Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 30, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
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 | 12,680,440 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and due from banks | $ 14,884 | $ 14,596 |
Interest-bearing deposits with other banks | 33,967 | 61,342 |
Cash and cash equivalents | 48,851 | 75,938 |
Investment securities: | ||
Available for sale, at fair value | 178,072 | 163,902 |
Held to maturity, at amortized cost - fair value of $6,855 (2017) and $6,806 (2016) | 6,615 | 6,704 |
Loans | 891,864 | 871,525 |
Less: allowance for credit losses | (8,927) | (8,726) |
Loans, net | 882,937 | 862,799 |
Premises and equipment, net | 16,831 | 16,558 |
Goodwill | 11,931 | 11,931 |
Other intangible assets, net | 1,047 | 1,079 |
Other real estate owned, net | 2,354 | 2,477 |
Other assets | 18,258 | 18,883 |
TOTAL ASSETS | 1,166,896 | 1,160,271 |
Deposits: | ||
Noninterest-bearing | 266,611 | 261,575 |
Interest-bearing | 734,931 | 735,914 |
Total deposits | 1,001,542 | 997,489 |
Short-term borrowings | 2,919 | 3,203 |
Other liabilities | 4,809 | 5,280 |
TOTAL LIABILITIES | 1,009,270 | 1,005,972 |
STOCKHOLDERS’ EQUITY | ||
Common stock, par value $.01 per share; shares authorized - 35,000,000; shares issued and outstanding - 12,672,675 (2017) and 12,664,797 (2016) | 127 | 127 |
Additional paid in capital | 64,619 | 64,201 |
Retained earnings | 93,131 | 90,964 |
Accumulated other comprehensive income (loss) | (251) | (993) |
TOTAL STOCKHOLDERS’ EQUITY | 157,626 | 154,299 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 1,166,896 | $ 1,160,271 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Statement Of Financial Position [Abstract] | ||
Investment securities held to maturity | $ 6,855 | $ 6,806 |
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 | 12,672,675 | 12,664,797 |
Common stock, shares outstanding | 12,672,675 | 12,664,797 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
INTEREST INCOME | ||
Interest and fees on loans | $ 9,550 | $ 8,961 |
Interest and dividends on investment securities: | ||
Taxable | 827 | 870 |
Tax-exempt | 2 | 2 |
Interest on federal funds sold | 3 | |
Interest on deposits with other banks | 68 | 72 |
Total interest income | 10,447 | 9,908 |
INTEREST EXPENSE | ||
Interest on deposits | 511 | 661 |
Interest on short-term borrowings | 3 | 4 |
Total interest expense | 514 | 665 |
NET INTEREST INCOME | 9,933 | 9,243 |
Provision for credit losses | 427 | 450 |
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 9,506 | 8,793 |
NONINTEREST INCOME | ||
Service charges on deposit accounts | 834 | 813 |
Trust and investment fee income | 361 | 351 |
Insurance agency commissions | 2,819 | 2,759 |
Other noninterest income | 793 | 618 |
Total noninterest income | 4,807 | 4,541 |
NONINTEREST EXPENSE | ||
Salaries and wages | 4,502 | 4,477 |
Employee benefits | 1,240 | 1,114 |
Occupancy expense | 625 | 613 |
Furniture and equipment expense | 233 | 235 |
Data processing | 872 | 809 |
Directors’ fees | 80 | 104 |
Amortization of other intangible assets | 33 | 33 |
FDIC insurance premium expense | 164 | 282 |
Other real estate owned expense, net | 55 | 7 |
Legal and professional fees | 660 | 385 |
Other noninterest expenses | 1,187 | 1,280 |
Total noninterest expense | 9,651 | 9,339 |
INCOME BEFORE INCOME TAXES | 4,662 | 3,995 |
Income tax expense | 1,862 | 1,535 |
NET INCOME | $ 2,800 | $ 2,460 |
Basic net income per common share (in dollars per share) | $ 0.22 | $ 0.19 |
Diluted net income per common share (in dollars per share) | 0.22 | 0.19 |
Dividends paid per common share (in dollars per share) | $ 0.05 | $ 0.03 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 2,800 | $ 2,460 |
Securities available for sale: | ||
Unrealized holding gains on available-for-sale securities | 1,224 | 1,589 |
Tax effect | (482) | (642) |
Net of tax amount | 742 | 947 |
Total other comprehensive income (loss) | 742 | 947 |
Comprehensive income | $ 3,542 | $ 3,407 |
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, 2015 | $ 126 | $ 63,815 | $ 83,097 | $ (71) | $ 146,967 |
Net income | 2,460 | 2,460 | |||
Unrealized gains on available-for-sale securities, net of taxes | 947 | 947 | |||
Common shares issued for employee stock-based awards | 3 | 3 | |||
Stock-based compensation | 111 | 111 | |||
Cash dividends declared | (379) | (379) | |||
Balances at Mar. 31, 2016 | 126 | 63,929 | 85,178 | 876 | 150,109 |
Balances at Dec. 31, 2016 | 127 | 64,201 | 90,964 | (993) | 154,299 |
Net income | 2,800 | 2,800 | |||
Unrealized gains on available-for-sale securities, net of taxes | 742 | 742 | |||
Stock-based compensation | 418 | 418 | |||
Cash dividends declared | (633) | (633) | |||
Balances at Mar. 31, 2017 | $ 127 | $ 64,619 | $ 93,131 | $ (251) | $ 157,626 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 2,800 | $ 2,460 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for credit losses | 427 | 450 |
Depreciation and amortization | 546 | 611 |
Discount accretion on debt securities | (7) | (7) |
Stock-based compensation expense | 418 | 111 |
Deferred income tax expense | 1,583 | 1,258 |
Losses on disposals of premises and equipment | 2 | |
(Gains) losses on sales of other real estate owned | (2) | 11 |
Write-downs of other real estate owned | 57 | 7 |
Net changes in: | ||
Accrued interest receivable | (78) | (144) |
Other assets | (1,422) | (286) |
Accrued interest payable | (7) | (9) |
Other liabilities | (472) | (570) |
Net cash provided by operating activities | 3,843 | 3,894 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from maturities and principal payments of investment securities available for sale | 9,528 | 9,752 |
Purchases of investment securities available for sale | (22,661) | (3,006) |
Proceeds from maturities and principal payments of investment securities held to maturity | 94 | 192 |
Net change in loans | (20,565) | (4,265) |
Purchases of premises and equipment | (531) | (183) |
Proceeds from sales of other real estate owned | 69 | 338 |
Net cash (used in) provided by investing activities | (34,066) | 2,828 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Noninterest-bearing deposits | 5,036 | (40) |
Interest-bearing deposits | (983) | (5,691) |
Short-term borrowings | (284) | (800) |
Proceeds from the issuance of common stock | 3 | |
Common stock dividends paid | (633) | (379) |
Net cash provided by (used in) financing activities | 3,136 | (6,907) |
Net decrease in cash and cash equivalents | (27,087) | (185) |
Cash and cash equivalents at beginning of period | 75,938 | 73,811 |
Cash and cash equivalents at end of period | 48,851 | 73,626 |
Supplemental cash flows information: | ||
Interest paid | 521 | 672 |
Income taxes paid | 235 | |
Change in unrealized (gains) on securities available for sale | $ (1,217) | $ 1,469 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 , the consolidated results of operations and comprehensive income for the three months ended March 31, 2017 and 2016 , and changes in stockholders’ equity and cash flows for the three months ended March 31, 2017 and 2016 , have been included. All such adjustments are of a normal recurring nature. The amounts as of December 31, 2016 were derived from the 2016 audited financial statements. The results of operations for the three months ended March 31, 2017 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, 2016 . 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 No. 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 December 16, 2016. 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. Revenues form services provided by financial institutions that could be impacted by the new guidance includes credit card arrangements, trust and custody services and administration services for customer deposits accounts (e.g., ATM and wire transfer transactions). This update will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company is currently performing an overall assessment of revenue streams potentially affected by the guidance and evaluating the impact this guidance, including the method of implementation, will have on its consolidated financial statements. In addition, the Company continues to monitor certain implementation issues relevant to the banking industry which are still pending resolution. 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 the financial statements and (vii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale 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. The Company expects to elect the package of practical expedients that allows it to not reassess whether any expire or existing contracts represent leases, the lease classification of any expired or existing lease and initial direct costs for any existing or expired leases. The Company expects this standard will have a material impact on its financial statements through gross-up of the balance sheet for lease assets and liabilities. However, no material change to lease expense recognition is expected. 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. Upon adoption of ASU No. 2016-09 on January 1, 2017, the Company made an accounting policy election to recognize forfeitures of stock-based awards as they occur. The adoption of ASU No. 2016-09 did not have a material impact 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 financ ial statements beginning in 2020 . 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. We adopted the amendments in this ASU effective January 1, 2017. The adoption of ASU No. 2016-15 did not have a material impact on our consolidated financial statements. ASU No. 2017-01 – In January 2017, FASB issued ASU No. 2017-01, Business Combinations (Topic 805)” Clarifying the Definition of a Business. The ASU clarifies the definition of a business to assist with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments in this update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The guidance is not expected to have a significant impact on the Company’s financial positions, results of operations or disclosures. ASU No. 2017-03 – In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-03, “ Accounting Changes and Error Corrections (Topic 250) and Investments – Equity Method and Joint Ventures (Topic 323): Amendments to SEC Paragraphs Pursuant to Staff Announcements at the September 22, 2016 and November 17, 2016 EITF Meetings.” The ASU adds an SEC paragraph to ASUs 2014-09, 2016-02, and 2016-13 which specifies the SEC staff view that a registrant should evaluate ASUs that have not yet been adopted to determine the appropriate disclosure about the potential material effects of those ASUs on the financial statements when adopted. The guidance also specifies the SEC staff view on financial statement disclosures when the company does not know or cannot reasonably estimate the impact that adoption of the ASUs will have on the financial statements. The ASU also conforms SEC guidance on accounting for tax benefits resulting from investments in affordable housing projects to the guidance in ASU 2014-01, Investments – Equity Method and Joint Ventures (Topic 323). The amendments in this update are effective upon issuance. The guidance did not have a significant impact on our consolidated financial statements. ASU No. 2017-04 – In January 2017, FASB issued ASU No. 2017-04, “ Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” The ASU simplifies measurement of goodwill and eliminates Step 2 from the goodwill impairment test. The Company should perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. The impairment charge is limited to the amount of goodwill allocated to that reporting unit. The amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for goodwill impairment tests performed on testing dates after January 1, 2017. The guidance is not expected to have a significant impact on the Company’s financial positions, results of operations or disclosures ASU No. 2017-08 – In March 2017, the FASB issued ASU No. 2017-08, “Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities.” Under current GAAP, entities normally amortize the premium as an adjustment of yield over the contractual life of the instrument. This guidance shortens the amortization period of certain callable debt securities held at a premium to the earliest call date. This update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The adoption of ASU No. 2017-08 is not expected to have a material impact on the Company’s consolidated financial statements. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, (In thousands, except per share data) 2017 2016 Net Income $ 2,800 $ 2,460 Weighted average shares outstanding - Basic 12,670 12,635 Dilutive effect of common stock equivalents-options 21 14 Dilutive effect of common stock equivalents-restricted stock units 16 - Weighted average shares outstanding - Diluted 12,707 12,649 Earnings per common share - Basic $ 0.22 $ 0.19 Earnings per common share - Diluted $ 0.22 $ 0.19 There were no weighted average common stock equivalents excluded from the calculation of diluted earnings per share for the three months ended March 31, 2017 and 2016 . |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2017 | |
