Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 31, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Entity Registrant Name | SHORE BANCSHARES INC | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 12,687,972 | |
Entity Central Index Key | 0001035092 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and due from banks | $ 22,777 | $ 16,294 |
Interest-bearing deposits with other banks | 80,596 | 50,931 |
Cash and cash equivalents | 103,373 | 67,225 |
Investment securities: | ||
Available-for-sale, at fair value | 138,911 | 154,432 |
Held to maturity, at amortized cost - fair value of $9,715 (2019) and $6,000 (2018) | 9,780 | 6,043 |
Equity securities, at fair value | 1,339 | 1,269 |
Restricted securities | 4,655 | 6,476 |
Loans | 1,235,035 | 1,195,355 |
Less: allowance for credit losses | (10,438) | (10,343) |
Loans, net | 1,224,597 | 1,185,012 |
Premises and equipment, net | 23,871 | 22,711 |
Goodwill | 17,518 | 17,518 |
Other intangible assets, net | 2,396 | 2,857 |
Other real estate owned, net | 74 | 1,222 |
Right-of-use assets | 4,908 | |
Other assets | 30,257 | 17,678 |
Assets of discontinued operations | 633 | |
TOTAL ASSETS | 1,561,679 | 1,483,076 |
Deposits: | ||
Noninterest-bearing | 362,557 | 330,466 |
Interest-bearing | 962,934 | 881,875 |
Total deposits | 1,325,491 | 1,212,341 |
Short-term borrowings | 17,263 | 60,812 |
Long-term borrowings | 15,000 | 15,000 |
Lease liabilities | 4,923 | |
Other liabilities | 5,039 | 8,415 |
Liabilities of discontinued operations | 3,323 | |
TOTAL LIABILITIES | 1,367,716 | 1,299,891 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS’ EQUITY | ||
Common stock, par value $.01 per share; shares authorized - 35,000,000; shares issued and outstanding - 12,742,372 (2019) and 12,749,497 (2018) | 127 | 127 |
Additional paid in capital | 64,879 | 65,434 |
Retained earnings | 128,924 | 120,574 |
Accumulated other comprehensive income (loss) | 33 | (2,950) |
TOTAL STOCKHOLDERS’ EQUITY | 193,963 | 183,185 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 1,561,679 | $ 1,483,076 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
CONSOLIDATED BALANCE SHEETS | ||
Investment securities held to maturity | $ 9,715 | $ 6,000 |
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 | 12,742,372 | 12,749,497 |
Common stock, shares outstanding | 12,742,372 | 12,749,497 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
INTEREST INCOME | ||||
Interest and fees on loans | $ 14,100 | $ 13,205 | $ 41,348 | $ 37,880 |
Interest and dividends on investment securities: | ||||
Taxable | 870 | 947 | 2,755 | 2,950 |
Interest on deposits with other banks | 223 | 84 | 499 | 183 |
Total interest income | 15,193 | 14,236 | 44,602 | 41,013 |
INTEREST EXPENSE | ||||
Interest on deposits | 2,288 | 826 | 6,439 | 1,954 |
Interest on short-term borrowings | 117 | 463 | 475 | 1,150 |
Interest on long-term borrowings | 108 | 321 | ||
Total interest expense | 2,513 | 1,289 | 7,235 | 3,104 |
NET INTEREST INCOME | 12,680 | 12,947 | 37,367 | 37,909 |
Provision for credit losses | 200 | 307 | 500 | 1,214 |
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 12,480 | 12,640 | 36,867 | 36,695 |
NONINTEREST INCOME | ||||
Service charges on deposit accounts | 990 | 982 | 2,952 | 2,834 |
Trust and investment fee income | 383 | 383 | 1,140 | 1,197 |
Other noninterest income | 1,156 | 1,100 | 3,234 | 2,870 |
Total noninterest income | 2,529 | 2,465 | 7,326 | 6,901 |
NONINTEREST EXPENSE | ||||
Salaries and wages | 3,853 | 4,209 | 11,411 | 12,536 |
Employee benefits | 1,299 | 983 | 3,621 | 3,204 |
Occupancy expense | 697 | 646 | 2,056 | 1,973 |
Furniture and equipment expense | 263 | 212 | 821 | 714 |
Data processing | 972 | 930 | 2,801 | 2,487 |
Directors’ fees | 140 | 145 | 342 | 411 |
Amortization of other intangible assets | 144 | 270 | 461 | 597 |
FDIC insurance premium expense | 193 | 386 | 612 | |
Other real estate owned expenses, net | 133 | 166 | 426 | 125 |
Legal and professional fees | 495 | 443 | 1,655 | 1,378 |
Other noninterest expenses | 1,388 | 1,113 | 3,732 | 3,578 |
Total noninterest expense | 9,384 | 9,310 | 27,712 | 27,615 |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 5,625 | 5,795 | 16,481 | 15,981 |
Income tax expense | 1,411 | 1,539 | 4,211 | 4,071 |
Income from continuing operations | 4,214 | 4,256 | 12,270 | 11,910 |
(Loss) income from discontinued operations before income taxes | (10) | 269 | (113) | 1,317 |
Income tax (benefit) expense | (2) | 71 | (27) | 324 |
(Loss) income from discontinued operations | (8) | 198 | (86) | 993 |
NET INCOME | $ 4,206 | $ 4,454 | $ 12,184 | $ 12,903 |
Earnings per common share - Basic | ||||
Income from continuing operations | $ 0.33 | $ 0.33 | $ 0.96 | $ 0.93 |
(Loss) income from discontinued operations | 0.02 | (0.01) | 0.08 | |
Net income | 0.33 | 0.35 | 0.95 | 1.01 |
Earnings per common share - Diluted | ||||
Income from continuing operations | 0.33 | 0.33 | 0.96 | 0.93 |
(Loss) income from discontinued operations | 0.02 | (0.01) | 0.08 | |
Net income | 0.33 | 0.35 | 0.95 | 1.01 |
Dividends paid per common share (in dollars per share) | $ 0.10 | $ 0.08 | $ 0.30 | $ 0.23 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income | $ 4,206 | $ 4,454 | $ 12,184 | $ 12,903 |
Investment securities: | ||||
Unrealized holding gains (losses) on available-for-sale-securities | 303 | (420) | 4,083 | (3,836) |
Tax effect | (83) | 116 | (1,116) | 1,058 |
Amortization of unrealized loss on securities transferred from available-for-sale to held-to-maturity | 8 | 7 | 22 | 22 |
Tax effect | (2) | (2) | (6) | (7) |
Total other comprehensive income (loss) | 226 | (299) | 2,983 | (2,763) |
Comprehensive income | $ 4,432 | $ 4,155 | $ 15,167 | $ 10,140 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total |
Balances at Dec. 31, 2017 | $ 127 | $ 65,256 | $ 99,662 | $ (1,309) | $ 163,736 |
Net Income | 4,058 | 4,058 | |||
Other comprehensive income (loss) | (2,069) | (2,069) | |||
Stock-based compensation | 143 | 143 | |||
Cash dividends declared | (891) | (891) | |||
Balances at Mar. 31, 2018 | 127 | 65,399 | 102,829 | (3,378) | 164,977 |
Balances at Dec. 31, 2017 | 127 | 65,256 | 99,662 | (1,309) | 163,736 |
Net Income | 12,903 | ||||
Balances at Sep. 30, 2018 | 127 | 65,730 | 109,628 | (4,066) | 171,419 |
Balances at Mar. 31, 2018 | 127 | 65,399 | 102,829 | (3,378) | 164,977 |
Net Income | 4,391 | 4,391 | |||
Other comprehensive income (loss) | (395) | (395) | |||
Stock-based compensation | 163 | 163 | |||
Cash dividends declared | (1,021) | (1,021) | |||
Balances at Jun. 30, 2018 | 127 | 65,562 | 106,193 | (3,767) | 168,115 |
Cumulative effect adjustment (ASU 2016-01) | Accounting Standards Update 2016-01 | (6) | 6 | |||
Net Income | 4,454 | 4,454 | |||
Other comprehensive income (loss) | (299) | (299) | |||
Stock-based compensation | 168 | 168 | |||
Cash dividends declared | (1,019) | (1,019) | |||
Balances at Sep. 30, 2018 | 127 | 65,730 | 109,628 | (4,066) | 171,419 |
Cumulative effect adjustment (ASU 2016-01) | Accounting Standards Update 2016-01 | 1,300 | ||||
Balances at Dec. 31, 2018 | 127 | 65,434 | 120,574 | (2,950) | 183,185 |
Net Income | 3,754 | 3,754 | |||
Other comprehensive income (loss) | 1,446 | 1,446 | |||
Stock-based compensation | 63 | 63 | |||
Exercise of options and vesting of restricted stock, net of shares surrendered | 1 | (89) | (88) | ||
Cash dividends declared | (1,278) | (1,278) | |||
Balances at Mar. 31, 2019 | 128 | 65,408 | 123,050 | (1,504) | 187,082 |
Balances at Dec. 31, 2018 | 127 | 65,434 | 120,574 | (2,950) | 183,185 |
Net Income | 12,184 | ||||
Balances at Sep. 30, 2019 | 127 | 64,879 | 128,924 | 33 | 193,963 |
Balances at Mar. 31, 2019 | 128 | 65,408 | 123,050 | (1,504) | 187,082 |
Net Income | 4,224 | 4,224 | |||
Other comprehensive income (loss) | 1,311 | 1,311 | |||
Stock-based compensation | (32) | (32) | |||
Cash dividends declared | (1,278) | (1,278) | |||
Balances at Jun. 30, 2019 | 128 | 65,376 | 125,996 | (193) | 191,307 |
Net Income | 4,206 | 4,206 | |||
Other comprehensive income (loss) | 226 | 226 | |||
Retirement of common stock (in dollars) | (1) | (558) | (559) | ||
Stock-based compensation | 61 | 61 | |||
Cash dividends declared | (1,278) | (1,278) | |||
Balances at Sep. 30, 2019 | $ 127 | $ 64,879 | $ 128,924 | $ 33 | 193,963 |
Cumulative effect adjustment (ASU 2016-01) | Accounting Standards Update 2016-01 | $ 1,300 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income | $ 12,184 | $ 12,903 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net accretion of acquisition accounting estimates | (414) | (517) |
Provision for credit losses | 500 | 1,214 |
Depreciation and amortization | 1,779 | 1,664 |
Net amortization of securities | 396 | 498 |
Stock-based compensation expense | 92 | 474 |
Deferred income tax expense | 266 | 566 |
Losses on sales and valuation adjustments on other real estate owned | 417 | 73 |
Fair value adjustment on equity securities | (47) | 20 |
Net changes in: | ||
Accrued interest receivable | (162) | (99) |
Other assets | 1,267 | (5,401) |
Accrued interest payable | (154) | 331 |
Other liabilities | (6,865) | 305 |
Net cash provided by operating activities | 9,259 | 12,031 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from maturities and principal payments of investment securities available for sale | 19,211 | 24,292 |
Proceeds from maturities and principal payments of investment securities held to maturity | 281 | 228 |
Purchases of securities held to maturity | (4,000) | |
Purchases of equity securities | (23) | (11) |
Net change in loans | (39,817) | (87,470) |
Purchases of premises and equipment | (1,995) | (1,026) |
Proceeds from sales of other real estate owned | 731 | 280 |
Net redemption of restricted securities | 1,821 | |
Purchases of bank owned life insurance | (14,586) | |
Net cash (used in) investing activities | (38,377) | (63,707) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Noninterest-bearing deposits | 32,091 | 3,444 |
Interest-bearing deposits | 81,205 | (24,189) |
Short-term borrowings | (43,549) | 92,309 |
Common stock dividends paid | (3,834) | (2,931) |
Retirement of common stock | (559) | |
Repurchase of shares for tax withholding on exercised options and vested restricted stock | (88) | |
Net cash provided by financing activities | 65,266 | 68,633 |
Net increase in cash and cash equivalents | 36,148 | 16,957 |
Cash and cash equivalents at beginning of period | 67,225 | 31,820 |
Cash and cash equivalents at end of period | 103,373 | 48,777 |
Supplemental cash flows information: | ||
Interest paid | 7,521 | 2,973 |
Income taxes paid | 10,812 | 4,025 |
Lease liabilities arising from right-of-use assets | (5,243) | |
Transfers from loans to other real estate owned | 77 | |
Unrealized gain (loss) on securities available for sale | (4,083) | (3,836) |
Amortization of unrealized loss on securities transferred from available for sale to held to maturity | $ 22 | $ 22 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Note 1 – Basis of Presentation The consolidated financial statements include the accounts of Shore Bancshares, Inc. and its subsidiaries with all significant intercompany transactions eliminated. The consolidated financial statements conform to accounting principles generally accepted in the United States of America (“GAAP”) and to prevailing practices within the banking industry. The accompanying interim financial statements are unaudited; however, in the opinion of management all adjustments necessary to present fairly the consolidated financial position at September 30, 2019, the consolidated results of income and comprehensive income for the three and nine months ended September 30, 2019 and 2018, changes in stockholders’ equity for the three and nine months ended September 30, 2019 and cash flows for the nine months ended September 30, 2019 and 2018, have been included. All such adjustments are of a normal recurring nature. The amounts as of December 31, 2018 were derived from the 2018 audited financial statements. The results of operations for the three and nine months ended September 30, 2019 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, 2018. For purposes of comparability, certain immaterial 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 subsidiary. Recent Accounting Standards ASU No. 2016-13 - In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The amendments in this ASU, among other things, require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. At the FASB’s October 16, 2019 meeting, the Board affirmed its decision to amend the effective date of this ASU for many companies. Public business entities that are SEC filers, excluding those meeting the smaller reporting company definition, will retain the initial required implementation date of fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. All other entities will be required to apply the guidance for fiscal years, and interim periods within those years, beginning after December 15, 2022 . At this time, the Company has established a project management team which meets periodically to discuss and assign roles and responsibilities, key tasks to complete, and a general timeline to be followed for implementation. The team has been working with an advisory consultant and has purchased a vendor model for implementation. Historical data has been collected and uploaded to the new model and the team is in the process of finalizing the methodologies that will be utilized. The team is currently running a parallel simulation to its current incurred loss impairment model. The Company is continuing to evaluate the extent of the potential impact of this standard and continues to keep current on evolving interpretations and industry practices via webcasts, publications, conferences, and peer bank meetings. ASU No. 2017-04 – In January 2017, the FASB issued ASU No. 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment”. The amendments in this ASU simplify how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Instead, under the amendments in this ASU, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. Public business entities that are U.S. Securities and Exchange Commission (SEC) filers should adopt the amendments in this ASU for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual 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. 2018-13 – In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement.” The amendments modify the disclosure requirements in Topic 820 to add disclosures regarding changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements and the narrative description of measurement uncertainty. Certain disclosure requirements in Topic 820 are also removed or modified. The amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Certain of the amendments are to be applied prospectively while others are to be applied retrospectively. Early adoption is permitted. As ASU No. 2018-13 only revises disclosure requirements, it will not have a material impact on the Company’s Consolidated Financial Statements. ASU No. 2019-04 – In April 2019, the FASB issued ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments.” This ASU clarifies and improves areas of guidance related to the recently issued standards on credit losses, hedging, and recognition and measurement including improvements resulting from various TRG Meetings. The amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact that ASU 2019-04 will have on its consolidated financial statements. ASU No. 2019-05 - In May 2019, the FASB issued ASU 2019-05, “Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief.” The amendments in this ASU provide entities that have certain instruments within the scope of Subtopic 326-20 with an option to irrevocably elect the fair value option in Subtopic 825-10, applied on an instrument-by-instrument basis for eligible instruments, upon the adoption of Topic 326. The fair value option election does not apply to held-to-maturity debt securities. An entity that elects the fair value option should subsequently measure those instruments at fair value with changes in fair value flowing through earnings. The amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The amendments should be applied on a modified-retrospective basis by means of a cumulative-effect adjustment to the opening balance of retained earnings balance in the balance sheet. Early adoption is permitted. The Company is currently assessing the impact that ASU 2019-04 will have on its consolidated financial statements. |
Sale of Subsidiary
Sale of Subsidiary | 9 Months Ended |
Sep. 30, 2019 | |
Sale of Subsidiary [Abstract] | |
