Assets (Schedule of Other Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Other Assets [Abstract] | ||
Nonmarketable investment securities | $ 1,650 | $ 1,621 |
Accrued interest receivable | 2,473 | 2,458 |
Deferred income taxes | 7,077 | 12,132 |
Prepaid expenses | 1,647 | 1,039 |
Other assets | 7,438 | 6,670 |
Total | $ 20,285 | $ 23,920 |
Other Assets (Schedule of Defer
Other Assets (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Allowance for credit losses | $ 3,439 | $ 3,316 |
Reserve for off-balance sheet commitments | 120 | 121 |
Deferred loan fees and costs | 1,173 | 1,155 |
Net operating loss carry forward | 4,633 | 9,069 |
Write-downs of other real estate owned | 330 | 308 |
Unrealized losses on available-for-sale securities | 48 | |
Accrued expenses | 864 | 946 |
AMT carryover | 595 | |
Other | 231 | 191 |
Total deferred tax assets | 11,385 | 15,154 |
Deferred tax liabilities: | ||
Depreciation | 192 | 271 |
Amortization on loans FMV adjustment | 162 | 140 |
Amortization on deferred gain on branch sale | 31 | |
Purchase accounting adjustments | 2,140 | 1,988 |
Deferred loan fees | 182 | |
Deferred capital gain on branch sale | 408 | 411 |
Unrealized gains on available-for-sale securities | 1,000 | |
Other | 193 | 212 |
Total deferred tax liabilities | 4,308 | 3,022 |
Net deferred tax assets | $ 7,077 | $ 12,132 |
Other Liabilities (Schedule of
Other Liabilities (Schedule of Other Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Other Liabilities [Abstract] | ||
Accrued interest payable | $ 74 | $ 106 |
Other accounts payable | 2,571 | 2,775 |
Deferred compensation liability | 1,409 | 1,464 |
Other liabilities | 1,682 | 1,695 |
Total | $ 5,736 | $ 6,040 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Jul. 28, 2016 | Feb. 08, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options, Weighted average remaining contractual term | 5 years 1 month 6 days | |||
Equity Plan 2016 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award description | The Company may issue shares of common stock or grant other equity-based awards pursuant to the 2016 Equity Plan. Stock-based awards granted to date generally are time-based, vest in equal installments on each anniversary of the grant date and range over a one- to five-year period of time, and, in the case of stock options, expire 10 years from the grant date | |||
Other than options, granted, fair value | $ 204 | $ 122 | ||
Share price | $ 11.78 | |||
Equity Plan 2016 [Member] | Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award expiration | 10 years | |||
Award method used for valuation | Black-Scholes valuation model | |||
Options, granted, weighted average fair value | $ 5.03 | |||
Options, outstanding intrinsic value | $ 253 | |||
Options, exercised, intrinsic value | 21 | |||
Options, exercisable, intrinsic value | $ 232 | |||
Equity Plan 2016 [Member] | Performance Shares and Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
Award description | a performance equity incentive award program, known as the "Long-term incentive plan" allows participating officers of the Company to earn incentive awards of performance share/restricted stock units if certain pre-determined targets are achieved at the end of a three-year performance cycle | |||
Maximum [Member] | Equity Plan 2016 [Member] | Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 5 years | |||
Share price | $ 11.88 | |||
Minimum [Member] | Equity Plan 2016 [Member] | Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 1 year | |||
Share price | $ 11.35 |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule of Stock-Based Compensation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Stock-Based Compensation [Abstract] | ||||
Stock-based compensation expense | $ 85 | $ 41 | $ 262 | $ 232 |
Proceeds from issuance of common stock | 50 | 3 | 53 | 3 |
Unrecognized stock-based compensation expense | $ 132 | $ 55 | $ 132 | $ 55 |
Weighted average period unrecognized expense is expected to be recognized | 7 months 6 days | 4 months 24 days |
Stock-Based Compensation (Sch50
Stock-Based Compensation (Schedule of Stock-Based Compensation - RSU Award Activity) (Details) - Restricted Stock [Member] - $ / shares | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Nonvested at beginning of period (in shares) | 12,488 | 14,251 |
Number of Shares, Granted (in shares) | 25,315 | 11,915 |
Number of Shares, Vested (in shares) | (20,738) | (13,678) |
Number of Shares, Nonvested at end of period (in shares) | 17,065 | 12,488 |
Weighted Average Grant Date Fair Value, Nonvested at beginning of period (in dollars per share) | $ 8.74 | $ 8.33 |
Weighted Average Grant Date Fair Value, Granted (in dollars per share) | 11.48 | 9.19 |