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: March 31, 2017 U.S. Government agencies $ 43,311 $ 38 $ 74 $ 43,275 Mortgage-backed 134,449 481 781 134,149 Equity 655 - 7 648 Total $ 178,415 $ 519 $ 862 $ 178,072 December 31, 2016 U.S. Government agencies $ 34,320 $ 56 $ 58 $ 34,318 Mortgage-backed 130,490 263 1,809 128,944 Equity 652 - 12 640 Total $ 165,462 $ 319 $ 1,879 $ 163,902 Held-to-maturity securities: March 31, 2017 U.S. Government agencies $ 2,001 $ 29 $ - $ 2,030 States and political subdivisions 1,614 72 - 1,686 Other equity securities (1) 3,000 139 - 3,139 Total $ 6,615 $ 240 $ - $ 6,855 December 31, 2016 U.S. Government agencies $ 2,089 $ 26 $ - $ 2,115 States and political subdivisions 1,615 76 - 1,691 Other equity securities (1) 3,000 - - 3,000 Total $ 6,704 $ 102 $ - $ 6,806 (1) On December 15, 2016, the Company bought $3.0 million in subordinated notes from a local regional bank which it intends to hold to maturity of December 30, 2026 . 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 March 31, 2017 and December 31, 2016 . Less than More than 12 Months 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses March 31, 2017 Available-for-sale securities: U.S. Government agencies $ 26,948 $ 74 $ - $ - $ 26,948 $ 74 Mortgage-backed 49,097 534 8,883 247 57,980 781 Equity securities 648 7 - - 648 7 Total $ 76,693 $ 615 $ 8,883 $ 247 $ 85,576 $ 862 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, 2016 Available-for-sale securities: U.S. Government agencies $ 11,926 $ 58 $ - $ - $ 11,926 $ 58 Mortgage-backed 100,237 1,546 9,208 263 109,445 1,809 Equity securities 640 12 - - 640 12 Total $ 112,803 $ 1,616 $ 9,208 $ 263 $ 122,011 $ 1,879 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 March 31, 2017 . 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 $ 15,012 $ 15,007 $ 210 $ 210 Due after one year through five years 26,022 25,974 500 529 Due after five years through ten years 17,745 17,670 904 947 Due after ten years 118,981 118,773 2,001 2,030 177,760 177,424 3,615 3,716 Equity securities 655 648 3,000 3,139 Total $ 178,415 $ 178,072 $ 6,615 $ 6,855 The maturity dates for debt securities are determined using contractual maturity dates. |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 and December 31, 2016 . (Dollars in thousands) March 31, 2017 December 31, 2016 Construction $ 91,498 $ 84,002 Residential real estate 331,191 325,768 Commercial real estate 388,391 382,681 Commercial 74,189 72,435 Consumer 6,595 6,639 Total loans 891,864 871,525 Allowance for credit losses (8,927) (8,726) Total loans, net $ 882,937 $ 862,799 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 March 31, 2017 and December 31, 2016 . Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Unallocated Total March 31, 2017 Loans individually evaluated for impairment $ 7,883 $ 7,974 $ 5,555 $ - $ 99 $ - $ 21,511 Loans collectively evaluated for impairment 83,615 323,217 382,836 74,189 6,496 - 870,353 Total loans $ 91,498 $ 331,191 $ 388,391 $ 74,189 $ 6,595 $ - $ 891,864 Allowance for credit losses allocated to: Loans individually evaluated for impairment $ 683 $ 282 $ 183 $ - $ - $ - $ 1,148 Loans collectively evaluated for impairment 1,607 1,849 2,729 1,338 256 - 7,779 Total loans $ 2,290 $ 2,131 $ 2,912 $ 1,338 $ 256 $ - $ 8,927 Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Unallocated Total December 31, 2016 Loans individually evaluated for impairment $ 8,007 $ 7,778 $ 6,088 $ - $ 99 $ - $ 21,972 Loans collectively evaluated for impairment 75,995 317,990 376,593 72,435 6,540 - 849,553 Total loans $ 84,002 $ 325,768 $ 382,681 $ 72,435 $ 6,639 $ - $ 871,525 Allowance for credit losses allocated to: Loans individually evaluated for impairment $ 1,639 $ 317 $ 185 $ - $ - $ - $ 2,141 Loans collectively evaluated for impairment 1,148 1,636 2,425 1,145 231 - 6,585 Total loans $ 2,787 $ 1,953 $ 2,610 $ 1,145 $ 231 $ - $ 8,726 The following tables provide information on impaired loans and any related allowance by loan class as of March 31, 2017 and December 31, 2016 . The difference between the unpaid principal balance and the recorded investment is the amount of partial charge-offs that have been taken. Recorded Recorded Unpaid investment investment Average Interest principal with no with an Related recorded income (Dollars in thousands) balance allowance allowance allowance investment recognized March 31, 2017 Impaired nonaccrual loans: Construction $ 7,527 $ 76 $ 3,628 $ 666 $ 3,717 $ - Residential real estate 4,491 2,689 1,581 134 4,010 - Commercial real estate 1,213 481 175 99 721 - Commercial - - - - - - Consumer 99 99 - - 99 - Total $ 13,330 $ 3,345 $ 5,384 $ 899 $ 8,547 $ - Impaired accruing TDRs: Construction $ 4,179 $ 3,474 $ 705 $ 17 $ 4,182 $ 30 Residential real estate 3,704 2,665 1,039 148 3,762 43 Commercial real estate 4,899 1,877 3,022 84 4,908 57 Commercial - - - - - - Consumer - - - - - - Total $ 12,782 $ 8,016 $ 4,766 $ 249 $ 12,852 $ 130 Total impaired loans: Construction $ 11,706 $ 3,550 $ 4,333 $ 683 $ 7,899 $ 30 Residential real estate 8,195 5,354 2,620 282 7,772 43 Commercial real estate 6,112 2,358 3,197 183 5,629 57 Commercial - - - - - - Consumer 99 99 - - 99 - Total $ 26,112 $ 11,361 $ 10,150 $ 1,148 $ 21,399 $ 130 Recorded Recorded March 31, 2016 Unpaid investment investment Average Interest principal with no with an Related recorded income (Dollars in thousands) balance allowance allowance allowance investment recognized December 31, 2016 Impaired nonaccrual loans: Construction $ 7,247 $ - $ 3,818 $ 1,621 $ 7,216 $ - Residential real estate 4,013 1,957 1,946 166 2,292 - Commercial real estate 1,801 959 193 117 2,559 - Commercial - - - - 158 - Consumer 99 99 - - 121 - Total $ 13,160 $ 3,015 $ 5,957 $ 1,904 $ 12,346 $ - Impaired accruing TDRs: Construction $ 4,189 $ 3,479 $ 710 $ 18 $ 4,041 $ 25 Residential real estate 3,875 2,829 1,046 151 5,669 55 Commercial real estate 4,936 1,573 3,363 68 5,363 46 Commercial - - - - - - Consumer - - - - - - Total $ 13,000 $ 7,881 $ 5,119 $ 237 $ 15,073 $ 126 Total impaired loans: Construction $ 11,436 $ 3,479 $ 4,528 $ 1,639 $ 11,257 $ 25 Residential real estate 7,888 4,786 2,992 317 7,961 55 Commercial real estate 6,737 2,532 3,556 185 7,922 46 Commercial - - - - 158 - Consumer 99 99 - - 121 - Total $ 26,160 $ 10,896 $ 11,076 $ 2,141 $ 27,419 $ 126 The following tables provide a roll-forward for troubled debt restructurings as of March 31, 2017 and March 31, 2016 . 1/1/2017 3/31/2017 TDR New Disbursements Charge Reclassifications/ TDR Related (Dollars in thousands) Balance TDRs (Payments) offs Transfer In/(Out) Payoffs Balance Allowance For three months ended March 31, 2017 Accruing TDRs Construction $ 4,189 $ - $ (10) $ - $ - $ - $ 4,179 $ 17 Residential real estate 3,875 - (82) (89) - - 3,704 148 Commercial real estate 4,936 - (37) - - - 4,899 84 Commercial - - - - - - - - Consumer - - - - - - - - Total $ 13,000 $ - $ (129) $ (89) $ - $ - $ 12,782 $ 249 Nonaccrual TDRs Construction $ 3,818 $ - $ (190) $ - $ - $ - $ 3,628 $ 666 Residential real estate 1,603 - (22) - - - 1,581 134 Commercial real estate 83 - - - - - 83 - Commercial - - - - - - - - Consumer - - - - - - - - Total $ 5,504 $ - $ (212) $ - $ - $ - $ 5,292 $ 800 Total $ 18,504 $ - $ (341) $ (89) $ - $ - $ 18,074 $ 1,049 1/1/2016 3/31/2016 TDR New Disbursements Charge Reclassifications/ TDR Related (Dollars in thousands) Balance TDRs (Payments) offs Transfer In/(Out) Payoffs Balance Allowance For three months ended March 31, 2016 Accruing TDRs Construction $ 4,069 $ - $ (77) $ - $ - $ - $ 3,992 $ 28 Residential real estate 5,686 - (31) - - - 5,655 112 Commercial real estate 5,740 - (517) (117) - - 5,106 552 Commercial - - - - - - - - Consumer - - - - - - - - Total $ 15,495 $ - $ (625) $ (117) $ - $ - $ 14,753 $ 692 Nonaccrual TDRs Construction $ 4,960 $ 2,570 $ (691) $ (241) $ - $ - $ 6,598 $ 755 Residential real estate 445 - (288) - - - 157 11 Commercial real estate - - - - - - - - Commercial - - - - - - - - Consumer 23 - - - - - 23 - Total $ 5,428 $ 2,570 $ (979) $ (241) $ - $ - $ 6,778 $ 766 Total $ 20,923 $ 2,570 $ (1,604) $ (358) $ - $ - $ 21,531 $ 1,458 The following tables provide information on loans that were modified and considered TDRs during the three months ended March 31, 2017 and March 31, 2016 . Premodification Postmodification outstanding outstanding Number of recorded recorded Related (Dollars in thousands) contracts investment investment allowance TDRs: For three months ended March 31, 2017 Construction - $ - $ - $ - Residential real estate - - - - Commercial real estate 1 760 755 - Commercial - - - - Consumer - - - - Total 1 $ 760 $ 755 $ - For three months ended March 31, 2016 Construction 1 $ 2,570 $ 2,570 $ - Residential real estate - - - - Commercial real estate - - - - Commercial - - - - Consumer - - - - Total 1 $ 2,570 $ 2,570 $ - During the three months ended March 31, 2017, there was one TDR which was modified. The modification to this TDR consisted of a change in maturity date. The following tables provide information on TDRs that defaulted during the three months ended March 31, 2017 and March 31, 2016 . 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 three months ended March 31, 2017 Construction - $ - $ - Residential real estate 1 89 - Commercial real estate - - - Commercial - - - Consumer - - - Total 1 $ 89 $ - For three months ended March 31, 2016 Construction 1 $ 241 $ - Residential real estate - - - Commercial real estate 1 117 - Commercial - - - Consumer - - - Total 2 $ 358 $ - 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. At March 31, 2017, there were no nonaccrual loans classified as special mention or doubtfu l and $8.7 million of nonaccrual loans were identified as substandard. The comparable amounts at December 31, 2016 were special mention $0 , substandard $9.0 million and doubtful $0 , respectively. The following tables provide information on loan risk ratings as of March 31, 2017 and December 31, 2016 . Special (Dollars in thousands) Pass/Performing Mention Substandard Doubtful Total March 31, 2017 Construction $ 80,284 $ 4,164 $ 7,050 $ - $ 91,498 Residential real estate 317,461 6,496 7,234 - 331,191 Commercial real estate 364,732 15,925 7,734 - 388,391 Commercial 73,304 814 71 - 74,189 Consumer 6,496 - 99 - 6,595 Total $ 842,277 $ 27,399 $ 22,188 $ - $ 891,864 Special (Dollars in thousands) Pass/Performing Mention Substandard Doubtful Total December 31, 2016 Construction $ 72,641 $ 4,195 $ 7,166 $ - $ 84,002 Residential real estate 312,242 6,646 6,880 - 325,768 Commercial real estate 363,461 10,939 8,281 - 382,681 Commercial 71,313 857 265 - 72,435 Consumer 6,540 - 99 - 6,639 Total $ 826,197 $ 22,637 $ 22,691 $ - $ 871,525 The following tables provide information on the aging of the loan portfolio as of March 31, 2017 and December 31, 2016 . Accruing 30-59 days 60-89 days Greater than Total (Dollars in thousands) Current past due past due 90 days past due Nonaccrual Total March 31, 2017 Construction $ 87,683 $ 111 $ - $ - $ 111 $ 3,704 $ 91,498 Residential real estate 324,573 1,062 1,286 - 2,348 4,270 331,191 Commercial real estate 385,788 1,449 390 108 1,947 656 388,391 Commercial 74,088 89 12 - 101 - 74,189 Consumer 6,465 13 8 10 31 99 6,595 Total $ 878,597 $ 2,724 $ 1,696 $ 118 $ 4,538 $ 8,729 $ 891,864 Percent of total loans 98.5 % 0.3 % 0.2 % - % 0.5 % 1.0 % 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, 2016 Construction $ 80,079 $ - $ 105 $ - $ 105 $ 3,818 $ 84,002 Residential real estate 317,992 1,778 2,095 - 3,873 3,903 325,768 Commercial real estate 375,552 3,219 2,758 - 5,977 1,152 382,681 Commercial 72,272 19 134 10 163 - 72,435 Consumer 6,515 13 2 10 25 99 6,639 Total $ 852,410 $ 5,029 $ 5,094 $ 20 $ 10,143 $ 8,972 $ 871,525 Percent of total loans 97.8 % 0.6 % 0.6 % - % 1.2 % 1.0 % 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 ended March 31, 2017 and 2016 . 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, in connection with 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. In addition, beginning in January of 2017 , the allowance methodology was expanded to require the allocation of general reserves to pass/watch loans. This change resulted in an increase in allowance for the first quarter of 2017 when compared to the fourth quarter of 2016 of $1.1 million, which was partially offset by a reduction in specific reserves for a net effect of $250 thousand. Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Unallocated Total For three months ended March 31, 2017 Allowance for credit losses: Beginning Balance $ 2,787 $ 1,953 $ 2,610 $ 1,145 $ 231 $ - $ 8,726 Charge-offs (29) (223) - (65) - - (317) Recoveries 7 11 11 58 4 - 91 Net charge-offs (22) (212) 11 (7) 4 - (226) Provision (475) 390 291 200 21 - 427 Ending Balance $ 2,290 $ 2,131 $ 2,912 $ 1,338 $ 256 $ - $ 8,927 Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Unallocated Total For three months ended March 31, 2016 Allowance for credit losses: Beginning Balance $ 1,646 $ 2,181 $ 2,999 $ 558 $ 156 $ 776 $ 8,316 Charge-offs (241) (16) (238) (67) (8) - (570) Recoveries 6 34 - 65 8 - 113 Net charge-offs (235) 18 (238) (2) - - (457) Provision 342 (185) 496 29 21 (253) 450 Ending Balance $ 1,753 $ 2,014 $ 3,257 $ 585 $ 177 $ 523 $ 8,309 Foreclosure Proceedings Consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure totaled $410 thousand and $687 thousand as of March 31, 2017 and December 31, 2016 , respectively. At March 31, 2017 and December 31, 2016, there were 3 residential properties held in other real estate owned totaling $92 thousand. Performing TDRs were in compliance with their modified terms and there are no further commitments associated with these loans. |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2017 | |
Other Assets [Abstract] | |
Other Assets | Note 5 – Other Assets The Company had the following other assets at March 31, 2017 and December 31, 2016 . (Dollars in thousands) March 31, 2017 December 31, 2016 Nonmarketable investment securities $ 3,070 $ 1,650 Accrued interest receivable 2,753 2,675 Deferred income taxes 4,973 7,039 Prepaid expenses 1,215 1,149 Cash surrender value on life insurance 2,591 2,589 Other assets 3,656 3,781 Total $ 18,258 $ 18,883 The following table provides information on significant components of the Company’s deferred tax assets and liabilities as of March 31, 2017 and December 31, 2016 . March 31, December 31, (Dollars in thousands) 2017 2016 Deferred tax assets: Allowance for credit losses $ 3,566 $ 3,486 Reserve for off-balance sheet commitments 122 122 Net operating loss carry forward 1,260 2,232 Write-downs of other real estate owned 267 387 Deferred income 985 1,011 Unrealized losses on available-for-sale securities 189 672 Accrued expenses - - AMT Credits 606 869 Other 1,013 1,192 Total deferred tax assets 8,008 9,971 Deferred tax liabilities: Depreciation 220 239 Amortization on loans FMV adjustment 145 156 Purchase accounting adjustments 2,153 2,019 Deferred capital gain on branch sale 353 401 Other 164 116 Total deferred tax liabilities 3,035 2,931 Net deferred tax assets $ 4,973 $ 7,040 The Company’s deferred tax assets consist of gross net operating loss carryovers for state tax purposes of $23.5 million that will be used to offset taxable income in future periods. The Company’s state net operating loss carryovers will begin to expire in the year ended December 31, 2026 with limited amounts available through December 31, 2034 . Additionally, the Company has $606 thousand of alternative minimum tax credit carryforwards as of March 31, 2017 which may be carried forward indefinitely. No valuation allowance on these deferred tax assets was recorded at March 31, 2017 and December 31, 2016 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 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 $15.9 million and $11.5 million for the years ended December 31, 2016 and 2015, 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 potential 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 | 3 Months Ended |