Sale of Subsidiary | Note 2 – Sale of Subsidiary Avon-Dixon Agency Sale On December 31, 2018, the Company completed the sale of the specific assets and activities related to its insurance agency, Avon-Dixon Agency, LLC (“Avon-Dixon”) to Avon-Dixon, an Alera Group Agency, LLC (“Alera”). Also, on this date the Company discontinued the operations of its premium finance company, Mubell Finance, LLC (“Mubell”). Together, Avon-Dixon and Mubell companies are referred to as the “Insurance Subsidiaries”. The Insurance Subsidiaries represented the Company’s insurance products and services segment, the activities of which related to originating, servicing and underwriting retail insurance policies. Assets sold to Alera included various intangible assets and a 40% interest in segregated portfolio of Eastern Re. LTD., a specialty reinsurance company. Mubell, along with certain other assets and liabilities that will be sold or settled separately within one year, is classified as discontinued operations in the accompanying Consolidated Balance Sheets and Consolidated Statements of Income. The specific assets acquired by Alera include, among other things, the insurance origination offices, insurance expirations, workforce and system procedures, trade names and goodwill. Alera has assumed certain obligations and liabilities of the Company under the acquired leases, and with respect to the employment of transferred employees. The Company received a $25.2 million cash payment, upon the closing of the transaction. The following table summarizes the calculation of the net gain on disposal of discontinued operations. ($ in thousands) Year Ended December 31, 2018 Proceeds from the transaction $ 29,276 Compensation expense related to the transaction 2,588 Broker fees 935 Other transaction costs 594 Net cash proceeds 25,159 Net assets sold (12,423) Net gain on disposal $ 12,736 The following tables present the financial information of discontinued operations as of the dates and for the periods indicated: September 30, December 31, ($ in thousands) 2019 2018 ASSETS Goodwill $ — $ 8 Other assets — 625 Assets of discontinued operations $ — $ 633 LIABILITIES Accrued expenses and other liabilities $ — $ 3,323 Liabilities of discontinued operations $ — $ 3,323 For Three Months Ended For Nine Months Ended September 30, September 30, ($ in thousands) 2019 2018 2019 2018 Noninterest income Insurance agency commissions $ — $ 2,170 $ — $ 7,015 All other income — 76 15 264 Total noninterest income — 2,246 15 7,279 Noninterest expense Salaries and wages — 1,307 28 3,836 Employee benefits — 288 7 953 Occupancy expense — 121 14 330 Furniture and equipment — 38 1 98 Amortization of intangible assets — 12 — 35 Legal and professional fees 2 20 73 54 Other noninterest expenses 8 191 5 656 Total noninterest expense 10 1,977 128 5,962 (Loss) income from discontinued operations before income taxes (10) 269 (113) 1,317 Income tax (benefit) expense (2) 71 (27) 324 (Loss) income from discontinued operations $ (8) $ 198 $ (86) $ 993 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 3 – 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 potential common stock equivalents (stock-based awards). The following table provides information relating to the calculation of earnings per common share: For the Three Months Ended For the Nine Months Ended September 30, September 30, (In thousands, except per share data) 2019 2018 2019 2018 Net income from continuing operations $ 4,214 $ 4,256 $ 12,270 $ 11,910 Net (loss) income from discontinued operations (8) 198 (86) 993 Net Income $ 4,206 $ 4,454 $ 12,184 $ 12,903 Weighted average shares outstanding - Basic 12,764 12,748 12,771 12,736 Dilutive effect of common stock equivalents-options 5 13 5 13 Weighted average shares outstanding - Diluted 12,769 12,761 12,776 12,749 Basic earnings per common share Income from continuing operations $ 0.33 $ 0.33 $ 0.96 $ 0.93 (Loss) income from discontinued operations — 0.02 (0.01) 0.08 Net income $ 0.33 $ 0.35 $ 0.95 $ 1.01 Diluted earnings per common share Income from continuing operations $ 0.33 $ 0.33 $ 0.96 $ 0.93 (Loss) income from discontinued operations — 0.02 (0.01) 0.08 Net income $ 0.33 $ 0.35 $ 0.95 $ 1.01 There were no weighted average common stock equivalents excluded from the calculation of diluted earnings per share for the three and nine months ended September 30, 2019 and 2018. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2019 | |
Investment Securities [Abstract] | |
Investment Securities | Note 4 – Investment Securities The following tables provide information on the amortized cost and estimated fair values of debt securities. Gross Gross Estimated Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value Available-for-sale securities: September 30, 2019 U.S. Government agencies $ 33,917 $ 3 $ 81 $ 33,839 Mortgage-backed 104,926 458 312 105,072 Total $ 138,843 $ 461 $ 393 $ 138,911 December 31, 2018 U.S. Government agencies $ 34,285 $ 2 $ 651 $ 33,636 Mortgage-backed 124,162 115 3,481 120,796 Total $ 158,447 $ 117 $ 4,132 $ 154,432 Held-to-maturity securities: September 30, 2019 U.S. Government agencies $ 1,380 $ 12 $ — $ 1,392 States and political subdivisions 1,400 1 — 1,401 Other Debt securities 7,000 — 78 6,922 Total $ 9,780 $ 13 $ 78 $ 9,715 December 31, 2018 U.S. Government agencies $ 1,642 $ — $ 25 $ 1,617 States and political subdivisions 1,401 14 — 1,415 Other Debt securities 3,000 — 32 2,968 Total $ 6,043 $ 14 $ 57 $ 6,000 The Company adopted ASU 2016-01 effective January 1, 2018 and equity securities with an aggregate fair value of $1.3 million at September 30, 2019 and December 31, 2018 are presented separately on the balance sheet. The fair value adjustment recorded through earnings totaled $47 thousand for the nine months ended September 30, 2019 and $(20) thousand for the nine months ended September 30, 2018, respectively. The following tables provide information about gross unrealized losses and fair value by length of time that the individual securities have been in a continuous unrealized loss position at September 30, 2019 and December 31, 2018. Less than More than 12 Months 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses September 30, 2019 Available-for-sale securities: U.S. Government agencies $ 8,985 $ 15 $ 24,854 $ 66 $ 33,839 $ 81 Mortgage-backed 17,476 48 23,296 264 40,772 312 Total $ 26,461 $ 63 $ 48,150 $ 330 $ 74,611 $ 393 Held-to-maturity securities: Other debt securities 6,922 78 — — 6,922 78 Total $ 6,922 $ 78 $ — $ — $ 6,922 $ 78 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, 2018 Available-for-sale securities: U.S. Government agencies $ 1,079 $ 10 $ 32,362 $ 641 $ 33,441 $ 651 Mortgage-backed 13,981 261 99,904 3,220 113,885 3,481 Total $ 15,060 $ 271 $ 132,266 $ 3,861 $ 147,326 $ 4,132 Held-to-maturity securities: U.S. Government agencies — — 1,617 25 1,617 25 Other debt securities 2,968 32 — — 2,968 32 Total $ 2,968 $ 32 $ 1,617 $ 25 $ 4,585 $ 57 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. There were thirty-nine available-for-sale securities and four held-to-maturity securities in an unrealized loss position at September 30, 2019. The following table provides information on the amortized cost and estimated fair values of investment securities by maturity date at September 30, 2019. Available for sale Held to maturity Amortized Amortized (Dollars in thousands) Cost Fair Value Cost Fair Value Due in one year or less $ 5,999 $ 5,994 $ 1,000 $ 1,000 Due after one year through five years 28,660 28,581 400 401 Due after five years through ten years 56,236 56,373 7,000 6,922 Due after ten years 47,948 47,963 1,380 1,392 Total $ 138,843 $ 138,911 $ 9,780 $ 9,715 The maturity dates for debt securities are determined using contractual maturity dates. |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses | 9 Months Ended |
Sep. 30, 2019 | |
Loans and Allowance for Credit Losses [Abstract] | |
Loans and Allowance for Credit Losses | Note 5 – 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, Dorchester County, Baltimore County and Howard County in Maryland, Kent County, Delaware and Accomack County, Virginia. The following table provides information about the principal classes of the loan portfolio at September 30, 2019 and December 31, 2018. (Dollars in thousands) September 30, 2019 December 31, 2018 Construction $ 116,368 $ 127,572 Residential real estate 442,324 429,560 Commercial real estate 558,741 523,427 Commercial 105,583 107,522 Consumer 12,019 7,274 Total loans 1,235,035 1,195,355 Allowance for credit losses (10,438) (10,343) Total loans, net $ 1,224,597 $ 1,185,012 Loans are stated at their principal amount outstanding net of any purchase premiums/discounts, deferred fees and costs. Loans included deferred costs, net of deferred fees, of $1.5 million and discounts on acquired loans of $1.1 million at September 30, 2019. Loans included deferred costs, net of deferred fees, of $789 thousand and discounts on acquired loans of $1.4 million at December 31, 2018. At September 30, 2019 and December 31, 2018, included in total loans were $83.1. million and $92.8 million in loans, respectively, acquired as part of the NWBI branch acquisition. 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 when due. 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. Loan payments received on nonaccrual impaired loans are generally applied to the outstanding principal balance. In certain circumstances, income may be recognized on a cash basis. 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 are offered primarily to builders and individuals to finance the construction of 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 nonowner occupied properties 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. Nonowner occupied properties carry the risk of a tenant’s deteriorating credit strength, lease expirations in soft markets and sustained vacancies which can adversely impact cash flow. Commercial – Commercial loans are secured or unsecured loans for business purposes. Loans are typically secured by accounts receivable, inventory, equipment and/or other assets of the business. Credit risk arises from the successful operation of the business which may be affected by competition, rising interest rates, regulatory changes and adverse conditions in the local and regional economy. Consumer – Consumer loans include home equity loans and lines, installment loans and personal lines of credit. Credit risk is similar to residential real estate loans above as it is subject to the borrower’s continuing financial stability and the value of the collateral securing the loan. The following tables include impairment information relating to loans and the allowance for credit losses as of September 30, 2019 and December 31, 2018. Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Total September 30, 2019 Loans individually evaluated for impairment $ 43 $ 6,712 $ 13,639 $ 436 $ — $ 20,830 Loans collectively evaluated for impairment 116,325 435,612 545,102 105,147 12,019 1,214,205 Total loans $ 116,368 $ 442,324 $ 558,741 $ 105,583 $ 12,019 $ 1,235,035 Allowance for credit losses allocated to: Loans individually evaluated for impairment $ — $ 441 $ 452 $ 62 $ — $ 955 Loans collectively evaluated for impairment 1,541 2,240 3,396 1,954 352 9,483 Total allowance $ 1,541 $ 2,681 $ 3,848 $ 2,016 $ 352 $ 10,438 Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Total December 31, 2018 Loans individually evaluated for impairment $ 2,893 $ 8,553 $ 13,532 $ 340 $ — $ 25,318 Loans collectively evaluated for impairment 124,679 421,007 509,895 107,182 7,274 1,170,037 Total loans $ 127,572 $ 429,560 $ 523,427 $ 107,522 $ 7,274 $ 1,195,355 Allowance for credit losses allocated to: Loans individually evaluated for impairment $ 320 $ 301 $ 104 $ 36 $ — $ 761 Loans collectively evaluated for impairment 2,342 2,052 2,973 1,913 302 9,582 Total allowance $ 2,662 $ 2,353 $ 3,077 $ 1,949 $ 302 $ 10,343 The following tables provide information on impaired loans and any related allowance by loan class as of September 30, 2019 and December 31, 2018. The difference between the unpaid principal balance and the recorded investment is the amount of partial charge-offs that have been taken and interest paid on nonaccrual loans that has been applied to principal. Recorded Recorded September 30, 2019 Unpaid investment investment Quarter-to-date Average Interest principal with no with an Related average recorded recorded recorded (Dollars in thousands) balance allowance allowance allowance investment investment investment September 30, 2019 Impaired nonaccrual loans: Construction $ — — — — — 1,435 — Residential real estate 2,366 489 1,570 256 2,642 2,904 — Commercial real estate 10,834 8,901 1,262 430 10,221 9,717 — Commercial 425 — 308 4 310 316 — Consumer — — — — — — — Total $ 13,625 $ 9,390 $ 3,140 $ 690 $ 13,173 $ 14,372 $ — Impaired accruing TDRs: Construction $ 43 $ 43 $ — $ — $ 44 $ 47 $ 9 Residential real estate 4,069 1,260 2,809 185 4,052 4,193 130 Commercial real estate 3,476 2,795 681 22 3,479 3,515 93 Commercial — — — — — — — Consumer — — — — — — — Total $ 7,588 $ 4,098 $ 3,490 $ 207 $ 7,575 $ 7,755 $ 232 Other Impaired accruing loans: Construction $ — $ — $ — $ — $ — $ — $ — Residential real estate 584 584 — — — — — Commercial real estate — — — — — — — Commercial 128 — 128 58 — — — Consumer — — — — — — — Total $ 712 $ 584 $ 128 $ 58 $ — $ — $ — Total impaired loans: Construction $ 43 $ 43 $ — $ — $ 44 $ 1,482 $ 9 Residential real estate 6,435 1,749 4,379 441 6,694 7,097 130 Commercial real estate 14,310 11,696 1,943 452 13,700 13,232 93 Commercial 425 — 308 4 310 316 — Consumer — — — — — — — Total $ 21,213 $ 13,488 $ 6,630 $ 897 $ 20,748 $ 22,127 $ 232 Recorded Recorded September 30, 2018 Unpaid investment investment Quarter-to-date Average Interest principal with no with an Related average recorded recorded income (Dollars in thousands) balance allowance allowance allowance investment investment recognized December 31, 2018 Impaired nonaccrual loans: Construction $ 3,219 $ 127 $ 2,715 $ 320 $ 3,043 $ 3,006 $ — Residential real estate 4,281 2,605 1,494 118 1,710 1,573 — Commercial real estate 10,029 9,307 67 67 1,742 1,438 — Commercial 445 — 340 36 327 338 — Consumer — — — — — — — Total $ 17,974 $ 12,039 $ 4,616 $ 541 $ 6,822 $ 6,355 $ — Impaired accruing TDRs: Construction $ 51 $ 51 $ — $ — $ 145 $ 1,138 $ 13 Residential real estate 4,454 1,440 3,014 183 4,709 4,613 46 Commercial real estate 4,158 1,286 2,872 37 4,307 4,499 41 Commercial — — — — — — — Consumer — — — — — — — Total $ 8,663 $ 2,777 $ 5,886 $ 220 $ 9,161 $ 10,250 $ 100 Total impaired loans: Construction $ 3,270 $ 178 $ 2,715 $ 320 $ 3,188 $ 4,144 $ 13 Residential real estate 8,735 4,045 4,508 301 6,419 6,186 46 Commercial real estate 14,187 10,593 2,939 104 6,049 5,937 41 Commercial 445 — 340 36 327 338 — Consumer — — — — — — — Total $ 26,637 $ 14,816 $ 10,502 $ 761 $ 15,983 $ 16,605 $ 100 The following tables provide a roll-forward for TDRs as of September 30, 2019 and September 30, 2018. 1/1/2019 9/30/2019 TDR New Disbursements Charge- Reclassifications/ TDR Related (Dollars in thousands) Balance TDRs (Payments) offs Transfer In/(Out) Payoffs Balance Allowance For nine months ended September 30, 2019 Accruing TDRs Construction $ 51 $ — $ (8) $ — $ — $ — $ 43 $ — Residential real estate 4,454 41 (73) — — (353) 4,069 185 Commercial real estate 4,158 — (682) — — — 3,476 22 Commercial — — — — — — — — Consumer — — — — — — — — Total $ 8,663 $ 41 $ (763) $ — $ — $ (353) $ 7,588 $ 207 Nonaccrual TDRs Construction $ 2,798 $ — $ (1,379) $ (3) $ — $ — $ 1,416 $ 133 Residential real estate — — — — — — — — Commercial real estate — — — — — — — — Commercial 320 — (12) — — — 308 4 Consumer — — — — — — — — Total $ 3,118 $ — $ (1,391) $ (3) $ — $ — $ 1,724 $ 137 Total $ 11,781 $ 41 $ (2,154) $ (3) $ — $ (353) $ 9,312 $ 344 1/1/2018 9/30/2018 TDR New Disbursements Charge- Reclassifications/ TDR Related (Dollars in thousands) Balance TDRs (Payments) offs Transfer In/(Out) Payoffs Balance Allowance For nine months ended September 30, 2018 Accruing TDRs Construction $ 3,972 $ — $ (225) $ (379) $ (696) $ (2,600) $ 72 $ 19 Residential real estate 4,536 — (63) — 542 (351) 4,664 194 Commercial real estate 4,818 — (402) — — (219) 4,197 32 Commercial — — — — — — — — Consumer — — — — — — — — Total $ 13,326 $ — $ (690) $ (379) $ (154) $ (3,170) $ 8,933 $ 245 Nonaccrual TDRs Construction $ 2,878 $ — $ (73) $ — $ 83 $ — $ 2,888 $ 356 Residential real estate — — — (80) 80 — — — Commercial real estate 83 — — — (83) — — — Commercial 337 — (13) — — — 324 20 Consumer — — — — — — — — Total $ 3,298 $ — $ (86) $ (80) $ 80 $ — $ 3,212 $ 376 Total $ 16,624 $ — $ (776) $ (459) $ (74) $ (3,170) $ 12,145 $ 621 The following tables provide information on loans that were modified and considered TDRs during the nine months ended September 30, 2019 and September 30, 2018. Premodification Postmodification outstanding outstanding Number of recorded recorded Related (Dollars in thousands) contracts investment investment allowance TDRs: For nine months ended September 30, 2019 Construction — $ — $ — $ — Residential real estate 1 75 41 — Commercial real estate — — — — Commercial — — — — Consumer — — — — Total 1 $ 75 $ 41 $ — For nine months ended September 30, 2018 Construction — $ — $ — $ — Residential real estate — — — — Commercial real estate — — — — Commercial — — — — Consumer — — — — Total — $ — $ — $ — The following tables provide information on TDRs that defaulted within twelve months of restructuring during the nine months ended September 30, 2019 and September 30, 2018. There were no defaults during the nine months ended September 30, 2019 and two defaults totaling $533 for the nine months ended September 30, 2018. Generally, a loan is considered in default when principal or interest is past due 90 days or more, the loan is placed on nonaccrual, the loan is charged off, or there is a transfer to OREO or repossessed assets. Number of Recorded Related (Dollars in thousands) contracts investment allowance TDRs that subsequently defaulted: For nine months ended September 30, 2019 Construction — $ — $ — Residential real estate — — — Commercial real estate — — — Commercial — — — Consumer — — — Total — $ — $ — For nine months ended September 30, 2018 Construction 1 $ 379 $ — Residential real estate 1 154 — Commercial real estate — — — Commercial — — — Consumer — — — Total 2 $ 533 $ — 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. These loans and the pass/watch loans are assigned higher qualitative factors than favorably rated loans in the calculation of the formula portion of the allowance for credit losses. At September 30, 2019, there were no nonaccrual loans classified as special mention or doubtful and $12.5 million of nonaccrual loans were classified as substandard. Similarly, at December 31, 2018, there were no nonaccrual loans classified as special mention or doubtful and $16.7 million of nonaccrual loans were classified as substandard. The following tables provide information on loan risk ratings as of September 30, 2019 and December 31, 2018. Special (Dollars in thousands) Pass/Performing Pass/Watch Mention Substandard Doubtful Total September 30, 2019 Construction $ 100,669 $ 13,560 $ 2,139 $ — $ — $ 116,368 Residential real estate 405,154 28,927 5,408 2,835 — 442,324 Commercial real estate 427,825 110,846 4,999 15,071 — 558,741 Commercial 85,507 19,725 10 341 — 105,583 Consumer 11,619 397 — 3 — 12,019 Total $ 1,030,774 $ 173,455 $ 12,556 $ 18,250 $ — $ 1,235,035 Special (Dollars in thousands) Pass/Performing Pass/Watch Mention Substandard Doubtful Total December 31, 2018 Construction $ 93,977 $ 30,735 $ — $ 2,860 $ — $ 127,572 Residential real estate 386,553 33,739 3,769 5,499 — 429,560 Commercial real estate 389,219 113,873 4,515 15,820 — 523,427 Commercial 90,777 15,727 642 376 — 107,522 Consumer 6,805 466 — 3 — 7,274 Total $ 967,331 $ 194,540 $ 8,926 $ 24,558 $ — $ 1,195,355 The following tables provide information on the aging of the loan portfolio as of September 30, 2019 and December 31, 2018. Accruing 30‑59 days 60‑89 days Greater than Total (Dollars in thousands) Current past due past due 90 days past due Nonaccrual Total September 30, 2019 Construction $ 116,111 $ — $ 257 $ — $ 257 $ — $ 116,368 Residential real estate 433,458 5,195 1,028 584 6,807 2,059 442,324 Commercial real estate 546,492 1,894 192 — 2,086 10,163 558,741 Commercial 104,809 337 1 128 466 308 105,583 Consumer 11,985 18 16 — 34 — 12,019 Total $ 1,212,855 $ 7,444 $ 1,494 $ 712 $ 9,650 $ 12,530 $ 1,235,035 Percent of total loans 98.2 % 0.6 % 0.1 % 0.1 % 0.8 % 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, 2018 Construction $ 124,535 $ 195 $ — $ — $ 195 $ 2,842 $ 127,572 Residential real estate 423,732 1,384 206 139 1,729 4,099 429,560 Commercial real estate 512,252 253 1,548 — 1,801 9,374 523,427 Commercial 107,089 83 10 — 93 340 107,522 Consumer 7,238 30 6 — 36 — 7,274 Total $ 1,174,846 $ 1,945 $ 1,770 $ 139 $ 3,854 $ 16,655 $ 1,195,355 Percent of total loans 98.3 % 0.2 % 0.1 % — % 0.3 % 1.4 % 100.0 % The following tables provide a summary of the activity in the allowance for credit losses allocated by loan class for the three and nine months ended September 30, 2019 and September 30, 2018. Allocation of a portion of the allowance to one loan class does not preclude its availability to absorb losses in other loan classes. Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Total For three months ended September 30, 2019 Allowance for credit losses: Beginning Balance $ 2,443 $ 2,155 $ 3,367 $ 2,057 $ 283 $ 10,305 Charge-offs — (86) — (98) — (184) Recoveries 1 12 7 96 1 117 Net charge-offs 1 (74) 7 (2) 1 (67) Provision (903) 600 474 (39) 68 200 Ending Balance $ 1,541 $ 2,681 $ 3,848 $ 2,016 $ 352 $ 10,438 Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Total For three months ended September 30, 2018 Allowance for credit losses: Beginning Balance $ 2,593 $ 2,150 $ 2,845 $ 2,210 $ 323 $ 10,121 Charge-offs — (109) — (137) — (246) Recoveries 3 5 5 122 11 146 Net charge-offs 3 (104) 5 (15) 11 (100) Provision 188 95 87 15 (78) 307 Ending Balance $ 2,784 $ 2,141 $ 2,937 $ 2,210 $ 256 $ 10,328 Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Total For nine months ended September 30, 2019 Allowance for credit losses: Beginning Balance $ 2,662 $ 2,353 $ 3,077 $ 1,949 $ 302 $ 10,343 Charge-offs (3) (509) — (260) (29) (801) Recoveries 8 23 114 248 3 396 Net charge-offs 5 (486) 114 (12) (26) (405) Provision (1,126) 814 657 79 76 500 Ending Balance $ 1,541 $ 2,681 $ 3,848 $ 2,016 $ 352 $ 10,438 Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Total For nine months ended September 30, 2018 Allowance for credit losses: Beginning Balance $ 2,460 $ 2,284 $ 2,594 $ 2,241 $ 202 $ 9,781 Charge-offs (379) (288) — (263) (24) (954) Recoveries 18 91 23 144 11 287 Net charge-offs (361) (197) 23 (119) (13) (667) Provision 685 54 320 88 67 1,214 Ending Balance $ 2,784 $ 2,141 $ 2,937 $ 2,210 $ 256 $ 10,328 Foreclosure Proceedings Consumer mortgage loans collateralized by residential real estate property that were in the process of foreclosure totaled $66 thousand as of September 30, 2019 and $949 thousand as of December 31, 2018, respectively. There were no residential real estate properties included in the balance of other real estate owned at September 30, 2019 and December 31, 2018. All accruing TDRs were in compliance with their modified terms. Both performing and non-performing TDRs had no further commitments associated with them as of September 30, 2019 and December 31, 2018. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Note 6 – Leases On January 1, 2019, the Company adopted ASU No. 2016-02 “Leases (Topic 842)” and all subsequent ASUs that modified Topic 842. The Company elected the prospective application approach provided by ASU 2018-11 and did not adjust prior periods for ASC 842. The Company also elected certain practical expedients within the standard and consistent with such elections did not reassess whether any expired or existing contracts are or contain leases, did not reassess the lease classification for any expired or existing leases, and did not reassess any initial direct costs for existing leases. As stated in the Company’s 2018 Form 10-K, the implementation of the new standard resulted in recognition of right-of-use assets and lease liabilities totaling $3.8 million at the date of adoption, which are primarily related to the Company’s lease of premises used in operations. Since adoption of the leasing standard in January 2019, the Company recognized additional right-of-use assets and lease liabilities of $1.4 million, primarily related to the lease of additional premises used in operations. Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. Cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. Right-of-use assets represent the Company’s right to use the underlying asset for the lease term and are calculated as the sum of the lease liability and if applicable, prepaid rent, initial direct costs and any incentives received from the lessor. The Company’s long-term lease agreements are classified as operating leases. Certain of these leases offer the option to extend the lease term and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably certain of being exercised. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. The following tables present information about the Company’s leases: (Dollars in thousands) September 30, 2019 Lease liabilities $ 4,923 Right-of-use assets $ 4,908 Weighted average remaining lease term 11.87 years Weighted average discount rate 3.12 % For the three months ended For the nine months ended Lease cost (in thousands) September 30, 2019 September 30, 2019 Operating lease cost $ 173 $ 440 Short-term lease cost — — Total lease cost $ 173 $ 440 Cash paid for amounts included in the measurement of lease liabilities $ 163 $ 419 A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total of operating lease liabilities is as follows: As of Lease payments due (in thousands) September 30, 2019 Three months ending December 31, 2019 $ 168 Twelve months ending December 31, 2020 604 Twelve months ending December 31, 2021 545 Twelve months ending December 31, 2022 541 Twelve months ending December 31, 2023 521 Twelve months ending December 31, 2024 473 Thereafter 3,258 Total undiscounted cash flows $ 6,110 Discount 1,187 Lease liabilities $ 4,923 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Other Intangibles [Abstract] | |
Goodwill and Other Intangibles | Note 7 – Goodwill and Other Intangibles The following table provides information on the significant components of goodwill and other acquired intangible assets at September 30, 2019 and December 31, 2018. September 30, 2019 Weighted Gross Accumulated Net Average Carrying Impairment Accumulated Carrying Remaining Life (Dollars in thousands) Amount Charges Amortization Amount (in years) Goodwill $ 19,728 $ (1,543) $ (667) $ 17,518 — Other intangible assets Amortizable Core deposit intangible $ 3,954 $ — $ (1,558) $ 2,396 6.1 Total other intangible assets $ 3,954 $ — $ (1,558) $ 2,396 December 31, 2018 Weighted Gross Accumulated Net Average Carrying Impairment Accumulated Carrying Remaining Life (Dollars in thousands) Amount Charges Amortization Amount (in years) Goodwill $ 19,728 $ (1,543) $ (667) $ 17,518 — Other intangible assets Amortizable Core deposit intangible $ 3,954 $ — $ (1,097) $ 2,857 7.2 Total other intangible assets $ 3,954 $ — $ (1,097) $ 2,857 The aggregate amortization expense included in continuing operations was $461 thousand for the nine months ended September 30, 2019 and $597 thousand for the nine months ended September 30, 2018. At September 30, 2019, estimated future remaining amortization for amortizing intangibles within the years ending December 31, is as follows: (Dollars in thousands) Amortization 2019 $ 144 2020 533 2021 461 2022 389 2023 317 2024 246 Thereafter 306 Total amortizing intangible assets $ 2,396 |
Other Assets
Other Assets | 9 Months Ended |
Sep. 30, 2019 | |
Other Assets [Abstract] | |
Other Assets | Note 8 – Other Assets The Company had the following other assets at September 30, 2019 and December 31, 2018 excluding discontinued operations. (Dollars in thousands) September 30, 2019 December 31, 2018 Accrued interest receivable 3,507 3,345 Deferred income taxes 2,795 4,182 Prepaid expenses 1,483 1,067 Cash surrender value on life insurance 18,440 3,726 Income taxes receivable 518 — Other assets 3,514 5,358 Total $ 30,257 $ 17,678 The following table provides information on significant components of the Company’s deferred tax assets and liabilities as of September 30, 2019 and December 31, 2018. September 30, December 31, (Dollars in thousands) 2019 2018 Deferred tax assets: Allowance for credit losses $ 2,850 $ 2,797 Reserve for off-balance sheet commitments 81 81 Net operating loss carry forward 37 — Write-downs of other real estate owned (3) 273 Nonaccrual loan interest 354 260 Unrealized losses on available-for-sale securities — 1,105 Unrealized losses on available-for-sale securities transferred to held to maturity 6 12 Other 480 524 Total deferred tax assets 3,805 5,052 Deferred tax liabilities: Depreciation 187 238 Amortization on loans FMV adjustment 48 60 Acquisition accounting adjustments 448 247 Deferred capital gain on branch sale 195 200 Unrealized gains on available-for-sale securities 10 — Other 122 125 Total deferred tax liabilities 1,010 870 Net deferred tax assets $ 2,795 $ 4,182 |
Other Liabilities
Other Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
Other Liabilities [Abstract] | |
Other Liabilities | Note 9 – Other Liabilities The Company had the following other liabilities at September 30, 2019 and December 31, 2018 excluding discontinued operations. (Dollars in thousands) September 30, 2019 December 31, 2018 Accrued interest payable $ 450 $ 604 Other accounts payable 211 3,213 Deferred compensation liability 1,074 1,040 Income taxes payable — 3,454 Other liabilities 3,304 104 Total $ 5,039 $ 8,415 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | Note 10 - 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 636,465 shares remained available for grant at September 30, 2019. The following tables provide information on stock-based compensation expense for the three and nine months ended September 30, 2019 and 2018. For Three Months Ended For Nine Months Ended September 30, September 30, (Dollars in thousands) 2019 2018 2019 2018 Stock-based compensation expense $ 61 $ 168 $ 92 $ 474 Excess tax benefits related to stock-based compensation 2 11 5 146 As of September 30, (Dollars in thousands) 2019 2018 Unrecognized stock-based compensation expense $ 90 $ 530 Weighted average period unrecognized expense is expected to be recognized 0.5 years 0.8 years The following table summarizes restricted stock award activity for the Company under the 2016 Equity Plan for the nine months ended September 30, 2019 and 2018. Nine Months Ended September 30, 2019 Weighted Average Number of Grant Date Shares Fair Value Nonvested at beginning of period — $ — Granted 15,702 15.36 Vested — — Cancelled — — Nonvested at end of period 15,702 $ 15.36 The fair value of restricted stock awards that vested during the first nine months of 2019 and 2018 was $0 and $520 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. In the second quarter of 2019, the Long-Term Incentive Plan culminating December 31, 2020 was terminated by the Board’s Compensation Committee and all outstanding RSUs were forfeited as presented in the table below. To replace this compensation incentive plan, the Compensation Committee elected to institute individual Supplemental Executive Retirement Plans (“SERPs”) which will be executed in the beginning of 2020, with the exception of three SERPs which began on July 19, 2019 for Lloyd L. Beatty, Jr., President and Chief Executive Officer, Edward C. Allen, Executive Vice President and Chief Financial Officer and Donna J. Stevens, Executive Vice President and Chief Operating Officer. These individuals also forfeited their RSUs in the LTI culminating December 31, 2019. During 2017, the Company entered into a long-term incentive plan agreement with officers of the Company and its subsidiaries to award RSUs based on a performance metric to be achieved as of December 31, 2019. Assuming the performance metric is achieved, 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 is between 6,178 shares and 24,726 shares, assuming a certain performance metric is met. The table below presents management’s evaluation of the probable number of common stock awards to be issued at the end of the performance cycle. During 2016, the Company entered into a long-term incentive plan 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. Based on the results for the year ended December 31, 2018, 15,577 shares were vested. The following table summarizes restricted stock units activity based on management’s evaluation of the probable number of common stock awards to be issued at the end of the performance cycle for the Company under the 2016 Equity Plan for the nine months ended September 30, 2019. Nine Months Ended September 30, 2019 Weighted Average Number of Grant Date Shares Fair Value Outstanding at beginning of period 38,562 $ 14.69 Granted — — Vested (15,577) 11.68 Forfeited (16,807) 16.78 Outstanding at end of period 6,178 $ 16.57 The fair value of restricted stock units that vested during the first nine months of 2019 and 2018 was $241 thousand and $383 thousand. The following table summarizes stock option activity for the Company under the 2016 Equity Plan for the nine months ended September 30, 2019 and 2018. Nine Months Ended September 30, 2019 Weighted Average Number of Grant Date Shares Exercise Price Outstanding at beginning of period 27,249 $ 9.68 Granted — — Exercised (15,578) 10.01 Expired/Cancelled — — Outstanding at end of period 11,671 $ 9.25 Exercisable at end of period 11,671 $ 9.25 There were no stock options granted during the three and nine months ended September 30, 2019 and September 30, 2018. 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. At the end of the third quarter of 2019, the aggregate intrinsic value of the options outstanding under the 2016 Equity Plan was $72 thousand based on the $15.41 market value per share of the Company’s common stock at September 30, 2019. Similarly, the aggregate intrinsic value of the options exercisable was $72 thousand at September 30, 2019. The intrinsic value on options exercised during the nine months ended September 30, 2019 was $72 thousand based on the $14.66 market value per share of the Company’s common stock at January 15, 2019. The intrinsic value on options exercised in 2018 was $365 thousand based on the $17.92 market value per share of the Company’s common stock at January 31, 2018. At September 30, 2019, the weighted average remaining contract life of options outstanding and exercisable was 5.0 years. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2019 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | Note 11 – Accumulated Other Comprehensive Income The Company records unrealized holding gains (losses), net of tax, on investment securities available for sale as accumulated other comprehensive income (loss), a separate component of stockholders’ equity. The following table provides information on the changes in the components of accumulated other comprehensive income (loss) for the nine months ended September 30, 2019 and 2018. Unrealized gains (losses) on securities Unrealized transferred from Accumulated gains (losses) on Available-for-sale other available for sale to comprehensive (Dollars in thousands) securities Held-to-maturity income (loss) Balance, December 31, 2018 $ (2,918) $ (32) $ (2,950) Other comprehensive income 2,967 16 2,983 Balance, September 30, 2019 $ 49 $ (16) $ 33 Balance, December 31, 2017 $ (1,255) $ (54) $ (1,309) Cumulative effect adjustment (ASU 2016-01) 6 — 6 Other comprehensive income (loss) (2,778) 15 (2,763) Balances, September 30, 2018 $ (4,027) $ (39) $ (4,066) |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note 12 – 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, if any, 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. Equity Securities Fair value measurement for equity securities is based on quoted market prices retrieved by the Company via on-line resources. Although these securities have readily available fair market values, the Company determined that they should be classified as level 2 investments in the fair value hierarchy due to not being considered traded in a highly active market. The tables below present the recorded amount of assets measured at fair value on a recurring basis at September 30, 2019 and December 31, 2018. No assets were transferred from one hierarchy level to another during the first nine months of 2019 or 2018. Significant Other Significant Quoted Observable Unobservable Prices Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) September 30, 2019 Securities available for sale: U.S. Government agencies $ 33,839 $ — $ 33,839 $ — Mortgage-backed 105,072 — 105,072 — 138,911 — 138,911 — Equity 1,339 — 1,339 — Total $ 140,250 $ — $ 140,250 $ — Significant Other Significant Quoted Observable Unobservable Prices Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) December 31, 2018 Securities available for sale: U.S. Government agencies $ 33,636 $ — $ 33,636 $ — Mortgage-backed 120,796 — 120,796 — 154,432 — 154,432 — Equity 1,269 — 1,269 — Total $ 155,701 $ — $ 155,701 $ — 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 according to the contractual terms of the loan agreement when due. 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 establishing a new cost basis. Subsequently, foreclosed assets are carried at the lower of carrying value or 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 September 30, 2019 and December 31, 2018. Quantitative Information about Level 3 Fair Value Measurements (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range September 30, 2019 Nonrecurring measurements: Impaired loans $ 1,777 Appraisal of collateral (1) Appraisal adjustments (2) 0% - 17% Liquidation expense 0% - 10% Impaired loans $ 3,956 Discounted cash flow analysis (1) Discount rate 4% - 7.25% Other real estate owned $ 74 Appraisal of collateral (1) Appraisal adjustments (2) 15% - 40% Liquidation expense (2) 5% - 10% Quantitative Information about Level 3 Fair Value Measurements (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range December 31, 2018 Nonrecurring measurements: Impaired loans $ 3,839 Appraisal of collateral (1) Appraisal adjustments (2) 0% - 17% Liquidation expense (2) 0% - 10% Impaired loans $ 5,902 Discounted cash flow analysis (1) Discount rate 4% - 7.25% Other real estate owned $ 1,222 Appraisal of collateral (1) Appraisal adjustments (2) 15% - 40% Liquidation expense (2) 5% - 10% (1) Fair value is generally determined through independent appraisals of the underlying collateral (impaired loans and OREO) or discounted cash flow analyses (impaired loans), which generally include various level III inputs which are not identifiable. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. The September 30, 2019 December 31, 2018 Estimated Estimated Carrying Fair Carrying Fair (Dollars in thousands) Amount Value Amount Value Financial assets Level 1 inputs Cash and cash equivalents $ 103,373 $ 103,373 $ 67,225 $ 67,225 Level 2 inputs Investment securities held to maturity $ 9,780 $ 9,715 $ 6,043 $ 6,000 Restricted securities 4,655 4,655 6,476 6,476 Cash surrender value on life insurance 18,440 18,440 3,726 3,726 Level 3 inputs Loans, net $ 1,224,597 $ 1,227,196 $ 1,185,012 $ 1,150,418 Financial liabilities Level 2 inputs Deposits: Noninterest-bearing demand $ 362,557 $ 362,557 $ 330,466 $ 330,466 Checking plus interest 288,521 288,521 239,809 239,809 Money market 248,114 248,114 232,613 232,613 Savings 141,498 141,498 148,723 148,723 Club 1,502 1,502 387 387 Brokered Deposits 12,070 12,067 22,084 22,075 Certificates of deposit, $100,000 or more 123,142 123,655 97,905 96,435 Other time 148,087 147,684 140,354 136,292 Short-term borrowings 17,263 17,263 60,812 60,812 Long-term borrowings 15,000 14,999 15,000 15,012 |