Weighted Average Grant Date Fair Value, Vested (in dollars per share) | 9.83 | 8.90 |
Weighted Average Grant Date Fair Value, Nonvested at end of period (in dollars per share) | $ 11.46 | $ 8.74 |
Stock-Based Compensation (Sch51
Stock-Based Compensation (Schedule of Stock Option Activity) (Details) - Equity Option [Member] - $ / shares | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares, Outstanding at beginning of period (in shares) | 61,327 | 27,108 |
Number of shares, Granted (in shares) | 12,443 | 34,219 |
Number of shares, Exercised (in shares) | (11,684) | |
Number of shares, Outstanding at end of period (in shares) | 62,086 | 61,327 |
Number of shares, Exercisable at end of period (in shares) | 58,756 | 27,108 |
Weighted Average Exercise Price, Outstanding at beginning of period | $ 8.05 | $ 6.64 |
Weighted Average Exercise Price, Granted | 11.12 | 9.18 |
Weighted Average Exercise Price, Exercised | 6.64 | |
Weighted Average Exercise Price, Outstanding at end of period | 8.29 | 8.05 |
Weighted Average Exercise Price, Exercisable at end of period | $ 8.14 | $ 6.64 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Option Valuation Assumptions) (Details) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Stock-Based Compensation [Abstract] | ||
Dividend yield | 0.73% | 0.00% |
Expected volatility | 38.60% | 32.00% |
Risk-free interest rate | 1.75% | 1.97% |
Expected contract life (in years) | 10 years | 7 years |
Accumulated Other Comprehensi53
Accumulated Other Comprehensive Income (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Total accumulated other comprehensive income (loss), Beginning Balance | $ (71) | $ 316 |
Other comprehensive income | 1,566 | 491 |
Reclassification of (gains) recognized | (18) | |
Total accumulated other comprehensive income (loss), Ending Balance | 1,477 | 807 |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Total accumulated other comprehensive income (loss), Beginning Balance | (71) | 316 |
Other comprehensive income | 1,566 | 491 |
Reclassification of (gains) recognized | (18) | |
Total accumulated other comprehensive income (loss), Ending Balance | $ 1,477 | $ 807 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Securities available for sale: | ||
Available-for-sale Securities, Fair Value Disclosure | $ 174,788 | $ 212,165 |
U.S. Treasury [Member] | ||
Securities available for sale: | ||
Available-for-sale Securities, Fair Value Disclosure | 5,079 | |
U.S. Government Agencies [Member] | ||
Securities available for sale: | ||
Available-for-sale Securities, Fair Value Disclosure | 32,430 | 49,529 |
Mortgage-backed [Member] | ||
Securities available for sale: | ||
Available-for-sale Securities, Fair Value Disclosure | 141,695 | 156,916 |
Equity [Member] | ||
Securities available for sale: | ||
Available-for-sale Securities, Fair Value Disclosure | 663 | 641 |
Fair Value, Inputs, Level 1 [Member] | ||
Securities available for sale: | ||
Available-for-sale Securities, Fair Value Disclosure | 5,079 | |
Fair Value, Inputs, Level 1 [Member] | U.S. Treasury [Member] | ||
Securities available for sale: | ||
Available-for-sale Securities, Fair Value Disclosure | 5,079 | |
Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale: | ||
Available-for-sale Securities, Fair Value Disclosure | 174,788 | 207,086 |
Fair Value, Inputs, Level 2 [Member] | U.S. Government Agencies [Member] | ||
Securities available for sale: | ||
Available-for-sale Securities, Fair Value Disclosure | 32,430 | 49,529 |
Fair Value, Inputs, Level 2 [Member] | Mortgage-backed [Member] | ||
Securities available for sale: | ||
Available-for-sale Securities, Fair Value Disclosure | 141,695 | 156,916 |
Fair Value, Inputs, Level 2 [Member] | Equity [Member] | ||
Securities available for sale: | ||
Available-for-sale Securities, Fair Value Disclosure | $ 663 | $ 641 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value of Assets Measured on Nonrecurring Basis) (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Impaired loans: | ||
Impaired loans | $ 23,551 | $ 26,187 |
Other real estate owned | 2,197 | 4,252 |
Total assets measured at fair value on a nonrecurring basis | 25,748 | 30,439 |
Fair Value, Inputs, Level 2 [Member] | ||
Impaired loans: | ||
Impaired loans | 23,551 | 26,187 |
Other real estate owned | 2,197 | 4,252 |
Total assets measured at fair value on a nonrecurring basis | 25,748 | 30,439 |
Residential Portfolio Segment [Member] | ||
Impaired loans: | ||
Impaired loans | 7,749 | 7,511 |
Residential Portfolio Segment [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Impaired loans: | ||
Impaired loans | 7,749 | 7,511 |
Commercial Real Estate Portfolio Segment [Member] | ||
Impaired loans: | ||
Impaired loans | 6,944 | 7,422 |
Commercial Real Estate Portfolio Segment [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Impaired loans: | ||