Mar. 31, 2017 | |
Other Liabilities [Abstract] | |
Other Liabilities | Note 6 – Other Liabilities The Company had the following other liabilities at March 31, 2017 and December 31, 2016 . (Dollars in thousands) March 31, 2017 December 31, 2016 Accrued interest payable $ 67 $ 74 Other accounts payable 1,878 2,461 Deferred compensation liability 1,415 1,444 Other liabilities 1,449 1,301 Total $ 4,809 $ 5,280 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2017 | |
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 2016 Equity Plan originally reserved 750,000 shares of common stock for grant, and 723,965 shares remained available for grant at March 31, 2017. The following tables provide information on stock-based compensation expense for the three months ended March 31, 2017 and 2016 . For the Three Months Ended March 31, (Dollars in thousands) 2017 2016 Stock-based compensation expense $ 418 $ 111 Excess tax benefits related to stock-based compensation 2 3 March 31, (Dollars in thousands) 2017 2016 Unrecognized stock-based compensation expense $ 345 $ 70 Weighted average period unrecognized expense is expected to be recognized 0.1 years 0.6 years The following table summarizes restricted stock award activity for the Company under the 2016 Equity Plan for the three months ended March 31, 2017 and 2016 . Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 Weighted Average Weighted Average Number of Grant Date Number of Grant Date Shares Fair Value Shares Fair Value Nonvested at beginning of period 17,066 $ 11.46 12,488 $ 8.74 Granted 7,378 16.44 8,524 11.16 Vested (8,138) 13.92 (13,467) 9.49 Cancelled - - - - Nonvested at end of period 16,306 $ 12.49 7,545 $ 10.16 The fair value of restricted stock awards that vested during the first three months of 2017 and 2016 was $113 thousand and $122 thousand, respectively. Restricted stock units (RSUs) are similar to restricted stock, except the recipient does not receive the stock immediately, but instead receives it upon the terms and conditions of the Company’s long-term incentive plans which are subject to performance milestones achieved at the end of a three-year period. Each RSU cliff vests at the end of the three -year period and entitles the recipient to receive one share of common stock on a specified issuance date. The recipient does not have any stockholder rights, including voting rights, with respect to the shares underlying awarded RSUs until the recipient becomes the holder of those shares. During 2016, the Company entered into a long-term incentive program agreement with officers of the Company and its subsidiaries to award RSUs based on a performance metric to be achieved as of December 31, 2018. These awards will cliff vest on this date, in which the final number of common shares to be issued will be determined. The range of RSUs which could potentially be awarded at the end of the performance cycle are between 12,214 shares and 48,871 shares, assuming a certain performance metric is met. In addition, two members of the long-term incentive plan from 2015 forfeited their RSUs due to leaving the Company before the end of the vesting period. The following table presents management’s evaluation of the probable number of common stock awards to be issued at the end of the performance cycle. During 2015, the Company entered into a long-term incentive program agreement with officers of the Company and its subsidiaries to award RSUs based on performance metrics to be achieved as of December 31, 2017. These awards will cliff vest on this date, in which the final number of common shares to be issued will be determined. The range of RSUs which could potentially be awarded at the end of the performance cycle are 10,953 shares and 43,821 shares, assuming certain performance metrics are met. The following table presents management’s evaluation of the probable number of common stock awards to be issued at the end of the performance cycle. The following table summarizes restricted stock units activity for the Company under the 2016 and 2006 Equity Plans for the three months ended March 31, 2017 and 2016. Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 Weighted Average Weighted Average Number of Grant Date Number of Grant Date Shares Fair Value Shares Fair Value Outstanding at beginning of period 46,342 $ 10.64 - $ - Granted - - 26,943 9.49 Vested - - - - Forfeited - - - - Outstanding at end of period 46,342 $ 10.64 26,943 $ 9.49 The following table summarizes stock option activity for the Company under the 2016 Equity Plan for the three months ended March 31, 2017 and 2016 . Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 Weighted Average Weighted Average Number of Grant Date Number of Grant Date Shares Fair Value Shares Fair Value Outstanding at beginning of period 62,086 $ 8.29 61,327 $ 8.05 Granted 1,202 10.99 12,443 11.12 Exercised (859) 6.64 (450) 6.64 Expired/Cancelled - - - - Outstanding at end of period 62,429 $ 8.36 73,320 $ 8.58 Exercisable at end of period 61,828 $ 8.34 67,099 $ 8.35 The weighted average fair value of stock options granted during 2017 was $10.99 . 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 2017 and 2016 . 2017 2016 Dividend yield 0.84 % 0.73 % Expected volatility 64.80 % 38.60 % Expected forfeiture rate - % - % Risk-free interest rate 2.42 % 1.75 % Expected contract life (in years) 10 years 10 years At the end of the first quarter of 2017 , the aggregate intrinsic value of the options outstanding under the 2016 Equity Plan was $521 thousand based on the $16.71 market value per share of the Company’s common stock at March 31, 2017 . Similarly, the aggregate intrinsic value of the options exercisable was $232 thousand at March 31, 2017 . The intrinsic value on options exercised in 2017 was $8 thousand based on the $15.89 market value per share of the Company’s common stock at January 30, 2017. The intrinsic value on options exercised in the first three months of 2016 was $2 thousand based on the $11.35 market value per share of the Company’s common stock at February 8, 2016. At March 31, 2017 , the weighted average remaining contract life of options outstanding was 6.7 years. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2017 | |
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 three months ended March 31, 2017 and 2016 . Accumulated net unrealized holding Total accumulated gains (losses) on other available for sale comprehensive (Dollars in thousands) securities income(loss) Balance, December 31, 2016 $ (993) $ (993) Other comprehensive income 742 742 Balance, March 31, 2017 $ (251) $ (251) Balance, December 31, 2015 $ (71) $ (71) Other comprehensive income 947 947 Balances, March 31, 2016 $ 876 $ 876 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2017 | |
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 and to determine fair value disclosures. 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 and mortgage-backed securities issued or guaranteed by U.S. Government sponsored entities as Level 2. The tables below present the recorded amount of assets measured at fair value on a recurring basis at March 31, 2017 and December 31, 2016 . No assets were transferred from one hierarchy level to another during the first three months of 2017 or 2016 . Significant Other Significant Quoted Observable Unobservable Prices Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) March 31, 2017 Securities available for sale: U.S. Government agencies $ 43,275 $ - $ 43,275 $ - Mortgage-backed 134,149 - 134,149 - Equity 648 - 648 - Total $ 178,072 $ - $ 178,072 $ - Significant Other Significant Quoted Observable Unobservable Prices Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) December 31, 2016 Securities available for sale: U.S. Government agencies $ 34,318 $ - $ 34,318 $ - Mortgage-backed 128,944 - 128,944 - Equity 640 - 640 - Total $ 163,902 $ - $ 163,902 $ - Below is a discussion on the Company’s assets measured at fair value on a nonrecurring basis. Impaired Loans Loans are considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loan impairment is measured using the present value of expected cash flows, the loan’s observable market price or the fair value of the collateral (less selling costs) if the loans are collateral dependent and these are considered Level 3 in the fair value hierarchy. Collateral may be real estate and/or business assets including equipment, inventory and/or accounts receivable. The value of business equipment, inventory and accounts receivable, discounted on management’s review and analysis. Appraised and reported values may be discounted based on management’s historical knowledge, changes in market conditions from the time of valuation, and/or management’s expertise and knowledge of the client and the client’s business. Impaired loans are reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly, based on the factors identified above. Valuation techniques are consistent with those techniques applied in prior periods. Other Real Estate Owned (Foreclosed Assets) Foreclosed assets are adjusted for fair value upon transfer of loans to foreclosed assets. Subsequently, foreclosed assets are carried at the lower of carrying value and fair value. The estimated fair value for foreclosed assets included in Level 3 are determined by independent market based appraisals and other available market information, less costs to sell, that may be reduced further based on market expectations or an executed sales agreement. If the fair value of the collateral deteriorates subsequent to the initial recognition, the Company records the foreclosed asset as a non-recurring Level 3 adjustment. Valuation techniques are consistent with those techniques applied in prior periods. The tables below present the recorded amount of assets measured at fair value on a nonrecurring basis at March 31, 2017 and December 31, 2016 . The assets in the following table were transferred during 2016 from Level 2 to Level 3, based on management’s reassessment an evaluation of the inputs in relation to impaired loans and foreclosed assets. This reassessment resulted in management conclusion that the inputs for these assets were more reflective of Level 3 as unobservable inputs and applied retrospectively to prior periods reported. Significant Other Significant Quoted Observable Unobservable Prices Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) March 31, 2017 Impaired loans Construction $ 7,200 $ - $ - $ 7,200 Residential real estate 7,692 - - 7,692 Commercial real estate 5,372 - - 5,372 Commercial - - - - Consumer 99 - - 99 Total impaired loans 20,363 - - 20,363 Other real estate owned 2,354 - - 2,354 Total assets measured at fair value on a nonrecurring basis $ 22,717 $ - $ - $ 22,717 Significant Other Significant Quoted Observable Unobservable Prices Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) December 31, 2016 Impaired loans Construction $ 6,368 $ - $ - $ 6,368 Residential real estate 7,461 - - 7,461 Commercial real estate 5,903 - - 5,903 Commercial - - - - Consumer 99 - - 99 Total impaired loans 19,831 - - 19,831 Other real estate owned 2,477 - - 2,477 Total assets measured at fair value on a nonrecurring basis $ 22,308 $ - $ - $ 22,308 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, 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. March 31, 2017 December 31, 2016 Estimated Estimated Carrying Fair Carrying Fair (Dollars in thousands) Amount Value Amount Value Financial assets Level 1 inputs Cash and cash equivalents $ 48,851 $ 48,851 $ 75,938 $ 75,938 Level 2 inputs Investment securities held to maturity $ 6,615 $ 6,855 $ 6,704 $ 6,806 Loans, net 882,937 885,952 862,799 867,594 Financial liabilities Level 2 inputs Deposits $ 1,001,542 $ 934,021 $ 997,489 $ 929,573 Short-term borrowings 2,919 2,919 3,203 3,203 |
Financial Instruments with Off-
Financial Instruments with Off-Balance Sheet Risk | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 and December 31, 2016 . (Dollars in thousands) March 31, 2017 December 31, 2016 Commitments to extend credit $ 190,254 $ 178,233 Letters of credit 7,774 8,024 Total $ 198,028 $ 186,257 |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2017 | |