Financial Instruments with Off-
Financial Instruments with Off-Balance Sheet Risk | 9 Months Ended |
Sep. 30, 2019 | |
Financial Instruments With Off Balance Sheet Risk Disclosure [Abstract] | |
Financial Instruments with Off-Balance Sheet Risk | Note 13 – Financial Instruments with Off-Balance Sheet Risk In the normal course of business, to meet the financial needs of its customers, the Bank is a party to financial instruments with off-balance sheet risk. These financial instruments include commitments to extend credit and standby letters of credit. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. Letters of credit and other commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Because many of the letters of credit and commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. The following table provides information on commitments outstanding at September 30, 2019 and December 31, 2018. (Dollars in thousands) September 30, 2019 December 31, 2018 Commitments to extend credit $ 232,355 $ 210,463 Letters of credit 7,112 6,917 Total $ 239,467 $ 217,380 |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Note 14 – Revenue Recognition On January 1, 2018, the Company adopted ASU No. 2014-09 “Revenue from Contracts with Customers” (Topic 606) and all subsequent ASUs that modified Topic 606. The implementation of the new standard did not have a material impact on the measurement or recognition of revenue; as such, a cumulative effect adjustment to opening retained earnings was not deemed necessary. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts were not adjusted and continue to be reported in accordance with our historic accounting under Topic 605. Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. Topic 606 is applicable to noninterest revenue streams such as trust and asset management income, deposit related fees, interchange fees and merchant income. However, the recognition of these revenue streams did not change significantly upon adoption of Topic 606. Substantially all of the Company’s revenue is generated from contracts with customers. Noninterest revenue streams in-scope of Topic 606 are discussed below. Service Charges on Deposit Accounts Service charges on deposit accounts consist of account analysis fees (i.e., net fees earned on analyzed business and public checking accounts), monthly service fees, check orders, and other deposit account related fees. The Company’s performance obligation for account analysis fees and monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Check orders and other deposit account related fees are largely transactional based, and therefore, the Company’s performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or at the end of the month through a direct charge to customers’ accounts. Trust and Investment Fee Income Trust and investment fee income are primarily comprised of fees earned from the management and administration of trusts and other customer assets. The Company’s performance obligation is generally satisfied over time and the resulting fees are recognized monthly, based upon the month-end market value of the assets under management and the applicable fee rate. Payment is generally received a few days after month end through a direct charge to customers’ accounts. The Company does not earn performance-based incentives. Optional services such as real estate sales and tax return preparation services are also available to existing trust and asset management customers. The Company’s performance obligation for these transactional-based services is generally satisfied, and related revenue recognized, at a point in time (i.e., as incurred). Payment is received shortly after services are rendered. Other Noninterest Income Other noninterest income consists of: fees, exchange, other service charges, safety deposit box rental fees, and other miscellaneous revenue streams. Fees and other service charges are primarily comprised of debit and credit card income, ATM fees, merchant services income, and other service charges. Debit and credit card income is primarily comprised of interchange fees earned whenever the Company’s debit and credit cards are processed through card payment networks such as Visa. ATM fees are primarily generated when a Company cardholder uses a non-Company ATM or a non-Company cardholder uses a Company ATM. Merchant services income mainly represents fees charged to merchants to process their debit and credit card transactions, in addition to account management fees. Other service charges include revenue from processing wire transfers, bill pay service, cashier’s checks, and other services. The Company’s performance obligation for fees, exchange, and other service charges are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month. Safe deposit box rental fees are charged to the customer on an annual basis and recognized upon receipt of payment. The Company determined that rentals and renewals of safe deposit boxes will be recognized on a monthly basis consistent with the duration of the performance obligation. The following presents noninterest income from continuing operations, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three and nine months ended September 30, 2019 and 2018. For Three Months Ended For Nine Months Ended September 30, September 30, (Dollars in thousands) 2019 2018 2019 2018 Noninterest Income In-scope of Topic 606: Service charges on deposit accounts $ 990 $ 982 $ 2,952 $ 2,834 Trust and investment fee income 383 383 1,140 1,197 Other noninterest income 1,018 1,076 3,005 2,802 Noninterest Income (in-scope of Topic 606) 2,391 2,441 7,097 6,833 Noninterest Income (out-of-scope of Topic 606) 138 24 229 68 Total Noninterest Income $ 2,529 $ 2,465 $ 7,326 $ 6,901 Contract Balances A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s noninterest revenue streams are largely based on transactional activity, or standard month-end revenue accruals such as asset management fees based on month-end market values. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of September 30, 2019 and December 31, 2018, the Company did not have any significant contract balances. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | The consolidated financial statements include the accounts of Shore Bancshares, Inc. and its subsidiaries with all significant intercompany transactions eliminated. The consolidated financial statements conform to accounting principles generally accepted in the United States of America (“GAAP”) and to prevailing practices within the banking industry. The accompanying interim financial statements are unaudited; however, in the opinion of management all adjustments necessary to present fairly the consolidated financial position at September 30, 2019, the consolidated results of income and comprehensive income for the three and nine months ended September 30, 2019 and 2018, changes in stockholders’ equity for the three and nine months ended September 30, 2019 and cash flows for the nine months ended September 30, 2019 and 2018, have been included. All such adjustments are of a normal recurring nature. The amounts as of December 31, 2018 were derived from the 2018 audited financial statements. The results of operations for the three and nine months ended September 30, 2019 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, 2018. For purposes of comparability, certain immaterial 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 subsidiary. |
Recent Accounting Standards | Recent Accounting Standards ASU No. 2016-13 - In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The amendments in this ASU, among other things, require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. At the FASB’s October 16, 2019 meeting, the Board affirmed its decision to amend the effective date of this ASU for many companies. Public business entities that are SEC filers, excluding those meeting the smaller reporting company definition, will retain the initial required implementation date of fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. All other entities will be required to apply the guidance for fiscal years, and interim periods within those years, beginning after December 15, 2022 . At this time, the Company has established a project management team which meets periodically to discuss and assign roles and responsibilities, key tasks to complete, and a general timeline to be followed for implementation. The team has been working with an advisory consultant and has purchased a vendor model for implementation. Historical data has been collected and uploaded to the new model and the team is in the process of finalizing the methodologies that will be utilized. The team is currently running a parallel simulation to its current incurred loss impairment model. The Company is continuing to evaluate the extent of the potential impact of this standard and continues to keep current on evolving interpretations and industry practices via webcasts, publications, conferences, and peer bank meetings. ASU No. 2017-04 – In January 2017, the FASB issued ASU No. 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment”. The amendments in this ASU simplify how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Instead, under the amendments in this ASU, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. Public business entities that are U.S. Securities and Exchange Commission (SEC) filers should adopt the amendments in this ASU for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual 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. 2018-13 – In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement.” The amendments modify the disclosure requirements in Topic 820 to add disclosures regarding changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements and the narrative description of measurement uncertainty. Certain disclosure requirements in Topic 820 are also removed or modified. The amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Certain of the amendments are to be applied prospectively while others are to be applied retrospectively. Early adoption is permitted. As ASU No. 2018-13 only revises disclosure requirements, it will not have a material impact on the Company’s Consolidated Financial Statements. ASU No. 2019-04 – In April 2019, the FASB issued ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments.” This ASU clarifies and improves areas of guidance related to the recently issued standards on credit losses, hedging, and recognition and measurement including improvements resulting from various TRG Meetings. The amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact that ASU 2019-04 will have on its consolidated financial statements. ASU No. 2019-05 - In May 2019, the FASB issued ASU 2019-05, “Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief.” The amendments in this ASU provide entities that have certain instruments within the scope of Subtopic 326-20 with an option to irrevocably elect the fair value option in Subtopic 825-10, applied on an instrument-by-instrument basis for eligible instruments, upon the adoption of Topic 326. The fair value option election does not apply to held-to-maturity debt securities. An entity that elects the fair value option should subsequently measure those instruments at fair value with changes in fair value flowing through earnings. The amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The amendments should be applied on a modified-retrospective basis by means of a cumulative-effect adjustment to the opening balance of retained earnings balance in the balance sheet. Early adoption is permitted. The Company is currently assessing the impact that ASU 2019-04 will have on its consolidated financial statements. |
Sale of Subsidiary (Tables)
Sale of Subsidiary (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Sale of Subsidiary [Abstract] | |
Net gain on disposal of discontinued operations | ($ in thousands) Year Ended December 31, 2018 Proceeds from the transaction $ 29,276 Compensation expense related to the transaction 2,588 Broker fees 935 Other transaction costs 594 Net cash proceeds 25,159 Net assets sold (12,423) Net gain on disposal $ 12,736 |
Financial information of discontinued operations | The following tables present the financial information of discontinued operations as of the dates and for the periods indicated: September 30, December 31, ($ in thousands) 2019 2018 ASSETS Goodwill $ — $ 8 Other assets — 625 Assets of discontinued operations $ — $ 633 LIABILITIES Accrued expenses and other liabilities $ — $ 3,323 Liabilities of discontinued operations $ — $ 3,323 For Three Months Ended For Nine Months Ended September 30, September 30, ($ in thousands) 2019 2018 2019 2018 Noninterest income Insurance agency commissions $ — $ 2,170 $ — $ 7,015 All other income — 76 15 264 Total noninterest income — 2,246 15 7,279 Noninterest expense Salaries and wages — 1,307 28 3,836 Employee benefits — 288 7 953 Occupancy expense — 121 14 330 Furniture and equipment — 38 1 98 Amortization of intangible assets — 12 — 35 Legal and professional fees 2 20 73 54 Other noninterest expenses 8 191 5 656 Total noninterest expense 10 1,977 128 5,962 (Loss) income from discontinued operations before income taxes (10) 269 (113) 1,317 Income tax (benefit) expense (2) 71 (27) 324 (Loss) income from discontinued operations $ (8) $ 198 $ (86) $ 993 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | For the Three Months Ended For the Nine Months Ended September 30, September 30, (In thousands, except per share data) 2019 2018 2019 2018 Net income from continuing operations $ 4,214 $ 4,256 $ 12,270 $ 11,910 Net (loss) income from discontinued operations (8) 198 (86) 993 Net Income $ 4,206 $ 4,454 $ 12,184 $ 12,903 Weighted average shares outstanding - Basic 12,764 12,748 12,771 12,736 Dilutive effect of common stock equivalents-options 5 13 5 13 Weighted average shares outstanding - Diluted 12,769 12,761 12,776 12,749 Basic earnings per common share Income from continuing operations $ 0.33 $ 0.33 $ 0.96 $ 0.93 (Loss) income from discontinued operations — 0.02 (0.01) 0.08 Net income $ 0.33 $ 0.35 $ 0.95 $ 1.01 Diluted earnings per common share Income from continuing operations $ 0.33 $ 0.33 $ 0.96 $ 0.93 (Loss) income from discontinued operations — 0.02 (0.01) 0.08 Net income $ 0.33 $ 0.35 $ 0.95 $ 1.01 |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investment Securities [Abstract] | |
Schedule of Available-for-Sale and Held-to-Maturity Securities Reconciliation | Gross Gross Estimated Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value Available-for-sale securities: September 30, 2019 U.S. Government agencies $ 33,917 $ 3 $ 81 $ 33,839 Mortgage-backed 104,926 458 312 105,072 Total $ 138,843 $ 461 $ 393 $ 138,911 December 31, 2018 U.S. Government agencies $ 34,285 $ 2 $ 651 $ 33,636 Mortgage-backed 124,162 115 3,481 120,796 Total $ 158,447 $ 117 $ 4,132 $ 154,432 Held-to-maturity securities: September 30, 2019 U.S. Government agencies $ 1,380 $ 12 $ — $ 1,392 States and political subdivisions 1,400 1 — 1,401 Other Debt securities 7,000 — 78 6,922 Total $ 9,780 $ 13 $ 78 $ 9,715 December 31, 2018 U.S. Government agencies $ 1,642 $ — $ 25 $ 1,617 States and political subdivisions 1,401 14 — 1,415 Other Debt securities 3,000 — 32 2,968 Total $ 6,043 $ 14 $ 57 $ 6,000 |
Available-For-Sale Securities and Held-to-Maturity, Continuous Unrealized Loss Position, Fair Value | Less than More than 12 Months 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses September 30, 2019 Available-for-sale securities: U.S. Government agencies $ 8,985 $ 15 $ 24,854 $ 66 $ 33,839 $ 81 Mortgage-backed 17,476 48 23,296 264 40,772 312 Total $ 26,461 $ 63 $ 48,150 $ 330 $ 74,611 $ 393 Held-to-maturity securities: Other debt securities 6,922 78 — — 6,922 78 Total $ 6,922 $ 78 $ — $ — $ 6,922 $ 78 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, 2018 Available-for-sale securities: U.S. Government agencies $ 1,079 $ 10 $ 32,362 $ 641 $ 33,441 $ 651 Mortgage-backed 13,981 261 99,904 3,220 113,885 3,481 Total $ 15,060 $ 271 $ 132,266 $ 3,861 $ 147,326 $ 4,132 Held-to-maturity securities: U.S. Government agencies — — 1,617 25 1,617 25 Other debt securities 2,968 32 — — 2,968 32 Total $ 2,968 $ 32 $ 1,617 $ 25 $ 4,585 $ 57 |
Schedule of Securities Debt Maturities | Available for sale Held to maturity Amortized Amortized (Dollars in thousands) Cost Fair Value Cost Fair Value Due in one year or less $ 5,999 $ 5,994 $ 1,000 $ 1,000 Due after one year through five years 28,660 28,581 400 401 Due after five years through ten years 56,236 56,373 7,000 6,922 Due after ten years 47,948 47,963 1,380 1,392 Total $ 138,843 $ 138,911 $ 9,780 $ 9,715 |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Schedule of Financing Receivables | (Dollars in thousands) September 30, 2019 December 31, 2018 Construction $ 116,368 $ 127,572 Residential real estate 442,324 429,560 Commercial real estate 558,741 523,427 Commercial 105,583 107,522 Consumer 12,019 7,274 Total loans 1,235,035 1,195,355 Allowance for credit losses (10,438) (10,343) Total loans, net $ 1,224,597 $ 1,185,012 |