Impaired loans | 6,944 | 7,422 |
Commercial Portfolio Segment [Member] | ||
Impaired loans: | ||
Impaired loans | 36 | 161 |
Commercial Portfolio Segment [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Impaired loans: | ||
Impaired loans | 36 | 161 |
Consumer Portfolio Segment [Member] | ||
Impaired loans: | ||
Impaired loans | 99 | 114 |
Consumer Portfolio Segment [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Impaired loans: | ||
Impaired loans | 99 | 114 |
Construction Loans [Member] | Commercial and Residential Real Estate Portfolio Segment [Member] | ||
Impaired loans: | ||
Impaired loans | 8,723 | 10,979 |
Construction Loans [Member] | Commercial and Residential Real Estate Portfolio Segment [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Impaired loans: | ||
Impaired loans | $ 8,723 | $ 10,979 |
Fair Value Measurements (Estima
Fair Value Measurements (Estimated Fair Values of Financial Assets and Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Financial assets, Estimated Fair Value | ||
Investment securities held to maturity | $ 3,931 | $ 4,243 |
Fair Value, Inputs, Level 1 [Member] | Carrying Amount [Member] | ||
Financial assets, Estimated Fair Value | ||
Cash and cash equivalents | 75,125 | 73,811 |
Fair Value, Inputs, Level 1 [Member] | Estimated Fair Value [Member] | ||
Financial assets, Estimated Fair Value | ||
Cash and cash equivalents | 75,125 | 73,811 |
Fair Value, Inputs, Level 2 [Member] | Carrying Amount [Member] | ||
Financial assets, Estimated Fair Value | ||
Investment securities held to maturity | 3,809 | 4,191 |
Loans, net | 851,939 | 786,798 |
Financial liabilities, Estimated Fair Value | ||
Deposits | 992,295 | 975,464 |
Short-term borrowings | 5,000 | 6,672 |
Fair Value, Inputs, Level 2 [Member] | Estimated Fair Value [Member] | ||
Financial assets, Estimated Fair Value | ||
Investment securities held to maturity | 3,931 | 4,243 |
Loans, net | 857,905 | 788,187 |
Financial liabilities, Estimated Fair Value | ||
Deposits | 954,257 | 922,161 |
Short-term borrowings | $ 5,000 | $ 6,672 |
Financial Instruments with Of57
Financial Instruments with Off-Balance Sheet Risk (Schedule of Commitments Outstanding) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments outstanding | $ 199,123 | $ 174,018 |
Commitments to Extend Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments outstanding | 192,442 | 166,931 |
Unused lines of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments outstanding | $ 6,681 | $ 7,087 |
Segment Reporting (Schedule of
Segment Reporting (Schedule of Segment Reporting Information by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||
Interest income | $ 10,236 | $ 9,837 | $ 30,147 | $ 28,824 | |
Interest expense | (578) | (827) | (1,863) | (2,592) | |
Provision for credit losses | (605) | (410) | (1,430) | (1,600) | |
Noninterest income | 4,007 | 3,905 | 12,589 | 11,778 | |
Noninterest expense | (9,217) | (9,396) | (27,921) | (28,400) | |
Income (loss) before taxes | 3,843 | 3,109 | 11,522 | 8,010 | |
Income tax (expense) benefit | (1,432) | (1,200) | (4,379) | (3,065) | |
Net income (loss) | 2,411 | 1,909 | 7,143 | 4,945 | |
Total assets | 1,157,866 | 1,117,813 | 1,157,866 | 1,117,813 | $ 1,135,143 |
Operating Segments [Member] | Community Banking [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Interest income | 29,957 | 28,670 | |||
Interest expense | (1,863) | (2,592) | |||
Provision for credit losses | (1,430) | (1,600) | |||
Noninterest income | 5,749 | 5,237 | |||
Noninterest expense | (15,874) | (16,133) | |||
Net intersegment (expense) income | (6,027) | (5,897) | |||
Income (loss) before taxes | 10,512 | 7,685 | |||
Income tax (expense) benefit | (3,973) | (2,941) | |||
Net income (loss) | 6,539 | 4,744 | |||
Total assets | 1,129,427 | 1,090,022 | 1,129,427 | 1,090,022 | |
Operating Segments [Member] | Insurance Products and Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Noninterest income | 6,840 | 6,541 | |||
Noninterest expense | (5,205) | (5,287) | |||
Net intersegment (expense) income | (566) | (624) | |||
Income (loss) before taxes | 1,069 | 630 | |||
Income tax (expense) benefit | (424) | (241) | |||
Net income (loss) | 645 | 389 | |||
Total assets | 9,647 | 9,222 | 9,647 | 9,222 | |
Parent Company [Member] | Corporate, Non-Segment [Member] | Corporate and Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Interest income | 190 | 154 | |||
Noninterest expense | (6,842) | (6,980) | |||
Net intersegment (expense) income | 6,593 | 6,521 | |||
Income (loss) before taxes | (59) | (305) | |||
Income tax (expense) benefit | 18 | 117 | |||
Net income (loss) | (41) | (188) | |||
Total assets | $ 18,792 | $ 18,569 | $ 18,792 | $ 18,569 |