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 17-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 three months of 2017 and 2016 . Community Insurance Products Parent Consolidated (Dollars in thousands) Banking and Services Company Total 2017 Interest Income $ 10,387 $ - $ 60 $ 10,447 Interest Expense (514) - - (514) Provision for credit losses (427) - - (427) Noninterest income 1,883 2,924 - 4,807 Noninterest expense (5,861) (1,809) (1,981) (9,651) Net intersegment (expense) income (1,677) (198) 1,875 - Income (loss) before taxes 3,791 917 (46) 4,662 Income tax (expense) benefit (1,513) (367) 18 (1,862) Net Income (loss) $ 2,278 $ 550 $ (28) $ 2,800 Total assets $ 1,150,411 $ 9,345 $ 7,141 $ 1,166,896 2016 Interest Income $ 9,846 $ - $ 62 $ 9,908 Interest Expense (665) - - (665) Provision for credit losses (450) - - (450) Noninterest income 1,830 2,711 - 4,541 Noninterest expense (5,297) (1,709) (2,333) (9,339) Net intersegment (expense) income (1,936) (172) 2,108 - Income (loss) before taxes 3,328 830 (163) 3,995 Income tax (expense) benefit (1,279) (319) 63 (1,535) Net Income (loss) $ 2,049 $ 511 $ (100) $ 2,460 Total assets $ 1,103,842 $ 9,133 $ 18,200 $ 1,131,175 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 , the consolidated results of operations and comprehensive income for the three months ended March 31, 2017 and 2016 , and changes in stockholders’ equity and cash flows for the three months ended March 31, 2017 and 2016 , have been included. All such adjustments are of a normal recurring nature. The amounts as of December 31, 2016 were derived from the 2016 audited financial statements. The results of operations for the three months ended March 31, 2017 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, 2016 . 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 No. 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 December 16, 2016. 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. Revenues form services provided by financial institutions that could be impacted by the new guidance includes credit card arrangements, trust and custody services and administration services for customer deposits accounts (e.g., ATM and wire transfer transactions). This update will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company is currently performing an overall assessment of revenue streams potentially affected by the guidance and evaluating the impact this guidance, including the method of implementation, will have on its consolidated financial statements. In addition, the Company continues to monitor certain implementation issues relevant to the banking industry which are still pending resolution. 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 the financial statements and (vii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale 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. The Company expects to elect the package of practical expedients that allows it to not reassess whether any expire or existing contracts represent leases, the lease classification of any expired or existing lease and initial direct costs for any existing or expired leases. The Company expects this standard will have a material impact on its financial statements through gross-up of the balance sheet for lease assets and liabilities. However, no material change to lease expense recognition is expected. 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. Upon adoption of ASU No. 2016-09 on January 1, 2017, the Company made an accounting policy election to recognize forfeitures of stock-based awards as they occur. The adoption of ASU No. 2016-09 did not have a material impact 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 financ ial statements beginning in 2020 . 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. We adopted the amendments in this ASU effective January 1, 2017. The adoption of ASU No. 2016-15 did not have a material impact on our consolidated financial statements. ASU No. 2017-01 – In January 2017, FASB issued ASU No. 2017-01, Business Combinations (Topic 805)” Clarifying the Definition of a Business. The ASU clarifies the definition of a business to assist with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments in this update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The guidance is not expected to have a significant impact on the Company’s financial positions, results of operations or disclosures. ASU No. 2017-03 – In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-03, “ Accounting Changes and Error Corrections (Topic 250) and Investments – Equity Method and Joint Ventures (Topic 323): Amendments to SEC Paragraphs Pursuant to Staff Announcements at the September 22, 2016 and November 17, 2016 EITF Meetings.” The ASU adds an SEC paragraph to ASUs 2014-09, 2016-02, and 2016-13 which specifies the SEC staff view that a registrant should evaluate ASUs that have not yet been adopted to determine the appropriate disclosure about the potential material effects of those ASUs on the financial statements when adopted. The guidance also specifies the SEC staff view on financial statement disclosures when the company does not know or cannot reasonably estimate the impact that adoption of the ASUs will have on the financial statements. The ASU also conforms SEC guidance on accounting for tax benefits resulting from investments in affordable housing projects to the guidance in ASU 2014-01, Investments – Equity Method and Joint Ventures (Topic 323). The amendments in this update are effective upon issuance. The guidance did not have a significant impact on our consolidated financial statements. ASU No. 2017-04 – In January 2017, FASB issued ASU No. 2017-04, “ Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” The ASU simplifies measurement of goodwill and eliminates Step 2 from the goodwill impairment test. The Company should perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. The impairment charge is limited to the amount of goodwill allocated to that reporting unit. The amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for goodwill impairment tests performed on testing dates after January 1, 2017. The guidance is not expected to have a significant impact on the Company’s financial positions, results of operations or disclosures ASU No. 2017-08 – In March 2017, the FASB issued ASU No. 2017-08, “Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities.” Under current GAAP, entities normally amortize the premium as an adjustment of yield over the contractual life of the instrument. This guidance shortens the amortization period of certain callable debt securities held at a premium to the earliest call date. This update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The adoption of ASU No. 2017-08 is not expected to have a material impact on the Company’s consolidated financial statements. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, (In thousands, except per share data) 2017 2016 Net Income $ 2,800 $ 2,460 Weighted average shares outstanding - Basic 12,670 12,635 Dilutive effect of common stock equivalents-options 21 14 Dilutive effect of common stock equivalents-restricted stock units 16 - Weighted average shares outstanding - Diluted 12,707 12,649 Earnings per common share - Basic $ 0.22 $ 0.19 Earnings per common share - Diluted $ 0.22 $ 0.19 |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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: March 31, 2017 U.S. Government agencies $ 43,311 $ 38 $ 74 $ 43,275 Mortgage-backed 134,449 481 781 134,149 Equity 655 - 7 648 Total $ 178,415 $ 519 $ 862 $ 178,072 December 31, 2016 U.S. Government agencies $ 34,320 $ 56 $ 58 $ 34,318 Mortgage-backed 130,490 263 1,809 128,944 Equity 652 - 12 640 Total $ 165,462 $ 319 $ 1,879 $ 163,902 Held-to-maturity securities: March 31, 2017 U.S. Government agencies $ 2,001 $ 29 $ - $ 2,030 States and political subdivisions 1,614 72 - 1,686 Other equity securities (1) 3,000 139 - 3,139 Total $ 6,615 $ 240 $ - $ 6,855 December 31, 2016 U.S. Government agencies $ 2,089 $ 26 $ - $ 2,115 States and political subdivisions 1,615 76 - 1,691 Other equity securities (1) 3,000 - - 3,000 Total $ 6,704 $ 102 $ - $ 6,806 (1) On December 15, 2016, the Company bought $3.0 million in subordinated notes from a local regional bank which it intends to hold to maturity of December 30, 2026 . |
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 March 31, 2017 and December 31, 2016 . Less than More than 12 Months 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses March 31, 2017 Available-for-sale securities: U.S. Government agencies $ 26,948 $ 74 $ - $ - $ 26,948 $ 74 Mortgage-backed 49,097 534 8,883 247 57,980 781 Equity securities 648 7 - - 648 7 Total $ 76,693 $ 615 $ 8,883 $ 247 $ 85,576 $ 862 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, 2016 Available-for-sale securities: U.S. Government agencies $ 11,926 $ 58 $ - $ - $ 11,926 $ 58 Mortgage-backed 100,237 1,546 9,208 263 109,445 1,809 Equity securities 640 12 - - 640 12 Total $ 112,803 $ 1,616 $ 9,208 $ 263 $ 122,011 $ 1,879 |
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 March 31, 2017 . 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 $ 15,012 $ 15,007 $ 210 $ 210 Due after one year through five years 26,022 25,974 500 529 Due after five years through ten years 17,745 17,670 904 947 Due after ten years 118,981 118,773 2,001 2,030 177,760 177,424 3,615 3,716 Equity securities 655 648 3,000 3,139 Total $ 178,415 $ 178,072 $ 6,615 $ 6,855 |
Loans and Allowance for Credi22
Loans and Allowance for Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Loans and Allowance for Credit Losses [Abstract] | |
Schedule of Financing Receivables | The following table provides information about the principal classes of the loan portfolio at March 31, 2017 and December 31, 2016 . (Dollars in thousands) March 31, 2017 December 31, 2016 Construction $ 91,498 $ 84,002 Residential real estate 331,191 325,768 Commercial real estate 388,391 382,681 Commercial 74,189 72,435 Consumer 6,595 6,639 Total loans 891,864 871,525 Allowance for credit losses (8,927) (8,726) Total loans, net $ 882,937 $ 862,799 |
Allowance for Credit Losses on Financing Receivables | The following tables include impairment information relating to loans and the allowance for credit losses as of March 31, 2017 and December 31, 2016 . Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Unallocated Total March 31, 2017 Loans individually evaluated for impairment $ 7,883 $ 7,974 $ 5,555 $ - $ 99 $ - $ 21,511 Loans collectively evaluated for impairment 83,615 323,217 382,836 74,189 6,496 - 870,353 Total loans $ 91,498 $ 331,191 $ 388,391 $ 74,189 $ 6,595 $ - $ 891,864 Allowance for credit losses allocated to: Loans individually evaluated for impairment $ 683 $ 282 $ 183 $ - $ - $ - $ 1,148 Loans collectively evaluated for impairment 1,607 1,849 2,729 1,338 256 - 7,779 Total loans $ 2,290 $ 2,131 $ 2,912 $ 1,338 $ 256 $ - $ 8,927 Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Unallocated Total December 31, 2016 Loans individually evaluated for impairment $ 8,007 $ 7,778 $ 6,088 $ - $ 99 $ - $ 21,972 Loans collectively evaluated for impairment 75,995 317,990 376,593 72,435 6,540 - 849,553 Total loans $ 84,002 $ 325,768 $ 382,681 $ 72,435 $ 6,639 $ - $ 871,525 Allowance for credit losses allocated to: Loans individually evaluated for impairment $ 1,639 $ 317 $ 185 $ - $ - $ - $ 2,141 Loans collectively evaluated for impairment 1,148 1,636 2,425 1,145 231 - 6,585 Total loans $ 2,787 $ 1,953 $ 2,610 $ 1,145 $ 231 $ - $ 8,726 |
Impaired Financing Receivables | The following tables provide information on impaired loans and any related allowance by loan class as of March 31, 2017 and December 31, 2016 . The difference between the unpaid principal balance and the recorded investment is the amount of partial charge-offs that have been taken. Recorded Recorded Unpaid investment investment Average Interest principal with no with an Related recorded income (Dollars in thousands) balance allowance allowance allowance investment recognized March 31, 2017 Impaired nonaccrual loans: Construction $ 7,527 $ 76 $ 3,628 $ 666 $ 3,717 $ - Residential real estate 4,491 2,689 1,581 134 4,010 - Commercial real estate 1,213 481 175 99 721 - Commercial - - - - - - Consumer 99 99 - - 99 - Total $ 13,330 $ 3,345 $ 5,384 $ 899 $ 8,547 $ - Impaired accruing TDRs: Construction $ 4,179 $ 3,474 $ 705 $ 17 $ 4,182 $ 30 Residential real estate 3,704 2,665 1,039 148 3,762 43 Commercial real estate 4,899 1,877 3,022 84 4,908 57 Commercial - - - - - - Consumer - - - - - - Total $ 12,782 $ 8,016 $ 4,766 $ 249 $ 12,852 $ 130 Total impaired loans: Construction $ 11,706 $ 3,550 $ 4,333 $ 683 $ 7,899 $ 30 Residential real estate 8,195 5,354 2,620 282 7,772 43 Commercial real estate 6,112 2,358 3,197 183 5,629 57 Commercial - - - - - - Consumer 99 99 - - 99 - Total $ 26,112 $ 11,361 $ 10,150 $ 1,148 $ 21,399 $ 130 Recorded Recorded March 31, 2016 Unpaid investment investment Average Interest principal with no with an Related recorded income (Dollars in thousands) balance allowance allowance allowance investment recognized December 31, 2016 Impaired nonaccrual loans: Construction $ 7,247 $ - $ 3,818 $ 1,621 $ 7,216 $ - Residential real estate 4,013 1,957 1,946 166 2,292 - Commercial real estate 1,801 959 193 117 2,559 - Commercial - - - - 158 - Consumer 99 99 - - 121 - Total $ 13,160 $ 3,015 $ 5,957 $ 1,904 $ 12,346 $ - Impaired accruing TDRs: Construction $ 4,189 $ 3,479 $ 710 $ 18 $ 4,041 $ 25 Residential real estate 3,875 2,829 1,046 151 5,669 55 Commercial real estate 4,936 1,573 3,363 68 5,363 46 Commercial - - - - - - Consumer - - - - - - Total $ 13,000 $ 7,881 $ 5,119 $ 237 $ 15,073 $ 126 Total impaired loans: Construction $ 11,436 $ 3,479 $ 4,528 $ 1,639 $ 11,257 $ 25 Residential real estate 7,888 4,786 2,992 317 7,961 55 Commercial real estate 6,737 2,532 3,556 185 7,922 46 Commercial - - - - 158 - Consumer 99 99 - - 121 - Total $ 26,160 $ 10,896 $ 11,076 $ 2,141 $ 27,419 $ 126 |
Troubled Debt Restructurings on Financing Receivables | The following tables provide a roll-forward for troubled debt restructurings as of March 31, 2017 and March 31, 2016 . 1/1/2017 3/31/2017 TDR New Disbursements Charge Reclassifications/ TDR Related (Dollars in thousands) Balance TDRs (Payments) offs Transfer In/(Out) Payoffs Balance Allowance For three months ended March 31, 2017 Accruing TDRs Construction $ 4,189 $ - $ (10) $ - $ - $ - $ 4,179 $ 17 Residential real estate 3,875 - (82) (89) - - 3,704 148 Commercial real estate 4,936 - (37) - - - 4,899 84 Commercial - - - - - - - - Consumer - - - - - - - - Total $ 13,000 $ - $ (129) $ (89) $ - $ - $ 12,782 $ 249 Nonaccrual TDRs Construction $ 3,818 $ - $ (190) $ - $ - $ - $ 3,628 $ 666 Residential real estate 1,603 - (22) - - - 1,581 134 Commercial real estate 83 - - - - - 83 - Commercial - - - - - - - - Consumer - - - - - - - - Total $ 5,504 $ - $ (212) $ - $ - $ - $ 5,292 $ 800 Total $ 18,504 $ - $ (341) $ (89) $ - $ - $ 18,074 $ 1,049 1/1/2016 3/31/2016 TDR New Disbursements Charge Reclassifications/ TDR Related (Dollars in thousands) Balance TDRs (Payments) offs Transfer In/(Out) Payoffs Balance Allowance For three months ended March 31, 2016 Accruing TDRs Construction $ 4,069 $ - $ (77) $ - $ - $ - $ 3,992 $ 28 Residential real estate 5,686 - (31) - - - 5,655 112 Commercial real estate 5,740 - (517) (117) - - 5,106 552 Commercial - - - - - - - - Consumer - - - - - - - - Total $ 15,495 $ - $ (625) $ (117) $ - $ - $ 14,753 $ 692 Nonaccrual TDRs Construction $ 4,960 $ 2,570 $ (691) $ (241) $ - $ - $ 6,598 $ 755 Residential real estate 445 - (288) - - - 157 11 Commercial real estate - - - - - - - - Commercial - - - - - - - - Consumer 23 - - - - - 23 - Total $ 5,428 $ 2,570 $ (979) $ (241) $ - $ - $ 6,778 $ 766 Total $ 20,923 $ 2,570 $ (1,604) $ (358) $ - $ - $ 21,531 $ 1,458 The following tables provide information on loans that were modified and considered TDRs during the three months ended March 31, 2017 and March 31, 2016 . Premodification Postmodification outstanding outstanding Number of recorded recorded Related (Dollars in thousands) contracts investment investment allowance TDRs: For three months ended March 31, 2017 Construction - $ - $ - $ - Residential real estate - - - - Commercial real estate 1 760 755 - Commercial - - - - Consumer - - - - Total 1 $ 760 $ 755 $ - For three months ended March 31, 2016 Construction 1 $ 2,570 $ 2,570 $ - Residential real estate - - - - Commercial real estate - - - - Commercial - - - - Consumer - - - - Total 1 $ 2,570 $ 2,570 $ - During the three months ended March 31, 2017, there was one TDR which was modified. The modification to this TDR consisted of a change in maturity date. The following tables provide information on TDRs that defaulted during the three months ended March 31, 2017 and March 31, 2016 . 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 three months ended March 31, 2017 Construction - $ - $ - Residential real estate 1 89 - Commercial real estate - - - Commercial - - - Consumer - - - Total 1 $ 89 $ - For three months ended March 31, 2016 Construction 1 $ 241 $ - Residential real estate - - - Commercial real estate 1 117 - Commercial - - - Consumer - - - Total 2 $ 358 $ - |