Allowance for Credit Losses on Financing Receivables | Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Total September 30, 2019 Loans individually evaluated for impairment $ 43 $ 6,712 $ 13,639 $ 436 $ — $ 20,830 Loans collectively evaluated for impairment 116,325 435,612 545,102 105,147 12,019 1,214,205 Total loans $ 116,368 $ 442,324 $ 558,741 $ 105,583 $ 12,019 $ 1,235,035 Allowance for credit losses allocated to: Loans individually evaluated for impairment $ — $ 441 $ 452 $ 62 $ — $ 955 Loans collectively evaluated for impairment 1,541 2,240 3,396 1,954 352 9,483 Total allowance $ 1,541 $ 2,681 $ 3,848 $ 2,016 $ 352 $ 10,438 Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Total December 31, 2018 Loans individually evaluated for impairment $ 2,893 $ 8,553 $ 13,532 $ 340 $ — $ 25,318 Loans collectively evaluated for impairment 124,679 421,007 509,895 107,182 7,274 1,170,037 Total loans $ 127,572 $ 429,560 $ 523,427 $ 107,522 $ 7,274 $ 1,195,355 Allowance for credit losses allocated to: Loans individually evaluated for impairment $ 320 $ 301 $ 104 $ 36 $ — $ 761 Loans collectively evaluated for impairment 2,342 2,052 2,973 1,913 302 9,582 Total allowance $ 2,662 $ 2,353 $ 3,077 $ 1,949 $ 302 $ 10,343 |
Impaired Financing Receivables | Recorded Recorded September 30, 2019 Unpaid investment investment Quarter-to-date Average Interest principal with no with an Related average recorded recorded recorded (Dollars in thousands) balance allowance allowance allowance investment investment investment September 30, 2019 Impaired nonaccrual loans: Construction $ — — — — — 1,435 — Residential real estate 2,366 489 1,570 256 2,642 2,904 — Commercial real estate 10,834 8,901 1,262 430 10,221 9,717 — Commercial 425 — 308 4 310 316 — Consumer — — — — — — — Total $ 13,625 $ 9,390 $ 3,140 $ 690 $ 13,173 $ 14,372 $ — Impaired accruing TDRs: Construction $ 43 $ 43 $ — $ — $ 44 $ 47 $ 9 Residential real estate 4,069 1,260 2,809 185 4,052 4,193 130 Commercial real estate 3,476 2,795 681 22 3,479 3,515 93 Commercial — — — — — — — Consumer — — — — — — — Total $ 7,588 $ 4,098 $ 3,490 $ 207 $ 7,575 $ 7,755 $ 232 Other Impaired accruing loans: Construction $ — $ — $ — $ — $ — $ — $ — Residential real estate 584 584 — — — — — Commercial real estate — — — — — — — Commercial 128 — 128 58 — — — Consumer — — — — — — — Total $ 712 $ 584 $ 128 $ 58 $ — $ — $ — Total impaired loans: Construction $ 43 $ 43 $ — $ — $ 44 $ 1,482 $ 9 Residential real estate 6,435 1,749 4,379 441 6,694 7,097 130 Commercial real estate 14,310 11,696 1,943 452 13,700 13,232 93 Commercial 425 — 308 4 310 316 — Consumer — — — — — — — Total $ 21,213 $ 13,488 $ 6,630 $ 897 $ 20,748 $ 22,127 $ 232 Recorded Recorded September 30, 2018 Unpaid investment investment Quarter-to-date Average Interest principal with no with an Related average recorded recorded income (Dollars in thousands) balance allowance allowance allowance investment investment recognized December 31, 2018 Impaired nonaccrual loans: Construction $ 3,219 $ 127 $ 2,715 $ 320 $ 3,043 $ 3,006 $ — Residential real estate 4,281 2,605 1,494 118 1,710 1,573 — Commercial real estate 10,029 9,307 67 67 1,742 1,438 — Commercial 445 — 340 36 327 338 — Consumer — — — — — — — Total $ 17,974 $ 12,039 $ 4,616 $ 541 $ 6,822 $ 6,355 $ — Impaired accruing TDRs: Construction $ 51 $ 51 $ — $ — $ 145 $ 1,138 $ 13 Residential real estate 4,454 1,440 3,014 183 4,709 4,613 46 Commercial real estate 4,158 1,286 2,872 37 4,307 4,499 41 Commercial — — — — — — — Consumer — — — — — — — Total $ 8,663 $ 2,777 $ 5,886 $ 220 $ 9,161 $ 10,250 $ 100 Total impaired loans: Construction $ 3,270 $ 178 $ 2,715 $ 320 $ 3,188 $ 4,144 $ 13 Residential real estate 8,735 4,045 4,508 301 6,419 6,186 46 Commercial real estate 14,187 10,593 2,939 104 6,049 5,937 41 Commercial 445 — 340 36 327 338 — Consumer — — — — — — — Total $ 26,637 $ 14,816 $ 10,502 $ 761 $ 15,983 $ 16,605 $ 100 |
Troubled Debt Restructurings on Financing Receivables | The following tables provide a roll-forward for TDRs as of September 30, 2019 and September 30, 2018. 1/1/2019 9/30/2019 TDR New Disbursements Charge- Reclassifications/ TDR Related (Dollars in thousands) Balance TDRs (Payments) offs Transfer In/(Out) Payoffs Balance Allowance For nine months ended September 30, 2019 Accruing TDRs Construction $ 51 $ — $ (8) $ — $ — $ — $ 43 $ — Residential real estate 4,454 41 (73) — — (353) 4,069 185 Commercial real estate 4,158 — (682) — — — 3,476 22 Commercial — — — — — — — — Consumer — — — — — — — — Total $ 8,663 $ 41 $ (763) $ — $ — $ (353) $ 7,588 $ 207 Nonaccrual TDRs Construction $ 2,798 $ — $ (1,379) $ (3) $ — $ — $ 1,416 $ 133 Residential real estate — — — — — — — — Commercial real estate — — — — — — — — Commercial 320 — (12) — — — 308 4 Consumer — — — — — — — — Total $ 3,118 $ — $ (1,391) $ (3) $ — $ — $ 1,724 $ 137 Total $ 11,781 $ 41 $ (2,154) $ (3) $ — $ (353) $ 9,312 $ 344 1/1/2018 9/30/2018 TDR New Disbursements Charge- Reclassifications/ TDR Related (Dollars in thousands) Balance TDRs (Payments) offs Transfer In/(Out) Payoffs Balance Allowance For nine months ended September 30, 2018 Accruing TDRs Construction $ 3,972 $ — $ (225) $ (379) $ (696) $ (2,600) $ 72 $ 19 Residential real estate 4,536 — (63) — 542 (351) 4,664 194 Commercial real estate 4,818 — (402) — — (219) 4,197 32 Commercial — — — — — — — — Consumer — — — — — — — — Total $ 13,326 $ — $ (690) $ (379) $ (154) $ (3,170) $ 8,933 $ 245 Nonaccrual TDRs Construction $ 2,878 $ — $ (73) $ — $ 83 $ — $ 2,888 $ 356 Residential real estate — — — (80) 80 — — — Commercial real estate 83 — — — (83) — — — Commercial 337 — (13) — — — 324 20 Consumer — — — — — — — — Total $ 3,298 $ — $ (86) $ (80) $ 80 $ — $ 3,212 $ 376 Total $ 16,624 $ — $ (776) $ (459) $ (74) $ (3,170) $ 12,145 $ 621 The following tables provide information on loans that were modified and considered TDRs during the nine months ended September 30, 2019 and September 30, 2018. Premodification Postmodification outstanding outstanding Number of recorded recorded Related (Dollars in thousands) contracts investment investment allowance TDRs: For nine months ended September 30, 2019 Construction — $ — $ — $ — Residential real estate 1 75 41 — Commercial real estate — — — — Commercial — — — — Consumer — — — — Total 1 $ 75 $ 41 $ — For nine months ended September 30, 2018 Construction — $ — $ — $ — Residential real estate — — — — Commercial real estate — — — — Commercial — — — — Consumer — — — — Total — $ — $ — $ — |
Troubled Debt Restructurings That Defaulted On Financing Receivables | Number of Recorded Related (Dollars in thousands) contracts investment allowance TDRs that subsequently defaulted: For nine months ended September 30, 2019 Construction — $ — $ — Residential real estate — — — Commercial real estate — — — Commercial — — — Consumer — — — Total — $ — $ — For nine months ended September 30, 2018 Construction 1 $ 379 $ — Residential real estate 1 154 — Commercial real estate — — — Commercial — — — Consumer — — — Total 2 $ 533 $ — |
Financing Receivable Credit Quality Indicators | Special (Dollars in thousands) Pass/Performing Pass/Watch Mention Substandard Doubtful Total September 30, 2019 Construction $ 100,669 $ 13,560 $ 2,139 $ — $ — $ 116,368 Residential real estate 405,154 28,927 5,408 2,835 — 442,324 Commercial real estate 427,825 110,846 4,999 15,071 — 558,741 Commercial 85,507 19,725 10 341 — 105,583 Consumer 11,619 397 — 3 — 12,019 Total $ 1,030,774 $ 173,455 $ 12,556 $ 18,250 $ — $ 1,235,035 Special (Dollars in thousands) Pass/Performing Pass/Watch Mention Substandard Doubtful Total December 31, 2018 Construction $ 93,977 $ 30,735 $ — $ 2,860 $ — $ 127,572 Residential real estate 386,553 33,739 3,769 5,499 — 429,560 Commercial real estate 389,219 113,873 4,515 15,820 — 523,427 Commercial 90,777 15,727 642 376 — 107,522 Consumer 6,805 466 — 3 — 7,274 Total $ 967,331 $ 194,540 $ 8,926 $ 24,558 $ — $ 1,195,355 |
Past Due Financing Receivables | Accruing 30‑59 days 60‑89 days Greater than Total (Dollars in thousands) Current past due past due 90 days past due Nonaccrual Total September 30, 2019 Construction $ 116,111 $ — $ 257 $ — $ 257 $ — $ 116,368 Residential real estate 433,458 5,195 1,028 584 6,807 2,059 442,324 Commercial real estate 546,492 1,894 192 — 2,086 10,163 558,741 Commercial 104,809 337 1 128 466 308 105,583 Consumer 11,985 18 16 — 34 — 12,019 Total $ 1,212,855 $ 7,444 $ 1,494 $ 712 $ 9,650 $ 12,530 $ 1,235,035 Percent of total loans 98.2 % 0.6 % 0.1 % 0.1 % 0.8 % 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, 2018 Construction $ 124,535 $ 195 $ — $ — $ 195 $ 2,842 $ 127,572 Residential real estate 423,732 1,384 206 139 1,729 4,099 429,560 Commercial real estate 512,252 253 1,548 — 1,801 9,374 523,427 Commercial 107,089 83 10 — 93 340 107,522 Consumer 7,238 30 6 — 36 — 7,274 Total $ 1,174,846 $ 1,945 $ 1,770 $ 139 $ 3,854 $ 16,655 $ 1,195,355 Percent of total loans 98.3 % 0.2 % 0.1 % — % 0.3 % 1.4 % 100.0 % |
Consolidated Allowance for Credit Losses on Financing Receivables | Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Total For three months ended September 30, 2019 Allowance for credit losses: Beginning Balance $ 2,443 $ 2,155 $ 3,367 $ 2,057 $ 283 $ 10,305 Charge-offs — (86) — (98) — (184) Recoveries 1 12 7 96 1 117 Net charge-offs 1 (74) 7 (2) 1 (67) Provision (903) 600 474 (39) 68 200 Ending Balance $ 1,541 $ 2,681 $ 3,848 $ 2,016 $ 352 $ 10,438 Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Total For three months ended September 30, 2018 Allowance for credit losses: Beginning Balance $ 2,593 $ 2,150 $ 2,845 $ 2,210 $ 323 $ 10,121 Charge-offs — (109) — (137) — (246) Recoveries 3 5 5 122 11 146 Net charge-offs 3 (104) 5 (15) 11 (100) Provision 188 95 87 15 (78) 307 Ending Balance $ 2,784 $ 2,141 $ 2,937 $ 2,210 $ 256 $ 10,328 Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Total For nine months ended September 30, 2019 Allowance for credit losses: Beginning Balance $ 2,662 $ 2,353 $ 3,077 $ 1,949 $ 302 $ 10,343 Charge-offs (3) (509) — (260) (29) (801) Recoveries 8 23 114 248 3 396 Net charge-offs 5 (486) 114 (12) (26) (405) Provision (1,126) 814 657 79 76 500 Ending Balance $ 1,541 $ 2,681 $ 3,848 $ 2,016 $ 352 $ 10,438 Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Total For nine months ended September 30, 2018 Allowance for credit losses: Beginning Balance $ 2,460 $ 2,284 $ 2,594 $ 2,241 $ 202 $ 9,781 Charge-offs (379) (288) — (263) (24) (954) Recoveries 18 91 23 144 11 287 Net charge-offs (361) (197) 23 (119) (13) (667) Provision 685 54 320 88 67 1,214 Ending Balance $ 2,784 $ 2,141 $ 2,937 $ 2,210 $ 256 $ 10,328 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Information about leases | (Dollars in thousands) September 30, 2019 Lease liabilities $ 4,923 Right-of-use assets $ 4,908 Weighted average remaining lease term 11.87 years Weighted average discount rate 3.12 % For the three months ended For the nine months ended Lease cost (in thousands) September 30, 2019 September 30, 2019 Operating lease cost $ 173 $ 440 Short-term lease cost — — Total lease cost $ 173 $ 440 Cash paid for amounts included in the measurement of lease liabilities $ 163 $ 419 |
Operating lease liabilities | As of Lease payments due (in thousands) September 30, 2019 Three months ending December 31, 2019 $ 168 Twelve months ending December 31, 2020 604 Twelve months ending December 31, 2021 545 Twelve months ending December 31, 2022 541 Twelve months ending December 31, 2023 521 Twelve months ending December 31, 2024 473 Thereafter 3,258 Total undiscounted cash flows $ 6,110 Discount 1,187 Lease liabilities $ 4,923 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Table) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Other Intangibles [Abstract] | |
Schedule of Components of Goodwill and Other Acquired Intangible Assets | September 30, 2019 Weighted Gross Accumulated Net Average Carrying Impairment Accumulated Carrying Remaining Life (Dollars in thousands) Amount Charges Amortization Amount (in years) Goodwill $ 19,728 $ (1,543) $ (667) $ 17,518 — Other intangible assets Amortizable Core deposit intangible $ 3,954 $ — $ (1,558) $ 2,396 6.1 Total other intangible assets $ 3,954 $ — $ (1,558) $ 2,396 December 31, 2018 Weighted Gross Accumulated Net Average Carrying Impairment Accumulated Carrying Remaining Life (Dollars in thousands) Amount Charges Amortization Amount (in years) Goodwill $ 19,728 $ (1,543) $ (667) $ 17,518 — Other intangible assets Amortizable Core deposit intangible $ 3,954 $ — $ (1,097) $ 2,857 7.2 Total other intangible assets $ 3,954 $ — $ (1,097) $ 2,857 |
Future Amortization Expense for Amortizable Other Intangible Assets | (Dollars in thousands) Amortization 2019 $ 144 2020 533 2021 461 2022 389 2023 317 2024 246 Thereafter 306 Total amortizing intangible assets $ 2,396 |
Other Assets (Tables)
Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Other Assets [Abstract] | |
Schedule of Other Assets | (Dollars in thousands) September 30, 2019 December 31, 2018 Accrued interest receivable 3,507 3,345 Deferred income taxes 2,795 4,182 Prepaid expenses 1,483 1,067 Cash surrender value on life insurance 18,440 3,726 Income taxes receivable 518 — Other assets 3,514 5,358 Total $ 30,257 $ 17,678 |
Schedule of Deferred Tax Assets and Liabilities | September 30, December 31, (Dollars in thousands) 2019 2018 Deferred tax assets: Allowance for credit losses $ 2,850 $ 2,797 Reserve for off-balance sheet commitments 81 81 Net operating loss carry forward 37 — Write-downs of other real estate owned (3) 273 Nonaccrual loan interest 354 260 Unrealized losses on available-for-sale securities — 1,105 Unrealized losses on available-for-sale securities transferred to held to maturity 6 12 Other 480 524 Total deferred tax assets 3,805 5,052 Deferred tax liabilities: Depreciation 187 238 Amortization on loans FMV adjustment 48 60 Acquisition accounting adjustments 448 247 Deferred capital gain on branch sale 195 200 Unrealized gains on available-for-sale securities 10 — Other 122 125 Total deferred tax liabilities 1,010 870 Net deferred tax assets $ 2,795 $ 4,182 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Other Liabilities [Abstract] | |
Schedule of Other Liabilities | (Dollars in thousands) September 30, 2019 December 31, 2018 Accrued interest payable $ 450 $ 604 Other accounts payable 211 3,213 Deferred compensation liability 1,074 1,040 Income taxes payable — 3,454 Other liabilities 3,304 104 Total $ 5,039 $ 8,415 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Schedule of Stock-Based Compensation | For Three Months Ended For Nine Months Ended September 30, September 30, (Dollars in thousands) 2019 2018 2019 2018 Stock-based compensation expense $ 61 $ 168 $ 92 $ 474 Excess tax benefits related to stock-based compensation 2 11 5 146 As of September 30, (Dollars in thousands) 2019 2018 Unrecognized stock-based compensation expense $ 90 $ 530 Weighted average period unrecognized expense is expected to be recognized 0.5 years 0.8 years |
Schedule of Share-based Compensation, Stock Options Activity | Nine Months Ended September 30, 2019 Weighted Average Number of Grant Date Shares Exercise Price Outstanding at beginning of period 27,249 $ 9.68 Granted — — Exercised (15,578) 10.01 Expired/Cancelled — — Outstanding at end of period 11,671 $ 9.25 Exercisable at end of period 11,671 $ 9.25 |
2016 and 2006 Plan [Member] | Restricted Stock Units [Member] | |
Schedule of Share-based Compensation, Restricted Stock and Units Award Activity | Nine Months Ended September 30, 2019 Weighted Average Number of Grant Date Shares Fair Value Outstanding at beginning of period 38,562 $ 14.69 Granted — — Vested (15,577) 11.68 Forfeited (16,807) 16.78 Outstanding at end of period 6,178 $ 16.57 |
Equity Plan 2016 [Member] | |
Schedule of Share-based Compensation, Restricted Stock and Units Award Activity | Nine Months Ended September 30, 2019 Weighted Average Number of Grant Date Shares Fair Value Nonvested at beginning of period — $ — Granted 15,702 15.36 Vested — — Cancelled — — Nonvested at end of period 15,702 $ 15.36 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accumulated Other Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Unrealized gains (losses) on securities Unrealized transferred from Accumulated gains (losses) on Available-for-sale other available for sale to comprehensive (Dollars in thousands) securities Held-to-maturity income (loss) Balance, December 31, 2018 $ (2,918) $ (32) $ (2,950) Other comprehensive income 2,967 16 2,983 Balance, September 30, 2019 $ 49 $ (16) $ 33 Balance, December 31, 2017 $ (1,255) $ (54) $ (1,309) Cumulative effect adjustment (ASU 2016-01) 6 — 6 Other comprehensive income (loss) (2,778) 15 (2,763) Balances, September 30, 2018 $ (4,027) $ (39) $ (4,066) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Measurements [Abstract] | |
Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis | Significant Other Significant Quoted Observable Unobservable Prices Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) September 30, 2019 Securities available for sale: U.S. Government agencies $ 33,839 $ — $ 33,839 $ — Mortgage-backed 105,072 — 105,072 — 138,911 — 138,911 — Equity 1,339 — 1,339 — Total $ 140,250 $ — $ 140,250 $ — Significant Other Significant Quoted Observable Unobservable Prices Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) December 31, 2018 Securities available for sale: U.S. Government agencies $ 33,636 $ — $ 33,636 $ — Mortgage-backed 120,796 — 120,796 — 154,432 — 154,432 — Equity 1,269 — 1,269 — Total $ 155,701 $ — $ 155,701 $ — |
Fair Value of Assets Measured on Nonrecurring Basis | Quantitative Information about Level 3 Fair Value Measurements (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range September 30, 2019 Nonrecurring measurements: Impaired loans $ 1,777 Appraisal of collateral (1) Appraisal adjustments (2) 0% - 17% Liquidation expense 0% - 10% Impaired loans $ 3,956 Discounted cash flow analysis (1) Discount rate 4% - 7.25% Other real estate owned $ 74 Appraisal of collateral (1) Appraisal adjustments (2) 15% - 40% Liquidation expense (2) 5% - 10% Quantitative Information about Level 3 Fair Value Measurements (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range December 31, 2018 Nonrecurring measurements: Impaired loans $ 3,839 Appraisal of collateral (1) Appraisal adjustments (2) 0% - 17% Liquidation expense (2) 0% - 10% Impaired loans $ 5,902 Discounted cash flow analysis (1) Discount rate 4% - 7.25% Other real estate owned $ 1,222 Appraisal of collateral (1) Appraisal adjustments (2) 15% - 40% Liquidation expense (2) 5% - 10% (1) Fair value is generally determined through independent appraisals of the underlying collateral (impaired loans and OREO) or discounted cash flow analyses (impaired loans), which generally include various level III inputs which are not identifiable. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. |
Schedule of Estimated Fair Values of Financial Assets and Liabilities | September 30, 2019 December 31, 2018 Estimated Estimated Carrying Fair Carrying Fair (Dollars in thousands) Amount Value Amount Value Financial assets Level 1 inputs Cash and cash equivalents $ 103,373 $ 103,373 $ 67,225 $ 67,225 Level 2 inputs Investment securities held to maturity $ 9,780 $ 9,715 $ 6,043 $ 6,000 Restricted securities 4,655 4,655 6,476 6,476 Cash surrender value on life insurance 18,440 18,440 3,726 3,726 Level 3 inputs Loans, net $ 1,224,597 $ 1,227,196 $ 1,185,012 $ 1,150,418 Financial liabilities Level 2 inputs Deposits: Noninterest-bearing demand $ 362,557 $ 362,557 $ 330,466 $ 330,466 Checking plus interest 288,521 288,521 239,809 239,809 Money market 248,114 248,114 232,613 232,613 Savings 141,498 141,498 148,723 148,723 Club 1,502 1,502 387 387 Brokered Deposits 12,070 12,067 22,084 22,075 Certificates of deposit, $100,000 or more 123,142 123,655 97,905 96,435 Other time 148,087 147,684 140,354 136,292 Short-term borrowings 17,263 17,263 60,812 60,812 Long-term borrowings 15,000 14,999 15,000 15,012 |
Financial Instruments with Of_2
Financial Instruments with Off-Balance Sheet Risk (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Financial Instruments With Off Balance Sheet Risk Disclosure [Abstract] | |
Schedule of Commitments Outstanding | (Dollars in thousands) September 30, 2019 December 31, 2018 Commitments to extend credit $ 232,355 $ 210,463 Letters of credit 7,112 6,917 Total $ 239,467 $ 217,380 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue Recognition [Abstract] | |
Noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606 | For Three Months Ended For Nine Months Ended September 30, September 30, (Dollars in thousands) 2019 2018 2019 2018 Noninterest Income In-scope of Topic 606: Service charges on deposit accounts $ 990 $ 982 $ 2,952 $ 2,834 Trust and investment fee income 383 383 1,140 1,197 Other noninterest income 1,018 1,076 3,005 2,802 Noninterest Income (in-scope of Topic 606) 2,391 2,441 7,097 6,833 Noninterest Income (out-of-scope of Topic 606) 138 24 229 68 Total Noninterest Income $ 2,529 $ 2,465 $ 7,326 $ 6,901 |
Sale of Subsidiary (Narrative)
Sale of Subsidiary (Narrative) (Details) - Discontinued Operations, Disposed of by Sale - Avon $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Percentage of investment in Eastern Re. Ltd transferred | 40.00% |
Net cash proceeds | $ 25,159 |
Sale of Subsidiary (Calculation
Sale of Subsidiary (Calculation of net gain on disposal of discontinued operations) (Details) - Discontinued Operations, Disposed of by Sale - Avon $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Proceeds from the transaction | $ 29,276 |
Compensation expense related to the transaction | 2,588 |
Broker fees | 935 |
Other transaction costs | 594 |
Net cash proceeds | 25,159 |
Net assets sold | (12,423) |
Net gain on disposal | $ 12,736 |
Sale of Subsidiary (Balance She
Sale of Subsidiary (Balance Sheets of Discontinued Operations) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Assets of discontinued operations | $ 633 |
Liabilities of discontinued operations | 3,323 |
Discontinued Operations, Disposed of by Sale | Avon | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Goodwill | 8 |
Other assets | 625 |
Assets of discontinued operations | 633 |
Accrued expenses and other liabilities | 3,323 |
Liabilities of discontinued operations | $ 3,323 |
Sale of Subsidiary (Statement o
Sale of Subsidiary (Statement of Operations of Discontinued Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
(Loss) income from discontinued operations before income taxes | $ (10) | $ 269 | $ (113) | $ 1,317 |
Income tax (benefit) expense | (2) | 71 | (27) | 324 |
(Loss) income from discontinued operations | (8) | 198 | (86) | 993 |
Discontinued Operations, Disposed of by Sale | Avon | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Insurance agency commissions | 2,170 | 7,015 | ||
All other income | 76 | 15 | 264 | |
Total noninterest income | 2,246 | 15 | 7,279 | |
Salaries and wages | 1,307 | 28 | 3,836 | |
Employee benefits | 288 | 7 | 953 | |
Occupancy expense | 121 | 14 | 330 | |
Furniture and equipment | 38 | 1 | 98 | |
Amortization of intangible assets | 12 | 35 | ||
Legal and professional fees | 2 | 20 | 73 | 54 |
Other noninterest expenses | 8 | 191 | 5 | 656 |
Total noninterest expense | 10 | 1,977 | 128 | 5,962 |
(Loss) income from discontinued operations before income taxes | (10) | 269 | (113) | 1,317 |
Income tax (benefit) expense | (2) | 71 | (27) | 324 |
(Loss) income from discontinued operations | $ (8) | $ 198 | $ (86) | $ 993 |
Sale of Subsidiary (Statement_2
Sale of Subsidiary (Statement of Cash Flows of Discontinued Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net (loss) income | $ (8) | $ 198 | $ (86) | $ 993 |
Avon | Discontinued Operations, Disposed of by Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net (loss) income | $ (8) | $ 198 | $ (86) | $ 993 |
Earnings Per Share (Calculation
Earnings Per Share (Calculation of Earnings Per Common Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||||||
Net income from continuing operations | $ 4,214 | $ 4,256 | $ 12,270 | $ 11,910 | ||||
Net (loss) income from discontinued operations | (8) | 198 | (86) | 993 | ||||
Net Income | $ 4,206 | $ 4,224 | $ 3,754 | $ 4,454 | $ 4,391 | $ 4,058 | $ 12,184 | $ 12,903 |
Weighted average shares outstanding - Basic (in shares) | 12,764,000 | 12,748,000 | 12,771,000 | 12,736,000 | ||||
Dilutive effect of common stock equivalents-options | 5,000 | 13,000 | 5,000 | 13,000 | ||||
Weighted average shares outstanding - Diluted (in shares) | 12,769,000 | 12,761,000 | 12,776,000 | 12,749,000 | ||||
Income from continuing operations | $ 0.33 | $ 0.33 | $ 0.96 | $ 0.93 | ||||
(Loss) income from discontinued operations | 0.02 | (0.01) | 0.08 | |||||
Income (loss) per common share - basic | 0.33 | 0.35 | 0.95 | 1.01 | ||||
Income from continuing operations | 0.33 | 0.33 | 0.96 | 0.93 | ||||
(Loss) income from discontinued operations | 0.02 | (0.01) | 0.08 | |||||
Income (loss) per common share - diluted | $ 0.33 | $ 0.35 | $ 0.95 | $ 1.01 | ||||
Weighted average common stock excluded from calculation of diluted EPS | 0 | 0 | 0 | 0 |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) | Sep. 30, 2019 |
Investment Securities [Abstract] | |
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | 39 |
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 4 |
Investment Securities (Amortize
Investment Securities (Amortized Cost and Estimated Fair Values of Investment Securities) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, Amortized Cost | $ 138,843 | $ 158,447 | |
Available-for-sale securities, Gross Unrealized Gains | 461 | 117 | |
Available-for-sale securities, Gross Unrealized Losses | 393 | 4,132 | |
Available-for-sale, at fair value | 138,911 | 154,432 | |
Held-to-maturity Securities, Amortized Cost | 9,780 | 6,043 | |
Held-to-maturity securities, Gross Unrealized Gains | 13 | 14 | |
Held-to-maturity securities, Gross Unrealized Losses | 78 | 57 | |
Held-to-maturity securities, Estimated Fair Value | 9,715 | 6,000 | |
Equity securities, at fair value | 1,339 | 1,269 | |
Accounting Standards Update 2016-01 | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cumulative effect adjustment (ASU 2016-01) | 1,300 | 1,300 | |
Fair value adjustment recorded through earnings | 47 | $ (20) | |
U.S. Government Agencies [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, Amortized Cost | 33,917 | 34,285 | |
Available-for-sale securities, Gross Unrealized Gains | 3 | 2 | |
Available-for-sale securities, Gross Unrealized Losses | 81 | 651 | |
Available-for-sale, at fair value | 33,839 | 33,636 | |
Held-to-maturity Securities, Amortized Cost | 1,380 | 1,642 | |
Held-to-maturity securities, Gross Unrealized Gains | 12 | ||
Held-to-maturity securities, Gross Unrealized Losses | 25 | ||
Held-to-maturity securities, Estimated Fair Value | 1,392 | 1,617 | |
States and Political Subdivisions [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Held-to-maturity Securities, Amortized Cost | 1,400 | 1,401 | |
Held-to-maturity securities, Gross Unrealized Gains | 1 | 14 | |
Held-to-maturity securities, Estimated Fair Value | 1,401 | 1,415 | |
Mortgage Backed [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, Amortized Cost | 104,926 | 124,162 | |
Available-for-sale securities, Gross Unrealized Gains | 458 | 115 | |
Available-for-sale securities, Gross Unrealized Losses | 312 | 3,481 | |
Available-for-sale, at fair value | 105,072 | 120,796 | |
Other Debt Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Held-to-maturity Securities, Amortized Cost | 7,000 | 3,000 | |
Held-to-maturity securities, Gross Unrealized Losses | 78 | 32 | |
Held-to-maturity securities, Estimated Fair Value | $ 6,922 | $ 2,968 |
Investment Securities (Gross Un
Investment Securities (Gross Unrealized Losses and Fair Value by Length of Continuous Unrealized Loss Position) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | $ 26,461 | $ 15,060 |
Available-for-sale securities, continuous unrealized loss position, less than 12 Months, unrealized losses | 63 | 271 |
Available-for-sale securities, continuous unrealized loss position, more than 12 Months, fair value | 48,150 | 132,266 |
Available-for-sale securities, continuous unrealized loss position, more than 12 Months, unrealized losses | 330 | 3,861 |
Available-for-sale securities, continuous unrealized loss position, fair value | 74,611 | 147,326 |
Available-for-sale securities, continuous unrealized loss position, unrealized losses | 393 | 4,132 |
Held-to-maturity securities, continuous unrealized loss position, less than 12 Months, fair value | 6,922 | 2,968 |
Held-to-maturity securities, continuous unrealized loss position, less than 12 Months, unrealized losses | 78 | 32 |
Held-to-maturity securities, continuous unrealized loss position, more than 12 Months, fair value | 1,617 | |
Held-to-maturity securities, continuous unrealized loss position, more than 12 Months, unrealized losses | 25 | |
Held-to-maturity securities, continuous unrealized loss position, fair value | 6,922 | 4,585 |
Held-to-maturity securities, continuous unrealized loss position, unrealized losses | 78 | 57 |
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 | 17,476 | 13,981 |
Available-for-sale securities, continuous unrealized loss position, less than 12 Months, unrealized losses | 48 | 261 |
Available-for-sale securities, continuous unrealized loss position, more than 12 Months, fair value | 23,296 | 99,904 |
Available-for-sale securities, continuous unrealized loss position, more than 12 Months, unrealized losses | 264 | 3,220 |
Available-for-sale securities, continuous unrealized loss position, fair value | 40,772 | 113,885 |
Available-for-sale securities, continuous unrealized loss position, unrealized losses | 312 | 3,481 |
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 | 8,985 | 1,079 |
Available-for-sale securities, continuous unrealized loss position, less than 12 Months, unrealized losses | 15 | 10 |
Available-for-sale securities, continuous unrealized loss position, more than 12 Months, fair value | 24,854 | 32,362 |
Available-for-sale securities, continuous unrealized loss position, more than 12 Months, unrealized losses | 66 | 641 |
Available-for-sale securities, continuous unrealized loss position, fair value | 33,839 | 33,441 |
Available-for-sale securities, continuous unrealized loss position, unrealized losses | 81 | 651 |
Held-to-maturity securities, continuous unrealized loss position, more than 12 Months, fair value | 1,617 | |
Held-to-maturity securities, continuous unrealized loss position, more than 12 Months, unrealized losses | 25 | |
Held-to-maturity securities, continuous unrealized loss position, fair value | 1,617 | |
Held-to-maturity securities, continuous unrealized loss position, unrealized losses | 25 | |
Other Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Held-to-maturity securities, continuous unrealized loss position, less than 12 Months, fair value | 6,922 | 2,968 |
Held-to-maturity securities, continuous unrealized loss position, less than 12 Months, unrealized losses | 78 | 32 |
Held-to-maturity securities, continuous unrealized loss position, fair value | 6,922 | 2,968 |
Held-to-maturity securities, continuous unrealized loss position, unrealized losses | $ 78 | $ 32 |
Investment Securities (Amorti_2
Investment Securities (Amortized Cost and Estimated Fair Value by Maturity Date) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Investment Securities [Abstract] | ||
Available for sale, Amortized Cost, Due in one year or less | $ 5,999 | |
Available for sale, Amortized Cost, Due after one year through five years | 28,660 | |
Available for sale, Amortized Cost, Due after five years through ten years | 56,236 | |
Available for sale, Amortized Cost, Due after ten years | 47,948 | |
Available-for-sale securities, Amortized Cost | 138,843 | $ 158,447 |
Available for sale, Estimated Fair Value, Due in one year or less | 5,994 | |
Available for sale, Estimated Fair Value, Due after one year through five years | 28,581 | |
Available for sale, Estimated Fair Value, Due after five years through ten years | 56,373 | |
Available for sale, Estimated Fair Value, Due after ten years | 47,963 | |
Available-for-sale Securities, Debt Securities, Total | 138,911 | 154,432 |
Held to maturity securities, Amortized Cost, Due in one year or less | 1,000 | |
Held to maturity securities, Amortized Cost, Due after one year through five years | 400 | |
Held to maturity securities, Amortized Cost, Due after five years through ten years | 7,000 | |
Held to maturity securities, Amortized Cost, Due after ten years | 1,380 | |
Held-to-maturity Securities, Amortized Cost | 9,780 | 6,043 |
Held to maturity securities, Estimated Fair Value, Due in one year or less | 1,000 | |
Held to maturity securities, Estimated Fair Value, Due after one year through five years | 401 | |
Held to maturity securities, Estimated Fair Value, Due after five years through ten years | 6,922 | |
Held to maturity securities, Estimated Fair Value, Due after ten years | 1,392 | |
Held-to-maturity Securities, Fair Value, Total | $ 9,715 | $ 6,000 |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses (Narrative) (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019USD ($)contract | Dec. 31, 2018USD ($) | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Deferred fees | $ 1,500 | $ 789 |
Discounts On Acquired Loans | 1,100 | 1,400 |
Financing receivable, modifications, post-modification recorded investment | $ 41 | |
Financing receivable, modifications, number of contracts | contract | 1 | |
Financing receivable, recorded investment, doubtful | $ 0 | 0 |
Financing receivable, recorded investment, nonaccrual status | 12,530 | 16,655 |
Loans and leases receivable, net amount, total | 1,224,597 | 1,185,012 |
Loans | 1,235,035 | 1,195,355 |
Other real estate owned, net | 74 | 1,222 |
Residential Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing receivable, modifications, post-modification recorded investment | $ 41 | |
Financing receivable, modifications, number of contracts | contract | 1 | |
Financing receivable, recorded investment, nonaccrual status | $ 2,059 | 4,099 |
Loans | 442,324 | 429,560 |
Other real estate owned, net | 0 | 0 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Mortgage loans in process of foreclosure, amount | 66 | 949 |
Loans | 12,019 | 7,274 |
Northwest Bank Branches [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Financing Receivable Net of Allowance | 83,100 | 92,800 |
Pass Performing [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | 1,030,774 | 967,331 |
Pass Performing [Member] | Residential Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | 405,154 | 386,553 |
Pass Performing [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | 11,619 | 6,805 |
Pass Watch [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | 173,455 | 194,540 |
Pass Watch [Member] | Residential Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | 28,927 | 33,739 |
Pass Watch [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | 397 | 466 |
Special Mention [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | 12,556 | 8,926 |
Special Mention [Member] | Residential Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | 5,408 | 3,769 |
Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing receivable, recorded investment, doubtful | 12,500 | 16,700 |
Loans | 18,250 | 24,558 |
Substandard [Member] | Residential Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | 2,835 | 5,499 |
Substandard [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | $ 3 | $ 3 |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses (Loans by Class of Loan Portfolio) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | $ 1,235,035 | $ 1,195,355 |
Allowance for credit losses | (10,438) | (10,343) |
Loans, net | 1,224,597 | 1,185,012 |
Commercial and Residential Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 116,368 | 127,572 |
Allowance for credit losses | (1,541) | (2,662) |
Residential Portfolio Segment [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 442,324 | 429,560 |
Allowance for credit losses | (2,681) | (2,353) |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 558,741 | 523,427 |
Allowance for credit losses | (3,848) | (3,077) |
Commercial Portfolio Segment [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 105,583 | 107,522 |