Financing Receivable Credit Quality Indicators | The following tables provide information on loan risk ratings as of March 31, 2017 and December 31, 2016 . Special (Dollars in thousands) Pass/Performing Mention Substandard Doubtful Total March 31, 2017 Construction $ 80,284 $ 4,164 $ 7,050 $ - $ 91,498 Residential real estate 317,461 6,496 7,234 - 331,191 Commercial real estate 364,732 15,925 7,734 - 388,391 Commercial 73,304 814 71 - 74,189 Consumer 6,496 - 99 - 6,595 Total $ 842,277 $ 27,399 $ 22,188 $ - $ 891,864 Special (Dollars in thousands) Pass/Performing Mention Substandard Doubtful Total December 31, 2016 Construction $ 72,641 $ 4,195 $ 7,166 $ - $ 84,002 Residential real estate 312,242 6,646 6,880 - 325,768 Commercial real estate 363,461 10,939 8,281 - 382,681 Commercial 71,313 857 265 - 72,435 Consumer 6,540 - 99 - 6,639 Total $ 826,197 $ 22,637 $ 22,691 $ - $ 871,525 |
Past Due Financing Receivables | The following tables provide information on the aging of the loan portfolio as of March 31, 2017 and December 31, 2016 . Accruing 30-59 days 60-89 days Greater than Total (Dollars in thousands) Current past due past due 90 days past due Nonaccrual Total March 31, 2017 Construction $ 87,683 $ 111 $ - $ - $ 111 $ 3,704 $ 91,498 Residential real estate 324,573 1,062 1,286 - 2,348 4,270 331,191 Commercial real estate 385,788 1,449 390 108 1,947 656 388,391 Commercial 74,088 89 12 - 101 - 74,189 Consumer 6,465 13 8 10 31 99 6,595 Total $ 878,597 $ 2,724 $ 1,696 $ 118 $ 4,538 $ 8,729 $ 891,864 Percent of total loans 98.5 % 0.3 % 0.2 % - % 0.5 % 1.0 % 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, 2016 Construction $ 80,079 $ - $ 105 $ - $ 105 $ 3,818 $ 84,002 Residential real estate 317,992 1,778 2,095 - 3,873 3,903 325,768 Commercial real estate 375,552 3,219 2,758 - 5,977 1,152 382,681 Commercial 72,272 19 134 10 163 - 72,435 Consumer 6,515 13 2 10 25 99 6,639 Total $ 852,410 $ 5,029 $ 5,094 $ 20 $ 10,143 $ 8,972 $ 871,525 Percent of total loans 97.8 % 0.6 % 0.6 % - % 1.2 % 1.0 % 100.0 % |
Consolidated Allowance for Credit Losses on Financing Receivables | Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Unallocated Total For three months ended March 31, 2017 Allowance for credit losses: Beginning Balance $ 2,787 $ 1,953 $ 2,610 $ 1,145 $ 231 $ - $ 8,726 Charge-offs (29) (223) - (65) - - (317) Recoveries 7 11 11 58 4 - 91 Net charge-offs (22) (212) 11 (7) 4 - (226) Provision (475) 390 291 200 21 - 427 Ending Balance $ 2,290 $ 2,131 $ 2,912 $ 1,338 $ 256 $ - $ 8,927 Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Unallocated Total For three months ended March 31, 2016 Allowance for credit losses: Beginning Balance $ 1,646 $ 2,181 $ 2,999 $ 558 $ 156 $ 776 $ 8,316 Charge-offs (241) (16) (238) (67) (8) - (570) Recoveries 6 34 - 65 8 - 113 Net charge-offs (235) 18 (238) (2) - - (457) Provision 342 (185) 496 29 21 (253) 450 Ending Balance $ 1,753 $ 2,014 $ 3,257 $ 585 $ 177 $ 523 $ 8,309 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Other Assets [Abstract] | |
Schedule of Other Assets | The Company had the following other assets at March 31, 2017 and December 31, 2016 . (Dollars in thousands) March 31, 2017 December 31, 2016 Nonmarketable investment securities $ 3,070 $ 1,650 Accrued interest receivable 2,753 2,675 Deferred income taxes 4,973 7,039 Prepaid expenses 1,215 1,149 Cash surrender value on life insurance 2,591 2,589 Other assets 3,656 3,781 Total $ 18,258 $ 18,883 |
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 March 31, 2017 and December 31, 2016 . March 31, December 31, (Dollars in thousands) 2017 2016 Deferred tax assets: Allowance for credit losses $ 3,566 $ 3,486 Reserve for off-balance sheet commitments 122 122 Net operating loss carry forward 1,260 2,232 Write-downs of other real estate owned 267 387 Deferred income 985 1,011 Unrealized losses on available-for-sale securities 189 672 Accrued expenses - - AMT Credits 606 869 Other 1,013 1,192 Total deferred tax assets 8,008 9,971 Deferred tax liabilities: Depreciation 220 239 Amortization on loans FMV adjustment 145 156 Purchase accounting adjustments 2,153 2,019 Deferred capital gain on branch sale 353 401 Other 164 116 Total deferred tax liabilities 3,035 2,931 Net deferred tax assets $ 4,973 $ 7,040 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Other Liabilities [Abstract] | |
Schedule of Other Liabilities | The Company had the following other liabilities at March 31, 2017 and December 31, 2016 . (Dollars in thousands) March 31, 2017 December 31, 2016 Accrued interest payable $ 67 $ 74 Other accounts payable 1,878 2,461 Deferred compensation liability 1,415 1,444 Other liabilities 1,449 1,301 Total $ 4,809 $ 5,280 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Stock-Based Compensation [Abstract] | |
Schedule of Stock-Based Compensation | The following tables provide information on stock-based compensation expense for the three months ended March 31, 2017 and 2016 . For the Three Months Ended March 31, (Dollars in thousands) 2017 2016 Stock-based compensation expense $ 418 $ 111 Excess tax benefits related to stock-based compensation 2 3 March 31, (Dollars in thousands) 2017 2016 Unrecognized stock-based compensation expense $ 345 $ 70 Weighted average period unrecognized expense is expected to be recognized 0.1 years 0.6 years |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | The following table summarizes restricted stock award activity for the Company under the 2016 Equity Plan for the three months ended March 31, 2017 and 2016 . Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 Weighted Average Weighted Average Number of Grant Date Number of Grant Date Shares Fair Value Shares Fair Value Nonvested at beginning of period 17,066 $ 11.46 12,488 $ 8.74 Granted 7,378 16.44 8,524 11.16 Vested (8,138) 13.92 (13,467) 9.49 Cancelled - - - - Nonvested at end of period 16,306 $ 12.49 7,545 $ 10.16 |
Schedule of Share-based Compensation, Restricted Stock Award Activity | The following table summarizes restricted stock units activity for the Company under the 2016 and 2006 Equity Plans for the three months ended March 31, 2017 and 2016. Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 Weighted Average Weighted Average Number of Grant Date Number of Grant Date Shares Fair Value Shares Fair Value Outstanding at beginning of period 46,342 $ 10.64 - $ - Granted - - 26,943 9.49 Vested - - - - Forfeited - - - - Outstanding at end of period 46,342 $ 10.64 26,943 $ 9.49 |
Schedule of Share-based Compensation, Stock Options Activity | The following table summarizes stock option activity for the Company under the 2016 Equity Plan for the three months ended March 31, 2017 and 2016 . Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 Weighted Average Weighted Average Number of Grant Date Number of Grant Date Shares Fair Value Shares Fair Value Outstanding at beginning of period 62,086 $ 8.29 61,327 $ 8.05 Granted 1,202 10.99 12,443 11.12 Exercised (859) 6.64 (450) 6.64 Expired/Cancelled - - - - Outstanding at end of period 62,429 $ 8.36 73,320 $ 8.58 Exercisable at end of period 61,828 $ 8.34 67,099 $ 8.35 |
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 2017 and 2016 . 2017 2016 Dividend yield 0.84 % 0.73 % Expected volatility 64.80 % 38.60 % Expected forfeiture rate - % - % Risk-free interest rate 2.42 % 1.75 % Expected contract life (in years) 10 years 10 years |
Accumulated Other Comprehensi26
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 three months ended March 31, 2017 and 2016 . Accumulated net unrealized holding Total accumulated gains (losses) on other available for sale comprehensive (Dollars in thousands) securities income(loss) Balance, December 31, 2016 $ (993) $ (993) Other comprehensive income 742 742 Balance, March 31, 2017 $ (251) $ (251) Balance, December 31, 2015 $ (71) $ (71) Other comprehensive income 947 947 Balances, March 31, 2016 $ 876 $ 876 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 and December 31, 2016 . No assets were transferred from one hierarchy level to another during the first three months of 2017 or 2016 . Significant Other Significant Quoted Observable Unobservable Prices Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) March 31, 2017 Securities available for sale: U.S. Government agencies $ 43,275 $ - $ 43,275 $ - Mortgage-backed 134,149 - 134,149 - Equity 648 - 648 - Total $ 178,072 $ - $ 178,072 $ - Significant Other Significant Quoted Observable Unobservable Prices Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) December 31, 2016 Securities available for sale: U.S. Government agencies $ 34,318 $ - $ 34,318 $ - Mortgage-backed 128,944 - 128,944 - Equity 640 - 640 - Total $ 163,902 $ - $ 163,902 $ - |
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 March 31, 2017 and December 31, 2016 . The assets in the following table were transferred during 2016 from Level 2 to Level 3, based on management’s reassessment an evaluation of the inputs in relation to impaired loans and foreclosed assets. This reassessment resulted in management conclusion that the inputs for these assets were more reflective of Level 3 as unobservable inputs and applied retrospectively to prior periods reported. Significant Other Significant Quoted Observable Unobservable Prices Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) March 31, 2017 Impaired loans Construction $ 7,200 $ - $ - $ 7,200 Residential real estate 7,692 - - 7,692 Commercial real estate 5,372 - - 5,372 Commercial - - - - Consumer 99 - - 99 Total impaired loans 20,363 - - 20,363 Other real estate owned 2,354 - - 2,354 Total assets measured at fair value on a nonrecurring basis $ 22,717 $ - $ - $ 22,717 Significant Other Significant Quoted Observable Unobservable Prices Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) December 31, 2016 Impaired loans Construction $ 6,368 $ - $ - $ 6,368 Residential real estate 7,461 - - 7,461 Commercial real estate 5,903 - - 5,903 Commercial - - - - Consumer 99 - - 99 Total impaired loans 19,831 - - 19,831 Other real estate owned 2,477 - - 2,477 Total assets measured at fair value on a nonrecurring basis $ 22,308 $ - $ - $ 22,308 |
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. March 31, 2017 December 31, 2016 Estimated Estimated Carrying Fair Carrying Fair (Dollars in thousands) Amount Value Amount Value Financial assets Level 1 inputs Cash and cash equivalents $ 48,851 $ 48,851 $ 75,938 $ 75,938 Level 2 inputs Investment securities held to maturity $ 6,615 $ 6,855 $ 6,704 $ 6,806 Loans, net 882,937 885,952 862,799 867,594 Financial liabilities Level 2 inputs Deposits $ 1,001,542 $ 934,021 $ 997,489 $ 929,573 Short-term borrowings 2,919 2,919 3,203 3,203 |
Financial Instruments with Of28
Financial Instruments with Off-Balance Sheet Risk (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Financial Instruments With Off Balance Sheet Risk [Abstract] | |
Schedule of Commitments Outstanding | The following table provides information on commitments outstanding at March 31, 2017 and December 31, 2016 . (Dollars in thousands) March 31, 2017 December 31, 2016 Commitments to extend credit $ 190,254 $ 178,233 Letters of credit 7,774 8,024 Total $ 198,028 $ 186,257 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information by Segment | The following table includes selected financial information by business segments for the first three months of 2017 and 2016 . Community Insurance Products Parent Consolidated (Dollars in thousands) Banking and Services Company Total 2017 Interest Income $ 10,387 $ - $ 60 $ 10,447 Interest Expense (514) - - (514) Provision for credit losses (427) - - (427) Noninterest income 1,883 2,924 - 4,807 Noninterest expense (5,861) (1,809) (1,981) (9,651) Net intersegment (expense) income (1,677) (198) 1,875 - Income (loss) before taxes 3,791 917 (46) 4,662 Income tax (expense) benefit (1,513) (367) 18 (1,862) Net Income (loss) $ 2,278 $ 550 $ (28) $ 2,800 Total assets $ 1,150,411 $ 9,345 $ 7,141 $ 1,166,896 2016 Interest Income $ 9,846 $ - $ 62 $ 9,908 Interest Expense (665) - - (665) Provision for credit losses (450) - - (450) Noninterest income 1,830 2,711 - 4,541 Noninterest expense (5,297) (1,709) (2,333) (9,339) Net intersegment (expense) income (1,936) (172) 2,108 - Income (loss) before taxes 3,328 830 (163) 3,995 Income tax (expense) benefit (1,279) (319) 63 (1,535) Net Income (loss) $ 2,049 $ 511 $ (100) $ 2,460 Total assets $ 1,103,842 $ 9,133 $ 18,200 $ 1,131,175 |
Earnings Per Share (Calculation
Earnings Per Share (Calculation of Earnings Per Common Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Net income | $ 2,800 | $ 2,460 |
Weighted average shares outstanding - Basic (in shares) | 12,670,000 | 12,635,000 |
Dilutive effect of common stock equivalents-options | 21,000 | 14,000 |
Dilutive effect of common stock equivalents-restricted stock units | 16,000 | |
Weighted average shares outstanding - Diluted (in shares) | 12,707,000 | 12,649,000 |
Earnings per common share - Basic (in dollars per share) | $ 0.22 | $ 0.19 |
Earnings per common share - Diluted (in dollars per share) | $ 0.22 | $ 0.19 |
Weighted average common stock excluded from calculation of diluted EPS | 0 | 0 |
Investment Securities (Amortize
Investment Securities (Amortized Cost and Estimated Fair Values of Investment Securities) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Available-for-sale securities, Amortized Cost | $ 178,415 | $ 165,462 | |
Available-for-sale securities, Gross Unrealized Gains | 519 | 319 | |
Available-for-sale securities, Gross Unrealized Losses | 862 | 1,879 | |
Available-for-sale securities, Estimated Fair Value | 178,072 | 163,902 | |
Held-to-maturity securities, Amortized Cost | 6,615 | 6,704 | |
Held-to-maturity securities, Gross Unrealized Gains | 240 | 102 | |
Held-to-maturity securities, Estimated Fair Value | 6,855 | 6,806 | |
Equity [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Available-for-sale securities, Amortized Cost | 655 | 652 | |
Available-for-sale securities, Gross Unrealized Losses | 7 | 12 | |
Available-for-sale securities, Estimated Fair Value | 648 | 640 | |
Held-to-maturity securities, Amortized Cost | 3,000 | ||
Other Equity Securities [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Available-for-sale securities, Amortized Cost | [1] | 3,000 | 3,000 |
Available-for-sale securities, Gross Unrealized Gains | [1] | 139 | |
Available-for-sale securities, Estimated Fair Value | [1] | 3,139 | 3,000 |
U.S. Government Agencies [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Available-for-sale securities, Amortized Cost | 43,311 | 34,320 | |
Available-for-sale securities, Gross Unrealized Gains | 38 | 56 | |
Available-for-sale securities, Gross Unrealized Losses | 74 | 58 | |
Available-for-sale securities, Estimated Fair Value | 43,275 | 34,318 | |
Held-to-maturity securities, Amortized Cost | 2,001 | 2,089 | |
Held-to-maturity securities, Gross Unrealized Gains | 29 | 26 | |
Held-to-maturity securities, Estimated Fair Value | 2,030 | 2,115 | |
States and Political Subdivisions [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Held-to-maturity securities, Amortized Cost | 1,614 | 1,615 | |
Held-to-maturity securities, Gross Unrealized Gains | 72 | 76 | |
Held-to-maturity securities, Estimated Fair Value | 1,686 | 1,691 | |
Mortgage-backed [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Available-for-sale securities, Amortized Cost | 134,449 | 130,490 | |
Available-for-sale securities, Gross Unrealized Gains | 481 | 263 | |
Available-for-sale securities, Gross Unrealized Losses | 781 | 1,809 | |
Available-for-sale securities, Estimated Fair Value | $ 134,149 | $ 128,944 | |
[1] | On December 15, 2016, the Company bought $3.0 million in subordinated notes from a local regional bank which it intends to hold to maturity of December 30, 2026. |
Investment Securities (Gross Un
Investment Securities (Gross Unrealized Losses and Fair Value by Length of Continuous Unrealized Loss Position) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | $ 76,693 | $ 112,803 |
Available-for-sale securities, continuous unrealized loss position, less than 12 Months, unrealized losses | 615 | 1,616 |
Available-for-sale securities, continuous unrealized loss position, more than 12 Months, fair value | 8,883 | 9,208 |
Available-for-sale securities, continuous unrealized loss position, more than 12 Months, unrealized losses | 247 | 263 |
Available-for-sale securities, continuous unrealized loss position, fair value | 85,576 | 122,011 |
Available-for-sale securities, continuous unrealized loss position, unrealized losses | 862 | 1,879 |
Equity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 648 | 640 |
Available-for-sale securities, continuous unrealized loss position, less than 12 Months, unrealized losses | 7 | 12 |
Available-for-sale securities, continuous unrealized loss position, fair value | 648 | 640 |
Available-for-sale securities, continuous unrealized loss position, unrealized losses | 7 | 12 |
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 | 26,948 | 11,926 |
Available-for-sale securities, continuous unrealized loss position, less than 12 Months, unrealized losses | 74 | 58 |
Available-for-sale securities, continuous unrealized loss position, fair value | 26,948 | 11,926 |
Available-for-sale securities, continuous unrealized loss position, unrealized losses | 74 | 58 |
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 | 49,097 | 100,237 |
Available-for-sale securities, continuous unrealized loss position, less than 12 Months, unrealized losses | 534 | 1,546 |
Available-for-sale securities, continuous unrealized loss position, more than 12 Months, fair value | 8,883 | 9,208 |
Available-for-sale securities, continuous unrealized loss position, more than 12 Months, unrealized losses | 247 | 263 |
Available-for-sale securities, continuous unrealized loss position, fair value | 57,980 | 109,445 |
Available-for-sale securities, continuous unrealized loss position, unrealized losses | $ 781 | $ 1,809 |
Investment Securities (Amorti33
Investment Securities (Amortized Cost and Estimated Fair Value by Maturity Date) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale, Amortized Cost, Due in one year or less | $ 15,012 | |
Available for sale, Amortized Cost, Due after one year through five years | 26,022 | |
Available for sale, Amortized Cost, Due after five years through ten years | 17,745 | |
Available for sale, Amortized Cost, Due after ten years | 118,981 | |
Available for sale, Amortized Cost, Debt maturities | 177,760 | |
Available-for-sale securities, Amortized Cost | 178,415 | $ 165,462 |
Available for sale, Estimated Fair Value, Due in one year or less | 15,007 | |
Available for sale, Estimated Fair Value, Due after one year through five years | 25,974 | |
Available for sale, Estimated Fair Value, Due after five years through ten years | 17,670 | |
Available for sale, Estimated Fair Value, Due after ten years | 118,773 | |
Available for sale, Estimated Fair Value, Debt maturities | 177,424 | |
Available for sale, Estimated Fair Value, Total | 178,072 | 163,902 |
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 | 500 | |
Held to maturity securities, Amortized Cost, Due after five years through ten years | 904 | |
Held to maturity securities, Amortized Cost, Due after ten years | 2,001 | |
Held to maturity securities, Amortized Cost, Debt maturities | 3,615 | |
Held to maturity securities, Amortized Cost, Total | 6,615 | 6,704 |
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 | 529 | |
Held to maturity securities, Estimated Fair Value, Due after five years through ten years | 947 | |
Held to maturity securities, Estimated Fair Value, Due after ten years | 2,030 | |
Held to maturity securities, Estimated Fair Value, Debt maturities | 3,716 | |
Held-to-maturity securities, Estimated Fair Value, Total | 6,855 | 6,806 |
Equity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Amortized Cost | 655 | 652 |
Available for sale, Estimated Fair Value, Total | 648 | $ 640 |
Held to maturity securities, Amortized Cost, Total | 3,000 | |
Held to maturity securities, Estimated Fair Value, Debt maturities | $ 3,139 |
Loans and Allowance for Credi34
Loans and Allowance for Credit Losses (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017USD ($)property | Dec. 31, 2016USD ($)property | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | $ 891,864 | $ 871,525 |
Allowance period increase due to revised methodology used in calculation | 1,100 | |
Allowance period adjusted amoung due to revised methodology used in calculation | 250 | |
Other real estate owned, net | 2,354 | 2,477 |
Residential Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | 331,191 | 325,768 |
Other real estate owned, net | $ 92 | $ 92 |
Number of properties in other real estate owned | property | 3 | 3 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | $ 6,595 | $ 6,639 |
Mortgage loans in process of foreclosure, amount | 410 | 687 |
Special Mention [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | 27,399 | 22,637 |
Special Mention [Member] | Residential Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | 6,496 | 6,646 |
Special Mention [Member] | Impaired Nonaccrual Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | 0 | 0 |
Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | 22,188 | 22,691 |
Substandard [Member] | Residential Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | 7,234 | 6,880 |
Substandard [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | 99 | 99 |
Substandard [Member] | Impaired Nonaccrual Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | 8,700 | 9,000 |
Doubtful [Member] | Impaired Nonaccrual Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | $ 0 | $ 0 |
Loans and Allowance for Credi35
Loans and Allowance for Credit Losses (Loans by Class of Loan Portfolio) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | $ 891,864 | $ 871,525 |
Allowance for credit losses | (8,927) | (8,726) |
Loans, net | 882,937 | 862,799 |
Commercial and Residential Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 91,498 | 84,002 |
Allowance for credit losses | (2,290) | (2,787) |
Residential Portfolio Segment [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 331,191 | 325,768 |
Allowance for credit losses | (2,131) | (1,953) |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 388,391 | 382,681 |
Allowance for credit losses | (2,912) | (2,610) |
Commercial Portfolio Segment [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 74,189 | 72,435 |
Allowance for credit losses | (1,338) | (1,145) |
Consumer Portfolio Segment [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 6,595 | 6,639 |
Allowance for credit losses | $ (256) | $ (231) |
Loans and Allowance for Credi36
Loans and Allowance for Credit Losses (Allowance for Credit Losses on Loans Receivable with Impairment) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | $ 21,511 | $ 21,972 |
Loans collectively evaluated for impairment | 870,353 | 849,553 |
Total loans | 891,864 | 871,525 |
Allowance for credit losses allocated to: | ||
Loans individually evaluated for impairment | 1,148 | 2,141 |
Loans collectively evaluated for impairment | 7,779 | 6,585 |
Loans and leases receivable, allowance, total | 8,927 | 8,726 |
Commercial and Residential Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 7,883 | 8,007 |
Loans collectively evaluated for impairment | 83,615 | 75,995 |
Total loans | 91,498 | 84,002 |
Allowance for credit losses allocated to: | ||
Loans individually evaluated for impairment | 683 | 1,639 |
Loans collectively evaluated for impairment | 1,607 | 1,148 |
Loans and leases receivable, allowance, total | 2,290 | 2,787 |
Residential Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 7,974 | 7,778 |
Loans collectively evaluated for impairment | 323,217 | 317,990 |
Total loans | 331,191 | 325,768 |
Allowance for credit losses allocated to: | ||
Loans individually evaluated for impairment | 282 | 317 |
Loans collectively evaluated for impairment | 1,849 | 1,636 |
Loans and leases receivable, allowance, total | 2,131 | 1,953 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 5,555 | 6,088 |
Loans collectively evaluated for impairment | 382,836 | 376,593 |
Total loans | 388,391 | 382,681 |
Allowance for credit losses allocated to: | ||
Loans individually evaluated for impairment | 183 | 185 |
Loans collectively evaluated for impairment | 2,729 | 2,425 |
Loans and leases receivable, allowance, total | 2,912 | 2,610 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans collectively evaluated for impairment | 74,189 | 72,435 |
Total loans | 74,189 | 72,435 |
Allowance for credit losses allocated to: | ||
Loans collectively evaluated for impairment | 1,338 | 1,145 |
Loans and leases receivable, allowance, total | 1,338 | 1,145 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 99 | 99 |
Loans collectively evaluated for impairment | 6,496 | 6,540 |
Total loans | 6,595 | 6,639 |
Allowance for credit losses allocated to: | ||
Loans collectively evaluated for impairment | 256 | 231 |
Loans and leases receivable, allowance, total | 256 | 231 |
Unallocated Financing Receivables [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | ||
Loans collectively evaluated for impairment | ||
Total loans | ||
Allowance for credit losses allocated to: | ||
Loans individually evaluated for impairment | ||
Loans collectively evaluated for impairment | ||
Loans and leases receivable, allowance, total |
Loans and Allowance for Credi37
Loans and Allowance for Credit Losses (Impaired Financing Receivables by Loan Class) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Unpaid principal balance | $ 26,112 | $ 26,160 | |
Recorded investment with no allowance | 11,361 | 10,896 | |
Recorded investment with an allowance | 10,150 | 11,076 | |
Related allowance | 1,148 | 2,141 | |
Average recorded investment | 21,399 | $ 27,419 | |
Interest income recognized | 130 | 126 | |
Impaired Nonaccrual Loans [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Unpaid principal balance | 13,330 | 13,160 | |
Recorded investment with no allowance | 3,345 | 3,015 | |
Recorded investment with an allowance | 5,384 | 5,957 | |
Related allowance | 899 | 1,904 | |
Average recorded investment | 8,547 | 12,346 | |
Impaired Accruing Restructured Loans [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Unpaid principal balance | 12,782 | 13,000 | |
Recorded investment with no allowance | 8,016 | 7,881 | |
Recorded investment with an allowance | 4,766 | 5,119 | |
Related allowance | 249 | 237 | |
Average recorded investment | 12,852 | 15,073 | |
Interest income recognized | 130 | 126 | |
Residential Portfolio Segment [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Unpaid principal balance | 8,195 | 7,888 | |
Recorded investment with no allowance | 5,354 | 4,786 | |
Recorded investment with an allowance | 2,620 | 2,992 | |
Related allowance | 282 | 317 | |
Average recorded investment | 7,772 | 7,961 | |
Interest income recognized | 43 | 55 | |
Residential Portfolio Segment [Member] | Impaired Nonaccrual Loans [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Unpaid principal balance | 4,491 | 4,013 | |
Recorded investment with no allowance | 2,689 | 1,957 | |
Recorded investment with an allowance | 1,581 | 1,946 | |
Related allowance | 134 | 166 | |
Average recorded investment | 4,010 | 2,292 | |
Residential Portfolio Segment [Member] | Impaired Accruing Restructured Loans [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Unpaid principal balance | 3,704 | 3,875 | |
Recorded investment with no allowance | 2,665 | 2,829 | |
Recorded investment with an allowance | 1,039 | 1,046 | |
Related allowance | 148 | 151 | |
Average recorded investment | 3,762 | 5,669 | |
Interest income recognized | 43 | 55 | |
Commercial Real Estate Portfolio Segment [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Unpaid principal balance | 6,112 | 6,737 | |
Recorded investment with no allowance | 2,358 | 2,532 | |
Recorded investment with an allowance | 3,197 | 3,556 | |
Related allowance | 183 | 185 | |
Average recorded investment | 5,629 | 7,922 | |
Interest income recognized | 57 | 46 | |