Allowance for credit losses | (2,016) | (1,949) |
Consumer Portfolio Segment [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 12,019 | 7,274 |
Allowance for credit losses | $ (352) | $ (302) |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses (Allowance for Credit Losses on Loans Receivable with Impairment) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | $ 20,830 | $ 25,318 |
Loans collectively evaluated for impairment | 1,214,205 | 1,170,037 |
Total loans | 1,235,035 | 1,195,355 |
Allowance for credit losses allocated to: | ||
Loans individually evaluated for impairment | 955 | 761 |
Loans collectively evaluated for impairment | 9,483 | 9,582 |
Loans and Leases Receivable, Allowance, Total | 10,438 | 10,343 |
Commercial and Residential Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 43 | 2,893 |
Loans collectively evaluated for impairment | 116,325 | 124,679 |
Total loans | 116,368 | 127,572 |
Allowance for credit losses allocated to: | ||
Loans individually evaluated for impairment | 320 | |
Loans collectively evaluated for impairment | 1,541 | 2,342 |
Loans and Leases Receivable, Allowance, Total | 1,541 | 2,662 |
Residential Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 6,712 | 8,553 |
Loans collectively evaluated for impairment | 435,612 | 421,007 |
Total loans | 442,324 | 429,560 |
Allowance for credit losses allocated to: | ||
Loans individually evaluated for impairment | 441 | 301 |
Loans collectively evaluated for impairment | 2,240 | 2,052 |
Loans and Leases Receivable, Allowance, Total | 2,681 | 2,353 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 13,639 | 13,532 |
Loans collectively evaluated for impairment | 545,102 | 509,895 |
Total loans | 558,741 | 523,427 |
Allowance for credit losses allocated to: | ||
Loans individually evaluated for impairment | 452 | 104 |
Loans collectively evaluated for impairment | 3,396 | 2,973 |
Loans and Leases Receivable, Allowance, Total | 3,848 | 3,077 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 436 | 340 |
Loans collectively evaluated for impairment | 105,147 | 107,182 |
Total loans | 105,583 | 107,522 |
Allowance for credit losses allocated to: | ||
Loans individually evaluated for impairment | 62 | 36 |
Loans collectively evaluated for impairment | 1,954 | 1,913 |
Loans and Leases Receivable, Allowance, Total | 2,016 | 1,949 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans collectively evaluated for impairment | 12,019 | 7,274 |
Total loans | 12,019 | 7,274 |
Allowance for credit losses allocated to: | ||
Loans collectively evaluated for impairment | 352 | 302 |
Loans and Leases Receivable, Allowance, Total | $ 352 | $ 302 |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses (Impaired Financing Receivables by Loan Class) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Dec. 31, 2018 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Unpaid principal balance | $ 21,213 | $ 21,213 | $ 26,637 | |
Recorded investment with no allowance | 13,488 | 13,488 | 14,816 | |
Recorded investment with an allowance | 6,630 | 6,630 | 10,502 | |
Related allowance | 897 | 897 | 761 | |
Average recorded investment | 20,748 | $ 15,983 | 22,127 | 16,605 |
Interest income recognized | 232 | 100 | ||
Impaired Nonaccrual Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Unpaid principal balance | 13,625 | 13,625 | 17,974 | |
Recorded investment with no allowance | 9,390 | 9,390 | 12,039 | |
Recorded investment with an allowance | 3,140 | 3,140 | 4,616 | |
Related allowance | 690 | 690 | 541 | |
Average recorded investment | 13,173 | 6,822 | 14,372 | 6,355 |
Impaired Accruing Restructured Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Unpaid principal balance | 7,588 | 7,588 | 8,663 | |
Recorded investment with no allowance | 4,098 | 4,098 | 2,777 | |
Recorded investment with an allowance | 3,490 | 3,490 | 5,886 | |
Related allowance | 207 | 207 | 220 | |
Average recorded investment | 7,575 | 9,161 | 7,755 | 10,250 |
Interest income recognized | 232 | 100 | ||
Impaired Accrual Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Unpaid principal balance | 712 | 712 | ||
Recorded investment with no allowance | 584 | 584 | ||
Recorded investment with an allowance | 128 | 128 | ||
Related allowance | 58 | 58 | ||
Residential Portfolio Segment [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Unpaid principal balance | 6,435 | 6,435 | 8,735 | |
Recorded investment with no allowance | 1,749 | 1,749 | 4,045 | |
Recorded investment with an allowance | 4,379 | 4,379 | 4,508 | |
Related allowance | 441 | 441 | 301 | |
Average recorded investment | 6,694 | 6,419 | 7,097 | 6,186 |
Interest income recognized | 130 | 46 | ||
Residential Portfolio Segment [Member] | Impaired Nonaccrual Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Unpaid principal balance | 2,366 | 2,366 | 4,281 | |
Recorded investment with no allowance | 489 | 489 | 2,605 | |
Recorded investment with an allowance | 1,570 | 1,570 | 1,494 | |
Related allowance | 256 | 256 | 118 | |
Average recorded investment | 2,642 | 1,710 | 2,904 | 1,573 |
Residential Portfolio Segment [Member] | Impaired Accruing Restructured Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Unpaid principal balance | 4,069 | 4,069 | 4,454 | |
Recorded investment with no allowance | 1,260 | 1,260 | 1,440 | |
Recorded investment with an allowance | 2,809 | 2,809 | 3,014 | |
Related allowance | 185 | 185 | 183 | |
Average recorded investment | 4,052 | 4,709 | 4,193 | 4,613 |
Interest income recognized | 130 | 46 | ||
Residential Portfolio Segment [Member] | Impaired Accrual Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Unpaid principal balance | 584 | 584 | ||
Recorded investment with no allowance | 584 | 584 | ||
Commercial Real Estate Portfolio Segment [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Unpaid principal balance | 14,310 | 14,310 | 14,187 | |
Recorded investment with no allowance | 11,696 | 11,696 | 10,593 | |
Recorded investment with an allowance | 1,943 | 1,943 | 2,939 | |
Related allowance | 452 | 452 | 104 | |
Average recorded investment | 13,700 | 6,049 | 13,232 | 5,937 |
Interest income recognized | 93 | 41 | ||
Commercial Real Estate Portfolio Segment [Member] | Impaired Nonaccrual Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Unpaid principal balance | 10,834 | 10,834 | 10,029 | |
Recorded investment with no allowance | 8,901 | 8,901 | 9,307 | |
Recorded investment with an allowance | 1,262 | 1,262 | 67 | |
Related allowance | 430 | 430 | 67 | |
Average recorded investment | 10,221 | 1,742 | 9,717 | 1,438 |
Commercial Real Estate Portfolio Segment [Member] | Impaired Accruing Restructured Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Unpaid principal balance | 3,476 | 3,476 | 4,158 | |
Recorded investment with no allowance | 2,795 | 2,795 | 1,286 | |
Recorded investment with an allowance | 681 | 681 | 2,872 | |
Related allowance | 22 | 22 | 37 | |
Average recorded investment | 3,479 | 4,307 | 3,515 | 4,499 |
Interest income recognized | 93 | 41 | ||
Commercial Portfolio Segment [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Unpaid principal balance | 425 | 425 | 445 | |
Recorded investment with an allowance | 308 | 308 | 340 | |
Related allowance | 4 | 4 | 36 | |
Average recorded investment | 310 | 327 | 316 | 338 |
Commercial Portfolio Segment [Member] | Impaired Nonaccrual Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Unpaid principal balance | 425 | 425 | 445 | |
Recorded investment with an allowance | 308 | 308 | 340 | |
Related allowance | 4 | 4 | 36 | |
Average recorded investment | 310 | 327 | 316 | 338 |
Commercial Portfolio Segment [Member] | Impaired Accrual Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Unpaid principal balance | 128 | 128 | ||
Recorded investment with an allowance | 128 | 128 | ||
Related allowance | 58 | 58 | ||
Construction Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Unpaid principal balance | 43 | 43 | 3,270 | |
Recorded investment with no allowance | 43 | 43 | 178 | |
Recorded investment with an allowance | 2,715 | |||
Related allowance | 320 | |||
Average recorded investment | 44 | 3,188 | 1,482 | 4,144 |
Interest income recognized | 9 | 13 | ||
Construction Loans [Member] | Impaired Nonaccrual Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Unpaid principal balance | 3,219 | |||
Recorded investment with no allowance | 127 | |||
Recorded investment with an allowance | 2,715 | |||
Related allowance | 320 | |||
Average recorded investment | 3,043 | 1,435 | 3,006 | |
Construction Loans [Member] | Impaired Accruing Restructured Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Unpaid principal balance | 43 | 43 | 51 | |
Recorded investment with no allowance | 43 | 43 | 51 | |
Average recorded investment | $ 44 | $ 145 | 47 | 1,138 |
Interest income recognized | $ 9 | $ 13 |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses (Rollforward of TDRs) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR beginning balance | $ 11,781 | $ 16,624 |
New TDRs | 41 | |
Disbursements (Payments) | (2,154) | (776) |
Charge offs | (3) | (459) |
Reclassifications/Transfer In/(Out) | (74) | |
Payoffs | (353) | (3,170) |
TDR ending balance | 9,312 | 12,145 |
TDR, Related Allowance | 344 | 621 |
Impaired Nonaccrual Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR beginning balance | 3,118 | 3,298 |
Disbursements (Payments) | (1,391) | (86) |
Charge offs | (3) | (80) |
Reclassifications/Transfer In/(Out) | 80 | |
TDR ending balance | 1,724 | 3,212 |
TDR, Related Allowance | 137 | 376 |
Impaired Nonaccrual Loans [Member] | Residential Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Charge offs | (80) | |
Reclassifications/Transfer In/(Out) | 80 | |
Impaired Nonaccrual Loans [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR beginning balance | 83 | |
Reclassifications/Transfer In/(Out) | (83) | |
Impaired Nonaccrual Loans [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR beginning balance | 320 | 337 |
Disbursements (Payments) | (12) | (13) |
TDR ending balance | 308 | 324 |
TDR, Related Allowance | 4 | 20 |
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 | 2,798 | 2,878 |
Disbursements (Payments) | (1,379) | (73) |
Charge offs | (3) | |
Reclassifications/Transfer In/(Out) | 83 | |
TDR ending balance | 1,416 | 2,888 |
TDR, Related Allowance | 133 | 356 |
Impaired Accruing Restructured Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR beginning balance | 8,663 | 13,326 |
New TDRs | 41 | |
Disbursements (Payments) | (763) | (690) |
Charge offs | (379) | |
Reclassifications/Transfer In/(Out) | (154) | |
Payoffs | (353) | (3,170) |
TDR ending balance | 7,588 | 8,933 |
TDR, Related Allowance | 207 | 245 |
Impaired Accruing Restructured Loans [Member] | Residential Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR beginning balance | 4,454 | 4,536 |
New TDRs | 41 | |
Disbursements (Payments) | (73) | (63) |
Reclassifications/Transfer In/(Out) | 542 | |
Payoffs | (353) | (351) |
TDR ending balance | 4,069 | 4,664 |
TDR, Related Allowance | 185 | 194 |
Impaired Accruing Restructured Loans [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR beginning balance | 4,158 | 4,818 |
Disbursements (Payments) | (682) | (402) |
Payoffs | (219) | |
TDR ending balance | 3,476 | 4,197 |
TDR, Related Allowance | 22 | 32 |
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 | 51 | 3,972 |
Disbursements (Payments) | (8) | (225) |
Charge offs | (379) | |
Reclassifications/Transfer In/(Out) | (696) | |
Payoffs | (2,600) | |
TDR ending balance | $ 43 | 72 |
TDR, Related Allowance | $ 19 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses (Troubled Debt Restructurings on Financing Receivables) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($)contract | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Number of contracts | contract | 1 |
Premodification outstanding recorded investment | $ 75 |
Postmodification outstanding recorded investment | $ 41 |
Residential Portfolio Segment [Member] | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Number of contracts | contract | 1 |
Premodification outstanding recorded investment | $ 75 |
Postmodification outstanding recorded investment | $ 41 |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses (Troubled Debt Restructurings With Subsequent Default) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($)contract | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Number of contracts | contract | 2 |
Recorded investment | $ | $ 533 |
Residential Portfolio Segment [Member] | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Number of contracts | contract | 1 |
Recorded investment | $ | $ 154 |
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 | $ | $ 379 |
Loans and Allowance for Cred_10
Loans and Allowance for Credit Losses (Financing Receivable Credit Quality Indicators) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | $ 1,235,035 | $ 1,195,355 |
Pass Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 1,030,774 | 967,331 |
Pass Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 173,455 | 194,540 |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 12,556 | 8,926 |
Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 18,250 | 24,558 |
Commercial and Residential Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 116,368 | 127,572 |
Commercial and Residential Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Pass Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 100,669 | 93,977 |
Commercial and Residential Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Pass Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 13,560 | 30,735 |
Commercial and Residential Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 2,139 | |
Commercial and Residential Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 2,860 | |
Residential Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 442,324 | 429,560 |
Residential Portfolio Segment [Member] | Pass Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 405,154 | 386,553 |
Residential Portfolio Segment [Member] | Pass Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 28,927 | 33,739 |
Residential Portfolio Segment [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 5,408 | 3,769 |
Residential Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 2,835 | 5,499 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 558,741 | 523,427 |
Commercial Real Estate Portfolio Segment [Member] | Pass Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 427,825 | 389,219 |
Commercial Real Estate Portfolio Segment [Member] | Pass Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 110,846 | 113,873 |
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 4,999 | 4,515 |
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 15,071 | 15,820 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 105,583 | 107,522 |
Commercial Portfolio Segment [Member] | Pass Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 85,507 | 90,777 |
Commercial Portfolio Segment [Member] | Pass Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 19,725 | 15,727 |
Commercial Portfolio Segment [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 10 | 642 |
Commercial Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 341 | 376 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 12,019 | 7,274 |
Consumer Portfolio Segment [Member] | Pass Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 11,619 | 6,805 |
Consumer Portfolio Segment [Member] | Pass Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 397 | 466 |
Consumer Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | $ 3 | $ 3 |
Loans and Allowance for Cred_11
Loans and Allowance for Credit Losses (Aging of Past Due Financing Receivables) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 1,212,855 | $ 1,174,846 |
Total past due | 9,650 | 3,854 |
Nonaccrual | 12,530 | 16,655 |
Total loans | $ 1,235,035 | $ 1,195,355 |
Percent of total loans, Current | 98.20% | 98.30% |
Percent of total loans, Total past due | 0.80% | 0.30% |
Percent of total loans, Nonaccrual | 1.00% | 1.40% |
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 | $ 7,444 | $ 1,945 |
Percent of total loans, Total past due | 0.60% | 0.20% |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | $ 1,494 | $ 1,770 |
Percent of total loans, Total past due | 0.10% | 0.10% |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | $ 712 | $ 139 |
Percent of total loans, Total past due | 0.10% | |
Residential Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 433,458 | 423,732 |
Total past due | 6,807 | 1,729 |
Nonaccrual | 2,059 | 4,099 |
Total loans | 442,324 | 429,560 |
Residential Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 5,195 | 1,384 |
Residential Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 1,028 | 206 |
Residential Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 584 | 139 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 546,492 | 512,252 |
Total past due | 2,086 | 1,801 |
Nonaccrual | 10,163 | 9,374 |
Total loans | 558,741 | 523,427 |
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 | 1,894 | 253 |
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 | 192 | 1,548 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 104,809 | 107,089 |
Total past due | 466 | 93 |
Nonaccrual | 308 | 340 |
Total loans | 105,583 | 107,522 |
Commercial Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 337 | 83 |
Commercial Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 1 | 10 |
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 | 128 | |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 11,985 | 7,238 |
Total past due | 34 | 36 |
Total loans | 12,019 | 7,274 |
Consumer Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 18 | 30 |
Consumer Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 16 | 6 |
Construction Loans [Member] | Commercial and Residential Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 116,111 | 124,535 |
Total past due | 257 | 195 |
Nonaccrual | 2,842 | |
Total loans | 116,368 | 127,572 |
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 | $ 195 | |
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 | $ 257 |
Loans and Allowance for Cred_12
Loans and Allowance for Credit Losses (Allowance for Credit Losses on Financing Receivables) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Allowance for credit losses allocated to: | ||||