Commercial Real Estate Portfolio Segment [Member] | Impaired Nonaccrual Loans [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Unpaid principal balance | 1,213 | 1,801 | |
Recorded investment with no allowance | 481 | 959 | |
Recorded investment with an allowance | 175 | 193 | |
Related allowance | 99 | 117 | |
Average recorded investment | 721 | 2,559 | |
Commercial Real Estate Portfolio Segment [Member] | Impaired Accruing Restructured Loans [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Unpaid principal balance | 4,899 | 4,936 | |
Recorded investment with no allowance | 1,877 | 1,573 | |
Recorded investment with an allowance | 3,022 | 3,363 | |
Related allowance | 84 | 68 | |
Average recorded investment | 4,908 | 5,363 | |
Interest income recognized | 57 | 46 | |
Commercial Portfolio Segment [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Average recorded investment | 158 | ||
Commercial Portfolio Segment [Member] | Impaired Nonaccrual Loans [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Average recorded investment | 158 | ||
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 | |||
Interest income recognized | |||
Consumer Portfolio Segment [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Unpaid principal balance | 99 | 99 | |
Recorded investment with no allowance | 99 | 99 | |
Average recorded investment | 99 | 121 | |
Consumer Portfolio Segment [Member] | Impaired Nonaccrual Loans [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Unpaid principal balance | 99 | 99 | |
Recorded investment with no allowance | 99 | 99 | |
Average recorded investment | 99 | 121 | |
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 | 11,706 | 11,436 | |
Recorded investment with no allowance | 3,550 | 3,479 | |
Recorded investment with an allowance | 4,333 | 4,528 | |
Related allowance | 683 | 1,639 | |
Average recorded investment | 7,899 | 11,257 | |
Interest income recognized | 30 | 25 | |
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 | 7,527 | 7,247 | |
Recorded investment with no allowance | 76 | ||
Recorded investment with an allowance | 3,628 | 3,818 | |
Related allowance | 666 | 1,621 | |
Average recorded investment | 3,717 | 7,216 | |
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 | 4,179 | 4,189 | |
Recorded investment with no allowance | 3,474 | 3,479 | |
Recorded investment with an allowance | 705 | 710 | |
Related allowance | 17 | $ 18 | |
Average recorded investment | 4,182 | 4,041 | |
Interest income recognized | $ 30 | $ 25 |
Loans and Allowance for Credi38
Loans and Allowance for Credit Losses (Rollforward of TDRs) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR beginning balance | $ 18,504 | $ 20,923 |
New TDRs | 2,570 | |
Disbursements (payments) | (341) | (1,604) |
Charge offs | (89) | (358) |
TDR ending balance | 18,074 | 21,531 |
TDR, related allowance | 1,049 | 1,458 |
Impaired Nonaccrual Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR beginning balance | 5,504 | 5,428 |
New TDRs | 2,570 | |
Disbursements (payments) | (212) | (979) |
Charge offs | (241) | |
TDR ending balance | 5,292 | 6,778 |
TDR, related allowance | 800 | 766 |
Impaired Nonaccrual Loans [Member] | Residential Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR beginning balance | 1,603 | 445 |
Disbursements (payments) | (22) | (288) |
TDR ending balance | 1,581 | 157 |
TDR, related allowance | 134 | 11 |
Impaired Nonaccrual Loans [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR beginning balance | 83 | |
TDR ending balance | 83 | |
Impaired Nonaccrual Loans [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR beginning balance | 23 | |
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 | 3,818 | 4,960 |
New TDRs | 2,570 | |
Disbursements (payments) | (190) | (691) |
Charge offs | (241) | |
TDR ending balance | 3,628 | 6,598 |
TDR, related allowance | 666 | 755 |
Impaired Accruing Restructured Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR beginning balance | 13,000 | 15,495 |
Disbursements (payments) | (129) | (625) |
Charge offs | (89) | (117) |
TDR ending balance | 12,782 | 14,753 |
TDR, related allowance | 249 | 692 |
Impaired Accruing Restructured Loans [Member] | Residential Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR beginning balance | 3,875 | 5,686 |
Disbursements (payments) | (82) | (31) |
Charge offs | (89) | |
TDR ending balance | 3,704 | 5,655 |
TDR, related allowance | 148 | 112 |
Impaired Accruing Restructured Loans [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR beginning balance | 4,936 | 5,740 |
Disbursements (payments) | (37) | (517) |
Charge offs | (117) | |
TDR ending balance | 4,899 | 5,106 |
TDR, related allowance | 84 | 552 |
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 | 4,189 | 4,069 |
Disbursements (payments) | (10) | (77) |
TDR ending balance | 4,179 | 3,992 |
TDR, related allowance | $ 17 | $ 28 |
Loans and Allowance for Credi39
Loans and Allowance for Credit Losses (Troubled Debt Restructurings on Financing Receivables) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017USD ($)contract | Mar. 31, 2016USD ($)contract | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Number of contracts | contract | 1 | 1 |
Premodification outstanding recorded investment | $ 760 | $ 2,570 |
Postmodification outstanding recorded investment | 755 | 2,570 |
Related allowance | ||
Commercial and Residential Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Number of contracts | contract | 1 | |
Premodification outstanding recorded investment | $ 2,570 | |
Postmodification outstanding recorded investment | 2,570 | |
Related allowance | ||
Residential Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Related allowance | ||
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Number of contracts | contract | 1 | |
Premodification outstanding recorded investment | $ 760 | |
Postmodification outstanding recorded investment | 755 | |
Related allowance | ||
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Related allowance | ||
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Related allowance |
Loans and Allowance for Credi40
Loans and Allowance for Credit Losses (Troubled Debt Restructurings With Subsequent Default) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017USD ($)contract | Mar. 31, 2016USD ($)contract | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Number of contracts | contract | 1 | 2 |
Recorded investment | $ 89 | $ 358 |
Related allowance | ||
Residential Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Number of contracts | contract | 1 | |
Recorded investment | $ 89 | |
Related allowance | ||
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Number of contracts | contract | 1 | |
Recorded investment | $ 117 | |
Related allowance | ||
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Related allowance | ||
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Related allowance | ||
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 | |
Related allowance |
Loans and Allowance for Credi41
Loans and Allowance for Credit Losses (Financing Receivable Credit Quality Indicators) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | $ 891,864 | $ 871,525 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 842,277 | 826,197 |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 27,399 | 22,637 |
Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 22,188 | 22,691 |
Commercial and Residential Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 91,498 | 84,002 |
Commercial and Residential Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 80,284 | 72,641 |
Commercial and Residential Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 4,164 | 4,195 |
Commercial and Residential Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 7,050 | 7,166 |
Residential Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 331,191 | 325,768 |
Residential Portfolio Segment [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 317,461 | 312,242 |
Residential Portfolio Segment [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 6,496 | 6,646 |
Residential Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 7,234 | 6,880 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 388,391 | 382,681 |
Commercial Real Estate Portfolio Segment [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 364,732 | 363,461 |
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 15,925 | 10,939 |
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 7,734 | 8,281 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 74,189 | 72,435 |
Commercial Portfolio Segment [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 73,304 | 71,313 |
Commercial Portfolio Segment [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 814 | 857 |
Commercial Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 71 | 265 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 6,595 | 6,639 |
Consumer Portfolio Segment [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 6,496 | 6,540 |
Consumer Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | $ 99 | $ 99 |
Loans and Allowance for Credi42
Loans and Allowance for Credit Losses (Aging of Past Due Financing Receivables) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 878,597 | $ 852,410 |
Total past due | 4,538 | 10,143 |
Nonaccrual | 8,729 | 8,972 |
Total loans | $ 891,864 | $ 871,525 |
Percent of total loans, Current | 98.50% | 97.80% |
Percent of total loans, Total past due | 0.50% | 1.20% |
Percent of total loans, Nonaccrual | 1.00% | 1.00% |
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 | $ 2,724 | $ 5,029 |
Percent of total loans, Total past due | 0.30% | 0.60% |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | $ 1,696 | $ 5,094 |
Percent of total loans, Total past due | 0.20% | 0.60% |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | $ 118 | $ 20 |
Residential Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 324,573 | 317,992 |
Total past due | 2,348 | 3,873 |
Nonaccrual | 4,270 | 3,903 |
Total loans | 331,191 | 325,768 |
Residential Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 1,062 | 1,778 |
Residential Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 1,286 | 2,095 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 385,788 | 375,552 |
Total past due | 1,947 | 5,977 |
Nonaccrual | 656 | 1,152 |
Total loans | 388,391 | 382,681 |
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 | 1,449 | 3,219 |
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 | 390 | 2,758 |
Commercial Real Estate 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 | 108 | |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 74,088 | 72,272 |
Total past due | 101 | 163 |
Total loans | 74,189 | 72,435 |
Commercial Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 89 | 19 |
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 | 134 |
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 | 10 | |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 6,465 | 6,515 |
Total past due | 31 | 25 |
Nonaccrual | 99 | 99 |
Total loans | 6,595 | 6,639 |
Consumer Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 13 | 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 | 8 | 2 |
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 | 10 | 10 |
Construction Loans [Member] | Commercial and Residential Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 87,683 | 80,079 |
Total past due | 111 | 105 |
Nonaccrual | 3,704 | 3,818 |
Total loans | 91,498 | 84,002 |
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 | $ 111 | |
Construction Loans [Member] | Commercial and Residential 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 | $ 105 |
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 | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Allowance for credit losses: | ||
Beginning balance | $ 8,726 | $ 8,316 |
Charge-offs | (317) | (570) |
Recoveries | 91 | 113 |
Net charge-offs | (226) | (457) |
Provision | 427 | 450 |
Ending balance | 8,927 | 8,309 |
Commercial and Residential Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Allowance for credit losses: | ||
Beginning balance | 2,787 | 1,646 |
Charge-offs | (29) | (241) |
Recoveries | 7 | 6 |
Net charge-offs | (22) | (235) |
Provision | (475) | 342 |
Ending balance | 2,290 | 1,753 |
Residential Portfolio Segment [Member] | ||
Allowance for credit losses: | ||
Beginning balance | 1,953 | 2,181 |
Charge-offs | (223) | (16) |
Recoveries | 11 | 34 |
Net charge-offs | (212) | 18 |
Provision | 390 | (185) |
Ending balance | 2,131 | 2,014 |
Commercial Real Estate Portfolio Segment [Member] | ||
Allowance for credit losses: | ||
Beginning balance | 2,610 | 2,999 |
Charge-offs | (238) | |
Recoveries | 11 | |
Net charge-offs | 11 | (238) |
Provision | 291 | 496 |
Ending balance | 2,912 | 3,257 |
Commercial Portfolio Segment [Member] | ||
Allowance for credit losses: | ||
Beginning balance | 1,145 | 558 |
Charge-offs | (65) | (67) |
Recoveries | 58 | 65 |
Net charge-offs | (7) | (2) |
Provision | 200 | 29 |
Ending balance | 1,338 | 585 |
Consumer Portfolio Segment [Member] | ||
Allowance for credit losses: | ||
Beginning balance | 231 | 156 |
Charge-offs | (8) | |
Recoveries | 4 | 8 |
Net charge-offs | 4 | |
Provision | 21 | 21 |
Ending balance | $ 256 | 177 |
Unallocated Financing Receivables [Member] | ||
Allowance for credit losses: | ||
Beginning balance | 776 | |
Provision | (253) | |
Ending balance | $ 523 |
Other Assets (Narrative) (Detai
Other Assets (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
AMT carryover | $ 606 | $ 869 | ||
Deferred tax assets, valuation allowance, current | 0 | 0 | ||
Income (loss) from continuing operations before equity method investments, income taxes, extraordinary items, noncontrolling interest, total | 4,662 | $ 3,995 | $ 15,900 | $ 11,500 |
State and Local Jurisdiction [Member] | ||||
Operating loss carryforwards | $ 23,500 | |||
Minimum [Member] | State and Local Jurisdiction [Member] | ||||
Operating loss carryforwards, expiration date | Dec. 31, 2026 | |||
Maximum [Member] | State and Local Jurisdiction [Member] | ||||
Operating loss carryforwards, expiration date | Dec. 31, 2034 |
Other Assets (Schedule of Other
Other Assets (Schedule of Other Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Other Assets [Abstract] | ||
Nonmarketable investment securities | $ 3,070 | $ 1,650 |
Accrued interest receivable | 2,753 | 2,675 |
Deferred income taxes | 4,973 | 7,039 |
Prepaid expenses | 1,215 | 1,149 |