Beginning balance | $ 10,305 | $ 10,121 | $ 10,343 | $ 9,781 |
Charge-offs | (184) | (246) | (801) | (954) |
Recoveries | 117 | 146 | 396 | 287 |
Net charge-offs | (67) | (100) | (405) | (667) |
Provision | 200 | 307 | 500 | 1,214 |
Ending balance | 10,438 | 10,328 | 10,438 | 10,328 |
Commercial and Residential Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||||
Allowance for credit losses allocated to: | ||||
Beginning balance | 2,443 | 2,593 | 2,662 | 2,460 |
Charge-offs | (3) | (379) | ||
Recoveries | 1 | 3 | 8 | 18 |
Net charge-offs | 1 | 3 | 5 | (361) |
Provision | (903) | 188 | (1,126) | 685 |
Ending balance | 1,541 | 2,784 | 1,541 | 2,784 |
Residential Portfolio Segment [Member] | ||||
Allowance for credit losses allocated to: | ||||
Beginning balance | 2,155 | 2,150 | 2,353 | 2,284 |
Charge-offs | (86) | (109) | (509) | (288) |
Recoveries | 12 | 5 | 23 | 91 |
Net charge-offs | (74) | (104) | (486) | (197) |
Provision | 600 | 95 | 814 | 54 |
Ending balance | 2,681 | 2,141 | 2,681 | 2,141 |
Commercial Real Estate Portfolio Segment [Member] | ||||
Allowance for credit losses allocated to: | ||||
Beginning balance | 3,367 | 2,845 | 3,077 | 2,594 |
Recoveries | 7 | 5 | 114 | 23 |
Net charge-offs | 7 | 5 | 114 | 23 |
Provision | 474 | 87 | 657 | 320 |
Ending balance | 3,848 | 2,937 | 3,848 | 2,937 |
Commercial Portfolio Segment [Member] | ||||
Allowance for credit losses allocated to: | ||||
Beginning balance | 2,057 | 2,210 | 1,949 | 2,241 |
Charge-offs | (98) | (137) | (260) | (263) |
Recoveries | 96 | 122 | 248 | 144 |
Net charge-offs | (2) | (15) | (12) | (119) |
Provision | (39) | 15 | 79 | 88 |
Ending balance | 2,016 | 2,210 | 2,016 | 2,210 |
Consumer Portfolio Segment [Member] | ||||
Allowance for credit losses allocated to: | ||||
Beginning balance | 283 | 323 | 302 | 202 |
Charge-offs | (29) | (24) | ||
Recoveries | 1 | 11 | 3 | 11 |
Net charge-offs | 1 | 11 | (26) | (13) |
Provision | 68 | (78) | 76 | 67 |
Ending balance | $ 352 | $ 256 | $ 352 | $ 256 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 |
Right-of-use assets | $ 4,908 | $ 3,800 |
Lease liabilities | $ 4,923 | 3,800 |
Additional Premises [Member] | ||
Right-of-use assets | 1,400 | |
Lease liabilities | $ 1,400 |
Leases (Lease Information) (Det
Leases (Lease Information) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
Lease liabilities | $ 4,923 | $ 3,800 |
Right-of-use assets | $ 4,908 | $ 3,800 |
Weighted average remaining lease term | 11 years 10 months 13 days | |
Weighted average discount rate | 3.12% |
Leases (Lease cost) (Details)
Leases (Lease cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 173 | $ 440 |
Total lease cost | 173 | 440 |
Cash paid for amounts included in the measurement of lease liabilities | $ 163 | $ 419 |
Leases (Lease Payments Due) (De
Leases (Lease Payments Due) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
Three months ending December 31, 2019 | $ 168 | |
Twelve months ending December 31, 2020 | 604 | |
Twelve months ending December 31, 2021 | 545 | |
Twelve months ending December 31, 2022 | 541 | |
Twelve months ending December 31, 2023 | 521 | |
Twelve months ending December 31, 2024 | 473 | |
Thereafter | 3,258 | |
Total undiscounted cash flows | 6,110 | |
Discount | 1,187 | |
Lease liabilities | $ 4,923 | $ 3,800 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangibles | $ 2,396 | $ 2,857 | |
Goodwill | 17,518 | 17,518 | |
Aggregate Amortization Expense Included In Continued Operations | 461 | $ 597 | |
Core Deposits [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangibles | $ 2,396 | $ 2,857 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles (Schedule of Components of Goodwill and Other Acquired Intangible Assets) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Goodwill and Intangible Assets [Line Items] | ||
Goodwill, Gross | $ 19,728 | $ 19,728 |
Accumulated Impairment Charges | (1,543) | (1,543) |
Accumulated Amortization | (667) | (667) |
Goodwill, Total | 17,518 | 17,518 |
Other intangible assets, Amortizable, Gross Carrying Amount | 3,954 | 3,954 |
Other intangible assets, Amortizable, Accumulated Amortization | (1,558) | (1,097) |
Total amortizing intangible assets | 2,396 | 2,857 |
Intangible Assets, Net (Excluding Goodwill), Total | 2,396 | 2,857 |
Core Deposits [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Other intangible assets, Amortizable, Gross Carrying Amount | 3,954 | 3,954 |
Other intangible assets, Amortizable, Accumulated Amortization | (1,558) | (1,097) |
Total amortizing intangible assets | $ 2,396 | $ 2,857 |
Weighted Average Remaining Life (in years) | 6 years 1 month 6 days | 7 years 2 months 12 days |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles (Future Amortization Expense for Amortizable Other Intangible Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Goodwill and Other Intangibles [Abstract] | ||
2019 | $ 144 | |
2020 | 533 | |
2021 | 461 | |
2022 | 389 | |
2023 | 317 | |
2024 | 246 | |
Thereafter | 306 | |
Total amortizing intangible assets | $ 2,396 | $ 2,857 |
Other Assets (Schedule of Other
Other Assets (Schedule of Other Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Other Assets [Abstract] | ||
Accrued interest receivable | $ 3,507 | $ 3,345 |
Deferred income taxes | 2,795 | 4,182 |
Prepaid expenses | 1,483 | 1,067 |
Cash surrender value on life insurance | 18,440 | 3,726 |
Income taxes receivable | 518 | |
Other assets | 3,514 | 5,358 |
Total | $ 30,257 | $ 17,678 |
Other Assets (Schedule of Defer
Other Assets (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Allowance for credit losses | $ 2,850 | $ 2,797 |
Reserve for off-balance sheet commitments | 81 | 81 |
Net operating loss carry forward | 37 | |
Write-downs of other real estate owned | (3) | 273 |
Nonaccrual loan interest | 354 | 260 |
Unrealized losses on available-for-sale securities | 1,105 | |
Unrealized losses on available-for-sale securities transferred to held to maturity | 6 | 12 |
Other | 480 | 524 |
Total deferred tax assets | 3,805 | 5,052 |
Deferred tax liabilities: | ||
Depreciation | 187 | 238 |
Amortization on loans FMV adjustment | 48 | 60 |
Acquisition accounting adjustments | 448 | 247 |
Deferred capital gain on branch sale | 195 | 200 |
Unrealized gains on available-for-sale securities | 10 | |
Other | 122 | 125 |
Total deferred tax liabilities | 1,010 | 870 |
Net deferred tax assets | $ 2,795 | $ 4,182 |
Other Liabilities (Schedule of
Other Liabilities (Schedule of Other Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Other Liabilities [Abstract] | ||
Accrued interest payable | $ 450 | $ 604 |
Other accounts payable | 211 | 3,213 |
Deferred compensation liability | 1,074 | 1,040 |
Income taxes payable | 3,454 | |
Other liabilities | 3,304 | 104 |
Total | $ 5,039 | $ 8,415 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 15, 2019 | Jan. 31, 2018 | |
Employee Stock Option [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares exercised, options | 15,578 | |||||||
Restricted Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of Shares, Granted (in shares) | 15,702 | |||||||
Equity Plan 2016 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares authorized for granting | 750,000 | 750,000 | ||||||
Shares available to be granted | 636,465 | 636,465 | ||||||
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, vested, fair value | $ 0 | $ 520,000 | ||||||
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] | 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 | $ 15.41 | $ 15.41 | $ 14.66 | $ 17.92 | ||||
Options, Weighted average remaining contractual term | 5 years | |||||||
Options, granted, weighted average fair value | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Options, outstanding intrinsic value | $ 72,000 | $ 72,000 | ||||||
Options, exercised, intrinsic value | 72,000 | $ 365,000 | ||||||
Options, exercisable, intrinsic value | $ 72,000 | $ 72,000 | ||||||
Equity Plan 2016 [Member] | Restricted Stock Units [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period | 3 years | |||||||
Other than options, vested, fair value | $ 241,000 | $ 383,000 | ||||||
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 [Member] | Scenario, Forecast [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Other than options, vested, fair value | $ 24,726 | |||||||
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 [Member] | Scenario, Forecast [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Other than options, vested, fair value | $ 6,178 |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule of Stock-Based Compensation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Stock-Based Compensation [Abstract] | ||||
Stock-based compensation expense | $ 61 | $ 168 | $ 92 | $ 474 |
Excess tax benefits related to stock-based compensation | 2 | 11 | 5 | 146 |
Unrecognized stock-based compensation expense | $ 90 | $ 530 | $ 90 | $ 530 |
Weighted average period unrecognized expense is expected to be recognized | 6 months | 9 months 18 days |
Stock-Based Compensation (Sch_2
Stock-Based Compensation (Schedule of Stock-Based Compensation, RS and RSU Award Activity) (Details) - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Granted (in shares) | 15,702 | |
Number of Shares, Nonvested at end of period (in shares) | 15,702 | |
Weighted Average Grant Date Fair Value, Granted (in dollars per share) | $ 15.36 | |
Weighted Average Grant Date Fair Value, Nonvested at end of period (in dollars per share) | $ 15.36 | |
Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Nonvested at beginning of period (in shares) | 38,562 | |
Number of Shares, Vested (in shares) | (15,577) | (15,577) |
Number of Shares, Cancelled (in shares) | (16,807) | |
Number of Shares, Nonvested at end of period (in shares) | 6,178 | 38,562 |
Weighted Average Grant Date Fair Value, Nonvested at beginning of period (in dollars per share) | $ 14.69 | |
Weighted Average Grant Date Fair Value, Vested (in dollars per share) | 11.68 | |
Weighted Average Grant Date Fair Value, Cancelled (in dollars per share) | 16.78 | |
Weighted Average Grant Date Fair Value, Nonvested at end of period (in dollars per share) | $ 16.57 | $ 14.69 |
Stock-Based Compensation (Sch_3
Stock-Based Compensation (Schedule of Stock Options Activity) (Details) - Employee Stock Option [Member] | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares, Outstanding at beginning of period (in shares) | shares | 27,249 |
Number of shares, Exercised (in shares) | shares | (15,578) |
Number of shares, Outstanding at end of period (in shares) | shares | 11,671 |
Number of shares, Exercisable at end of period (in shares) | shares | 11,671 |
Weighted Average Grant Date Fair Value, Outstanding at beginning of period | $ / shares | $ 9.68 |
Weighted Average Grant Date Fair Value, Exercised | $ / shares | 10.01 |
Weighted Average Grant Date Fair Value, Outstanding at end of period | $ / shares | 9.25 |
Weighted Average Exercise Price, Exercisable at end of period | $ / shares | $ 9.25 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balances | $ 191,307 | $ 168,115 | $ 183,185 | $ 163,736 |
Other comprehensive income | 226 | (299) | 2,983 | (2,763) |
Balances | 193,963 | 171,419 | 193,963 | 171,419 |
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balances | (193) | (3,767) | (2,950) | (1,309) |
Other comprehensive income | 2,983 | (2,763) | ||
Balances | 33 | (4,066) | 33 | (4,066) |
Accumulated Other Comprehensive Income (Loss) | Accounting Standards Update 2016-01 | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Cumulative effect adjustment (ASU 2016-01) | 6 | |||
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balances | (2,918) | (1,255) | ||
Other comprehensive income | 2,967 | (2,778) | ||
Balances | 49 | (4,027) | 49 | (4,027) |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | Accounting Standards Update 2016-01 | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Cumulative effect adjustment (ASU 2016-01) | 6 | |||
Unrealized Gains Losses On Securities Transferred From Available For Sale To Held To Maturity [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balances | (32) | (54) | ||
Other comprehensive income, transferred from Available for sale to Held to maturity | 16 | 15 | ||
Balances | $ (16) | $ (39) | $ (16) | $ (39) |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value assets transferred from , Level 1 to level 2 | $ 0 | $ 0 | |
Fair value assets transferred from , Level 2 to level 1 | 0 | 0 | |
Fair value assets transferred in | 0 | 0 | |
Fair value assets transferred out | 0 | $ 0 | |
Investment securities: | |||
Investment securities available for sale, at fair value | 138,911,000 | $ 154,432,000 | |
Equity securities, at fair value | 1,339,000 | 1,269,000 | |
Total | 140,250,000 | 155,701,000 | |
Fair Value, Inputs, Level 2 [Member] | |||
Investment securities: | |||
Investment securities available for sale, at fair value | 138,911,000 | 154,432,000 | |
Equity securities, at fair value | 1,339,000 | 1,269,000 | |
Total | 140,250,000 | 155,701,000 | |
U.S. Government Agencies [Member] | |||
Investment securities: | |||
Investment securities available for sale, at fair value | 33,839,000 | 33,636,000 | |
U.S. Government Agencies [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Investment securities: | |||
Investment securities available for sale, at fair value | 33,839,000 | 33,636,000 | |
Mortgage Backed [Member] | |||
Investment securities: | |||
Investment securities available for sale, at fair value | 105,072,000 | 120,796,000 | |
Mortgage Backed [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Investment securities: | |||
Investment securities available for sale, at fair value | $ 105,072,000 | $ 120,796,000 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value of Assets Measured on Nonrecurring Basis) (Details) - Fair Value, Inputs, Level 3 [Member] - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Appraisal Of Collateral [Member] | ||
Impaired loans: | ||
Impaired loans | $ 1,777 | $ 3,839 |
Other real estate owned | $ 74 | $ 1,222 |
Appraisal Of Collateral [Member] | Maximum [Member] | ||
Impaired loans: | ||
Impaired loans, Appraisal adjustment, Range | 17.00% | 17.00% |
Impaired loans, Liquidation expense, Range | 10.00% | 10.00% |
Other real estate owned, Appraisal adjustment, Range | 40.00% | 40.00% |
Other real estate owned, Liquidation expense, Range | 10.00% | 10.00% |
Appraisal Of Collateral [Member] | Minimum [Member] | ||
Impaired loans: | ||
Impaired loans, Appraisal adjustment, Range | 0.00% | 0.00% |
Impaired loans, Liquidation expense, Range | 0.00% | 0.00% |
Other real estate owned, Appraisal adjustment, Range | 15.00% | 15.00% |
Other real estate owned, Liquidation expense, Range | 5.00% | 5.00% |
Discounted Cash Flow Analysis [Member] | ||
Impaired loans: | ||
Impaired loans | $ 3,956 | $ 5,902 |
Discounted Cash Flow Analysis [Member] | Maximum [Member] | ||
Impaired loans: | ||
Impaired loans, Discount rate, Range | 7.25% | 7.25% |
Discounted Cash Flow Analysis [Member] | Minimum [Member] | ||
Impaired loans: | ||
Impaired loans, Discount rate, Range | 4.00% | 4.00% |
Fair Value Measurements (Estima
Fair Value Measurements (Estimated Fair Values of Financial Assets and Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financial assets, Estimated Fair Value | ||
Investment securities held to maturity | $ 9,715 | $ 6,000 |
Fair Value, Inputs, Level 1 [Member] | Carrying Amount [Member] | ||
Financial assets, Estimated Fair Value | ||
Cash and cash equivalents | 103,373 | 67,225 |
Fair Value, Inputs, Level 1 [Member] | Estimated Fair Value [Member] | ||
Financial assets, Estimated Fair Value | ||
Cash and cash equivalents | 103,373 | 67,225 |
Fair Value, Inputs, Level 2 [Member] | Carrying Amount [Member] | ||
Financial assets, Estimated Fair Value | ||
Investment securities held to maturity | 9,780 | 6,043 |
Restricted securities | 4,655 | 6,476 |
Cash surrender value on life insurance | 18,440 | 3,726 |
Financial liabilities, Estimated Fair Value | ||
Noninterest-bearing demand | 362,557 | 330,466 |
Checking plus interest | 288,521 | 239,809 |
Money market | 248,114 | 232,613 |
Savings | 141,498 | 148,723 |
Club | 1,502 | 387 |
Brokered Deposits | 12,070 | 22,084 |
Certificates of deposit, $100,000 or more | 123,142 | 97,905 |
Other time | 148,087 | 140,354 |
Short-term borrowings | 17,263 | 60,812 |
Long-term borrowings | 15,000 | 15,000 |
Fair Value, Inputs, Level 2 [Member] | Estimated Fair Value [Member] | ||
Financial assets, Estimated Fair Value | ||
Investment securities held to maturity | 9,715 | 6,000 |
Restricted securities | 4,655 | 6,476 |
Cash surrender value on life insurance | 18,440 | 3,726 |
Financial liabilities, Estimated Fair Value | ||
Noninterest-bearing demand | 362,557 | 330,466 |
Checking plus interest | 288,521 | 239,809 |
Money market | 248,114 | 232,613 |
Savings | 141,498 | 148,723 |
Club | 1,502 | 387 |
Brokered Deposits | 12,067 | 22,075 |
Certificates of deposit, $100,000 or more | 123,655 | 96,435 |
Other time | 147,684 | 136,292 |
Short-term borrowings | 17,263 | 60,812 |
Long-term borrowings | 14,999 | 15,012 |
Fair Value, Inputs, Level 3 [Member] | Carrying Amount [Member] | ||
Financial assets, Estimated Fair Value | ||
Loans, net | 1,224,597 | 1,185,012 |
Fair Value, Inputs, Level 3 [Member] | Estimated Fair Value [Member] | ||
Financial assets, Estimated Fair Value | ||
Loans, net | $ 1,227,196 | $ 1,150,418 |
Financial Instruments with Of_3
Financial Instruments with Off-Balance Sheet Risk (Schedule of Commitments Outstanding) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments outstanding | $ 239,467 | $ 217,380 |
Commitments to Extend Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments outstanding | 232,355 | 210,463 |
Letters of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments outstanding | $ 7,112 | $ 6,917 |
Revenue Recognition (Noninteres
Revenue Recognition (Noninterest Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue Recognition [Abstract] | ||||
Service charges on deposit accounts | $ 990 | $ 982 | $ 2,952 | $ 2,834 |
Trust and investment fee income | 383 | 383 | 1,140 | 1,197 |
Other noninterest income | 1,018 | 1,076 | 3,005 | 2,802 |
Noninterest Income (in-scope of Topic 606) | 2,391 | 2,441 | 7,097 | 6,833 |
Noninterest Income (out-of-scope of Topic 606) | 138 | 24 | 229 | 68 |
Total noninterest income | $ 2,529 | $ 2,465 | $ 7,326 | $ 6,901 |