Cash surrender value of life insurance | 2,591 | 2,589 |
Other assets | 3,656 | 3,781 |
Total | $ 18,258 | $ 18,883 |
Other Assets (Schedule of Defer
Other Assets (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Allowance for credit losses | $ 3,566 | $ 3,486 |
Reserve for off-balance sheet commitments | 122 | 122 |
Net operating loss carry forward | 1,260 | 2,232 |
Write-downs of other real estate owned | 267 | 387 |
Deferred income | 985 | 1,011 |
Unrealized losses on available-for-sale securities | 189 | 672 |
Accrued expenses | ||
AMT carryover | 606 | 869 |
Other | 1,013 | 1,192 |
Total deferred tax assets | 8,008 | 9,971 |
Deferred tax liabilities: | ||
Depreciation | 220 | 239 |
Amortization on loans FMV adjustment | 145 | 156 |
Purchase accounting adjustments | 2,153 | 2,019 |
Deferred capital gain on branch sale | 353 | 401 |
Other | 164 | 116 |
Total deferred tax liabilities | 3,035 | 2,931 |
Net deferred tax assets | $ 4,973 | $ 7,040 |
Other Liabilities (Schedule of
Other Liabilities (Schedule of Other Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Other Liabilities [Abstract] | ||
Accrued interest payable | $ 67 | $ 74 |
Other accounts payable | 1,878 | 2,461 |
Deferred compensation liability | 1,415 | 1,444 |
Other liabilities | 1,449 | 1,301 |
Total | $ 4,809 | $ 5,280 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 30, 2017 | Dec. 31, 2016 | Feb. 08, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options, Weighted average remaining contractual term | 6 years 8 months 12 days | ||||||
Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Other than options, granted | 26,943 | ||||||
Equity Plan 2016 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares authorized for granting | 750,000 | ||||||
Shares available to be granted | 723,965 | ||||||
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. 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. | ||||||
Other than options, granted, fair value | $ 113 | $ 122 | |||||
Share price | $ 16.71 | ||||||
Equity Plan 2016 [Member] | Stock Appreciation Rights (SARs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award expiration | 10 years | ||||||
Equity Plan 2016 [Member] | Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 3 years | ||||||
Award description | Restricted stock units (RSUs) are similar to restricted stock, except the recipient does not receive the stock immediately, but instead receives it upon the terms and conditions of the Company's long-term incentive plans which are subject to performance milestones achieved at the end of a three-year period. Each RSU cliff vests at the end of the three-year period and entitles the recipient to receive one share of common stock on a specified issuance date. The recipient does not have any stockholder rights, including voting rights, with respect to the shares underlying awarded RSUs until the recipient becomes the holder of those shares. | ||||||
Equity Plan 2016 [Member] | Employee Stock Option [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award method used for valuation | Black-Scholes valuation model | ||||||
Share price | $ 11.35 | ||||||
Options, granted, weighted average fair value | $ 10.99 | ||||||
Options, outstanding intrinsic value | $ 521 | ||||||
Options, exercised, intrinsic value | 8 | $ 2 | |||||
Options, exercisable, intrinsic value | $ 232 | ||||||
Maximum [Member] | Equity Plan 2016 [Member] | Stock Appreciation Rights (SARs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 5 years | ||||||
Maximum [Member] | Equity Plan 2016 [Member] | Restricted Stock Units (RSUs) [Member] | Scenario, Forecast [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Other than options, granted | 48,871 | 43,821 | |||||
Minimum [Member] | Equity Plan 2016 [Member] | Stock Appreciation Rights (SARs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 1 year | ||||||
Minimum [Member] | Equity Plan 2016 [Member] | Restricted Stock Units (RSUs) [Member] | Scenario, Forecast [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Other than options, granted | 12,214 | 10,953 | |||||
Minimum [Member] | Equity Plan 2016 [Member] | Employee Stock Option [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share price | $ 15.89 |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule of Stock-Based Compensation) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Stock-Based Compensation [Abstract] | ||
Stock-based compensation expense | $ 418 | $ 111 |
Excess tax benefits related to stock-based compensation | 2 | 3 |
Unrecognized stock-based compensation expense | $ 345 | $ 70 |
Weighted average period unrecognized expense is expected to be recognized | 7 months 6 days | 6 months |
Stock-Based Compensation (Sch50
Stock-Based Compensation (Schedule of Stock-Based Compensation - RS Award Activity) (Details) - Restricted Stock [Member] - $ / shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Nonvested at beginning of period (in shares) | 17,066 | 12,488 |
Number of Shares, Granted (in shares) | 7,378 | 8,524 |
Number of Shares, Vested (in shares) | (8,138) | (13,467) |
Number of Shares, Nonvested at end of period (in shares) | 16,306 | 7,545 |
Weighted Average Grant Date Fair Value, Nonvested at beginning of period (in dollars per share) | $ 11.46 | $ 8.74 |
Weighted Average Grant Date Fair Value, Granted (in dollars per share) | 16.44 | 11.16 |
Weighted Average Grant Date Fair Value, Vested (in dollars per share) | 13.92 | 9.49 |
Weighted Average Grant Date Fair Value, Nonvested at end of period (in dollars per share) | $ 12.49 | $ 10.16 |
Stock-Based Compensation (Sch51
Stock-Based Compensation (Schedule of Stock-Based Compensation - RSU Award Activity) (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Nonvested at beginning of period (in shares) | 46,342 | |
Number of Shares, Granted (in shares) | 26,943 | |
Number of Shares, Nonvested at end of period (in shares) | 46,342 | 26,943 |
Weighted Average Grant Date Fair Value, Nonvested at beginning of period (in dollars per share) | $ 10.64 | |
Weighted Average Grant Date Fair Value, Granted (in dollars per share) | 9.49 | |
Weighted Average Grant Date Fair Value, Nonvested at end of period (in dollars per share) | $ 10.64 | $ 9.49 |
Stock-Based Compensation (Sch52
Stock-Based Compensation (Schedule of Stock Option Activity) (Details) - Employee Stock Option [Member] - $ / shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares, Outstanding at beginning of period (in shares) | 62,086 | 61,327 |
Number of shares, Granted (in shares) | 1,202 | 12,443 |
Number of shares, Exercised (in shares) | (859) | (450) |
Number of shares, Outstanding at end of period (in shares) | 62,429 | 73,320 |
Number of shares, Exercisable at end of period (in shares) | 61,828 | 67,099 |
Weighted Average Exercise Price, Outstanding at beginning of period | $ 8.29 | $ 8.05 |
Weighted Average Exercise Price, Granted | 10.99 | 11.12 |
Weighted Average Exercise Price, Exercised | 6.64 | 6.64 |
Weighted Average Exercise Price, Outstanding at end of period | 8.36 | 8.58 |
Weighted Average Exercise Price, Exercisable at end of period | $ 8.34 | $ 8.35 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Option Valuation Assumptions) (Details) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Stock-Based Compensation [Abstract] | ||
Dividend yield | 0.84% | 0.73% |
Expected volatility | 64.80% | 38.60% |
Risk-free interest rate | 2.42% | 1.75% |
Expected contract life (in years) | 10 years | 10 years |
Accumulated Other Comprehensi54
Accumulated Other Comprehensive Income (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Total accumulated other comprehensive income (loss), Beginning Balance | $ (993) | $ (71) |
Other comprehensive income | 742 | 947 |
Total accumulated other comprehensive income (loss), Ending Balance | (251) | 876 |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Total accumulated other comprehensive income (loss), Beginning Balance | (993) | (71) |
Other comprehensive income | 742 | 947 |
Total accumulated other comprehensive income (loss), Ending Balance | $ (251) | $ 876 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Securities available for sale: | ||
Available-for-sale Securities, Fair Value Disclosure | $ 178,072 | $ 163,902 |
U.S. Government Agencies [Member] | ||
Securities available for sale: | ||
Available-for-sale Securities, Fair Value Disclosure | 43,275 | 34,318 |
Mortgage-backed [Member] | ||
Securities available for sale: | ||
Available-for-sale Securities, Fair Value Disclosure | 134,149 | 128,944 |
Equity [Member] | ||
Securities available for sale: | ||
Available-for-sale Securities, Fair Value Disclosure | 648 | 640 |
Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale: | ||
Available-for-sale Securities, Fair Value Disclosure | 178,072 | 163,902 |
Fair Value, Inputs, Level 2 [Member] | U.S. Government Agencies [Member] | ||
Securities available for sale: | ||
Available-for-sale Securities, Fair Value Disclosure | 43,275 | 34,318 |
Fair Value, Inputs, Level 2 [Member] | Mortgage-backed [Member] | ||
Securities available for sale: | ||
Available-for-sale Securities, Fair Value Disclosure | 134,149 | 128,944 |
Fair Value, Inputs, Level 2 [Member] | Equity [Member] | ||
Securities available for sale: | ||
Available-for-sale Securities, Fair Value Disclosure | $ 648 | $ 640 |
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 | Mar. 31, 2017 | Dec. 31, 2016 |
Impaired loans: | ||
Impaired loans | $ 20,363 | $ 19,831 |
Other real estate owned | 2,354 | 2,477 |
Total assets measured at fair value on a nonrecurring basis | 22,717 | 22,308 |
Fair Value, Inputs, Level 3 [Member] | ||
Impaired loans: | ||
Impaired loans | 20,363 | 19,831 |
Other real estate owned | 2,354 | 2,477 |
Total assets measured at fair value on a nonrecurring basis | 22,717 | 22,308 |
Residential Portfolio Segment [Member] | ||
Impaired loans: | ||
Impaired loans | 7,692 | 7,461 |
Residential Portfolio Segment [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Impaired loans: | ||
Impaired loans | 7,692 | 7,461 |
Commercial Real Estate Portfolio Segment [Member] | ||
Impaired loans: | ||
Impaired loans | 5,372 | 5,903 |
Commercial Real Estate Portfolio Segment [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Impaired loans: | ||
Impaired loans | 5,372 | 5,903 |
Consumer Portfolio Segment [Member] | ||
Impaired loans: | ||
Impaired loans | 99 | 99 |
Consumer Portfolio Segment [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Impaired loans: | ||
Impaired loans | 99 | 99 |
Construction Loans [Member] | Commercial and Residential Real Estate Portfolio Segment [Member] | ||
Impaired loans: | ||
Impaired loans | 7,200 | 6,368 |
Construction Loans [Member] | Commercial and Residential Real Estate Portfolio Segment [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Impaired loans: | ||
Impaired loans | $ 7,200 | $ 6,368 |
Fair Value Measurements (Estima
Fair Value Measurements (Estimated Fair Values of Financial Assets and Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Financial assets, Estimated Fair Value | ||
Investment securities held to maturity | $ 6,855 | $ 6,806 |
Fair Value, Inputs, Level 1 [Member] | Carrying Amount [Member] | ||
Financial assets, Estimated Fair Value | ||
Cash and cash equivalents | 48,851 | 75,938 |
Fair Value, Inputs, Level 1 [Member] | Estimated Fair Value [Member] | ||
Financial assets, Estimated Fair Value | ||
Cash and cash equivalents | 48,851 | 75,938 |
Fair Value, Inputs, Level 2 [Member] | Carrying Amount [Member] | ||
Financial assets, Estimated Fair Value | ||
Investment securities held to maturity | 6,615 | 6,704 |
Loans, net | 882,937 | 862,799 |
Financial liabilities, Estimated Fair Value | ||
Deposits | 1,001,542 | 997,489 |
Short-term borrowings | 2,919 | 3,203 |
Fair Value, Inputs, Level 2 [Member] | Estimated Fair Value [Member] | ||
Financial assets, Estimated Fair Value | ||
Investment securities held to maturity | 6,855 | 6,806 |
Loans, net | 885,952 | 867,594 |
Financial liabilities, Estimated Fair Value | ||
Deposits | 934,021 | 929,573 |
Short-term borrowings | $ 2,919 | $ 3,203 |
Financial Instruments with Of58
Financial Instruments with Off-Balance Sheet Risk (Schedule of Commitments Outstanding) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments outstanding | $ 198,028 | $ 186,257 |
Commitments to Extend Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments outstanding | 190,254 | 178,233 |
Unused lines of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments outstanding | $ 7,774 | $ 8,024 |
Segment Reporting (Schedule of
Segment Reporting (Schedule of Segment Reporting Information by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | ||||
Interest income | $ 10,447 | $ 9,908 | ||
Interest expense | (514) | (665) | ||
Provision for credit losses | (427) | (450) | ||
Noninterest income | 4,807 | 4,541 | ||
Noninterest expense | (9,651) | (9,339) | ||
Income (loss) before taxes | 4,662 | 3,995 | $ 15,900 | $ 11,500 |
Income tax (expense) benefit | (1,862) | (1,535) | ||
Net income (loss) | 2,800 | 2,460 | ||
Total assets | 1,166,896 | 1,131,175 | $ 1,160,271 | |
Operating Segments [Member] | Community Banking [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 10,387 | 9,846 | ||
Interest expense | (514) | (665) | ||
Provision for credit losses | (427) | (450) | ||
Noninterest income | 1,883 | 1,830 | ||
Noninterest expense | (5,861) | (5,297) | ||
Net intersegment (expense) income | (1,677) | (1,936) | ||
Income (loss) before taxes | 3,791 | 3,328 | ||
Income tax (expense) benefit | (1,513) | (1,279) | ||
Net income (loss) | 2,278 | 2,049 | ||
Total assets | 1,150,411 | 1,103,842 | ||
Operating Segments [Member] | Insurance Products and Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Noninterest income | 2,924 | 2,711 | ||
Noninterest expense | (1,809) | (1,709) | ||
Net intersegment (expense) income | (198) | (172) | ||
Income (loss) before taxes | 917 | 830 | ||
Income tax (expense) benefit | (367) | (319) | ||
Net income (loss) | 550 | 511 | ||
Total assets | 9,345 | 9,133 | ||
Parent Company [Member] | Corporate, Non-Segment [Member] | Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 60 | 62 | ||
Noninterest expense | (1,981) | (2,333) | ||
Net intersegment (expense) income | 1,875 | 2,108 | ||
Income (loss) before taxes | (46) | (163) | ||
Income tax (expense) benefit | 18 | 63 | ||
Net income (loss) | (28) | (100) | ||
Total assets | $ 7,141 | $ 18,200 |